Societe Generale In A Position To Switch From Stabilization To Actual Growth

Shareholders of Societe Generale (OTCPK:SCGLY) (“SocGen”) have endured more than a decade of substandard performance, with the bank underperforming not only relative to other French banks like BNP Paribas (OTCQX:BNPQY) and Credit Agricole (OTCPK:CRARY), but to a wider set of quality European banks as well. SocGen’s problems have been legion, putting the company into a very poor capital position and necessitating numerous defensive asset sales and restructuring efforts.

At long last, though, there are more than just signs of progress. SocGen’s capital improvement in the third quarter may have been helped by timing factors, but the bank’s capital position is nevertheless in a much better place and most of the heavy lifting on restructuring is likely done. If SocGen can avoid any major missteps, and if the global economy doesn’t deteriorate too much from here, this long-troubled bank may finally be in a position to go from defense to perhaps actually pursuing growth again.

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Societe Generale In A Position To Switch From Stabilization To Actual Growth