Société Générale Reports Record First-Half 2026 Net Income, Raises ROTE Target to About 11%

Paris, July 30, 2026, 6:25 a.m. — Société Générale reported record net income attributable to the Group of €3.5 billion for the first half of 2026 and said it is raising its 2026 return on tangible equity (ROTE) target to about 11%. The French bank also announced an exceptional €1.5 billion share buyback and a €0.75 per-share interim dividend, up 23% from 2025.

The Group said first-half revenues reached €14.2 billion, up 2.4% year on year, in line with its 2026 target of more than 2% growth. Costs fell 5.0%, better than the prior 2026 target of around 3% lower, while the cost-to-income ratio improved to 59.7%, in line with the target of below 60%. The cost of risk came in at 26 basis points for the half, at the low end of the bank's 2026 target range of 25 to 30 basis points.

For the second quarter alone, Société Générale reported record net income attributable to the Group of €1.8 billion, with revenues up 4.5%, costs down 4.1%, a cost-to-income ratio of 58.6%, a cost of risk of 27 basis points, and ROTE of 12.2%.

Société Générale Chief Executive Officer Slawomir Krupa, who succeeded long-time CEO Frédéric Oudéa in May 2023 and has focused on streamlining operations and sharpening the bank's focus on its core franchises, said the results "illustrate once again the strength and strong improvement of our financial performance, the result of the rigorous execution of our strategic plan." He added that the Group's "net income attributable to the Group recorded a strong increase over the half-year, reaching a record level," and said improved operating efficiency, with higher revenues and sharply lower costs, supported the higher 2026 ROTE target. Krupa also said the bank's solid capital position allowed it to announce the exceptional share buyback and the higher interim dividend, and said he will present the new strategic and financial roadmap on September 21 at the Capital Markets Day.

The Board of Directors, chaired by William Connelly, reviewed the second-quarter and first-half 2026 results on July 29, 2026.

Group performance

Net banking income for the second quarter was €7.096 billion, up 4.5% from the same period in 2025 and 6.1% at constant scope and exchange rates. The figure included a €70 million impact from disposals.

For the half year, Group revenues increased 2.4% from first-half 2025 and 5.2% at constant scope and exchange rates.

Group operating expenses in the second quarter amounted to €4.155 billion, down 4.1% year on year and 2.7% at constant scope and exchange rates. The decline reflected, among other items, €41 million from disposals, a €8 million reduction in transformation costs, and a €36 million IFRIC 21 tax reversal. Costs also included a €127 million charge linked to the launch in June 2026 of a global employee share ownership plan, up €26 million from the second quarter of 2025. Adjusted for these items, operating expenses fell by €117 million.

The Group's cost-to-income ratio improved to 58.6% in the quarter, compared with 63.8% a year earlier. For the first half, operating expenses fell 5.0% year on year and 2.7% at constant scope and exchange rates. Because that decline was better than the initial target of about 3%, the bank revised its cost-reduction objective to about 4% between 2025 and 2026. The half-year cost-to-income ratio was 59.7%, compared with 64.4% in first-half 2025.

The cost of risk was €390 million in the second quarter, or 27 basis points, within the 2026 target range. It consisted of a provision on non-performing exposures of €405 million and a €15 million release of provisions on performing exposures (Stage 1/Stage 2). At June 30, the Group held €2.933 billion in provisions on performing exposures, stable versus March 31, 2026. Stage 2 provisions fell 2.4% and represented 3.4% of Stage 2 loans. The gross non-performing loan ratio was 2.70% at June 30, 2026, down from 2.75% at March 31, and the net coverage ratio for non-performing exposures was 83% after guarantees and collateral.

Capital and shareholder returns

At July 30, 2026, the Group's Common Equity Tier 1 ratio was 13.2%, or about 290 basis points above regulatory requirements. The Liquidity Coverage Ratio stood at 146% at the end of June, compared with a quarterly average of 147%, and the Net Stable Funding Ratio was 115%.

Société Générale said its 2026 funding program was 96% complete for vanilla issuance at the end of July. The parent company had issued €15.1 billion of medium- and long-term vanilla debt under its 2026 funding program, including €3.1 billion of pre-funding issued at the end of 2025. Subsidiaries had issued €2.8 billion, bringing total Group medium- and long-term vanilla debt issuance to €17.9 billion.

The bank said it had received the necessary approvals, including from the European Central Bank, which directly supervises Société Générale as one of the eurozone's largest institutions under the Single Supervisory Mechanism, to launch an exceptional €1.5 billion share buyback to be canceled. The program is expected to start no earlier than August 3, 2026. The Board also approved an interim dividend of €0.75 per share for first-half 2026, to be detached on October 5, 2026 and paid on October 7, 2026.

Retail banking, private banking and insurance

In France, deposits at the SG network stood at €219 billion in the second quarter, down 3% year on year and 1% versus the first quarter, with demand deposits up and term deposits down. Loan balances were €190 billion, down 2% year on year and stable from the previous quarter. The loans-to-deposits ratio was 87%.

Private Banking recorded net inflows of €2.4 billion in the second quarter, with annualized inflows representing 7% of assets under management. Assets under management rose 10% year on year to a record €145 billion. Quarterly net banking income was €363 million, up 18% year on year.

Insurance, including operations in France and abroad, continued to post strong commercial performance. Net inflows in savings life insurance were €2.3 billion in the second quarter, while savings life insurance assets rose 11% year on year to a record €167 billion. Unit-linked products represented 43% of the total.

BoursoBank, France's largest online bank, which had around 9.1 million customers at the end of June 2026, said assets under administration, including deposits and financial savings, reached €84 billion, up 16% year on year. Deposits were €49 billion, up 9%, and life insurance balances rose 20% to €16 billion. Brokerage orders increased to 3.7 million, up 25%. Loans stood at €17.8 billion, up 8% year on year. BoursoBank contributed €84 million to Group net income in the quarter, in line with its 2026 annual objective of more than €300 million, and reported a RONE of 60.7%.

Global banking and investor solutions

The Global Banking and Investor Solutions division reported second-quarter revenues of €2.718 billion, up 2.7% year on year and 4.0% at constant scope and exchange rates. For the first half, revenues were €5.473 billion, down 1.3%.

Market and Investor Services generated €1.743 billion in second-quarter revenues, down 0.5% year on year. Within that segment, market activities generated €1.561 billion, down 1.0%. Equity activities rose 5.5% to €1.016 billion, supported by strong client activity in derivatives, financing and prime services. Rates, credit and foreign exchange revenues fell 11.3% to €545 million in an environment that remained unfavorable for the largely Europe- and rates-focused portfolio.

Securities Services revenues increased 3.9% to €183 million, helped by higher commissions and net interest margin. Assets under custody reached €5,901 billion and assets under administration stood at €744 billion.

Financing and Advisory revenues totaled €975 million, up 8.9% year on year. Global Banking & Advisory reported a strong quarter, supported by client activity, origination momentum, and continued strength in energy, infrastructure and commodities. The quarter also benefited from a rebound in debt and equity capital markets activity across sectors and regions.

Global Transaction & Payment Services recorded revenue growth of 6.7% year on year, supported by strong corporate deposit gathering across regions.

Operating expenses in the division fell 2.7% year on year to €1.587 billion in the quarter, and the cost-to-income ratio improved to 58.4% from 61.6%. The cost of risk was low at 3 basis points in the quarter. Net income attributable to the Group rose 15.6% to €867 million, with a RONE of 19.9%.

Mobility, retail banking and financial services internationally

International retail banking continued to grow in the quarter, with loans up 5.6% year on year to €63 billion and deposits up 7.5% to €78 billion. In Europe, loans rose 8.8% to €49 billion, with growth in both retail and corporate clients, including 8.0% in the Czech Republic and 11.4% in Romania. Deposits in Europe also rose 8.8% to €61 billion, including 10.2% in the Czech Republic and 4.3% in Romania.

In Africa, the Mediterranean Basin and Overseas Territories, loans rose 1.7% to €14 billion and deposits rose 3.2% to €17 billion.

Ayvens, the fleet-leasing business formed from ALD Automotive's 2023 acquisition of LeasePlan that created one of the world's largest vehicle leasing operators, saw productive assets stable year on year at €52.6 billion, as the business continued to focus on profitability and prudent residual value management. Consumer finance loans amounted to €23 billion.

Revenues for the Mobility, Retail Banking and Financial Services International division were €1.872 billion in the quarter, down 4.9% at constant scope and exchange rates, reflecting the expected normalization of used-vehicle sales results at Ayvens. For the half year, revenues fell 1.1% to €3.815 billion.

International retail banking revenue rose 2.9% to €869 million in the quarter, with Europe up 3.4% to €541 million and the Africa, Mediterranean Basin and Overseas Territories region up 1.9% to €328 million.

Mobility and financial services revenue fell 10.1% to €1.003 billion, mainly due to Ayvens. Ayvens posted revenue of €755 million, down 13.0% year on year, as used-vehicle sales normalized as expected. The average result of around €330 per vehicle was within the company's communicated 2026 target range of €200 to €600. The margin was about 610 basis points in the quarter, compared with 550 basis points a year earlier. On a social reporting basis, Ayvens recorded a cost-to-income ratio of 50.3% and a RONE of 13.4%, in line with its 2026 targets.

Consumer finance revenues were stable year on year at €248 million. Higher net interest income, up 9%, offset a comparison base effect in the second quarter of 2025 linked to a positive asset revaluation.

Operating expenses in the division declined 3.9% year on year to €973 million. The cost-to-income ratio was 52.0%, unchanged from a year earlier. For the first half, operating expenses fell 5.0% and the cost-to-income ratio improved to 52.8% from 55.5%.

The cost of risk was €156 million in the quarter, or 43 basis points, compared with 40 basis points in the first quarter. For the half year, it was €302 million, or 41 basis points. Net income attributable to the Group was €360 million in the quarter, down 8.5% year on year, with a RONE of 13.4%. For the first half, net income attributable to the Group rose 5.5% to €725 million, with a RONE of 13.5%.

Corporate center

The Corporate Center includes the Group's head office real estate management, equity investments portfolio, central treasury activities, certain cross-functional project costs and some unallocated Group costs.

Its net banking income was negative €48 million in the second quarter, compared with negative €160 million a year earlier, helped by better management of excess liquidity and fair-value remeasurement of liabilities. For the half year, net banking income was negative €143 million, compared with negative €273 million in first-half 2025.

Operating expenses were negative €178 million in the quarter, compared with negative €164 million a year earlier. They included €127 million in costs related to the global employee share ownership plan launched in June 2026. For the half year, operating expenses were negative €249 million, versus negative €267 million a year earlier.

Net income attributable to the Group for the Corporate Center was negative €111 million in the second quarter and negative €177 million for the first half.

Outlook and background

Société Générale said its results support a higher profitability target for 2026 and a larger distribution to shareholders. The Group described its capital and liquidity position as comfortably above regulatory requirements.

The bank said it continues to support innovation and transition financing in areas including energy, low-carbon transport and carbon capture. During the quarter, it financed Fervo Energy in the United States, supported sustainable mobility through financing of next-generation cargo aircraft compatible with sustainable aviation fuels, and participated in the development of Eni CCUS Holding in the United Kingdom.

The Group also said it launched a financial and operational partnership with Ardian focused on Nature-Based Solutions, participated in financing Naturion in the United States, and renewed its commitments under Act4Nature International for 2026-2028.

Société Générale said it has nearly 110,000 employees, serves 27 million customers in 58 countries, and operates across three core businesses: retail banking, private banking and insurance in France; global banking and investor solutions; and international retail banking, mobility and specialized financial services.

The company said its press releases are certified with blockchain technology and directed readers to its investor website and Twitter/X account @societegenerale for more information.