Société Générale S.A.

French retail and international banking segments provide recurring NII anchored in deposit spreads and mortgage loan books, but the Global Markets franchise (roughly 37% of net banking income) introduces material quarterly variability driven by client flows and market conditions. Backlog or contracted-revenue visibility is limited by this mixed model, and total revenues required a disposal-adjusted measure to show the record EUR 27.3B for FY2025.

Revenue is spread across four distinct segments: French Retail and Private Banking, Global Markets and CIB, International Retail Banking, and Specialized Finance, with no single segment exceeding roughly 40% of NBI. All four remain correlated to the credit and interest rate cycle, limiting diversification benefit during systemic stress.

NII is distributed across France (~41.5%), the rest of Europe (~36%), the Americas (~9.4%), Africa (~7.5%), and Asia-Oceania (~5.6%), with no single country exceeding approximately 45%. France and broader Europe together represent roughly 78% of NII, so geographic spread is real but concentrated in a single macro region.

Cost-to-income improved to 63.6% in FY2025 from 69.0% in FY2024, reflecting operational savings from the Krupa restructuring rather than structural asset-light economics. Banks are constrained by regulatory capital requirements where incremental CIB revenue requires proportional risk-weighted assets, limiting the operating leverage profile typical of software or payments businesses.

French retail and international banking generate recurring NII from mortgages, deposits, and consumer lending, representing roughly 55-60% of group NBI. The remaining 35-40% from Global Markets is transactional and market-condition-dependent, with FICC revenues declining significantly when European rate conditions become challenging, as in Q1 2026.