Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SOCIETE GENERALE SA. We currently have 8 research reports from 2 professional analysts.
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SOCIETE GENERALE SA
SOCIETE GENERALE SA
A strong set of P&L results...
09 Feb 17
Société Générale (SocGen) has just released its Q4 16 (FY16) earnings. Total income at €6.13bn was 1% higher than consensus expectations, while expenses were 1% higher than expectations. Thanks to net loan loss recoveries in the CIB division, Q4 16’s cost of risk was much lower than expected at €486m (€701m expected). Operating income at €1,245m was therefore 22% above expectations. The CET1 ratio at 11.5% was 10bp higher qoq (100bp higher than the fully-loaded 2019 requirements). SocGen also announced it is intending to float its ALD subsidiary on the stock market in 2017 through the disposal of a limited stake (the French bank remaining the majority shareholder).
23 Nov 16
Top of the 5Y range P/E relative to Sector. 120% outperformance rel.to sector over 5Y. 15% outperformance since early October due to further “flight to safety” within the sector while Italian risk premium widened and banks with emg.mkts exposure underperformed. No positive relative EPS revisions since. And if Monsieur Mustier of Unicredit really fancy a merger with Soc Gen…. bonne chance to Soc Gen. He worked 22 years at Soc Gen but only 4 months at UCG. Perhaps rights issues and balance sheets restructuring in Italy are not so easy nowadays and he wants to go home already
Global markets again...
03 Nov 16
Société Générale published its Q3 16 earnings this morning. Total revenues for the quarter were above both consensus expectations and our own expectations at €6.25bn (clean, excluding the revaluation of own financial liabilities and DVA). The beat was still strongly driven by global markets’ revenues (FICC, equity and prime services) while French retail banking-linked revenues were quite disappointing. Total expenses were a bit better as well and so were loan losses, leading to a strong beat in the operating income (at €1.82bn, clean) versus consensus. Capital formation was strong as well, as the CET1 ratio at 11.4% is 30bp higher qoq.
Good set of P&L-linked results...Capital is the key
04 Aug 16
SG’s Q2 16 earnings release: Total adjusted revenues (for the higher sales price of VISA Europe) are above expectations, driven by all operating divisions. Total expenses are in line with consensus with quite a good cost discipline as these are flat versus Q2 15. Adjusted (for higher litigation costs) loan losses were better than expected. All in all, operating income is 25% above expectations. Disappointing, however, on the solvency side as the CET1 ratio remained at 11.1% (same as in Q2 15).
Decreasing loan losses are not boundless...top-line our main concern
04 May 16
Total revenues (reported at €6,175m) were roughly in line with expectations once all exceptionals are stripped out (clean revenues at €6.1bn). Despite higher expenses (once adjusted for the write-back of the Euribor fine of €218m), adjusted profit before tax was roughly in line with expectations due to lower total loan losses (adjusted calculated profit before tax is €1.08bn). Positive news is on the solvency side as CET1 is now at 11.1%, 20bp higher than in Q4 15. New cost-cuttings in the CIB, on top of those already known at €323m, have been announced and will amount to €220m.
Q4 15 earnings miss, future earnings under pressure...
11 Feb 16
SG's earnings release: The results are well below expectations due to both expenses and provision misses. In addition, we consider management's guidance towards a lower ROE for 2016 as a sort of profit warning. It is not clear yet whether this is more to do with the regulatory environment (higher common equity requirement, higher interest expenses to face with TLAC, MREL, etc...) or the confirmation of a slowing in global economic growth. CET1 is still 10bp higher than expectations at 10.9% (thanks mainly to Amundi).
N+1 Singer - Uncovered Gems - Speed Dating Lunch - A Famous Five for the future?
12 Apr 17
On Friday we hosted our third “speed dating” lunch with the management of five very interesting and contrasting companies not under our formal coverage: Be Heard, Byotrol, Gfinity, Oxehealth and Plant Impact. Each company gave a concise and punchy overview of its business and investment case to a group of fund managers, before rapid fire Q&A. Below we summarise our thoughts on each company with more details inside the note, plus some relevant slides. We believe that all five companies are well-managed and well worth a closer look - we intend to repeat this efficient and popular format for engaging with management teams.
N+1 Singer - Small-cap quantitative research - Growth style screen revamp and 10 focus stocks
06 Apr 17
We have reviewed the performance of our consistent growth screen since the previous refresh on 27 September 2016 and revamped the selection parameters to focus more on forecast sales and EPS growth going forward. In the period under review the consistent growth style screen outperformed the small-cap benchmark by c. 6% and underperformed the microcap index by a similar amount. Interestingly, although growth doesn’t always seem to be defensive as might be expected, however it appears right to buy growth on dips caused by or coincident with wider market volatility. In the new forecast growth screen we take a close look at 10 focus stocks. We will monitor performance and refresh it in three to four months time.
N+1 Singer - Morning Song 25-04-2017
25 Apr 17
Carpetright (CPR LN) Tougher conditions leaves forecasts towards lower end of range | Centaur Media (CAU LN) Bigger steps | Elementis (ELM LN) Positive update confirms strengthening of demand | Rathbone Brothers (RAT LN) Facing the challenge to deliver growth | Vp (VP/ LN) Another niche Hire Station deal prompts 3% EPS upgrades
Small Cap Breakfast
24 Apr 17
Global Ports Holding—Intention to float on Standard List of the Main Market. International cruise ports operator. Seeking $250m raise including $75m primary offer. Dorcaster—Schedule One Update. Admission now expected on AIM 3 May. RTO of Escape Hunt raising £14m at 135p. Verditek— Intention to float on AIM. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Raising £3.5m. Admission in May. Eddie Stobart Logistics— Schedule 1 update. Admission expected 25 April on AIM raising £122m. ADES International Holding— Intends to join the Standard List of the Main Market in May raising up to $170m plus a vendor sale. Provider of offshore and onshore oil and gas drilling and production services in the Middle East and Africa. Admission expected in May. Tufton Oceanic Assets– Offer extended to 9 May on specialist funds segment of Main Market to enable investors to complete further due diligence.
24 Apr 17
Lok’nStore* (LOK): Growth supported by a strong balance sheet (CORP) | Mortice* (MORT): UK acquisition (CORP) | Avacta* (AVCT): Another milestone – 1st non-therapeutics licence (CORP) | Petra Diamonds (PDF): Trading update and Q3 results (BUY) | Nasstar* (NASA): Growth and margin focus (CORP)