Societe Generale S.a. Class A · EURONEXT:GLE
Societe Generale S.a. Class A — FY2018 Earnings Presentation
80 slides from Societe Generale S.a. Class A's earnings presentation, Feb 7, 2019
Slide 1: Societe Generale Group Results 4th quarter and full year 2018
SOCIETE GENERALE GROUP RESULTS 4th quarter and full year 2018 | 07.02.2019
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: Transform to Grow, where do we stand?
INTRODUCTION « TRANSFORM TO GROW » WHERE DO WE ADAPTING OUR EXECUTION STAND ? Most of KEY REVENUE INITIATIVES DELIVERING, Factoring in NEW ECONOMIC ENVIRONMENT despite CHALLENGING AREAS GLOBAL BANKING AND INVESTOR SOLUTIONS: EUR 1.1 bn EFFICIENCY PLAN ON TRACK ADJUSTING GLOBAL MARKETS BUSINESS AND R
Slide 4: Q4 Highlights
1 Q4 18 HIGHLIGHTS
Slide 5: Q4 Group Performance
Q4 18 GROUP PERFORMANCE INSURANCE AND INTERNATIONAL GLOBAL BANKING AND CORPORATE FRENCH RETAIL BANKING FINANCIAL RETAIL BANKING INVESTOR SOLUTIONS CENTRE SERVICES Revenues Revenues Revenues Revenues EUR -291 m -5.5%, excl. PEL/CEL +9.8%* +2.2%* -6.9% Q4 18 vs. Q4 17 Q4 18 vs. Q4 17 Q4 18 vs. Q4 17 Q
Slide 6: French Retail Banking Results
GOOD COMMERCIAL ACTIVITY FRENCH RETAIL BANKING Boursorama ~1.7m clients (+33% vs. Q4 17) Stable home loan production vs. Q4 17 RESULTS Consumer credit production +17% vs. Q4 17 Bancassurance inflow +119m in Q4 17 In EUR m Q4 18 Q4 17 Change 2018 2017 Change Private Banking AuM at EUR 61 bn Net banki
Slide 7: International Retail Banking and Financial Services Results
INTERNATIONAL RETAIL BANKING VERY DYNAMIC AND FINANCIAL SERVICES COMMERCIAL ACTIVITY RESULTS Solid loans outstanding increase with comprehensive contribution of Europe (+7%*), Russia (+6%*) and Africa (+6%*) In EUR m Q4 18 Q4 17 Change 2018 2017 Change Good momentum in Insurance and Financial Net ba
Slide 8: Global Banking and Investor Solutions Results
GLOBAL BANKING AND INVESTOR STRONG GROWTH IN SOLUTIONS RESULTS FINANCING AND ADVISORY Revenues up +19% vs. Q4 17, +7% vs. 2017 In EUR m Q4 18 Q4 17 Change 2018 2017 Change WEAK GLOBAL MARKETS IN Net banking income 2,041 2,193 -6.9% -7.6%* 8,846 9,173 -3.6% -2.1%* Operating expenses (1,779) (1,743) +
Slide 9: Corporate Centre
CORPORATE CENTRE In EUR m Q4 18 Q4 17 2018 2017 GROSS OPERATING INCOME Net banking income (187) 22 182 (1,147) 2018 underlying gross operating income (excluding Net banking income (1) (187) (71) 182 (1,094) Euroclear revaluation): EUR -288 m Operating expenses (104) (285) (535) (374) Gross operating
Slide 10: Balance Sheet and Funding Structure
BALANCE SHEET AND FUNDING STRUCTURE CET1(1) at 11.5% _Q4 18: change in fully-loaded CET1(1) ratio (in bp) Total capital ratio at 16.7% +37bp -10bp 11.5% +23bp -34bp TLAC(3) ratio: 22.9% of RWA Already meeting 2019 (19.5%) and Market 2022 requirements (21.5%) +14bp -8bp Risk Hybrid coupons -20bp Alre
Slide 11: Group Results
GROUP RESULTS REVENUES(1) EUR 25.2bn, +0.6% vs. 2017 In EUR m Q4 18 Q4 17 Change 2018 2017 Change Net banking income 5,927 6,323 -6.3% -5.8%* 25,205 23,954 +5.2% +6.4%* OPERATING EXPENSES(1) Underlying net banking income(1) 5,927 6,228 -4.8% -4.4%* 25,205 25,062 +0.6% +1.7%* EUR 17.6bn, +2.0% vs. 20
Slide 12: 2018 Highlights
2 2018 HIGHLIGHTS
Slide 13: Executing Our Transform to Grow Strategy: Performance trends across businesses
EXECUTING OUR TRANSFORM TO GROW STRATEGY Performance trends across businesses FRENCH RETAIL INTERNATIONAL INSURANCE AND GLOBAL BANKING AND BANKING RETAIL BANKING FINANCIAL SERVICES TO INVESTOR SOLUTIONS CORPORATES Boursorama Europe Car Fleet Management Financing & Advisory and Leasing Wealthy and Ma
Slide 14: Executing Our Strategy: Efficiency plan on track
EXECUTING OUR TRANSFORM TO GROW STRATEGY Efficiency plan on track 2017-2020 2017-2020 GROUP EFFICIENCY INVESTMENTS GROUP RECURRING SAVINGS _Investments (in EUR bn) Service model _Savings (in EUR bn) 0.4 1.5 Processes 0.4 0.4 1.1 Resource location 0.7 0.3 Technology Real estate 0.4 Inc. 2017 French R
Slide 15: Executing Our Strategy: Cost of risk at 21bp
EXECUTING OUR TRANSFORM TO GROW STRATEGY Cost of risk at 21bp, at the low end of the guidance _Cost of risk(1) (in bp) 2017 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 2018 38 30 29 30 26 NON-PERFORMING LOANS FRENCH RETAIL 20 25 BANKING RATIO DEC 14 DEC 15 DEC 16 DEC 17 DEC 18 INTERNATIONAL 34 37 33 30 29 28 23 R
Slide 16: Executing Our Strategy: Delivering our refocusing program
EXECUTING OUR TRANSFORM TO GROW STRATEGY Delivering our refocusing program REFOCUSING PROGRAM ~5% OF RWA (50-60bp impact from disposals on CET1) CAPITAL ALLOCATION PRINCIPLES ~ +37bp DISPOSALS ANNOUNCED o.w. ~11 bp already closed VALUE ADDED BUSINESS Net income impact: EUR ~-125 m(1) LEADERSHIP POSI
Slide 17: Adapting Our Execution
3 ADAPTING OUR EXECUTION
Slide 18: Factor in New Interest Rate Assumptions
FACTOR IN NEW INTEREST RATE ASSUMPTIONS UNCERTAIN ENVIRONMENT UPDATED RATE ASSUMPTIONS Eurozone _Euribor 3m GEOPOLITICAL % of Group deposits UNCERTAINTIES LIKELY TO 1.0 STAY FOR SOME TIME 0.4 0.3 -0.2 SLOWER ECONOMIC 2019 2020 GROWTH IN 2020 _OAT 10y 1.7 1.8 1.6 LOWER INTEREST RATE 1.5 ASSUMPTIONS I
Slide 19: Adapt the Strategy of Global Markets
ADAPT THE STRATEGY OF GLOBAL MARKETS 1. Refocus Fixed Income and Currencies franchise and review of less profitable activities Further accelerate selectivity in client portfolio 2. Maintain our leadership position in Equity Derivatives: EMC integration, 3. development of solutions for asset manageme
Slide 20: New Cost Reduction Plan in Global Banking and Investor Solutions
NEW COST REDUCTION PLAN IN GLOBAL BANKING AND INVESTOR SOLUTIONS _GLOBAL BANKING AND INVESTOR SOLUTIONS OPERATING EXPENSES (in EUR bn) Cost GTPS 7.3 EMC Reduction Euribor/RMBS 7.2 Exceptional Items Cost reduction plan 6.9 Refocusing of activities ca. 6.8 Productivity measures across the board Simpli
Slide 21: Further Implement Our Strategy in French Retail Banking
FURTHER IMPLEMENT OUR STRATEGY IN FRENCH RETAIL BANKING LAUNCH OF Fees generation supported by our revenue initiatives 1. INITIATIVES French banking industry commitment to impact revenues by EUR ca. -70m in 2019 2. TRANSFORM On track on our transformation plan towards a phygital model STRENGTHEN 3.
Slide 22: Deliver in International Retail Banking and Financial Services
DELIVER IN INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES REALISE Successful growth initiatives across the board: revenues CAGR16-18 1. GROWTH POTENTIAL Europe +4%, Russia +10%, Africa and others +8%, Insurance +9%, ALD +7% MAINTAIN Deliver positive jaw effect 2. OPERATIONAL EFFICIENCY Strong p
Slide 23: Outlook 2020
OUTLOOK 2020 GROUP ROTE(1) 9.0%-10.0% French retail banking RONE 11.5%-12.5% International Retail Banking and Financial Services RONE 17.0%-18.0% Global Banking and Investor Solutions RONE 11.5%-12.5% CET 1 12% DIVIDEND PER SHARE 50% PAYOUT RATIO FLOOR AT EUR 2.2 PER SHARE (1) Excluding exceptional
Slide 24: Comfort Our Capital Trajectory
COMFORT OUR CAPITAL TRAJECTORY 1. ORGANIC RWA ~+2% CAGR 18-20 vs +3% initial target GROWTH -50bp Capital allocation focusing on higher return businesses 2. GLOBAL Reduction of RWA allocated to global markets +25bp MARKETS RWAs ADDITIONAL Originate to Distribute 3. RWA Securitization +10/+20bp OPTIMI
Slide 25: Comfortably Reach 12% CET1 in 2020
COMFORTABLY REACH 12% CET1 IN 2020 ca.200bp -100bp 80/90bp -10bp -5bp -30bp/-50bp 5/10bp 12.7% Earnings -50bp 10/20bp 12.3% 25bp 12.0% 11.2% 11.1% 2018(1) Earnings Dividend Organic Global RWA Disposals EMC(2) IFRS 16 TRIM Employee 2020 net of RWA Markets Optimisation and Share AT1 Growth RWA other S
Slide 26: Committed to Shareholder Return
COMMITTED TO SHAREHOLDER RETURN _TNAV PER SHARE (EUR) _UNDERLYING EARNINGS PER SHARE (EUR) _DIVIDEND PER SHARE (EUR) 55.6 55.8 53.9 54.4 5.03 5.00 4.51 4.60 4.04 (1) 49.5 2.20 2.20 2.20 2.00 1.20 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2018 Dividend proposed by the
Slide 27: 2020 Strategic Priorities
2020 STRATEGIC PRIORITIES GROW TRANSFORM Delivering our key Transform our French retail revenues initiatives relationship model Adapt the strategy of Global Markets ENHANCE FOSTER DELIVER RESPONSIBILITY SHAREHOLDER ON COSTS Further deploy Culture & Conduct program VALUE Efficiency program on track A
Slide 28: Supplement: Detailed business performance
4 SUPPLEMENT Detailed business performance
Slide 29: Developing Business Initiatives in French Retail Banking
DEVELOPING BUSINESS INITIATIVES IN FRENCH RETAIL BANKING PRODUCTION Medium-term corporate loans +21% vs. Q4 17 (+12% vs 12M 2017) DEVELOP OUR TARGET CLIENT BASE LEVERAGE ON OUR INITIATIVES Home loans +0.3% vs Q4 17 (-15% vs. 12M 2017) +3% +17% # wealthy and mass affluent clients Consumer Credit prod
Slide 30: Solid Operating Leverage Across Regions in International Retail Banking
SOLID OPERATING LEVERAGE ACROSS REGIONS IN INTERNATIONAL RETAIL BANKING EUROPE RUSSIA(2) AFRICA AND OTHER _Revenues (EUR m) _Operating Expenses _Revenues (EUR m) _Operating Expenses _Revenues (EURm) _Operating Expenses (EUR m) (EUR m) (EUR m) +11%* -5%* +10%* 842 +6%* -1%* 764 +4%* 442 417 397 434 2
Slide 31: Solid Profitability in Insurance and Financial Services
SOLID PROFITABILITY IN INSURANCE AND FINANCIAL SERVICES SUSTAINED REVENUES GROWTH IN INSURANCE 32 MEANINGFUL ORGANIC GROWTH IN FINANCIAL SERVICES _Life Insurance Outstandings (EURbn) _Protection Premiums (EURm) _Total Margins vs. average Total Fleet (last 4-quarters) 1,600.0 1,280.0 +1%* 114 115 1,5
Slide 32: Market Environment Impacting Revenues in Global Markets
MARKET ENVIRONMENT IMPACTING REVENUES IN GLOBAL MARKETS EQUITIES REVENUES –16% VS. Q4 17 GLOBAL MARKETS REVENUES: Lower commercial activity –21% VS. Q4 17 Structured products performance and hedging costs affected by global equity market conditions _Global Markets Revenues (in EURm) Sustained growth
Slide 33: Strong Revenue Growth in Financing and Advisory
STRONG REVENUE GROWTH IN FINANCING AND ADVISORY HIGHEST QUARTERLY REVENUES Sustained activity on Asset Finance with a strong level of origination and a high level of fees FINANCING & ADVISORY REVENUES: +19% VS. Q4 17 Good performance on Natural Resources notably in Energy _Net Banking Income (in EUR
Slide 34: At the Forefront of Positive Transformations
AT THE FOREFRONT OF POSITIVE TRANSFORMATIONS DRAWING ON INNOVATIVE SKILLS AND PIONEERING SPIRIT ANCHORING A CULTURE OF RESPONSIBILITY A Culture & Conduct programme Digital transformation: #1 in eCAC40 Awards 2018 sponsored by the CEO and reporting to the Board of Directors UN Environment Programme “
Slide 35: Supplement: Other Information
4 SUPPLEMENT OTHER INFORMATION
Slide 36: Group Quarterly Income Statement by Core Business
GROUP QUARTERLY INCOME STATEMENT BY CORE BUSINESS International Retail Banking Global Banking and Investor French Retail Banking Corporate Centre Group and Financial Services Solutions In EUR m Q4 18 Q4 17 Q4 18 Q4 17 Q4 18 Q4 17 Q4 18 Q4 17 Q4 18 Q4 17 Net banking income 1,912 2,051 2,161 2,057 2,0
Slide 37: Group Annual Income Statement by Core Business
GROUP ANNUAL INCOME STATEMENT BY CORE BUSINESS International Retail Banking Global Banking and Investor French Retail Banking Corporate Centre Group and Financial Services Solutions In EUR m 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 Net banking income 7,860 8,014 8,317 7,914 8,846 9,173 182
Slide 38: Group Non Economic and Exceptional Items
GROUP NON ECONOMIC AND EXCEPTIONAL ITEMS In EUR m Q4 18 Q4 17 Change 2018 2017 Change Business Net Banking Income 5,927 6,323 -6.3% 25,205 23,954 +5.2% (-)Reevaluation of own financial liabilities* 93 (53) Corporate Centre (-)DVA* 2 (4) (-)Adjustment of hedging costs** 0 (88) French Retail Banking (
Slide 39: Group CRR/CRD4 Prudential Capital Ratios
GROUP CRR/CRD4 PRUDENTIAL CAPITAL RATIOS _Fully Loaded Common Equity Tier 1, Tier 1 and Total Capital In EUR bn 31/12/2018 31/12/2017 Shareholder equity Group share 61.0 59.4 Deeply subordinated notes* (9.3) (8.5) Undated subordinated notes* (0.3) (0.3) Dividend to be paid & interest on subordinated
Slide 40: Group CRR Leverage Ratio
GROUP CRR LEVERAGE RATIO _CRR Fully Loaded Leverage Ratio(1) 31/12/2018 31/12/2017 In EUR bn Tier 1 Capital 51.4 48.9 Total prudential balance sheet 1,175 1,138 Adjustement related to derivative exposures (2) (45) (61) Adjustement related to securities financing transactions* (11) (9) Off-balance sh
Slide 41: Group TLAC / MREL: Already Meeting Requirements
GROUP TLAC / MREL: ALREADY MEETING REQUIREMENTS WELL ADVANCED ON UPCOMING SUBORDINATION RULES _TLAC ratio _MREL ratio Already meeting 2019 (19.5%) requirement and even 2022 (21.5%)(1) Already meeting total requirements (notification received in June 2018) The Group funding plan not relying on the to
Slide 42: Group Risk-Weighted Assets
GROUP RISK-WEIGHTED ASSETS* (CRR/CRD 4, IN EUR BN) 364.7 376.0 142.3 353.3 137.1 49.6 128.8 48.9 49.0 23.7 116.7 118.3 119.7 32.2 33.1 14.8 15.9 Total 7.7 7.7 7.7 0.2 0.1 32.2 0.1 95.8 96.8 97.5 15.4 21.8 Operational 5.4 5.4 5.5 0.1 0.0 0.0 14.5 Market Credit 289.5 299.8 302.7 108.9 110.3 111.9 90.3
Slide 43: Group Change in Gross Book Outstandings
GROUP CHANGE IN GROSS BOOK OUTSTANDINGS* End of period in EUR bn 491.1 496.6 501.2 479.1 483.1 475.5 478.7 482.1 Total 472.7 Global Banking 136.0 138.7 156.7 158.0 164.9 and Investor Solutions 152.2 155.8 137.9 135.5 International Retail Banking and Financial Services 133.5 135.4 138.7 140.0 139.7 1
Slide 44: Breakdown of SG Group Commitments by Sector
GROUP - BREAKDOWN OF SG GROUP COMMITMENTS BY SECTOR AT 31.12.2018 EAD Corporate: Construction Hotels & Catering Automobiles Machinery and equipment 4% 2% 2% 4% EUR 359 bn* Transport equip. manuf. 1% Wholesale trade Metals, minerals 8% 4% Oil and gas 6% Retail trade Health, social services 5% Chemica
Slide 45: Geographic Breakdown of SG Group Commitments
GROUP - GEOGRAPHIC BREAKDOWN OF SG GROUP COMMITMENTS AT 31.12.2018 On-and off-balance sheet EAD* On-balance sheet EAD* All customers included: EUR 920bn All customers included: EUR 679bn Africa and Latin Asia- Africa and Latin Asia-Pacific Middle East America and Eastern Pacific Eastern Middle Ameri
Slide 46: Group Non Performing Loans
GROUP NON PERFORMING LOANS In EUR bn 31/12/2018 30/09/2018 31/12/2017 Gross book outstandings* 501.2 496.6 478.7 Doubtful loans* 18.0 19.0 20.9 Group Gross non performing loans ratio* 3.6% 3.8% 4.4% Specific provisions 9.7 10.5 11.3 Portfolio-based provisions** 1.9 2.0 1.3 Group Gross doubtful loans
Slide 47: Group Exposure to Leveraged Buy Out Is Very Limited
THE GROUP’S OVERALL EXPOSURE TO LEVERAGED BUY OUT (LBO) IS VERY LIMITED AND WELL MONITORED Leveraged Buy Out Overall exposure Cautious origination in a context of strong liquidity, low interest rates, but c. 3% of total corporate credit portfolio also increased investor scrutiny Granular and well-di
Slide 48: Group Change in Trading VaR and Stressed VaR
GROUP CHANGE IN TRADING VAR* AND STRESSED VAR** _Quarterly Average of 1-Day, 99% Trading VaR* (in EUR m) 30 32 22 19 19 18 21 15 17 Trading VaR* 6 8 8 8 Credit 6 18 16 5 8 5 4 Interest Rates 16 15 13 12 12 Equity 11 11 Forex 19 19 17 Commodities 14 15 14 15 12 14 Compensation Effect 5 5 3 3 3 3 3 4
Slide 49: Group Diversified Exposure to Russia
GROUP DIVERSIFIED EXPOSURE TO RUSSIA _EAD as of Q4 18: EUR 14.9 bn Other Corporates Sovereign ONSHORE Financial Institutions 21% 4% 1% Car loans 22% 24% Corporates Mortgages 46% Tier 1(1) Retail 28% 36% Consumer 4% loans 14% Other OFFSHORE (1) Top 500 Russian corporates and multinational corporates
Slide 50: Group Funding Structure
GROUP FUNDING STRUCTURE 31 DECEMBER 2017 31 DECEMBER 2018 Due to Customers 417 Due to Banks 411 Financial Liabilities at Fair Value through Profit or Loss - Structured Debt o.w. Securities sold to customer 17 16 under repurchase agreements 95 Debt Securities Issued(1) 89 o.w. Securities sold to bank
Slide 51: 2018 Group Long Term Funding Programme
2018 GROUP LONG TERM FUNDING PROGRAMME REALISED AT COMPETITIVE CONDITIONS 2018 completed programme breakdown EUR 39.2bn raised in 2018 incl. pre-funding, o/w: - EUR 15.2bn of vanilla debt (2.2bn AT1, 1.3bn T2, 6.7bn SNP, 2bn SP and 3bn CB) - EUR 24bn of structured notes Competitive funding condition
Slide 52: Group Long Term Funding Breakdown
GROUP LONG TERM FUNDING BREAKDOWN(1) 31.12.2018 8% 16% 13% Senior Non-Preferred Issues EUR 179bn 13% Senior Vanilla Preferred Subordinated Debt(2) Unsecured Issues(3) 28% LT Interbank Liabilities(5) Senior Structured Issues 8% Subsidiaries Secured Issues(4) 14% (1) See : Methodology (2) Including un
Slide 53: Group Liquid Asset Buffer
GROUP LIQUID ASSET BUFFER _Liquid Asset Buffer (in EUR bn) 174 167 164 176 172 75 94 73 70 82 Central Bank Deposits(1) 84 High Quality Liquid 77 79 73 64 Asset Securities(2) Central Bank Eligible 16 16 15 16 17 Assets(2) Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Liquidity Coverage Ratio at 124% on average in Q4
Slide 54: Group EPS Calculation
GROUP EPS CALCULATION Average number of shares (thousands) 2018 2017 2016 Existing shares 807,918 807,754 807,293 Deductions Shares allocated to cover stock option plans and free shares 5,335 4,961 4,294 awarded to staff Other own shares and treasury shares 842 2,198 4,232 Number of shares used to c
Slide 55: Group Net Asset Value, Tangible Net Asset Value
GROUP NET ASSET VALUE, TANGIBLE NET ASSET VALUE End of period 2018 2017 2016 Shareholders' equity Group share 61,026 59,373 61,953 Deeply subordinated notes (9,330) (8,520) (10,663) Undated subordinated notes (278) (269) (297) Interest net of tax payableto holders of deeply subordinated notes & unda
Slide 56: Group ROE/ROTE Calculation Detail
GROUP ROE/ROTE CALCULATION DETAIL End of period T4-18 T4-17 2018 2017 Shareholders' equity Group share 61,026 59,373 61,026 59,373 Deeply subordinated notes (9,330) (8,520) (9,330) (8,520) Undated subordinated notes (278) (269) (278) (269) Interest net of tax payable to holders of deeply subordinate
Slide 57: French Retail Banking Change in Net Banking Income
FRENCH RETAIL BANKING CHANGE IN NET BANKING INCOME Change Q4 18 vs. Q4 17 2,052 2,008 1,991 1,949 1,912 -6.8% NBI in EUR m 206 205 202 198 -6.4% 193 Financial Fees Commissions 609 622 638 634 626 +0.5% vs. Q4 17 and +1.4% vs. 2017 +2.8% Service Fees 170 148 146 109 141 -16.9% Other Income 1,052 1,01
Slide 58: French Retail Banking Customer Deposits and Financial Savings
FRENCH RETAIL BANKING CUSTOMER DEPOSITS AND FINANCIAL SAVINGS Average outstanding Change in EUR bn Q4 18 vs. Q4 17 304.7 305.3 308.4 309.9 309.1 +1.5% Financial savings: Life Insurance EUR 107.4bn 92.8 93.0 93.5 93.8 92.3 -0.5% -2.7% Mutual Funds 16.2 14.4 14.9 -13.8% Others 17.3 16.5 0.3 0.2 0.2 0.
Slide 59: French Retail Banking Loans Outstanding
FRENCH RETAIL BANKING LOANS OUTSTANDING Change Average outstanding, net of provisions in EUR bn Q4 18 vs. Q4 17 181.4 183.0 183.1 184.6 186.7 188.5 +3.9% +4.0% Individual Customers o.w. Housing 99.4 +2.9% +3.0% 96.6 97.3 98.0 98.7 Consumer Credit 11.2 11.3 11.5 11.5 11.7 +4.0% and Overdraft Business
Slide 60: International Retail Banking and Financial Services Quarterly Results
INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES QUARTERLY RESULTS International Retail Banking Insurance Financial Services to Corporates Total In EUR m Q4 18 Q4 17 Change Q4 18 Q4 17 Change Q4 18 Q4 17 Change Q4 18 Q4 17 Change Net banking income 1,477 1,370 +9.8%* 224 214 +4.9%* 460 473 +0.8%*
Slide 61: International Retail Banking and Financial Services 2018 Results
INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES 2018 RESULTS Financial Services to International Retail Banking Insurance Total Corporates In EUR m 2018 2017 Change 2018 2017 Change 2018 2017 Change 2018 2017 Change Net banking income 5,608 5,278 +9.1%* 887 832 +4.9%* 1,822 1,804 +0.2%* 8,317 7,
Slide 62: Quarterly Results of International Retail Banking by Region
QUARTERLY RESULTS OF INTERNATIONAL RETAIL BANKING BREAKDOWN BY REGION Total International Western Europe Czech Republic Romania Other Europe Russia (1) Africa and other Retail Banking In M EUR Q4 18 Q4 17 Q4 18 Q4 17 Q4 18 Q4 17 Q4 18 Q4 17 Q4 18 Q4 17 Q4 18 Q4 17 Q4 18 Q4 17 Net banking income 217
Slide 63: 2018 Results of International Retail Banking by Region
2018 RESULTS OF INTERNATIONAL RETAIL BANKING BREAKDOWN BY REGION Total International Western Europe Czech Republic Romania Other Europe Russia (1) Africa and other Retail Banking In M EUR 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 Net banking income 836 762 1,119 1,044 599
Slide 64: International Retail Banking Loan and Deposit Outstandings Breakdown
INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES LOAN AND DEPOSIT OUTSTANDINGS BREAKDOWN _Loan Outstandings Breakdown (in EURbn) _Deposit Outstandings Breakdown (in EURbn) Change Change Dec.18 vs. Dec. 17 Dec. 18 vs. Dec.17 1.0 0.9 +4.4%* 83.3 17.9 o.w. Equipment 79.8 17.1 +4.7%* +5.8%* 2.0 Finan
Slide 65: International Retail Banking Insurance Key Figures
INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES INSURANCE KEY FIGURES _Life Insurance Outstandings _Personal Protection Insurance Premiums (in EUR m) and Unit Linked Breakdown (in EUR bn) 114.1 114.0 115.4 116.5 115.4 26% 26% Unit Linked 257 262 260 259 27% 27% 28% 244 Change Q4 18 vs. Q4 17 Eur
Slide 66: International Retail Banking SG Russia
INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES SG RUSSIA(1) _SG Russia Results In EUR m Q4 18 Q4 17 Change 2018 2017 Change Net banking income 220 229 +6.3%* 815 842 +9.1%* Operating expenses (146) (155) +3.8%* (562) (594) +5.5%* Gross operating income 74 75 +11.6%* 252 248 +18.3%* Net cost of
Slide 67: Presence in Central and Eastern Europe
INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES PRESENCE IN CENTRAL AND EASTERN EUROPE Clients NBI Net income C/I RWA 7.6 m EUR 2.4 bn EUR 597m 55% EUR 32.5 bn 2018 NBI RWA Credits Deposits L/D ratio Ranking (In EUR m) (In EUR m) (In EUR m) (In EUR m) Czech Republic 1,119 14,366 24,612 31,044 79
Slide 68: Presence in Africa
INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES PRESENCE IN AFRICA Clients NBI Net income C/I RWA 3.8 m EUR 1.4 bn EUR 208 m 59% EUR 20.8 bn 2018 NBI RWA Credits Deposits L/D ratio Ranking (In EUR m) (In EUR m) (In EUR m) (In EUR m) Morocco 410 7,184 7,515 6,458 116% 4th(1) Algeria 162 2,173 1,9
Slide 69: Global Banking and Investor Solutions Quarterly Results
GLOBAL BANKING AND INVESTOR SOLUTIONS QUARTERLY RESULTS Global Markets and Investor Total Global Banking and Investor Financing and Advisory Asset and Wealth Management Services Solutions In EUR m Q4 18 Q4 17 Change Q4 18 Q4 17 Change Q4 18 Q4 17 Change Q4 18 Q4 17 Change Net banking income 1,093 1,
Slide 70: Global Banking and Investor Solutions 2018 Results
GLOBAL BANKING AND INVESTOR SOLUTIONS 2018 RESULTS Global Markets and Investor Financing and Advisory Asset and Wealth Management Total Global Banking and Investor Solutions Services In EUR m 2018 2017 Change 2018 2017 Change 2018 2017 Change 2018 2017 Change Net banking income 5,207 5,678 -6.6%* 2,
Slide 71: Global Banking and Investor Solutions Risk-Weighted Assets
GLOBAL BANKING AND INVESTOR SOLUTIONS RISK-WEIGHTED ASSETS IN EUR BN _Global Markets and Investor Services 66.6 70.2 73.4 24.6 24.9 24.6 13.4 13.2 19.4 28.6 32.3 29.1 Q4 17 Q3 18 Q4 18 Operational Market _Financing and Advisory _Asset and Wealth Management Credit 52.3 55.3 57.9 6.2 11.6 11.0 5.7 5.7
Slide 72: Global Banking and Investor Solutions Revenues
GLOBAL BANKING AND INVESTOR SOLUTIONS REVENUES _Global Markets and Investor Services Revenues (in EUR m) _Asset and Wealth Management Revenues (in EUR m) 7 6 5 5 3 Securities 214 50 47 179 178 Services 52 45 47 165 Others Fixed Income, 535 580 177 514 494 Currencies Lyxor 366 and 191 185 205 184 182
Slide 73: Global Banking and Investor Solutions Key Figures
GLOBAL BANKING AND INVESTOR SOLUTIONS KEY FIGURES _Private Banking: Assets under Management(1) (in EUR bn) _Lyxor: Assets under Management (in EUR bn) 118 117 119 121 113 112 117 119 125 118 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 _Securities Services: Assets under Custody (in EU
Slide 74: Global Banking and Investor Solutions CVA/DVA Impact
GLOBAL BANKING AND INVESTOR SOLUTIONS CVA/DVA IMPACT NBI impact Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Equities 3 (1) 2 3 (9) Fixed income,currencies,commodities 7 (4) (3) 9 (20) Financing and Advisory 7 (3) (4) 8 (21) Total 17 (9) (5) 19 (51) FULL YEAR AND 4TH QUARTER 2018 RESULTS 7 FEBRUARY 2019 74
Slide 75: League Tables - Rankings - Awards
GLOBAL BANKING AND INVESTOR SOLUTIONS LEAGUE TABLES - RANKINGS - AWARDS Global Markets and Investor Services Asset and Wealth Management Private Banker International Structured products house of the year Outstanding Customer Relationship Service and Engagement Best Fx Execution Algorithms, PWM The B
Slide 76: Financing & Advisory: Supporting Clients in Their Transformations
FINANCING & ADVISORY SUPPORTING CLIENTS IN THEIR TRANSFORMATIONS OPEN FIBER REPUBLIC OF ITALY Financial Advisor, Underwriter, Global Coordinator, Joint Lead Manager Global bookrunner EUR 3.5 bn financing for the roll The Republic of Italy successfully completed out of an ultra-high-speed fiber a EUR
Slide 77: Methodology (1/3)
METHODOLOGY (1/3) 1 – The Group’s consolidated results as at December 31th, 2018 were approved by the Board of Directors on February 6th, 2019. The financial information presented in respect the quarter and nine months ended December 30th, 2018 has been prepared in accordance with IFRS as adopted in
Slide 78: Methodology (2/3)
METHODOLOGY (2/3) 6 – Cost of risk in basis points, coverage ratio for non performing loans The cost of risk or commercial cost of risk is defined on pages 46 and 564 of Societe Generale’s 2018 Registration Document. This indicator makes it possible to assess the level of risk of each of the pillars
Slide 79: Methodology (3/3)
METHODOLOGY (3/3) The net result by the group retained for the numerator of the ratio is the net profit attributable to the accounting group adjusted by the interest, net of taxes to be paid on TSS & TSDI, interest paid to the holders of TSS & TSDI amortization of premiums issues and unrealized gain
Slide 80: Investor Relations Team
INVESTOR RELATIONS TEAM [email protected] www.societegenerale.com/en/investors