Analysis of Societe Generale share price

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Societe Generale: A better than expected Q4

11/02/2021 - 13h45

Societe Generale ended its fourth quarter down. Nevertheless, the result posted is much more commendable than investors had hoped for. The share climbed in the stock market on Wednesday.

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.

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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.

Analysis of Societe Generale share price
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The major competitors of Societe Generale

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:

Crédit Agricole


The major partners of Societe Generale

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.

Crédit Agricole

Societe Generale has notably joined forces with Crédit Agricole to pool their asset management through a joint venture.


Societe Generale has also joined forces with BNP, Crédit Agricole and CapGemini to join Commerce One, an electronic marketplace for business-to-business purchasing.

Other partnerships

have been set up by Societe Generale but with smaller, unlisted companies, which we will therefore not discuss in more detail here.

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The factors in favour of a rise in the Societe Generale share price:

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 factors in favour of a drop in the Societe Generale share price:

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.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

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.

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