Societe Generale SA

GLE: XPAR (FRA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€64.20	Nzxk	Kwctv

Societe Generale's Below-Par Profitability Remains a Challenge

Johann Scholtz

Sep 28, 2023

Business Strategy and Outlook

Societe Generale, or SocGen, has not been able to generate a level of profitability ahead of its cost of capital since 2006, and we do not anticipate any changes that will position the bank to outearn its cost of capital on a consistent basis. Cost-cutting can potentially improve profitability, but there is also an inflexion point where further cost-cutting will result in damage to the franchise.

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