Societe Generale: Higher ROTE And Capital Returns Finally Support A Buy (Rating Upgrade)

Summary Q2 delivered stronger operating leverage, with record net income, a lower cost/income ratio, and H1 ROTE reaching 12%. The new 2029 plan targets 13–14% ROTE, sub-55% cost/income, and sustained revenue growth. BoursoBank, AI-driven efficiencies, and better French retail trends strengthen the medium-term earnings story beyond the rate cycle. Valuation still reflects a discount to peers, while higher dividends, buybacks, and excess-capital distributions improve total-return potential. HJBC/iStock Editorial via Getty Images Here at the Lab, we have been waiting to write about Société Générale ( SCGLY , SCGLF , SOCG:CA ) after the CMD. In our last analysis, we noted a pricey valuation and further This article was written by Mare Evidence Lab 6.18K Followers Follow Buy-side hedge professionals conducting fundamental, income oriented, long term analysis across sectors globally in developed markets. Please shoot us a message or leave a comment to discuss ideas.DISCLOSURE: All of our articles are a matter of opinion, informed as they might be, and must be treated as such. We take no responsibility for your investments but wish you best of luck. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.