- SocGen continues to string together substantially better-than-expected quarters, with a fourth quarter that beat on almost every line that matters.
- The French Retail business seems to have more than stabilized, and initial results from the restructured GBIS segment have been encouraging.
- I like management's decision to deploy more capital into leasing (a double-digit ROTE business) and discuss taking over some or all of ING's French retail operations.
- Expectations are heading higher and SocGen now must show that it can consistently generate improved profitability; a low single-digit long-term growth rate still supports an attractive prospective return.
For further details see:
Quarter By Quarter, Outperformance Is Building Société Générale's Credibility