Societe Generale : Q3 2020 Financial Results Presentation

SOCIETE GENERALE GROUP RESULTS

3rd quarter and nine months 2020 | 05.11.2020

DISCLAIMER

This presentation 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, 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 Universal Registration Document filed with the French Autorité des Marchés Financiers.
  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.
  The financial information presented for the quarter and nine months ending 30 September 2020 was reviewed by the Board of Directors on 4 November 2020 and has been prepared in accordance with IFRS as adopted in the European Union and applicable at this date. This information has not been audited.

3RD QUARTER AND NINE MONTHS 2020 RESULTS

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1 INTRODUCTION

Q3 20 RESULTS: REBOUND VS. Q2 20

REBOUND IN	FURTHER
BUSINESS	DECREASE
PERFORMANCE	IN COSTS
Group Revenues up	Continued decrease in costs
+11.4%*(+9.7%) in Q3 20 vs. Q2 20	-5.6%*(-8.2%) in Q3 20 vs. Q3 19
+0.5%* (-2.9%) in Q3 20 vs. Q3 19
Rebound in all businesses	Positive jaws effect
supported by recovery in activity in
retail and financial services activities	Increase in gross operating
and normalising performance in	income (+14.6%* in Q3 20 vs.
Global Markets	Q3 19)

SIGNIFICANT

DECREASE IN COST OF RISK

40bp in Q3 20 67bp in 9M 20

Strong quality of asset portfolio NPL ratio at 3.4%

STRONG CAPITAL

AND LIQUIDITY

POSITION

CET 1 level at 13.2%(1)

Strong balance sheet and liquidity profile

Provision for dividend(2)

EUR 0.21 per share

2020 underlying	2020 cost of risk expected	CET1 ratio expected
operating expenses	at around 70bp	above 12% at end-2020
expected at EUR ~16.5bn		assuming full TRIM
		regulatory impact

1. Including +19bp of IFRS 9 phasing and ~+10bp impact of closing of SG Finans dated 1 October 2020
2. Based on 50% of underlying Group net income minus interests on deeply subordinated notes and undated subordinated notes for 9M 20

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