Understanding our second quarter 2026 results

Letter to shareholders N°152

Dear shareholders,

Today, we are reporting results that once again demonstrate the strength and strong momentum of our financial performance, driven by the rigorous execution of our strategic plan. The first half of 2026 was marked by high-quality results, supported by the strong performance of our businesses, disciplined management and the continued commitment of our teams.

In the first half of the year, Group revenue reached EUR 14.2 billion, up 2.4% compared with the first half of 2025. This growth reflects the strong performance of our franchises, with positive contributions from all our businesses. French Retail Banking, Private Banking and Insurance continued to deliver strong commercial momentum, Global Banking and Investor Solutions confirmed the strength of its market positions, while our international businesses continued to demonstrate their resilience in a persistently uncertain and volatile environment.

Group net income increased sharply in the first half, reaching a record EUR 3.5 billion, up 13.9% compared with the first half of 2025. This performance reflects the ability of our diversified business model to deliver sustainable growth, while maintaining prudent risk management, with a cost of risk of 26 basis points, at the lower end of our target range.

Our operational efficiency continued to improve, with both higher revenues and a significant reduction in costs, which declined by 5.0% over the period. This resulted in a particularly positive jaws effect, driving a marked improvement in our cost-to-income ratio, which stood at 59.7%, in line with our 2026 target of below 60%.

This momentum translated into a significant improvement in profitability, with a ROTE of 12.0% in the first semester. Building on these results, we have decided to raise our 2026 ROTE target to around 11%, compared with our previous target of above 10%.

Our strong capital position remains a major strength. After taking into account the announced share buyback, our CET1 ratio stood at 13.2%, approximately 290 basis points above the regulatory requirement, while our liquidity profile remained robust with a Liquidity Coverage Ratio of 146%. This financial strength allows us today to announce the launch of a share buyback programme as well as the payment of a 2026 interim dividend, higher than the 2025 interim dividend.

At the same time, we continue to support our clients in their transitions and to finance a more sustainable economy. During the quarter, we notably strengthened our commitment to nature-based solutions through the launch of a strategic partnership with Ardian.

I would like to warmly thank all our teams, whose dedication to serving our clients and transforming our Group lies at the heart of these achievements. We will continue to execute our strategy with the same discipline. I look forward to presenting our new strategic and financial roadmap on 21 September at our Capital Markets Day.

Thank you for the trust you place in Societe Generale and for your long-term commitment alongside us.

Slawomir Krupa
Chief Executive Officer