Core Insights - The company reported strong quarterly results for Q1 2025, with revenues of EUR 7.1 billion, representing a 6.6% increase compared to Q1 2024, and a 10.2% increase when excluding asset disposals, exceeding the annual target of more than 3% growth [1][5] - Group net income reached EUR 1,608 million, a 2.4 times increase compared to Q1 2024, with a Return on Tangible Equity (ROTE) of 11.0%, surpassing the 2025 target of more than 8% [2][14] - The company maintained a solid capital and liquidity profile, with a Common Equity Tier 1 (CET1) ratio of 13.4%, significantly above regulatory requirements, and a Liquidity Coverage Ratio (LCR) of 140% [2][17] Group Consolidated Results - Net banking income for Q1 2025 was EUR 7,083 million, up 6.6% from Q1 2024, while operating expenses decreased by 7.6% to EUR 4,604 million [4][10] - The cost-to-income ratio improved to 65.0% in Q1 2025, down from 74.9% in Q1 2024, and below the target of less than 66% for 2025 [11][4] - The net cost of risk was EUR 344 million, representing a decrease of 13.9% compared to Q1 2024 [4][11] Business Performance French Retail, Private Banking and Insurance - Revenues increased by 14.1% to EUR 2.3 billion, with net interest income rising sharply by 28.4% [6][21] - Operating expenses decreased by 9.4% to EUR 1,566 million, leading to a significant improvement in gross operating income [21][29] - Group net income from this segment reached EUR 421 million, a 13.4 times increase compared to Q1 2024 [21][67] Global Banking and Investor Solutions - Revenues grew by 10.0% to EUR 2.9 billion, driven by strong performance in equities and financing and advisory services [7][34] - The Equities business achieved a record revenue of EUR 1,061 million, up 21.8% compared to Q1 2024 [35] - Group net income for this segment was EUR 856 million, a 22.8% increase from Q1 2024 [42][67] Mobility, International Retail Banking and Financial Services - Revenues decreased by 7.4% to EUR 2.0 billion, primarily due to asset disposals, but showed a slight increase of 0.8% when excluding these impacts [8][44] - Operating expenses were reduced by 12.6% to EUR 1,180 million, improving the cost-to-income ratio to 59.0% [52][44] - Group net income for this segment rose by 14.5% to EUR 319 million [55][67] Corporate Centre - The Corporate Centre recorded net banking income of EUR -112 million, an improvement from EUR -162 million in Q1 2024 [56][67] - Group net income from the Corporate Centre was EUR 12 million, compared to a loss of EUR 327 million in Q1 2024 [60][67] Financial Structure - As of March 31, 2025, the CET1 ratio stood at 13.4%, approximately 320 basis points above the regulatory requirement [17][18] - The total consolidated balance sheet amounted to EUR 1,554 billion, with total shareholders' equity of EUR 71 billion [18][69] - The company issued EUR 10.0 billion in medium/long-term debt under its 2025 financing program [18][19]
Societe Generale: First quarter 2025 earnings