ANNUAL GENERAL MEETING, 23 MAY 2017
LETTER TO SHAREHOLDERS_JUNE 2017 | 5
2017-2018: transition
followed by differentiation
In terms of our past direction and
upcoming challenges, we reiterate
the relevance of our balanced and
diversified business model which
creates synergies and pools costs.
2017 is set to be a year of transition.
Almost ten years since the beginning
of the financial crisis, we are about to
embark in a new phase in the history
of the European banking sector and
for Societe Generale. Between 2008
and 2012, like several other European
banks, we managed a series of
systemic and specific crises. We
then entered a period of remediation
(adjustment of our business model,
regulatory adaptation, settlement of
disputes, etc.). This phase will come
to an end in a few quarters for the
majority of our European peers.
We will then enter a phase of
differentiation. Our bank is ready,
with the launch of a certain number
of initiatives to prepare for the future,
and we are all set to pursue our growth
and transformation strategy.
Three major collective
challenges
The first challenge is the path taken by
the eurozone, in which we are a key
player. In a continental Europe faced
with Brexit, the eurozone will need
to adapt its financial, banking and
capital market services accordingly.
It will need strong European players.
Against this backdrop, the strong and
long-term presence of retail banking
in eurozone neighbouring countries
(Central and Eastern Europe, Russia,
Africa) makes sense, especially as the
latter will continue to strengthen its
economic ties with these countries.
We have a particularly important long-term
role to play in contributing to the
development of the African continent.
The second challenge is the
major change in our customers’
expectations, notably with the
effects of new technologies, and
in particular mobile technologies.
Digital transformation is our key
challenge for the next five to ten years.
We must be prepared to adapt
but also to take advantage of
the opportunities. Quality of service
coupled with outstanding value
for money will allow us to win and
retain our customers - both individual
and business - while maintaining
their trust.
In concrete terms, all of our business
lines will need to adapt, in particular
Retail Banking in France, online
banking (Boursorama is targeting at
least 2 million customers by 2020)
and retail banking abroad (in particular
Africa). The IPO of ALD Automotive
aims to explore a new area of activity.
The third challenge is stricter
requirements in terms of responsibility.
Ten years on from the financial
crisis, it is crucial that we are able to
differentiate ourselves in the way in
which we carry out our work, in both
our business lines and beyond. We
have already taken very clear positions
in terms of the environment, with a
very concrete contribution to COP 21
objectives. We have also made
strong social commitments to be a
responsible and attractive employer.
Moreover, the Societe Generale
Foundation, which is committed to
professional integration, has just
celebrated its tenth anniversary.
A strategy of differentiation
to continue our growth
Our differentiation strategy will
contribute to these three challenges
in a positive manner. It is all about
making a difference and being
indispensable for our customers.
Our objective is to achieve sustainable
and profitable growth.
We are striving to achieve a pioneering
spirit in our business lines and
distinguish ourselves through our
ability to innovate.
This also entails being a benchmark
bank in terms of CSR and
distinguishing ourselves through our
managerial agility. We are currently
introducing a new organisation, with
collective objectives and new methods
which improve synergies and favour
innovation. Our Culture & Conduct
programme will be a strong driver,
steering our teams through this
transformation.
I hope that each and every member of
staff will feel involved and committed
to this transformation. We will
also introduce a global employee
share‑ownership plan to coincide
with the strategic plan which we will
present on 28 November.
We are very excited to be preparing
this new phase and are convinced
that our bank of tomorrow will be
the envy of our staff, our shareholders
and our customers.