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SOCIETE GENERALEGROUP RESULTS1ST QUARTER 2022 RESULTS
DISCLAIMERThe financial information on Societe Generale forits 1st quarter 2022 financial results comprisesthis presentation and a dedicated press releasewhich are available on the his presentation contains forward-lookingstatements relating to the targets and strategiesof the Societe Generale Group. These forwardlooking statements are based on a series ofassumptions, both general and specific, inparticular the application of accountingprinciples and methods in accordance with IFRS(International Financial Reporting Standards) asadopted in the European Union, as well as theapplication of existing prudential regulations.These forward-looking statements have alsobeen developed from scenarios based on anumber of economic assumptions in the contextof a given competitive and regulatoryenvironment. The Group may be unable to: anticipate all the risks, uncertainties orother factors likely to affect its business andto appraise their potential consequences; evaluate the extent to which the occurrenceof a risk or a combination of risks couldcause actual results to differ materially fromthose provided in this document and therelated presentation.Therefore, although Societe Generale believesthat these statements are based on reasonableassumptions, these forward-looking statementsare subject to numerous risks and uncertainties,in particular in the Covid-19 crisis context,including matters not yet known to it or itsmanagement or not currently consideredmaterial, and there can be no assurance thatanticipated events will occur or that theobjectives set out will actually be achieved.Important factors that could cause actual resultsto differ materially from the results anticipated inthe forward-looking statements include, amongothers, overall trends in general economicactivity and in Societe Generale’s markets inparticular, regulatory and prudential changes,and the success of Societe Generale’s strategic,operating and financial initiatives.More detailed information on the potential risksthat could affect Societe Generale’s financialresults can be found in the section “Risk Factors”in our Universal Registration Document filed withthe French Autorité des Marchés Financiers(which is available ss rankings and market positions areinternal. This presentation includes informationpertaining to our markets and our competitivepositions therein. Such information is based onmarket data and our actual revenues in thosemarkets for the relevant periods. We obtainedthis market information from various third-partysources (publications, surveys and forecasts) andour own internal estimates. We have notindependently verified these third-party sourcesand cannot guarantee their accuracy orcompleteness and our internal surveys andestimates have not been verified by independentexperts or other independent sources.The financial information presented for thefinancial year ending 31 March 2022 wasapproved by the Board of Directors on 4 May2022. It has been prepared in accordance withIFRS as adopted in the European Union andapplicable at this date and has not been audited.Investors are advised to take into account factorsof uncertainty and risk likely to impact theoperations of the Group when considering theinformation contained in such forward-lookingstatements. Other than as required by applicablelaw, Societe Generale undertakes no does notundertake any obligation to update or revise anyforward-looking information or statements.Unless otherwise specified, the sources for the1ST QUARTER 2022 RESULTS 5 MAY 20222
1.INTRODUCTION
STRONG Q1 22 RESULTSGROUP NET INCOMESolid businessperformanceSolidcapitalProgress on strategicinitiatives(EUR 0.84bn reported)RevenuesCET 1vs. Q1 21at end of Q1 22. Signing of the frameworkagreement for the acquisitionof LeasePlan by ALDEUR 1.57bn(1)ROTE11.9%(1)(6.0% reported) 16.6% ( 16.1%*)12.9%(3) 370 bps over MDACost-to-income56.4%(2)in Q1 22Cost of riskConfirmed 2021Distribution. Proposed dividendEUR 1.65 (4)39 bps. Share buy-back31 bps excl. Russian activitiessubject to contemplated disposal(i.e. total amount of EUR 915m)in Q1 22eq.EUR 1.1(5). Signing of definitiveagreement by Boursoramawith ING. Vision 2025: New branding ofFrench networks and signing ofthe second HR agreement. Acceleration of ESG ambition(1) Underlying data: adjusted for exceptional items (see Supplement) (2) Underlying and excluding the contribution to the Single Resolution Funds(3) Including IFRS9 phasing, 12.8% fully-loaded (4) Per share, subject to the General meeting approval (5) Per share, subject to usual ECB and General meeting approvals* When adjusted for changes in Group structure and at constant exchange rates1ST QUARTER 2022 RESULTS 5 MAY 20224
EFFECTIVE EXIT FROM RUSSIA IN AN ORDERLY MANNERAnnouncedtransactionImpact atGroup levelSigning of a SPA(1)CET 1 ratioon 11 April 2022 to sell Rosbank and the Russianinsurance subsidiaries to Interros capitalat closing -20 bps (2)mostly offset by the reversal of the rating migration on the Russianassets subject to the contemplated disposal ( 14bps)Expected closingin the few coming weeksP&L impact expected at closing. Write-off of the net book value of the divested activities EUR 2bn(3). A non-cash item with no impact on the Group’s capital ratio EUR 1.1bn(3)(1) Share Purchase Agreement(2) Based on the net value of the assets subject to the contemplated disposal as of December 31, 2021 with a EUR/RUB exchange rate of 85(3) Based on non-audited estimated data as of February 28, 2022 and a EUR/RUB exchange rate of 92. The final impact would be calculated based on the data and the foreign exchange rate at the closing date. The accounting period would depend on the closing date1ST QUARTER 2022 RESULTS 5 MAY 20225
ACCELERATION OF OUR SUSTAINABILITY AMBITION12ENVIRONMENTAL TRANSITIONEUR 300bn sustainable finance 2022-2025new target expanded to full scope of bank’s activitiesAccompany all client segments in their transition, withinnovative solutions to serve their changing needsEUR 150bnachievedPOSITIVE LOCAL IMPACTBe a catalyst for positive societal and economic impactfor communities across geographies3RESPONSIBLE EMPLOYER4CULTURE OF RESPONSIBILITYOffer an attractive, inclusive and engaging workingenvironmentMaintain the highest standards of governance, with acorporate purpose that drives our values and mindsetA leading bankBank of the Year forSustainabilityGroup financing andadvisory solutions:-retail-wholesale-electric mobilityPrevious targetEUR nds(1)2025. 30% women in Group management bodies by 2023. Vision 2025: major reskilling programme with no compulsory departures. Extensive ESG training offer, with a specific focus on the energy transition. Implementation of operational and data programmes to support Group ESG transformation. Broaden scope of CSR criteria in management remuneration. Reduction of own operations carbon footprint by 50% from 2019 to 2030Best-in-class extrafinancial ratingsAAAAt the forefront ofinnovation to support ourclients’ transitionsContributing to newstandards for over 15years(1) Includes Green, Social, Sustainability and Sustainability-linked bonds1ST QUARTER 2022 RESULTS 5 MAY 20226
STEERING OUR LOAN BOOK TO LEAD THE ENERGY TRANSITIONWell on track to reach our interimtargetsLead in numerous NZBA(2) sectorworking groups2024NZBA deadline20232022. At least -10% in oil and gas extraction by 2025 vs. 2019OIL & GAS. -75% carbon emission intensity of power portfolio by2040 vs. 2019POWERCOALSHIPPINGAUTOMOTIVESTEEL. Zero exposure to thermal coal by 2030 in EU and OECDcountries, 2040 elsewhereREAL ESTATEAGRICULTUREALUMINIUM. -40% of CO2 intensity of ALD Automotive deliveries by2025 vs. 2019AVIATIONCEMENTKey:. -50% in CO2 emissions in shipping by 2050(1) vs. 2008. -50% in own account emissions by 2030 vs. 2019. Founding member of Steeland Aviation Climate-AlignedFinance working groups,defining decarbonisationstandardsNZBA methodologyPublish targetCEMENTOperationalSG lead in NZBA working groups. 40-50% corporate financed emissions already have targets set, representing 10% of gross corporate commitmentsBe the key partner for our clients in their transitions(1) IMO 2050 ambition scenario(2) Net Zero Bank Alliance1ST QUARTER 2022 RESULTS 5 MAY 20227
2.GROUP PERFORMANCE
STRONG INCREASE IN GROSS OPERATING INCOMEPositive jawsCost/income ratioCost evolutionChange in underlying revenuesand costs(1) Q1 22/Q1 21Underlying cost/income(1) excluding SRFQ1 22/Q1 21Underlying costs(1) Q1 22/Q1 21 (EURm) 5.6%79.0% 16.6%68.7%63.3% 9356.4%4,097 35 314,325Other costs(incl. disposalof Lyxor)Q1 22 69 5.6%RevenuesCostsQ1 19Q1 20Q1 21Q1 22Q1 21SRF(2)VariablecompensationFXUnderlying gross operating income of EUR 3.0bn ( 37.6% vs. Q1 21)(1) Underlying data: adjusted for exceptional items (see Supplement)(2) Contribution to the Single Resolution Funds1ST QUARTER 2022 RESULTS 5 MAY 20229
CONTAINED COST OF RISKCost of risk(1) (in bp)Q1 21GROUP21FRENCH RETAIL BANKING22INTERNATIONAL RETAILBANKING AND FINANCIALSERVICES44GLOBAL BANKING AND INVESTORSOLUTIONS1Q2 2111Q3 2115113743412Q4 21NON-PERFORMING LOANS RATIO(3)Q1 226-33931(2)8MAR 18MAR 19MAR 20MAR 21DEC 21MAR 224.2%3.5%3.1%3.3%2.9%2.9%9228159(2)45Gross coverage ratio: 49% at end-March 222022 Cost of risk between 30 and 35 bps(1) Calculated based on Gross loans outstanding at the beginning of period (annualised)(2) Excluding the Russian activities subject to the contemplated disposal(3) According to new EBA methodology published on 16 July 2019. The NPL rate calculation was modified in order to exclude the net accounting value of the tangible assets for operating lease from the gross exposure in the denominator. Historical data restated (see Supplement)1ST QUARTER 2022 RESULTS 5 MAY 202210
CONTINUED PRUDENT PROVISIONINGStage 1/Stage 2 total provisionsCost of RiskCost of risk (in EURm)Total provisions(2) (in EURm)3,6228203,3553,614(65 bps)561211(39 bps)276609Q1 2086248300218313-24-132Q1 21Q4 21(21 bps)Stage 1/Stage 22,282425(31 bps)148(6 bps)Q1 22277Q1 22(1)Stage 2031.12.2131.03.221,231Stage 1Stage 2(1) Excluding the Russian activities subject to the contemplated disposal(2) Quarterly variation of provisions for S1/S2 is not strictly matching the net S1/S2 cost of risk mainly due to FX impact1ST QUARTER 2022 RESULTS 5 MAY 202211
RUSSIAN OFF-SHORE EXPOSURE IN RUN-OFF MODECredit risk exposureMarket risk exposurePortfolio managed in run-off mode since end February 2022. Reduced EaD at EUR 2.8bn as of 31 March 2022 with good level of collectionnotably on Trade FinanceProactive and effective management with externalcounterparties. Trades unwound with minor financial impact. Negligible residual market exposure with external Russiancounterparties at end of April 2022Best estimate to date of the net Exposure at Risk EUR 1bn(1)Q1 22 cost of risk: EUR 218mResidual exposure still mainly composed of secured structured transactionsExposure at default by sectors at 31 March 22Corporate gross exposure by type at 31 March 22OthersTransport &logisticsOil & Gaz8%19%Term Loan7%31%EUR 2.8bn16%Metallurgy andsteel industry21%Metals & MiningTrade finance18%Chemicals32%ECA-backed6%41%Pre-export Finance(1) Excluding replacement risk and before provisions1ST QUARTER 2022 RESULTS 5 MAY 202212
CET 1 WELL ABOVE MDAQ1 22 change in CET 1(1) ratio (in bp)CET 1 of 12.9%(1) 370 bps buffer over MDA at 9.23%2021 distribution already deducted fromCET 1 capital up to 65 bps(2)13.7%IFRS 9phasing 8 bps-5 bps-21 bps-35 bps 16 bps-12 bpso.w 14 bps to bereversed atdisposal(3)Leverage ratio at 4.3%TLAC ratio at 30.5%Limited net impact of thecontemplated Russian disposal-10 bpsIFRS 9phasing 14 bps -20 bps12.9% 12 bpsBalance sheet meeting MRELrequirementReversal atdisposal(3) 65% of 2022 funding programmecompleted31.12.21(1)NetEarnings(4)Organic RWAgrowthRatingmigrationRegulatory(incl. IPC(5))OCI(6)Other31.03.22(1)Reversal imum buffer over MDA between 200-250 bps incl. under Basel IV(1) Including IFRS 9 phasing, i.e. 12.8% fully loaded. Based on CRR2/CRD5 rules, including the Danish compromise for Insurance (see Methodology)(2) Including cash dividend (eq. EUR 1.65) and share buy-back (eq. EUR 1.10) (3) Rating migrations in Q1 22 on the assets subject to contemplated Russian disposal(4) Post provision for distribution (5) Irrevocable Payment Commitment (6) OCI on sovereign exposure and insurance (7) Impact of the contemplated Russian disposal1ST QUARTER 2022 RESULTS 5 MAY 202213
GROUP RESULTSC hangeIn EU R mQ1 2 2Q1 2 1N e t b ank i ng i ncom e7,2816,245 16.6% 16.1%*(5 , 3 2 9 )(4 , 7 4 8 ) 12.2% 12.5%*(4,325)(4,097) 5.6% 5.8%*1,9521,497 30.4% 27.3%*2,9562,148 37.6% 35.3%*(5 6 1 )(2 7 6 )x 2.0x 2.0*1,3911,221 13.9% 10.6%*2,3951,872 27.9% 25.5%*26-66.7%-64.8%*(353)(283) 24.8% 24.8%*1,040947 9.8% 5.7%*198133 48.9% 48.2%*842814 3.4%-0.9%*1, 5741, 298 21. 3% 18. 1%*ROE5.3%5.2%R OTE6.0%5.9%11. 9%10. 1%Op erat i ng exp ensesUnderlying operating expenses(1)Gross op e rat i ng i ncom eUnderlying gross operating income(1)N e t cost of ri skOp e rat i ng i ncom eUnderlying operating income(1)N et p rofi t s or losses from ot her asset sIncome taxN e t i ncom eO.w. non-controlling interestsR ep ort ed Group net i ncom eUnderlying Group net income(1 )Underlying ROTE (1 )(1) Underlying data: adjusted for exceptional items and IFRIC 21 linearisation (see Supplement)*when adjusted for changes in Group structure and at constant exchange rates1ST QUARTER 2022 RESULTS 5 MAY 202214
3.BUSINESS PERFORMANCE
FRENCH NETWORKS AND PRIVATE BANKING 1%AV. LOANS OUTSTANDING(1) 5%AV. DEPOSITS OUTSTANDING(1)vs. Q1 21Av. Loans(1) (EURbn)210vs. Q1 21Av. Deposits (1) (EURbn)229211 2%AV. LIFE INSURANCE OUTSTANDINGS vs. Q1 21Av. Life insurance outstandings (EURbn)241Corporates &professionnalsQ1 22AV. GLOBAL PRIVATE BANKING AUM(2) vs. Q1 21Av. Private bank AuM(2) (EURbn)139899128%31%IndividualsQ1 21 8%150Unit-linkedEuro FundsQ1 21Q1 22Dynamic loan production ( 36% vs. Q1 21) with very strong growthin mid-long term corporate loans excl. PGE ( 68% vs. Q1 21) andcontinued increase in home loans ( 39% vs. Q1 21)Rebound of short-term corporate loans outstanding 9% vs. Q1 21Steady increase in depositsQ1 21Q1 22Q1 21Q1 22Solid gross inflows in life insurance (EUR 2.7bn in Q1 22) with highand increasing proportion of unit-linked in production (39%)Strong net inflows in Private banking in volatile markets (EUR 2.7bnin Q1 22)Sustained increase of Personal protection and P&C premia ( 2% vs.Q1 21)(1) French Networks(2) Private Banking as per Q1 22 restatement (France and International), includes businesses transferred following the disposal of Lyxor1ST QUARTER 2022 RESULTS 5 MAY 202216
BOURSORAMA 30% 90%TOTAL CLIENTS vs. end of Mar. 21NEW CLIENT ONBOARDING vs. Q1 21New client onboarding (‘000)388 29%AV. LOANS OUTSTANDING vs. Q1 21Av. Loans (EURbn)Total number of clients (m)Record4-4.5mNew clientsin Q1 223.7203AV. DEPOSITS OUTSTANDING vs. Q1 21Av. Deposits and financial savings (EURbn)14112.8 24%3137ConsumerloansFinancialsavings(1)Home loansQ1 21Q1 2231.03.2131.03.22End 2022#1 Online Bank offer in France (D-Rating, Q1 22)#1 French Bank in app ratings with iOS and Android rate of 4.8(Q1 22)#1 Gold Trophy for best online Life insurance contract(Le Revenu, Q1 22)Q1 21Q1 22DepositsQ1 21Q1 22Strong increase in home loans outstanding, 30% vs. Q1 21Record consumer loans production, x2 vs. Q1 21Robust increase in deposits and financial savings, 19% vs. Q1 21Good life insurance outstandings growth, 7% vs. Q1 21 with highproportion of unit-linked at 45%Sustained brokerage volumes, 2m orders in Q1 22(1) Life Insurance, Mutual Funds and Securities1ST QUARTER 2022 RESULTS 5 MAY 202217
FRENCH RETAIL BANKING RESULTSRevenues 6.4%(2) vs. Q1 21In EU R mQ1 2 2Q1 2 1C hangeNet interest margin 2.8%(2) vs. Q1 21Net banking income2,1882,023 8.2%mainly driven by corporate credit and private banking,partly offset by increase in Livret A rateOperating expensesNet banking income excl. PEL/CELUnderlying operating expenses(1)Gross op e rat i ng i ncom eFees 6.9% vs. Q1 21 6.8%(1,550)(1,483) 4.5%468412 13.6%552 11.4%(47)(129)-63.6%Op e rat i ng i ncom e421283 48.8%03-100.0%R e p or t e d Gr oup ne t i ncom eUnderlying Group net incomemainly due to the contribution to the SRF, clientacquisition and variable costs 6.4%615Net profits or losses from other assetsOperating expenses 4.5%(1) vs. Q1 212,035(1,611)Net cost of riskUnderlying gross operating incomestrong financial fees and rebound in service fees(1)2,165(1,720)R ON EUnderlying RONE(1 )(1 )313212 47.6%422312 35. 2%10.6%6.9%14. 3%10. 2%Positive jawsQ1 22 RONE 14.3%(1) (16.1%(1) excl. Boursorama)(1) Underlying data : adjusted for exceptional items, excluding PEL/CEL provision and IFRIC 21 linearisation (see Supplement)(2) Excluding PEL/CEL provisionNB: including Private Banking activities as per Q1 22 restatement (France and International), includes businesses transferred following the disposal of Lyxor1ST QUARTER 2022 RESULTS 5 MAY 202218
INTERNATIONAL RETAIL BANKINGAFRICA AND OTHEREUROPE 6%*LOANS OUTSTANDING vs. end of Mar.21 3%*DEPOSIT OUTSTANDING vs. end of Mar.21Revenues (EURm) 2%*LOANS OUTSTANDING vs. end of Mar.21 6%*DEPOSIT OUTSTANDING vs. end of Mar.21Revenues (EURm) 16%*605Q1 21 7%*715Q1 22432466Q1 21Q1 22Significant growth of loans outstanding ( 6%), acrossclient segments and in most geographiesPositive business momentum in Q1 22 despite a morecomplex economic environmentNet interest margin significantly up 17%*vs. Q1 21,notably driven by rising interest ratesGood level of NBI growth in sub-Saharan countries( 9%*)Specialised consumer finance revenues up 6%* vs.Q1 21* When adjusted for changes in Group structure and at constant exchange rates1ST QUARTER 2022 RESULTS 5 MAY 202219
INSURANCE AND FINANCIAL SERVICESINSURANCE 4%*SAVINGS LIFE INSURANCE OUTSTANDINGvs. end of Mar.21 7%*PROTECTION PREMIUMvs. Q1 21Revenues (EURm)FINANCIAL SERVICES1.7mTOTAL ALD CONTRACTSas of end of Mar. 22 3%*EQUIPMENT FINANCE NEWBUSINESS VOLUMES vs. Q1 21Revenues (EURm) 44%* 6%*236250Q1 21Q1 22 7%* in life insurance gross inflows vs. Q1 21 with highshare of unit linked (43% in Q1 22)Sustained growth in life insurance outstandings, up 4%* at EUR 134bn of which 36% unit linkedHigher P&C premia across regions ( 12%* vs. Q1 21)* When adjusted for changes in Group structure and at constant exchange rates630439Q1 21Q1 22Very strong dynamics at ALD- Solid funded fleet growth ( 4.8% vs end of March 21)despite shortage in car deliveries- Record NBI with strong growth ( 53%*) on the back of stillvery high demand for used cars (EUR 3,101 result per unit)Satisfactory level of activity in Equipment Finance with newbusiness volumes up 3%* vs. Q1 211ST QUARTER 2022 RESULTS 5 MAY 202220
INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICESRESULTSRevenues 19.3%* vs. Q1 21In EU R mInternational Retail Banking revenues 13.1%* vs. Q1 21Insurance and Financial Services revenues 30.4%* vs. Q1 21Operating expensesQ1 2 2Net banking income2,2231,862 19.4% 19.3%*Operating expenses(1,183)(1,089) 8.6% 8.3%*(1,091)(1,017) 7.3% 7.0%*1,040773 34. 5% 35. 0%*Underlying operating expenses(1)Gross op e rat i ng i ncom e(1)1,132845 34.0% 34.4%*Net cost of risk(325)(142)x 2.3x 2.3*Op e rat i ng i ncom e715631 13. 3% 13. 8%*22 0.0% 11.0%*Underlying gross operating incomeNet profits or losses from other assetsR e p or t e d Gr oup ne t i ncom e 7.0%(1)* vs. Q1 21Underlying Group net incomeR ON EUnderlying RONEPositive jawsC hangeQ1 2 1(1 )(1 )400392 2. 0% 2. 6%*453434 4. 4% 5. 0%*14.5%15.7%16. 5%17. 4%Q1 22 RONE 16.5%(1) ( 23%(1) excl. Russia(2))(1) Underlying data: adjusted for exceptional items and IFRIC 21 linearisation (see Supplement)(2) Estimated RONE excluding the P&L of the Russian activities subject to their contemplated disposal* When adjusted for changes in Group structure and at constant exchange rates1ST QUARTER 2022 RESULTS 5 MAY 202221
GLOBAL MARKETS AND INVESTOR SERVICESREVENUES: 19% vs. Q1 21GLOBAL MARKETS 21% vs. Q1 21Very strong quarter in a volatile environment, validating the strategicroadmap and the quality of its executionGlobal Markets revenues (EURm)Dynamic client activity across the board1,7771,4757671, 2301,1994554016301,099FICEquities370845Q1 211,010775798729Q2 21Q3 21Q4 21Q1 22EQUITIES 20% vs. Q1 21Outstanding performance overall with high client demand, notably on listedproducts and prime services. Stable portfolio of structured products andgood risk managementFIC 22% vs. Q1 21Solid commercial activity in a more favorable environment across all assetclasses and for rates in particularSECURITIES SERVICES 7% vs. Q1 211ST QUARTER 2022 RESULTS 5 MAY 202222
FINANCING AND ADVISORYREVENUES: 24% vs. Q1 21GLOBAL BANKING AND ADVISORY 24% vs. Q1 21Revenues (EURm)790656661Strong dynamics in Natural Resources, Trade Commodity Finance, Real Estateand InfrastructureContinued momentum in Asset Backed-Products, with successful initiatives onfinancial sponsors in particular635Good activity in Investment Banking despite a slowdown in primary marketssince end of FebruaryGLOBAL TRANSACTION BANKING 26% vs. Q1 21Strong performance across activities, driven by higher fees and interest ratesQ1 19Q1 20Q1 21Q1 221ST QUARTER 2022 RESULTS 5 MAY 202223
GLOBAL BANKING AND INVESTOR SOLUTIONS RESULTSRevenues 18.1% vs. Q1 21driven by strong performance acrossbusinesses 5.6%(1) vs.Q1 21, 2.6%(1)Q1 21Net banking income2,7552,333 18.1% 16.9%*(2,172)(1,893) 14.7% 15.7%*(1,611)(1,526) 5.6% 6.7%*583440 32.5% 21.7%*1,144807 41.7% 35.2%*Net cost of risk(194)(3)x 64.7x 76.7*O p e r at i ng i ncom e389437-11.0%-18.4%*302347-13.0%-19.9%*734629 16.6% 1 1 . 3 %*8.6%10.4%20.8%18.8%Operating expensesUnderlying operating expenses(1)Underlying gross operating incomeexcl. SRFdriven by higher contribution to the SRF andvariable costs linked to earnings growthPositive jawsQ1 22Gr os s op e r at i ng i ncom eOperating expensesVar i at i onI n EU R m(1)R e p or t e d Gr oup ne t i ncom eUnde r lyi ng Gr oup ne t i ncomeRONEUnde r lyi ng RONE(1 )(1 )Q1 22 RONE 20.8%(1) (24.1%(1) excl. SRF)(1) Underlying data: adjusted for exceptional items and IFRIC 21 linearisation (see Supplement)* When adjusted for changes in Group structure and at constant exchange ratesNB: excluding Private Banking activities as per Q1 22 restatement (France and International). Excludes businesses transferred following the disposal of Lyxor1ST QUARTER 2022 RESULTS 5 MAY 202224
CORPORATE CENTERIn EU R mQ1 22Q1 2111527(254)(155)(73)(71)(139)(128)42(44)Net cost of risk5(2)Net profits or losses from other assets-11236(173)(137)(52)(69)Net banking incomeOperating expensesOperating expensesEUR 143m(2) transformation charges in thebusiness and support functionsUnderlying operating expenses(1)Gross op erating incomeUnderlying gross operating incomeIncome taxR ep orted Group net incomeUnderlying Group net income (1 )(1 )(1) Underlying data: adjusted for exceptional items and IFRIC 21 linearisation (see Supplement)(2) Q1 22 transformation charges: French Retail Banking (EUR 104m), Global Banking and Investor Solutions (EUR 14m) and Corporate Center (EUR 25m). Q1 21 transformation charges: French Retail Banking (EUR 38m), Global Banking and Investor Solutions (EUR 1m) andCorporate Center (EUR 11m)1ST QUARTER 2022 RESULTS 5 MAY 202225
4.CONCLUSION
2022: A PIVOTAL YEAR IN THE EVOLUTION OF THE BUSINESS MODELRETAIL BANKING & INSURANCEVISION2025BE THE RELATIONSHIPBANK OF REFERENCELegal merger expectedon 01.01.2023BOURSORAMAMOBILITYBE THE UNDISPUTED LEADERIN ONLINE BANKING IN FRANCESTRATEGYIN MOTIONALD MOVE2025&LEASEPLANACQUISITIONCREATE A LEADING GLOBALPLAYER IN MOBILITYFinalise LeasePlan acquisitionby year-endAchieve 4-4.5 m clientsby year-endINTERNATIONALRETAIL BANKINGBE A LEADING FRANCHISEIN ATTRACTIVE MARKETSWHOLESALEGBISSTRATEGICROADMAP2023BE A TIER ONE EUROPEANWHOLESALE BANKCarry on with the successfulexecution of the roadmap1ST QUARTER 2022 RESULTS 5 MAY 202227
5.SUPPLEMENT1ST QUARTER 2022 RESULTS 5 MAY 202228
MAPPING OF EXTRA-FINANCIAL RATINGSAGENCIESBESTWORSTSCOREA1 100D36960AAAAA1000AC negligiblelow57mediumBBD 40highCCC30C-300B54C2020.210BBB6080A 3050TOP 1%ALL COMPANIESWORLDWIDETOP 3%BANKS WORLDWIDE0DPOSITION VERSUS PEERSD-80 TOP DECILEBANKS WORLDWIDETOP DECILEBANKS WORLDWIDETOP 14%BANKS WORLDWIDEsevereNote: Number of companies in each agency universe: MSCI 190 banks; S&P CSA 242 banks; Sustainalytics 415 banks; Moody’s ESG Solutions 4,952 companies; ISS ESG 285 banks1ST QUARTER 2022 RESULTS 5 MAY 202229
LEADING THE ENERGY TRANSITION WITH FLAGSHIP TARGETSEngaging ourbusinessesDecarbonisingour portfoliosBEST-IN-CLASSSECTOR DGEOIL AND GASReduce overall exposure toextraction sector by at least10% by 2025 vs 2019SHIPPINGPoseidon Principlescommitment to reduce CO2emissions by 50% by 2050vs. 2008COALReduce to zero our exposure tothermal coal in 2030 in EU andOECD countries, and 2040elsewherePOWERReduce the carbon emissionintensity of power portfolio by18% by 2025 and by 75% by2040 vs. 2019EUR 300bnTo support sustainable finance2022-2025MOBILITY-40% of CO2 intensity of ALDAutomotive deliveries by 2025 vs. 2019KBReach carbon neutrality inown operations by 2026Aligning banking portfolios with macroeconomic scenarios aiming at carbon neutrality by 20501ST QUARTER 2022 RESULTS 5 MAY 202230
GROUPQUARTERLY INCOME STATEMENT BY CORE BUSINESSFrench Retail BankingIn EURmNet banking incomeOperating expensesGross operating incomeNet cost of riskOperating incomeNet income from companies accounted for by the equity methodNet profits or losses from other assetsImpairment losses on goodwillIncome taxNon controlling InterestsGroup net incomeAverage allocated capital**Group ROE ( after tax)Q1 222,188(1,720)468(47)421100(110)(1)31311,822Q1 ational Retail Bankingand Financial ServicesQ1 1 211,862(1,089)773(142)631020(158)833929,963Global Banking and InvestorSolutionsQ1 222,755(2,172)583(194)389100(76)1230214,128Q1 212,333(1,893)440(3)437100(83)834713,404Corporate CentreQ1 22115(254)(139)5(134)0001251(173)17,701*Q1 2127(155)(128)(2)(130)1103645(137)15,975*GroupQ1 .3%Q1 .2%* Calculated as the difference between total Group capital and capital allocated to the core businesses** Amounts restated compared with the financial data published in Q1 211ST QUARTER 2022 RESULTS 5 MAY 202231
GROUPUNDERLYING DATA - RECONCILIATION WITH REPORTED FIGURESQ1 22 (in EURm)Reported( ) IFRIC 21 linearisation( ) Transformation charges*UnderlyingQ1 21 (in EURm)Reported( ) IFRIC 21 linearisation( ) Transformation ,325)OperatingExpenses(4,748)60150(4,097)Cost of risk(561)(561)Cost of risk(276)(276)Net profit orlosses fromother assets2Impairmentlosses ongoodwill020Net profit orlosses fromother assets6Impairmentlosses ongoodwill060IncometaxGroup net oup net orate Center(1)BusinessCorporate Center(2)* Exceptional item(1) Transformation charges in Q1 22 related to RBDF (EUR 104m), GBIS (EUR 14m) and Corporate Center (EUR 25m)(2) Transformation charges in Q1 21 related to RBDF (EUR 38m), GBIS (EUR 1m) and Corporate Center (EUR 11m)1ST QUARTER 2022 RESULTS 5 MAY 202232
GROUPUNDERLYING DATA - IFRIC 21 IMPACTFrench Retail BankingInternational Retail Bankingand Financial ServicesGlobal Banking and InvestorSolutionsCorporate CentreGroupIn EURmQ1 22Q1 21Q1 22Q1 21Q1 22Q1 21Q1 22Q1 21Q1 22Q1 21Total IFRIC 21 Impact - costso/w Resolution ternational Retail BankingIn EURmTotal IFRIC 21 Impact - costso/w Resolution FundsTotal IFRIC 21 Impact - costso/w Resolution FundsInsuranceTotalQ1 22Q1 21Q1 22Q1 21Q1 22Q1 21Q1 22Q1 (65)(94)(50)Western EuropeIn EURmFinancial Services toCorporatesCzech RepublicRomaniaOther EuropeAfrica, Asia, Mediterraneanbassin and OverseasRussiaTotal International RetailBankingQ1 22Q1 21Q1 22Q1 21Q1 22Q1 21Q1 22Q1 21Q1 22Q1 21Q1 22Q1 21Q1 22Q1 al Markets and InvestorServicesFinancing and AdvisoryTotal Global Banking andInvestor SolutionsIn EURmQ1 22Q1 21Q1 22Q1 21Q1 22Q1 21Total IFRIC 21 Impact - costso/w Resolution (622)(490)(411)1ST QUARTER 2022 RESULTS 5 MAY 202233
GROUPCRR2/CRD5 PRUDENTIAL CAPITAL RATIOSPhased-in Common Equity Tier 1, Tier 1 and Total CapitalIn 2.8)(2.3)Goodwill and intangible(5.2)(5.2)Non controlling interests4.44.6Deductions and regulatory adjustments(5.4)(4.3)Common Equity Tier 1 Capital48.749.88.28.1Tier 1 Capital56.957.9Tier 2 capital10.510.6Total capital (Tier 1 Tier 2)67.568.5Risk-Weighted Assets377363Common Equity Tier 1 Ratio12.9%13.7%Tier 1 Ratio15.1%15.9%Total Capital Ratio17.9%18.8%Shareholder equity Group shareDeeply subordinated notes*Undated subordinated notes*Dividend to be paid & interest on subordinated notesAdditionnal Tier 1 Capital(1)Ratios based on the CRR2/CDR5 rules as published in June 2019, including Danish compromise for insurance (see Methodology). Ratio fully loaded at 12.8% and IFRS 9 phas
(1) Share Purchase Agreement (2) Based on the net value of the assets subject to the contemplated disposal as of December 31, 2021 witha EUR/RUB exchange rate of 85
