Societe Generale: Termination of the liquidity contract and half-year statement

Key Takeaways:

• Societe Generale ended its liquidity contract with Rothschild Martin Maurel on July 1, 2025.
• The contract was originally signed on August 22, 2011.
• The decision was due to satisfactory daily liquidity of Societe Generale shares.
• As of June 30, 2025, the liquidity account held €5,573,179.76 and zero shares.
• The liquidity contract was suspended from February 10 to April 9, 2025, for a share buyback program.

Societe Generale Ends Longstanding Liquidity Contract

After 14 years, Societe Generale has announced the termination of its liquidity contract with Rothschild Martin Maurel, effective July 1, 2025. The French banking giant cited the satisfactory daily liquidity of its shares over recent years as the primary reason for this decision.

Background of the Liquidity Contract

The liquidity contract was initially established on August 22, 2011. Its purpose was to enhance the liquidity of Societe Generale’s shares in the market, ensuring smoother trading and price stability. An amendment to the contract on December 19, 2018, reduced the resources allocated, adjusting to changing market conditions.

Reasons for Termination

“As the daily liquidity of Societe Generale shares has been satisfactory for several years, Societe Generale decided, as of July 1, 2025, to terminate the liquidity contract entrusted since 2011 to Rothschild Martin Maurel,” the company stated. This move reflects the bank’s confidence in the current liquidity and trading volume of its shares without the need for external support.

Half-Year Liquidity Statement

Upon termination, the liquidity account held zero shares and €5,573,179.76 as of June 30, 2025. For reference:

• On August 22, 2011, at the contract’s inception, the account held zero shares and €170,000,000.
• The December 19, 2018 amendment reduced the resources to zero shares and €5,000,000.
• As of December 31, 2024, the account held zero shares and €5,429,174.

These figures indicate a steady state of resources, supporting the decision to conclude the contract.

Suspension During Share Buyback

The liquidity contract was temporarily suspended from February 10 to April 9, 2025. This suspension coincided with a share buyback program announced on February 6, 2025. The buyback aimed to optimize the capital structure of the company and return value to shareholders.

Share Transactions Overview

Between January 1 and June 30, 2025, Societe Generale provided detailed data on share transactions executed under the liquidity agreement:

• Total Purchase Transactions: 1,534
• Total Sale Transactions: 1,664
• Quantity Purchased and Sold: 538,600 shares each
• Total Purchased Amount: €15,500,036.50
• Total Sold Amount: €15,515,402.10

This data underscores the active management of share liquidity during the first half of 2025.

Conclusion

The termination of the liquidity contract marks a significant milestone for Societe Generale. It demonstrates the bank’s confidence in the robustness of its share liquidity and the efficiency of the market. Shareholders and investors can view this decision as a positive indicator of the company’s market position and financial health.