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The bigger-than-expected fall in expenses, as well as signs that a turnaround plan for the retail unit is beginning to work, offset a mixed performance at SocGen's investment bank. Sign up here. The French lender said sales rose 1.6% across its investment bank but that was below BNP Paribas, Deutsche Bank and Wall Street rivals during a bumper period for trading. SocGen's well-known equities business even saw revenues shrink. Overall group net income rose to 1.52 billion euros ($1.77 billion), up 11.3% from a year earlier and beating by more than 200 million euros the average analyst estimate. Sales fell 2.7% to 6.66 billion euros over the period, above expectations, because of a smaller business footprint following asset disposals. Krupa, who took the helm in 2023, launched a turnaround plan two years ago in a bid to end SocGen's reputation as a European laggard labouring under poor profitability and a bloated cost base. SHARES DOUBLE IN 2025 AFTER LONG UNDERPERFORMANCE After initially struggling, his policy of cost cutting, asset disposals and strengthening the bank's capital position is winning over investors. "Quarter after quarter through the cycle, we continue to execute our strategic roadmap with discipline by maintaining a strong capital position, strict cost control and prudent risk management," Krupa said. The third-quarter profit rise stemmed from accelerated cost cuts and commercial momentum in its French retail division as mortgage volumes surged and net interest income rose. The retail unit had been a key concern for investors last year. SocGen's cost-to-income ratio, an efficiency gauge showing how much a bank spends to generate each euro of revenue, came in below expectations at 61%, and below its annual target of sub-65%. The group's return on tangible equity, a key measure of profitability, rose to 10.7%, above the expected 8.9% but still far below European rivals. French bank shares have come under pressure in recent months with the country facing its worst political crisis in decades and investors questioning the sustainability of government finances. Both S&P Global Ratings and Fitch have downgraded France's long-term debt rating. That can hurt banks like SocGen by raising their funding costs. ($1 = 0.8575 euros) Reporting by Mathieu Rosemain; Editing by Tommy Reggiori Wilkes Our Standards: The Thomson Reuters Trust Principles., opens new tab Mathieu is part of Reuters' finance team, covering French banks and major M&A stories in the country and in Europe. A graduate of Sciences Po university, Mathieu previously covered the Tech beat at Reuters, following stints at Bloomberg News and French business daily Les Echos.
