Societe Generale : Fourth quarter & Full year 2020 results
February 10, 2021 at 01:21 am EST
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Q4 20: Confirmation of the improvement of the commercial and financial performances Resilience of revenues in an environment still marked by the crisis (+1.6%* vs. Q3 20, -2.3%* vs. Q4 19) Continued discipline in cost management (-3.0%(1)* vs. Q4 19) with a positive jaws effect Cost of risk at 54 basis points resulting from the very good performance of the loan portfolio while including prudent provisioning Underlying Group net income of EUR 631m (EUR 470m on a reported basis)
2020: Responsible management of the crisis, resilience of the businesses and solidity of the balance sheet Ongoing support for customers, exceptional mobilisation of employees Underlying Group net income of EUR 1.4bn (reported result EUR -258m) Underlying operating expenses of EUR 16.5bn([1]) (-5.2%(1) vs. 2019) Cost of risk contained at 64 basis points (including EUR 1.4bn of provisioning on performing loans, i.e. 41% of the total) Disciplined capital management: CET1 ratio at 13.4%(2), around 440 basis points above the regulatory requirement) Payment of a cash dividend calculated in accordance with the maximum authorised by the European Central Bank (ECB) recommendation: EUR 0.55 per share Share buy-back programme, in Q4 21, for an amount equivalent to the amount assigned to the dividend payment (around EUR 470m, i.e. an impact of around 13 basis points on the Group's CET1 ratio), subject to the non-renewal of the ECB's recommendation and the authorisation for its implementation
2021 Priority: Disciplined execution of the strategic roadmap
First year of preparation of the merger of the Societe Generale and Crédit du Nord networks
Finalisation of the repositioning of Global Markets
Ramping up of growth drivers
Further development of Corporate Social Responsibility dynamics
Increased operational efficiency efforts mainly through the digitalisation of processes
Frédéric Oudéa, the Group's Chief Executive Officer, commented: 'The Q4 results provide further confirmation of the rebound in our businesses observed in Q3 after a beginning of the year marked by the impacts of the COVID crisis. Confident in the quality of our franchises and our balance sheet, drawing on the exceptional commitment of our teams, in H2 we defined ambitious and value-creating strategic trajectories for our businesses, demonstrating our ability to adapt and transform in a durably more uncertain environment. We are therefore entering 2021 with confidence and determination with, as a priority, the execution of our strategic roadmap. Consistent with our raison d'être, we will continue to support our customers in all the transformations accelerated by this crisis, whether they concern the growing use of digital technologies or increased attention to corporate social responsibility issues.'
(1) Underlying data (see methodology note No. 5 for the transition from accounting data to underlying data)
(2) Phased-in ratio ; fully-loaded ratio of 13.2%
The footnote * in this document corresponds to data adjusted for changes in Group Structure and at constant exchange rates
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Société Générale SA published this content on 10 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 February 2021 06:20:02 UTC.
Société Générale is one of the largest French banking groups. Net interest income breaks down by activity as follows:
- financing and investment banking (36.8%): specialized financing (for acquisitions, projects, etc.), activity on the stock, interest rate, currency exchange, and raw material markets, brokerage operations, merger-acquisition consulting, commercial banking activities, etc.;
- retail banking in France (30.7%; SG). The group also develops asset management and private banking activities (EUR 143 billion in assets under management in 2023), and provides online banking and online brokerage services (Boursorama Banque) as well as an economic and financial information Website (boursorama.com);
- provision of specialized financial and insurance services (16.5%): consumer loan, leasing, management of car fleets, professional equipment financing and insurance;
- international retail banking (16%).
At the end of 2023, Société Générale managed EUR 533.8 billion in current deposits and EUR 485.4 billion in current credits.
Net interest income is distributed geographically as follows: France (40.2%), Europe (37.4%), the Americas (8.3%), Africa (8%) and Asia/Oceania (6.1%).