Results at December 31st 2019

Q4 19 PERFORMANCE: STRONG GROWTH IN REVENUES AND UNDERLYING GROUP NET INCOME
Revenues up +4.8% (+6.8%*) in Q4 19 vs. Q4 18, initial tangible results of the improvement in Global Markets (+16% in Q4 19 vs. Q4 18)
Further decline (-0.7%(1)) in the Group’s underlying operating expenses, positive jaws effect
Low cost of risk at 29 basis points in Q4 19
Substantial increase in underlying operating income, +33.1%(1) in Q4 19 vs. Q4 18
Increase in underlying Group net income to EUR 875 million(1) (+8.7% vs. Q4 18)

2019 ACHIEVEMENTS IN LINE WITH TARGETS
SUBSTANTIAL INCREASE IN THE CET 1 RATIO TO 12.7% AT DECEMBER 31ST, 2019 (10.9% AT DECEMBER 31ST, 2018) 

2019 RESULTS REFLECTING COST DISCIPLINE AND GOOD RISK CONTROL
2019 revenues: -1.5%* vs. 2018; stable business revenues (-0.1%*)
Decline in the Group’s underlying operating expenses: -1.0%( ) in 2019 vs. 2018
Cost of risk at 25 basis points in 2019, at the bottom of the announced range
French Retail Banking performance in line with 2019 revenue and cost targets; resilient profitability
Confirmation of the profitable growth potential of International Retail Banking & Financial Services (underlying RONE of 17.9%(1))
Implementation of Global Banking & Investor Solutions’ restructuring plan above annual targets
DIVIDEND OF EUR 2.20 IN CASH PROPOSED TO THE GENERAL MEETING OF SHAREHOLDERS

STRENGTHENING THE BUSINESS MODEL
2019 saw the Group continue to strengthen its business model around the following key areas: consolidation of leadership positions in added-value businesses and segments; balance of businesses and geographical regions; deepening synergies and searching for efficiency. The main advances focused on three aspects: implementation of the refocusing plan, strengthening of core franchises and investments in the digitalisation of platforms and the customer experience.
 
SOCIETE GENERALE, A LEADER IN RESPONSIBLE FINANCE
The Group is aiming for a position as a banking leader in the area of responsible finance. During 2019, it was ranked No. 1 bank globally on environmental issues (Robecosam 2019) and received numerous awards across all CSR criteria.

2020 OUTLOOK
IMPROVEMENT IN PROFITABILITY
Group net income expected to be higher in 2020 than in 2019: slight growth in revenues in the current environment; decline in operating expenses, decline in the cost to income ratio, positive jaws effect
Cost of risk expected to be between 30 and 35 basis points in 2020
The Group is aiming for an improvement in its ROTE in 2020

MAINTAINING A SOLID LEVEL OF CAPITAL
The Group aims to steer above a CET1 ratio of 12% which remains its target.
VALUE CREATION FOR SHAREHOLDERS
Increase in tangible net asset value per share and earnings per share in 2020 vs. 2019
New dividend policy: payout ratio of 50% of underlying Group net income, which could include a share buyback component of up to 10%, with the dividend component being paid in cash

ORGANISATION OF TWO “DEEP DIVE” PRESENTATIONS IN 2020: IN H1 ON THE GROUP’S RESPONSIBLE FINANCE STRATEGY AND, IN H2, ON EFFICIENCY AND DIGITAL

Fréderic Oudéa, the Group’s Chief Executive Officer, commented: “2019 was a year of considerable progress during which we achieved all the targets, both strategic and financial, that we set ourselves. We are therefore entering 2020 with confidence, with a more compact business model based on leadership positions in high added-value businesses and a presence in buoyant geographical regions. We intend to capitalise on the robustness of this model to pursue the expansion of our core franchises and improve our profitability, by increasing our efforts in terms of operational efficiency and disciplined cost management. More than ever, our ambitions around the use of digital technologies to enhance the customer experience and the deepening of our CSR commitment are at the centre of our strategic approach. As we have just reaffirmed with all our teams in our raison d’être, we are determined to build a better and sustainable future with our customers.”

Lorenzo  Bini Smaghi, on behalf of the Board of Directors, commended the solid results for 2019, particularly with regard to the strengthening of the capital base and the control of operating expenses. He commended the determined actions of Frédéric Oudéa and the Societe Generale Group’s management team in spearheading the transformation of the Bank.

(1) Underlying data. See methodology note 5 for the transition from accounting data to underlying data.
The footnote * in this document corresponds to data adjusted for changes in Group structure and at constant exchange rates.