Societe Generale S.a. Class A · EURONEXT:GLE
Societe Generale S.a. Class A — Debt Investor Presentation (September 2020)
86 slides from Societe Generale S.a. Class A's debt investor presentation, September 2020
Slide 1: Presentation to Debt Investors
PRESENTATION TO DEBT INVESTORS 2nd quarter 2020 | September 2020
Slide 2: Disclaimer
DISCLAIMER The information contained in this document (the “Information”) has been prepared by Societe Generale 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 distributed
Slide 3: Key Highlights and Group Performance
1 KEY HIGHLIGHTS AND GROUP PERFORMANCE
Slide 4: Q2 20 Results: Impact of Covid in April and May
Q2 20 RESULTS : IMPACT OF COVID IN APRIL AND MAY, IMPROVEMENT IN ALL ACTIVITIES SINCE MID-MAY BUSINESS DECREASE CONFIRMING STRONG CAPITAL PERFORMANCE IN COSTS COST OF RISK AND LIQUIDITY GUIDANCE POSITION Revenues from businesses: Continued decrease in Q2 20 cost of risk at CET 1 level at 12.5%(2) -1
Slide 5: Q2 Group Performance
Q2 20 GROUP PERFORMANCE INSURANCE FRENCH INTERNATIONAL GLOBAL BANKING AND CORPORATE AND FINANCIAL RETAIL BANKING RETAIL BANKING INVESTOR SOLUTIONS CENTRE SERVICES Peak impact of the crisis in April Revenues impacted by Resilient Insurance activity Strong revenue performance in Gross operating Income
Slide 6: Decreasing Costs
DECREASING COSTS _Underlying costs (EURbn) DEMONSTRATED CAPACITY TO DECREASE COSTS, 17.6 17.4 DESPITE COVID COSTS AND INCREASE IN REGULATORY COSTS ~16.5 2019: -1.1% vs. 2018 H1 20: -5.8% vs. H1 19 Q2 20: -9.6% vs. Q2 19 #1 PRIORITY : DECREASE GROUP COST IN 2020 AND BEYOND 2018 2019 2020 PRESENTATION
Slide 7: Cost of Risk Reflecting Covid-19 and IFRS 9 Effects
COST OF RISK REFLECTING COVID-19 AND IFRS 9 EFFECTS _Cost of risk(1) (in bp) H1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 H1 20 97 81 65 100 23 25 26 29 GROUP NON-PERFORMING LOAN RATIO(2) 0 85 JUN 16 JUN 17 JUN 18 JUN 19 JUN 20 68 FRENCH RETAIL 100 27 49 23 19 30 5.1% BANKING 0 4.5% 3.7% 125 3.2% INTERNATION
Slide 8: Focus on Q2 Cost of Risk
FOCUS ON Q2 20 COST OF RISK Q2 20 COST OF RISK IMPACT OF IFRS9 PARAMETERS UPDATE _ in EURm 1,279 Global Banking and Investor Services International Retail Banking 419 and Financial Services French Retail Banking 653 418 626 impact of IFRS 9 parameters update to take 490 178 240 into account new macr
Slide 9: Applying IFRS 9
APPLYING IFRS 9 METHODOLOGY APPLIED As of Q2-20, update of IFRS 9 parameters to fully include forward looking information based on: • Specific sector / areas-at-risk adjustments • 4 macroeconomic scenarios adjusted to take into account massive State support in the major countries in which we operate
Slide 10: Detailed Corporate Portfolio
DETAILED CORPORATE PORTFOLIO CORPORATE EAD IN EACH SECTOR IN % OF TOTAL GROUP EAD(1) AT 30.06.2020 Total Group EAD : EUR 990BN COMMERCIAL REAL ESTATE: disciplined origination with average LTV between 50% and 60%, limited Finance & insurance 5.8% exposure on retail (20%) Business services(2) 3.9% Rea
Slide 11: Group Results
GROUP RESULTS In EURm Q2 20 Q2 19 Change H1 20 H1 19 Change Net banking income 5,296 6,284 -15.7% -13.5%* 10,466 12,475 -16.1% -14.2%* Operating expenses (3,860) (4,270) -9.6% -7.7%* (8,538) (9,059) -5.8% -4.0%* Underlying operating expenses(2) (3,984) (4,152) -4.0% -2.0%* (8,185) (8,500) -3.7% -1.8
Slide 12: Business Performance
2 BUSINESS PERFORMANCE
Slide 13: French Retail Banking Results
FRENCH RETAIL BANKING RESULTS PEAK IMPACT OF THE CRISIS IN APRIL AND MAY, IMPROVEMENT SINCE MID- In EURm Q2 20 Q2 19 Change H1 20 H1 19 Change MAY Net banking income 1,754 1,994 -12.0% 3,634 3,910 -7.1% Net banking income excl. PEL/CEL 1,749 2,021 -13.5% 3,654 3,949 -7.5% Operating expenses (1,233)
Slide 14: French Retail Banking
FRENCH RETAIL BANKING DEPOSITS ** REBOUND IN CLIENT ACTIVITY SINCE MID-MAY +11.3% VS. Q2 19 AFTER HIGH IMPACT IN APRIL AND MAY INDIVIDUAL CLIENT LOAN MONTHLY CARD TRANSACTIONS MONTHLY PRODUCTION CORPORATE MONTHLY CREDIT Total loan production ex PGE* 150 TRANSFERS OUTSTANDINGS 200 PGE production* +7.
Slide 15: International Retail Banking and Financial Services Results
INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES RESULTS In EURm Q2 20 Q2 19 Change H1 20 H1 19 Change REBOUND SINCE JUNE FOLLOWING Net banking income 1,750 2,124 -17.6% -10.8%* 3,714 4,200 -11.6% -4.7%* Operating expenses (979) (1,145) -14.5% -7.0%* (2,125) (2,349) -9.5% -2.0%* PEAK IMPACT ON AC
Slide 16: International Retail Banking
INTERNATIONAL RETAIL BANKING EUROPE RUSSIA (1) AFRICA AND OTHER Monthly loan production Monthly loan production Monthly loan production Rebased on 100 as for average Q2 19 level Rebased on 100 as for average Q2 19 level Rebased on 100 as for average Q2 19 level 100% 100% 100% 50% 50% 50% 0% 0% 0% Q2
Slide 17: Financial Services and Insurance
FINANCIAL SERVICES AND INSURANCE INSURANCE FINANCIAL SERVICES TO CORPORATES Life insurance outstandings (EURbn) Protection premiums (EURm) ALD total fleet (‘000 000) Loan and Lease outstandings (EURbn) (2) 122 893 899 18.2 17.7 120 1.70 1.76 Unit-linked 28% 30% Personal Protection 565 539 72% 70% 36
Slide 18: Global Banking and Investor Solutions Results
GLOBAL BANKING AND INVESTOR SOLUTIONS RESULTS In EURm Q2 20 Q2 19 Change H1 20 H1 19 Change Net banking income 1,880 2,266 -17.0% -17.3%* 3,507 4,505 -22.2% -22.7%* REVENUES -17.0% vs. Q2 19, strong FIC and F&A Operating expenses (1,570) (1,915) -18.0% -18.2%* (3,547) (3,941) -10.0% -10.3%* quarter,
Slide 19: Redesigning Structured Products Activities
REDESIGNING STRUCTURED PRODUCTS ACTIVITIES 3 PRIORITIES FOR GLOBAL MARKETS GLOBAL MARKETS: CROSS ASSET DERIVATIVES & SOLUTIONS HOUSE #1 MAINTAIN WORLDWIDE LEADERSHIP IN EQUITY STRUCTURED PRODUCTS INVESTMENT FLOW & HEDGING Derisking autocalls whilst developing a new generation of products SOLUTIONS:
Slide 20: Global Markets and Investor Services
GLOBAL MARKETS AND INVESTOR SERVICES GLOBAL MARKETS & INVESTOR SERVICES REVENUES: -28% (1) VS. Q2 19 FIC +38%(1) VS. Q2 19, STRONG MOMENTUM Equities -80% VS. Q2 19, RECOVERY STARTING MID-MAY _FIC Revenues (EURm) _Equities Revenues (EURm) 585 -428 450 227 390 210 700 660 667 693 637 609 510 519 520 5
Slide 21: Financing & Advisory, Asset & Wealth Management
FINANCING & ADVISORY, ASSET & WEALTH MANAGEMENT FINANCING & ADVISORY: +2% VS. A HIGH Q2 19, STRONG QUARTER WITH SOLID PRODUCTION _Financing & Advisory Revenues (EURm) Strong growth in Investment Banking, notably in debt capital markets and acquisition finance Record level of issuance this quarter, s
Slide 22: Corporate Centre
CORPORATE CENTRE In EURm Q2 20 Q2 19 H1 20 H1 19 Net banking income (88) (100) (389) (140) GROSS OPERATING INCOME Operating expenses (78) 138 (183) 65 EUR -166m in Q2 20 Gross operating income (166) 38 (572) (75) Net cost of risk 0 (19) 0 (19) IMPAIRMENT LOSSES ON GOODWILL / Net profits or losses fr
Slide 23: Capital and Liquidity
3 CAPITAL AND LIQUIDITY
Slide 24: Balance Sheet Ratios Above Regulatory Requirements
BALANCE SHEET RATIOS ABOVE REGULATORY REQUIREMENTS Requirements (1) End-Q2 20 ratios 12.3% Fully-loaded CET1 9.05%(2) 12.5% Phased-in (5) Total Capital 13.3% 17.7% Leverage ratio 3.5% 4.2%(6) 19.5% (% RWA) (3) 28.5% (% RWA) TLAC 6.0% (% leverage) 8.2% (% leverage) (4) MREL 8.51% (% TLOF) > 8.51% (%
Slide 25: Capital: Comfortable Buffer Over Regulatory Requirements
CAPITAL: COMFORTABLE BUFFER OVER REGULATORY REQUIREMENTS _Q2 20: change in CET1(1) ratio (in bp) Temporary effects CET1 AT 12.5% 12.6% 12.6% -7bp -15bp 12.5% +14bp 350bp buffer over MDA at 9.05% -27bp IFRS 9 +10bp +12bp +20bp phasing LEVERAGE RATIO AT 4.2% 4.4% taking into account the quick-fix arra
Slide 26: Group CET1: Buffer to MDA
GROUP CET1: BUFFER TO MDA CET ratio: 12.5%(1) ~ 350bp Buffer over MDA Systemic buffer 1.00% Countercyclical buffer(2) 0.07% Capital conservation buffer 2.50% P2R requirement (3) 0.98% 9.05% Pillar 1 4.5% CET 1 ratio Capital requirement as of 30.06.20 as of 30.06.20 (1) Including 20bp of IFRS 9 phasi
Slide 27: Group TLAC / MREL
GROUP TLAC / MREL _TLAC ratio _MREL ratio Meeting 2020 (19.5%)(1) and 2022 (21.5%)(1) requirements Meeting total requirements (notification received in May 2020) % RWA (1) % RWA (2) 28.5% Q2 ratios SP 2,5% SP 24.4% SNP SNP 19.5% 7,9% T2 (*) % Leverage % TLOF 7,9% T2 (*) AT1 AT1 CET 1 CET 1 3,5% 8,2%
Slide 28: Group Long Term Funding Programme
GROUP LONG TERM FUNDINGPROGRAMME Parentcompanyadjusted2020funding LIMITED REMAINING FUNDINGNEEDS programme ca. EUR 2.5bn of vanilla debt, well balanced between TLAC/MREL eligible debt and pure liquidity - ca. EUR 13bn of vanilla debt, well balanced INNOVATIVE INITIATIVES across the different debt fo
Slide 29: Group Long Term Funding Breakdown
GROUP LONG TERM FUNDING BREAKDOWN(1) Access to diversified and complementary investor bases through: _Breakdown as of Senior Non-Preferred Issues Subordinated issuances 30.06.2020 Senior vanilla issuances (public or private Subordinated Debt(2) placements) Senior structured notes distributed to inst
Slide 30: Strengthened Funding Structure
STRENGTHENED FUNDING STRUCTURE _Loan to Deposit Ratio Robust balance sheet 97% 95% 95% 95% 95% 91% 93% 105% Stable loan to deposit ratio 600 495 506 460 447 470 469 471 Loans (EUR bn) High quality asset buffers 421 443 500 80% 378 388 400 421 420 400 Comfortable LCR at 167% on average in Q2 20 Depos
Slide 31: Credit Rating Overview
CREDIT RATING OVERVIEW Good fundamentals S&P: “Diverse business model by geography and _Credit Rating as of July 31st 2020 segment” Moody’s: “Strong franchise and well-diversified Fitch Moody’s S&P universal banking business model” LT/ST A(dcr) A1(cr)/P-1(cr) A/A-1 Fitch: “The bank's ratings remain
Slide 32: Sustainability Recognised in Ratings
SUSTAINABILITY RECOGNISED IN RATINGS SG is well recognised by extra-financial rating agencies and included in the leading sustainability indices, including DJSI: Rating Position vs peers “In this period of profound change we are experiencing, we 79/100 #1 Bank worldwide in environment are committed
Slide 33: CSR Strategy
4. CSR STRATEGY
Slide 34: Sustainability and Responsibility Embedded in Corporate Purpose
SUSTAINABILITY AND RESPONSIBILITY EMBEDDED IN CORPORATE PURPOSE “Building together, with our clients, a better and sustainable future through responsible and innovative solutions” Key objectives SUPPORTING CLIENTS OVER THE LONG- DRIVING POSITIVE TRANSFORMATIONS TO FOSTERING A PIONEERING SPIRIT AND T
Slide 35: Six Strategic CSR Priorities: Transform to Grow
SIX STRATEGIC CSR PRIORITIES: "TRANSFORM TO GROW" CSR PRIORITIES APPROVED CLIMATE BY BOARD RESPONSIBLE CHANGE EMPLOYER Committed to align lending portfolio Developing ETHICS & employee skills, with Paris Agreement SUSTAINABLE GOVERNANCE adapting to changing Integration of E&S DEVELOPMENT Applying th
Slide 36: Positioning Societe Generale as a Leader in Sustainable Finance
POSITIONING SOCIETE GENERALE AS A LEADER IN SUSTAINABLE FINANCE AND INVESTOR ACTIVITIES TARGETING LEADERSHIP RECEIVING RECOGNITION Financing energy transition: Positive recognition by the extra-financial rating 2020 EUR 100bn energy transition target achieved one agencies, including: year in advance
Slide 37: Voluntary and Responsible Policy
VOLUNTARY AND SELECTED VOLUNTARY RESPONSIBLE COMMITMENTS POLICY REGULATORY REQUIREMENTS EQUATOR PRINCIPLES - 2007: Project finance 2001 E&S SECTOR POLICIES - 2011: NRE, CSR REPORTING - 2001: on 12 sensitive sectors France the first country to require CSR reporting COP 21 - 2015: GRENELLE 2, ART. 225
Slide 38: Aligning the Group's Activities with the Paris Agreement
ALIGNING THE GROUP’S ACTIVITIES WITH THE PARIS AGREEMENT COMMITMENTS UNDERTAKEN THROUGH THE KATOWICE COMMITMENT, PRINCIPLES FOR RESPONSIBLE BANKING, AND THE COLLECTIVE COMMITMENT TO CLIMATE ACTION: APPLY THE DEFINE A COMMON METHODOLOGY TO KEY SET OBJECTIVES METHODOLOGY SECTORS Piloting the PACTA met
Slide 39: Conclusion
5 CONCLUSION
Slide 40: Moving Forward
MOVING FORWARD CLIENT CENTRICITY ESG EFFICIENCY CONSOLIDATING MARKET SHARE WITH LEADING THE ENERGY TRANSITION CORPORATE CLIENTS WITH CLIENTS #1 European Project Finance – Mandated Lead Arranger(1) # 1 PRIORITY #3 All International Euro-denominated Corporate Bonds LEADERSHIP IN RENEWABLE ENERGY DECRE
Slide 41: 3 Priorities for the 2021-2023 Strategic Plan
3 PRIORITIES FOR THE 2021-2023 STRATEGIC PLAN FURTHER IMPROVE CLIENT CENTRICITY ACCELERATE TO REINFORCE OUR LEADERSHIP POSITION IN SUSTAINABLE FINANCE DELIVER ON EFFICIENCY THROUGH ADDITIONAL COST REDUCTION INITIATIVES LEVERAGING ON DIGITAL TRANSFORMATION PRESENTATION TO DEBT INVESTORS SEPTEMBER 202
Slide 42: Supplement
6 SUPPLEMENT
Slide 43: Detailed Loan Portfolio
DETAILED LOAN PORTFOLIO TOTAL GROUP EAD(1) AT 30.06.2020: EUR 990BN Securitization Other 4% 3% RETAIL Retail - Other Sovereign • Residential mortgages: >80% on SOVEREIGNS 10% 25% • 88% on Europe (incl. 42% on France) France (of which ~80% of mortgages guaranted by Crédit Logement) and and North Amer
Slide 44: Exposures by Stage
EXPOSURES BY STAGE In EURbn Stage 3 17.7 9.5 Stage 2 16.2 Stage 1 9.0 44.4 30.9 1.1 1.5 497.2 483.8 0.9 1.2 Gross Impairment Gross Impairment exposure exposure 31/12/2019 30/06/2020 Perimeter : Customer loans and advances, deposits at banks and loans due from banks, leasing and lease assets, excludi
Slide 45: French Retail Banking
FRENCH RETAIL BANKING RETAIL CLIENTS FRENCH-STATE GUARANTEE SCHEME Limited impact ~86,100 client requests at Group level for ~EUR 19bn as of 24/07/20 BUSINESS CUSTOMERS HOUSING EUR 216bn CORPORATE AND PROFESSIONALS MORATORIUM ~EUR 20bn Outstandings CONSUMER CREDIT AND OVERDRAFT LOAN OUTSTANDINGS BY
Slide 46: Romania
ROMANIA Based on standalone financial data CORPORATE PAYMENT MORATORIUM RETAIL PAYMENT MORATORIUM Up to 9 months of grace period (not beyond end-2020) Up to 9 months of grace period (not beyond end-2020) Applicable to both capital and interests Applicable to both capital and interests Capitalised in
Slide 47: Czech Republic
CZECH REPUBLIC Based on standalone financial data CORPORATE PAYMENT MORATORIUM RETAIL PAYMENT MORATORIUM From 3 to 6 months of grace period From 3 to 6 months of grace period Interest paid during the deferral period Applicable to both capital and interests Interest, accrued during moratorium, is pai
Slide 48: Russia
RUSSIA* Based on standalone financial data CORPORATE PAYMENT MORATORIUM RETAIL PAYMENT MORATORIUM Up to 6 months of grace period CONSUMER LOAN Up to 6 months of grace period Grace period applicable to principal and interest payments PRO Grace period applicable to principal and interest payments In R
Slide 49: Africa
AFRICA* Based on standalone financial data MORTGAGE CORPORATE PAYMENT MORATORIUM RETAIL PAYMENT MORATORIUM Mainly 3 months of grace periode 4.3 months of average grace period Mainly in Maghreb CORPORATE Mainly in Maghreb Repayment schedule depending on country Repayment schedule depending on country
Slide 50: Focus on Consumer Finance
FOCUS ON CONSUMER FINANCE SPECIALISED CONSUMER FINANCE ROBUST PRODUCT AND GEOGRAPHICAL MIX SOCIETE GENERALE GROUP EUR 23bn* of loanoutstandings RESILIENT PORTFOLIO as of June-20 Points of Sale Boat Finance5% benefitting from the dynamic of : 11% Specialized Directpersonal Consumer Finance Loans19% (
Slide 51: Group Quarterly Income Statement by Core Business
GROUP QUARTERLY INCOME STATEMENT BY CORE BUSINESS International Retail Banking Global Banking and Investor French Retail Banking Corporate Centre Group and Financial Services Solutions In EURm Q2 20 Q2 19 Q2 20 Q2 19 Q2 20 Q2 19 Q2 20 Q2 19 Q2 20 Q2 19 Net banking income 1,754 1,994 1,750 2,124 1,88
Slide 52: Group Half Year Income Statement by Core Business
GROUP HALF YEAR INCOME STATEMENT BY CORE BUSINESS International Retail Banking Global Banking and Investor French Retail Banking Corporate Centre Group and Financial Services Solutions In EURm H1 20 H1 19 H1 20 H1 19 H1 20 H1 19 H1 20 H1 19 H1 20 H1 19 Net banking income 3,634 3,910 3,714 4,200 3,50
Slide 53: Group: Underlying Data Reconciliation with Reported Figures
GROUP: UNDERLYING DATA RECONCILIATION WITH REPORTED FIGURES Operating Net cost of Net profit or losses Impairment losses on Q2 20 (in EURm) Income Tax Group net income Business Expenses risk from other assets goodwill Reported (3,860) (1,279) 4 (684) (658) (1,264) (+) IFRIC 21 linearisation (124) 58
Slide 54: Group: Underlying Data IFRIC 21 Impact
GROUP: UNDERLYING DATA IFRIC 21 IMPACT International Retail Global Banking and French Retail Banking Banking and Financial Corporate Centre Group Investor Solutions Services In EUR m H1 20 H1 19 H1 20 H1 19 H1 20 H1 19 H1 20 H1 19 H1 20 H1 19 Total IFRIC 21 Impact - costs -132 -100 -96 -112 -428 -34
Slide 55: Group CRR/CRD4 Prudential Capital Ratios
GROUP CRR/CRD4 PRUDENTIAL CAPITAL RATIOS _Fully Loaded Common Equity Tier 1, Tier 1 and Total Capital In EURbn 30/06/2020 31/12/2019 Shareholder equity Group share 60.7 63.5 Deeply subordinated notes* (8.2) (9.5) Undated subordinated notes* (0.3) (0.3) Dividend to be paid & interest on subordinated
Slide 56: Group CRR Leverage Ratio
GROUP CRR LEVERAGE RATIO _CRR Fully Loaded Leverage Ratio(1) In EURbn 30/06/2020 31/12/2019 Tier 1 Capital 52.7 51.9 Total prudential balance sheet (2) 1,304 1,204 Adjustement related to derivative exposures (143) (81) Adjustement related to securities financing transactions* 7 (3) Off-balance sheet
Slide 57: Group Risk-Weighted Assets
GROUP RISK-WEIGHTED ASSETS* (CRR/CRD 4, IN EUR BN) 128.3 128.4 130.9 361.1 355.0 360.7 118.6 113.8 49.3 47.9 Total 112.2 47.9 7.3 32.2 32.2 103.9 0.1 6.8 33.0 0.1 6.8 17.6 19.5 21.0 98.6 99.2 0.2 5.4 5.4 0.1 5.5 0.1 0.1 Operational 16.2 18.8 20.3 Market Credit 111.2 106.9 105.3 294.2 287.6 291.9 93.
Slide 58: Group Change in Gross Book Outstandings
GROUP CHANGE IN GROSS BOOK OUTSTANDINGS* End of period in EUR bn 529.4 527.7 Total 501.2 502.4 504.6 504.8 507.1 491.1 496.6 Global Banking 175.7 162.4 and Investor Solutions 164.9 164.2 160.9 157.5 158.1 156.7 158.0 International Retail Banking and Financial Services 135.7 139.8 138.2 135.9 139.7 1
Slide 59: Group Non Performing Loans
GROUP NON PERFORMING LOANS In EUR bn 30/06/2020 31/03/2020 30/06/2019 Gross book outstandings* 545.9 554.5 538.8 Doubtful loans* 17.7 16.6 17.0 Group Gross non performing loans ratio* 3.2% 3.0% 3.2% Stage 1 provisions 1.2 0.9 0.9 Stage 2 provisions 1.5 1.2 1.0 Stage 3 provisions 9.5 9.2 9.4 Group Gr
Slide 60: Group Change in Trading VaR and Stressed VaR
GROUP CHANGE IN TRADING VAR* AND STRESSED VAR** _Quarterly Average of 1-Day, 99% Trading VaR* (in EUR m) 40 28 26 Trading VaR* 18 21 18 22 23 17 Credit 43 Interest Rates Equity Forex 8 16 20 Commodities 4 6 7 10 28 5 15 Compensation Effect 12 13 12 10 11 11 11 14 14 17 13 15 15 19 19 20 32 4 42 42 3
Slide 61: Group Funding Structure
GROUP FUNDING STRUCTURE (In EURbn) 31 DECEMBER 2019 30 JUNE 2020 810 847 419 444 Due to Customers o.w. Securities sold to customer 9 under repurchase agreements 5 Due to Banks 108 o.w. Securities sold to bank under 122 Financial Liabilities at Fair Value through Profit or Loss - 9 repurchase agreeme
Slide 62: Group EPS Calculation
GROUP EPS CALCULATION Average number of shares (thousands) H1 20 Q1 20 2019 Existing shares 853,371 853,371 834,062 Deductions Shares allocated to cover stock option plans and free shares awarded to staff 2,728 2,972 4,011 Other own shares and treasury shares 149 Number of shares used to calculate E
Slide 63: Group Net Asset Value, Tangible Net Asset Value
GROUP NET ASSET VALUE, TANGIBLE NET ASSET VALUE End of period H1 20 Q1 20 2019 Shareholders' equity Group share 60,659 62,580 63,527 Deeply subordinated notes (8,159) (8,258) (9,501) Undated subordinated notes (283) (288) (283) Interest, net of tax, payable to holders of deeply subordinated notes &
Slide 64: Group ROE/ROTE Calculation Detail
GROUP ROE/ROTE CALCULATION DETAIL End of period Q2 20 Q2 19 H1 20 H1 19 Shareholders' equity Group share 60,659 62,492 60,659 62,492 (8,159) (9,861) (8,159) (9,861) Deeply subordinated notes Undated subordinated notes (283) (280) (283) (280) Interest net of tax payable to holders of deeply subordina
Slide 65: French Retail Banking Net Banking Income
FRENCH RETAIL BANKING NET BANKING INCOME Change Q2 20 vs. Q2 19 1,994 1,879 1,957 1,880 1,754 NBI in EURm -12.0% Commissions(2) -14.0% vs. Q2 19 -8.4% vs. H1 19 888 858 848 841 764 -14.0% Fees(2) 123 68 80 67 36 -70.8% Net interest margin(1) Other Income -6.0% vs. Q2 19 1,031 -6.0% 1,010 1,029 997 9
Slide 66: French Retail Banking Customer Deposits and Financial Savings
FRENCH RETAIL BANKING CUSTOMER DEPOSITS AND FINANCIAL SAVINGS Average outstanding Change in EUR bn Q2 20 vs. Q2 19 +6.4% 332 312 318 318 318 -1.9% Life Insurance Financial Savings 93 95 96 94 95 EUR 103.3bn Mutual Funds -3.1% 10 -11.3% 12 11 11 12 132 Sight Deposits(1) +18.3% 112 117 118 119 PEL Dep
Slide 67: French Retail Banking Loans Outstanding
FRENCH RETAIL BANKING LOANS OUTSTANDING Change Average outstanding, net of provisions in EUR bn Q2 20 vs. Q2 19 194 198 202 206 216 +11.2% +8.1% 109 Housing 104 107 109 101 +1.8% Consumer Credit 13 13 13 13 13 and Overdraft 94 +16.8% Business 80 81 82 84 Customers* 0.2 0.2 0.2 0.2 0.2 Financial Inst
Slide 68: International Retail Banking and Financial Services Quarterly Results
INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES QUARTERLY RESULTS International Retail Banking Insurance Financial Services to Corporates Total In EUR m Q2 20 Q2 19 Change Q2 20 Q2 19 Change Q2 20 Q2 19 Change Q2 20 Q2 19 Change Net banking income 1,157 1,412 -8.9%* 211 229 -7.1%* 382 483 -17.7%
Slide 69: International Retail Banking and Financial Services Half Year Results
INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES HALF YEAR RESULTS International Retail Banking Insurance Financial Services to Corporates Total In EUR m H1 20 H1 19 Change H1 20 H1 19 Change H1 20 H1 19 Change H1 20 H1 19 Change Net banking income 2,450 2,799 -3.1%* 440 460 -3.9%* 824 941 -9.5%*
Slide 70: Quarterly Results of International Retail Banking by Region
QUARTERLY RESULTS OF INTERNATIONAL RETAIL BANKING BREAKDOWN BY REGION Africa, Asia, Total International Western Europe Czech Republic Romania Other Europe Russia (1) Mediterranean bassin Retail Banking and Overseas In M EUR Q2 20 Q2 19 Q2 20 Q2 19 Q2 20 Q2 19 Q2 20 Q2 19 Q2 20 Q2 19 Q2 20 Q2 19 Q2 2
Slide 71: Half Year Results of International Retail Banking by Region
HALF YEAR RESULTS OF INTERNATIONAL RETAIL BANKING BREAKDOWN BY REGION Africa, Asia, Total International Western Europe Czech Republic Romania Other Europe Russia (1) Mediterranean bassin Retail Banking and Overseas In M EUR H1 20 H1 19 H1 20 H1 19 H1 20 H1 19 H1 20 H1 19 H1 20 H1 19 H1 20 H1 19 H1 2
Slide 72: Loan and Deposit Outstandings Breakdown
INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES LOAN AND DEPOSIT OUTSTANDINGS BREAKDOWN _Loan Outstandings Breakdown (in EURbn) _Deposit Outstandings Breakdown (in EURbn) Change Change June 20 vs. June 19 June 20 vs. June 19 1.0 1.1 83.6 +6.2%* 18.2 o.w. Equipment 80.3 +0.1%* 1.9 +7.1%* 17.7 Fin
Slide 73: Presence in Africa
INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES PRESENCE IN AFRICA Clients NBI Net income C/I RWA 4,1m EUR 0,7bn EUR 30m 65% EUR 20,5bn H1 20 NBI RWA Credits Deposits L/D ratio Ranking (In EUR m) (In EUR m) (In EUR m) (In EUR m) Morocco 224 7,757 8,202 6,881 119% 4th Algeria 76 1,608 1,526 2,206
Slide 74: SG Russia
INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES SG RUSSIA(1) _SG Russia Results In EUR m Q2 20 Q2 19 Change H1 20 H1 19 Change Net banking income 201 227 -3% 412 427 1% Operating expenses (125) (149) -8% (267) (294) -4% Gross operating income 75 78 7% 145 133 11% Net cost of risk (66) (20) 253%
Slide 75: Group Diversified Exposure to Russia
GROUP DIVERSIFIED EXPOSURE TO RUSSIA _EAD as of Q2 20: EUR 15.3bn Corporates(1) 42% Car loans 24% 40% Retail Mortgages 50% 24% 2% 4% Consumer loans Financial 14% Other Institutions Sovereign (1) o/w ca.90% Tier 1 corporates PRESENTATION TO DEBT INVESTORS SEPTEMBER 2020 75
Slide 76: Insurance Key Figures
INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES INSURANCE KEY FIGURES _Life Insurance Outstandings and Unit Linked Breakdown (in EURbn) _Personal Protection Insurance Premiums (in EURm) 120.0 121.8 125.1 119.9 122.1 28% 28% 30% 27% 30% Unit Linked Change 289 285 269 279 Q2 20 vs. Q2 19 Euro Fund
Slide 77: Global Banking and Investor Solutions Quarterly Results
GLOBAL BANKING AND INVESTOR SOLUTIONS QUARTERLY RESULTS Global Markets and Investor Total Global Banking and Investor Financing and Advisory Asset and Wealth Management Services Solutions In EUR m Q2 20 Q2 19 Change Q2 20 Q2 19 Change Q2 20 Q2 19 Change Q2 20 Q2 19 Change Net banking income 991 1,39
Slide 78: Global Banking and Investor Solutions Half Year Results
GLOBAL BANKING AND INVESTOR SOLUTIONS HALF YEAR RESULTS Global Markets and Investor Financing and Advisory Asset and Wealth Management Total Global Banking and Investor Solutions Services In EUR m H1 20 H1 19 Change H1 20 H1 19 Change H1 20 H1 19 Change H1 20 H1 19 Change Net banking income 1,759 2,
Slide 79: Global Banking and Investor Solutions Risk-Weighted Assets
GLOBAL BANKING AND INVESTOR SOLUTIONS RISK-WEIGHTED ASSETS _Global Markets and Investor Services (in EURbn) 68.9 67.0 67.7 25.6 24.7 24.7 15.1 16.8 19.0 28.2 25.5 24.0 Q2 19 Q1 20 Q2 20 Operational Market _Financing and Advisory (in EURbn) _Asset and Wealth Management (in EURbn) Credit 50.6 53.2 54.
Slide 80: Global Banking and Investor Solutions Revenues
GLOBAL BANKING AND INVESTOR SOLUTIONS REVENUES _Global Markets and Investor Services Revenues (in EURm)(1) _Asset and Wealth Management Revenues (in EURm) 179 5 5 4 5 169 Securities 5 166 57 Services 51 50 40 519 494 149 48 Others 520 150 Fixed Income and Lyxor Currencies 700 187 693 175 165 181 176
Slide 81: Global Banking and Investor Solutions Key Figures
GLOBAL BANKING AND INVESTOR SOLUTIONS KEY FIGURES _Private Banking: Assets under Management (in EURbn) _Lyxor: Assets under Management (in EURbn) 114 117 119 111 114 135 138 149 132 126 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 _Securities Services: Assets under Custody (in EURbn)
Slide 82: League Tables - Rankings - Awards
GLOBAL BANKING AND INVESTOR SOLUTIONS LEAGUE TABLES - RANKINGS - AWARDS FINANCING AND ADVISORY GLOBAL MARKETS AND INVESTOR SERVICES Energy Risk Euromoney Euromoney FX 2020 Survey Structured Retail Products 2020 Energy & Commodity Awards for Excellence #1 Corporates and FIs Best Service in Magazine •
Slide 83: Methodology (1/3)
METHODOLOGY (1/3) 1 – The financial information presented for the quarter and first half ending 30 June 2020 was reviewed by the Board of Directors on 31 July 2020 and has been prepared in accordance with IFRS as adopted in the European Union and applicable at this date. The limited review procedure
Slide 84: Methodology (2/3)
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 45 and 574 of Societe Generale’s 2020 Universal Registration Document. This indicator makes it possible to assess the level of risk of each of t
Slide 85: Methodology (3/3)
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 to be paid on TSS & TSDI, interest paid to the holders of TSS & TSDI amortization of premiums issues and unrealized gains/losses accou
Slide 86: Investor Relations Team
INVESTOR RELATIONS TEAM investor.relations@socgen.com www.societegenerale.com/en/investors
Societe Generale — Debt Investor Presentation (September 2020) on 6ix