Trade the Societe Generale share!
SOCIETE GENERALE

Analysis before buying or selling Societe Generale shares

Trade the Societe Generale share!
BUY   SELL
77% of retail CFD accounts lose money - Plus500.com
 
Chart provided by Tradingview

Latest news

Société Générale share dividend and yield

20/05/2022 - 08h32

Find detailed information about the Société Générale share dividend with its amount, payment and ex-dividend dates as well as its yield.

Elements to consider before selling or buying Societe Generale shares

Analysis N°1

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.

Analysis N°2

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.

Analysis N°3

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.

Analysis N°4

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.

Analysis N°5

Finally, we will of course keep an eye on the various major competitors of this banking company.

77% of retail CFD accounts lose money. This is an advert for trading CFDs on Plus500

General presentation of Societe Generale

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.

Analysis before buying or selling Societe Generale shares
77% of retail CFD accounts lose money. This is an advert for trading CFDs on Plus500

The major competitors of Societe Generale

We now propose that you take a look at the environment in which the Société Générale group operates and, above all, at its main competitors on the market with the list of the major banking players in France:

BNP Paribas 

First of all, the BNP Paribas banking group is a French bank and the country's leading bank in terms of profitability. It also ranks tenth internationally and operates in 71 countries. It is listed on the Euronext market and is part of the French benchmark CAC 40 stock index. The group was created by the merger in 2000 of Banque Nationale de Paris and Paribas.

Crédit Agricole 

The Crédit Agricole Group, formerly known as the Green Bank, is currently the largest network of cooperative and mutual banks in the world. In France, Crédit Agricole is composed of 39 Crédit Agricole regional banks. Since 1990, it is also an international generalist banking group which is listed on the Euronext Premier Marché and is included in the CAC 40 stock market index.

BPCE

This group is the joint body of the Banque Populaire and the Caisse d'Epargne in France. It was created by the merger in 2009 of the Caisse Nationale des Caisses d'Epargne and the Banque Fédérale des Banques Populaires. The BPCE group is currently the world's second largest cooperative banking institution after Crédit Agricole and includes all the companies that made up these two banking groups.

Crédit Mutuel

Crédit Mutuel is a French group that operates in the fields of banking, insurance, electronic banking, telephony, remote surveillance and media. It is a mutualist company made up of 2,100 local cooperative and mutualist banks, grouped into 18 regional federations, which in turn form a national confederation. The group employs 83,000 people and has 5,535 sales outlets.

La Banque Postale

This French public bank was created in January 2006 and is a subsidiary of the La Poste group. Its distribution network consists of post offices throughout France. It is also the transformed successor of the former CCP, which was created in 1918. Today and for several years, Banque Postale has been gaining more and more market share in France and can therefore represent a threat to Société Générale.

HSBC Continental

Finally, the HSBC Continental banking group is the last serious competitor of Société Générale in France. It is a French subsidiary of the HSBC banking group which constitutes an international network and a local banking service grouping together all the banks of the former CCF group with UBP, Banque Hervet, Banque Brière, Banque de Baecque Beau among others. While HSBC Continental's head office used to be located on the Champs Elysées, it is now located on rue Kleber in Paris since the end of 2020.


The major partners of Societe Generale

Of course, the Société Générale group does not only have to fear competition but can also count on its partners. Indeed, the banking group regularly sets up strategic alliances with other companies in order to gain in profitability or innovation and we propose to discover two specific examples of this type of partnership:

AFD

First and foremost and in 2021, the group signed a strategic partnership with Proparco, a subsidiary of the AFD group with the aim of meeting the needs of VSEs and SMEs affected by the crisis on the African continent. Proparco has put in place an exceptional guarantee for the financing that can be granted. As a long-standing partner of AFD and a key player in private sector financing in Africa, Société Générale is the first financial institution to deploy this mechanism as a partner of Proparco. The guarantee made possible with the support of the French government allows Société Générale's subsidiaries on the African continent to increase their support to entrepreneurs. Cameroon, Côte d'Ivoire, Madagascar and Senegal will be the first countries to benefit from this loan offer guaranteed at 80% by AFD Group.

Amundi

Earlier in 2020, Société Générale also signed a new 5-year partnership agreement with Amundi to further develop their relationship in the distribution of investment solutions and Securities Services activities. The agreement came into effect in November 2020. Amundi will remain the Group's leading partner for the provision of savings and investment solutions for its retail banking and insurance networks, in an arrangement whose architecture will be open to other asset management companies, and Societe Generale will remain one of Amundi's leading providers of Securities Services.

77% of retail CFD accounts lose money. This is an advert for trading CFDs on Plus500
Positive factors for Societe Generale shares
The factors in favour of a rise in the Societe Generale share price:

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.

  • First, of course, the positioning of the Societe Generale group in its sector of activity is appreciated. This banking group is none other than the market leader in financial services on the European scale. But that's not all. This French company is also positioned very positively as an asset manager because it is currently number four in this sector with 284 billion euros managed. Likewise, with regard to the asset custody segment, Société Générale owns and operates nearly € 1,165 billion and is also in fourth position.
  • Another strong point of the Societe Generale group, which supports the positive development of its stock market share, involves the profits made by this group in recent years. If we exclude the results of the year 2019 which penalized the banking sector a lot, the group has achieved profits that have increased almost constantly for several years. Bear in mind that the group benefits from a quality strategy with regard to the system of provisions against risks. By having sufficiently provisioned during the most prosperous years, the Societe Generale group has been able to protect itself against risks and is therefore more resistant to crises than most of its competitors.
  • Remaining on the strengths of the Societe Generale group, you'll find the development of equity derivative flows activities by this bank as well as the strong development of its structured products and bond distribution.
  • The group is also pursuing an extremely effective development strategy. Thanks to this strategy, the Societe Generale group has been able to conquer new markets and new customers. This particularly concerns the European banking sector in which it has developed strongly for years, but also the international market in which the group continues to develop. The Societe Generale group has also been able to strengthen its presence with financial institutions for a few years now. Also bear in mind that it has largely developed its private banking activities in most European countries. Regarding the rest of the world, it also targeted the markets of Africa and Europe.
  • The Société Générale banking group is also recognized for the quality of its strategic investments. It's important to point out its recent investments in the financing of natural resources which have brought it significant gains and an increase in its growth capacity.
  • The different types of clients that this group has is also an asset of the company. This includes the activities related to large customers and investors that Societe Generale is developing worldwide. The values advocated and followed by the company for a long time allow it to actively retain this clientele with customer satisfaction, quality of service or even innovation and added value. The group's strategy by customer segment and which differentiates individual customers from professional customers is also an integral part of the group's success. This allows it to offer products and services perfectly suited to the needs of each of these customers.
  • Finally, the last advantage of the Societe Generale group is undoubtedly its ability to conduct an effective multi-brand strategy which makes it a multi-channel relational bank thanks to its subsidiaries such as Crédit du Nord or its bank and online broker Boursorama.
Negative factors for Societe Generale shares
The factors in favour of a drop in the Societe Generale share price:

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:

  • First of all, we see that the profitability of this company is relatively low compared to the competition, which penalizes it in terms of investment flows as well.
  • French legislation, which is particularly strict with regard to banking activities, is also penalizing for the activities of this group and may also represent an obstacle on its future growth.
  • Finally, Société Générale's third and last major weakness is obviously the strength and presence of its main competitors on the market, which are large in size and strong internationalization. Its biggest current competitor is the BNP Paribas group, which operates mainly in France but also in the rest of the world.

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.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

Are Societe Generale shares listed on indices other than the CAC 40?

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.

What are the latest results published by Societe Generale?

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.

What are the outstanding deposits and loans managed by Societe Generale?

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.

77% of retail CFD accounts lose money. You should consider whether you can afford to take the high risk of losing your money. This is an advert for trading CFDs on Plus500