It is true that the bank has had a string of successes. Under the leadership of Slawomir Krupa, whose appointment in 2023 was welcomed by MarketScreener the cost structure has been reduced at an impressive rate, while its return on equity has returned to double digits for the first time in a long time.
At €5.2, EPS for the first nine months of 2025 are almost triple the average over the five years prior to Slawomir Krupa's appointment. Of course, interest rates have risen in the meantime, benefiting the entire European banking sector, which had been pretty much in limbo until then, although this does not detract from Krupa's achievements.
Société Générale's stockmarket discount has therefore narrowed significantly. At the end of 2024, the value of tangible equity per share was €66, compared with a share price of €27, representing a discount of nearly 60%. At the end of Q3 this year, the value of equity reached €69, compared with a current share price of €58, representing a discount of 16%.
It is noteworthy that BNP Paribas, currently the leading French bank and the second largest European bank, is now subject to a discount on its tangible equity that is much more severe than that of Société Générale. See BNP still suffering from a severe stockmarket discount.
Société Générale's incredible comeback follows ten years of decline. In this context, it is almost regrettable that the €1bn share buyback program announced today was not launched earlier.
