Societe Generale S.a. Class A · EURONEXT:GLE
Societe Generale S.a. Class A — Q3 2016 Earnings Presentation
75 slides from Societe Generale S.a. Class A's earnings presentation, Nov 3, 2016
Slide 1: Group Results 3rd Quarter and 9 Months 2016
SOCIETE GENERALE GROUP RESULTS 3RD QUARTER AND 9 MONTHS 2016 3 NOVEMBER 2016 | P.1
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, Group, Business Results, Conclusion, Key Figures
INTRODUCTION GROUP BUSINESS RESULTS CONCLUSION KEY FIGURES | P.3
Slide 4: Q3 16: Solid commercial and financial performance in a challenging environment
SOCIETE GENERALE GROUP dd Q3 16: SOLID COMMERCIAL AND FINANCIAL PERFORMANCE IN A CHALLENGING ENVIRONMENT Increased revenues of Group businesses: Group NBI(1) vs. Q3 15 Strong commercial performance across businesses EUR 6.3bn +3.7% Operating expenses vs. Q3 15 Costs under control EUR 4.0bn +1.0%
Slide 5: Creating value through Group transformation
SOCIETE GENERALE GROUP CREATING VALUE THROUGH GROUP TRANSFORMATION Low Volatility and Increased Group Net Income(1) Increased NBI from Businesses (in EUR bn) (in EUR bn)(1) 18.5 18.3 17.6 18.8 19.5 1.6 2.7 2.3 2.8 3.7 6.3 6.7 6.5 7.3 7.1 1.4 1.5 1.4 6.3 6.0 5.6 5.5 5.6 0.8 1.5 0.8 1.2 0.4 0.8 0.3 6.
Slide 6: Solid results from a well-balanced business model
SOCIETE GENERALE GROUP SOLID RESULTS FROM A WELL-BALANCED BUSINESS MODEL Q3 16 figures Net Banking Average Allocated Capital Group Adjusted Income (EUR m) (% of capital allocated Net Income (EUR m) RONE to Core Businesses) FRENCH RETAIL BANKING • Dynamic client acquisition and loan 2,042 30% 353 ori
Slide 7: Accelerating digital transformation across the Group
SOCIETE GENERALE GROUP ACCELERATING DIGITAL TRANSFORMATION ACROSS THE GROUP User experience New Products and Services • Account aggregators in Boursorama, launched • Top customer service on Twitter, Facebook, by Crédit du Nord in 2016, early 2017 for SG Messenger network • Full online consumer credi
Slide 8: Group
INTRODUCTION GROUP BUSINESS RESULTS CONCLUSION KEY FIGURES | P.8
Slide 9: Limited impact of negative interest rate environment
SOCIETE GENERALE GROUP LIMITED IMPACT OF NEGATIVE INTEREST RATE ENVIRONMENT dd NBI FROM BUSINESSES UP +2.6% IN Q3 16 VS. Q3 15 International Retail Banking and Financial French Retail Banking Services Rebalancing revenue structure Exposure to markets outside negative interest rate policies • Ongoing
Slide 10: An ongoing discipline on costs with tangible results
SOCIETE GENERALE GROUP AN ONGOING DISCIPLINE ON COSTS WITH TANGIBLE RESULTS Transformation and Cost Initiatives FRENCH RETAIL BANKING INTERNATIONAL RETAIL GLOBAL BANKING AND CORPORATE CENTRE BANKING AND FINANCIAL INVESTOR SOLUTIONS AND GROUP FUNCTIONS SERVICES • Digitalisation of customer • Downsizi
Slide 11: Low cost of risk reflecting quality of portfolio
SOCIETE GENERALE GROUP LOW COST OF RISK REFLECTING QUALITY OF PORTFOLIO Cost of Risk(1) (in bp) 9M 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 9M 16 French Retail Banking • Stable cost of risk overall 42 42 43 35 36 35 33 FRENCH RETAIL BANKING International Retail Banking and 101 91 104 74 64 67 68 INTERNA
Slide 12: Q3 ROE at 9.7%: solid results from a transformed business model
SOCIETE GENERALE GROUP dd Q3 16 ROE AT 9.7%: SOLID RESULTS FROM A TRANSFORMED BUSINESS MODEL In EUR m Q3 16 Q3 15 Change 9M 16 9M 15 Change Net banking income 6,010 6,364 -5.6% -5.1%* 19,169 19,586 -2.1% -1.1%* Net b anking income(1) 6,251 6,026 +3.7% +4.4%* 19,476 18,870 +3.2% +4.3%* Operating expe
Slide 13: Strong capital position
SOCIETE GENERALE GROUP dd STRONG CAPITAL POSITION CET1 Ratio FULLY LOADED(1) PHASED-IN(2) 11.7% Improvement of CET1(1) ratio vs. Q2 16, Hybrid +3bp +7bp Management coupons -16bp +4bp +3bp 199bp Buffer(2) at 11.4% +32bp • Steady capital generation +32bp in Q3 16 11.4% 11.1% • Close to medium term t
Slide 14: Pillar 2 latest development strengthening already large capital buffers
SOCIETE GENERALE GROUP PILLAR 2 LATEST DEVELOPMENT STRENGTHENING ALREADY LARGE CAPITAL BUFFERS The Pillar 2 add-on required on CET1 capital is replaced by 2 components • A « Pillar 2 Requirement » (P2R) of 1.5%(1) below the regulatory buffers • MDA threshold decreased from 9.75% to 7.75% • An undi
Slide 15: Business Results
INTRODUCTION GROUP BUSINESS RESULTS CONCLUSION KEY FIGURES | P.15
Slide 16: French Retail Banking: ongoing positive commercial momentum
FRENCH RETAIL BANKING ONGOING POSITIVE COMMERCIAL MOMENTUM Digital transformation on track 918k • Shift from branch to digital channels • ~50% (1) of clients connect at least once a month • 63 branches closed since end-2015 # Digital Connections # clients with at least # Transfers via 2012 9M 16
Slide 17: French Retail Banking: resilient profitability
FRENCH RETAIL BANKING dd RESILIENT PROFITABILITY Net Banking Income(1) (in EUR m) Q3 16 NBI -5.5%(1) vs. all time high Q3 in 2015 2,180 2,167 2,1067 2,087 2,059 6,482 • Pressure on net interest margin 6,253 572 542 • Lower reinvestment yield on deposits 193 2,002 2,011 185 191 177 174 678 667 668
Slide 18: International Retail Banking and Financial Services: businesses delivering volume growth
INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES dd BUSINESSES DELIVERING VOLUME GROWTH Loan and Deposit Outstandings Breakdown (in EUR bn – change vs. end-Q3 15, in %*) International Retail Banking +6.9%* 82.3 74.1 +7.0%* TOTAL • Loan growth in high-potential markets: +9%* in Europe, 15.2 1.8
Slide 19: Growth and profitability potential confirmed
INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES dd GROWTH AND PROFITABILITY POTENTIAL CONFIRMED Contribution to Group net income** (end of period, in EUR m) High performance maintained in Financial TOTAL 311 350 457 Services to Corporates and Insurance 212 • RONE >20% in 9M 16 INTERNATIONAL 14
Slide 20: Agile franchises generating increased revenues in a contrasted environment
GLOBAL BANKING AND INVESTOR SOLUTIONS dd AGILE FRANCHISES GENERATING INCREASED REVENUES IN A CONTRASTED ENVIRONMENT Net Banking Income (in EUR m) Equities 413 451 540 568 482 Equities: +16.7% vs. Q3 15 • Robust appetite for structured product solutions Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 • Cash and Flow
Slide 21: Profitable model driven by cost discipline and low cost of risk
GLOBAL BANKING AND INVESTOR SOLUTIONS dd PROFITABLE MODEL DRIVEN BY COST DISCIPLINE AND LOW COST OF RISK Global Banking and Investor Solutions Group Contribution to Group Net Income (EUR m) and RONE(1) Net Banking Income up +13.7% 7.2% 11.2% RONE(1) vs. Q3 15 330 469 ASSET AND WEALTH 19 MANAGEMENT
Slide 22: Corporate Centre
SOCIETE GENERALE GROUP dd CORPORATE CENTRE Corporate Centre Results NBI impact from revaluation of own financial liabilities In EUR m Q3 16 Q3 15 9M 16 9M 15 • EUR -237m in Q3 16 vs. EUR +447m in Q3 15 Net banking income (239) 276 228 314 • EUR -304m in 9M 16 vs. EUR +821m in 9M 15 Net b anking in
Slide 23: Conclusion
INTRODUCTION GROUP BUSINESS RESULTS CONCLUSION KEY FIGURES | P.23
Slide 24: Generating value for our shareholders through transformation
SOCIETE GENERALE GROUP dd GENERATING VALUE FOR OUR SHAREHOLDERS THROUGH TRANSFORMATION Solid results from transformed and agile business model NTAVPS 2012-2016 +18.2%, CAGR +4.3% 60.5 62.8 57.4 56.7 57.8 NET ASSET VALUE PER SHARE (EUR) 51.3 54.0 56.8 48.0 48.8 NET TANGIBLE ASSET VALUE PER SHARE –
Slide 25: Keeping our edge on challenges: key business priorities
SOCIETE GENERALE GROUP dd KEEPING OUR EDGE ON CHALLENGES: KEY BUSINESS PRIORITIES French Retail Banking International Retail Banking Global Banking and Investor and Financial Services Solutions Deep transformation to Business refocusing Agile and focused adapt to new client delivering: platform: beh
Slide 26: Key Figures
INTRODUCTION GROUP BUSINESS RESULTS CONCLUSION KEY FIGURES | P.26
Slide 27: Key Figures
SOCIETE GENERALE GROUP dd KEY FIGURES Q3 16 Change Q3 vs. Q2 Change Q3 vs. Q3 9M 16 Change 9M vs. 9M In EUR m Net banking income 6,010 -13.9% -5.6% 19,169 -2.1% Operating expenses (4,016) -2.5% +1.0% (12,419) -1.0% Net cost of risk (417) -37.2% -27.0% (1,605) -15.9% Reported Group net income 1,099 -
Slide 28: Slide 28
Slide 29: Group Results Supplement
SOCIETE GENERALE GROUP RESULTS SUPPLEMENT 3RD QUARTER AND 9 MONTHS 2016 3 NOVEMBER 2016
Slide 30: Table of Contents
TABLE OF CONTENTS International Retail Banking and Financial Services Societe Generale Group Quarterly results 46 Quarterly income statement by core business 30 9M 16 results 47 9M 16 income statement by core business 31 Quarterly results of International Retail Banking: Quarterly non economic and o
Slide 31: Quarterly income statement by core business
SUPPLEMENT – SOCIETE GENERALE GROUP QUARTERLY INCOME STATEMENT BY CORE BUSINESS International Retail Banking and Global Banking and Investor French Retail Banking Corporate Centre Group Financial Services Solutions In EUR m Q3 16 Q3 15 Q3 16 Q3 15 Q3 16 Q3 15 Q3 16 Q3 15 Q3 16 Q3 15 Net banking inco
Slide 32: 9M 16 income statement by core business
SUPPLEMENT – SOCIETE GENERALE GROUP 9M 16 INCOME STATEMENT BY CORE BUSINESS International Retail Banking and Global Banking and Investor French Retail Banking Corporate Centre Group Financial Services Solutions In EUR m 9M 16 9M 15 9M 16 9M 15 9M 15 9M 15 9M 16 9M 15 9M 16 9M 15 Net banking income 6
Slide 33: Quarterly non economic and other important items
SUPPLEMENT – SOCIETE GENERALE GROUP QUARTERLY NON ECONOMIC AND OTHER IMPORTANT ITEMS Net Banking Operating Group Net In EUR m Q3 16 Income Expenses Others Cost of Risk Income Revaluation of own financial liabilities* (237) (155) Corporate Centre Accounting impact of DVA* (4) (3) Group Accounting imp
Slide 34: 9M non economic and other important items
SUPPLEMENT – SOCIETE GENERALE GROUP 9 MONTHS NON ECONOMIC AND OTHER IMPORTANT ITEMS In EUR m Net Banking Operating Group Net 9M 16 Income Expenses Others Cost of Risk Income Revaluation of own financial liabilities* (304) (199) Corporate Centre Accounting impact of DVA* (3) (2) Group Accounting impa
Slide 35: IFRIC 21 and SRF impact
SUPPLEMENT – SOCIETE GENERALE GROUP IFRIC 21 AND SRF IMPACT International Retail Global Banking and French Retail Banking Banking and Financial Corporate Centre Group Investor Solutions Services In EUR m 9M 16 9M 15 9M 16 9M 15 9M 16 9M 15 9M 16 9M 15 9M 16 9M 15 Total IFRIC 21 Impact - costs -85 -6
Slide 36: CRR/CRD4 prudential capital ratios
SUPPLEMENT – SOCIETE GENERALE GROUP CRR/CRD4 PRUDENTIAL CAPITAL RATIOS In EUR bn 30/09/2016 31/12/2015 30/09/2015 Shareholder equity Group share 60.9 59.0 57.9 Deeply subordinated notes* (10.2) (9.6) (9.4) Undated subordinated notes* (0.4) (0.4) (0.4) Dividend to be paid & interest on subordinated n
Slide 37: CRR leverage ratio
SUPPLEMENT – SOCIETE GENERALE GROUP CRR LEVERAGE RATIO CRR fully loaded leverage ratio(1) In EUR bn 30/09/2016 31/12/2015 30/09/2015 Tier 1 Capital 50.6 48.1 46.9 Total prudential balance sheet (2) 1,294 1,229 1,250 Adjustement related to derivative exposures (129) (90) (97) Adjustement related to s
Slide 38: Risk-weighted assets
SUPPLEMENT – RISK MANAGEMENT RISK-WEIGHTED ASSETS* (CRR/CRD 4, in EUR bn) TOTAL 94.5 97.8 97.2 102.8 108.6 110.3 139.1 133.3 130.7 18.9 15.4 15.4 355.4 355.1 353.6 OPERATIONAL MARKET CREDIT 43.9 44.1 44.1 28.6 28.4 17.9 17.4 17.1 28.4 7.6 7.6 0.1 0.1 17.1 6.0 4.8 0.1 16.7 0.1 4.8 16.3 4.0 0.0 0.1 29
Slide 39: Diversified exposure to Oil & Gas sector
SUPPLEMENT – SOCIETE GENERALE GROUP DIVERSIFIED EXPOSURE TO OIL & GAS SECTOR Breakdown of Oil & Gas Exposure % of EAD at 30.09.2016 LATIN AMERICA OTHER EASTERN EUROPE INTEGRATED 5% WESTERN EUROPE CORPORATES UPSTREAM 11% MIDDLE EAST & 6% INDEPENDENTS: AFRICA 20% RESERVE BASED 8% LENDING (RBL) 34% 12%
Slide 40: Change in gross book outstandings
SUPPLEMENT – RISK MANAGEMENT CHANGE IN GROSS BOOK OUTSTANDINGS* End of period in EUR bn 437.1 437.2 431.0 448.5 448.6 462.4 462.3 461.2 461.2 461.4 461.4 467.4 486.4 477.6 TOTAL GLOBAL BANKING AND INVESTOR SOLUTIONS 156.9 154.1 6 142.7 141.7 138.0 143.9 6 126.5 136.8 124.2 127.7 INTERNATIONAL RETAIL
Slide 41: Non performing loans
SUPPLEMENT – RISK MANAGEMENT NON PERFORMING LOANS In EUR bn 30/09/2016 30/06/2016 30/09/2015 Gross book outstandings* 475.1 484.0 465.3 Doubtful loans* 23.3 23.4 23.6 Gross non performing loans ratio* 4.9% 4.8% 5.1% Specific provisions* 13.2 13.2 13.3 Portfolio-based provisions* 1.6 1.5 1.3 Gross do
Slide 42: Change in trading VaR and stressed VaR
SUPPLEMENT – RISK MANAGEMENT CHANGE IN TRADING VAR* AND STRESSED VAR Quarterly average of 1-day, 99% Trading VaR* (in EUR m) 20 20 24 19 23 20 20 21 21 Trading VaR* 8 7 8 12 11 CREDIT 7 11 8 6 15 24 15 15 16 INTEREST RATES 17 14 18 16 14 13 14 16 14 12 EQUITY 12 7 8 5 6 4 FOREX 2 1 4 3 2 3 2 3 3 2 2
Slide 43: Diversified exposure to Russia
SUPPLEMENT – RISK MANAGEMENT DIVERSIFIED EXPOSURE TO RUSSIA EAD as of Q3 16: EUR 15.0bn(1) ONSHORE FINANCIAL OTHER INSTITUTIONS CORPORATES CORPORATES SOVEREIGN TIER 1(2) 5% 2% 11% 26% CAR LOANS 24% 34% MORTGAGES 50% RETAIL 22% 22% CONSUMER LOANS 4% OFFSHORE OTHER (1) EAD net of provisions (2) Top 50
Slide 44: Change in net banking income
SUPPLEMENT – FRENCH RETAIL BANKING CHANGE IN NET BANKING INCOME 2,172 2,189 2,083 2,100 2 2,043 NBI(2) in EUR m 193 185 191 177 174 FINANCIAL COMMISSIONS COMMISSIONS 678 667 668 671 672 SERVICE COMMISSIONS 122 152 106 100 71 OTHER(2) 496 489 BUSINESS CUSTOMER 495 499 494 INTEREST MARGIN INTEREST MAR
Slide 45: Customer deposits and financial savings
SUPPLEMENT – FRENCH RETAIL BANKING CUSTOMER DEPOSITS AND FINANCIAL SAVINGS Change Average outstandings Q3 16 vs. Q3 15 in EUR bn 284.1 284.0 283.9 289.3 295.2 +3.9% Financial 90.0 90.5 +2.5% EUR 108.4bn LIFE INSURANCE 88.3 89.3 89.5 -3.6% MUTUAL FUNDS 16.3 17.4 -25.9% 23.5 20.7 17.5 0.5 0.5 OTHERS 0
Slide 46: Loan outstandings
SUPPLEMENT – FRENCH RETAIL BANKING LOAN OUTSTANDINGS Change Average outstandings, net of provisions Q3 16 vs. Q3 15 in EUR bn 179.0 181.6 182.4 183.0 183.8 +2.7% INDIVIDUAL CUSTOMERS o.w.: 91.4 92.2 92.2 92.9 +4.0% - HOUSING 89.3 - CONSUMER CREDIT AND 11.0 10.9 10.9 10.9 10.9 -0.7% OVERDRAFT BUSINES
Slide 47: Quarterly results
SUPPLEMENT – INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES QUARTERLY RESULTS International Retail Banking Insurance Financial Services to corporates Other Total In EUR m Q3 16 Q3 15 Change Q3 16 Q3 15 Change Q3 16 Q3 15 Change Q3 16 Q3 15 Q3 16 Q3 15 Change Net banking income 1,275 1,280 +1.3%
Slide 48: 9M 16 results
SUPPLEMENT – INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES 9M 16 RESULTS Financial Services to International Retail Banking Insurance Other Total corporates In EUR m 9M 16 9M 15 Change 9M 16 9M 15 Change 9M 16 9M 15 Change 9M 16 9M 15 9M 16 9M 15 Change Net banking income 3,736 3,707 +3.8%* 66
Slide 49: Quarterly results of International Retail Banking: breakdown by zone
SUPPLEMENT – INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES QUARTERLY RESULTS OF INTERNATIONAL RETAIL BANKING: BREAKDOWN BY ZONE Total International Western Europe Czech Republic Romania Other Europe Russia (1) Africa and others retail Banking In M EUR Q3 16 Q3 15 Q3 16 Q3 15 Q3 16 Q3 15 Q3 16
Slide 50: 9M 16 results of International Retail Banking: breakdown by zone
SUPPLEMENT – INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES 9M 16 RESULTS OF INTERNATIONAL RETAIL BANKING: BREAKDOWN BY ZONE Total International Western Europe Czech Republic Romania Other Europe Russia (1) Africa and others retail Banking In M EUR 9M 16 9M 15 9M 16 9M 15 9M 16 9M 15 9M 16 9M 1
Slide 51: Loan and deposit outstandings breakdown
SUPPLEMENT – INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES LOAN AND DEPOSIT OUTSTANDINGS BREAKDOWN Loan outstandings breakdown Deposit outstandings breakdown (in EUR bn) (in EUR bn) Change Change Sep 16 vs. Sep 15 Sep 16 vs. Sep 15 1.1 1.3 -19.4%* O.w. EQUIPMENT FINANCE(1) +7.0%* 74.1 16.3 69.
Slide 52: Insurance key figures
SUPPLEMENT – INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES INSURANCE KEY FIGURES Life insurance outstandings and unit linked Personal protection insurance premiums breakdown (in EUR bn) (in EUR m) Change Q3 16 vs. Q3 15 92.7 94.8 95.2 95.8 97.0 +10.4% 216 222 220 21% 21% 21% 21% 22% UNIT 199 1
Slide 53: SG Russia
SUPPLEMENT – INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES SG RUSSIA(1) SG Russia results In EUR m Q3 16 Q3 15 Change 9M 16 9M 15 Change Net banking income 174 192 -2.8%* 500 536 +12.9%* Operating expenses (132) (138) +4.5%* (382) (463) +0.9%* Gross operating income 42 54 -20.5%* 118 72 +83.5%
Slide 54: Quarterly results
SUPPLEMENT – GLOBAL BANKING AND INVESTOR SOLUTIONS QUARTERLY RESULTS Global Markets and Investor Financing and Advisory Asset and Wealth Management Total Global Banking and Investor Solutions Services Q3 16 Q3 15 Change Q3 16 Q3 15 Change Q3 16 Q3 15 Change Q3 16 Q3 15 Change In M EUR Net banking in
Slide 55: 9M 16 results
SUPPLEMENT – GLOBAL BANKING AND INVESTOR SOLUTIONS 9M 16 RESULTS Global Markets and Investor Services Financing and Advisory Asset and Wealth Management Total Global Banking and Investor Solutions 9M 16 9M 15 Change 9M 16 9M 15 Change 9M 16 9M 15 Change 9M 16 9M 15 Change In M EUR Net banking income
Slide 56: Risk-weighted assets in EUR bn
SUPPLEMENT – GLOBAL BANKING AND INVESTOR SOLUTIONS RISK-WEIGHTED ASSETS IN EUR BN GLOBAL MARKETS GLOBAL MARKETS AND INVESTOR INVESTOR SERVICES SERVICES 61.2 59.2 58.2 11.8 12.1 11.0 2.2 3.2 20.7 19.6 19.6 0.1 3.2 0.0 0.0 16.0 15.7 15.3 9.5 8.9 7.8 24.4 23.9 23.3 Q3 15 Q2 16 Q3 16 Q3 15 Q2 16 Q3 16 O
Slide 57: Revenues
SUPPLEMENT – GLOBAL BANKING AND INVESTOR SOLUTIONS REVENUES Global Markets and Investor Services revenues Asset and Wealth Management revenues (in EUR m) (in EUR m) 5 7 7 6 OTHERS 161 176 PRIME SERVICES 34 8 135 44 43 42 LYXOR 159 171 SECURITIES 32 161 159 SERVICES 145 163 152 540 482 568 EQUITIES 4
Slide 58: Key figures
SUPPLEMENT – GLOBAL BANKING AND INVESTOR SOLUTIONS KEY FIGURES Private Banking: Assets under management(1) Lyxor: Assets under management(2) (in EUR bn) (in EUR bn) 117 119 106 104 101 101 103 112 113 110 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Securities Services: Assets under c
Slide 59: CVA/DVA impact
SUPPLEMENT – GLOBAL BANKING AND INVESTOR SOLUTIONS CVA/DVA IMPACT NBI impact Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Equities (32) 14 (12) (11) 26 Fixed income,currencies,commodities (31) (4) (8) (4) 29 Financing and Advisory (23) 8 0 (8) 18 Total (86) 18 (20) (23) 73 3RD QUARTER AND 9 MONTHS 2016 RESULTS 03/
Slide 60: Awards
SUPPLEMENT – GLOBAL BANKING AND INVESTOR SOLUTIONS AWARDS Financing and Advisory DCM - League Table ECM – League Table M&A – League Table DCM - League Table #6 All Euro Bonds #2 France #5 Target France Best Investment Bank in France #7All Euro Bonds #3 All Euro Corporate Bonds #7 Offer Currency in E
Slide 61: Landmark transactions in Q3 16
SUPPLEMENT – GLOBAL BANKING AND INVESTOR SOLUTIONS LANDMARK TRANSACTIONS IN Q3 16 Societe Generale acted as Mandated Lead Arranger, Documentation Societe Generale acted as a Co-Manager, Underwriter and Lender Bank and Joint Hedge Coordinator in the EUR 1.24bn project for USD 49.5bn acquisition finan
Slide 62: Details on Group funding structure
SUPPLEMENT – FUNDING STRUCTURE DETAILS ON GROUP FUNDING STRUCTURE 31DECEMBER 31 DECEMBER 2015 2015* 3031 MARS 2016 2016 SEPTEMBER DUE TO CUSTOMERS 380 406 DUE TO BANKS o.w. Securities sold to 20 customer under repurchase agreements 21 FINANCIAL LIABILITIES AT FAIR VALUE 95 80 o.w. Securities sold to
Slide 63: Q3 16 landmark issuance
SUPPLEMENT – FUNDING STRUCTURE LONG TERM FUNDING PROGRAMME Parent company 2016 funding programme EUR 28.9bn • Including EUR 17bn of structured notes Completed at 87% at 12th October 2016 (EUR 25.1bn, including 56% of structured notes) • Competitive senior debt conditions: MS6M+42bp, average matu
Slide 64: Funded balance sheet
SUPPLEMENT – FUNDING ANALYSIS FUNDED BALANCE SHEET* ASSETS ASSETS LIABILITIES In EUR bn LIABILITIES Long Term Funding Breakdown(1) 720 720 SEP 2016 NET CENTRAL 47 SHORT TERM RESOURCES 84 BANK DEPOSIT 17 OTHER INTERBANK LOANS 31 15% 19% MEDIUM/LONG TERM CLIENT RELATED 157 RESOURCES** 89 13% TRADING A
Slide 65: Short term wholesale funding
SUPPLEMENT – FUNDING ANALYSIS SHORT TERM WHOLESALE FUNDING Share of short term wholesale financing Short term wholesale resources* (in EUR bn) in the funded balance sheet* and short term needs coverage** (%) 222% 214% 202% 204% 207% 169% 145% 15% 100 9% 8% 58 56 55 55 8% 7% 7% 52 47 6% 2013 2014 Q3
Slide 66: Liquid asset buffer
SUPPLEMENT – FUNDING LIQUID ASSET BUFFER Liquid asset buffer (in EUR bn) 166 167 166 175 157 CENTRAL BANK DEPOSITS(1) 64 64 72 98 64 HIGH QUALITY LIQUID ASSET SECURITIES(2) 90 91 82 78 64 CENTRAL BANK ELIGIBLE 12 13 11 13 14 ASSETS(2) Q3 15 Q4 15 * Q1 16 Q2 16 Q3 16 Liquidity Coverage Ratio at 144
Slide 67: EPS calculation
SUPPLEMENT – SHARE EPS CALCULATION Average number of shares (thousands) 9M 16 2015 9M 15 Existing shares 807,188 805,950 805,877 Deductions Shares allocated to cover stock option plans 4,116 3,896 3,918 andfree shares awarded to staff Other ownshares and treasury shares 4,478 9,551 10,511 Number of
Slide 68: Net asset value, tangible net asset value
SUPPLEMENT – SHARE NET ASSET VALUE, TANGIBLE NET ASSET VALUE End of period 9M 16 2015 9M 15 Shareholders' equity Group share 60,886 59,037 57,906 Deeply subordinated notes (10,232) (9,552) (9,365) Undated subordinated notes (372) (366) (357) Interest net of tax payable to holders of deeply subordina
Slide 69: ROE equity
SUPPLEMENT – SHARE ROE EQUITY End of period 9M 16 2015 9M 15 Shareholders' equity Group share 60,886 59,037 57,906 Deeply subordinated notes (10,232) (9,552) (9,365) Undated subordinated notes (372) (366) (357) Interest net of tax payable to holders of deeply subordinated notes & undated subordinate
Slide 70: Methodology (1/5)
TECHNICAL SUPPLEMENT METHODOLOGY (1/5) 1 – The Group’s consolidated results as at September 30th, 2016 were examined by the Board of Directors on November 2nd, 2016. The financial information presented in respect of Q3 and the nine-month period ended September 30th, 2016 has been prepared in accorda
Slide 71: Methodology (2/5)
TECHNICAL SUPPLEMENT METHODOLOGY (2/5) Q3 16 Q3 15 9M 16 9M 15 Net Cost of Risk (EUR m) 172 194 495 574 French Retail Banking Gross loan outstandings (EUR m) 189,232 183,846 188,244 180,299 Cost of Risk in bp 36 42 35 42 Net Cost of Risk (EUR m) 201 265 602 883 International Retail Banking and Gross
Slide 72: Methodology (3/5)
TECHNICAL SUPPLEMENT METHODOLOGY (3/5) 11- Funded balance sheet, loan/deposit ratio, liquidity reserve The funded balance sheet is based on the Group financial statements. It is obtained in two steps: A first step aiming at reclassifying the items of the financial statements into aggregates allowing
Slide 73: Methodology (4/5)
TECHNICAL SUPPLEMENT METHODOLOGY (4/5) ASSETS in EUR bn ASSETS (Geur) LIABILITIES in EUR bn LIABILITIES (Geur) Accounting financial statement Q3-16 Economic balance sheet Q3-16 Accounting financial statement Q3-16 Economic balance sheet Q3-16 Cash, due from central banks 87 Due to central banks 3 Ca
Slide 74: Methodology (5/5)
TECHNICAL SUPPLEMENT METHODOLOGY (5/5) In EUR bn Economic balance sheet Q3-16 Funded balance sheet Q3-16 Variations Cash, due from central banks 87 Net central bank deposits 84 -3 Interbank loans 31 Interbank loans 31 Trading securities 83 Client related trading assets 89 6 AFS and HTM securities 67
Slide 75: Investor Relations Team
INVESTOR RELATIONS TEAM +33 (0) 1 42 14 47 72 [email protected] www.societegenerale.com/en/investors