Societe Generale S.a. Class A · EURONEXT:GLE
Societe Generale S.a. Class A — Debt Investor Presentation (February 2020)
89 slides from Societe Generale S.a. Class A's debt investor presentation, February 2020
Slide 1: Presentation to Debt Investors
PRESENTATION TO DEBT INVESTORS 4th quarter and full year 2019 | February 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: Societe Generale at a Glance
SOCIETE GENERALE AT A GLANCE LEADING FRANCHISES - Société Générale and Crédit du Nord: two complementary brands focused on premium clients WITH AN INTERNATIONAL FOOTPRINT TO SERVE OUR - Boursorama: undisputed leader in online banking in France CLIENTS AND CAPTURE GROWTH POTENTIAL targeting > 3M clie
Slide 4: Key Highlights and Group Performance
1 KEY HIGHLIGHTS AND GROUP PERFORMANCE
Slide 5: 2019 Targets Achieved
2019 TARGETS ACHIEVED DELIVERING ON ADRESSING SOLID RISK CAPITAL TRAJECTORY PROFITABILITY PROFILE CET1 RATIO AT 12.7%, INCLUDING EUR 2.20 CASH DELIVERY ON COSTS: Group costs(2) down by 1.0% vs. 2018 COST OF RISK AT THE BOTTOM OF THE DIVIDEND PER SHARE PROVISION GUIDANCE STRONG PROFITABILITY IN INTER
Slide 6: 2020 Outlook
2020 OUTLOOK CAPITAL PROFITABILITY SHAREHOLDER RETURN CET1 RATIO TARGET AT 12% COMMITTED TO DELIVER GROWTH IN GROUP NET TARGETING AN INCREASE IN (~200BP ABOVE MDA ) INCOME EARNINGS PER SHARE AND TANGIBLE BOOK VALUE PER SHARE Modest Group revenue growth expected in current environment TLAC AND MREL C
Slide 7: Q4 19 and 2019 Group Performance
Q4 19 AND 2019 GROUP PERFORMANCE INSURANCE AND INTERNATIONAL GLOBAL BANKING AND CORPORATE FRENCH RETAIL BANKING FINANCIAL RETAIL BANKING INVESTOR SOLUTIONS CENTRE SERVICES Revenues Revenues Revenues Revenues EUR -246m +2.3% excl. PEL/CEL vs. Q4 18 +2.9%* vs. Q4 18 +1.2%* vs. Q4 18 +7.1% vs. Q4 18 20
Slide 8: 2019 Cost of Risk at the Bottom of the Guidance
2019 COST OF RISK AT THE BOTTOM OF THE GUIDANCE _Cost of risk(1) (in bp) 2018 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 2019 29 25 26 29 25 21 21 GROUP NON-PERFORMING LOAN RATIO DEC 15 DEC 16 DEC 17 DEC 18 DEC 19 30 27 30 26 20 24 FRENCH RETAIL BANKING 19 5.3% 5.0% 4.4% 3.6% INTERNATIONAL RETAIL 49 46 3.2% 43 3
Slide 9: EBA 2019 EU-Wide Transparency Exercise Non Performing Loans
EBA 2019 EU-WIDE TRANSPARENCY EXERCISE NON PERFORMING LOANS Coverage ratio as defined by the EBA in the transparency exercise (*) (Accumulated impairment, accumulated changes in fair Non Performing Loans value due to credit risk and (NPL) provisions on non- performing exposures) / as defined by the
Slide 10: Efficiency Plan on Track
EFFICIENCY PLAN ON TRACK DECREASE IN GROUP COSTS -1.0%(1) in 2019 vs. 2018 / -0.7%(1) in Q4 19 vs. Q4 18 POSITIVE JAWS IN Q4 19 Revenues +4.8% / Costs -0.7%(1) ca.70% of EUR 1.1bn initial cost savings plan accounted DELIVERING COST SAVINGS PLANS ca. 44% of EUR 500m additional GBIS cost savings plan
Slide 11: Group Results
GROUP RESULTS In EUR m Q4 19 Q4 18 Change 2019 2018 Change Net banking income 6,213 5,927 +4.8% +6.8%* 24,671 25,205 -2.1% -1.5%* Operating expenses (4,503) (4,458) +1.0% +2.1%* (17,727) (17,931) -1.1% -0.5%* Underlying operating expenses(1) (4,595) (4,627) -0.7% +0,3%* (17,411) (17,595) -1.0% -0.4%
Slide 12: Save the Date: Deep Dives 2020
SAVE THE DATE H1 H2 2020 2020 DEEP DIVE INTO DEEP DIVE INTO SUSTAINABILITY EFFICIENCY & DIGITAL PRESENTATION TO DEBT INVESTORS FEBRUARY 2020 12
Slide 13: Capital and Liquidity
2 CAPITAL AND LIQUIDITY
Slide 14: Balance Sheet Ratios Above Regulatory Requirements
BALANCE SHEET RATIOS ABOVE REGULATORY REQUIREMENTS 2019 requirements(2),(3) End-Q4 19 ratios Target 2020 CET1 10.0% 12.7% 12% Total Capital 13.5% 18.3% Leverage ratio 3.5% 4.3% 4% - 4.5% 19.8% (% RWA) 27.4% (% RWA) TLAC 6.0% (% leverage) 7.9% (% leverage) MREL(1) 8% (% TLOF) > 8% (% TLOF) LCR >100%
Slide 15: Capital: CET1 at 12.7%
CAPITAL: CET1 AT 12.7% _Q4 19: change in CET1(1) ratio (in bp) +10bp -3bp 12.8% +1bp 12.7% +10bp EMC +13bp Refocusing announced CET1(1) AT 12.7%, 12.5% transactions(2) >200 bp buffer over MDA LEVERAGE RATIO AT 4.3% TLAC(3) RATIO: 27.4% OF RWA MREL COMPLIANT LIQUID ASSET BUFFER EUR 190bn at end-Decem
Slide 16: Group TLAC / MREL
GROUP TLAC / MREL _TLAC ratio _MREL ratio Meeting 2019 (19.8%) and 2022 (21.5% (1) ) requirements Meeting total requirements (notification received in June 2018) % RWA 27.4% % RWA (1) (2) >24.4% Senior preferred 24.4% SP 2.5% Senior non preferred SNP 19.8% 6.3% 6.3% Tier 2 (*) T2 (*) AT1 % Leverage
Slide 17: 2020 Long Term Funding Programme Similar to 2019
2020 LONG TERM FUNDING PROGRAMME SIMILAR TO 2019 EUR 40.1bn raised in 2019 incl. pre-funding, o/w: EUR 17.9bn of vanilla debt (0.9bn AT1, 0.2bn T2, 2019 completed programme breakdown 8.2bn SNP, 5.6bn SP and 3bn CB) EUR 22.1bn of structured notes Competitive funding conditions: MS6M+47bp (incl. EUR 4
Slide 18: 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 31.12.2019 11% Senior vanilla issuances (public or private 18% Subordinated Debt(2) placements) Senior structured notes distributed
Slide 19: Strengthened Funding Structure
STRENGTHENED FUNDING STRUCTURE _Loan to Deposit Ratio Robust balance sheet Stable loan to deposit ratio High quality asset buffers Comfortable LCR at 124% on average in Q4 19 NSFR above regulatory requirements Liquid asset buffer of EUR 190bn at December 19 High quality of the liquidity reserve: EUR
Slide 20: Credit Rating Overview
CREDIT RATING OVERVIEW Strong franchises _Credit Rating as of January 2020 S&P: “Solid foundation in domestic retail, corporate and investment banking, and financial services to Fitch Moody’s S&P corporates. Consistent strategy and well-diversified LT/ST revenues by business lines and geography” A+(
Slide 21: 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 are committed to an approach supporting the positive
Slide 22: Group Performance
3 GROUP PERFORMANCE
Slide 23: French Retail Banking Results
FRENCH RETAIL BANKING RESULTS REVENUES(1) ABOVE GUIDANCE, +0.3% vs. 2018 Net interest margin(1) progressing supported by volumes, increase in some margins and tiering 2019 fees impacted by French banking industry In EUR m Q4 19 Q4 18 Change 2019 2018 Change commitment measures Net banking income 1,9
Slide 24: Business Dynamism in French Retail Banking in 2019
BUSINESS DYNAMISM IN FRENCH RETAIL BANKING IN 2019 SELECTIVE CLIENT ADAPTING OUR SET UP, DYNAMIC ORIGINATION ACQUISITION LEVERAGING ON DIGITAL INDIVIDUAL CLIENT LOAN +1% # of wealthy and mass OUTSTANDINGS +7.0% VS. Q4 18 78% affluent clients in 2019 MEDIUM-TERM CORPORATE LOAN % branches reduction ta
Slide 25: International Retail Banking and Financial Services Results
INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES RESULTS In EUR m Q4 19 Q4 18 Change 2019 2018 Change SOLID REVENUE GROWTH, Net banking income 2,077 2,161 -3.9% +2.3%* 8,373 8,317 +0.7% +4.6%* OFFSETTING DISPOSALS IMPACT Operating expenses (1,141) (1,145) -0.3% +5.4%* (4,581) (4,526) +1.2% +5.6%*
Slide 26: Strong Business Momentum in International Retail Banking
DELIVERING STRONG BUSINESS MOMENTUM IN INTERNATIONAL RETAIL BANKING WHILE OPTIMIZING THE MODEL EUROPE RUSSIA AFRICA AND OTHER +6%* OF LOANS OUTSTANDING +2%* OF DEPOSITS OUTSTANDING +9%* OF LOANS OUTSTANDING +13%* OF DEPOSITS OUTSTANDING +6%* +6%* OF LOANS OUTSTANDING OF DEPOSITS OUTSTANDING VS. 2018
Slide 27: Seizing Opportunities in Financial Services and Insurance
SEIZING OPPORTUNITIES IN FINANCIAL SERVICES AND INSURANCE INSURANCE ALD EQUIPMENT FINANCE 125Bn +8%* +8%* OF PROTECTION +5% 49%(2) +2.5%* LIFE INSURANCE VS. 2018 OUTSTANDINGS PREMIUMS VS 2018 OF TOTAL ORGANIC FLEET VS DEC 18 2019 COST/INCOME RATIO OF LOAN AND LEASE OUTSTANDINGS (1) VS. 2018 AS OF DE
Slide 28: Global Banking and Investor Solutions Results
GLOBAL BANKING AND INVESTOR SOLUTIONS RESULTS In EUR m Q4 19 Q4 18 Change 2019 2018 Change REVENUES +11% vs. Q4 18 (+1% vs. 2018) Net banking income 2,186 2,041 +7.1% +6.0%* 8,704 8,846 -1.6% -3.1%* Adjusted for restructuring (run-off activities, Operating expenses (1,773) (1,779) -0.3% -1.3%* (7,35
Slide 29: Successful Execution of GBIS Restructuring
SUCCESSFUL EXECUTION OF GLOBAL BANKING AND INVESTOR SOLUTIONS RESTRUCTURING FIRST SAVINGS FROM SOLID REVENUES RESTRUCTURING RESTRUCTURING _Global Banking and Investor Solutions revenues (in EUR m) _Global Banking and Investor Solutions operating expenses (in EUR m) 8,846 TARGETS Restructuring +1% Re
Slide 30: Solid Revenues Across Businesses
SOLID REVENUES ACROSS BUSINESSES GLOBAL MARKETS & INVESTOR SERVICES: +13% VS. Q4 FINANCING & ADVISORY: -2% VS. HIGH BASE IN Q4 18, 18, +18% EXCLUDING ACTIVITIES IN RUN-OFF +3% VS. 2018 _Global Markets Revenues (EUR m) _Financing & Advisory Revenues (EUR m) 731 632 692 693 667 637 Equities 505 585 58
Slide 31: Corporate Centre
CORPORATE CENTRE GROSS OPERATING INCOME EUR -105m in Q4 19, EUR -246m in 2019 In EUR m Q4 19 Q4 18 2019 2018 NET PROFITS OR LOSSES FROM OTHER Net banking income (7) (187) (152) 182 ASSETS Operating expenses (98) (104) (94) (535) Effect of IFRS 5 on refocusing programme for EUR Gross operating income
Slide 32: 2020 Priorities
2020 PRIORITIES IMPROVE PROFITABLITY THANKS TO STRICT DISCIPLINE ON COSTS AND SELECTIVE CAPITAL ALLOCATION MAINTAIN STRONG CAPITAL POSITION CAPTURE BUSINESS OPPORTUNITIES CONTINUE TO DEPLOY DIGITAL STRATEGY AND FURTHER ENHANCE CLIENT EXPERIENCE CONSOLIDATE LEADERSHIP IN SUSTAINABILITY PRESENTATION T
Slide 33: CSR Strategy
4 CSR STRATEGY
Slide 34: Positioning Societe Generale as a Leader in Sustainable Finance
POSITIONING SOCIETE GENERALE AS A LEADER IN SUSTAINABLE FINANCE TARGETING FOSTERING LEADERSHIP SECTOR IN ESG INITIATIVES Financing energy transition: 2020 EUR 100bn energy UN Principles for Responsible Banking: Core bank and founding transition target achieved one year in advance signatory and part
Slide 35: A Clear CSR Strategy Integrated Across the SG Group
A CLEAR CSR STRATEGY INTEGRATED ACROSS THE SG GROUP The Board approves annually the Group’s CSR objectives and strategy and reviews the developments of the programme CSR AMBITIONS STRUCTURED AROUND 6 MAIN THEMES IN OUR BUSINESS DEVELOPMENT GOALS… IN THE WAY WE CONDUCT BUSINESS… Climate Change Client
Slide 36: Responsibility at the Heart of Business Development
RESPONSIBILITY AT THE HEART OF BUSINESS DEVELOPMENT CLIMATE CHANGE CLIENT SATISFACTION Leveraging structuring and financing expertise to Delivering the best service, accelerate the energy transition with digital efficiency EUR 120bn commitment 2019-23 Client Service of the Year 2020 ** RESPONSIBLE E
Slide 37: Climate Strategy
CLIMATE STRATEGY 3 strategic priorities 1 MANAGING RISK 2 SEIZING OPPORTUNITIES 3 MANAGING OWN IMPACT UNDERPINNED BY COLLECTIVE COMMITMENTS Principles for Katowice Poseidon Responsible Banking Agreement Principles Strategically aligning business to the 5-bank pledge : Measuring the climate alignment
Slide 38: Climate Strategy: Managing Risk
CLIMATE STRATEGY: MANAGING RISK . GOVERNANCE TRANSITION RISK Climate-related risks incorporated into Transition risk methodology Selection of a climate scenario of Group risk, with Board approval, and established in 2018, based on a selected below 2°C, consistent with the Paris reviewed annually thr
Slide 39: Climate Strategy: Seizing Opportunities
CLIMATE STRATEGY : SEIZING OPPORTUNITIES SELECTED RESULTS KEY TARGET EUR 120bn Renewable Energy: Setting standards in Sustainable Finance: to support energy transition #4 MLA worldwide, 2019-2023: #2 EMEA (2018 Dealogic) Inaugural EUR1bio Positive Impact covered bond in July 2019 on carbon- EUR 20bn
Slide 40: Climate Strategy: Managing Own Impact
CLIMATE STRATEGY: MANAGING OWN IMPACT . KEY TARGETS and COLLECTIVE INITIATIVES COMMITMENTS The Group will progressively reduce to zero Katowice Commitment: 5-bank pledge in its exposure to the thermal coal sector, at December 2018 to co-develop tools and metrics to the latest in 2030 for companies w
Slide 41: A Unique Expertise for Clients
A UNIQUE EXPERTISE FOR CLIENTS A team of 25 experts: • E&S advisory to maximise positive and • Provides advisory services to put in place the minimise negative E&S impacts of adequate E&S set-up at corporate level transactions and optimise extra-financial performance • Projects assessed against the
Slide 42: Contribution to the Sustainable Development of Africa
CONTRIBUTION TO THE SUSTAINABLE DEVELOPMENT OF AFRICA LEVERAGING OPERATIONS IN 19 COUNTRIES AND HISTORICAL PRESENCE OVER A CENTURY INFRASTRUCTURE FINANCING SUPPORT FOR AFRICAN SMEs Four areas of focus: energy, transport, water Creation of local “SME Centres” bringing together and waste management an
Slide 43: Protection of Assets and Digital Trust Is a Strategic Issue
PROTECTION OF ASSETS AND DIGITAL TRUST IS A STRATEGIC ISSUE Security of key assets ▪ Protect data and prevent leakage ▪ Identify and enhance protection of sensitive assets ▪ Reinforce security of data and applications Customers Trust and Agility ▪ Build leading digital solutions for ▪ Extend our sec
Slide 44: Governance of Cyber Security
GOVERNANCE OF CYBER SECURITY TONE FROM THE TOP CONTEXT and COLLABORATION ▪ Cyber security is monitored by the Board of Directors’ Risk Committee and receives a The EU regulatory framework for cyber and data security is evolving: quarterly IT and cyber dashboard ▪ the Network and Information Security
Slide 45: Anchoring a Culture of Responsibility
ANCHORING A CULTURE OF RESPONSIBILITY . A COMMON A GROUP CODE OF STRONG HISTORY OF FOUR GROUP VALUES: LEADERSHIP MODEL: CONDUCT: CULTURE: SG culture underpinned by a ▪ Team Spirit Describing required A Group Code of Conduct that strong history of client service. ▪ Responsibility management and sets
Slide 46: Three-Year Culture and Conduct Programme
THREE-YEAR CULTURE AND CONDUCT PROGRAMMME ACCELERATING CULTURAL TRANSFORMATION A CLEAR ROADMAP WITH 3 MAIN OBJECTIVES... 1 Accelerate SG’s cultural transformation 2 Achieve the highest standards of quality of service, integrity and behaviour 3 Make SG’s culture a differentiating factor: quality of s
Slide 47: Clear Governance of E&S Risk Management
CLEAR GOVERNANCE OF E&S RISK MANAGEMENT THE BOARD approves climate strategy and risk appetite GENERAL MANAGEMENT reviews CSR strategy and climate-related risks and opportunities Deputy CEO Diony Lebot has overall responsibility for climate strategy and supervision of control functions GROUP MANAGEME
Slide 48: Committed to Be a Responsible Employer
COMMITTED TO BE A RESPONSIBLE EMPLOYER . DEVELOP THE SKILLS THAT DEVELOP A RESPONSIBLE FOSTER EMPLOYEE EMPLOYEES NEED BANKING CULTURE COMMITMENT AND TEAM SPIRIT To Adjust To Transformations On The based on the common values of the Group’s ▪ Recognising each individual’s contribution Banking Landscap
Slide 49: Diversity at Societe Generale
DIVERSITY AT SOCIETE GENERALE… GENDER NATIONALITY Female Non-French 14 members 43% 36% BOARD Incl employee Male French representatives 57% 64% Non-French Female 20% GENERAL MANAGEMENT 5 members 20% 100% MALE Male French 80% 80% Non-French Gender Equality Female MANAGEMENT 23% 24% Equileap 2019 COMMI
Slide 50: Supplement
5 SUPPLEMENT
Slide 51: Strengthening the Business Model
STRENGTHENING THE BUSINESS MODEL RESTRUCTURING Global Banking and Investor Solutions EXIT from NON CORE FRANCHISES with 7 disposals announced in 2019 CAPITAL ALLOCATED to the MOST PROFITABLE FRANCHISES Further enhance CLIENT EXPERIENCE by developing NEW BUSINESS MODELS and leveraging on SYNERGIES Ac
Slide 52: 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 Q4 19 Q4 18 Q4 19 Q4 18 Q4 19 Q4 18 Q4 19 Q4 18 Q4 19 Q4 18 Net banking income 1,957 1,912 2,077 2,161 2,18
Slide 53: Group 2019 Income Statement by Core Business
GROUP 2019 INCOME STATEMENT BY CORE BUSINESS International Retail Banking Global Banking and Investor French Retail Banking Corporate Centre Group and Financial Services Solutions In EURm 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 Net banking income 7,746 7,860 8,373 8,317 8,704 8,846 (152) 1
Slide 54: Group: IAS 12 Amendment Impact Reconciliation
GROUP: IAS 12 AMENDMENT IMPACT RECONCILIATION WITH 2017/18 AND Q1 19 REPORTED FIGURES Income Tax Group Net Income Reported IAS 12 impact Adjusted Reported IAS 12 impact Adjusted 2017 (1,708) 198 (1,510) 2,806 198 3,004 Q1 18 (370) 53 (317) 850 53 903 Q2 18 (516) 68 (448) 1,156 68 1,224 Q3 18 (539) 7
Slide 55: Group: Underlying Data Reconciliation with Reported Figures
GROUP: UNDERLYING DATA RECONCILIATION WITH REPORTED FIGURES Net income from Net profit or losses companies accounted Q4 19 (in EURm) Operating Expenses Net cost of risk Group net income Business from other assets for by the equity method Reported (4,503) (371) (125) (154) 654 (+) IFRIC 21 linearisat
Slide 56: Group CRR/CRD4 Prudential Capital Ratios
GROUP CRR/CRD4 PRUDENTIAL CAPITAL RATIOS _Fully Loaded Common Equity Tier 1, Tier 1 and Total Capital In EUR bn 31/12/2019 31/12/2018 Shareholder equity Group share 63.5 61.0 Deeply subordinated notes* (9.5) (9.3) Undated subordinated notes* (0.3) (0.3) Dividend to be paid & interest on subordinated
Slide 57: Group CRR Leverage Ratio
GROUP CRR LEVERAGE RATIO _CRR Fully Loaded Leverage Ratio(1) 31/12/2019 31/12/2018 In EUR bn Tier 1 Capital 51.9 51.4 Total prudential balance sheet (2) 1,204 1,175 Adjustement related to derivative exposures (81) (46) Adjustement related to securities financing transactions* (3) (11) Off-balance sh
Slide 58: Group Risk-Weighted Assets
GROUP RISK-WEIGHTED ASSETS* (CRR/CRD 4, IN EUR BN) 376.0 142.3 353.5 345.0 49.6 49.2 122.1 23.7 48.0 119.7 117.4 33.1 117.7 Total 115.3 15.8 7.7 14.5 0.1 7.2 6.9 0.1 0.1 97.5 98.1 97.8 33.0 32.2 5.5 5.3 21.8 Operational 5.5 0.1 0.1 0.1 Market 14.4 13.5 Credit 302.7 288.5 111.9 110.1 108.3 282.5 92.0
Slide 59: Group Change in Gross Book Outstandings
GROUP CHANGE IN GROSS BOOK OUTSTANDINGS* End of period in EUR bn 502.4 504.6 504.8 507.1 491.1 496.6 501.2 478.7 482.1 Total 164.9 164.2 160.9 157.5 158.1 Global Banking 136.0 138.7 156.7 158.0 and Investor Solutions International Retail Banking and Financial Services 138.7 140.0 136.6 138.5 139.8 1
Slide 60: Breakdown of SG Group Commitments by Sector
GROUP - BREAKDOWN OF SG GROUP COMMITMENTS BY SECTOR AT 31.12.2019 EAD Corporates: EUR 326bn* Finance & insurance 17,0% Business services 10,8% Real Estate 10,1% Wholesale trade 7,3% Transport & logistics 7,0% Collective services 6,2% Oil and gas 6,1% Retail trade 4,9% Food & agriculture 4,1% Metals,
Slide 61: Geographic Breakdown of SG Group Commitments
GROUP - GEOGRAPHIC BREAKDOWN OF SG GROUP COMMITMENTS AT 31.12.2019 On-and off-balance sheet EAD* On-balance sheet EAD* All customers included: EUR 919bn All customers included: EUR 685bn Asia-Pacific Africa and Latin Eastern Asia-Pacific Africa and Latin 6% Middle East America and Eastern 5% Europe
Slide 62: Group Non Performing Loans
GROUP NON PERFORMING LOANS In EUR bn 31/12/2019 30/09/2019 31/12/2018 Gross book outstandings* 507.1 504.8 501.2 Doubtful loans* 16.2 16.9 18.0 Group Gross non performing loans ratio* 3.2% 3.4% 3.6% Stage 1 provisions 0.9 0.9 0.9 Stage 2 provisions 1.0 1.0 1.0 Stage 3 provisions 9.0 9.4 9.7 Group Gr
Slide 63: 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) 23 28 19 17 18 21 18 22 Trading VaR* 15 8 16 6 7 10 5 5 4 Credit 8 15 12 12 10 Interest Rates 12 11 13 11 11 Equity 14 17 19 Forex 15 14 13 15 15 12 Commodities 3 3 3 4 4 4 3 3 2 2 2 2 3 2 2 2 2
Slide 64: Group Funding Structure
GROUP FUNDING STRUCTURE (In EURbn) 31 DECEMBER 2018 31 DECEMBER 2019 810 777 419 417 Due to Customers o.w. Securities sold to customer 9 17 under repurchase agreements Due to Banks 108 95 Financial Liabilities at Fair Value through Profit or Loss - 5 o.w. Securities sold to bank under 9 repurchase a
Slide 65: Group EPS Calculation
GROUP EPS CALCULATION Average number of shares (thousands) 2019 2018 2017 Existing shares 834,062 807,918 807,754 Deductions Shares allocated to cover stock option plans and free shares awarded to staff 4,011 5,335 4,961 Other own shares and treasury shares 149 842 2,198 Number of shares used to cal
Slide 66: Group Net Asset Value, Tangible Net Asset Value
GROUP NET ASSET VALUE, TANGIBLE NET ASSET VALUE End of period 2019 2018 2017 Shareholders' equity Group share 63,527 61,026 59,373 Deeply subordinated notes (9,501) (9,330) (8,520) Undated subordinated notes (283) (278) (269) Interest, net of tax, payable to holders of deeply subordinated notes & un
Slide 67: Group ROE/ROTE Calculation Detail
GROUP ROE/ROTE CALCULATION DETAIL End of period Q4 19 Q4 18 2019 2018 Shareholders' equity Group share 63,527 61,026 63,527 61,026 (9,501) (9,330) (9,501) (9,330) Deeply subordinated notes Undated subordinated notes (283) (278) (283) (278) Interest net of tax payable to holders of deeply subordinate
Slide 68: French Retail Banking Net Banking Income
FRENCH RETAIL BANKING NET BANKING INCOME Change Q4 19 vs. Q4 18 1,912 1,916 1,994 1,879 1,957 +2.4% NBI in EURm Commissions(2) -1.7% vs. Q4 18 and –2.1% vs. 2018 888 858 873 863 848 -1.7% Fees(2) 82 123 68 80 -7.7% 86 Interest margin(1) Other Income +6.8% vs. Q4 18 and +2.0% vs. 2018 965 983 1,010 1
Slide 69: French Retail Banking Customer Deposits and Financial Savings
FRENCH RETAIL BANKING CUSTOMER DEPOSITS AND FINANCIAL SAVINGS Change Average outstanding Q4 19 vs. Q4 18 in EUR bn 309 310 312 318 317 +2.6% Financial savings: 95 Life Insurance 92 94 95 96 EUR 106.4bn -31.0% +4.1% -0.9% Mutual Funds 12 12 10 -31.0% 15 13 109 110 112 117 118 +9.0% Sight Deposits(1)
Slide 70: French Retail Banking Loans Outstanding
FRENCH RETAIL BANKING LOANS OUTSTANDING Change Average outstanding, net of provisions in EUR bn Q4 19 vs. Q4 18 192 194 198 202 +6.4% 189 Housing 104 107 +7.3% 99 100 101 Consumer Credit and Overdraft 13 13 13 13 13 +4.8% Business 77 79 80 81 82 +5.5% Customers* 0.2 0.2 0.2 0.2 0.2 +9.5% Financial I
Slide 71: IBFS Quarterly Results
INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES QUARTERLY RESULTS International Retail Banking Insurance Financial Services to Corporates Total In EUR m Q4 19 Q4 18 Change Q4 19 Q4 18 Change Q4 19 Q4 18 Change Q4 19 Q4 18 Change Net banking income 1,392 1,477 +2.9%* 222 224 -0.8%* 463 460 +2.2%*
Slide 72: IBFS 2019 Results
INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES 2019 RESULTS Financial Services to International Retail Banking Insurance Total Corporates In EUR m 2019 2018 Change 2019 2018 Change 2019 2018 Change 2019 2018 Change Net banking income 5,592 5,608 +5.6%* 909 887 +2.5%* 1,872 1,822 +3.1%* 8,373 8,
Slide 73: 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 Q4 19 Q4 18 Q4 19 Q4 18 Q4 19 Q4 18 Q4 19 Q4 18 Q4 19 Q4 18 Q4 19 Q4 18 Q4 1
Slide 74: 2019 Results of International Retail Banking by Region
2019 RESULTS OF INTERNATIONAL RETAIL BANKING BREAKDOWN BY REGION Africa, Asia, Total International Western Europe Czech Republic Romania Other Europe Russia (1) Mediterranean Retail Banking bassin and Overseas In M EUR 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 Net banking
Slide 75: IBFS 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 Dec.19 vs. Dec. 18 Dec. 19 vs. Dec.18 1.0 +11.8%* 1.1 17.9 83.3 +2.5%* o.w. Equipment +4.9%* 78.1 18.5 2.0 Fina
Slide 76: IBFS Insurance Key Figures
INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES INSURANCE KEY FIGURES _Life Insurance Outstandings and Unit Linked Breakdown (in EUR bn) _Personal Protection Insurance Premiums (in EUR m) 115.4 118.4 120.0 121.8 125.1 26% 27% 28% 28% 30% Unit Linked Change 277 289 285 269 Q4 19 vs. Q4 18 Euro Fu
Slide 77: IBFS SG Russia
INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES SG RUSSIA(1) _SG Russia Results In EUR m Q4 19 Q4 18 Change 2019 2018 Change Net banking income 245 220 +3.4%* 899 815 +7.8%* Operating expenses (165) (146) +5.2%* (608) (562) +6.0%* Gross operating income 80 74 -0.1%* 291 252 +11.8%* Net cost of r
Slide 78: Group Diversified Exposure to Russia
GROUP DIVERSIFIED EXPOSURE TO RUSSIA _EAD as of Q4 19: EUR 17.8bn Financial Institutions Sovereign 10% 14% Car loans 24% Corporates(1) Mortgages 47% 36% Retail 25% 40% 4% Consumer loans Other (1) o/w ca.90% Tier 1 corporates PRESENTATION TO DEBT INVESTORS FEBRUARY 2020 78
Slide 79: IBFS Presence in Africa
INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES PRESENCE IN AFRICA Clients NBI Net income C/I RWA 4.1m EUR 1.6bn EUR 191m 59% EUR 21.3bn 2019 NBI RWA Credits Deposits L/D ratio Ranking (1) (In EURm) (In EURm) (In EURm) (In EURm) Morocco 457 7,992 8,108 6,969 116% 5th Algeria 173 1,882 1,789 2,19
Slide 80: GBIS 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 Q4 19 Q4 18 Change Q4 19 Q4 18 Change Q4 19 Q4 18 Change Q4 19 Q4 18 Change Net banking income 1,300 1,
Slide 81: GBIS 2019 Results
GLOBAL BANKING AND INVESTOR SOLUTIONS 2019 RESULTS Global Markets and Investor Financing and Advisory Asset and Wealth Management Total Global Banking and Investor Solutions Services In EUR m 2019 2018 Change 2019 2018 Change 2019 2018 Change 2019 2018 Change Net banking income 5,210 5,414 -5.9%* 2,
Slide 82: GBIS Risk-Weighted Assets
GLOBAL BANKING AND INVESTOR SOLUTIONS RISK-WEIGHTED ASSETS IN EUR BN _Global Markets and Investor Services 75.6 65.3 61.2 25.6 25.6 24.7 19.5 13.3 12.7 30.5 26.4 23.9 Q4 18 Q3 19 Q4 19 Operational Market _Financing and Advisory _Asset and Wealth Management Credit 55.7 47.9 48.3 5.5 1.1 5.5 5.6 0.8 1
Slide 83: GBIS Revenues
GLOBAL BANKING AND INVESTOR SOLUTIONS REVENUES _Global Markets and Investor Services Revenues (in EUR m)(1) _Asset and Wealth Management Revenues (in EUR m) 5 5 179 3 5 200 169 Securities 5 166 44 177 Services 47 51 57 461 519 494 48 Others 390 520 Fixed Income and Lyxor Currencies 182 206 181 667 6
Slide 84: GBIS Key Figures
GLOBAL BANKING AND INVESTOR SOLUTIONS KEY FIGURES _Private Banking: Assets under Management (in EUR bn) _Lyxor: Assets under Management (in EUR bn) 113 113 114 117 119 135 138 149 118 121 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 _Securities Services: Assets under Custody (in EUR b
Slide 85: GBIS CVA/DVA Impact
GLOBAL BANKING AND INVESTOR SOLUTIONS CVA/DVA IMPACT NBI impact Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Equities (9) 10 4 0 2 Fixed Income and Currencies (34) 29 7 (15) 36 Financing and Advisory (8) 1 (1) (9) 12 Total (51) 39 9 (24) 49 Historical series restated according to new quarterly series published on
Slide 86: Methodology (1/3)
METHODOLOGY (1/3) 1 – The financial information presented for the fourth quarter and full year ended 30 December 2019 was reviewed by the Board of Directors on 5 February 2020 and has been prepared in accordance with IFRS as adopted in the European Union and applicable at this date. The audit proced
Slide 87: 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 42 and 562 of Societe Generale’s 2019 Registration Document. This indicator makes it possible to assess the level of risk of each of the pillars
Slide 88: 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 89: Investor Relations Team
INVESTOR RELATIONS TEAM investor.relations@socgen.com www.societegenerale.com/en/investors
Societe Generale — Debt Investor Presentation (February 2020) on 6ix