The last three months haven't been the easiest stretch for Western European banks, and Societe Generale (OTCPK:SCGLY) is down around 6% over that stretch. BNP Paribas (OTCQX:BNPQY) has been even weaker (down more than 10%), while Credit Agricole (OTCPK:CRARY), UniCredit (OTCPK:UNCFF), Credit Suisse (CS) and many others have done better but are still down over that short stretch.
Not
all that much has changed, but banks have moved to a different part of
the recovery phase. First quarter results were pretty "meh," including
those at Societe Generale. The stories have shifted from significant
cost of equity and balance sheet improvements to slower, grind-it-out
return on equity improvements. I continue to believe that Societe
Generale is undervalued and one of the more attractively-priced large
bank stories today, but it's going to take time and the Street still
isn't convinced that Societe Generale is going to produce the
double-digit ROE on schedule and/or improve its lagging Russian
operations.
Read more here:
Societe Generale Continues To Grind Forward
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