Societe Generale SA (SCGLF) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Ladies and gentlemen, welcome to the Societe Generale conference call. Gentlemen, please go ahead. Good morning, everyone, and thank you for joining us today. I'm very proud to report strong performance numbers for 2025. As a result, we are upgrading our 2026 target for profitability and confirming all other CMD targets as well. 2025 was a defining year. We set new records for revenues with €27.3 billion and for group net income which reached the €6 billion mark. The successful transformation sets the stage for us to sustain long-term profitable growth. Significant improvement in our financial results in 2025 cuts across all metrics, outperforming the targets we upgraded in Q2 2025. Our revenues were up by almost 7%, excluding asset disposal. That's more than double our target of more than 3%. Even more remarkable is that all our businesses contributed to this strong performance. As you know, our commitment to reduce our cost base, both structurally and significantly, is absolute. The proof point here is the 2% decrease in costs excluding asset disposal over the past year. That 2% is far better than what we targeted, which was a decrease of at least 1%. And it translates into a cost-to-income ratio of 63.6% in 2025, an improvement of more than 5 percentage points over the last year. Keep in mind this is also better than the 2025 target we set of the cost to income below 65%. Cost of risk is within our guidance at 26 basis points reflecting the strength or asset quality and our capacity to effectively manage risks across the cycle. All of this has significantly boosted our profitability with a ROTI reaching 10.2% for the year and 9.6% excluding capital gains on disposals. This is above our 2025 target of around 9%. These earnings allowed us to further strengthen our c...