Understanding our first quarter 2024 results

Letter to shareholders N°140

Dear shareholders,

We are progressing in the execution of our strategic plan.

Our operating performance improved this quarter thanks to a strong contribution from Global Banking and Investor Solutions and solid revenues from International Retail Banking. The rebound of Retail Banking in France is under way with an increase in the net interest margin compared to last quarter, despite an increase in deposit beta in the French market. Similarly, the stabilisation of Ayvens’ margins has already begun, in a context of normalisation of used car sales prices. Costs are under control, in line with the trajectory presented at our Capital Markets Day.

At the end of the first quarter, Group net income stood at EUR 680 million. Our CET1 capital ratio was 13.2%, around 300 basis points above the regulatory requirement. It takes into account the 2023 share buy-back programme of around EUR 280 million that will be launched after the Annual General Meeting of 22 May.

In terms of strategic initiatives, we launched the Bernstein joint venture, creating a new leader in research and cash equity and we announced the planned disposals of Societe Generale Equipment Finance and subsidiaries in Morocco. These announcements follow on from the one made in February regarding the transformation plan of activities at the head office in France. 

Last, during the quarter Societe Generale set itself a new alignment target on the aviation sector, as part of its work with the Net Zero Banking Alliance (NZBA). The Group is targeting a -18% reduction in carbon emissions intensity by 2030 vs. the 2019 baseline.

These first positive results demonstrate the mobilisation of all the teams to shape a more synergetic and efficient model, a source of sustainable profitability.

I take this opportunity to thank you for the trust you have placed in our Group and for your long-term commitment.

Slawomir Krupa
Chief Executive Officer