Societe Generale SA's equity trading revenue increased 5% in the fourth quarter of 2024, benefiting from a surge in Wall Street activity that lifted the broader investment banking sector. The French bank reported equity trading revenue of €1.2 billion, up from €1.14 billion a year earlier, according to a statement on Thursday.
Wall Street Boom Fuels Gains
The growth came as global investment banks capitalized on heightened market volatility and increased client activity, particularly in derivatives and structured products. Societe Generale's performance contrasted with some European rivals, such as BNP Paribas, which saw a 3% decline in equity trading revenue over the same period.
“We are seeing strong demand from institutional clients for complex hedging solutions,” said a spokesperson for Societe Generale, speaking on condition of anonymity. “The US market has been particularly robust.”
Fixed Income and Overall Performance
Fixed-income trading revenue, however, fell 8% to €1.1 billion, reflecting lower activity in interest rate and currency markets. Overall, the bank's global markets revenue rose 1% to €2.3 billion. Investment banking fees climbed 12% to €500 million, driven by advisory and debt underwriting.
Net income attributable to shareholders was €1.1 billion for the quarter, beating analyst estimates of €950 million, according to a Bloomberg survey. The bank's common equity Tier 1 ratio, a key measure of financial strength, stood at 13.1%.
Strategic Focus on US Expansion
Societe Generale has been expanding its US presence, hiring senior traders and bankers to compete with Wall Street giants. The bank's US operations contributed 25% of total revenue in 2024, up from 22% in 2023. CEO Slawomir Krupa has emphasized growth in the Americas as part of a broader strategy to diversify revenue streams.
“Our focus on the US market is paying off,” Krupa said in the statement. “We remain committed to disciplined risk management and cost control.”
Outlook and Analyst Reactions
Analysts at Jefferies noted that Societe Generale's equity trading performance was a “positive surprise” given the challenging environment in Europe. “The bank's ability to grow equity revenue while others struggled is a testament to its franchise,” they wrote in a note.
Looking ahead, Societe Generale expects continued volatility in markets, which could support trading activity. However, geopolitical risks and interest rate uncertainty remain headwinds. The bank's shares rose 2.3% in Paris trading following the earnings release.
