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).
28 Mar 17
ClearStar* (CLSU): Building a background for growth (CORP) | Sound Energy (SOU): TE-8 results (HOLD) | LiDCO* (LID): 2017 should be a transformative year (CORP) | Proteome Sciences* (PRM): FY 2016 in line. Moving towards breakeven (CORP) | Fulcrum (FCRM): Significant market potential, rising margins and a strong balance sheet (BUY) | Mortgage Advice Bureau (MAB1): Strong and growing intellectual property (BUY) | 7digital* (7DIG): Open offer result (CORP)
Another positive verdict
20 Mar 17
Burford’s results for 2016 produced another outstanding set of figures. Revenue grew by 60% to $163.4m with strong growth in the litigation finance business and an additional boost from a secondary sale in the Petersen case. On an underlying basis net income grew to $114m, a 75% increase despite the investment in growing capacity which increased costs. A combination of ongoing investment and gains and increases on valuation saw the fair value of the litigation assets increase 67% to $559m, underpinned by a growth in invested capital to $394m. With the results statement there was an announcement of a further sale of 9% of the Petersen case at a valuation of 20 times the cost of investment.
Small Cap Breakfast
28 Mar 17
Path Investments—Publication of prospectus from the Energy Investment Company. Raising £1.4m. Admission due on or around 30 March | Franchise Brands—Schedule 1 detailing £28m reverse takeover of Metro Rod. Admission expected 11 April | Alpha FX Group— Schedule 1 from the foreign exchange provider focused on managing exchange rate risk for UK corporates that trade internationally. Fundraise TBC. Admission expected 7 April. | K3 | Capital Group—Schedule 1 from the Group of business and company sales specialists across business transfer, business brokerage and corporate finance. Admission date and fundraise details TBC. | Integumen— Schedule 1 from the personal health company developing and commercialising technology and products for the human integumentary system. Raising £2.16m at 5p. Expected market cap £8.16m. Admission expected 5 April. Tufton | Oceanic Assets– Offer extended to 9 May to enable investors to complete further due diligence.
Small Cap Breakfast
23 Mar 17
K3 Capital Group—Schedule 1 from the Group of business and company sales specialists across business transfer, business brokerage and corporate finance. Admission date and fundraise details TBC. Integumen— Schedule 1 from the personal health company developing and commercialising technology and products for the human integumentary system. Raising £2.16m at 5p. Expected market cap £8.16m. Admission expected 5 April. Sentinel—Investment company expecting NEX admission/introduction on 24 March. £636k raised pre-IPO. BioPharma Credit—Expected Gross Initial Acquisition Proceeds now c.$338m. Gross Cash Proceeds capped at $423m with placing and open offer. Results expected 23 March with admission now due 30 march.