SOCIETE GENERALE
Premium Review 02.12.2022
DISCLAIMER | looking statements are based on a series of assumptions, both general and specific, in particular the application of accounting principles and | |
This presentation contains forward-looking statements relating to the targets and strategies of the Societe Generale Group. These forward- | ||
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 contextof a given competitive and regulatory environment. The Group may be unable to: | ||
anticipate all the risks, uncertainties or other factorslikely to affect its business and to appraise their potential consequences; | ||
evaluatethe extentto which the occurrenceof a risk or a combinationof risks couldcauseactualresultsto differ materiallyfromthose 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, in particular in the Covid-19 crisis context, 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 section | ||
"Risk Factors" in our Universal Registration Document filed with the French Autorité des Marchés Financiers (which is available on | ||
https://investors.societegenerale.com/en). 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 undertakes no does not undertake any obligation to update or revise any forward-lookinginformation or statements. | ||
Unless otherwise specified, the sources for the business rankings and market positions are internal. This presentation includes information | ||
pertaining to our markets and our competitive positions therein. Such information is based on market data and our actual revenues in those | ||
markets for the relevant periods. We obtained this market information from various third-party sources (publications, surveys and forecasts) | ||
and our own internal estimates. We have not independently verified these third party sources and cannot guarantee their accuracy or | ||
completeness and our internal surveys and estimateshave not been verified by independent experts or other independent sources. |
PREMIUM REVIEW | 2 DECEMBER 2022 | 2
NINTH QUARTER OF SOLID PERFORMANCE
STRONG BUSINESS PERFORMANCE SOLID BALANCE SHEET
Revenue growth in all businesses
- 10.4% vs 9M 21
Positive jaws
+5.4% in underlying costs in 9M 22
Improved cost/income ratio
59.6%(1) in 9M 22
Solid gross operating income
EUR 7.9bn(3) +20.0% vs 9M 21
Strong CET1
13.1%(2) at end Q3 22 ~380 bps over MDA
Contained cost of risk
29 bps in 9M 22
o/w limited S3 at 14 bps (incl. Russia)
Prudent provisioning
EUR 3.8bn
S1/S2 asset provisions at end of Q3 22
2022 funding programme achieved
STRONG RESULTS
NET RESULT
EUR 4.5bn(3) in 9M 22 EUR 0.9bn reported
ROTE
10.4%(3) in 9M 22
- In 9M 22, underlying data adjusted for exceptional items and excluding SRF (2) Including IFRS 9 phasing, i.e. 12.9% fully loaded. Based on CRR2/CRD5 rules, including the Danish compromise for Insurance(see Methodology) (3) Underlying data adjusted for exceptional items
PREMIUM REVIEW | 2 DECEMBER 2022 | 3
MOVING FORWARD ON OUR STRATEGIC ROADMAP
FINANCIAL TARGETS
French
Networks
BERNSTEIN
CREATION OF A LANDMARK RETAIL BANK
Legal merger confirmed on January 1st 2023
IT migrations in H1 23
DEFINITIVE LEADER IN ONLINE BANKING
4.5M clients reached in November
A sizeable player in the French market
CREATION OF A LEADING GLOBAL PLAYER IN MOBILITY
Main regulatory approvals obtained
Launch of ALD rights issue
Closing of the acquisition expected in Q1 23
CREATIONOF A GLOBAL LEADER IN CASH EQUITIES
Closing expected before the end of 2023
Top 3 | 10% |
Client satisfaction | RONE in 2025 |
~EUR 200m | >25% |
Net Result in 2025 | RONE(1) in 2025 |
+70 to +80 bps | ~-40 bps |
2024 ROTE uplift(2) | Impact on CET1 ratio at closing |
+15 to +20 bps | ~-10 bps |
ROTE uplift(3) | Impact on CET1 ratio(4) at closing |
- Under IRBA (2) Computed based on 2024 net income group share post AT1 cost consensus estimate (Factset end 2021), including fully phased run rate synergies and excluding restructuring costs, divided by average tangible shareholders' equity (3) Impact of expected target incremental net income in 2028, based on Societe Generale's 51% stake in the joint venture and including all synergies, on profitability (ROTE) estimated by the analysts' consensus in 2026 (Visible Alpha at 24/10/2022), calculated on the average tangible equity of the consensus adjusted for the capital impact of the contemplated transaction at the closing date (4) Impact at the closing date of the transaction on the Group's CET1 ratio
estimated by the analyst consensus for the fourth quarter of 2023 (Visible Alpha calculated on 10/24/2022). | PREMIUM REVIEW | 2 DECEMBER 2022 | | 4 |
EXECUTING OUR SUSTAINABILITY AMBITION
Accelerating portfolio | Accompanying our clients through |
decarbonisation | partnerships and innovation |
UPSTREAM OIL ANDGAS
Exposurereductiontarget strengthened to -20%
(from -10%) by 2025 vs 2019
New target of -30% scope 3 absolute emissions by 2030 vs 2019
More ambitious than the NZE scenario(1)
POWER
Improved intensity target of 125 gCO2e/kWh
by 2030
More ambitious than the NZE scenario(1)
Equityinvestment in impact rating agency Impak Finance, with a commercial partnership to scale-up E&S assessment of corporate clients
Equityinvestmentin
greentechEcoTree, supporting biodiversity solutions
100% acquisition by KB of
Enviros, an ESG consultancy company, to support KB's expansion in energy and environmental advisory
Partnership with Carbo,
supporting our French corporate and retail clients to measure their carbon footprint
EXTENDING | Founding signatory of the | Investment Bank of the Year for Asia, recognised for innovation in supporting | ||
LEADERSHIP | Sustainable Steel Principles | clients in their sustainability transitions | ||
Investment Bank of the Year for Sustainability-Linked Loans | ||||
(1) IEA (International Energy Agency) Net Zero Emissions scenario | ||||
PREMIUM REVIEW | 2 DECEMBER 2022 | 5 |
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Société Générale SA published this content on 02 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 December 2022 07:43:03 UTC.