Societe Generale one of the largest European financial services groups
reports his second quarter results for 2018.
Frédéric Oudéa, hello.
Hello
You are the CEO of Societe Generale
What are the main takeaways this quarter for your key businesses
I would say that in a steel contrasted environment financial
environment in Europe, we post very solid performances. I look at the group level :
our revenues are growing by more than 2% on a like-for-like basis and that
constant exchange rates. We show our discipline in the cost monitoring as
well as the risk, we have a very low cost of risk reflecting the quality of our
credit origination and all in all we post a net profit of 1.26 billion euros
with a good profitability encouraging profitability of more than 11% on
tangible asset basis. And when we look at each business each division all the
businesses contribute to that. In the French retail we pursue the
transformation but we show good level of credit development, we conquer new
clients, again we monitor in discipline our cost and all in all we have a
resilient profitability showing a the capacity to adapt to this new business
model. In particular Boursorama is showing more than 1.5 million clients and the
ability to reach the 2 million target one year ahead. All our international retail
activities and our financial services confirm their capacity to grow strongly
and be profitable it's across all the geographies. It's for credit as well as
deposits and it's true for again all the activities that's very positive and with
good profitability as I've said across the geographies and when we look at the
corporate and investment banking businesses we post strong results in the
financing which is one of the core activity of
group in structured finance and regarding capital markets we show a
rebound of our revenues in again still a difficult environment in Europe overall
compared with the first quarter and that's again very encouraging I think so
as you can see a pretty consistent set of results across our businesses.
You've announced several changes concerning the scope of your business activities what's
the thinking behind these deals we are completing the refocusing of the group
the optimization of the capital allocation to really our core businesses
the ones which have the critical size in the long term to compete effectively and
of course which have enough synergies with the rest of the businesses of the
group and as part of that process we have announced as part of these results
the disposal of our private banking activities in Belgium as well as the
sale of two subsidiaries in central Eastern Europe in Bulgaria and in
Albania and at the same time or more less at the same time just a few days
ago we have announced the acquisition of the equity market and commodity
activities of CommerzBank which will reinforce our overall a global market
activities so as you can see something very consistent with our overall
strategic plan transform to grow which has as an objective to give all the
resources to our core businesses to develop to grow and of course to transform
And since you just mentioned it what's the latest on your strategic plan
Well I think that these results and the first achievements show how
determined we are in the implementation of this three-year strategic plan is
that for a step of course half a year but let me just remind you we have
five main priorities. First grow the revenues and the revenues are growing as
I said by more than 2% organically. Second pursue the profound
transformation of our businesses and functions and
it's true across the board in particular embracing the new technologies and our
profound changes to implement, with benefits for our clients of course going forward.
Third, carry on monitoring with discipline our cost and risk clearly is
reflected in our figures. Fourth as I've just said an illustrated complete the
refocusing of the group and optimize the capital allocation. And fifth really
anchor a culture of responsibility across our business at all levels that
means of course putting the litigation of the past behind but also very
importantly with our global program around culture and conduct ensure of
course that everyone in the group shares these sense and culture of
responsibility to remain this partner, loyal partner, and keeping the trust of
our clients and of course the reputation of a group so as you can see pretty
encouraging first achievements and of course we'll carry on going forward
Frédéric Oudéa, CEO of Societe Generale thank you very much
thank you you're welcome
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