Morocco exit was part of Société Générale’s successful major overhaul

The group posted net profit of €1.79 billion in the second quarter of 2026, up approximately 23% year on year. Revenue increased by 4.5%, to €7.1 billion, also exceeding analysts’ forecasts.

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This performance is not based on the market volatility caused by the war in Iran. It was mainly driven by retail banking in France, insurance and private banking, whose revenue increased by more than 12%.

Société Générale is also reaping the benefits of the transformation launched since Slawomir Krupa took over its management in 2023. The group is reducing its expenses faster than expected and is raising its cost-cutting target for the year from 3% to 4%.

Its operating ratio, which measures the weight of expenses relative to revenue, fell to 58.6%. The bank is also improving its profitability target for 2026.

Morocco part of a broad disposal programme

To simplify its organisation and focus its resources on the activities considered most profitable, Société Générale has sold several subsidiaries in recent years. Its withdrawal from retail banking in Morocco was part of this programme, as were the disposals carried out in private banking in the United Kingdom and Switzerland.

The published results do not make it possible to measure separately the effect of the sale of the Moroccan activities on quarterly profit. Nevertheless, this transaction represents one of the stages in the broader refocusing now highlighted by management.

According to Les Échos, this transformation has profoundly changed investors’ view. Société Générale’s share price has risen by more than 200% since May 2023 and was still up 5.58% after the results were announced.

The bank also plans an exceptional €1.5 billion share-buyback programme and an interim dividend payment 23% higher than that of the previous year.

After selling a significant portion of its activities, particularly in Morocco, Société Générale must now present, at the end of September, the strategy that will guide its next phase of growth.