Société Générale (GLE) investor relations material

Capital strategy and allocation

• Achieved capital build-up ahead of 2026 target, reaching 13.5% in H1, with focus on rational use of excess capital through organic growth, selective inorganic opportunities, and share buybacks, prioritizing shareholder interests.

• Decisions on capital return will be strategic, not routine, with ongoing assessment of regulatory uncertainties like FRTB and a commitment to sustainable long-term policy.

• Capital buffers are maintained above regulatory and market expectations to manage uncertainties and supervisory actions, with a view that supervisory pressures are nearing a plateau.

Profitability and efficiency initiatives

• Efficiency and cost management remain central, with a focus on cost per RWA as a key benchmark and ongoing efforts to improve across all divisions.

• Significant IT spending reductions have been achieved, with further optimization planned, leveraging natural attrition and operational improvements, especially in French retail.

• 2026 targets include 60% cost/income ratio for France and the group, with Boursorama Bank and Avence restructuring contributing to improved efficiency and profitability.

Digital banking and competitive landscape

• Boursorama Bank, with 8 million clients and high efficiency, is positioned as a leader in digital banking, aiming to increase NBI per client and maintain top client satisfaction.

• The coexistence of traditional and digital models provides a hedge against changing client behaviors, with ongoing efforts to grow digital revenues and optimize both networks.

• Competition from new entrants like Revolut is acknowledged, prompting careful monitoring and potential commercial policy adjustments, while international expansion is considered but not imminent.