Société Générale is among the oldest and most important French banks. Listed on Euronext - GLE, this company offers great investment opportunities and returns for stock traders. Established in France for nearly 156 years, this institution has a solid reputation both domestically and abroad.
Read on for key information about Société Générale stock, including a brief introduction, history, financial situation, stock market news and outlook.
Introduction to Société Générale stock
History of Société Générale
On May 4, 1864, a group of industrialists decided to create a bank to support the development of French commercial and industrial enterprises. From the very first year of its creation, the bank created an impressive network in order to make its mark. The bank opened its doors and created more than thirty stations and branches in France by 1870. It opened a London branch in 1871.
Thanks to its strong presence and network, it was able to build a clientele of individuals and small and medium-sized businesses. From 1871 to 1893, Europe, and particularly France, went through an economic slump, forcing many French financial institutions to close their doors.
Société Générale stayed the course to become what it is today. However, it has not had a faultless record, with scandals including the Panama Papers, tax evasion, money laundering, the fossil fuel financing scandal and interbank rate manipulation, among others.
Profile of Société Générale
Founded in 1864, Société Générale was a private company until 1945 when it was nationalized alongside three other French banking institutions. On July 29, 1987, it was privatized and became a Société Anonyme.
Société Générale established its headquarters at 29 boulevard Haussmann in Paris. Listed on the Euronext GLE, Société Générale's market capitalization as of December 31, 2019 is approximately twenty-nine billion euros.
The company has many subsidiaries, including Crédit du Nord, the trading company Boursorama, La Shine, Treezor, ALD Automotive, and Franfinance. With more than 145,000 employees worldwide, Société Générale is the French leader in the financial and banking field.
Summary in a few figures
Here are a few key figures regarding the Société Générale:
- Worldwide presence : 61 countries with more than 145,000 employees and 137 nationalities
- Presence in the DOM : 4 departments including Caledonia, Polynesia, Reunion and Mayotte
- Presence in Africa : 17 African countries
- Presence in Europe : 6 European countries, including Germany, Italy, Luxembourg, Czech Republic, Romania and Russia.
- Presence in Asia and the Middle East : 6 countries including Jordan, Lebanon, China, Mumbai, Hanoi and SGBU.
- Market capitalization : twenty-nine billion euros
- Société Générale's assets : 256.0 billion euros
- Outstanding deposits at the end of 2020 : 456.0 billion euros
- Outstanding loans at the end of 2020 : 448.8 billion euros
- Ownership of 2484 agencies worldwide
- Ownership of 2156 international retail banking branches
Société Générale's investment potential
As with most of the world's major corporations, Société Générale's business slowed down slightly in 2020 due to the health crisis and restrictive measures. However, the situation has not really had a negative effect on the bank's financial health. The bank was able to afford to buy two companies in 2020: the neobank Shine and Reezocar, a used car sales company. To help investors appreciate SG stock and its activities, here are some important facts about the bank's situation today.
Financial situation of Société Générale
Below is the financial data for Société Générale from 2017 to 2019.
Read the figures from left to right respectively for 2019-2018-2017 (value in billion €)
- Net banking revenues : 24,671 -25,205 -23,954
- Gross operating income : 6,944 -7,274 -6,116
- Net income, group share : 3,248 -3,864 -2,806
At the close of the 2019 financial statements, Société Générale had equity of €68.57 billion.
Société Générale's shareholding structure is as follows:
- Employees : 6.17%
- Black Rock : 6.04%
- Lyxor International Asset Management : 5.4%
- Treasury stock and treasury stock : 3%
- Caisse des dépôts et consignations : 2.55%
- Dodge & Cox : 4.96%
- CNP : 1%
Stock market news
In April, the share price was around 23 euros with more or less stable variations. On April 06, the situation was as follows:
- Value of capitalization : €19,589 billion
- Price at the opening : €22,84
- Closing price : €22.95
- Highest price : €23.17
- Lowest price : €22,715
Here are the projected figures for 2021:
- Value of capitalization : €19,248 billion
- Number of employees : 126,391
- Revenue : €23,113 billion
- Net income : €1,659 billion
- Yield : 4.04%.
The evolution of the forecasts per share is summarized as follows:
- Net dividend realized in 2020 : €0.55
- Dividend forecast : €0.90 for 2021 and €1.39 for 2022
- Realized return in 2020 : 2.44
- Forecast yield : 4.01% for 2021 and 6.14% for 2022
- Net profit in 2020 : €0.97
- Expected net earnings per share : €1.87 for 2021 and €2.95 for 2022