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The call was predominantly positive: management reported record 2025 revenues (EUR 27.3bn), record profit (EUR ~6bn), meaningful improvements in efficiency and capital (CET1 13.5%), and strong business-level performances across retail, GBIS, and International pillars. Management upgraded 2026 profitability targets and reaffirmed disciplined capital returns while maintaining liquidity and asset-quality metrics within guidance. Notable challenges include Q4 Global Markets softness (product and geographic mix effects), normalization impacts at Ayvens (lower UCS/unit results), sizable Stage 3 provisions in Q4, and a paused extraordinary buyback due to authorization limits. Overall, the highlights outweigh the lowlights, with the company signaling continued transformation, ambitious but achievable cost and profitability targets, and a clear capital-return framework.
Management guided 2026 as a year of measured, profitable growth: net banking income >2% on a reported basis, reported operating costs down ~3%, cost-to-income below 60%, cost of risk within 25–30 bps, ROTE above 10% and organic RWA growth of around 2%; Global Markets guidance (adjusted for Bernstein U.S.) is EUR 5.1–5.7bn with management expecting to be above the top end, and BoursoBank targets a net profit above EUR 300m. These targets build on 2025 results of EUR 27.3bn revenues and ~EUR 6bn group net income (revenues +~7% excl. disposals), costs -2% excl. disposals, a 2025 cost-to-income of 63.6% (improved >5pp), cost of risk 26 bps (29 bps in Q4; 26 bps FY), ROTE 10.2% (9.6% excl. disposal gains), CET1 13.5% after Basel IV and extraordinary buybacks, a proposed ordinary distribution of EUR 2.7bn (EUR 1.61 DPS, including EUR 1.462bn buyback) and total 2025 distributions of EUR 4.679bn (+169% YoY); liquidity reserves stood at EUR 318bn with LCR 144%, NSFR 116%, loan-to-deposit 77%, NPLs 2.8% and net coverage 82%.
Group revenues reached EUR 27.3 billion in 2025 (record), with revenues up almost 7% excluding asset disposals; group net income reached ~EUR 6.0 billion; ROTE was 10.2% for the year (9.6% excl. capital gains), above the 2025 target of ~9%.
Q4 2025 net income was EUR 1.4 billion, up 36% versus Q4 2024; Q4 revenues grew 6.8% versus Q4 2024 excluding disposals; Q4 cost-to-income improved to 64.6% from 69.4% in Q4 2024.
Group operating costs decreased by 2% in 2025 (excl. disposals), ahead of the target (≥1%); management targets ~3% net cost decrease in 2026 (reported); cost-to-income improved to 63.6% in 2025 (better than the <65% 2025 target) and management aims for <60% in 2026.
CET1 ratio stood at 13.5% after Basel IV impact and extra distributions; retained earnings and actions strengthened capital by ~20 bps; Board proposed ordinary distribution of EUR 2.7 billion (up 54% vs 2024) and total distribution for 2025 of EUR 4.679 billion (up 169% vs 2024); dividend per share EUR 1.61 (up 48%) and ordinary share buyback EUR 1.462 billion (up 68%).
Liquidity reserves at EUR 318 billion; LCR 144% and NSFR 116%, both comfortably above regulatory requirements; loan-to-deposit ratio 77%.
All major businesses contributed: GBIS record revenues EUR 10.4 billion (up 2.6%); Global Markets revenues EUR 5.98 billion for 2025 (a 16-year high, +2.7% vs 2024); BIS RONE 16.7% (Basel IV); Financing & Advisory and other GBIS franchises delivered strong performance.
French Retail/Private Banking/Insurance revenues +4.2% vs 2024 (excl. disposals); NII up 3.1%; AUM in private banking +9% vs Q4 2024; life insurance outstandings +8%; BoursoBank added 1.9 million clients (+22% vs Q4 2024), AUA EUR 78 billion (+18%), brokerage account openings +25% and loans outstanding +9%.
Ayvens delivered on 2025 financial targets: reported revenues +15% YoY, total synergies of EUR 360 million, average used-car-sales (UCS) result for 2025 EUR 1,075 per unit (at high end of guidance), and cost-to-income 56.1% (better than guidance).
Full-year cost of risk 26 basis points (within 25–30 bps guidance); Q4 cost of risk 29 bps; NPL ratio 2.8% and net coverage ratio 82% in Q4 2025.
Upgraded to AAA by MSCI (one of two major European banks with this rating); deployed a EUR 1 billion investment envelope for energy transition innovation and partnered with EIB/IFC on sustainability solutions.
Ladies and gentlemen, welcome to the Soci�t� G�n�rale conference call. Gentlemen, please go ahead.
Good morning, everyone, and thank you for joining us today. I'm very proud to report strong performance numbers for 2025. As a result, we are upgrading our 2026 target for profitability and confirming all other CMD targets as well. 2025 was a defining year. We set new records for revenues with EUR 27.3 billion and for group net income, which reached the EUR 6 billion mark. The successful transformation sets the stage for us to sustain long-term profitable growth. Significant improvement in our financial results in 2025 cuts across all metrics, outperforming the targets we upgraded in Q2 '25. Our revenues were up by almost 7%, excluding asset disposals.
That's more than double our target of more than 3%. Even more remarkable is that all our businesses contributed to the strong performance. As you know, our commitment to reduce our cost base, both structurally and significantly is absolute. The proof point here is the 2% decrease in costs, excluding asset disposal over the past year. That's that 2% is far better than what we targeted, which was a decrease of at least 1% and it translates into a cost-to-income ratio of 63.6% in 2025, an improvement of more than 5 percentage points over the last year. Keep in mind, this is also better than the 2025 target we set of a cost-to-income below 65%. Cost of risk is within our guidance at 26 basis points, reflecting the strength of our asset quality and our capacity to effectively manage risks across the cycle. All of this has significant...