Societe Generale: Sustainable Quarterly Performance-May 5, 2022 09:17

(AOF) – In the first quarter of 2022, Societe Generale’s net bank revenue increased by 16.6%. This is due to the very strong momentum in all businesses. Driven by a very positive Joe effect, the underlying gross operating income increased 38% to € 2,965 million and the underlying cost / revenue ratio, excluding the Single Resolution Fund, increased by nearly 7 points. It became 56.4%. Net income and group share increased 3.4% to € 842 million.

The cost of risk is 39 basis points, which is the impact of the Ukrainian crisis, primarily on Russian exposure, compared to the first quarter of 2021 (21 basis points), or € 651 million (200 million in the first quarter). It was due to (76 million euros). (2021) and categorized into a questionable unpaid allowance of € 313 million and a sound unpaid allowance of € 248 million.

With the exception of Russia’s activities sold, the cost of risk remains limited to 31 basis points and is classified into a suspicious unpaid allowance of € 277 million and a sound unpaid allowance of € 148 million. Will be done.

By 2022, the cost of risk is expected to be 30-35 basis points.

As of March 31, 2022, the Group’s common stock Tier 1 ratio was 12.9%, which exceeds regulatory requirements by approximately 370 basis points. The CET1 ratio as of March 31, 2022 includes the effect of +12 basis points on the gradual adjustment of the impact of IFRS9.

Excluding this effect, the full load rate is 12.8%. The Tier 1 ratio was 15.1% as of the end of March 2022 (15.9% as of the end of December 2021), and the overall solvency ratio was 17.9% (18.8% as of the end of December 2021).

The group aims for a CET1 ratio that exceeds regulatory requirements by 200-250 basis points, including after the regulations that finalize the Basel III reforms come into force.

Frederick Udea, Group Chief Executive Officer, commented:

“This first quarter confirms the robustness and resilience of our business model with sustainable performance of all businesses in a more uncertain environment, improved operating leverage, and reduced risk costs. Following a disposal project in the process of completing its activities in the country, a sudden change in the outlook for the country, the group may withdraw in an effective and orderly manner while ensuring the continuity of its employees and customers. I can do it.”

AOF-Details

Key Point

1864 Bank, one of Europe’s leading financial services groups.

-Net banking revenue of € 25.8 billion generated by French retail banking – Societe Generale, Crédit du Nord, Brusolama brand, international retail banking, financial services, insurance and wholesale banking solutions for customers and investors.

-A business model that claims to be a pioneer of positive transformation: 100% digital banks, open platforms and architectures, winners in the European leadership competition.

-Capital characterized by the presence of employee shareholders (6.65% and 11.9% of voting rights), 16 board of directors chaired by Lorenzo Bini Sumagi, managing director Frederick Udea.

-Equity of € 65.1 billion, CET 1 ratio of 13.7%, liquidity coverage ratio of 129%, leverage ratio of 4.9%, and therefore a solid balance sheet with debt rating A.

Task

-Vision 2025 Strategy Based on Merger with Crédit du Nord, Local Roots, Responsiveness, Adaptation to Customer Needs and Responsibilities:

-Group DNA-based innovation strategy focused on the emergence of data-driven banks with artificial intelligence: $ 200 million annual value creation with data and AI / 8/10 of servers in the cloud (2025 “” 2nd Generation “Cloud) Goals including 50% for private clouds and 25% for public clouds / new business models-Shine for individual customers, Forge for digital obligations, reezocar for vehicle and treezor rentals, payments Platform, digital currency.

-Environmental Strategy Aiming to Become a Global Leader in Sustainable Finance on Two Axis: Integration of Standards in All Businesses: Providing 100% Responsible Savings, Supporting Customers in Energy Transition, Building Hydrogen Solutions … / Sustainable Transition Initiatives: 10% reduction in global exposure to oil and gas mining by 2025, complete withdrawal from steam coal by 2030-40, ready by 2023 Completely withdraw from the money-guaranteed loan.

-Continuous integration of Crédit du Nord completed in 2023.

-Financial availability to refocus on mobility after refocusing on activities (discussion on purchasing Lease Plan by ALD subsidiary and providing alternative banking services to ING’s French customers by Boursorama).

Task

-Net assets per share of 68.7 euros compared to the stock market price.

-Impact of the war between Russia and Ukraine: The disposal of Rosbank shares reduced the CET ratio to about 13.5% and net income to fall by about 2 billion euros.

-The 2022 goal is to sharply increase the cost / revenue ratio by 66-68% and reduce risk costs by 30 basis points.

-The dividend for 2021 is 1.65 euros and the stock program, that is, the total distribution rate is 50%.

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