Société Générale revealed a robust financial performance for the first quarter of 2025. The French banking giant reported quarterly revenues of EUR 7.1 billion, marking an increase of 6.6% compared to the same period last year, and a 10.2% rise excluding asset disposals, surpassing their annual target growth rate of more than 3%.
The bank's cost management strategy resulted in a 4.4% decline in operating expenses, excluding asset disposals, beating the 2025 target of reducing costs by more than 1%. The cost-to-income ratio stood at 65.0%, surpassing the less than 66% target set for 2025.
The cost of risk was recorded at 23 basis points, below the anticipated 25 to 30 basis points for 2025. S1/S2 provisions amounted to EUR 3.1 billion, more than double the 2024 cost of risk, and were increased further. Group net income reached EUR 1,608 million, more than doubling Q1 2024 figures.
Return on Equity (ROTE) was noted at 11.0%, exceeding the target of more than 8% for 2025. Adjusting for net gains on asset disposals and a quarterly tax distribution, ROTE was at 10.9%.
The Group's CET1 ratio was 13.4% by the end of Q1 25, standing 320 basis points above the regulatory requirement, and the Liquidity Coverage Ratio was 140%. Société Générale completed its 2024 share buy-back program worth EUR 872 million, and provisioned a dividend distribution of EUR 0.91 per share.
February 28 marked the completion of SGEF's disposal activities, excluding the Czech Republic and Slovakia, positively impacting the CET1 ratio by around 30 basis points. The sales of Societe Generale Private Banking Suisse and SG Kleinwort Hambros concluded on January 31 and March 31, respectively, contributing approximately 10 basis points to the CET1 ratio.
Slawomir Krupa, CEO of Société Générale, stated, "« We are releasing today a very good set of results. Our revenues have grown across all our businesses. Our costs and our cost-to-income ratio have decreased across all our businesses. Our first quarter results are above all our annual targets, putting us in a favourable position to achieve them, thanks to our disciplined execution and prudent and rigorous risk management. Since the presentation of our Strategic Plan, we have built a strong capital position, and we have delivered a steady and material increase in our performance. Our diversified and resilient model allows us to navigate efficiently in the current environment. This is the result of the precise execution of our strategy by fully focused and talented teams whom I warmly thank for their commitment. We measure how far we've come and how far we still have to go. We will therefore pursue our work with the same focus and discipline, confident in our ability to deliver our 2026 roadmap and beyond, a sustainable and profitable growth. »"