BofA expects resilient Q2 from French banks, names SocGen its 'key pick'

BofA forecasts a resilient Q2 for French banks, with focus falling on the medium-term outlook amid continued uncertainty on higher tariffs, growth implications, and ECB rates; as well as longer-term profitability

Citing positive momentum and potential target upgrades, BofA Global Research names Societe Generale SOGN.PA its 'key pick'

SocGen shares rise 4.5% in early afternoon trading, topping France's CAC 40 .FCHI index, while its peers Credit Agricole CAGR.PA, BNP Paribas BNPP.PA edge up 0.6%-1.2%

The broker sees SocGen's profitability inflecting and expects the bank to announce a 1 billion-euro share buyback, while potentially upgrading its 2025/26 ROTE targets

BofA sees 2025 as a transition year for BNP Paribas, anticipating weak Q2 capital build-up but a strong ROTE turnaround

It expects a mixed Q2 for Credit Agricole, seeing "no positive catalysts" until much-needed fresh targets are announced later in the year