Societe Generale S.a. Class A · EURONEXT:GLE
Societe Generale S.a. Class A — Q3 2018 Earnings Presentation
71 slides from Societe Generale S.a. Class A's earnings presentation, Nov 8, 2018
Slide 1: Group Results 3rd Quarter and Nine Months 2018
S O C I E T E G E N E R AL E G RO UP RESULT S 3 RD Q U AR T E R AN D N I N E M O N T H S 2 0 1 8 08.11.2018 3RD QUARTER AND NINE MONTHS 2018 RESULTS 08.11.2018 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: Key Highlights
1 KEY HIGHLIGHTS 3RD QUARTER AND NINE MONTHS 2018 RESULTS 08.11.2018 3
Slide 4: Q3 18 Key Highlights
1 – KEY HI G HLI G HTS Q3 18 KEY HIGHLIGHTS REVENUES(1) UP +9.0% (+4.4% excluding Euroclear shares revaluation) 1 GROUP NET INCOME(1) AT EUR 1.25bn +16.1%, ROTE(1) AT 11.0% (11.0% in 9M 18) GROUP REFOCUSING UNDERWAY 2 Agreement signed to sell Euro Bank (Poland) to Bank Millennium FURTHER PROGRESS ON
Slide 5: Refocusing on our core franchises
1 – KEY HI G HLI G HTS REFOCUSING ON OUR CORE FRANCHISES Exiting non-synergetic businesses Strengthening our core franchises EXPRESS BANK (BULGARIA) EMC SG ALBANIA LUMO PRIVATE BANKING BELGIUM TAGPAY SELF TRADE BANK (BOURSORAMA SPAIN) EURO BANK (POLAND) Acquisition of Treezor, one of France’s pionee
Slide 6: At the forefront of positive transformations
1 – KEY HI G HL I G HTS AT THE FOREFRONT OF POSITIVE TRANSFORMATIONS No.1 in eCAC40 Awards 2018 1 Recognised as the most advanced CAC40 company in terms of digital transformation, across all evaluation criteria: digital culture, technological expertise, relationships with the innovative ecosystem, s
Slide 7: Group Results
2 GROUP RESULTS 1ST QUARTER 3RD QUARTER AND NINE 2018RESULTS MONTHS 2018 RESULTS 08.11.2018 04.05.2018 77
Slide 8: Q3 18: Revenues up 9.0%, Group net income at EUR 1.25bn
2 – G RO UP RESUL TS Q3 18: REVENUES(1) UP +9.0%, GROUP NET INCOME(1) AT EUR 1.25BN Revenues(1) Increase in revenues(1) (+9.0% vs. Q3 17, +4.4% excluding Euroclear Q3 18 9M 18 EUR 6.5bn EUR 19.3bn revaluation) +9.0% vs. Q3 17 +2.4% vs. 9M 17 Growth initiatives on track in French Retail Banking Stron
Slide 9: Low cost of risk
2 – G RO UP RESUL TS LOW COST OF RISK Cost of risk(1) (in bp) 38 29 25 FRENCH RETAIL 27 22 25 Low cost of risk reflecting good economic conditions 20 BANKING 9M 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 9M 18 INTERNATIONAL 27 33 34 37 28 23 29 RETAIL BANKING Cost of risk remains at a low level overall, write
Slide 10: Further improving the risk profile
2 – G RO UP RESUL TS FURTHER IMPROVING THE RISK PROFILE DIVERSIFIED STRICT CONTROL OF SOLID ASSET QUALITY GEOGRAPHICAL EXPOSURE MARKET RISK Prudent approach to country risk Sound credit risk profile Conservative market risk profile Steadily declining NPL Ratio No legacy books Gross doubt
Slide 11: Solid balance sheet and strong funding structure
2 – G RO UP RESUL TS SOLID BALANCE SHEET AND STRONG FUNDING STRUCTURE Q3 18: change in Fully-Loaded CET1(1) Ratio (in bp) CET1(1) at 11.2%, +8bp vs. Q2 18 Ca. Ca. +31bp +23bp -10bp Total capital ratio at 16.9%, +2bp vs. Q2 18 Hybrid coupons -3bp -15bp -6bp -1bp TLAC(2) ratio: 22.8% of RWA Already me
Slide 12: Group results
2 – G RO UP RESUL TS GROUP RESULTS In EURm Q3 18 Q3 17 Change 9M 18 9M 17 Change Net banking income 6,530 5,958 +9.6% +9.9%* 19,278 17,631 +9.3% +10.9%* Underlying net b anking income (1) 6,530 5,993 +9.0% +9.2%* 19,278 18,834 +2.4% +3.7%* Operating expenses (4,341) (4,001) +8.5% +8.6%* (13,473) (12
Slide 13: Business Performance
3 BUSINESS PERFORMANCE 3RD QUARTER AND NINE MONTHS 2018 RESULTS 08.11.2018 13
Slide 14: Revenue growth driven by international retail and rebound in markets
3 – BUSI NESS PERFO RMANCE REVENUE GROWTH DRIVEN BY INTERNATIONAL RETAIL AND REBOUND IN MARKETS INSURANCE AND GLOBAL BANKING FRENCH RETAIL INTERNATIONAL RETAIL CORPORATE FINANCIAL SERVICES AND INVESTOR BANKING BANKING CENTRE TO CORPORATES SOLUTIONS Development of Good commercial Steady growth in lif
Slide 15: Developing business initiatives
3 – BUSI NESS PERFO RMANCE – FRENCH RETAI L BANKI NG DEVELOPING BUSINESS INITIATIVES Increasing our Wealthy and +5.1% in number of wealthy and mass affluent clients* Mass affluent clients base Dynamic Private Banking France franchise with AuM of ca.EUR 64bn (+3.9% vs. T3-17), EUR 3.1bn net inflows i
Slide 16: A strong private banking platform serving our French clients
3 – BUSI NESS PERFO RMANCE – FRENCH RETAI L BANKI NG A STRONG PRIVATE BANKING PLATFORM SERVING OUR FRENCH CLIENTS Leading private banking platform Delivering growth > 480 000 clients EUR ca.129bn AuM Differentiated private banking value proposition for French Yearly revenues >EUR 1.0bn Accretive ROE
Slide 17: French Retail Banking results
3 – BUSI NESS PERFO RMANCE – FRENCH RETAI L BANKI NG FRENCH RETAIL BANKING RESULTS In EURm Q3 18 Q3 17 Change 9M 18 9M 17 Change Net banking income 1,949 1,914 +1.8% 5,948 5,963 -0.3% Revenues(1) +2.3% vs Q3 17 (-0.6% vs. 9M 17), Net b anking income excl. PEL/CEL 1,942 1,898 +2.3% 5,913 5,946 -0.6%
Slide 18: Good momentum in International Retail Banking
3 – BUSI NESS PERFO RMANCE – I NTERNATI O NAL RETAI L BANKI NG AND FI NA NCI AL SERVI CES GOOD MOMENTUM IN INTERNATIONAL RETAIL BANKING Q3 18 REVENUES UP +10%*, RONE AT 17.2%(1) Loans and Deposits (in EURbn – change vs. end-Q3 17) Strong Volume Growth in Europe and Higher +7.0%* 91.5 82.1 +6.4%* Tot
Slide 19: Highly profitable Financial Services and Insurance
3 – BUSI NESS PERFO RMANCE – I NTERNATI O NAL RETAI L BANKI NG AND FI NA NCI AL SERVI CES HIGHLY PROFITABLE FINANCIAL SERVICES AND INSURANCE Q3 18 REVENUES UP +4%*, RONE AT 19.6%(1) Developing the Bancassurance Model Good Momentum in Financial Services Life Insurance Outstandings (EURbn) ALD Fleet g
Slide 20: An efficient specialised consumer finance model
3 – BUSI NESS PERFO RMANCE – I NTERNATI O NAL RETAI L BANKI NG AND FI NA NCI AL SERVI CES AN EFFICIENT SPECIALISED CONSUMER FINANCE MODEL A Strong franchise Delivering growth Accretive to Group ROE Group Consumer Specialised Consumer Finance Loans(1) Finance Loans(2) Loan Outstandings (EURbn) Easter
Slide 21: International Retail Banking and Financial Services results
3 – BUSI NESS PERFO RMANCE – I NTERNATI O NAL RETAI L BANKI NG AND FI NA NCI AL SERVI CES INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES RESULTS In EURm Q3 18 Q3 17 Change 9M 18 9M 17 Change Net banking income 2,092 1,949 +7.3% +8.0%* 6,156 5,857 +5.1% +6.4%* Revenue growth momentum maintained
Slide 22: Improved Global Markets revenues
3 – BUSI NESS PERFO RMANCE – G L O BAL BANKI NG AND I NVESTO R SO L UTI O NS IMPROVED GLOBAL MARKETS REVENUES Global Markets & Investor Services revenues: +8% vs. Q3 17 Equities (in EURm) FICC (in EURm) Revenues +19% vs. Q3 17 Flat Revenues vs. Q3 17 651 659 696 593 535 580 498 496 514 494 Q3 17 Q4
Slide 23: Strong momentum in Financing and Advisory
3 – BUSI NESS PERFO RMANCE – G L O BAL BANKI NG AND I NVESTO R SO L UTI O NS STRONG MOMENTUM IN FINANCING AND ADVISORY Financing & Advisory revenues: +9% vs. Q3 17 Net Banking Income (in EURm) Successful Business Initiatives 800 800 Steady growth in Asset-Backed Products, operating on a worldwide ba
Slide 24: Global Banking and Investor Solutions results
3 – BUSI NESS PERFO RMANCE – G L O BAL BANKI NG AND I NVESTO R SO L UTI O NS GLOBAL BANKING AND INVESTOR SOLUTIONS RESULTS In EURm Q3 18 Q3 17 Change 9M 18 9M 17 Change Net banking income 2,178 2,022 +7.7% +7.5%* 6,805 6,980 -2.5% -0.2%* Revenue growth (+7.7% vs. Q3 17) reflecting the Operating expe
Slide 25: Corporate Centre
3 – BUSI NESS PERFO RMANCE – CO RPO RATE CENTRE CORPORATE CENTRE In EURm Q3 18 Q3 17 9M 18 9M 17 NBI impact of Euroclear revaluation : EUR +271m Net banking income 311 73 369 (1,169) Net b anking income (1) 311 20 369 (1,023) Operating expenses (173) 7 (431) (89) Gross operating income 138 80 (62) (
Slide 26: Conclusion
4 CONCLUSION 3RD QUARTER AND NINE MONTHS 2018 RESULTS 08.11.2018 26
Slide 27: Fully committed to delivering our strategic plan
4 – CO NCL USI O N FULLY COMMITTED TO DELIVERING OUR STRATEGIC PLAN GROW Underlying revenues up +4.4% (excluding Euroclear revaluation) vs. Q3 17 Development of growth initiatives FOSTER RESPONSIBILITY TRANSFORM Transformation on track in French Retail Putting litigation issues behind us Banking Rec
Slide 28: SG Digital Journey
4 – CO NCL USI O N SAVE THE DATE SG DIGITAL JOURNEY 22 NOVEMBER 2018 3RD QUARTER AND NINE MONTHS 2018 RESULTS 08.11.2018 28
Slide 29: Supplement
5 SUPPLEMENT BUILDING TEAM SPIRIT TOGETHER
Slide 30: Table of contents
5 – S U P P L E ME N T TABLE OF CONTENTS Societe Generale Group Quarterly income statement by core business 31 Insurance key figures 51 9M 18 income statement by core business 32 SG Russia results 52 Non economic and exceptional items 33 IFRIC 21 and SRF impact 34 Global Banking and Investor Solutio
Slide 31: Quarterly income statement by core business
5 – S U P P L E ME N T - S O C I E TE G E N E R A L E G R O U P 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 18 Q3 17 Q3 18 Q3 17 Q3 18 Q3 17 Q3 18 Q3 17
Slide 32: 9M 18 income statement by core business
5 – S U P P L E ME N T - S O C I E TE G E N E R A L E G R O U P 9M 18 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 18 9M 17 9M 18 9M 17 9M 18 9M 17 9M 18 9M 17 9M 1
Slide 33: Non economic and exceptional items
5 – S U P P L E ME N T - S O C I E TE G E N E R A L E G R O U P NON ECONOMIC AND EXCEPTIONAL ITEMS In EUR m Q3 18 Q3 17 Change 9M 18 9M 17 Change Business Net Banking Income 6,530 5,958 +9.6% 19,278 17,631 +9.3% Reevaluation of own financial liabilities* 53 (146) Corporate Centre DVA* 0 (6) Adjustme
Slide 34: IFRIC 21 and SRF impact
5 – S U P P L E ME N T - S O C I E TE G E N E R A L E G R O U P 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 18 9M 17 9M 18 9M 17 9M 18 9M 17 9M 18 9M 17 9M 18 9M 17 Total IF
Slide 35: CRR/CRD4 prudential capital ratios
5 – S U P P L E ME N T - S O C I E TE G E N E R A L E G R O U P CRR/CRD4 PRUDENTIAL CAPITAL RATIOS Fully Loaded Common Equity Tier 1, Tier 1 and Total Capital In EUR m 30/09/2018 31/12/2017 Shareholder equity Group share 60.1 59.4 Deeply subordinated notes* (9.2) (8.5) Undated subordinated notes* (0
Slide 36: CRR leverage ratio
5 – S U P P L E ME N T - S O C I E TE G E N E R A L E G R O U P CRR LEVERAGE RATIO CRR Fully Loaded Leverage Ratio(1) 30/09/2018 31/12/2017 In EUR bn Tier 1 Capital 49.9 48.9 Total prudential balance sheet (2) 1165 1,138 Adjustement related to derivative exposures (32) (61) Adjustement related to se
Slide 37: Strong TLAC ratio already in line with regulatory requirements
5 – S U P P L E ME N T - S O C I E TE G E N E R A L E G R O U P STRONG TLAC RATIO ALREADY IN LINE WITH REGULATORY REQUIREMENTS TLAC ratio Already meeting 2019 (19.5%) and 2022 (21,5%)(1) requirements % RWA(1) % Leverage 22.8% 19.5% Senior preferred 2.5% Senior unpreferred 3.3% Tier 2 Additional Tier
Slide 38: Risk-weighted assets
5 – S U P P L E ME N T - R I S K MA N A G E ME N T RISK-WEIGHTED ASSETS* (CRR/CRD 4, IN EUR BN) 363.1 364.7 352.9 136.5 137.1 48.9 48.9 128.3 48.7 17.1 15.9 Total 118.3 14.7 114.3 117.1 32.2 32.2 7.7 7.7 32.2 7.6 97.2 96.8 0.1 0.2 96.5 0.0 Operational 5.4 5.4 16.7 15.4 5.3 Market 0.0 0.0 0.0 14.3 Cr
Slide 39: Change in gross book outstandings
5 – S U P P L E ME N T - R I S K MA N A G E ME N T CHANGE IN GROSS BOOK OUTSTANDINGS* End of period in EUR bn 491.2 496.6 477.5 479.1 483.1 475.5 478.7 482.1 Total 472.7 Global Banking 136.0 138.7 156.7 158.0 and Investor Solutions 154.0 152.2 155.8 137.9 135.5 International Retail Banking and Finan
Slide 40: Non performing loans
5 – S U P P L E ME N T - R I S K MA N A G E ME N T NON PERFORMING LOANS In EUR bn 30/09/2018 30/06/2018 30/09/2017 Gross book outstandings* 496.6 491.2 472.7 Doubtful loans* 19.0 19.4 21.4 Group Gross non performing loans ratio* 3.8% 3.9% 4.5% Specific provisions 10.5 10.7 11.8 Portfolio-based provi
Slide 41: Change in trading VaR and stressed VaR
5 – S U P P L E ME N T - R I S K MA N A G E ME N T CHANGE IN TRADING VAR* AND STRESSED VAR** Quarterly Average of 1-Day, 99% Trading VaR* (in EUR m) 30 32 21 22 19 19 18 15 17 Trading VaR* 6 8 11 8 Credit 6 18 16 5 5 4 Interest Rates 8 16 Equity 17 13 12 12 11 11 Forex 19 19 Commodities 12 14 15 14
Slide 42: Diversified exposure to Russia
5 – S U P P L E ME N T - R I S K MA N A G E ME N T DIVERSIFIED EXPOSURE TO RUSSIA EAD as of Q3 18: EUR 14.8bn Other Corporates Sovereign ONSHORE Financial Institutions 5% 15% 3% Car loans 22% 27% Corporates Mortgages 46% Tier 1(1) Retail 36% 27% Consumer 4% loans 14% Other OFFSHORE (1) Top 500 Russi
Slide 43: Change in net banking income
5 – S U P P L E ME N T - F R E N C H R E TA I L B A N K I N G CHANGE IN NET BANKING INCOME 1,914 2,052 2,008 1,991 1,949 NBI in EUR m Commissions: Change Q3 18 vs Q3 17 +3.6% vs. Q3 17 206 205 202 Financial Fees 198 +0.8% 197 609 Service Fees 622 638 +4.5% 606 634 Interest margin(1): 170 148 146 Oth
Slide 44: Customer deposits and financial savings
5 – S U P P L E ME N T - F R E N C H R E TA I L B A N K I N G CUSTOMER DEPOSITS AND FINANCIAL SAVINGS Change Average outstanding Q3 18 vs. Q3 17 in EUR bn 305.0 304.7 305.3 308.4 309.9 +1.6% Life Insurance Financial savings: EUR 108.4bn 92.0 92.8 93.0 93.5 93.8 +2.0% Mutual Funds -0.8% Others 17.0 1
Slide 45: Loans outstanding
5 – S U P P L E ME N T - F R E N C H R E TA I L B A N K I N G LOANS OUTSTANDING Change Average outstanding, net of provisions in EUR bn Q3 18 vs. Q3 17 180.4 181.4 183.0 184.6 186.7 Individual Customers +3.5% o.w.: +2.9% Housing 96.6 97.3 98.0 98.7 96.0 Consumer Credit 11.5 11.5 +3.9% 11.1 11.2 11.3
Slide 46: International Retail Banking and Financial Services – quarterly results
5 – S U P P L E ME N T - I N TE R N A TI O N A L R E TA I L B A N K I N G A N D F I N A N C I A L S E R V I C E S INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES – QUARTERLY RESULTS International Retail Banking Insurance Financial Services to Corporates Total In EUR m Q3 18 Q3 17 Change Q3 18 Q3
Slide 47: International Retail Banking and Financial Services – 9M 18 results
5 – S U P P L E ME N T - I N TE R N A TI O N A L R E TA I L B A N K I N G A N D F I N A N C I A L S E R V I C E S INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES – 9M 18 RESULTS Financial Services to International Retail Banking Insurance Total Corporates In EUR m 9M 18 9M 17 Change 9M 18 9M 17
Slide 48: Quarterly results of International Retail Banking: breakdown by region
5 – S U P P L E ME N T - I N TE R N A TI O N A L R E TA I L B A N K I N G A N D F I N A N C I A L S E R V I C E S QUARTERLY RESULTS OF INTERNATIONAL RETAIL BANKING: BREAKDOWN BY REGION Africa, Asia, Total International Retail Western Europe Czech Republic Romania Other Europe Russia (1) Mediterranea
Slide 49: 9M 18 results of International Retail Banking: breakdown by region
5 – S U P P L E ME N T - I N TE R N A TI O N A L R E TA I L B A N K I N G A N D F I N A N C I A L S E R V I C E S 9M 18 RESULTS OF INTERNATIONAL RETAIL BANKING: BREAKDOWN BY REGION Africa, Asia, Total International Western Europe Czech Republic Romania Other Europe Russia (1) Mediterranean bassin Re
Slide 50: Loan and deposit outstandings breakdown
5 – S U P P L E ME N T - I N TE R N A TI O N A L R E TA I L B A N K I N G A N D F I N A N C I A L S E R V I C E S LOAN AND DEPOSIT OUTSTANDINGS BREAKDOWN Loan Outstandings Breakdown (in EURbn) Deposit Outstandings Breakdown (in EURbn) Change Change Sept 18 vs. Sept 17 Sept 18 vs. Sept 17 1.0 1.0 +4.
Slide 51: Insurance key figures
5 – S U P P L E ME N T - I N TE R N A TI O N A L R E TA I L B A N K I N G A N D F I N A N C I A L S E R V I C E S INSURANCE KEY FIGURES Life Insurance Outstandings Personal Protection Insurance Premiums (in EUR m) and Unit Linked Breakdown (in EUR bn) Change 112.9 114.1 114.0 115.4 116.5 Q3 18 vs. Q
Slide 52: SG Russia
5 – S U P P L E ME N T - I N TE R N A TI O N A L R E TA I L B A N K I N G A N D F I N A N C I A L S E R V I C E S SG RUSSIA(1) SG Russia Results In EUR m Q3 18 Q3 17 Change 9M 18 9M 17 Change Net banking income 207 206 +11.1%* 595 613 +10.2%* Operating expenses (133) (135) +7.7%* (416) (440) +6.1%*
Slide 53: Global Banking and Investor Solutions – quarterly results
5 – S U P P L E ME N T - G L O B A L B A N K I N G A N D I N V E S TO R S O L U TI O N S 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 18 Q3 17 Change Q3
Slide 54: Global Banking and Investor Solutions – 9M 18 results
5 – S U P P L E ME N T - G L O B A L B A N K I N G A N D I N V E S TO R S O L U TI O N S GLOBAL BANKING AND INVESTOR SOLUTIONS – 9M 18 RESULTS Global Markets and Investor Services Financing and Advisory Asset and Wealth Management Total Global Banking and Investor Solutions 9M 18 9M 17 Change 9M 18
Slide 55: Risk-weighted assets in EUR bn
5 – S U P P L E ME N T - G L O B A L B A N K I N G A N D I N V E S TO R S O L U TI O N S RISK-WEIGHTED ASSETS IN EUR BN Global Markets and Investor Services 66.6 69.9 70.2 24.6 24.6 24.6 13.9 14.1 13.2 28.1 31.3 32.3 Q1 18 Q2 18 Q3 18 Operational Market Financing and Advisory Asset and Wealth Manage
Slide 56: Revenues
5 – S U P P L E ME N T - G L O B A L B A N K I N G A N D I N V E S TO R S O L U TI O N S REVENUES Global Markets and Investor Services Revenues (in EUR m) Asset and Wealth Management Revenues (in EUR m) 7 5 4 6 5 Securities 47 214 50 52 45 Services 45 179 178 Others 165 Fixed Income, 166 514 535 580
Slide 57: Key figures
5 – S U P P L E ME N T - G L O B A L B A N K I N G A N D I N V E S TO R S O L U TI O N S KEY FIGURES Private Banking: Assets under Management(1) (in EUR bn) Lyxor: Assets under Management (in EUR bn) 119 118 117 119 121 112 117 119 125 110 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18
Slide 58: CVA/DVA impact
5 – S U P P L E ME N T - G L O B A L B A N K I N G A N D I N V E S TO R S O L U TI O N S CVA/DVA IMPACT NBI impact Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Equities 2 3 (1) 2 3 Fixed income,currencies,commodities 7 7 (4) (3) 9 Financing and Advisory 12 7 (3) (4) 8 Total 21 17 (9) (5) 19 3RD QUARTER AND 9 MONTH
Slide 59: Q3 18 – League tables - rankings - awards
5 – S U P P L E ME N T - GL OB A L B A N K I N G A N D I N V E S TOR S OL U TI ON S Q3 18 – LEAGUE TABLES - RANKINGS - AWARDS Financing and Advisory Global Markets and Investor Services Global Project Finance #1 Financial Adviser Debt Capital Market • Tech awards - • Global Best Merger and Acquisiti
Slide 60: Financing & Advisory: supporting clients in their transformations
5 – S U P P L E ME N T - G L O B A L B A N K I N G A N D I N V E S TO R S O L U TI O N S FINANCING & ADVISORY: SUPPORTING CLIENTS IN THEIR TRANSFORMATIONS AERCAP KKR / FLORA FOOD Lender, Co-Arranger Underwriter, MLA, Joint Bookrunner USD 950m aircraft-secured recourse facility for AerCap – Acquisiti
Slide 61: Group funding structure
5 – S U P P L E ME N T - F U N D I N G GROUP FUNDING STRUCTURE 31 DECEMBER 2017 30 SEPTEMBER 2018 Due to Customers 411 411 Due to Banks Financial Liabilities at Fair Value through Profit or Loss - Structured Debt o.w. Securities sold to customer 18 16 under repurchase agreements 97 89 Debt Securitie
Slide 62: Long term funding programme
5 – S U P P L E ME N T - F U N D I N G LONG TERM FUNDING PROGRAMME Expected funding program(1) Parent company 2018 vanilla funding programme of ~EUR 12bn, broken Yearly average 2018-2020 down consistently with the average trajectory communicated during the Investor Day Senior Preferred and Secured d
Slide 63: Long term funding breakdown
5 – S U P P L E ME N T - F U N D I N G LONG TERM FUNDING BREAKDOWN(1) 30.09.2018 7% 16% 13% EUR 177bn 14% 28% Subordinated Debt(2) Senior Non-Preferred Issues Senior Vanilla Preferred LT Interbank Liabilities(5) 8% Unsecured Issues(3) 14% Senior Structured Issues Subsidiaries Secured Issues(4) (1) S
Slide 64: Liquid asset buffer
5 – S U P P L E ME N T - F U N D I N G LIQUID ASSET BUFFER Liquid Asset Buffer (in EUR bn) 155 174 167 164 176 75 94 73 70 76 Central Bank Deposits(1) High Quality Liquid 77 79 84 Asset Securities(2) 63 64 Central Bank Eligible Assets(2) 16 16 16 15 16 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Liquidity Coverag
Slide 65: EPS calculation
5 – S U P P L E ME N T - S H A R E EPS CALCULATION Average number of shares (thousands) 9M 18 H1 18 2017 9M 17 Existing shares 807,918 807,918 807,754 807,714 Deductions Shares allocated to cover stock option plans and free shares 5,231 5,059 4,961 4,892 awarded to staff Other own shares and treasur
Slide 66: Net asset value, tangible net asset value
5 – S U P P L E ME N T - S H A R E NET ASSET VALUE, TANGIBLE NET ASSET VALUE End of period 9M 18 H1 18 2017 9M 17 Shareholders' equity Group share 60,149 58,959 59,373 60,254 Deeply subordinated notes (9,249) (9,197) (8,520) (9,082) Undated subordinated notes (276) (274) (269) (272) Interest net of
Slide 67: ROE/ROTE calculation detail
5 – S U P P L E ME N T - S H A R E ROE/ROTE CALCULATION DETAIL End of period Q3 18 Q3 17 9M 18 9M 17 Shareholders' equity Group share 60,149 60,254 60,149 60,254 Deeply subordinated notes (9,249) (9,077) (9,249) (9,082) Undated subordinated notes (276) (272) (276) (272) Interest net of tax payable t
Slide 68: Methodology (1/3)
5 – TE C H N I C A L S U P P L E ME N T METHODOLOGY (1/3) 1 – The Group’s consolidated results as at September 30th, 2018 were approved by the Board of Directors on November 7th, 2018. The financial information presented in respect the quarter and nine months ended September 30th, 2018 has been prep
Slide 69: Methodology (2/3)
5 – TE C H N I C A L S U P P L E ME N T 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
Slide 70: Methodology (3/3)
5 – TE C H N I C A L S U P P L E ME N T 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 amortizatio
Slide 71: Investor Relations team
INVESTOR RELATIONS TEAM +33 (0)1 42 14 47 72 investor.relations@socgen.com www.societegenerale.com/en/investors