0719 GMT - Societe Generale's better-than-expected results and guidance for 2025 that points to more cost controls should provide confidence that its 2026 targets are in reach, RBC Capital Markets' Anke Reingen and Matthew Russell say in a research note. The French lender delivered a good set of results, the analysts say. An increase to its payout ratio to half of net profit from 2024 onward isn't totally surprising, RBC says. Moreover, Societe Generale is targeting a return on tangible equity--a key profitability metric--of more than 8% in 2025 and reiterated its guidance of a return of 9%-10% next year. This should give confidence on its outlook, given that consensus expectations are close to the low end of its 2025 guidance but remain below Societe Generale's 2026 targets, RBC says. (adria.calatayud@wsj.com)
(END) Dow Jones Newswires
February 06, 2025 02:19 ET (07:19 GMT)
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