SOCIETE GENERALE

Analysis of Societe Generale share price

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The shares of France's major banking groups are among the most popular assets for investors in France, not only because of their short and long-term profitability, but also because of the numerous analytical data that can easily be found about them. If you too wish to invest in such securities, here are a few explanations about Societe Generale shares, which are among the most popular stocks, to help you take a better strategic approach.  

Elements that can influence the price of this asset:

Analysis N°1

As with all French and European banks, certain indicators will be monitored, such as Societe Generale's ability to meet the Basel 3 solvency ratio, which corresponds to 9% of shareholders' equity, as well as its control of its commitments in investment banking, centralisation of derivative compensation, cost of risk and return on equity or ROE.

Analysis N°2

Of course, the economic environment in which the banking group operates will have an impact on its profitability and all relevant economic data will be monitored.

Analysis N°3

In addition to this, important decisions and communications from the European Central Bank or ECB, which will of course have a direct influence on the price of this stock as well as on those of other European banks, will be closely monitored.

Analysis N°4

The development of the online bank Boursorama Banque, created and owned by Societe Generale, will also be an element to be followed with great interest. We therefore advise you to take a closer look at it.

Analysis N°5

Finally, we will of course keep an eye on the various major competitors of this banking company.

76.4% of retail investor accounts lose money when trading CFDs with this provider.

General presentation of Societe Generale :

The Societe Generale Group is one of the leaders in the French banking market. Its revenues are spread over several types of activities, the main one being, of course, retail banking in France and online banking with its subsidiary Boursorama, but also corporate and investment banking, international retail banking, insurance services and asset management.

The Societe Generale Group currently employs no less than 148,300 people in no less than 76 countries. The activities of this universal bank are divided into three main areas: the retail networks in France with Societe Generale, Crédit du Nord and Boursorama, the international retail networks with IBSF (International Banking Financial Services) and the corporate and investment bank (SG CIB) which manages Fixed Income, structured finance, debt, Forex and equity and advisory activities.

The group's two other business lines are specialised financial services and insurance and private banking, asset management and investor services.

 

Knowing the competition of the Societe Generale share:

Societe Generale is still one of the leaders in the international banking market. In particular, this bank supports one in three exporting companies and has a significant capacity to position itself as the main bank for its customers. It thus benefits from a good reputation since numerous studies have shown the quality of its transaction processing, its responsiveness and the efficiency of its customer service. However, European banks represent a competition that must be taken into account before starting to speculate on the Societe Generale share price and it is therefore essential to know the companies directly competing with it.

Here is the list of the main competitors of the Societe Generale:

 

Strategic alliances set up by the Societe Generale Group :

In the past, Societe Generale has also been able to position itself as one of the leaders in the banking sector through strategic partnerships and joint ventures. We therefore invite you to find out more about the various alliances set up by this group.

 

Introduction and listing of Societe Generale shares :

Societe Generale Group shares are listed on the NYSE and are part of the CAC40. The group's results fell slightly in 2011 and 2012 but have been rising again since 2013. However, since the end of 2017, its share price has been on a relatively significant downward trend.

The events that influence Societe Generale's share price are frequent and we advise you to keep a close eye on current events so that you can identify them effectively and be able to use them to your advantage when taking positions.

 

What are the advantages of Societe Generale shares as a stock market asset?

The Societe Generale share offers a number of advantages for investors wishing to trade it online. Firstly, we can highlight the international dimension of this banking group, which is currently number 3 in France but enjoys a strong presence in Europe and the rest of the world, both in terms of its retail and corporate banking activities.

The group has also been able to focus on its three core businesses, namely retail banking in France, foreign banking networks with its international financial services and corporate and investment banking with an almost perfect balance.

Societe Generale also boasts a small share of the net banking income of emerging countries, whose situation has been known to be unstable for several years.

Finally, Societe Generale Group has the advantage of a strong balance sheet, particularly since it sold its 20% stake in the asset management company Amundi in 2015.

 

The disadvantages of Societe Generale shares as a stock market asset :

Firstly, investors are less and less interested in the assets of European banks as a result of capital-intensive European regulation and lower interest rates. On the other hand, market share gains by online banks may also weigh on the profitability of traditional banks despite the presence of Societe Generale's Boursorama brand. Similarly, the development of online credit and insurance services is a threat to the group.

There is also a certain morosity in the French banking sector, particularly following the new regulations concerning commissions.

The group's positioning in Russia may also worry investors due to the significant deficit of the Rosbank subsidiary in 2016.

More generally, risks increased in 2016 for the group with a 10% ROE target that was not achieved and the weight of numerous lawsuits that resulted in a stock market discount compared to those of its competitors.

Frequently Asked Questions

Are Societe Generale shares listed on indices other than the CAC 40?

While Societe Generale is part of the CAC 40 stock market index, it also includes other benchmark stock market indices. Its capitalisation is also included in the calculation of the CAC All Shares, CAC All-Tradable, CAC Large 60, Euro Stoxx 50, Euronext 100, Euronext CDP Environnement France EW, Euronext CDP Environnement France Ex Oil, PEA and Stoxx France 50 indices. The price of this share is, of course, listed on compartment A of the Euronext Paris stock exchange.

What are the latest results published by Societe Generale?

Societe Generale recently published its financial results for the financial year 2019. The group's result was €3,946 million over this period, with a PER of €3.40 and a dividend of €2.20, the payment of which has however been cancelled for 2020 due to the market disruption caused by the Covid-19 pandemic. The yield per share for the year 2019 was €4.10.

What are the outstanding deposits and loans managed by Societe Generale?

Currently, in 2020 and based on figures published at the end of 2019, the Societe Generale banking group manages nearly €418.6 billion in outstanding deposits and €450.2 billion in outstanding loans. These data are of course important for your fundamental analyses of this value as they provide indications of the risk incurred by this bank.

76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.