Societe Generale S.a. Class A · EURONEXT:GLE
Societe Generale S.a. Class A — FY2016 Earnings Presentation
87 slides from Societe Generale S.a. Class A's earnings presentation, Feb 9, 2017
Slide 1: Societe Generale Group Results Full-Year and Fourth Quarter 2016
S O C I E T E G E N E R AL E G RO UP RESULT S FULL-YEAR AND FOURT H QUART ER 2016 09.02.2017
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements relating to the targets and strategies of the Societe Generale Group. These forward-looking statements are based on a series of assumptions, both general and specific, in particular the application of accounting principles and methods
Slide 3: Introduction
SOCIETE GENERALE INTRODUCTION BUILDING TEAM SI “i iS S=
Slide 4: 2016: Strong operating results, Group net income up 15.3% vs. 2015
1 – I NT RO DUCTI O N 2016: STRONG OPERATING RESULTS, GROUP NET INCOME UP +15.3%(1) VS. 2015 Increased Group revenues(1) Group NBI(1) vs. 2015 Strong dynamics in International Retail Banking and Financial Services Resilient performance in French Retail Banking and Global Banking and Investor Solutio
Slide 5: Q4 16: Best Q4 operating income since beginning of Group transformation
1 – I NT RO DUCTI O N Q4 16: BEST Q4 OPERATING INCOME SINCE THE BEGINNING OF GROUP TRANSFORMATION Group Operating Income(1) (in EUR m) Strong performance reflecting progress on all operational drivers x2 Diversified revenue base with strong momentum in International Retail Banking and Financial Serv
Slide 6: 2014-2016: Continued transformation of the model
1 – I NT RO DUCTI O N 2014-2016: CONTINUED TRANSFORMATION OF THE MODEL – STRENGTHENING THE GROUP’S GROWTH DRIVERS Allocating Capital to Core Business Refocusing and De-risking and High Synergy Businesses Private Banking activities in Asia Consumer credit in Brazil ~70 transactions during 2014-2016 w
Slide 7: Leveraging the growth potential of a well balanced business model
1 - I NT RO DUCTI O N LEVERAGING THE GROWTH POTENTIAL OF A WELL BALANCED BUSINESS MODEL 2016 figures RONE Net Banking Income (EUR m) French Retail Banking Resilient business model 8,403 Strong commercial activity in negative rate environment 14% 9,309 Development of fee based activities 7,572 Intern
Slide 8: Main 2014 ID targets delivered
1 – I NT RO DUCTI O N MAIN 2014 ID-TARGETS DELIVERED Operational excellence supporting strong value creation Solid operating performance in adverse economic sheet (ID operational targets vs. actual) conditions NBI growth Costs Cost of Risk CAGR +3% CAGR+1% 55-60bp +2% +1% 25.7 16.8 81 24.4 16.1 37 2
Slide 9: Group
SOCIETE BUILDING TEAM SPIRIT GENERALE TOGETHER
Slide 10: Cost discipline delivering
2 - G RO UP COST DISCIPLINE DELIVERING Group costs (EUR bn) Frugal and value for money principles drive Group Operating Costs (In EUR Bn) successful focus on costs 16.9 16.8 Total Costs -0.4% 0.1 2016 costs down -0.4% vs. 2015 0.2 0.3 SRFcharge 0.2 Costs incurred from +0.8% excluding Euribor refund
Slide 11: 2013-2016: Structural de-risking of portfolio
2 – G RO UP 2013-2016: STRUCTURAL DE-RISKING OF PORTFOLIO French Retail Banking 66 56 43 36 Commercial Cost Prudent credit origination of Risk (bp) 2013 2014 2015 2016 International Retail Banking and Financial Services 150 123 102 64 Commercial Cost Structural de-risking of portfolio of Risk (bp) 2
Slide 12: 2014-2016: Strengthening of balance sheet completed
2 – G RO UP 2014-2016: STRENGTHENING OF BALANCE SHEET COMPLETED Allocation of Capital Generated 2013-2016 (in bp) All balance sheet targets reached or exceeded at Hybrid coupons end-2016 40 Dividend CET1(1) at 11.5% 131 provision Benefiting from strong earnings generation: Earnings 322 9 RWA 50bp p.
Slide 13: Q4 16: High operating performance, operating income doubled vs. Q4 15
2 – G RO UP Q4 16: HIGH OPERATING PERFORMANCE, OPERATING INCOME DOUBLED VS. Q4 15 In EUR m Q4 16 Q4 15 Change Strong operating performance Net banking income 6,129 6,053 +1.3% +2.0%* Contribution of core businesses to operating income Net b anking income(1) 6,177 6,098 +1.3% +2.0%* doubled vs. Q4 15
Slide 14: 2016: A balanced business model delivering value
2 – G RO UP 2016: A BALANCED BUSINESS MODEL DELIVERING VALUE In EUR m 2016 2015 Change Net banking income 25,298 25,639 -1.3% -0.5%* NBI from core businesses stable overall Net b anking income(1) 25,653 24,968 +2.7% +3.7%* Operating expenses (16,817) (16,893) -0.4% +0.3%* Gross operating income 8,48
Slide 15: Business Results
3 BUSINESS RESULTS SOCIETE BUILDING TEAM SPIRIT GENERALE TOGETHER
Slide 16: Strong 2016 commercial dynamism - French Retail Banking
3 – BUSI NESS RESUL T S - FRENCH RET AI L BANKI NG STRONG 2016 COMMERCIAL DYNAMISM Good net individual client acquisition Solid growth in credit & deposits outstanding Loan Production 2016 Loans Outstanding(1) Business customers: +22%(2) p;a. since 2014 (EUR bn) +3% vs. 2015 Strong customer acquisit
Slide 17: Robust profitability despite interest rate headwinds
3 – BUSI NESS RESUL TS - FRENCH RET AI L BANKI NG ROBUST PROFITABILITY DESPITE INTEREST RATE HEADWINDS Net Banking Income(1) (in EUR m) NBI down -3.5%(1) in Q4-16 and in 2016, impacted by drop in net interest margin 2,167 2,106 2,087 2,059 2,090 8,649 8,343 Financial Lower reinvestment yield on depo
Slide 18: 2017: Accelerating deep transformation
3 – BUSI NESS RESUL T S - FRENCH RET AI L BANKI NG 2017: ACCELERATING DEEP TRANSFORMATION Optimising Synergies Grow fee business in a context of pressure on margins Mid-Cap Private Banking Investment Banking Develop synergies and focus on corporate business Propose new products and services Boursora
Slide 19: Geographic and product mix delivering growth
3 – BUSI NESS RESUL T S - I NT ERNATI O NAL RETAI L BANKI NG AND F I NANCI AL SERVI CES GEOGRAPHIC AND PRODUCT MIX DELIVERING GROWTH Loan and Deposit Outstandings (in EUR bn – change vs. end-2015, in %*) International Retail Banking +6.6%* 83.9 75.2 +4.9%* Total Sustained pace of loan growth in Euro
Slide 20: Growth engines delivering steady profitability
3 – BUSI NESS RESUL T S - I NT ERNATI O NAL RETAI L BANKI NG AND F I NANCI AL SERVI CES GROWTH ENGINES DELIVERING STEADY PROFITABILITY Contribution to Group Net Income** (in EUR m) Strong revenue growth 68 292 438 Total Strict control of operating expenses 212 International Retail Banking 109 Record
Slide 21: Positive outlook for 2017
3 – BUSI NESS RESUL T S - I NT ERNATI O NAL RETAI L BANKI NG AND F I NANCI AL SERVI CES POSITIVE OUTLOOK FOR 2017 IMF GDP growth estimates Upside potential in International Retail Banking 3.9% 4.3% Supportive macroeconomic conditions 3.2% 3.3% 3.0% 2.3% 3.8% 1.6% 1.5% 1.4% 3.4% Increasing demand wit
Slide 22: Intention to float ALD
3 – BUSI NESS RESUL TS - I NTERNATI O NAL RETAI L BANKI NG AND FI NANCI AL SERVI CES INTENTION TO FLOAT ALD ALD Key Facts ALD Market Position Global Fleet Management company with 1.4m vehicles Higher demand for innovative best geographic coverage #1 in Europe outsourced mobility solutions #3 worldwi
Slide 23: Client centric model delivering sustainable revenues
3 – BUSI NESS RESUL TS – G L O BAL BANKI NG AND I NVESTO R SO L UT I O NS CLIENT CENTRIC MODEL DELIVERING SUSTAINABLE REVENUES Global Markets and Investors Services: Net Banking Income Stable 2016 NBI benefiting from a balanced (in EUR m) (in EUR bn) business model 2,192 +1.5% 2,225 9.5 -2.0% 9.3 To
Slide 24: Resilient contribution from a transformed business model
3 – BUSI NESS RESUL TS - G L O BAL BANKI NG AND I NVESTO R SO L UT I O NS RESILIENT CONTRIBUTION FROM A TRANSFORMED BUSINESS MODEL Contribution to Group Net Income (EURm) and RONE Net Banking Income up +1.5% 11.8% vs. Q4 15 and down -2.0% vs. 2015 7.2% Financing and Advisory 217 Operating expenses -
Slide 25: 2017: Continued successful adaptation
3 – BUSI NESS RESUL T S - G L O BAL BANKI NG AND I NVESTO R SO L UT I O NS 2017: CONTINUED SUCCESSFUL ADAPTATION Further gain market shares on key franchises Continue to foster operational efficiency Client revenues 2014-2016 CAGR EUR 134m of additional savings in 2017 2015-2017 cost savings plan 75
Slide 26: Corporate Centre
3 – BUSI NESS RESUL TS – CO RPO RATE CENTRE CORPORATE CENTRE Corporate Centre Results NBI impact of revaluation of own financial liabilities EUR -354m in 2016 vs. EUR +782m in 2015 In EUR m Q4 16 Q4 15 2016 2015 Net banking income (214) (147) 14 167 Net b anking income (1) (164) (108) 368 (615) Oper
Slide 27: Conclusion
SOCIETE GENERALE CONCLUSION BUILDING TEAM SI “i iS S=
Slide 28: 2014-2016: Generating value through Group transformation
4 – CO NCL USI O N 2014-2016: GENERATING VALUE THROUGH GROUP TRANSFORMATION Net Asset Value Per Share and Net Tangible Asset Value Per Share (EUR) Strong Shareholder Value Creation 56.46 61.62 63.66 Net Tangible Asset Value Per Share up +5.8% (CAGR) 57.96 since end-2013 48.82 51.43 55.94 57.77 2013
Slide 29: Looking forward: a proven capacity to keep the pace of transformation
4 – CO NCL USI O N LOOKING FORWARD: A PROVEN CAPACITY TO KEEP THE PACE OF TRANSFORMATION French Retail Banking International Retail Banking Global Banking and Financial Services and Investor Solutions Maintain momentum Accelerate Capitalise from a transformed transformation plan on upside potential
Slide 30: Finalising Group transformation after the financial crisis
4 – CO NCL USI O N FINALISING GROUP TRANSFORMATION AFTER THE FINANCIAL CRISIS Innovation Culture Impact Client Roll-out the Culture and Conduct Focus organisation on client needs Accelerate digital transformation in programme throughout the Group all businesses Looking into the future to deliver val
Slide 31: Key Figures
SOCIETE GENERALE KEY FIGURES BUILDING TEAM SI “i iS S=
Slide 32: Key figures
5 – KEY F I G URES KEY FIGURES Q4 16 Change Q4 vs. Q3 Change Q4 vs. Q4 2016 Change 2016 vs. 2015 In EUR m Net banking income 6,129 +2.0% +1.3% 25,298 -1.3% Operating expenses (4,398) +9.5% +1.1% (16,817) -0.4% Net cost of risk (486) +16.5% -58.0% (2,091) -31.8% Reported Group net income 390 -64.5% -
Slide 33: Supplement
SUPPLEMENT SOCIETE GENERALE BUILDING TEAM SPIRIT
Slide 34: Table of contents
6 – S U P P L E ME N T TABLE OF CONTENTS Societe Generale Group International Retail Banking and Financial Services Quarterly income statement by core business 35 Quarterly results 55 Annual income statement by core business 36 Annual results 56 Quarterly non economic and other important items 37 Qu
Slide 35: Quarterly income statement by core business
6 – 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 Q4 16 Q4 15 Q4 16 Q4 15 Q4 16 Q4 15 Q4 16 Q4 15
Slide 36: Annual income statement by core business
6 – 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 ANNUAL 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 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 N
Slide 37: Quarterly non economic and other important items
6 – 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 NON ECONOMIC AND OTHER IMPORTANT ITEMS In EUR m Net Banking Operating Group Net Q4 16 Income Expenses Others Cost of Risk Income Revaluation of own financial liabilities* (50) (33) Corporate Centre Accounting impact of DVA* 2
Slide 38: Annual non economic and other important items
6 – 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 ANNUAL NON ECONOMIC AND OTHER IMPORTANT ITEMS In EUR m Net Banking Operating Group Net 2016 Income Expenses Others Cost of Risk Income Revaluation of own financial liabilities* (354) (232) Corporate Centre Accounting impact of DVA* (1)
Slide 39: CRR/CRD4 prudential capital ratios
6 – 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 bn 31/12/2016 31/12/2015 Shareholder equity Group share 62.0 59.0 Deeply subordinated notes* (10.7) (9.6) Undated subordinated notes*
Slide 40: CRR/CRD4 Common Equity Tier One ratio
6 – 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 COMMON EQUITY TIER ONE RATIO(1) Change from Q3 16 -4bp +3bp +2bp +30bp -11bp -11bp 11.4% 11.5% Q3 16 Earnings Dividend provision RWA Portfolio Others Q4 16 Adjustments Change from end-2015 -13bp -48bp +10bp +10bp +114bp -10bp 1
Slide 41: Upcoming TLAC requirements already met
6 – 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 UPCOMING TLAC REQUIREMENTS ALREADY MET TLAC ratio* (% RWA) TLAC ratio (% leverage) 21.1% TLAC RATIO End-2016 TLAC level already above 2019 regulatory Senior Preferred requirements 2.5% Senior Non Preferred Including Senior Preferred deb
Slide 42: CRR leverage ratio
6 – 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) In EUR bn 31/12/2016 31/12/2015 Tier 1 Capital 51.5 48.1 Total prudential balance sheet (2) 1,270 1,229 Adjustement related to derivative exposures (112) (90) Adjustement related to
Slide 43: Risk-weighted assets
6 – S U P P L E ME N T - R I S K MA N A G E M E N T RISK-WEIGHTED ASSETS* (CRR/CRD 4, IN EUR BN) 97.2 97.3 105.5 110.3 112.7 138.2 130.7 131.0 16.4 15.4 14.4 356.7 353.6 355.5 Total 96.6 Operational 43.9 44.1 44.4 Market 28.3 19.3 17.1 16.9 Credit 28.4 29.3 7.0 7.6 0.0 4.7 4.8 4.8 7.5 0.1 18.6 0.1 0
Slide 44: Breakdown of SG Group commitments by sector at 31.12.2016
6 – S U P P L E ME N T - R I S K MA N A G E M E N T BREAKDOWN OF SG GROUP COMMITMENTS BY SECTOR AT 31.12. 2016 Hotels & Catering Automobiles Machinery and equipment Construction 1% 2% 3% 3% Metals, minerals Transport equip. manuf. 4% 2% Oil and gas 7% Wholesale trade 9% Retail trade 5% Business serv
Slide 45: Geographic breakdown of SG Group commitments at 31.12.2016
6 – S U P P L E ME N T - R I S K MA N A G E M E N T GEOGRAPHIC BREAKDOWN OF SG GROUP COMMITMENTS AT 31.12.2016 On-and off-balance sheet EAD* On-balance On-balance sheet EAD* sheet EAD* All customers included: EUR 878bn All customers included:EUR customers included: EUR648bn 648bn Latin Africa and La
Slide 46: Cost of risk
6 – S U P P L E ME N T - R I S K MA N A G E M E N T COST OF RISK Cost of Risk(1) (in bp) 2015 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 2016 French Retail Banking 43 43 35 36 39 36 33 French Retail Banking Cost of risk under control over the year International Retail Banking and Financial Services 102 104 74 64
Slide 47: Change in gross book outstandings
6 – S U P P L E ME N T - R I S K MA N A G E M E N T CHANGE IN GROSS BOOK OUTSTANDINGS* End of period in EUR bn 431.0 448.6 448.5 462.3 448.6 462.4 461.2 462.3 469.1 461.4 467.4 486.4 477.6 477.5 479.1 Total Global Banking and Investor Solutions 156.9 154.01 152.2 6 142.7 141.7 138.0 143.9 136.8 124.
Slide 48: Non performing loans
6 – S U P P L E ME N T - R I S K MA N A G E M E N T NON PERFORMING LOANS In EUR bn 31/12/2016 30/09/2016 31/12/2015 Gross book outstandings* 479.1 477.6 461.4 Doubtful loans* 23.9 24.6 24.6 Group Gross non performing loans ratio* 5.0% 5.1% 5.3% Specific provisions* 13.7 14.3 14.3 Portfolio-based pro
Slide 49: Change in trading VaR and stressed VaR
6 – S U P P L E ME N T - R I S K MA N A G E M E N T CHANGE IN TRADING VAR* AND STRESSED VAR Quarterly average of 1-day, 99% Trading VaR* (in EUR m) 20 24 19 23 20 20 21 21 22 Trading VaR* 8 7 8 12 11 8 Credit 7 8 6 15 24 15 16 Interest Rates 15 16 17 14 16 14 13 14 Equity 14 16 14 12 12 8 5 6 4 Fore
Slide 50: Diversified exposure to Russia
6 – S U P P L E ME N T - R I S K MA N A G E M E N T DIVERSIFIED EXPOSURE TO RUSSIA EAD as of Q4 16: EUR 15.7bn(1) Other ONSHORE Financial Institutions Corporates Corporates Tier 1(2) 5% 3% Sovereign 10% 27% Car loans 23% 36% Mortgages 51% Retail 22% 19% Consumer loans 4% OFFSHORE Other (1) EAD net o
Slide 51: Change in net banking income - French Retail Banking
6 – 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 2,189 2,083 2,100 2,043 2,042 2,177 NBI(2) in EUR m 185 180 Financial Commissions 191 177 174 Commissions: +1.1% vs. Q4 15, -0.4% vs. 2015 667 681 Service Commissions 668 671 672 152 123 Other(2) 106 100 71 Bu
Slide 52: Customer deposits and financial savings
6 – 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 Average outstandings Change in EUR bn Q4 16 vs. Q4 15 295.2 298.2 +5.0% 284.0 283.9 289.3 Financial savings: Life insurance EUR 110.9bn 90.7 +1.6% 90.0 90.5 +0.3% 89.3 89.5 Mutual funds 17.4 19.7 -4
Slide 53: Loan outstandings
6 – 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 LOAN OUTSTANDINGS Average outstandings, net of provisions Change in EUR bn Q4 16 vs. Q4 15 181.6 182.4 183.0 183.8 184.0 +1.3% Individual Customers o.w.: 92.9 +2.3% Housing 91.4 92.2 92.2 93.6 Consumer credit 10.9 10.9 10.9 10.9 11.1 +1.1
Slide 54: Awards
6 – 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 AWARDS N° 1 DE LA SATISFACTION CLIENT Label d’excellence 2016 – offre bancaire aux particuliers LIBERAL PROFESSIONS SEGMENT Les Dossiers de l'Epargne - Edition CSA 2016 competitor barometer conducted on 2016 clients of 11 main French bank
Slide 55: Quarterly results - International Retail Banking and Financial Services
6 – S U P P L E ME N T - I N TE R N A T I 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 International Retail Banking Insurance Financial Services to corporates Other Total In EUR m Q4 16 Q4 15 Change Q4 16 Q4 15 Change Q4 16 Q4 15 Change Q4 16 Q4 15 Q4 16
Slide 56: Annual results - International Retail Banking and Financial Services
6 – S U P P L E ME N T - I N TE R N A T I 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 ANNUAL RESULTS Financial Services to International Retail Banking Insurance Other Total corporates In EUR m 2016 2015 Change 2016 2015 Change 2016 2015 Change 2016 2015 2016 2015 Change
Slide 57: Quarterly results of International Retail Banking: breakdown by zone
6 – S U P P L E ME N T - I N TE R N A T I 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 ZONE Total International retail Western Europe Czech Republic Romania Other Europe Russia (1) Africa and others Banking I
Slide 58: Annual results of International Retail Banking: breakdown by zone
6 – S U P P L E ME N T - I N TE R N A T I 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 ANNUAL 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
Slide 59: Loan and deposit outstandings breakdown
6 – S U P P L E ME N T - I N TE R N A T I 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 Deposit outstandings breakdown (in EUR bn) (in EUR bn) Change Change Dec 16 vs. Dec 15 Dec 16 vs. Dec 15 1.0 -21.0%*
Slide 60: Insurance key figures
6 – S U P P L E ME N T - I N TE R N A T I 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 and unit linked breakdown (in EUR bn) (in EUR m) Change Q4 16 vs. Q4 15 94.8 95.2 95.8 97.0 98.3
Slide 61: SG Russia
6 – S U P P L E ME N T - I N TE R N A T I 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 Q4 16 Q4 15 Change 2016 2015 Change Net banking income 188 189 -2.4%* 688 725 +8.3%* Operating expenses (137) (133) -0.9%* (519) (597) +0.5%* Gro
Slide 62: Presence in Central and Eastern Europe
6 – S U P P L E ME N T - I N TE R N A T I 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 PRESENCE IN CENTRAL AND EASTERN EUROPE Clients NBI Net income C/I RWA 7.5m EUR 2.3bn EUR 395m 58.9% EUR 31.8bn 2016 NBI RWA Credits Deposits L/D ratio Ranking (In EUR m) (In EUR m) (In
Slide 63: Presence in Africa
6 – S U P P L E ME N T - I N TE R N A T I 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 PRESENCE IN AFRICA Clients NBI Net income C/I RWA 3.8m EUR 1.2bn EUR 192m 55.8% EUR 19.3bn 2016 2016 NBI RWA Credits Deposits L/D ratio Ranking (In EUR m) (In EUR m) (In EUR m) (In EUR
Slide 64: Awards
6 – S U P P L E ME N T - I N TE R N A T I 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 AWARDS International Retail Banking Financial Services to Corporates and Insurance Customer Service Best Leasing Company Best in operational Zlatá koruna of the Year 2017 Rental Company
Slide 65: Quarterly results - Global Banking and Investor Solutions
6 – 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 QUARTERLY RESULTS Global Markets and Investor Financing and Advisory Asset and Wealth Management Total Global Banking and Investor Solutions Services Q4 16 Q4 15 Change Q4 16 Q4 15 Change Q4 16 Q4 15 Change Q4 1
Slide 66: Annual results - Global Banking and Investor Solutions
6 – 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 ANNUAL RESULTS Global Markets and Investor Services Financing and Advisory Asset and Wealth Management Total Global Banking and Investor Solutions 2016 2015 Change 2016 2015 Change 2016 2015 Change 2016 2015 Cha
Slide 67: Risk-weighted assets in EUR bn
6 – 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 Global Markets Investor Services 62.5 58.2 59.2 11.8 11.0 10.9 20.6 2.1 19.6 20.2 0.1 3.2 3.3 0.0 0.0 16.9 15.2 15.3 9.6 7.8 7.5 25.1 23.3 23.8
Slide 68: Revenues
6 – 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) 5 7 6 3 Others 161 176 34 8 135 Prime 44 Lyxor 159 43 42 171 149 Services 161 159 Securities 32 1
Slide 69: Key figures
6 – 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(2) (in EUR bn) 117 119 116 104 101 101 103 106 113 110 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q4 15 Q1 16 Q2 16 Q3 16 Q4
Slide 70: CVA/DVA impact
6 – 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 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Equities 14 (12) (11) 26 8 Fixed income,currencies,commodities (4) (8) (4) 29 23 Financing and Advisory 8 0 (8) 18 19 Total 18 (20) (23) 73 50 FULL-YEAR AN
Slide 71: Awards
6 – 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 AWARDS Financing and Advisory Global Markets and Investor Services DCM - League Table #6 All Euro Bonds DCM - League Table #3 All Euro Corporate Bonds #7 All Euro Bonds #2 All EMEA Euro Corporate Bonds #7 All Eu
Slide 72: Landmark transactions in Q4 16
6 – 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 LANDMARK TRANSACTIONS IN Q4 16 Societe Generale acted as Financial Advisor, Mandated Lead Societe Generale acted as Co-Arranger and Documentation Agent Arranger and Hedge Provider in the USD 875m financing to Vi
Slide 73: Details on Group funding structure
6 – S U P P L E ME N T - F U N D I N G DETAILS ON GROUP FUNDING STRUCTURE 31 31DECEMBER DECEMBER2015* 2015 3131 MARS 20162016 DECEMBER DUE TO CUSTOMERS 421 380 DUE TO BANKS o.w. Securities sold to 20 customer under repurchase 24 agreements FINANCIAL LIABILITIES AT FAIR VALUE 95 83 o.w. Securities so
Slide 74: Long term funding programme
6 – S U P P L E ME N T - F U N D I N G LONG TERM FUNDING PROGRAMME Parent company 2016 funding programme EUR 28.1bn Including EUR 17bn of structured notes Completed at 107% at 31st December 2016 (EUR 30.1bn, including 60% of structured notes) Competitive funding conditions: MS6M+39bp, average maturi
Slide 75: Funded balance sheet
6 – S U P P L E ME N T - F U N D I N G FUNDED BALANCE SHEET* In EUR bn Assets ASSETS Liabilities LIABILITIES 742 742 58 Short term resources Long Term Funding Breakdown(1) Net central bank 93 deposit 11 Other 31.12.16 Interbank loans 30 Medium/long term Client related trading 157 1% Resources** asse
Slide 76: Short term wholesale funding
6 – S U P P L E ME N T - F U N D I N G SHORT TERM WHOLESALE FUNDING Share of short term wholesale financing Short term wholesale resources* (in EUR bn) in the funded balance sheet* and short term needs coverage** (%) 222% 214% 204% 207% 195% 169% 145% 15% 100 9% 58 55 55 58 8% 7% 7% 8% 52 47 6% 2013
Slide 77: Liquid asset buffer
6 – 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) 167 166 175 156 168 64 64 Central Bank 73 deposits(1) 98 64 90 91 High quality liquid 78 79 asset securities(2) 64 Central Bank eligible 13 11 13 14 16 assets(2) Q4 15 * Q1 16 Q2 16 Q3 16 Q4 16 Liquidity Cover
Slide 78: EPS calculation
6 – S U P P L E ME N T - S H A R E EPS CALCULATION Average number of shares (thousands) 2016 2015 2014 Existing shares 807,293 805,950 801,831 Deductions Shares allocated to cover stock option plans 4,294 3,896 4,404 and free shares awarded to staff Other ownshares and treasury shares 4,232 9,551 16
Slide 79: Net asset value, tangible net asset value
6 – S U P P L E ME N T - S H A R E NET ASSET VALUE, TANGIBLE NET ASSET VALUE End of period 2016 2015 2014 Shareholders' equity Group share 61,953 59,037 55,229 Deeply subordinated notes (10,663) (9,552) (9,364) Undated subordinated notes (297) (366) (335) Interest net of tax payable to holders of de
Slide 80: ROE equity
6 – S U P P L E ME N T - S H A R E ROE EQUITY End of period 2016 2015 2014 Shareholders' equity Group share 61,953 59,037 55,229 Deeply subordinated notes (10,663) (9,552) (9,364) Undated subordinated notes (297) (366) (335) Interest net of tax payable to holders of deeply subordinated notes & undat
Slide 81: Changing economic environment
6 – S U P P L E ME N T CHANGING ECONOMIC ENVIRONMENT Lower interest rates environment France Government Bonds Interest rate – 10y 3.0 3.0 2.2 2.5 2014 ID projected rates 1.7 0.8 0.5 Actual (source OECD, Jan. 2017) 2013 2014 2015 2016 Economic slowdown and increased uncertainty reducing demand Averag
Slide 82: Methodology (1/5)
6 – TE C H N I C A L S U P P L E M E N T METHODOLOGY (1/5) 1 – The Group’s consolidated results as at December 31st, 2016 were approved by the Board of Directors on February 8th, 2017. The financial information presented in respect of Q4 and the year ended December 31st, 2016 has been prepared in ac
Slide 83: Methodology (2/5)
6 – TE C H N I C A L S U P P L E M E N T METHODOLOGY (2/5) Q4-16 Q4-15 2016 2015 Net Cost of Risk (EUR m) 184 199 679 773 French Retail Banking Gross loan outstandings (EUR m) 187,465 184,970 188,049 181,467 Cost of Risk in bp 39 43 36 43 Net Cost of Risk (EUR m) 161 302 763 1,185 International Reta
Slide 84: Methodology (3/5)
6 – TE C H N I C A L S U P P L E M E N T 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
Slide 85: Methodology (4/5)
6 – TE C H N I C A L S U P P L E M E N T METHODOLOGY (4/5) ASSETS in EUR bn LIABILITIES in EUR bn Accounting financial statement Q4-16 Economic balance sheet Q4-16 Accounting financial statement Q4-16 Economic balance sheet Q4-16 Cash, due from central banks 96 Due to central banks 3 Cash, due from
Slide 86: Methodology (5/5)
6 – TE C H N I C A L S U P P L E M E N T METHODOLOGY (5/5) In EUR bn Economic balance sheet Q4-16 Funded balance sheet Q4-16 Variations Cash, due from central banks 96 Net central bank deposits 93 -3 Interbank loans 30 Interbank loans 30 Trading securities 85 Client related trading assets 95 10 AFS
Slide 87: Investor Relations Team
INVESTOR RELATIONS TEAM +33 (0)1 42 14 47 72 investor.relations@socgen.com www.societegenerale.com/en/investors