Published on 03/08/2021

Second quarter and half-year 2021 results

EXCELLENT PERFORMANCE IN ALL THE BUSINESSES IN Q2 21 AND H1 21 
In Q2 21, revenues up +18.2% vs. Q2 20 (+20.5%*), with a strong quarter in Global Banking & Investor Solutions, substantial growth in Financial Services and a rebound in Retail Banking 
Strong positive jaws effect in all the businesses 
Underlying gross operating income of EUR 2 billion([1]), up 55%(1) vs. Q2 20 

Low cost of risk at 11 basis points in Q2 21; continued prudent approach in terms of provisioning 
Underlying Group net income of EUR 1.35 billion(1), reported Group net income (including IFRIC 21 charges and exceptional items) of EUR 1.44 billion in Q2 21 
Profitability (ROTE) at 10.4%(1)  and 11.2% in Q2 21 
In H1 21, underlying gross operating income of EUR 4.2 billion(1), up +83.4%(1) vs. H1 20 
Revenues strongly up +19.5% (22.8%*) and costs contained up 1.7%(1) (3.6%(1)*) 
Underlying Group net income of EUR 2.65 billion(1), up +13.5%(1) vs. H1 19, reported Group net income of EUR 2.25 billion 
Profitability (ROTE) at 10.2%(1) and 8.6% in H1 21  

IMPROVEMENT IN THE OUTLOOK FOR 2021 
Expected increase in revenues in all the businesses 
Increase of the positive jaws effect with continued disciplined management of costs 
Downward revision, between 20 and 25 basis points, in the full-year forecast for the net cost of risk 

STRONG CAPITAL POSITION  
Solid CET 1 level at 13.4%(2) at end-June 2021, well above the target, due to strong organic capital generation of 44 basis points in H1 21 after dividend provision

Attractive shareholder return

  • Confirmation of the launch, in Q4, of a share buyback programme, for an amount of around EUR 470m(3)
  • H1 21 dividend per share provision of EUR 1.2, consistent with a payout ratio of 50% of underlying Group net income(4) 

Frédéric Oudéa, the Group’s Chief Executive Officer, commented:    
“Once again, Societe Generale enjoyed an excellent quarter, with a solid commercial and financial performance by all its businesses. Q2 was marked by the strong revenue momentum, continued cost discipline and a very low cost of risk resulting from very few loan defaults. The results for H1 2021 are the best for 5 years, illustrating the strength of the business model and the Group’s capacity to rebound. On these bases, the Group is raising its full-year forecasts for 2021. These results are the fruit of extensive work undertaken for several years to enhance the intrinsic quality of the franchises by effectively anticipating the needs of customers, improve the operational efficiency of the Group and maintain the excellent robustness of the loan portfolio and risk management. Thanks to the exceptional commitment of its teams and a very solid balance sheet, the Societe Generale Group will continue the far-reaching transformation of its businesses related to ESG issues and the growing use of the new digital technologies, in a constant effort to support its customers and provide them with added value.”

(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% 
(3) It should be noted that, pursuant to Regulation (EU) 2019/876 (CRR2), share buyback is subject to the ECB approval 
(4) After deducting interest on deeply subordinated notes and undated subordinated notes

The footnote * in this document corresponds to data adjusted for changes in Group Structure and at constant exchange rates