Societe Generale: Third quarter 2024 earnings
RESULTS AT 30 SEPTEMBER
2024
Press
release
Paris, 31 October 2024
SOLID BUSINESS PERFORMANCE IN Q3
24,
GROUP NET INCOME OF EUR 1.4
BILLION
Revenues of EUR 6.8
billion, up +10.5% vs. Q3 231, driven
notably by the strong rebound in net interest income in France, in
line with end of year estimate, and by another solid performance of
Global Banking and Investor Solutions, in particular in Equities
and Transaction Banking
Strong positive
jaws, control of operating expenses, down by
-0.8% vs. Q3 23
Cost-to-income ratio at 63.3% in
Q3 24, improved by 7.1 points vs. Q3 23
Stable cost of risk at 27 basis
points in Q3 24
Profitability (ROTE) at
9.6% vs. 3.8% for Q3 23
9M 24 NET INCOME UP 53% VS. 9M
23 AT EUR 3.2 BILLION,
DRIVEN BY THE IMPROVEMENT IN OPERATING
PERFORMANCE
Revenues of EUR 20.2
billion, up +5.3% vs. 9M 23
Stable operating
expenses, +0.1% vs. 9M 23
Cost-to-income ratio at
68.8%, improved by 3.6 percentage points vs. 9M
23
Profitability (ROTE) at
7.1% vs. 5.0% for 9M 23
SOLID CAPITAL AND LIQUIDITY
RATIOS
CET 1 ratio of
13.2%2
at end of Q3 24, around 300 basis
points above the regulatory requirement
Liquidity Coverage Ratio at 152%
at end of Q3 24
Distribution provision of EUR
1.663
per share at end-September
2024
DECISIVE EXECUTION OF THE
STRATEGIC PLAN
Capital build-up ahead of
Capital Markets Day trajectory
Continuous improvement in
efficiency and profitability
Reshaping of the business
portfolio well underway
Slawomir Krupa, the Group’s Chief
Executive Officer, commented:
“We are publishing solid quarterly results that continue to
show strong improvement. It demonstrates that we are executing our
strategic plan which is impacting our results in a positive and
tangible way. Our revenues are up thanks to the solid
performance of our businesses with a strong rebound of the net
interest income in France and another remarkable contribution from
Global Banking and Investor Solutions. Operating expenses are
stable and cost of risk is contained. We are posting a clear
improvement of cost-to-income ratio and profitability, and our
capital ratio continues to strengthen.
For the past year we have been working relentlessly. Our teams
are mobilized and we have made progress in three fundamental areas:
capital build-up, improvement of profitability, and the reshaping
of our business portfolio. We continue to implement our various
strategic initiatives such as BoursoBank’s development, LeasePlan’s
integration within Ayvens and the acceleration of our contribution
to the energy transition. Our goal remains unchanged: a sustainable
performance that will create long-term value.”
-
GROUP CONSOLIDATED RESULTS
In EURm |
Q3 24 |
Q3 23 |
Change |
9M 24 |
9M 23 |
Change |
Net banking income |
6,837 |
6,189 |
+10.5% |
+11.8%* |
20,167 |
19,147 |
+5.3% |
+6.5%* |
Operating expenses |
(4,327) |
(4,360) |
-0.8% |
-0.3%* |
(13,877) |
(13,858) |
+0.1% |
+0.5%* |
Gross operating income |
2,511 |
1,829 |
+37.3% |
+41.0%* |
6,290 |
5,289 |
+18.9% |
+22.4%* |
Net cost of risk |
(406) |
(316) |
+28.4% |
+30.5%* |
(1,192) |
(664) |
+79.6% |
+81.0%* |
Operating income |
2,105 |
1,513 |
+39.1% |
+43.2%* |
5,098 |
4,625 |
+10.2% |
+13.9%* |
Net profits or losses from other assets |
21 |
6 |
x 3.5 |
x 3.4* |
(67) |
(92) |
+27.5% |
+27.3%* |
Income tax |
(535) |
(624) |
-14.3% |
-12.7%* |
(1,188) |
(1,377) |
-13.7% |
-11.3%* |
Net income |
1,591 |
563 |
x 2.8 |
x 3.0* |
3,856 |
2,836 |
+35.9% |
+41.3%* |
O.w. non-controlling interests |
224 |
268 |
-16.5% |
-16.1%* |
696 |
774 |
-10.1% |
-11.2%* |
Reported Group net income |
1,367 |
295 |
x 4.6 |
x 5.1* |
3,160 |
2,062 |
+53.2% |
+62.2%* |
ROE |
8.4% |
0.9% |
|
|
6.2% |
3.6% |
+0.0% |
+0.0%* |
ROTE |
9.6% |
3.8% |
|
|
7.1% |
5.0% |
+0.0% |
+0.0%* |
Cost to income |
63.3% |
70.4% |
|
|
68.8% |
72.4% |
+0.0% |
+0.0%* |
Societe Generale’s Board of Directors, which met
on 30 October 2024 under the chairmanship of Lorenzo Bini Smaghi,
examined Societe Generale Group’s results for Q3 24 and for the
first nine months of 2024.
Net banking
income
Net banking income stood at EUR 6.8
billion, up by +10.5% vs. Q3 23.
Revenues of French Retail, Private
Banking and Insurance were up by +18.7% vs. Q3 23 and
totalled EUR 2.3 billion in Q3 24. Net interest income continued
its rebound in Q3 24 (+43% excluding PEL/CEL provision vs. Q3 23),
in line with latest estimates, in the context of a still muted loan
environment and the pursuit of increasing interest-bearing
deposits. Assets under management in the Private Banking
and Insurance businesses continued to rise, respectively
recording a growth of +8% and +10% in Q3 24 vs. Q3 23. Last,
BoursoBank continued its controlled client
acquisition, onboarding once again more than 300,000 new clients
over the quarter, reaching close to 6.8 million clients at
end-September 2024. Likewise, assets under administration rose by
over 14% vs. Q3 23. As in Q2 24, BoursoBank posted a positive
contribution to Group net income in Q3 24.
Global Banking and Investor
Solutions registered a +4.9% increase in revenues relative
to Q3 23. Revenues totalled EUR 2.4 billion over the quarter, still
driven by strong dynamics of Global Markets’ and
Global Transaction & Payment Services’
activities, with revenues increasing by a respective +7.6% and
+9.0% in Q3 24 vs. Q3 23. Within Global Markets, revenues of Equity
businesses grew by +10.1%. This is the second best third quarter
ever. Fixed income and Currencies also recorded a
solid performance, with a +6.1% increase in revenues amid a falling
interest rates. Financing and Advisory’s revenues
totalled EUR 843 million, stable vs. Q3 23. The commercial
momentum in the securitisation businesses remained very solid and
the performance of financing activities continued to be good,
albeit slower relative to an elevated Q3 23. Likewise,
Global Transaction & Payment Services’
activities posted an +9.0% increase in revenues vs. Q3 23, driven
by a favourable market environment and sustained commercial
development in the cash management and correspondent banking
activities.
Mobility, International
Retail Banking and Financial Services’ revenues were down
by -5.4% vs. Q3 23 mainly owing to base effects at Ayvens.
International Retail Banking recorded a +1.4%
increase in revenues vs. Q3 23 to EUR 1.1 billion, driven by
favourable momentum across all regions. Mobility and
Financial Services’ revenues contracted by -11.4% vs. Q3
23 owing to an unfavourable non-recurring base effect on
Ayvens.
The Corporate Centre recorded
revenues of EUR +54 million in Q3 24. They include the booking of
exceptional proceeds of approximately EUR 0.3
billion4.
Over 9M 24, net banking income increased
by +5.3% vs. 9M 23.
Operating
expenses
Operating expenses came to EUR 4,327
million in Q3 24, down -0.8% vs. Q3 23.
The cost-to-income ratio stood at 63.3%
in Q3 24, a sharp decrease vs. Q3 23 (70.4%) and Q2 24
(68.4%).
Over 9M 24, operating expenses
were stable (+0.1% vs. 9M 23) and the cost-to-income ratio came to
68.8% (vs. 72.4% for 9M 23), which is lower than the 71% target set
for FY 2024.
Cost of
risk
The cost of risk was stable and
contained over the quarter at 27 basis points, i.e., EUR
406 million. This comprises a EUR 400 million provision for
doubtful loans (around 27 basis points) and a provision on
performing loan outstandings for EUR +6 million.
At end-September 2024, the Group’s provisions on
performing loans amounted to EUR 3,122 million, down by a slight
EUR -56 million relative to 30 June 2024 notably as per the
application of IFRS5 accounting standards on activities under
disposal. The EUR -450 million contraction relative to
31 December 2023 is mainly owing to the application of IFRS 5
accounting standards for activities under disposal.
The gross non-performing loan ratio stood at
2.95%5,6 at 30 September 2024,
down vs. end of June 2024 (3.03%). The net coverage ratio on the
Group’s non-performing loans stood at 84%7 at 30
September 2024 (after netting of guarantees and collateral).
Net profits from other
assets
In Q3 24, the Group booked net profit of EUR 21
million driven, on the one hand, by the sale of the headquarters of
KB in the Czech Republic and, on the other hand, by the accounting
impacts mainly owing to the current sale of assets.
Group net
income
Group net income stood at EUR 1,367
million in Q3 24, equating to a Return on Tangible Equity
(ROTE) of 9.6%.
Over 9M 24, Group net income came to EUR
3,160 million, equating to a Return on Tangible Equity
(ROTE) of 7.1%.
2. STRATEGIC PLAN FULLY
ON TRACK
Since announcing its strategic plan in September
2023, the Group has made significant progress in its
implementation, the benefits of which are starting to materialise,
including on financials aspects. Fundamental milestones have
notably been reached in three major areas: capital build-up, the
continuous improvement in efficiency and profitability and the
reshaping of the business portfolio.
Regarding the business portfolio, the Group has
been proactive in recent months, announcing the disposal of several
non-core and non-synergistic assets. These latest divestments not
only contribute to simplifying the Group but will also reinforce
the capital ratio by around 60 basis points, of which around
15 basis points are expected by year-end.
At the same time, the Group is preparing the
future by investing in our core franchises, as demonstrated by the
development of BoursoBank, the integration of LeasePlan in Ayvens,
the creation of Bernstein, the partnership with Brookfield, the
merger of our networks in France and the digitalization of our
networks in the Czech Republic.
The rollout of our ESG roadmap is also
progressing well, particularly on the alignment of our portfolio.
The Group has already reduced by more than 50% its upstream Oil
& Gas exposure at Q2 24 compared to 20198.
Last quarter, the Group reached its EUR 300
billion sustainable finance target set between 2022-2025. Societe
Generale announces today a new sustainable finance target to
facilitate EUR 500 billion over the 2024-2030 period that breaks
down as follows:
- EUR 400 billion in financing and EUR 100 billion in sustainable
bonds9
- EUR 400 billion in environmental activities and EUR 100 billion
in social
A major portion of financing will be for
dedicated transactions in clean energy, sustainable real estate,
low carbon mobility, and other industry and environmental
transition topics.
3. THE
GROUP’S FINANCIAL STRUCTURE
At 30 September 2024, the Group’s Common
Equity Tier 1 ratio stood at 13.2%10, around
300 basis points above the regulatory requirement. Likewise, the
Liquidity Coverage Ratio (LCR) was well ahead of regulatory
requirements at 152% at end-September 2024 (156% on average for the
quarter), and the Net Stable Funding Ratio (NSFR) stood at 116% at
end-September 2024.
All liquidity and solvency ratios are well above
the regulatory requirements.
|
30.09.2024 |
31.12.2023 |
Requirements |
CET1(1) |
13.2% |
13.1% |
10.22% |
CET1 fully loaded |
13.2% |
13.1% |
10.22% |
Tier 1 ratio (1) |
15.5% |
15.6% |
12.15% |
Total Capital(1) |
18.2% |
18.2% |
14.71% |
Leverage ratio (1) |
4.25% |
4.25% |
3.60% |
TLAC (% RWA)(1) |
27.8% |
31.9% |
22.29% |
TLAC (% leverage)(1) |
7.6% |
8.7% |
6.75% |
MREL (% RWA)(1) |
32.2% |
33.7% |
27.56% |
MREL (%
leverage)(1) |
8.8% |
9.2% |
6.23% |
End of period LCR |
152% |
160% |
>100% |
Period average LCR |
156% |
155% |
>100% |
NSFR |
116% |
119% |
>100% |
In EURbn |
30.09.2024 |
31.12.2023 |
Total consolidated balance sheet |
1,580 |
1,554 |
Group shareholders’ equity |
67 |
66 |
Risk-weighted assets |
392 |
389 |
O.w. credit risk |
331 |
326 |
Total funded balance sheet |
948 |
970 |
Customer loans |
453 |
497 |
Customer deposits |
608 |
618 |
At 11 October 2024, the parent company had
issued a total of EUR 38.0 billion in medium/long-term debt, of
which EUR 17.5 billion in vanilla notes. The 2024 long-term vanilla
funding programme is completed. The subsidiaries had issued EUR 4.6
billion. In all, the Group has issued a total of EUR
42.6 billion.
The Group is rated by four rating agencies: (i)
FitchRatings - long-term rating “A-”, stable outlook, senior
preferred debt rating “A”, short-term rating “F1” (ii) Moody’s -
long-term rating (senior preferred debt) “A1”, negative 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”.
4. FRENCH RETAIL, PRIVATE
BANKING AND INSURANCE
In EURm |
Q3 24 |
Q3 23 |
Change |
9M 24 |
9M 23 |
Change |
Net banking income |
2,254 |
1,900 |
+18.7% |
6,390 |
6,090 |
+4.9% |
Net banking income excl. PEL/CEL |
2,259 |
1,895 |
+19.2% |
6,392 |
6,090 |
+5.0% |
Operating expenses |
(1,585) |
(1,608) |
-1.4% |
(4,962) |
(5,073) |
-2.2% |
Gross operating income |
669 |
292 |
x 2.3 |
1,428 |
1,017 |
+40.5% |
Net cost of risk |
(178) |
(144) |
+23.4% |
(597) |
(342) |
+74.7% |
Operating income |
491 |
148 |
x 3.3 |
831 |
675 |
+23.1% |
Net profits or losses from other assets |
(1) |
0 |
n/s |
7 |
4 |
x 2.1 |
Reported Group net income |
368 |
109 |
x 3.4 |
631 |
506 |
+24.8% |
RONE |
9.4% |
2.8% |
|
5.4% |
4.4% |
|
Cost to income |
70.3% |
84.7% |
|
77.7% |
83.3% |
|
Commercial
activity
SG Network, Private Banking and
Insurance
Average outstanding deposits of the SG Network
amounted to EUR 236 billion in Q3 24, up by +0.6% vs. the previous
quarter (-1% vs. Q3 23), with a continued rise in interest-bearing
deposits and financial savings.
The SG Network’s average loan outstandings
contracted by -5% vs. Q3 23 to EUR 195 billion. Outstanding loans
to corporate and professional clients were stable vs. Q3 23
(excluding government-guaranteed PGE loans), with the share of
medium to long-term loans increasing relative to Q2 24. Home loan
production continued its recovery (2.4x vs. Q3 23 and +15% vs. Q2
24).
The average loan to deposit ratio came to 82.5%
in Q3 24, down by -3.3 percentage points relative to
Q3 23.
Private Banking activities saw
their assets under management11 reach a new record of
EUR 154 billion in Q3 24, up by +8% vs. Q3 23. Net gathering stood
at EUR 5.9 billion in 9M 24, the net asset gathering pace (net new
money divided by AuM) has risen by +5.5% since the start of the
year. Net banking income stood at EUR 368 million over the quarter,
stable vs. Q3 23. Over 9M 24, net banking income came to EUR 1,121
million, a +1% increase vs. 9M 23.
Insurance, which covers
activities in and outside France, posted a very strong commercial
performance. Life insurance outstandings increased sharply by +10%
vs. Q3 23 to reach a record EUR 145 billion at end-September 2024.
The share of unit-linked products remained high at 40%. Gross life
insurance savings inflows amounted to EUR 3.6 billion in Q3 24, up
by +35% vs. Q3 23.
Personal protection and P&C premia were up
by +5% vs. Q3 23.
BoursoBank
BoursoBank registered almost 6.8 million clients
at end-September 2024, a +27% increase vs. Q3 23 (an increase of
around 1.4 million clients year on year). The pace of new client
acquisition (around 310,000 new clients in Q3 24) is fully in line
with the target of 7 million clients by the end of 2024. BoursoBank
can build on an active, loyal and high-quality client base. The
brokerage activity registered two million transactions, up by +18%
vs. Q3 23. Last, proof of the efficiency of the model and of the
very high client satisfaction level, the churn rate has remained
low at around 3% and below the market rate.
Average loan outstandings rose by +4,2% compared
to Q3 23, at EUR 15 billion in Q3 24.
Average outstanding savings including deposits
and financial savings were +13.8% higher vs. Q3 23 at EUR 63
billion. Deposits outstanding totalled EUR 38 billion at Q3 24,
posting another sharp increase of +16.2% vs. Q3 23. Life insurance
outstandings came to EUR 12 billion in Q3 24 and rose by +7.3% vs.
Q3 23 (o/w 47% unit-linked products, a +3.3 percentage points
increase vs. Q3 23). The activity continued to register strong
gross inflows over the quarter (+55% vs. Q3 23, around 53%
unit-linked products).
For the second quarter in a row, BoursoBank
recorded a positive contribution to Group net income in
Q3 24.
Net banking
income
Over the quarter, revenues came
to EUR 2,254 million, up +19% vs. Q3 23 and up +6% vs Q2 24. Net
interest income grew by +43% vs. Q3 23 (excluding PEL/CEL) and +19%
(EUR 169 million) vs. Q2 24. Fee income rose by +5.0% relative
to Q3 23.
Over 9M 24 revenues came to EUR
6,390 million, up by +4.9% vs. 9M 23. Net interest income excluding
PEL/CEL was up by +15.9% vs. 9M 23. Fee income increased by +1.7%
relative to 9M 23.
Operating
expenses
Over the quarter, operating
expenses came to EUR 1,585 million, down -1.4% vs. Q3 23. Operating
expenses for Q3 24 include EUR 12 million in transformation costs.
The cost-to-income ratio stood at 70.3% for Q3 24, improving by
more than +14 percentage points vs. Q3 23.
Over 9M 24, operating expenses
came to EUR 4,962 million (-2.2% vs. 9M 23). The cost-to-income
ratio stood at 77.7% and improved by +5.7 percentage points vs. 9M
23.
Cost of
risk
In Q3 24, the cost of risk
amounted to EUR 178 million or 30 basis points stable on Q2 24
(29 basis points).
Over 9M 24, the cost of risk
totalled EUR 597 million or 34 basis points.
Group net
income
Over the quarter, Group net
income totalled EUR 368 million. RONE stood at 9.4% in Q3 24.
Over 9M 24, Group net income
totalled EUR 631 million. RONE stood at 5.4% in 9M 24.
5. GLOBAL BANKING AND
INVESTOR SOLUTIONS
In EUR m |
Q3 24 |
Q3 23 |
Variation |
9M 24 |
9M 23 |
Change |
Net banking income |
2,422 |
2,309 |
+4.9% |
+5.2%* |
7,666 |
7,457 |
+2.8% |
+2.8%* |
Operating expenses |
(1,494) |
(1,478) |
+1.1% |
+1.3%* |
(4,898) |
(5,187) |
-5.6% |
-5.5%* |
Gross operating income |
928 |
831 |
+11.6% |
+12.0%* |
2,768 |
2,270 |
+21.9% |
+21.8%* |
Net cost of risk |
(27) |
(14) |
+95.3% |
x 2.0* |
(29) |
8 |
n/s |
n/s |
Operating income |
901 |
817 |
+10.2% |
+10.5%* |
2,739 |
2,278 |
+20.2% |
+20.0%* |
Reported Group net income |
699 |
645 |
+8.2% |
+8.5%* |
2,160 |
1,814 |
+19.1% |
+18.8%* |
RONE |
18.0% |
16.8% |
+0.0% |
+0.0%* |
19.0% |
15.6% |
+0.0% |
+0.0%* |
Cost to income |
61.7% |
64.0% |
+0.0% |
+0.0%* |
63.9% |
69.6% |
+0.0% |
+0.0%* |
Net banking
income
Global Banking and Investor
Solutions continued to deliver very strong performances,
posting revenues of EUR 2,422 million, up +4.9% versus Q3 23.
Over 9M 24, revenues climbed by
+2.8% vs. 9M 23 (EUR 7,666 million vs. EUR 7,457 million).
Global Markets and Investor
Services recorded a rise in revenues over the quarter vs.
Q3 23 of +7.6% to EUR 1,579 million. Over 9M 24, revenues totalled
EUR 5,063 million, i.e., a +3.1% increase vs. 9M 23. Growth
was mainly driven by Global Markets which recorded
revenues of EUR 1,410 million in Q3 24, up by +8.6% relative to Q3
23 amid a positive environment that was particularly conducive to
Equities. Over 9M 24, revenues totalled EUR 4,553 million, up by
+4.5% vs. 9M 23.
The Equities business again
delivered a solid performance, recording revenues of EUR 880
million in Q3 24, up by a strong +10.1% vs. Q3 23, notably on
the back of a very good performance from derivatives amid
favourable market conditions. This is the second best third quarter
ever. Over 9M 24, revenues increased sharply by +12.9% relative to
9M 23 to EUR 2,739 million.
Fixed Income and Currencies
registered a +6.1% increase in revenues to EUR 530 million in Q3
24, notably owing to robust demand for rates and forex flow
activities, particularly from US clients. Over 9M 24, revenues
decreased by -6.0% to EUR 1,814 million.
Securities Services’ revenues
were up +0.6% versus Q3 23 at EUR 169 million, but increased by
+9.9% excluding the impact of equity participations. The business
continued to reap the benefit of a positive fee generation trend
and robust momentum in private market and fund distribution. Over
9M 24, revenues were down by -8.2%, but rose by +2.1% excluding
equity participations. Assets under Custody and Assets under
Administration amounted to EUR 4,975 billion and EUR 614 billion,
respectively.
The Financing and Advisory
business posted revenues of EUR 843 million, stable versus Q3 23.
Over 9M 24, revenues totalled EUR 2,602 million, up by +2.3% vs. 9M
23.
The Global Banking and Advisory
business posted a -3.2% decline in revenues relative to Q3 23.
Securitised products again delivered a solid performance and
momentum was strong in the distribution activity. Financing
activities posted a good performance, albeit down on the high
baseline in Q3 23. Investment banking activities turned in
resilient performances. Over 9M 24, revenues dipped slightly by
-0.3% relative to 9M 23.
Global Transaction & Payment
Services again delivered a very robust performance
compared with Q3 23, posting an +9.0% increase in revenues,
driven by strong momentum in cash management and the correspondent
banking activities. Over 9M 24, revenues grew by +10.1%.
Operating
expenses
Operating expenses came to EUR 1,494
million over the quarter and included EUR 21 million in
transformation costs. Operating expenses rose by +1.1% compared
with Q3 23, equating to a cost-to-income ratio of 61.7% in Q3
24.
Over 9M 24, operating expenses
decreased by -5.6% compared with 9M 23 and the cost-to-income ratio
came to 63.9%.
Cost of
risk
Over the quarter, the cost of
risk was low at EUR 27 million, or 7 basis points vs. 3 basis
points in Q3 23.
Over 9M 24, the cost of risk
was EUR 29 million, or 2 basis points.
Group net
income
Group net income increased by +8.2% vs. Q3 23 to
EUR 699 million. Over 9M 24, Group net income rose
sharply by +19.1% to EUR 2,160 million.
Global Banking and Investor Solutions reported
high RONE of 18.0% for the quarter and
RONE of 19.0% for 9M 24.
6. MOBILITY,
INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES
In EURm |
Q3 24 |
Q3 23 |
Change |
|
9M 24 |
9M 23 |
Change |
Net banking income |
2,108 |
2,228 |
-5.4% |
-2.8%* |
|
6,403 |
6,491 |
-1.4% |
+1.8%* |
Operating expenses |
(1,221) |
(1,239) |
-1.4% |
+0.3%* |
|
(3,832) |
(3,479) |
+10.2% |
+12.7%* |
Gross operating income |
887 |
989 |
-10.4% |
-6.6%* |
|
2,570 |
3,013 |
-14.7% |
-10.9%* |
Net cost of risk |
(201) |
(175) |
+14.9% |
+18.1%* |
|
(572) |
(349) |
+63.7% |
+65.9%* |
Operating income |
685 |
814 |
-15.8% |
-12.0%* |
|
1,998 |
2,663 |
-25.0% |
-21.2%* |
Net profits or losses from other assets |
94 |
1 |
x 77.0 |
x 76.7* |
|
98 |
0 |
x 375.7 |
x 304.1 |
Non-controlling interests |
223 |
237 |
-6.1% |
-3.6%* |
|
623 |
674 |
-7.6% |
-7.8%* |
Reported Group net income |
367 |
377 |
-2.4% |
+3.1%* |
|
956 |
1,325 |
-27.8% |
-22.1%* |
RONE |
14.1% |
14.9% |
|
|
|
12.2% |
18.6% |
|
|
Cost to income |
57.9% |
55.6% |
|
|
|
59.9% |
53.6% |
|
|
(122)()
Commercial
activity
International Retail
Banking
International Retail Banking1
posted robust commercial momentum in Q3 24, with an increase in
loan outstandings of +4.2%* vs. Q3 23 (+1.8%, outstandings of EUR
68 billion in Q3 24) and growth of +4.1%* vs. Q3 23 (+1.2%,
outstandings of EUR 83 billion in Q3 24).
Activity in Europe was solid
across client segments for both entities. Loan outstandings
increased by +6.0%* vs. Q3 23 (+3.1% at current perimeter and
exchange rates, outstandings of EUR 43 billion in Q3 24), driven by
home loans and medium and long-term corporate loans in a lower
rates environment. Deposit outstandings increased by +4.6%* vs. Q3
23 (+1.9% at current perimeter and exchange rates, outstandings of
EUR 55 billion in Q3 24), mainly on interest-bearing products.
In Africa, Mediterranean Basin and
French Overseas Territories, loan outstandings totalled
EUR 25 billion in Q3 24 (+1.2%* vs. Q3 23, stable at
current perimeter and exchange rates) on back of a +5.6%* rise vs.
Q3 23 in sub-Saharan Africa (stable vs. Q3 23 at current perimeter
and exchange rates). Deposit outstandings totalled EUR 27 billion
at Q3 24. They increased by +3.0%* vs. Q3 23 (stable at current
perimeter and exchange rates) across all client segments in
Africa.
Mobility and Financial
Services
Overall, Mobility and Financial
Services maintained a good commercial performance.
Ayvens’ earning assets totalled EUR 53.1 billion
at end-September 2024, a +5.8% increase vs.
end-September 2023.
The Consumer Finance business
posted loans outstanding of EUR 23 billion for Q3 24, down -4.5%
vs. Q3 23 in a still uncertain environment.
Equipment Finance posted
outstandings of EUR 15 billion in Q3 24, the same level as in Q3
23.
Net banking
income
Over the quarter,
Mobility, International Retail Banking and
Financial Services’ revenues totalled EUR 2,108 million, a
decrease of -2.8%* vs. Q3 23 (-5.4% at current perimeter and
exchange rates).
Over 9M 24, revenues came to
EUR 6,403 million, up slightly by +1.8%* vs. 9M 23 (-1.4% at
current perimeter and exchange rates).
International Retail Banking
recorded a solid performance over the quarter, with a net banking
income of EUR 1,058 million, up by +5.1%* vs. Q3 23 (+1.4% at
current perimeter and exchange rates). Over 9M 24, revenues
totalled EUR 3,131 million, a +4.0%* increase vs. 9M 23 (stable at
current perimeter and exchange rates).
Europe recorded revenues of EUR
506 million in Q3 24, an increase for both entities (+3.0%* vs.
Q3 23, stable at current perimeter and exchange rates).
The Africa, Mediterranean Basin and
French Overseas Territories region continued to post
robust commercial momentum with revenues of EUR 552 million in Q3
24. These increased by +7.2%* vs. Q3 23 (+2.8% at current perimeter
and exchange rates), driven by a significant rise in net interest
income in Africa (+10.5%* vs. Q3 23).
In Q3 24, Mobility and Financial
Services’ revenues decreased by -11.4% vs. Q3 23 to EUR
1,049 million. Over the first nine months of 2024, they
contracted by -2.9% to EUR 3,271 million.
Ayvens’ net banking income
stood at EUR 732 million, a decrease of -14,8% in Q3 24 vs. Q3 23
and of
-4,0% restated from non-recurring items13. The amount of
underlying margins was stable vs. Q3 23 at around EUR 690
million1. The average used car sale result per vehicle
(UCS) continued to normalise but remained at a high level of
EUR 1,4201 per unit in Q3 24 vs. EUR
1,4801 in Q2 24.
Consumer Finance activities,
down by -3.5% vs. Q3 23, have stabilised since Q2 24 with the
business posting net banking income of EUR 218 million in Q3 24.
Equipment Finance revenues were also stable vs. Q3
23 (EUR 99 million in Q3 24).
Operating
expenses
Over the quarter, operating
expenses were stable (+0.3%* vs. Q3 23, -1.4%) at EUR 1,221 million
and included EUR 29 million in transformation costs. The
cost-to-income ratio came to 57.9% in Q3 24.
Over 9M 24, operating expenses
totalled EUR 3,832 million, up +12.7%* vs. 9M 23 (+10.2% at current
perimeter and exchange rates). They include around EUR 148 million
of transformation charges.
In a context of a strong transformation,
International Retail Banking costs rose by +3.4%*
vs. Q3 23 (stable at current perimeter and exchange rates, EUR 567
million in Q3 24), notably due to the impact of a new banking tax
in Romania which entered into force in January 2024.
The Mobility and Financial
Services business recorded a decrease in operating
expenses compared to Q3 23 (-2.4% vs. Q3 23, EUR 654 million in Q3
24).
Cost of
risk
Over the quarter, the cost of
risk normalised at 48 basis points (or EUR 201 million).
Over 9M 24, the cost of risk
stood at 45 basis points vs. 32 basis points in 9M 23.
Group net
income
Over the quarter, Group net
income came to EUR 367 million, down -2.4% vs. Q3 23. RONE stood at
14.1% in Q3 24. RONE was 21.4% for International Retail Banking
(positive impact on Group net income of around EUR 40 million
related to the sale of KB head office premises), and 9.2% in
Mobility and Financial Services in Q3 24.
Over 9M 24, Group net income
came to EUR 956 million, down by -27.8% vs. 9M 23. RONE stood at
12.2% for 9M 24. RONE was 16.4% in International Retail Banking,
and 9.5% in Mobility and Financial Services in 9M 24.
7. CORPORATE
CENTRE
In EURm |
Q3 24 |
Q3 23 |
Change |
9M 24 |
9M 23 |
Change |
Net banking income |
54 |
(249) |
n/s |
n/s |
(291) |
(891) |
+67.3% |
+67.8%* |
Operating expenses |
(27) |
(35) |
-22.8% |
-25.8%* |
(185) |
(119) |
+55.2% |
+48.2%* |
Gross operating income |
27 |
(283) |
n/s |
n/s |
(476) |
(1,010) |
+52.9% |
+54.2%* |
Net cost of risk |
1 |
17 |
+95.9% |
+95.9%* |
6 |
19 |
+70.6% |
+70.6%* |
Net profits or losses from other assets |
(73) |
4 |
n/s |
n/s |
(172) |
(96) |
-78.9% |
-79.1%* |
Income tax |
(26) |
(214) |
-87.7% |
-87.5%* |
118 |
(85) |
n/s |
n/s |
Reported Group net income |
(67) |
(836) |
+92.0% |
+92.2%* |
(587) |
(1,582) |
+62.9% |
+63.7%* |
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, as well as several costs incurred by the
Group that are not re-invoiced to the businesses.
Net banking
income
Over the quarter, the
Corporate Centre’s net banking income totalled EUR +54
million vs. EUR -249 million in Q3 23. It
includes the booking of exceptional proceeds received of
approximately EUR 0.3 billion14.
Operating
expenses
Over the quarter,
operating expenses totalled EUR 27 million vs. EUR
35 million in Q3 23.
Net losses from other
assets
Pursuant notably to the application of IFRS 5,
the Group booked in Q3 24 various impacts from ongoing disposals of
assets.
Group net
income
Over the quarter, the
Corporate Centre’s Group net income totalled EUR -67
million vs. EUR -836 million in Q3 23.
8. 2024 AND 2025
FINANCIAL CALENDAR
2024 and 2025 Financial communication calendar
|
February 6th, 2025 Fourth quarter and full year 2024
results
April 30th, 2025 First quarter 2025 results
May 20th, 2025 2024 Combined General Meeting |
The Alternative Performance Measures, notably the notions
of net banking income for the pillars, operating expenses, cost of
risk in basis points, ROE, ROTE, RONE, net assets and tangible net
assets 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 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 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 BY CORE
BUSINESS
In EURm |
Q3 24 |
Q3 23 |
Variation |
9M 24 |
9M 23 |
Variation |
French Retail, Private Banking and Insurance |
368 |
109 |
x 3.4 |
631 |
506 |
+24.8% |
Global Banking and Investor Solutions |
699 |
645 |
+8.2% |
2,160 |
1,814 |
+19.1% |
Mobility, International Retail Banking & Financial
Services |
367 |
377 |
-2.4% |
956 |
1,325 |
-27.8% |
Core Businesses |
1,434 |
1,131 |
+26.7% |
3,747 |
3,644 |
+2.8% |
Corporate Centre |
(67) |
(836) |
+92.0% |
(587) |
(1,582) |
+62.9% |
Group |
1,367 |
295 |
x 4.6 |
3,160 |
2,062 |
+53.2% |
MAIN EXCEPTIONAL
ITEMS
In EURm |
Q3 24 |
Q3 23 |
9M 24 |
9M 23 |
Net Banking Income - Total exceptional items |
287 |
0 |
287 |
(240) |
One-off legacy items - Corporate Centre |
0 |
0 |
0 |
(240) |
Exceptional proceeds received - Corporate Centre |
287 |
0 |
287 |
0 |
|
|
|
|
|
Operating expenses - Total one-off items and transformation
charges |
(62) |
(145) |
(538) |
(662) |
Transformation charges |
(62) |
(145) |
(538) |
(627) |
Of which French Retail, Private Banking and Insurance |
(12) |
(46) |
(139) |
(330) |
Of which Global Banking & Investor Solutions |
(21) |
(41) |
(204) |
(102) |
Of which Mobility, International Retail Banking & Financial
Services |
(29) |
(58) |
(148) |
(195) |
Of which Corporate Centre |
0 |
0 |
(47) |
0 |
One-off items |
0 |
0 |
0 |
(35) |
Of which French Retail, Private Banking and Insurance |
0 |
0 |
0 |
60 |
Of which Global Banking & Investor Solutions |
0 |
0 |
0 |
(95) |
|
|
|
|
|
Other one-off items - Total |
13 |
(625) |
13 |
(704) |
Net profits or losses from other assets |
13 |
(17) |
13 |
(96) |
Of which Mobility, International Retail Banking and Financial
Services |
86 |
0 |
86 |
0 |
Of which Corporate Centre |
(73) |
(17) |
(73) |
(96) |
Goodwill impairment - Corporate Centre |
0 |
(338) |
0 |
(338) |
Provision of Deferred Tax Assets - Corporate Centre |
0 |
(270) |
0 |
(270) |
CONSOLIDATED BALANCE
SHEET
In EUR m |
|
30.09.2024 |
31.12.2023 |
Cash, due from central banks |
|
199,140 |
223,048 |
Financial assets at fair value through profit or loss |
|
528,259 |
495,882 |
Hedging derivatives |
|
8,265 |
10,585 |
Financial assets at fair value through other comprehensive
income |
|
93,795 |
90,894 |
Securities at amortised cost |
|
29,908 |
28,147 |
Due from banks at amortised cost |
|
87,153 |
77,879 |
Customer loans at amortised cost |
|
446,576 |
485,449 |
Revaluation differences on portfolios hedged against interest rate
risk |
|
(330) |
(433) |
Insurance and reinsurance contracts assets |
|
438 |
459 |
Tax assets |
|
4,535 |
4,717 |
Other assets |
|
75,523 |
69,765 |
Non-current assets held for sale |
|
39,940 |
1,763 |
Investments accounted for using the equity method |
|
384 |
227 |
Tangible and intangible fixed assets |
|
60,970 |
60,714 |
Goodwill |
|
5,031 |
4,949 |
Total |
|
1,579,587 |
1,554,045 |
In EUR m |
|
30.09.2024 |
31.12.2023 |
Due to central banks |
|
10,134 |
9,718 |
Financial liabilities at fair value through profit or loss |
|
391,788 |
375,584 |
Hedging derivatives |
|
14,621 |
18,708 |
Debt securities issued |
|
162,997 |
160,506 |
Due to banks |
|
105,320 |
117,847 |
Customer deposits |
|
526,100 |
541,677 |
Revaluation differences on portfolios hedged
against interest rate risk |
|
(5,074) |
(5,857) |
Tax liabilities |
|
2,516 |
2,402 |
Other liabilities |
|
93,909 |
93,658 |
Non-current liabilities held for sale |
|
29,802 |
1,703 |
Insurance contracts related liabilities |
|
150,295 |
141,723 |
Provisions |
|
3,954 |
4,235 |
Subordinated debts |
|
15,985 |
15,894 |
Total liabilities |
|
1,502,347 |
1,477,798 |
Shareholder's equity |
|
- |
- |
Shareholders' equity, Group share |
|
- |
- |
Issued common stocks and capital reserves |
|
21,166 |
21,186 |
Other equity instruments |
|
8,918 |
8,924 |
Retained earnings |
|
34,074 |
32,891 |
Net income |
|
3,160 |
2,493 |
Sub-total |
|
67,318 |
65,494 |
Unrealised or deferred capital gains and losses |
|
128 |
481 |
Sub-total equity, Group share |
|
67,446 |
65,975 |
Non-controlling interests |
|
9,794 |
10,272 |
Total equity |
|
77,240 |
76,247 |
Total |
|
1,579,587 |
1,554,045 |
10. APPENDIX 2:
METHODOLOGY
1 –The financial information presented
for the third quarter and nine-month 2024 was examined by the Board
of Directors on October
30th, 2024
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 42 of Societe Generale’s 2024 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 5 to the Group’s consolidated
financial statements as at December 31st, 2023. The term
“costs” is also used to refer to Operating Expenses. The
Cost/Income Ratio is defined on page 42 of Societe Generale’s 2024
Universal Registration Document.
4 - Cost of risk in basis points,
coverage ratio for doubtful outstandings
The cost of risk is defined on pages 43 and 770
of Societe Generale’s 2024 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 24 |
Q3 23 |
9M 24 |
9M 23 |
French Retail, Private Banking and Insurance
|
Net Cost Of Risk |
178 |
144 |
597 |
342 |
Gross loan Outstandings |
234,420 |
243,740 |
236,286 |
248,757 |
Cost of Risk in bp |
30 |
24 |
34 |
18 |
Global Banking and Investor Solutions
|
Net Cost Of Risk |
27 |
14 |
29 |
(8) |
Gross loan Outstandings |
163,160 |
167,057 |
163,482 |
170,165 |
Cost of Risk in bp |
7 |
3 |
2 |
(1) |
Mobility, International Retail Banking & Financial
Services
|
Net Cost Of Risk |
201 |
175 |
572 |
349 |
Gross loan Outstandings |
168,182 |
162,873 |
167,680 |
145,227 |
Cost of Risk in bp |
48 |
43 |
45 |
32 |
Corporate Centre
|
Net Cost Of Risk |
(1) |
(17) |
(6) |
(19) |
Gross loan Outstandings |
25,121 |
22,681 |
24,356 |
19,364 |
Cost of Risk in bp |
(1) |
(31) |
(3) |
(13) |
Societe Generale Group
|
Net Cost Of Risk |
406 |
316 |
1,192 |
664 |
Gross loan Outstandings |
590,882 |
596,350 |
591,804 |
583,512 |
Cost of Risk in bp |
27 |
21 |
27 |
15 |
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 pages 43 and 44 of Societe Generale’s
2024 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 44 of Societe Generale’s 2024
Universal Registration Document.
Group net income used for the ratio numerator is the accounting
Group net income adjusted for “Interest paid and payable to holders
if deeply subordinated notes and undated subordinated notes, issue
premium amortisation”. For ROTE, income is also restated for
goodwill impairment.
Details of the corrections made to the accounting 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 24 |
Q3 23 |
9M 24 |
9M 23 |
Shareholders' equity Group share |
67,446 |
68,077 |
67,446 |
68,077 |
Deeply subordinated and undated subordinated notes |
(8,955) |
(11,054) |
(8,955) |
(11,054) |
Interest payable to holders of deeply & undated subordinated
notes, issue premium amortisation(1) |
(45) |
(102) |
(45) |
(102) |
OCI excluding conversion reserves |
560 |
853 |
560 |
853 |
Distribution provision(2) |
(1,319) |
(1,059) |
(1,319) |
(1,059) |
Distribution N-1 to be paid |
- |
- |
- |
- |
ROE equity end-of-period |
57,687 |
56,715 |
57,687 |
56,715 |
Average ROE equity |
57,368 |
56,572 |
56,896 |
56,326 |
Average Goodwill(3) |
(4,160) |
(4,279) |
(4,079) |
(3,991) |
Average Intangible Assets |
(2,906) |
(3,390) |
(2,933) |
(3,128) |
Average ROTE equity |
50,302 |
48,903 |
49,884 |
49,207 |
|
|
|
|
|
Group net Income |
1,367 |
295 |
3,160 |
2,063 |
Interest paid and payable to holders of deeply subordinated notes
and undated subordinated notes, issue premium amortisation |
(165) |
(165) |
(521) |
(544) |
Cancellation of goodwill impairment |
- |
338 |
- |
338 |
Adjusted Group net Income |
1,202 |
468 |
2,639 |
1,858 |
ROTE |
9.6% |
3.8% |
7.1% |
5.0% |
151617
RONE calculation: Average capital
allocated to Core Businesses (in EURm)
In EURm |
Q3 24 |
Q3 23 |
Change |
9M 24 |
9M 23 |
Change |
French Retail , Private Banking and Insurance |
15,695 |
15,564 |
+0.8% |
15,602 |
15,457 |
+0.9% |
Global Banking and Investor Solutions |
15,490 |
15,324 |
+1.1% |
15,149 |
15,485 |
-2.2% |
Mobility, International Retail Banking & Financial
Services |
10,433 |
10,136 |
+2.9% |
10,425 |
9,505 |
+9.7% |
Core Businesses |
41,618 |
41,024 |
+1.4% |
41,177 |
40,448 |
+1.8% |
Corporate Center |
15,750 |
15,548 |
+1.3% |
15,719 |
15,878 |
-1.0% |
Group |
57,368 |
56,572 |
+1.4% |
56,896 |
56,326 |
+1.0% |
6 - Net assets and tangible net
assets
Net assets and tangible net assets are defined
in the methodology, page 45 of the Group’s 2024 Universal
Registration Document. The items used to calculate them are
presented below:
1819
End of period (in EURm) |
9M 24 |
H1 24 |
2023 |
Shareholders' equity Group share |
67,446 |
66,829 |
65,975 |
Deeply subordinated and undated subordinated notes |
(8,955) |
(9,747) |
(9,095) |
Interest of deeply & undated subordinated notes, issue premium
amortisation(1) |
(45) |
(19) |
(21) |
Book value of own shares in trading portfolio |
97 |
96 |
36 |
Net Asset Value |
58,543 |
57,159 |
56,895 |
Goodwill(2) |
(4,178) |
(4,143) |
(4,008) |
Intangible Assets |
(2,895) |
(2,917) |
(2,954) |
Net Tangible Asset Value |
51,471 |
50,099 |
49,933 |
|
|
|
|
Number of shares used to calculate
NAPS(3) |
796,498 |
787,442 |
796,244 |
Net Asset Value per Share |
73.5 |
72.6 |
71.5 |
Net Tangible Asset Value per Share |
64.6 |
63.6 |
62.7 |
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 2024 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.
The calculation of Earnings Per Share is described in the following
table:
Average number of shares (thousands) |
9M 24 |
H1 24 |
2023 |
Existing shares |
802,314 |
802,980 |
818,008 |
Deductions |
|
|
|
Shares allocated to cover stock option plans and free shares
awarded to staff |
4,548 |
4,791 |
6,802 |
Other own shares and treasury shares |
2,930 |
3,907 |
11,891 |
Number of shares used to calculate
EPS(4) |
794,836 |
794,282 |
799,315 |
Group net Income (in EUR m) |
3,160 |
1,793 |
2,493 |
Interest on deeply subordinated notes and undated subordinated
notes (in EUR m) |
(521) |
(356) |
(759) |
Adjusted Group net income (in EUR m) |
2,638 |
1,437 |
1,735 |
EPS (in EUR) |
3.32 |
1.81 |
2.17 |
20
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.
9 – 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.
Societe Generale
Societe Generale is a top tier European Bank with
more than 126,000 employees serving about 25 million clients in 65
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.
- Mobility,
International Retail Banking and Financial 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).
For more information, you can follow us on
Twitter/X @societegenerale or visit our website
societegenerale.com. or visit our website societegenerale.com.
Asterisks* in the document refer to data at
constant perimeter and exchange rates
1 +5.8% excluding exceptional proceeds recorded in Corporate Centre
(~EUR 0.3bn)
2 Including IFRS 9 phasing, proforma including Q3 24 results
3 Based on a pay-out ratio of 50% of the Group net income, at the
high-end of the 40%-50% pay-out ratio, as per regulation, restated
from non-cash items and after deduction of interest on deeply
subordinated notes and undated subordinated notes
4 As stated in Q2 24 results press release
5 Ratio calculated according to European Banking Authority (EBA)
methodology published on 16 July 2019
6 Ratio excluding loans outstanding of companies
currently being disposed of in compliance with IFRS 5
7 Ratio of S3 provisions, guarantees and collaterals
over gross outstanding non-performing loans
8 Target: -80% upstream exposure reduction by 2030 vs. 2019, with
an intermediary step in 2025 at -50% vs. 2019
9 Only the Societe Generale participation is taken into account
10 Including IFRS 9 phasing, proforma including Q3 24 results
11 France and International, including Switzerland and United
Kingdom
1 Including entities reported under IFRS 5
1 Excluding non-recurring items on either margins or UCS (mainly
linked to fleet revaluation at EUR 114m in Q3 23 vs EUR 0m in Q3
24, the net impact related to prospective depreciation and Purchase
Price Allocation for ~EUR 35m vs. Q3 23, hyperinflation in Turkey
at EUR 46m in Q3 23 vs. EUR 10m in Q3 24 and MtM of derivatives at
EUR -82m in Q3 23 vs. EUR -55m in Q3 24)
14 As stated in Q2 24 results press release
15 Interest net of tax
16 The dividend to be paid is calculated based on a pay-out ratio
of 50%, restated from non-cash items and after deduction of
interest on deeply subordinated notes and on undated subordinated
notes
17 Excluding goodwill arising from non-controlling interests
18 Interest net of tax
19 Excluding goodwill arising from non-controlling interests
20 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)
4 The number of shares considered is the average number of ordinary
shares outstanding during the period, excluding treasury shares and
buybacks, but including the trading shares held by the Group.
-
Societe-Generale-Q3-2024-Financial-Results-Press-release-en
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