Q2 & H1 2019 Results

Q2 19: FURTHER SUBSTANTIAL IMPROVEMENT IN THE LEVEL OF CAPITAL (CET1 RATIO AT 12.0%)
RESILIENT PROFITABILITY WITH A ROTE(1) AT 9.7%

HIGHLIGHTS AND KEY FINANCIAL DATA FOR Q2 AND H1 2019

• Increase in CET1 of +52 basis points to 12.0% (+106bp in H1 19, >200bp above the MDA)
• Underlying Group net income of EUR 1,247 million(1,2) in Q2 19 and EUR 2,332 million(1,2) in H1 19
• Group underlying ROTE at 9.7% in Q2 19 and 9.1% in H1 19
• Resilient business revenues (-0.9%* vs. Q2 18 and -0.5%* vs. H1 18): good trend in French Retail Banking (+2.1% excluding PEL/CEL vs. Q2 18) and International Retail Banking & Financial Services (+5.7%* vs. Q2 18)
• Operating expenses contained at EUR 4,270 million in Q2 19 (-3.0% vs. Q2 18) and EUR 9,059 million in H1 19 (-0.8% vs. H1 18)
• Low cost of risk at 25 basis points in Q2 19 and 23 basis points in H1 19
• Continued refocusing of the Group: finalisation of the disposal of Eurobank with an impact of +8 basis points on the CET1 ratio in Q2 19. Cumulative impact of around +47 basis points on the CET1 ratio of disposals announced to date
• Adaptation of the operational set-up in Global Banking & Investor Solutions in the execution phase.

Fréderic Oudéa, the Group’s Chief Executive Officer, commented:

“Societe Generale has provided further evidence of the successful execution of its strategic plan with two priority financial objectives: increasing its level of capital and improving profitability. In particular, we achieved our Core Equity Tier 1 target of 12% in H1 19.

There was further confirmation of the positive trends observed in the previous quarter in French Retail Banking and International Retail Banking & Financial Services: French Retail Banking consolidated the improving trend in its revenues while International Retail Banking & Financial Services continued to enjoy robust growth and profitability. Only a few months after it was announced, Global Banking & Investor Solutions’ adaptation plan has entered the execution phase. A committed and responsible player, the Group has reaffirmed its coal withdrawal strategy, with the strengthening of its sector policy and its commitments regarding the decarbonisation of maritime transport. It has thereby confirmed its contribution to the positive transformation of our economies”.

The footnote * in this document corresponds to data adjusted for changes in Group structure and at constant exchange rates.
(1) Underlying data. See methodology note 5 for the transition from accounting data to underlying data.
(2) After restatement in accordance with the amendment to IAS 12