Société Générale (GLE) 29th Annual Financials CEO Conference summary

Strategic progress and capital management

• Maintained a realistic and ambitious plan focused on strong capital foundations, targeting a 13% CET1 ratio post-Basel IV, with progress ahead of trajectory.

• Executed nine disposals in Africa, equipment finance, and private banking to simplify the business model and focus on core areas.

• Cost reduction efforts include head office streamlining, technology upgrades, and ongoing integration of Ayvens and French network merger.

• Cost-to-income ratio at 68% and ROE above 7% last quarter, with a goal to double reported ROE to around 10%.

• Committed to maintaining 13% CET1, with excess capital above this level to be proactively managed, including potential shareholder returns.

French retail banking performance and outlook

• Net interest income guidance was downgraded due to underestimated deposit migration and lower-than-expected loan origination.

• Deposit base remains stable in market share and absolute terms, with a client base skewed toward wealthier individuals and strong SME presence.

• Deposit migration is stabilizing, aided by lower rates and unchanged Livret A rates, though high savings and macro uncertainty persist.

• Lending growth expected to improve as rates fall and margins recover, with long-term NII outlook positive as balance sheet repricing continues.

• Asset quality remains sound, with recent losses attributed to a handful of idiosyncratic cases rather than macro trends.

Integration, cost synergies, and business focus

• Integration of SG Network and Crédit du Nord is 90% complete operationally, with most cost-to-achieve booked and full synergy benefits expected by 2026.

• Over 400 of 600 planned branch closures completed, with the remainder to finish by year-end.

• Focused investments in core businesses such as Ayvens, Boursorama, and global banking partnerships to drive higher returns and efficiency.

• Boursorama continues strong client acquisition and is on track for profitability by 2026, with recent quarters already showing positive contributions.

• Ayvens faces downward pressure from used car sales values but is offsetting with margin improvements and cost synergies, targeting 13-15% ROE by 2026.