Group results at March 31th 2020

Q1 20 PERFORMANCE
Resilient performance in French Retail Banking and International Retail Banking and Financial Services
Underlying profitability of 10.7%(1) in French Retail Banking
Underlying profitability of 15.4%(1) in International Retail Banking and Financial Services
Global Banking and Investor Solutions penalised heavily by market conditions
Global Markets, mainly investment structured products on equities, impacted by exceptional market dislocations of the end of the quarter due to Covid-19
Satisfactory performance of other businesses
Cost of risk at 65 basis points amid Covid-19 crisis vs. 21 basis points in Q1 19
Decline in the underlying Group operating expenses: -3.6%( ) vs. Q1 19
Reported Group net income at EUR -326m and underlying Group net income at EUR 98m(1)

THE GROUP ENTERS THE CRISIS WITH A ROBUST PROFILE
A solid financial structure and liquidity position
CET1 ratio at 12.6% (12.7% pro forma(2) ) at 31st March 2020: nearly 350 basis points above regulatory requirement(3)
LCR ratio at 144% on average in Q1 20 and liquidity buffer at EUR 203bn
Funding programme of which approximately 45% is already completed
Good quality loan portfolio with geography and sector diversification
Goodwill from our advanced digital strategy, facilitating operational management at a time of crisis

2020 OUTLOOK
Confirmation of decrease in Group costs in 2020 and additional cost reduction between EUR 600m and EUR 700m in 2020
Cost of risk outlook expected at around 70 basis points throughout 2020 in a base Covid scenario and around 100 basis points in a scenario of extended shutdown
CET1(4) ratio showing, as of end of 2020, a buffer between 200 and 250 basis points over regulatory requirement, depending on the assumption used for potential exceptional dividend distribution.

Frédéric Oudéa, the Group’s Chief Executive Officer, commented:
« In the face of the unprecedented health, economic and social crisis we are experiencing, our Societe Generale teams worldwide have shown determination and unwavering tenacity in a truly exceptional mobilisation and I would like to thank them for this. Based on our strong sense of responsibility, the group’s commitment is threefold : firstly, to protect the health of our clients and our employees by applying security measures in all of our sites and activities; secondly, to ensure the continuity of our services as a business of vital importance; and thirdly, to support our staff, clients, suppliers and all our partners during this especially difficult period.
We are tackling this crisis with insight but confident in the soundness of our business model, the agility of our operational model driven by technological and digital advancements and the robustness of our capital and risk profile. Beyond our focused adaptation to the immediate impact of the crisis, we are already working on the designs of our next strategic plan 2021-2025 to take into account the new environment post-crisis. »

(1) Underlying data. See methodology note 5 for the transition from accounting data to underlying data.
(2) Pro forma for the announced disposals (+10 basis points) and the integration of EMC (-4 basis points)
(3) 9.05% as of 04.01.2020
(4) Including 2020 dividend accrual
The footnote * in this document corresponds to data adjusted for changes in Group structure and at constant exchange rates.