This article first appeared on GuruFocus .
Release Date: July 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Record net income of EUR3.5 billion for H1 2026, ahead of annual targets.
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Strong cost discipline with operating expenses down 5% versus H1 2025, exceeding original targets.
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Cost-to-income ratio improved to 59.7%, in line with year-end target of below 60%.
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Capital position remains strong with CET1 ratio at 13.2% after a EUR1.5 billion share buyback.
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French retail, private banking, and insurance saw strong revenue growth of 12.6% in Q2 2026.
Negative Points
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Revenues in mobility, international retail banking, and financial services decreased by 4.9% in Q2 2026.
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Equities business underperformed compared to peers due to strategic preference for stability over high-risk opportunities.
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Loan and deposit volumes in French retail networks declined, with loans down 2% and deposits down 3% year-on-year.
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Avens used car sales results remain under normalization pressure, with average results per unit at EUR330.
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Fixed income and currencies revenues declined by 11% in Q2 2026 due to unfavorable market conditions.
Q & A Highlights
Here are the key highlights from the BRD-Groupe Societe Generale SA ( FRA:76B ) Q2 2026 earnings call.
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Q: Can you explain the lower performance in the Equities business this quarter compared to peers? Is the strategic preference for stability and profitability limiting the upside, and will you increase risk appetite? A: (CEO) Our strategic preference for stability and profitability over chasing a single quarter's opportunity remains. This stance has not prevented us from growing revenues to near-historic highs. The performance gap is partly due to our focus on Europe, while the big drivers this quarter were in the Americas and Asia Pacific. We are investing organically in our prime services business, with the Bernstein acquisition being a key building block, to address this mix over time.
Q: The cost cutting has been very strong. Is this a preview of the September Capital Markets Day? Should we expect absolute cost cuts to be a key feature of the new plan? A: (CEO) Yes, focusing on what we can control is a core feature of our management philosophy. The strong cost discipline and positive jaws are a direct result of this commitment. We are committed to this approach, and you will see more details at the Capital Markets Day in September.
Q: On the IT landscape simplification, you mentioned having over 500 providers. Where are you on this journey? A: (CEO) We are essentially done with the concentration effort, having reduced from over 700 providers down to five main ones. This has generated significant direct cost savings and, more importantly, strategic benefits by improving the coherence of our architecture. We continue to work on other aspects of legacy and efficiency, such as the ratio of coding personnel to business analysts, where there is still potential for improvement.
Q: French retail NII growth has been amazing. Can this double-digit growth continue, especially with the Livret A rate potentially going up? A: (CEO) The strong mid-teens NII growth was significantly supported by the sharp repricing down of the Livret A rate last year. As we move forward, the comparison base will include two repricings down, so the same level of performance is unlikely. We expect a more moderate increase in NII as the back book reprices and we hedge at better levels. Our scenarios do factor in a potential slight increase in the Livret A rate, which we believe would have a small impact.
Q: Even after the EUR1.5 billion buyback, your CET1 ratio is still 13.2%. What is your commitment to distributing excess capital? A: (CEO) Our commitment to running the bank with a CET1 ratio close to 13% is totally unchanged. The slight buffer above that is due to some small moving parts in the timing of regulatory headwinds like FRTB. This is a detail, and our capital distribution policy remains consistent.
Q: How do you view the performance of the traditional French retail network versus Boursorama? The networks are declining while Boursorama is growing. A: (CEO) We view the entire French retail pillar as one business serving one market opportunity. The traditional network's value is also captured in the strong performance of our insurance and private banking businesses. On volumes, we are being very deliberate, focusing on profitable side deposits over less profitable term deposits and being pickier with capital allocation on the corporate loan side to avoid diluting returns. This is a strategic fine-tuning of the balance between growth and profitability.
Q: What are the structural input factors that have driven the better-than-expected cost performance, and what is the timeframe for the new strategic plan? A: (CEO) The cost performance is driven by three things: 1) The technology simplification, which continues to yield benefits. 2) A deep, granular, group-wide efficiency effort involving thousands of employees, which has generated nearly 10,000 initiatives. 3) A cultural shift towards much higher scrutiny over all hiring and spending. The new strategic plan will formally be a 2029 plan, though we will provide some qualitative thoughts on the longer-term future.
Q: On Avens, used car sales results are at the lower end of your guided range. Is the normalization process complete, or is there more to come? A: (CEO) We are navigating a market with many moving parts, including the impact from the Iran war on ICE vehicle dynamics. We are still within our guided range, which shows our broad vision for the environment is working. The long-term features of the market are not yet settled (e.g., Chinese cars, regulatory uncertainty). Our strategy is to protect margins and manage risk, not to grow the business unconsciously. We are already in line with our end-of-year targets for profitability.
Q: How do you think about organic risk-weighted asset (RWA) growth going forward? A: (CEO) For the year, our guidance of 2% RWA growth is unchanged. We remain committed to being as capital efficient as possible, using tools like distribution and high balance sheet velocity. There will be some quarterly volatility, but the final result should be close to the guidance. More strategic, longer-term views will be shared at the Capital Markets Day in September.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
