Published by Global Banking & Finance Review®
Posted on October 30, 2025
4 min readLast updated: January 21, 2026
Add as preferred source on GoogleSocGen surpasses profit forecasts with an 11% rise, but shares dip as CEO Krupa holds back on buybacks. The bank's net income reached 1.52 billion euros.
By Mathieu Rosemain
PARIS (Reuters) -Societe Generale beat forecasts with an 11% third-quarter profit rise on Thursday, as the French bank's CEO Slawomir Krupa stepped up his drive to curb costs.
A bigger-than-expected fall in expenses, as well as signs that a turnaround plan for SocGen's retail business is starting to work, offset a mixed performance at its investment bank.
Shares in France's third-biggest listed bank fell 3%, however, giving up earlier gains after Krupa declined to commit to handing over more excess capital to shareholders.
SocGen is among the last of Europe's major banks to post earnings for the period, with most showing a strong quarter with growth fuelled by higher margins on loans, rising but still small bad debt numbers and demand from corporate clients.
The French bank's group net income rose to 1.52 billion euros ($1.77 billion), up from a year earlier and more than 200 million euros above the average analyst estimate.
Sales fell 2.7% to 6.66 billion euros over the period, above expectations, due to a smaller footprint after asset disposals.
Krupa, who became CEO in 2023, launched a turnaround plan in a bid to end SocGen's reputation as a European laggard.
After initially struggling, his cost cutting, asset disposals and strengthening of SocGen's capital position is winning over investors, with its shares doubling in 2025.
"It is somewhat disappointing that there is no new news on distributions," analysts at Jefferies said, adding: "Banks with meaningful excess capital ought to be buying their shares back at a 20% discount to tangible book".
SocGen's common equity tier 1 ratio, a key measure of financial strength, stood at 13.7% at end-September, above its own full-year target of more than 13%.
CREDIT AGRICOLE SEES WEAKER PERFORMANCE
SocGen's French rival Credit Agricole had a less rosy quarter, saying on Thursday that its net income would have fallen had it not benefited from revaluing its stake in Italian lender Banco BPM. Credit Agricole shares dropped 2%.
In investment banking, sales rose slightly at both Credit Agricole and SocGen but trailed BNP Paribas, Deutsche Bank and Wall Street rivals during a bumper period for trading.
SocGen's fixed income and currency trading revenues rose 12%, but at its traditionally strong equities unit they fell 6.7%. Meanwhile, its French retail unit was boosted by net interest income rising and mortgage lending surging 74%.
SHARES DOUBLE IN 2025 AFTER LONG UNDERPERFORMANCE
Krupa acknowledged there was more to do at SocGen.
"We continue to move in the right direction, but our goal is to do even better," he told reporters. "When it comes to operational efficiency, there is still certainly more to do."
SocGen's shares have doubled in 2025, against a 49% rise across the European banking sector, although that follows a long period of underperformance.
Krupa's cost-cutting has helped, with SocGen's cost-to-income ratio, an efficiency gauge showing how much a bank spends to generate each euro of revenue, below expectations at 61%, and below its annual sub-65% target.
SocGen also said its digital BoursoBank, a cornerstone of Krupa's strategy, crossed a threshold of 8 million clients in July, ahead of schedule amid intensifying competition in France.
BACKDROP OF FRENCH POLITICAL CRISIS
French bank shares have come under pressure in recent months as France fasces its worst political crisis in decades and investors question the sustainability of government finances.
S&P and Fitch have both downgraded French long-term debt rating, which could raise funding costs for banks like SocGen.
($1 = 0.8575 euros)
(Reporting by Mathieu Rosemain; Editing by Thomas Derpinghaus, Tommy Reggiori Wilkes and Alexander Smith)
Investment banking is a financial service that assists companies in raising capital by underwriting and issuing securities. It also provides advisory services for mergers and acquisitions.
A turnaround plan is a strategy implemented by a company to improve its financial performance and operational efficiency, often in response to poor performance or market challenges.
The common equity tier 1 ratio is a measure of a bank's financial strength, calculated by dividing its core equity capital by its total risk-weighted assets.
Excess capital distributions refer to the return of surplus capital to shareholders, typically through dividends or share buybacks, when a company has more capital than needed for operations.
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