Société Générale Société anonyme (GLE) Earnings Call Transcript & Summary

Ladies and gentlemen, shareholders, hello. This year, once again, COVID-19 has led us to organize this general meeting without your actual attendance. We are very sorry for that, and we hope we will find you once again next year at La Contas as in previous years. Nevertheless, you received all useful information for voting under the regular conditions and within the normal time frames. Those who ask to do so, may ask the questions at the 5:00 p.m. by the Internet. They receive the code to access the website. We have over 24,175 shareholders present in personal by proxy. You're able to send in your written questions, including by electronic means, and many of you voted the quorum is set at 58.556%. It is now time to open this ordinary general meeting held on first notice of meeting. Based on a notice published in the compulsory gazette and in on the 12th of April 2021, all written questions and replies are available on the website for the general meeting. We'll also answer the different topics raised after a survey that was carried out with you. This survey confirms our wish or your wish to find out more about the group's strategy and outlook, including when it comes to dividend after year marked by the COVID crisis that impacted income in the first half and the share price. Amongst your questions, I note your interest on retail banking strategy in France, in particular, and then the reasons for disposal of Lyxor as well as the ESG strategy. This survey also shows the renewed interest shown by shareholders for individual shareholding and in particular, for Societe Generale. Individual shareholders, excluding employee shareholders, increased from 4.9% at the end of 2019 to 7.7% at the end of 2020, up by almost 60%. Today, in addition to Frédéric Oudea and myself, I'd like to present the new management team that was set up as of the month of August of last year and that embodies the bank's renewal. The 2 VPs are unseen Diony Lebot in charge of risk, compliance, financial services and insurance; and Philippe Aymerich, in charge of retail banking in France and internationally. And the 3 Deputy Vice President, who are also here, William Kadouch-Chassaing, Deputy Vice President and CFO; Slawomir Krupa, Deputy Vice President in charge of GBIS; and Sebastian Proto, Deputy Vice President in charge of Retail Banking in France and private banking. During our meeting today, first, we will talk about our income with William Kadouch-Chassaing after which Frederic Oudea will present a strategy with 2 additional presentations on retail banking in France given by Sebastian Proto, and investment banking presented by Slawomir Krupa, and then we will talk about corporate governance and compensation with Jean-Bernard Levy and myself; and lastly, a discussion and the vote on the resolutions. Now we can now move on to formalities, forming the Bureau for our general meeting. To sit as vote tellers, we have appointed the 2 shareholders accepting this function and holding per se, or as representatives, the largest number of votes. Madam , representative of Amundi Asset Management; and Mr. , representing BNP Paribas Asset Management. I'd like to take them for their acceptance, and I suggest that as Secretary of the meeting, we should appoint Patrick Suet, Secretary of the Board of Directors. The auditors were called down according to loan regulation, I'm referring to Mr. Micha Missakian representing Cabinet, Ernst & Young et Autres; and Mr. Jean-Marc Mickeler, representing Deloitte & Associates. I keep the disposal -- your disposal and the Bureau of this meeting, the usual documents listed on this slide. Now the documents and legal information, forming the documentation that is required before the meeting and whose list is also displayed on the Société Générale website. We also sent to the general -- to shareholders or kept the headquarters of Société Générale. As each year, our discussions are broadcast live on the Internet and maybe accessed later on, on our website. You may also follow our discussions over the phone. Before giving the floor to general management, I would like to send out a few messages to you. First of all, I wish to each and every one of you, ladies and gentlemen, shareholders, the best possible health in the face of this unprecedented pandemic's century. For general management and group employees, I'd like to express our gratitude for the professionalism and the availability they have shown throughout this crisis. Our first concern was the health of each and every one of you. To our customers, I'd like to say that we are pretty committed to support them in this crisis and fully mobilized at their service to rekindle the economy in France and abroad. The lockdown has changed our relations with customers. They have been strengthened and their channels have been diversified. But of course, the merchants of new technologies. We must be increasingly agile. Once we have returned to normal health situation or our business would not be quite the same. The context will have changed. States expect banks to also be players in the recovery. Regulators will have to reaping some rules. Some risks have become major such as cyber security, for example. Working from home creates new expectations for working conditions that have been redesigned, and you must define a new model. In 2020, many strategic projects were launched and your Board is particularly attentive especially with the framework of the good follow-up of the group's financial road map. You will have some insight into this -- with the presentation by Frederic Oudea and Sebastian Proto as well as Slawomir Krupa. At each year, let us begin by coming back to our results with William Kadouch-Chassaing.

Thank you, Mr. Chair. Ladies and gentlemen, hello. First, I'd like to come back to the -- our results in 2020. And like the people comment on the results in the first quarter, and our policy when it comes to a return to shareholders. In 2020, we saw 3 key highlights. First of all, our activities were resilient despite the impact of an exceptional crisis. Income in 2020 are down by 7.6% on a like-for-like basis as compared to 2019. Underlying net income reaches EUR 1.4 billion, down by 65% due to 2 factors: the decline in income; and increase in the cost of risk. The peak of this impact was in the first half. Market activities were impacted by a dislocation in the first quarter, and retail banking suffered from health measures. In the second half, income picked up significantly with study growth in financial services to companies. In finance investment banking and nice pickup and resilience in retail banking. A second highlight, we nevertheless obtained all of our financial targets. We reached our target in terms of underlying cost base at EUR 16.5 billion in 2020, the 5.2% less than in 2019. The cost of risk was lower-than-expected at 64 basis points versus a maximum of 70 basis points considered earlier in the year. And capital is still strong at 13.4% at the end of the year, above our targets. The third highlight we remain concentrated on executing our main strategic initiatives. We announced the merger of our retail banking networks in France. We reviewed the risk profile of our market activities and especially risk linked to structured products. We announced strategic plans in 3 of our growth drivers: ALD, Komercní banka and Boursorma. And lastly, we made progress in our strategy as regards sustainable development. We're targeting to become the leader in sustainable development. Our leadership in this area can be seen in top ranking extra financial scores and rising in 2020, thanks to progress in key areas, the energy transition, supporting our clients, diversity and inclusion. One example in the field of the energy transaction, we are the world's #2 in fedexing renewable energy and #1 in advisory. This is a major achievement given the size and the outlooks for growth on this market. As I said before, the results for 2020 are marked by the steep crisis we experienced. Underlying net income reaches EUR 1.435 million, down by almost 65% in 1 year due to 3 factors: a decline in income by 7.6% on a like-for-like basis; and the cost of commercial risk multiplied by 2.7%. And on the other hand, we have a decline in overhead expenses. Net income group share as published is negative for the year at minus EUR 258 million, including 2 supplementary elements of an accounting nature, EUR 684 million in terms of impact due to the write-off of goodwill for market activities and investor services and EUR 650 million for the write-off of active deferred assets -- of deferred taxes on assets. These 2 factors did not impact the organic generation of capital. Goodwill on -- the write-off of goodwill and deferred taxes and assets have already been deducted from the capital ratio. We have a strong group that has been strengthened in 2020. We have a core Tier 1 ratio. Our regulatory capital ratio at 13.4% at the end of 2020, about 440 basis points above regulatory requirements, an increase of 70 basis points as compared to the fourth quarter 2019. All of the capital ratios are also strong. Tier 1 ratio, total capitalization and the so-called TLAC ratio. Secondly, the group benefits from favorable liquidity. We have a -- at the end of the year, our liquidity reaches EUR 243 billion, up by EUR 53 million over the year. Let me now turn to the first quarter, confirming the strong recovery of results expected in 2021. Net income reported at the first quarter reached EUR 814 million despite the full impact of the so-called IFRS 21 charge, leading to recording in 1 quarter, nearly EUR 799 million in operating income and regulatory expenses. Underlying net income, which is EUR 1.3 billion, leading to a return on tangible equity, ROTE, of 10.1%. The group's performance can be explained due to 2 factors. First of all, the strong growth in terms of gross operating income. Now operating expenses. Gross operating expenses underlying is up by 2.2x as compared to last year due to the increase in income, plus 21% and costs dropping minus 2.4%, creating a significant sizes effect. Secondly, the second factor, the cost of risk is improving. For the quarter, it reaches 21 basis points, far lower than the first quarter of 2020, when it was at 65 basis points. Despite a prudential approach, when it comes to provisions. A few words to conclude on creating value for shareholders. The strong recovery in our performance noted in the second half of the year, 2020 and confirmed in the first quarter 2021 leads to a growth of our net profits per share underlying since 1 year, reaching EUR 0.83 for the quarter of 2021. In the first quarter, 2021, tangible net assets reached EUR 55.2 per share, up as compared to the fourth quarter of 2020. Regarding distribution, we proposed to the general meeting, a dividend equivalent to EUR 0.55 per share in compliance with the maximum authorized by the ECB's recommendation. Supplementary share buyback program will also be launched in the fourth quarter, subject to the non-renewal of the ECB's recommendation in September and authorization for it to be rolled out. This would mean an additional amount of EUR 470 million. For 2021, we are targeting a payout of 50% of net income -- a net underlying income group share, that can include the 10% of the net income group share in the form of share buybacks. Thank you. Thank you, William. And now I give the floor to Micha Missakian on behalf of the company et Autres.

The shareholders, I will first summarize our audit report and the consolidated financial statements and the annual accounts presented in the brochure given to you. The fundamental formation is to obtain reasonable assurance about the regularity's sincerity and the faithful image of the accounts and the fact that they do not contain any significant anomalies. We certified without any reservations, the annual reports and the consolidated financial statements drawn up by your board. About the consolidated financial statements, I would just call in to question. Our opinion, we'd like to point out 1 -- 2 points in the appendix, IFRS 16 and rental contracts. About the annual financial statements and that challenging our opinion, we'd like to draw attention to 1 Annex supposing the impact of the change in accounting method with respect to the presentation of regulatory savings. The global crisis linked to COVID-19 creates particular conditions when it comes to preparing and auditing the accounts, exceptional measures taken within the framework of the health emergency led to measures that have an impact on company's organizations and how audits are performed. Within this complex and changing environment, we have in our reports, referenced to the key points with respect to insignificant anomalies that were the most important for this year's audit. The key points of the audit, being on the consolidated financial statements and the annual accounts presented in the brochure given to you. The fundamental conformation is sort a reasonable assurance about the regularities, sincerity and a faithful image of the accounts and the fact that they did not contain any significant anomalies. We certified without any reservations, the annual reports and the consolidated financial statements drawn up by your Board. About the consolidated financial statements are the impact of the economic crisis linked to COVID-19 and assessment of credit risk and the assessment of the write-off of consumer -- customer loans. In France and in the U.S., the valuation of complex financial instruments and the IT risk on derivatives and structured assets. The key point of the audit being on the consolidated financial statements related to the per value for interest for any risks in retail banking in France and the assessment of acquisition goodwill. The key points in the audit being only on the individual financial statements were on the assessment of participation shares, other long-term securities held by the company. On the company's management report, we have not sufficient to be with respect to the sincerity there off. And with respect to the individual project statements, we have no observations to make in both specific orders provided for by law and especially when it comes to other information related to the shareholders, in particular, the report on corporate governance, and on management. I will now summarize our special report related 3 third-party agreements for 2020. We must communicate based on the information provided to us the characteristics and the main features and the grounds just upon your company's interest in the agreements that we have discovered with the primary. Our mission without having to express an opinion on the usefulness of their well bounded or for the existence of other agreements. In that respect, we inform you that we received no communication on any or such agreements during the period and no agreement to put that proved by the General Meeting, which will continue to be executed during the year, which will be ending. Thank you for your attention.

Thank you, Mr. . Let us move on to Strategy and Frederic Oudea will present the -- give you the main presentation, then we'll have 2 films, one on retail banking in France and the other investment banking furthering overview.

Ladies and gentlemen, dear shareholders, good afternoon. I hope that you are keeping well in these uncertain times. This unprecedented crisis has been lasting for more than a year now. And unfortunately, once again, our annual assembly needs to be held online. We hope that we'll be able to draw a line under this as soon as possible. We are maybe reaching the end of our last lockdown. I would like to thank the new shareholders for joining today and thank the long-standing shareholders for their loyalty. My objective today is to take stock of the previous year. And to share with you our vision for 2021. Thirdly, talk about how we are preparing for the next strategic steps and my beliefs for 2025 -- going forward until 2025. 2020 will be a year that we will all remember has been difficult, has been also a year of great mobilization. We focused on 2 main priorities: first of all, maintain the security of our employees and clients. And at the same time, play our role as an important economic agent. We have made sure that our actions and activities were maintained. We worked with the authorities of all the countries in which we operate. And a good example of this is what we did in France with the state backed loans to support the cash flow of companies to the tune of EUR 18 billion, out of EUR 135 billion, backed by the state. And I think that in this crisis, we have reinforced our trust-based relationship with our clients. We have also helped our employees and supported them throughout and supported our communities with a special solidarity program that was rolled out across the world. And I'd like to thank all of our teams that have been committed from the very beginning across the world to helping Société Générale. And since the very beginning, we have shown how responsible and useful, we are as a bank and as an important player. Now in terms of financial performance, 2020 was very much a mixed year with 2 halves. The first half was extremely difficult. With the huge impact of the crisis on our business with the economies that grounded to halt, the double hit of well, first of all, there've been less business and then the higher cost of risk and the dislocation of markets and all the changes that were brought about. These impacts were felt by all the players in the European banking sector. But we were hit more specifically because we have a lot of structured investment products in our business model. Also, the ban on paying out dividends had a huge impact on ourselves and on our shareholders. In such circumstances, the first half of the year threw up a lot of questions on our ability to find the right options to remain profitable going forward. The share, Société Générale dropped to EUR 11, an excessive undervaluation that was not acceptable. We were able to act quick with important strategic decisions to refer on the short term, whilst also building the midterm future and protecting our franchises. The second half, on the other hand, was more encouraging with a pickup in our performances that reassured the markets. We met our objectives and our guidance on costs, on the cost of risk and capital. Overall, we have proved our resilience and our ability to bounce back. Our share reacted positively and this improvement has been carried forward this year with very good results for Q1 and a good presentation to the market of our strategy on investment banking and on financing that was well welcomed by investors. As you can see, the share price has caught up and now stands at EUR 26 with the best performance to date for European banks. I am confident on the fact that this catching up for our valuation will continue quarter after quarter of this year. As long as we deliver recurring performance and execute with discipline our strategic road map. In terms of dividend distribution, we were allowed at the end of the year by the European supervisor to resume payment for dividend for 2020 for an amount that initially will be full under strict regulations. And like William said, we're going to be paying out the maximum that we are authorized, i.e., EUR 0.55 per share, and we will add to this if we are allowed to in the fall. We also are looking to a share buyback program. It's a program that allows to increase the net profit per share going forward. And it's another way of distributing capital to shareholders. And is very relevant when the value of the share is underneath its actual value or the value of tangible assets. Now for 2021, it's going to be a very busy year for us, but I think that we will have a lot of success. After completing our refocusing program with Lyxor we'll be on the front foot and working on strategic projects to reinforce our diversified business model. In retail Banking in France, we are aiming for 15 million clients by 2025 with a project of creating a new bank resulting from bringing together [indiscernible] and Société Générale. Sebastien Proto one of our new joint general directors will be talking about this in greater detail in a minute. We are also going to be speeding up the development plan for Boursorama, leader in online banking, who broke a new record since they onboarded 200,000 new clients in 3 months. Boursorama is an important player in online banking in France, and the target is to have 4.5 million clients by 2025. That will give us a very differentiating footprint in the French market with 2 large banks that compete 1 another and both very profitable. Now for international retail Banking, KB and Czech Republic has already disclosed its change 2025 strategic plan. KB wants to become a leader in terms of digital and responsible banking in Czech Republic. Generally speaking, in all our countries, the potential for our subsidiaries is very promising. Likewise, for our specialized financial activities like insurance, ALD has launched its move 2025 plan with an aim to reinforce its position as a global leader in a promising area over and beyond its organic growth, ALD will be pursuing with its targeted acquisitions and its long term partnerships, such as the one with Banco Sabadell in Spain. And now for Global Banking and Investor Solutions. After having completed our new range for structured projects that has improved our risk profile. We have just presented to the market our midterm strategy on these activities. We are going to harness the potential of these activities. And make sure that they contribute to the group's income and results. Slawomir Krupa, who took over as Joint General Director for these businesses from the 1st of January, will be talking about this in a minute. In 2021, more generally, we will be completing a new strategic step forward. By the end of the year, we will have more visibility on the sanitary situation. The recovery after the crisis, the regulation and the framework set out by the European Commission on the implementation of Basel IV agreements that we expect now and in September. Over and beyond the statements that have been done for our different business lines. For the first quarter of 2022, we will be presenting the trajectory for the group for the 2022, 2025 period. We have already set out a clear course and restated our ambition. We want to build on our diversified business model, a business model that is now balanced and refocused. We have validated with the Board a number of strategic choices that will allow us to improve year after year, the competitiveness of our business lines and the profitability of our group by building on our position of leadership and on our expertise. This diversification can become an asset in the long term, if we continue to build synergies, synergies with our clients, with platforms, in terms of expertise to offset the regulatory constraints that are putting downwards pressure on large banks such as Société Générale. We want to be a disruptive bank. We want to be able to reinvent ourselves and seize opportunities in a disruptive world. Incremental transformation is no longer enough. When you look at how quickly things are changing. We need to build the bank for the future. It needs to be digital. We need expertise. We need to be responsible. We need to reinvent our business models and create new ones for the future by relying on new technologies. Now to achieve all of this, we are going to use 3 main levers. First of all, client satisfaction and customer centricity. We need to focus on our clients at all times and be there for them. Our ambition for all our business lines is to meet the needs of our clients and to think about their needs in the future. Second lever, we need to reinforce our operational efficiency. We want to work to be more effective and to reduce our cost structurally so that we can be more profitable. We also want to be more agile, and we want our process to be more qualitative thanks to digital technologies. We will also be paying close attention to internal control and risk management. Third lever, the definition and the upholding of our ESG commitments. ESG issues are our priorities and have been so for many a year. We are making progress in our commitments as our good nonfinancial assessment for 2020 speak to. And our good rankings. No company will be able to develop itself in the future if they do not place ESG at the very heart of their strategy. And as a bank and as an important financing player, we have a role to play. 2020 was a turning point in that area. We are at a cross road. Cross roads when it comes to the environment, governance and social issues. And we want to speed things up, and we want to integrate all of these issues at the heart of the strategy of the group and our business lines. We have strong ambitions so that we can have a positive environmental and social contribution. Now regarding the fight against climate change, we are committed to a climate strategy that is proactive to support our clients throughout the transition in a responsible manner. We're going to align our activities with the Paris agreement. We are going to reduce our exposure to fossil fuels, and we will speed up our support to developing renewable energies since 2025. Our exposure to coal has gone down significantly. And we have an exit strategy for 2030 or 2040 or complete exit strategy for 2030, 2040, depending on the countries. For oil and gas, we are 1 of the very first banks to have set an ambitious objective, i.e., to reduce this portfolio by 10% before 2025, and we've made good progress already. And we will be investing in renewable energies, as we have been doing so for the last 20-odd years. In the face of these issues. We believe that we need to act collectively to have an impact. We have founded a lot of coalitions that give a framework and a collective impetus to our work. Recently, we have joined 2 new alliances Net-Zero banking and Net-Zero asset manager. It is a commitment that will give a lot of structure to what we do and to all of our business so that we can fit into a carbon neutral trajectory by 2050. Now for the social side of things. We are investing in employability, in training, in mobility for our employees. And we are constantly discussing this with our employees. This is very important against the backdrop of the huge and quick evolutions in banking. We are going to have to restructure, and we want to do this in a responsible manner. And that's why we need to anticipate. We have also reinforced our commitment in terms of diversity, with an objective of 30% of women in executive positions by 2023. We're also paying close attention to our contribution to sustainable development in the areas where we operate from France to Africa and everything in between. And it's on these strong foundations, and on the results of the studies that we've carried out with our stakeholders we are completing our strategic ESG road map for 2025 and a presentation will be done to the market in the second half of the year. Now for the long term, we can rely on our strength and on our expertise. We are a diversified balanced integrated bank with a strong European footprint and connected to the rest of the world that its client trust. We are solid. We are resilient. We have a lot of expertise we know how to manage risks, and we've proved it, and that's very important for a financial institution. We are a bank where the employees are absolutely unbelievable and are truly committed to the company. With all of these strengths and by being good in execution in years to come, then we can confirm how statute has been a reference in European banking. A reference in terms of client satisfaction and in terms of digital technologies. We want to offer the best services by having good financial offers, positive partnerships and to be a part of new open architecture concepts such as Bank of the platform and bank as a service. We want to be disruptive and we want to stick to our ESG commitments. All of our clients are reinventing themselves. And that means a lot of opportunities for us to roll out our rising debt to choose -- our clients to choose the projects that we back, and our expertise is fit-for-purpose for this new world. Now from the perspective of of our shareholders, we are going to remain attractive by paying out 50% of our underlying net result. I'm convinced that the Société Générale share can be attractive in this low interest rate environment. I've been at the helm of Société Générale over the last 10 years. It's been a great pleasure. Although I have had to overcome a lot of crisis in that time. This global pandemic is clearly 1 of these challenges. And it comes at a time when Europe had not yet completely overcome the challenges of 2008. And this crisis has painful consequences for communities and for individuals, but it is also an opportunity to think and to act in a more free manner. We have been hit by this crisis in 2020, but we've drawn the lessons from it. And we have done a lot to solidify our business model. 2021 will be the year of recovery. And we will continue going forward we will be determined and reach our strategic milestones that are both ambitious and realistic. I truly believe that we can deliver on a regular basis quarter after quarter results that are in keeping with our objectives, which will allow us in the months to come to continue with our development trajectory and to justify the trust that you place in us. Thank you very much for your attention.

Hello, everyone. On the 7th of December last, we announced a plan to bring together Société Générale and Credit du Nord in France. It's a strategic choice with a strong ambition in terms of sales, customer satisfaction and profitability. This project draws all the consequences for changes that are put on the retail banking market. Retail banking will continue to change significantly in the -- over the next 10 years. The low interest rate environment will continue to win income. Competition is increasingly strong between newer banks, fintechs and GAFAs on the French market with already cut throat competition. This competitive pressure must be compounded with pressure from consumers every day with increasingly demanding clients when it comes to banking tax. All of that weighs on retail banking income. But on top of income, it's all of retail banking, that is changing significantly. The regulatory framework is always more demanding. Customers' behavior, their expectation are swiftly changing. Digital is the main challenge in that respect with competition more and more on the quality of tools and digital pathways. And of course, that is even more true when it comes to exiting the health crisis. So all retail banks are permanently in the race for investments. This is the pressure on income, pressure on investments. And therefore, overall, pressure on profitability that we must take into account with utmost lucidity and anticipating as much as possible. It is in this context that we will find an efficient response with the merger between Société Générale and Credit du Nord. We have a challenge in terms of investments. Thanks to this merger, we will concentrate all our investments on the single information system that Société Générale instead of diluting them as is the case today on 2 tools. We have a challenge in terms of transforming our retail banking model to cater to changes in customers' behavior. With this merger, we can build a model. Benefiting from the restrictive strengths of each brand to offer them to our 10 million combined clients. We have a challenge to rescale our branches because clients go list the branches. Thanks to this merger, we can reduce the number of branches by 30%. So as to have 1,500 all in all without leaving any city because [indiscernible] branches in 60% of cases are located less than 1 kilometer away from [indiscernible] branches. This means that by using this geographic proximity. At the same time, we can reduce the number of branches offer Credit du Nord clients and access to 1,500 branches instead of 650 today and have the same number of branches as we have today for [indiscernible] clients. We have a challenge as well of profitability. This merger means reducing the cost base of our retail banking in France, by EUR 450 million by 2025, meaning a level of synergies comparable to that obtained on average in banking mergers. Our goal with this merger is to reach a role in a Basel III environment, ranging between 11% and 11.5% in 2025, meaning over 10% in Basel IV. This is an offensive project with this merger. Offense in terms of customer satisfaction, with the goal of being amongst the top 3 for our core customers, corporates, professional and high wealth individuals. With respect to income with the wish to make choices in terms of organization, services and offer, such that we can stand out on the French market. It is in this spirit that we are building this future bank of 10 million clients. Concretely, we plan to be the bank, operating its clients the best of digital and the best human experience, the best of remote interaction and proximity with the most tailor-made response possible, catering to the specific needs of all our customer categories. Offering the best of digital means having a digital solution for all everyday banking operations. Because for these everyday operations, our clients want maximum facility, ease-of-use. On top of everyday banking, digital will be a key channel to win over new clients and sell our products and services. Between now and 2025, 30% of our sales will be fully digital for eligible products. Offering the best of human expertise that means be thinking branches to make them centers of expertise. That means free up branches from low added value pass to have more time granted to advisers to play the rules as experts and bankers, offering a custom-made response starting with the needs of each client category in defining our organization. For example, high network individuals clients with a high level of income or assets, the need for savings are more elaborate. They all will have access to our 100% ISI savings offer in an open architecture that makes a difference in the French market and making us -- putting us in a strong position to be the reference banking savings. Lastly, to offer the best in terms of proximity. That means building retail banking anchored in territories at regional and local levels that can benefit from a wide range of responsibilities. The goal is drop short and fast decision-making channels, which is key to stand out from the competition. This merger will be implemented in 2023 bearing the time frame required for this type of operation with IT migrations. 80% of synergies will be obtained in 2024 and 100% in 2025. To succeed, we have started an intense work of preparation in view of all the issues, IT, legal, regulatory, operational and human, of course. We have embarked upon negotiations with our social partners. Before summer, we will submit the case to the European Central Bank that would need to approve this merger. A more detailed presentation will be made public in the second half of 2021. Ladies and gentlemen, this merger will enable us to have a stronger and more profitable banking network with a better value proposition for all our clients. At the same time, we've accelerated growth Boursorama, #1 online bank in France. We will strengthen our second model that of purely digital retail banking for private customers. All in all, with the 2 strategic initiatives, we are targeting 50 million clients by 2025 and will have a greater impact on the French market. And thank you for your attention.

Ladies and gentlemen, dear shareholders. I'm Slawomir Krupa, Deputy Vice President in charge of GBIS. Global Banking Investor Solutions. We presented our 2023 strategic plan to analysts last week as well as to institutional investors. I'll give you a summary here. First, I'd like to present us and our main challenges. GBIS is a client business. All the value we create starts with low or resilient income from a large and stable client base. The true value is created because we leverage our expertise in sectors and chosen regions on advisory services, our products and on integral synergies. Our innovation capabilities are a key ingredient in this process of creating value. It is the cornerstone of what we are. Today, we are facing 2 main challenges in the process of value creation. Our suboptimal cost structure and our sensitivity to extreme shops. To be clear, the extent of the impact of market dislocations and our performance. Now to face this. We have a simple road map, ensure a sustainable profitability with lower gaps in performance, thanks to a better balance between our income flows, greater operational lever in our model, less risk, seizing growth opportunities and benefiting from the unique opportunity of CSR that's changing our global economy and the opportunity of digitalization. With this road map we deliver at least 10% of [indiscernible] gone by 2023, mechanically leading to 12%, excluding the temporary contribution to the European single resolution fund. Since we like to build more in the coming years, it's logical to examine our foundations and to verify that can resist the time like any company in the service sector, our strongest base is our clients. Income from clients amount to EUR 8 billion split in a balanced way between companies and financial institutions with the low volatility of income. In addition, a very low rate of -- a very liquid churn overall. They're loyal to us because over 100 years, we have provided them with high added value services, advisory services, and in upper products based on a sectoral expertise through the complete spectrum of their needs around the world. That is the key to maximize the capacity to do cross-selling and to optimize the yield on capital or margin impact. Increasing loyalty by increasing the number of connections and links with our clients and also to strengthen our sectorial impact and our innovation, both are often based on the global understanding of the value chains or investment needs. The total amount of commissions in our sector remains stable, with a certain rebalancing between different parts of the world. But there are key trains that will offer growth opportunities. For which we are well positioned, and we're determined to seize these opportunities. Infrastructure needs will benefit from physical policies. Investments in the energy transition driving growth constantly, amongst our corporate clients and financial sponsors in the field of energy, infrastructures and asset financing. That is true around the world, especially in Asia and the Americas, will also benefit from the long-standing polarization between asset and alternative investments and the increase in private credit and private equity. We have a proven capacity to provide products and solutions based on our global position in originating structured financing in key structures, key sectors on the buy side and are experiencing credit risk. What we need in managing savings we also call for simpler, structured products, offering protection and thematic exposure to a tailor-made indexes and the relevant CSR content. As innovators, we have built some of the top-selling products in the world. In Europe and also largely in Asia and the Americas, we take part in the economic recovery, thanks to our efficient international footprint. We support companies in their need to grow or to restructure while offering investors access to all assets that will emerge in from the new macroeconomic cycle. We are determined to make the most of these positive trends. In doing so, we'll see to progressively balance our model guaranteeing our ability to seize growth opportunities while reducing concentration risks. We will focus more on large companies gradually and amongst financial institutions, we have increased our activities with institutional investors like insurance companies, for example, and with financial sponsors. In terms of business, our additional capital allocation will taper, financing and advisory services and we'll continue to invest in technology for our transaction banking business. By making the most of our profitable platforms in Asia and America, we'll try to capture the excess growth expected in these regions. We also believe that the reasonable growth ambitions will be helped by 2 key catalysts, CSR and technology. CSR is a new story. ESG is a new story for some, but not for Société Générale. We have 20 years of leadership inhibition and actions. We have taken ambitious engagements and we stick to them. We assume this responsibility considering that order activities will be natively ESG. In 10 years' time, there will be no business that is not ESG from the very start. This is very stimulating for us as bankers and citizens. Our ambition is to double our income linked to ESG as of 2025. As for technology, we're thinking of technology to 3 dimensions, enable business to grow, improve efficiency by reducing costs and increasing quality through automation and being a leader in potential disruptions. In the final analysis, in the parameters for macroeconomic scenario that drag recovery with a normalized cost of risk, will obtain a sustainable boning in excess of 10% in 2023 and in excess of 12% as of 2024. To conclude, our story is simple. A market put up well to be exploited, an important and stable customer base to serve. Significant growth drivers to see us, lower costs to increase value creation and the lower risk to protect our profits. I would now give the floor to Lorenzo Bini Smaghi to tell us more about corporate governance.

Thank you. Ladies and gentlemen, shareholders, and I move on to the part of the General meeting devoted to corporate governance. In the universal registration document, on Page 63 at all, you have the report and corporate governance. You can read there in detail the Board's management report and that of each committee as well as a report relating to the Chairman's activities. The Board spent a lot of time in 2020 to monitoring the implementation of the strategic plan. In the context, impacted by the COVID crisis with these consequences, in particular, on the markets in the first half. Given this context, the Board ensured a very close follow-up of the bank's activities. It ensured that health risks were under good control, both for employees and for clients and service providers. The Board met 18 times in video conference as of the month of March. In accordance with the Bylaws, the Board of Directors devoted a key part of its activities to dealing with strategic guidelines to 1-day strategic seminars were organized. In addition to risk appetite and the capital trajectory, the Board approval guidelines set by -- for network banking in France, KB, ALD and on market activities and investment banking. The Board of Directors also validated the bank's CSR strategy and approved the extra financial performance statement. Lastly, and this is a very important decision. The Board sets ambitious targets for 2023 when it comes to diversity in managing bodies. The Board of Directors devoted at each meeting time to review remediation when it comes to compliance and notable satisfaction decision taken by the French National Financial Court, which noted the compliance of the remediation set by the bank when it comes to the fight against corruption. In 2020, the Board received representatives of the European Central Bank and the Basel banking supervisors. Those are reorganized general management and the proposal of Frederic Oudea and carried out an assessment of company directors. It also worked on the Nominations Committee and Corporate Governance Committee on succession plans. On Page 91, you can find a summary of the valuation of work added by the Board, a positive assessment in terms of its composition as well as the quality of its work. The work highlight by the Board is paid by the work done by the committees. And like the bank, the Risk committee and the audit and internal control committee for the quality of the work. The Rest committee is specifically responsible for supervising activities linked to the United States. We also sought to strengthen, improved training, offer to Board members in some areas such as accounting and prudential rules, technological topics, such as cybersecurity, artificial intelligence as well as compliance, in particular, the fight against money laundering. Regarding my personal role, I actively took part in contacts with the regulators and met international shareholders and investors with the formwork of the preparation of this general meeting, in particular. In terms of governance, the Board took note of the departure of Philippe Heim, Deputy Director General; as well as Severin Cabannes, who are retiring this year. The Board examined the conditions for the departure and Jean-Bernard Levy will present that to you later on. We'd like to thank them on your behalf. And especially Severin Cabannes, who stay deputy VP for more than 10 years. Regarding the composition of the Board, 2021 saw several changes. The size of the Board went from 14 to 15 members with the election of the Board member representing employee shareholders. That is set with in resolutions 20 and 21. You have the choice between Madam 20th Resolution; and Mr. Sebastian Porto, 21st resolution. The Board in view of these 2 very good applicants did not wish to stare shareholders in their choice. Secondly, the employee shareholders. We saw the renewal of Madam , her term was renewed. She has been on the Board since 2009 and a member of the compensation committee. Mr. Jean Pud was elected, and we will have him with us for 3 years, and you wish him. Welcome. We would like to thank Diony Lebot, who was not a candidate for is renewal, and he has been with us over the past 3 years on the Board. 3 directors are submitted to your approval for a renewal. The first is Alexandra Schaapveld, she has been the Board member since 2013. Chairwoman of the Audit Committee and internal control. She plays an essential role for the Board and her banking experience is extremely useful. William Connelly Board member since 2017 and Chairman of the Risk Committee since 2020 also plays a key role. His experience in banking and his finance are a significant asset for the Board. And Board member since 2017, who has brought to the table his expertise in digital strategy, among other things, of course, and member of the Executive Committee of L'Oreal, up until the end of April, and he's just joined the investment fund JAB. And now Jean-Bernard Levy last, but not least, after 12 years, will be leaving the board. He's brought his experience as a CEO as Chairman of the Committee of Compensations. He has made palatable the compensation regulations in the area of banking. Today, the Board has decided that Jean-Bernard Levy is going to become a sensor up until the general assembly of 2023. Over and beyond the traditional role of sensor, the Board wants Jean-Bernard levy to keep a close eye on how the bank builds its strategy for the energy transition and how it's going to be implemented. And I should like to thank Jean-Bernard for accepting this new assignment. Now to find a new Board member. And after a selection process started in 2019 and steered by the nomination committee with the support of a consulting partner. The Board is suggesting Mr. Henri Poupart-Lafarge, he is President and General Director of large industrial French companies -- for a large French international company, Alstom. Like the other Board members, he will be appointed as independent Board member. So the 3 candidates, Mr. Poupart-Lafarge, Ms. and Mr. [indiscernible] will be introducing themselves via a presentation that's recorded a few days.

Dear, shareholders, ladies and gentleman, dear Board members. It's a great honor for me to be presenting my application to become Board member of Société Générale. My name is Henri Poupart-Lafarge. I'm Chairman and CEO of Alstom Group. I spent most of my career inside that group in finance and chairing the group in general. Since we bought up Bombardier, we are leaders in green and smart mobility. I am not an expert in the area of banking, but I would like to bring to the Board all of my experience as a client of banks and a client of Société Générale in general, especially when I was CFO of Alstom, but also as a Director of a large group that operates in 5 continents and all the big markets. So I'll be bringing to the Board all of my experience and everything that I've learned in the field.

Dear shareholders of Société Générale, dear board members, my name is . I'm one of the directors of Société Générale Luxembourg, a leader in Luxembourg. And I am certified by the ECB. And today, I would like to become a Board member of Société Générale along with [indiscernible], my deputy. And I will be able to bring my expertise to the table in terms of banking, but a very diversified knowledge both in France and abroad, and a very good understanding and knowledge of how Société Générale operates. Also a lot of knowledge in compliance in governance. I know also about the customer expectations and regulator expectations. I'm also very aware of the human resources issues, responsibility, social issues, environmental issues, and I will also bring a unique link to ESA, the only associations that represents present and past employee shareholders since 1987. Since then, this association has always supported the group in its -- in difficult times. Over the last few months, I've had some discussions with some of you. There were very fruitful and useful discussions. So thank you very much for that. It has allowed me to strengthen my beliefs. I am a women. I am a manager. I will rely on a lot of people, and I will be fully committed to developing Société Générale and in building a strategy for the future for Société Générale.

Dear shareholders, I am delighted to have this opportunity to talk to you today. 25 years ago, I started out practice at Société Générale in retail Banking in France. After that, I worked in market activities, the general -- the Société Générale and in audit, and in Corporate Banking. I'm currently in charge of larger accounts. And I've got a lot of experience that allows me to understand the issues at play in banking. Over the last 25 years, I have managed many a team. I celebrated collective successes I was pained by the crisis that we went through at Société Générale. And this debenture over the last 25 years means that I have a real commitment to Société Générale. And this is why with decided to apply for this position. I want to serve Société Générale and its employees. I want to do it in an independent manner. I want to discuss things over to consult with all the stakeholders. Société Générale is a large bank with huge franchises. It is robust. It has social and environmental commitments, which I see as a huge opportunity. I believe that Société Générale should remain free, independent. And for me, Société Générale is more than just the company. It is really very close to my heart. The employees voted for us. We came first. And I would like you today to validate that choice.

Okay. Well, thank you very much to all of you. After the vote, the lineup of the Board will keep the same gender with 42% of women. Mr. Henri Poupart-Lafarge and his arrival is in keeping with the guidelines of the Board now after the resolutions, the Board will have 11 independent board members out of the 12 that are elected by the general assembly. One board member that represents the employee shareholders also elected by the general assembly and 2 Board members elected by employees. Now I'm going to hand over to Jean-Bernard Levy, Chairman of the Remuneration Compensation Committee.

Ladies and gentlemen, dear shareholders, like every year, but the last time I'm going to be talking about the principles and the compensation policy. Now this policy is particularly important for regulated individuals. It sets the compensation of board members. These issues need to go through the compensation committee first. In 2020, that committee came together 9x in keeping with the law, the general assembly needs to approve the compensation policy for 2021 and must also vote for the variable aspect of compensations for 2020. Now the compensation policy for the group falls under a huge amount of regulation, and the Board has made sure that its policy is fully compliant with these regulations. Like each year, the compensation policy is supervised by the ECB and the ECPR as well as by our internal control teams. These controls have led to the conclusion that we're fully compliant. Now let's move on to say-on-pay. Its main characteristics remain unchanged compared to 2020. Now affordable members of Société Générale, their general compensation stands at EUR 1.7 million. It remains the same, although the number of board members has gone up from EUR 12 million to EUR 13 million, with the election of a new Board member representing employee shareholders. The Chairman and the General Director, do not receive any compensation as Board members. For the President of the Board, he receives a fixed compensation that remains the same as 2018 plus his accommodation in Paris to become -- to guarantee the independence in the execution of his term, the Chairman receives no variable compensation, no securities nor any compensation that is tied to the bank's performance. The compensation policy of the General Director and appointed general directors, is based on fixed and variable aspects. The fixed compensation of executives remains the same compared to 2020. The variable aspects are based on financial and qualitative objectives. To take into account the new organization that was decided in August 2020. And there is now a way of financial criteria's and group indicators and indicators that have been enacted. So for 2021 onwards, there will be for 60% for the group and 40% on the specific scope of either the General Director or the Deputy General Directors. This weighing for the assessment of the qualitative performance has been adapted to be fit for purpose. Over and beyond that, nothing else has been changed. The structure and the characteristic of profit sharing remains the same. And profit sharing is capped as 2x fixed compensation. General Directors have a compensation for the cool off period of 6 months. They have a severance pay that is only paid out when they are forced to leave the group. And they have an additional pension regime that is tied to performance conditions. And [indiscernible] does not enjoy any additional retirement privileges from Société Générale. Now all of this needs to be approved by the general assembly. The compensation of EUR 1.3 million that remains the same since 2014 and a variable compensation that has dropped by 65% since last year. It was set by taking into account the fact that 50% of the compensation was abandoned. As well as the solidity efforts made by Société Générale. This program is there to help associations and charities that are in frontline in the pandemic and we are also funding similar initiatives led by governments. They also enjoy our profit sharing for 2020. That remains the same compared to last year. Overall, the compensation of Frederic Oudea is underneath the average of CEOs in the CAC-40 and European banks. Now regarding the Deputy General Directors, the variable aspects are the same has decreased by 2/3 compared to the previous year. And there again, taking into account the 50% that I mentioned earlier. Profit sharing on the long-term remain the same for Ms. Diony Lebot and Mr. Philippe Heim. The term of Philippe Heim and Severin Cabannes ended on the 3rd of August and December 31, 2020. And neither of them have received any severance pay or any compensation. Severin Cabannes did not receive long-term profit sharing and he will be retiring at the end of 2021. And Philippe Heim for 2020 has only received the proportionate share of his fixed compensation. Now in terms of equity ratio in keeping with the pack to law, the report on compensation of Directors contains information on the evolution of compensation to -- of directors and needs to be compared to the average compensation of employees of the company. You have this here on the graph on the screen. Now as you can see, the ratio is going down structurally over the last 5 years. So the ratio without the giving up the 50% should be at 57%. But right now, it's only at 48%. The ratio compared to average compensation went from 47% in 2019 to 36% in 2020 or 42%, if you take into account 50%. Last compensation committee ensured the review of compensations for regulated position subject to the CRD4 directive. In 2020, we identified 781 risk takers. The average amount of variable compensation for the regulated population, excluding corporate offices, is down by 9% as compared to 2019. The average amount of total compensation excluding corporate officers and members of the Board is down in 2020 by 6%. Let me draw your attention to the fact that these amounts are different from those that were submitted to your consultative resolution 15, than amounts paid out in 2020 and that attributed amounts paid out in 2020. That does not accurately reflect the year's performance given the important portion of deferred variable compensation. I would like to conclude without expressing my thanks to my colleagues from the Board, general management, of course, to all shareholders for their trust since today, we're coming to the end of my third term as a Board member. It's been 12 years since 2009 that I have been a member of the Board. As a result, my function as Chairman of the compensation committee will be taken over by Jerome Contamine. The Board asked me to accompany for 2 years as sensor, especially to help it when it comes to a climate strategy. It is a pleasure and acknowledgment that I accepted this mission. And thank you for your attention.

Thank you, Jean Bernard for that last presentation. As you said, next year, we will have Jerome Contamine, who was appointed as Chairman of the compensation Committee. Now we have a short video on the group's solidarity initiatives in connection with the corporate crisis. [Presentation]

Thank you. Let us now move to a discussion, and I'll turn to Patrick Suet for your questions. We've received 7 written questions. Patrick.

Yes, Mr. Chair, there were 7 written questions. 5 from individual shareholders, Mr. and from 2 associations, The Forum for Responsible Investments and the Friends of the Earth. All answers are available on the General Meeting's website and essential elements in the replies were restated in the strategic presentations given. Regarding ESG more, particularly, though many responses can be found in the integrated report place online on the Société Générale website today. We decided to go a little bit further. And to answer the Friends of the Earth regarding the coal and hydro-carbon policy in the group. And Diony Lebot will tell us more about that.

Well, we do have a policy when it comes to hydrocarbons. That's proactive with our clients. And determined with respect to our portfolio alignment in April 2021. Along with our mission statement and our leadership in the energy transition. As a founding member, we joined the net-zero banking alliance. We are convinced of the driving of this key role to be played by banks and the coalitions have a greater impact and to make significant progress. By joining the net-Zero Banking alliance, Société Générale pledges to proactively guide its financing portfolio aligned to road maps targeted for carbon neutrality by 2050, together with restriction, of climate global warming by 1.5 degrees by the year 2100. Société Générale has long been committed to gradually align all of its portfolios in tune with the price agreements with this new commitment, the bank would accelerate its efforts. Secondly, we are committed to aligning the portfolios that meet the most as a matter of priority and to define alignment objectives for 2030. It has already started to set precise goals for aligning all its portfolios by prioritizing the most -- the lowest carbon sectors. Since 2011, the group has been carrying out a progressive policy of moving away from coal, a zero-reduction goal to exposure to carbon with fossil fuels by 2030 for companies holding coal assets in the EU and in the OECD and 2040 elsewhere. Société Générale was 1 of the first banks in the world to announce a concrete short-term measurable goal of reducing its portfolio linked to mining oil and gas. A decline of 10% before 2025. The group will increase its objectives to reflect its new commitment in view of these net-zero alliance. At the same time, Société Générale plans to play a key role in the economic transition. At the end of the first quarter 2021, Société Générale reached 80% of its goal of contributing to raise EUR 120 billion from 2019 to 2023. Société Générale is a pioneer and leader in the sector of renewable energies. We are #1 in the world in advisory and #2 in the world in financing renewable energies. I will now give the floor to Patrick Suet for questions over the Internet.

Yes. Thank you, Jean. As the Chairman said at the start, you can put your questions over the Internet. Now this session is now closed. We received several questions. First of all, 2 questions for Frederic Oudea. I will read them out to make it easier. The first semester, Mr. , I'll read out to . You took over 10 years to absorb the different crisis and major difficulties that were internal. Excessive risk taking bring on disappointing results over the years. Goals that were not met, and this has been negative for the group's image. Don't you think it would have been better to take more radical decisions much more earlier so as to have more dynamic results and to get rid of the difficulties facing the group over this long period. For the time being, you've all been reacting to market pressures and your strategy, can it be credible over the long term. Let me read the second question straight away from the forum for responsible investments. How do you manage at the group level the social impacts linked to the massive development of working from home since the start of the pandemic, especially when it comes to managing social risks, and your participation expenses, satisfaction service, both consumers and the choice of working from home by employees and so on. So this the question is drafted.

The question for Mr. . Over the past 10 years, I believe that we have seen mainly external crisis, the financial crisis in 2018 -- 2008, the euro crisis. This is an exceptional pandemic. All throughout the past 10 years have carried out the digital transformation of the group. Over the past 10 years, banks have disappeared. Other banks were amongst the biggest in the world. And they became domestic retail banks. And we can wonder about the long-term future, given the disruptions linked to digital technology. What we achieved was to preserve expertise and to serve clients, all based on customer simplicity, transforming activities that were sometimes transactional in the way they were managed to move towards activities that we're focused on added value. The way we quickly were able to adapt to this pandemic reflects this great stronger -- these stronger initiatives, what are we able to do. And this is good for the future and very few banks have been able to do this is the fact of building new alternative business models. I'm thinking of Boursorama. In 2013, 2014, it was 300,000 customers. Today, but Boursorama, 2.8 million clients will be 4.5 million soon it will be 1 of the big banks in France, in the world of tomorrow. And organic growth that is patient that we're able to nourish. I could take mobility to at ALD in 2013, probably about the same 400,000 vehicles, now over 1.3 million. In the mobility sector, which we know will be transformed because the use of cars is changing. So there are these crises. We're able, and this is we're in banking to be disrupted, accepting to create businesses starting from scratch, but with strong potential. When I take stock of Société Générale today, franchisees were never strong. Never was a balance sheet that robust. Our capital, our liquidity and risk management has turned out to be quite good. Yes, like all players in this sector, we -- in 2020, saw market dislocation. And it is true we had to absorb at least we didn't consider the cancellation of dividend announced in our investment products. You have so seen at the start of the year, we haven't seen any significant projects that would impact the major banks. So it must be humble. Our track record is great. Of course, as also mentioned, remediation and compliance because in 2021, I hope that it will be the year when we can conclude a certain number of remediations on compliance cases that they back 10 or 15 years ago, but that called for a lot of effort on our part. But you're right, though, because now you must deliver and be disciplined that all the projects we presented to you throughout this meeting, that, of course, are extremely promising in terms of value creation and would enable Société Générale to be sustainably profitable in an environment that remains complicated for European banks as we know. Let's now move on to the second question that is totally unrelated, working from home and employee management. It is true. You know that working from home around the world, it was almost imposed. When I say around the world. I'm speaking to about developed countries also in places like India, we have some 10,000 colleagues working from home, given the pandemic. In the past, it is only in Africa given the existing IT infrastructure is more complicated to switch to working from home. Good news, if I may say so, is that the bank was able to continue to work very quickly in this new mode of separately serving customers and managing this exceptional crisis. In the crisis, of course, we had to manage working from home that was imposed. It is true that this crisis, together with all the challenges around the pandemic. Weighing on people, created a certain distance from work. We pay great attention to that. First of all, we had a regular surveys with our colleagues over what we call Pulse surveys, global surveys to find out how things were working. A lot of communication, training and support. As regard cycle, medical, social risks, to serve our colleagues. I believe that we were a responsible bank and all of our employees noted that despite all the constraints. It is true that we are now entering a new phase, or I hope so, thanks to vaccination and the fact that you'll be able to leave the pandemic behind us. But we plan to shift to a different way of working. We thought about new ways of working together with employees, over 800 employees to partly different working groups along with young employees who took part in the think tanks. In many entities in more than 20 countries in France, in particular. We now have outlooks for organized working from home. It's something that is desired. That will be structured. We signed an agreement with our trade unions seeking to maintain. Nevertheless, a regular presence on site. We think that is important. And our employees also want to return to the premises that is part of a social contract, a sense of belonging. But we are convinced that we can strike the right balance without losing in terms of productivity and given the image of being an attractive employer for young employees, in particular, who probably think differently. When it comes to the relationships with companies. And we hope in a world of competition for tenants, we hope that we'll be an attractive employer. So I'll now give the floor to Sebastian. I think Patrick, there is a question. On the networks in France?

Yes, I can read it out. A question from Mr. from the Consultative Shareholders Committee. How will you support your clients and coming closer to Credit du Nord and Société Générale networks to benefit from the best services?

Thank you, Patrick. Clients are at the heart of this project. It's a merger plan. Intended to improve our profitability in retail banking, but it is also a project that is basically intended to improve our offer. For Société Générale and Credit du Nord client -- for Creidt du Nord clients, they will have access to a digital quality, a greater offer of digital services than what they have today. As Credit du Nord clients as I said before, they'll have -- had access of 650 branches in 2023, 1,500 branches through our brands. Corporate clients at Credit du Nord tomorrow will have access to and outlook services that will be more comprehensive and with the financial cloud of Société Général. Société Général clients tomorrow with this merger in the models we are building will basically still have quality of digital services that will be even better because we will focus our investments on a single information system, but they'll have more as of the Société Général clients because we'll adapt the model, using the strength of Credit du Nord that we will deploy for all clients. I spoke about short decision-making circuits, and that's fundamental for Société Général and Credit du Nord clients, if they have questions or needs. They want to have a quick answers. To give quick answers. You need an organization that allows you to take decisions quickly, and that is what we want to build with this merger plan. The second example, we have 400,000 professional clients. And that is the strength at both banks. At Credit du Nord, today, there is relational model for professionals, that's different. Each time for a professional client, we have 1 adviser who can handle all their needs. For professional clients, be it professional needs or in their private life. One contact point, 360 degrees in terms of processing. That model allows us standard on the French market, and that's the matter we'll adopt for all our professional customers, including professional clients of Société Général who with this merger will have, not less quality, but more quality of service. So on top of the model, in your question, Mr. Luma, you have concrete support at the time of the merger. It's not the straightaway. It's in 2023 that this merger will take place concretely. But clearly, we'll have to support clients from Credit du Nord in particular. Because, for example, they will have to change their banking information. The banking details, we can do that. We have the experience. We've already done so. Credit du Nord did so when the Société Marseillaise de Crédit was acquired. Of course, that will call for a lot of preparation, we are getting ready for that. It means you must be close to our clients. You must have specific supporting mechanisms. Guaranteeing the stability of the customers' contacts, including during the merger to help them, be close to them and to be very much neutral in this merger for our Credit du Nord clients. That is our goal, and it is also our experience within the Credit du Nord group, so that's it. This is a merger with all the advantages of merger in terms of synergy, but it goes further than that. It's a commercial project to strengthen value. And once again, it would impact all clients at Société Générale and Credit du Nord.

Just to remind you that all the answers will be available on the Société Générale website. We're now going to move on to the resolutions, and I'm going to hand over to Patrick. Yes, I'm just going to remind you what the resolutions are all about. The full wording of the resolutions that can be found in the convening notice, you can either vote by mail or online or by proxy. The deadline for Internet votes were 17th of May 2021, 2:00 o'clock and by May 16. And for the proxy vote as well is in the notice -- in the convening notice. So the quorum is of 58.556%. In other words, 482,200 -- sorry, 482,205,384 shares that are present or represented out of a total of 823,480,705. So first resolution, approval of the annual consolidated accounts for the 2020 financial year. The resolution is approved at 99.54%. Second resolution, approval of the annual accounts for the 2020 financial year. It was approved by 99.53%. Third, resolution allocation of 2020 income setting of the dividend of EUR 0.55 per share. That resolution was adopted by 98.65%. Fourth resolution, approval of the statutory auditors' report on the related party agreements referred to in article L-225, that resolution was adopted at 99.69%. Fifth, resolution approval of the compensation proceed of the Chairman of the Board of Directors. That resolution was adopted at 94.95%. Resolution #6, approval of the compensation policy of the Chief Executive Officer and the Deputy Chief Executive Officer, Jean-Bernard Levy talked about it earlier, that was adopted by 96.55%. Resolution #7, approval of the compensation policy of directors. The resolution is adopted at 96.6%. Resolution #8, approval of the information relating to the compensation of each Corporate Officer, Jean-Bernard Levy talked about this earlier, and that is approved 97.96%. Resolution #9. Now as for the export side of things, approval on the components composing the remuneration and benefits of any kind paid during rewarded with Lorenzo Bini Smaghi adopted 94.79%. Resolution #10, approval of the components compared to total remuneration and benefits to Mr. Frederic Oudea adopted by 85.05% of you. Still approval of the remuneration of Philippe Aymerich adopted or approved 85.42% of votes. Resolution #12, it's the compensation for Mr. Severin Cabannes, adopted 85.41%. Resolution #13, here, it's the remuneration with Philippe Heim, approved 85.17%. Resolution #14 that's for the compensation export of Ms. Diony Lebot, 85.38%, so approved. Resolution #15. Advisory opinion on compensation paid in 2020 to regulated persons in 2020, 781 people are covered, and that is adopted at 98.78%. Then resolution #16, renewal of Ms. Alexandra Schaapveld, that resolution is approved 98.23%. 17 -- Resolution #16, renewal of Mr. William Connelly's mandate as Director, approved 98.41%. Now 18th resolution, renewal of Ms. Lubomira Rochet as Director, adopted with 98.48% of votes. Then resolution #19 appointment of Henri Poupart-Lafarge as Director. That's adopted -- approved rather at 98.74%. Then resolution 20 and 21 are going to be presented together since only the resolution that will receive the most votes will be adopted between Ms. and Ms. . Resolution 21 is adopted with 83% of votes. So for Ms. [indiscernible]. 22nd Resolution. Authorization granted to the Board of Directors to purchase ordinary shares of the company up to a little bit of 5% of the share capital. That's approved with 98.49%. And 23rd resolution powers to perform formalities, and that's approved at 99.71%.

Thank you very much, Patrick. Thank you, ladies and gentlemen, for showing your trust vis-à-vis what the Board is doing. And we hope that we can see you on the 17th of May 2022. We hope that we will be all it . The question didn't come up, but I'm going to give you the answer nonetheless. So thank you very much, and have a pleasant evening. [Statements in English on this transcript were spoken by an interpreter present on the live call.]