MW Here's how one French bank turned out to be a big winner from Trump's victory

By Steve Goldstein

Societe Generale posted a stronger-than-forecast profit in the fourth quarter, buoyed by stock market trading after President Donald Trump's election win.

Societe Generale's (FR:GLE) fourth-quarter profit more than doubled to EUR1.04 billion ($1.08 billion) from EUR429 million, as net banking income rose 11% to EUR6.62 billion. That was a big beat compared to analyst expectations, and before provisions was 8% ahead of consensus, according to analysts at RBC.

Societe Generale shares jumped 9%, the best gain in four months. The stock is up 54% over the last 52 weeks.

The bank said revenue from its equities business rose 10% to a record high due to "favorable market conditions, particularly after the result of the presidential elections in the United States." That helped its global banking and investor solutions see revenue growth of 12%.

The bank also benefited from its French retail, private banking and insurance business, as its private bank's assets were up 7% from a year and its life insurance business also rose 7%, even as average loans fell by 4% and deposits fell by 1%.

Its payout ratio of 50% for 2024 was at the higher end of expectations, according to RBC, and the French bank is now targeting a payout ratio of 50%, up from 40% to 50%.

Societe Generale is forecasting 2025 revenue growth of at least 3%, versus adjusted growth of 7% in 2024, and a cost-to-income ratio of 66%, versus 69% in 2024.

-Steve Goldstein

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February 06, 2025 06:18 ET (11:18 GMT)

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