Quarterly Financial Information Q2 2018

Highlights

1.0%⁽¹⁾ increase in Group revenues in Q2 18 (+2.3% when adjusted for changes in Group structure and at constant exchange rates)

• French Retail Banking: slight decline in revenues vs. Q2 17, still impacted by the low interest rate environment, revenues expected to be slightly lower in 2018 (between -1% and -2%)
• International Retail Banking & Financial Services: solid performance in all geographical regions, in a buoyant interest rate environment in non-eurozone countries
• Global Banking & Investor Solutions: resilient revenues in Market activities and very dynamic Financing & Advisory activities, origination business at a high level

Disciplined cost management

• A year of investment in French Retail Banking
• Positive jaws effect in International Retail Banking & Financial Services
• Lower cost base in Global Banking & Investor Solutions

Low cost of risk, thanks to very disciplined risk management (14bp vs. 15bp in Q2 17)  

Underlying ROTE of 11.2%

Progress on the Group’s refocusing programme

Key Financial data

• Q2 18 revenues⁽¹⁾: EUR 6,454m (+1.0% vs. Q2 17); H1 18: EUR 12,748m (-0.7% vs. H1 17) 
• Q2 18 operating expenses⁽¹⁾: EUR 4,370m (+1.3% vs. Q2 17); H1 18: EUR 8,594m (+1.1%
  vs. H1 17) 
• Q2 18 Group net income⁽¹⁾: EUR 1,265m (+8.6% vs. Q2 17); H1 18: EUR 2,469m (-3.2%
  vs. H1 17)
• Q2 18 Group book net income: EUR 1,156m (+9.3% vs. Q2 17); H1 18: EUR 2,006m (+11.1% vs. H1 17)
• CET1 ratio: 11.1%

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

“Societe Generale posted good results and an increase in profitability in Q2 18 due to a solid performance by all the businesses, disciplined cost management and good risk control. The Group also carried out several strategic transactions contributing to the refocusing of its business model around its core franchises, with the signing of an agreement to acquire Commerzbank’s Equity Markets and Commodities operations and the disposal of activities not having critical mass or insufficiently synergistic. These developments are perfectly in keeping with the implementation of the new strategic plan “Transform to Grow” to which we are fully committed, and the results demonstrate that our diversified and value-creating business choices enable the Group to engage in a profitable and sustainable growth momentum”.

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.