Societe Generale S.a. Class A · EURONEXT:GLE

Societe Generale S.a. Class A — Debt Investor Presentation (September 2016)

75 slides from Societe Generale S.a. Class A's debt investor presentation, September 2016

  1. Slide 1: Presentation to Debt Investors, September 2016

    SOCIETE GENERALE PRESENTATION TO DEBT INVESTORS SEPTEMBER 2016

  2. Slide 2: Disclaimer

    DISCLAIMER The information contained in this document (the “Information”) has been prepared by the Societe Generale Group (the “Group”) solely for informational purposes. The Information is confidential and this presentation may not be reproduced or distributed to any other person or published, in w

  3. Slide 3: Introduction, Key Figures, Liquidity and Capital

    INTRODUCTION KEY FIGURES LIQUIDITY AND CAPITAL RATINGS BUSINESS PERFORMANCE CONCLUSION SUPPLEMENT

  4. Slide 4: Q2 16: Solid results in a challenging environment

    SOCIETE GENERALE GROUP dd Q2 16: SOLID RESULTS IN A CHALLENGING ENVIRONMENT Group NBI(1) at EUR 7.2bn in Q2 16 vs. EUR 6.5bn in Q2 15, up +11.5%(1)* Good performance of Group Core Businesses and impact of Visa transaction (EUR 725m in Q2 16). H1 16 Group NBI(1) at EUR 13.2bn, up +4.3%(1)* vs. H1 15

  5. Slide 5: Key Figures

    INTRODUCTION KEY FIGURES LIQUIDITY AND CAPITAL RATINGS BUSINESS PERFORMANCE CONCLUSION SUPPLEMENT

  6. Slide 6: Solid results from a well-balanced business model

    SOCIETE GENERALE GROUP SOLID RESULTS FROM A WELL-BALANCED BUSINESS MODEL H1 16 figures Net Banking Average Allocated Group Adjusted Income (EUR m) Capital Net Income (EUR m) RONE (% of capital allocated to Core Businesses) FRENCH RETAIL BANKING • Three premium complementary 4,184 29% 704 731 brands

  7. Slide 7: Limited exposure to a negative interest rate environment

    SOCIETE GENERALE GROUP dd LIMITED EXPOSURE TO A NEGATIVE INTEREST RATE ENVIRONMENT International Retail Banking and Financial French Retail Banking Services Rebalancing revenue structure Exposure to markets outside negative interest rate policies • Ongoing client-centric digital FEES AND • Internati

  8. Slide 8: 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 • Developm

  9. Slide 9: Q2 16: Low cost of risk

    SOCIETE GENERALE GROUP Q2 16: LOW COST OF RISK Cost of Risk(1) (in bp)  French Retail Banking H1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 H1 16 • Confirmation of lower cost of risk 43 38 42 43 35 33 34 FRENCH RETAIL BANKING  International Retail Banking and Financial 106 104 Services 96 91 74 64 69 INTERN

  10. Slide 10: H1 16: Good results

    SOCIETE GENERALE GROUP dd H1 16: GOOD RESULTS  Net Banking Income(1) up +4.3%*(1) vs. H1 15, -1.5%*(1) excluding Visa transaction Group Results (in EUR m)  Strict monitoring of costs: -0,6%* vs. H1 15 In EUR m H1 16 H1 15 Change Net banking income 13,159 13,222 -0.5% +0.7%* Net b anking income(1)

  11. Slide 11: Liquidity and Capital

    INTRODUCTION KEY FIGURES LIQUIDITY AND CAPITAL RATINGS BUSINESS PERFORMANCE CONCLUSION SUPPLEMENT

  12. Slide 12: Solid capital position

    CAPITAL SOLID CAPITAL POSITION CET1 Ratio  CET1(1) ratio stable at 11.1% vs. Q1 16 Hybrid FULLY LOADED(1) PHASED-IN: 11.5% +6bp coupons -14bp • Steady earnings capital generation +66bp -32bp +3bp +0bp 175bp Excess 10.9% 11.1% • Bolt-on acquisitions: ALD-Parcours, Kleinwort-Benson 9.75% Requirement

  13. Slide 13: Pillar 2 latest developments

    CAPITAL PILLAR 2 LATEST DEVELOPMENTS  The Pillar 2 add-on required on CET1 capital should be replaced by 2 components: Previous threshold for MDA • a « Pillar 2 Requirement » (P2R) below the regulatory restrictions buffers. Its size reflects the quality of the Pillar 1 set-up, 9.75% as well as Pill

  14. Slide 14: BRRD/bail-in transposition leading to changes in insolvency laws

    CAPITAL BRRD/BAIL-IN TRANSPOSITION LEADING TO CHANGES IN INSOLVENCY LAWS CURRENT PROPOSED NEW  French legal framework required for Non-Preferred FRENCH INSOLVENCY LAW INSOLVENCY LAW Senior unsecured issues (Sapin II law) expected to be adopted in Q3 16 Covered deposits / Covered deposits / • Framew

  15. Slide 15: Variations in implementation across European countries

    CAPITAL VARIATIONS IN IMPLEMENTATION ACROSS EUROPEAN COUNTRIES COMMON EU LIQUIDATION RESOLUTION NCWOL FRAMEWORK INSTRUMENTS’ RANK DEPENDENT ON NATIONAL INSOLVENCY LAW Covered deposits (OpCo) Covered deposits / Covered deposits / Covered deposits / Covered deposits / Excluded liabilities / Deposit Gu

  16. Slide 16: Non-preferred senior already highly protected

    CAPITAL dd NON-PREFERRED SENIOR ALREADY HIGHLY PROTECTED PONV RESOLUTION PREFERRED EUR 59.2bn SENIOR  High level of protection NON-PREFERRED SENIOR • High rank in creditors hierarchy TIER 2 • Well-protected thanks to EUR 59.2bn subordinated own funds/capital buffer 10.8 • Gradually set-up through S

  17. Slide 17: 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** (%) funding 214% 202% 204% 207% % NEEDS • Short term funding at 7% of funded balance 182% COVERAGE 169% sheet* at end-June 2016 145

  18. Slide 18: 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 SUBORDINATED investor bases through: DEBT(2) • Subordinated issues 13% 21% 13% 21% SENIOR VANILLA UNSECURED • Senior vanilla issuances (public or private ISSU

  19. Slide 19: Q2 16 landmark issuance

    FUNDING STRUCTURE LONG TERM FUNDING PROGRAMME  New parent company 2016 funding programme EUR 31.3bn • Including EUR 17bn of structured notes  Completed at 59% at 13th July 2016 (EUR 18.4bn, including 56% of structured notes) • Competitive funding conditions: MS6M+47bp, average maturity of 5.6 year

  20. Slide 20: Ratings

    INTRODUCTION KEY FIGURES LIQUIDITY AND CAPITAL RATINGS BUSINESS PERFORMANCE CONCLUSION SUPPLEMENT

  21. Slide 21: Credit ratings overview

    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 (middle) (Sta

  22. Slide 22: Business Performance

    INTRODUCTION KEY FIGURES LIQUIDITY AND CAPITAL RATINGS BUSINESS PERFORMANCE CONCLUSION SUPPLEMENT

  23. Slide 23: Dynamic commercial momentum

    FRENCH RETAIL BANKING DYNAMIC COMMERCIAL MOMENTUM Successful relationship model 870 8.9 1,400 1,500 676 8.6 550 1,000 8.3 48 34 64 Q2 14 Q2 15 Q2 16 Q2 14 Q2 15 Q2 16 Q2 14 Q2 15 Q2 16 BOURSORAMA NET CLIENT ACQUISITION (‘000) NEW BUSINESS CUSTOMERS NUMBER OF CUSTOMERS SIGHT ACCOUNTS (M) BOURSORAMA C

  24. Slide 24: Solid profitability in a low interest rate and transformation environment

    FRENCH RETAIL BANKING dd SOLID PROFITABILITY IN A LOW INTEREST RATE AND TRANSFORMATION ENVIRONMENT Net Banking Income(1)  Moderate decrease of NBI: -2.0%(1) vs. Q2 15, (in EUR m) -2.5%(1) vs. H1 15 2,129 2,087  Net interest income: -2.7%(1) vs. Q2 15, -4.2% (1) 209 177 FINANCIAL COMMISSIONS vs. H1

  25. Slide 25: Good commercial dynamics across all businesses

    INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES dd GOOD COMMERCIAL DYNAMICS ACROSS ALL BUSINESSES  International Retail Banking International Retail Banking • Strong volume growth in Europe: loans +8%*, deposits Loan and Deposit Outstandings Breakdown +6%* (in EUR bn – change vs. End Q2 15, in

  26. Slide 26: Businesses with high growth potential

    INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES dd BUSINESSES WITH HIGH GROWTH POTENTIAL Revenue Growth in Central and Ongoing Recovery in Romania Strong Volume Growth in Africa Eastern Europe 23 9 14.5 1,145 1,119 13.5 1,047 -7 12.3 H1 14 H1 15 H1 16 H1 14 H1 15 H1 16 H1 14 H1 15 H1 16 NET BANK

  27. Slide 27: Strong financial performance

    INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES dd STRONG FINANCIAL PERFORMANCE Contribution to Group net income** (in EUR m)  Revenues up in all areas: +4.2%* vs. Q2 15 334 321 436 TOTAL  Positive jaws leading to improved Cost to INTERNATIONAL Income: -1pp vs. Q2 15, at 55% 195 RETAIL BANKING

  28. Slide 28: Diversified and well positioned business model to deliver sustained profitability

    GLOBAL BANKING AND INVESTOR SOLUTIONS dd DIVERSIFIED AND WELL POSITIONED BUSINESS MODEL TO DELIVER SUSTAINED PROFITABILITY Rebalanced capital fostering Recognised commercial franchises Financing & Advisory growth 2013 2014 2015 Breakdown of Risk Weighted Assets (in %) Best Export Finance Energy Fina

  29. Slide 29: Revenues increasing sequentially, solid commercial franchises

    GLOBAL BANKING AND INVESTOR SOLUTIONS dd REVENUES INCREASING SEQUENTIALLY, SOLID COMMERCIAL FRANCHISES Equities: Fixed income, Currencies, Commodities: Investor services: Continued improvement, renewed Solid performance driven by rates, Successful client on-boarding and appetite for Structured produ

  30. Slide 30: Resilient contribution confirming diversified business mix

    GLOBAL BANKING AND INVESTOR SOLUTIONS dd RESILIENT CONTRIBUTION CONFIRMING DIVERSIFIED BUSINESS MIX Risk indicators (in EURm)  Net Banking Income down -9.5% vs. strong Q2 15, up +3.3% vs. Q1 16 52 48 43 45 43 S-VAR • Prudent risk management: low VaR at EUR 21m • Resilience and continued market VAR

  31. Slide 31: Conclusion

    INTRODUCTION KEY FIGURES LIQUIDITY AND CAPITAL RATINGS BUSINESS PERFORMANCE CONCLUSION SUPPLEMENT

  32. Slide 32: 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 Agile and focussed Business refocusing Capacity to adapt to platform: delivering: new client behaviour Inc

  33. Slide 33: Key figures

    SOCIETE GENERALE GROUP dd KEY FIGURES Q2 16 Change Q2 vs. Q1 Change Q2 vs. Q2 H1 16 Change H1 vs. H1 In EUR m Net banking income 6,984 +13.1% +1.7% 13,159 -0.5% Operating expenses (4,119) -3.9% -0.1% (8,403) -1.9% Net cost of risk (664) +26.7% -8.3% (1,188) -11.1% Reported Group net income 1,461 +58

  34. Slide 34: Supplement

    INTRODUCTION KEY FIGURES LIQUIDITY AND CAPITAL RATINGS BUSINESS PERFORMANCE CONCLUSION SUPPLEMENT

  35. Slide 35: Half year income statement by core business

    SUPPLEMENT – SOCIETE GENERALE GROUP HALF YEAR 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 H1 16 H1 15 H1 16 H1 15 H1 16 H1 15 H1 16 H1 15 H1 16 H1 15 Net banking inco

  36. Slide 36: Quarterly non economic and other important items

    SUPPLEMENT – SOCIETE GENERALE GROUP QUARTERLY NON ECONOMIC AND OTHER IMPORTANT ITEMS Net Banking Operating Group Net Q2 16 Income Expenses Others Cost of Risk Income Revaluation of own financial liabilities* (212) (139) Corporate Centre Accounting impact of DVA* 1 0 Group Accounting impact of CVA**

  37. Slide 37: Half year non economic and other important items

    SUPPLEMENT – SOCIETE GENERALE GROUP HALF YEAR NON ECONOMIC AND OTHER IMPORTANT ITEMS Net Banking Operating Group Net H1 16 Income Expenses Others Cost of Risk Income Revaluation of own financial liabilities* (67) (44) Corporate Centre Accounting impact of DVA* 1 1 Group Accounting impact of CVA** (7

  38. Slide 38: 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 H1 16 H1 15 H1 16 H1 15 H1 16 H1 15 H1 16 H1 15 H1 16 H1 15 Total IFRIC 21 Impact - costs -85 -6

  39. Slide 39: Clarification of SREP capital requirement - quotes

    SUPPLEMENT – SOCIETE GENERALE GROUP CLARIFICATION OF SREP CAPITAL REQUIREMENT - QUOTES “All things being equal, the Pillar 2 requirements set out in the 2015 SREP decisions provide an indication for the future, especially as we already took full account of the fully loaded capital conservation buffe

  40. Slide 40: CRR/CRD4 prudential capital ratios

    SUPPLEMENT – SOCIETE GENERALE GROUP CRR/CRD4 PRUDENTIAL CAPITAL RATIOS In EUR bn 30/06/2016 31/12/2015 30/06/2015 Shareholder equity Group share 58,5 59,0 56,1 Deeply subordinated notes* (8,9) (9,6) (8,3) Undated subordinated notes* (0,4) (0,4) (0,4) Dividend to be paid & interest on subordinated no

  41. Slide 41: CRR leverage ratio

    SUPPLEMENT – SOCIETE GENERALE GROUP CRR LEVERAGE RATIO CRR fully loaded leverage ratio(1) In EUR bn 30/06/2016 31/12/2015 30/06/2015 Tier 1 Capital 48,4 48,1 45,9 Total prudential balance sheet (2) 1 352 1 229 1 257 Adjustement related to derivative exposures (144) (90) (87) Adjustement related to d

  42. Slide 42: Risk-weighted assets

    SUPPLEMENT – RISK MANAGEMENT RISK-WEIGHTED ASSETS* (CRR/CRD 4, in EUR bn) TOTAL 144.2 361.32 351.2 355.1 133.2 133.3 OPERATIONAL MARKET 105.7 108.6 103.1 2 94.3 96.1 97.8 43.9 CREDIT 43.9 44.1 28.6 21.2 17.4 28.3 28.4 18.4 7.6 19.3 6.0 7.5 0.1 0.1 0.0 19.7 16.1 4.8 17.7 16.7 15.4 4.0 4.8 0.1 0.1 0.1

  43. Slide 43: EAD Corporate: EUR 316bn

    SUPPLEMENT – RISK MANAGEMENT BREAKDOWN OF SG GROUP COMMITMENTS BY SECTOR AT 30 JUNE 2016 EAD Corporate: Others 10% EUR 316bn* Finance & insurance 17% Transport & logistics 6% Telecoms 2% Collective services Real Estate 6% 8% Food & agriculture 4% Business services 8% Consumer goods 2% Chemicals, rub

  44. Slide 44: EAD Corporate: EUR 313bn

    SUPPLEMENT – RISK MANAGEMENT BREAKDOWN OF SG GROUP COMMITMENTS BY SECTOR AT 31 DECEMBER 2015 EAD Corporate: Other 9% Finance & insurance EUR 313bn* 16% Transport & logistics 6% Telecoms 3% Real Estate Collective services 8% 7% Food & agriculture Business services 4% 8% Consumer goods 2% Chemicals, r

  45. Slide 45: Geographic breakdown of SG Group commitments

    SUPPLEMENT – RISK MANAGEMENT GEOGRAPHIC BREAKDOWN OF SG GROUP COMMITMENTS AT 30 JUNE 2016 On-and off-balance sheet EAD* On-balance sheet EAD* All customers included: EUR 859bn All customers included: EUR 675bn Africa and Africa and Latin America Middle East Latin America Middle East Asia-Pacific Asi

  46. Slide 46: Diversified exposure to oil & gas sector

    SUPPLEMENT – SOCIETE GENERALE GROUP DIVERSIFIED EXPOSURE TO OIL & GAS SECTOR Breakdown of Oil & Gas Exposure % of EAD at 30.06.2016 LATIN AMERICA  Lending exposure to the oil and gas sector* at : EASTERN EUROPE 5% 6% • EUR 21.8bn, less than 3% of Group EAD WESTERN EUROPE MIDDLE EAST & 9% AFRICA 31%

  47. Slide 47: GIIPS sovereign exposures

    SUPPLEMENT – RISK MANAGEMENT GIIPS SOVEREIGN EXPOSURES(1) Net exposures(2) (in EUR bn) 30.06.2016 31.03.2016 o.w. positions in o.w. positions in o.w. positions in o.w. positions in Total Total banking book trading book banking book trading book Greece 0.0 0.0 0.0 0.0 0.0 0.0 Ireland 0.0 0.0 0.0 0.0

  48. Slide 48: Insurance subsidiaries' exposures to GIIPS sovereign risk

    SUPPLEMENT – RISK MANAGEMENT INSURANCE SUBSIDIARIES' EXPOSURES TO GIIPS SOVEREIGN RISK Exposures in the banking book (in EUR m) 30.06.2016 31.12.2015 Gross Net Gross Net exposure(1) exposure(2) exposure(1) exposure(2) Greece 0 0 0 0 Ireland 123 6 371 18 Italy 2 766 133 2 473 119 Portugal 13 2 13 2 S

  49. Slide 49: What about Brexit? An agile and efficient set up in Europe

    SUPPLEMENT – SOCIETE GENERALE GROUP WHAT ABOUT BREXIT? AN AGILE AND EFFICIENT SET UP IN EUROPE Societe Generale key competitive advantages:  Positioned in the UK towards wholesale activities with limited exposure to UK corporates  No UK exposure to retail banking  Up and running Paris-London dual

  50. Slide 50: Change in gross book outstandings

    SUPPLEMENT – RISK MANAGEMENT CHANGE IN GROSS BOOK OUTSTANDINGS* End of period in EUR bn 434.6 437.12 431.0 448.56 462.4 3 461.2 461.4 TOTAL 486.4 467.4 GLOBAL BANKING AND INVESTOR SOLUTIONS 156.9 142.7 6 141.7 138.0 143.9 122.3 126.5 6 136.8 124.2 127.7 INTERNATIONAL RETAIL 123.1 123.2 123.8 123.8 B

  51. Slide 51: Non performing loans

    SUPPLEMENT – RISK MANAGEMENT NON PERFORMING LOANS In EUR bn 30/06/2015 31/03/2016 30/06/2016 Gross book outstandings* 458.4 464.7 484.0 Non performing loans* 24.1 23.4 23.4 Gross non performing loans ratio* 5.3% 5.0% 4.8% Specific provisions* 13.4 13.3 13.2 Portfolio-based provisions* 1.3 1.4 1.5 Gr

  52. Slide 52: 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) 24 20 20 24 23 20 20 21 19 8 Trading VaR* 7 8 12 16 7 11 8 6 15 24 CREDIT 15 15 16 14 INTEREST RATES 17 18 16 14 13 14 16 14 EQUITY 12 9 7 8 5 6 2 2 1 4 3 2 3 2 2 3 3 2 2 1 2

  53. Slide 53: Diversified exposure to Russia

    SUPPLEMENT – RISK MANAGEMENT DIVERSIFIED EXPOSURE TO RUSSIA EAD as of Q2 16: EUR 14.5bn(1) ONSHORE FINANCIAL OTHER INSTITUTIONS CORPORATES CORPORATES SOVEREIGN TIER 1(2) 3%2% 10% 26% CAR LOANS 24% 35% MORTGAGES OFFSHORE 51% RETAIL 24% 21% CONSUMER LOANS 4% OTHER (1) EAD net of provisions (2) Top 500

  54. Slide 54: Change in net banking income

    SUPPLEMENT – FRENCH RETAIL BANKING CHANGE IN NET BANKING INCOME  Interest margin(1): -2.7% vs. Q2 15, -4.2% vs. H1 15  Commissions: -0.8% vs. Q2 15, +0.2% vs. H1 15 2,163 2,172 2,189 2,083 2,100 NBI(2) in EUR m 209 193 185 191 177 FINANCIAL COMMISSIONS COMMISSIONS 645 678 667 SERVICE COMMISSIONS 6

  55. Slide 55: Supplement - French Retail Banking: loan outstandings

    SUPPLEMENT – FRENCH RETAIL BANKING LOAN OUTSTANDINGS Change Average outstandings , net of provisions Q2 16 vs. Q2 15 in EUR bn +3.5% 182.4 183.0 176.7 179.0 181.6 INDIVIDUAL CUSTOMERS +5.7% 89.3 91.4 92.2 92.2 o.w.: 87.2 - HOUSING - CONSUMER CREDIT AND 11.0 11.0 10.9 10.9 10.9 -0.9% OVERDRAFT BUSINE

  56. Slide 56: Half year results

    SUPPLEMENT – INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES HALF YEAR RESULTS Financial Services to International Retail Banking Insurance Other Total corporates In EUR m H1 16 H1 15 Change H1 16 H1 15 Change H1 16 H1 15 Change H1 16 H1 15 H1 16 H1 15 Change Net banking income 2,461 2,427 +4.9%

  57. Slide 57: Half year results of International Retail Banking: breakdown by zone

    SUPPLEMENT – INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES HALF YEAR 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 H1 16 H1 15 H1 16 H1 15 H1 16 H1 15 H1 16

  58. Slide 58: 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 June 16 vs. June 15 June 16 vs. June 15 1.1 1.4 -20.7%* O.w. EQUIPMENT +5.2%* 72.2 +4,9%* 16,0 FIN

  59. Slide 59: 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 Q2 16 vs. Q2 15 93.2 92.7 94.8 95.2 95.8 +10.6%* 216 222 22% 21% 21% 21% 21% UNIT 203 LINK

  60. Slide 60: SG Russia

    SUPPLEMENT – INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES SG RUSSIA(1) SG Russia results In EUR m Q2 16 Q2 15 Change H1 16 H1 15 Change Net banking income 169 195 +17.1%* 326 343 +21.8%* Operating expenses (128) (173) +1.3%* (250) (325) -0.4%* Gross operating income 41 22 +128.6%* 76 18 +354.

  61. Slide 61: Presence in Central and Eastern Europe

    SUPPLEMENT – INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES PRESENCE IN CENTRAL AND EASTERN EUROPE Clients NBI Net income C/I RWA 8.1m EUR 1.1bn EUR 178m 61.0% EUR 31.6bn H1 16 NBI RWA Credits Deposits L/D ratio Ranking (In EUR m) (In EUR m) (In EUR m) (In EUR m) Czech Republic 516 13,483 20,81

  62. Slide 62: Presence in Africa

    SUPPLEMENT – INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES PRESENCE IN AFRICA Clients NBI Net income C/I RWA 3.8m EUR 0.6bn EUR 93m 57.8% EUR 18.5bn H1 16 NBI RWA Credits Deposits L/D ratio Ranking (In EUR m) (In EUR m) (In EUR m) (In EUR m) Morocco 193 6,922 7,108 5,846 122% 4th(2) Algeria 65

  63. Slide 63: Half year results

    SUPPLEMENT – GLOBAL BANKING AND INVESTOR SOLUTIONS HALF YEAR RESULTS Global Markets and Investor Services Financing and Advisory Asset and Wealth Management Total Global Banking and Investor Solutions H1-16 H1-15 Change H1-16 H1-15 Change H1-16 H1-15 Change H1-16 H1-15 Change In M EUR Net banking in

  64. Slide 64: 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 63.0 59.5 59.2 14.0 12.5 12.1 2.2 20.7 0.2 19.5 19.6 3.2 3.2 0.1 0.0 17.0 16.7 15.7 11.6 9.2 8.9 25.3 23.3 23.9 Q2 Q215 15 Q1 16 Q2 16 Q2 15 Q1 16 Q

  65. Slide 65: CVA/DVA impact

    SUPPLEMENT – GLOBAL BANKING AND INVESTOR SOLUTIONS CVA/DVA IMPACT NBI impact Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Equities (6) (32) 14 (12) (11) Fixed income,credit,currencies,commoditie 34 (31) (4) (8) (4) Financing and Advisory 22 (23) 8 0 (8) Total 50 (86) 18 (20) (23) 2NDPRESENTATION TO DEBT QUARTER AN

  66. Slide 66: Details on Group funding structure

    SUPPLEMENT – FUNDING STRUCTURE DETAILS ON GROUP FUNDING STRUCTURE 31 DECEMBER 2015 30 JUNE 2016 DUE TO CUSTOMERS 400 380 o.w. Securities sold to customer under repurchase 22 DUE TO BANKS 20 agreements 95 104 o.w. Securities sold to FINANCIAL LIABILITIES AT FAIR VALUE 12 bankunder repurchase 11 THROU

  67. Slide 67: Funded balance sheet and consolidated balance sheet

    SUPPLEMENT – FUNDING ANALYSIS FUNDED BALANCE SHEET* AND CONSOLIDATED BALANCE SHEET In EUR bn ASSETS LIABILITIES ASSETS LIABILITIES 736 736 In EUR bn 1,460 1,460 SHORT TERM DUE TO CENTRAL 55 BANKS RESOURCES NET CENTRAL 8 NET CENTRAL 103 BANK DEPOSIT 14 OTHER BANK DEPOSIT 106 104 DUE TO BANKS INTERBAN

  68. Slide 68: Stress-test EBA: confirmation of management buffer

    CAPITAL STRESS-TEST EBA : CONFIRMATION OF MANAGEMENT BUFFER  Althought no « Pass/fail » status, ECB expects credit institutions to be above a « 5.5% + G-SIFI buffer » floor in case of adverse scenario Gaps between 2018 CET1 post stress and ECB floor 1.53% 1.0% INTESA BBVA SANTANDER COMMERZ. RBS SG

  69. Slide 69: Net asset value, tangible net asset value

    SUPPLEMENT – SHARE NET ASSET VALUE, TANGIBLE NET ASSET VALUE End of period H1 16 Q1 16 2015 H1 15 Shareholder equity Group share 58,475 59,039 59,037 56,146 Deeply subordinated notes (8,944) (8,823) (9,552) (8,282) Undated subordinated notes (373) (358) (366) (356) Interest net of tax payable to hol

  70. Slide 70: ROE equity

    SUPPLEMENT – SHARE ROE EQUITY End of period H1 16 Q1 16 2015 H1 15 Shareholder equity Group share 58,475 59,039 59,037 56,146 Deeply subordinated notes (8,944) (8,823) (9,552) (8,282) Undated subordinated notes (373) (358) (366) (356) Interest net of tax payable to holders of deeply subordinated not

  71. Slide 71: Methodology (1/5)

    TECHNICAL SUPPLEMENT METHODOLOGY (1/5) 1 – The Group’s consolidated results as at June 30th, 2016 were examined by the Board of Directors on August 2nd, 2016. The limited examination procedures carried out by the Statutory Auditors are in progress on the summarised interim consolidated financial sta

  72. Slide 72: Methodology (2/5)

    TECHNICAL SUPPLEMENT METHODOLOGY (2/5) Q2 16 Q2 15 H1 16 H1 15 Net Cost of Risk (EUR m) 157 169 323 380 French Retail Banking Gross Book outstanding (EUR m) 187,263 178,922 187,750 178,526 Cost of Risk in bp 33 38 34 43 Net Cost of Risk (EUR m) 185 283 401 618 International Retail Banking and Gross

  73. Slide 73: 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 allowi

  74. Slide 74: Methodology (4/5)

    TECHNICAL SUPPLEMENT METHODOLOGY (4/5) ASSETS (EUR bn) LIABILITIES (EUR bn) Accounting financial statem ent Q2-16 Econom ic balance sheet Q2-16 Accounting financial statem ent Q2-16 Econom ic balance sheet Q2-16 Cash, due from central banks 106 Due to central banks 3 Cash, due from central banks 106

  75. Slide 75: Methodology (5/5)

    TECHNICAL SUPPLEMENT METHODOLOGY (5/5) In EUR bn Economic balance sheet Q2-16 Funded balance sheet Q2-16 Differences Cash, due from central banks 106 Net central bank deposit 103 -3 Interbank loans 38 Interbank loans 38 Trading securities 85 Client related trading assets 79 -6 AFS and HTM securities

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