...SG is the fourth-largest French bank by total equity and benefits from a multi-channel retail presence in France, an international retail footprint in several countries, a good franchise in equity derivatives and euro-denominated debt capital markets, and sizeable operations in equipment finance and leasing. Our assessment of SG's business model benefits from the bank's geographic and business diversification, but is also limited by the inherent volatility of sales, trading and financial advisory revenues, which in 2016 accounted for 33% of operating income. The group operates in three divisions: French retail banking, global banking and investor solutions (GBIS), and international retail banking and financial services (IBFS). Concentrating on France's wealthier urban areas, SG's domestic retail franchise generates high revenue per customer. The group has a market share of about 7% in French retail deposits and 8% in loans, lower than that of the dominant cooperative banking groups. SG's...
