Full Year 2020 Societe Generale SA Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Delphine Lee - JPMorgan Chase & Co, Research Division - Analyst : Yes, sorry, I was indeed on mute. I'm sorry about that.

Question: Delphine Lee - JPMorgan Chase & Co, Research Division - Analyst : So 2 questions. First one is going back on capital. You're basically at 12% Basel IV. So the question is, why not increase the payout ratio for '21, for example? You're already paying over 50% for 2020. So just wondering your thinking for '21, which is at this point unchanged. And related to that, what's the rationale for not increasing the share buyback component, both for '21 and actually 2020, given where the share price is? And then my second question is on the revenue guidance, which seems to suggest decent, let's say, growth for 2021. If you could provide some color on -- does that assume further pressure in French Retail? And what is your assumption for CIB?

Question: Omar Fall - Barclays Bank PLC, Research Division - Analyst : Sorry, could you -- can you hear me?

Question: Omar Fall - Barclays Bank PLC, Research Division - Analyst : So just firstly, just going back to costs. I wanted to clarify the commitment that 2023 underlying expenses will be lower than 2020. Does that mean that costs will keep growing and then you get a sort of cliff effect in 2023 or you'd expect a gradual decline from 2022 already, especially as some of the EUR 450 million in savings from GBIS come through. I just want to make sure my kind of reading comprehension isn't too bad. And then the second question is just if you could update us on revenue and/or -- and if you don't want to touch on revenue, but at least some loan growth outlook for French retail excluding -- the state-guaranteed loans were like in the low single digits. So do you think that's sustainable? Because even with the recovery out of the pandemic, there's obviously a debate around corporates having to cut their gross debt and question marks around mortgage growth. So I'd love to get your insights on that.

Question: Omar Fall - Barclays Bank PLC, Research Division - Analyst : I guess I was really interested in your thoughts going forward on the outlook for credit growth in France, if I may. Sebastien Proto - SociTtT GTnTrale SociTtT anonyme - Deputy GM and Head of the Societe Generale & CrTdit du Nord Networks As we said, and as FrTdTric said, I'll talk about the scenario for France -- for the French market is progressive in continuing recordly. Obviously, depending on the (inaudible) context. But central scenario is more positive.

Question: Jonathan Matthew Balfour Clark - Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst : A couple of questions on asset quality, please. So first one, could you give a bit more detail on why your Stage 2 loans went up so much in the fourth quarter and you didn't really seem to take that much more provisions against them, I mean, a bit more -- the coverage fell quite a bit. So we've seen that trend elsewhere, but could you just explain to you why that was and why you didn't feel the need to put aside more in the way of Stage 2 provisions in the fourth quarter? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 10, 2021 / 1:00PM, SOGN.PA - Full Year 2020 Societe Generale SA Earnings Call And then second question on cost of risk, is about your guidance to be down year-on-year. Clearly, one of your major peers has guided a bit more specifically that it should return to the over-the-cycle level this year. I mean is there any reason why yours couldn't do that? Why it couldn't see a very meaningful improvement rather than just being down, which could be just a basis point better rather than 10 or 20 basis points better?

Question: Jonathan Matthew Balfour Clark - Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst : Can I just ask why the coverage of your Stage 2 came down so much then? Why was it that the new Stage 2 loans that you've been -- in the fourth quarter or towards the end of the year need much less provisioning against than your existing Stage 2? Because I think your -- one of your slides at one point.

Question: Jonathan Matthew Balfour Clark - Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst : Very clear. And sorry, I interrupted on (inaudible).