Societe Generale S.a. Class A · EURONEXT:GLE
Societe Generale S.a. Class A — FY2017 Earnings Presentation
78 slides from Societe Generale S.a. Class A's earnings presentation, Feb 8, 2018
Slide 1: Societe Generale Group Results Full-Year and 4th Quarter 2017
S O C I E T E G E N E R AL E G RO UP RESULT S F UL L -YEAR AND 4TH Q UART ER 2017 08.02.2018
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements relating to the targets and strategies of the Societe Generale Group. These forward-looking statements are based on a series of assumptions, both general and specific, in particular the application of accounting principles and methods
Slide 3: Introduction
INTRODUCTION SOCIETE BUILDING TEAM SPIRIT GENERALE TOGETHER
Slide 4: What we delivered in 2017
1 – I NTRO DUCTI O N WHAT WE DELIVERED IN 2017 INCREASED PROFITABILITY Underlying ROTE(1): COST SAVINGS 9.6% in 2017 PLAN EXCEEDING (vs. 9.3% in 2016) TARGET NEW AGILE EUR 1.21bn over ORGANISATION 2015-2017 vs. target ANNOUNCEMENT of EUR 1.07bn OF THE NEW STRATEGIC PLAN ”TRANSFORM TO GROW” MORE ROBU
Slide 5: What we delivered in 2017
1 – I NTRO DUCTI O N WHAT WE DELIVERED IN 2017 INTERNATIONAL RETAIL BANKING GLOBAL BANKING FRENCH RETAIL BANKING AND FINANCIAL SERVICES AND INVESTOR SOLUTIONS Accelerating transformation while Record Group Net Income Strong market recognition maintaining good commercial contribution: ~EUR 2bn moment
Slide 6: At the forefront of innovation
1 – I NTRO DUCTI O N AT THE FOREFRONT OF INNOVATION ELYXIR Full online savings journey supported by a roboadvisor YUP e-wallet ecosystem in Africa PRIVATE BANKING APP Carrying asset allocation simulations RICARICAR Rechargeable lease « Pay as you go » BLOCKCHAIN mobility solution in Italy EXPERIMENT
Slide 7: Group Results
2 GROUP RESULTS SOCIETE BUILDING TEAM SPIRIT GENERALE TOGETHER
Slide 8: From reported to underlying Group net income
2 – G RO UP RESUL TS FROM REPORTED TO UNDERLYING GROUP NET INCOME Q4 17 2017 Pre-tax In EURm Pre-tax In EURm -293 +142 4,491 -1,363 -57 -200 +95 -265 877 +157 -205 -390 -390 2,806 276 69 Q4 17 Reported Adaptation of French tax Provision for Revaluation of IFRIC 21 Tax im pact Q4 17 2017 Reported Por
Slide 9: Good underlying performance
2 – G RO UP RESUL TS GOOD UNDERLYING PERFORMANCE Revenues(1) 2017 Q4 17 EUR 25.1bn EUR 6.2bn +0.5% vs. 2016 +0.8% vs. Q4 16 Operating Expenses(1) Revenues 2017 Q4 17 Ongoing stabilisation of French Retail Banking EUR 17.2bn EUR 4.6bn Record performance of International Retail Banking +1.5% vs. 2016
Slide 10: Low cost of risk for all businesses
2 – G RO UP RESUL TS LOW COST OF RISK FOR ALL BUSINESSES Cost Costof of Risk(1) (in Risk(1) (inbp) bp) French Retail Banking 39 56 43 36 37 30 Confirmation of low annual cost of risk 10 1 2014 2 2015 3 2016 4 2017 Q4 16 Q4 17 International Retail Banking and Financial Services 123 102 53 Significant
Slide 11: Strong balance sheet
2 – G RO UP RESUL TS STRONG BALANCE SHEET Q4 17: change in Fully-Loaded CET1(1) Ratio (in bp) CET1(1) at 11.4% Hybrid coupons -3bp -12bp -7bp Circa +380bp management buffer above regulatory requirement -3bp -7bp applicable in 2017 +1bp IFRS 9 11.7% 11.4% Estimated impact: circa -15bp on CET1 in Q1 1
Slide 12: Q4 17 and 2017 results
2 – G RO UP RESUL TS Q4 17 AND 2017 RESULTS In EUR m Q4 17 Q4 16 Change 2017 2016 Change Revenues(1): +0.8% vs. Q4 16 (+0.5%(2) vs. 2016) Net banking income 6,323 6,129 +3.2% 23,954 25,298 -5.3% French Retail Banking revenues in line with guidance Net b anking income(1) 6,228 6,177 +0.8% 24,011 25,6
Slide 13: Business Results
3 BUSINESS RESULTS SOCIETE BUILDING TEAM SPIRIT GENERALE TOGETHER
Slide 14: Well on track to reach new major milestones in 2018
3 – BUSI NESS RESUL TS - FRENCH RETAI L BANKI NG WELL ON TRACK TO REACH NEW MAJOR MILESTONES IN 2018 SOCIETE GENERALE NETWORK TRANSFORMATION ROADMAP 2017 2018 2020 • Dematerialisation and automation of Digitisation of processes on-boarding process and loan subscription for professionals Intelligent
Slide 15: Good commercial dynamism in 2017
3 – BUSI NESS RESUL TS - FRENCH RETAI L BANKI NG GOOD COMMERCIAL DYNAMISM IN 2017 A Successful Relationship Model Supported by our 3 Brands New customer relationships Individual clients end 2017 Corporate(1) +1.0% Professionals(1) +1.4% Wealthy and mass +4.7% 1.3M (+30%) Affluent clients(2) Solid Lo
Slide 16: Net contribution reflects positive impact of the transformation
3 – BUSI NESS RESUL TS - FRENCH RETAI L BANKI NG NET CONTRIBUTION REFLECTS POSITIVE IMPACT OF THE TRANSFORMATION Net Banking Income(1) (in EUR m) Revenues(1) down -1.0% in Q4 17 and -2.9%(3) in 2017 40% 40% 41% 44% Fees as a % of total NBI Growing fee businesses (+4.1%) partially offsetting decrea
Slide 17: Successful turnaround in Russia
3 – BUSI NESS RESUL TS - I NTERNATI O NAL RETAI L BANKI NG AND FI NANCI AL SERVI CES SUCCESSFUL TURNAROUND IN RUSSIA Confirmed Rebound in Retail Segment Substantial Improvement in Financial Performance Retail Loan Production (RUB bn) 112 Contribution to Group Net Income of SG Russia(1) (EUR m) Russi
Slide 18: Record financial performance in Europe
3 – BUSI NESS RESUL TS - I NTERNATI O NAL RETAI L BANKI NG AND FI NANCI AL SERVI CES RECORD FINANCIAL PERFORMANCE IN EUROPE Record contribution to Group Net Income (EUR m) A record contribution in 2017 674 551 Dynamic economies and positive consumer sentiment 436 Strong loan growth, particularly in
Slide 19: Sustained momentum in insurance and car fleet services
3 – BUSI NESS RESUL TS - I NTERNATI O NAL RETAI L BANKI NG AND FI NANCI AL SERVI CES SUSTAINED MOMENTUM IN INSURANCE AND CAR FLEET SERVICES Good Momentum in Insurance Successful Year for ALD Automotive Savings products: outstandings +16% vs. Q4 16, including Strong 2017 performance: targets met(1) A
Slide 20: Strong financial performance
3 – BUSI NESS RESUL TS - I NTERNATI O NAL RETAI L BANKI NG AND FI NANCI AL SERVI CES STRONG FINANCIAL PERFORMANCE Loans and Deposits (in EUR bn – change vs. end-Q4 16) Strong revenue generation +9.0%* 88.6 79.8 +10.4%* Total Revenues +8.3%* vs. Q4 16, supported by volume growth Sustained pace of loa
Slide 21: 2017: Continued client momentum and improved operational efficiency
3 – BUSI NESS RESUL TS - G L O BAL BANKI NG AND I NVESTO R SO L UTI O NS 2017: CONTINUED CLIENT MOMENTUM AND IMPROVED OPERATIONAL EFFICIENCY Market share gains fuelled by client momentum Strong market recognition “Equity Derivatives House of the Year” “Best Private Bank - Western Europe” “Interest R
Slide 22: Resilient quarterly revenues in a muted market
3 – BUSI NESS RESUL TS - G L O BAL BANKI NG AND I NVESTO R SO L UTI O NS RESILIENT QUARTERLY REVENUES IN A MUTED MARKET Global Markets and Investor Services Net Banking Income (in EUR m) Revenues -3% (+1% excluding FX impact) vs. Q4 16 FICC -7%: FX and Rates penalised by muted environment. Dynamic 1
Slide 23: Strong cost and risk discipline
3 – BUSI NESS RESUL TS - G L O BAL BANKI NG AND I NVESTO R SO L UTI O NS STRONG COST AND RISK DISCIPLINE Operating expenses(2) (in EUR m) Revenues down -5% vs. robust Q4 16 +94 -87 +105 -147 Recovery vs. low Q3 17, +8% -127 2017 Revenues down -5% 7,057 6,895 Q4 17 operating expenses in line vs. Q4 1
Slide 24: Improved underlying gross operating income
3 – BUSI NESS RESUL TS – CO RPO RATE CENTRE IMPROVED UNDERLYING GROSS OPERATING INCOME Corporate Centre Results Revenue impact from revaluation of own financial liabilities In EUR m Q4 17 Q4 16 2017 2016 EUR +93m in Q4 17 vs. EUR -50m in Q4 16 Net banking income 27 (214) (1,134) 14 EUR -53m in 2017
Slide 25: Conclusion
CONCLUSION SOCIETE BUILDING TEAM SPIRIT GENERALE TOGETHER
Slide 26: Enhancing shareholder value
4 – CO NCL USI O N ENHANCING SHAREHOLDER VALUE TNAV per share(1) (EUR) Underlying Earnings per share (EUR)(2) Dividend per share (EUR) (3) Dividend floor 2.20 2.20 2,20 55.6 5.03 2,00 4.51 4.60 53.9 54.4 4.04 1,20 49.5 2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 2017 Proven capacity to cr
Slide 27: Committed to deliver
4 – CO NCL USI O N COMMITTED TO DELIVER 2018 STRATEGIC PRIORITIES STABILISE YEARLY REVENUES IN FRENCH RETAIL BANKING 1 WHILE REACHING KEY MILESTONES IN TRANSFORMATION DELIVER SUPERIOR GROWTH AND PROFITABILITY 2 IN INTERNATIONAL BANKING AND FINANCIAL SERVICES STRENGTHEN LEADING FRANCHISES AND DEVELOP
Slide 28: Transform to Grow: 2020 strategic priorities
4 – CO NCL USI O N TRANSFORM TO GROW: 2020 STRATEGIC PRIORITIES GROW FOSTER TRANSFORM RESPONSABILITY COMPLETE REFOCUSING DELIVER ON COSTS FULL-YEAR AND 4TH QUARTER 2017 RESULTS 08.02.2018 28
Slide 29: Key Figures
KEY FIGURES SOCIETE BUILDING TEAM SPIRIT GENERALE TOGETHER
Slide 30: Key figures
5 – KEY FI G URES KEY FIGURES Q4 17 Change Q4 vs. Q4 2017 Change 2017 vs. 2016 In EUR m Net banking income 6,323 +3.2% 23,954 -5.3% Operating expenses (5,024) +14.2% (17,838) +6.1% Net cost of risk (469) -3.5% (1,349) -35.5% Reported Group net income 69 -82.3% 2,806 -27.6% ROE (after tax) -0.4% 4.9%
Slide 31: Supplement
SUPPLEMENT SOCIETE BUILDING TEAM SPIRIT GENERALE TOGETHER
Slide 32: Table of contents
6 - S U P P L E ME N T TABLE OF CONTENTS Societe Generale Group Insurance key figures 55 Quarterly income statement by core business 33 SG Russia results 56 Annual income statement by core business 34 Presence in Central and Eastern Europe 57 Non economic and exceptional items 35 Presence in Africa
Slide 33: Quarterly income statement by core business
6 – S U P P L E ME N T - S O C I E TE G E N E R A L E G R O U P QUARTERLY INCOME STATEMENT BY CORE BUSINESS International Retail Banking and Global Banking and Investor French Retail Banking Corporate Centre Group Financial Services Solutions In EUR m Q4 17 Q4 16 Q4 17 Q4 16 Q4 17 Q4 16 Q4 17 Q4 16
Slide 34: Annual income statement by core business
6 – S U P P L E ME N T - S O C I E TE G E N E R A L E G R O U P ANNUAL INCOME STATEMENT BY CORE BUSINESS International Retail Banking and Global Banking and Investor French Retail Banking Corporate Centre Group Financial Services Solutions In EUR m 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 N
Slide 35: Non economic and exceptional items
6 – S U P P L E ME N T - S O C I E TE G E N E R A L E G R O U P NON ECONOMIC AND EXCEPTIONAL ITEMS In EUR m Q4 17 Q4 16 Change 2017 2016 Change Net Banking Income 6,323 6,129 +3.2% 23,954 25,298 -5.3% Reevaluation of own financial liabilities* 93 (50) (53) (354) Corporate Centre DVA* 2 2 (4) (1) Gro
Slide 36: CRR/CRD4 prudential capital ratios
6 – S U P P L E ME N T - S O C I E TE G E N E R A L E G R O U P CRR/CRD4 PRUDENTIAL CAPITAL RATIOS Fully Loaded Common Equity Tier 1, Tier 1 and Total Capital In EUR bn 31/12/2017 31/12/2016 Shareholder equity Group share 59.4 62.0 Deeply subordinated notes* (8.5) (10.7) Undated subordinated notes*
Slide 37: CRR leverage ratio
6 – S U P P L E ME N T - S O C I E TE G E N E R A L E G R O U P CRR LEVERAGE RATIO CRR Fully Loaded Leverage Ratio(1) In EUR bn 31/12/2017 31/12/2016 Tier 1 Capital 48.9 51.5 Total prudential balance sheet (2) 1,138 1,270 Adjustement related to derivative exposures (61) (112) Adjustement related to
Slide 38: Strong TLAC ratio already in line with regulatory requirements
6 – S U P P L E ME N T - S O C I E TE G E N E R A L E G R O U P STRONG TLAC RATIO ALREADY IN LINE WITH REGULATORY REQUIREMENTS TLAC ratio Already meeting 2019 (~19.5%) requirements and on track for 2022 (~21.5%)(1) High level of protection for the senior tranches rewarded by Fitch upgrade for the so
Slide 39: Cost savings plan beyond targets with project costs less than anticipated
6 – S U P P L E ME N T - S O C I E TE G E N E R A L E G R O U P COST SAVINGS PLAN BEYOND TARGETS WITH PROJECT COSTS LESS THAN ANTICIPATED 2015-2017 Cost Savings Plans (In EUR m) 2015-2017 cost savings amounting to EUR 1.21bn, higher than 1,213 the EUR 1.07bn target, representing an achievement rate
Slide 40: Risk-weighted assets (CRR/CRD 4, in EUR bn)
6 – S U P P L E ME N T - R I S K MA N A G E M E N T RISK-WEIGHTED ASSETS* (CRR/CRD 4, IN EUR BN) 131.0 124.2 124.0 355.5 352.9 353.3 112.7 114.4 116.8 44.4 29.3 48.7 49.0 7.6 7.7 100.6 100.5 7.0 32.0 32.0 16.9 Total 97.3 0.0 0.1 14.7 14.8 0.0 5.4 5.6 4.8 16.5 0.0 0.0 0.0 14.3 14.5 Operational Market
Slide 41: Breakdown of SG Group commitments by sector at 31.12.2017
6 – S U P P L E ME N T - R I S K MA N A G E M E N T BREAKDOWN OF SG GROUP COMMITMENTS BY SECTOR AT 31.12.2017 Construction Hotels & Catering Transport equip. manuf. 2% Media 3% Automobiles Machinery and equipment 2% 4% 1% 2% Wholesale trade Metals, minerals 8% 4% Oil and gas Retail trade 6% 5% Healt
Slide 42: Geographic breakdown of SG Group commitments at 31.12.2017
6 – S U P P L E ME N T - R I S K MA N A G E M E N T GEOGRAPHIC BREAKDOWN OF SG GROUP COMMITMENTS AT 31.12.2017 On-and off-balance sheet EAD* On-balance sheet EAD* All customers included: EUR 872bn All customers included: EUR 650bn Asia-Pacific Africa and 5% Asia-Pacific Africa and Middle East Latin
Slide 43: Change in gross book outstandings
6 – S U P P L E ME N T - R I S K MA N A G E M E N T CHANGE IN GROSS BOOK OUTSTANDINGS* End of period in EUR bn 486.4 477.6 477.5 479.1 483.1 478.7 467.4 475.5 472.7 Total 461.4 458.3 Global Banking 156.9 155.8 137.9 136.0 and Investor Solutions 143.9 154.0 152.2 135.5 138.0 International Retail Bank
Slide 44: Non performing loans
6 – S U P P L E ME N T - R I S K MA N A G E M E N T NON PERFORMING LOANS In EUR bn 31/12/2017 30/09/2017 31/12/2016 Gross book outstandings* 478.7 472.7 479.1 Doubtful loans* 20.9 21.4 23.9 Group Gross non performing loans ratio* 4.4% 4.5% 5.0% Specific provisions* 11.3 11.8 13.7 Portfolio-based pro
Slide 45: Change in trading VaR and stressed VaR
6 – S U P P L E ME N T - R I S K MA N A G E M E N T CHANGE IN TRADING VAR* AND STRESSED VAR** Quarterly Average of 1-Day, 99% Trading VaR* (in EUR m) 20 20 21 21 22 30 32 19 Trading VaR* 19 6 8 12 11 8 Credit 7 6 8 18 16 5 16 Interest Rates 15 16 17 13 12 14 19 Equity 16 14 12 14 19 15 15 12 4 Forex
Slide 46: Diversified exposure to Russia
6 – S U P P L E ME N T - R I S K MA N A G E M E N T DIVERSIFIED EXPOSURE TO RUSSIA EAD(1) as of Q4 17: EUR 15.9bn Other Corporates Sovereign ONSHORE Financial Institutions 18% 4% 6% Car loans 23% 25% Mortgages 49% 24% 35% Corporates Retail Consumer Tier 1(2) 4% loans 12% Other OFFSHORE (1) EAD net o
Slide 47: Change in net banking income
6 – S U P P L E ME N T - F R E N C H R E TA I L B A N K I N G CHANGE IN NET BANKING INCOME 2,177 2,056 2,052 1,939 2,085 NBI in EUR m Commissions: 180 210 223 229 Financial Fees +4.1% vs. Q4 16 213 681 Service Commissions 690 667 667 666 Interest margin(1): 123 46 100 177 Other 92 -4.6% vs. Q4 16 50
Slide 48: Customer deposits and financial savings
6 – S U P P L E ME N T - F R E N C H R E TA I L B A N K I N G CUSTOMER DEPOSITS AND FINANCIAL SAVINGS Change Average outstanding Q4 17 vs. Q4 16 in EUR bn 306.7 306.1 +2.6% 298.2 302.6 305.4 Life Insurance Financial savings: 91.9 92.0 92.8 +2.4% EUR 90.7 91.4 -0.4% Mutual Funds Others 17.0 17.0 17.3
Slide 49: Loans outstanding
6 – S U P P L E ME N T - F R E N C H R E TA I L B A N K I N G LOANS OUTSTANDING Average outstanding, net of provisions Change in EUR bn Q4 17 vs. Q4 16 184.0 184.2 185.1 186.4 187.4 +1.9% Individual Customers o.w.: 93.6 93.9 94.2 95.2 95.8 +2.4% Housing Consumer Credit 11.1 11.0 11.1 11.1 11.2 +1.5%
Slide 50: International Retail Banking and Financial Services – quarterly results
6 – S U P P L E ME N T - I N TE R N A T I O N A L R E TA I L B A N K I N G A N D F I N A N C I A L S E R V I C E S INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES – QUARTERLY RESULTS International Retail Banking Insurance Financial Services to Corporates Other Total In EUR m Q4 17 Q4 16 Change Q
Slide 51: International Retail Banking and Financial Services – annual results
6 – S U P P L E ME N T - I N TE R N A T I O N A L R E TA I L B A N K I N G A N D F I N A N C I A L S E R V I C E S INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES – ANNUAL RESULTS Financial Services to International Retail Banking Insurance Other Total Corporates In EUR m 2017 2016 Change 2017 2
Slide 52: Quarterly results of International Retail Banking: breakdown by region
6 – S U P P L E ME N T - I N TE R N A T I O N A L R E TA I L B A N K I N G A N D F I N A N C I A L S E R V I C E S QUARTERLY RESULTS OF INTERNATIONAL RETAIL BANKING: BREAKDOWN BY REGION Total International Retail Western Europe Czech Republic Romania Other Europe Russia (1) Africa and others Banking
Slide 53: Annual results of International Retail Banking: breakdown by region
6 – S U P P L E ME N T - I N TE R N A T I O N A L R E TA I L B A N K I N G A N D F I N A N C I A L S E R V I C E S ANNUAL RESULTS OF INTERNATIONAL RETAIL BANKING: BREAKDOWN BY REGION Total International Western Europe Czech Republic Romania Other Europe Russia (1) Africa and others Retail Banking In
Slide 54: Loan and deposit outstandings breakdown
6 – S U P P L E ME N T - I N TE R N A T I O N A L R E TA I L B A N K I N G A N D F I N A N C I A L S E R V I C E S LOAN AND DEPOSIT OUTSTANDINGS BREAKDOWN Loan Outstandings Breakdown (in EUR bn) Deposit Outstandings Breakdown (in EUR bn) Change Change Dec. 17 vs. Dec. 16 Dec. 17 vs. Dec. 16 0.9 1.0
Slide 55: Insurance key figures
6 – S U P P L E ME N T - I N TE R N A T I O N A L R E TA I L B A N K I N G A N D F I N A N C I A L S E R V I C E S INSURANCE KEY FIGURES Life Insurance Outstandings Personal Protection Insurance Premiums (in EUR bn) and Unit Linked Breakdown (in EUR bn) Change 98.3 98.8 112.1 112.9 114.1 Q4 17 vs. Q
Slide 56: SG Russia
6 – S U P P L E ME N T - I N TE R N A T I O N A L R E TA I L B A N K I N G A N D F I N A N C I A L S E R V I C E S SG RUSSIA(1) SG Russia Results In EUR m Q4 17 Q4 16 Change 2017 2016 Change Net banking income 229 188 +23.1%* 838 689 +8.1%* Operating expenses (158) (137) +16.9%* (618) (519) +5.7%* G
Slide 57: Presence in Central and Eastern Europe
6 – S U P P L E ME N T - I N TE R N A T I O N A L R E TA I L B A N K I N G A N D F I N A N C I A L S E R V I C E S PRESENCE IN CENTRAL AND EASTERN EUROPE Clients NBI Net income C/I RWA 7.5m EUR 2.2bn EUR 475m 59.7% EUR 30.7bn 2017 NBI RWA Credits Deposits L/D ratio Ranking (In EUR m) (In EUR m) (In
Slide 58: Presence in Africa
6 – S U P P L E ME N T - I N TE R N A T I O N A L R E TA I L B A N K I N G A N D F I N A N C I A L S E R V I C E S PRESENCE IN AFRICA Clients NBI Net income C/I RWA 4m EUR 1.3bn EUR 221m 56.1% EUR 20.1bn 2017 NBI RWA Credits Deposits L/D ratio Ranking (In EUR m) (In EUR m) (In EUR m) (In EUR m) Moro
Slide 59: Global Banking and Investor Solutions – quarterly results
6 – S U P P L E ME N T - G L O B A L B A N K I N G A N D I N V E S TO R S O L U TI O N S GLOBAL BANKING AND INVESTOR SOLUTIONS – QUARTERLY RESULTS Global Markets and Investor Financing and Advisory Asset and Wealth Management Total Global Banking and Investor Solutions Services Q4 17 Q4 16 Change Q4
Slide 60: Global Banking and Investor Solutions – annual results
6 – S U P P L E ME N T - G L O B A L B A N K I N G A N D I N V E S TO R S O L U TI O N S GLOBAL BANKING AND INVESTOR SOLUTIONS – ANNUAL RESULTS Global Markets and Investor Services Financing and Advisory Asset and Wealth Management Total Global Banking and Investor Solutions 2017 2016 Change 2017 20
Slide 61: Risk-weighted assets in EUR bn
6 – S U P P L E ME N T - G L O B A L B A N K I N G A N D I N V E S TO R S O L U TI O N S RISK-WEIGHTED ASSETS IN EUR BN Global Markets and Investor Services Global Markets Investor Services 59.2 54.8 54.8 12.8 10.9 11.9 20.2 21.1 20.0 4.1 3.3 0.0 4.6 15.2 13.2 13.3 0.0 0.1 23.8 7.5 8.7 7.2 20.6 21.4
Slide 62: Global Banking and Investor Solutions - revenues
6 – S U P P L E ME N T - G L O B A L B A N K I N G A N D I N V E S TO R S O L U TI O N S GLOBAL BANKING AND INVESTOR SOLUTIONS - REVENUES Global Markets and Investor Services Revenues (in EUR m) Asset and Wealth Management Revenues (in EUR m) 3 5 5 7 Others 176 Prime 49 4 Services 44 46 163 176 50 L
Slide 63: Key figures
6 – S U P P L E ME N T - G L O B A L B A N K I N G A N D I N V E S TO R S O L U TI O N S KEY FIGURES Private Banking: Assets under Management(1) (in EUR bn) Lyxor: Assets under Management(2) (in EUR bn) 119 119 119 118 106 107 108 110 112 116 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q4 16 Q1 17 Q2 17 Q3 17 Q4
Slide 64: CVA/DVA impact
6 – S U P P L E ME N T - G L O B A L B A N K I N G A N D I N V E S TO R S O L U TI O N S CVA/DVA IMPACT NBI impact Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Equities 8 19 10 2 3 Fixed income,currencies,commodities 23 27 16 7 7 Financing and Advisory 19 18 14 12 7 Total 50 64 40 21 17 FULL-YEAR AND 4TH QUARTER 2
Slide 65: Awards
6 – S U P P L E ME N T - G L O B A L B A N K I N G A N D I N V E S TO R S O L U TI O N S AWARDS Financing and Advisory Global Markets and Investor Services DCM - League Table M&A – League Table #4 All Euro Bonds #5 Target France #3 All Euro Corporate Bonds #6 Target Spain #2 All EMEA Euro Corporate
Slide 66: Landmark transactions in Q4 17
6 – S U P P L E ME N T - G L O B A L B A N K I N G A N D I N V E S TO R S O L U TI O N S LANDMARK TRANSACTIONS IN Q4 17 Societe Generale achieved financial close for the USD 400 million Societe Generale acted as Bookrunner and Mandated Lead Arranger financing of the 250 MW Ras Ghareb wind farm locat
Slide 67: Group funding structure
6 – S U P P L E ME N T - F U N D I N G GROUP FUNDING STRUCTURE 31 DECEMBER 2016 30 SEPTEMBER 2017 31 DECEMBER 2016 31 DECEMBER 2017 Due to Customers 421 411 Due to Banks o.w. Securities sold to customer Financial Liabilities at Fair Value through under repurchase agreements Profit or Loss(1) - Struc
Slide 68: Long term funding programme
6 – S U P P L E ME N T - F U N D I N G LONG TERM FUNDING PROGRAMME Parent company 2017 funding programme EUR 24.1bn (including EUR 17bn of structured notes) Completed at 125% at end 2017 (EUR 30bn, including 71% of structured notes) Competitive funding conditions: MS6M+16bp, (incl. senior non prefer
Slide 69: Long term funding breakdown
6 – S U P P L E ME N T - F U N D I N G LONG TERM FUNDING BREAKDOWN Long Term Funding Breakdown(1) 31.12.17 4% 15% 14% EUR 168bn 14% Subordinated Debt(2) Senior Non-Preferred Issues 30% Senior Vanilla Preferred LT Interbank Liabilities(5) Unsecured Issues(3) 9% Senior Structured Issues Subsidiaries 1
Slide 70: Liquid asset buffer
6 – S U P P L E ME N T - F U N D I N G LIQUID ASSET BUFFER Liquid Asset Buffer (in EUR bn) 168 157 158 155 174 73 94 84 87 76 Central Bank Deposits(1) High Quality Liquid 79 Asset Securities(2) 63 64 64 61 Central Bank Eligible 16 16 16 Assets(2) 8 10 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Liquidity Coverage
Slide 71: EPS calculation
6 – S U P P L E ME N T - S H A R E EPS CALCULATION Average number of shares (thousands) 2017 2016 2015 Existing shares 807,754 807,293 805,950 Deductions Shares allocated to cover stock option plans 4,961 4,294 3,896 and free shares awarded to staff Other own shares and treasury shares 2,198 4,232 9
Slide 72: Net asset value, tangible net asset value
6 – S U P P L E ME N T - S H A R E NET ASSET VALUE, TANGIBLE NET ASSET VALUE End of period 2017 2016 2015 Shareholders' equity Group share 59,373 61,953 59,037 Deeply subordinated notes (8,520) (10,663) (9,552) Undated subordinated notes (269) (297) (366) Interest net of tax payable to holders of de
Slide 73: Reconciliation of shareholders equity to ROE/ROTE equity
6 – S U P P L E ME N T - S H A R E RECONCILATION OF SHAREHOLDERS EQUITY TO ROE/ROTE EQUITY End of period 2017 2016 2015 Shareholders' equity Group share 59,373 61,953 59,037 Deeply subordinated notes (8,520) (10,663) (9,552) Undated subordinated notes (269) (297) (366) Interest net of tax payable to
Slide 74: Methodology (1/3)
6 – TE C H N I C A L S U P P L E M E N T METHODOLOGY (1/3) 1 – The Group’s consolidated results as at December 31st, 2017 were approved by the Board of Directors on February 7th, 2018. The financial information presented in respect of Q4 and the year ended December 31st, 2017 has been prepared in ac
Slide 75: Methodology (2/3)
6 – TE C H N I C A L S U P P L E M E N T METHODOLOGY (2/3) (In EUR M) Q4 17 Q4 16 2017 2016 Net Cost of Risk 178 184 567 679 French Retail Gross loan outstandings 194,122 187,465 191,826 188,049 Banking Cost of Risk in bp 37 39 30 36 Net Cost of Risk 109 161 366 763 International Retail Gross loan o
Slide 76: Methodology (3/3)
6 – TE C H N I C A L S U P P L E M E N T METHODOLOGY (3/3) The notion of ROTE, as well as the methodology for calculating it, is specified on page 47 of Societe Generale’s 2017 Registration Document. This measure makes it possible to assess Societe Generale’s return on tangible equity. The figures p
Slide 77: Societe Generale investment case
6 – S U P P L E ME N T - S O C I E TE G E N E R A L E G R O U P SOCIETE GENERALE INVESTMENT CASE WE ARE A EUROPEAN BANK WHICH WILL COMBINE SUPERIOR GROWTH AND ATTRACTIVE 1 DIVIDEND POLICY WE HAVE THE HUMAN EXPERTISE AND TECHNOLOGY RESOURCES TO LEVERAGE ON 2 HIGH-POTENTIAL CLIENT FRANCHISES WE HAVE T
Slide 78: Investor relations team
INVESTOR RELATIONS TEAM +33 (0)1 42 14 47 72 [email protected] www.societegenerale.com/en/investors