Societe Generale: Third quarter 2025 earnings

Core Insights - The company reported a strong performance for the first nine months of 2025, achieving a net income of EUR 4.6 billion, which is a 45% increase compared to the same period in 2024, and a Return on Tangible Equity (ROTE) of 10.5%, exceeding the annual target of approximately 9% [2][5][16] Financial Performance - Group revenues reached EUR 20.5 billion in the first nine months of 2025, up 6.7% compared to the same period in 2024, surpassing the annual target of 3% [5] - The cost-to-income ratio improved significantly to 63.3% in the first nine months of 2025, down from 68.8% in the same period of 2024, and below the 2025 target of less than 65% [5][12] - Operating expenses decreased by 6.4% in the first nine months of 2025 compared to the same period in 2024, reflecting effective cost control measures [12][11] Revenue Breakdown - French Retail, Private Banking, and Insurance revenues increased by 0.9% in Q3 2025 compared to Q3 2024, with net interest income growing by 4.7% [8][25] - Global Banking and Investor Solutions reported revenues of EUR 2.5 billion in Q3 2025, up 1.6% from Q3 2024, with strong performance in fixed income and currencies [9][37] - Mobility, International Retail Banking, and Financial Services saw revenues decline by 6.2% in Q3 2025 compared to Q3 2024, but increased by 8.7% when excluding asset disposals [10][49] Cost of Risk - The cost of risk for the first nine months of 2025 was 25 basis points, aligning with the annual target of 25 to 30 basis points [5][13] - The gross non-performing loan ratio remained stable at 2.77% as of September 30, 2025, indicating effective risk management [14] Capital and Liquidity - The Common Equity Tier 1 (CET1) ratio stood at 13.7% at the end of Q3 2025, significantly above the regulatory requirement [5][21] - The Liquidity Coverage Ratio (LCR) was reported at 147% at the end of September 2025, well above the regulatory minimum [20] Strategic Initiatives - The company is actively pursuing sustainable finance, having achieved approximately 25% of its EUR 500 billion target by mid-2025 [17] - A new program focusing on water-related financing has been launched to support clients in their transition to sustainable practices [18]