STRATEGY SOCIETE GENERALE 2014-2015 I 5 In these first months of 2015, what’s your view of Societe Generale group’s current environment? Frédéric Oudéa We are facing deep, unprecedented changes. Geopolitical and financial instabilities mix with more positive factors like lower oil prices and the depreciation of the euro. The quantitative easing begun by the European Central Bank (ECB, see pages 12 & 13) may stimulate economic recovery in Europe. Nevertheless, many structural matters remain, beginning with the debt levels of eurozone countries and the necessary steps towards competitiveness that they need to take to compete on a global level and return to sustainable growth in the medium and long term. One very positive development of note is the implementation of the European Banking Union. Our new regulator now operates on a European level, which is a fundamental shift. Our Group confirmed its financial stability by passing the ECB stress tests that were held prior to the creation of this new European regulator. Harmonising supervisory models across the different countries will strengthen trust in the European banking system. European integration is going forward, which is a welcome development. Europe is also moving towards disintermediation, meaning ways of financing the economy that rely less on bank loans and more on the capital markets. Is your banking model in line with this trend? F.O. After the Banking Union, Europe will take steps toward a capital markets union and the disintermediation of the economy’s financing. Groups like ours, which are experts in both bank loans and market-based financing, have all the skills they need to be key players in this transition. At the moment, it’s often a combination of loans and markets that makes sense. Very often, in an infrastructure project for instance, we start by approving a loan, which is then refinanced on the markets. We support our clients through both stages while also advising them and providing associated services. This is yet another confirmation of our universal banking model. In more general terms, how is your banking model evolving in this ever-changing environment? F.O. Now that we have finished adjusting our balance sheet and strengthening the Group’s foundations, we are continuing our transformation and the development of our activities, while also ensuring profitable growth. We are achieving this through the development of synergies and our effective model with respect to cost and risk management. When we presented our strategic plan for 2014-2016 we reaffirmed our ambition, along with the core businesses and regions that are consistent with that ambition. Our model is a diversified one. On one side there is Retail Banking, which is focused in Europe, the Middle East, the Mediterranean Basin and Africa. On the other there is Global Banking and Investor Solutions, which has a strong foundation in Europe and targeted international development in key sectors such as energy, infrastructure and equity derivatives. “EUROPEAN INTEGRATION IS GOING FORWARD, WHICH IS A WELCOME DEVELOPMENT”
RAPPORT_ANNUEL_2014-2015_UK
To see the actual publication please follow the link above