Société Générale: Boursobank’s Shift to Profitability Could Further Boost the Stock, Says Citi
Citi has raised its view on Société Générale, arguing that the French lender’s online banking arm, Boursobank, could become a major driver of earnings growth and a catalyst for a higher valuation. In a note published on Tuesday, June 9, 2026, the US bank lifted its price target on Société Générale to €90 from €84 and reiterated its buy recommendation, implying roughly 25% upside from current levels. Société Générale shares were up about 1.7% in Paris in afternoon trading.
The investment case for Société Générale has strengthened in recent years after the bank streamlined its portfolio, sold assets, exited certain countries, and refocused on core businesses. These moves helped improve its CET1 capital ratio, a closely watched solvency measure, while also allowing management to return excess capital to shareholders beyond its 13% target. The bank has also delivered several quarters of results above analysts’ expectations, supporting confidence in its turnaround under chief executive Slawomir Krupa.
Citi sees Boursobank, formerly known as Boursorama, as one of the most important contributors to that story. The online bank has grown rapidly, expanding from around 600,000 customers in 2014 to 7.2 million in 2024 and 8.8 million in 2025. At the end of 2025, it had nearly €18 billion in loans and €46.6 billion in deposits. Citi says Boursobank is now significantly larger than rival online and digital banking brands tied to BNP Paribas, Crédit Mutuel, Revolut and N26.
The division has also become materially more profitable. Over the past decade, Boursobank’s net banking income rose from about €100 million to €450 million, and the unit has been profitable for three years. Citi believes there is still room for further improvement as the bank shifts away from a growth-at-any-cost model and focuses more on efficiency and monetization. Historically, Boursobank used promotions and cash incentives to attract customers. That phase is now ending, as the bank has reached its previous goal of 8 million clients.
Rather than emphasizing acquisition bonuses, Boursobank is expected to concentrate on product sales, cross-selling, brokerage services, insurance and a higher product-per-customer ratio. Citi also points to a broader use of artificial intelligence to improve operations and personalize offers. The bank suspended promotions on new accounts in February, later restarting them in mid-March, and Citi noted that this helped boost first-quarter 2026 net profit to €92 million despite slowing new customer acquisition.
Looking ahead, Citi expects Boursobank to keep expanding, but at a more measured pace. The bank forecasts around 10 million customers by the end of 2026 and 15 million by the end of 2029, with a long-term target of 20 million to 25 million users. Citi argues that structural trends in France, including low online banking penetration compared with some European peers, should support continued growth. It also highlights Boursobank’s strong customer satisfaction scores and leading app ratings as advantages.
Citi believes the unit could surpass Société Générale’s target of more than €300 million in net income and reach roughly €800 million by 2029. That would not only lift earnings forecasts, but could also lead to a re-rating of Société Générale’s stock multiple, making Boursobank a central pillar of the bank’s investment case.
