On 4 May 1864, Napoleon III signed Societe Generale’s founding decree. Founded by a group of industrialists and financiers driven by the ideals of progress, the Bank’s mission has always been “to promote the development of trade and industry in France”.

Since its beginnings, Societe Generale has worked to modernise the economy, following the model of a diversified bank at the cutting edge of financial innovation. Its retail banking branch network grew rapidly throughout the French territory, increasing from 46 to 1,500 branches between 1870 and 1940. During the interwar period, the Bank became the leading French credit institution in terms of deposits.

At the same time, Societe Generale began to build its international reach by financing infrastructure essential to the economic development of a number of countries in Latin America, Europe and North Africa. This expansion was accompanied by the establishment of an International Retail Banking network. In 1871, the Bank opened its London branch. On the eve of World War I, Societe Generale had a presence in 14 countries, either directly or through one of its subsidiaries. This network was then expanded by opening branches in New York, Buenos Aires, Abidjan and Dakar, and by acquiring stakes in financial institutions in Central Europe.

Societe Generale was nationalised by law on 2 December 1945 and played an active role in financing the reconstruction of France. The Bank thrived during the prosperous post-war decades and contributed to the increased use of banking techniques by launching innovative products for businesses, including medium-term discountable credit and lease financing agreements, for which it held the position of market leader.

Societe Generale demonstrated its ability to adapt to a new environment by taking advantage of the banking reforms that followed the French Debré laws of 1966-1967. While continuing to support the businesses it partnered, the Group lost no time in focusing its business on individual clients. In this way, it supported the emergence of a consumer society by diversifying the credit and savings products it offered private households.

In June 1987, Societe Generale was privatised with a successful stock market launch and shares offered to Group staff. The Group developed a universal banking strategy, in particular through its Corporate and Investment Banking activities, to support the worldwide development of its customers. In France, it expanded its networks by founding Fimatex in 1995, which later became Boursorama, now France’s leading online bank, and by acquiring Crédit du Nord in 1997. Internationally, it established itself in Central and Eastern Europe through Komerční banka in the Czech Republic and BRD in Romania while consolidating its growth in Africa in Morocco, Côte d’Ivoire Senegal and Cameroon, among other countries. Building on the professionalism of its teams and the relationship of confidence developed with its clients, the Bank continues its process of transformation by adopting a sustainable growth strategy driven by its core values of team spirit, innovation, responsibility and commitment.

In January 2023, the Group announced the creation of its new retail bank in France, SG, following the merger of its two retail banking networks in France, Societe Generale and Crédit du Nord, in order to offer its customers greater proximity, responsiveness, expertise and responsibility.

Today, the Group has more than 117,000 members of staff⁽¹⁾ active in 66 countries. Firmly focused on the future by helping clients bring their projects to life, Societe Generale is committed to the two major revolutions of digital technology and environmental transition and social change to support its clients, have a positive impact on the world and embody the bank of the 21^st century. Drawing on nearly 160 years of expertise at the service of its clients and the sustainable development of economies, the Societe Generale Group defined its purpose as “Building together, with our clients, a better and sustainable future through responsible and innovative financial solutions”.

Societe Generale is one of the leading European financial services groups. Based on a diversified and integrated banking model, the Group combines financial strength and proven expertise in innovation with a strategy of sustainable growth. Committed to the positive transformations of the world’s societies and economies, Societe Generale and its teams seek to build, day after day, together with its clients, a better and sustainable future through responsible and innovative financial solutions.

Active in the real economy for over 150 years, anchored solidly in Europe and connected to the rest of the world, Societe Generale employs over 117,000 members of staff⁽¹⁾ in 66 countries and supports on a daily basis 25 million individual clients, businesses and institutional investors⁽²⁾ around the world by offering a wide range of advisory services and tailored financial solutions. The Group is built on three complementary core businesses:

Societe Generale follows a strategy of responsible growth, fully integrating its CSR engagements and commitments to all its stakeholders: clients, staff, investors, suppliers, regulators, supervisors and representatives from civil society. The Group seeks to respect the cultures and environment of all the countries where it operates.

The Group has an agile organisation based on 14 Business Units (business lines and regions) and 10 Service Units (support and control functions) to encourage innovation and synergies, and best meet the evolving requirements and behaviours of its clients. In a European banking sector undergoing radical industrial change, the Group enters a new phase of its development and transformation.

Additional information on the Group’s organisation and key figures is provided below and on pages 10 and following.

Societe Generale is included in the principal socially responsible investment indices: DJSI Europe, FTSE4Good (Global and Europe), Bloomberg Gender-Equality Index, Refinitiv Diversity and Inclusion Index, Euronext Vigeo (Europe and Eurozone), STOXX Global ESG Leaders indices and MSCI Low Carbon Leaders Index (World and Europe).

The Societe Generale Group has built a solid diversified banking model suited to the needs of its 25 million corporate, institutional and individual clients. It is structured around three complementary and diversified businesses, all benefiting from strong market positions:

In the Retail Banking businesses, the Group focuses on development in European markets selected for their growth potential (France, the Czech Republic and Romania) and Africa where it has an historic presence, refined understanding of the markets and top-tier positions. In International Financial Services, Societe Generale relies on franchises benefiting from leadership positions worldwide. As part of the Group’s prime focus on developing its mobility franchises, it announced ALD’s plan to acquire LeasePlan. In the Global Banking and Investor Solutions businesses, the Group provides high value-added solutions to its clients in the EMEA region, the US and Asia. Focused on Europe yet boasting a global network, the Societe Generale Group capitalises on leadership positions driven by cross-business synergies to create value for stakeholders. The Group leverages its diversified model to meet the needs of its corporate and professional clients, as well as its individual clients.

2022 marked a decisive stage for the Group, which was able to deliver very strong commercial performances in all its businesses amid a complex and uncertain economic and financial environment, staying on track to meet its 2025 targets for profitable and sustainable growth. This positive momentum was borne out by solid commercial and financial performances across the board, driven by a record result in Financing & Adivisory, Global Markets and ALD, strong growth in International Retail Banking, Financial Services, and in Private Banking and a solid resilience from French Retail Banking. These performances bear out the Group’s extensive efforts over several years to strengthen the inherent quality of its businesses, improve operational efficiency and manage risk. It successfully passed key milestones in a number of other strategic projects, in particular:

The Group also finalised in May 2022 the effective and orderly withdrawal from Russia following the disposal of Rosbank and its Russian insurance subsidiaries.

The Group continued to pursue its selective scarce resource allocation strategy and its focus on achieving the optimal region/offer/client mix, and confirmed its strong resolve to keep costs firmly under control. The adjustments it has made are designed to mark out high-margin growth businesses that enjoy strong commercial franchises and create value for the Group.

Organic growth will continue to be accelerated by unlocking internal synergies not only within each business but also between businesses. This will entail greater cooperation between Private Banking and the Retail Banking networks, cooperation along the entire Investor Services chain, cooperation between the Insurance business and the French and International Retail Banking networks, and cooperation between regions and Global Transaction Banking’s activities, among others.

One of the Group’s priorities is to push further ahead with its commercial development, focusing on quality of service, added value and innovation to ensure client satisfaction. Its goal is to become a trusted partner for its clients, making sound use of its digital capabilities to provide them with responsible and innovative financial solutions. To this end, the Group is pursuing various digital transformation and operational efficiency initiatives.

Fully aware of its role in the functioning of the economy, the Group has placed specific strategic importance on its environmental, social and governance commitments.

Environmental and social issues represent society’s greatest challenges this century – challenges that have been accentuated by geopolitical tensions and the pandemic.

Profound societal change is called for, involving substantial adjustments to how we produce and consume. This will inevitably give rise to a number of difficulties and constraints, but Société Générale also sees business opportunities in these transformations by contributing to the financing of the fair and inclusive environmental transition. According to the International Energy Agency, achieving NZE by 2030 will call for almost USD 4,000 billion in investments each year, an unprecedented amount for such a limited timeframe.

If it is to meet its stakeholders’ expectations and help its clients address these challenges, the Group needs to press on with its own transformation, making environmental and social issues a key factor in its decision-making processes and offering its clients financing and investment solutions adapted to their new needs. With this in mind, Societe Generale is training its teams on the transition challenges specific to each sector and developing a more holistic approach to how it analyses both financial and non-financial risk. The Group wants to do more than simply offer financial advice. It has put together teams with expert knowledge of the issues relevant to its major corporate clients’ value chains and established international cross-business working groups to identify emerging ESG standards and come up with ways to meet them. And of course, to ensure the transition is fair and inclusive, the financial system also needs to take care of disadvantaged populations, offering them solutions suited to their situation.

These Corporate Social Responsibility (CSR) challenges are central to Societe Generale’s strategy.

Committed to supporting its clients, the Bank has made CSR a core component of all of its businesses, viewing it as an opportunity to innovate and become more sustainable. In response to this new environment and the challenges it brings, and in keeping with the Group’s values and what its stakeholders expect from it – based on the findings of the materiality survey carried out in 2021 (see Chapter 5, page 336) – Societe Generale has reaffirmed its CSR ambition for 2025, placing the focus on four main priorities.

Of these, two form the framework for responsible banking:

The other two guide positive changes in connection with the Group’s activities:

The Group has upped its commitments to keep pace with its ongoing transformation: a EUR 300 billion contribution to sustainable finance by 2025, a 50% reduction in its CO₂ emissions by 2030 (compared with 2019 levels) and ESG training for all staff.

Through its geographic presence, the diversity of its businesses and its responsible engagement, Societe Generale also contributes towards the UN’s Sustainable Development Goals (SDGs) (for more information, see https://www.un.org/sustainabledevelopment/sustainable-development-goals/). This can be clearly seen in the four core themes of its CSR ambition:

The CSR ambition permeates all Group businesses:

Societe Generale continues to foster a group-wide culture of responsibility and to strengthen its internal control framework, especially its Compliance operations, to meet the banking industry’s highest standards. It has also completed the rollout of its Culture & Conduct programme, embedding rules of conduct and strong shared values throughout the entire organisation.

Last, the Group is determined to press ahead with its stringent and disciplined approach to capital allocation and risk management – maintaining credit portfolio quality, keeping up its efforts on operational risk control and compliance.

In line with its strategy of fully addressing its clients’ needs and taking into account the new, more demanding regulatory environment, the Group’s focus will remain on optimising its consumption of scarce capital and liquidity resources and maintaining a highly disciplined approach to costs and risk management.

Outlook

In 2022, the Board of Directors of Societe Generale decided to propose Slawomir Krupa as director to shareholders to replace Frédéric Oudéa at the General Meeting on 23 May 2023. Once elected, Slawomir Krupa will be appointed Chief Executive Officer by the Board of Directors.

The Group has set the following financial targets for 2023:

Looking further out, the Group is fully on track to achieving its strategic milestones and has set targets for profitable and sustainable growth out to 2025 with:

The Board of Directors decided its distribution policy which corresponds to an equivalent of EUR 2.25 per share⁽²⁾. A cash dividend of EUR 1.70 will be proposed at the General Meeting of Shareholders on 23 May 2023. The dividend will be detached on 30 May 2023 and paid out on 1 June 2023.

The Group is also planning to launch a share buyback programme for a total of arond EUR 440 million, i.e., equivalent to EUR 0.55 per share. The rollout of the programme is subject to the usual approval by the ECB.

In light of the strong financial performance in 2022 and an exceptional year, this distribution level fairly remunerates shareholders and further strengthens the Group CET1 ratio.

French Retail Banking

The French Retail Banking business has made sweeping changes to its model in response to rapidly evolving client behaviours and demand for ever greater convenience, expertise and customised products and services. The pace of this transformation has picked up since 2020, with two major strategic initiatives: the merger of Crédit du Nord and Societe Generale, and moves to ramp up growth at Boursorama. These initiatives are designed to cement the Group’s winning combination of a fully online banking model coupled with a network banking model offering both digital and human expertise – a combination that stands out in the French market.

The Group saw the Crédit du Nord-Societe Generale merger through to completion in 2022, with 1 January 2023 marking its legal entry into effect. The resulting new retail banking entity has been branded SG. The IT migration of all Crédit du Nord branches to Societe Generale’s system is scheduled for the first half of 2023, with branch mergers and back office changes due to take place progressively as of the second half of 2023 and through to 2025.

SG aims to become a leading banking partner for its 10 million clients within the French market and has set its sights on being among the Top 3 French banks for client satisfaction.

It has introduced a new relationship model, designed to improve the quality of service it provides to its individual, professional and corporate clients and establish SG as a leading operator in the French market for savings, insurance and first-rate solutions addressing corporates and professionals alike.

SG promises its clients convenience, responsiveness, expertise and responsibility. It will be:

From a financial perspective, the merger will unlock considerable cost synergies. The cost to income ratio of Franch Retail Banking is expected to range between 67% and 69% in 2025 and the return on normative equity (RONE) under Basel IV is targeted at around 10% in 2025.

French Retail Banking also plans to build on its existing growth drivers. Specifically, this means:

In Wealth Management, Private Banking is moving forward with its strategy of operating in open architecture, distributing savings solutions to clients throughout its network. By offering investment and asset management solutions through partnerships with external asset managers, Societe Generale gives its savers access to the best investment expertise in France and internationally, while at the same time responding to their growing demand for socially responsible investment. The Wealth & Investment Solutions business within Private Banking focuses primarily on structuring savings, asset management and investment solutions for the Group’s private banking and retail banking networks, as well as providing structured asset management solutions for its Global Markets clients.

Last, the Group continues to support the development of its online bank. Boursorama offers its clients a broad and diversified range of online banking services, an efficient model and an unbroken 15-year record as the lowest-cost bank on the market⁽¹⁾, resulting in excellent client satisfaction and recommendation scores.

Over 2022, Boursorama increased its lead on the French market, acquiring more than 1.4 million net new clients, bringing its total client base to over 4.7 million by the end of the year. It also finalised its partnership agreement with ING, resulting in around two-thirds of ING’s eligible clients transferring to Boursorama, bringing with them some EUR 9 billion in outstandings (half of which was in life-insurance savings).

The Group has confirmed its goal of onboarding an increasing number of clients at Boursorama and has set a target of more than 5.5 million customers by end-2023.

International Retail Banking and Financial Services

International Retail Banking and Financial Services is a profitable growth driver for the Group thanks to its leading positions in high-potential markets, its operational efficiency and digital transformation initiatives, and its ability to unlock synergies with other Group activities. These businesses have undergone a major transformation over the last few years to fully refocus the portfolio, introduce a more optimised model and improve the underlying risk profile. This last point has been illustrated by their orderly pull-out from Russia in response to the worsening conflict in Ukraine. As the conflict escalated, the Group decided to divest Rosbank and its Russian insurance subsidiaries – a transaction completed in May 2022.

International Retail Banking activities are mainly located in regions outside the eurozone. They benefit from positive long-term growth fundamentals and the current uptick in interest rates, despite the prevailing economic uncertainty in those regions due to high inflation. This uncertainty has not affected the Group’s plans for its international banking activities – it intends to press on with its strategy of consolidating leadership positions and pursuing responsible growth in Europe and Africa. Its capacity to meet client needs, coupled with its innovative, unique and efficient platforms, will serve it well in this undertaking:

As part of the Grow with Africa programme developed in partnership with a panel of international and local partners, Societe Generale has announced several sustainable growth initiatives to foster positive transformation across the continent. Accordingly, the Group is concentrating on providing multidimensional support to African SMEs, funding infrastructure, supporting the energy transition and developing innovative financing solutions.

Financial Services and Insurance enjoy competitive positions and strong profitability, in particular with ALD and Insurance, both of which benefit from robust growth potential. All Financial Services and Insurance businesses are continuing to roll out their programmes to innovate and transform their operational model:

Societe Generale also plans to continue moving forward with its strategy of unlocking synergies between the activities of the various businesses in this division and elsewhere within the Group, with Private Banking and the regional Corporate and Investment Banking platforms, by developing its commercial banking services such as trade finance, cash management, payment services and factoring, and by further developing its bancassurance model.

Global Banking and Investor Solutions

In 2022, Global Banking and Investor Solutions (GBIS) pushed further ahead with initiatives rolled out since 2021 with respect to its five strategic pillars - balancing its business mix, bringing down its profitability threshold, reducing its idiosyncratic risk profile, increasing its share of CSR-native businesses and expanding the reach of its digitalisation.

Global Banking and Investor Solutions stands on strong foundations: it has built up a solid and stable diversified client base, high value-added product franchises and and recognised sector expertise backed by a global network. GBIS serves the financing and investment requirements of large and diversified client base spanning corporates, financial institutions and public-sector entities. Having undergone considerable transformation in recent years – reducing its breakeven point, de-risking the Global Markets business and adjusting the balance between its businesses – GBIS is now focused on delivering value to all its stakeholders through sustainable and profitable growth.

Its growth strategy reflects where the opportunities for economic growth currently reside, i.e., increased financing needs for infrastructure and the energy transition, greater investment in private debt and the growing demand for savings solutions. At the same time, Global Banking and Investor Solutions is gradually and methodically recalibrating its businesses, particularly Global Markets and Financing and Advisory, making targeted capital allocations to growth initiatives for particular client segments, businesses and regions. In particular, the plans to form a joint venture in cash equities with AllianceBernstein, announced in November 2022, will bring further diversification to the Group’s investment banking activities and offer its large clients premier strategic expertise and insights.

The Group is therefore maintaining its unrelenting focus on:

RECENT DEVELOPMENTS AND MACROECONOMIC AND REGULATORY OUTLOOK

The uncertainty unleashed by the war in Ukraine continues to run rife and is fuelling supply chain disruptions in both goods and services, especially for energy and foodstuffs. In Europe, gas supply problems may continue even beyond 2023, with knock-on effects on electricity prices. A harsh winter and a decision by Russia to completely shut off the gas taps could make gas rationing a reality.

The coming quarters should see the remaining pandemic-related restrictions in China gradually lifted. Worldwide, the pandemic risk persists, however, necessitating investment in prevention and vaccines. But in emerging countries, this investment is likely to fall short of requirements, meaning that pandemic-related risks will continue to weigh on the global growth outlook.

Economic activity has slowed due to inflation and the resulting cost-of-living crisis, as well as economic policy tightening. Job markets and household savings are nonetheless holding up well in the more advanced economies, which should enable them to avoid slipping into deep recession. Technical recessions, on the other hand, are to be expected in both the US and Germany over 2023. We are likely to see a greater number of bankruptcy filings under the combined effects of the economic slowdown, tightening of financial conditions and higher debt levels.

Looking beyond 2023, rising interest rates will hamper the recovery. Although rates appear to have peaked, the lag effects of monetary tightening will continue to feed through to the economy. Financial conditions will also be affected by central banks continuing (the case of the Fed) or starting (the case of the ECB) to shrink their balance sheets.

Last, geopolitical divisions will remain a structural drag on global trade and capital flows.

In light of this, the Group’s baseline scenario is for global growth of 2.2% in 2023 after 3.1% in 2022. Looking forward beyond 2023, recovery will continue to be damped by a higher interest environment.

The 2022 regulatory landscape was marked by the specific measures taken in response to Russia’s invasion of Ukraine: successive waves of unprecedented sanctions, aid packages for refugees and companies affected by the war, and debate over how to reform hard-hit European energy markets.

In addition to these measures prompted by the prevailing economic conditions, progress was also made in 2022 on a number of structural regulatory projects designed to strengthen the prudential framework, support environmental and digital transitions, protect consumers and develop European capital markets:

Uncertainty prevails over the timetable for rolling out this reform in the main non-EU jurisdictions, which is not expected to coincide with the Basel timetable of 1 January 2025;

The EU also introduced requirements for banks to be more thorough in addressing their exposure to climate and sustainability risks and more transparent about disclosing ESG risks in their prudential publications. The ECB conducted climate stress tests in 2022 and the Commission now includes ESG risks when reviewing the prudential framework. Starting in 2023, credit institutions will have to publish detailed information on their exposure to climate risks. The European Parliament made the prudential treatment of significant GHG-emitting assets part of the CRD6/CRR3 proposal implementing the Basel Accords, pre-empting the conclusions of the European Banking Authority (EBA) on the issue, expected in 2023.

With other national and international initiatives fast multiplying, the question of how the EU’s legislation will interact with measures introduced outside its borders is more relevant than ever. The EU will want to reassert its role as pioneer in the field and avoid any distortion of competition with non-EU operators;

In the wake of its targeted consultation, the Commission is expected to soon announce proposals on open finance, which will feed into fundamental discussions surrounding payments and retail banking (such as on the European Payment Initiative and how to generalise instant payments faster). The PSD2 evaluation and the ECB’s proposal for a central bank digital currency – both slated for the first half of 2023 – will be key steps in this respect;

French Retail Banking (RBDF) offers a wide range of products and services suited to the needs of a diversified base of individual and professional clients, businesses, non-profit associations and local authorities. It leverages on synergies with the Group’s specialised businesses, in particular the Insurance, the Private Banking or the Corporate & Investment Banking businesses. Accordingly, French Retail Banking distributes insurance products of Sogecap and Sogessur, subsidiaries which are part of the International Retail Banking and Financial Services’ division.

Relying on the know-how of its teams and an efficient multichannel network, the pooling of best practices, and the optimisation and digitalisation of processes, Retail Banking France combines the strength of three complementary brands: Societe Generale (a leading French bank that has housed Private Banking since January 2022) and Crédit du Nord (a group of regional banks) which are pushing further ahead with a transformational project to merge their networks, and Boursorama Banque, a key online banking operator.

In 2022, average life insurance outstandings reached EUR 120 billion, compared with EUR 119 billion in 2021.

The networks continue to support the economy and support their clients with their financing projects. Average loan outstandings of the networks rose from EUR 238 billion in 2021 to EUR 247 billion in 2022. At the same time and in a context of an intense competition, deposit collection generated a loan-to-deposit ratio of 85.2% in 2022, down 1.1 points compared to 2021.

*  Average quarterly outstandings.

Societe Generale network

The Societe Generale network offers solutions tailored to the needs of its 6.7 million individual clients as well as almost 420,000 professional clients, non-profit associations and corporate clients, representing EUR 180 billion in outstanding deposits and EUR 159 billion in outstanding loans in 2022.

To achieve this, the network leverages three major strengths:

Societe Generale continued to expand its network and increase its service offering in 2022 in response to its clients’ requirements and with a view to enhancing customer satisfaction. These efforts focused notably on promoting the increased use of electronic signatures for professionals and in the short-term credit and MLT credit markets. Societe Generale broadened its commercial offering dedicated to TPEs and modified its lending services (on the application and decision for MLT loans), supported by training sessions and a change management programme.

Last, Societe Generale has made sustainable development the linchpin of its strategy by not only ensuring that its direct environmental impact is controlled through actions to reduce its waste and carbon footprint but by also developing an offer to support its clients in their own energy transition: in 2022, Societe Generale and Crédit du Nord launched a comprehensive support framework for companies, SMEs, associations and local authorities to enable them to develop a more sustainable model. They furnish new advisory and financing solutions in conjunction with top-name partners. Irrespective of their profile, the Bank also offers to measure clients’ greenhouse gas emissions, in partnership with Carbo.

Crédit du Nord network

The Crédit du Nord group consists of nine regional banks – Courtois, Kolb, Laydernier, Nuger, Rhône-Alpes, Société Marseillaise de Crédit, Tarneaud, Société de Banque Monaco and Crédit du Nord – and an investment services provider, the brokerage firm Gilbert Dupont.

Crédit du Nord entities are characterised by a large degree of autonomy in managing their activities, which is chiefly expressed by rapid decision-making and responsiveness to client demands.

The quality and strength of the results of the Crédit du Nord group have been recognised by the market and are confirmed by the long-term A- rating attributed by Fitch.

Crédit du Nord serves 1.6 million individual clients⁽¹⁾, 210,200 professional clients and non-profit associations and 46,400 corporate and institutional clients. In 2022, its average outstanding deposits totalled EUR 58 billion, compared with EUR 57 billion in 2021, while average loan outstandings stood at EUR 55 billion, compared with EUR 52 billion in 2021.

Merger of the France networks

In December 2020, Société Générale and Crédit du Nord expressed their intention to merge their two networks to create a new retail bank with the aim of serving 10 million clients and ranking among the Top 3 for customer satisfaction.

The plan focuses on four main strategic planks:

In 2022, several key milestones were achieved to create the new retail bank in France:

On 1 January 2023, Societe Generale Group carried out the legal merger of its two French Societe Generale and Crédit du Nord retail banking networks. SG will henceforth become the Group’s new retail bank in France.

Crédit du Nord’s IT system will initially be migrated in two stages to Societe Generale’s information system during the first quarter of 2023. Agency pooling will commence in the second half of 2023 and the initial phase will involve 150 batchings (30%). Some 80% of the link-ups will be performed by the end of 2024, with the remaining 20% finalised by the end of 2025.

Boursorama

Boursorama is a subsidiary of Societe Generale and a pioneer and leader in France for its three main businesses: online banking, brokerage and online financial information at boursorama.com, ranked No. 1 for economic and stock market news. An online bank accessible to all, without any revenue or financial wealth prerequisites, Boursorama’s promise is the same as it was when it was first created, i.e. simplify clients’ lives at the most competitive price and furnish the best service possible to boost their purchasing power.

At end-2022, Boursorama served nearly 4.7 million clients – a 41% increase in the space of a year alone. This rapid growth has been matched by an increase of more than EUR 15 billion in the bank’s outstandings over the period (over EUR 66 billion at end-December 2022, including EUR 16 billion in loans, EUR 13 billion in current accounts and EUR 37 billion in savings and share securities) which demonstrates the appeal of its fully online model based on client independence and a comprehensive range of 43 banking products and services, rounded out by 1,000 functionalities with automated processes.

The year 2022 was dominated by the i) a record client acquisition with 1.5 million new clients, on top of a substantial 20% drop in the client acquisition cost, ii) the successful integration of ING’s former clients (around 300,000 new clients and almost EUR 9 billion in outstandings, of which half covers life insurance savings, and iii) over and above its successful regular banking offer, it is committed to clients, providing a wide range of products and services, such as:

Boursorama was voted the least expensive bank for the 15^th consecutive year (source: Le Monde/Panorabanque 2022), best bank for students and young working adults (Selectra 2022) and France’s preferred bank for digital banking (source: Opinionway 2022). The online bank was ranked No. 1 on app stores, with a rating of 4.9/5 on iOS and 4.8/5 on GooglePlay. It boasts a Net Promoter Score of +35 for the sector (source: Bain and Company, January 2022).

Launched over 20 years ago, its online portal, www.boursorama.com, is consistently ranked the No. 1 website for financial and receives 50 million visits a month (Source ACPM – September 2022).

Boursorama generally attracts young clients – the average age is 35 – who are city dwellers, who work and who are financially stable. The average client outstanding is over EUR 15,000 (savings and loans). The acquisition of private banking clients continues to rise despite the rapid acceleration in growth. Boursorama has also pursued optimisation efforts and registered a decrease of almost 20% of IT costs per client and a 30% increase in the number of clients by employees.

Societe Generale Private Banking

Societe Generale Private Banking has an extensive foothold in Europe and offers global financial engineering and wealth management solutions, in addition to global expertise in structured products, hedge funds, mutual funds, private equity funds and real estate investment solutions. It also offers clients access to the capital markets.

Since January 2014 and in conjunction with the French Retail Banking core business, Societe Generale Private Banking has extensively modified its relationship banking model in France by extending its services to all individual customers with more than EUR 500,000 in their accounts. These customers reap the benefit of close-hand service provided by 80 regional franchises and the know-how of Private Banking’s expert teams.

Societe Generale Private Banking’s offering is available from three main centres: SGPB France, SGPB Europe (Luxembourg, Monaco and Switzerland) and Kleinwort Hambros (London, Jersey, Guernsey and Gibraltar). At the end of 2022, Private Banking held EUR 147 billion in assets under management.

Following the disposal of Lyxor at the end of 2021, the decision was made to house the following wealth management subsidiaries in Societe Generale Private Banking: SG 29 Haussmann⁽¹⁾ (France) et SGPWM⁽²⁾ (Luxembourg) and to also combine in its ranks Global Markets’ structured fund activity, in addition to a number of UCITS/bonds supervisory and selection teams. Societe Generale Private Banking took advantage of the occasion to create a fourth Wealth Investment Services centre of expertise, bringing together these management and structuring skills (Investment Management Services) with the Market Solutions teams, thereby becoming a genuine one-stop shop that houses unique expertise within the Group to design investment and open-architecture solutions.

Societe Generale Private Banking was singled out for eight prizes at the 2022 Global Private Banking Innovations Awards.

Kleinwort Hambros was awarded the Excellence in Employee Engagement prize at the 2022 Private Banker International Global Wealth Awards.

International Retail Banking and Financial Services (IBFS) combines:

Leveraging this pillar, the Group’s ambition is to better serve all its individual and corporate customers by adapting to changes in the economic and social environments, in addition to supporting the international growth of the Group’s customers by drawing on the strength of its network in fast-growing regions. IBFS bases its strategy on the relationship-focused universal banking model, the enhancement of its customer base through an extended range of products, and the distribution and pooling of expertise aimed at improving revenues while continually seeking to optimise the allocation of scarce resources and manage risks. With around 43,000 employees⁽¹⁾ and commercial operations in 66 countries, IBFS is dedicated to offering a wide range of products and services to its clients (individuals, professionals and corporates). Boasting a complementary range of expertise, IBFS enjoys solid and recognised positions in its different markets.

International Retail Banking

International Retail Banking combines the services of the international banking networks and consumer finance activities. These networks are forging ahead with their growth policy and currently hold leading positions in their various regions of operation, such as Europe, the Mediterranean Basin and sub-Saharan Africa. They help finance the economies in the different regions where they operate. In this way, the Group continues to support the development of its activities through these high-potential geographic regions.

EUROPE

The Group operates in Western Europe exclusively through its consumer finance and car finance businesses (CGI in France, BDK and Hanseatic Bank in Germany, and Fiditalia in Italy). Outstanding loans rose by 0.7% to EUR 23.9 billion in 2022, mainly on back of strong growth in car finance markets.

Komerčni banka (KB) is the Czech Republic’s third-ranked bank in terms of balance sheet size, with outstanding loans of EUR 32.3 billion, 216 branches and 7,288 full-time employees (FTE) in December 2022. KB, which was founded in 1990 and became a subsidiary of Societe Generale in 2001, has developed its universal banking activities for individual customers and expanded its traditionally significant presence among corporate customers and municipalities. The KB Group also offers a suite of products intended for individual customers with ESSOX (consumer loans and car financing), Modra Pyramida (mortgage facilities), as well as a range developed in collaboration with Private Banking.

KB was singled out by Mastercard as Bank of the Year in 2022. KB was acclaimed Top Corporate Bank of the Year for the second time and was runner-up in the Private Bank of the Year and Sustainable Bank of the Year categories.

In Romania, BRD is the No. 3 bank in terms of balance sheet size, with market share of approximately 10% in loans and deposits at end-September 2022. Societe Generale Group became BRD’s main shareholder in 1999. The BRD Group’s activity is divided into three major business lines: Retail Banking (individual and professional clients, and SMEs), Corporate and Investment Banking, and Consumer Finance with BRD Finance. Outstanding loans and deposits respectively total EUR 7.6 billion and EUR 11.5 billion.

In 2022, BRD was awarded the Environmental Project Finance Excellence prize by Green Report, and the Sustainable Development Excellence award from Capital Magazine.

AFRICA, MEDITERRANEAN BASIN AND OVERSEAS FRANCE

Societe Generale commands leading positions in these geographic regions, the result of a long history and strong strategic ambition.

In the Mediterranean Basin, the Group has been present in Morocco since 1913, in Algeria since 1999, and in Tunisia since 2002. In all, this business unit covers 635 branches and has more than 2 million customers. At 31 December 2022, outstanding deposits totalled EUR 11.2 billion and outstanding loans stood at EUR 11.8 billion.

In sub-Saharan Africa, the Group has an historic presence in 14 countries, with solid local positions, particularly in Côte d’Ivoire (No. 1 for loans and deposits), and in Senegal and Cameroon (both No. 2 for loans and deposits). In 2022, the region registered outstanding loans of EUR 8.1 billion and deposits of EUR 11.3 billion. Societe Generale is Western Africa’s leading international bank.

The Group is supporting the continent in a fair, environmentally friendly and inclusive transition, drawing its strength from one conviction, namely, that the demographics and economic development of this continent – with its talent, natural resources and infrastructure projects – are key issues for this millennium. Societe Generale in particular supports local economies through the Grow with Africa programme, which demonstrates the Group’s commitment to long-term performance. This initiative operates in partnership with local territories and actors, in addition to international experts. It establishes dialogue, two-way receptiveness and the sharing of innovative resources and approaches. It places the focus on four areas of development: supporting the development of African SMEs, taking part in the infrastructure financing, offering services that promote financial inclusion and developing innovative financing for renewable energies and agribusiness.

In 2022, Societe Generale was named Africa’s Best Investment Bank for Sustainable Finance by industry magazine Euromoney, as well as Best Bank for CSR, Sustainability Award, Best Foreign Investment Bank and Best Product Launch in Africa by EMEA Finance magazine. Global Finance also named the Bank Best SME Bank on the continent, and in Cameroon and Côte d’Ivoire. Industry magazine EMEA Finance acclaimed Societe Generale Cameroun (for the eighth consecutive year) and Societe Generale Côte d’Ivoire Best Bank and Best Investment Bank in their respective countries. EMEA Finance also bestowed on Societe Generale Maroc (Morocco) the Best Foreign Bank, Best Foreign Investment Bank, Best Asset Manager and Best Broker prizes. Chad, Madagascar and Guinea took out Best Bank, and Benin Best Investment Bank from EMEA Finance. Rounding off the awards tally, Global Finance gave Societe Generale Best Bank to Equatorial Guinea, Senegal, Madagascar and Cameroon, while The Banker named Societe Generale Bank of the Year in Cameroon and Madagascar. Last, industry magazine Euromoney singled out Societe Generale Côte d’Ivoire for the Best Bank award.

In Overseas France, the Group operates in Reunion and Mayotte, French Polynesia and New Caledonia, where it has been present for more than forty years. Societe Generale offers the same services for individual and corporate customers in these regions as in mainland France.

Insurance and Financial Services

INSURANCE (SOCIETE GENERALE ASSURANCES)

Societe Generale Assurances lies at the core of Societe Generale Group’s development strategy, in synergy with all its retail banking, private banking and financial services businesses. Societe Generale Assurances also pursues the expansion of its distribution model through the development of external partnerships Societe Generale Assurances offers a full range of products and services to meet the needs of individual, professional and corporate clients in Life Insurance Savings, Retirement Savings and Personal Protection businesses. Thanks to the expertise of its 2,700 employees (FTE), Societe Generale Assurances combines financial strength with dynamic innovation and a sustainable development strategy to be a trusted partner for its clients. Gross premiums stand at EUR 12.8 billion, with the share of unit-linked (UL) funds totalling 42%. Outstandings in life insurance investment solutions reached EUR 131.6 billion, down by 2.5%, of which UL funds account for 36%. Business is growing in the personal protection and property and casualty lines, with growth accelerating by 6% compared to 2021.

In 2021, Societe Generale Assurances pushed ahead with its bid to assist and protect the customers of Group networks by stepping up the development of digital sales tools and its phygital dimension. It also accelerated the pace of digital customer journeys by optimising data and customer behaviour knowledge.

Societe Generale Assurances also continued diversifying its business model, which is a proven high-potential growth driver in both the life insurance and personal protection areas, in synergy with the Group’s other businesses, such as ALD, Boursorama and with external partners. As one of the dominant players in the retirement savings market in France, Societe Generale Assurances offers cross-business products to meet the needs of individual customers, corporate clients and their employees through customised solutions, simple and easy-to-use digital pathways, innovative and tailor-made services and bespoke assistance.

Societe Generale Assurances actively endorses a policy to strengthen its CSR commitments, vowing to make Corporate Social Responsibility ALD(CSR) a differentiating factor in its strategy. It has divided its policy into three areas: Responsible Insurer, Responsible Investor and Responsible Employer. A host of actions have been rolled out both in relation to the Group’s investment policy – signing the Finance for Biodiversity Pledge, limiting non-conventional oil and gas funding, developing green investments and creating an energy efficiency plan – and in relation to the products on offer, such as a responsible UL offering that is eight times larger than that of 2018, giving the “Positive Insurance” certification to 10 of its protection products. In addition, the Group has embedded the ESG dimension into all its activities making it the bedrock underpinning all its activities and processes (“ESG by design”). This pledge goes hand in hand with the objective to increase employees’ involvement in these actions by acting as a force for good with sponsorships and increasing environment-related actions.

OPERATIONAL VEHICLE LEASING AND FLEET MANAGEMENT (ALD AUTOMOTIVE)

ALD Automotive offers mobility solutions centred on operational vehicle leasing and fleet management for businesses of all sizes in both local and international markets. It also serves individual customers. The business combines the financial benefits of operational leasing with a complete range of upscale services, including maintenance, tyre management, fuel consumption, insurance and vehicle replacement. The ALD Automotive Group employs more than 7,000 people (FTE).

ALD Automotive boasts the largest geographical coverage of any leasing company (43 countries) and manages more than 1.8 million vehicles. It has unique knowledge of emerging markets and has established partnerships with Wheels in North America, FleetPartners in Australia and New Zealand, Absa in South Africa, AutoCorp in Argentina, and Arrend Leasing in Central America. In 2022, the business again ranked No. 1 in Europe for multi-brand operational vehicle leasing and fleet management, and No. 2 worldwide.

A pioneer in mobility solutions, ALD Automotive is constantly innovating to provide unparalleled support to its customers, fleet managers and drivers, and offer customised services that are tailored to their needs.

ALD has been listed on the Euronext Paris stock exchange since June 2017. Societe Generale is ALD’s controlling shareholder and, as such, ALD continues to benefit from the Group’s financing capacity.

On 6 January 2022, ALD announced the signing of an agreement under which ALD would acquire 100% of LeasePlan to create a leading global player in mobility solutions with a total combined fleet of around 3.3 million vehicles. The successful capital increase conducted at end-2022, which helped fund the transaction, is a crucial step towards finalising the acquisition, which is expected to close in the first half of 2023, notably subject to the remaining regulatory approvals being obtained and the performance of the usual conditions precedent⁽¹⁾.

VENDOR AND EQUIPMENT FINANCE (SGEF)

Societe Generale Equipment Finance specialises in vendor and professional equipment finance. The business is conducted through partnership agreements with international vendors (professional equipment manufacturers and distributors), and also directly with manufacturers and distributors. SGEF has established its expertise in four major sectors spanning the transport, industrial equipment, technology and healthcare and environmental sectors.

Societe Generale Group is one of leaders in the equipment finance business. Leveraging on SGEF and the Group’s networks, it operates in over 35 countries (partnerships included) and manages a portfolio of EUR 24 billion⁽²⁾ in outstandings. It has a broadly diverse customer base, ranging from large international companies to SMEs, to which it offers an extensive array of products, such as financial leasing, loans, rentals, purchase of receivables, as well as insurance and marketing services.

Societe Generale Equipment Finance has a headcount of approximately 1,400 (FTE) and is a regular recipient of leasing industry honours. It has made sustainable development a linchpin of its strategy. In 2022, SGEF was singled out for Leasing Life’s SME Champion – International Vendor Model prize and received the CSR Ecovadi and Platinum certifications for its headquarters entity, and Gold for its German activities.

Global Banking and Investor Solutions (GBIS) is tasked with providing Global Markets and Investor Services, and Financing and Advisory to a global customer base of businesses, financial institutions, and investors.

GBIS employs over 17,000 people located in 35 countries and fields operations⁽¹⁾ in around 50 countries. It boasts extensive European coverage and representative offices in Central and Eastern Europe, the Middle East, Africa, the Americas and the Asia-Pacific region.

The linchpin of economic flows between issuers and investors, GBIS supports its customers over the long term, offering them a variety of services and integrated solutions tailored to their specific needs. The Group has forged strong and long-lasting ties with a large base of loyal clients thanks to the value-added of its franchises and the globally recognised extensive expertise of its businesses.

GBIS’ experts provide their issuer customers – large corporates, financial institutions, sovereigns and the public sector – with strategic advisory on their development, as well as access to capital markets to address their funding requirements and hedge their risks. They also furnish services to investors who manage savings according to defined risk/return targets.

A pioneer in sustainable and positive-impact finance, the Group furnishes advisory to its clients and offers concrete financing and investment solutions aimed at transitioning towards a fairer and greener economy. Group places social and environmental responsibility at the core of GBIS businesses and Societe Generale’s expertise was once again recognised by Global Finance in 2022 when it took away the Outstanding Leadership in Sustainable Finance award. The Group was also rated AAA by MSCI.

The Group confirmed in August 2022 the medium-term strategy it unveiled in May 2021 for its Global Banking & Investor Solutions core business and underscored the key feature of these activities in its diversified banking model. Societe Generale’s goal is to consolidate its position as a top-tier European corporate and investment bank.

It is ideally positioned to tap the major trends for the coming years, such as sharp growth in infrastructure and energy transition financing.

The roadmap set five priorities on which the Group continued to deliver in 2022:

Societe Generale also intends to increase its ESG commitments and hold a top-ranking position in this field. It will make this major strategic pillar the bedrock underpinning both the Corporate and Investment Banking arm’s actions and those of the entire Group.

Global Markets and Investor Services

The Global Markets and Investor Services (GMIS) Division includes Global Markets’ activities formed by the Fixed Income and Currencies, Equities and Securities Services arms. As such, the division combines the strength of a leading financial institution offering global access to markets with the customer-oriented approach of a broker positioned as a market leader in its activities, delivering value-added services and innovative solutions.

The teams – financial engineers, salespeople, traders and specialist advisors – use SG Markets, a unique integrated digital platform, to furnish tailored solutions designed to address each customer’s needs and specific risks, and to assist them to navigate increasingly interconnected financial markets. Furthermore, in 2021, Societe Generale issued the first structured product as a Security Token directly registered on the Tezos public blockchain. This transaction completes a new step in Societe Generale’s growth – Forge – a regulated subsidiary of Societe Generale Group, which aims to offer crypto asset structuring, issuance, exchange and custody services to the Group’s professional clients. Innovation is key to GBIS’ strategy and this operation illustrates the Group’s willingness to use the most innovative technologies and to create disruptive business models to better serve its clients.

In addition, work performed by Societe Generale’s Cross Asset Research Department provides insight into the impact of major events on the various asset categories and analyses the relationship between asset categories. This key information is drafted into strategic fact sheets. Since January 2020, the Bank has systematically included Environmental, Social and Governance (ESG) analyses in its equities publications, alongside its fundamental financial analysis. The Research teams won the ESG Research House of the Year award for 2021 at the Sustainable Investment Awards.

At the end of 2022, Societe Generale and AllianceBernstein, a leading asset management and research group, signed a letter of intention to combine their equity research and cash equities businesses. The partnership would enable the corporate, financial institution and institutional investor clients of Societe Generale and Bernstein Research Services to have access to a global and comprehensive suite of top-tier cash equity and research services, on top of the current Societe Generale offering from the equity capital markets, equity derivatives and prime services businesses.

FIXED INCOME AND CURRENCIES

Fixed Income and Currencies (FIC) activities cover a comprehensive range of products and services ensuring the liquidity, pricing and hedging of risks related to the fixed income, credit, forex and emerging market activities of Societe Generale clients.

Teams operate notably in London, Paris, Madrid and Milan, as well as in the US and the Asia-Pacific region, and offer a wide range of flow and derivative products. Underpinned by in-depth research, engineering, trading and e-commerce expertise, they furnish strategic advisory, flow data and competitive prices.

The teams assist corporate clients and financial institutions with their investments and risk management, providing advisory on the most appropriate opportunities depending on each client’s protection and return of capital objectives. Leveraging 15 years’ experience in structured finance hedging, FIC teams are able to furnish customised solutions for each financing transaction, including risk hedging where required. Drawing on solid expertise underpinned by cutting-edge technology and algorithmic trading, clients also have access to a wide array of instruments, technologies and liquidities in fixed-income markets, credit markets via single broker platforms to execute spot trading and derivatives transactions.

In 2022, Global Finance named Societe Generale Best FX Provider for Corporates, Central & Eastern Europe, Algeria, Ivory Coast & Morocco.

EQUITIES

Boasting its historic presence in the world’s major primary and secondary equity markets and its long-standing tradition of calculated innovation, Societe Generale is a leader in a comprehensive suite of varied solutions covering the full spectrum of cash equity, equity finance, derivative-based services, equity structured products, strategic equity transactions and Prime Services activities.

Drawing on more than 30 years’ experience in this field, the Group has an undisputed leading position in derivatives and investment solution products, and continues to constantly innovate by offering tailored advisory and innovative solutions that are adapted to its clients’ needs. The Group has succeeded in maintaining this global top position despite the strategic review on the most complex products by developing the next generation of investment solution products and by remaining a pioneer in innovation, in particular for CSR.

This innovative approach is applied to the full array of equities-related activities, spanning equity research, trading, equity financing and listed products.

Clients voted the Equities arm the best issuer of listed products in Germany, while Golden Bull awarded it Certificate House of the Year for 2021. In 2022, it was singled out for Best Issuer in Germany overall, Best Investor Magazine (ideas), Best Information Offering, Best Product Range, Special Award Technology, Best Turbo-Optionsscheine, Best Index-Zertifikatepar Deutscher Zertifikate Preis.

The Equities business also took out Best House Europe, Deal of the Year, Best House France, Best House Warrants (SRP Europe Awards 2022) and Equity Derivatives House of the Year (AsiaRisk 2022), as well as Americas Structured Products House of the Year (Global Capital).

SECURITIES SERVICES

The Societe Generale Security Services (SGSS) business offers a comprehensive range of solid and effective securities services, including:

With EUR 4,247 billion in assets under custody at end-December 2022 (versus EUR 4,586 billion at end-December 2021), SGSS ranks second among European custodians. It offers custodian services to more than 3,497 mutual funds and provides valuation services to more than 4,324 mutual funds, for a total of EUR 580 billion in total assets under management.

Financing and Advisory

Financing and Advisory is responsible for covering and developing global relationships with the Bank’s strategic clients. The Department houses:

The GLBA platform operates on a worldwide scale with expert teams located in France and Europe, the CEEMEA region, the Americas and in Asia. The teams’ knowledge of clients and local regulations are key to conducting domestic, international and cross-border activities due to the international dimension of their business. Leveraging this global expertise and sectoral knowledge, the Group was singled out for Outstanding Leadership in Sustainable Finance for the second consecutive year and is ranked No. 3 worldwide for project finance (source: IJ Global in 2022) and for acquisition finance in EMEA (source: Dealogic in 2022).

Global Banking & Advisory teams provide issuer clients with a comprehensive suite of products and integrated solutions, products and advisory, and are housed in three divisions:

The Investment Banking teams offer customers, businesses, financial institutions and the public sector an integrated, comprehensive and tailored approach, leveraging its in-depth sectoral knowledge and execution capacity recognised both locally and internationally. The offer relies on a full array of investment banking services to cover their clients’ investment banking needs – strategic advisory, mergers and acquisitions, capital and debt markets, and acquisition and leveraged finance.

Societe Generale holds a leading position in the equity capital markets and on euro-denominated issues for corporate and financial institutions, as well as in acquisition finance in Europe. The equity capital markets franchise and acquisition finance franchise are ranked No. 1 in France. The debt capital markets franchise is ranked No. 3 for euro issues for large groups and No. 4 for euro issues for financial institutions. Last, the mergers and acquisition franchise is ranked No. 4 in France (source: Dealogic 2022).

The Global Transaction & Payment Services (GTPS) teams focus on economic and financial operators and domestic and international financial institutions, medium and large companies with international and multinational activities that require flow management assistance for their banking, commercial, corporate flows and/or payment flow assistance.

Their role is to also provide expert assistance to retail Business Units also operating these business lines and manage the Group’s euro payment platform.

Operating in more than 40 countries, the business offers a comprehensive and integrated range of solutions and services, leveraging the expertise of the Transaction Banking businesses. It houses five transactional banking activities:

Global Transaction Banking teams are regular recipients of industry awards. In 2022, the Group was singled out for the following prizes: Sustainability-linked – Outstanding Innovation in Trade Finance, Global Treasury powered by Kyriba – Outstanding Innovation in Treasury, Best Trade Finance Provider, Best Bank for Financial Institutions, Best Bank for Cash Management in Western Europe & France, Czech Republic & Romania by Global Finance and Best Factoring Services in EMEA, Europe, CEE & Africa, Best Trade Finance Services in Europe, Best Transactional Bank for Financial Institutions, Best Cash Management Services in EMEA by EMEA Finance, and Cash Management Market Leader & Best Service by Euromoney.

Definitions and details of methods used are provided on page 41 and following.

Information followed by an asterisk (*) is indicated as adjusted for changes in Group structure and at constant exchange rates.

The reconciliation of reported and underlying data is provided on page 42.

ANALYSIS OF THE CONSOLIDATED INCOME STATEMENT

Net banking income

Underlying net banking income grew strongly in 2022 at +9.3% (+10.2%*) vs. 2021, driven by historical highs in Financing & Advisory, Global Markets and ALD, sharp growth in Private Banking and International Retail Banking and a solid performance by French Retail Banking.

French Retail Banking revenues grew +4.1% vs. 2021 fuelled notably by robust service fee growth and a very solid showing by Private Banking.

International Retail Banking & Financial Services’ revenues rose +12.4% (+17.9%*) vs. 2021, driven by a record performance at ALD and strong growth at International Retail Banking whose revenues grew +11.5%* vs. 2021. Financial Services’ net banking income was significantly higher by +35.8%* vs. 2021, while Insurance net banking income increased by +6.5%* vs. 2021.

Global Banking & Investor Solutions’ revenues were up +14.3% (+12.9%*) vs. 2021. Global Markets & Investor Services’ revenues posted an +18.7% increase in revenues (14.1%*) vs. 2021, while Financing & Advisory activities increased by +15.2% (+10.7%*) vs. 2021.

Operating expenses

In 2022, operating expenses totalled EUR 18,630 million on a reported basis and EUR 17,991 million on an underlying basis (restated for transformation costs), i.e., an increase of +4.5% vs. 2021 (on an underlying basis).

The rise can be mainly attributed to the EUR 864 million contribution to the Single Resolution Fund, which increased by EUR 278 million, currency effects, notably in US dollars, and a rise in the variable components of employee remuneration associated with higher revenues.

Underlying gross operating income increased by +18.9% to EUR 10,068 million in 2022, while the underlying cost to income ratio (excluding the Single Resolution Fund) posted a 3.4 point improvement to 61.0% (vs. 64.4% in 2021).

Excluding the Single Resolution Fund, the underlying cost to income ratio is expected to range between 66% and 68% in 2023, based notably on normalised revenues in Global Markets.

Cost of risk

Over the full year, the cost of risk amounted to 28 basis points, landing below the guidance of between 30 and 35 basis points.

Offshore exposure to Russia was reduced to EUR 1.8 billion of EAD (Exposure At Default) at 31 December 2022, i.e., a decrease of around -45% since 31 December 2021. Exposure at risk on this portfolio is estimated at less than EUR 0.6 billion, compared with less than EUR 1 billion for the previous quarter. Total associated provisions stood at EUR 427 million at end-December 2022. Moreover, at end-December 2022, the Group’s residual exposure to Rosbank amounted to less than EUR 0.1 billion, corresponding mainly to guarantees and letters of credit.

The Group’s provisions on performing loans amounted to EUR 3,769 million at end-December, an increase of EUR 414 million in 2022.

The non-performing loans ratio amounted to 2.8%⁽¹⁾ at 31 December 2022, down 10 basis points vs. 31 December 2021. The gross coverage ratio on doubtful loans for the Group stood at 48%⁽²⁾ at 31 December 2022.

The cost of risk in 2023 is expected to range between 30 and 35 basis points.

Operating income

Operating income totalled EUR 7,782 million in 2022 compared with EUR 7,508 million in 2021. Underlying operating income came to EUR 8,421 million compared with EUR 7,770 million in 2021.

Net profits or losses from other assets

Net profits or losses from other assets totalled EUR -3,290 million in 2022, of which a EUR -3.3 billion accounting loss from the disposal of Rosbank and insurance activities in Russia recognised in H1 22.

Net income

Activity and net banking income

In 2022, revenues totalled EUR 8,839 million, up +4.1% vs. 2021, including PEL/CEL. Net interest income and other revenues, including PEL/CEL, were up +2.9% vs. 2021. Fees were +5.6% higher than in 2021, benefiting from strong growth in service and financial fees.

In respect of the outlook, 2023 will be a transition year with decreased revenues due to the negative impacts of the end of the TLTRO benefit for around EUR 0.3bn vs. 2022, the specific functioning of the French market that will continue to curb loan production due to the usury rate, as was also the case in 2022, and the continued rise in the regulated savings rate that will have an impact on net banking income of around EUR 50m for each 25 basis point increase. Furthermore, net interest margin hedges that will gradually mature as of 2024 will deprive us in 2023 of the benefit of increased savings.

SOCIETE GENERALE AND CRÉDIT DU NORD NETWORKS

Life insurance assets under management totalled EUR 109 billion at end-December 2022, unchanged year-on-year (with the unit-linked share accounting for 32%).

On 1 January 2023 and on schedule, Societe Generale Group performed the legal merger of its two French retail banking networks, Societe Generale and Crédit du Nord. SG is henceforth the Group’s new retail bank in France. SG bank’s ambition is to create a top-tier banking partner, serving 10 million clients in the French market and ranking among the Top 3 for customer satisfaction.

BOURSORAMA

The bank enjoyed a new client acquisition record, attracting more than 1.4 million net new clients in 2022 (2x the 2021 level), including nearly 396,000 in Q4 22 alone. The bank consolidated its position as the leading online bank in France, with almost 4.7 million clients at end-December 2022, and a target of more than 5.5 million clients at the end of 2023. In the meantime, the acquisition cost per client contracted by around -20% relative to 2021.

PRIVATE BANKING

Private Banking activities, which were transferred to French Retail Banking at the beginning of 2022, cover private banking activities in France and internationally. Assets under management totalled EUR 147 billion at end-December 2022. Asset inflow growth rose +4% in 2022 relative to end-2021. Net banking income amounted to EUR 296 million over the quater, (+7.6% vs. Q4 21) and totalled EUR 1,278 million over the full year (+15.9% vs. 2021).

Operating expenses

In 2022, operating expenses came to EUR 6,473 million (+3.6% vs. 2021). The cost to income ratio stood at 73.2%, down 0.4 points vs. 2021.

Cost of risk

In 2022, the cost of risk amounted to EUR 483 million or 20 basis points, i.e., higher than in 2021 (EUR 125 million or 5 basis points), which breaks down into EUR 101 million for a reversal of an S1/S2 provision and EUR 382 million for an S3 provision (non-performing outstandings).

Contribution to Group net income

In 2022, the contribution to Group net income was EUR 1,445 million, contracting to -6.8% vs. 2021. Underlying normative RONE came to 11.6% in 2022 (13.4% excluding Boursorama).

Net banking income amounted to EUR 9,122 million over the full year, up +17.9%* (+12.4%) vs. 2021.

Operating expenses totalled EUR 4,334 million, an increase of +10.0%* (+3.1%) vs. 2021. The cost to income ratio stood at 47.5% in 2022.

The cost of risk amounted to 52 basis points (EUR 705 million) in 2022 It was 38 basis points in 2021.

The contribution to Group net income totalled EUR 2,376 million in 2022 (+25.6%*, +14.1% vs. 2020). Underlying RONE stood at a high 22.4% in 2022 (vs. 20.3% in 2021).

International Retail Banking

International Retail Banking’s outstanding loans posted healthy momentum of EUR 88.2 billion, up +5.6%* for 2022. Outstanding deposits totalled EUR 78.5 billion, a slight +1.4%* increase relative to 2021.

For the Europe scope, outstanding loans were up +4.9%* vs. 2021 at EUR 63.8 billion, driven by positive momentum on the corporate segment in the Czech Republic (+11.0%* vs. 2021). Outstanding deposits are stable* at EUR 51.6 billion. Robust momentum in Romania (+8.3%* vs. 2021) offset the slowdown in the Czech Republic notably due to a shift in some deposits towards financial savings.

In Africa, Mediterranean Basin and French Overseas Territories, over the year, outstanding deposits continued to enjoy positive momentum, up by +7.5%* and +5.6%* respectively vs. 2021.

International Retail Banking’s net banking income stood at 5,153 million, up +11.5%* vs. 2021.

Revenues in Europe climbed +13.5%* vs. 2021, due primarily to substantial growth in net interest income (+15.7%*), driven notably by the Czech Republic (+33.6%*) and Romania (+17.5%*). These regions benefit from increased volumes and high interest rates.

The Africa, Mediterranean Basin and French Overseas Territories scope posted revenues up +8.7%* vs. 2021 on back of net interest income (+5.0%*) and fees (+11.2%*).

In International Retail Banking, rising costs were kept contained over the year at +5.9%* vs. 2021 despite spiking inflation.

Insurance

In the Insurance business, life insurance outstandings showed resilience in 2022, totalling EUR 131.6 billion despite unfavourable market conditions. The share of unit-linked products in outstandings remained high at 36%. Gross life insurance savings inflow amounted to EUR 12,754 million in 2022 (42% of unit-linked products in 2022). Protection insurance saw an increase of +5.8%* vs. 2021, with good momentum for personal protection premiums that rose +8.0%* and a more minor +4.1%* increase for P&C insurance.

The Insurance business posted net banking income up +6.5%*, at EUR 1,012 million vs. 2021 driven by stronger life insurance savings and protection activities.

In the Insurance business, operating expenses were up +7.2%* vs. 2021, with a cost to income ratio of 38.6%.

Financial Services

Financial Services also enjoyed very solid momentum. Operational Vehicle Leasing and Fleet Management posted growth of +3.1% vs. end-December 2021 and the number of contracts totalled 1.8 million (excluding contracts involving Russia, Belarus and remediation actions agreed with anti-trust authorities, Portugal, Ireland and Norway, excepting NF Fleet Norway). Equipment Finance outstanding loans were slightly higher (+2.2%) than at end-December 2021, at EUR 15 billion (excluding factoring).

Over the year, ALD’s net banking income was up +43%* vs. 2021 driven by positive commercial dynamics, still strong used car sales results (EUR 2,846 per unit in 2022).

In 2022, Financial Services’ net banking income totalled EUR 2,957 million in 2022, up +35.8%* vs. 2021.

In the Insurance business, operating expenses were up +7.2%* vs. 2021, with a cost to income ratio of 38.6%

Global Banking & Investor Solutions delivered record revenue in 2022⁽¹⁾, posting revenue up by +14.3% vs. 2021 of EUR 10,082 million, driven by robust momentum across all business lines. This very sound financial performance is predominantly due to the highly successful execution of the strategic plan unveiled in May 2021, the aim of which is to create value continuously over the long term.

In 2022, operating expenses came to EUR 6,634 million (+6.1% vs. 2021). The increase can be primarily explained by a negative currency effect owing to the stronger US dollar and a rise in IFRIC 21 charges. Excluding the contribution to the Single Resolution Fund, operating expenses rose +2.8% vs. 2021. Consistent with a positive jaws effect, the underlying cost to income ratio excluding the contribution to the Single Resolution Fund improved strongly to 59.6% vs. 66.3% in 2021.

In 2022, the cost of risk amounted to 23 basis points (EUR 421 million).

The contribution to Group net income grew sharply by +20.3% to EUR 2,427 million in 2022.

Global Banking & Investor Solutions posted strong RONE of 16.3% in 2022 (19.5% restated for the impact of the contribution to the Single Resolution Fund).

Global Markets & Investor Services

In Global Markets & Investor Services, net banking income totalled EUR 6,708 million, up +18.7% vs. 2021.

Global Markets notched up a record performance⁽¹⁾ of EUR 5,859 million, up +17.1% vs. 2021, benefiting from robust commercial activity in a durably volatile environment, particularly with regard to interest rates.

The Equity activity recorded its best-ever year⁽¹⁾ in 2022, registering revenues of EUR 3,294 million , up +4.7% vs. 2021.

Amid highly volatile interest rates, Fixed Income and Currencies (FIC) posted a record year⁽¹⁾, generating EUR 2,565 million in revenues, up +38.2% vs. 2021.

Securities Services’ revenues grew +31.2% in 2022 to EUR 849 million, including EUR 168 million from a 2022 revaluation of our stake in Euroclear.

Assets under Custody and Assets under Administration amounted to EUR 4,257 billion and EUR 580 billion, respectively.

Financing and Advisory

Financing & Advisory activities also posted an excellent performance, with record annual revenues of EUR 3,374 million, up +15.2% vs. 2021.

The Global Banking & Advisory business grew +9.3% in 2022 and continued to capitalise on solid market momentum in Asset Finance and activities related to Natural Resources. The Asset-Backed Products platform also turned in a solid performance in 2022. By contrast, investment banking activities were negatively impacted by market conditions and falling volumes.

Global Transaction and Payment Services posted a record performance, with revenue growth of 44.7% in 2022 on the back of very strong performances across all activities that took advantage of rising interest rates and excellent commercial performances.

The Corporate Centre includes:

The Corporate Centre’s net banking income totalled EUR +16 million in 2022 vs. EUR +374 million in 2021. It includes the negative revaluation of financial instruments to hedge the equity portfolios of Group subsidiaries, in contrast to 2021, when the Corporate Centre’s net banking income included the positive revaluation of an asset valued at EUR 117 million.

Operating expenses totalled EUR 1,189 million in 2022 vs. EUR 889 million in 2021. They include the Group’s transformation costs for a total amount of EUR 639 million relating to the activities of French Retail Banking (EUR 370 million), Global Banking & Investor Solutions (EUR 117 million) and the Corporate Centre (EUR 152 million). Underlying costs came to EUR -550 million in 2022 compared to EUR -510 million in 2021.

Gross operating income totalled EUR -1,173 million in 2022 vs. EUR -515 million in 2021.

Net profits or losses from other assets totalled EUR -3,364 million in 2022 vs. EUR 603 million in 2021. It includes the EUR -3.3 billion accounting loss from the disposal of Rosbank and insurance activities in Russia recognised in H1 22.

The Corporate Centre’s contribution to Group net income totalled EUR -4,230 million in 2022 vs. EUR -9 million in 2021. The Corporate Centre’s contribution to Group underlying net income was EUR -633 million in 2022, vs. EUR -386 million in 2021.

Framework

The financial information presented in respect of the financial year ended 31 December 2022 was examined by the Board of Directors on 7 February 2023 and was prepared in accordance with IFRS as adopted in the European Union and applicable at that date.

Capital allocation

In 2022, the allocation of normative capital to the businesses on the basis of their capital consumption was determined in accordance with CRR rules, i.e. 11% of their risk-weighted assets, supplemented by the consumption of Common Equity Tier 1 capital chargeable to each business after taking into account non-controlling interests and the adjustment of capital consumption in insurance activities. Accordingly, the capital allocation rule applies to the Group’s three pillars - French Retail Banking, International Retail Banking & Financial Services, and Global Banking & Investor Solutions - and enables each activity’s capital consumption and profitability to be calculated by activity on a standalone and uniform basis, taking into account the Group’s regulatory constraints.

Net banking income

Net banking income (NBI) for each business division includes:

Moreover, capital gains and losses generated by the business divisions on the disposal of shares in non-consolidated entities, and income from management of the Group’s industrial and bank equity portfolios, are booked under NBI as these securities are classified as available-for-sale financial assets.

Operating expenses

Operating expenses for the business divisions correspond to the “Operating Expenses” as presented in Note 8.2 to the Group’s consolidated financial statements at 31 December 2022 (see pages 509 to 510) and include their direct expenses, their management overheads, and a share of the head-office expenses, which are in principle almost fully redistributed between the business divisions. The Corporate Centre only books costs related to its own activity, along with certain technical adjustments.

Cost-to-income ratio

The cost-to-income ratio indicates the operating expenses of a business in relation to its net banking income. This indicator provides a measure of a system’s effectiveness (see glossary).

IFRIC 21 adjustment

The IFRIC 21 adjustment corrects the result of the charges recognised in the accounts in their entirety when they fall due (generating event) in order to recognise only the portion concerning the current quarter, i.e. a quarter of the total. It consists of smoothing the charge recognised over the financial year to provide a more reliable economic picture of the costs actually attributable to the activity over the period under review. By applying the IFRIC 21 adjustment, the expense – previously recognised progressively if the generating event occurs over a period of time – is instead recognised once and in its entirety. The contributions to the Single Resolution Fund (“SRF”) are part of IFRIC21 adjusted charges; they include contributions to national resolution funds within the EU.

Underlying indicators

The Group may be required to present underlying indicators to gain a clearer understanding of its actual performance.

Underlying data is obtained from reported data by restating the latter and taking into account exceptional items and the IFRIC 21 adjustment.

Moreover, the Group restates the allocations or reversals of PEL/CEL provisions on French Retail Banking’s revenues and income. This adjustment provides a clearer picture of revenues and income by excluding volatile items related to commitments on regulated savings.

The reconciliation of underlying data obtained from reported data appears in the table below:

Cost of risk

Net cost of risk is charged to each business division to reflect the cost of risk inherent in their activity during each financial year. Impairment losses and provisions concerning the whole Group are booked by the Corporate Centre.

Societe Generale’s commercial net cost of risk is expressed in basis points. It is calculated by dividing the net annual allocation to provisions for commercial risks by average loan outstandings at the end of the four quarters preceding the closing date. This indicator reveals the level of risk borne by each of the pillars as a percentage of balance sheet loan commitments, including operating leases. The key items used in this calculation are indicated in the table below.

Gross coverage ratio for doubtful outstandings

“Doubtful outstandings” are outstandings that are in default pursuant to the regulations.

The gross doubtful outstandings ratio measures the doubtful outstandings recognised in the balance sheet compared with gross loan outstandings.

The gross coverage ratio for doubtful outstandings is calculated as the ratio of provisions recognised in respect of the credit risk to gross outstandings identified as being in default pursuant to the regulations, without taking into account any guarantees provided. The coverage ratio measures the maximum residual risk associated with outstandings in default, otherwise referred to as “doubtful”.

Net income/expense from other assets

Net income or expense from other assets essentially comprises capital gains and losses on operating fixed assets, or when the Group ceases to control a consolidated subsidiary, as well as goodwill immediately written down when the Group takes control of an entity and recalculates the stake previously held by the Group in entities that have been fully consolidated during the year.

Income tax

The Group’s tax position is managed centrally.

Income tax is charged to each Business Division on the basis of a normative tax rate which takes into account the local tax rate of the countries in which it conducts its activities and the nature of its revenues. The difference between the income tax charged to the Group’s consolidated companies and the sum of normative taxes of the strategic pillars is assigned to the Corporate Centre.

ROE, ROTE

Group ROE and ROTE is calculated on the basis of average Group shareholders’ equity under IFRS.

It excludes:

It deducts:

For the ROTE, the following items are also excluded:

Net income used to calculate ROE is based on Group net income adjusted for interest to be paid to holders of deeply subordinated notes for the period and, since 2006, holders of adjusted deeply subordinated notes and undated subordinated notes.

Net income used to calculate ROTE is based on Group net income excluding the goodwill impairment loss but reinstating interest on deeply subordinated notes for the period (including issuance fees paid, for the period, to external parties and the discount charge related to the issue premium for deeply subordinated notes) and interest on undated subordinated notes (including issuance fees paid, for the period, to external parties and the discount charge related to the issue premium for undated subordinated notes).

RONE

RONE (Return on Normative Equity) determines the return on average normative equity allocated to the Group’s businesses (see “capital allocation” above). The allocation principle in force since 1 January 2016 consists of allocating to each business normative equity corresponding to 11% of its risk-weighted assets.

The key items used in this calculation are indicated in the tables below.

Earnings per share

In accordance with IAS 33, to calculate earnings per share, “Group net income” for the period is adjusted by the amount (net of tax, capital gains/losses on partial buybacks of securities issued and classified as equity) of costs pertaining to these equity instruments and the interest paid on them.

Earnings per share is therefore calculated as the ratio of corrected Group net income for the period to the average number of ordinary outstanding shares, excluding own shares and treasury shares, but including:

The Group also reports its underlying earnings per share, i.e. corrected for exceptional items and the IFRIC 21 adjustment.

Net Asset, Net Tangible Asset Value

Net assets comprise Group shareholders’ equity, excluding:

Tangible net assets are corrected for net goodwill in the assets, goodwill under the equity method and intangible assets.

In order to calculate Net Asset Value Per Share or Net Tangible Asset Value Per Share, the number of shares used to calculate book value per share is the number of shares issued at the end of the period, excluding own shares and treasury shares, but including:

Prudential capital and solvency ratios

The Societe Generale Group’s Common Equity Tier 1 capital is calculated in accordance with applicable CRR2/CRD5 rules.

The fully-loaded solvency ratios are presented pro forma for current earnings, net of dividends, for the current financial year, unless specified otherwise.

Where reference is made to phased-in ratios, the latter include the earnings for the current financial year, unless otherwise specified.

The leverage ratio is calculated according to applicable CRR2/CRD5 rules.

Societe Generale applies a comprehensive approach to incorporating CSR considerations into its range of products and services. In addition to this broad framework, Societe Generale’s Corporate Social Responsibility efforts are concentrated in two main areas: the environmental transition and contributing to local communities. As a long-standing leader in energy, the Group has made the energy transition a priority in support for its clients. Societe Generale also plays a major role in economic development and has put sustainable development of local communities as the No. 2 priority in its action plans.

The Bank strives to help its clients on their pathway to a just, green and inclusive transition, in line with its own commitments. Sustainability is an integral part of the products and services offered to all the Group’s clients and extends not only to financing and investment products, but also to financial services. By placing sustainability high on the agenda, the Group aims to meet the increasing demand from stakeholders around the world, whether clients, corporates, investors or individuals, for banking with a positive impact on the economy and society overall.

To monitor its positive impact and support for its clients, the Group developed a standard several years ago to measure the distribution of its Sustainable and Positive Impact Finance offer – SPIF* (see Glossary, page 688) products for lending to the economy and companies, together with a range of Sustainable and Positive Investment (SPI* (see Glossary, page 688). The SPIF and SPI standards and the data collection scope have been revised to reflect changes in the Group. These amendments are presented in the Methodology note, page 354.

Above and beyond its commitment to clients, the Group is determined to set the example in how it conducts its business to be an exemplary financial company. In other words, Societe Generale aims to be a responsible employer and to act ethically and responsibly at all times.

To make the changes needed in today’s rapidly-changing environment, the Group launched “Building Together”, a programme to reinvent our businesses. The three core themes are:

To underpin this approach, a specific programme was introduced to step up operational implementation of the transformation: ESG by Design. Its main aims are to:

The environmental transition and contributing to local communities are the Group’s two top strategic priorities for 2025 and the springboard for our positive transformation efforts. Societe Generale’s actions are aimed at ensuring the sustainability of its own business activities and at helping clients move towards a greener and more sustainable future.

Building on an improved product offering, and having achieved our target contribution to the energy transition ahead of schedule (EUR 157 billion at the end of 2021 vs. an initial target of EUR 120 billion in the period 2019–2023), Societe Generale has set a new target of a EUR 300 billion contribution to sustainable finance (SPIF) between 2022 and 2025, applicable to all business lines for both environmental and social issues. The Group’s contribution at end-2022 was EUR 100 billion, or one-third of the target.

2.4.1.1  Supporting clients in their environmental transition

Urgent action is required to tackle climate change and rethink how we produce and consume resources. With this in mind, the banking business has to change to meet new client needs. Alive to the challenge, the Group plans to incorporate ESG considerations right from the start when it analyses what clients need. Drawing on its network of partner start-ups, Societe Generale also seeks to weave an ecosystem to offer the very latest innovations to its clients. Lastly, the Group has pressed further ahead with its drive to align its credit portfolios with trajectories that are compatible with 1.5°C scenarios.

STEPPING UP SUPPORT FOR CLIENTS

The Bank forged ahead with developing sustainable solutions in 2022. Keenly aware of the extent of the challenges involved in the environmental transition, the Group offers solutions that are more than just financial and involve including ESG factors in the client journey right from the analysis of need stage. The new range of advisory solutions for corporate clients aims to:

The Group encourages the emergence of new environmental transition champions and puts out new product offerings to cater to financing small-scale projects and biodiversity-friendly solutions.

BUILDING AN ECOSYSTEM TO SEED INNOVATION

The Global Markets Incubator has been working with start-ups and entrepreneurs to turn their innovative ideas into market-ready solutions since 2018. The Incubator has also upped its support for Fintechs. Start-ups working on positive-impact solutions are invited to submit applications for the Incubator’s fifth round in 2022. Successful applicants will have access to the Bank’s experts in fields from capital markets to financing activities and private banking to nudge them to the next stage of their development – with the support of the Group. Societe Generale strives to forge strong partnerships with the start-ups selected for the programme to speed up development and bring innovative solutions to market to meet the sustainability goals of its corporate clients, financial institutions and private investors, as well as its own CSR ambitions.

The Group invested in Impak Finance, an impact rating agency, to provide ESG data and intelligence to start-ups so they can measure their CSR performance. Komercni banca, a subsidiary of the Group in the Czech Republic, acquired ESG consulting firm Enviros to grow its environmental transition advisory offer.

Looking more specifically at biodiversity, the Group joined forces with Ecotree to develop commercial offerings that promote meaningful CSR action by promoting reforestation to protect biodiversity. These partnerships were instrumental in the introduction this year of an investment product that contributes to the preservation of biodiversity.

Turning to sustainable mobility, ALD Automotive, the Group’s leasing subsidiary, took a stake in the capital of Skipr, an all-in-one corporate mobility solution for companies that want to offer options to their staff, for example, to choose a flexible and sustainable mobility budget instead of a company car. The mobility business and its associated costs are tracked using a dedicated centralised management platform. This new partnership will combine cutting-edge technology with deep mobility expertise, helping companies move towards more flexible, efficient and cost-effective sustainable mobility options.

Last, Societe Generale also partners with crowdfunding platform Lumo for energy infrastructure projects to offer opportunities for its retail customers to help finance the energy transition, and with Carbo, an app to measure – and cut – their carbon footprint.

ALIGNING PORTFOLIOS WITH TRAJECTORIES COMPATIBLE WITH 1.5°C SCENARIOS

By joining the UNEP-FI Net-Zero Banking Alliance in 2021, the Group undertook to align its portfolios with trajectories aiming for carbon neutrality by 2050 (limiting global warming to 1.5°C), setting itself targets for 2030 (or sooner) and 2050, giving priority to its most GHG-intensive sectors. On top of its previous targets for thermal coal sectors (pledging to fully withdraw from the sector by 2030 for OECD countries and by 2040 elsewhere) and the shipping industry, Societe Generale has raised the bar with bolder and more ambitious targets for the oil and gas production sectors and financing of power generation. After implementing solid measures, including withdrawing from onshore Reserve Based Lending activities in the US, the Group raised its exposure target to -20% by 2025 vs. 2019 (from the previous -10% by 2025). What is more, it has set a new target for 2030 (vs. 2019) for a 30% reduction in absolute carbon emissions related to end use of oil and gas production. As regards power generation, the Group now has a stricter target for CO₂ emissions intensity of 125g of CO₂ per kWh by 2030 compared to the previous 2030 target of 163g of CO₂ per kWh.

Societe Generale’s efforts have been applauded: the Bank was acclaimed for its global leadership in sustainable finance, winning Outstanding Leadership in Sustainable Finance from Global Finance and World’s Best Bank Transition Strategy - 2022 for its energy transition strategy from Euromoney.

2.4.1.2  Making a positive impact on local communities

Putting its client-centric values into practice, the Group is focusing on making a positive impact on local communities. It gets in behind social and economic transformation at local level by financing infrastructure projects – especial social infrastructure – and supporting SMEs and entrepreneurs. Through its car leasing subsidiary, the Group’s ambition is to be at the forefront of the transition to sustainable mobility. Societe Generale is also expanding its social and inclusive range of products and services, particularly in Africa, where its presence dates back over a long period. This commitment to sustainable development on the African continent features regularly on award lists: the Bank received no fewer than 17 accolades at the 2022 EMEA Finance magazine African Banking Awards.

INFRASTRUCTURE FINANCING

For Societe Generale, infrastructure financing is a key driver of sustainable regional development. Support for infrastructure projects will improve access to health, education and digital technologies, while also helping to create more sustainable mobility, namely public transport.

Backed by our acknowledged expertise, we lay special emphasis on developing digital cohesion, strong and resilient health and education infrastructure, and access to sustainable transport and public services both locally and internationally. Through the combined impact of innovation and agility, the Bank offers finance solutions tailored to the needs of developers, public bodies and infrastructure funds to step up and meet the myriad challenges of shifts in technologies and its uses, and the vital imperative of progressing the energy transition and the move to more sustainable models.

In France, for example, the Group is involved in financing 25 fibre projects with leading private operators to connect 16 million households and companies. All in all, Group financing for access to IT infrastructure in 2022 amounted to EUR 830 million (+20% vs. 2021).

In Africa, Societe Generale merges local (around 60 experts) and global expertise behind major projects with a positive impact on the continent. It partners with leading development banks, investment funds and international consulting firms to build out and deploy its range of services. The target for the period 2021–2025 is a 20% increase in the Group’s structured finance commitments in Africa. At end-2022, these commitments are estimated to be EUR 13.8 million, an increase of 12% vs. 2021.

In total, Societe Generale has committed nearly EUR 4 billion to social infrastructure financing.

SUPPORTING LOCAL OPERATORS, SMES AND ENTREPRENEURS

The Group gives priority to developing local economies through its support for SMEs and entrepreneurs. In tandem with setting up its new retail bank in France, Societe Generale launched a specific new resource for this client segment which entails new advisory and financing solutions offered together with its leading partners. The main components of this offer are:

On the international stage, the Group’s objective is to double its credit exposure to African SMEs between 2020 and 2025. In 2022, the figure totalled EUR 430 million.

AT THE CUTTING EDGE OF SUSTAINABLE MOBILITY

Societe Generale subsidiary ALD Automotive (ALD) is a European leader in long-term vehicle lease solutions, with sustainable mobility as the linchpin of its strategy. Sustainable mobility is not just about vehicle technology, it’s also about transforming how we use transport and how to meet new expectations. In its 2025 growth plan, ALD sets specific targets for increasing the share of electric vehicles⁽¹⁾ in new vehicle deliveries to at least 30% by 2025 and 50% by 2030. At 31 December 2022, it was 27%. ALD is also investing in new shared, on-demand or multimodal mobility solutions. Take ALD Move, a mobility-as-a-service app: users can tap into daily advice on the best options for their travel needs (car, public transport, bike) and manage their “mobility budget”.

BUILDING A SOCIAL AND INCLUSIVE RANGE OF PRODUCTS AND SERVICES

Under its financial inclusion policy, Societe Generale supports innovative approaches to sustainable economic development that combine environmental and societal performance, by supporting the development of microfinance operators, in France and abroad. It also offers tailored products and services for students, customers in financial difficulty or those looking for more autonomy as part of its drive for more inclusive finance. In France, it also offers services for customers in a financially precarious position so they have access to appropriate banking services for their situation.

MICROFINANCE

The Group has worked in partnership with ADIE (a non-profit promoting the right to economic initiative) since 2006 to support microfinance throughout both metropolitan and overseas France. Credit lines provided in partnership with ADIE totalled EUR 18.2 million at the close of the year, vs. EUR 18.3 million at 31 December 2021.

Back in 2005, faced with the extent of the need for microfinance and its emergence in Africa, Societe Generale made the decision to support the sector and, through its intermediary, to help boost the local bank penetration rate for local people, micro-enterprises and SMEs with no access to traditional banks. Acting on its pledge to double lending to microfinance organisations by 2022, the Group met its target with EUR 120 million outstanding at the close of 2022.

INCLUSIVE BANKING

In France, Societe Generale renewed its partnership with Bpifrance, offering loans to students who have no income and nobody to act as guarantor for them. Once again in 2022, the Group was the top distributor of Bpifrance student loans with a total of EUR 61 million paid out (from a budget of EUR 70 million).

Kapsul was introduced in 2022. This is a new inclusive tool intended for customers who want to be independent and manage on a budget. Available online or in-branch, the account costs EUR 2 per month. There are no income conditions and no other account charges. Account holders can make payments from anywhere in the world and can also get an international Visa card with insurance and assistance cover. At 31 December 2022, 5,622 customers had signed up for a Kapsul account (+9% vs. 2021).

VULNERABLE CUSTOMERS

The Groupe provides a free package of basic banking services in France. Customers can sign up to Généris, a banking services package designed to help them manage their finances for just EUR 1 a month, down from EUR 3 previously . At the end of 2022, Généris had 55,355 customers (55,831 at the end of 2021). Societe Generale is keenly aware of the needs of vulnerable customers and provides specific budget simulation tools and budget management advice. Its customer service teams also receive special training.

Well-being at work, diversity and professional development are all essential to strengthen employee engagement and boost performance.

To be able to attract, hire and retain talent, the Group must manage careers and skills effectively by looking ahead to what skills are needed for the jobs of the future. Societe Generale offers a rich range of training opportunities to meet the Group’s business challenge and provide our people with the key skills they need to do their jobs well and make sure all staff receive CSR training. Accordingly, 54% of staff have attended CSR training since 2021.

Societe Generale has a Group-wide health and safety policy, designed to ensure the best possible workplace conditions for all employees. This commitment was further boosted in 2022 with signature of the new “Work-life quality and working conditions” agreement. This is a three-year agreement that entered into force on 1 January 2023, based on five core principles: work-life balance, new forms of working (remote/hybrid work), collective and individual right of expression, prevention of psycho-social risks (PSR) and workload.

We are a responsible employer and champion fair and inclusive practices, which are essential drivers of both performance and innovation. The Group puts its talent first and is committed to a muscular Diversity and Inclusion policy, backed by a dedicated governance structure. Its goal is to have 30% women in Group management bodies by 2023.

Societe Generale has long been working to bolster its culture, based on its values, its Code of Conduct and its Leadership Model. The Group has set ethical principles and ensures they are adhered to by each and every employee.

Embedding ESG at the highest level of the organisation

In a clear signal of the strategic importance it attaches to sustainability, the Sustainable Development Department has reported to General Management from 1 January 2022. It is tasked with accelerating integration of sustainability at the heart of the Group’s business lines and boosting the Group’s positive impact.

Ensuring ethical and responsible conduct of business

In 2016, the Board of Directors approved the launch of a Group Culture and Conduct programme to take the Group’s cultural transformation forward, ensure compliance with the strictest integrity standards, and to forge a lasting relationship with stakeholders, built on trust. This Culture and Conduct programme was extended in 2021 and continues to be of major importance.

In 2022, the Group continued to standardise how Culture and Conduct are managed and monitored. Normative documents have been drafted and the topic is now included on the agendas of the Internal Control Committees of BUs and SUs. The Conduct and Compliance assessment guide has been updated and management of conduct incidents and disciplinary sanctions optimised. In addition to the annual mandatory Code of Conduct training, the Group now provides key personnel with continuous training in management of conduct risk. Awareness campaigns were also run to foster an environment that is conducive to appropriate behaviour, in line with the Group’s values.

Providing training and establishing an ESG culture are seen as key for successfully realising the Group’s CSR goals. The range of training courses was reviewed in 2022 to sharpen the focus on CSR skills. Structured around six priorities (ESG fundamentals, ESG risks and analysis, the energy and environmental transition, sustainable IT, social and green financing, and positive-impact investments) and available in different formats (videos, conferences, MOOCs, master classes, and more), there are close to 100 modules available to all Group staff, from beginners to experts. Working from this line-up, the Group is determined to make ESG training available to all staff and to go big on Climate Fresco workshops with a large-scale roll-out by the end of 2024. At the end of 2022, more than 65% of staff had completed an ESG training course and 7,500 people had taken part in the Climate Fresco workshop.

Managing ESG-related risks and meeting commitments to human rights, climate and biodiversity

The Group is determined to meet and manage its commitments, providing full transparency. One area of work concerns setting standards and methods for financial institutions, which will improve how targets are set and monitored against commitments, especially in terms of aligning credit portfolios with the climate objectives of the Paris Agreement. Societe Generale has either spearheaded or is participating in global cross-cutting initiatives. It joined a number of working groups and coalitions in 2022 to develop common methodologies and continue to chart a course for decarbonising its credit portfolios. Societe Generale joined the Aviation Climate-Aligned Finance (CAF) Working Group (https://rmi.org/press-release/banks- chart-flight-path-to-decarbonize-aviation/) as a founding member, alongside five other top global banks involved in financing the aviation industry. They will work together to define common goals by end-2022 to speed up decarbonisation of the sector. Turning to the role that lenders play in decarbonising the aluminium sector (which represents 2% of planet-heating emissions per year), the Group is a founding member of the Aluminum Climate-Aligned Finance Working Group, partnering with the Rocky Mountain Institute’s (RMI) Center for Climate-Aligned Finance and the main lenders to the sector to help decarbonise the aluminium sector. The working group will put together a climate-aligned finance framework. By joining the CAF framework, participating lenders will assess progress against climate targets by assessing to what extent the emissions associated with their aluminium portfolios meet the 1.5°C target, according to the guidelines issued by the Net-Zero Banking Alliance, convened by the United Nations. To align steel lending portfolios with net zero targets, the Group signed up to the Sustainable STEEL Principles (SSP, available here: https://steelprinciples.org/), the first climate-aligned agreement for the steel industry. The SSPs are a solution for measuring and disclosing the alignment of steel lending portfolios with the goal of limiting global warming to 1.5°C or below.

Biodiversity is critical to environmental sustainability. And Societe Generale has stepped up its pledge to protect biodiversity as part of its broader approach to tackling climate change. Alongside its clients, the Group is taking an active role in coalitions, alliances and working groups to develop common standards and methodologies. A member of the Act4Nature alliance (http://www.act4nature.com/), it has made 18 commitments to protect biodiversity. They span risk management (sectoral policies, exclusions and protected areas), relations with clients, partnerships (evaluation, dialogue, innovation and our active participation in international shared framework initiatives), as well as our own operations (governance, training and responsible purchasing). Societe Generale takes part in three leading international initiatives to protect biodiversity:

The Group also reviewed its Industrial Agriculture and Forestry Sector Policy in 2022 to improve the management framework and include information on logging (see Chapter 5, page 316).

Societe Generale has been cutting its carbon footprint over several years. The Group is committed to cutting its own carbon emissions by 50% in the period 2019 to 2030 by focusing on the energy required for its premises, IT, air travel and its fleet of cars. At the end of 2022, the Group had made good progress towards achieving the target reduction of 35% from 2019 levels. It embraced the lower energy consumption drive by the French government with a target of lowering the energy it uses – gas, electricity and fuel – by 10% in 2024 compared to 2019. The Group also signed up to the EcoWatt commitment charter drawn up by France’s transmission system operator (RTE)* and the French Agency for the Environment and Energy Management (ADEME)* and its goal of improving energy consumption and reducing the risk of power cuts in France.

To get to its goal faster, the Group introduced internal carbon taxes to reward the best energy efficiency practices. Under the system, an internal carbon tax (EUR 25 per tonne of CO₂ for 2022) is collected from Group entities. A portion of the proceeds goes to rewarding best practices in the form of the Energy Efficiency and Environment Awards. Savings in 2022 amounted to EUR 1 million and 4,300 tonnes of CO₂.

In November 2021, the Group committed to banning single-use plastics from the workplace by 2025, and sooner if possible in some regions.

The Sourcing Function plays an important role in implementing the Group’s CSR strategy. It helps give tangible form to our values and strives to ensure the Group’s social and environmental commitments are achieved. Societe Generale’s responsible sourcing practices have been bolstered over the years to consistently take environmental and social factors into account in the procurement area. In January 2022, the French National Ombudsman (Médiation des entreprises) and National Procurement Council (Conseil national des achats) unanimously approved the decision to renew the Group’s Responsible Sourcing and Supplier Relations certification for a further three years.

Under Societe Generale’s continuous improvement approach to managing E&S-related risks, two supplier CSR audits were conducted by an independent firm covering a medium-high E&S risk category. Further supplier CSR audits are due to be conducted in 2023 on two new risk categories. The Sourcing Division also worked on improving how it identifies whether a supplier represents a potential source of E&S controversy. Using a dedicated tool designed to identify and assess ESG controversies, it monitors approximately 600 “targeted” suppliers (representing a significant volume of purchases at Group level or sensitive for the brand) and/or suppliers assessed as posing a medium or high E&S risk in France, and a high E&S risk in its international network.

Going beyond managing E&S risk at its suppliers, the Group is developing positive-impact sourcing. Societe Generale was awarded the CSR Approach Trophy for its supplier environmental and social policy at the Pacte PME association’s event on 30 September 2022. Over the period 2021-2023, the Group’s target is to maintain expenditure on SSE (Social and Solidarity Economy) structures at EUR 14 million per year. At the close of 2022, expenditure in this area amounted to EUR 13.6 million.

Societe Generale’s sustainable development efforts have not gone unnoticed by ratings agencies. Following on from its excellent ESG ratings in 2021, the Group again rated highly in 2022 across the board with all rating agencies in the three Environmental, Social and Governance segments, reflecting the depth of its commitment and the quality of its actions to promote sustainability. Crowning these efforts, it was assessed as “Strong” and ranked No. 2 bank worldwide⁽¹⁾ by S&P Global Rating.

Societe Generale launches its first acceleration programme dedicated to startups linked to Trade Finance, Cash Management, Factoring, and Cash Clearing & Correspondent Banking activities.

The Group, a partner of many startups, is launching a new call for projects to improve the customer experience in the transaction banking sector, by increasing the performance and productivity of its activities. With the new “Payment & Transaction Banking Accelerator” (P&T BAX), Societe Generale aims to repeat the successful experience of the previous four Global Markets Incubator initiatives that have enabled startups to emerge and develop in partnership with Societe Generale.

The P&T BAX programme is a unique opportunity for entrepreneurs to convert innovative ideas into market-ready solutions and to gain valuable exposure to the industry. The proposed solutions may be related to data, client communication interfaces, CSR and the fight against fraud, amongst other topics. The selected startups will have access to Societe Generale’s expertise, with the opportunity to present their solutions and services to real-life business environments.

“In a constantly changing environment, Societe Generale’s payment & transaction banking activities are accelerating their digital transformation thanks to their ability to collaborate with startups. By combining our respective expertise and cultures, we are resolutely accompanying our customers into the world of tomorrow”, commented Alexandre Maymat, Head of Global Transaction & Payment Services at Societe Generale.

“Being innovative and pioneering is part of Societe Generale’s DNA. With the Payments & Transaction Banking Accelerator, we are taking a strong role in supporting the startup ecosystem and in transforming transaction banking activities”, added Claire Calmejane, Chief Innovation Officer for Societe Generale Group.

Faced with growing environmental and societal challenges, our clients want to give more meaning to their investments. To meet this need, in line with the Group’s commitments, Societe Generale Private Banking launches a new fund dedicated to the climate: “Moorea Fund – Sustainable Climate Action”.

Created by the synergy between the two private banking management companies – Societe Generale Private Wealth Management and SG 29 Haussmann – this fund is in line with the United Nations Sustainable Development Goals (SDGs). As a major challenge for our society, climate change is at the heart of all concerns; around the world, companies, governments and citizens are mobilising to deal with it.

Thanks to this global awareness, the levers for a change in climate trajectory have been clearly identified: the evolution of regulations, demand and our economies. The companies at the heart of this change are thus gradually getting involved and creating new investment opportunities. In this new context which is increasingly favourable to eco-sectors and facilitating environmental initiatives, it seems essential to us to also guide the client towards impact investments.

Over the long term, our belief is that companies that take environmental and social concerns into account and maintain a high level of corporate governance are likely to be key investments. This sustainable approach makes it possible to grasp the dynamics of the equity markets and associate it with the development of eco-sectors.

Our determination is to offer a fund that aims for long-term capital appreciation and to generate a positive environmental impact through investments in shares issued by companies that operate in sustainable eco-sectors and develop solutions that contribute actively to the environmental transition. Sustainable eco-activities include, but are not limited to, renewable energy, energy efficiency, green mobility, green buildings, sustainable water and agriculture and the circular economy.

Based on an investment philosophy initiated several years ago, this fund aims more specifically to:

“This fund is the culmination of extensive fundamental and quantitative research. It provides our delegated customers with an effective solution that reconciles the protection of their savings and the pursuit of sustainable development objectives” commented Guillaume de Martel, Executive Chairman of SG 29 Haussmann.

“We want to offer a full range of solutions and strategies, dedicated to sustainable and responsible investments and developed for private investors. We are indeed convinced that a solid corporate social responsibility policy is synonymous with sustainable financial performance”, explained Alexandre Cegarra, CEO of SGPWM.

To ensure the consistency of the actions proposed, the companies selected for the “Moorea Fund: Sustainable Climate Action” meet both ESG (environmental, social and governance) criteria and also demanding financial criteria. In addition to a solid and established business model, companies must present sustainable growth prospects, an excellent balance sheet and a proven ability to obtain an appropriate return on its equity.

Finally, this UCITS fund has a European passport that meets the highest level of European regulations on sustainable finance (SFDR⁽¹⁾ Art. 9) and presents a UCITS 6 risk-return profile.

Societe Generale, in its role as Financial Advisor and Mandated Lead Arranger (MLA), worked with Provence Grand Large (PGL) and the sponsors – EDF Renouvelables and Enbridge Éolien France 2 SARL, a subsidiary of Enbridge Inc. and CPP Investments, to raise financing for France’s first floating wind pilot project.

PGL successfully raised a debt package of EUR 300 million from a syndicate of eight commercial banks, including Societe Generale and the European Investment Bank.

This transaction is the first-ever limited-recourse project financing for a floating wind project in construction, representing a key milestone in the development of what is expected to be a rapid global expansion of the floating wind sector.

Nathalie Lemarcis, Co-Head of London Energy Advisory and Project Finance, Societe Generale, said “We have long seen floating wind as a key technology for driving the global growth in deployment of offshore wind and we are very proud that Provence Grand Large, EDF Renouvelables and Enbridge Éolien France 2 SARL, a subsidiary of Enbridge Inc. and CPP Investments, put their trust in Societe Generale to structure and deliver the project financing for what we consider to be a landmark transaction for the industry”.

Provence Grand Large is a pilot floating offshore wind project with a capacity of 25 MW located in the Mediterranean Sea, 17 kilometres off Port-Saint-Louis-du-Rhône, near Marseille. It will be the first project using the tension leg platform technology, with floaters designed by SBM Offshore and IFP Énergies Nouvelles. The project’s three floating wind turbines will be supplied by Siemens Gamesa.

For Societe Generale, this financing represents the latest step on a journey that started several years ago, having recognised the global potential for floating offshore wind farms to access areas of deeper water unsuitable for fixed foundations. Having worked with several clients on the bankability of various floating wind technologies over the past few years, PGL represents a validation of our confidence that floating wind is a bankable asset class. We are also very pleased to be a lender (MLA) in the debt facilities.

The PGL transaction is a perfect example of the Bank’s long-standing expertise and proven track record⁽²⁾ for innovation in energy infrastructure projects with strong advisory, technical and financing capabilities to support our clients in the energy transition in all areas including the integration of renewables with hydrogen, storage and other emerging technologies.

Two new ESG solutions from Societe Generale Factoring aim to support corporate treasurers with their transition towards more sustainable growth models.

In order to support its clients with their ESG transition goals, Societe Generale Factoring, a Group subsidiary specialised in short-term financing solutions for businesses, is launching two new categories of ESG offers, which are applicable to its flagship products serving corporate clients. These include receivable finance, supply chain finance and forfaiting (discounting of commercial bills).

“With these new offers, Societe Generale Factoring contributes to Societe Generale Group’s commitment to support our corporate clients’ transition to more ecological and inclusive development models. These solutions help strengthen our relationship and advisory work with our clients”, says Aurélien Viry, CEO of Societe Generale Factoring.

Environmental and/or social financing

The first category of solutions proposed by Societe Generale Factoring aims to finance business activities with positive environmental or social impacts.

Eligible environmental projects⁽¹⁾ must involve underlying assets in a list of eligible categories, such as renewable energy, waste management, clean transportation, hydrogen and sustainable water and waste-water management.

Eligible social projects⁽²⁾ concern the financing of invoices from, for example, social and solidarity-based companies and associations, education and training, or social housing. The sectors principally concerned include healthcare, in particular hospitals, health insurance, as well as organisations caring for adults and children with disabilities.

Financing based on ESG performances⁽²⁾ (sustainability-linked)

The sustainability-linked (SL) solution is aimed at companies that have developed an ambitious CSR (Corporate Social Responsibility) strategy to improve the environmental and social impacts of their activities. It rewards the achievement of CSR objectives as defined by our clients. This approach encourages the transition of companies and their suppliers to more sustainable growth models. It is particularly appropriate for Supply Chain Finance programmes of large corporates that have many suppliers, such as mass retailers or industrial manufacturers.

Societe Generale Factoring demonstrates once again its capacity to develop specialist and innovative solutions to support its clients’ growth in a sustainable and responsive manner.

Societe Generale Securities Services (SGSS) offers new services for asset management companies wishing to develop innovative professional funds based on crypto currencies. More and more investors want to integrate crypto currencies in their portfolios. Asset management companies are therefore looking to build new ranges of solutions invested mainly in digital assets. To meet these specific needs, SGSS now offers asset managers to act as fund depositary, valuator and liability manager. The services offered by SGSS allow asset management companies to enhance their offer in a simple and adapted manner, within the European regulatory framework.

A head start on the market

SGSS’s new service has just been adopted by Arquant Capital SAS. The asset management company, licensed by the French Financial Markets Authority (AMF – Autorité des marchés financiers) and labelled “Finance Innovation”, is opening a range of specialised professional funds under French law, actively managed and invested in crypto currencies. The first two products of the range in euros are mainly based on Bitcoin, Ether and derivatives. “By combining SGSS’ innovation expertise with Arquant Capital’s technical skills, we are expanding our ability to meet the diversification needs of asset managers”, said David Abitbol, Head of Societe Generale Securities Services. “This solution provides Arquant Capital with an innovative structuring that allows us to scale our offering and focus on creating value for our clients”, adds Eron Angjele, CEO of Arquant Capital. Societe Generale Group is already a recognised expert in crypto assets with its subsidiary Societe Generale FORGE. It thus continues to develop its services related to digital assets to meet the needs of its clients.

From November, Societe Generale will offer “Boost”, its non-banking service platform dedicated to young people, to all customers aged between 16 and 24. After being the first bank to launch such a platform in 2019, Societe Generale will be the first bank in France to open this service free of charge to all young customers.

“Boost” brings together, on a digital platform, services related to skills development, independence, or entry into the workforce. More than ever, young people face many challenges during and after their school years. In order to further support young clients in these crucial moments of life, Societe Generale is expanding its “Boost” offer, developed three years ago in partnership with the start-up Wizbii.

With “Boost”, the Bank’s young customers will benefit from seven free services, set up by recognised startups committed to meeting the needs of young people:

This year, Societe Generale is also launching “Boost Privilege” giving access to additional services. “Boost Privilege” is offered for six months to young people who subscribe to an eligible product⁽¹⁾. “Boost Privilege” is also accessible for a fee of 2 euros per month. These services represent a total value of more than 200 euros per month:

Last, the young clients of the Banque Française Mutualiste subscribing to “Boost Privilege” will also have free access for six months to:

“Building on the satisfaction that the “Boost” platform has been offering to our customers for the past three years, we are now extending it to all our customers aged between 16 and 24. More than ever, Societe Generale is supporting young people in the management of their future,” explains Christophe Baniol, Societe Generale’s Head of the Retail Market.

Two years after the acquisition of Reezocar, Societe Generale in partnership with the startup is launching a dedicated automotive platform that offers the widest range of vehicles, financing and insurance options.

This digital platform, accessible directly from the Societe Generale website or App⁽²⁾, allows customers to:

On a single site and in a few clicks, the buyer can therefore inquire, search, choose, finance and insure their vehicle.

The platform is accessible to retail customers and will be open from December to professionals.

“This platform brings together, within a single digital space, all the expertise of the Societe Generale Group in the field of mobility in terms of quality vehicle procurement, car financing, insurance and related services, through a simple and efficient solution”, explains Ambroise Pascal, Head of Retail and Professional Banking in France.

For Laurent Potel, CEO of Reezocar: “This is a key milestone for Reezocar’s growth within the Societe Generale Group. This service is fully in line with Reezocar’s mission since its creation: seamless support throughout the entire vehicle purchase journey and the objective to offer the best customer experience on the market”.

Societe Generale Factoring continues to support its clients in their sustainable transition by expanding its ESG offering to SMEs/Mid-caps⁽¹⁾ and associations.

Following the successful launch of its offers to large companies, Societe Generale Factoring, the factoring subsidiary of Societe Generale Group, now offers SMEs/midcaps and associations in France new advisory and financing solutions meeting environmental, social and governance criteria, in collaboration with reference partners. The environmental and social factoring solution finances receivables relating to:

Eligible clients will benefit from a discount on their financing fee to encourage the ESG transition of their business.

Positive impact factoring, in partnership with EcoVadis⁽²⁾: the solution targets companies and associations with an EcoVadis rating.

The solution helps actions to improve their environmental and social impact. Customers benefit from a reduction in their financing commission if they meet the objectives set at the time of the contract, guided by the EcoVadis rating.

“Societe Generale Factoring is fully involved in the Societe Generale Group’s commitment to support its clients and accelerate their transition to greener and more inclusive development models. These new ESG offers complement our existing solutions for large corporates, in response to the growing interest of our clients,” said Aurélien Viry, Managing Director of Societe Generale Factoring.

These variations are applicable to Societe Generale Factoring’s main existing factoring offers.

In line with Societe Generale and Crédit du Nord’s ESG solutions, the Group is rounding out support to corporate clients to develop a more responsible and sustainable growth model.