|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||12.41 - 13.03|
|52-week range||11.35 - 32.23|
|Beta (5Y monthly)||1.48|
|PE ratio (TTM)||7.40|
|Earnings date||03 Aug 2020|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||26 May 2020|
|1y target est||43.49|
(Bloomberg) -- Societe Generale SA suffered its worst quarter since rogue trader Jerome Kerviel’s record loss more than 12 years ago, after it wrote down the value of its trading business and took a large tax charge.The French lender posted almost 1.33 billion euros ($1.56 billion) in one-off costs following a review of the global markets and investor services business, including a 684 million-euro writedown. That capped a tough period for the bank, which saw equities-trading revenue decline 80% after structured products were hit for a second straight quarter.The resulting 1.26 billion-euro net loss extends a losing streak for embattled Chief Executive Officer Frederic Oudea, who is under increasing pressure to turn the lender around after a 60% slump in the shares this year. The 57-year-old is reducing risks and accelerating a transition toward simpler products at the investment bank, while trying to defend SocGen’s leading position in equity structured products.“We have a worldwide leading position in investment solutions with equity structured products, and we have decided to protect this franchise,” Deputy CEO Severin Cabannes said in an interview with Bloomberg TV. “But we have decided to adjust our product mix, to have products that are less sensitive to this market dislocation.”SocGen fell as much as 4.4% in early Paris trading and declined 2.7% as of 1:07 p.m. The stock has lost about 59% this year, making it one of Europe’s worst-performing banks.Equities trading took a 200 million-euro hit in the second quarter related to companies canceling dividends because of the coronavirus, offsetting a 38% rise in fixed income trading. The bank said it also expects to cut as much as 450 million euros of costs at the unit by 2022. Cabannes declined to say whether the bank plans any job cuts this year.The bank will stop producing the structured products that went awry in the first half, and is working to develop alternatives that will be less sensitive to market dislocations, Cabannes said at a press conference.The French firm’s biggest rival, BNP Paribas SA, rebounded from a first-quarter profit warning and stock trading hit with a blowout performance in fixed-income. Revenue from trading fixed-income securities, currencies and commodities jumped 154% in the second quarter from a year earlier, offsetting a more than 53% decline in equities trading. It said there was only a “residual impact” from the dividend cancellations.SocGen set aside about 1.28 billion euros in the second quarter to cover the cost of loans going sour, higher than the 820 million euros in the first three months. The bank said it’s on track to reach its cost target of 16.5 billion euros for 2020.The results signal that SocGen only partially benefited from a broad-based market rally that helped U.S. peers double revenue in fixed income trading. Overall, Wall Street banks’ trading and dealmaking businesses recorded their best quarter, with $45 billion in revenue. Still, they and European counterparts including Deutsche Bank AG have warned that conditions will probably be less advantageous in the second half of the year.More details from SocGen’s second-quarter results:Loss of EU1.26b vs estimate of EU183.1m profitRevenue EU5.29b vs estimate of EU5.52bCET ratio 12.5% vs estimate of 12.2%Fixed income revenue EU700m vs estimate EU556mEquities revenue 142m vs estimate 313mProvisions EU1.28b vs EU1.1b estimateEU650m deferred tax charge impacts Global Markets businessOudea had flagged in June that the bank may have missed the trading rally that boosted rivals. Coronavirus-related market swings wiped out stock trading revenue in the first quarter, prompting the bank’s board to pressure Oudea to make changes at the unit, people with knowledge of the matter said at the time.SocGen late last year initiated a formal search for a successor to Oudea, Bloomberg has reported. The plan then was to have a candidate ready when the CEO’s term ends in 2023, though the replacement could happen before that, people familiar with the matter said at the time.Oudea has been in charge for more than a decade, for a while in the dual role of CEO and chairman of the board of directors. In 2015, SocGen separated the two roles and named former European Central Bank board member Lorenzo Bini Smaghi to oversee the board.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
France's third-biggest bank by market capitalisation has struggled to perform in businesses it wants to keep, such as equities trading, in a blow to efforts of Chief Executive Frederic Oudea to boost profitability. It said would reduce the risk profile of its trading business in a shift costing 200 million euros to 250 million euros in lost revenue, though it pledged to maintain its equity structured products business.
Societe Generale SA <SOGN.PA> said on Monday it hoped to put all "the bad news" behind it following two straight quarterly losses that have prompted a revamp of its struggling markets unit. France's third-biggest bank by market capitalisation has struggled to perform in businesses it wants to keep, such as equities trading, in a blow to efforts of Chief Executive Frederic Oudea to boost profitability. It said would reduce the risk profile of its trading business in a shift costing 200 million euros to 250 million euros in lost revenue, though it pledged to maintain its equity structured products business.
RESULTS AT JUNE 30TH 2020 Press release Paris, August 3rd 2020Q2 20 AND H1 20 PERFORMANCE MARKED BY THE COVID CRISIS; REBOUND FROM MID-MAY French Retail Banking and International Retail Banking activities impacted in the first half of Q2 20; rebound from mid-May Resilient activities in Insurance, Private Banking and Transaction Banking Good performance in Financing & Advisory and Fixed Income & Currencies; ongoing unfavourable market conditions for structured products in April and May and gradual recovery from mid-May Non-cash exceptional items related to the review of the trajectory of Global Markets & Investor Services: impairment of goodwill for EUR -684m and deferred tax assets for EUR -650m Group net income of EUR -1,264m in Q2 20 (EUR -1,590m in H1 20) and Group net income restated for non-cash exceptional items of EUR +70m in Q2 20 SHARP DECLINE IN COSTS Decline in operating expenses of -9.6% in Q2 20 and -5.8% in H1 20, reinforcing the objective of underlying operating expenses of EUR 16.5bn in 2020 Objective to decrease costs in the medium termHALF OF THE COST OF RISK IMPACTED BY IFRS9 EFFECTS AND COUNTERPARTY RATING DOWNGRADES Net cost of risk of EUR 1,279m in Q2 20 (x4 vs. Q2 19), including EUR 653m related to provisions for expected credit losses in Stage 1 and Stage 2; Cost of risk at 81 basis points in H1 20 2020 cost of risk expected to be at the low end of the 70 to 100 basis points range SOLID CAPITAL AND LIQUIDITY POSITION CET1 ratio of 12.5%(1) (12.6% pro-forma(2)) at June 30th 2020, i.e. nearly 350 basis points above the regulatory requirement 81% of the financing programme achieved; LCR of 167%(3) CET1 ratio expected to be at the high-end of the 11.5% to 12% range at end-2020 FINALISATION OF THE STRATEGIC REVIEW OF STRUCTURED PRODUCTS Maintain a global leadership position in Equity structured products, recognised by our clients, and reduce the associated risk profile; improving the profitability of Global Markets through a reduction in costs of around EUR 450 million by 2022-2023Frédéric Oudéa, the Group’s Chief Executive Officer, commented: “During the first half of 2020, Societe Generale successfully adapted to the consequences of the health crisis and was therefore able to effectively support its customers and employees, thereby strengthening its position as a trusted partner. While April and May were heavily impacted by the reduction in activity of numerous economies around the world, the rebound in activities from mid-May is very encouraging. Drawing on a very solid capital base and a loan portfolio confirming its intrinsic quality, the Group will continue to adapt its activities to the new post-COVID crisis environment, extending in particular the efforts to reduce costs. The Group is already working on new initiatives to build its next strategic stage (2021-2023) focused around three priority objectives, customer centricity, corporate social responsibility and operational efficiency based on digital technologies.” 1. GROUP CONSOLIDATED 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% Gross operating income 1,436 2,014 -28.7% -25.9%* 1,928 3,416 -43.6% -41.6%* Underlying gross operating income(1) 1,312 2,132 -38.5% -36.2% 2,281 3,975 -42.6% -40.9% Net cost of risk (1,279) (314) x 4.1 x 4.1* (2,099) (578) x 3.6 x 3.7* Operating income 157 1,700 -90.8% -90.4%* (171) 2,838 n/s n/s Underlying operating income(1) 33 1,836 -98.2% -98.2% 182 3,415 -94.7% -94.6% Net profits or losses from other assets 4 (80) n/s n/s 84 (131) n/s n/s Underlying net profits or losses from other assets(1) 4 4 +0.0% -0.8% 161 6 x 26 x 80.3 Impairment losses on goodwill (684) 0 n/s n/s (684) 0 n/s n/s Income tax (658) (390) +68.7% -69.4%* (612) (645) -5.1% +3.0%* Reported Group net income (1,264) 1,054 n/s n/s (1,590) 1,740 n/s n/s Underlying Group net income(1) 8 1,247 -99.3% -99.4% 0 2,332 -100.0% n/s ROE -10.9% 6.9% -7.2% 5.5% ROTE -6.5% 8.3% -5.3% 6.9% Underlying ROTE (1) -1.3% 9.7% -1.3% 9.1% (1) Adjusted for exceptional items and linearisation of IFRIC 21 Societe Generale’s Board of Directors, which met on July 31st, 2020 under the chairmanship of Lorenzo Bini Smaghi, examined the Societe Generale Group’s results for Q2 and H1 2020.The various restatements enabling the transition from underlying data to published data are presented in the methodology notes (section 10.5). Net banking income Q2 2020 was heavily impacted by the Covid-19 global health crisis and its economic consequences. As a result, the Group’s net banking income was down -15.7% vs. Q2 19. It was down -16.1% in H1 20 vs. H1 19.Marked by the lockdown in April and May and the recovery in activity from mid-May, French Retail Banking’s net banking income (excluding PEL/CEL provision) was down -13.5% vs. Q2 19 (-10.8% excluding adjustment for tax related to commissions of EUR +61 million in Q2 19) and -7.5% vs. H1 19.International Retail Banking & Financial Services saw revenues fall by -10.8%* vs. Q2 19 and -4.7%* vs. H1 19. International Retail Banking revenues were 8.9%* lower in Q2 20, reflecting a significant decline in activity in April and May and a rebound in June. Insurance revenues were down -7.9% (-7.1%*) vs. Q2 19 given the unfavourable conditions in the financial markets, while Financial Services to Corporates’ revenues were down -20.9% (-17.7%*) vs. Q2 19.Global Banking & Investor Solutions’ net banking income fell by -17.0% in Q2 and by -22.2% in H1 in an exceptional market environment that impacted Global Markets’ revenues. Operating expenses Operating expenses declined -9.6% in Q2 20 vs. Q2 19, to EUR 3,860 million, and -5.8%, to EUR 8,538 million in H1 20. Underlying costs came to EUR 3,984 million in Q2 20 and EUR 8,185 million in H1 20. All the businesses saw substantially lower costs in Q2 20: -8.5% in French Retail Banking, -7%* in International Retail Banking & Financial Services and -18.0% in Global Banking & Investor Solutions (-9.2% when restated for the restructuring provision recorded in Q2 19 for EUR 227 million and the increase in the resolution fund of EUR +38 million in Q2 20). The trend was also downward in H1 20: -5.3% in French Retail Banking, -2.0%* in International Retail Banking & Financial Services and -10.0% in Global Banking & Investor Solutions.Underlying operating expenses are expected of around EUR 16.5 billion in 2020. Cost of riskThe Group’s commercial cost of risk (expressed as a fraction of outstanding loans) amounted to 97 basis points in Q2 20, higher than in Q1 20 (65 basis points) and Q2 19 (25 basis points), or EUR 1,279 million. The net cost of risk in respect of loans classified in Stage 1 (performing) and Stage 2 (underperforming) amounted to EUR 653 million including EUR 490 million for the impact related to the review of macro-economic scenarios on the estimate of credit losses. French Retail Banking’s cost of risk amounted to 85 basis points. The cost of risk of International Retail Banking & Financial Services and Global Banking & Investor Solutions came to 125 basis points and 95 basis points respectively.The commercial cost of risk stood at 81 basis points in H1 20 and is expected to be at the bottom of the range of between 70 to 100 basis points for 2020.The gross doubtful outstandings ratio amounted to 3.2%(1) at June 30th 2020, and 3.1% at March 31st 2020\. The Group’s gross coverage ratio for doubtful outstandings stood at 54%(2) at June 30th 2020 (55% at March 31st 2020).Net profits or losses from other assets Net profits or losses from other assets totalled EUR +4 million in Q2 20 and EUR +84 million in H1 20, including EUR -77 million related to the application of IFRS 5 as part of the implementation of the Group’s refocusing plan in Q1 20.Impairment loss on goodwill/Income taxThe Group recorded two non-cash exceptional items due to the review of the financial trajectory of Global Markets & Investor Services: a EUR -684 million expense in respect of the goodwill impairment of the Global Markets & Investor Services CGU and a EUR -650 million expense in respect of the impairment of deferred tax assets.Group net incomeIn EURm Q2 20 Q2 19 H1 20 H1 19 Reported Group net income (1,264) 1 054 (1,590) 1,740 Underlying Group net income(1) 8 1,247 0 2,332 In % Q2 20 Q2 19 S1-20 S1-19 ROTE (reported) -6.5% 8.3% -5.3% 6.9% Underlying ROTE(1) -1.3% 9.7% -1.3% 9.1% Earnings per share is negative and amounts to EUR -2.25 in H1 20 (EUR 1.69 in H1 19). Underlying earnings per share comes to EUR -0.38 over the same period. 2. THE GROUP’S FINANCIAL STRUCTUREGroup shareholders’ equity totalled EUR 60.7 billion at June 30th, 2020 (EUR 63.5 billion at December 31st, 2019). Net asset value per share was EUR 61.8 and tangible net asset value per share was EUR 54.3.The consolidated balance sheet totalled EUR 1,453 billion at June 30th, 2020 (EUR 1,356 billion at December 31st, 2019). The net amount of customer loan outstandings at June 30th, 2020, including lease financing, was EUR 447 billion (EUR 430 billion at December 31st, 2019) – excluding assets and securities purchased under resale agreements. At the same time, customer deposits amounted to EUR 440 billion, vs. EUR 410 billion at December 31st, 2019 (excluding assets and securities sold under repurchase agreements). At end-June 2020, the parent company had issued EUR 21.5 billion of medium/long-term debt, having an average maturity of 5.7 years and an average spread of 61 basis points (vs. the 6-month mid-swap, excluding subordinated debt). The subsidiaries had issued EUR 551 million. At June 30th, 2020, the Group had issued a total of EUR 22 billion of medium/long-term debt. The LCR (Liquidity Coverage Ratio) was well above regulatory requirements at 180% at end-Juin 2020, vs. 119% at end-December 2019. At the same time, the NSFR (Net Stable Funding Ratio) was over 100% at end-June 2020. The Group’s risk-weighted assets (RWA) amounted to EUR 360.7 billion at June 30th, 2020 (vs. EUR 345.0 billion at end-December 2019) according to CRR/CRD4 rules. Risk-weighted assets in respect of credit risk represent 80.9% of the total, at EUR 291.9 billion, up 3.3% vs. December 31st, 2019.At June 30th, 2020, the Group’s Common Equity Tier 1 ratio stood at 12.5% (12.6% pro forma for the announced disposal amounting to 10 basis points), i.e. 350 basis points above the regulatory requirement of 9.05% as at June 30th, 2020. This ratio includes an effect of +20 basis points for phasing of the IFRS 9 impact. Excluding this effect, the ratio amounts to 12.3%. The Tier 1 ratio stood at 14.6% at end-June 2020 (15.1% at end-December 2019) and the total capital ratio amounted to 17.7% (18.3% at end-December 2019). All of the effects in Q2 20 are presented in Appendix 10.The CET1 ratio is expected to be at the top of the range of between 11.5% and 12% at end-2020. With a level of 28.5%(1) of RWA and 8.2%(1) of leveraged exposure at end-June 2020, the Group’s TLAC ratio is above the FSB’s requirements for 2022. At June 30th, 2020, the Group was also above its MREL requirements of 8.51% of the TLOF(2) (which, in December 2017, represented a level of 24.4% of RWA), which were used as a reference for the SRB calibration. The leverage ratio stood at 4.2%(3) at June 30th, 2020 (4.3% at end-December 2019).The Group is rated by four rating agencies: (i) FitchRatings - long-term rating “A-”, rating watch stable, senior preferred debt rating “A”, short-term rating “F1”; (ii) Moody’s – long-term rating (senior preferred debt) “A1”, stable outlook, short-term rating “P-1”; (iii) R&I - long-term rating (senior preferred debt) “A”, stable outlook; and (iv) S&P Global Ratings - long-term rating (senior preferred debt) “A”, negative outlook, short-term rating “A-1”. 3. FRENCH RETAIL BANKINGIn EURm Q2 20 Q2 19 Change H1 20 H1 19 Change 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) (1,348) -8.5% (2,683) (2,834) -5.3% Gross operating income 521 646 -19.3% 951 1,076 -11.6% Gross operating income excl. PEL/CEL 516 673 -23.3% 971 1,115 -12.9% Net cost of risk (442) (129) +242.6% (691) (223) +209.9% Operating income 79 517 -84.7% 260 853 -69.5% Net profits or losses from other assets 5 1 +400,0% 136 2 x 68 Reported Group net income 60 356 -83.1% 279 590 -52.7% RONE 2.1% 12.6% 4.9% 10.5% Underlying RONE (1) 1.4% 1.4% 6.0% 11.5% (1) Adjusted for the linearisation of IFRIC 21 and PEL/CEL provisionAfter the substantial impact of the lockdown on activity in April and May, French Retail Banking’s commercial performance improved from mid-May. Customers substantially reduced their activity during April and May: accordingly, the level of bank card transactions and corporate credit transfers during this period was well below the average level observed in Q2 2019. Loan production was focused in particular on State Guaranteed Loans (PGE), with a slowdown in production on other categories. Customer activity gradually picked up from mid-May, which resulted in the level of bank card transactions and corporate credit transfers in June close to the monthly average levels in Q2 19. The networks continued to develop their digital offer in Q2. Societe Generale expanded its offering for Professional and VSE customers, with the acquisition of Shine, the neobank for entrepreneurs. It also launched the third generation of its digital application.Boursorama consolidated its position as the leading online bank in France, with around 2.37 million clients at end-June 2020 and provided further evidence of the agility of its online banking model with a comprehensive offering. In a crisis environment, the commercial momentum remained robust. Boursorama’s contribution to Group net income was positive in Q2, driven by a decline in acquisition costs and a record activity in stock market activity.Net inflow for wealthy clients remained robust at EUR 1.1 billion in Q2 (EUR 1.6 billion in H1), taking assets under management to EUR 67.3 billion (including Crédit du Nord) at end-June 2020. Life insurance outstandings totalled EUR 93 billion, with the unit-linked share accounting for 26% of outstandings. The networks continued to develop their insurance business, with a penetration rate of 21.6% on Personal Protection and 9.8% on Property/Casualty insurance.Average investment loan outstandings (including leases), largely bolstered by State Guaranteed Loans, rose 16.7% vs. Q2 19 to EUR 81.2 billion (+8.5% excluding State Guaranteed Loans). Average outstanding loans to individuals were up 7.4% at EUR 122.3 billion: after a sharp decline in consumer and housing loan production in April and May, production was strong from mid-May. As a result, average loan outstandings climbed 11.2% (+8.3% excluding PGE) vs. Q2 19 to EUR 216.0 billion.Average outstanding balance sheet deposits(1) were 11.3% higher than in Q2 19 at EUR 228.7 billion, still driven by sight deposits (+18.3% vs. Q2 19)(2). As a result, the average loan/deposit ratio stood at 94% in Q2 20 (stable vs. Q2 19).In this exceptional period, French Retail Banking is fully supporting the economy, accompanying individual, corporate and professional customers. The Group was extremely reactive in setting up the State Guaranteed Loan (PGE). As of July 24th, around 86,100 applications had been received for a total amount of EUR 19 billion at Group level.Net banking income excluding PEL/CELQ2 20: revenues (excluding PEL/CEL) totalled EUR 1,749 million, heavily impacted by the effects of the lockdown on customer activity (-13.5% vs. Q2 19; -10.8% excluding adjustment for tax related to commissions of EUR +61 million in Q2 19). Net interest income (excluding PEL/CEL) was 6.0% lower than in Q2 19 with, in particular, a significant increase in deposits adversely affecting the margin in a low interest rate environment. Commissions were 14% lower than in Q2 19 (-7.6% excluding adjustment tax related to commissions in Q2 19), driven by the sharp fall in service commissions (-11.6% excluding adjustment for tax related to commissions in Q2 19) against the backdrop of the lockdown, despite the increase in financial commissions (+8.1% vs. Q2 19). “Other revenues” were lower in Q2 (-71% vs. Q2 19) with, in particular, the impact of the non-payment of Crédit Logement dividends. H1 20: after a dynamic first few months, revenues were impacted by the effects of Covid-19 and the lockdown measures: revenues (excluding PEL/CEL) totalled EUR 3,654 million, down -7.5% vs. H1 19 and -6.0% excluding adjustment for tax related to commissions of EUR +61 million in H1 19. Net interest income (excluding PEL/CEL) was 2.4% lower than in H1 19. Commissions were down -8.4% vs. H1 19 (-5.0% excluding adjustment for tax related to commissions in H1 19), with the sharp fall in service commissions against the backdrop of the lockdown more than offsetting the strong increase in financial commissions. Operating expensesQ2 20: operating expenses were substantially lower at EUR 1,233 million (-8.5% vs. Q2 19), illustrating the Group’s work to reduce costs despite the increase in regulatory costs. The cost to income ratio (after linearisation of the IFRIC 21 charge and restated for the PEL/CEL provision) stood at 71.9%. H1 20: operating expenses were lower at EUR 2,683 million (-5.3% vs. H1 19). The cost to income ratio (after linearisation of the IFRIC 21 charge and restated for the PEL/CEL provision) stood at 71.6%.Cost of riskQ2 20: the commercial cost of risk amounted to EUR 442 million or 85 basis points, substantially higher than in Q2 19 (27bp) and Q1 20 (49bp). It includes EUR 266 million of S1/S2 (performing/underperforming loans) provisioning and EUR 176 million of S3 (non-performing loans) provisioning. The inclusion of new macro-economic scenarios in accordance with the application of IFRS 9 contributed EUR 179 million to S1/S2 provisioning. H1 20: the commercial cost of risk amounted to EUR 691 million or 68 basis points, substantially higher than in H1 19 (23bp).Net profits or losses from other assetsQ2 20: “Net profits or losses from other assets” amounted to EUR 5 million.H1 20: “Net profits or losses from other assets” amounted to EUR 136 million including a capital gain of EUR 130 million relating to the Group's property disposal programme carried out in Q1 2020.Contribution to Group net incomeQ2 20: the contribution to Group net income totalled EUR 60 million (-83.1% vs. Q2 19). RONE (after linearisation of the IFRIC 21 charge and restated for the PEL/CEL provision) stood at 1.4% in Q2 20 (vs. 12.6% in Q2 19).H1 20: the contribution to Group net income totalled EUR 279 million (-52.7% vs. H1 19). RONE (after linearisation of the IFRIC 21 charge and restated for the PEL/CEL provision) stood at 6.0% in H1 20 (vs. 11.5% in H1 19).4. INTERNATIONAL RETAIL BANKING & FINANCIAL SERVICESIn EURm Q2 20 Q2 19 Change H1 20 H1 19 Change 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%* Gross operating income 771 979 -21.2% -15.1%* 1,589 1,851 -14.2% -8.0%* Net cost of risk (418) (133) x 3.1 x 3.3* (647) (261) x 2.5 x 2.5* Operating income 353 846 -58.3% -54.8%* 942 1,590 -40.8% -36.1%* Net profits or losses from other assets (1) 0 n/s n/s 11 1 x 11.0 n/s Reported Group net income 226 515 -56.1% -51.6%* 591 979 -39.6% -33.7%* RONE 8.4% 18.6% 11.0% 17.3% Underlying RONE (1) 7.9% 18.9% 11.6% 18.2% (1) Adjusted for the linearisation of IFRIC 21 and the restructuring provision of EUR 29 million Q2 19. In International Retail Banking, outstanding loans totalled EUR 85.8 billion. They rose +3.2%* vs. end-June 2019 when adjusted for changes in Group structure and at constant exchange rates. They were down -6.4% at current structure and exchange rates, given the disposals finalised since June 2019 (SKB in Slovenia, Societe Generale Montenegro, Societe Generale Serbia, Mobiasbanca in Moldova, OBSG in Macedonia and Societe Generale de Banque aux Antilles). April and May were heavily impacted by the lockdown due to Covid-19, but there was a rebound in activity from June. Outstanding deposits climbed +7.1%* (-4.0% at current structure and exchange rates) vs. June 2019 to EUR 80.3 billion, with a healthy momentum in all regions. For the Europe scope, outstanding loans were up +3.2%* vs. Q2 19, at EUR 53.6 billion (-9.2% at current structure and exchange rates), driven by Western Europe (+3.7%) and the Czech Republic (+3.4%*, -1.6%). Outstanding deposits were up +5.4%* (-10.0% at current structure and exchange rates), with a healthy momentum in the Czech Republic (+6.7%*, +1.5%) and Romania (+4.9%*, +2.6%).In Russia, outstanding loans rose +1.6%* at constant exchange rates (-7.1% at current exchange rates) while outstanding deposits climbed +11.3%* (+3.5% at current exchange rates). In Africa, Mediterranean Basin and French Overseas Territories, activity remained generally buoyant, especially in Sub-Saharan Africa. Outstanding loans rose +4.0%* (or +1.5%) vs. Q2 19. Outstanding deposits enjoyed a strong momentum, up +8.2%* (+6.1%).In the Insurance business, the life insurance savings business saw outstandings increase +1.8%* vs. Q2 19. The share of unit-linked products in outstandings was 30% at end-June 2020, up 1.9 points vs. Q2 19. Protection insurance fell -3.2%* vs. Q2 19. The 6.1%* increase in Property/Casualty premiums was offset by a decline in personal Protection insurance (-8.5%* vs. Q2 19), where a rebound was observable from June. Financial Services to Corporates delivered a resilient commercial performance. Operational Vehicle Leasing and Fleet Management saw an increase in its vehicle fleet (+3.8% vs. the end-June 2019) to 1.76 million vehicles at end-June 2020. Equipment Finance’s outstanding loans were stable* vs. end-June 2019, at EUR 17.7 billion (excluding factoring).Net banking incomeNet banking income amounted to EUR 1,750 million in Q2 20, down -10.8%* (-17.6%) vs. Q2 19. Revenues totalled EUR 3,714 million in H1 20, down -4.7%* (-11.6%) vs. H1 19.In International Retail Banking, net banking income totalled EUR 1,157 million in Q2 20, down -8.9%* (-18.1%) vs. Q2 19, marked by a fall in commissions due to the reduced activity in the lockdown environment and the impact of the decline in rates on net interest margin in the Czech Republic, Romania and Russia. In Africa, Mediterranean Basin and French Overseas Territories, revenues include an impact of EUR -31 million related to repayment moratoriums in Tunisia. Net banking income amounted to EUR 2,450 million in H1 20, down -3.1%* excluding the structure and exchange rate effects (-12.5%) vs. H1 19.The Insurance business saw net banking income decrease by -7.1%* to EUR 211 million in Q2 20 (-7.9%), marked by a decline in financial margins in an unfavourable environment in the financial markets. When adjusted for the contribution to the Solidarity Fund in France, it was 4.7%* lower than in Q2 19. Net banking income fell -3.9%* (-4.3%) in H1 20, to EUR 440 million. Financial Services to Corporates’ net banking income was down -17.7%* (-20.9%) vs. Q2 19 at EUR 382 million. ALD revenues included EUR 30 million of additional impairments on residual values and EUR 9.6 million of impairments on used vehicles in Q2 20. When restated for these items, Financial Services to Corporates’ revenues were down -8.2%*. Financial Services to Corporates’ net banking income totalled EUR 824 million in H1 20, down -9.5%* (-12.4%) vs. H1 19.Operating expensesOperating expenses were down -7.0%* (-14.5%), at EUR -979 million, vs. Q2 19, which included a restructuring provision related to the simplification of the head office structure amounting to EUR 29 million. When restated for this provision, operating expenses were down -4.3%* vs. Q2 19, reflecting rigorous cost control. They fell -2.0%* (-9.5%) in the first six months, to EUR 2,125 million. The cost to income ratio stood at 55.9% in Q2 20 and 57.2% in H1 20. In International Retail Banking, operating expenses were down -2.9%* (-12.8%) vs. Q2 19 and were stable* (-9.7%) vs. H1 19.In the Insurance business, operating expenses rose +4.2%* (+3.7%) vs. Q2 19 to EUR 84 million and +4.0%* (+3.8%) vs. H1 19.In Financial Services to Corporates, operating expenses were down -8.6%* (-12.6%) vs. Q2 19 and -3.0%* (-7.1%) vs. H1 19.Cost of riskQ2 20: the commercial cost of risk amounted to 125 basis points (or EUR 418 million), vs. 38 basis points in Q2 19, which included net provision write-backs in the Czech Republic and Romania, and 67 basis points in Q1 20. The Q2 cost of risk includes EUR 144 million for the estimate of expected credit losses in Stage 1 and Stage 2, including EUR 135 million for the impact related to the review of macro-economic scenarios. H1 20: the cost of risk stood at 96 basis points (EUR 647 million). It was 39 basis points in H1 19.Contribution to Group net income The contribution to Group net income totalled EUR 226 million in Q2 20 (-56.1%* vs. Q2 19) and EUR 591 million in H1 20 (-39.6%* vs. H1 19). Underlying RONE stood at 7.9% in Q2 20, vs. 18.9% in Q2 19, and 11.6% in H1 20, vs. 18.2% in H1 19. 5. GLOBAL BANKING & INVESTOR SOLUTIONSIn 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%* Operating expenses (1,570) (1,915) -18.0% -18.2%* (3,547) (3,941) -10.0% -10.3%* Gross operating income 310 351 -11.7% -12.4%* (40) 564 n/s n/s Net cost of risk (419) (33) x 12.7 x 13.0* (761) (75) x 10.1 x 10.1* Operating income (109) 318 n/s n/s (801) 489 n/s n/s Reported Group net income (67) 274 n/s n/s (604) 414 n/s n/s RONE -1.9% 7.1% -8.6% 5.2% Underlying RONE (1) -3.3% 10.0% -6.2% 8.9% (1) Adjusted for the linearisation of IFRIC 21Finalisation of the strategic review of structured products in Global Markets The Group has finalised the strategic review carried out in Global Markets on structured products and has set three priorities: * Maintaining its global leadership role in equity structured products and remaining a major player in investment solutions * Reducing the risk profile on equity and credit structured products in order to decrease the sensitivity of Global Markets’ revenues to market dislocations. This refocusing will have an impact on revenues of between EUR -200 million and EUR -250 million * Improving the profitability of Global Markets by reducing the breakeven point through a net cost reduction of around EUR -450 million by 2022-2023.Net banking income Q2 20: Global Banking & Investor Solutions’ revenues were down -17.0% at EUR 1,880 million. H1 20: when adjusted for the impact of restructuring (activities in the process of being closed or scaled back) completed last year, the revaluation of SIX securities (EUR +66 million in H1) and the disposal of Private Banking in Belgium, net banking income was down -18.7% vs. H1 19 (and -22.2% on a reported basis). In Global Markets & Investor Services, net income banking totalled EUR 991 million, down -28.1% vs Q2 19 adjusted for restructuring. In H1 20, when adjusted for restructuring and the revaluation of SIX securities (EUR +34 million in Q1 19), revenues were down -30.8% vs. H1 19. Fixed Income & Currencies enjoyed an very good Q2, in all regions. When restated for the impact of restructuring, revenues amounted to EUR 700 million and were substantially higher (+38.1%) than in Q2 19. They were driven by the healthy commercial momentum, particularly in financing, and by the exceptional number of primary issues. Flow activities (rates and credit) and emerging market activities continued to benefit from favourable market conditions. The Americas region performed particularly well in Q2 20. In H1 20, revenues restated for restructuring were up +43.6% at EUR 1,309 million. Equity net banking income declined by -79.5% vs. Q2 19. In April and May, structured product activities continued to be impacted by the cancellation of dividend payments (loss of EUR 200 million), a still strong correlation and strict production constraints. These activities saw a gradual recovery from mid-May. Listed product revenues were significantly higher than in Q2 19, driven by flow investment solutions (notably due to EMC activities integration). This increase, combined with the strong performance of equity flow activities, was not enough to offset the losses recorded on structured products at the beginning of the quarter.Securities Services’ assets under custody amounted to EUR 4,238 billion at end-June 2020, up +3.1% vs. end-March 2020. Over the same period, assets under administration were up +3.5% at EUR 599 billion. Securities Services’ revenues totalled EUR 149 million in Q2 20, in line with Q1 20. They were down -16.8% vs. a strong Q2 19. Financing & Advisory revenues totalled EUR 657 million in Q2 20, up +2.0% vs. Q2 19. They amounted to EUR 1,286 million in H1 20, slightly lower (-1.1%) than in H1 19. Investment banking enjoyed an excellent quarter, driven by a record number of issues in the debt capital markets and buoyant acquisition financing activity. The Group therefore strengthens its leadership position in the European market. Financing activities proved resilient in this environment impacted by the crisis. New business remained stable. After a challenging Q1, the Asset Backed Products platform delivered a good performance in Q2, against the backdrop of a stabilisation in the market environment. Global Transaction and Payment Services proved resilient in light of the crisis and a significant decline in volumes.Asset and Wealth Management’s net banking income totalled EUR 232 million in Q2 20, slightly higher (+0.4%) than in Q2 19. In H1 20, when adjusted in Q1 19 for the revaluation of SIX securities (EUR +32 million) and for the disposal of Private Banking in Belgium, net banking income was 2.9% higher.Private Banking posted a robust performance in Q2 20, driven by good transactional revenues in France and positive net inflow. Net banking income amounted to EUR 187 million in Q2 20, up +6.9% vs. Q2 19 (and +6.3% vs. Q1 20). Assets under management increased by +2.4% vs. March 2020, to EUR 114 billion. Private Banking posted net inflow of EUR 1.5 billion in H1 20, driven by France. Net banking income amounted to EUR 363 million in H1 20, up +5.5% vs. H1 19, when adjusted for the disposal of Private Banking in Belgium and the revaluation of SIX securities. Lyxor posted a performance down -21.6% in Q2 20, impacted by the challenging market conditions. Lyxor’s assets under management totalled EUR 132 billion at end-June 2020, an increase of +5.1% vs. March 2020. Lyxor is the first provider to launch an ETF ecosystem to tackle climate change, which further strengthens its leadership status in the Green Bonds segment. Revenues were 5.3% lower in H1 20 than in H1 19, impacted by market effects on equity indices.Operating expenses Q2 20: when restated for the increase in the resolution fund (EUR +38 million) and the restructuring provision, recorded in Q2 19 for EUR 227 million, operating expenses were down -9.2% vs. Q2 19. H1 20: restated operating expenses were down -6.8%. Net cost of risk Q2 20: the commercial cost of risk amounted to 95 basis points (or EUR 419 million), vs. 87 basis points in Q1 20 and 8 basis points in Q2 19. The Q2 cost of risk includes EUR 240 million related to Stages 1 and 2 (with EUR 176 million related to the review of macro-economic scenarios on the estimate of credit losses) and EUR 178 million related to Stage 3. H1 20: the cost of risk amounted to 91 basis points (EUR 761 million). Contribution to Group net income The contribution to Group net income amounted to EUR -67 million in Q2 20 and to EUR -604 million in H1 20. Underlying RONE is negative on H1 20. 6. CORPORATE CENTRE In EURm Q2 20 Q2 19 H1 20 H1 19 Net banking income (88) (100) (389) (140) Operating expenses (78) 138 (183) 65 Gross operating income (166) 38 (572) (75) Net cost of risk \- (19) \- (19) Net profits or losses from other assets \- (81) (77) (134) Impairment losses on goodwill (684) \- (684) \- Income tax (598) 7 (450) 63 Reported Group net income (1,483) (91) (1,856) (243) The Corporate Centre includes: * the property management of the Group’s head office, * the Group’s equity portfolio, * the Treasury function for the Group, * certain costs related to cross-functional projects and certain costs incurred by the Group and not re-invoiced to the businesses.The Corporate Centre’s net banking income totalled EUR -88 million in Q2 20 vs. EUR -100 million in Q2 19 and EUR -389 million in H1 20 vs. EUR -140 million in H1 19.Operating expenses totalled EUR -78 million in Q2 20 vs. EUR +138 million in Q2 19, which included an operating tax adjustment for EUR +241 million. They amounted to EUR -183 million in H1 20 vs. EUR +65 million in H1 19.Gross operating income totalled EUR -166 million in Q2 20 vs. EUR +38 million in Q2 19 and EUR -572 million in H1 20 vs. EUR -75 million in H1 19.Net profits or losses from other assets was nil in Q2 20 and amounted to EUR -77 million in H1 20, related to the application of IFRS 5 as part of the implementation of the Group’s refocusing plan in Q1 20. The review of the financial trajectory of Global Markets & Investor Services resulted in the impairment of the associated goodwill for EUR -684 million and deferred tax assets for EUR -650 million. The Corporate Centre’s contribution to Group net income was EUR -1,483 million in Q2 20 vs. EUR -91 million in Q2 19 and EUR -1,856 million in H1 20 vs. EUR -243 million in H1 19. 7. CONCLUSION During H1 20, Societe Generale demonstrated its ability to absorb the impacts of the crisis due to the quality of its asset portfolio and the robustness of its balance sheet with, in particular, a capital level of 12.5%, or 350 basis points above the regulatory requirement.Drawing on this solid base, the Group will continue to adapt its activities to the new post-COVID crisis environment, particularly in structured products, as well as its efforts to reduce costs in 2020 and in the medium term, through structural initiatives.Accordingly, in 2020 the Group anticipates: * underlying costs of around EUR 16.5 billion, substantially lower than in 2019 (EUR 17.4 billion) * a cost of risk at the bottom of the range of between 70 to 100 basis points * a CET1 ratio at the top of the range of between 11.5% and 12.0% at end-2020Finally, Societe Generale is already preparing its 2021-2023 strategic plan based around its three priority objectives: * further improving its capacity to place the customer at the centre of its activities * ramping up our commitment in responsible finance to strengthen its leadership position * increasing operational efficiency with the support of digital technologies 8. 2020 FINANCIAL CALENDAR 2020 Financial communication calendar November 5th, 2020 Third quarter and nine-month 2020 results February 10th, 2021 Fourth quarter and FY 2020 results May 6th, 2021 First quarter 2021 results August 3rd, 2021 Second quarter and first half 2021 results November 4th, 2021 Third quarter and nine-month 2021 results The Alternative Performance Measures, notably the notions of net banking income for the pillars, operating expenses, IFRIC 21 adjustment, (commercial) cost of risk in basis points, ROE, ROTE, RONE, net assets, tangible net assets, and the amounts serving as a basis for the different restatements carried out (in particular the transition from published data to underlying data) are presented in the methodology notes, as are the principles for the presentation of prudential ratios. This document 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 in accordance with IFRS (International Financial Reporting Standards) as adopted in the European Union, as well as the application of existing prudential regulations. These forward-looking statements have also been developed from scenarios based on a number of economic assumptions in the context of a given competitive and regulatory environment. The Group may be unable to: \- anticipate all the risks, uncertainties or other factors likely to affect its business and to appraise their potential consequences; \- evaluate the extent to which the occurrence of a risk or a combination of risks could cause actual results to differ materially from those provided in this document and the related presentation. Therefore, although Societe Generale believes that these statements are based on reasonable assumptions, these forward-looking statements are subject to numerous risks and uncertainties, including matters not yet known to it or its management or not currently considered material, and there can be no assurance that anticipated events will occur or that the objectives set out will actually be achieved. Important factors that could cause actual results to differ materially from the results anticipated in the forward-looking statements include, among others, overall trends in general economic activity and in Societe Generale’s markets in particular, regulatory and prudential changes, and the success of Societe Generale’s strategic, operating and financial initiatives. More detailed information on the potential risks that could affect Societe Generale’s financial results can be found in the Universal Registration Document filed with the French Autorité des Marchés Financiers. Investors are advised to take into account factors of uncertainty and risk likely to impact the operations of the Group when considering the information contained in such forward-looking statements. Other than as required by applicable law, Societe Generale does not undertake any obligation to update or revise any forward-looking information or statements. Unless otherwise specified, the sources for the business rankings and market positions are internal. 9. APPENDIX 1: FINANCIAL DATA GROUP NET INCOME AFTER TAX BY CORE BUSINESS In EURm Q2 20 Q2 19 Change H1 20 H1 19 Change French Retail Banking 60 356 -83.1% 279 590 -52.7% International Retail Banking & Financial Services 226 515 -56.1% 591 979 -39.6% Global Banking & Investor Solutions (67) 274 n/s (604) 414 n/s Core Businesses 219 1,145 -80.9% 266 1,983 -86.6% Corporate Centre (1,483) (91) n/s (1,856) (243) n/s Group (1,264) 1,054 n/s (1,590) 1,740 n/s CONSOLIDATED BALANCE SHEET 30.06.2020 31.12.2019 Central banks 144,417 102,311 Financial assets at fair value through profit or loss 419,147 385,739 Hedging derivatives 21,845 16,837 Financial assets measured at fair value through other comprehensive income 55,606 53,256 Securities at amortised cost 14,877 12,489 Due from banks at amortised cost 55,292 56,366 Customer loans at amortised cost 458,500 450,244 Revaluation differences on portfolios hedged against interest rate risk 470 401 Investment of insurance activities 163,219 164,938 Tax assets 5,052 5,779 Other assets 77,196 68,045 Non-current assets held for sale 3,788 4,507 Investments accounted for using the equity method 106 112 Tangible and intangible assets 29,812 30,652 Goodwill 4,045 4,627 Total 1,453,372 1,356,303 30.06.2020 31.12.2019 Central banks 2,980 4,097 Financial liabilities at fair value through profit or loss 405,113 364,129 Hedging derivatives 12,705 10,212 Debt securities issued 136,261 125,168 Due to banks 121,542 107,929 Customer deposits 444,470 418,612 Revaluation differences on portfolios hedged against interest rate risk 8,629 6,671 Tax liabilities 1,239 1,409 Other liabilities 94,115 85,062 Non-current liabilities held for sale 928 1,333 Liabilities related to insurance activities contracts 140,701 144,259 Provisions 4,348 4,387 Subordinated debts 14,662 14,465 Total liabilities 1,387,693 1,287,733 SHAREHOLDERS' EQUITY Shareholders' equity, Group share Issued common stocks, equity instruments and capital reserves 30,115 31,102 Retained earnings 32,457 29,558 Net income (1,590) 3,248 Sub-total 60,982 63,908 Unrealised or deferred capital gains and losses (323) (381) Sub-total equity, Group share 60,659 63,527 Non-controlling interests 5,020 5,043 Total equity 65,679 68,570 Total 1,453,372 1,356,303 10\. APPENDIX 2: METHODOLOGY1 – The financial information presented in respect of Q2 and H1 2020 was examined by the Board of Directors on July 31st, 2020 and has been prepared in accordance with IFRS as adopted in the European Union and applicable at that date. The limited review procedures carried out by the Statutory Auditors are in progress on the condensed interim consolidated financial statements as at June 30th, 2020.2 – Net banking income The pillars’ net banking income is defined on page 43 of Societe Generale’s 2020 Universal Registration Document. The terms “Revenues” or “Net Banking Income” are used interchangeably. They provide a normalised measure of each pillar’s net banking income taking into account the normative capital mobilised for its activity.3 – Operating expenses Operating expenses correspond to the “Operating Expenses” as presented in note 8.1 to the Group’s consolidated financial statements as at December 31st, 2019 (pages 423 et seq. of Societe Generale’s 2020 Universal Registration Document). The term “costs” is also used to refer to Operating Expenses. The Cost/Income Ratio is defined on page 43 of Societe Generale’s 2020 Universal Registration Document. 4 - IFRIC 21 adjustment The IFRIC 21 adjustment corrects the result of the charges recognised in the accounts in their entirety when they are due (generating event) so as to recognise only the portion relating to the current quarter, i.e. a quarter of the total. It consists in smoothing the charge recognised accordingly over the financial year in order to provide a more economic idea of the costs actually attributable to the activity over the period analysed.5 – Exceptional items – Transition from accounting data to underlying dataIt may be necessary for the Group to present underlying indicators in order to facilitate the understanding of its actual performance. The transition from published data to underlying data is obtained by restating published data for exceptional items and the IFRIC 21 adjustment. Moreover, the Group restates the revenues and earnings of the French Retail Banking pillar for PEL/CEL provision allocations or write-backs. This adjustment makes it easier to identify the revenues and earnings relating to the pillar’s activity, by excluding the volatile component related to commitments specific to regulated savings.The reconciliation enabling the transition from published accounting data to underlying data is set out in the table below: Q2 20 (in EURm) Operating Expenses Net cost of risk Net profit or losses from other assets Impairment losses on goodwill Income Tax Group net income Business Reported (3,860) (1,279) 4 (684) (658) (1,264) (+) IFRIC 21 linearisation (124) 58 (62) (-) Goodwill impairment* (684) (684) Corporate Centre (-) DTA impairment* (650) (650) Corporate Centre Underlying (3,984) (1,279) 4 0 50 8 H1 20 (in EURm) Operating Expenses Net cost of risk Net profit or losses from other assets Impairment losses on goodwill Income Tax Group net income Business Reported (8,538) (2,099) 84 (684) (612) (1,590) (+) IFRIC 21 linearisation 353 (166) 179 (-) Group refocusing plan* (77) 0 (77) Corporate Centre (-) Goodwill impairment* (684) (684) Corporate Centre (-) DTA impairment* (650) (650) Corporate Centre Underlying (8,185) (2,099) 161 0 (128) 0 Q2 19 (in EURm) Operating Expenses Net cost of risk Net profit or losses from other assets Group net income Business Reported (4,270) (314) (80) 1,054 (+) IFRIC 21 linearisation (138) (101) (-) Restructuring provision* (256) (192) GBIS (EUR -227m) / IBFS (EUR -29m) (-) Group refocusing plan* (18) (84) (102) Corporate Centre Underlying (4,152) (296) 4 1,247 H1 19 (in EURm) Operating Expenses Net cost of risk Net profit or losses from other assets Group net income Business Reported (9,059) (578) (131) 1,740 (+) IFRIC 21 linearisation 303 222 (-) Restructuring provision* (256) (192) GBIS (EUR -227m) / IBFS (EUR -29m) (-) Group refocusing plan* (18) (137) (177) Corporate Centre Underlying (8,500) (560) 6 2,332 (*) exceptional item6 - Cost of risk in basis points, coverage ratio for doubtful outstandingsThe 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 the pillars as a percentage of balance sheet loan commitments, including operating leases. (In EUR m) Q2 20 Q2 19 H1 20 H1 19 French Retail Banking Net Cost Of Risk 442 129 691 223 Gross loan Outstandings 207,517 192,896 204,328 192,159 Cost of Risk in bp 85 27 68 23 International Retail Banking and Financial Services Net Cost Of Risk 418 133 647 261 Gross loan Outstandings 133,475 139,634 134,941 134,747 Cost of Risk in bp 125 38 96 39 Global Banking and Investor Solutions Net Cost Of Risk 419 33 761 75 Gross loan Outstandings 175,673 164,162 166,868 164,512 Cost of Risk in bp 95 8 91 9 Corporate Centre Net Cost Of Risk 0 19 0 19 Gross loan Outstandings 10,292 8,705 10,001 8,977 Cost of Risk in bp 3 86 3 42 Societe Generale Group Net Cost Of Risk 1,279 314 2,099 578 Gross loan Outstandings 526,958 505,397 516,138 500,395 Cost of Risk in bp 97 25 81 23 The gross coverage ratio for doubtful outstandings is calculated as the ratio of provisions recognised in respect of the credit risk to gross outstandings identified as in default within the meaning of the regulations, without taking account of any guarantees provided. This coverage ratio measures the maximum residual risk associated with outstandings in default (“doubtful”). 7 - ROE, ROTE, RONEThe notions of ROE (Return on Equity) and ROTE (Return on Tangible Equity), as well as their calculation methodology, are specified on page 45 and 46 of Societe Generale’s 2020 Universal Registration Document. This measure makes it possible to assess Societe Generale’s return on equity and return on tangible equity. RONE (Return on Normative Equity) determines the return on average normative equity allocated to the Group’s businesses, according to the principles presented on page 46 of Societe Generale’s 2020 Universal Registration Document. Group net income used for the ratio numerator is book Group net income adjusted for “interest net of tax payable on deeply subordinated notes and undated subordinated notes, interest paid to holders of deeply subordinated notes and undated subordinated notes, issue premium amortisations” and “unrealised gains/losses booked under shareholders’ equity, excluding conversion reserves” (see methodology note No. 9). For ROTE, income is also restated for goodwill impairment. Details of the corrections made to book equity in order to calculate ROE and ROTE for the period are given in the table below:ROTE calculation: calculation methodologyEnd of period Q2 20 Q2 19 H1 20 H1 19 Shareholders' equity Group share 60,659 62,492 60,659 62,492 Deeply subordinated notes (8,159) (9,861) (8,159) (9,861) Undated subordinated notes (283) (280) (283) (280) Interest net of tax payable to holders of deeply subordinated notes & undated subordinated notes, interest paid to holders of deeply subordinated notes & undated subordinated notes, issue premium amortisations 20 (39) 20 (39) OCI excluding conversion reserves (834) (636) (834) (636) Dividend provision (717) (717) ROE equity end-of-period 51,403 50,959 51,403 50,959 Average ROE equity 52,388 50,250 52,830 49,842 Average Goodwill (4,270) (4,541) (4,416) (4,619) Average Intangible Assets (2,417) (2,194) (2,393) (2,194) Average ROTE equity 45,701 43,515 46,021 43,029 Group net Income (a) (1,264) 1,054 (1,590) 1,740 Underlying Group net income (b) 8 1,247 0 2,332 Interest on deeply subordinated notes and undated subordinated notes (c) (161) (192) (320) (357) Cancellation of goodwill impairment (d) 684 41 684 108 Ajusted Group net Income (e) = (a)+ (c)+(d) (741) 903 (1,227) 1,491 Ajusted Underlying Group net Income (f)=(b)+(c) (153) 1,056 (321) 1,975 Average ROTE equity (g) 45,701 43,515 46,021 43,029 ROTE [quarter: (4*e/g), 6M: (2*e/g)] -6.5% 8.3% -5.3% 6.9% Average ROTE equity (underlying) (h) 46,973 43,612 47,611 43,325 Underlying ROTE [quarter: (4*f/h), 6M: (2*f/h)] -1.3% 9.7% -1.3% 9.1% RONE calculation: Average capital allocated to Core Businesses (in EURm)In EURm T2-20 T2-19 Variation S1-20 S1-19 Variation French Retail Banking 11,460 11,306 +1.4% 11,321 11,281 +0.4% International Retail Banking & Financial Services 10,820 11,051 -2.1% 10,708 11,336 -5.5% Global Banking & Investor Solutions 14,453 15,543 -7.0% 14,024 16,064 -12.7% Core Businesses 36,733 37,900 -3.1% 36,053 38,681 -6.8% Corporate Centre 15,655 12,350 +26.8% 16,777 11,162 +50.3% Group 52,388 50,250 +4.3% 52,830 49,842 +6.0% 8 - Net assets and tangible net assetsNet assets and tangible net assets are defined in the methodology, page 48 of the Group’s 2020 Universal Registration Document. The items used to calculate them are presented below:End of period H1 20 Q1 20 2019 H1 19 Shareholders' equity Group share 60,659 62,580 63,527 62,492 Deeply subordinated notes (8,159) (8,258) (9,501) (9,861) Undated subordinated notes (283) (288) (283) (280) Interest, net of tax, payable to holders of deeply subordinated notes & undated subordinated notes, interest paid to holders of deeply subordinated notes & undated subordinated notes, issue premium amortisations 20 1 4 (39) Bookvalue of own shares in trading portfolio 335 381 375 431 Net Asset Value 52,572 54,416 54,122 52,743 Goodwill (3,928) (4,611) (4,510) (4,548) Intangible Assets (2,458) (2,376) (2,362) (2,226) Net Tangible Asset Value 46,186 47,429 47,250 45,969 Number of shares used to calculate NAPS** 851,133 851,133 849,665 844,026 Net Asset Value per Share 61.8 63.9 63.7 62.5 Net Tangible Asset Value per Share 54.3 55.7 55.6 54.5 ** The number of shares considered is the number of ordinary shares outstanding as at June 30th, 2020, excluding treasury shares and buybacks, but including the trading shares held by the Group. In accordance with IAS 33, historical data per share prior to the date of detachment of a preferential subscription right are restated by the adjustment coefficient for the transaction. 9 - Calculation of Earnings Per Share (EPS)The EPS published by Societe Generale is calculated according to the rules defined by the IAS 33 standard (see page 47 of Societe Generale’s 2020 Universal Registration Document). The corrections made to Group net income in order to calculate EPS correspond to the restatements carried out for the calculation of ROE and ROTE. As specified on page 47 of Societe Generale’s 2020 Universal Registration Document, the Group also publishes EPS adjusted for the impact of non-economic and exceptional items presented in methodology note No. 5 (underlying EPS). The calculation of Earnings Per Share is described in the following table:Average number of shares (thousands) H1 20 Q1 20 2019 H1 19 Existing shares 853,371 853,371 834,062 821,189 Deductions Shares allocated to cover stock option plans and free shares awarded to staff 2,728 2,972 4,011 4,214 Other own shares and treasury shares 149 249 Number of shares used to calculate EPS** 850,643 850,399 829,902 816,726 Group net Income (1,590) (326) 3,248 1,740 Interest on deeply subordinated notes and undated subordinated notes (320) (159) (715) (357) Capital gain net of tax on partial buybacks Adjusted Group net income (1,910) (485) 2,533 1,383 EPS (in EUR) -2.25 -0.57 3.05 1.69 Underlying EPS* (in EUR) -0.38 -0.07 4.03 * Excluding exceptional items and including linearisation of the IFRIC 21 effect. ** The number of shares considered is the number of ordinary shares outstanding as at June 30th, 2020, excluding treasury shares and buybacks, but including the trading shares held by the Group. 10 - The Societe Generale Group’s Common Equity Tier 1 capital is calculated in accordance with applicable CRR/CRD4 rules. The fully-loaded solvency ratios are presented pro forma for current earnings, net of dividends, for the current financial year, unless specified otherwise. When there is reference to phased-in ratios, these do not include the earnings for the current financial year, unless specified otherwise. The leverage ratio is calculated according to applicable CRR/CRD4 rules including the provisions of the delegated act of October 2014. Table of the change in the CET1 ratio in the quarterIn bp CET1 as at 31/3/2020 12.6% Own funds evolution -7bp Organic RWAs change* of which -15bp RWAs of businesses +2bp Non-guaranteed part of State-Guaranteed loans -4bp Rating migration -8bp Corporates credit line drawdowns -5bp SME supporting factor +14bp Effect of waiting period on State-guaranteed loans (based on an assumption of a final loan guarantee rate of approximately 90%) -27bp Quick fix BCE Of which +12bp VaR/sVaR multiplicator +7bp PVA transitional provision +5bp CET1 as at 30/06/2020 12.3% Phasing IFRS 9 +20bp CET1 as at 30/06/2020 including IFRS9 phasing 12,5% NB (1) The sum of values contained in the tables and analyses may differ slightly from the total reported due to rounding rules. (2) All the information on the results for the period (notably: press release, downloadable data, presentation slides and supplement) is available on Societe Generale’s website www.societegenerale.com in the “Investor” section.Societe GeneraleSociete Generale is one of the leading European financial services groups. Based on a diversified and integrated banking model, the Group combines financial strength and proven expertise in innovation with a strategy of sustainable growth. Committed to the positive transformations of the world’s societies and economies, Societe Generale and its teams seek to build, day after day, together with its clients, a better and sustainable future through responsible and innovative financial solutions. Active in the real economy for over 150 years, with a solid position in Europe and connected to the rest of the world, Societe Generale has over 138,000 members of staff in 62 countries and supports on a daily basis 29 million individual clients, businesses and institutional investors around the world by offering a wide range of advisory services and tailored financial solutions. The Group is built on three complementary core businesses: ▪ French Retail Banking which encompasses the Societe Generale, Crédit du Nord and Boursorama brands. Each offers a full range of financial services with omnichannel products at the cutting edge of digital innovation; ▪ International Retail Banking, Insurance and Financial Services to Corporates, with networks in Africa, Russia, Central and Eastern Europe and specialised businesses that are leaders in their markets; ▪ Global Banking and Investor Solutions, which offers recognised expertise, key international locations and integrated solutions.Societe Generale is included in the principal socially responsible investment indices: DJSI (World and Europe), FTSE4Good (Global and Europe), Euronext Vigeo (World, Europe and Eurozone), four of the STOXX ESG Leaders indices, and the MSCI Low Carbon Leaders Index. For more information, you can follow us on Twitter @societegenerale or visit our website www.societegenerale.com* * * The footnote * in this document corresponds to data adjusted for changes in Group structure and at constant exchange rates () including 20 basis points for IFRS9 phasing() pro-forma for the announced disposal of SG Finans (+10 basis points)() quarterly average(1) NPL ratio calculated according to the new EBA methodology(2) Ratio between the amount of provisions on doubtful outstandings and the amount of these same outstandings(1) Adjusted for exceptional items and the linearisation of IFRIC 21(1) Including 2.5% of senior preferred debt (2) Total Liabilities and Own Funds(3)4.4% including the “quick fix” in respect of the exclusion of deposits with central banks announced by the ECB at end-June, not yet applicable (estimation based on deposits with the ECB only)(1) Including BMTN (negotiable medium-term notes)(2) Including currency deposits Attachment * Societe Generale_Press Release Q2-2020
Over half of Europe’s 30 biggest banks have now reported half year results and set aside £30.4bn between them to cover future losses.
(Bloomberg) -- Societe Generale SA is closing its trade commodity finance unit in Singapore after the collapse of Hin Leong Trading (Pte) Ltd. prompted the bank to halt fresh funding to such firms in the region.The bank is dismissing all front office staff dealing with transactions, while still keeping some administrative workers, people with knowledge of the matter said, asking not to be named because the matter is private. Large Asian commodities trading clients with operations in Singapore will now be handled by Hong Kong, the people said. SocGen is cutting ties with Singapore-based small and medium commodities trading firms.Earlier this year, SocGen was among more than 20 Singaporean and international banks owed $3.8 billion by oil trader Hin Leong, which filed for creditor protection after crude prices crashed. The French bank, which was owed $240 million by the firm, later decided to freeze the allocation of new funds to oil traders in Asia Pacific.“Natural resources financing is one of Societe Generale’s core expertise,” the bank said in an emailed statement on Friday. “The bank is and will remain committed to the Trade Commodity Finance sector, including in Asia. Societe Generale continuously adapts its set up to better serve its global and local clients and leverages its presence and strengths in Asia to bring proximity and appropriate solutions to its clients.”SocGen posted a surprise first quarter loss as the bank’s investment banking unit set aside 342 million euros ($372 million) for risky assets in the period, in part related to two fraud-related charges. SocGen didn’t identify the cases but said it may have to provision more over the remainder of the year.Recent Fraud Cases in Oil Trading:Plummeting oil prices and rising bankruptcies are forcing French lenders to review their trade commodities financing activities. Earlier this month, Natixis SA said it was merging its infrastructure and commodities operations, in a move planned before the coronavirus crisis, but which was accelerated in recent months.Banks were already pulling back from commodities in Asia before the chaos triggered by coronavirus. Over the past few years the industry has been rocked by a number of high-profile collapses and scandals, including multi-million dollar losses by some major Chinese and Japanese traders, and the spectacular downfall of Noble Group, one of the biggest names in the industry.Trade finance is the lifeblood for the global commodity trading industry, which needs access to hundreds of billions of dollars to fund the buying, blending, storing and transporting of raw materials. Without access to short-term credit, traders’ businesses would all but collapse.HSBC Holdings Plc, the biggest bank creditor to Hin Leong, said it booked substantial loan loss provisions from an exposure to oil traders that amounted to $2 billion in the first quarter. Dutch lender ABN Amro is the second largest creditor after HSBC, according to a draft copy of Hin Leong’s presentation for bank creditors earlier this year seen by Bloomberg News.(Adds table on recent fraud cases after 5th paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
France's Societe Generale <SOGN.PA> signed a new five-year distribution agreement with asset manager Amundi and said it would open up its retail and insurance networks to more asset managers. Many banks in Europe have moved to a so-called open architecture where they offer investment funds of several asset managers. "This partnership heralds a new stage in our strategy around the supply of investment solutions as we work to create open architecture solutions that our retail networks can offer our clients," SocGen's chief executive Frederic Oudea said in a statement.
(Bloomberg) -- Silver futures are latching on to gold’s rally, climbing above $20 an ounce to the highest since 2016 on rising haven demand and concerns about supply of the white metal.Gold and silver have surged this year as the coronavirus pandemic roiled the global economy, spurring sustained demand for havens even as some lockdowns were eased. The outbreak has yet to be brought under control in many countries including the U.S., bolstering the case for holding the metals.Silver, which just completed its best quarter since 2010, is getting an extra boost from concerns about supply and bets on increased industrial demand for the metal, used in solar panels and other manufactured products. Of 275 disrupted mining operations globally, the most affected were gold and silver mines, according to S&P Global Market Intelligence. In Latin America, where much of the world’s silver is produced, the pandemic has worsened, with Mexico recently overtaking Italy in the number of virus-related deaths.“Silver will continue to be pulled higher by the strong gold price and supportive financial conditions,” Morgan Stanley said in a second-half outlook that listed silver as its No. 2 pick, after copper. “As real demand also recovers through the second half of the year, this will add further impetus to silver’s price, narrowing the gold-silver price ratio slightly.”Silver futures for September delivery advanced as much as 2.7% to $20.30 an ounce on the Comex in New York on Monday, and settled at $20.192 at 1:27 p.m. Most-active prices surged 32% in the three months through June.Silver futures have climbed more than 40% since the end of the first quarter, surpassing the 14% gain for gold futures during that time. On Monday, gold for August delivery climbed 0.4% to $1,817.40 an ounce.As silver prices have rallied, investors have been piling into exchange-traded funds backed by the metal, echoing a trend seen in gold. Global silver-backed ETF holdings rose 21% in the second quarter, and hit a record this month.On Monday, it took about 92 ounces of spot silver to buy one ounce of spot gold. While that’s well below levels of more than 120 seen in March, it remains higher than the average of about 69 over the past decade. Some analysts said that suggests further gains may be in store for silver.“Silver is currently trading at close to a record discount to gold, which should attract demand,” Goldman Sachs Group Inc. said in a note this month. “Silver often tends to lag gold at the beginning of a precious rally, and catch up to it as the rally continues and investors look for ways to diversify.”During the week through Tuesday, hedge funds and other money managers added to their bullish bets on silver, boosting net-long positions to the highest since late February, according to government data Friday. That amounted to “a larger-than-usual” $638 million bullish flow spurred by the trifecta of rising haven demand, recovering industrial activity, particularly in China, and South American supply disruptions, according to Societe Generale SA analysts including Michael Haigh.Green StimulusUnlike gold, silver’s price is largely driven by a host of manufacturing applications. Morgan Stanley estimated that industrial demand makes up 85% of silver demand. The metal may be poised to benefit from a push toward less-polluting energy technologies such as solar power, according to BMO Capital Markets.With eyes on recovering industrial demand in countries including China, the world’s largest consumer of industrial commodities, some investors may be buying silver as a bet on new technology. U.S. Democratic presidential nominee Joe Biden outlined a goal last week of “a carbon pollution-free power sector by 2035” -- a move that would require rapid acceleration in the deployment of renewable wind and solar power as well as electricity storage, while continuing to rely on emission-free nuclear power.“Silver-intensive areas such as 5G and solar technology could well benefit from any fiscal impulse,” BMO analysts including Colin Hamilton said in a research note. “More than $50 billion of green stimulus has been approved by governments thus far this year, over which roughly three-quarters has been in Europe. But perhaps more impactful has been the recent Biden campaign Clean Energy plan, most notably a zero-carbon power grid by 2035 which would see new wind and solar capacity built to displace thermal generation.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Name of issuer: Société Générale S.A. – French public limited company (“SA”) with a share capital of 1,066,714,367.50 euros Registered under nr.552 120 222 R.C.S. PARIS Registered office: 29, Boulevard Haussmann, 75009 ParisInformation about the total number of voting rights and shares pursuant to Article L.233-8 II of the French Commercial Code and Article 223-16 of the AMF General Regulations DateNumber of shares composing current share capitalTotal number of voting rights 30th June 2020853,371,494 Gross: 923,206,837 Attachment * Societe Generale shares & voting rights as of 30-06-2020
Paris La Défense, 02 July 2020 Half-year statement and information about the number of executed transactions and the exchanged volume regarding the liquidity agreement of Societe GeneraleUnder the liquidity agreement signed between Société Générale and Rothschild Martin Maurel, the following assets were held by the liquidity account as of 30 June 2020: ·33,500 shares ·3,950,544.00 €As a reminder, on the last half-year liquidity contract statement as of 31 December 2019, the following assets were allocated to the liquidity account: ·0 share ·4,976,456.00 €The following information presents the number of transactions executed on purchases and sales, as well as the volume exchanged on purchases and sales in shares number and in capital from 1st January to 30st June 2020 within the framework of the liquidity agreement signed between Société Générale and Rothschild Martin Maurel.DATENUMBER OF PURCHASE TRANSACTIONSNUMBER OF SALE TRANSACTIONSQUANTITY OF PURCHASEQUANTITY OF SALETOTAL PURCHASED AMOUNTTOTAL SOLD AMOUNT 02/01/2020663 0003 00094 520,0094 640,00 03/01/2020513112 50012 500390 480,50391 467,51 06/01/2020603513 50013 500415 077,50416 292,50 07/01/20201250050015 575,0015 600,00 08/01/202021195 0015 001156 912,26157 439,90 09/01/2020773219 00013 000604 750,03414 577,50 10/01/2020702019 50012 500615 835,01395 569,95 13/01/20202746 5002 000203 537,5063 070,00 14/01/2020246610 00020 500312 507,52644 938,03 15/01/202049011 0000341 530,000 16/01/20202707 5000230 037,510 17/01/202034317 00010 500214 397,57324 725,00 20/01/2020311 0001 00030 405,0030 650,00 21/01/202013133 5005 000106 334,33152 792,50 22/01/20201504 0000120 897,500 23/01/2020753 0001 50090 395,0045 810,00 24/01/202034819 50017 500288 042,50535 807,42 27/01/20201702 000059 472,500 28/01/2020641 0001 50029 590,0145 020,00 29/01/20206112 5002 50074 655,0075 165,00 30/01/2020402 000058 815,000 31/01/20201202 500073 182,500 01/2020564361146 001122 0014 526 949,743 803 565,31 03/02/2020501 000029 285,020 04/02/202001604 7500141 080,00 05/02/2020069020 2500611 300,01 06/02/202015216 0006 000183 340,00184 000,52 07/02/2020612811 00011 000333 073,65334 622,50 10/02/20203589 5003 000288 760,0191 650,00 11/02/202011313 0009 50090 867,51288 985,00 12/02/20204134 0004 000125 830,00125 900,00 DATENUMBER OF PURCHASE TRANSACTIONSNUMBER OF SALE TRANSACTIONSQUANTITY OF PURCHASEQUANTITY OF SALETOTAL PURCHASED AMOUNTTOTAL SOLD AMOUNT 13/02/2020842 5002 50078 375,0078 550,00 14/02/202021166 0003 500191 022,50111 630,00 17/02/20200902 500079 915,00 18/02/202027138 0004 000255 262,51127 960,00 19/02/202018106 0006 000190 822,51191 842,50 20/02/202040119 0002 000283 861,5463 640,00 21/02/2020341710 5006 500324 392,50202 167,96 24/02/202030012 5000376 350,010 25/02/20202206 0000175 592,500 02/202033126695 00085 5002 926 835,262 633 243,49 Total S1/2020895627241 001207 5017 453 785,006 436 808,80 Due to the market environment linked to the health crisis, all operations within the liquidity agreement were suspended as of 26 February 2020.Attachment * Societe Generale_ Liquidity agreement
The startup had previously raised €10.8 million ($12.2 million) in total from Daphni, Kima Ventures, XAnge and various business angels. If you’re not familiar with Shine, the startup has been building a challenger bank for freelancers and small companies in France. When it comes to receipts, you can also open a card transaction and attach a receipt to that transaction.
The U.S. broker-dealer unit of France's Societe Generale has agreed to pay $3.1 million to settle charges of providing deficient data to U.S. regulators, statements from American authorities said on Wednesday. SG Americas made numerous deficient submissions in key trading information known as "blue sheet data" for more than five years, the U.S. Securities and Exchange Commission (SEC) said. The failures were largely due to undetected coding errors, resulting in missing or incorrect data for approximately 27.6 million transactions, the SEC said.
Societe Generale's Australian securities business faces restrictions on new customers if it does not comply with new licensing conditions related to client money laws, Australia's corporate regulator said on Monday. The Australian Securities and Investments Commission (ASIC) imposed the new conditions on the financial services licence of the Societe Generale business after charging it with criminal offences in March over alleged failure to separate clients' money in authorised bank accounts. If Societe Generale Securities Australia does not comply with the new conditions, the unit would need to refrain from charging brokerage fees for futures transactions involving client money and would have to stop taking on new customers if it involved receipt of client money, the watchdog said on Monday.
Name of issuer: Société Générale S.A. – French public limited company (“SA”) with a share capital of 1,066,714,367.50 euros Registered under nr.552 120 222 R.C.S. PARIS Registered office: 29, Boulevard Haussmann, 75009 ParisInformation about the total number of voting rights and shares pursuant to Article L.233-8 II of the French Commercial Code and Article 223-16 of the AMF General Regulations DateNumber of shares composing current share capitalTotal number of voting rights 31st May 2020853,371,494 Gross: 923,243,791 Attachment * Societe Generale shares & voting rights as of 31-05-2020
A U.S. judge on Thursday said institutional investors, including BlackRock Inc <BLK.N> and Allianz SE's <ALVG.DE> Pacific Investment Management Co, can pursue much of their lawsuit accusing 15 major banks of rigging prices in the $6.6 trillion-a-day foreign exchange market. U.S. District Judge Lorna Schofield in Manhattan said the nearly 1,300 plaintiffs, including many mutual funds and exchange-traded funds, plausibly alleged that the banks conspired to rig currency benchmarks from 2003 to 2013 and profit at their expense. "This is an injury of the type the antitrust laws were intended to prevent," Schofield wrote in a 40-page decision.
ANNUAL GENERAL MEETING AND BOARD OF DIRECTORS DATED 19 MAY 2020 Regulated informationParis, 19 May 2020Annual General MeetingThe combined General Meeting of shareholders of Societe Generale was held on 19 May 2020 at Tours Société Générale - 17 Cours Valmy - La Défense 7, without shareholders or other authorized participants being physically present and was chaired by Mr Lorenzo Bini Smaghi.Quorum was established at 62.757% (vs. 54.51% in 2019): * 18,643 shareholders voted online; * 10,254 shareholders voted by post; * 9,337 shareholders, including 8,609 online, representing 0.54 % of the share capital, gave proxy to the Chairman; * 20,055 shareholders were present or represented.All the resolutions put forward by the Board of Directors were adopted, in particular: * The 2019 annual and consolidated accounts; * The renewal of one director for 4 years: Mr Juan Maria Nin Génova; * The appointment of a director for 4 year: Mrs Annette Messemer; * The compensation policy for the Chairman, Chief Executive Officers and the directors; * The components composing the total compensation and the benefits of any kind paid or awarded for the 2019 financial year to the Chairman and the Chief Executive Officers; * The share capital increase authorisations, in particular the one allowing the issuance of shares in favour of employees as part of a company or group employee savings plan, as well as the authorisation to allocate performance shares existing or to be issued, were renewed for 26 months; * The new rules regarding the crossing of statutory thresholds; * The modification of the by-laws in connection with the appointment of a director representing the employees shareholders at the board of directors as the General Assembly 2021; and * The modification of the by-laws in connection with taking into consideration by the Board of directors of the social and environmental stakes of the activity of the Company. The detailed result of the votes is available this day on the Company's website under the section “Annual General Meeting”.Board of DirectorsFollowing the General Meeting, the Board of Directors comprising 14 members is composed as follows: * Mr Lorenzo Bini Smaghi, Chairman; * Mr Frédéric Oudéa, Chief Executive Officer and Director; * Mr William Connelly, Director; * Mr Jérôme Contamine, Director; * Mrs Diane Côté, Director; * Mrs Kyra Hazou, Director; * Mrs France Houssaye, Director elected by employees; * Mr David Leroux, Director elected by employees; * Mr Jean-Bernard Lévy, Director; * Mr Gérard Mestrallet, Director; * Mr Juan Maria Nin Genova, Director; * Mrs Annette Messemer, Director; * Mrs Lubomira Rochet, Director and * Mrs Alexandra Schaapveld, Director.42.9% of Board of Directors’ members are women including 5 women appointed by the General Meeting (41.6%). The rate of independent Directors is higher than 90% (11/12) according to the calculation method of the AFEP-MEDEF corporate governance Code.The Board of Directors also decided that the committees will be composed as follows from 20 May 2020: * Audit and Internal Control Committee: Mrs Alexandra Schaapveld (chairwoman), Mr Jérôme Contamine, Mrs Diane Côté, Mrs Kyra Hazou and Mrs Annette Messemer; * Risk Committee: Mr William Connelly (chairman), Mrs Kyra Hazou, Mrs Annette Messemer, Mr Juan Maria Nin Génova and Mrs Alexandra Schaapveld; * Compensation Committee: Mr Jean Bernard Lévy (chairman), Mr Jérôme Contamine, Mrs France Houssaye, Mr Gérard Mestrallet and Mr Juan Maria Nin Génova; * Nomination and Corporate Governance Committee: Mr Gérard Mestrallet (chairman), Mr William Connelly, Mr Jean Bernard Lévy and Mrs Lubomira Rochet.BiosMrs Annette Messemer, a German national, with a Ph.D in Political Sciences from the University of Bonn (Germany), a Master in International Economics from the Fletcher School at Tufts University (USA) and a degree from SciencesPo Paris. Started her career in investment banking at J.P. Morgan in New York in 1994 then in Frankfurt and London. During the 12 years of her career at J.P. Morgan, she gained extensive experience in finance, leading strategic M&A and financing transactions as well as risk management transactions. She left J.P. Morgan as Senior Banker in 2006 to join Merrill Lynch as Managing Director and member of the German Executive Committee. In 2010, she accepted the nomination to the Supervisory Board of WestLB by the German Ministry of Finance, to support one of the most significant German bank restructurings during the financial crisis before joining Commerzbank in 2013, where she held the position of Group Executive/Divisional Board Member, Corporate Clients until June 2018.Juan Maria Nin Génova, a Spanish national and graduate of the University of Deusto (Spain) and the London School of Economics and Political Sciences (United Kingdom), he is a lawyer and economist who began his career as a Programme Manager in the Spanish Ministry for Relations with the European Community. General Manager of Santander Central Hispano from 1980 to 2002, before becoming an advisor of Banco Sabadell until 2007. In June 2007, Chief Executive Officer of La Caixa. In July 2011, Vice-Chairman and Deputy Advisor of CaixaBank until 2014.Press contact:Corentin Henry _ 01 58 98 01 75_ email@example.comSociete GeneraleSociete Generale is one of the leading European financial services groups. Based on a diversified and integrated banking model, the Group combines financial strength and proven expertise in innovation with a strategy of sustainable growth. Committed to the positive transformations of the world’s societies and economies, Societe Generale and its teams seek to build, day after day, together with its clients, a better and sustainable future through responsible and innovative financial solutions.Active in the real economy for over 150 years, with a solid position in Europe and connected to the rest of the world, Societe Generale has over 138,000 members of staff in 62 countries and supports on a daily basis 29 million individual clients, businesses and institutional investors around the world by offering a wide range of advisory services and tailored financial solutions. The Group is built on three complementary core businesses: * French Retail Banking which encompasses the Societe Generale, Crédit du Nord and Boursorama brands. Each offers a full range of financial services with omnichannel products at the cutting edge of digital innovation; * International Retail Banking, Insurance and Financial Services to Corporates, with networks in Africa, Russia, Central and Eastern Europe and specialised businesses that are leaders in their markets; * Global Banking and Investor Solutions, which offers recognised expertise, key international locations and integrated solutions.Societe Generale is included in the principal socially responsible investment indices: DJSI (World and Europe), FTSE4Good (Global and Europe), Euronext Vigeo (World, Europe and Eurozone), four of the STOXX ESG Leaders indices, and the MSCI Low Carbon Leaders Index. For more information, you can follow us on Twitter @societegenerale or visit our website www.societegenerale.comAttachment * Annual General meeting and Board of directors dated 19 May 2020
Societe Generale <SOGN.PA> will adapt its business to the conditions created by the coronavirus crisis and to ensure it changes the market view on the French bank's financial path, its Chief Executive Frederic Oudea said. "The share price absolutely does not reflect the intrinsic value of our assets and we will be working hard in the coming quarters to show the market that it is too pessimistic," the bank said in a written response to a shareholder's question. "Our priority is to provide, quarter after quarter, the right responses to adapt our businesses to the new context created by the crisis," Oudea said during SocGen's annual meeting, which it held online because of the pandemic.
A banking lobby group called on Tuesday for the European Union to further soften a capital measure to ensure banks do not run out of headroom to help companies hit by the coronavirus crisis. The Association for Financial Markets in Europe (AFME) said the European Central Bank (ECB) has estimated that such measures will free up 120 billion euros ($131 billion) to support 1.8 trillion euros of additional lending. "The question is are these changes going to be sufficient to furnish banks with enough capacity to provide the support to their customers that is going to be needed in the coming downturn, let alone the recovery?" Michael Lever, head of prudential regulation at AFME, said in a blog post.
China presented a mixed picture of its recovery on Friday as it reported industrial production and retail sales data for April. Industrial production increased 3.9% year-on-year, beating analyst forecasts of a 1.5% increase prepared by Investing.com. Meanwhile, retail sales slumped 7.5% year-on-year, against predictions of a 7% decrease.
DESCRIPTION OF THE SHARE BUYBACK PROGRAMME SUBJECT TO THE AUTORISATION OF THE COMBINED GENERAL MEETING DATED 19 MAY 2020 Regulated information13 May 2019This description is drawn up in accordance with the provisions of Articles 241-1 and 241-2 I of the General Regulation of the French Financial Markets Authority (Autorité des marchés financiers).1\. Date of the General Meeting called to authorise the share buyback programmeThe authorisation for the Company to buy its own shares will be proposed to the combined General Meeting dated 19 May 2020.2\. Breakdown by objectives of the securities heldAs at 11 May 2020, the allocation of the shares held directly is as follows:Cancellation0 Allocation to employees and company officers2,238,415 Exercise of rights attached to securities0 External growth0 Liquidity agreement33,500 3\. Purposes of the share buyback programmeSociete Generale contemplates renewing its authorisation to buy its own shares so it can: * grant, cover and honour any free shares allocation plan, employee savings plan and any form of allocation for the benefit of employees and executive officers of the Company or affiliated companies under the conditions defined by the applicable legal and regulatory provisions; * cancel them, in accordance with the terms of the authorisation of the combined General Meeting in its 26th resolution; * deliver shares upon the exercise of rights attached to securities giving access to the Company’s share capital; * hold and subsequently deliver shares as payment or exchange as part of Group’s external growth transactions; * allow an investment services provider to trade in the Company’s shares as part of a liquidity agreement compliant with the regulations of the French Financial Markets Authority (Autorité des Marchés Financiers). 4\. Maximum amount allocated to the share buyback programme, maximum number and characteristics of the securities, maximum purchase priceThe resolution proposed to the General Meeting provides that Societe Generale could purchase its ordinary shares for an amount of up to 5% of the share capital at the completion date of these purchases, within the legal limit of an amount of shares held representing 10% of the share capital after these buybacks.As at 12 May 2020, without taking into account the shares already held, a theoretical maximum number of 42,668,574 shares could be purchased. Given the number of securities already held at this date and the possibility to hold an amount of shares representing up to 10% of the share capital, the Company could purchase up to 42,668,574 shares.The maximum purchase price would be set at EUR 75 per share, i.e. a potential maximum amount allocated to the programme of EUR 3,200,143,050.The Board of Directors will ensure that the implementation of the buybacks is conducted in compliance with the prudential requirements as set by the regulations.5\. Duration of the share buyback programmeIt is proposed to the combined General Meeting dated 19 May 2020 to set the duration of the authorisation for the Company to buy and sell its own shares at 18 months from the date of the General Meeting.6\. Recommendation of the European Central BankSociete Generale shall not be able to buyback shares aimed at remunerating shareholders during the COVID-19 pandemic and until « at least beginning of October 2020 » in accordance with the recommendation of the European Central Bank (ECB) dated 27 March 2020.Press contact :Corentin Henry _ 01 58 98 01 75_ firstname.lastname@example.orgSociete GeneraleSociete Generale is one of the leading European financial services groups. Based on a diversified and integrated banking model, the Group combines financial strength and proven expertise in innovation with a strategy of sustainable growth. Committed to the positive transformations of the world’s societies and economies, Societe Generale and its teams seek to build, day after day, together with its clients, a better and sustainable future through responsible and innovative financial solutions.Active in the real economy for over 150 years, with a solid position in Europe and connected to the rest of the world, Societe Generale has over 138,000 members of staff in 62 countries and supports on a daily basis 29 million individual clients, businesses and institutional investors around the world by offering a wide range of advisory services and tailored financial solutions. The Group is built on three complementary core businesses: * French Retail Banking which encompasses the Societe Generale, Crédit du Nord and Boursorama brands. Each offers a full range of financial services with omnichannel products at the cutting edge of digital innovation; * International Retail Banking, Insurance and Financial Services to Corporates, with networks in Africa, Russia, Central and Eastern Europe and specialised businesses that are leaders in their markets; * Global Banking and Investor Solutions, which offers recognised expertise, key international locations and integrated solutions.Societe Generale is included in the principal socially responsible investment indices: DJSI (World and Europe), FTSE4Good (Global and Europe), Euronext Vigeo (World, Europe and Eurozone), four of the STOXX ESG Leaders indices, and the MSCI Low Carbon Leaders Index. For more information, you can follow us on Twitter @societegenerale or visit our website www.societegenerale.comAttachment * Description-of-the-share-buyback-programme-2020
Investments banks cut jobs at the fastest pace in six years during a first quarter in 2020 even though the coronavirus pandemic triggered a surge in volatility and boosted revenues to a five-year high, data published on Wednesday by research firm Coalition showed. While investment banks have benefited from the short-term increase in trading, they are expected to be hit hard by a global recession triggered by the COVID-19 crisis and have already imposed hiring freezes. Coalition's data showed that the banks' revenues from fixed income, currencies, and commodities had their strongest first quarter since 2015, surging 20% to 22.7 billion dollars, as the financial turmoil from the coronavirus crisis prompted a spike in trading.
Name of issuer: Société Générale S.A. – French public limited company (“SA”) with a share capital of 1,066,714,367.50 euros Registered under nr.552 120 222 R.C.S. PARIS Registered office: 29, Boulevard Haussmann, 75009 ParisInformation about the total number of voting rights and shares pursuant to Article L.233-8 II of the French Commercial Code and Article 223-16 of the AMF General Regulations DateNumber of shares composing current share capitalTotal number of voting rights 30th April 2020853,371,494 Gross: 923,298,424 Attachment * Societe Generale shares & voting rights as of 30-04-2020
PRESS RELEASE REGULATED INFORMATION Paris, 7th May 2020Availability of the first amendment to the 2020 Universal Registration Document Societe Generale informs the public that the first amendment to the 2020 Universal Registration Document filed on 12th March 2020 under number D-20-0122, has been filed with the French Financial Markets Authority (AMF) on 7th May 2020 under number D-20-0122-A01.This document is made available to the public, free of charge, in accordance with the conditions provided for by the regulations in force and may be consulted in the “Regulated information” section of the Company’s website (http://www.societegenerale.com/en/measuring-our-performance/information-and-publications/regulated_information) and on the AMF’s website.Press contact:Corentin Henry _ +33(0)1 58 98 01 75_ email@example.com Societe GeneraleSociete Generale is one of the leading European financial services groups. Based on a diversified and integrated banking model, the Group combines financial strength and proven expertise in innovation with a strategy of sustainable growth. Committed to the positive transformations of the world’s societies and economies, Societe Generale and its teams seek to build, day after day, together with its clients, a better and sustainable future through responsible and innovative financial solutions.Active in the real economy for over 150 years, with a solid position in Europe and connected to the rest of the world, Societe Generale has over 138,000 members of staff in 62 countries and supports on a daily basis 29 million individual clients, businesses and institutional investors around the world by offering a wide range of advisory services and tailored financial solutions. The Group is built on three complementary core businesses: * French Retail Banking which encompasses the Societe Generale, Crédit du Nord and Boursorama brands. Each offers a full range of financial services with omnichannel products at the cutting edge of digital innovation; * International Retail Banking, Insurance and Financial Services to Corporates, with networks in Africa, Russia, Central and Eastern Europe and specialised businesses that are leaders in their markets; * Global Banking and Investor Solutions, which offers recognised expertise, key international locations and integrated solutions.Societe Generale is included in the principal socially responsible investment indices: DJSI (World and Europe), FTSE4Good (Global and Europe), Euronext Vigeo (World, Europe and Eurozone), four of the STOXX ESG Leaders indices, and the MSCI Low Carbon Leaders Index. For more information, you can follow us on Twitter @societegenerale or visit our website www.societegenerale.comAttachment * Availability-first-amendement-to-the-URD-2020
(Bloomberg Opinion) -- An outsider’s attempt to storm Paris has failed after the French establishment pulled rank. London-based hedge fund Amber Capital U.K. LLP didn’t win enough support to replace the board of Lagardere SCA, owner of the Hachette publishing house, at Tuesday’s annual meeting. Lagardere’s independent shareholders have regrettably missed the chance to have some influence over the company at a critical moment in its history.The shares fell upon the news, and it’s not hard to see why. The vote largely preserves an existing board that has overseen abysmal returns for investors. That poor performance over such a long period provided a sufficient argument for overhauling the company’s governance. But Amber, headed by former Societe Generale prop trader Joseph Oughourlian, also shone a light on the deficiencies of its so-called commandite partnership structure. This has kept managing partner and 7% shareholder Arnaud Lagardere richly rewarded, even as outside investors suffered. Meanwhile, the supervisory board went along with the situation and lacked the power to forcibly change management.The activist campaign gained traction amid the broad endorsement of proxy voting firms. That, however, prompted a reaction from Lagardere’s allies. Vivendi SA, the media conglomerate controlled by billionaire Vincent Bollore, took a big stake in the company last month. So did French investor Marc Ladreit de Lacharriere, Les Echos reported. They likely rejected Amber’s resolutions. The key poll results would otherwise have hung in the balance rather than being split roughly 60:40.It is a shame for outside shareholders that not even one of Amber’s eight nominees were elected. The board could have used an immediate injection of outsiders. Sometimes a partial victory is as good as it gets in activism. Might Bollore have been open to supporting a handful of candidates if the campaign had not become so heated? Perhaps. What happens next? Lagardere’s shares continue to suffer amid measures to curb the coronavirus, given the firm’s reliance on the advertising and travel businesses. So the board needs to be ready to defend the company against opportunistic bids for all or part of the business.The company would be in a stronger position if it ended the commandite, thereby rebooting the standalone investment case. That requires the board to make Arnaud Lagardere an offer, probably in the form of an additional stake, that persuades him to give up the structure. It would be a wrench to cede control of an institution that bears his family name. Much will depend on his personal financial situation, especially as the company is no longer in a position to pay the generous dividends he previously received.Both a sale of the commandite and any deal for all or part of the group would present challenging negotiations. Outside shareholders will want a board that delivers substantially better results for them than it has in the past. The French establishment may have saved Lagardere from outright humiliation, but this protest vote should not be ignored.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- Investors are particularly wary of European banks. Since February, shares in the region’s lenders have lost more than 40% of their value to hit lows not seen even in the depths of the global financial crisis. The concern is that a fragmented industry still grappling with meager profitability will be crippled by the pandemic-inflicted economic slump, notwithstanding all the government assistance.How banks are preparing for the inevitable buildup of bad loans isn’t helping confidence, either. Some took their bitter medicine in the first quarter, making large provisions that ate into profit. Others, perhaps encouraged by regulators, took a more benign view of the impact of the worst economic contraction in living memory.The result? While banks’ loan books differ from each other — with varying exposures to different geographies and industries, and to secured and unsecured borrowers — it will take time to convince investors that things are OK. The mountain of bad loans that plagued lenders after the previous crises took years to reduce. Whether lenders have become truly more prudent remains to be seen.Take France’s BNP Paribas SA. Its outlook is much brighter than that of the markets. The last of Europe’s big banks to report first-quarter earnings said on Tuesday that it only expects a drop of net income for the year of between 15% and 20%. Analysts have been forecasting a 30% drop or more for 2020.Profit fell by a third to 1.3 billion euros ($1.4 billion) in the first three months of 2020, after the bank set aside an additional 502 million euros for the hit from the pandemic, chiefly for its corporate bank and consumer finance businesses. For the rest of 2020, the lender sees net-interest income offsetting a decline in fees. At the same time, BNP said more cost savings would help soften the blow of what it has to set aside for deteriorating credit.The bank expects to lend more, filling a vacuum left by some banks that are less keen to extend credit into Europe. And it plans to capitalize on its shift into automation by not replacing employees who leave.Still, when asked what bad loans will look like over the coming quarters, Chief Financial Officer Lars Machenil told Bloomberg Television it’s “a tad too early to say.” On a call with analysts, executives also declined to share details on the assumptions for gross domestic product that the bank has used. For shareholders, this lack of clarity will remain a cause for concern. Government backing of companies with loan guarantees and grants will help, but the speed with which economic activity will resume is still largely unknown.And there are always the one-offs. BNP missed out on the Wall Street trading bonanza where its peers posted their best quarter in eight years. Instead, its equities revenue was wiped out. The firm lost $200 million on equity derivatives, and unspecified amounts on misfiring hedges and building reserves. Blaming European authorities for restricting dividends, which caused BNP’s bets on payouts to backfire, was a feeble attempt to deflect attention from the real issue. The bank was caught on the wrong side of the market.BNP said there were nine instances in which its trading profits or losses exceeded what its internal “value-at-risk” models had predicted, a sign of the strain the trading business came under in the quarter. Luckily, regulators have lent a hand, easing the capital requirements for banks that get caught out like this.Investors will also take comfort that the bank has a more diverse business than its domestic rival Societe Generale SA, which lost money on similar derivatives bets and plunged into the red for the quarter. BNP trades at 40% of its tangible book value, or twice SocGen’s multiple. The gap has widened, but it’s a stretch to say BNP is a safe bet.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.