Societe Generale SA Q1 2021 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 just on the -- 2 questions. First of all, if I can come back just very briefly on French retail. If you could give us a bit of color around the guidance for full year. I think the last time we spoke in Q4, you seem to be a bit less negative. I mean are you still seeing significant headwind on NII and on the state-guaranteed loans rates? If you could provide color around the different components, the rate on the state-guaranteed loans that you've seen versus your outstanding book and the structural benefit as well which we could expect in the coming quarters. And my second question is going back to cost of risk. This is a very big change in the outlook, in the guidance that you're giving us today. And just wanted to get a bit more color of where -- by division, where this is mainly coming. Is this mainly corporates and CIB and French retail? I mean just if you could give us a bit more color on this change in confidence on the outlook.

Question: Omar Fall - Barclays Bank PLC, Research Division - Analyst : Just a couple of questions for me. So firstly, you had excellent risk-weighted asset control in the quarter despite higher volumes and activity in CIB. Could you give us some color on that and maybe some guidance for underlying RWA growth for the rest of the year? Should we think of the usual 3% annualized quantum as a good base? Then secondly, sorry to come back to the equities business, but the restructuring and derisking that you announced for this business was meant to reduce volatility. It seems to have reduced downside volatility this quarter. So is this kind of EUR 850 million of revenue the new level for us to base our forecast on? And I did take into account the answers you made earlier, but should we still be thinking of EUR 600 million as normalized, steady state? I'm using EUR 600 million because that's what you told us at the restructuring announcement, that you'd lose EUR 200 million to EUR 250 million in revenues from the 2019 base. And obviously, that gap makes a big difference to the sustainable returns at group level. So I'd love some more color there. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 06, 2021 / 9:30AM, SOGN.PA - Q1 2021 Societe Generale SA Earnings Call

Question: Omar Fall - Barclays Bank PLC, Research Division - Analyst : Sorry, just a very quick follow-up. Historically, you told us that you were somewhat underweight listed products versus structured products, which I guess we know of. You do quote high volumes in listed products. Was that a meaningful contributor here or really structured -- the core structured products franchise was the driver? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 06, 2021 / 9:30AM, SOGN.PA - Q1 2021 Societe Generale SA Earnings Call Slawomir Krupa - SociTtT GTnTrale SociTtT anonyme - Deputy GM and Head of Global Banking & Investor Solutions Activities So we'll talk about this some more on Monday, but the quick answer is it's probably fair to say that it's more balance today, including -- also because of acquisitions we made typically in -- the EMC acquisition in Germany. And so the contribution of all of the business was pretty balanced.

Question: Jonathan Matthew Balfour Clark - Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst : So 2 questions from me. First one is on the French retail revenue commentary. So I'm struggling a bit to reconcile the guidance of this plus or minus 1% corridor for the full year, with the guidance that the first quarter doesn't represent the run rate for the year because, if I annualize first quarter revenues, then already, you are at the top end of that plus 1% compared to the full year of 2020. So I'm just curious why you're -- how to reconcile those or why you're not more optimistic than that plus/minus 1% full year guidance given how impacted last year was by the crisis. And then second question is on International Retail Banking revenues. They were down quite a bit first quarter versus fourth quarter in Russia and in Africa. I'm just wondering whether there were any particular lumpy seasonal effects there and whether we should think of the first quarter as being the run rate level for Africa and for Russia or whether we might expect a recovery as the year progresses.

Question: Jonathan Matthew Balfour Clark - Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst : How then -- why then would subsequent quarters not be worse than the first quarter? You seem to be saying that the first quarter doesn't represent the potential for French retail. You talk about a rebound of -- activity increases when lockdown ends, et cetera. So I guess my question is are things getting better or getting worse versus the first quarter?