Good Underlying Performance at Societe Generale in Q2, but Loss on Russia Disposal Bites

No-moat Societe Generale reported second-quarter operating income of EUR 2,390 million, up 19% versus the same period a year ago. Income generation of EUR 7,065 million (up 13%) outpaced operating expenses of EUR 4,458 million (up 9%) resulting in the solid operating income performance. The group also booked a loss on the disposal of Rosbank and its insurance subsidiaries in Russia worth EUR 3.3 billion, which plunged the quarter's net result to a hefty loss of EUR 1,482 million. That said, underlying performance was solid and we maintain our fair value estimate of EUR 25.50 per share.