SOCIETE GENERALE: ACTIVITY AND 2012 RESULTS, QUARTERLY FINANCIAL INFORMATION

Wed Feb 13, 2013 1:13am EST

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          ACTIVITY AND 2012 RESULTS           
            REGULATED INFORMATION             
 Paris, February 13th, 2013                   
                                              
 2012 TRANSFORMATION OBJECTIVES ALL ACHIEVED  


*Balance sheet significantly strengthened 

*Corporate and Investment Banking's loan disposal programme completed  
*Business asset disposal programme implemented: sale of Geniki and TCW, agreement for the disposal
of the Egyptian subsidiary, NSGB 
*Satisfactory liquidity structure 

         Core Tier 1 ratio(1): 10.7%, increase of +165 bp in one year

        Confirmation of the Basel 3 Core Tier 1 target at end-2013 (9%-9.5%)

*Group's profit-generating capacity maintained 

*NBI(2) stable (-0.3%) vs. 2011, at EUR 24,963m        Good business performance despite resource
constraints 
*Operating expenses down -4.1%*         

Increase in the net cost of risk (EUR -3,935m, +11.9%(3)), related to the deteriorated
macroeconomic situation in Europe

*Underlying Group net income: EUR 3,368m 

Book Group net income: EUR 774m, including EUR -2,594m related to non-economic and non-recurring
items, and Corporate and Investment Banking's legacy asset portfolio(2)        


*EPS(4): EUR 0.64, proposed dividend payment of EUR 0.45 per share, with a scrip dividend option,
corresponding to a payout ratio of 26% (excluding the revaluation of own financial liabilities) 

Q4 2012: UNDERLYING GROUP NET INCOME OF EUR 537M.         
CONTINUED IMPROVEMENT IN THE CORE TIER 1 RATIO(1): +40 BP IN Q4 12 

*NBI(2) of EUR 5,910m, -1.0% vs. Q4 11 
*Non-economic or non-recurring items had a significant impact on book income: book Group net
income of EUR -476m

 (1)        Calculated according to EBA Basel 2.5 standards (Basel 2 standards incorporating CRD3 requirements).                                                                                                                                                                                                                                                                                                                                
 
 (2)         Excluding non-economic or non-recurring items and legacy assets. Non-economic items: revaluation of own financial liabilities and the Group's loan portfolio hedges. Non-recurring items: goodwill write-down, capital gains/losses on business assets sold or available-for-sale assets, impact on profit and loss of debt buybacks, restructuring of Greek sovereign debt. Impact on Group net income of non-economic items:   
 EUR -859m in 2012, including EUR -822 million for the revaluation of own financial liabilities; non-recurring items: EUR -1,319m in 2012; legacy assets: EUR -416m in 2012.                                                                                                                                                                                                                                                                    
 
 (3)         Excluding litigation issues, legacy and Greek sovereign assets. Steady decline in the cost of risk in basis points.                                                                                                                                                                                                                                                                                                              
 
 (4)         After deducting interest, net of tax effect, to be paid to holders of deeply subordinated notes and undated subordinated notes (respectively EUR 266 million and EUR 27 million). At end-December 2012, the capital gain net of tax and accrued unpaid interest relating to buybacks of deeply subordinated notes amounted to EUR 2 million.                                                                                     
 
 *         When adjusted for changes in Group structure and at constant exchange rates                                                                                                                                                                                                                                                                                                                                                        


The Board of Directors of Societe Generale met on February 12th, 2013 and examined the Group's
financial statements for 2012. Group net income came to EUR 774 million for 2012 and net banking
income totalled EUR 23,110 million. Group net income amounted to EUR -476 million in Q4, with net
banking income of EUR 5,130 million. 

Given these results, the Board of Directors will propose the distribution of a dividend of EUR
0.45 per share, with a scrip dividend option, to the General Meeting of Shareholders. This
corresponds to a payout ratio of 26% of Group net income, net of the effect of the revaluation of
own financial liabilities.

2012 marked the achievement of key milestones in the transformation process under way since 2010:

*completion of  deleveraging programmeCorporate and Investment Banking's (disposal of EUR 16
billion of loan portfolio assets since end-June 2011) and continuation of the legacy asset
disposal programme (disposal of EUR 19 billion of legacy assets over the last 18 months). 
*business refocusing and business asset portfolio optimisation, marked mainly by the sale of the
Greek subsidiary, Geniki, in International Retail Banking, and TCW in Private Banking, Global
Investment Management and Services, the agreement to sell the Egyptian subsidiary, NSGB, as well
as by the trend in the Group's risk-weighted assets, which fell in 2012. The asset disposal
programme has thus already achieved the lower end of its target range and considerably reduced
balance sheet risks.  
*very satisfactory improvement in the financing structure, with an improved loan/deposit ratio,
high medium/long-term debt issuance volumes and extended maturities. 
*implementation of efficiency measures, which resulted in a decline in operating expenses vs.
2011.  

Coupled with the solid business results, these initiatives helped boost the Group's Core Tier 1
ratio( #ftn1 1) to 10.7% at year-end, an increase of +165 basis points in one year. 

Although exposed to a sharply slowing environment, Retail Banking posted generally satisfactory
revenues. Accordingly, the French Networks enjoyed stable net banking income. Revenues were also
stable* in International Retail Banking but concealed a more mixed situation: revenues were solid
in the Czech Republic, Russia, Mediterranean Basin and Sub-Saharan Africa, whereas other countries
in Eastern Europe experienced reduced activity due to a deteriorated economic environment. Lastly,
Specialised Financial Services and Insurance revenues grew, especially in the Insurance activity.
Corporate and Investment Banking, whose revenues were stable vs. 2011 despite the disposal of loan
portfolios and legacy assets under way for 18 months, benefited from the gradual normalisation of
the markets in 2012, particularly in Fixed Income, Currencies & Commodities activities. In an
environment that remained sluggish throughout the year - low rates, reduced brokerage volumes -
Private Banking, Global Investment Management and Services maintained its revenues at the same
level as the previous year.

The Group's cost-cutting efforts resulted in a significant decline in operating expenses. These
were sharply lower, down -4.1%* vs. 2011 (and -2.2% excluding restructuring costs recorded in
2011).

The commercial cost of risk, measured in basis points( #ftn2 2) amounted to 75 basis points for
2012,
vs. 67 basis points in 2011, reflecting the deterioration in the macroeconomic environment in
Europe.


The 2012 results include EUR -2,594 million of non-economic items, the impact of the Group's
transformation (asset disposals and reduction in the loan portfolio at SG CIB), the restructuring
of Greek sovereign debt, and Corporate and Investment Banking's legacy asset portfolio( #ftn3 3).

When corrected for these items, Group net income totalled EUR 3,368 million in 2012.

Commenting on the Group's 2012 results, Frédéric Oudéa - Chairman and CEO - stated: 

"Societe Generale successfully continued with its transformation process in 2012, achieving all
the objectives set at the beginning of the year. At the same time as carrying out a proactive
portfolio disposal programme and business refocusing, the Group succeeded, in a turbulent economic
environment, in maintaining a good level of activity in order to serve its customers and finance
the economy. The bank also significantly improved its financial solidity both in terms of capital
and liquidity. On the strength of this momentum, the Group has secured its "Basel 3" Core Tier 1
capital target of 9%-9.5% at end-2013 and is approaching this year of economic and regulatory
transition with confidence. By initiating the second phase of its transformation plan, with an
objective of increasing commercial and operating efficiency, Societe Generale will reinforce the
medium-term growth and profitability potential of the Group and its businesses."

 1GROUP CONSOLIDATED RESULTS  


 In EUR m                         2011      2012        Change       Q4 11    Q4 12     Change    
                                                     2012 vs. 2011                     Q4 vs. Q4  
 Net banking income              25,636    23,110        -9.9%       6,010    5,130     -14.6%    
      On a like-for-like basis*                              -10.3%                        -14.5% 
 Operating expenses             (17,036)  (16,438)       -3.5%      (4,401)  (4,138)     -6.0%    
      On a like-for-like basis*                               -4.1%                         -6.5% 
 Gross operating income           8,600     6,672       -22.4%       1,609     992      -38.3%    
      On a like-for-like basis*                              -22.4%                        -36.6% 
 Net cost of risk                (4,330)   (3,935)       -9.1%      (1,075)  (1,314)    +22.2%    
 Operating income                 4,270     2,737       -35.9%        534     (322)       NM      
      On a like-for-like basis*                              -42.0%                            NM 
 Impairment losses on goodwill    (265)     (842)         NM          (65)    (392)       NM      
 Group net income                 2,385      774        -67.5%        100     (476)       NM      
                                                                                                  
                                  2011      2012                                                  
 Group ROTE (after tax)           7.5%      1.4%                                                  


Net banking income

The Group's net banking income totalled EUR 23,110 million in 2012, with EUR 5,130 million in Q4
12.

If non-economic or non-recurring items and legacy assets are stripped out, underlying revenues
amounted to EUR 24,963 million, stable (-0.3%) vs. the previous year. Underlying net banking
income was slightly lower (-1.0%) in Q4 12 than in Q4 11. 

* French Networks The posted revenues of EUR 8,161 million in 2012 (EUR 2,068 million in Q4 12).
They were stable excluding the PEL/CEL effect year-on-year and vs. Q4 11, in a sharply slowing
economic environment, underpinned by interest margins that held up well;
* International Retail Banking's At EUR 4,943 million in 2012, net banking income was stable
(-0.1%*) vs. 2011. However, it was lower quarter-on-quarter (-6.5%* in Q4 12 vs. Q4 11 at EUR
1,228 million). Lacklustre economic activity in Eastern Europe was offset by increased activity in
the Czech Republic, Russia, Mediterranean Basin and Sub-Saharan Africa;
*Corporate and Investment Banking's  core activities posted 2012 revenues in line (-2.0%*) with
the figures for 2011 at EUR 6,457 million (with EUR 1,465 million in Q4 12, +22.8%* vs. Q4 11).
They were driven by the recovery in 2012 of Fixed Income, Currencies & Commodities activities,
which partially offset loan portfolio disposal costs (EUR -489 million in 2012).

Corporate and Investment Banking's legacy assets made a negative contribution of 
EUR -268 million to the division's revenues in 2012 (with EUR -5 million in Q4 12) vs. 
EUR -476 million in 2011 (including EUR -524 million in Q4 11).

Corporate and Investment Banking's revenues totalled EUR 6,189 million in 2012, with      EUR
1,460 million in Q4 12.

*Specialised Financial Services and Insurance's  revenues totalled EUR 3,489 million in 2012
(+1.4%* vs. 2011), underpinned by growth in the Insurance activity (+12.5%* vs. 2011 at EUR 684
million). Specialised Financial Services generally maintained its revenues, at EUR 2,805 million
in 2012 (-1.0%*), despite considerable resource constraints. The division'sQ4 12 revenues totalled
EUR 894 million (up +5.1%* vs. Q4 11), with EUR 715 million for Specialised Financial Services
(+2.4%* vs. Q4 11) and EUR 179 million for the Insurance activity (+17.8%* vs. Q4 11).

*Private Banking,Global Investment Management and Services'  net banking income was-2.8%* lower
than in 2011 at EUR 2,160 million. Q4 12 revenues totalled EUR 553 million, up +9.0%* vs. Q4 11.
This performance was achieved in a generally unfavourable environment for the business due to
persistently low rates and reduced brokerage activity. 

The accounting impact on net banking income of the revaluation of the Group's own financial
liabilities was EUR -1,255 million in 2012 (with EUR -686 million in Q4 12), reflecting tightening
financing spreads in the banking sector during the year. In 2011, the revaluation of the Group's
own financial liabilities boosted book net banking income by EUR +1,177 million (with EUR + 700
million in Q4 11), due to the widening of these spreads. At the same time, the valuation of the
bank's loan portfolio hedges caused net banking income to fall by EUR -26 million in Q4 12, taking
the full-year impact of this valuation to EUR -56 million.

Operating expenses

At EUR -16,438 million in 2012, operating expenses were down -4.1%* (-2.2% when restated for total
restructuring provisions recorded at end-2011). Operating expenses amounted to EUR -4,138 million
in Q4 12, down -0.8% excluding restructuring costs vs. the same period in 2011.

There were significant efforts to control operating expenses in Corporate and Investment Banking 
(-8.7% vs. 2011)( #ftn4 1), Private Banking, Global Investment Management and Services (-3.4%(1)),
Specialised Financial Services and Insurance (-1.0%(1)) and the French Networks (-0.4%(1)).

When restated for legacy assets, non-economic and non-recurring items, the cost to income ratio
was -1.3 points lower than in 2011, at 65.6% for 2012. 

Operating income

The Group's gross operating income came to EUR 6,672 million for 2012. This was substantially
lower than in 2011 due to the accounting effect of the revaluation of the Group's own financial
liabilities (-22.4%*). Gross operating income totalled EUR 992 million for Q4 12 (vs. 
EUR +1,609 million in Q4 11). Gross operating income came to EUR 7,927 million, excluding the
effect of the revaluation of the Group's own financial liabilities, up 6.8% vs. 2011. In Q4 12,
gross operating income, corrected for the impact of the revaluation of the Group's own financial
liabilities, was 
EUR 1,678 million (vs. EUR 909 million in Q4 11). 

The Group's net cost of risk amounted to EUR -3,935 million for 2012, vs. EUR -4,330 million in
2011. 

The Group's commercial cost of risk (expressed as a fraction of outstanding loans) amounted to 75(
#ftn5 2) basis points in 2012 vs. 67(2) basis points in 2011.

*French Networks' The  cost of risk was higher at 50 basis points (41 basis points in 2011)
reflecting the deteriorating economic environment, notably for Corporates where the Group posted
an increase in provisions in respect of medium-sized companies in the industrial sector.
*International Retail Banking'sAt 183 basis points (vs. 177 basis points in 2011),  cost of risk
was slightly higher. However, the trend was mixed according to region, with a low point reached in
Russia in Q4 12 but a still high level in Romania, reflecting the deteriorated economic situation
in the country.  
*Corporate and Investment Banking'sThe cost of risk of  core activities was contained at 31 basis
points (vs. 11 basis points in 2011) and remained at a low level. Legacy assets' net cost  

of risk amounted to EUR -262 million in 2012 (considerably lower than the EUR -425 million in
2011). 

*Specialised Financial Services' cost of risk fell to 125 basis points (vs. 149 basis points in
2011), reflecting the notable improvement in Consumer Finance. 

The Group also booked a EUR -300 million provision for litigation issues in Q4 12.

The Group's NPL coverage ratio was 77% at end-2012 (76% at end-2011).

The decline in the net cost of risk (EUR -3,935 million in 2012 vs. EUR -4,330 million in 2011)
can be attributed principally to a base effect related to provisions booked in respect of Greek
sovereign risk in 2011.

The Group's operating income totalled EUR 2,737 million for 2012, substantially lower than in
2011, and EUR -322 million for Q4 12 (vs. EUR +534 million in Q4 11). The decline was primarily
due to the impact of the revaluation of the Group's own financial liabilities. 

Operating income came to EUR 3,992 million, excluding the effect of the revaluation of the Group's
own financial liabilities, vs. EUR 3,093 million in 2011, an increase of more than 29%. In Q4 12,
operating income, corrected for the impact of the revaluation of the Group's own financial
liabilities, was EUR 364 million (vs. EUR -166 million in Q4 11). 

Net income

After taking into account tax (the Group's effective tax rate was 15.0% in 2012 vs. 30.9% in 2011)
and non-controlling interests, Group net income totalled EUR 774 million for 2012 (EUR -476
million in 
Q4 12), vs. EUR 2,385 million in 2011 (and EUR 100 million in Q4 11). 

Book Group net income was EUR -476 million in Q4 (EUR 100 million in Q4 11), primarily due to the
effect of non-economic and non-recurring items at the end of the year.

When corrected for non-economic items( #ftn6 1) (EUR -859 million), non-recurring items 
(EUR -1,319 million( #ftn7 2)) and the impact on the accounts of Corporate and Investment
Banking's legacy asset portfolio (EUR -416 million), Group net income amounted to EUR 3,368
million in 2012, vs. 
EUR 3,515 million in 2011.

The Group's underlying ROE stood at 4.3% in Q4 12 and 7.3% for the year. The underlying ROTE came
to 8.9% for 2012( #ftn8 3). 

Earnings per share amounts to EUR 0.64 for 2012, after deducting interest payable to holders of
deeply subordinated notes and undated subordinated notes( #ftn9 4).

 1THE GROUP'S FINANCIAL STRUCTURE  


1THE GROUP'S FINANCIAL STRUCTURE

Group shareholders' equity totalled EUR 49.8 billion( #ftn10 1) at December 31st, 2012 and
tangible net asset value per share was EUR 48.59 (corresponding to net asset value per share of 
EUR 56.93, including EUR 0.89 of unrealised capital gains). The Group acquired 30.1 million
Societe Generale shares during 2012 and proceeded to dispose of 31.0 million shares under the
liquidity contract concluded on August 22nd, 2011. 

All in all, at end-December, 2012, Societe Generale possessed 26.3 million shares (including 9
million treasury shares), representing 3.37% of the capital (excluding shares held for trading
purposes). At this date, the Group also held 3.1 million purchase options on its own shares to
cover stock option plans allocated to its employees.

The Group's funded balance sheet( #ftn11 2), after the netting of insurance, derivative
outstandings, repurchase agreements and accruals, totalled EUR 652 billion at December 31st, 2012,
up 
EUR +52 billion vs. December 31st, 2011.

The balance sheet structure has been significantly strengthened since end-2011. In particular, the
Group has increased its surplus of stable sources over long-term uses of funds. Within stable
sources of funds, customer deposits rose by EUR 16 billion, an increase of +6% in 2012 or +8%
excluding Geniki and NSGB deposits. Medium/long-term financing rose by EUR 19 billion, due partly
to the issuance of EUR 27 billion of medium/long-term debt during the year. This amount was well
above the initial programme of EUR 10 billion to EUR 15 billion. Shareholders' equity (EUR 52
billion) was boosted by EUR +3 billion in 2012, or +5% vs. end-2011. At the same time, the Group's
deleveraging strategy led to customer loan outstandings falling by EUR 18 billion to EUR 369
billion. The Group's loan/deposit ratio(2) declined by -13 points in 2012.
The Group also increased its liquidity reserves in 2012, from EUR 84 billion at end-2011 to 
EUR 133 billion at end-2012. They covered 101% of the Group's short-term refinancing needs at
end-2012. The latter remained stable as a proportion of the funded balance sheet, at 20% of total
financed assets. In absolute terms, short-term sources of funds increased by EUR 16 billion in
2012 testifying to the abundant liquidity in the system and the confidence in the Societe Generale
name.

The Group's risk-weighted assets were lower than in 2011 at EUR 324.1 billion (EUR 349.3 billion
at end-2011, or -7% in 2012). 
Changes in risk-weighted assets reflect the transformation under way in the Group with, in
particular, a decline of -12% in the outstandings of Corporate and Investment Banking's core
activities and -52% in legacy assets. Specialised Financial Services' resource constraints
resulted in an overall decline of -4% in their risk-weighted assets in 2012, whereas the
outstandings of the French Networks grew +3% over the same period reflecting the Group's ongoing
financial support to the economy and its customers. International Retail Banking's risk-weighted
assets fell -3% in 2012, primarily on the back of Geniki's removal from the Group's structure.

The Group's Tier 1 ratio was 12.5% at December 31st, 2012 (10.7% at end-2011), while the Core 
Tier 1 ratio, which was 9.0% at December 31st, 2011 under "Basel 2.5" and calculated according to
European Banking Authority (EBA) rules, reached 10.7% at end-December 2012, representing an
increase of +165 basis points since the beginning of the year. The increase is due mainly to
income generation in 2012 (+67 basis points, net of the dividend provision), a decline in the
Group's risk-weighted assets, and actions undertaken to optimise the legacy asset portfolio and
dispose of loans in Corporate and Investment Banking's credit portfolio (+77 basis points). The
disposal of Geniki, finalised in December 2012, helped boost the Core Tier 1 ratio by +3 basis
points at December 31st, 2012.

The Group is rated A2 by Moody's, A by S&P and A+ by Fitch.

 1French networks  


 In EUR m                      2011     2012       Change       Q4 11    Q4 12      Change    
                                                2012 vs. 2011                     Q4 vs. Q4   
 Net banking income           8,165    8,161        0.0%        2,054    2,068      +0.7%     
                                                       0.0%(a)                        0.0%(a) 
 Operating expenses          (5,248)  (5,264)       +0.3%      (1,358)  (1,382)     +1.8%     
                                                      -0.4%(b)                       -0.8%(b) 
 Gross operating income       2,917    2,897        -0.7%        696      686       -1.4%     
                                                   +0.8%(a)(b)                    +1.6%(a)(b) 
 Net cost of risk             (745)    (931)       +25.0%       (237)    (300)      +26.6%    
 Operating income             2,172    1,966        -9.5%        459      386       -15.9%    
 Group net income             1,428    1,291        -9.6%        302      254       -15.9%    
 (a) Excluding PEL/CEL                                                                        
 (b) Excluding systemic tax                                                                   


In a deteriorated macroeconomic environment in France, the French Networks' commercial activity
was satisfactory in 2012 and once again demonstrated the solidity of their customer franchises.

During 2012, the number of individual customers for the three brands (Societe Generale, Crédit du
Nord and Boursorama) exceeded 11 million (+162,000 individual custmers in 2012).

Against a backdrop of continuing fierce competition for savings inflow, outstanding balance sheet
deposits rose +5.4% vs. 2011 to EUR 141.6 billion. By customer segment, deposit inflow was strong
for individual customers (+6.0%) and saw a gradual pick-up for business customers (+1.7%). By type
of savings vehicle, deposit growth was driven by the inflow on term deposits and deposit
certificates (+30.6%): these benefited from the success of the "CAT Tréso +" (Treasury + term
account) offering aimed at businesses. There was also a sharp increase in regulated savings. These
continued to be driven, firstly, by the growth in livret A (passbook savings account) outstandings
(+31.4%) which benefited from the raising of the ceiling in Q4 12 and secondly, by the success of
the "CSL +" (ordinary savings account) offering (CSL outstandings up +6.8%). 

This growth was accompanied by positive net life insurance inflow of EUR +165 million in 2012, in
a market that experienced a net outflow for the first time (EUR -3.4 billion vs. the same period
the previous year).

The French Networks remained fully committed to serving their customers and continued to actively
support the economy, assisting businesses and individuals with the financing of their projects, as
testified by the growth in outstanding loans (+3.2% vs. 2011) to EUR 176.1 billion.
Outstanding loans to business customers totalled EUR 79.5 billion (+3.4%). Outstanding operating
loans rose +9.0% to EUR 12.8 billion and investment loans +2.2% to EUR 64.1 billion. 
Outstanding loans to individuals rose +2.9% over the period, still driven by the growth in
outstanding housing loans (+3.5%). In line with the market, housing loan production was
nevertheless markedly lower than in 2011 on the back of weak demand. 

The average loan/deposit ratio stood at 124% in 2012 vs. 127% in 2011, an improvement of 3 points.
The average loan/deposit ratio for Q4 12 was 121%, down -2 points vs. the previous quarter.

The French Networks' revenues were resilient, with net banking income of EUR 8,161 million, stable
excluding the PEL/CEL effect vs. 2011. Net interest income was 1.0% higher (excluding the PEL/CEL
effect) than in 2011, with the increase in outstanding deposits offsetting the increasingly marked
decline in reinvestment rates during the year. The loan margin remained virtually stable. 

Commissions declined -1.2% vs. 2011 with mixed trends. Service commissions rose +2.1% vs. the same
period, driven by buoyant transaction levels with business customers (+8.1%), and partially offset
the decline in financial commissions (-12.4%) on the back of low financial transaction volumes
originating from individual customers.

When restated for the impact of the systemic tax (EUR -35.5 million), operating expenses were
-0.4% lower than in 2011, reflecting the effect of the cost-saving plans implemented. These
focused primarily on the control of IT expenses and the decline in the use of external service
providers.

The French Networks generated gross operating income of EUR 2,897 million, up +0.8% (excluding
PEL/CEL effect and restated for the impact of systemic taxes) vs. 2011.

Against the backdrop of a weak French economy, the French Networks' cost of risk amounted to 
50 basis points in 2012, up 9 basis points vs. 2011.

The French Networks' contribution to Group net income totalled EUR 1,291 million in 2012, down
-9.6% vs. 2011. 

The French Networks' Q4 net banking income totalled EUR 2,068 million, stable excluding the
PEL/CEL effect vs. Q4 11. Operating expenses came to EUR 1,382 million. When restated for the
impact of systemic taxes, they were down -0.8% vs. Q4 11. In a sluggish economic environment, the
cost of risk was significantly higher at 65 basis points in Q4 12. The French Networks'
contribution to Group net income totalled EUR 254 million, down -15.9% vs. Q4 11.

 1InternationaL RETAIL BANKING  


 In EUR m                         2011     2012       Change      Q4 11  Q4 12    Change    
                                                   2012 vs. 2011                 Q4 vs. Q4  
 Net banking income              5,017    4,943        -1.5%      1,339  1,228     -8.3%    
      On a like-for-like basis*                             -0.1%                     -6.5% 
 Operating expenses             (2,988)  (3,077)       +3.0%      (765)  (829)     +8.4%    
      On a like-for-like basis*                             +3.6%                     +9.4% 
 Gross operating income          2,029    1,866        -8.0%       574    399     -30.5%    
      On a like-for-like basis*                             -5.4%                    -27.0% 
 Net cost of risk               (1,284)  (1,348)       +5.0%      (379)  (336)    -11.3%    
 Operating income                 745      518        -30.5%       195     63     -67.7%    
      On a like-for-like basis*                            -39.1%                    -70.7% 
 Impairment losses on goodwill     0      (250)         NM          0      0        NM      
 Group net income                 325      (51)         NM          75     23     -69.3%    


Within International Retail Banking, 2012 was marked by three major events. In response to a very
deteriorated environment in Greece and after supporting its subsidiary for several years, the
Group endeavoured to find an alternative, successful strategy for the future of its subsidiary,
against the backdrop of consolidation in the Greek banking sector. Accordingly, the Group sold the
entire shareholding (99.08%) in its subsidiary Geniki to Piraeus Bank in December 2012. The
pre-tax result of this deal, which was concluded on December 14th, 2012, was recorded in the
Corporate Centre, under "net gains/losses on other assets" for a total of EUR -375 million.
Geniki's operating results continued to be included in those of International Retail Banking until
end-November 2012 (i.e. a contribution to the Group net income of International Retail Banking of
EUR -164 million in 2012). 

Moreover, in August 2012, the Group received an expression of interest from Qatar National Bank
(QNB) regarding the acquisition of the majority shareholding (77.17%) in its Egyptian subsidiary,
National Société Générale Bank (NSGB). The Group accepted QNB's offer, which values NSGB's total
capital at twice the value of its book equity as at September 30th, 2012. 

Finally, the Group also proceeded with the rationalisation of its Russian activities, and disposed
of its Byelorussian subsidiary and its debt recovery activity. 

However, these decisions do not reflect a shift in the Group's international development strategy.
International Retail Banking continues to focus its activity on the following strategic areas: the
creation of a leading player in Russia and targeted expansion in high-potential countries in terms
of growth or the use of banking services.

The commercial performance remained positive in an environment marked by the economic slowdown in
Europe. At end-2012, excluding Greece and Egypt, International Retail Banking's outstanding loans
totalled EUR 62.8 billion, up +3.2%* year-on-year, driven by the strong growth for individual
customers (up 8.7%*). Over the same period, deposits were +2.1%* higher at EUR 61.9 billion,
thanks to the robust inflow in Central and Eastern European countries (+7.5%*). Overall, the
loan/deposit ratio remained close to equilibrium level (101% at end-December 2012). 

International Retail Banking revenues totalled EUR +4,943 million in 2012, stable* vs.
end-December 2011 and marked by fairly distinct trends according to region: revenues were higher
in Russia, the Czech Republic, Mediterranean Basin and Sub-Saharan Africa, whereas Romania and the
other Central and Eastern European countries experienced a decline in revenues, hampered primarily
by the economic slowdown. 

At EUR 3, 077 million in 2012, operating expenses were up +2.6%* excluding systemic tax
(EUR -30.3 million recorded in Q4 12). This moderate increase, compared with the level of
inflation, reflects expenses under control in the Central and Eastern European subsidiaries
(decline notably in Russia and Romania) and organic growth focused on the most dynamic regions. 

The division posted gross operating income of EUR 1,866 million in 2012. The cost to income ratio
was 62.2%. 

International Retail Banking's net cost of risk amounted to EUR 1,348 million in 2012 (up
+46.0%*). This was due in particular to the substantial increase recorded in Romania mainly as a
result of a very deteriorated macroeconomic environment. 

International Retail Banking's contribution to Group net income totalled EUR -51 million in 2012,
or EUR +363 million when restated for the contribution of Greece and the goodwill write-down in
respect of Russia recorded in Q2 12 (EUR -250 million). 

International Retail Banking's net banking income amounted to EUR 1,228 million in Q4 12 (down
-6.5%*), marked primarily by the economic slowdown in Europe. Over the same period, operating
expenses rose +5.3%* excluding systemic tax, reflecting mixed trends: good control of operating
expenses in Russia, Romania and the Czech Republic but an increase in expenses to support
expansion of the network in Sub-Saharan Africa and the Mediterranean Basin. The contribution to
Group net income came to EUR 23 million. 

In Russia, the transformation of the Rosbank subsidiary was stepped up in 2012. Measures to
improve operating efficiency continued throughout the year: the headcount was reduced by more than
10%, the network's structure was streamlined (rationalisation of office space) and a number of
non-strategic activities (Byelorussia, debt recovery entity) for the Group were sold. Against this
backdrop, and despite a high inflation level of around 5%, proactive cost management helped reduce
operating expenses by -1.5%* over the year. Lastly, the commercial strategy focused on boosting
rouble-denominated loans (+27.4%*) resulted in revenue growth for the year of +1.5%*, still
underpinned by robust lending to individuals. If the EUR -250 million goodwill write-down is
stripped out, Rosbank's contribution to Group net income was slightly negative in 2012, with a
positive contribution of EUR 39 million in H2 2012 to the division's results. 

In the Czech Republic, Komercní Banka enjoyed strong commercial activity in 2012, both for loans
(+4.8%*) and deposits (+3.9%*). This resulted in revenue growth of +1.5%* vs. 2011, while
operating expenses remained stable* over the same period.
The contribution to Group net income came to EUR 265 million in 2012 (and EUR 58 million in Q4
12), providing further evidence of the subsidiary's profit-generating capacity despite the
economic slowdown. 

In Romania (BRD), in response to a durably deteriorated environment, the Group maintained a
selective loan approval policy (virtually stable* outstandings in 2012), while at the same time
strengthening its deposit base (+5.1%*). The decline in the rates charged on loans combined with
an increase in the funding cost adversely affected BRD's margins and led to a drop in 2012
revenues 
(-5.9%*). Against this backdrop, the Group continued to rigorously control costs (decline of
-2.2%* in 2012 thanks partly to the reduction in the headcount). The marked deterioration in the
economic situation resulted, in particular, in a sharp increase in the net cost of risk to EUR
-437 million in 2012. This caused BRD to make a negative contribution of EUR -84 million. 

In other Central and Eastern European countries,excluding Greece, the strong deposit inflow
continued throughout the year (+7.5%* vs. 2011) and loan activity remained dynamic (+2.5%*).
In particular, there was a sharp increase in outstandings in Serbia (+17.6%*) and Bulgaria
(+9.4%*). Revenues were down -2.6%* vs. 2011, adversely affected by margins under pressure. 

In the Mediterranean Basin, the Group bolstered its network with 17 new branches in 2012. It
posted growth in outstanding loans excluding Egypt of +2.2%*, driven by individual customers
(+10.7%*). Over the same period, outstanding deposits rose +2.9%*. Up +11.7%* in 2012, revenues
grew in all the division's entities, where Morocco and Tunisia benefited from a positive volume
effect and Algeria from strong activity related to foreign trade. Operating expenses rose +18.4%*
in line with the network's expansion. The contribution to Group net income came to EUR 186 million
in 2012. It is worth noting that the earnings of NSGB (Egypt) will continue to be included in
those of International Retail Banking until the actual disposal of the entity (which is expected
to be finalised at the end of 
Q1 13), whereas the associated assets and liabilities are isolated on specific lines of the
consolidated balance sheet at December 31st, 2012, in accordance with current accounting
standards.

In Sub-Saharan Africa, the franchise continued to enjoy strong growth, with 21 additional branches
(+8.3%). Outstanding loans rose +4.5%* in 2012, with particularly robust growth for individual
customers (+22.5%*), while deposits rose +6.6%*. In line with this momentum, revenues were up
+11.3%* vs. 2011, while the increase in operating expenses (+9.2%* over the same period) reflects
the expansion of the network. The contribution to Group net income came to EUR 37 million in
2012.

 1CORPORATE AND INVESTMENT BANKING  


 In EUR m                     2011     2012       Change       Q4 11   Q4 12    Change    
                                               2012 vs. 2011                   Q4 vs. Q4  
 Net banking income          5,980    6,189        +3.5%        655    1,460     x2.2     
  On a like-for-like basis*                             +1.1%                       x 2,2 
 Financing and Advisory      2,315    1,582       -31.7%        403     436      +8.2%    
  On a like-for-like basis*                            -31.5%                       +6.3% 
 Global Markets (1)          4,141    4,875       +17.7%        776    1,029    +32.6%    
  On a like-for-like basis*                            +14.0%                      +31.4% 
 Legacy assets               (476)    (268)       +43.7%       (524)    (5)     +99.0%    
 Operating expenses         (4,748)  (4,189)      -11.8%      (1,299)  (957)    -26.3%    
  On a like-for-like basis*                            -13.1%                      -27.7% 
 Gross operating income      1,232    2,000       +62.3%       (644)    503       NM      
  On a like-for-like basis*                            +54.1%                          NM 
 Net cost of risk            (563)    (630)       +11.9%        (94)   (196)     x2.1     
 O.w. Legacy assets          (425)    (262)       -38.4%        (81)    (95)    +17.3%    
 Operating income             669     1,370        x2.0        (738)    307       NM      
  On a like-for-like basis*                            +86.6%                          NM 
 Group net income             635     1,053       +65.8%       (482)    249       NM      
                                                                                          
 (1) O.w. "Equities" EUR 2,085m in 2012 (EUR 2,379m in 2011) and "Fixed income, Currencies and Commodities" EUR 2,790m in 2012 (EUR 1,762m in 2011) 


After the serious euro zone crisis in H2 2011, economic conditions remained challenging in 2012:
the markets experienced successive periods where investors adopted a "wait-and-see attitude"
followed by a renewed risk appetite. Against this backdrop, Corporate and Investment Banking
continued with its transformation towards a client-focused business model, with a risk profile
under control and limited consumption of scarce resources, while at the same time producing solid
results. 

The revenues of core activities were up +4.9% year-on-year at EUR 6,946 million (excluding the net
discount on loans sold which amounted to EUR -489 million).

Global Markets revenues jumped +17.7% vs. 2011 to EUR 4,875 million. At the same time, market risk
exposure remained at a low level (the average VaR in 2012 was lower than in 2011 at 
EUR 31 million vs. EUR 38 million in 2011).

Equity activities posted revenues down -12.4% vs. 2011 at EUR 2,085 million in a market
characterised by low volumes throughout the year, particularly in Europe. Given the market
conditions, the Equity business line's performance demonstrates the competitiveness and solidity
of its franchise both for flow products and structured products. In 2012, SG CIB was voted "Most
Innovative Investment Bank for Equity Derivatives" (The Banker, October 2012). It was also named
"Equity Derivatives House of the Year" (Risk awards 2013 and IFR awards 2012). The bank has
retained leading positions in the warrants (global No. 1 with a 12.6% market share in 2012) and
ETF markets (European No. 3). Lyxor's expertise, especially in alternative investment and index
management, was once again recognised since its managed account platform received awards on
several occasions in 2012, notably for "Best Managed Account Platform" (Hedgeweek, June 2012 and
Hedge Funds Review, October 2012). Lyxor's assets under management increased in 2012, from
EUR 73.6 billion to EUR 75.4 billion.

Fixed Income, Currencies & Commodities posted sharply higher revenues (up +58% vs. 2011 at EUR
2,790 million), benefiting from a more favourable market environment and its dynamic franchise.
Accordingly, credit, rates and structured product activities posted higher revenues than in 2011.
In 2012, SG CIB distinguished itself by being ranked 2nd most active Primary Dealer in French
government securities (Agence France Trésor, January 2013). SG CIB was also ranked No. 1 in the
"Euromoney Fixed Income Investors Survey" in the categories "Overall Trade Ideas" and "Overall
Credit Strategy".

Financing & Advisory posted revenues of EUR 1,582 million, marked by the negative impact of the
loan disposal programme (EUR 10 billion of loans sold in 2012, for a net discount of EUR -489
million, after EUR 6 billion of loans sold in 2011 for a net discount of EUR -163 million).
Excluding the net discount on loans sold, revenues totalled EUR 2,071 million, representing a
decline over the year of
-16.4%, in the wake notably of business refocusing. Structured financing activities were resilient
in 2012 thanks to natural resources, export and infrastructure financing. Capital market
activities posted mixed results, with a good performance for bond issuance whereas equity issuance
was hit by low volumes. SG CIB participated in a number of emblematic transactions in 2012, such
as the project bond issue for Dolphin Energy, the financing of the spin-off of SNAM (Società
Nazionale Metanodotti) from ENI (Ente Nazionale Idrocarburi) or the financing of a refinery in
Cairo for the Egyptian Refining Company. As in 2011, SG CIB was named "Best Export Finance
Arranger" and "Best Commodity Finance Bank" by Trade Finance Magazine in June 2012. Finally, SG
CIB has retained its position in the debt and equity markets: No. 5 in Euro bond issuance, No. 2
in Euro corporate bond issuance and No. 2 in equity and equity linked issuance in France (Thomson
Reuters - IFR). 

Lastly, the Group continued with its policy of legacy asset sales in 2012, with a reduction in
nominal of EUR -10.5 billion over the year (EUR -8.2 billion of disposals and EUR -2.4 billion of
amortisation). Legacy assets' net banking income came to EUR -268 million (vs. EUR -476 million in
2011).

Operating expenses were significantly lower in 2012, providing further evidence of the effect of
the restructuring and cost adjustment plans introduced at end-2011. When restated for the
restructuring charge recorded in Q4 11 (EUR -215 million) and the French systemic tax allocation
booked in 
Q4 12 (EUR -50 million), operating expenses were down -8.7%. Core activities' cost to income ratio
stood at 59.2% in 2012, excluding the net discount on loans sold.

The cost of risk of Corporate and Investment Banking's core activities remained low in 2012 
(31 basis points vs. 11 basis points in 2011) demonstrating the quality of its portfolio. Legacy
assets' net cost of risk was down over the period at EUR -262 million in 2012 (EUR -425 million in
2011).

In 2012, Corporate and Investment Banking's core activities, excluding the net discount on loans
sold, made a contribution to Group net income of EUR 355 million in Q4 and EUR 1,807 million for
the year (vs. respectively EUR 62 million and EUR 1,422 million in 2011).

The division's Q4 revenues amounted to EUR 1,460 million. Operating expenses came to EUR 957
million. The contribution to Group net income totalled EUR 249 million in Q4 12 (vs. EUR -482
million in Q4 11).

The division's total contribution to Group net income amounted to EUR 1,053 million for the year
(EUR 635 million in 2011).

 1SPECIALISED FINANCIAL SERVICES AND INSURANCE  


 In EUR m                     2011     2012       Change      Q4 11  Q4 12    Change    
                                               2012 vs. 2011                 Q4 vs. Q4  
 Net banking income          3,443    3,489        +1.3%       849    894      +5.3%    
  On a like-for-like basis*                             +1.4%                     +5.1% 
 Operating expenses         (1,846)  (1,844)       -0.1%      (470)  (488)     +3.8%    
  On a like-for-like basis*                             +0.3%                     +4.8% 
 Gross operating income      1,597    1,645        +3.0%       379    406      +7.1%    
  On a like-for-like basis*                             +2.6%                     +5.5% 
 Net cost of risk            (829)    (687)       -17.1%      (213)  (175)    -17.8%    
 Operating income             768      958        +24.7%       166    231     +39.2%    
  On a like-for-like basis*                            +23.8%                    +36.9% 
 Group net income             297      674         x2.3         73    165      x2.3     


N.B.: 2011 Group net income includes a EUR -250m goodwill write-down

The Specialised Financial Services and Insurance division comprises: 

1Specialised Financial Services  (operational vehicle leasing and fleet management, equipment
finance, consumer finance),
2Insurance  (Life, Personal Protection, Property and Casualty).

In a constrained environment, SpecialisedFinancial Services and Insurance posted solid results in
2012, with EUR 674 million vs. EUR 547(2) million in 2011, while at the same time optimising its
business model. These significantly higher results were achieved against the backdrop of a decline
in the division's risk-weighted assets (-3.9%* vs. end-2011).

The division successfully carried out various external refinancing operations throughout the year,
(securitisation of car loans in France and Germany, launch of a deposit collection activity in
Germany). As a result, a total of EUR 4.2 billion was raised in 2012.

Operational vehicle leasing and fleet management continued with the monitored growth of its fleet
in 2012, which amounted to more than 955,000 vehicles at end-December (+4.2%( #ftn12 1) vs.
end-December 2011). ALD Automotive consolidated its position as the European leader, notably via
the development of partnership agreements with car manufacturers or banking networks. 

Against a backdrop of selective development, new Equipment Finance business amounted to 
EUR 7.0 billion (excluding factoring) in 2012, down -11.1%* vs. 2011. New business margins
remained at a high level. At end-December 2012, outstanding loans totalled EUR 17.8 billion
(excluding factoring), down -5.2%* vs. end-December 2011. The business line strengthened its
position in its key markets and obtained the recognition of its peers ("European Lessor of the
Year" and "SME Champion of the Year", Leasing Life Awards), while at the same time adapting its
operating model, in particular by increasing its external financing. 

In a fragile economic environment, new Consumer Finance business amounted to EUR 10.1 billion in
2012, down -3.7%* vs. 2011. Outstandings totalled EUR 21.9 billion, a decline of -2.7%*
year-on-year. The business line continued with its refocusing and the optimisation of its
international network through the disposal of its activities in Bulgaria, Ukraine and India. This
refocusing, combined with enhanced cost and risk control, enabled the business line to generate a
profit in 2012. 

Specialised Financial Services' net banking income was slightly lower in 2012 (-1.0%* at 
EUR 2,805 million). At EUR 1,585 million in 2012, operating expenses improved by -1.0%* vs. 2011.
The net cost of risk fell substantially in 2012 to EUR -687 million (125 basis points) vs. 
EUR -829 million (149 basis points). Operating income came to EUR 533 million, up +32.3%* vs.
2011. 

Specialised Financial Services' revenues amounted to EUR 715 million in Q4 12, up +2.4%* vs. 
Q4 11, whereas operating expenses totalled EUR -420 million, up +4.3%*. Q4 operating income rose
+50.5%* to EUR 120 million, with a cost of risk down -19.2%*.

Insurance activity posted good performances in 2012 despite a deteriorated environment. Net life
insurance inflow was EUR 70 million and outstandings amounted to EUR 79.6 billion at 
end-December 2012 (+4.2%* vs. end-December 2011). Personal Protection and Property/Casualty
insurance remained dynamic inside and outside France, with continued growth in the insurance
product penetration rate with retail banking customers and the launch of new activities
(additional health insurance in France, car insurance in Russia). The premiums on these activities
grew by respectively +23.0%* and +9.3%* vs. 2011 (+22.6%* and +8.2%* respectively vs. Q4 11).
Insurance revenues totalled EUR 684 million in 2012, up +12.5%* vs. 2011. They amounted to 
EUR 179 million in Q4 12, up +17.8%* vs. Q4 11.

 1PRIVate banking, GLOBAL INVESTMENT MANAGEMENT AND SERVICES  


 In EUR m                         2011     2012       Change      Q4 11  Q4 12    Change    
                                                   2012 vs. 2011                 Q4 vs. Q4  
 Net banking income              2,169    2,160        -0.4%       500    553     +10.6%    
      On a like-for-like basis*                             -2.8%                     +9.0% 
 Operating expenses             (1,967)  (1,905)       -3.2%      (498)  (486)     -2.4%    
      On a like-for-like basis*                             -5.6%                     -3.8% 
 Operating income                 189      245        +29.6%        13     66      x5.1     
      On a like-for-like basis*                            +27.7%                     x 4,4 
 Impairment losses on goodwill    (65)    (580)         NM         (65)  (380)      NM      
 Group net income                 171     (293)         NM         (45)  (308)      NM      
 o.w. Private Banking                115       93          -19.1%     13     27        x2.1 
 o.w. Asset Management                99     (58)              NM     18     34      +88.9% 
 o.w. SG SS & Brokers               (43)    (328)              NM   (76)  (369)          NM 


Private Banking, Global Investment Management and Services consists of four activities:
 (i)   Private Banking (Societe Generale Private Banking) 
 (ii)  Asset Management (Amundi and TCW) 
 (iii)  Societe Generale Securities Services (SGSS)
         (iv)  Brokers (Newedge). 

In 2012, Private Banking, Global Investment Management and Services strengthened its commercial
positions and saw its contribution to Group net income increase significantly by +21.6% vs. 2011
(excluding the goodwill write-down on TCW and Newedge) to EUR 287 million. 

The macroeconomic environment remained durably marked by weak markets and low interest rates as
well as the cautious stance of both private and institutional investors. At EUR 2,160 million,
revenues experienced a limited decline of -2.8%* year-on-year (stable in absolute terms). As for
operating expenses, at EUR 1,905 million, they continued to benefit from operating efficiency
efforts and fell -5.6%*. As a result, gross operating income was 24.5%* higher than in 2011 at 
EUR 255 million in 2012.

In Q4 12, the division posted revenues up +9.0%* vs. Q4 11 at EUR 553 million, whereas operating
expenses were down -3.8%* at EUR 486 million. As a result, gross operating income rebounded from
EUR 2 million in Q4 11 to EUR 67 million in Q4 12. If goodwill write-down is stripped out, the
division's contribution to Group net income amounted to EUR 72 million vs. EUR 20 million in Q4
11.

Private Banking

In 2012, Private Banking consolidated its franchise despite market uncertainty and the cautious
stance of investors. Assets under management totalled EUR 86.1 billion at end-December 2012, up
+1.5% year-on-year. This includes an inflow of EUR +1.0 billion, a "market" effect of EUR +2.6
billion, a "currency" impact of EUR -0.4 billion and a "structure" effect of EUR -2.0 billion.
Against a backdrop of deleveraging, partially offset by margins holding up well, the business
line's revenues fell -2.4%* vs. 2011 to EUR 757 million. Operating expenses declined by -1.3%* to
EUR 624 million on the back of cost-saving measures.
Gross operating income totalled EUR 133 million in 2012 (vs. EUR 143 million in 2011). The
business line's contribution to Group net income amounted to EUR 93 million vs. EUR 115 million in
2011.
Q4 revenues came to EUR 202 million, up +26.7%* vs. Q4 11. At EUR 162 million, operating expenses
were 6.7%* higher due to transformation costs and the reallocation of the systemic tax to the
businesses. Gross operating income amounted to EUR 40 million and the contribution to Group net
income was EUR 27 million.

The magazine Euromoney awarded Societe Generale the titles, for 2012, of "Best Private Bank" in
France (for the second time in three years), "Best Private Bank in Monaco", as well as "Best
Private Bank in Western Europe for its offer in structured products" for the ninth year running.
These awards supplement those obtained as "Best Private Bank in Luxembourg" and in the "Middle
East" (respectively by PWM/The Banker and by The Banker Middle East, for 2012).

Asset Management

TCW posted a significant inflow of EUR 3.5 billion in 2012, up +52.2% vs. 2011. After taking into
account a "market" effect of EUR +9.4 billion, a "currency" impact of EUR -0.1 billion and a
"structure" effect of EUR +2.7 billion, assets under management totalled EUR 106.6 billion at
end-December 2012 (vs. EUR 91 billion at end-December 2011).

Revenues and operating expenses fell in 2012 by respectively -8.6%* to EUR 338 million and by
-21.0%* to EUR 289 million due to a change in accounting method with no effect on operating
income. Operating expenses were also impacted by the settlement of a commercial litigation issue
in 2011. 
Gross operating income was sharply higher at EUR 49 million in 2012 vs. EUR 2 million in 2011. 

Amundi's contribution was EUR 115 million in 2012, vs. EUR 98 million in 2011. 

Q4 revenues came to EUR 88 million, down -16.2%* vs. Q4 11. Operating expenses fell -27.5%* to EUR
74 million. As a result, gross operating income totalled EUR 14 million (EUR 3 million in Q4 11).
The contribution to Group net income was EUR 34 million (vs. EUR 18 million in Q4 11), including a
Q4 contribution from Amundi of EUR 28 million based on the equity method.

Societe Generale Securities Services (SGSS) and Brokers (Newedge)

In 2012, Securities Services demonstrated a healthy commercial momentum with the signing, at the
end of the year, of new mandates with Swiss Life AM, Allianz GIF and Aberdeen AM. Assets under
custody and assets under administration rose by respectively +3.6% to EUR 3,449 billion and +10.4%
to EUR 456 billion. 
Despite overall market volume declining, Newedge increased its market share to 11.8% in 2012
(vs. 11.5% at end-2011). 

Securities Services and Brokers posted slightly lower revenues in 2012 (-1.1%* at EUR 1,065
million). These businesses saw their operating expenses decline by a further -2.7%* in 2012 vs.
2011 to 
EUR 992 million, due to ongoing operating efficiency measures. Gross operating income was higher
at EUR 73 million (vs. EUR 57 million in 2011) and the business line's contribution to Group net
income rose to EUR 52 million (excluding goodwill write-down) vs. EUR 22 million in 2011.

Q4 revenues came to EUR 263 million, up +8.3%*. At EUR 250 million, operating expenses were close
to their level in Q4 11. Gross operating income totalled EUR 13 million and the contribution to
Group net income was EUR 11 million (excluding goodwill write-down).

 1 CORPORATE CENTRE  


The Corporate Centre's revenues totalled EUR -1,832 million in 2012 (vs. EUR 862 million in 2011).
Revenues amounted to EUR -1,073 million in Q4 12 vs. EUR 613 million in Q4 11. They include, in
particular:

*the revaluation of the Group's own financial liabilities, amounting to EUR -1,255 million,
including EUR -686 million in Q4 12 (vs. a total impact of EUR +1,177 million in 2011, including
EUR +700 million in Q4);  
*the revaluation of credit derivative instruments used to hedge corporate loan portfolios,
amounting to EUR -56 million in 2012 (EUR +66 million in 2011), including EUR -26 million in Q4 12
(EUR +28 million in Q4 11); 

In Q4 12, the total amount for 2012 of the so-called "systemic" French banking tax was allocated
to the businesses. This restatement had a positive impact on the Corporate Centre's operating
expenses of EUR +103 million in Q4. Operating expenses totalled EUR -159 million in 2012, vs. EUR
-239 million in 2011, virtually stable when restated for the French systemic tax recorded in the
Corporate Centre in 2011 amounting to EUR -67 million.

The 2012 net cost of risk includes a EUR -300 million provision for litigation issues and an
additional expense in respect of Greek sovereign risk (EUR -22 million vs. EUR -890 million in
2011).

Lastly, the Corporate Centre incurred EUR -509 million of net gains or losses on other assets,
including EUR -375 million for Geniki and EUR -86 million for TCW.

 1CONCLUSION  


The Group's transformation is reflected in substantial structural changes (review of the Group's
financing model, refocusing of businesses, asset disposals), as well as measures to control costs
and rigorously manage scarce resources and risks. These initiatives enable Societe Generale to
continue to develop its business as a universal bank, committed to its customers and capitalising
on its leadership positions.

With underlying Group net income of EUR 3.4 billion and an increase in the Core Tier 1 ratio
(calculated according to "Basel 2.5" rules) of +165 basis points in one year, to 10.7%, Societe
Generale has once again significantly strengthened the structure of its balance sheet. 

The Group is confident of its ability to meet future regulatory liquidity requirements and its
target of a Core Tier 1 capital ratio, calculated according to "Basel 3" rules, of 9%-9.5% at 
end-2013.

2013 will see Societe Generale embark on the second stage of the Ambition SG 2015 Plan. This
second stage consists in a project to simplify and refocus the organisational structure around the
core businesses in order to increase revenue and cost synergies. 

This organisational structure would be based on three divisions:

*The French Networks 
*A second division combining International Retail Banking and Specialised Financial Services and
Insurance 
*A third encompassing Corporate and Investment Banking and Private Banking, Global Investment
Management and Services. 

The details of this new organisational structure will be defined in the near future and will
include the simplification of central functions in order to increase the Group's operating
efficiency.


2013 financial communication calendar

 

May 7th, 2013        Publication of first quarter 2013 results
May 22nd, 2013   Annual General Meeting
August 1st, 2013   Publication of second quarter 2013 results
November 7th, 2013   Publication of third quarter 2013 results

 This document may contain a number of forecasts and comments relating to the targets and strategies of the Societe Generale Group. These forecasts are based on a series of assumptions, both general and specific (notably - unless specified otherwise - the application of accounting principles and methods in accordance with IFRS as adopted in the European Union as well as the application of existing prudential regulations).  
 This information was developed from scenarios based on a number of economic assumptions for a given competitive and regulatory environment. The Group may be unable to:                                                                                                                                                                                                                                                                   
 - anticipate all the risks, uncertainties or other factors likely to affect its business and to appraise their potential impact on its operations;                                                                                                                                                                                                                                                                                        
 - precisely evaluate the extent to which the occurrence of a risk or combination of risks could cause actual results to differ materially from those contemplated in this press release.                                                                                                                                                                                                                                                  
 There is a risk that these projections will not be met. Investors are advised to take into account factors of uncertainty and risk likely to impact the operations of the Group when basing their investment decisions on information provided in this document.                                                                                                                                                                          
 Unless otherwise specified, the sources for the rankings are internal.                                                                                                                                                                                                                                                                                                                                                                    


 APPENDIX 1: STATISTICAL DATA  


 CONSOLIDATED INCOME STATEMENT                                                                                                                                                
 (in EUR millions)                                                                                                                                                            
                                                                                 2011              2012                  Change             Q4 11    Q4 12        Change      
                                                                                                                      2012 vs. 2011                             Q4 vs. Q4     
 Net banking income                                                             25,636            23,110             -9.9%        -10.3%*   6,010    5,130   -14.6%  -14.5%*  
 Operating expenses                                                            (17,036)          (16,438)            -3.5%        -4.1%*   (4,401)  (4,138)   -6.0%   -6.5%*  
 Gross operating income                                                          8,600             6,672            -22.4%        -22.4%*   1,609     992    -38.3%  -36.6%*  
 Net cost of risk                                                               (4,330)           (3,935)            -9.1%        +5.6%*   (1,075)  (1,314)  +22.2%  +44.0%*  
 Operating income                                                                4,270             2,737            -35.9%        -42.0%*    534     (322)     NM      NM*    
 Net profits or losses from other assets                                          12               (507)              NM                     (72)     (16)   +77.8%           
 Net income from companies accounted for by the equity method                     94                154             +63.8%                   (16)      50      NM             
 Impairment losses on goodwill                                                   (265)             (842)              NM                     (65)    (392)     NM             
 Income tax                                                                     (1,323)            (334)            -74.8%                  (181)     284      NM             
 Net income                                                                      2,788             1,208            -56.7%                   200     (396)     NM             
 O.w. non controlling interests                                                   403               434              +7.7%                   100       80    -20.0%           
 Group net income                                                                2,385              774             -67.5%        -68.8%*    100     (476)     NM      NM*    
 Group ROTE (after tax)                                                          7.5%              1.4%                                                                       
 Tier 1 ratio at end of period                                                   10.7%             12.5%                                    10.7%    12.5%                    
 * When adjusted for changes in Group structure and at constant exchange rates                                                                                                


 NET INCOME AFTER TAX BY CORE BUSINESS                                                                                               
 (in EUR millions)                                                                                                                   
                                                                  2011           2012          Change      Q4 11  Q4 12    Change    
                                                                                            2012 vs. 2011                 Q4 vs. Q4  
                                                                                                                                     
 French Networks                                                 1,428          1,291           -9.6%       302    254     -15.9%    
 International Retail Banking                                     325            (51)            NM          75     23     -69.3%    
 Corporate & Investment Banking                                   635           1,053          +65.8%      (482)   249       NM      
 Specialised Financial Services & Insurance                       297            674            x2.3         73    165      x2.3     
 Private Banking, Global Investment Management and Services       171           (293)            NM         (45)  (308)      NM      
 o.w. Private Banking                                             115             93           -19.1%        13     27      x2.1     
 o.w. Asset Management                                             99            (58)            NM          18     34     +88.9%    
 o.w. SG SS & Brokers                                             (43)          (328)            NM         (76)  (369)      NM      
 CORE BUSINESSES                                                 2,856          2,674           -6.4%       (77)   383       NM      
 Corporate Centre                                                (471)         (1,900)           NM         177   (859)      NM      
 GROUP                                                           2,385           774           -67.5%       100   (476)      NM      


CONSOLIDated balance sheet

 Assets (in billions of euros)                                             December 31, 2012  December 31, 2011  % change 
 Cash, due from central banks                                                           67.6               44.0      +54% 
 Financial assets measured at fair value through profit and loss                       484.0              422.5      +15% 
 Hedging derivatives                                                                    15.9               12.6      +26% 
 Available-for-sale financial assets                                                   127.7              124.7       +2% 
 Due from banks                                                                         77.2               86.5      -11% 
 Customer loans                                                                        350.2              367.5       -5% 
 Lease financing and similar agreements                                                 28.7               29.3       -2% 
 Revaluation differences on portfolios hedged against interest rate risk                 4.4                3.4      +29% 
 Held-to-maturity financial assets                                                       1.2                1.5      -20% 
 Tax assets and other assets                                                            59.7               61.0       -2% 
 Non-current assets held for sale                                                        9.4                0.4    x 23,5 
 Deferred profit-sharing                                                                 0.0                2.2     -100% 
 Tangible, intangible fixed assets and other                                            24.7               25.8       -4% 
 Total                                                                               1,250.7            1,181.4       +6% 


 Liabilities (in billions of euros)                                        December 31, 2012  December 31, 2011  % change 
 Due to central banks                                                                    2.4                1.0     x 2.4 
 Financial liabilities measured at fair value through profit and loss                  411.4              395.2       +4% 
 Hedging derivatives                                                                    14.0               12.9       +9% 
 Due to banks                                                                          122.0              111.3      +10% 
 Customer deposits                                                                     337.2              340.2       -1% 
 Securitised debt payables                                                             135.7              108.6      +25% 
 Revaluation differences on portfolios hedged against interest rate risk                 6.5                4.1      +59% 
 Tax liabilities and other liabilities                                                  59.4               60.7       -2% 
 Non-current liabilities held for sale                                                   7.3                0.3    x 24.3 
 Underwriting reserves of insurance companies                                           90.8               83.0       +9% 
 Provisions                                                                              2.8                2.5      +12% 
 Subordinated debt                                                                       7.1               10.5      -32% 
 Shareholders' equity                                                                   49.8               47.1       +6% 
 Non controlling Interests                                                               4.3                4.0       +8% 
 Total                                                                               1,250.7            1,181.4       +6% 


 APPENDIX 2: méthodologY  


1- The Group's consolidated results as at December 31st, 2012 were examined by the Board of
Directors on February 12th, 2013. 

The financial information presented for the financial year ended December 31st, 2012 has been
prepared in accordance with IFRS as adopted in the European Union and applicable at that date. The
audit procedures carried out on the consolidated financial statements by the Statutory Auditors
are currently in progress. 

2- Group ROE is calculated on the basis of average Group shareholders' equity under IFRS excluding

(i) unrealised or deferred capital gains or losses booked directly under shareholders' equity
excluding conversion reserves, (ii) deeply subordinated notes, (iii) undated subordinated notes
recognised as shareholders' equity ("restated"), and deducting (iv) interest payable to holders of
deeply subordinated notes and of the restated, undated subordinated notes. The net income used to
calculate ROE is based on Group net income excluding interest, net of tax impact, to be paid to
holders of deeply subordinated notes for the period and, since 2006, holders of deeply
subordinated notes and restated, undated subordinated notes (EUR 293 million at end-December
2012), and the capital gain net of tax and accrued unpaid interest relating to buybacks of deeply
subordinated notes amounting to EUR 
2 million at end-December 2012.
As from January 1st, 2012, the allocation of capital to the different businesses is based on 9% of
risk-weighted assets at the beginning of the period, vs. 7% previously. The published quarterly
data related to allocated capital have been adjusted accordingly. At the same time, the normative
capital remuneration rate has been adjusted for a neutral combined effect on the businesses'
historic revenues 

3- For the calculation of earnings per share, "Group net income for the period" is corrected
(reduced in the case of a profit and increased in the case of a loss) for interest, net of tax
impact, to be paid to holders of:
(i)         deeply subordinated notes (EUR 266 million at end-December 2012),
(ii)         undated subordinated notes recognised as shareholders' equity (EUR 27 million at
end-December 2012).

Earnings per share is therefore calculated as the ratio of corrected Group net income for the
period to the average number of ordinary shares outstanding, excluding own shares and treasury
shares but including (a) trading shares held by the Group and (b) shares held under the liquidity
contract 

4- Net assets are comprised of Group shareholders' equity, excluding (i) deeply subordinated notes
(EUR 5.3 billion), undated subordinated notes previously recognised as debt (EUR 1.6 billion) and
(ii) interest payable to holders of deeply subordinated notes and undated subordinated notes, but
reinstating the book value of trading shares held by the Group and shares held under the liquidity
contract. Tangible net assets are corrected for net goodwill in the assets and goodwill under the
equity method. In order to calculate Net Asset Value Per Share or Tangible Net Asset Value Per
Share, the number of shares used to calculate book value per share is the number of shares issued
at December 31st, 2012, excluding own shares and treasury shares but including (a) trading shares
held by the Group and (b) shares held under the liquidity contract.

5- The Societe Generale Group's Core Tier 1 capital is defined as Tier 1 capital minus the
outstandings of hybrid instruments eligible for Tier 1 and a share of Basel 2 deductions. This
share corresponds to the ratio between core Tier 1 capital excluding hybrid instruments eligible
for Tier 1 capital and Core Tier 1 capital. 
As from December 31st, 2011, Core Tier 1 capital is defined as Basel 2 Tier 1 capital minus Tier 1
eligible hybrid capital and after application of the Tier 1 deductions provided for by the
Regulations.

6-The Group's ROTE is calculated on the basis of tangible capital, i.e. excluding cumulative
average book capital (Group share), average net goodwill in the assets and underlying average
goodwill relating to shareholdings in companies accounted for by the equity method. The net income
used to calculate ROTE is based on Group net income excluding interest, interest net of tax 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 the redemption premium for government deeply subordinated notes), interest net of tax on
undated subordinated notes recognised as shareholders' equity for the current period (including
issuance fees paid, for the period, to external parties and the discount charge related to the
issue premium for undated subordinated notes) and the capital gain net of tax and accrued unpaid
interest relating to buybacks of deeply subordinated notes amounting to EUR 2 million at
end-December 2012.

7- Underlying data

Information concerning underlying data corresponds to accounting data restated for the following
items:

*in 2011:

                   2011                          Net banking income      Operating expenses       Others      Cost of risk                                                          Group net income                                                       
 Revaluation of own financial liabilities         1,177                                                                         772            Corporate Centre                                                                                            
 CDS MtM                                           66                                                                            43            Corporate Centre                                                                                            
 Greek sovereign exposure                                                                                    (890)             (622)           Corporate Centre                                                                                            
 Restructuring                                    (11)                    (230)                 (12)                           (176)           Corporate & Investment Banking & International Retail Banking                                               
 Impairment & capital losses                                                                   (362)                           (360)           Specialised Financial Services & Insurance, Global Investment Management and Services and Corporate Centre  
 Deleveraging SGCIB except Legacy assets         (163)*                                                                        (124)*          Corporate & Investment Banking                                                                              
 Legacy assets                                    (476)                   (60)                               (425)             (663)           Corporate & Investment Banking                                                                              
                                                                                                                                                                                                                                                           
 TOTAL                                                                                                                        (1,130)          Group                                                                                                       


* Management information

*in 2012:

                                      2012     Net banking income      Operating expenses    Others    Cost of risk                                  Group net income                               
 Legacy assets                                  (268)                   (74)                               (262)        (416)           Corporate & Investment Banking                              
 SG CIB core deleveraging                      (489)*                                                                   (338)*          Corporate & Investment Banking                              
 Revaluation of own financial liabilities      (1,255)                                                                  (822)           Corporate Centre                                            
 CDS MtM                                        (56)                                                                     (37)           Corporate Centre                                            
 Greek sovereign exposure                                                                                  (22)          (16)           Corporate Centre                                            
 Buy Back Tier 2 debt                            305                                                                     195            Corporate Centre                                            
 Provision for disputes                                                                                    (300)        (300)           Corporate Centre                                            
 Impairment & capital losses                                                                  (580)                     (580)           Private Banking, Global Investment Management and Services  
 Impairment & capital losses                    (90)                                          (250)                     (309)           International retail banking                                
 Impairment & capital losses                                                                  (502)                       29            Corporate Centre                                            
                                                                                                                                                                                                    
 TOTAL                                                                                                                 (2,594)          Group                                                       


* Management information

The amounts for 2012 have been adjusted to take account of disposals and revaluations that
occurred during the year.
Changes are communicated at current structure and exchange rates, unless specified otherwise.

8- Funded balance sheet and loan/deposit ratio

The funded balance sheet gives a representation of the Group's balance sheet excluding the
contribution of insurance subsidiaries and after netting derivatives, repurchase agreements and
accruals. It was restated in Q4 12 to include: a) the reclassification under "repurchase
agreements and securities lending/borrowing" of securities and assets delivered under repurchase
agreements to clients, previously classified under "customer deposits" (excluding outstandings
with the counterparty SG Euro CT amounting to EUR 11 billion in 2011 and EUR 7 billion in 2012);
b) a line by line restatement, in the funded balance sheet, of the assets and liabilities of our
insurance subsidiaries; c) the reintegration in their original lines of financial assets
reclassified under loans and receivables in 2008 in accordance with the conditions stipulated by
the amendments to IAS 39; d) the reintegration within "long-term assets" of the operating lease
fixed assets of specialised financing companies, previously classified under "customer loans".

The funded balance sheet before and after reclassifications is presented below for 2011 and 2012.

 Before restatement for insurance subsidiaries and reclassifications (billions of euros)       
                                Dec-11  Dec-12  Dec-12  Dec-11                                 
 Net central bank deposits        43      65      66      46    Short-term issuance            
 Interbank loans                  39      44      65      69    Interbank short-term deposits  
 Client-related trading assets    59      101      2       4    Other                          
 Securities                       72      64      149     130   Medium/long-term funding       
 Customer loans                   405     384     337     336   Customer deposits              
 Long-term assets                 18      16      54      51    Equity                         
 Total assets                     636     674     674     636   Total liabilities              
                                                                                               
 After restatement for insurance subsidiaries and reclassifications (billions of euros)        
                                Dec-11  Dec-12  Dec-12  Dec-11                                 
 Net central bank deposits        43      65      66      46    Short-term issuance            
 Interbank loans                  31      36      65      69    Interbank short-term deposits  
 Client-related trading assets    37      88       8      11    Other                          
 Securities                       68      60      149     130   Medium/long-term funding       
 Customer loans                   387     369     311     295   Customer deposits              
 Long-term assets                 34      34      52      50    Equity                         
 Total assets                     601     652     652     601   Total liabilities              


The series of funded balance sheets presented during 2012 would therefore have been as follows:

 In EUR bn                                                 ASSETS                                                      LIABILITIES                                                            
                                31 Dec. 11  31 Mar. 12  30 June 12  30 Sept. 12  31 Dec. 12    31 Dec. 12  30 Sept. 12  30 June 12  31 Mar. 12  31 Dec. 11                                    
      Net Central bank deposits     43          50          55           78          65            66           69          56          54          46      Short term issuance               
                Interbank loans     31          38          45           44          36            65           72          58          58          69      Interbank short term deposit      
  Client related trading assets     37          52          47           69          88             8           9           11          10          11      Other                             
                     Securities     68          64          64           62          60            149         143          137         143         130     Medium/Long term funding          
                 Customer loans     387         386         383         378          369           311         319          314         309         295     Customer deposits                 
               Long term assets     34          34          34           33          34            52           52          51          51          50      Equity                            
                   Total assets     601         624         628         665          652           652         665          628         624         601     Total liabilities                 


The reclassified outstandings of SG Euro CT amounted to respectively EUR 8.3 billion in Q1 12;  
EUR 8.3 billion in Q2 12; EUR 7.3 billion in Q3 12; EUR 6.9 billion in Q4 12.

The Group's loan/deposit ratio is calculated as the ratio between customer loans and customer
deposits defined accordingly. It is 114% before restatement and reclassifications and 118% after
as at December 31st, 2012. 

All the information on the 2012 financial year results (notably: press release, downloadable data,
presentation slides and appendices) is available on Societe Generale's website
www.societegenerale.com http://www.societegenerale.com/  in the "Investor" section.

Société Générale

Societe Generale is one of the largest European financial services groups. Based on a diversified
universal banking model, the Group combines financial solidity with a strategy of sustainable
growth, and aims to be the reference for relationship banking, recognised on its markets, close to
customers, chosen for the quality and commitment of its teams.

Around 160,000 employees, based in 77 countries, accompany 33 million customers throughout the
world on a daily basis. Societe Generale's teams offer advice and services to individual,
corporate and institutional customers in three core businesses:
- Retail Banking in France with the Societe Generale branch network, Crédit du Nord and Boursorama
- International Retail Banking, with a presence in Central & Eastern Europe and Russia, the
Mediterranean Basin, Sub-Saharan Africa, Asia and French Overseas Territories
- Corporate and Investment Banking with a global expertise in investment banking, financing and
global markets.

Societe Generale is also a significant player in Specialised Financial Services, Insurance,
Private Banking, Asset Management and Securities Services.

Societe Generale is included in the socially-responsible investment indices: FTSE4Good and ASPI. 

For more information, you can follow us on twitter @societegenerale or visit our website
www.societegenerale.com http://www.societegenerale.com/ .


( #body_ftn1 1) Calculated according to EBA Basel 2.5 standards (Basel 2 standards incorporating
CRD3 requirements)
( #body_ftn2 2) Annualised, excluding litigation issues, legacy and Greek sovereign assets, in
respect of assets at the beginning of the period
( #body_ftn3 3) Impact on Group net income of non-economic items: EUR -859m in 2012, including EUR
-822 million for the revaluation of own financial liabilities; non-recurring items: EUR -1,319m in
2012; legacy assets: EUR -416m in 2012
( #body_ftn4 1) Change excluding restructuring costs recorded in 2011 and systemic tax allocated
to the businesses in 2012
( #body_ftn5 2) Annualised, excluding litigation issues, legacy and Greek sovereign assets, in
respect of assets at the beginning of the period
( #body_ftn6 1) Revaluation of the Group's own financial liabilities amounting to EUR -822 million
and book income in respect of the Group's loan portfolio hedges amounting to EUR -37 million in
2012
( #body_ftn7 2) Cost of Corporate and Investment Banking asset disposals (EUR -338 million),
goodwill write-down         
(EUR -842 million), Greek sovereign risk (EUR -16 million), net gains/losses on business assets
sold or available-for-sale assets (EUR -18 million), debt buybacks (EUR +195 million) and a
provision for litigation issues (EUR -300 million)
( #body_ftn8 3) Group ROE after tax was -5.31% in Q4 12 and 1.1% for the year. ROTE was 1.4% in
2012
( #body_ftn9 4) The interest, net of tax effect, payable to holders of deeply subordinated notes
and undated subordinated notes at end-December 2012 amounts to respectively EUR 266 million and
EUR 27 million. At end-December 2012, the capital gain net of tax and accrued unpaid interest
relating to buybacks of deeply subordinated notes amounted to EUR 2 million.
( #body_ftn10 1) This figure includes notably (i) EUR 5.2 billion of deeply subordinated notes,
EUR 1.6 billion of undated  subordinated notes and (ii) EUR 0.4 billion of net unrealised capital
gains.
( #body_ftn11 2 Funded balance sheet/Group loan to deposit ratio: scope and definitions modified
at end-2012. Detailed information in methodology note No. 8.

1At constant structure  
2Excluding goodwill write-down 

PR_ Q4 2012 http://hugin.info/143574/R/1677662/547236.pdf 


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Source: SOCIETE GENERALE via Thomson Reuters ONE


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