Financial results Q1 2023
SOLID RESULTS AND FUNDAMENTALS
Robust business performance driven by strong growth at Boursorama, ALD and International Retail Banking, and an excellent contribution by Global Banking and Investor Solutions, while French Retail Banking has been temporarily impacted by a decrease in the net interest margin
Group Revenues down -3.8%* under IFRS 17 vs. Q1 22 with business revenues up by +0.3%* vs. Q1 22
Underlying cost-to-income ratio, excluding contribution to the Single Resolution Fund, at 60.5%
Low cost of risk at 13 basis points in Q1 23, with limited defaults and a stable stock of provisions for performing loans of EUR 3.8 billion at end-March 2023; cost of risk for 2023 expected below 30 basis points
Underlying Group net income of EUR 1.5 billion(1) (EUR 868 million on a reported basis, up +5.7% vs. Q1 22)
Underlying profitability (ROTE) at 10.7%(1)
ROBUST BALANCE SHEET AND LIQUIDITY PROFILE
CET 1 ratio of 13.5%(2) at end-March 2023, around 410 basis points above the regulatory requirement, approval by the ECB of the 2022 share buy-back programme for around EUR 440 million
Liquidity Coverage Ratio up by a sharp increase at 171% at end Q1 23 owing to a 0.7% increase in deposits over the quarter and liquidity reserves strengthened to EUR 296 billion
2023 long-term funding programme, more than 70% completed
CONTINUED ORDERLY EXECUTION OF STRATEGIC INITIATIVES
Merger between the retail banking networks in France: successful first IT migration in March, according to schedule. Second IT migration planned for 13 and 14 May 2023
Growth of Boursorama: profitability breakeven reached in Q1 23 amid durably robust growth in client’s acquisition
Acquisition of LeasePlan by ALD: agreement signed by ALD to sell six subsidiaries. ALD’s Extraordinary General Meeting to be held on 22 May 2023
Creation of Bernstein: a top-tier global equity research and cash equity franchise, signature of the acquisition agreement with AllianceBernstein
Fréderic Oudéa, the Group’s Chief Executive Officer, commented:
“Amid a persistently uncertain and complex economic and financial environment, Societe Generale has posted again this quarter solid commercial performances and results which confirm the quality of the Group’s franchises and are based on sound cost and risk management. The strength of the balance sheet is confirmed in every aspect, capital, liquidity and the quality of the loan portfolio. We have also fully achieved some very important milestones to renew the Group’s business model following the successful execution of major strategic projects, such as the creation of our new retail bank SG in France, continued growth at Boursorama and the planned closing of the LeasePlan acquisition by ALD to create a global leader in sustainable mobility. These unprecedented and strongly value-creating projects will help the Group meet its sustainable profitability targets. On the eve of our managerial transition, I would like to express my warmest gratitude to all the employees of the Group for their tremendous support and for their extraordinary contribution to the growth of our company.”
(1) Underlying data (see Methodology note No. 5 for the transition from accounting data to underlying data), (2) Including IFRS 9 phasing , 13.4% fully-loaded
Asterisks* in the document refer to data at constant scope and exchange rates
NB: 2022 data in this document was restated, in compliance with IFRS 17 and IFRS 9 for insurance entities