Societe Generale S.a. Class A · EURONEXT:GLE
Societe Generale S.a. Class A — FY2006 Earnings Presentation
74 slides from Societe Generale S.a. Class A's earnings presentation, Feb 14, 2007
Slide 1: Full-Year and Fourth Quarter 2006 Results
14 / 02 / 2007 FULL-YEAR AND FOURTH QUARTER 2006 RESULTS
Slide 2: Disclaimer
Disclaimer The following presentation may contain a number of forward-looking statements relating to Société Générale’s targets and strategy. These forecasts are based on a series of assumptions, both general and specific. As a result, there is a risk that these projections will not be met. Readers
Slide 3: Agenda
Group results Results of core businesses Retail Banking & Financial Services Global Investment Management & Services Corporate & Investment Banking Conclusion Supplements FULL-YEAR AND FOURTH QUARTER 2006 RESULTS 14 / 02 / 2007 3
Slide 4: 2006: another year of profitable growth for the Group
SOCIETE GENERALE GROUP 2006: another year of profitable growth for the Group Strong organic growth in all core businesses NBI: +15.7%* vs. 2005 496 net branch openings in French Networks and Retail Banking outside France (+10.8% at constant structure) Risk-weighted assets: +11.8%* vs. Dec. 2005
Slide 5: Sharp rise in 2006 results
SOCIETE GENERALE GROUP Sharp rise in 2006 results In EUR m FY 05 FY 06 Change 06/05 Net banking income 19,166 22,417 +17.0% +15.7%* Strong organic growth in NBI: Operating expenses (12,156) (13,703) +12.7% +11.8%* +15.7%* vs. 2005 Gross operating income 7,010 8,714 +24.3% +22.2% * Net allocation t
Slide 6: Strong long-term development at the Group
SOCIETE GENERALE GROUP Strong long-term development at the Group Change since end-1999 over 1 year 22.5 million individual clients in Retail Banking and Financial Services x 2.4 +17.2% 10.5 million individual customers in France x 1.3 +4.0% 12.0 million individual customers outside France** x 9.1
Slide 7: Dynamic management of a growth-oriented business portfolio
SOCIETE GENERALE GROUP Dynamic management of a growth-oriented business portfolio NBI of the core businesses (in EUR bn) + 10.0% /yr Marked expansion of all growth Corporate & drivers (Retail Banking outside 1999 2006 Investment France, Financial Services and Banking French Global Investment Manag
Slide 8: Cost/Income ratio down by 11.5 pt since 1999
SOCIETE GENERALE GROUP Cost/Income ratio down by 11.5 pt since 1999 Cost/income ratio 72.6% 73.0% 72.2% 70.0% Continued improvement of operational 68.4%*67.5% efficiency 63.4% 61.1% Positive effect of strong growth of the businesses ª C\I ratio at a very low level 1999 2000 2001 2002 2003 2004 2
Slide 9: Low level of risk provisioning
SOCIETE GENERALE GROUP Low level of risk provisioning Structural improvement of risk profile Allocation of capital between businesses Average cost of risk (in bp) Change in the loan book at the retail networks Hedging of the corporate loan book through credit 79 derivatives and sale of loans in th
Slide 10: Q4 06: Gross operating profit up vs. Q4 05
SOCIETE GENERALE GROUP Q4 06: Gross operating profit up by 13.3%* vs. Q4 05 In EUR m Q4 05 Q4 06 Change Q4/Q4 Net banking income 5,087 5,671 +11.5% +12.1%* Operating expenses (3,258) (3,589) +10.2% +11.5%* NBI: +12.1%* vs. Q4 05 Gross operating income 1,829 2,082 +13.8% +13.3% * NBI of businesses:
Slide 11: Q4 06: strong top-line growth in businesses
SOCIETE GENERALE GROUP Q4 06: strong top-line growth in businesses Change NBI (in EUR bn) Q4 06/Q4 05 5.7 +12.1%* 5.1 Marked expansion of growth drivers Corporate & 1.7 Investment Banking (Retail Banking outside France, Financial 4.3 (+26.8% *) Services and GIMS) 1.4 1.2 GIMS 0.9 (+15.8% *) Grow
Slide 12: Cost/income ratio: 63.3%
SOCIETE GENERALE GROUP Cost/income ratio: 63.3% Change Operating expenses (in EUR bn) Q4 06/Q4 05 French Networks: C/I ratio in line with the full year at 66.8% excl. PEL/CEL 3.6 +11.5%* (vs. 64.6% in Q4 05) 3.3 Corporate & 2.9 0.9 Investment Banking (+21.7% *) Improved cost efficiencies across
Slide 13: Cost of risk in Q4 06: 38 bp
SOCIETE GENERALE GROUP Cost of risk in Q4 06: 38 bp Net allocation to provisions (in EUR m) 140 162 152 134 231 Retail Banking and Financial Services French Networks: 34 bp (vs. 33 bp in Q4 05) 88 Financial Services Retail Banking outside France: 65 bp (vs. 83 bp in Q4 05) 57 60 66 60 Retail Banki
Slide 14: Agenda
Group results Results of core businesses Retail Banking and Financial Services Global Investment Management & Services Corporate & Investment Banking Conclusion Supplements FULL-YEAR AND FOURTH QUARTER 2006 RESULTS 14 / 02 / 2007 14
Slide 15: Retail Banking and Financial Services
RETAIL BANKING AND FINANCIAL SERVICES 2006 2006 NBI: NBI: +12.8% +12.8% vs. vs. 2005; 2005; +9.9% +9.9% like -for-like like-for-like French Networks 2006 30% 2006 net net income income:: ROE: 23.4% EUR EUR 2,336m, 2,336m, +23.1% +23.1% vs. vs. 2005 2005 2006 2006 ROE ROE after after tax tax:: Retail
Slide 16: 1999-2006: sustained and durable growth
FRENCH NETWORKS 1999-2006: sustained and durable growth Gains in market share (as a %) Household 10.6 sight deposit Commercial performance 10.1 outstanding Rapid growth in customer base over 7 years: +1,054,000 personal current accounts 6.3 Life insurance +124,000 business accounts 5.5 Regular inc
Slide 17: Development of activity
FRENCH NETWORKS Development of activity Individual customers: Individual customers steady franchise growth Change since Rapid growth in customer base: 2001 +171,000 personal current accounts in 2006 200 +97% Outstanding (+2.9% vs. 2005) of which +29,000 190 housing young persons accounts (+3.6% vs
Slide 18: Increase in revenues
FRENCH NETWORKS Increase in revenues NBI: +4.5% vs. 2005 excl. PEL/CEL 5,203 5,414 5,645 5,870 6,189 6,701 NBI in EUR m NBI: +8.3% vs. 2005 after reversal of EUR 183m of PEL/CEL provisions, of which EUR 29m in Q4 06 Financial 821 commissions (vs. allocation of EUR 46m in 2005) 748 621 Fee & Comm
Slide 19: Very strong financial performance
FRENCH NETWORKS Very strong financial performance Full year 2006 Operating expenses: +3.4% vs. 2005 Change Change ª C/I ratio: 66.8% In EUR m FY 05 FY 06 06/05 Q4 06 Q4/Q4 excl. PEL/CEL (-0.8 pt vs. 2005) Net banking income 6,189 6,701 +8.3% 1,694 +2.6% ª GOI: +7.0% vs. 2005 excl. PEL/CEL (4,212)
Slide 20: Robust growth ahead
FRENCH NETWORKS Robust growth ahead Strong potential of the retail customer base Over-representation of the highest socio-professional categories and young people in the customer base High market share in the wealthiest and/or most promising regions Synergies between the markets for business custo
Slide 21: A major player in high-potential regions
RETAIL BANKING OUTSIDE FRANCE A major player in high-potential regions NBI: EUR 2,786m* (+13.6%** vs. 2005) Leading privately-owned bank in Mediterranean Egypt basin No.4 in Morocco Central and NBI: EUR 705m (+14.0%** vs. 2005) Eastern Europe Total assets: EUR 16.9bn No.2 in Romania, 25% Branches: 6
Slide 22: Dynamic growth momentum
RETAIL BANKING OUTSIDE FRANCE Dynamic growth momentum Number of individual customers** Sub-Saharan Robust sales performances (in millions) 7.8 Africa & French 1.0 +766,000 individual customers overseas at constant structure vs. end-2005 (+13.2%) 5.8 1.6 territories 5.4 Mediterranean 4.7 1.0 Marked
Slide 23: Sharp increase in results
RETAIL BANKING OUTSIDE FRANCE Sharp increase in results Full year 2006 NBI: +13.6%* vs. 2005 Operating expenses: +11.6%* vs. 2005 (+5.9%* vs. 2005 excl. investments in organic growth) Change Change In EUR m FY 05 FY 06 Q4 06 ª GOI: +16.6%* vs. 2005 06/05 Q4/Q4 Net banking income 2,345 2,786 +18.8%
Slide 24: Business finance and services: strong positions
FINANCIAL SERVICES Business finance and services: strong positions Operational vehicle leasing & fleet NBI in Business Finance and Services management (in EUR bn) 1.0 ALD Automotive, No.2 in Europe, present in 35 countries 0.9 Fleet under management: 680,000 vehicles 0.8 (+10.0% at constant struct
Slide 25: Consumer credit: a rapidly developing business
FINANCIAL SERVICES Consumer credit: a rapidly developing business A significant player present in 20 countries NBI Consumer credit Strong positions in Western Europe (France, Italy, Germany) as well as in Central and Eastern Europe (Poland and Russia) (in EUR bn) 1.0 Numerous initiatives in 2006
Slide 26: Solid growth in results
FINANCIAL SERVICES Solid growth in results Full year 2006 Specialised Financing • NBI: +7.8%* vs. 2005 • Operating expenses : +8.2%* vs. 2005 Change Change In EUR m FY 05 FY 06 Q4 06 • ROE after tax: 17.0% 06/05 Q4/Q4 Life Insurance Net banking income 2,127 2,536 +19.2% +10.7%* 690 +12.6%* • New s
Slide 27: Global Investment Management and Services
GLOBAL INVESTMENT MANAGEMENT AND SERVICES 2006 2006 NBI NBI:: +23.6% +23.6% vs. vs. 2005 2005 ;; +19.6% +19.6% like -for-like like-for-like 2006 2006 net net income: income: EUR EUR 577m 577m (+25.4% (+25.4% vs. vs. 2005) 2005) 2006 2006 net net inflows: inflows: 14% of Group EUR EUR 41.9bn 41.9bn N
Slide 28: Asset Management: a recognised offering and performance
GLOBAL INVESTMENT MANAGEMENT AND SERVICES Asset Management: a recognised offering and performance A recognised and innovative offering Investment management at TCW rewarded by Morningstar: 2006 US Fixed Income Manager of the year TCW - global leader in Cash CDOs SGAM AI - world No.2 in synthetic C
Slide 29: Private Banking: strengthening its positions
GLOBAL INVESTMENT MANAGEMENT AND SERVICES Private Banking: strengthening its positions SG Private banking in the top 15 players worldwide Best private bank in France and Luxembourg Best worldwide private bank for structured Regularly rewarded expertise products Best private bank in France and Lu
Slide 30: Very high net inflows
GLOBAL INVESTMENT MANAGEMENT AND SERVICES Very high net inflows Assets under management (in EUR bn) Asset management 2006 net new money: EUR 34.2bn (vs. EUR 27.4bn in 2005) +34.2 +6.8 -13.7 • 10% of AuM on annual basis o.w. Q4 06: • Mainly fixed-income and alternative products +7.1 +7.0 -5.1 Q4 06
Slide 31: Dynamic development of Securities Services
GLOBAL INVESTMENT MANAGEMENT AND SERVICES Dynamic development of Securities Services Securities Services for Institutional Investors and Assets under custody (EUR bn) Fund Administration 2,262 No. 3 custodian in Europe** 593 2S Banca Assets under custody: EUR 2,262bn (+17.7%* vs. end-2005) 1,669 S
Slide 32: Continued improvement in full year results
GLOBAL INVESTMENT MANAGEMENT AND SERVICES Continued improvement in full year results Full year 2006 Change Very strong organic growth: In EUR m FY 05 FY 06 Change 06/05 Q4 06 Q4/Q4 NBI +19.6%* vs. 2005 Net banking income 2,584 3,195 +23.6% +19.6%* 884 +15.8%* C/I ratio under control despite o.w. A
Slide 33: Corporate and Investment Banking
CORPORATE AND INVESTMENT BANKING 31% Of Group NBI Corporate Banking & 2006 2006 NBI: NBI: Fixed Income +22.8% +22.8% vs. vs. 2005; 2005; +25.5% +25.5% like -for-like like-for-like 16% Equity & Advisory 2006 2006 net net income: income: EUR EUR 2,340m 2,340m (+27.1% (+27.1% vs. vs. 2005) 2005) 15% 20
Slide 34: 2006: strong growth in a favourable environment
CORPORATE AND INVESTMENT BANKING 2006: strong growth in a favourable environment Revenue breakdown at CIB Sharp increase in revenues: +25.0%* vs. 2005 (in EUR bn) at constant structure 7.0 Cowen Strong rise in client revenues, confirming the value of the 5.7 franchise: +22.3% vs. 2005 +22.3%* Clie
Slide 35: Ongoing development of the franchise
CORPORATE AND INVESTMENT BANKING Ongoing development of the franchise Client revenues (in EUR bn) Excellent client-driven performance 4.5 Sustained increase in client revenues from 2003 to 2006: +16.8%* per year CAGR Equity & 2.8 18.8%* 1.7 Advisory Equity Derivatives: global leadership confirme
Slide 36: Excellent Q4 06 for all business lines
CORPORATE AND INVESTMENT BANKING Excellent Q4 06 for all business lines Sustained growth in client revenues +24.2%* vs. Q4 05 at constant structure Quarterly NBI (in EUR m) 71% of total revenues Corporate Banking and Fixed Income: Average % of CIB NBI in a record quarter, especially in client-dr
Slide 37: Record results
CORPORATE AND INVESTMENT BANKING Record results Full year 2006 GOI +31.2%* vs. 2005 with a Change record Q1 06 In EUR m FY 05 FY 06 Change 06/05 Q4 06 Q4/Q4 Net banking income 5,697 6,998 +22.8% +25.5%* 1,688 +26.8%* Fourth quarter 2006 o.w. Equity & Advisory 2,554 3,349 +31.1% +37.8%* 691 +66.9
Slide 38: Step Up 2010: roll-out of the profitable growth strategy
CORPORATE AND INVESTMENT BANKING Step Up 2010: roll-out of the profitable growth strategy SG CIB well positioned in its three areas of excellence: Derivatives, Euro capital markets, Structured Finance No.3 bank in the euro zone with NBI of EUR 7.0bn in 2006 Revenue growth 2004-2006: +23.2%* per ye
Slide 39: Agenda
Group results Results of core businesses Retail Banking and Financial Services Global Investment Management & Services Corporate & Investment Banking Conclusion Supplements FULL-YEAR AND FOURTH QUARTER 2006 RESULTS 14 / 02 / 2007 39
Slide 40: Profitable growth in all core businesses
SOCIETE GENERALE GROUP Profitable growth in all core businesses Net income (in EUR m) 5,221 ROE +14.9% /yr after tax 2,340 Corporate & 44% Investment 48% ROE Banking after tax 577 GIMS 1,980 40% 544 Financial 16% 16% 697 471 Services 15% 16% 207 Retail Banking 36% 24% 163 outside France 76 21% 1,321
Slide 41: Balanced use of capital
SOCIETE GENERALE GROUP Balanced use of capital Full year 2006 (in EUR bn) 9,2 9,2 Strong cash flow generation Others comfortably covering: 0,5 0,8 Others Increase in Tier 1 capital ratio (from Very dynamic organic growth (RWA 7.6% at end-05 to 7.8% at end-06) 0,7 Hybrid capital 0,3 +11.8%* vs. end
Slide 42: Long-term profitable growth
SOCIETE GENERALE GROUP Long-term profitable growth Gross operating income EPS* Dividend* (in EUR bn) (in EUR) (in EUR) 5.20** 8.7 12.33 4.47 10.70 7.0 7.98 3.28 5.3 5.1 6.74 6.03 2.48 4.1 4.0 3.8 5.31 2.09 2.09 2.09 4.87 3.1 1.54 3.38 1999 2000 2001 2002 2003 2004 2005 2006 1999 2000 2001 2002 2003
Slide 43: Supplementary Data
14 / 02 / 2007 SUPPLEMENTARY DATA
Slide 44: Change in treatment of minority interests and undated subordinated notes
SUPPLEMENT - SOCIETE GENERALE GROUP Change in treatment of minority interests of controlled subsidiaries and reclassification of undated subordinated notes as shareholders’ equity From a ‘goodwill’ to a ‘shareholders’ equity’ approach Where an additional stake is taken in one of our controlled sub
Slide 45: Change in treatment of minority interests and undated subordinated notes
SUPPLEMENT - SOCIETE GENERALE GROUP Change in treatment of minority interests of controlled subsidiaries and reclassification of undated subordinated notes as shareholders’ equity Restatement of Group shareholders’ equity since January 1st 2005 In EUR m 01.01.05 30.06.05 31.12.05 30.06.06 Group sh
Slide 46: Full-year income statement by core business
SUPPLEMENT - SOCIETE GENERALE GROUP Full-year income statement by core business In EUR m Global Investment Corporate & Retail Banking & Management & Investment Corporate Centre Group Financial Services Services Banking FY 06 FY 05 FY 06 FY 05 FY 06 FY 05 FY 06 FY 05 FY 06 FY 05 Net banking income 12
Slide 47: Quarterly income statement by core business
SUPPLEMENT - SOCIETE GENERALE GROUP Quarterly income statement by core business In EUR m Global Investment Corporate & Retail Banking & Management & Investment Corporate Centre Group Financial Services Services Banking Q4 06 Q4 05 Q4 06 Q4 05 Q4 06 Q4 05 Q4 06 Q4 05 Q4 06 Q4 05 Net banking income 3,
Slide 48: Full-year income statement
SUPPLEMENT - RETAIL BANKING & FINANCIAL SERVICES Full-year income statement In EUR m French Networks Retail Banking Financial Services Total Retail Banking and outside France Financial Services FY 06 FY 05 Change FY 06 FY 05 Change FY 06 FY 05 Change FY 06 FY 05 Change Net banking income 6,701 6,189
Slide 49: Quarterly income statement
SUPPLEMENT - RETAIL BANKING & FINANCIAL SERVICES Quarterly income statement In EUR m Retail Banking Total Retail Banking and French Networks Financial Services outside France Financial Services Q4 06 Q4 05 Change Q4 06 Q4 05 Change Q4 06 Q4 05 Change Q4 06 Q4 05 Change Net banking income 1,694 1,651
Slide 50: Change in risk-weighted assets
SUPPLEMENT - RETAIL BANKING & FINANCIAL SERVICES Change in risk-weighted assets Average credit risk equivalent in EUR bn 168.2 172.9 162.4 156.3 150.4 143.8 33.7 36.2 135.4 139.2 30.3 Retail Banking 133.3 28.0 outside France 26.5 24.5 22.3 23.4 21.9 34.8 36.1 37.6 33.6 Financial Services 30.5 32.1 2
Slide 51: Customer deposits and savings
SUPPLEMENT – FRENCH NETWORKS Customer deposits and savings Change Average outstanding Q4 06/Q4 05 In EUR bn 197.6 182.6 188.3 191.6 193.8 +8.2% 56.9 58.3 60.2 +15.4% LIFE INSURANCE* 52.2 55.2 Managed savings SHARE ACCOUNTS +12.2% MUTUAL FUNDS 48.3 48.1 49.6 +9.3% 45.3 46.9 OTHER -3.6% 2.2 2.2 2.1 2.
Slide 52: Customer loans
SUPPLEMENT – FRENCH NETWORKS Customer loans Average outstanding Change in EUR bn Q4 06/Q4 05 107.7 111.9 115.7 119.6 122.8 +14.0% INDIVIDUALS o.w.: 56.1 +16.1% 52.0 54.4 - Housing 50.3 48.4 - Consumer credit 9.5 9.5 +1.7% 9.4 9.4 & overdrafts 9.3 BUSINESS 54.5 +14.7% 47.5 49.6 51.6 53.1 CUSTOMERS* B
Slide 53: Productivity of the French Networks
SUPPLEMENT – FRENCH NETWORKS Productivity of the French Networks Change since 1997 +57% Bank cards (No.) 160 +53% Savings account (No.) 145 130 +29% Individual customer current a/c (No.) 115 100 0% Global headcount* 100 = 1997 85 -21% Administrative staff 70 1997 1998 1999 2000 2001 2002 2003 2004 2
Slide 54: Interest margins of the French Networks
SUPPLEMENT – FRENCH NETWORKS Interest margins of the French Networks The interest margin is an aggregate indicator dependent on 5 elements: Overall level of client assets Interest earned on interest-earning assets Interest paid on interest-bearing liabilities As a % Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q
Slide 55: Central & Eastern Europe and Mediterranean Basin
SUPPLEMENT – RETAIL BANKING OUTSIDE FRANCE Central & Eastern Europe and Mediterranean Basin Data at end- end-December 2006 CROATIA SERBIA CZECH REPUBLIC RUSSIA GEORGIA SG Splitska Banka (2006) SG Yugoslav Bank (2001) Komercni Banka (2001) SG Vostok (2003) (2007) Balance sheet (EURm) 3,543 Balance sh
Slide 56: Specialised Financing: a major European player
SUPPLEMENT – FINANCIAL SERVICES Specialised Financing1: a major European player with diversified and growing businesses Breakdown of 2006 NBI(1) by Breakdown of 2006 NBI(1) by activity geographical region Business Finance & Services E.U. 60% (excl. France) Operational Vehicle Leasing & Fleet Managem
Slide 57: Change in risk-weighted assets
SUPPLEMENT – FINANCIAL SERVICES Change in risk-weighted assets Average credit risk equivalent in EUR bn 33.8 35.2 36.6 31.2 32.7 6.9 Operational Vehicle Leasing & 6.6 Fleet Management 6.3 6.0 5.5 14.1 14.6 Consumer Credit 12.8 13.4 12.2 13.2 13.6 13.9 14.3 14.7 Equipment Finance IT Asset Leasing & M
Slide 58: Full-year income statement
SUPPLEMENT - GLOBAL INVESTMENT MANAGEMENT & SERVICES Full-year income statement En M EUR Asset Management Private Banking SG SS & Online Savings Total GIMS FY 06 FY 05 Change FY 06 FY 05 Change FY 06 FY 05 Change FY 06 FY 05 Change Net banking income 1,281 1,152 +12%* 658 540 +22%* 1,256 892 +28%* 3
Slide 59: Quarterly income statement
SUPPLEMENT - GLOBAL INVESTMENT MANAGEMENT & SERVICES Quarterly income statement In EUR m Asset Management Private Banking SG SS & Online Savings Total GIMS Q4 06 Q4 05 Change Q4 06 Q4 05 Change Q4 06 Q4 05 Change Q4 06 Q4 05 Change Net banking income 348 338 +7%* 174 149 +18%* 362 247 +26%* 884 734
Slide 60: Breakdown of assets under management by type of product
SUPPLEMENT – ASSET MANAGEMENT Breakdown of assets under management by type of product EUR 354bn at December 31, 2006 Dec 06 Dec 05 326.7 338.8 333.9 345.0 354.0 Alternative 14% 55.1 60.1 Alternative (1) 46.0 51.2 53.9 17% Investment Investment (2) 52.6 54.7 55.9 49.1 53.1 Diversified Equities & 41%
Slide 61: Breakdown of assets under management by client segment
SUPPLEMENT – ASSET MANAGEMENT Breakdown of assets under management by client segment EUR 354bn at 31 December, 2006 326.7 338.8 333.9 345.0 354.0 14% Third-party 14% 14% 14% 15% distribution 18% 46% Retail French 17% 17% 17% 17% Networks 15% 14% Life 15% 15% Insurance 15% 4% 5% 4% 4% 5% Asia 27% 26%
Slide 62: Full-year income statement
SUPPLEMENT - CORPORATE & INVESTMENT BANKING Full-year income statement Corporate Banking & Total Corporate & Investment In EUR m Equity & Advisory Fixed Income Banking FY 06 FY 05 Change FY 06 FY 05 Change FY 06 FY 05 Change Net banking income 3,349 2,554 +31% +38% * 3,649 3,143 +16% +16% * 6,998 5,
Slide 63: Quarterly income statement
SUPPLEMENT - CORPORATE & INVESTMENT BANKING Quarterly income statement Corporate Banking & Total Corporate & Investment Equity & Advisory In EUR m Fixed Income Banking Q4 06 Q4 05 Change Q4 06 Q4 05 Change Q4 06 Q4 05 Change Net banking income 691 477 +45% +67% * 997 941 +6% +9% * 1,688 1,418 +19% +
Slide 64: Change in risk-weighted assets
SUPPLEMENT - CORPORATE & INVESTMENT BANKING Change in risk-weighted assets Change over 12 months Credit risk equivalent in EUR bn Change over like-for-like 12 months 82.0 +6.2% +10.5% 80.3 79.7 81.9 70.3 75.3 77.3 62.4 60.4 59.0 61.6 60.7 -23.6% 57.0 Commercial banking +13.3% Corporate Banking & Fix
Slide 65: League table rankings
SUPPLEMENT - CORPORATE & INVESTMENT BANKING League table rankings Euro capital markets All markets Best Debt House in France (Euromoney – July 2006) Bonds No. 5 bookrunner of euro bond issues (IFR – December 2006) No. 1 bookrunner of corporate euro bond issues in France (IFR – December 2006) No. 1
Slide 66: League table rankings
SUPPLEMENT - CORPORATE & INVESTMENT BANKING League table rankings Derivatives Equity Derivatives Equity Derivatives House of the Year for the fourth year in a row (The Banker - October 2006) Best Equity Derivatives Provider in all regions: Europe, Asia and North America (Global Finance - September
Slide 67: Corporate Centre
SUPPLEMENT - SOCIETE GENERALE GROUP Corporate Centre* GOI in line with 2005 In EUR m Net income from other assets: no FY 06 FY 05 significant disposals in 2006 Gross operating income 70 73 Net income from other in 2005, disposal of BSGA (Argentina) and of assets 3 152 the Group’s stake in UAB Im
Slide 68: Sectoral diversification of risks at 31/12/2006
SUPPLEMENT – RISK MANAGEMENT Sectoral diversification of risks at 31/12/2006 Healthcare, social Business services Collective services services 6% 5% Corporate commitments: 2% Personal & dom estic Media Oil & gas EUR 319bn* 3% 4% services 1% Telecom s Metals, m inerals 3% 4% Transport & logistics 6%
Slide 69: Geographical breakdown of commitments at 31/12/2006
SUPPLEMENT - RISK MANAGEMENT Geographical breakdown of commitments at 31/12/2006 On- and off-balance sheet* On-balance sheet* Corporates + Individuals: EUR 411bn Corporates + Individuals: EUR 279bn Japan/ North South Japan/ North South Asia Pacific Australia America America Asia Pacific Australia Am
Slide 70: Trading VaR
SUPPLEMENT - RISK MANAGEMENT Trading VaR* Quarterly average of 1-day, 99% Trading VaR (in EUR m) 31,7 Trading VaR 27,2 26,0 23,6 24,4 25,1 21,4 19,8 20,3 21,8 17,6 16,2 15,2 16,3 Credit 16,3 15,7 16,3 11,8 14,5 10,7 12,3 12,6 14,6 12,8 12,7 11,6 15,6 Fixed Income 18,4 19,2 18,8 17,0 20,3 16,2 15,5 1
Slide 71: Provisioning of doubtful loans
SUPPLEMENT - RISK MANAGEMENT Provisioning of doubtful loans 31/12/2005 31/12/2006 Customer loans (in EUR bn) 245 279 Doubtful loans (in EUR bn) 10.7 10.6 Doubtful loans/customer loans 4.4% 3.8% Provisions (in EUR bn)* 7.0 6.7 Overall coverage ratio for doubtful loans 65% 63% * Excluding: - EUR 948m
Slide 72: Determination of number of shares used to calculate EPS and book value per share
TECHNICAL SUPPLEMENT Determination of number of shares used to calculate EPS and book value per share Average number of shares (thousands) 2004 2005 2006 Existing shares 441,157 437,836 443,065 Deductions Shares allocated to cover stock options awarded to staff and restricted 12,693* 16,456 11,939 s
Slide 73: Economic and financial environment
TECHNICAL SUPPLEMENT Economic and financial environment Q4 05 Q3 06 Q4 06 Interest rates (quarterly average) (%) 10-year French government bond 3.39 3.89 3.79 3-month Euribor 2.35 3.22 3.59 Indices (end of period) CAC 40 4,715 5,250 5,542 Euro Stoxx 50 3,579 3,899 4,120 Nasdaq 2,205 2,258 2,415 Curr
Slide 74: Investor Relations
14 / 02 / 2007 Investor Relations Didier VALET, Patrick SOMMELET, Sayuri AOKI, Stéphane MARTY, Pascale MASSOUD-AYOUB Tel.: +33 (0)1 42 14 47 72 E-mail: [email protected] - Internet: www.ir.socgen.com