GROUP STRATEGY 2014-2016 French Retail Banking: at the forefront of the digital transformation Societe Generale’s French Retail Banking networks enjoy a competitive set-up ready to deliver higher growth than its peers thanks to the strengths of its three different, yet complementary, brands (Societe Generale, Crédit du Nord, Boursorama) present in the fastest-growing and richest regions in France, as well as to leadership position in digital banking services. MAIN TARGETS FOR 2016 +1% Annual revenue growth 63% Cost/income ratio 45/50 Cost of risk between 45-50 bp 14% ROE 4 | LETTER TO SHAREHOLDERS_2014 Focusing on Russia The Group affirms its longterm commitment to Russia despite the current uncertainty. While maintaining the exposure to Russia to a moderate level (3% of the total 2013 Group’s commitments), the Group will implement a sound, focused and profitable self-funded growth strategy. SG Russia (including Rosbank, Delta Credit, Rusfinance, Societe Generale Insurance and ALD Automotive) will deliver an average revenue growth of 7% per year, a ROE of 14% in 2016, and a contribution of around 5% to the Group’s net result in 2016. International Retail Banking and Financial Services: back to profitable growth In International Retail Banking and Financial Services, Societe Generale has leading franchises with recognised expertise in three key regions, Europe (Western, Central & Eastern Europe), Russia and Africa, in Insurance, and in two businesses providing financial services to corporate (ALD car renting and fleet management and SG Equipment Finance). MAIN TARGETS FOR 2016 +3% Annual revenue growth 68% Cost/income ratio 45/50 Cost of risk between 45-50 bp 15% ROE This division has undergone an in-depth transformation over recent years with a refocused portfolio, a more self-funded and an optimised model, as well as an improved risk profile. In the future, International Retail Banking and Financial Services will be one of the Group’s main growth engines thanks to the high potential of its markets and increased synergies, which already account for 25% of its revenues. MAIN TARGETS FOR 2016 +5% Annual revenue growth 53% Cost/income ratio 15% ROE Global Banking and Investor Solutions: focused and different Dedicated to corporate clients, financial institutions and private banking clients, the division encompasses Corporate and Investment Banking, Private Banking, Asset & Wealth Management and Securities Services. Societe Generale has built a top 5 European player. After having sharply reduced its risk profile, and shifted towards a more client-driven model, Societe Generale is now wellpositioned to gain market share in the current changing CIB industry landscape. The Group can take advantage of the increasing disintermediation in Europe and of the development of new products and services related to the post-trade services evolution, thanks notably to its recent acquisition of Newedge.
LA_LETTRE_DE_LACTIONNAIRE_N91_UK
To see the actual publication please follow the link above