Société Générale: A French Banking Gem Set to Shine

Investors, listen up! Société Générale (OTCPK: SCGLY) is primed for a breakout. Under CEO Slawomir Krupa’s bold leadership, this French banking giant is executing a transformative strategy that combines ruthless cost discipline, strategic asset sales, and a game-changing joint venture. Let’s break down why now is the time to act.

The Divestiture Play: Cleaning Up the Balance Sheet

Krupa’s first move? Trimming the fat. The bank has offloaded non-core African and Middle Eastern assets—including its Moroccan operations to Saham Group and its Guinean subsidiary to Atlantic Financial Group—generating over €3 billion in proceeds. These moves aren’t just about cash; they’re about focus. By exiting low-return markets, Société Générale is channeling capital toward high-growth areas like French retail banking and sustainable finance.

The results are staggering. The CET1 ratio, a key measure of financial health, now stands at 13.4%—well above regulatory requirements and up from 12.8% in 2023. This buffer isn’t just a safety net; it’s a springboard for dividends, buybacks, or acquisitions.

Bernstein: The $792 Billion Ace Up Its Sleeve

Then there’s the Bernstein joint venture, a $792 billion asset under management (AUM) powerhouse. Launched in April 2024, this venture merges Société Générale’s trading muscle with AllianceBernstein’s legendary research. The synergy? A one-stop shop for institutional clients, offering everything from equity derivatives to ESG-driven investment strategies.

In 2024 alone, Bernstein’s fixed-income division saw $24.5 billion in inflows, and its operating income jumped 38%. With Krupa’s push to grow fee-based revenue (which is less volatile than lending), this venture could be the next big driver of profit.

French Retail: Turning Around the Cash Cow

Don’t overlook the French retail banking division, which Krupa is revitalizing. Home loan production surged 115% year-over-year in Q1 2025, and assets under management hit €130 billion—a 6% jump. The cost-to-income ratio here has plummeted 18 points to 68%, proving Krupa’s cost-cutting isn’t just about slashing jobs—it’s about operational excellence.

This division is the bank’s bread and butter, and its turnaround isn’t done yet. With 80% of branch closures under the “Vision 2025” plan already complete, the path to a sub-60% cost-to-income ratio by 2026 is clear.

Energy Transition: A Green Light for Growth

Société Générale isn’t just banking on old-school finance. Its energy transition investments—including green bonds and renewable project financing—are on track to hit €100 billion by 2025. This isn’t just ESG window-dressing; it’s a $1.5 trillion global market, and the bank’s early mover advantage is paying off.

The CEO’s Track Record: Why Trust Krupa?

Krupa isn’t a one-hit wonder. Since taking the helm, he’s delivered:
- Revenue growth of 10% ex-divestitures in Q1 2025.
- A 11% ROTIE (return on tangible equity), blowing past the 8% target.
- A 320 basis point buffer over regulatory capital requirements.

This isn’t luck—it’s execution. And investors are starting to notice. The stock has already risen 35% since Q3 2024, but this is just the tip of the iceberg.

Why Now? The Perfect Storm for a Re-Rating

• Undervalued: Trading at just 1.2x 2025 book value, it’s a steal compared to peers.
• Catalysts Ahead: Dividends could rise once the French tax uncertainty lifts.
• Global Reach, Local Focus: The Bernstein joint venture and French retail turnaround are dual engines for growth.

Final Call: Don’t Miss the Train

Société Générale isn’t just surviving—it’s thriving. With a fortress balance sheet, a strategic CEO, and tailwinds from divestitures and innovation, this is a once-in-a-decade opportunity. The question isn’t whether to buy—it’s how much you can afford to miss out on.

Act now. This is a buy.

Investor’s Note: Always conduct your own research and consult a financial advisor before making investment decisions.