Societe Generale: third quarter 2021 results

Q3 21: EXCELLENT QUARTER, UNDERLYING GROUP NET INCOME OF EUR 1.4 BILLION^([1]) (EUR 1.6 BILLION ON A REPORTED BASIS) 
^([1]) Underlying data (see methodology note No. 5 for the transition from accounting data to underlying data)  
Revenues up +14.9% vs. Q3 20 (+15.0%*) driven by growth in all the businesses, in particular a very strong momentum in Financial Services and Financing & Advisory, a very good performance by Global Markets, and continued growth in Retail Banking 
Underlying gross operating income: EUR 2.4 billion⁽¹⁾, up 32.8%⁽¹⁾  vs. Q3 20, with a positive jaws effect 
Still low cost of risk: 15 basis points in Q3 21, with no significant provision write-back 
Profitability (ROTE): 10.9%⁽¹⁾ on an underlying basis and 12.7% on a reported basis in
Q3 21

9M 21: UNDERLYING GROUP NET INCOME OF EUR 4.0 BILLION⁽¹⁾ (X5 VS.
9M 20) 
Underlying gross operating income: EUR 6.6 billion⁽¹⁾, +61% vs. 9M 20, driven by revenue growth combined with continued good cost discipline 
Cost of risk: 16 basis points 
Profitability (ROTE): 10.4%⁽¹⁾  on an underlying basis and 10.0% on a reported basis in
9M 21

SOLID CAPITAL POSITION 
Solid CET 1 ratio: 13.4%(2) at end-September 2021, after provision for distribution and including the impact of the share buyback programme, or around 440 basis points above the regulatory requirement 
Organic capital generation: 61 basis points in the first 9 months of 2021 
Attractive shareholder return

• Launch of the share buyback programme, for an amount of around EUR 470 million, scheduled for November 4^th, with the programme expected to be finalised by end-2021
• Provision for distribution per share of EUR 2.03 in 9M 21 (financing both dividend and share buyback) consistent with a payout ratio of 50% of underlying Group net income(3)

SUCCESSFUL EXECUTION OF OUR STRATEGIC PROJECTS 
Detailed presentation of the new French Retail Banking operation (a full merger project progressing as scheduled) 
Very satisfactory implementation of the strategy in Global Banking & Investor Solutions 
Development of our differentiating assets (Boursorama, ALD, KB) 
Frédéric Oudéa, the Group’s Chief Executive Officer, commented:    
“The Societe Generale group enjoyed an excellent quarter, with strong commercial and financial performances in all the businesses and improvement of the cost-income ratio.  The group also continued to benefit from the quality of its loan portfolio, with a low cost of risk combined with a continued very prudent provisioning policy. Thanks to the unfailing commitment of the teams, the different strategic projects announced, in particular the creation of a new French Retail Bank resulting from the merger of the Societe Generale and Crédit du Nord networks, are all progressing in line with the objectives set. The group is already starting to prepare its new strategic plan 2022-2025, drawing on its strong, innovative and fast-growing businesses and its recognised leadership in terms of corporate social responsibility.”