After the first quarter results, Societe Generale has just unveiled its longer term strategic plan, which allowed the stock to gain a few points this morning on the market. Explanations and details.
As with all French and European banks, certain indicators will be monitored, such as Societe Generale's ability to meet the Basel 3 solvency ratio, which corresponds to 9% of shareholders' equity, as well as its control of its commitments in investment banking, centralisation of derivative compensation, cost of risk and return on equity or ROE.
Of course, the economic environment in which the banking group operates will have an impact on its profitability and all relevant economic data will be monitored.
In addition to this, important decisions and communications from the European Central Bank or ECB, which will of course have a direct influence on the price of this stock as well as on those of other European banks, will be closely monitored.
The development of the online bank Boursorama Banque, created and owned by Societe Generale, will also be an element to be followed with great interest. We therefore advise you to take a closer look at it.
Finally, we will of course keep an eye on the various major competitors of this banking company.
The Societe Generale Group is one of the leaders in the French banking market. Its revenues are spread over several types of activities, the main one being, of course, retail banking in France and online banking with its subsidiary Boursorama, but also corporate and investment banking, international retail banking, insurance services and asset management.
The Societe Generale Group currently employs no less than 148,300 people in no less than 76 countries. The activities of this universal bank are divided into three main areas: the retail networks in France with Societe Generale, Crédit du Nord and Boursorama, the international retail networks with IBSF (International Banking Financial Services) and the corporate and investment bank (SG CIB) which manages Fixed Income, structured finance, debt, Forex and equity and advisory activities.
The group's two other business lines are specialised financial services and insurance and private banking, asset management and investor services.
Societe Generale is still one of the leaders in the international banking market. In particular, this bank supports one in three exporting companies and has a significant capacity to position itself as the main bank for its customers. It thus benefits from a good reputation since numerous studies have shown the quality of its transaction processing, its responsiveness and the efficiency of its customer service. However, European banks represent a competition that must be taken into account before starting to speculate on the Societe Generale share price and it is therefore essential to know the companies directly competing with it.
Here is the list of the main competitors of the Societe Generale:
In the past, Societe Generale has also been able to position itself as one of the leaders in the banking sector through strategic partnerships and joint ventures. We therefore invite you to find out more about the various alliances set up by this group.
Societe Generale has notably joined forces with Crédit Agricole to pool their asset management through a joint venture.
Societe Generale has also joined forces with BNP, Crédit Agricole and CapGemini to join Commerce One, an electronic marketplace for business-to-business purchasing.
have been set up by Societe Generale but with smaller, unlisted companies, which we will therefore not discuss in more detail here.
Knowing the ability of a company to face the future and to face any threats and opportunities that will present itself is undoubtedly essential to study the price of its stock on the stock market. We therefore suggest that you take the time to discover in a little more detail the strengths and weaknesses of the Societe Generale group, in other words, the advantages and disadvantages of its stock market share.
Let's begin this comparative analysis by taking a closer look at the main assets available to the Société Générale group which are all elements likely to support this share in the years to come.
After having toured the main advantages of the Societe Generale group and therefore its strengths for its growth and future development, check out what its main weaknesses are and therefore the disadvantages of its stock market value:
The analysis of these current strengths and weaknesses of Societe Generale should be rechecked whenever needed as these elements may change over time. You will then be able to compare these elements with the threats and opportunities that will present themselves to the group in the years to come and which could influence the evolution of its share price to a greater or lesser extent.
While Societe Generale is part of the CAC 40 stock market index, it also includes other benchmark stock market indices. Its capitalisation is also included in the calculation of the CAC All Shares, CAC All-Tradable, CAC Large 60, Euro Stoxx 50, Euronext 100, Euronext CDP Environnement France EW, Euronext CDP Environnement France Ex Oil, PEA and Stoxx France 50 indices. The price of this share is, of course, listed on compartment A of the Euronext Paris stock exchange.
Societe Generale recently published its financial results for the financial year 2019. The group's result was €3,946 million over this period, with a PER of €3.40 and a dividend of €2.20, the payment of which has however been cancelled for 2020 due to the market disruption caused by the Covid-19 pandemic. The yield per share for the year 2019 was €4.10.
Currently, in 2020 and based on figures published at the end of 2019, the Societe Generale banking group manages nearly €418.6 billion in outstanding deposits and €450.2 billion in outstanding loans. These data are of course important for your fundamental analyses of this value as they provide indications of the risk incurred by this bank.
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