Published on 04/11/2022

Third quarter 2022 earnings

Good business performance with revenues up +2.3% vs. Q3 21 driven by the resilience of French Retail Banking, strong growth in International Retail Banking and in Financial Services, and a robust performance from Global Markets and Financing & Advisory 
Good cost control, limited increase in operating expenses (+1.5% vs. Q3 21 published, +2.0% underlying) 
Improvement in the underlying cost to income ratio, excluding contribution to the Single Resolution Fund, at 60.7%(1) (vs. 61.8%(1) in Q3 21) 
Cost of risk contained at 31 basis points, with around two-thirds consisting of prudent provisioning on performing loans, the level of defaults remaining low at ~10 basis points 
Underlying Group net income of EUR 1.4 billion([1]) (EUR 1.5 billion on a reported basis) 
Underlying profitability (ROTE) of 10.5%(1) (11.2% on a reported basis) 

Underlying Group net income of EUR 4.5 billion(1) (EUR 858 million on a reported basis), up +11.2% vs. 9M 21 
Underlying cost to income ratio, excluding contribution to the Single Resolution Fund, of 59.6%(1) at end-September, now expected below 64% for 2022 
Underlying profitability (ROTE) of 10.4%(1) (1.3% on a reported basis)

CET 1 ratio of 13.1%(2) at end-September 2022, up 13 basis points vs. end-June 2022(3) and around 
380 basis points above the regulatory requirement

Merger of retail banking networks in France: all regulatory approvals obtained and legal merger date confirmed at January 1st, 2023 

Successful finalisation of the partnership between Boursorama and ING in France: onboarding of around two-thirds of eligible customers to the partnership, i.e. 315,000 customers, and transfer of nearly EUR 8.5 billion of outstandings 
Acquisition of Leaseplan by ALD: approval process on track, rights issue expected before the end of the year and closing of the acquisition expected during the first quarter of 2023 
ESG ambition: acceleration of the decarbonisation of our loan portfolios

Fréderic Oudéa, the Group’s Chief Executive Officer, commented
“In an increasingly complex geopolitical and economic environment, Societe Generale posts, once again, excellent results, with both a very solid commercial performance and profitability. The third quarter is marked by increasing revenues, continued control of operating expenses and a contained cost of risk, while maintaining a prudent provisioning policy. We continue to make good progress on the execution of our strategic initiatives, with several major milestones achieved, notably on the merger of the retail banking networks in France and the finalisation of the partnership between Boursorama and ING. Furthermore, on September 30th, the Board of Directors decided that at the next General Meeting it would propose Slawomir Krupa as Board member to be my successor as Chief Executive Officer of the Group in May 2023. The coming months will enable us to continue to implement the strategic initiatives underway, which would ensure sustainable growth and profitability, while together ensuring an effective and orderly transition.”

(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 12.9%)  (3) Excluding IFRS 9 phasing effect 
The footnote * corresponds to data adjusted for changes in Group Structure and at constant exchange rates