• Societe Generale: Third quarter 2023 earnings

    Source: Nasdaq GlobeNewswire / 03 Nov 2023 01:25:35   America/New_York


    RESULTS AT 30 SEPTEMBER 2023


    Press release
    Paris, 3 November 2023

    The results are for the first time published and commented under the reported view, as announced during the Capital Markets Day

    QUARTERLY RESULTS

    Quarterly revenues of EUR 6.2 billion, down by -6.2% vs. Q3 22, mainly as a result of the peak of the impact of short-term hedges on the net interest income reached in Q3 23 in French retail
    Cost-to-income ratio at 70.4% in Q3 23, with operating expenses increasing by less than +1% vs. Q3 22, at constant perimeter

    Low cost of risk at 21 basis points in Q3 23, now on expected to be below 20 basis points for FY 2023

    Exceptional net income impact of EUR -610m1 due to the goodwill impairment of the African, Mediterranean basin and Overseas activities and Equipment Finance activities for a total amount of around EUR -340 million, and also, the booking of a provision for Deferred Tax Assets for a total of around EUR -270 million

    Group net income of EUR 295 million (EUR 905 million excluding exceptional items1)

    Reported ROTE at 3.8% (6.0% excluding exceptional items1)

    9M 23 RESULTS

    Revenues of EUR 19.1 billion
    Cost-to-income ratio at 72.4%2, 68.9% excluding contribution to the Single Resolution Fund

    Cost of risk at 15 basis points

    Group net income of EUR 2.1 billion, vs. EUR 755 million in 9M-22

    Reported ROTE at 5.0%2, vs. 1.0% in 9M-22

    BALANCE SHEET AND LIQUIDITY PROFILE
    CET 1 ratio of 13.3%3 at end-Q3 23, around 350 basis points above the regulatory requirement
    Liquidity Coverage Ratio at 147% at end-Q3 23
    Stable deposit base vs. Q2 23
    Provision for distribution of EUR 1.334 per share, at end-September 2023

    MAJOR MILESTONES ACHIEVED
    Record quarter for client acquisition at BoursoBank, with 412,000 new clients

    Creation of the brand Ayvens, following the completion of the LeasePlan acquisition by ALD

    Completion of the 2022 share buy-backs for a total of around EUR 440 million

    Slawomir Krupa, the Group’s Chief Executive Officer, commented:
    “This quarter was marked by a good commercial performance in most businesses, limited increase in operating expenses and a low cost of risk. Global Banking and Investor Solutions notably posted stable revenues compared to a high level last year, and International Retail Banking maintained a solid performance. The Group’s net result was penalized by the negative effect of short-term hedges on net interest income in French retail, the impact of which peaked in Q3 23. It also includes, as announced during our Capital Markets Day, exceptional accounting items, with no impact on the capital ratio, or on shareholder distribution. Finally, in line with previous quarters, the balance sheet is very solid with a CET 1 ratio of 13.3%, up 20 basis points, and a robust liquidity profile.”

    1. GROUP CONSOLIDATED RESULTS
    In EURmQ3 23Q3 22Change9M 239M 22Change
    Net banking income6,1896,600-6.2%-9.2%*19,14720,544-6.8%-7.4%*
    Operating expenses(4,360)(4,083)+6.8%+2.0%*(13,858)(13,539)+2.4%+0.9%*
    Gross operating income1,8292,517-27.3%-27.5%*5,2897,005-24.5%-23.7%*
    Net cost of risk(316)(456)-30.7%-33.1%*(664)(1,234)-46.2%-37.4%*
    Operating income1,5132,061-26.6%-26.2%*4,6255,771-19.9%-21.3%*
    Net profits or losses from other assets64+50.0%+50.2%*(92)(3,286)+97.2%+97.2%*
    Impairment losses on goodwill(338)0n/sn/s(338)0n/sn/s
    Income tax(624)(369)+69.1%+69.1%*(1,377)(1,029)+33.8%+30.7%*
    Net income5631,700-66.9%-67.1%*2,8361,464+93.7%+87.4%*
    O.w. non-controlling interests268255+5.1%+2.5%*773709+9.0%+6.3%*
    Reported Group net income2951,445-79.6%-79.5%*2,063755x 2.7x 2.6*
    ROE0.9%9.5%  3.6%0.9%+0.0%+0.0%*
    ROTE3.8%10.8%  5.0%1.0%+0.0%+0.0%*
    Cost to income70.4%61.9%  3.6%0.9%+0.0%+0.0%*

    Asterisks* in the document refer to data at constant perimeter and exchange rate

    Societe Generale’s Board of Directors, which met on 2 November 2023 under the chairmanship of Lorenzo Bini Smaghi, examined the Societe Generale Group’s results for Q3 23 and for the first nine months of 2023.

    Net banking income 

    Net banking income decreased in Q3 23 by -6.2% (-9.2%*) vs. Q3 22 largely due to the decline in the net interest income in French Retail, Private Banking and Insurance, and to negative revenue in the Corporate Centre (in particular, impacts from the unwinding of hedges on TLTRO operations and other volatile items).

    Revenues recorded by French Retail, Private Banking and Insurance decreased by -16.4% vs. Q3 22 owing to the decline in the net interest income which continues to be impacted by short-term hedges that were taken until 2022. Insurance’s revenues climbed by +11% vs. Q3 22.

    Global Banking & Investor Solutions recorded lower revenues, down by a slight -0.4% in Q3 23 vs. a very good Q3 22, thanks to sustained level of activity. Global Markets & Investor Services posted solid revenues compared with a strong reference point in Q3 22 (-1.7%), driven by robust commercial activity in equity derivatives and a good performance in fixed income activities. Financing & Advisory activities posted a robust performance, with increased revenues in the asset finance platform. The securitisation and natural resources finance activities also turned in a solid performance. Investment banking activities rebounded during the quarter, particularly in the acquisition finance segment and for primary bond market activities. Global Transaction & Payment Services’ activities continued to grow on back of high interest rates.

    International Retail, Mobility and Leasing Services’ revenues climbed by +12.0% (-0.8%*) vs. Q3 22, in particular following the integration of LeasePlan by ALD.

    Corporate Centre recorded revenues of EUR -231m in Q3 23 which included around EUR -63 million euros due to the unwinding of hedges on TLTRO operations, in addition to impacts from the change in fair value of the swaps used for the replacement of equity stakes in subsidiaries.

    Over 9M 23, net banking income decreased by -6.8% vs. 9M 22.

    Operating expenses 

    In Q3 23, operating expenses came to EUR 4,360 million, up by +6.8% vs. Q3 22.

    They include around EUR 230 million for the integration of LeasePlan’s activities in ALD excluding transformation charges, and EUR 145 million in transformation costs. At constant perimeter, operating expenses are increasing by less than +1% vs. Q3 22.

    Over 9M 23, operating expenses totalled EUR 13,858 million, up by +2.4% vs. 9M 22.

    They include EUR 339 million for the integration of LeasePlan’s activities in ALD, excluding transformation charges and EUR 627 million in transformation costs.

    The cost-to-income ratio came to 72.4% in 9M 23 (68.9% excluding the contribution to the Single Resolution Fund.

    Cost of risk

    The cost of risk for Q3 23 was moderate at 21 basis points, i.e., EUR 316 million. It breaks down into a provision on non-performing loans of EUR 419 million (28 basis points) and a reversal of provision on performing loans for EUR -103 million (around -7 basis points). The Group now estimates that the cost of risk for FY 2023 will be lower than 20 basis points.

    At end-September 2023, the Group’s provisions on performing loans amounted to EUR 3,612 million.

    The non-performing loans ratio amounted to 2.9%5 at 30 September 2023. The gross coverage ratio on stood at 46%6 at 30 September 2023 (80% after taking into account guarantees and collateral).

    At 30 September 2023, the Group sharply reduced its offshore exposure to Russia to around EUR 1.0 billion of EAD (Exposure at Default) compared with EUR 1.6 billion at 30 June 2023 (-38%). The maximum risk exposure on this portfolio is estimated at around EUR 0.3 billion before provision. Total provisions stands at EUR 0.2 billion. The onshore residual exposure is very limited at around EUR 15 million and relates to the integration of LeasePlan activities in Russia.

    Group net income

    Group net income stood at EUR 295 million in Q3 23, i.e., a Return on Tangible Equity (ROTE) of 3.8%.

    It was negatively impacted by EUR -610m of exceptional items, which include on the one hand, the goodwill impairment of the African, Mediterranean basin and Overseas activities and Equipment Finance activities for a total of around EUR -340 million, and on the other hand, the booking of a provision for Deferred Tax Assets of around EUR -270 million.

    Group net income for 9M 23 came to EUR 2,063 million, i.e., a reported ROTE of 5.0%; and of 6.5% excluding the contribution to the Single Resolution Fund contribution.

    ESG

    Accelerating the decarbonisation of our businesses with new targets

    Société Générale is committed to a process of aligning its financing with trajectories compatible with the objectives of carbon neutrality in 2050, starting with the most CO2-emitting activities, as defined by the Net Zero Banking Alliance (NZBA).

    The Group has set new targets, announced for the most at the Capital Markets Day on 18 September 2023:

    • Accelerate the reduction of upstream Oil & Gas exposure, reaching -80% by 2030 vs. 2019, with an intermediary 2025 step of -50% (vs. the previous commitment of -20%);
      • Stop providing7 financial products and services dedicated to upstream Oil & Gas greenfield projects;
      • Phase-out exposure8 on upstream Oil & Gas private pure players and reinforce engagement with energy sector clients, particularly on their climate strategy;
      • New target on Oil & Gas financed GHG emissions of -70% by 2030 vs. 20199;
    • New Automotive sector10 target of -51% carbon emission intensity by 2030 vs. 2021;
    • New Steel sector target for an alignment score of 0 by 2030, based on the Sustainable Steel Principles for the 1.5°C scenarios of the IEA11 and MPP12;
    • New Cement sector target of -20% carbon emission intensity by 2030 vs. 2022.

    Investing in innovation and developing partnerships to generate more impact

    • Launch of a EUR 1 billion transition new investment fund. The fund’s objective is to support clients on energy transition, green technologies, nature-based solutions and impact-driven opportunities which support the UN’s Sustainable Development Goals;
    • Create an independent scientific advisory board composed of experts covering climate, nature, social issues and sustainable development that will enrich the Group’s ESG reflections, bringing long-term perspectives and scientific views;
    • Explore new areas of cooperation with the International Finance Corporation (IFC), a member of the World Bank Group, in sustainable finance projects.


    Being a responsible employer of choice

    • The Group is seeking to further strengthen its commitment to gender diversity, allocating EUR 100 million to reduce the pay gap and targeting more than 35% of women in senior leadership roles by 2026.



    1. THE GROUP’S FINANCIAL STRUCTURE

    Group shareholders’ equity totalled EUR 68.1 billion at 30 September 2023 (vs. EUR 67.0 billion at 31 December 2022). Net asset value per share was EUR 71.6 and tangible net asset value per share was EUR 62.1.

    The consolidated balance sheet totalled EUR 1,599 billion at 30 September 2023 vs. EUR 1,485 billion at 31 December 2022. The total funded balance sheet (see Methodology note 9) stood at EUR 967 billion vs. EUR 930 billion at 31 December 2022. The net amount of customer loan outstandings totalled EUR 497 billion vs. EUR 516 billion 31 December 2022. At the same time, customer deposits amounted to EUR 612 billion, up around 3% vs. 31 December 2022.

    At 30 September 2023, the parent company had issued EUR 46.5 billion of medium/long-term debt, having an average maturity of 4.9 years and an average spread of 78 basis points (over 6-month midswaps, excluding subordinated debt). The subsidiaries had issued EUR 3.9 billion. In all, the Group has issued a total of EUR 50.4 billion in medium/long-term debt.

    The Liquidity Coverage Ratio (LCR) was well above regulatory requirements at 147% at end-September 2023 (155% on average in Q3), vs. 141% at end-December 2022. At the same time, the Net Stable Funding Ratio (NSFR) stood at 117% at end-September 2023 vs. 114% at end-December 2022.

    The Group’s risk-weighted assets (RWA) were down vs. end of June 2023, at EUR 384.2 billion at 30 September 2023 according to CRR2/CRD5 rules. Risk-weighted assets in respect of credit risk account for 84.4% of the total, i.e., EUR 324.2 billion, up by 7.8% vs. 31 December 2022.

    At 30 September 2023, the Group’s Common Equity Tier 1 ratio(13) stood at 13.3%, or around 350 basis points above the regulatory requirement of 9.76%. The Group’s Common Tier 1 ratio (CET 1) at 30 September 2023 includes an +6 basis-point impact from the phasing of IFRS 9. Excluding this impact, the fully-loaded ratio amounts to 13.2%. At end-September 2023, the Tier 1 ratio stood at 15.9% while the total capital ratio amounted to 18.6%, above the respective regulatory requirements of 11.66% and 14.20%.

    The leverage ratio stood at 4.2% at 30 September 2023, above the regulatory requirement of 3.5%.

    With a RWA level of 32.5% and leverage exposure of 8.5% at end-September 2023, the Group’s TLAC ratio is significantly above the respective Financial Stability Board requirements for 2023 of 22.1% and 6.75%. Likewise, MREL-eligible outstandings, which stood at 34.0% of RWA and 8.9% of leverage exposure at end-September 2023, are also far above the respective regulatory requirements of 25.7% and 5.91%.

    The Group is rated by four rating agencies: (i) FitchRatings - long-term rating “A-”, positive outlook, 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”, stable outlook, short-term rating “A-1”.
    3.   FRENCH RETAIL BANKING, PRIVATE BANKING AND INSURANCE

    In EURmQ3 23Q3 22Change9M 239M 22Change
    Net banking income1,8832,253-16.4%6,0706,931-12.4%
    Net banking income excl. PEL/CEL1,8772,200-14.7%6,0706,784-10.5%
    Operating expenses(1,591)(1,635)-2.7%(5,036)(5,090)-1.1%
    Gross operating income292618-52.8%1,0341,841-43.8%
    Net cost of risk(144)(196)-26.5%(342)(264)+29.5%
    Operating income148422-64.9%6921,577-56.1%
    Net profits or losses from other assets03-100.0%36-50.0%
    Reported Group net income110317-65.3%5181,177-56.0%
    RONE2.8%7.9% 4.5%10.1% 
    Cost to income84.5%72.6% 83.0%73.4% 

    (2)
    SG network, Private Banking and Insurance 

    Average loan outstandings contracted by -4% on the Q3 22 level to EUR 204 billion. Loan outstandings to corporate and professional clients excluding government-guaranteed PGE loans rose by +1% vs. Q3 22 and were driven by short-term credits. Home loan outstandings contracted by -5% vs. Q3 22 owing to the Group’s strict lending policy implemented since mid-2022.

    Average outstanding balance sheet deposits of SG network clients declined by -5% vs. Q3 22 to EUR 238 billion (shift from sight deposits to interest-bearing deposits).

    As a result, the average loan/deposit ratio came to 86% in Q3 23.

    Private Banking activities cover Private Banking activities in and outside of France. Assets under management totalled EUR 143 billion in Q3 23. Private Banking’s net asset inflows amounted to EUR 0.6 billion at Q3 23. Net banking income for the quarter stood at EUR 367 million, up +5.2% vs. Q3 22 (EUR 1,115 million for 9M 23, up +4.7% vs. 9M 22).

    Insurance, which covers activities in and outside of France, has been consolidated in the French Retail Banking, Private Banking and Insurance core business as of this quarter.
    Life insurance outstandings stood at EUR 132 billion at end-September 2023. The unit-linked share accounted for 37% at a high level, and was up 2.7 points vs. the end-September 2022 level. Gross life insurance inflows amounted to EUR 2.6 billion in Q3 23.
    Protection insurance premiums were by +4% vs. Q3 22, with solid commercial momentum in property and casualty premiums (+9% vs. Q3 22).

    BoursoBank 

    BoursoBank is riding high on its new ambition, having registered 412,000 new clients, which is a quarterly record, and with a stable profile. Totally, it acquired 838,000 new clients over the first nine months of 2023. The leading online bank in France reached 5.4 million clients at the end of September 2023, with a low churn rate14, which is decreasing and lower than the market’s.

    Assets under management continue to rise at a consistent pace by vintage.

    Average loan outstandings dipped by -4.3% on the Q3 22 level to EUR 15 billion. Home loan production gradually picked up over the quarter.

    Average outstanding savings including deposits and financial savings were +20.5% higher vs. Q3 22 at EUR 55 billion. Deposits outstanding rose strongly by +24% vs. Q3 22 on back of robust collection over the quarter (EUR 1.4 million), notably on interest-bearing products. Life insurance outstandings increased by +9.5% vs. Q3 22, with the unit-linked share accounting for 43%. Net inflows were slightly positive over the quarter.

    BoursoBank strengthened its day-to-day banking, posting a +25% rise in number of transactions vs. Q3 22 and a record number of credit card operations.

    Net banking income

    In Q3 23, revenues totalled EUR 1,877 million, down -15% vs. Q3 22, excluding PEL/CEL. Net interest income excluding PEL/CEL contracted by -27% vs. Q3 22, mainly due to the impact of the short-term hedges on the NII, the higher interest rate on regulated savings schemes, the consequences of the usury rate and the end of the TLTRO programme. Fee income decreased by -2% relative to Q3 22.

    Over 9M 23, revenues totalled EUR 6,070 million, down by -11% vs. 9M 22, excluding PEL/CEL. The net interest income excluding PEL/CEL was down by -21% vs. 9M 22. Fee income rose slightly by +0.4% relative to 9M 22.

    Based on latest assumptions consistent with the current economic environment, the forecast of the net interest income of French retail banking, Private Banking and Insurance is expected to decrease by more than 20% in 2023 vs. 2022. In 2024, based on the latest budget assumptions, the NII of the French retail banking, Private Banking and Insurance is expected to be at a level higher or equal to the 2022 amount.

    Operating expenses

    In Q3 23, operating expenses came to EUR 1,591 million (-2.7% vs. Q3 22) including EUR 46 million in restructuring costs. The cost-to-income ratio stood at 84.5% for Q3 23.

    Over 9M 23, operating expenses totalled EUR 5,036 million (-1.1% vs. 9M 22). The cost-to-income ratio stood at 83.0%.

    Cost of risk

    In Q3 23, the cost of risk amounted to EUR 144 million or 24 basis points, which was slightly higher than in Q2 23 (18 basis points).

    Over 9M 23, the commercial cost of risk totalled EUR 342 million or 18 basis points vs. 14 basis points in 9M 22.

    Group net income

    In Q3 23, Group net income came to EUR 110 million, down -65.0% vs. Q3 22. RONE stood at 2.8% in Q3 23.

    Over 9M 23, Group net income totalled EUR 518 million, down -56% vs. 9M 22. RONE stood at 4.5% in 9M 23.
    4.   GLOBAL BANKING & INVESTOR SOLUTIONS

    In EUR mQ3 23Q3 22Variation9M 239M 22Variation
    Net banking income2,3092,318-0.4%+2.1%*7,4557,649-2.5%-1.4%*
    Operating expenses(1,479)(1,470)+0.6%+3.4%*(5,188)(5,281)-1.8%-0.8%*
    Gross operating income830848-2.1%-0.1%*2,2672,368-4.3%-2.8%*
    Net cost of risk(13)(80)-83.8%-83.2%*9(343)n/sn/s
    Operating income817768+6.4%+8.4%*2,2762,025+12.4%+14.3%*
    Reported Group net income647601+7.7%+9.6%*1,8131,598+13.4%+15.4%*
    RONE16.9%14.7%+0.0%+0.0%*15.6%13.4%+0.0%+0.0%*
    Cost to income64.1%63.4%+0.0%+0.0%*69.6%69.0%+0.0%+0.0%*

    Net banking income

    Global Banking & Investor Solutions delivered a good performance in the third quarter, posting revenues of EUR 2,309 million, stable in comparison to a strong Q3 22.

    Over the first nine months of the year, revenues are slightly down by -2.5% vs. 9M 22 (EUR 7,455 million vs. EUR 7,649 million).

    Global Markets & Investor Services recorded revenues of EUR 1,482 million in Q3 23, which was a minor -1.7% decrease in comparison to a high reference point in Q3 22. Over 9M 23, revenues stood at EUR 4,940 million, a -5.4% decrease vs. 9M 22.

    Global Markets turned in a solid performance with revenues of EUR 1,314 million, down -2.4% vs. Q3 22, which was a record third quarter result(15). Over 9M 23, revenues decreased by -5.7% vs. 9M 22 to EUR 4,383 million.

    The Equities business posted a very solid performance overall, recording revenues of EUR 800 million for Q3 23, which was a minor -1.0% decrease vs. a very high Q3 22, on back of a broadly robust commercial activity notably driven by strong momentum in investment solutions despite less conducive market conditions than in Q3 22, notably in the flow and financing businesses. Over 9M 23, revenues decreased by -8.4% vs. 9M 22 to EUR 2,431 million.

    Fixed income and Currencies recorded a solid performance, notably on back of investment solutions on rates despite a less favourable market environment, particularly for flow businesses. In Q3 23, revenues decreased by -4.6% vs. Q3 22 to EUR 514 million. Over 9M 23, revenues dipped slightly by -2.0% vs. 9M 22 to EUR 1,952 million.

    Securities Services’ revenues were up by +4.3% over the quarter to EUR 168 million. Excluding the impact of the valuation of various equity participations, business activity decreased by -4.0% compared with Q3 22. Over 9M 23, revenues fell by -3.1% vs. 9M 22, but rose by +2.9% excluding these participations. Assets under Custody and Assets under Administration amounted to EUR 4,671 billion and EUR 577 billion, respectively.

    The Financing and Advisory business posted a record Q3 performance, with revenues of EUR 827 million, up by +2.1% vs. Q3 22. Over 9M 23, revenues came to EUR 2,515 million, up by +3.6% vs. 9M 22.

    The Global Banking & Advisory business turned in a solid performance. Revenues decreased by -2.7% vs. Q3 22. Business benefited notably from the solid activity in Asset-Backed Products. Investment Banking also reaped the benefit of good commercial momentum that was driven by robust activity in acquisition finance and continued strong performance in debt capital markets activities. Meanwhile, the Asset Finance and Natural Resources platforms had a sustained commercial performance over the quarter. Over the first nine months of the year, business contracted by -4.1% vs. 9M 22.

    Global Transaction and Payment Services recorded strong revenue growth of +18.3% vs. Q3 22, reaping the dual benefit of high interest rates and increased fee income. Over 9M 23, revenues advanced strongly by +35.3% vs. 9M 22.

    Operating expenses

    Operating expenses for the quarter totalled EUR 1,479 million, including EUR 41 million in transformation charges, up by a slight +0.6% vs. Q3 22, reflecting the tight rein on costs despite the inflationary backdrop. Accordingly, the cost-to-income ratio came to 64.1% in Q3 23.

    Over 9M 23, operating expenses contracted by -1.8% vs. 9M 22. The cost-to-income ratio for 9M 23 consequently came to 69.6%. Excluding the contribution to the Single Resolution Fund (SRF), the ratio was 63.1%.

    Cost of risk

    In Q3 23, the cost of risk remained at very low 3 basis points (or EUR 13 million) vs. -7 basis points in Q2 23.

    Over 9M 23, the cost of risk stood at -1 basis points vs. 26 basis points in 9M 22.

    Group net income

    Group net income came to EUR 647 million, up by +7.7%. For the first nine months of the year, it rose by a sharp +13.4% to EUR 1,813 million.

    Global Banking and Investor Solutions again reported strong RONE of 16.9% for the quarter. Over the first nine months of the year, reported RONE came to 15.6% and 18.8% excluding the contribution to the SRF.
    5.   INTERNATIONAL RETAIL BANKING, MOBILITY AND LEASING SERVICES

    In EURmQ3 23Q3 22Change9M 239M 22Change
    Net banking income2,2281,990+12.0%-0.8%*6,4926,028+7.7%+4.6%*
    Operating expenses(1,237)(920)+34.5%+9.0%*(3,479)(2,940)+18.3%+10.5%*
    Gross operating income9911,070-7.4%-9.2%*3,0133,088-2.4%-1.0%*
    Net cost of risk(175)(150)+16.7%+8.4%*(349)(572)-39.0%-10.7%*
    Operating income816920-11.3%-12.1%*2,6642,516+5.9%+0.3%*
    Net profits or losses from other assets12-50.0%-50.0%*012-100.0%-100.0%*
    Reported Group net income377511-26.2%-26.0%*1,3251,395-5.0%-11.0%*
    RONE14.9%22.2%  18.6%18.9%  
    Cost to income55.5%46.2%  53.6%48.8%  

    International Retail Banking’s outstanding loans rose by +5.0% vs. Q3 22 to EUR 66.3 billion. Outstanding deposits increased by +3.5% vs. Q3 22 to EUR 81.6 billion.

    In Europe, outstanding loans were up + 5.2% vs. end-September 2022 to EUR 41.4 billion, with +4.2% vs. Q3 22 in the Czech Republic and +12.5% vs. Q3 22 in Romania. Outstanding deposits grew across all segments in the two countries, by +3.5% vs. Q3 22 to EUR 54.2 billion.

    In Africa, Mediterranean Basin and French Overseas Territories, outstanding loans (EUR 25 billion in Q3 23) and outstanding deposits (EUR 27.4 billion in Q3 23) grew respectively by +3.7% and +3.4% vs. Q3 22. Commercial performances were particularly robust in sub-Saharan Africa, which posted loan outstandings growth of +12.7% vs. Q3 22 and deposit outstandings of +5.8% vs. Q3 22.

    Mobility and Leasing Services also showed strong momentum. Earning assets grew by +14.1% to EUR 50.2 billion at end-September 2023 vs. EUR 44.0 billion at end-September 2022. Growth was driven by the increase in car values.

    Consumer Finance loan outstandings rose by +2.9% vs. Q3 22 to EUR 24 billion at end-September 2023. Equipment Finance posted leasing ouststandings of EUR 15 billion in Q3 23, up by + 3.7% vs. Q3 22 on back of robust new production.

    Net banking income

    In Q3 23, net banking income amounted to EUR 2,228 million, up by +12% vs. Q3 22.

    Over 9M 23, revenues grew by +7.7% vs. 9M 22 to EUR 6,492 million.

    International Retail Banking’s net banking income was robust during the quarter, posting a steady growth of +2.8% vs. Q3 22 to EUR 1,044 million in Q3 23. Over the first nine months of 2023, net banking income was stable vs. 9M 22 at EUR 3,124 million.

    Revenues in Europe were down in the third quarter to EUR 506 million (-4.5% vs. Q3 22). Momentum in Romania remained solid (+8.0% vs. Q3 22), while NII in Czech Republic, which remains high vs. past years, is down compared to a high level in Q3 22.

    Net banking income for the Africa, Mediterranean Basin and French Overseas Territories business unit reported a strong increase of +10.7% vs. Q3 22 to EUR 538 million in Q3 23.

    Mobility and Leasing Services recorded net banking income growth of +21.6% vs. Q3 22 to EUR 1,184 million. Boosted by the integration of LeasePlan, Ayvens posted a +37.2% increase, with stable margin revenues on leasing contracts and services (excluding reduction in depreciation costs and non-operating items). Regarding Used Car Sales (UCS) net result (including the negative impact of reduction in depreciation costs), it is normalising to an average of EUR 1,033 per unit vs EUR 3,014 in Q3 22. Excluding this reduction impact in depreciation costs, UCS results per unit would have been EUR 2,346 in Q3 23 vs. EUR 3,607 in Q3 22.

    In Q3 23, the contribution of LeasePlan’s revenues was around EUR 300 million, impacted by negative Marked-to-Market of hedging portfolio (EUR -82m) and consolidation adjustments on UCS and depreciation costs (EUR ~-150m in total).

    Consumer Finance posted lower net banking income, notably owing to the impact of the usury rate in France.

    Over 9M 23, Mobility and Leasing Services recorded net banking income of EUR 3,368 million, up by +16.6% vs. 9M 22.

    Operating expenses

    In Q3 23, operating expenses increased by +34.5% vs. Q3 22 to EUR 1,237 million (+9%*), impacted by LeasePlan expenses excluding transformation charges, for around EUR 230 million, and by around EUR 45 million in restructuring costs related to the integration. The cost-to-income ratio stood at 55.5% in Q3 23.

    Over 9M 23, operating expenses came to EUR 3,479 million, up by 18.3% vs. 9M 22 (+10.5%*).

    Amid an inflationary backdrop, International Retail Banking posted a +7.4% increase in operating expenses during the quarter vs. Q3 22 to EUR 567 million.

    Operating expenses for Mobility and Leasing Services came to EUR 670 million, which was a +70.9% increase vs. Q3 22. At constant scope and exchange rates, these expenses rose by +9%* vs. Q3 22.

    Cost of risk

    In Q3 23, the cost of risk fell to 43 basis points (or EUR 175 million) vs. 47 basis points in Q3 22.

    Over 9M 23, the cost of risk stood at 32 basis points vs. 56 basis points in 9M 22.

    Group net income

    In Q3 23, Group net income came to EUR 377 million, down -26.2% vs. Q3 22. RONE stood at 14.9% in Q3 23. RONE was 17.2% for International Retail Banking and 13.3% for Mobility and Leasing Services in Q3 23.

    Over 9M 23, Group net income totalled EUR 1,325 million, down -5% vs. 9M 22, while RONE stood at 18.6%. RONE for International Retail Banking was 17.3%, and 19.8% for Mobility and Leasing Services.

    1. CORPORATE CENTRE

    In EURmQ3 23Q3 229M 239M 22
    Net banking income(231)39(870)(64)
    Operating expenses(53)(58)(155)(228)
    Gross operating income(284)(19)(1,025)(292)
    Net cost of risk16(30)18(55)
    Net profits or losses from other assets4(1)(96)(3,304)
    Impairment losses on goodwill(338)-(338)-
    Income tax(211)121(80)391
    Reported Group net income(839)16(1,593)(3,415)

    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, as well as several costs incurred by the Group that are not re-invoiced to the businesses.

    Corporate Centre’s net banking income totalled EUR -231 million in Q3 23 vs. EUR +39 million in Q3 22. It notably included the negative impact from the unwinding of hedges on TLTRO operations for around EUR -0.1 billion at Q3 23 (approximately EUR -0.3 billion in 2023) and the negative impact from the change in market value of replacement swaps of the equity stakes in subsidiaries.

    Operating expenses totalled EUR -53 million in Q2 23 vs. EUR -58 million in Q3 22.

    Moreover, the Group recorded goodwill impairment on the Africa, Mediterranean Basin and French Overseas Territories activities and on Equipment Finance activities for a total amount of around EUR 340 million16, and booked a provision for deferred tax assets of around EUR 270 million1.

    The Corporate Centre’s contribution to Group net income totalled EUR -839 million in Q3 23 vs. EUR +16 million in Q3 22.

    7.   2023 AND 2024 FINANCIAL CALENDAR

    2023 and 2024 financial communications calendar



    8 February 2024 Fourth quarter and full year 2023 results
    3 May 2024        First quarter 2024 results
    01 August 2024 Second quarter and half year 2024 results
     


    Les Indicateurs Alternatifs de Performance, notamment les notions de Produit net bancaire des piliers, Frais de gestion, ajustement d’IFRIC 21, coût du risque en points de base, ROE, ROTE, RONE, Actif net, Actif net tangible, et les montants servant de base aux différents retraitements effectués (en particulier le passage des données publiées aux données sous-jacentes) sont présentés dans les notes méthodologiques, ainsi que les principes de présentation des ratios prudentiels.



    Ce document comporte des éléments de projection relatifs aux objectifs et stratégies du Groupe Société Générale.

    Ces projections reposent sur des hypothèses, à la fois générales et spécifiques, notamment l’application de principes et de méthodes comptables conformes au référentiel IFRS (International Financial Reporting Standards) tel qu'adopté dans l'Union européenne, ainsi que l’application de la réglementation prudentielle en vigueur à ce jour.



    Ces éléments sont issus de scenarii fondés sur un certain nombre d'hypothèses économiques dans un contexte concurrentiel et réglementaire donné. Le Groupe peut ne pas être en mesure :

    - d’anticiper tous les risques, incertitudes ou autres facteurs susceptibles d’affecter son activité et d’en évaluer leurs conséquences potentielles ;

    - d’évaluer avec précision dans quelle mesure la matérialisation d’un risque ou d’une combinaison de risques pourrait entraîner des résultats significativement différents de ceux projetés dans cette présentation.



     Par conséquent, bien que Société Générale estime qu’ils reposent sur des hypothèses raisonnables, ces éléments de projection sont soumis à de nombreux risques et incertitudes, en particulier dans le contexte de la crise du Covid-19, notamment des sujets dont le Groupe ou sa direction n’ont pas encore connaissance ou actuellement jugés non significatifs, et rien ne garantit que les événements anticipés se matérialiseront ou que les objectifs mentionnés seront atteints. Les facteurs importants susceptibles d’entraîner une différence marquée entre les résultats réels et les résultats anticipés dans les éléments de projection comprennent, entre autres, les tendances de l’activité économique en général et celles des marchés de Société Générale en particulier, les changements réglementaires et prudentiels et le succès des initiatives stratégiques, opérationnelles et financières de Société Générale.



    Des informations détaillées sur les risques potentiels susceptibles d’affecter les résultats financiers de Société Générale sont consultables dans le Document d’enregistrement universel déposé auprès de l’Autorité des Marchés Financiers.



    Il est recommandé aux investisseurs de tenir compte des facteurs d’incertitudes et de risque susceptibles d’affecter les opérations du Groupe lorsqu’ils examinent les informations contenues dans les éléments de projection. Au-delà des obligations légales en vigueur, Société Générale ne s’engage aucunement à mettre à jour ou à réviser ses éléments de projection. Sauf mention contraire, les sources des classements et des positions de marché sont internes.

    8.   APPENDIX 1: FINANCIAL DATA

    GROUP NET INCOME BY CORE BUSINESS

    In EURmQ3 23Q3 22Variation9M 239M 22Variation
    French Retail, Private Banking and Insurance110317-65.3%5181,177-56.0%
    Global Banking and Investor Solutions647601+7.7%1,8131,598+13.4%
    International Retail, Mobility and Leasing Services377511-26.2%1,3251,395-5.0%
    Core Businesses1,1341,429-20.6%3,6564,170-12.3%
    Corporate Centre(839)16n/s(1,593)(3,415)+53.4%
    Group2951,445-79.6%2,063755x 2.7

    CONSOLIDATED BALANCE SHEET

    In EUR m 30.09.202331.12.2022 R
    Cash, due from central banks 234,004207,013
    Financial assets at fair value through profit or loss 490,511427,151
    Hedging derivatives 32,05032,971
    Financial assets at fair value through other comprehensive income 89,52792,960
    Securities at amortised cost 27,46826,143
    Due from banks at amortised cost 87,40468,171
    Customer loans at amortised cost 487,788506,635
    Revaluation differences on portfolios hedged against interest rate risk (2,389)(2,262)
    Insurance and reinsurance contracts assets 487353
    Tax assets 4,3024,484
    Other assets 82,24382,315
    Non-current assets held for sale 1,5911,081
    Investments accounted for using the equity method 208146
    Tangible and intangible fixed assets 59,00633,958
    Goodwill 5,2473,781
    Total 1,599,4471,484,900


    In EUR m 30.09.202331.12.2022 R
    Due to central banks 10,8288,361
    Financial liabilities at fair value through profit or loss 391,803304,175
    Hedging derivatives 45,06246,164
    Debt securities issued 154,010133,176
    Due to banks 118,564133,011
    Customer deposits 543,919530,764
    Revaluation differences on portfolios hedged

    against interest rate risk    		 (9,248)(9,659)
    Tax liabilities 2,4361,645
    Other liabilities 105,466107,315
    Non-current liabilities held for sale 1,583220
    Insurance contracts related liabilities 137,621135,875
    Provisions 4,3224,579
    Subordinated debts 14,82415,948
    Total liabilities 1,521,1901,411,574
    Shareholder's equity --
    Shareholders' equity, Group share --
    Issued common stocks and capital reserves 21,11021,248
    Other equity instruments 10,1369,136
    Retained earnings 34,39334,479
    Net income 2,0631,825
    Sub-total 67,70266,688
    Unrealised or deferred capital gains and losses 375282
    Sub-total equity, Group share 68,07766,970
    Non-controlling interests 10,1806,356
    Total equity 78,25773,326
    Total 1,599,4471,484,900

    9.    APPENDIX 2: METHODOLOGY

    1 –The financial information presented for the third quarter and nine months 2023 was examined by the Board of Directors on November 2nd, 2023 and has been prepared in accordance with IFRS as adopted in the European Union and applicable at that date. This information has not been audited

    2 - Net banking income

    The pillars’ net banking income is defined on page 41 of Societe Generale’s 2023 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 notes 5 and 8.2 to the Group’s consolidated financial statements as at December 31st, 2022. The term “costs” is also used to refer to Operating Expenses. The Cost/Income Ratio is defined on page 41 of Societe Generale’s 2023 Universal Registration Document.

    4 - Cost of risk in basis points, coverage ratio for doubtful outstandings

    The cost of risk is defined on pages 42 and 691 of Societe Generale’s 2023 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 EURm Q3 23Q3 229M 239M 22
    French Retail, Private Banking and Insurance



    		Net Cost Of Risk144196342264
    Gross loan Outstandings243,740246,467248,757244,941
    Cost of Risk in bp24 32 18 14
    Global Banking and Investor Solutions



    		Net Cost Of Risk1380(9)343
    Gross loan Outstandings167,057190,678170,165179,454
    Cost of Risk in bp3 17 (1)26
    International Banking, Mobility and Leasing Solutions



    		Net Cost Of Risk175150349572
    Gross loan Outstandings162,873127,594145,227136,405
    Cost of Risk in bp43 47 32 56
    Corporate Centre



    		Net Cost Of Risk(16)30(18)55
    Gross loan Outstandings22,68115,92419,36415,093
    Cost of Risk in bp(31)75 (13)49
    Societe Generale Group



    		Net Cost Of Risk3164566641,234
    Gross loan Outstandings596,350580,663583,512575,893
    Cost of Risk in bp21 31 15 29

    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”).

    5 - ROE, ROTE, RONE

    The notions of ROE (Return on Equity) and ROTE (Return on Tangible Equity), as well as their calculation methodology, are specified on page 43 of Societe Generale’s 2023 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 43 of Societe Generale’s 2023 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 methodology

    End of period (in EURm)Q3 23Q3 229M 239M 22
    Shareholders' equity Group share68,07766,83568,07766,835
    Deeply subordinated and undated subordinated notes(11,054)(9,350)(11,054)(9,350)
    Interest payable to holders of deeply & undated subordinated notes, issue premium amortisation(1)(102)(80)(102)(80)
    OCI excluding conversion reserves853844853844
    Distribution provision(2)(1,059)(1,916)(1,059)(1,916)
    Distribution N-1 to be paid-(334)-(334)
    ROE equity end-of-period56,71556,00056,71556,000
    Average ROE equity56,57255,40056,32655,058
    Average Goodwill(3)(4,279)(3,667)(3,991)(3,646)
    Average Intangible Assets(3,390)(2,720)(3,128)(2,726)
    Average ROTE equity48,90349,01349,20748,686
         
    Group net Income2951,4452,063755
    Interest paid and payable to holders of deeply subordinated notes and undated subordinated notes, issue premium amortisation(165)(126)(544)(404)
    Cancellation of goodwill impairment33813383
    Adjusted Group net Income4681,3201,858354
    ROTE3.8%10.8%5.0%1.0%

    RONE calculation: Average capital allocated to Core Businesses (in EURm)

    In EURmQ3 23Q3 22Change9M 239M 22Change
    French Retail , Private Banking and Insurance15,89816,104-1.3%15,48815,500-0.1%
    Global Banking and Investor Solutions15,32416,346-6.3%15,48615,865-2.4%
    International Retail, Mobility and Leasing Services10,1369,191+10.3%9,5059,816-3.2%
    Core Businesses41,35841,641-0.7%40,47941,181-1.7%
    Corporate Centre15,21413,759+10.6%15,84713,877+14.2%
    Group56,57255,400+2.1%56,32655,058+2.3%

    2022 figures restated in compliance with IFRS 17 and IFRS 9 for insurance entities. 17

    6 - Net assets and tangible net assets

    Net assets and tangible net assets are defined in the methodology, page 45 of the Group’s 2023 Universal Registration Document. The items used to calculate them are presented below:

    End of period (in EURm)9M 23H1 232022
    Shareholders' equity Group share68,07768,00766,970
    Deeply subordinated and undated subordinated notes(11,054)(10,815)(10,017)
    Interest of deeply & undated subordinated notes, issue premium amortisation(1)(102)(28)(24)
    Book value of own shares in trading portfolio8613467
    Net Asset Value57,00757,29856,996
    Goodwill(2)(4,128)(4,429)(3,652)
    Intangible Assets(3,423)(3,356)(2,875)
    Net Tangible Asset Value49,45649,51350,469
        
    Number of shares used to calculate NAPS(3)796,242801,471801,147
    Net Asset Value per Share71.671.571.1
    Net Tangible Asset Value per Share62.161.863.0

    18 2022 figures restated in compliance with IFRS 17 and IFRS 9 for insurance entities. 

    7 - 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 44 of Societe Generale’s 2023 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 45 of Societe Generale’s 2023 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)9M 23H1 232022
    Existing shares821,765822,101845,478
    Deductions   
    Shares allocated to cover stock option plans and free shares awarded to staff6,8186,8456,252
    Other own shares and treasury shares14,86413,89216,788
    Number of shares used to calculate EPS(1)800,083801,363822,437
    Group net Income (in EUR m)2,0631,7681,825
    Interest on deeply subordinated notes and undated subordinated notes (in EUR m)(544)(379)(596)
    Adjusted Group net income (in EUR m)1,5201,3901,230
    EPS (in EUR)1.901.731.50

    19

    8 - The Societe Generale Group’s Common Equity Tier 1 capital is calculated in accordance with applicable CRR2/CRD5 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 also calculated according to applicable CRR2/CRD5 rules including the phased-in following the same rationale as solvency ratios.

    209 – Funded balance sheet, loan to deposit ratio

    The funded balance sheet is based on the Group financial statements. It is obtained in two steps:

    • A first step aiming at reclassifying the items of the financial statements into aggregates allowing for a more economic reading of the balance sheet. Main reclassifications:

    Insurance: grouping of the accounting items related to insurance within a single aggregate in both assets and liabilities.
    Customer loans: include outstanding loans with customers (net of provisions and write-downs, including net lease financing outstanding and transactions at fair value through profit and loss); excludes financial assets reclassified under loans and receivables in accordance with the conditions stipulated by IFRS 9 (these positions have been reclassified in their original lines).
    Wholesale funding:
    Includes interbank liabilities and debt securities issued.
    Financing transactions have been allocated to medium/long-term resources and short-term resources based on the maturity of outstanding, more or less than one year.
    Reclassification under customer deposits of the share of issues placed by French Retail Banking networks (recorded in medium/long-term financing), and certain transactions carried out with counterparties equivalent to customer deposits (previously included in short term financing).
    Deduction from customer deposits and reintegration into short-term financing of certain transactions equivalent to market resources.

    • A second step aiming at excluding the contribution of insurance subsidiaries, and netting derivatives, repurchase agreements, securities borrowing/lending, accruals and “due to central banks”.

    The Group loan/deposit ratio is determined as the division of the customer loans by customer deposits as presented in the funded balance sheet.

    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.

    10.   APPENDIX 3: PRESS RELEASE DATED NOVEMBER 2ND 2023 - PUBLICATION OF THE NEW QUARTERLY RESULTS SERIES

    Press release

    Paris, 2 November 2023,

    Societe Generale today reports new quarterly series reflecting changes in the presentation of the Group’s financial performance as announced on the Capital Markets Day on 18 September 2023.

    During the Capital Markets Day on 18 September 2023, the Group announced several changes in the financial reporting of the Group and its businesses:

    • Insurance business will from now on be integrated into French retail, forming the French Retail Banking, Private Banking and Insurance business.
    • The Consumer Finance business in Europe has been transferred to Mobility and Leasing Services in International Retail Banking, Mobility and Leasing Services.
    • Transformation charges, previously accounted for at the Corporate Centre, will from now on be directly borne by the businesses.
    • Normative return of businesses is now based on a 12% capital allocation vs. 11% previously

    The historical quarterly series have been restated in accordance with these changes in governance and financial reporting.

    None of the above items has any impact on the Group’s financial results.

    2022 quarterly series are restated accordingly and are available on Societe Generale’s website (The data of this press release have not been audited.)

    Societe Generale

    Societe Generale is a top tier European Bank with 117,000 employees serving 25 million clients in more than 60 countries across the world. We have been supporting the development of our economies for nearly 160 years, providing our corporate, institutional, and individual clients with a wide array of value-added advisory and financial solutions. Our long-lasting and trusted relationships with the clients, our cutting-edge expertise, our unique innovation, our ESG capabilities and leading franchises are part of our DNA and serve our most essential objective - to deliver sustainable value creation for all our stakeholders.

    The Group runs three complementary sets of businesses, embedding ESG offerings for all its clients:

    • French Retail, Private Banking and Insurance, with leading retail bank SG and insurance franchise, premium private banking services, and the leading digital Bank BoursoBank.
    • Global Banking and Investor Solutions, a top tier wholesale bank offering tailored-made solutions with distinctive global leadership in Equity Derivatives, Structured Finance and ESG.
    • International Retail, Mobility & Leasing Services, comprising well-established universal banks (in Czech Republic, Romania and several African countries), Ayvens (the new ALD I LeasePlan brand), a global player in sustainable mobility, as well as specialized financing activities.

    Committed to building together with its clients a better and sustainable future, Societe Generale aims to be a leading partner in the environmental transition and sustainability overall. The Group is included in the principal socially responsible investment indices: DJSI (Europe), FTSE4Good (Global and Europe), Bloomberg Gender-Equality Index, Refinitiv Diversity and Inclusion Index, Euronext Vigeo (Europe and Eurozone), STOXX Global ESG Leaders indexes, and the MSCI Low Carbon Leaders Index (World and Europe).

    In case of doubt regarding the authenticity of this press release, please go to the end of the Group News page on societegenerale.com website where official Press Releases sent by Societe Generale can be certified using blockchain technology. A link will allow you to check the document’s legitimacy directly on the web page.

    For more information, you can follow us on Twitter/X @societegenerale or visit our website societegenerale.com.

    1 Non-cash items with no impact on 2023 shareholder distribution
    2 Cost-to-income ratio based on reported figures (vs. underlying previously), cost-to-income ratio and ROTE at 69.8% and 6.5% respectively excluding the contribution to the Single Resolution Fund
    3 Phased-in ratio, pro-forma including Q3-23 results
    4 Based on a pay-out ratio of 50% of the Group net income, at the high-end of the 40%-50% payout ratio, as per regulation, restated from non-cash items and after deduction of interest on deeply subordinated notes and undated subordinated notes
    Note: 2022 figures restated in compliance with IFRS 17 and IFRS 9 for insurance entities, and in accordance with changes in performance reporting mentioned in appendix 3
    5 Ratio calculated according to EBA methodology published on 16 July 2019
    6 Ratio of S3 provisions to gross book value of NPL before netting of guarantees and collateral
    7 Effective from 1 January 2024. The new sectoral policy detailing the terms is available on Societe Generale’s web page.
    8 Effective from 1 January 2024.
    9 Oil and Gas absolute financed GHG Emissions on scope 1, 2 and 3 end use covering the broad value chain from upstream, midstream to downstream.
    10 Concerning the credit exposure to car manufacturers.
    11 International Energy Agency.
    12 Mission Possible Partnership’s Technology Moratorium.
    (13) Pro forma including Q3 23 results

    14 Bain & Company study 2022
    (1) At comparable business model in the post Global Financial Crisis (GFC) regulatory regime
    16 Non-cash items with no impact on 2023 shareholder distribution

    (1) Interest net of tax (2) The dividend to be paid is calculated based on a pay-out ratio of 50% of the Group net income restated from non-cash items and after deduction of deeply subordinated notes and on undated subordinated notes, (3) Excluding goodwill arising from non-controlling interests.

    (1) Interest net of tax, (2) Excluding goodwill arising from non-controlling interests, (3) The number of shares considered is the number of ordinary shares outstanding at end of period, excluding treasury shares and buybacks, but including the trading shares held by the Group (expressed in thousand of shares)

    (1) The number of shares considered is the average number of ordinary shares of the period, excluding treasury shares and buybacks, but including the trading shares held by the Group.

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