Société Générale Earnings: Strategy Reshuffling Pays Off; Fair Value Estimate Up 8%

No-moat Société Générale reported solid fourth-quarter 2024 results, significantly outpacing company-compiled consensus on both top-line and bottom-line estimates. For the full year, the group's net income reached EUR 4.2 billion—an almost 70% increase from 2023. This growth was driven by the bank's focus on cost savings, as operating expenses remained flat year over year while gross income grew by 7%. In 2025, the bank expects to continue delivering revenue growth while keeping costs under control. After revising our model assumptions, we have raised our fair value estimate to EUR 31.70 per share from EUR 29.30. Shares jumped 10% at the start of trading on Feb. 6 and gained around 25% year to date, and currently we view them as slightly overvalued.