BNP Paribas and Société Générale have been struggling on the stock market recently. In the space of three months, the shares of the bank with the red and black logo fell by 15%, while those of the bank on rue d’Antin lost 7%. Conversely, Crédit Agricole stood out from its two major competitors, gaining 2% over the period. These contrasting fortunes were correctly anticipated by Momentum, Capital’s premium investment newsletter on the Stock Exchange. Indeed, our team has recently been wisely cautious about the prospects for BNP Paribas and Société Générale shares, while Crédit Agricole seemed to us to be the French banking stock to favor (among the main listed heavyweights in the sector).
Over the past quarter, Société Générale saw its profits divided by five, against a backdrop of depreciation, and taking into account a provision for deferred tax assets, notes eToro. At the end of November, Alphavalue denounced quarterly results well below its expectations and profitability under pressure from “short-term headwinds”. The analysis office, which noted, among other things, exceptional negative elements (depreciation on African, Mediterranean and Overseas activities), warned that the new management of Société Générale could take time to achieve its efficiency targets and of capital. The decline in Societe Generale’s revenues was greater than expected, with in particular a more marked plunge (-16%) than expected in French private banking, insurance and retail banking activities (a division having suffered a decline). “continued poor performance”, according to Alphavalue). Société Générale’s corporate and investment banking business also failed to spark.
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BNP Paribas suffered, like Société Générale, from the slump in retail banking
Conversely, BNP Paribas did much better than Société Générale on the corporate and investment banking front but, like its competitor with the red and black logo, the largest listed French bank was penalized by the slump. of the retail banking activity, disappointing in France as in Italy. BNP Paribas recorded results “not very encouraging” and lower than Alphavalue’s forecasts, which however appreciates that the bank’s costs and cost of risk came out lower than expected. Asset collection, however, suffered from the poor performance of real estate. Positive point for BNP Paribas shareholders: the second tranche of the share buyback plan (2.5 billion euros!) has been launched and will offer mechanical support to the stock price.
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Crédit Agricole performed well against BNP Paribas and Société Générale
Crédit Agricole held its own against BNP Paribas and Société Générale in the third quarter. It is in fact the only major French bank to have increased its net profit and its Net Banking Product (NBI), notes eToro. Crédit Agricole also posted an honorable performance in retail banking, thanks in particular to the good contribution from international markets (in Italy, Poland and Egypt, in particular), while French activities suffered from weak demand for credits. Crédit Agricole is also ahead of its objectives for 2025.
Where are BNP Paribas, Société Générale and Crédit Agricole going on the stock market?
Find in Momentum, Capital’s investment letter, our updated scenarios on the prospects for BNP Paribas, Société Générale and Crédit Agricole shares on the Paris Stock Exchange. And discover our scenarios on the CAC 40 and stocks every day. Momentum helps its readers buy and sell their stocks at the right time. Our team has been able to manage all the major reversals of the Paris Stock Exchange in recent years. Right now, with the promo code CAPITAL30J, take advantage of a free (and no obligation) one-month trial of our service. To register, simply click on the link below.
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