Banks Financials’ Finest list: Santander Replaces SocGen

Research evidence excerpt

Banks Financials’ Finest list: Santander Replaces SocGen

Idea

July 13, 2026 08:50 PM GMT

Morgan Stanley & Co. LLCMBanks | North America Betsy L. Graseck, CFA

Equity Analyst

Banks Financials’ Finest list: Betsy.Graseck@morganstanley.comMorgan Stanley Europe S.E., Madrid Branch+ +1 212 761-8473

Alvaro Serrano

Equity AnalystSantander Replaces SocGen Alvaro.Serrano@morganstanley.com +44 20 7425-6942

We are removing SocGen from our Banks Financials’ Finest list Morgan Stanley & Co. International plc+

Giulia Aurora Miotto, CFA

Equity Analystfollowing our removal of Top Pick in March, replacing with

Giulia.Aurora.Miotto@morganstanley.com +44 20 7425-5344

Santander following the designation of Top Pick.

Almario Sulaj

Research Associate

Removing SocGen from Banks Financials' Finest list: Almario.Sulaj@morganstanley.com +44 20 7425-2049

Ned Tidmarsh

SocGen (SOGN.PA) Research Associate

Ned.Tidmarsh@morganstanley.com +44 20 7425-0122

• We removed the Top Pick on 23rd March

Morgan Stanley & Co. LLC

• SocGen remains an Overweight and our preferred French bank, but we Ben Bayanfar

removed it from our list of Top Picks. Research Associate

Ben.Bayanfar@morganstanley.com +1 212 761-0649

• We continue to have conviction in the cost turnaround, and management

continue to deliver a reassuring message on cost management and we are

ahead of consensus as a result of better costs - we believe this will remain a

key topic for the September CMD.

• However, valuation has become more expensive, at 7x 2028E PE and 0.95x

P/2027 TNAV for 13% ROTE in our numbers by 2028. This now screens more

in line with BNP and CASA vs previously where SocGen screened as cheaper.

• In addition, ongoing global uncertainty continues to pose a risk to the