Societe Generale S.a. Class A · EURONEXT:GLE
Societe Generale S.a. Class A — Debt Investor Presentation (September 2014)
69 slides from Societe Generale S.a. Class A's debt investor presentation, September 2014
Slide 1: Presentation to Debt Investors
SOCIETE GENERALE PRESENTATION TO DEBT INVESTORS SEPTEMBER 2014
Slide 2: Disclaimer
DISCLAIMER This document may contain a number of forecasts and comments relating to the targets and strategies of the Societe Generale Group. These forecasts are based on a series of assumptions, both general and specific, notably - unless specified otherwise - the application of accounting principl
Slide 3: Table of Contents
TABLE OF CONTENTS LATEST RESULTS AND GROUP OVERVIEW CAPITAL AND LIQUIDITY RISKS RATINGS KEY FIGURES APPENDICES PRESENTATION TO DEBT INVESTORS | P.3
Slide 4: Latest Results and Group Overview
LATEST RESULTS AND GROUP OVERVIEW CAPITAL AND LIQUIDITY RISKS RATINGS KEY FIGURES APPENDICES PRESENTATION TO DEBT INVESTORS | P.4
Slide 5: 2014-2016: A New Phase of Development for Societe Generale
SOCIETE GENERALE GROUP 2014-2016: A NEW PHASE OF DEVELOPMENT FOR SOCIETE GENERALE We are a leading European Universal Bank with an international reach and solid roots • 150 years of existence dedicated to accompanying corporate and retail clients internationally • Demonstrated ability to grow, resis
Slide 6: A Universal Model Based on Complementary Pillars with Leading Franchises
SOCIETE GENERALE GROUP A UNIVERSAL MODEL BASED ON 3 COMPLEMENTARY PILLARS WITH LEADING FRANCHISES Strong market positions across businesses Refocused on core franchises following portfolio optimisation since 2010 Organisational simplification and streamlining achieved in 2013 INTERNATIONAL RETAIL BA
Slide 7: A Good Geographical Balance
SOCIETE GENERALE GROUP A GOOD GEOGRAPHICAL BALANCE Recurring earnings from mature countries 2013 NBI BREAKDOWN (EUR 23bn) Exposure to fast-growing emerging markets EMERGING: ca. 25% LATIN AMERICA A balance to be maintained going forward AFRICA RUSSIA 1% 5% ‘B to C’ activities to remain focused on th
Slide 8: Q2 14: Execution of Strategy Delivering Good Business Performance
SOCIETE GENERALE GROUP Q2 14: EXECUTION OF STRATEGY DELIVERING GOOD BUSINESS PERFORMANCE NBI from businesses EUR 6,250m, up +0.6%* vs. Q2 13 Costs down -1.3%* vs. Q2 13 Solid business Commercial cost of risk down -10bp at 57bp (vs. 67 bp in Q2 13) model and results Group net income +7.8% at EUR 1,03
Slide 9: Capital and Liquidity
LATEST RESULTS AND GROUP OVERVIEW CAPITAL AND LIQUIDITY RISKS RATINGS KEY FIGURES APPENDICES PRESENTATION TO DEBT INVESTORS | P.9
Slide 10: Solid Solvency Ratios
SOCIETE GENERALE GROUP SOLID SOLVENCY RATIOS Fully loaded Basel 3 CET1 ratio: 10.2%(1) at CET 1 ratio end-June 2014 -12bp • Significant buffer above 2019 minimum required +33bp -12bp +15bp level (8% CRR) including G-SIFI requirement RWA Dividend -22bp +15bp Others provision 10.2% 10.0% Impairment H2
Slide 11: Robust Balance Sheet
SOCIETE GENERALE GROUP ROBUST BALANCE SHEET EUR 1.3trn balance sheet out of which EUR 0.7trn Group Balance Sheet In EUR bn funded balance sheet 1 323 1 323 • Excluding contribution of insurance INSURANCE 105 105 INSURANCE • Netting of derivatives, repos and other assets and liabilities 187 186 DERIV
Slide 12: Strengthened Funding Structure
SOCIETE GENERALE GROUP STRENGHTENED FUNDING STRUCTURE Significant shift towards stable resources vs. Funded Balance Sheet short term funding In EUR bn • Short term funding at 13% of funded balance sheet, CENTRAL 669 669 BANKS 653 653 down vs. 25% at mid-2011 33 SHORT TERM INTERBANK 58 RESOURCES 41 8
Slide 13: Short Term Funding Managed and Well Covered by Liquidity Reserve
SOCIETE GENERALE GROUP SHORT TERM FUNDING MANAGED AND WELL COVERED BY LIQUIDITY RESERVE Tight management of short term wholesale funding Short term wholesale resources (in EUR bn) and short term needs coverage (%) • Down by EUR -26bn since March 2013, in line with the Group target (EUR 60-70bn by en
Slide 14: Diversified Access to Long Term Funding Sources
SOCIETE GENERALE GROUP DIVERSIFIED ACCESS TO LONG TERM FUNDING SOURCES Long term funding breakdown(1) Access to diversified and complementary investor LT Interbank bases through: liabilities(4) Subordinated debt(5) Subsidiaries(3) 5% 12% • Subordinated debts 12% • Senior vanilla issuances (public or
Slide 15: Long Term Funding Programme
SOCIETE GENERALE GROUP LONG TERM FUNDING PROGRAMME SG 5 year secondary conditions EUR 16.7bn raised at 21st July 2014, 400 (in bp – spread to Mid Swap) representing approx. 80% of planned issues 350 • EUR 13.4bn issued by the parent company 300 • Senior debt and covered bonds issued: EUR 10.6bn, wit
Slide 16: Societe Generale Will Continue to Improve Its Balance Sheet Metrics
SOCIETE GENERALE GROUP SOCIETE GENERALE WILL CONTINUE TO IMPROVE ITS BALANCE SHEET METRICS Additional steps to reinforce capital and funding structure Targets 2013 Q2 14 2016 • Tier 1 and Total Capital ratios to be raised further • Short term wholesale funding to be reduced to EUR 60- CET1(2) 10.0%
Slide 17: Risks
LATEST RESULTS AND GROUP OVERVIEW CAPITAL AND LIQUIDITY RISKS RATINGS KEY FIGURES APPENDICES PRESENTATION TO DEBT INVESTORS | P.17
Slide 18: Cost of Risk to Normalise
SOCIETE GENERALE GROUP COST OF RISK TO NORMALISE GROUP COST OF RISK 106 in bp(1) (2) in EUR bn(2) 83 71 75 75 67 65 55-60 4.3 2.7 3.8 3.4 3.2 3.1 22 23 16 2.4 0.4 0.7 0.8 0.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q1 14 2016 2013-2016 COST OF RISK BY DIVISION (IN BP) (1) 150 2013 2016 ~100 75
Slide 19: Q2 14: Overall Decrease in Group Commercial Cost of Risk
SOCIETE GENERALE GROUP Q2 14: OVERALL DECREASE IN GROUP COMMERCIAL COST OF RISK bp)(1, 2, 3) Cost of risk (in bp) French Retail Banking Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 • Gradual downward trend maintained vs. 2013 74 61 63 51 57 FRENCH RETAIL International Banking and Financial Services BANKING (1) 201
Slide 20: Reduced Market Risk
SOCIETE GENERALE GROUP REDUCED MARKET RISK VAR VaR (99% confidence level, 1 day horizon – EUR m) • Despite a more conservative model, VaR in a narrow range around EUR 30m 70 48 46 50 46 45 42 45 41 36 41 34 34 30 32 30 27 27 25 23 30 23 25 22 Stress Tests • Significant reduction: -61% vs. Q4 07 desp
Slide 21: Ratings
LATEST RESULTS AND GROUP OVERVIEW CAPITAL AND LIQUIDITY RISKS RATINGS KEY FIGURES APPENDICES PRESENTATION TO DEBT INVESTORS | P.21
Slide 22: Credit Ratings Overview
SOCIETE GENERALE GROUP CREDIT RATINGS OVERVIEW DBRS Key strengths reflected in Societe Generale’s ratings are namely its strong Senior Long-term debt AA (low) (Negative) franchise as well as strong balance sheet metrics Senior Short-term debt R-1 (middle) (Stable) • Strong franchise Intrinsic Assess
Slide 23: Key Figures
LATEST RESULTS AND GROUP OVERVIEW CAPITAL AND LIQUIDITY RISKS RATINGS KEY FIGURES APPENDICES PRESENTATION TO DEBT INVESTORS | P.23
Slide 24: Consolidated Results
SOCIETE GENERALE GROUP CONSOLIDATED RESULTS Net banking income: EUR 5,893m in Q2 14 Group results (in EUR m) • Good business activity Revenues from businesses up +0.6%* vs. Q2 13 In EUR m Q2 13 Q2 14 Change H1 13 H1 14 Change Net banking income 6,120 5,893 -3.7% -4.7%* 11,101 11,569 +4.2% +5.2%* Wel
Slide 25: Quarterly Income Statement by Core Business
SOCIETE GENERALE GROUP QUARTERLY INCOME STATEMENT BY CORE BUSINESS International Retail French Retail Banking and Global Banking and Banking Financial Services Investor Solutions Corporate Centre Group Q2 13 Q2 14 Q2 13 Q2 14 Q2 13 Q2 14 Q2 13 Q2 14 Q2 13 Q2 14 Net banking income 2,119 2,066 1,929 1
Slide 26: Half Year Income Statement by Core Business
SOCIETE GENERALE GROUP HALF YEAR INCOME STATEMENT BY CORE BUSINESS International Retail French Retail Banking and Global Banking and Banking Financial Services Investor Solutions Corporate Centre Group H1 13 H1 14 H1 13 H1 14 H1 13 H1 14 H1 13 H1 14 H1 13 H1 14 Net banking income 4,189 4,139 3,861 3
Slide 27: Corporate Centre
SOCIETE GENERALE GROUP CORPORATE CENTRE(1) Impact from revaluation of own financial liabilities Corporate Centre results (in EUR m) EUR -21m before tax in Q2 14 (vs. EUR +53m in Q2 13) and EUR -179m in H1 14 vs. EUR -992m in Q2 13 Q2 14 Change H1 13 H1 14 Change H1 13 Net banking income (21) (357) N
Slide 28: Appendices
LATEST RESULTS AND GROUP OVERVIEW CAPITAL AND LIQUIDITY RISKS RATINGS KEY FIGURES APPENDICES PRESENTATION TO DEBT INVESTORS | P.28
Slide 29: Developing Franchises While Maintaining a Balanced Business Mix
APPENDICES – GROUP OVERVIEW AND STRATEGY DEVELOPING FRANCHISES WHILE MAINTAINING A BALANCED BUSINESS MIX RWA(1) Business RWA Reinvested capital to allow business RWA to (2013-2016 CAGR in %) (EUR 364bn) grow +4%(1) p.a. on average between 2013 o.w. Global and 2016 Markets (20%) Group: 4% Revenue gro
Slide 30: Business Initiatives and Synergies Driving Revenue Growth
APPENDICES – GROUP OVERVIEW AND STRATEGY BUSINESS INITIATIVES AND SYNERGIES DRIVING REVENUE GROWTH 2016 REVENUE TARGETS (IN EUR BN, CAGR IN %) Retail activities French Retail Banking • Strong franchises and business initiatives to support RBDF: +1%(1) IBFS: +5%(1) development and to compensate for l
Slide 31: Gradual Rebalancing of Corporate Centre
APPENDICES – GROUP OVERVIEW AND STRATEGY GRADUAL REBALANCING OF CORPORATE CENTRE The Corporate Centre covers two main central functions: 1. Capital, financial investments and real 1. Already allocated to businesses estate management 2. Liquidity and treasury management • Group ALM activity • Managem
Slide 32: Cost/Income Ratio to Drop to 62% by 2016
APPENDICES – GROUP OVERVIEW AND STRATEGY COST/INCOME RATIO TO DROP TO 62% BY 2016 2013-2016 NBI AND OPERATING EXPENSE CAGR (IN %)(1) NBI CAGR 5% Average annual growth in operating expenses OPEX CAGR limited to +1% (1) • Additional investments to support business development 3% 3% • Increased regulat
Slide 33: Group ROE Above 10% in 2016
APPENDICES – GROUP OVERVIEW AND STRATEGY GROUP ROE ABOVE 10% IN 2016 SUPPORTED BY IMPROVED BUSINESS PERFORMANCE Normative ROE of businesses expected at BUSINESS NORMATIVE ROE 15% post tax (equity allocated based on 10% of Basel 3 RWA) 17% 17% 16% • Retail Banking divisions to show normative ROE 15%
Slide 34: Use of Capital Generated Over 2014-2016 Period
APPENDICES – GROUP OVERVIEW AND STRATEGY USE OF CAPITAL GENERATED OVER 2014-2016 PERIOD 2014-2016 CAPITAL MANAGEMENT Significant capital generation EUR ~13bn Dynamic business development generating Others(2) additional RWA, consuming ca. EUR 4bn of EUR capital ~4bn 2015-2016 target payout ratio to s
Slide 35: 2016 Financial Targets
APPENDICES – GROUP OVERVIEW AND STRATEGY 2016 FINANCIAL TARGETS 2013 2016 targets GROWTH REVENUES EUR 24bn(1) +3% CAGR EFFICIENCY COST/INCOME RATIO 66%(1) 62% PROFITABILITY RETURN ON EQUITY 8.3%(1) ≥10% BASEL 3 FULLY LOADED CET1 10% ≥10% SOLVENCY PAYOUT RATIO 27% 50% 2016 EPS: EUR 6 (1) 2013 figures
Slide 36: French Banking Market: Solid Fundamentals
APPENDICES - FRENCH RETAIL BANKING FRENCH BANKING MARKET: SOLID FUNDAMENTALS RISING POPULATION 2010 – 2030 HIGH HOUSEHOLD SAVINGS RATE (in %) (% of income) 16% 15% UK 10.6 13% 13% France 9.6 11% Belgium 6.6 Spain 4.4 5% Italy 1.2 Europe -0.5 Germany -4.2 UK Spain Italy Euro Zone France Germany Sourc
Slide 37: Three Strong, Differentiated and Complementary Brands
APPENDICES - FRENCH RETAIL BANKING THREE STRONG, DIFFERENTIATED AND COMPLEMENTARY BRANDS A universal bank with wide geographical coverage in Key figures Change France French Retail 2013 vs 2010 Banking A bank with recognised expertise An innovative bank, leading the market in terms of Employees 39,3
Slide 38: Stronger Growth than Peers
APPENDICES - FRENCH RETAIL BANKING STRONGER GROWTH THAN PEERS RESILIENT REVENUES CONSISTENT CUSTOMER GROWTH ACROSS ALL MARKETS Cumulative growth in NBI + 31% 2004-2013 at current scope Number of Individual customers + 30% + 28% + 25% + 25% + 24% Boursorama Networks 2010 2013 Number of Professionals
Slide 39: Customer Deposits and Financial Savings
APPENDICES – FRENCH RETAIL BANKING CUSTOMER DEPOSITS AND FINANCIAL SAVINGS Average outstandings Change in EUR bn Q2 14 vs. Q2 13 260.8 263.9 266.1 268.0 269.7 +3.4% LIFE INSURANCE 84.4 85.0 +3.3% Financial 82.3 82.8 83.4 savings: EUR 107.7bn MUTUAL FUNDS +1.5% OTHERS 22.9 22.4 21.1 -5.0% (SG redeem.
Slide 40: Loan Outstandings
APPENDICES – FRENCH RETAIL BANKING LOAN OUTSTANDINGS(1) Change Average outstandings Q2 14 vs. Q2 13 in EUR bn 180.1 178.0 176.6 176.0 174.9 -2.9% INDIVIDUAL CUSTOMERS o.w.: 85.9 85.8 85.2 85.1 -1.2% 84.9 - HOUSING - CONSUMER 11.5 CREDIT AND 11.4 11.3 11.3 11.2 -2.9% OVERDRAFT BUSINESS CUSTOMERS* 81.
Slide 41: Half Year Results
APPENDICES – INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES HALF YEAR RESULTS Financial International Services to Insurance Other Total retail Banking corporates In EUR m H1 13 H1 14 Change H1 13 H1 14 Change H1 13 H1 14 Change H1 13 H1 14 H1 13 H1 14 Change Net banking income 2,928 2,708 +0.5%
Slide 42: Half Year Results of International Retail Banking: Breakdown by Zone
APPENDICES – INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES HALF YEAR RESULTS OF INTERNATIONAL RETAIL BANKING: BREAKDOWN BY ZONE Africa, Asia, Total Mediterranean Western Europe Czech Republic Romania Russia (1) Other Europe International basin and retail Banking Overseas(2) In EUR m H1 13 H1 1
Slide 43: Leading Franchises with Recognised Expertise: Banks & Insurance
APPENDICES - INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES LEADING FRANCHISES WITH RECOGNISED EXPERTISE: BANKS & INSURANCE EUROPE (18 countries) #2 largest bank by presence in CEE* • Czech Republic: #3 banking Group • Romania: #2 bank • Poland: ca. 500 branches Germany: leading positions in Fi
Slide 44: Leading Franchises: Financial Services to Corporates
APPENDICES - INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES LEADING FRANCHISES WITH RECOGNISED EXPERTISE: FINANCIAL SERVICES TO CORPORATES ALD: a leader in multi-brand, car renting and fleet management ALD SGEF SGEF: unique expertise in Equipment Finance COUNTRIES 37 35 RANKING EUROPE #2 #1 Ext
Slide 45: Reshaped Business Models Attuned to a Post-Crisis Environment
APPENDICES - INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES RESHAPED BUSINESS MODELS ATTUNED TO A POST-CRISIS ENVIRONMENT INTERNATIONAL RETAIL: LOAN TO DEPOSIT RATIO (%) 144% Funding: a successful move towards a more self- funded model • International Retail Banking: +EUR 10bn additional deposi
Slide 46: Our Diversified Model Can Deliver Growth
APPENDICES - INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES OUR DIVERSIFIED MODEL CAN DELIVER GROWTH 2013-2016 PROJECTED INCREASE Fuelling businesses to accompany growth IN NBI AND BASEL 3 RWA (%) NBI CAGR • RWA : +5% average annual growth in 2013-2016 12% MATURE MARKETS EMERGING MARKETS • Furt
Slide 47: Loan and Deposit Outstandings Breakdown
APPENDICES – INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES LOAN AND DEPOSIT OUTSTANDINGS BREAKDOWN Loan outstandings breakdown Deposit outstandings breakdown (in EUR bn bn)) (in EUR bn bn)) Change Change JUNE 14 vs. JUNE 13 JUNE 14 vs. JUNE 13 O.w. EQUIPMENT 15.0 -0.3%* FINANCE(1) -11.8%* 14.8
Slide 48: Half Year Results
APPENDICES – GLOBAL BANKING AND INVESTOR SOLUTIONS HALF YEAR RESULTS Securities Services and Asset & Wealth Total Global Banking and Investor Global Markets (1) Financing and Advisory Brokerage Management Solutions H1 13 H1 14 Change H1 13 H1 14 Change H1 13 H1 14 Change H1 13 H1 14 Change H1 13 H1
Slide 49: Solid Recurrent Revenue Base from Client-Oriented Activities
APPENDICES - GLOBAL BANKING AND INVESTOR SOLUTIONS SOLID RECURRENT REVENUE BASE FROM CLIENT-ORIENTED ACTIVITIES MIX GEARED TOWARDS ACTIVITIES RESULTING IN A REMARKABLY RESILIENT WITH STABLE REVENUES REVENUE PROFILE(2) (in EUR bn) Asset inventory Stable internal 8.6 8.6 8.6 TOTAL based activities flo
Slide 50: Geographical Footprint Adapted to Our Clients' Needs
APPENDICES - GLOBAL BANKING AND INVESTOR SOLUTIONS GEOGRAPHICAL FOOTPRINT ADAPTED TO OUR CLIENTS’ NEEDS ASIA PACIFIC WESTERN EUROPE 2,000 staff in key markets Fully fledged platform (Hong Kong, Japan, Korea, Singapore) and EUR 1.2bn revenues West. Franchises in Structured Products, Flow Europe Equit
Slide 51: Global Markets: Business Mix Key to Profitability
APPENDICES - GLOBAL BANKING AND INVESTOR SOLUTIONS GLOBAL MARKETS: BUSINESS MIX KEY TO PROFITABILITY INDUSTRY(1) SG CIB HIGH SG CIB Growth(2) Profitability Mix MIX MARKET SHARES(1) 100% Prime Services + 5% 5% Right-sized cash equity 8% 8% EMEA OTC Derivatives Flow Equity Cash Equity - 13%90% Leaders
Slide 52: Financing & Advisory: Geared Towards Specific Areas of Expertise
APPENDICES - GLOBAL BANKING AND INVESTOR SOLUTIONS FINANCING & ADVISORY: GEARED TOWARDS SPECIFIC AREAS OF EXPERTISE FINANCING & ADVISORY 2013 NBI (EUR 1.8bn) Leading worldwide franchise in a growing market Energy & Strong sectorial expertise 29% Natural on all market segments Resources Fully integra
Slide 53: 2016 Financial Targets by Business Line
APPENDICES - GLOBAL BANKING AND INVESTOR SOLUTIONS 2016 FINANCIAL TARGETS 2016 FINANCIAL TARGETS BY BUSINESS LINE NBI CAGR(1) Cost/ Income Post-tax ROE (in EUR bn) Global Markets Global Markets 4.9 +1% ca. 65% 16% > & Investor Services Investor Services 1.3 +12%(2) ca. 90% ca. 13% > Financing & Advi
Slide 54: Key Figures
APPENDICES – GLOBAL BANKING AND INVESTOR SOLUTIONS KEY FIGURES Global Markets revenues Asset & Wealth Management revenues (in EUR m) (in EUR m) 620 556 578 4 7 408 676 8 6 7 FIXED INCOME, 38 47 OTHERS CURRENCIES & 48 50 COMMODITIES 52 (incl. Legacy LYXOR assets) 621 621 646 688 231 227 207 538 EQUIT
Slide 55: Key Figures
APPENDICES – GLOBAL BANKING AND INVESTOR SOLUTIONS KEY FIGURES Private Banking: Assets under management(1) Lyxor:: Assets under management(2) Lyxor (in EUR bn bn)) (in EUR bn bn)) 114 116 79 80 84 86 72 84 84 84 JUNE 13 SEPT. 13 DEC. 13 MAR. 14 JUNE 14 JUNE 13 SEPT. 13 DEC. 13 MAR. 14 JUNE 14 Securi
Slide 56: Risk-Weighted Assets
APPENDICES – RISK MANAGEMENT RISK-WEIGHTED ASSETS* (CRR/CRD 4, in EUR bn) TOTAL 91.7 97.3 95.3 109.5 103.9 104.7 135.0 126.7 132.9 17.0 17.5 17.9 353.1 345.4 350.7 OPERATIONAL 39.8 43.7 43.6 MARKET 27.7 26.4 25.4 CREDIT 28.6 28.2 28.4 5.6 4.4 4.4 0.0 6.4 6.4 3.3 0.0 0.1 25.5 0.4 0.3 24.0 0.2 26.5 28
Slide 57: GIIPS Sovereign Exposures
APPENDICES – RISK MANAGEMENT GIIPS SOVEREIGN EXPOSURES(1) Net exposures(2) (in EUR bn bn)) 30.06.2014 31.03.2014 o.w. positions in o.w. positions in o.w. positions in o.w. positions in Total Total banking book trading book banking book trading book Greece 0.0 0.0 0.0 0.0 0.0 0.0 Ireland 0.0 0.1 0.0
Slide 58: Insurance Subsidiaries' Exposures to GIIPS Sovereign Risk
APPENDICES – RISK MANAGEMENT INSURANCE SUBSIDIARIES' EXPOSURES TO GIIPS SOVEREIGN RISK Exposures in the banking book (in EUR bn) 30.06.2014 31.03.2014 Gross exposure Net exposure Gross exposure Net exposure (1) (2) (1) (2) Greece 0.0 0.0 0.0 0.0 Ireland 0.4 0.0 0.4 0.0 Italy 2.3 0.1 2.3 0.1 Portugal
Slide 59: Group Exposure to GIIPS Non Sovereign Risk
APPENDICES – RISK MANAGEMENT GROUP EXPOSURE TO GIIPS NON SOVEREIGN RISK(1) On- On-and off- off-balance sheet EAD (in EUR bn bn)) 0.3 2.2 13.9 0.7 9.4 4.9 0.1 0.3 0.1 RETAIL SECURITISATION 6.7 7.1 CORPORATES FINANCIAL INSTITUTIONS (INCL. LOCAL GOVERNMENTS) 0.6 0.3 0.5 2.4 1.4 1.6 0.2 0.2 GREECE IRELA
Slide 60: Change in Gross Book Outstandings
APPENDICES - RISK MANAGEMENT CHANGE IN GROSS BOOK OUTSTANDINGS* End of period in EUR bn 443.2 433.5 413.8 430.9 421.4 414.0 411.2 409.8 423.5 Global Banking and 129.5 121.9 Investor Solutions 105.7 121.8 115.0 122.3 111.4 109.2 108.6 International Retail Banking & Financial Services 126.4 124.2 119.
Slide 61: Doubtful Loans
APPENDICES - RISK MANAGEMENT DOUBTFUL LOANS In EUR bn 31/12/2012 31/12/2013 30/06/2014 Gross book outstandings* 417.6 416.7 429.4 Doubtful loans* 23.8 24.9 25.2 Collateral relating to doubtful loans 6.1 7.3 6.1 Provisionable commitments* 17.7 17.5 19.1 Net non performing loans ratio* 4.2% 4.2% 4.4%
Slide 62: CRR/CRD4 Prudential Capital Ratios
APPENDICES - SOCIETE GENERALE GROUP CRR/CRD4 PRUDENTIAL CAPITAL RATIOS 31 Mar.14 30 June 14 In EUR bn Shareholder equity group share 51.1 53.3 Deeply subordinated notes* (6.6) (8.7) Undated subordinated notes* (0.4) (0.4) Dividend to be paid & interest on subordinated notes (1.1) (0.7) Goodwill and
Slide 63: CRR Leverage Ratio
APPENDICES - SOCIETE GENERALE GROUP CRR LEVERAGE RATIO CRR Leverage ratio(1 (1)) In EUR bn 30 June14 Tier 1 capital 43.7 Total IFRS Balance sheet 1,323 Adjustement related to derivatives exposures (46) Adjustement related to securities financing transactions * (198) Off-balance sheet (loan and guara
Slide 64: From Consolidated Balance Sheet to CRR Leverage Exposure
APPENDICES - SOCIETE GENERALE GROUP FROM CONSOLIDATED BALANCE SHEET TO CRR LEVERAGE EXPOSURE In EUR bn (66) (153) 16 133 (132) 107 (16) DERIVATIVES REVERSE OTHER DERIVATIVES OFF BALANCE ADJUSTMENTS OTHER REPOS NETTING ADJUSTMENTS SHEET ON SECURITIES ADJUSTMENTS COMMITMENTS FINANCING 1,323 TRANSACTIO
Slide 65: Capital Requirement and MDA
APPENDICES – CAPITAL AND FUNDING CAPITAL REQUIREMENT AND MDA CRR/CRD4 Capital ratios Buffer to coupon restrictions, using the reported 10.2% Q2 14 fully-loaded CET1 ratio vs. Combined buffer requirement** 14.0% TOTAL CAPITAL RATIO 1.5% c. €17bn c. €14bn c. €11bn c. €8bn 4.825% 3.95% 3.075% 2.200% 11
Slide 66: Details on Group Funding Structure
APPENDICES - FUNDING DETAILS ON GROUP FUNDING STRUCTURE 31 DECEMBER 2013* 30 JUNE 2014 * Restated further to the coming into force of IFRS 10 and 11 as from 1st Jan. 2014 334 342 DUE TO CUSTOMERS o.w. Securities sold to customers under repurchase agreements : EUR 20 bn o.w. Securities sold to custom
Slide 67: Half Year Non Economic and Other Important Items
APPENDICES - SOCIETE GENERALE GROUP HALF YEAR NON ECONOMIC AND OTHER IMPORTANT ITEMS Net banking Operating Group net H1 14 income expenses Others Cost of risk income Revaluation of own financial liabilities* (179) (117) Corporate Centre Accounting impact of DVA* 3 2 Group Accounting impact of CVA 95
Slide 68: Quarterly Non Economic and Other Important Items
APPENDICES - SOCIETE GENERALE GROUP QUARTERLY NON ECONOMIC AND OTHER IMPORTANT ITEMS Net banking Operating Group net Q2 14 income expenses Others Cost of risk income Revaluation of own financial liabilities* (21) (14) Corporate Centre Accounting impact of DVA* (2) (1) Group Accounting impact of CVA
Slide 69: Investor Relations Team
INVESTOR RELATIONS TEAM ANTOINE LOUDENOT, STÉPHANE DEMON, MARION GENAIS, KIMON KALAMBOUSSIS, MURIEL KHAWAM, LUDOVIC WEITZ +33 (0) 1 42 14 47 72 [email protected] www.investor.socgen.com 1ST AUGUST 2014 2ND QUARTER AND 1ST HALF 2014 | P.69 RESULTS
Societe Generale — Debt Investor Presentation (September 2014) on 6ix