SCGLF - Société Générale Q4 Earnings: All In Line With Its Strategic Plan
2024-02-15 05:23:11 ET
Summary
- SocGen Capital Market Day estimates may have been overly conservative, but the bank has already increased its 2024 financials target.
- Supportive shareholders' remuneration is a downside protection from current/potential investors.
- Q4 results show strong financial performance and valuation metrics indicate a buy opportunity.
Last week, Société Générale ( SCGLY , SCGLF ) (SocGen) released its Q4 and FY 2023 results. The quarter results were better than expected, with a positive RoTE recovery in place and solid performance in the French retail segment; however, we should recall the latest strategic plan, which disappointed investors . Looking back, Wall Street expressed concern over new financial targets, including a RoTE (Return on Tangible Equity) range of 9%-10% and a sales trend of 0%-2%, implying limited portfolio growth. Despite the initial disappointment, we view the new CEO's intention to reset expectations positively, and we believe bank estimates may be overly conservative. In our forward-thinking view, we anticipate 1) higher revenue growth and 2) a positive spread in earnings thanks to higher-for-longer rates....
Société Générale Q4 Earnings: All In Line With Its Strategic Plan