As a result of the IFRS 5 accounting of disposals implemented by the Group, including the previously announced sales of Societe Generale Serbia and of the Group’s stake in La Banque Postale Financement, an exceptional charge of ca. EUR -240 million will be booked in the Corporate Centre in Q4 18.
The challenging market environment in global capital markets is expected to result in a decline in Global Markets and Investor Services revenues of approximately -20% in Q4 18 vs. Q4 17 and of approximately -10% in 2018 vs. 2017, as well as a significant increase in market risk weighted assets. The performance of all the activities within International Retail Banking and Financial services as well as the Financing and Advisory businesses are expected to be solid in Q4 18. French Retail Banking performance is expected to be in line with guidance.
2018 Group cost of risk is expected to be within the 20-25bp range, as per Group guidance.
The Board of Directors of Societe Generale intends to propose a stable dividend for 2018 (EUR 2.20 per share) and has decided to propose to shareholders the option of a dividend payment in shares.
Taking into account signed transactions (both disposals and acquisitions) and this decision of the Board of Directors, the Group CET1 ratio on a pro forma basis* is expected to be between 11,4% and 11,6% as of Q4 18, in line with its 12% CET1 target in 2020.
(*) Pro forma of signed transactions (disposals and acquisitions), which are expected to generate ca. +26bp of CET1, and assuming 50% of the 2018 dividend is paid in shares (ca. +24bp of CET1)
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