Quarterly Financial Information, Q1 2018

Q1 18: Dynamic performance in retail banking,
lower revenues in market activities
Q1 18 underlying rote: 10.9%

HIGHLIGHTS

Dynamic commercial performance in Retail Banking 

• French Retail Banking revenues still impacted by the low interest rate environment, but expected to stabilise in 2018
• Revenue growth in International Retail Banking & Financial Services

Lower revenues in Global Banking & Investor Solutions, impacted in particular by a weaker dollar

• Lower revenues in market activities versus a high Q1 17 comparison base
• Stable* performance by Financing & Advisory 

Cost base under control (underlying operating expenses excluding increase in the SRF up 0.5%)

• Acceleration in the transformation in French Retail Banking
• Positive jaws effect in International Retail Banking & Financial Services
• Stable cost base in Global Banking & Investor Solutions

Still very low cost of risk (18bp vs. 24bp in Q1 17)  

Underlying ROTE of 10.9%

KEY FINANCIAL DATA 

Revenues(1): EUR 6,294m (-2.5% vs. Q1 17)
Operating expenses(1): EUR -4,223m (+1.0% vs. Q1 17) 
Underlying net income(1): EUR 1,204m (-13.5% vs. Q1 17)
Book net income: EUR 850m (+13.8% vs. Q1 17)
CET1 ratio: 11.2%
 

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

“The results posted by the Societe Generale Group for Q1 2018 and at the start of the implementation of the 2018-2020 “Transform to Grow” strategic plan are generally in line with our strategic ambitions. Commercial performances are solid for the majority of our businesses, particularly in retail banking, and despite the mixed trend in the different market activities, the Group generated very encouraging underlying profitability. With a renewed General Management team, the Group is more confident than ever of its ability to successfully implement all the current transformation projects and meet its strategic and financial objectives.”

The footnote * in this document is specified below:
* When 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.