EuroBusinessMedia (EBM): Société Générale, one of the largest European financial services groups, reports results for the first quarter of 2018. Frédéric Oudéa, hello.
Frédéric Oudéa: Hello.
EBM: You are the CEO of Société Générale. How would you describe the results for this first quarter of 2018?
Frédéric Oudéa: First of all, at the beginning of this year we are effectively starting the journey of our three-year strategic and financial roadmap. And I would say the commercial development of our businesses, the different transformations, are consistent with our strategic plan. In particular the capacity of the businesses to conquer new clients in the retail activities in particular, whether in France or in international retail. In the markets, we have a contrasted environment, depending on the geographies and on the activities, but all in all, if I add on top of that a strong control on costs, and effectively a still very low cost of risk, we are posting financially a pretty encouraging profitability, a return on tangible equity above 10% and a capital trajectory in line also with our anticipations. So, I would say an encouraging start and of course we have to pursue the transformation.
EBM: And what are the objectives for your main business lines?
Frédéric Oudéa: For the French retail activity, 2018 is a year of intense transformation. We are ambitious in terms of the digitalisation of our processes. We want to further adjust the branch network. We are effectively, currently starting to close back offices and on top of that of course, we want to implement new business models targeting new client segments. So, a lot of activity, a lot of changes. In terms of financial performances, we confirm the objective to stabilise overall the revenue for the full year. We start with a slight erosion and things will progressively improve. Regarding International Retail, Financial Services and Insurance, I would say pursue this strong growth, growth of NBI, growth of profitability and when I see the beginning of this year I am very confident in the capacity to deliver. Then on the wholesale business, in an environment which is still contrasted because we are progressively exiting these very accommodative monetary policies from the central banks, we want to pursue our strategic plans and focus on European products. I’m very happy with the positioning we have at the end of the first quarter in terms of league tables and effectively on the derivative side and after three years of progressive improvement of market share, confirmed by the figures, we want to pursue on that development with also hopefully compared with our European peers, a better return on the capital employed.
EBM: So, what is the current thought process on the evolution of the Group’s governance that you are announcing today?
Frédéric Oudéa: I have decided to propose to the Board, which has confirmed that, a fundamentally significant change of people and more marginally of organisation of our management team. With the ambition to have a team which will reflect the profound diversity of the pool of talents of our management teams. And I’m very proud to have, for example, the first woman appointed deputy CEO, Diony Lebot, who has spent more than 30 years with Societe Generale, predominantly in the business, in investment banking, in France as well as abroad, she has been Head of our US operations and had been appointed Chief Risk officer (CRO)three years ago. But all the talents that we have appointed reflect that, as I’ve said very rich banking experiences and also complementary professional backgrounds which I think is a recipe for success for this new team. We also announce as a consequence of these appointments, the appointment of a new CFO, a new CRO, themselves, these two people also are actually very strong bankers and I’m very confident in the capacity of this team to drive the implementation of our new strategic plan. And may I say, just as a final point, I would like to thank the board which has reconfirmed its confidence in my capacity to lead this team and effectively has confirmed that they wish to propose the renewal of my mandate of CEO in the General Assembly next year, in May 2019, so I’m fully committed with a lot of energy for the next five years.
EBM: Frédéric Oudéa, CEO of Société Générale, thank you very much.
Frédéric Oudéa: You’re welcome.
