Societe Generale: Board of Directors meeting of March 31st, 2020
March 31 2020 - 1:52PM
Societe Generale: Board of Directors meeting of March 31st, 2020
PRESS RELEASE
Paris, March 31st, 2020
Board of Directors meeting of March 31st,
2020
The Board of Directors has reviewed implications
of the communication from the European Central Bank asking that
banks do not pay dividends for the financial years 2019 and 2020
for the duration of the coronavirus crisis and until "at least the
beginning of October 2020”.
It has been decided to maintain the Annual
General Meeting of Shareholders on May 19th, 2020 but to cancel any
dividend distribution for the 2019 fiscal year. Indeed, the ECB
does not want a decision on the payment of the dividend to be taken
before the beginning of October. However, this deadline is
incompatible with French law, which stipulates payment of the
annual dividend by 30th September at the latest.
During the second half of 2020, the Board will
propose guidelines on shareholder return, that could consist in the
payment of an interim dividend on 2020 results or an exceptional
dividend in the form of a distribution of reserves, the latter
requiring the holding of a Shareholders' Meeting.
These decisions have no impact on coupon
payments on AT1 bonds.
Given the uncertainties related to the magnitude
and duration of the Covid-19 pandemic, the Group is currently
analysing potential scenarios and their impact on the Group’s
results, as well as potential corrective measures. In compliance
with the Autorité des Marchés Financiers (French Market
Authorities) recommendations and pending the conclusion of this
work, the Group is suspending its 2020 targets communicated on
February 6th , 2020 during its 2019 annual results release.
The Group emphasises the solidity of its balance
sheet (CET1 ratio at 13.2% as at December 31st including the
write-back of 2019 dividend provision of 54bp, offering circa 410bp
buffer over regulatory requirements*) and its liquidity position
with a LCR ratio at 150% at end-February 2020. The Group benefits
from the strong quality of its loan portfolio, well diversified in
term of geographies and sectors, thanks to strict and proven risk
management. The Group remains fully committed to supporting its
clients, developing its franchise and improving the profitability
of its activities.
***
As the situation of the Covid-19 health crisis
evolves, the Group's duty is to protect all its teams and provide
the best possible support to its clients. The Group has implemented
operational measures to ensure the safety of its employees while
maintaining business continuity and quality of service for its
clients. The Group is determined to fulfill its role of supporting
the economy, particularly through the plan to strengthen the cash
position of companies weakened by the health crisis.
* Taking into account the application of Article 104 A of CRD5
and the notifications to date relating to countercyclical
buffers
Press contacts:Antoine Lhéritier +33 (0)1 42 13
68 99 antoine.lheritier@socgen.com Corentin Henry +33 (0)1 58 98 01
75 corentin.henry@socgen.com
Societe Generale
Societe Generale is one of the leading European financial
services groups. Based on a diversified and integrated banking
model, the Group combines financial strength and proven expertise
in innovation with a strategy of sustainable growth, aiming to be
the trusted partner for its clients, committed to the positive
transformations of society and the economy.
Active in the real economy for over 150 years, with a solid
position in Europe and connected to the rest of the world, Societe
Generale has over 147,000 members of staff in 67 countries and
supports on a daily basis 31 million individual clients, businesses
and institutional investors around the world by offering a wide
range of advisory services and tailored financial solutions. The
Group is built on three complementary core businesses:
- French Retail Banking which encompasses the
Societe Generale, Crédit du Nord and Boursorama brands. Each offers
a full range of financial services with omnichannel products at the
cutting edge of digital innovation;
- International Retail Banking, Insurance and Financial
Services to Corporates, with networks in Africa, Russia,
Central and Eastern Europe and specialised businesses that are
leaders in their markets;
- Global Banking and Investor Solutions, which
offers recognised expertise, key international locations and
integrated solutions.
Societe Generale is included in the principal socially
responsible investment indices: DJSI (World and Europe), FTSE4Good
(Global and Europe), Euronext Vigeo (World, Europe and Eurozone),
four of the STOXX ESG Leaders indices, and the MSCI Low Carbon
Leaders Index. For more information, you can follow us on Twitter
@societegenerale or visit our website
www.societegenerale.com
- Societe Generale_Board of Directors Meeting - 31.03.2020
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