(Boursier.com) — The Societe Generale gives back 0.4% to 22.70 euros on Monday. Among the latest brokers’ opinions, Jefferies has adjusted the target from 35 to 37 euros while remaining on the buy side. While the red and black bank suffered a heavy loss in the second quarter due to the cost of selling its Russian subsidiary Rosbank, its results quite significantly beat market expectations last week, as management pledged to increase its profitability… Over the three months to the end of June, the Banque de la Défense posted a net loss of 1.48 billion euros for net banking income of 7.06 billion euros. On the market activities side, revenues climbed 23.3% to 1.52 billion euros, with a 50% jump in interest rate, credit and foreign exchange activities and a 7.5% increase in equity trading. .
In retail banking, revenues rose 8.5% in France and 12.7% internationally. The cost of risk, at 217 million euros, also came out well below analysts’ expectations.
After two years of profitable growth during which the group simplified its model, initiated profound transformations in line with societal changes and invested in its profitable growth businesses, SG intends to continue implementing its roadmap with discipline, and targets a return (ROTE) of 10% and a CET 1 ratio of 12% by 2025. The institution is also targeting average annual revenue growth greater than or equal to 3% over the 2021-2025 period, taking into account the lower end of the expected revenue range in Market Activities.
While supporting the growth of its businesses, the group plans an attractive distribution to shareholders of 50% of net income, Group share, including up to 40% of the distribution in the form of share buybacks.
On course
“By 2025, we are confirming our ability to deliver a return of 10% on the basis of a core tier one target of 12%, while maintaining an attractive distribution policy for our shareholders”, specified Frédéric Oudéa, who surprised the financial community by announcing last May that he would not seek the renewal of his mandate as head of the bank in May 2023… The choice of the next general manager is a decision of the board of directors, but Frédéric Oudéa s voted in favor of an internal candidacy to lead the bank for the next ten to fifteen years. Rumors about his successor thus revolve around Sébastien Proto, who is currently leading the merger of SocGen’s retail banking networks in France, and Slawomir Krupa, the head of corporate and investment banking (BFI). The names of former SocGen, such as Philippe Heim, the boss of the Postal Bank, Jean-Pierre Mustier, the former general manager of Unicredit, or Jacques Ripoll, who has just left Crédit Agricole, are also mentioned. , without being given favorites…
Among other analyst opinions, note that Deutsche Bank has adjusted the target from 33 to 34 euros with a buy notice, while Credit Suisse is now targeting a course of 40 euros (‘outperform’). Finally, Oddo BHF raised the slider from 32 to 33 euros while remaining ‘neutral’…