Societe Generale has reported its financial results for the fourth quarter and full year of 2024, revealing a significant increase in net income and surpassing all group targets. The group achieved a net income of EUR 4.2 billion, marking a 69% rise compared to 2023.
The annual revenues reached EUR 26.8 billion, representing a growth of 6.7% from the previous year and exceeding the target set for 2024. This growth was primarily driven by a strong rebound in net interest income in France and an excellent performance in Global Banking and Investor Solutions, which generated revenues above EUR 10 billion.
The cost-to-income ratio stood at 69.0%, below the target of less than 71% set for the year, due to effective cost control measures that maintained stability compared to 2023. The cost of risk was recorded at 26 basis points, aligning with the lower end of the guidance range for 2024. Profitability (ROTE) was reported at 6.9%, surpassing the expected target of over 6%. The CET1 ratio was noted at 13.3% by the end of the year, approximately 310 basis points above regulatory requirements.
In terms of shareholder distribution, there is a proposed increase of 75% compared to last year. The distribution amounts to EUR 1,740 million or EUR 2.18 per share, comprising a cash dividend of EUR 1.09 per share and a share buyback program worth EUR 872 million, equivalent to another EUR 1.09 per share.
Looking ahead to financial targets for 2025, Societe Generale aims for revenue growth exceeding +3% compared to this year while decreasing costs by more than -1%. The bank plans to improve its cost-to-income ratio to less than 66%, maintain its cost of risk between 25 and 30 basis points, and increase ROTE beyond +8%. The CET1 ratio is expected to remain above +13% throughout next year.
Slawomir Krupa, Chief Executive Officer of Societe Generale Group stated: "In 2024, our performance improves materially. All our targets are exceeded and ahead of plan." He acknowledged strong capital build-up alongside sustainable business growth as key factors contributing towards doubling earnings per share while expressing gratitude towards employees' dedication across departments globally: "I would like thank entire Societe Generale team their remarkable commitment serving clients Bank."