Societe Generale S.a. Class A · EURONEXT:GLE
Societe Generale S.a. Class A — Debt Investor Presentation (February 2016)
75 slides from Societe Generale S.a. Class A's debt investor presentation, February 2016
Slide 1: Presentation to Debt Investors February 2016
SOCIETE GENERALE PRESENTATION TO DEBT INVESTORS FEBRUARY 2016
Slide 2: Disclaimer
DISCLAIMER The information contained in this document (the “Information”) has been prepared by the Société Générale Group (the “Group”) solely for informational purposes. The Information is proprietary to the Group and confidential. This presentation and its content may not be reproduced or distribu
Slide 3: Introduction
INTRODUCTION KEY FIGURES LIQUIDITY AND CAPITAL RATINGS BUSINESS PERFORMANCE CONCLUSION SUPPLEMENT
Slide 4: Steady progress of Group performance reflecting transformation
SOCIETE GENERALE GROUP dd STEADY PROGRESS OF GROUP PERFORMANCE REFLECTING TRANSFORMATION Group NBI at EUR 25.6bn, up +8.8% in 2015 vs. 2014: strong commercial franchises across all businesses (+4.0%*(1)) Confirmed momentum in GOI +6.1%*(1) vs. 2014 despite investment in core businesses, and increase
Slide 5: Key figures
INTRODUCTION KEY FIGURES LIQUIDITY AND CAPITAL RATINGS BUSINESS PERFORMANCE CONCLUSION SUPPLEMENT
Slide 6: A balanced and diversified business model with leadership positions
SOCIETE GENERALE GROUP A BALANCED AND DIVERSIFIED BUSINESS MODEL WITH LEADERSHIP POSITIONS Universal banking model with leading positions... % 2015 NBI (by business) Growth in all businesses (2015 NBI growth vs. 2014) • Three premium complementary brands +2.9%(1) • Exposed to fastest-growing and ric
Slide 7: Agile business model: examples of refocusing and investments
SOCIETE GENERALE GROUP AGILE BUSINESS MODEL : EXAMPLES OF REFOCUSING AND INVESTMENTS RETAIL BANKING ASSET MANAGEMENT PRIVATE BANKING Société Marseillaise de Crédit – 2010 Kleinwort Benson – 2016(1) (United Kingdom) MCB Mozambique – 2015 SELECTED INVESTMENTS IN Geniki (Greece) – 2012 TCW – 2013 CORE
Slide 8: Solid business results
SOCIETE GENERALE GROUP dd SOLID BUSINESS RESULTS Group Results (in EUR m) Solid NBI growth • Up +4.0%*(1) overall in 2015 vs. 2014 In EUR m 2015 2014 Change Q4 15 Q4 14 Change Net banking income 25,639 23,561 +8.8% +7.2%* 6,053 6,129 -1.2% -1.7%* Net banking income (1) 24,968 23,662 +5.5% +4.0%* 6,0
Slide 9: Ongoing rigorous cost management throughout the organisation (1/2)
SOCIETE GENERALE GROUP ONGOING RIGOROUS COST MANAGEMENT THROUGHOUT THE ORGANISATION (1/2) Recurring cost savings Non-recurring (in EUR bn) transformation costs (in EUR bn) 0.40 The cost reduction 0.90 0.15 2017 plans... 0.45 0.20 2016 0.10 2015 2013 – 2015 2016 – 2017 ONE-OFF ACHIEVED TARGET COSTS O
Slide 10: Ongoing rigorous cost management throughout the organisation (2/2)
SOCIETE GENERALE GROUP ONGOING RIGOROUS COST MANAGEMENT THROUGHOUT THE ORGANISATION (2/2) KEY COST REDUCTION INITIATIVES HIGHLIGHTS TRANSFORMATION OF THE RETAIL BANKING 20% fewer branches by 2020(1) IN FRANCE 35 fewer branches in 2015(1) Example: Support functions(2) IMPROVED EFFICIENCY Simplifying
Slide 11: Annual cost of risk at a low level reflecting good asset quality
SOCIETE GENERALE GROUP dd ANNUAL COST OF RISK AT A LOW LEVEL REFLECTING GOOD ASSET QUALITY Cost of Risk in 2015 (in bp)(1) French Retail Banking 2014 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 2015 • Decrease in cost of risk 66 56 47 42 43 43 38 FRENCH International Retail Banking and Financial RETAIL BANKING Se
Slide 12: Diversified exposure to oil & gas sector
SOCIETE GENERALE GROUP DIVERSIFIED EXPOSURE TO OIL & GAS SECTOR Breakdown of Oil & Gas Exposure Limited lending exposure to the oil and gas sector % of EAD at 31 Dec. 2015 LATIN AMERICA • EUR 23.5bn, 3% of Group EAD EASTERN EUROPE 6% MIDDLE EAST 6% Sound credit portfolio & AFRICA WESTERN EUROPE 9% 3
Slide 13: Liquidity and capital
INTRODUCTION KEY FIGURES LIQUIDITY AND CAPITAL RATINGS BUSINESS PERFORMANCE CONCLUSION SUPPLEMENT
Slide 14: Solid capital position
SOCIETE GENERALE GROUP dd SOLID CAPITAL POSITION RWA CET1 Ratio(1) floors Hybrid coupons +3bp Strong capital build over 2015 -5bp +41bp 10.9% +13pb • 10.9% CET1(1) at end-2015 +78bp -41bp • End-2016 CET1 target of ~11% reached “Category 1” according to ECB 10.1% • Already above phased-in and fully l
Slide 15: At a stone-throw from total capital target
SOCIETE GENERALE GROUP dd AT A STONE-THROW FROM TOTAL CAPITAL TARGET TLAC trajectory – Fully Loaded Ratio Strengthened Total Capital ratio (+200 bp in 2015) close to the end 2017 objective (18%) Mgt ~EUR 4-6bn buffer • Proactive management of upcoming capital Other debt 19.5% 1.50% ~EUR 6bn requirem
Slide 16: BRRD/bail-in transposition leading to changes in insolvency laws
SOCIETE GENERALE GROUP BRRD/BAIL-IN TRANSPOSITION LEADING TO CHANGES IN INSOLVENCY LAWS PROPOSED NEW CURRENT INSOLVENCY LAW FRENCH Clear identification and prioritization of debt securities INSOLVENCY LAW available to absorb losses Covered deposits / Covered deposits / No retroactivity in the rankin
Slide 17: Variations in implementation across European countries
SOCIETE GENERALE GROUP VARIATIONS IN IMPLEMENTATION ACROSS EUROPEAN COUNTRIES COMMON EU LIQUIDATION NCWOL RESOLUTION FRAMEWORK INSTRUMENTS’ RANK DEPENDENT ON NATIONAL INSOLVENCY LAW Covered deposits Covered deposits / Covered deposits / Covered deposits / Excluded liabilities (OpCo) / Deposit Deposi
Slide 18: Clarification of SREP capital requirement
SOCIETE GENERALE GROUP CLARIFICATION OF SREP CAPITAL REQUIREMENT SREP REQUIREMENT* “All things being equal, the Pillar 2 requirements set out in the 2015 SREP decisions provide an indication for the future, SG Phased-in CET1 as of Q4 15 : 11.4% especially as we already took full account of the fully
Slide 19: Strengthened funding structure
FUNDING STRUCTURE STRENGTHENED FUNDING STRUCTURE* Short term wholesale resources* (in EUR bn) Tight management of short term wholesale and short term needs coverage** (%) 140 funding 120 % NEEDS COVERAGE • Short term funding at 8% of funded balance 100 115 202% 206% sheet* at end-December 2015 80 96
Slide 20: Diversified access to long term funding sources
FUNDING STRUCTURE dd DIVERSIFIED ACCESS TO LONG TERM FUNDING SOURCES Long Term Funding Breakdown(1) Access to diversified and complementary investor EUR 146bn EUR 165bn bases through: LT INTERBANK 10% 13% LIABILITIES(5) • Subordinated issues 11% 9% SUBSIDIARIES • Senior vanilla issuances (public or
Slide 21: 2015 landmark issuance
SUPPLEMENT – FUNDING STRUCTURE LONG TERM FUNDING PROGRAMME 2015 funding programme completed at 2015 Funding Programme Breakdown competitive cost thanks to diversification strategy UNDATED • EUR 39.1bn o.w. EUR 33.1 at parent company level SUBORDINATED DEBT SUBSIDIARIES SUBORDINATED and EUR 6bn issue
Slide 22: Ratings
INTRODUCTION KEY FIGURES LIQUIDITY AND CAPITAL RATINGS BUSINESS PERFORMANCE CONCLUSION SUPPLEMENT
Slide 23: Credit ratings overview
APPENDIX: SOCIETE GENERALE: ADDITIONAL FINANCIAL INFORMATION dd CREDIT RATINGS OVERVIEW DBRS Key strengths reflected in Societe Generale’s ratings are its solid franchises, Senior Long-term debt A (high) (Stable) sound capital and liquidity and improving profitability. Senior Short-term debt R-1 (mi
Slide 24: Business performance
INTRODUCTION KEY FIGURES LIQUIDITY AND CAPITAL RATINGS BUSINESS PERFORMANCE CONCLUSION SUPPLEMENT
Slide 25: Strong commercial performance in 2015
FRENCH RETAIL BANKING dd STRONG COMMERCIAL PERFORMANCE IN 2015 Loan Production Record client acquisition across 3 brands (in EUR bn) • Over 305,000 net account openings in 2015, +38% vs. 2014 • Boursorama: 757,000 customers in France end- December 2015 - above target, helped by ambitious development
Slide 26: Leading to good profitability
FRENCH RETAIL BANKING dd LEADING TO GOOD PROFITABILITY Strong rise in revenue in 2015: (+2.9%)(1) Net Banking Income(1) (in EUR m) vs. 2014, despite low interest rates 8,136 8,140 8,463 8,372 8,611 • Net interest income up +3.1%(1): 3,426 FEES 3,425 3,453 3,345 Exceptional home loan production, wave
Slide 27: Good dynamics across businesses
INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES dd GOOD DYNAMICS ACROSS BUSINESSES International Retail Banking International Retail Banking Loan and Deposit Outstandings Breakdown • Sound deposit collection across network (in EUR bn – change vs. End-2014, in %*) +3.3%* 77.8 71.0 +4.5%* TOTAL •
Slide 28: Gradual pick-up of SG Russia
INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES GRADUAL PICK-UP OF SG RUSSIA(1) Successful development on large corporates, Loan outstandings breakdown (in RUB bn) progressive normalisation of retail loan production 677 585 634 • Increase in corporate loan outstandings in H2 15 (+21%*), with foc
Slide 29: Solid financial performance overall
INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES dd SOLID FINANCIAL PERFORMANCE OVERALL Contribution to Group net income(1) Good revenue growth, notably in specialised (in EUR m) businesses 895 1,077 TOTAL Strict cost control, increase driven by growing 349 INTERNATIONAL RETAIL BANKING ACTIVITIES
Slide 30: Growth drivers strengthening business model
GLOBAL BANKING AND INVESTOR SOLUTIONS GROWTH DRIVERS STRENGTHENING BUSINESS MODEL Newedge integration: Secured Gross Operating Global Markets & Investor Services successful Income Synergies (in EUR m) integrations 60 198 198 200 TOTAL • Expected synergies from Newedge integration revised above initi
Slide 31: Enhanced commercial footprint resulting in high revenues (1/2)
GLOBAL BANKING AND INVESTOR SOLUTIONS dd ENHANCED COMMERCIAL FOOTPRINT RESULTING IN HIGH REVENUES (1/2) Net Banking Income (in EUR m) Global Markets and Investor Services overall 5,628 5,970 TOTAL growth: NBI +6.1% vs. 2014 Equities: +12.3% vs. 2014, -31.4% vs. Q4 14 2,236 2,511 EQUITIES • Strong pe
Slide 32: Enhanced commercial footprint resulting in high revenues (2/2)
GLOBAL BANKING AND INVESTOR SOLUTIONS dd ENHANCED COMMERCIAL FOOTPRINT RESULTING IN HIGH REVENUES (2/2) Financing and Advisory: NBI up +16.1% Financing and Advisory NBI (in EUR bn) 2.1 2.4 vs. 2014 CORPORATE LENDING, ECM AND M&A 14% 14% • Solid performance of Capital Markets in a subdued DEBT CAPITA
Slide 33: Resilient contribution
GLOBAL BANKING AND INVESTOR SOLUTIONS dd RESILIENT CONTRIBUTION Global Banking and Investor Solutions Net Banking Income up +8.2% vs. 2014 Operating Expenses (in EUR bn) Milliers +0.1 Operating Expenses EUR 6,940m +0.1 - 0.1 (+10.2% vs. 2014) 6.9 • Most of the increase due to forex impact, legal + 0
Slide 34: Conclusion
INTRODUCTION KEY FIGURES LIQUIDITY AND CAPITAL RATINGS BUSINESS PERFORMANCE CONCLUSION SUPPLEMENT
Slide 35: 2015: another step forward
SOCIETE GENERALE GROUP dd 2015: ANOTHER STEP FORWARD… Confirmed long term value creation ¨NTAVPS 2011-2015 +27.3% 61.62 NET ASSET VALUE 54.57 56.23 56.46 57.96 PER SHARE (EUR) 55.94 47.89 48.82 51.43 43.94 NET TANGIBLE ASSET VALUE PER SHARE (EUR) 2011 2012 2013 2014 2015 2.00 DIVIDEND (EUR) 1.00 1.2
Slide 36: In group transformation in a challenging environment
SOCIETE GENERALE GROUP … IN GROUP TRANSFORMATION IN A CHALLENGING ENVIRONMENT Major headwinds since 2014 … Main targets in sight at end-2015 material ID assumptions not filled All capital and balance sheet targets met or Persistent low interest rate environment exceeded Deterioration of the macroeco
Slide 37: Executing the roadmap: key priorities for 2016
SOCIETE GENERALE GROUP dd EXECUTING THE ROADMAP : KEY PRIORITIES FOR 2016 In spite of current uncertainties, the Group will keep its focus on implementing the strategic plan with discipline. 2016 will be another year of value creation for Societe Generale shareholders The Group is committed to trans
Slide 38: Key figures
SOCIETE GENERALE GROUP dd KEY FIGURES Chg In EUR m Q4 15 Chg Q4 vs. Q3 2015 Q4 vs. Q4 Net banking income 6,053 -4.9% -1.2% 25,639 Operating expenses (4,349) +9.3% +3.3% (16,893) Net cost of risk (1,157) +102.6% +27.7% (3,065) Financial results Group net income 656 -41.7% +19.5% 4,001 ROE 4.7% 7.9% R
Slide 39: Supplement
INTRODUCTION KEY FIGURES LIQUIDITY AND CAPITAL RATINGS BUSINESS PERFORMANCE CONCLUSION SUPPLEMENT
Slide 40: 2015: a key milestone in the Group digital transformation
SUPPLEMENT – SOCIETE GENERALE GROUP 2015: A KEY MILESTONE IN THE GROUP DIGITAL TRANSFORMATION KEY DIGITAL USER EXPERIENCE EFFICIENCY AND PRODUCTS AND DRIVERS SECURITY SERVICES MAJOR 2015 DIGITAL KEY HIGHLIGHTS ACHIEVMENTS Societe Generale and Credit du Nord networks • Transform the relationship mode
Slide 41: Annual income statement by core business
SUPPLEMENT – SOCIETE GENERALE GROUP ANNUAL INCOME STATEMENT BY CORE BUSINESS International Retail Banking and Global Banking and French Retail Banking Financial Services Investor Solutions Corporate Centre Group In EUR m 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 Net banking income 8,550 8,27
Slide 42: Annual non economic and other important items
SUPPLEMENT – SOCIETE GENERALE GROUP ANNUAL NON ECONOMIC AND OTHER IMPORTANT ITEMS Net banking Operating Group net In EUR m 2014 income expenses Others Cost of risk income Revaluation of own financial liabilities* (139) (91) Corporate Centre Accounting impact of DVA* 38 25 Group Accounting impact of
Slide 43: 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 Q4 14 income expenses Others Cost of risk income Revaluation of own financial liabilities* 44 29 Corporate Centre Accounting impact of DVA* 33 21 Group Accounting impact of C
Slide 44: CRR/CRD4 prudential capital ratios
SUPPLEMENT – SOCIETE GENERALE GROUP CRR/CRD4 PRUDENTIAL CAPITAL RATIOS 31 Dec 2015 31 Dec 2014 In EUR bn Shareholder equity group share 59.0 55.2 Deeply subordinated notes* (9.6) (9.4) Undated subordinated notes* (0.4) (0.3) Dividend to be paid & interest on subordinated notes (1.8) (1.1) Goodwill a
Slide 45: CRR leverage ratio
SUPPLEMENT – SOCIETE GENERALE GROUP CRR LEVERAGE RATIO CRR fully loaded leverage ratio(1) 31 Dec 2015 31 Dec 2014 In EUR bn Tier 1 48.1 44.6 Total prudential balance sheet(2) 1,229 1,208 Adjustment related to derivatives exposures (90) (83) Adjustment related to securities financing transactions* (2
Slide 46: Positive long term trend in cost of risk
SUPPLEMENT – SOCIETE GENERALE GROUP dd POSITIVE LONG TERM TREND IN COST OF RISK Cost of Risk 2011-2015 (in bp)(1) Gross Doubtful Loan NPL Ratio(2) Coverage Ratio(2) Revised 2016 Targets 9.5% 9.1% 66 8.9% 53 56 74% 45 43 ~45 73% 8.1% 7.6% 68% 68% 71% 71% 165 157 150 123 64% 6.5% 6.6% 102 ~100 66% 6.3
Slide 47: Solid asset quality
SUPPLEMENT – SOCIETE GENERALE GROUP dd SOLID ASSET QUALITY NPL and gross doubtful loan coverage ratio(1) (EBA transparency exercise) 60% SOCIETE GENERALE Gross doubtful loan coverage ratio Disciplined credit origination 55% • Portfolio quality and group metrics confirmed by EBA transparency exercise
Slide 48: Risk-weighted assets
SUPPLEMENT – RISK MANAGEMENT RISK-WEIGHTED ASSETS* (CRR/CRD 4, in EUR bn) TOTAL 93.9 94.5 96.6 103.8 102.8 105.5 136.2 139.1 138.2 19.3 18.9 16.4 353.2 355.4 356.7 OPERATIONAL MARKET CREDIT 43.9 43.9 43.9 28.6 28.3 28.6 17.9 19.3 24.2 6.2 7.5 17.1 18.6 4.0 4.7 6.0 0.1 3.7 0.1 0.1 22.9 0.1 0.1 0.1 28
Slide 49: Breakdown of SG Group commitments by sector
SUPPLEMENT – RISK MANAGEMENT BREAKDOWN OF SG GROUP COMMITMENTS BY SECTOR AT 31 DECEMBER 2015 EAD Corporate: Telecoms 2.7% Transport & logistics Finance & insurance EUR 313bn* Personnel & domestic 6.8% 17.5% services Real Estate 0.1% 8.5% Collective services Public administration 7.3% 0.3% Business s
Slide 50: Geographic breakdown of SG Group commitments
SUPPLEMENT – RISK MANAGEMENT GEOGRAPHIC BREAKDOWN OF SG GROUP COMMITMENTS AT 31 DECEMBER 2015 On-and off-balance sheet EAD* On-balance sheet EAD* All customers included: EUR 781bn All customers included: EUR 615bn Latin America Latin America Africa and and Africa and and Middle East Caribbean Middle
Slide 51: Diversified exposure to emerging markets
SUPPLEMENT – RISK MANAGEMENT DIVERSIFIED EXPOSURE TO EMERGING MARKETS Geographical Breakdown of Group Exposure(1) Q4 15 % Group EAD Q4 15 % of Emerging Market EAD Emerging Market Exposure (% Group EAD) NORTH OTHER AMERICA EUROPE (NON-EM) 13% ASIA RUSSIA 28% (NON-EM) CHINA 4% 16% 9% MIDDLE EAST 13.6%
Slide 52: Diversified exposure to oil & gas sector
SUPPLEMENT – RISK MANAGEMENT DIVERSIFIED EXPOSURE TO OIL & GAS SECTOR Lending exposure to the oil and gas sector: EUR 23.5bn, 3% of Group EAD OIL & GAS EAD % EXPOSURE REFINING, TOTALLY • Not directly exposed to Oil & Gas price risk 15% MIDSTREAM SECURED UPSTREAM • Exposed to Oil & Gas price but main
Slide 53: Doubtful loans
SUPPLEMENT – RISK MANAGEMENT DOUBTFUL LOANS In EUR bn 31/12/2014 30/06/2015 31/12/2015 Gross book outstandings* 427.0 458.4 458.7 Doubtful loans* 23.7 24.1 23.3 Gross non performing loans ratio* 5.6% 5.3% 5.1% Specific provisions* 13.1 13.4 13.2 Portfolio-based provisions* 1.3 1.3 1.4 Gross doubtful
Slide 54: 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) 31 31 24 24 23 20 20 19 20 Trading VaR* CREDIT 13 19 8 7 8 INTEREST RATES 16 11 8 23 6 15 15 24 23 17 14 EQUITY 18 16 11 14 13 14 12 10 9 7 8 FOREX 3 22 2 2 1 3 5 6 4 2 4 2 2
Slide 55: Diversified exposure to Russia
SUPPLEMENT – RISK MANAGEMENT DIVERSIFIED EXPOSURE TO RUSSIA EAD as of Q4 15: EUR 14.9bn(1) FINANCIAL OTHER INSTITUTIONS CORPORATES CORPORATES SOVEREIGN TIER 1(2) 3%2% 13% 24% ONSHORE CAR LOANS 26% 32% MORTGAGES OFFSHORE RETAIL 49% 21% CONSUMER LOANS 24% 4% OTHER (1) EAD net of provisions (2) Top 500
Slide 56: Change in net banking income
SUPPLEMENT – FRENCH RETAIL BANKING CHANGE IN NET BANKING INCOME Net interest income in Q4 15 Net interest income in 2015 • +2.1%(1) vs. Q4 14 • +3.1%(1) vs. 2014 Fee income in Q4 14 Fee income in 2015 • -0.6% vs. Q4 14, +2.1% excl. non recurring items • +2.4% vs. 2014, +3.1% excl. non recurring item
Slide 57: Customer deposits and financial savings
SUPPLEMENT – FRENCH RETAIL BANKING CUSTOMER DEPOSITS AND FINANCIAL SAVINGS Change Average outstandings Q4 15 vs. Q4 14 in EUR bn 271.9 276.4 283.2 284.1 284.0 +4.5% 88.4 88.3 89.3 +4.2% Financial LIFE INSURANCE 85.7 87.3 savings: EUR 110.6bn +1.2% 23.4 23.5 20.7 -6.9% MUTUAL FUNDS 22.2 22.8 0.6 0.7
Slide 58: Loan outstandings
SUPPLEMENT – FRENCH RETAIL BANKING LOAN OUTSTANDINGS Change Average outstandings , net of provisions Q4 15 vs. Q4 14 in EUR bn 176.7 179.0 181.6 +3.8% 174.9 175.4 INDIVIDUAL CUSTOMERS o.w.: 91.4 +7.8% 84.8 85.4 87.2 89.3 - HOUSING - CONSUMER CREDIT AND 11.1 11.0 11.0 11.0 10.9 -1.4% OVERDRAFT BUSINE
Slide 59: Annual results
SUPPLEMENT – INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES ANNUAL RESULTS International retail Financial Services to Insurance Other Total Banking corporates In EUR m 2015 2014 Change 2015 2014 Change 2015 2014 Change 2015 2014 2015 2014 Change Net banking income 4,985 5,350 -1.8%* 1,506 1,328
Slide 60: Annual results of international retail banking: breakdown by zone
SUPPLEMENT – INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES ANNUAL RESULTS OF INTERNATIONAL RETAIL BANKING: BREAKDOWN BY ZONE Africa, Asia, Total International Western Europe Czech Republic Romania Russia (1) Other Europe Mediterranean basin retail Banking and Overseas In EUR m 2015 2014 2015 2
Slide 61: 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 Dec. 15 vs. Dec. 14 Dec. 15 vs. Dec. 14 1.6 -20.6%* 1.3 O.w. EQUIPMENT FINANCE(1) 70.9 +4.5%* 71.0
Slide 62: Insurance key figures
SUPPLEMENT – INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES INSURANCE KEY FIGURES Life insurance outstandings and unit linked Personal protection insurance premiums Change breakdown (in EUR bn) (in EUR m) Q4 15 vs. Q4 14 90.2 92.8 93.2 92.7 94.8 203 199 199 20% 22% 22% 21% 21% UNIT 198 LINKED E
Slide 63: SG Russia
SUPPLEMENT – INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES SG RUSSIA(1) In EUR m 2015 2014 Change Q4 15 Q4 14 Change Net banking income 713 1,177 -19.3%* 187 274 -15.7%* Operating expenses (597) (804) -0.3%* (133) (184) -8.9%* Gross operating income 117 374 -57.7%* 53 90 -28.7%* Net cost of ri
Slide 64: Presence in Central and Eastern Europe
SUPPLEMENT – INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES PRESENCE IN CENTRAL AND EASTERN EUROPE Client NBI Net income C/I RWA 8.1m EUR 2.3bn EUR 301m 60.1% EUR 31.2bn NBI RWA Credit Deposits L/D Ratio Ranking 2015 (In EUR m) (In EUR m) (In EUR m) (In EUR m) Czech Republic 1,026 12,790 19,997
Slide 65: Presence in Africa
SUPPLEMENT – INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES PRESENCE IN AFRICA Clients NBI Net income C/I RWA 3.7m EUR 1.1m EUR 158m 56.7% EUR 18.2m NBI RWA Credit Deposits L/D Ratio Ranking (In EUR m) (In EUR m) (In EUR m) (In EUR m) Morocco 364 6,748 6,895 5,666 122% 4th(2) Algeria 134 1,987
Slide 66: Annual results
SUPPLEMENT – GLOBAL BANKING AND INVESTOR SOLUTIONS ANNUAL RESULTS Global Markets and Asset & Wealth Total Global Banking and Investor Financing and Advisory Investor Services Management Solutions In EUR m 2015 2014 Change 2015 2014 Change 2015 2014 Change 2015 2014 Change Net banking income 5,970 5,
Slide 67: 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 68.3 61.2 62.5 10.4 11.8 11.8 21.7 20.7 20.6 2.2 2.1 1.5 0.1 0.1 0.1 21.3 16.9 16.0 8.8 9.5 9.6 25.3 24.4 25.1 Q4 14 Q3 15 Q4 15 Q4 14 Q3 15 Q4 15 O
Slide 68: 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) 144 142 188 184 PRIME SERVICES 117 OTHERS 170 161 SECURITIES 6 143 6 5 853 799 164 SERVICES 3 52 6 152 34 652 55 52 44 LYXOR 411 447 EQ
Slide 69: 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) 118 116 112 113 108 106 104 99 100 84 DEC.14 MAR. 15 JUN. 15 SEP.15 DEC.15 DEC.14 MAR. 15 JUN. 15 SEP.15 DEC.15 Securities Services: As
Slide 70: Funded balance sheet and consolidated balance sheet
SUPPLEMENT – FUNDING ANALYSIS FUNDED BALANCE SHEET* AND CONSOLIDATED BALANCE SHEET ASSETS LIABILITIES In EUR bn ASSETS LIABILITIES In EUR bn 1,334 1,334 706 706 NET CENTRAL 55 SHORT TERM DUE TO CENTRAL 76 RESOURCES 7 BANKS BANK DEPOSIT NET CENTRAL 15 79 95 OTHER BANK DEPOSIT DUE TO BANKS INTERBANK L
Slide 71: Details on Group funding structure
SUPPLEMENT – FUNDING STRUCTURE DETAILS ON GROUP FUNDING STRUCTURE 380 DUE TO CUSTOMERS 350 o.w. Securities sold to 20 22 customer under repurchase agreements DUE TO BANKS 95 91 o.w. Securities sold to bankunder repurchase 12 24 FINANCIAL LIABILITIES AT FAIR VALUE agreements (1) THROUGH PROFIT OR LOS
Slide 72: Net asset value, tangible net asset value and ROE equity
SUPPLEMENT – SHARE NET ASSET VALUE, TANGIBLE NET ASSET VALUE AND ROE EQUITY End of period 31 Dec.13 31 Dec.14 31 Dec. 15 End of period 31 Dec.13 31 Dec.14 31 Dec. 15 Shareholder equity group share 50,877 55,229 59,037 Shareholder equity group share 50,877 55,229 59,037 Deeply subordinated notes (6,5
Slide 73: Methodology (1/3)
TECHNICAL SUPPLEMENT METHODOLOGY (1/3) 1- The Group’s consolidated results as at December 31th, 2015 were examined by the Board of Directors on February 10th , 2016. The financial information presented in respect of Q3 2015 has been prepared in accordance with IFRS as adopted in the European Union a
Slide 74: Methodology (2/3)
TECHNICAL SUPPLEMENT METHODOLOGY (2/3) 6- The Group’s ROTE is calculated on the basis of tangible capital, i.e. excluding cumulative average book capital (Group share), average net goodwill in the assets and underlying average goodwill relating to shareholdings in companies accounted for by the equi
Slide 75: Methodology (3/3)
TECHNICAL SUPPLEMENT METHODOLOGY (3/3) 8 – Non-economic items and restatements 1. Non-economic items correspond to the revaluation of own financial liabilities and DVA. Details of these items, and other items that are restated, are given on page 37 and 38 for Q4 14, Q4 15, 2014 and 2015. NB (1) The
Societe Generale — Debt Investor Presentation (February 2016) on 6ix