Société Générale (GLE) investor relations material

Business performance and market environment

• Asset quality remained stable with non-performing loans slightly down and cost of risk at 25bps, within target range, despite recent market volatility and high energy prices.

• Retail banking saw a 9% year-on-year increase in PBI, driven by net interest income (NII) and fees, while IBFS revenues rose 3% on an adjusted basis.

• GBIS revenues were flat at constant FX, with record performance in equities but weaker FICC due to geographic and product mix.

• Boursorama Banque achieved strong profitability with a mid-60s ROE and nearly nine million customers, focusing on operational leverage and client engagement.

• Central and Eastern European retail franchises delivered high-teens to 20% RoTE, with strong loan growth and synergies in revenue and IT.

Cost management and operational efficiency

• Strategic focus since 2023 on streamlining to core businesses, raising CET1 above 13%, and improving operational leverage.

• Cost-to-income ratio targeted below 60% for the year, supported by IT simplification, provider reduction, and decommissioning 1,000 apps over 3-4 years.

• Workforce reduced from 126,000 to 109,000, with further FTE reductions planned in France and over 4,000 ongoing efficiency initiatives.

• Cost base at 4.4% of RWAs, with best peers at 3.5%, indicating ongoing focus on cost discipline.

• EUR 1 billion invested to achieve cost-to-income targets, with most spending in 2024-2025 and ongoing structural optimization.

Capital allocation and shareholder returns

• CET1 ratio raised to 13% ahead of schedule, driven by early divestments and disciplined capital allocation.

• Excess capital above 13% is earmarked for organic/inorganic growth or shareholder returns, with EUR 2 billion in buybacks executed in 2025.

• Organic growth targeted at 2% RWA increase without altering risk profile; inorganic opportunities considered if strategically sound.

• Group’s return on tangible equity has doubled since 2023, with a more robust balance sheet and higher pre-provision profit.

• Market CET1 levels have risen, but current 13% is considered appropriate for now.