📈 Societe Generale and Komerční banka: strong results and optimistic outlook! 🚀

French banking group Societe Generale $GLE.PA together with its Czech subsidiary Komerční banka surprised investors with strong Q4 2024 results .

Societe'snet profit more than doubled to 1.04 billion eurosthanks to a rebound in retail banking and strong activity in equity markets . The bank's shares reacted to the news by rising sharply by more than 10 %, to €35 per share., the highest level since February 2022.

Societe Generale's key results:

Net interest income in France +36% 📊

Investment bank revenue +12%

Total revenue up 11.1% to €6.62 billion

Share buyback plan of €872 million

Payment of 50% of net profit to shareholders

📌 Strategy towards higher profitability
CEO Slawomir Krupa , who has led the bank since 2023, is gradually gaining confidence. His plan to control costs, sell assets and improve margins is delivering results. The bank has set an ambitious return on tangible equity (ROTE) target of 9-10 % by 2026, and expects to achieve a ROTE of 10 percent by 2024.6,9 % (up from 4.2% in 2023).

🔍 What does this mean?
Analysts appreciate the progress, but also expect steady, long-term profitability improvement before SocGen is seen as a fully recovered bank. For example, its competitors have increasingly efficient cost-to-income ratios, and this is an area where the bank must continue to improve.

🏦Commercial bank: steady growth and an attractive dividend!
Komerční banka $KOMB.PR, which is part of the Societe Generale group , also announced solid results for 2024. The year-on-year growth in revenue and profit confirms its stable position on the Czech market and promises an attractive return for shareholders.

Komerční banka's (KB) results for 2024:

Total revenue +1.6% yoy to CZK 36.8bn

Operating expenses +2.3% to CZK 17.7 billion

Net profit +10.4% to CZK 17.2 billion

Quarterly profit +44.4% y/y to CZK 4.7 billion

Core Tier 1 capital ratio 17.6%

📢 Attractive dividend:
KB's Board of Directors proposes a dividend payout of CZK 91.30 per share. The total dividend payout is expected to be CZK 17.2 billion, equivalent to100 % net profit, with the final form to be decided by the general meeting on 24 April 2025.

🏦 Strong capital position and future outlook
KB boasts capital adequacy 18,8 %, which enables it not only to maintain a stable dividend policy but also to finance future growth. With the Czech banking sector in good shape, KB looks like an attractive investment opportunity for investors seeking stable dividend yields.

Komerční banka's shares are reacting to the positive results and dividend by rising by more than 3%!

Societe Generale shows improving fundamentals and is betting on long-term profitability improvement. Share buybacks and a high profit payout signal confidence in future growth.

Komerční banka is a stable player with consistent growth and an attractive dividend. For investors preferring a more conservative strategy, it may be KB a more attractive option than its parent SG.

📢 What do you think about the results? What do you think about the European or Czech banking sector?