EuroBusiness Media (EBM): Société Générale, one of the largest European financial services groups, reports results for 2021. Frédéric Oudéa, hello and welcome.
Frédéric Oudéa: Hello, thank you.
EBM: You are the CEO of Société Générale, how did the group perform over the fourth quarter, and more generally, over the whole year 2021?
Frédéric Oudéa: We had, in the fourth quarter this year, again a very strong performance across the board, and for the full year, actually for the full year 2021, we are recording the best ever results of the history of Société Générale group. €5.3 billion of underlying net profit, and if I even consider the exceptional items, €5.6 billion of net profit. We never did as well as in 2021. And it’s really the results and the contribution of all our activities, all our businesses. Of course, in a more positive, more favourable economic and financial environment than in 2020, but we were able to accompany our clients in the progressive exit of this pandemic, so across the board, strong growth of revenues, good discipline on costs, so strong improvement of gross operating income, a cost of risk which was very low, which remained very low and even lower at the end of the year than probably in the previous quarters. All in all, again a very strong performance in terms of net profit. That feeds a good core tier one ratio, capital ratio and that allows us, of course, to distribute to our shareholders a good dividend, €I.65 per share, and on top of that, a share buy-back programme for the equivalent of €1.1 per share, so something like € 915 million of share buy-backs which will be implemented in 2022. Beyond these financial results, let me just highlight that we of course pursued with our commitments regarding ESG, with further delivery, further results on that front. And all in all, I would like to conclude just by saying a big thanks to the team for this extraordinary collective performance that they were accountable for.
EBM: Could you expand more specifically on the progress you have made with your major strategic business projects?
Frédéric Oudéa: I must say beyond the strong financial performances, 2021 is a crucial year because we were able to make very significant progress in strategic, very value creative projects. Let’s start with French Retail; you know we have a dual offering. We are building a new bank, an ambitious new bank and we were able to have a positive milestone in 2021 regarding the merger of our 2 networks, designing in detail the precise business model. Boursorama accelerated its organic growth, 3.3 million clients at the end of 2021 and on top of that it was able to announce to enter into exclusive discussion with ING Direct to offer an alternative banking proposal to ING clients, so it’s a way to accelerate and we are going to be one year ahead of our plan, with more than 4 million clients at the end of 2022. Regarding International Retail, across the board it’s a transformation of the business model which combines branches but also digital channels. Financial Services, needless to say the announced acquisition of LeasePlan by Ald is a major step for the group, it is offering 15 years of growth in the mobility sector with the changes in the usage of our clients, whether they are corporates or retail clients, and regarding our Global Banking and Investment Solution businesses, we want to pursue the dynamic regarding the capital Market activities we dealt perfectly well with the structured product portfolio and we want of course to carry on developing these activities as well as taking advantage of the fact that our clients are transforming their business models, want to engage in ESG and we are very positive about the prospects of our Financing and Advisory activities. So, as you see, some very critical, strategic milestones which are building the future of the group.
EBM: After a historic performance for the group, what are your priorities for 2022?
Frédéric Oudéa: Well, first of all, pursue the same commercial dynamic and deliver again a strong set of results for 2022, needless to say. But of course, as I’ve said 2022 is critical for our strategic projects, an intense year of preparation and if we succeed, we will enter into 2023 with a lot done, to build this new Société Générale business model. And then, very importantly of course, pursue the transformation related to two fundamental dimensions. Everything around ESG. We want to enshrine these issues at the heart of the strategies of our businesses and we will take again further actions there. And, of course, regarding the use of digital technology, as a result of this crisis people are going to use more this technology and we think it’s a way to offer better service to our clients as well as to improve our internal efficiency, better efficiency of our processes. So, 2022 will remain a very demanding, very intense year, but I’m very confident and we are engaging in this year with a very strong collective, positive energy, fed, of course, by the successes of 2021.
EBM: Frédécric Oudéa, thank you.
Frédéric Oudéa: You’re welcome.
