Societe Generale S.a. Class A · EURONEXT:GLE
Societe Generale S.a. Class A — Debt Investor Presentation (June 2014)
75 slides from Societe Generale S.a. Class A's debt investor presentation, June 2014
Slide 1: Presentation to Debt Investors June 2014
SOCIETE GENERALE PRESENTATION TO DEBT INVESTORS JUNE 2014
Slide 2: Disclaimer
DISCLAIMER This document may contain a number of forecasts and comments relating to the targets and strategies of the Societe Generale Group. These forecasts are based on a series of assumptions, both general and specific, notably - unless specified otherwise - the application of accounting principl
Slide 3: Table of Contents
TABLE OF CONTENTS LATEST QUARTERLY RESULTS AND GROUP OVERVIEW CAPITAL AND LIQUIDITY RISKS RATINGS KEY FIGURES APPENDICES PRESENTATION TO DEBT INVESTORS | P.3
Slide 4: Latest Quarterly Results and Group Overview
LATEST QUARTERLY RESULTS AND GROUP OVERVIEW CAPITAL AND LIQUIDITY RISKS RATINGS KEY FIGURES APPENDICES PRESENTATION TO DEBT INVESTORS | P.4
Slide 5: 2014-2016: A New Phase of Development for Societe Generale
SOCIETE GENERALE GROUP 2014-2016: A NEW PHASE OF DEVELOPMENT FOR SOCIETE GENERALE We are a leading European Universal Bank with an international reach and solid roots • 150 years of existence dedicated to accompanying corporate and retail clients internationally • Demonstrated ability to grow, resis
Slide 6: What Makes Societe Generale Different
SOCIETE GENERALE GROUP WHAT MAKES SOCIETE GENERALE DIFFERENT OUR CLIENT We are a relationship bank, with a strong focus on satisfying our clients RELATIONSHIP MODEL OUR HISTORICAL We have a long-standing and demonstrated track record in financing and EXPERTISE IN CIB advising corporate and instituti
Slide 7: A Universal Model Based on Complementary Pillars with Leading Franchises
SOCIETE GENERALE GROUP A UNIVERSAL MODEL BASED ON 3 COMPLEMENTARY PILLARS WITH LEADING FRANCHISES Strong market positions across businesses Refocused on core franchises following portfolio optimisation since 2010 Organisational simplification and streamlining achieved in 2013 INTERNATIONAL RETAIL BA
Slide 8: A Good Geographical Balance
SOCIETE GENERALE GROUP A GOOD GEOGRAPHICAL BALANCE Recurring earnings from mature countries 2013 NBI BREAKDOWN (EUR 23bn) Exposure to fast-growing emerging markets EMERGING: ca. 25% LATIN AMERICA A balance to be maintained going forward AFRICA RUSSIA 1% 5% ‘B to C’ activities to remain focused on th
Slide 9: Q1 14: Solid Business Results
SOCIETE GENERALE GROUP Q1 14: SOLID BUSINESS RESULTS NBI excluding revaluation of own financial liabilities and DVA: EUR 5.8bn, +3.3% vs. Q1 13 Good operational performance, Stable cost base, +0.2%** vs. Q1 13. Net allocation to provisions down -27.1%** vs. Q1 13 positive momentum Impairment of Russ
Slide 10: Capital and Liquidity
LATEST QUARTERLY RESULTS AND GROUP OVERVIEW CAPITAL AND LIQUIDITY RISKS RATINGS KEY FIGURES APPENDICES PRESENTATION TO DEBT INVESTORS | P.10
Slide 11: Solid Solvency Ratios
SOCIETE GENERALE GROUP SOLID SOLVENCY RATIOS Fully loaded Basel 3 CET1 ratio: 10.1%(1) at end- March 2014 • Significant buffer above 2019 minimum required level Basel 3 solvency capital ratios (8% CBR) including G-SIFI requirement Tier 1 ratio at 12.1%(2) at end-March 2014 ≥15% 13.7% Total Capital R
Slide 12: Robust Balance Sheet
SOCIETE GENERALE GROUP ROBUST BALANCE SHEET EUR 1.3trn balance sheet out of which EUR 0.6trn Group Balance Sheet In EUR bn funded balance sheet 1 266 1 266 • Excluding contribution of insurance INSURANCE 101 101 INSURANCE • Netting of derivatives, repos and other assets and liabilities DERIVATIVES 1
Slide 13: Strengthened Funding Structure
SOCIETE GENERALE GROUP STRENGHTENED FUNDING STRUCTURE Significant shift towards stable resources vs. Funded Balance Sheet short term funding In EUR bn • Short term funding at 15% of funded balance sheet, CENTRAL 669 669 BANKS down vs. 25% at mid-2011 33 623 623 SHORT TERM INTERBANK RESOURCES 41 • De
Slide 14: Short Term Funding: Decreasing Reliance and Sound Profile
SOCIETE GENERALE GROUP SHORT TERM FUNDING: DECREASING RELIANCE AND SOUND PROFILE Tight management of short term wholesale funding Short term wholesale resources (in EUR bn bn)) • Down by EUR 21bn since December 2012 • To be reduced to EUR 70-60bn by end-2014 and EUR 60bn by end-2016 Access to a dive
Slide 15: Liquidity Reserve Well in Excess of Short Term Needs
SOCIETE GENERALE GROUP LIQUIDITY RESERVE WELL IN EXCESS OF SHORT TERM NEEDS Significant increase of the Group’s liquidity Group liquidity reserve (EUR bn) reserve from EUR 134bn mid-2011 to EUR 175 174 160bn end of March 2014 154 153 164 160 60 76 58 53 CASH AT CENTRAL 58 58 BANKS (1) Liquidity rese
Slide 16: Diversified Access to Long Term Funding Sources
SOCIETE GENERALE GROUP DIVERSIFIED ACCESS TO LONG TERM FUNDING SOURCES Long term funding breakdown as of 31/03/2014 Access to diversified and complementary investor bases through: LT Interbank liabilities(3) Subordinated debt(4) • Subordinated debt Subsidiaries(2) 6% 11% 11% • Senior vanilla issuanc
Slide 17: Long Term Funding Programme
SOCIETE GENERALE GROUP LONG TERM FUNDING PROGRAMME SG 5 year secondary conditions 2014 long term programme of ~EUR 20/22bn: (in bp – spread to Mid Swap) EUR 10.6bn raised at 26 May 2014, representing 400 ca. 50% of planned issuance 350 • Subordinated debt issued: EUR 1.7bn 300 250 • Senior debt issu
Slide 18: Societe Generale Will Continue to Improve Its Balance Sheet Metrics
SOCIETE GENERALE GROUP SOCIETE GENERALE WILL CONTINUE TO IMPROVE ITS BALANCE SHEET METRICS Additional steps to reinforce capital and funding structure Targets 2013 Q1 14 2016 • Tier 1 and Total Capital ratios to be raised further • Short term wholesale funding to be reduced to EUR 60- CET1(2) 10.0%
Slide 19: Risks
LATEST QUARTERLY RESULTS AND GROUP OVERVIEW CAPITAL AND LIQUIDITY RISKS RATINGS KEY FIGURES APPENDICES | P.19
Slide 20: Decrease in Cost of Risk
SOCIETE GENERALE GROUP DECREASE IN COST OF RISK Cost of risk French Retail Banking (in bp)(1, 1, 2, 3) • Decrease, mainly on corporates Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 International Retail Banking and Financial Services: trend towards normalisation confirmed 68 61 63 74 FRENCH RETAIL BANKING (1) • Pro
Slide 21: Cost of Risk to Normalise
SOCIETE GENERALE GROUP COST OF RISK TO NORMALISE GROUP COST OF RISK 106 in bp(1) (2) Significant decrease in cost of risk in EUR bn(2) 83 • 2016 Group cost of risk: 55-60 bp 71 75 75 67 65 55-60 4.3 2.7 3.8 French Retail Banking 3.4 3.2 3.1 22 23 16 2.4 • Expected to decrease gradually thanks to low
Slide 22: Doubtful Loans
SOCIETE GENERALE GROUP DOUBTFUL LOANS In EUR bn 31/12/2012 31/12/2013 31/03/2014 Gross book outstandings* 417.6 416.7 415.4 Doubtful loans 23.8 24.9 24.9 Collateral relating to doubtful loans 6.1 7.3 6.4 Provisionable commitments 17.7 17.5 18.5 Net non performing loans ratio 4.2% 4.2% 4.5% (Provisio
Slide 23: Reduced Market Risk
SOCIETE GENERALE GROUP REDUCED MARKET RISK VAR VaR (99% confidence level, 1 day horizon) • Despite a more conservative model, VaR in a narrow range around EUR 30m 70 48 46 50 46 45 42 45 41 36 41 34 34 30 32 30 27 27 25 23 30 23 25 22 Stress Tests • Significant reduction: -61% vs. Q4 07 despite Q4 0
Slide 24: Ratings
LATEST QUARTERLY RESULTS AND GROUP OVERVIEW CAPITAL AND LIQUIDITY RISKS RATINGS KEY FIGURES APPENDICES PRESENTATION TO DEBT INVESTORS | P.24
Slide 25: Credit Ratings Overview
SOCIETE GENERALE GROUP CREDIT RATINGS OVERVIEW DBRS Fitch Ratings Moody's Standard & Poor's Latest rating date 30/05/2013 26/03/2014 29/05/2014 25/10/2012 Senior Long-term debt AA (low) A A2 A Outlook Negative Negative Negative Negative Senior Short-term debt R-1 (middle) F1 Prime-1 A-1 Tier 2 subor
Slide 26: Key Figures
LATEST QUARTERLY RESULTS AND GROUP OVERVIEW CAPITAL AND LIQUIDITY RISKS RATINGS KEY FIGURES APPENDICES PRESENTATION TO DEBT INVESTORS | P.26
Slide 27: Consolidated Results
SOCIETE GENERALE GROUP CONSOLIDATED RESULTS Net banking income: EUR 5.7bn in Q1 14 Group results (in EUR m) • Revenues excluding revaluation of own financial liabilities and DVA: EUR 5.8bn, +3.3% vs. Q1 13 In EUR m Q1 13 Q1 14 Change • Stable* revenues in French Retail Banking Net banking income 4,9
Slide 28: Quarterly Results by Core Business
SOCIETE GENERALE GROUP QUARTERLY RESULTS BY CORE BUSINESS International Retail French Retail Banking and Global Banking and Banking Financial Services Investor Solutions Corporate Centre Group Q1 13 Q1 14 Q1 13 Q1 14 Q1 13 Q1 14 Q1 13 Q1 14 Q1 13 Q1 14 Net banking income 2,070 2,073 1,932 1,818 2,26
Slide 29: Corporate Centre
SOCIETE GENERALE GROUP CORPORATE CENTRE(1) Impact from revaluation of own financial liabilities Corporate Centre results • EUR -158m before tax (vs. EUR -1,045m in Q1 13) (in EUR m) GOI excluding revaluation of own financial Q1 13 Q1 14 liabilities: EUR -208m in Q1 14 (vs. EUR -297m Net banking inco
Slide 30: Appendices
LATEST QUARTERLY RESULTS AND GROUP OVERVIEW CAPITAL AND LIQUIDITY RISKS RATINGS KEY FIGURES APPENDICES PRESENTATION TO DEBT INVESTORS | P.30
Slide 31: Our Strategic Priorities for the Medium-Term: Keeping the Pace
APPENDICES – GROUP OVERVIEW AND STRATEGY OUR STRATEGIC PRIORITIES FOR THE MEDIUM-TERM KEEPING THE PACE THREE STRATEGIC PRIORITIES FOR THE GROUP GROUP FURTHER IMPROVE CLIENT SERVICE, ADAPTATION COMPLETED MAINTAIN LEADERSHIP OUR OBJECTIVES IN INNOVATION FOR 2016 REINFORCED BALANCE SHEET NBI: +3% CAGR
Slide 32: Further Improve Client Service, Maintain Leadership in Innovation
APPENDICES – GROUP OVERVIEW AND STRATEGY FURTHER IMPROVE CLIENT SERVICE, MAINTAIN LEADERSHIP IN INNOVATION INCREASE DIGITAL READINESS: PROFOUND INTERNAL TRANSFORMATION OF CULTURE AND IT SYSTEMS A major internal push since 2010 To foster a digital mindset among teams We want our innovation to be and
Slide 33: Capture Growth Through Business Developments
APPENDICES – GROUP OVERVIEW AND STRATEGY CAPTURE GROWTH THROUGH BUSINESS DEVELOPMENTS… ALL BUSINESSES TO CONTRIBUTE TO GROWTH 2013-2016 NBI CAGR 10% Africa Asia Eastern Europe Germany Russia Global Transaction Banking Financing & Advisory Online Banking Insurance 5% Equipment Finance ALD Private Ban
Slide 34: ...and Increased Revenue Synergies
APPENDICES – GROUP OVERVIEW AND STRATEGY …AND INCREASED REVENUE SYNERGIES FIRM-WIDE CROSS-SELLING REVENUES: EUR 5.5bn* IN 2013 Representing 25% of total Group revenues: one of the highest levels across the industry. Up +14% vs. 2011: growing faster than total Group revenues Value-enhancing for our c
Slide 35: Deliver Sustainable Profitability: Discipline in Allocating Capital
APPENDICES – GROUP OVERVIEW AND STRATEGY DELIVER SUSTAINABLE PROFITABILITY: DISCIPLINE IN ALLOCATING CAPITAL Maintain balanced capital allocation BUSINESS RWA* 2016E (BASEL 3) • Retail banking activities: basis of our Universal Banking model • Share of market activities to remain limited to 20% Prof
Slide 36: Developing Franchises While Maintaining a Balanced Business Mix
APPENDICES – GROUP OVERVIEW AND STRATEGY DEVELOPING FRANCHISES WHILE MAINTAINING A BALANCED BUSINESS MIX RWA(1) Business RWA Reinvested capital to allow business RWA to (2013-2016 CAGR in %) (EUR 364bn) grow +4%(1) p.a. on average between 2013 o.w. Global and 2016 Markets (20%) Group: 4% Revenue gro
Slide 37: Business Initiatives and Synergies Driving Revenue Growth
APPENDICES – GROUP OVERVIEW AND STRATEGY BUSINESS INITIATIVES AND SYNERGIES DRIVING REVENUE GROWTH 2016 REVENUE TARGETS (IN EUR BN, CAGR IN %) Retail activities French Retail Banking • Strong franchises and business initiatives to support RBDF: +1%(1) IBFS: +5%(1) development and to compensate for l
Slide 38: Gradual Rebalancing of Corporate Centre
APPENDICES – GROUP OVERVIEW AND STRATEGY GRADUAL REBALANCING OF CORPORATE CENTRE The Corporate Centre covers two main central functions: 1. Capital, financial investments and real 1. Already allocated to businesses estate management 2. Liquidity and treasury management • Group ALM activity • Managem
Slide 39: Cost/Income Ratio to Drop to 62% by 2016
APPENDICES – GROUP OVERVIEW AND STRATEGY COST/INCOME RATIO TO DROP TO 62% BY 2016 2013-2016 NBI AND OPERATING EXPENSE CAGR (IN %)(1) NBI CAGR 5% Average annual growth in operating expenses OPEX CAGR limited to +1% (1) • Additional investments to support business development 3% 3% • Increased regulat
Slide 40: Group ROE Above 10% in 2016
APPENDICES – GROUP OVERVIEW AND STRATEGY GROUP ROE ABOVE 10% IN 2016 SUPPORTED BY IMPROVED BUSINESS PERFORMANCE Normative ROE of businesses expected at BUSINESS NORMATIVE ROE 15% post tax (equity allocated based on 10% of Basel 3 RWA) 17% 17% 16% • Retail Banking divisions to show normative ROE 15%
Slide 41: Use of Capital Generated Over 2014-2016 Period
APPENDICES – GROUP OVERVIEW AND STRATEGY USE OF CAPITAL GENERATED OVER 2014-2016 PERIOD 2014-2016 CAPITAL MANAGEMENT Significant capital generation EUR ~13bn Dynamic business development generating Others(2) additional RWA, consuming ca. EUR 4bn of EUR capital ~4bn 2015-2016 target payout ratio to s
Slide 42: 2016 Financial Targets
APPENDICES – GROUP OVERVIEW AND STRATEGY 2016 FINANCIAL TARGETS 2013 2016 targets GROWTH REVENUES EUR 24bn(1) +3% CAGR EFFICIENCY COST/INCOME RATIO 66%(1) 62% PROFITABILITY RETURN ON EQUITY 8.3%(1) ≥10% BASEL 3 FULLY LOADED CET1 10% ≥10% SOLVENCY PAYOUT RATIO 27% 50% 2016 EPS: EUR 6 (1) 2013 figures
Slide 43: French Banking Market: Solid Fundamentals
APPENDICES - FRENCH RETAIL BANKING FRENCH BANKING MARKET: SOLID FUNDAMENTALS RISING POPULATION 2010 – 2030 HIGH HOUSEHOLD SAVINGS RATE (in %) (% of income) 16% 15% UK 10.6 13% 13% France 9.6 11% Belgium 6.6 Spain 4.4 5% Italy 1.2 Europe -0.5 Germany -4.2 UK Spain Italy Euro Zone France Germany Sourc
Slide 44: Three Strong, Differentiated and Complementary Brands
APPENDICES - FRENCH RETAIL BANKING THREE STRONG, DIFFERENTIATED AND COMPLEMENTARY BRANDS A universal bank with wide geographical coverage in Key figures Change France French Retail 2013 vs 2010 Banking A bank with recognised expertise An innovative bank, leading the market in terms of Employees 39,3
Slide 45: Stronger Growth than Peers
APPENDICES - FRENCH RETAIL BANKING STRONGER GROWTH THAN PEERS RESILIENT REVENUES CONSISTENT CUSTOMER GROWTH ACROSS ALL MARKETS Cumulative growth in NBI + 31% 2004-2013 at current scope Number of Individual customers + 30% + 28% + 25% + 25% + 24% Boursorama Networks 2010 2013 Number of Professionals
Slide 46: Change in Net Banking Income
APPENDICES - FRENCH RETAIL BANKING CHANGE IN NET BANKING INCOME 2,070 2,119 2,086 2,161 2,073 NBI in EUR m Commissions: 0.0% vs. Q1 13 164 163 183 Financial commissions 170 184 • Financial commissions: +8.1% • Service commissions: -2.1% Service commissions 699 696 708 654 669 Other Interest margin:
Slide 47: Customer Deposits and Financial Savings
APPENDICES - FRENCH RETAIL BANKING CUSTOMER DEPOSITS AND FINANCIAL SAVINGS Change Average outstandings Q1 14 vs. Q1 13 in EUR bn 263.9 266.1 268.0 +4.3% 256.9 260.8 LIFE INSURANCE 84.4 +3.0% Financial 82.3 82.8 83.4 81.9 savings: EUR 108.3bn MUTUAL FUNDS +0.5% 22.4 -7.4% 22.2 22.7 22.9 OTHERS 24.2 1
Slide 48: Loan Outstandings
APPENDICES - FRENCH RETAIL BANKING LOAN OUTSTANDINGS(1) Change Average outstandings 180.6 180.1 Q1 14 vs. Q1 13 in EUR bn 178.0 176.6 176.0 -2.5% INDIVIDUAL CUSTOMERS 85.9 85.9 85.8 85.2 -1.0% o.w.: 85.1 - HOUSING - CONSUMER 11.6 11.5 CREDIT AND 11.4 11.3 11.3 -2.7% OVERDRAFT BUSINESS CUSTOMERS* 81.
Slide 49: Quarterly Results
APPENDICES - INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES QUARTERLY RESULTS International Financial retail Banking Services to Insurance Other Total (1) corporates In EUR m Q1 13 Q1 14 Change Q1 13 Q1 14 Change Q1 13 Q1 14 Change Q1 13 Q1 14 Q1 13 Q1 14 Change Net banking income 1,478 1,332 +
Slide 50: Quarterly Results: Breakdown by Zone
APPENDICES - INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES QUARTERLY RESULTS : BREAKDOWN BY ZONE Africa, Asia, Total Mediterranean Western Europe Czech Republic Romania Russia (1) Other Europe International basin and retail Banking Overseas (2) In EUR m Q1 13 Q1 14 Q1 13 Q1 14 Q1 13 Q1 14 Q1 1
Slide 51: Leading Franchises with Recognised Expertise: Banks & Insurance
APPENDICES - INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES LEADING FRANCHISES WITH RECOGNISED EXPERTISE: BANKS & INSURANCE EUROPE (18 countries) #2 largest bank by presence in CEE* • Czech Republic: #3 banking Group • Romania: #2 bank • Poland: ca. 500 branches Germany: leading positions in Fi
Slide 52: Leading Franchises: Financial Services to Corporates
APPENDICES - INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES LEADING FRANCHISES WITH RECOGNISED EXPERTISE: FINANCIAL SERVICES TO CORPORATES ALD: a leader in multi-brand, car renting and fleet management ALD SGEF SGEF: unique expertise in Equipment Finance COUNTRIES 37 35 RANKING EUROPE #2 #1 Ext
Slide 53: Reshaped Business Models Attuned to a Post-Crisis Environment
APPENDICES - INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES RESHAPED BUSINESS MODELS ATTUNED TO A POST-CRISIS ENVIRONMENT INTERNATIONAL RETAIL: LOAN TO DEPOSIT RATIO (%) 144% Funding: a successful move towards a more self- funded model • International Retail Banking: +EUR 10bn additional deposi
Slide 54: Our Diversified Model Can Deliver Growth
APPENDICES - INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES OUR DIVERSIFIED MODEL CAN DELIVER GROWTH 2013-2016 PROJECTED INCREASE Fuelling businesses to accompany growth IN NBI AND BASEL 3 RWA (%) • RWA : +5% average annual growth in 2013-2016 NBI CAGR 12% MATURE MARKETS EMERGING MARKETS • Furt
Slide 55: Loan and Deposit Outstandings Breakdown
APPENDICES - INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES LOAN AND DEPOSIT OUTSTANDINGS BREAKDOWN Loan outstandings breakdown Deposit outstandings breakdown (in EUR bn bn)) (in EUR bn bn)) Change Change MAR. 14 vs. MAR. 13 MAR. 14 vs. MAR. 13 -3%* O.w. EQUIPMENT 15.9 FINANCE(1) -10%* 1.5 15.1
Slide 56: Financial Services to Corporates and Insurance Key Figures
APPENDICES - INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES FINANCIAL SERVICES TO CORPORATES AND INSURANCE KEY FIGURES Premiums Number of vehicles (In EUR bn bn)) (in thousands) Change Q1 14 vs. Q1 13 Change 963 979 988 1,009 1,050 +9.1% Q1 14 vs. Q1 13 204 211 200 201 PROPERTY AND 244 275 231
Slide 57: Quarterly Results
SUPPLEMENT – GLOBAL BANKING AND INVESTOR SOLUTIONS QUARTERLY RESULTS Asset & Wealth Securities Services Total Global Banking and Global Markets (1) Financing and Advisory Management and Brokerage Investor Solutions Q1 13 Q1 14 Change Q1 13 Q1 14 Change Q1 13 Q1 14 Change Q1 13 Q1 14 Change Q1 13 Q1
Slide 58: Solid Recurrent Revenue Base from Client-Oriented Activities
APPENDICES - GLOBAL BANKING AND INVESTOR SOLUTIONS SOLID RECURRENT REVENUE BASE FROM CLIENT-ORIENTED ACTIVITIES MIX GEARED TOWARDS ACTIVITIES RESULTING IN A REMARKABLY RESILIENT WITH STABLE REVENUES REVENUE PROFILE(2) (in EUR bn) Asset inventory Stable internal 8.6 8.6 8.6 TOTAL based activities flo
Slide 59: Geographical Footprint Adapted to Our Clients' Needs
APPENDICES - GLOBAL BANKING AND INVESTOR SOLUTIONS GEOGRAPHICAL FOOTPRINT ADAPTED TO OUR CLIENTS’ NEEDS ASIA PACIFIC WESTERN EUROPE 2,000 staff in key markets Fully fledged platform (Hong Kong, Japan, Korea, Singapore) and EUR 1.2bn revenues West. Franchises in Structured Products, Flow Europe Equit
Slide 60: Global Markets: Business Mix Key to Profitability
APPENDICES - GLOBAL BANKING AND INVESTOR SOLUTIONS GLOBAL MARKETS: BUSINESS MIX KEY TO PROFITABILITY INDUSTRY(1) SG CIB HIGH SG CIB Growth(2) Profitability Mix MIX MARKET SHARES(1) 100% Prime Services + 5% 5% Right-sized cash equity 8% 8% EMEA OTC Derivatives Flow Equity Cash Equity - 13%90% Leaders
Slide 61: 2016 Financial Targets by Business Line
APPENDICES - GLOBAL BANKING AND INVESTOR SOLUTIONS 2016 FINANCIAL TARGETS 2016 FINANCIAL TARGETS BY BUSINESS LINE NBI CAGR(1) Cost/ Income Post-tax ROE (in EUR bn) Global Markets Global Markets 4.9 +1% ca. 65% 16% > & Investor Services Investor Services 1.3 +12%(2) ca. 90% ca. 13% > Financing & Advi
Slide 62: Key Figures
SUPPLEMENT – GLOBAL BANKING AND INVESTOR SOLUTIONS KEY FIGURES Global Markets revenues Asset & Wealth Management revenues (in EUR m) (in EUR m) 744 4 7 620 556 8 8 6 578 FIXED INCOME, 408 38 47 OTHERS CURRENCIES & 50 48 COMMODITIES 52 (incl. Legacy LYXOR assets) 688 205 231 227 207 629 621 621 646 E
Slide 63: Key Figures
SUPPLEMENT – GLOBAL BANKING AND INVESTOR SOLUTIONS KEY FIGURES Private Banking: Assets under management(1) Lyxor:: Assets under management(2) Lyxor (in EUR bn bn)) (in EUR bn bn)) 114 79 80 84 88 84 84 84 75 72 MAR. 13 JUNE 13 SEPT. 13 DEC. 13 MAR. 14 MAR. 13 JUNE 13 SEPT. 13 DEC. 13 MAR. 14 Securit
Slide 64: Risk-Weighted Assets
APPENDICES – RISK MANAGEMENT RISK-WEIGHTED ASSETS* (CRR/CRD 4, in EUR bn) 88.9 94.7 97.3 115.2 108.4 145.3 123.3 17.5 366.7 342.6 345.4 TOTAL 103.9 126.7 17.3 16.2 41.0 27.7 OPERATIONAL 40.6 43.6 MARKET 26.0 CREDIT 26.3 28.2 5.7 28.4 0.1 26.5 6.3 25.0 3.8 4.4 0.0 6.4 0.0 3.2 0.4 0.2 0.1 25.2 26.5 29
Slide 65: GIIPS Sovereign Exposures
APPENDICES – RISK MANAGEMENT GIIPS SOVEREIGN EXPOSURES(1) Net exposures(2) (in EUR bn bn)) 31.03.2014 31.12.2013 Dont positions en Dont positions en Dont positions en Dont positions en Total Total banking trading banking trading Grèce 0.0 0.0 0.0 0.0 0.0 0.0 Irlande 0.0 0.1 0.0 0.1 0.0 0.0 0.0 0.0 I
Slide 66: Insurance Subsidiaries' Exposures to GIIPS Sovereign Risk
APPENDICES – RISK MANAGEMENT INSURANCE SUBSIDIARIES' EXPOSURES TO GIIPS SOVEREIGN RISK Exposures in the banking book (in EUR bn) 31.03.2014 31.12.2013 Gross exposure Net exposure Gross exposure Net exposure (1) (2) (1) (2) Greece 0.0 0.0 0.0 0.0 Ireland 0.4 0.0 0.4 0.0 Italy 2.3 0.1 2.3 0.1 Portugal
Slide 67: Group Exposure to GIIPS Non Sovereign Risk
APPENDICES – RISK MANAGEMENT GROUP EXPOSURE TO GIIPS NON SOVEREIGN RISK(1) On- On-and off off--balance sheet EAD (in EUR bn bn)) 0.4 1.7 13.4 0.7 10.8 0.1 4.9 0.1 RETAIL 0.1 7.5 SECURITISATION CORPORATES 7.0 FINANCIAL INSTITUTIONS (INCL. LOCAL GOVERNMENTS) 0.2 3.0 0.3 1.3 0.5 0.3 1.3 0.2 GREECE IREL
Slide 68: Change in Gross Book Outstandings
SUPPLEMENT - RISK MANAGEMENT CHANGE IN GROSS BOOK OUTSTANDINGS* End of period in EUR bn 439.8 443.2 433.5 413.8 430.9 421.4 414.0 411.2 409.8 127.2 129.5 121.9 121.8 Global Banking and 105.7 115.0 111.4 109.2 108.6 Investor Solutions International Retail 125.5 126.4 124.2 119.0 118.9 118.4 Banking &
Slide 69: CRR/CRD4 Prudential Capital Ratios
APPENDICES – CAPITAL AND FUNDING CRR/CRD4 PRUDENTIAL CAPITAL RATIOS 31 Dec.13 31 Mar.14 In EUR bn Shareholder equity group share 51.0 51.1 Deeply subordinated notes* (6.6) (6.6) Undated subordinated notes* (0.4) (0.4) Dividend to be paid & interest on subordinated notes (0.9) (1.1) Goodwill and inta
Slide 70: Capital Requirement and MDA
APPENDICES – CAPITAL AND FUNDING CAPITAL REQUIREMENT AND MDA CRR/CRD4 Capital ratios Buffer to coupon restrictions, using the reported 10.1% Q1 2014 fully-loaded TOTAL CAPITAL CET1 ratio vs. Combined buffer requirement** 13,5% RATIO 10.1%* c. €16bn c. €13bn c. €10bn c. €7bn 1,7% TIER 2 4.725% 3.85%
Slide 71: CRR Leverage Ratio
APPENDICES – CAPITAL AND FUNDING CRR LEVERAGE RATIO CRR Leverage ratio(1) (1) In EUR bn 31 Mar.14 Tier 1 capital 40.8 Total IFRS Balance sheet 1,266 Adjustement related to derivatives exposures (49) Adjustement related to securities financing transactions * (180) Off-balance sheet (loan and guarante
Slide 72: Details on Group Funding Structure
APPENDICES – CAPITAL AND FUNDING DETAILS ON GROUP FUNDING STRUCTURE 31 December 2013* 31 March 2014 * Restated further to the coming into force of IFRS 10 and 11 as from 1st Jan. 2014 334 316 DUE TO CUSTOMERS o.w. Securities sold to customers under repurchase agreements : EUR 20 bn o.w. Securities s
Slide 73: Non Economic and Other Restated Items
APPENDICES - OTHER NON ECONOMIC AND OTHER RESTATED ITEMS Net banking Operating Group net Q1 14 income expenses Others Cost of risk income Revaluation of own financial liabilities* (158) (104) Corporate Centre Accounting impact of DVA* 5 3 Group Accounting impact of CVA (stock effect) 52 37 Group Imp
Slide 74: Restated Items Q1 13
APPENDICES - OTHER LEADING FRANCHISES WITH RECOGNISED EXPERTISE: BANKS & INSURANCE Net banking Operating Group net Q1 13 income expenses Others Cost of risk income Legacy assets (10) (18) (35) (45) Global Banking and Investor Solutions Revaluation of own financial liabilities (1,045) (685) Corporate
Slide 75: Investor Relations Team
INVESTOR RELATIONS TEAM HANS VAN BEECK, ANTOINE LOUDENOT, STÉPHANE DEMON, MARION GENAIS, KIMON KALAMBOUSSIS, MURIEL KHAWAM, LUDOVIC WEITZ +33 (0) 1 42 14 47 72 [email protected] www.investor.socgen.com 1ST QUARTER 2014 RESULT 7 MAY 2014 | P.75
Societe Generale — Debt Investor Presentation (June 2014) on 6ix