Societe Generale (SocGen) has upgraded its financial targets for 2026, including a revised Return on Tangible Equity (ROTE) target of approximately 11%, up from its previous goal of over 10%. This improvement is attributed to strong performance in the first half of 2026, which saw record net income of $3.5 billion, a 13.9% increase compared to the first half of 2025. The bank also reported significant operational efficiency gains, with costs down 5.0% in H1 2026 versus H1 2025, exceeding the prior target of a 3% reduction, leading to an upgraded cost reduction target of approximately 4% for the full year 2026.
In addition to the upgraded profitability targets, SocGen announced an interim cash dividend of $0.75 per share for the first half of 2026, marking a 23% increase from 2025. This dividend is scheduled for payment on October 7, 2026. The bank also plans to distribute excess capital through an extraordinary share buy-back program of $1.5 billion, which is expected to launch on August 3, 2026, at the earliest. This buy-back will reduce the CET1 ratio by 39 basis points but still leaves the ratio at a robust 13.2% at the end of Q2 2026, well above regulatory requirements.
CEO Slawomir Krupa stated that these results demonstrate the strength and growth of the bank's financial performance, reflecting disciplined execution of its strategic plan. He emphasized that the improved operational efficiency, driven by revenue growth and cost reduction, has translated into significant profitability gains. Krupa is set to present a new strategic and financial roadmap at the bank's Capital Markets Day on September 21, 2026. The bank's cost-to-income ratio improved to 59.7% in H1 2026, in line with its target of below 60%, and group revenues increased by 2.4% against the target of over 2% for 2026. globenewswire.com
