Societe Generale S.a. Class A · EURONEXT:GLE
Societe Generale S.a. Class A — Q2 2018 Earnings Presentation
76 slides from Societe Generale S.a. Class A's earnings presentation, Aug 2, 2018
Slide 1: Group Results 2nd Quarter and 1st Half 2018
S O C I E T E G E N E R AL E G RO UP RESULT S 2 ND Q U AR T E R AN D 1 ST H AL F 2 0 1 8 02.08.2018 2ND QUARTER AND 1ST HALF 2018 RESULTS 02.08.2018 1
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements relating to the targets and strategies of the Societe Generale Group. These forward-looking statements are based on a series of assumptions, both general and specific, in particular the application of accounting principles and methods
Slide 3: Key Highlights
1 KEY HIGHLIGHTS 2ND QUARTER AND 1ST HALF 2018 RESULTS 02.08.2018 3
Slide 4: Q2 18 Key Highlights
1 – KEY HI G HLI G HTS Q2 18 KEY HIGHLIGHTS GROUP NET INCOME(1) AT EUR 1.3bn, ROTE(1) AT 11.2% (11.0% in H1 18) Solid business performance 1 Disciplined management of costs Low cost of risk GROUP REFOCUSING UNDERWAY 2 Exiting non-synergetic activities with disposals underway: positive impact on CET1
Slide 5: Dynamic Business Performance
1 – KEY HI G HLI G HTS DYNAMIC BUSINESS PERFORMANCE INSURANCE AND GLOBAL BANKING INTERNATIONAL RETAIL FRENCH RETAIL BANKING FINANCIAL SERVICES TO AND BANKING CORPORATES INVESTOR SOLUTIONS Transformation process Supportive interest rate Good commercial Rebound in Market well on track, in line with en
Slide 6: Refocusing on our Core Franchises
1 – KEY HI G HLI G HTS REFOCUSING ON OUR CORE FRANCHISES Exiting non-synergetic businesses Strengthening our core franchises EXPRESS BANK EMC SG ALBANIA Agreement to sell all of SG’s majority stakes in Express Agreement to acquire Commerzbank’s Equity Markets and Bank in Bulgaria and Societe General
Slide 7: Group Results
2 GROUP RESULTS 1ST QUARTER 2ND QUARTER AND 2018RESULTS 1ST HALF 2018 RESULTS 04.05.2018 02.08.2018 77
Slide 8: Q2 ROTE at 11.2%
2 – G RO UP RESUL TS Q2 18 ROTE(1) AT 11.2% Revenues(1) Q2 18 H1 18 EUR 6.5bn EUR 12.7bn Higher Group revenues +1.0% vs. Q2 17 -0.7% vs. H1 17 Slight decrease in revenues in French Retail Banking Strong growth in International Retail Banking and Financial Services Operating Expenses(1) Q2 18 H1 18 a
Slide 9: Low Cost of Risk
2 – G RO UP RESUL TS LOW COST OF RISK Cost of risk(1) (in bp) 30 38 29 FRENCH RETAIL 22 20 Decrease in cost of risk, thanks to selective origination BANKING strategy Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 INTERNATIONAL 33 34 28 23 RETAIL BANKING 14 Cost of risk at a low level across all geographical AND FINA
Slide 10: Solid Balance Sheet, Already MREL Compliant
2 – G RO UP RESUL TS SOLID BALANCE SHEET, ALREADY MREL COMPLIANT CET1(1) at 11.1% Total capital ratio at 16.8% Q2 18: change in Fully-Loaded CET1(1) Ratio (in bp) +33bp Hybrid coupons -3bp -14bp Leverage ratio at 4.1%(2) -14bp -2bp -9bp Balance sheet already compliant with MREL First notification re
Slide 11: Group Results
2 – G RO UP RESUL TS GROUP RESULTS In EUR m Q2 18 Q2 17 Change H1 18 H1 17 Change Net banking income 6,454 5,199 +24.1% +26.1%* 12,748 11,673 +9.2% Underlying net b anking income(1) 6,454 6,389 +1.0% +2.3%* 12,748 12,841 -0.7% Operating expenses (4,403) (4,169) +5.6% +6.7%* (9,132) (8,813) +3.6% Und
Slide 12: Business Performance
3 BUSINESS PERFORMANCE 2ND QUARTER AND 1ST HALF 2018 RESULTS 02.08.2018 12
Slide 13: Developing Business Initiatives
3 – BUSI NESS PERFO RMANCE – FRENCH RETAI L BANKI NG DEVELOPING BUSINESS INITIATIVES Increasing our Wealthy and +5.1% in number of clients vs. Q2 17 Mass affluent clients base Dynamic Private Banking France franchise with AuM of EUR 63bn (+2.6% vs. Q2 17), EUR 1.3bn net inflows Accelerating client R
Slide 14: Keep Transforming French Retail Banking
3 – BUSI NESS PERFO RMANCE – FRENCH RETAI L BANKI NG KEEP TRANSFORMING FRENCH RETAIL BANKING Maintaining the pace of transformation Investing in transformation Underlying operating expenses trend RESHAPING THE Illustrative trajectory DISTRIBUTION Continuing branch closures: 50 branches PLATFORM clos
Slide 15: Boursorama: Ahead of the Growth Target
3 – BUSI NESS PERFO RMANCE – FRENCH RETAI L BANKI NG BOURSORAMA: AHEAD OF THE GROWTH TARGET Proven client acquisition model A full-service banking model Efficient operating model Sight Acquisition costs No. of front officers No. of new clients (‘000) Life per client for 1m clients deposits insurance
Slide 16: French Retail Banking Results
3 – BUSI NESS PERFO RMANCE – FRENCH RETAI L BANKI NG FRENCH RETAIL BANKING RESULTS Revenues(1) -2.1% vs. Q2 17 in a still low interest rate environment, In EUR m Q2 18 Q2 17 Change H1 18 H1 17 Change -1.9% vs. H1 17 Net banking income 1,991 2,026 -1.7% 3,999 4,049 -1.2% Net b anking income excl. Net
Slide 17: Strong Momentum in International Retail Banking
3 – BUSI NESS PERFO RMANCE – I NTERNATI O NAL RETAI L BANKI NG AND FI NA NCI AL SERVI CES STRONG MOMENTUM IN INTERNATIONAL RETAIL BANKING Loans and Deposits (in EURbn – change vs. end-Q2 17) Good Net Interest Income Momentum in Europe +8.4%* 91.1 81.5 +6.9%* Supported by Volume growth and Higher Rat
Slide 18: Good Commercial Performance in Insurance and Financial Services
3 – BUSI NESS PERFO RMANCE – I NTERNATI O NAL RETAI L BANKI NG AND FI NA NCI AL SERVI CES GOOD COMMERCIAL PERFORMANCE IN INSURANCE AND FINANCIAL SERVICES Developing the Bancassurance Model ALD: Strong Fleet Growth Solid Commercial Performance in Equipment Finance Life Insurance Outstandings (EURbn)
Slide 19: ALD: Profitable Growth
3 – BUSI NESS PERFO RMANCE – I NTERNATI O NAL RETAI L BANKI NG AND FI NA NCI AL SERVI CES ALD: PROFITABLE GROWTH Structural Growth Drivers Highly Profitable, Efficient Digital is a Core Component of Operating Model the Model Trend towards more outsourcing Gross Operating Income* (EURm) Retail platfo
Slide 20: International Retail Banking and Financial Services Results
3 – BUSI NESS PERFO RMANCE – I NTERNATI O NAL RETAI L BANKI NG AND FI NA NCI AL SERVI CES INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES RESULTS Revenue growth momentum maintained In EUR m Q2 18 Q2 17 Change H1 18 H1 17 Change Net banking income 2,075 1,968 +5.4% +6.1%* 4,064 3,908 +4.0% +5.2%*
Slide 21: Resilient Global Markets & Investor Services Revenues
3 – BUSI NESS PERFO RMANCE – G L O BAL BANKI NG AND I NVESTO R SO L UTI O NS RESILIENT GLOBAL MARKETS & INVESTOR SERVICES REVENUES Global Markets & Investor Services revenues: +2% vs. Q2 17 excl. FX effect Equities (in EURm) FICC (in EURm) Revenues -1% vs. Q2 17 excl. FX effect (+4% vs. Q1 18) Reven
Slide 22: Strengthening Leadership Position with EMC Acquisition
3 – BUSI NESS PERFO RMANCE – G LO BAL BANKI NG AND I NVESTO R SO LUTI O NS STRENGTHENING OUR LEADERSHIP POSITION WITH EMC(1) ACQUISITION Increasing our franchise in listed products and market-making Market share in listed products FLOW Becoming the European leader and global top 3 player in flow PRO
Slide 23: Positive Momentum in Financing and Advisory
3 – BUSI NESS PERFO RMANCE – G LO BAL BANKI NG AND I NVESTO R SO LUTI O NS POSITIVE MOMENTUM IN FINANCING AND ADVISORY Financing & Advisory revenues: +8% vs. Q2 17 excl. FX effect Net Banking Income (in EURm) and originated volumes (in EURbn) 25 800 Highest level of quarterly revenues since 2016 750
Slide 24: Global Banking and Investor Solutions Results
3 – BUSI NESS PERFO RMANCE – G L O BAL BANKI NG AND I NVESTO R SO L UTI O NS GLOBAL BANKING AND INVESTOR SOLUTIONS RESULTS In EUR m Q2 18 Q2 17 Change H1 18 H1 17 Change Net banking income 2,412 2,399 +0.5% +2.9%* 4,627 4,958 -6.7% -3.3%* Revenue trend reflecting momentum across businesses Operating
Slide 25: Corporate Centre
3 – BUSI NESS PERFO RMANCE – CO RPO RATE CENTRE CORPORATE CENTRE Break-even gross operating income excluding exceptional items in H1 18 In EUR m Q2 18 Q2 17 H1 18 H1 17 Net banking income (24) (1,194) 58 (1,242) Additional allocation to the provision for disputes of EUR 200m in Net b anking income (
Slide 26: Conclusion
4 CONCLUSION 2ND QUARTER AND 1ST HALF 2018 RESULTS 02.08.2018 26
Slide 27: A Determined and Successful Start to the Strategic Plan
4 – CO NCLUSI O N A DETERMINED AND SUCCESSFUL START TO THE STRATEGIC PLAN GROW Q2 18 underlying revenues increase by 1% vs Q2 17 FOSTER RESPONSIBILITY TRANSFORM Settlement of LIA and IBOR litigations Culture & Conduct programme being deployed Deepening transformation of French Retail across the Grou
Slide 28: SG Digital Journey
4 – CO NCL USI O N SAVE THE DATE SG DIGITAL JOURNEY 22 NOVEMBER 2018 2ND QUARTER AND 1ST HALF 2018 RESULTS 02.08.2018 28
Slide 29: Supplement
5 SUPPLEMENT 2ND QUARTER AND 1ST HALF 2018 RESULTS 02.08.2018 29
Slide 30: Table of Contents
5 - S U P P L E ME N T TABLE OF CONTENTS Societe Generale Group Continued focus in positive transformation 31 Insurance key figures 54 Quarterly income statement by core business 32 SG Russia results 55 Half year income statement by core business 33 Presence in Central and Eastern Europe 56 Non econ
Slide 31: Continued Focus in Positive Transformation
5 – S U P P L E ME N T - S O C I E TE G E N E R A L E G R O U P CONTINUED FOCUS IN POSITIVE TRANSFORMATION OFFERS IN LINE WITH CLIENT SATISFACTION & CLIMATE CHANGE SOCIAL TRENDS PROTECTION CULTURE, CONDUCT AND RESPONSIBLE EMPLOYER AFRICA GOVERNANCE Drawing on innovative skills and pioneering spirit
Slide 32: Quarterly Income Statement by Core Business
5 – S U P P L E ME N T - S O C I E TE G E N E R A L E G R O U P QUARTERLY INCOME STATEMENT BY CORE BUSINESS International Retail Banking and Global Banking and Investor French Retail Banking Corporate Centre Group Financial Services Solutions In EUR m Q2 18 Q2 17 Q2 18 Q2 17 Q2 18 Q2 17 Q2 18 Q2 17
Slide 33: Half Year Income Statement by Core Business
5 – S U P P L E ME N T - S O C I E TE G E N E R A L E G R O U P 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 18 H1 17 H1 18 H1 17 H1 18 H1 17 H1 18 H1 17
Slide 34: Non Economic and Exceptional Items
5 – S U P P L E ME N T - S O C I E TE G E N E R A L E G R O U P NON ECONOMIC AND EXCEPTIONAL ITEMS In EUR m Q2 18 Q2 17 Change H1 18 H1 17 Change Net Banking Income 6,454 5,199 +24.1% 12,748 11,673 +9.2% Reevaluation of own financial liabilities* (224) (199) DVA* (3) (6) LIA settlement** 0 (963) 0 (
Slide 35: IFRIC 21 and SRF Impact
5 – S U P P L E ME N T - S O C I E TE G E N E R A L E G R O U P IFRIC 21 AND SRF IMPACT International Retail Global Banking and French Retail Banking Banking and Financial Corporate Centre Group Investor Solutions Services In EUR m H1 18 H1 17 H1 18 H1 17 H1 18 H1 17 H1 18 H1 17 H1 18 H1 17 Total IF
Slide 36: CRR/CRD4 Prudential Capital Ratios
5 – S U P P L E ME N T - S O C I E TE G E N E R A L E G R O U P CRR/CRD4 PRUDENTIAL CAPITAL RATIOS Fully Loaded Common Equity Tier 1, Tier 1 and Total Capital In EUR bn 30/06/2018 31/12/2017 Shareholder equity Group share 59.0 59.4 Deeply subordinated notes* (9.2) (8.5) Undated subordinated notes* (
Slide 37: CRR Leverage Ratio
5 – S U P P L E ME N T - S O C I E TE G E N E R A L E G R O U P CRR LEVERAGE RATIO CRR Fully Loaded Leverage Ratio(1) In EUR bn 30/06/2018 31/12/2017 Tier 1 Capital 49.4 48.9 Total prudential balance sheet (2) 1,160 1,138 Adjustement related to derivative exposures (45) (61) Adjustement related to s
Slide 38: Strong TLAC Ratio Already in Line with Requirements
5 – S U P P L E ME N T - S O C I E TE G E N E R A L E G R O U P STRONG TLAC RATIO ALREADY IN LINE WITH REGULATORY REQUIREMENTS TLAC ratio Already meeting 2019 (19.5%) requirements and on track for 2022 (21.5%)(1) % RWA(1) % Leverage 21.9% 19.5% 2.5% Sen ior preferred 2.5% Sen ior unpreferre d 3.2% T
Slide 39: Risk-Weighted Assets
5 – S U P P L E ME N T - R I S K MA N A G E ME N T RISK-WEIGHTED ASSETS* (CRR/CRD 4, IN EUR BN) 355.7 363.1 351.0 136.5 48.9 131.3 129.7 48.7 48.9 16.6 17.1 Total 116.8 117.1 17.2 112.4 32.2 7.7 7.7 32.2 32.2 7.6 0.1 0.1 96.8 97.2 0.0 93.6 Operational 5.4 5.4 16.7 5.3 0.0 0.0 16.9 16.3 Market 0.0 Cr
Slide 40: Breakdown of Group Commitments by Sector
5 – S U P P L E ME N T - R I S K MA N A G E ME N T BREAKDOWN OF SG GROUP COMMITMENTS BY SECTOR AT 30.06.2018 Automobiles EAD Corporate: Construction Hotels & Catering 2% 3% 1% EUR 343bn* Transport equip. manuf. Machinery and equipment 2% 3% Wholesale trade Metals, minerals 7% 3% Retail trade Oil and
Slide 41: Geographic Breakdown of Group Commitments
5 – S U P P L E ME N T - R I S K MA N A G E ME N T GEOGRAPHIC BREAKDOWN OF SG GROUP COMMITMENTS AT 30.06.2018 On-and off-balance sheet EAD* On-balance sheet EAD* All customers included: EUR 899bn All customers included: EUR 655bn Africa and Asia- Latin Asia- Africa and Eastern Middle Latin Pacific A
Slide 42: Change in Gross Book Outstandings
5 – S U P P L E ME N T - R I S K MA N A G E ME N T CHANGE IN GROSS BOOK OUTSTANDINGS* End of period in EUR bn 486.4 483.1 482.1 491.2 477.5 479.1 475.5 472.7 478.7 Total Global Banking 156.9 137.9 136.0 138.7 156.7 and Investor Solutions 154.0 152.2 155.8 135.5 International Retail Banking and Finan
Slide 43: Non Performing Loans
5 – S U P P L E ME N T - R I S K MA N A G E ME N T NON PERFORMING LOANS In EUR bn 30/06/2018 31/03/2018 30/06/2017 Gross book outstandings* 491.2 482.1 475.6 Doubtful loans* 19.4 20.4 22.0 Group Gross non performing loans ratio* 3.9% 4.2% 4.6% Specific provisions 10.7 11.3 12.1 Portfolio-based provi
Slide 44: Change in Trading VaR and Stressed VaR
5 – S U P P L E ME N T - R I S K MA N A G E ME N T CHANGE IN TRADING VAR* AND STRESSED VAR** Quarterly Average of 1-Day, 99% Trading VaR* (in EUR m) 30 32 21 21 22 19 19 15 17 Trading VaR* 6 8 12 11 8 Credit 6 18 5 5 16 8 16 Interest Rates 16 17 13 12 11 11 Equity 19 19 14 12 14 15 15 12 14 Forex 3
Slide 45: Diversified Exposure to Russia
5 – S U P P L E ME N T - R I S K MA N A G E ME N T DIVERSIFIED EXPOSURE TO RUSSIA EAD(1) as of Q2 18: EUR 14.4 bn Other Corporates Sovereign ONSHORE Financial Institutions 4% 17% 2% Car loans 22% 27% Corporates Mortgages 48% Tier 1(2) Retail 38% 26% Consumer loans 4% 12% Other OFFSHORE (1) EAD net o
Slide 46: Change in Net Banking Income
5 – S U P P L E ME N T - F R E N C H R E TA I L B A N K I N G CHANGE IN NET BANKING INCOME 2,026 1,914 2,052 2,008 1,991 NBI in EUR m Commissions: 203 206 205 202 Financial Fees +2.5% vs. Q2 17 197 617 609 Service Fees 622 638 606 Interest margin(1): 107 170 148 146 Other Income 106 -9.4% vs. Q2 17
Slide 47: Customer Deposits and Financial Savings
5 – S U P P L E ME N T - F R E N C H R E TA I L B A N K I N G CUSTOMER DEPOSITS AND FINANCIAL SAVINGS Change Average outstanding Q2 18 vs. Q2 17 in EUR bn 308.4 303.2 305.0 304.7 305.3 +1.7% Life Insurance Financial +1.7% savings: EUR 110.0bn 91.9 92.0 92.8 93.0 93.5 -0.9% Mutual Funds +1.3% Others
Slide 48: Loans Outstanding
5 – S U P P L E ME N T - F R E N C H R E TA I L B A N K I N G LOANS OUTSTANDING Average outstanding, net of provisions in EUR bn Change Q2 18 vs. Q2 17 179.2 180.4 181.4 183.0 184.6 +3.0% Individual Customers +3.1% o.w.: 96.0 96.6 97.3 98.0 +3.8% 95.0 Housing 11.1 11.1 11.2 11.3 11.5 Consumer Credit
Slide 49: International Retail Banking and Financial Services – Quarterly Results
5 – S U P P L E ME N T - I N TE R N A TI O N A L R E TA I L B A N K I N G A N D F I N A N C I A L S E R V I C E S INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES – QUARTERLY RESULTS International Retail Banking Insurance Financial Services to Corporates Total In EUR m Q2 18 Q2 17 Change Q2 18 Q2
Slide 50: International Retail Banking and Financial Services – Half Year Results
5 – S U P P L E ME N T - I N TE R N A TI O N A L R E TA I L B A N K I N G A N D F I N A N C I A L S E R V I C E S INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES – HALF YEAR RESULTS Financial Services to International Retail Banking Insurance Total Corporates In EUR m H1 18 H1 17 Change H1 18 H1
Slide 51: Quarterly Results of International Retail Banking by Region
5 – S U P P L E ME N T - I N TE R N A TI O N A L R E TA I L B A N K I N G A N D F I N A N C I A L S E R V I C E S QUARTERLY RESULTS OF INTERNATIONAL RETAIL BANKING: BREAKDOWN BY REGION Africa, Asia, Total International Retail Western Europe Czech Republic Romania Other Europe Russia (1) Mediterranea
Slide 52: Half Year Results of International Retail Banking by Region
5 – S U P P L E ME N T - I N TE R N A TI O N A L R E TA I L B A N K I N G A N D F I N A N C I A L S E R V I C E S HALF YEAR RESULTS OF INTERNATIONAL RETAIL BANKING: BREAKDOWN BY REGION Africa, Asia, Total International Western Europe Czech Republic Romania Other Europe Russia (1) Mediterranean bassi
Slide 53: Loan and Deposit Outstandings Breakdown
5 – S U P P L E ME N T - I N TE R N A TI O N A L R E TA I L B A N K I N G A N D F I N A N C I A L S E R V I C E S LOAN AND DEPOSIT OUTSTANDINGS BREAKDOWN Loan Outstandings Breakdown (in EUR bn) Deposit Outstandings Breakdown (in EUR bn) Change Change June 18 vs. June 17 June 18 vs. June 17 1.0 1.0 +
Slide 54: Insurance Key Figures
5 – S U P P L E ME N T - I N TE R N A TI O N A L R E TA I L B A N K I N G A N D F I N A N C I A L S E R V I C E S INSURANCE KEY FIGURES Life Insurance Outstandings Personal Protection Insurance Premiums (in EUR m) and Unit Linked Breakdown (in EUR bn) Change 112.1 112.9 114.1 114.0 115.4 Q2 18 vs. Q
Slide 55: SG Russia
5 – S U P P L E ME N T - I N TE R N A TI O N A L R E TA I L B A N K I N G A N D F I N A N C I A L S E R V I C E S SG RUSSIA(1) SG Russia Results In EUR m Q2 18 Q2 17 Change H1 18 H1 17 Change Net banking income 197 211 +9.1%* 387 407 +9.7%* Operating expenses (134) (149) +3.5%* (283) (305) +5.6%* Gr
Slide 56: Presence in Central and Eastern Europe
5 – S U P P L E ME N T - I N TE R N A TI O N A L R E TA I L B A N K I N G A N D F I N A N C I A L S E R V I C E S PRESENCE IN CENTRAL AND EASTERN EUROPE Clients NBI Net income C/I RWA 7.5m EUR 1.2bn EUR 266m 59.5% EUR 31bn H1 18 NBI RWA Credits Deposits L/D ratio Ranking (In EUR m) (In EUR m) (In EU
Slide 57: Presence in Africa
5 – S U P P L E ME N T - I N TE R N A TI O N A L R E TA I L B A N K I N G A N D F I N A N C I A L S E R V I C E S PRESENCE IN AFRICA Clients NBI Net income C/I RWA 3.8m EUR 0.7bn EUR 100m 59.5% EUR 20bn H1 18 NBI RWA Credits Deposits L/D ratio Ranking (In EUR m) (In EUR m) (In EUR m) (In EUR m) Moro
Slide 58: Global Banking and Investor Solutions – Quarterly Results
5 – S U P P L E ME N T - G L O B A L B A N K I N G A N D I N V E S TO R S O L U TI O N S GLOBAL BANKING AND INVESTOR SOLUTIONS – QUARTERLY RESULTS Global Markets and Investor Financing and Advisory Asset and Wealth Management Total Global Banking and Investor Solutions Services Q2 18 Q2 17 Change Q2
Slide 59: Global Banking and Investor Solutions – Half Year Results
5 – S U P P L E ME N T - G L O B A L B A N K I N G A N D I N V E S TO R S O L U TI O N S GLOBAL BANKING AND INVESTOR SOLUTIONS – HALF YEAR RESULTS Global Markets and Investor Services Financing and Advisory Asset and Wealth Management Total Global Banking and Investor Solutions H1 18 H1 18 Change H1
Slide 60: Risk-Weighted Assets in EUR bn
5 – S U P P L E ME N T - G L O B A L B A N K I N G A N D I N V E S TO R S O L U TI O N S RISK-WEIGHTED ASSETS IN EUR BN Global Markets and Investor Services 69.9 66.6 69.9 25.2 24.6 24.6 15.6 13.9 14.1 29.1 28.1 31.3 Q2 17 Q1 18 Q2 18 Operational Market Financing and Advisory Asset and Wealth Manage
Slide 61: Revenues
5 – S U P P L E ME N T - G L O B A L B A N K I N G A N D I N V E S TO R S O L U TI O N S REVENUES Global Markets and Investor Services Revenues (in EUR m) Asset and Wealth Management Revenues (in EUR m) 4 5 7 6 49 4 Others 50 47 185 214 Securities 45 52 Lyxor 179 178 Services 586 166 514 535 580 Fix
Slide 62: Key Figures
5 – S U P P L E ME N T - G L O B A L B A N K I N G A N D I N V E S TO R S O L U TI O N S KEY FIGURES Private Banking: Assets under Management(1) (in EUR bn) Lyxor: Assets under Management (in EUR bn) 119 119 118 117 119 117 119 108 110 112 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18
Slide 63: CVA/DVA Impact
5 – S U P P L E ME N T - G L O B A L B A N K I N G A N D I N V E S TO R S O L U TI O N S CVA/DVA IMPACT NBI impact Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Equities 10 2 3 (1) 2 Fixed income,currencies,commodities 16 7 7 (4) (3) Financing and Advisory 14 12 7 (3) (4) Total 40 21 17 (9) (5) 2ND QUARTER AND 1ST
Slide 64: Q2 2018 – Awards and Rankings: Strong Market Recognition
5 – S U P P L E ME N T - G L O B A L B A N K I N G A N D I N V E S TO R S O L U TI O N S Q2 2018 – AWARDS AND RANKINGS: STRONG MARKET RECOGNITION Asset and Wealth Management Global Markets and Investor Services - Best Credit Provider WealthBriefing European Awards Foreign Exchange for Corporates Bes
Slide 65: Financing & Advisory: Supporting Clients in Their Transformations
5 – S U P P L E ME N T - G L O B A L B A N K I N G A N D I N V E S TO R S O L U TI O N S FINANCING & ADVISORY: SUPPORTING CLIENTS IN THEIR TRANSFORMATIONS EDF ENERGIES NOUVELLES SAFRAN Sole Financial Advisor Joint Global Coordinator, Joint Bookrunner Acquisition of 100% of the issued The leading Fre
Slide 66: Group Funding Structure
5 – S U P P L E ME N T - F U N D I N G GROUP FUNDING STRUCTURE 31 DECEMBER 2017 30 JUNE 2018 Due to Customers 411 415 Due to Banks Financial Liabilities at Fair Value through Profit or Loss - Structured Debt o.w. Securities sold to customer 16 under repurchase agreements 15 89 90 Debt Securities Iss
Slide 67: Long Term Funding Programme
5 – S U P P L E ME N T - F U N D I N G LONG TERM FUNDING PROGRAMME Expected funding program(1) Yearly average 2018-2020 Parent company 2018 vanilla funding programme of ~EUR 12bn, broken down consistently with the average trajectory communicated during the Senior Preferred and Secured debt ~EUR 2.5b
Slide 68: Long Term Funding Breakdown
5 – S U P P L E ME N T - F U N D I N G LONG TERM FUNDING BREAKDOWN(1) 30.06.2018 5% 14% 14% EUR EUR 0bn 167.1bn 14% 29% Subordinated Debt(2) Senior Non-Preferred Issues Senior Vanilla Preferred LT Interbank Liabilities(5) 9% Unsecured Issues(3) 14% Senior Structured Issues Subsidiaries Secured Issue
Slide 69: Liquid Asset Buffer
5 – S U P P L E ME N T - F U N D I N G LIQUID ASSET BUFFER Liquid Asset Buffer (in EUR bn) 158 155 174 167 164 94 73 70 Central Bank 87 76 Deposits(1) High Quality Liquid Asset Securities(2) 77 79 63 64 61 Central Bank Eligible Assets(2) 10 16 16 16 15 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Liquidity Coverag
Slide 70: EPS Calculation
5 – S U P P L E ME N T - S H A R E EPS CALCULATION Average number of shares (thousands) H1 18 Q1 18 2017 H1 17 Existing shares 807,918 807,918 807,754 807,714 Deductions Shares allocated to cover stock option plans 5,059 4,704 4,961 4,713 and free shares awarded to staff Other own shares and treasur
Slide 71: Net Asset Value, Tangible Net Asset Value
5 – S U P P L E ME N T - S H A R E NET ASSET VALUE, TANGIBLE NET ASSET VALUE End of period H1 18 Q1 18 2017 H1 17 Shareholders' equity Group share 58,959 58,925 59,373 60,111 Deeply subordinated notes (9,197) (8,362) (8,520) (10,059) Undated subordinated notes (274) (263) (269) (279) Interest net of
Slide 72: Reconciliation of Shareholders Equity to ROE/ROTE Equity
5 – S U P P L E ME N T - S H A R E RECONCILATION OF SHAREHOLDERS EQUITY TO ROE/ROTE EQUITY End of period H1 18 Q1 18 2017 H1 17 Shareholders' equity Group share 58,959 58,925 59,373 60,111 Deeply subordinated notes (9,197) (8,362) (8,520) (10,059) Undated subordinated notes (274) (263) (269) (279) I
Slide 73: Methodology (1/3)
5 – TE C H N I C A L S U P P L E ME N T METHODOLOGY (1/3) 1 – The Group’s consolidated results as at June 30th, 2018 were approved by the Board of Directors on August 1st, 2018. The financial information presented in respect the quarterly ended June 30th, 2018 has been prepared in accordance with IF
Slide 74: Methodology (2/3)
5 – TE C H N I C A L S U P P L E ME N T METHODOLOGY (2/3) 6 – Cost of risk in basis points, coverage ratio for non performing loans The cost of risk or commercial cost of risk is defined on pages 46 and 564 of Societe Generale’s 2018 Registration Document. This indicator makes it possible to assess
Slide 75: Methodology (3/3)
5 – TE C H N I C A L S U P P L E ME N T METHODOLOGY (3/3) The net result by the group retained for the numerator of the ratio is the net profit attributable to the accounting group adjusted by the interest, net of taxes to be paid on TSS & TSDI, interest paid to the holders of TSS & TSDI amortizatio
Slide 76: Investor Relations Team
INVESTOR RELATIONS TEAM +33 (0)1 42 14 47 72 investor.relations@socgen.com www.societegenerale.com/en/investors