Societe Generale has raised its full-year profitability target and announced a €1.5 billion (US$1.7 billion) share buyback program after reporting second-quarter earnings that exceeded analyst expectations. The French lender now aims to achieve a return on tangible equity of approximately 11% for the current year, up from its previous target of above 10%, while also intensifying its cost-reduction efforts.

Net profit for the bank rose 23% year-on-year to €1.79 billion, surpassing the €1.59 billion consensus estimate among market analysts. Chief Executive Officer Slawomir Krupa stated in a Thursday announcement that "revenue growth combined with a significant reduction in costs has improved our operational efficiency. This strong operational momentum has substantially enhanced the group's profitability."

Krupa is scheduled to unveil a new strategic plan in September. Since taking the helm, he has completed capital strengthening, divested certain business units, and has since focused on boosting revenue and increasing shareholder returns. The bank's domestic retail banking operations in France have seen a recovery, driven by lower interest rates on regulated savings accounts and effective cost control measures, though its trading business continues to show uneven performance.