The Group continued with its efforts to control operating expenses: when adjusted for changes in Group structure and at constant exchange rates, excluding the effect of the refund of the Euribor fine and adjusted for the impact of IFRIC 21, they were down -0.5% vs. Q1 15. The decline reflects the success of the cost savings plans implemented since 2012. Aware of the need to maintain these efforts, the Group has implemented a new cost-cutting plan in Global Banking & Investor Solutions aimed at saving an additional EUR 220 million by end-2017. This supplements the EUR 850 million plan already announced for the same deadline.

The Group's commercial cost of risk^([2]) continued to decline to 46 basis points (vs. 55 basis points in Q1 15), underpinned by the good quality of the Group's assets. The net cost of risk amounted to     EUR 524 million in Q1 16, down -10.1%* vs. Q1 15 (at its lowest level since 2008).

The "Basel 3" Common Equity Tier 1 (fully-loaded CET1) ratio stood at 11.1%^([3]) (10.9% at end-2015) due to the good capital generation during the quarter (+25 basis points). The leverage ratio stood at 4.0% and the total capital ratio amounted to 16.4% (respectively 4.0% and 16.3% at end-2015).

Commenting on the Group's results for Q1 2016, Frédéric Oudéa - Chief Executive Officer - stated:

"In a more challenging environment at the beginning of the year than last year, the Group generated sound results in Q1 2016, illustrating the benefits of its diversified and highly integrated business model, which is reflected in the constantly increasing synergies between the businesses. Despite the low interest rate environment, French Retail Banking continues to deliver a solid commercial and financial performance, while pursuing the far-reaching transformation of the operating and customer relationship model. International Retail Banking & Financial Services has doubled its contribution to Group net income and provided further evidence of its growth and profitability potential. In an unfavourable market environment, Global Banking & Investor Solutions has posted resilient results and reinforced measures to adjust its business model and increase operating efficiency. With a sound balance sheet and robust solvency ratios, the Group is confident about its outlook for 2016, and will continue to invest in its growth drivers, while at the same time rigorously managing its costs and risks."

1. Adjusted for revaluation of own financial liabilities and DVA
2. Corrected for the effect of the implementation of IFRIC 21 (excluding 3/4 of the taxes recognised in their entirety in Q1)

Net banking income

The Group's net banking income totalled EUR 6,175 million in Q1 16, vs. EUR 6,353 million in Q1 15, representing a decline of -1.8%* (and -3.3%* excluding non-economic items). In a restrictive macroeconomic environment, the Group benefited from the diversification of its universal banking model and its ability to generate synergies.

• French Retail Banking (RBDF) revenues rose +1.0% in Q1 16 vs. Q1 15. If the PEL/CEL provision is stripped out, revenues experienced an expected erosion after an excellent year in 2015, dropping -3.0%. French Retail Banking continued with its commercial expansion, generating more than 1,000 new business customer relationships and another record in terms of new relationships at Boursorama, with 61,000 new customers.
   
• International Retail Banking & Financial Services' (IBFS) net banking income rose +5.4%* in Q1 16 vs. Q1 15. In International Retail Banking, revenues were 6.7%* higher than in        Q1 15, with increased revenues in all regions. Insurance continued to expand (+7.8%* vs. Q1 15). Finally, in Financial Services to Corporates, net banking income was up +6.9%* vs. Q1 15, driven by the growth in Operational Vehicle Leasing and Fleet Management (+13.3%*).
   
• After a very good Q1 2015, Global Banking & Investor Solutions' (GBIS) revenues were down -9.4%* in Q1 16, especially in Global Markets and Investor Services (-12.8%*), which suffered from the effects of challenging market conditions. Financing & Advisory revenues grew +8.2%* in Q1 16 vs. Q1 15, with an increase notably in Structured Financing.

The accounting impact of the revaluation of the Group's own financial liabilities was EUR +145 million in Q1 16 (EUR +62 million in Q1 15). The DVA impact was nil in Q1 16 - it was EUR -9 million in       Q1 15 (see methodology note No. 7). These two factors constitute the restated non-economic items in the analyses of the Group's results.

Operating expenses

The Group's operating expenses amounted to EUR 4,284 million in Q1 16 (vs. EUR 4,442 million in Q1 15). They include the European Commission's refund of part of the fine paid in respect of the Euribor affair in December 2013 (EUR 218 million). When corrected for this item, operating expenses were 1.4% higher than in Q1 15. This variation can be explained by the increase in contributions to resolution funds and the different taxes recognised in their entirety as from the first quarter in accordance with the IFRIC 21 standard: they amounted to EUR 569 million in Q1 16 vs. EUR 386 million in 2015 (an increase of EUR +183 million). Excluding Euribor and adjusted for the effect of the implementation of the IFRIC 21 accounting standard⁽¹⁾, operating expenses were down -0.5%* in      Q1 16 vs. Q1 15.

In an attempt to contain operating expenses, the Group has announced an additional cost savings plan in Global Banking & Investor Solutions. This plan will result in an additional EUR 220 million of savings by end-2017 (for non-recurring transformation costs of EUR 160 million) and supplements the two previous cost savings plans implemented since 2012. The first plan, completed in 2015, resulted in savings of EUR 900 million for non-recurring transformation costs of EUR 420 million. The second plan, still under way, aims to save EUR 850 million over the period 2015-2017 for non-recurring transformation costs of EUR 450 million over the period. All in all, the Group will therefore have undertaken annual cost savings plans amounting to EUR 2 billion over the period 2012-2017, helping to offset the increase in taxes and generate the room for manoeuvre to invest in its fast-growing activities. Given these efforts, 2016 operating expenses are expected to stabilise vs. 2015, with a change ranging between 0% and -1%, or between 0% and +1% restating for the effects of the partial refund of the Euribor fine.

Operating income

The Group's gross operating income amounted to EUR 1,891 million in Q1 16 (EUR 1,911 million for the same period in 2015).  

The Group's net cost of risk amounted to EUR -524 million in Q1 16, down -10.1%* vs. Q1 15, reflecting the good quality of the Group's assets.

The commercial cost of risk (expressed as a fraction of outstanding loans) continued on its downtrend, therefore making it possible to confirm the Group's full-year target. The commercial cost of risk stood at 46⁽²⁾ basis points in Q1 16 vs. 55 basis points for the same period in 2015:

• In French Retail Banking, the commercial cost of risk continued to decline and now stands at 35 basis points (vs. 47 basis points in Q1 15), thanks to the low level for both business and individual customers.
• At 74 basis points (vs. 118 basis points in Q1 15), International Retail Banking & Financial Services' cost of risk was also lower, due primarily to an improvement in the cost of risk for business customers in Europe and Africa. The cost of risk in Russia remained stable despite a challenging economic environment. 
• Global Banking & Investor Solutions' cost of risk amounted to 41 basis points at the end of Q1 16 (vs. 12 basis points in Q1 15). This first quarter was marked by the booking of additional provisions on the oil and gas sector.

The gross doubtful outstandings ratio was 5.3% at end-March 2016 (vs. 5.5% at end-March 2015). The Group's gross coverage ratio for doubtful outstandings stood at 64%, up +1 point vs. March 2015. The improvement in these indicators continues the trend observed for several years.

The Group's operating income amounted to EUR 1,367 million in Q1 16 (vs. EUR 1,298 million in   Q1 15), up +3.8%*.

Net income

Group net income totalled EUR 924 million in Q1 16. This compares with Group net income of       EUR 868 million in Q1 15. The Group's effective tax rate amounted to 28.0% in Q1 16 (29.3% in      Q1 15).

When corrected for non-economic items (revaluation of own financial liabilities and DVA)⁽¹⁾, Group net income amounted to EUR 829 million in Q1 16, stable vs. Q1 15 (EUR 833 million).

The Group's ROE⁽²⁾ was 7.1% in Q1 16 (6.9% in Q1 15).

Earnings per share amounts to EUR 1.02 for Q1 16 (vs. EUR 0.96 in Q1 15), after deducting interest payable to holders of deeply subordinated notes and undated subordinated notes⁽³⁾. When adjusted for non-economic items, EPS for Q1 16 amounts to EUR 0.90 vs. EUR 0.91 in Q1 15 after deducting interest payable to holders of deeply subordinated notes and undated subordinated notes⁽³⁾.

Group shareholders' equity totalled EUR 59.0 billion⁽¹⁾ at March 31st, 2016 (EUR 59.0 billion at December 31st, 2015). Net asset value per share was EUR 62.13, including EUR 2.17 of unrealised capital gains. Tangible net asset value per share was EUR 56.46.

The consolidated balance sheet totalled EUR 1,368 billion at March 31st, 2016 (EUR 1,334 billion at December 31st, 2015). The net amount of customer loan outstandings, including lease financing, was EUR 385 billion (EUR 386 billion at December 31st, 2015) - excluding securities sold under repurchase agreements. At the same time, customer deposits amounted to EUR 360 billion, stable compared with the figure at December 31st, 2015 (excluding securities sold under repurchase agreements).

In Q1 2016, the Group issued EUR 9.7 billion of medium/long-term debt with EUR 9.1 billion at parent company level (in respect of a financing programme of EUR 34 billion in 2016), having an average maturity of 5.8 years and an average spread of 46 basis points (vs. the 6-month mid-swap, excluding subordinated debt), and EUR 0.6 billion by the subsidiaries. The LCR (Liquidity Coverage Ratio) increased and was well above regulatory requirements at 150% at end-March 2016 vs. 124% at end-2015.

The Group's risk-weighted assets amounted to EUR 351.2 billion at March 31st, 2016 (vs.
EUR 356.7 billion at end-December 2015) according to CRR/CRD4 rules. Risk-weighted assets in respect of credit risk represent 82% of the total, at EUR 289.0 billion, down -1.5% vs. December 31st, 2015.

At March 31st, 2016, the Group's Common Equity Tier 1 ratio⁽²⁾ stood at 11.1%⁽³⁾ (10.9% at end-December 2015), up +25 basis points vs. end-2015. The Tier 1 ratio was 13.7% (13.5% at end-December 2015) and the total capital ratio amounted to 16.4% (16.3% at end-December 2015).

The leverage ratio stood at 4.0%⁽²⁾ at March 31st, 2016 (4.0% at end-December 2015).

The Group has confirmed its requirements in terms of solidity of the balance sheet, with the retention of a margin of 100 to 150 basis points above the regulatory thresholds. For the CET 1 ratio, a Common Equity Tier 1 ratio⁽²⁾ target for the Group at end-2016 has been set above 11%, with a total capital ratio target of more than 18% at end-2017 in light of the implementation of TLAC (Total Loss Absorbing Capacity) obligations.

The allocation of capital to the Group's different businesses is based, as from January 1st, 2016, on 11% of each business' risk-weighted assets.

The Group is rated by the rating agencies DBRS (long-term rating: "A (high)" with a stable outlook; short-term rating: "R-1 (middle)"), FitchRatings (long-term rating: "A" with a stable outlook; short-term rating: "F1"), Moody's (deposit and senior unsecured long-term ratings: "A2" with a stable outlook; short-term rating: "P-1" and long-term Counterparty Risk Assessment of "A1" and short-term Counterparty Risk Assessment of "P-1"), Standard & Poor's (long-term rating: "A" with a stable outlook; short-term rating: "A-1") and R&I (long-term rating: "A" with a stable outlook).

RONE: See methodology note No. 2

1. Corrected for the effect of IFRIC 21 and PEL/CEL

After a record year in 2015, French Retail Banking continued to enjoy a robust commercial momentum in Q1 16.

The three brands continued to expand their customer base: with nearly 61,000 new customers, Boursorama, the leading 100% mobile bank in France, experienced an unequalled level of customer acquisition over the period and strengthened its leadership position. In the individual customer segment, despite a lower level of housing loan production than in 2015, the number of new customers was robust (+126,000 excluding Boursorama). In the business segment, French Retail Banking established relationships with more than 1,000 new companies in Q1 16.

In line with previous quarters, average outstanding deposits in the balance sheet continued to post strong growth of 6.5% to EUR 176.4 billion, driven by new customers won and the growth in sight deposits (+18.1% in Q1 16). At the same time, the level of gross insurance production remained high (EUR +3.0 billion). The other growth drivers were also healthy, with the continued development of synergies: net inflow for the new Private Banking operation in France came to EUR 715 million in Q1 16. There was a significant increase in the Property/Casualty and Personal Protection insurance ownership rate for French Retail Banking customers (increase of 1 point in the penetration rate to 19.6% and +2.7 points to 8.3% between 2013 and 2015 respectively).

Thanks to the proactive stance of the French Retail Banking teams in serving their customers, the Group continued to make an active contribution to supporting the economy: average outstanding loans totalled EUR 182.4 billion, up +4.0% vs. Q1 15. Investment loan production rose 14.8% in Q1 16, providing further confirmation of the recovery which began in 2015 and contributed to the growth of outstanding medium/long-term business loans (+1.5% vs. Q1 15). After a record level in 2015, housing loan production normalised (-32.3% vs. Q1 15). However, outstanding housing loans rose substantially (+7.9% vs. Q1 15). The average loan/deposit ratio continued to decline to 103% in Q1 16 (vs. 105% in Q4 15).

French Retail Banking posted slightly higher revenues (+1.0%). After neutralising the impact of PEL/CEL provisions and non-recurring items booked in Q1 15, revenues were 2.2% lower than in Q1 15 (-3.0% excluding PEL/CEL effect), in line with anticipations of an erosion of net banking income in 2016. The interest margin was restrained by the negative effects of the low interest rate environment and housing loan renegotiations, which were slightly mitigated by loan production and strong deposit inflow. Thanks to the development of synergies with the Group's other businesses, commissions were up 1.1% vs. Q1 15, driven by financial commissions.

Increased investments in the digital transformation and the higher contribution to the European Single Resolution Fund resulted in operating expenses rising +2.4% in Q1 16 (vs. Q1 15), whereas French Retail Banking maintained rigorous control of other expenses.

Operating income came to EUR 479 million (up +8.1%), on the back of the sharp decline in the net cost of risk (-21.7% year-on-year).

French Retail Banking's contribution to Group net income totalled EUR 328 million in Q1 16, up +17.6% vs. Q1 15. The contribution to Group net income was slightly lower (-1.1%), excluding the PEL/CEL effect. However, the level of profitability remained robust (RONE of 14.8% excluding PEL/CEL effect and proforma for IFRIC 21).

The division's contribution to Group net income totalled EUR 300 million in Q1 16, a twofold increase vs. Q1 15 (EUR 148 million). The increase can be attributed to revenue growth of +5.4%* vs. Q1 15 to EUR 1,825 million. Operating expenses remained under control, with the increase of +2.1%* mainly related to the higher contributions to resolution funds. The net cost of risk was also significantly lower (-30.7%*).

RONE: See methodology note No. 2

1. Corrected for the effect of IFRIC 21

4.1 International Retail Banking

International Retail Banking's outstanding loans rose +4.7%* in Q1 16 vs. Q1 15, to EUR 77.9 billion. The increase was particularly strong in the Czech Republic, Western Europe and Africa. Deposits also continued to enjoy robust growth in virtually all the Group's operations. Outstanding deposits totalled EUR 71.1 billion, up +4.4%*, with very dynamic inflow in Central and Eastern European countries and in Sub-Saharan Africa.

International Retail Banking posted revenues of EUR 1,218 million (+6.7%*) in Q1 16 on the back of the good business performance in Europe and Sub-Saharan Africa, as well as the improvement in margins and loan production in Russia. Gross operating income came to EUR 414 million (+9.8%*) and the contribution to Group net income was EUR 122 million, vs. EUR 34 million in Q1 15 (x3.6).

In Western Europe, where the Group has operations in France, Germany and Italy, mainly in consumer finance, outstanding loans were up +7.3%* at EUR 14.6 billion. Car financing was particularly dynamic over the period. In Q1 16, the region posted revenues of EUR 167 million, gross operating income of EUR 74 million and a contribution to Group net income of EUR 31 million, up +34.8% vs. Q1 15.

In the Czech Republic, Komercni Banka (KB) delivered a solid commercial performance in Q1 16. Outstanding loans rose +7.3%* vs. Q1 15 to EUR 20.0 billion, driven by the dynamism of loans to individuals and large corporates. Over the same period, outstanding deposits climbed +4.2%* to          EUR 25.5 billion. Revenues were stable* in Q1 16 vs. Q1 15 at EUR 257 million, given the persistent low interest rate environment. Over the same period, operating expenses were up +12.5%* due to the implementation of the local resolution fund. The net cost of risk is normalising after reaching a low of EUR 4 million in Q1 15. It amounted to EUR 18 million in Q1 16. Accordingly, the contribution to Group net income fell -25.9% to EUR 40 million.

In Romania, the economic environment is gradually improving. BRD Group's outstanding loans rose +1.4%* to EUR 6.1 billion, primarily in the individual customer and large corporate segments. Outstanding deposits were up +7.5%* at EUR 8.6 billion. In this context, the BRD Group's revenues were 0.8%* higher than in Q1 15 at EUR 128 million. Rigorous cost control resulted in operating expenses declining -2.0%* over the period to EUR 98 million. BRD's contribution to Group net income was EUR 2 million in Q1 16, compared to EUR 1 million in Q1 15.

In other European countries, the Group maintained a strong deposit inflow in Q1 16 (outstandings up +5.9%* at EUR 10.9 billion), while outstanding loans were 3.9%* higher at EUR 11.4 billion. Revenues were up +5.9%* in Q1 16 vs. Q1 15 (at EUR 179 million) and operating expenses amounted to EUR 134 million. The contribution to Group net income came to EUR 24 million, up +41.2% vs. Q1 15.

In Russia, in a still challenging environment, outstanding loans were down -5.3%* vs. Q1 15 at                   EUR 7.9 billion due to a more selective approach in loan production for individual customers. Corporate activity remained buoyant.  Outstanding deposits were 5.4%* lower than in Q1 15 at      EUR 6.6 billion. Net banking income climbed +48.4%* in Q1 16 to EUR 138 million, in conjunction with the improvement in margins and loan production volumes. Costs remained under control at EUR 116 million, down -0.9%* in a high inflation environment. Overall, SG Russia⁽¹⁾ reduced its losses over the period to EUR -18 million in Q1 16 (EUR -89 million in Q1 15).

In Africa and other regions where International Retail Banking operates, outstanding loans rose +6.5%* vs. Q1 15 to EUR 17.7 billion. Business was particularly dynamic in Algeria, Tunisia and West Africa. Over the same period, outstanding deposits also amounted to EUR 17.7 billion, up +6.2%*. At EUR 349 million, revenues rose +4.5%* vs. Q1 15, operating expenses were up +7.7%* and the net cost of risk was down -30.5%*. Overall, the contribution to Group net income came to EUR 52 million, up +15.6% vs. Q1 15.

4.2 Insurance

The Insurance business maintained its commercial momentum in Q1 16. Life insurance outstandings rose +2.6%* vs. Q1 15 to EUR 95.2 billion. Net inflow amounted to EUR 0.8 billion in Q1 16, with the proportion of unit-linked products remaining at a high level (60%). In terms of protection (Personal Protection and Property/Casualty insurance), business was also buoyant with premiums climbing +8% vs. Q1 15 to EUR 341 million in Q1 16.

The Insurance business delivered another sound financial performance in Q1 16. Net banking income was 7.8%* higher than in Q1 15 at EUR 220 million. The contribution to Group net income was up +11.4% in Q1 16, at EUR 78 million.

4.3 Financial Services to Corporates

Financial Services to Corporates maintained a strong momentum, with revenues of EUR 385 million in Q1 16, substantially higher than in Q1 15 (+6.9%*). Operating expenses totalled EUR 202 million, up +6.3%*. Earnings were 16.4% higher than in Q1 15, with a contribution to Group net income of EUR 128 million.

Operational Vehicle Leasing and Fleet Management continued to enjoy strong growth in its vehicle fleet in Q1 16 (+9.1% vs. Q1 15). This performance was underpinned by the successful development of its partnerships with car manufacturers and retail banking networks. ALD Automotive has also strengthened its position in the SME and VSE customer segment and accelerated its growth in the French and European markets with the acquisition of the Parcours Group.

Equipment Finance enjoyed a healthy level of new business in Q1 16 (up +2.7%* vs. Q1 15). Growth was focused mainly on the transport and industrial equipment sectors. New business margins held up well. Outstanding loans totalled EUR 15.4 billion (excluding factoring), up +4.4%* vs. Q1 15.

RONE: See methodology note No. 2

1. Corrected for the effect of IFRIC 21

Global Banking & Investor Solutions experienced a mixed start to the year, with revenues of           EUR 2,357 million in Q1 16, down -9.5% vs. Q1 15 which benefited from a particularly favourable environment (EUR 2,604 million). The result reflects a decline in the revenues of Global Markets and Asset and Wealth Management, in a challenging market environment, and the growth of Financing & Advisory activities.

Global Markets & Investor Services

Global Markets & Investor Services' revenues totalled EUR 1,549 million in Q1 16, down -12.9% vs. Q1 15. The beginning of the quarter was marked by increasing concerns regarding the Chinese economy and the ongoing decline in oil prices, which led to turbulence in the equity markets with the instability of volatility and correlations. The rise in oil prices and the European Central Bank's announcements triggered a slight rebound in the second part of the quarter.

• Equity activities experienced a decline in performance, with revenues down -36.8% in Q1 16 vs. Q1 15, at EUR 540 million, both in flow activities and structured products, in market conditions marked by investors' risk aversion. However, listed products grew substantially on the back of market share gains in Europe. The Group has maintained a recognised position in securities transactions (market share of 9.5% in Q1 16, an increase vs. Q1 15 based on SG Euronext Global volumes).
   
• At EUR 689 million, Fixed Income, Currencies & Commodities posted revenues up +17.0% vs. Q1 15. The good performance of rate and commodity activities in Q1 16 helped offset weak market appetite for credit and forex activities, which were impacted by an unfavourable market environment, with substantial instability and lower volumes.
   
• Prime Services' revenues totalled EUR 161 million in Q1 16, up +11.0% vs. Q1 15. This result reflects a healthy commercial momentum, notably in Prime Brokerage activities, with the winning of new mandates resulting from the revenue synergies achieved with the integration of Newedge.

• Securities Services saw its assets under custody reach EUR 4,019 billion, slightly higher than in December 2015. Over the same period, assets under administration fell -6.0% to EUR 574 billion. Securities Services' revenues were down -15.9% in Q1 16 vs. Q1 15 at EUR 159 million, due to an uncertain and declining market, leading to a reduction in trading volumes and the asset base, as well as a negative interest rate environment.

Financing & Advisory

Financing & Advisory posted revenues of EUR 572 million, up +8.5% vs. Q1 15, driven by the good momentum on structured financing. Natural resources financing proved resilient, in an increasingly competitive environment. The market share of Debt Capital Markets activities (raising of debt on behalf of clients) increased in Q1 16: 6.6% and No. 3 in the euro issues segment all issuers combined  (5.4% in 2015 and No. 5, source IFR). Societe Generale's expertise was recognised again in Q1 16, with the title of "Best Investment Bank in France", awarded by Global Finance.

Asset and Wealth Management

The revenues of the Asset and Wealth Management business line totalled EUR 236 million in Q1 16, down -21.1% vs. Q1 15.

Private Banking's assets under management amounted to EUR 110 billion at end-March 2016. Despite buoyant inflow of EUR +1.7 billion, notably in France and Luxembourg, assets under management were 2% lower than at end-2015, reflecting, amongst other things, negative market effects. Net banking income was down -18.7% vs. Q1 15, at EUR 196 million, due to declining markets, with this variation being enhanced by the recognition in Q1 15 of non-recurring income. The gross margin remained at 106 basis points.

Lyxor's assets under management came to EUR 100.7 billion (-3% vs. end-December 2015), despite positive inflow, impacted by the market trend. Lyxor has maintained its No. 3 ETF ranking in Europe, with a market share of 10.3% (source ETFGI). Lyxor's revenues amounted to EUR 32 million in Q1 16, down -38.5% vs. Q1 15, in an unfavourable market environment and in conjunction with a shift in the business mix towards lower margin activities.

Operating expenses

Global Banking & Investor Solutions' operating expenses were down -8.4% in Q1 16 vs. Q1 15, reflecting the refund of part of the Euribor fine⁽¹⁾, which more than offsets the higher contribution to the Single Resolution Fund⁽²⁾ (included in full in Q1 in accordance with the IFRIC 21 standard). When restated for these two effects, operating expenses were down -1.9%. In order to deal with a deteriorated environment and an increase in regulatory costs, the division has put in place an additional cost savings plan aimed at reducing its operating expenses by an additional EUR 220 million between now and end-2017.

Operating income

Gross operating income came to EUR 640 million, down -12.3% vs. Q1 15.

The net cost of risk totalled EUR 140 million in Q1 16, including new provisions on the oil and gas sector. It was EUR 90 million higher than in Q1 15 but EUR 90 million lower than in Q4 15.

The division's operating income totalled EUR 500 million in Q1 16, down -26.5% vs. Q1 15.

Net income

The division's contribution to Group net income came to EUR 454 million in Q1 16 (-14.7% vs. Q1 15). When restated for the effect of the IFRIC 21 standard, the division's RONE amounted to 15.6% (11.5% in absolute terms). Excluding the effect of the partial refund of the Euribor fine, Global Banking & Investor Solutions' RONE was 10.1% in Q1 16.

1. Adjusted for revaluation of own financial liabilities

The Corporate Centre includes:

-      the property management of the Group's head office,

-      the Group's equity portfolio,

-      the Treasury function for the Group,

-      certain costs related to cross-functional projects and certain costs incurred by the Group and not re-invoiced to the businesses.

The Corporate Centre's revenues totalled EUR -91 million in Q1 16 (EUR -110 million in Q1 15), including EUR +145 million in respect of the revaluation of the Group's own financial liabilities        (EUR +62 million in Q1 15). Operating expenses amounted to EUR -9 million (EUR -20 million in Q1 15). The Corporate Centre's gross operating income was EUR -100 million in Q1 16 vs. EUR -130 million in Q1 15. When restated for the revaluation of own financial liabilities (see methodology note No. 7), gross operating income amounted to EUR -245 million in Q1 16 (vs. EUR -192 million in Q1 15).

The new rules for the allocation of capital to the businesses, established on the basis of 11% of RWA (risk-weighted assets) since January 1st, 2016, have led to the estimate for the Corporate Centre's gross operating income, excluding the revaluation of own financial liabilities, being revised to around EUR -650 million for 2016.

The Corporate Centre's contribution to Group net income was EUR -158 million in Q1 16, vs. EUR -91 million in Q1 15.

In Q1 2016, Societe Generale generated Group net income of EUR 924 million in a sluggish economic environment. This sound result is underpinned by the strength of its three pillars: (i) French Retail Banking, which once again demonstrated the profitability of its business model and its ability to expand in its growth drivers, (ii) International Retail Banking & Financial Services which has consolidated its growth in high-potential businesses and regions, (iii) Global Banking & Investor Solutions which is supported by its synergetic business model and pursuing its efforts to control costs and risks. EPS adjusted for non-economic items amounts to EUR 0.90 in Q1 16, stable vs. Q1 15 in a much less favourable environment.

Societe Generale intends to draw on the strength of its diversified banking model, the additional efforts made on operating expenses, and the good quality of its asset portfolio to sustain its commercial and financial performance in 2016.  

*  When adjusted for changes in Group structure and at constant exchange rate

NET INCOME AFTER TAX BY CORE BUSINESS
(In EUR millions)

E-Mail-Adresse

Bitte überprüfe deine die E-Mail-Adresse.

Benachrichtigungen von ARIVA.DE
(Mit der Bestellung akzeptierst du die Datenschutzhinweise)

-1

Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink.

Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte.

Andere Nutzer interessierten sich auch für folgende News

04:49 - PR Newswire

Norges Bank - Form 8.3 - BHP Group Limited

02:44 - PR Newswire

Tellworth Investments LLP - Form 8.3 - Accrol Group Holdings Plc