Societe Generale S.a. Class A · EURONEXT:GLE
Societe Generale S.a. Class A — Debt Investor Presentation (April 2012)
97 slides from Societe Generale S.a. Class A's debt investor presentation, April 2012
Slide 1: Presentation to Debt Investors - Asian Roadshow
SOCIETE GENERALE PRESENTATION TO DEBT INVESTORS Asian Roadshow FULL-YEAR AND 4TH QUARTER 2011 RESULTS APRIL 2012
Slide 2: Disclaimer
DISCLAIMER This document may contain a number of forecasts and comments relating relating to the targets and strategies of the Societe Generale Group. Group. These forecasts are based on a series of assumptions, both general general and specific, notably - unless specified otherwise - the applicatio
Slide 3: Agenda
Full Year 2011 and Fourth Quarter 2011 Results Group Funding Strategy and Ratings Focus on SG China Supplementary Data Specific Financial Information PRESENTATION TO DEBT INVESTORS - ASIAN RS - FULL-YEAR AND 4TH QUARTER 2011 RESULTS APRIL 2012 | P.3
Slide 4: 9% EBA target reached: successful transformation and resilient earnings
SOCIETE GENERALE GROUP 9% EBA TARGET REACHED: SUCCESSFUL TRANSFORMATION AND RESILIENT EARNINGS Resilient 2011 Group Net income: EUR 2.4bn financial results Q4 11 Group Net income of EUR 100m: priority to deleveraging and conservative provisioning Supporting our clients and Loans up +4.4% in French N
Slide 5: Rapid deleveraging of the Group, strong push by SG CIB
SOCIETE GENERALE GROUP RAPID DELEVERAGING OF THE GROUP, STRONG PUSH BY SG CIB Execution of SG CIB balance sheet reduction SG CIB asset reduction (in EUR bn) bn) programme well on track Q1 11 Q2 11 Q3 11 Q4 11 -1.2 -1.1 • Adjustments made to Global Markets positions -0.7 -0.8 LEGACY ASSET in Q3 11
Slide 6: EBA capital requirement fulfilled six months early
SOCIETE GENERALE GROUP EBA CAPITAL REQUIREMENT FULFILLED SIX MONTHS EARLY Group RWA (in EUR bn) bn) Strict control of RWAs throughout the year 335 349 • Driving SG CIB Basel 2 RWAs down by 13% vs. 25 Basel 2.5 2010 CORPORATE AND INVESTMENT 113 -13% 98 BANKING • Contained RWA increase in other busi
Slide 7: Reduced balance sheet and improved funding profile
SOCIETE GENERALE GROUP REDUCED BALANCE SHEET AND IMPROVED FUNDING PROFILE Funded balance sheet reduced by EUR 48bn Funded balance sheet since end-June 2011 (in EUR bn) bn) ASSETS ASSETS Sound and stronger funding profile: 684 -48 636 LIABILITIES 636 CENTRAL BANK DEPOSIT 33 SHORT TERM • Long term
Slide 8: Very low GIIPS exposure: down 60% since end-2010
SOCIETE GENERALE GROUP VERY LOW GIIPS EXPOSURE: DOWN 60% SINCE END-2010 Exposure* to sovereign risk in the banking book Exposure to GIIPS sovereigns: (in EUR bn) bn) EUR 2.7*bn in banking book at end-Jan. 2012 6.6 3.6 2.9 2.7 TOTAL • Greek government bonds: EUR 307*m at end-Jan. 0.3 2012 0.2 Mark
Slide 9: Recurrent strong income generation
SOCIETE GENERALE GROUP RECURRENT STRONG INCOME GENERATION Net Banking Income (in EUR bn) bn) 2007 2008 2009 2010 2011 21.9 21.9 21.7 26.4 25.6 GLOBAL INVESTMENT MANAGEMENT 2.3 AND SERVICES 2.5 2.2 3.5 3.2 3.4 SPECIALISED FINANCIAL 3.7 SERVICES AND INSURANCE 2.8 2.8 7.8 6.0 3.1 7.0 CORPORATE AND INVE
Slide 10: Consolidated 2011 results
SOCIETE GENERALE GROUP CONSOLIDATED 2011 RESULTS Resilient Net Banking Income in an adverse context Operating expenses include Chg Chg In EUR m 2011 Q4 11 • Restructuring costs (EUR 230m) 2011 vs 2010 Q4 vs Q4 • Systemic bank levies (EUR 84m) in France Net banking income 25,636 -3.0% -2.5%* 6,01
Slide 11: Year on year decline in cost of risk
SOCIETE GENERALE GROUP YEAR ON YEAR DECLINE IN COST OF RISK Cost of risk (in bp)* French Networks 2010 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 2011 • Year-on-year decline; inflexion point in 2011, in line 49 50 50 40 36 37 41 with macroeconomic trends FRENCH NETWORKS International Retail Banking 194 178 2
Slide 12: French Networks: steadily growing results
FRENCH NETWORKS STEADILY GROWING RESULTS Loans and deposits Continued customer development (in EUR bn) • 10.9 million customers in 2011, of which 243,000 new 163 171 individual customers 153 158 134 • Deposits up +8.7% vs. 2010 124 109 112 LOANS Strong inflows in regulated savings schemes: 141% 14
Slide 13: French Networks: priority to customer satisfaction
FRENCH NETWORKS PRIORITY TO CUSTOMER SATISFACTION Our commitment to SMEs: faster loan approvals “Vous pouvez compter sur nous” campaign, new “SME Customer Services Charter” Individual customers: closer, more reactive service Better customer • Societe Generale iPhone® / iPad® applications: 1 mill
Slide 14: International Retail Banking: sound business fundamentals
INTERNATIONAL RETAIL BANKING SOUND BUSINESS FUNDAMENTALS Robust commercial activity Loan outstandings +4.7%* 2011 vs. 2010 • Loans up 4.7%* vs. end-2010 GREECE: -24.0%* • Deposits up 3.7%* vs. end-2010 with strong inflows in ROMANIA: -1.5%* Mediterranean basin CZECH REPUBLIC: 4% +12.6%* • Dynamic
Slide 15: 2012: consolidating our growth strategy
INTERNATIONAL RETAIL BANKING 2012: CONSOLIDATING OUR GROWTH STRATEGY Central and Eastern Europe: Russia: streamlining following the lowering the cost base and merger of legal entities adapting the business • Rationalisation of regional Rosbank franchise: 2,000 headcount reductions • Improved product
Slide 16: Corporate & Investment Banking: businesses resistance despite market dislocation
CORPORATE & INVESTMENT BANKING BUSINESSES RESISTANCE IN SPITE OF MARKET DISLOCATION Global Markets SG CIB risk metrics 2007- 2011(b) • Equities: leadership positions maintained SGCIB funded resilient revenues (-4% vs. 2010) despite harsh market Market stress test balance sheet Trading VaR conditio
Slide 17: Successfully adapting to a new banking world
CORPORATE & INVESTMENT BANKING SUCCESSFULLY ADAPTING TO A NEW BANKING WORLD Refocusing on our core strengths • Leading global franchises: natural resources financing, equity derivatives, cross assets structured products N° 1 Global provider Done in 2011 • European client base in Equity Derivatives
Slide 18: Legacy asset portfolio: accelerated deleveraging and capital relief
CORPORATE & INVESTMENT BANKING LEGACY ASSET PORTFOLIO: ACCELERATED DELEVERAGING AND CAPITAL RELIEF Portfolio profile change 2011 legacy asset sales and amortisations (Net book value in EUR bn) bn) EUR 16.1bn(a) 33 17 TOTAL 5 • Accelerated disposals in H2 11 • 2011 NBI impact of EUR -116m(a) 6 Di
Slide 19: Legacy portfolio: two asset classes with differentiated profiles
CORPORATE & INVESTMENT BANKING LEGACY PORTFOLIO: TWO ASSET CLASSES WITH DIFFERENTIATED PROFILES Amortization of funded money good assets Money good assets (net book value in EUR bn) bn) • Investment grade assets 8,5 7,7 6,5 5,1 3,9 TOTAL • Under BlackRock Solutions® stressed scenario: no expected
Slide 20: Specialised Financial Services and Insurance
SPECIALISED FINANCIAL SERVICES AND INSURANCE GOOD PERFORMANCE AND OPTIMISED USE OF SCARCE RESOURCES Loan outstandings Change (in EUR bn) bn) 2011 vs. 2010 Insurance: continued growth of activity • Life: positive net inflows of EUR 408m 18.7 18.9 18.9 18.5 EQUIPMENT -3.3%* FINANCE (1) • Personal Pr
Slide 21: Global Investment Management and Services
GLOBAL INVESTMENT MANAGEMENT AND SERVICES SATISFACTORY CLIENT REVENUES IN DIFFICULT MARKET CONDITIONS Private Banking Private Banking: Assets under Management • Revenues up +9% vs. 2010 (in EUR bn) • 2011 net inflow: EUR 2.3bn • Cost reduction plan launched 84.5 84.7 75.4 66.9 Securities Service
Slide 22: Corporate Centre
SOCIETE GENERALE GROUP CORPORATE CENTRE* NBI impact of revaluation of own debt in 2011: EUR +1,177m, (vs EUR +427m in 2010) 2011 impact on costs of systemic bank levies in France and the UK: EUR -84m Corporate Centre Income Statement (in EUR m) 2011 net cost of risk, including Greek sovereign
Slide 23: Continuing the transformation of the Group in 2012
SOCIETE GENERALE GROUP CONTINUING THE TRANSFORMATION OF THE GROUP IN 2012 Developing the Group’s franchises while optimising scarce resources • Giving priority to customer satisfaction in our French Networks and maintain strong profitability • Consolidating our growth strategy in International Ret
Slide 24: Presentation to Debt Investors
PRESENTATION TO DEBT INVESTORS - ASIAN RS - FULL-YEAR AND 4TH QUARTER 2011 RESULTS APRIL 2012 | P.24
Slide 25: Agenda: Group Funding Strategy and Ratings
Full Year 2011 and Fourth Quarter 2011 Results Group Funding Strategy and Ratings Focus on SG China Supplementary Data Specific Financial Information PRESENTATION TO DEBT INVESTORS - ASIAN RS - FULL-YEAR AND 4TH QUARTER 2011 RESULTS APRIL 2012 | P.25
Slide 26: A funding structure consistent with the Group business needs
GROUP FUNDING STRATEGY AND RATINGS A FUNDING STRUCTURE CONSISTENT WITH THE GROUP BUSINESS NEEDS Funded balance sheet Medium and long-term Funding (in EUR bn) bn) Program is intended to finance commercial activity and to renew ASSETS ASSETS LIABILITIES amortising debt 684 -48 636 636 CENTRAL BANK D
Slide 27: 2012 long-term funding program
GROUP FUNDING STRATEGY AND RATINGS 2012 LONG-TERM FUNDING PROGRAM 2012 long-term funding program of EUR 10-15bn fully achievable via a diversified funding mix: • unsecured issuances • private placements both structured and vanilla • secured funding: covered bonds and CRH • securitisations Beyond
Slide 28: A 2011 long-term funding program completed in September
GROUP FUNDING STRATEGY AND RATINGS A 2011 LONG-TERM FUNDING PROGRAM COMPLETED IN SEPTEMBER The 2011 long-term funding plan completed beginning of September reached a total of EUR 28.6bn, that is EUR 2.6 bn beyond the EUR 26bn program The average features over 2011 are as follows: • average matur
Slide 29: Long-term funding program: a diversified funding mix
GROUP FUNDING STRATEGY AND RATINGS LONG-TERM FUNDING PROGRAM - A diversified funding mix The Group is carrying on with its long-term funding strategy to: • Continue in 2011 its policy of diversification both in terms of markets and products - Vanilla senior public issues executed outside the EUR m
Slide 30: Long-term funding program: a diversified investor base
GROUP FUNDING STRATEGY AND RATINGS LONG-TERM FUNDING PROGRAM - A diversified investor base Investor breakdown based on 2011 issuances By Investor Type By Geographical Zone SG Unsecured & secured vanilla issues All type of issues All type of issues Italy & Iberia 2% Japan Australia 1% Other Other Fra
Slide 31: Long-term funding program: repayment schedule
GROUP FUNDING STRATEGY AND RATINGS LONG-TERM FUNDING PROGRAM – Repayment schedule A regular repayment schedule, with more than 55% of the outstanding maturing beyond 2014 EUR bn 21.8 21.2 17.3 14.1 11.1 9.1 9.0 7.4 7.3 6.3 5.5 3.1 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Between Beyond 20
Slide 32: 2011-2012: SG covered bond funding
GROUP FUNDING STRATEGY AND RATINGS 2011-2012 : SG COVERED BOND FUNDING In 2011, the secured issuances represented 18% of the Group’s Funding program. Over the year, besides the CRH and SCF issuances, the Group increased its capacity to issue covered bonds by creating its own Société de Financement d
Slide 33: Current SG Group ratings
GROUP FUNDING STRATEGY AND RATINGS CURRENT SG GROUP RATINGS Standard & Poor's Moody's Fitch Ratings Latest rating report date 23/01/2012 16/02/2012 15/12/2011 Senior Long-term debt A A1 A+ Outlook Stable Poss. Downgrade Negative Lower Tier 2 BBB+ A2 (Poss. Downgrade) A (Watch Neg) Hybrid Tier 1 BBB-
Slide 34: Ratings: peer review
GROUP FUNDING STRATEGY AND RATINGS RATINGS: PEER REVIEW S&P Moody's Fitch Rating LT rating Outlook LT rating Outlook LT rating Outlook BNP Paribas AA- Negative Crédit Agricole Aa1 Poss.Downgrade Banco Santander AA- Watch Neg Banco Santander A+ Negative BNP Paribas Aa3 Poss.Downgrade BNP Paribas A+ S
Slide 35: Appendix: SG SCF covered bond programme
GROUP FUNDING STRATEGY AND RATINGS APPENDIX: SG SCF COVERED BOND PROGRAMME • Société Générale SCF (Société de Crédit Foncier) has been established in October 2007. The inaugural issuance took place in May 2008 Program Term • EUR 15bn EMTN program • Rated AAA (S&P) / Aaa (Moody’s) • Listing: Euronext
Slide 36: Appendix: SG SFH covered bond programme
GROUP FUNDING STRATEGY AND RATINGS APPENDIX: SG SFH COVERED BOND PROGRAMME • Société Générale SFH (Société de Financement de l’Habitat) was created in April 2011 • The inaugural issuance took place in May 2011 Program • EUR 25bn EMTN Program • Listing: Euronext Paris At SG SFH level: • RMBS issued b
Slide 37: Appendix: FCT Red & Black home loans guaranteed
GROUP FUNDING STRATEGY AND RATINGS APPENDIX: FCT RED & BLACK HOME LOANS GUARANTEED Loan type 100% prime French residential loans guaranteed by Crédit Logement (AA-/Aa2) Pool size EUR 23.97bn Number of loans 328,287 (average EUR 73,000 balance remaining per loan) Current WA LTV 57.22% WA Seasoning 51
Slide 38: Presentation to Debt Investors
PRESENTATION TO DEBT INVESTORS - ASIAN RS - FULL-YEAR AND 4TH QUARTER 2011 RESULTS APRIL 2012 | P.38
Slide 39: Agenda: Focus on SG China
Full Year 2011 and Fourth Quarter 2011 Results Group Funding Strategy and Ratings Focus on SG China Supplementary Data Specific Financial Information PRESENTATION TO DEBT INVESTORS - ASIAN RS - FULL-YEAR AND 4TH QUARTER 2011 RESULTS APRIL 2012 | P.39
Slide 40: Societe Generale in China: 30 years of commitment
SOCIETE GENERALE IN CHINA 30 YEARS OF COMMITMENT Opened first China representative office in Beijing in 1981. Focused on Corporate and Investment Banking (CIB) businesses First foreign bank working with Sinosure, strong partnership with major Chinese banks such as China Exim, Bank of China, Indu
Slide 41: The development of a universal bank
SOCIETE GENERALE IN CHINA THE DEVELOPMENT OF A UNIVERSAL BANK Local incorporation since 2008 Core Business Established Societe Generale (China) Co, Ltd. in 2008. By capitalizing on the local incorporated Corporate and Investment Banking status and full banking license, SG started to Commercial a
Slide 42: Societe Generale Leasing and Renting (SGLR)
SOCIETE GENERALE IN CHINA SOCIETE GENERALE LEASING AND RENTING (SGLR) Established in Shanghai, China in Nov. 2005, 100% owned subsidiary of SG Equipment Finance (SGEF) Consistent growth since 2007 MOFCOM regulated foreign invested leasing company (non bank business) Providing lease finance s
Slide 43: Societe Generale Leasing and Renting (SGLR)
SOCIETE GENERALE IN CHINA SOCIETE GENERALE LEASING AND RENTING (SGLR) Established a funding panel of 8 Chinese banks to fund the business development of SGLR. This panel has committed in excess of RMB 1.5 billion of funding to SGLR since 2010 Supporting 40 global vendor partners of the SGEF Grou
Slide 44: Presentation to Debt Investors
PRESENTATION TO DEBT INVESTORS - ASIAN RS - FULL-YEAR AND 4TH QUARTER 2011 RESULTS APRIL 2012 | P.44
Slide 45: Agenda: Supplementary Data
Full Year 2011 and Fourth Quarter 2011 Results Group Funding Strategy and Ratings Focus on SG China Supplementary Data Specific Financial Information PRESENTATION TO DEBT INVESTORS - ASIAN RS - FULL-YEAR AND 4TH QUARTER 2011 RESULTS APRIL 2012 | P.45
Slide 46: Table of contents
TABLE OF CONTENTS Societe Generale Group International Retail Banking Annual income statement by core business 47 Results - International Retail Banking 66 Quarterly income statement by core business 48 Annual results of International Retail Banking Amendment to IAS 39: by geographic zone 67 reclass
Slide 47: Annual income statement by core business
ANNUAL INCOME STATEMENT BY CORE BUSINESS Specialised Global Corporate & Financial Investment French International Investment Services & Management In EUR m Networks Retail Banking Banking Insurance and Services Corporate Centre Group 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2
Slide 48: Quarterly income statement by core business
QUARTERLY INCOME STATEMENT BY CORE BUSINESS Specialised Global Corporate & Financial Investment French International Investment Services & Management Corporate In EUR m Networks Retail Banking Banking Insurance and Services Centre Group Q4 10 Q4 11 Q4 10 Q4 11 Q4 10 Q4 11 Q4 10 Q4 11 Q4 10 Q4 11 Q4
Slide 49: Amendment to IAS 39: reclassifications of non-derivative financial assets
SUPPLEMENT - SOCIETE GENERALE GROUP AMENDMENT TO IAS 39: RECLASSIFICATIONS OF NON-DERIVATIVE FINANCIAL ASSETS No asset reclassifications since 1 October 2008 Change in fair value over the period (value that would have been booked if the instruments had not been reclassified) In EUR bn 2010 Q1 11 Q
Slide 50: Group cost/income ratio
SUPPLEMENT - SOCIETE GENERALE GROUP GROUP COST/INCOME RATIO(a): 69.6% (vs. 63.7% in 2010) Change Operating expenses (in EUR bn) Q4 11 vs. Q4 10 Group 4.4 4.4 (0.0% *) 4.0 0.5 0.5 Global Investment Management and Services 0.6 0.5 0.5 (-5.3% *) Specialised Financial Service 0.5 and Insurance 1.3 1.3 (
Slide 51: Change in gross book outstandings
SUPPLEMENT - SOCIETE GENERALE GROUP CHANGE IN GROSS BOOK OUTSTANDINGS* End of period in EUR bn 452.7 428.9 427.6 425.6 437.1 432.9 445.0 447.9 450.5 435.2 Specialised Financial Services 415.7 419.5 51.7 and Insurance 52.2 51.8 52.1 47.1 48.4 51.3 51.7 52.5 48.7 49.5 50.1 23.4 26.7 27.0 28.4 Global I
Slide 52: Group non economic and non recurring items
SUPPLEMENT - SOCIETE GENERALE GROUP GROUP NON ECONOMIC AND NON RECURRING ITEMS Net banking Operating Group net 2011 income expenses Others Cost of risk income Revaluation of own financial 1,177 772 Corporate Centre liabilities CDS MtM 66 43 Corporate Centre Greek sovereign exposure (890) (622) Corpo
Slide 53: Basel 2.5 (CRD3) risk-weighted assets at end-December 2011
SUPPLEMENT - APPLICATION OF THE BASEL 2.5 (CRD3) REFORM BASEL 2.5 (CRD3) RISK-WEIGHTED ASSETS AT END-DECEMBER 2011 (in EUR bn) Credit Market Operational Total French Networks 83.7 0.1 2.9 86.6 International Retail Banking 70.3 0.1 3.7 74.1 Corporate & Investment 66.4 31.5 24.8 122.7 Banking o/w CRD3
Slide 54: Calculation of ROE capital and the Tier 1 ratio
SUPPLEMENT – APPLICATION OF THE BASEL 2 REFORM CALCULATION OF ROE CAPITAL AND THE TIER 1 RATIO Data at end-December 2011 (in EUR bn) Accounting adjustment Prudential Adjustment +0.7 OCI Deeply- 47.1 subordinated Undated sub. notes notes +5.5 -5.5 -0.9 Deeply- Basel 2 41.4 deductions Goodwill subordi
Slide 55: Breakdown of SG Group commitments by sector
SUPPLEMENT – RISK MANAGEMENT BREAKDOWN OF SG GROUP COMMITMENTS BY SECTOR AT 31 DECEMBER 2011 Transport & logistics Telecoms 8.4% 3.1% Finance & insurance EAD Corporate: 19.0% Personnel & EUR 302bn* domestic services Real Estate 0.1% 7.6% Collective services Public administration 7.1% 0.1% Business s
Slide 56: Breakdown of SG Group commitments by geography
SUPPLEMENT – RISK MANAGEMENT BREAKDOWN OF SG GROUP COMMITMENTS BY SECTOR AT 31 DECEMBER 2011 On- and off-balance sheet EAD* On-balance sheet EAD* All customers included: EUR 743bn All customers included: EUR 559bn Latin America Latin America and and Africa and Caribbean 2% Africa and Caribbean M idd
Slide 57: GIIPS sovereign exposures
SUPPLEMENT – RISK MANAGEMENT GIIPS SOVEREIGN EXPOSURES Net exposures(1) (in EUR bn) bn) 31.12.2011 o.w. positions in o.w. positions in Total (2) banking book trading book (3) Greece 0.4 0.3 0.1 Ireland 0.4 0.3 0.1 Italy 2.3 1.4 0.9 Portugal 0.4 0.2 0.2 Spain 1.0 0.7 0.3 (1) Methodology defined by th
Slide 58: Insurance subsidiaries' exposures to sovereign risk
SUPPLEMENT – RISK MANAGEMENT INSURANCE SUBSIDIARIES' EXPOSURES TO SOVEREIGN RISK ON COUNTRIES UNDERGOING A EUROPEAN UNION RESTRUCTURING PLAN Exposures (in EUR bn) bn) 31.12.2011 Gross exposure (1) Net exposure (2) Greece 0.0 0.0 Ireland 0.5 0.0 Portugal 0.2 0.0 (1) Gross exposure (net book value) (2
Slide 59: Change in trading VaR
SUPPLEMENT – RISK MANAGEMENT CHANGE IN TRADING VAR* Quarterly average of 1-day, 99% Trading VaR (in EUR m) 45 42 45 41 34 30 27 27 30 Trading VaR 19 22 22 17 Credit 35 16 26 21 16 31 19 35 32 31 22 18 17 Fixed income 17 11 29 31 27 20 14 22 25 25 Equity 23 27 32 14 8 12 13 13 20 Forex -33 -41 -51 -5
Slide 60: Doubtful loans
SUPPLEMENT – RISK MANAGEMENT DOUBTFUL LOANS* (INCLUDING CREDIT INSTITUTIONS) 31/12/2010 30/06/2011 31/12/2011 Customer loans in EUR bn * 426.0 434.0 425.5 Doubtful loans in EUR bn * 23.1 23.5 24.1 Collateral relating to loans written down in EUR bn * 4.1 3.6 4.7 Provisionable commitments in EUR bn *
Slide 61: Results - French Networks
SUPPLEMENT – FRENCH NETWORKS RESULTS - FRENCH NETWORKS Chg Chg In EUR m 2010 2011 Q4 10 Q4 11 2011 vs 2010 Q4 vs Q4 Net banking income 7,791 8,165 +4.8% +1.7%(a) 2,055 2,054 0.0% -0.2%(b) Operating expenses (5,058) (5,248) +3.8% (1,378) (1,358) -1.5% Gross operating income 2,733 2,917 +6.7% +1.6%(a)
Slide 62: French Networks: change in net banking income
SUPPLEMENT – FRENCH NETWORKS CHANGE IN NET BANKING INCOME Commissions: +0.3%(a) vs. 2010 Interest margin: +2.7%(b) vs. 2010 • Financial commissions: -0.8%(a) vs. 2010 • Average deposit outstandings: +8.7% vs. 2010 • Service commissions: +0.6%(a) vs. 2010 • Average loan outstandings: +4.4% vs. 20
Slide 63: Customer deposits and financial savings
SUPPLEMENT – FRENCH NETWORKS CUSTOMER DEPOSITS AND FINANCIAL SAVINGS Change Q4 11 vs Q4 10 Average outstandings 245.2 249.2 250.2 245.0 238.6 -2.7% in EUR bn 78.3 79.8 80.4 79.8 LIFE INSURANCE* 79.1 +1.0% Financial savings MUTUAL FUNDS -6.2% OTHERS 33.7 33.1 31.6 27.6 26.2 -22.4% (SG redeem. SN) 2.2
Slide 64: Loan outstandings
SUPPLEMENT – FRENCH NETWORKS LOAN OUSTANDINGS Average outstandings Change in EUR bn Q4 11 vs Q4 10 INDIVIDUALS 169.3 171.1 173.6 +3.8% o.w.: 167.3 168.3 - Housing +5.8% 79.2 81.0 81.9 83.1 83.8 - Consumer credit & overdrafts 9.7 9.8 9.9 9.9 9.9 +2.1% BUSINESS 76.6 78.3 +2.2% CUSTOMERS* 76.1 76.2 77.
Slide 65: Gross interest margin
SUPPLEMENT – FRENCH NETWORKS GROSS INTEREST MARGIN* The interest margin is an aggregate indicator based on three elements: • Net interest income on loans • Structure effect, measured by the ratio of deposits to loans as a % • Margin on resources: Interest margin Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11
Slide 66: Results - International Retail Banking
SUPPLEMENT – INTERNATIONAL RETAIL BANKING RESULTS - INTERNATIONAL RETAIL BANKING Chg Chg In EUR m 2010 2011 Q4 10 Q4 11 2011 vs 2010 Q4 vs Q4 Net banking income 4,930 5,017 +1.8% +0.1%* 1,257 1,339 +6.5% +3.4%* Operating expenses (2,769) (2,988) +7.9% +6.8%* (717) (765) +6.7% +4.9%* Gross operating
Slide 67: Annual results of International Retail Banking by geographic zone
SUPPLEMENT – INTERNATIONAL RETAIL BANKING ANNUAL RESULTS OF INTERNATIONAL RETAIL BANKING BY GEOGRAPHIC ZONE Sub-sah. Czech Mediterranean Africa, French Romania Russia Other CEE Republic Basin territories and Others In EUR m 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 Net banking inco
Slide 68: Quarterly results of International Retail Banking by geographic zone
SUPPLEMENT – INTERNATIONAL RETAIL BANKING QUARTERLY RESULTS OF INTERNATIONAL RETAIL BANKING BY GEOGRAPHIC ZONE Sub-sah. Czech Mediterranean Africa, French Romania Russia Other CEE Republic Basin territories and Others In EUR m Q4 10 Q4 11 Q4 10 Q4 11 Q4 10 Q4 11 Q4 10 Q4 11 Q4 10 Q4 11 Q4 10 Q4 11 N
Slide 69: Indicators of major subsidiaries
SUPPLEMENT – INTERNATIONAL RETAIL BANKING INDICATORS OF MAJOR SUBSIDIARIES Loan to Group share of Ownership Credit Loans*(1) Deposits*(1) deposit ratio the Market percentage RWAs*(1) (as % )(1) capitalistion Czech Republic (KB) 60.7% 11,849 16,813 21,713 77.4% 3,014 Romania (BRD) 60.2% 9,423 7,465 7
Slide 70: Results - Corporate and Investment Banking
SUPPLEMENT – CORPORATE AND INVESTMENT BANKING RESULTS – CORPORATE AND INVESTMENT BANKING Chg Chg In EUR m 2010 2011 Q4 10 Q4 11 2011 vs 2010 Q4 vs Q4 Net banking income 7,836 5,980 -23.7% -22.5%* 2,007 655 -67.4% -66.9%* Operating expenses (4,706) (4,748) +0.9% +3.6%* (1,321) (1,299) -1.7% +0.6%* Gr
Slide 71: CIB annual income statement
SUPPLEMENT – CORPORATE AND INVESTMENT BANKING ANNUAL INCOME STATEMENT Total Corporate and Core activities Legacy assets Investment Banking 2010 2011 Change 2010 2011 Change 2010 2011 Change Net banking income 7,765 6,456 -17% 71 (476) NM 7,836 5,980 -24% -23%* o.w. Financing & Advisory 2,744 2,315 -
Slide 72: CIB quarterly income statement
SUPPLEMENT – CORPORATE AND INVESTMENT BANKING QUARTERLY INCOME STATEMENT Total Corporate and Core activities Legacy assets Investment Banking Q4 10 Q4 11 Change Q4 10 Q4 11 Change Q4 10 Q4 11 Change Net banking income 1,894 1,179 -38% 113 (524) NM 2,007 655 -67% -67%* o.w. Financing & Advisory 757 4
Slide 73: Legacy assets - summary of exposures as of 31 December 2011
SUPPLEMENT – CORPORATE AND INVESTMENT BANKING LEGACY ASSETS – SUMMARY OF EXPOSURES AS OF 31 DECEMBER 2011 o.w. monoline and in EUR bn Banking Book Trading Book Total CDPC exposure Net exposure Net exposure Net exposure US residential market related assets - RMBS (1) 0.8 0.0 0.8 0.0 - CDOs of RMBS 1.
Slide 74: Legacy assets - income statement
SUPPLEMENT – CORPORATE AND INVESTMENT BANKING LEGACY ASSETS – INCOME STATEMENT In EUR m Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 2010 2011 NBI of legacy assets - 23 71 - 90 113 42 43 - 37 - 524 71 - 476 o.w. Losses and writedowns of exotic credit derivatives - 163 - 91 - 177 - 65 19 - 10 52 -
Slide 75: Legacy assets - external valuation of banking book positions
ANNEXE - CORPORATE AND INVESTMENT BANKING LEGACY ASSETS – EXTERNAL VALUATION* OF OUR BANKING BOOK POSITIONS External valuation of positions EUR +1.4bn higher than their book value EUR -0.6bn OCI impact US RMBS CDOs: only asset class for already included in SG which external credit valuation is less
Slide 76: League table - Investment Banking
SUPPLEMENT – CORPORATE AND INVESTMENT BANKING LEAGUE TABLE – INVESTMENT BANKING DEBT CAPITAL MARKETS 2011 2010 2009 League Tables IFR All-International Euro-denominated Bonds #7 #5 #4 All corporate bonds in Euro #3 #3 #3 All sovereign issues in Euro #5 #2 #3 All financial bonds in Euro #7 #6 #7 All
Slide 77: League table - Global Markets (1/2)
SUPPLEMENT – CORPORATE AND INVESTMENT BANKING LEAGUE TABLE – GLOBAL MARKETS (1/2) EQUITY DERIVATIVES 2011 2010 2009 Rankings Risk Magazine - Institutional Rankings Global provider in Equity Derivatives #1 #1 #1 Risk Magazine - Interdealer Rankings Global provider in Equity Derivatives #1 #1 #1 Globa
Slide 78: League table - Global Markets (2/2)
SUPPLEMENT – CORPORATE AND INVESTMENT BANKING LEAGUE TABLE – GLOBAL MARKETS (2/2) EXCHANGE TRADED FUNDS (LYXOR) 2011 2010 2009 Rankings Risk Magazine - Institutional Rankings ETF Provider in Europe #1 #1 ETF Provider in Asia #1 #1 Awards Structured Product Best ETF Provider in Europe LYXOR ALTERNATI
Slide 79: League table - Global Finance
SUPPLEMENT – CORPORATE AND INVESTMENT BANKING LEAGUE TABLE – GLOBAL FINANCE PROJECT & ASSET FINANCE 2011 2010 2009 Rankings Euroweek - Best arrangers of project finance loans #1 IFR - EMEA Project Finance Bookrunner #1 #1 - Awards Project Finance International Advisor of the year SG Bank of the Year
Slide 80: Results - Specialised Financial Services and Insurance
SUPPLEMENT – SPECIALISED FINANCIAL SERVICES AND INSURANCE RESULTS - SPECIALISED FINANCIAL SERVICES AND INSURANCE Chg Chg In EUR m 2010 2011 Q4 10 Q4 11 2011 vs 2010 Q4 vs Q4 Net banking income 3,539 3,443 -2.7% +3.2%* 876 849 -3.1% +1.5%* o.w. Specialised Financial Services 3,027 2,843 -6.1% +0.7%*
Slide 81: Breakdown of NBI by business line and geographic zone
SUPPLEMENT – SPECIALISED FINANCIAL SERVICES AND INSURANCE BREAKDOWN OF NBI BY BUSINESS LINE AND BY GEOGRAPHIC ZONE NBI 2011 by business line NBI 2011 by geographic zone Vehicle Leasing & Fleet Management Insurance France 17% Equipment finance 17% Other 34% 19% 41% 47% 24% Germany Consumer Finance an
Slide 82: Results - Global Investment Management and Services
SUPPLEMENT – GLOBAL INVESTMENT MANAGEMENT AND SERVICES RESULTS GLOBAL INVESTMENT MANAGEMENT AND SERVICES Chg Chg In EUR m 2010 2011 Q4 10 Q4 11 2011 vs 2010 Q4 vs Q4 Net banking income 2,270 2,169 -4.4% -4.2%* 606 500 -17.5% -18.2%* Operating expenses (2,002) (1,967) -1.7% -1.5%* (521) (498) -4.4% -
Slide 83: Global Investment Management and Services annual income statement
SUPPLEMENT – GLOBAL INVESTMENT MANAGEMENT AND SERVICES ANNUAL INCOME STATEMENT Total Global Investment Private Banking Asset Management SG SS, Brokers Management and Services 2010 2011 Change 2010 2011 Change 2010 2011 Change 2010 2011 Change Net banking income 699 762 +6%* 477 344 -25%* 1,094 1,063
Slide 84: Global Investment Management and Services quarterly income statement
SUPPLEMENT – GLOBAL INVESTMENT MANAGEMENT AND SERVICES QUARTERLY INCOME STATEMENT Total Global Investment Private Banking Asset Management SG SS, Brokers Management and Services Q4 10 Q4 11 Change Q4 10 Q4 11 Change Q4 10 Q4 11 Change Q4 10 Q4 11 Change Net banking income 171 158 -10%* 150 102 -32%*
Slide 85: Assets under management by product type excluding Lyxor
SUPPLEMENT – ASSET MANAGEMENT ASSETS UNDER MANAGEMENT BY PRODUCT TYPE EXCLUDING LYXOR EUR 91.0bn at 31 December 2011 87.0 84.9 82.7 84.4 91.0 Alternative (1) 14.6 13.6 13.0 12.5 14.5 Diversified (2) 3.4 7.2 19.4 21.4 22.1 17.2 Equities 18.9 Bonds 57.1 47.1 48.1 52.6 45.8 Regular money market 1.5 0.0
Slide 86: Determination of number of shares used to calculate EPS
TECHNICAL SUPPLEMENT DETERMINATION OF NUMBER OF SHARES USED TO CALCULATE EPS Average number of shares (thousands) 2009 2010 2011 Existing shares 646,234 742,917 763,065 Deductions Shares allocated to cover stock options awarded to staff and restricted 11,444 11,703 9,595 shares awarded Other treasur
Slide 87: Determination of number of shares used to calculate NAPS
TECHNICAL SUPPLEMENT DETERMINATION OF NUMBER OF SHARES USED TO CALCULATE NAPS Number of shares at end of period (thousands) 2009 2010 2011 Existing shares 739,806 746,422 776,080 Deductions Shares allocated to cover stock options awarded to staff and restricted 11,976 12,283 9,003 shares awarded Oth
Slide 88: Environment
TECHNICAL SUPPLEMENT ENVIRONMENT Q4 10 Q3 11 Q4 11 Interest rates (quarterly average) % 10-year French government bond 3.03 2.97 3.19 3-month euribor 1.02 1.56 1.49 Indices (end of period) CAC 40 3,805 2,982 3,160 EuroStoxx 50 2,793 2,180 2,317 Nasdaq 2,653 2,415 2,605 Currencies (quarterly average)
Slide 89: Agenda: Specific Financial Information
Full Year 2011 and Fourth Quarter 2011 Results Group Funding Strategy and Ratings Focus on SG China Supplementary Data Specific Financial Information PRESENTATION TO DEBT INVESTORS - ASIAN RS - FULL-YEAR AND 4TH QUARTER 2011 RESULTS APRIL 2012 | P.89
Slide 90: Table of contents
TABLE OF CONTENTS • Unhedged CDOs exposed to the US residential mortgage sector • Protection purchased to hedge exposures to CDOs and other assets • Exposure to CMBS • Exposure to US residential mortgage market: residential loans and RMBS • Exposure to residential mortgage markets in Spain and the U
Slide 91: Unhedged CDOs exposed to the US residential mortgage sector
UNHEDGED CDOs EXPOSED TO THE US RESIDENTIAL MORTGAGE SECTOR CDO Super senior & senior tranches In EUR bn L&R Portfolio Trading Portfolio Gross exposure at June 30, 2011 (1) 5.15 2.45 Gross exposure at December 31, 2011 (1) (2) 5.55 1.73 Nature of underlying high grade / mezzanine (4) high grade / me
Slide 92: Protection purchased to hedge exposures to CDOs and other assets
PROTECTION PURCHASED TO HEDGE EXPOSURES TO CDOs AND OTHER ASSETS From monoline insurers Jun. 30, 2011 Dec. 31, 2011 Fair value of Fair value of Gross notional Gross notional Fair value of protection protection amount of amount of hedged before value before value protection hedged instruments adjus
Slide 93: Exposure to CMBS
EXPOSURE TO CMBS(1) Jun. 30, 2011 December 31, 2011 H2 11 Gross exposure (3) Net exposure Net exposure % AA & A Net Banking % net %AAA (4) Cost of Risk OCI (2) (2) Amount (4) Income (5) In EUR bn exposure 'Held for Trading' portfolio 0.20 0.11 0.24 47% 23% 10% - 0.03 - - 'Available For Sale' portfol
Slide 94: Exposure to US residential mortgage market: residential loans and RMBS
EXPOSURE TO US RESIDENTIAL MORTGAGE MARKET: RESIDENTIAL LOANS AND RMBS Societe Generale has no residential mortgage loan origination activity in the US US RMBS(1) Jun. 30, 2011 December 31, 2011 H2 11 Gross exposure (3) Net exposure Net exposure % AA & A Net Banking % net %AAA (4) Cost of Risk O
Slide 95: Exposure to residential mortgage markets in Spain and the UK
EXPOSURE TO RESIDENTIAL MORTGAGE MARKETS IN SPAIN AND THE UK Societe Generale has no origination activity in Spain or the UK RMBS in Spain(1) Jun. 30, 2011 December 31, 2011 H2 11 Gross exposure (3) Net exposure Net exposure % AA & A Net Banking % net %AAA (4) Cost of Risk OCI (2) (2) Amount (4)
Slide 96: Exotic credit derivatives
EXOTIC CREDIT DERIVATIVES Business portfolio linked to client-driven activity Net exposure as 5-yr risk equivalent • Securities indexed on ABS credit portfolios marketed (in EUR m) to investors In EUR m June 30, 2011 Decem ber 31, 2011 • Hedging of credit protection generated in SG’s accounts by t
Slide 97: The Investor Relations team
THE INVESTOR RELATIONS TEAM HANS VAN BEECK, STÉPHANE DEMON, CLAIRE LANGEVIN, LUDOVIC WEITZ +33 (0) 1 42 14 47 72 [email protected] www.investor.socgen.com PRESENTATION TO DEBT INVESTORS -C3 ASIAN | RESULTATS RS - FULL-YEAR DU 1ER AND TRIMESTRE 4TH QUARTER 2011 2011 RESULTS APRIL 5 MAI 20
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