Societe Generale SA Global Banking & Investor Solutions Strategy Presentation Transcript

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

Question: Delphine Lee - JPMorgan Chase & Co, Research Division - Analyst : I just wanted to go back on financing -- follow-up on financing advisory, the question. So I understand what the impact of restructuring you've done in the past in 2018 and 2019. But any areas of growth where you're seeing margin pressures or lower growth? I mean, I guess you talked about the structural growth in energy and infrastructure and transaction banking. But what about the other areas? Just trying to understand a little bit the different components of F&A, which obviously includes really many businesses. The second question is just regarding -- I mean, capital allocation and just capital briefly. So I guess there's still a small part of TRIM. So just very briefly, I mean, how much is still coming in GBIS for TRIM? I mean, I guess that's quite small, but just want to have that number. And the last question is on equities. If we were to compare your revenue run rate that you have in '23 versus, let's say, pre-crisis of 2019, if you could just explain a little bit the moving parts of the subsegments, which are growing? I guess you've been talking about the market share gains in Delta One and the growth in listed products. But just trying to understand where -- what run rate can we expect on structured products versus the past. And then also any other things we should be aware of, I mean, in terms of trends.

Question: Jonathan Matthew Balfour Clark - Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst : A couple of questions, please. First one is on the financing and advisory division and the cost income ratio there. I'm just trying to understand why your cost income ratio is up in the kind of 60% to 70% range, where your closest peers' equivalent divisions are down in the kind of 45% to 55% range. Could you maybe explain the structural reasons why you would run with a higher cost income ratio than those peers, particularly given you just said that pure investment banking is a lower component than many in the market? And then second question is on the Security Services division, where you're forecasting flat revenues from a pretty weak year as a base period. And just understand -- I want to understand why you're so unambitious there? What's the problem? And if you can't grow that business, why are you the best owner for it? Why not just sell it?

Question: Jonathan Matthew Balfour Clark - Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst : Can I just follow up and ask what the return on equity is roughly there just for the Security Services business in isolation? Just so we can understand, if it is an ex growth business, why is it so attractive that you want to keep it? I mean... Slawomir Krupa - SociTtT GTnTrale SociTtT anonyme - Deputy GM and Head of Global Banking & Investor Solutions Activities So we don't disclose these figures at that granularity.

Question: Omar Fall - Barclays Bank PLC, Research Division - Analyst : Just looking at Slide 31, I think back in 2019, in that previous restructuring, you'd given us some very helpful return-on-equity metrics. I think investment solutions was like a 15% ROE; financing, above that; and the flow business, very low, less than 5%. Can you give us an idea of what those metrics look like now post that restructuring and your expectations going forward? Any period? And if you don't want to give firm numbers, just the direction of travel. And then second question, just a small clarification, and apologies if I missed this on the cost, but the difference between the EUR 5.5 billion and the EUR 5.7 billion will be entirely revenue-led, right? That's just incremental business -- that incremental business development bit on Slide 18 in the chart, i.e. in other words, if revenues are good, then variable comp will be up and that's captured by that gap is the right way to look at it.

Question: Kirishanthan Vijayarajah - HSBC, Research Division - Analyst : Yes. A couple of questions from my side. One on FIC and on GTB, if I may. So on the fixed side, how do you think about your competitive positioning in things like credit trading, DCM, particularly in U.S. and Asia, where you don't necessarily have the depth of corporate relationships you have in Europe. So is that an area you think you might need to invest, particularly where it overlaps perhaps with your ESG ambitions. So are you happy with your current capabilities, I guess, in U.S. Asia FIC. And then secondly, on GTB, the EUR 500 million investment program you talked about. Just trying to understand, is that a defensive measure to stay relevant technology-wise, i.e., are all GTB players needing to make that type of investment? Or are you thinking a bit more as driving incremental revenues? And if so, what sort of revenue uplift should that $0.5 billion investment generate in GTB, please?