Half 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 : So my first question would be on capital. Just wanted to go back to your guidance of around just below -- or at 12% by year-end. Just wondering if you could give us more details around the headwinds that we're going to see in the second half. Because if I'm not wrong, you're already at 12.8% as your pro forma of the benefit from the state-guaranteed loans, which are going to reverse in Q3. So if you could just maybe give us how much you expect from ratings migration. Do we have more than the 8 basis points we've seen? And also the operational risk you mentioned that you haven't taken yet. My second question is on cost of risk. Your 70 basis points guidance, which I recall is around EUR 3.5 billion, implies only a very small increase in Stage 3 provisions in the second half. So if you could just give us maybe a little bit of color around why that is. And then also, do you expect provisions to remain elevated in 2021? Any color on what we should expect for next year?

Question: Kirishanthan Vijayarajah - HSBC, Research Division - Analyst : So firstly, just a clarification. So William, did you say you've increased the stock of revenue reserves you've taken against level 3 assets in the quarter? And if you could just quantify that, please. And presumably, that's all in Global Markets rather than in the Corporate Centre? And then second question is on French retail and this issue of deposits growing faster than loans not hurting your net interest margin. I just wondered, do you think that buildup of cash deposits on your balance sheet, is that continuing through into the second half, do you think? Or is it more just towards a blip because of the crisis? And so that sort of drag on net interest margin slowly unwinds as that sort of excess liquidity kind of grips feed -- grip feeds off your balance sheet as we head into the end of the year?

Question: Jean Sassus - ODDO BHF Corporate & Markets, Research Division - Analyst : Two questions, if I may. The first one is very basically regarding the TLTRO. What kind of impact should we expect in H2? Is it significant? Is it something which could support really the net interest income? Second question regarding the goodwill impairment and [CTA], I think, you charged in Q2. Could you share with us the assumptions in terms of future profitability you used as an input for those impairments?

Question: Omar Fall - Barclays Bank PLC, Research Division - Analyst : I'm very sorry to come back to structured products. I didn't hear STverin's answer to some of the questions as the line is a bit bad. So just -- I just wanted to clarify the EUR 450 million of savings, it's not just the costs associated to all the costs. And it's a broader target for more cost savings, even from businesses not directly affected by this derisking. So where are these costs going to come from in terms of their nature? Because you've already done so much on the expense base since CIB. I mean, you took out EUR 500 million as recently as the last year. So how can we be comfortable this doesn't have even more of an impact on revenues in other businesses beyond the EUR 200 million to EUR 250 million revenue losses you've highlighted? And then is there an opportunity to sell some of the impacted portfolios to competitors to accelerate things? Some of your peers have done this in the past. And then if you could give us what the risk-weighted assets associated with the perimeter being looked at, that would be helpful. And then the second question is just on loans and moratorium. Could you just give us a bit more detail on these programs? I know this kind of spread out a bit across the presentations, but how they're performing at the end of that grace period. And also whether you expect these balances to reduce meaningfully from here, that would be helpful.