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

Ladies and gentlemen, welcome to the Société Générale Second Quarter 2026 Results Conference Call. I will now hand over to Mr. Slavomir Krupa, Chief Executive Officer. Sir, please go ahead.

Thank you. Good morning, everyone, and thank you for joining us today. Leo and I are delighted to present to you another strong set of results. They demonstrate the strength of our execution as we enter into the final stage of our current strategic roadmap. Our high-quality financial performance during the first half of 2026 puts us ahead of our 2026 annual targets and results in a record net income for the group of EUR 3.5 billion. In light of this performance, we are pleased to announce the launch of a EUR 1.5 billion extraordinary share buyback as well as an interim dividend for the first half of 2026 of EUR 0.75 per share, EUR 0.75, up plus 23% versus last year. These strong results delivered in a highly uncertain and volatile environment demonstrate the success of our transformation over the past 3 years. Today, we are much more efficient, focused and profitable with a well-diversified business mix. The numbers illustrate this. Our revenues are up by plus 2.4% versus H1 '25 on a reported basis. This is in line with our 2026 annual guidance of revenue growth of more than plus 2%. Our actions on costs are paying off -- continue to pay off, driving greater efficiency with operating expenses down minus 5% versus H1 '25. It far exceeds our original 2026 target of around a 3% reduction and delivers substantial value creation with a 7.3 percentage points of positive jaws. This leads logically to a cost/income ratio of 59.7%, which is in line with our year-end target of a cost/income ratio below 60%. With a cost of risk of 26 basis points, we remain at the low end of our guidance range, demonstrating both the prudent risk management and the strong quality of our credit portfolio. All of this translates into a group ROTE of 12% in H1 '26, well above our full year target of more than 10%. But this merely represents a base camp for us in what is an ongoing climb upwards. Ultimately, our capital remains strong with a CET1 ratio standing at 13.2% after taking into account the extraordinary share buyback of EUR 1.5 billion. Given these strong results, we are upgrading our annual targets on costs and ROTE. We now expect for 2026 a cost reduction of around minus 4% compared with around minus 3% before. And a ROTE around 11% in 2026 versus above 10% before. Now let me hand over to Leo, who will go through our Q2 '26 performance. All yours, Leo.

Thank you, Slavomir, and good morning, everyone. Let's now turn to our financial performance for the quarter. The group continued its strong momentum, explained by a solid revenue growth of 4.5% versus Q2 '25, notably driven by solid commercial performance in French Retail Banking and Global Banking and Investor Solutions, as we will see later. At constant perimeter and exchange rates, revenue growth stands at 6.1% versus Q2 '25. Costs, on the other hand, are substantially lower by minus 4.1% versus Q2 '25, confirming our strong cost discipline. This translates into further improvement in our operational leverage with a cost/income ratio of 58.6% in Q2 '26 or down by more than 5 percentage points versus Q2 '25. Asset quality-wise, the cost of risk continues to be contained at 27 basis points within the 25 to 30 basis points guidance range. This positive expansion of jaws, together with a contained cost of risk explains the record quarterly group net income of EUR 1.8 billion, which translates into return on tangible equity of 12.2% versus 9.7% in Q2 '25. Moving on to Slide 7. We can see the key drivers behind the revenue growth in Q2 '26. The group recorded a strong 4.5% increase in reported revenues. First item on the bridge reflects the impact of disposals with an overall effect of minus EUR 70 million. The impact is mainly related to the disposals of activities in Cameroon, Mauritania, Guinea Conakry and Equatorial Guinea. At constant perimeter and exchange rates, the evolution of group revenues is even higher at 6.1% versus Q2 '25. From a business perspective, revenues in French Retail, Private Banking and Insurance increased by 12.6% on a reported basis, mainly driven by a strong performance of net interest income, which grew by 14.9%. Revenues at Global Banking and Investor Solutions continued to progress this quarter, an increase of 2.7% versus Q2 '25 or 4% at constant perimeter and exchange rates. Revenues in Mobility, International Retail Banking and Financial Services decreased by minus 4.9% versus Q2 '25 at constant perimeter and exchange rates. As a result of lower revenues in Ayvens, driven by lower used car sales results, which are still under normalization as guided. Finally, in Corporate Center, revenues improved by EUR 112 million, notably in the back of an optimized management of the excess liquidity. We have repeatedly highlighted in recent quarters, rigorous cost discipline is a cornerstone of our 2026 strategic roadmap. And Q2 '26 once again demonstrates our ability to execute on this commitment. Our costs are down by 4.1% versus Q2 '25 on a reported basis and by 2.7% at constant perimeter and exchange rate, primarily supported by structural savings. This decrease is driven by disposals, which explain a variation of EUR 41 million by lower transformation charges as guided for minus EUR 8 million. We have a higher contribution from charges related to the global employee share ownership plan launched in June 2026 for an amount of EUR 127 million versus EUR 101 million in Q2 '25, which, in any case, it's important to remember, it's an item that has no impact on the distributable net income. An update of IFRIC 21 tax estimate includes a reduction of EUR 36 million of costs. And then we have a net cost decrease of EUR 117 million, confirming the sustainability of our cost savings efforts quarter after quarter. As a result, group's operating leverage is improving, as you can see on the right-hand side of the slide. Cost/income ratio is falling by more than 5 percentage points from 63.8% in Q2 '25 to the current 58.6% in Q2 '26, which is already, by the way, below, our below 60% 2026 target. One final highlight in this slide relates to the fact that all pillars are within their end-of-the-year targets. Moving now to cost of risk on Slide 9. Cost of risk for the quarter stands at 27 basis points, and it's fully in line with our target range between 25 and 30 basis points for the year. Business-wise, the cost of risk stands at 38 basis points for RPBI, 3 for GBIS and 43 for MIBS. Both RPBI and MIBS probably accounted for some generic overlays in S1, S2 provisions, while GBIS had a strong risk management this quarter without any significant defaults. Cost of risk this quarter mainly comprises a Stage 3 provisions, which account for EUR 405 million and are slightly up versus Q2 '25. Stage 1 and Stage 2 provisions, we had limited reversal of EUR 15 million, which included overlays offset by some reversals, considering our prudent approach in this uncertain and complex environment. As a result, total outstanding Stage 1 and Stage 2 provisions remained stable, a high level of EUR 2.9 billion or 2 years of cost of risk. NPL ratio stands at 2.7% in Q2 '26, down versus both last quarter and last year. And finally, net coverage ratio remained high at 83% in Q2, slightly up versus 82% in Q1 '26. Now turn onto Slide 10, where we can see the evolution of our strong capital position. The group's CET1 ratio stands at 13.2% at the end of Q2 '26, representing a strong buffer over MDA of around 290 basis points. This ratio includes 39 basis points impact from the extraordinary share buyback of EUR 1.5 billion as announced previously by Slavomir. Before adjusting the extraordinary share buyback, the CET1 ratio is slightly up compared to Q1 '26. Going through the bridge in the slide from left to right, returned earnings contributed to an increase of 19 basis points after accruing a 50% dividend distribution pay-out. RWA organic growth represented an impact of minus 8 basis points. And all in all, the recent disposal of SG Cameroun regulatory model changes and other inputs contributed to a net decrease of 6 basis points. In addition, as you can see at the bottom right-hand side of the slide, all other capital ratios are comfortably above the regulatory requirements. On Slide 11, liquidity reserves remain high at EUR 339 billion in Q2 '26, the balanced mix between cash and securities. The liquidity profile of the group remains strong with sound liquidity ratios. The LCR stands at 146% this quarter, while the NSFR was 115%, both well above regulatory requirements and in line with our steering targets. The 2026 long-term funding program is already almost completed with 96% execution rate, driven by a good access to liquidity in all currencies on the back of strong long-term ratings from all agencies. The deposit base remains strong, granular and highly diversified. And overall loan-to-depo ratio stands at 76% at group level. On Slide 12, we show a summary of the P&L for the group for Q2 '26, which we will cover in more detail in the following slides. Let's move now to the individual businesses, starting with SG network, Private Banking and Insurance. At SG network, Q2 '26 loans outstanding fell by 2% versus Q2 '25 and are stable compared to Q1 '26. Outstanding deposits fell by 3% versus Q2 '25 or 1% versus Q1 '26 as sight deposits are up and term deposits are down. This took place within the context of continued strong growth of retail savings and investment products, which contributed to the continued solid momentum in overall asset gathering. On the one side, AUMs in private banking reached a record high of EUR 145 billion at the end of June '26, increasing by 10% versus Q2 '25. On the other side, life insurance outstanding reached a record level of EUR 167 billion, increasing by 11% versus Q2 '25. Moving on to BoursoBank. Commercial performance remains very strong within the asset gathering and administration space. which continued to grow steadily, reaching EUR 84 billion at the end of June. This represents a 16% increase versus Q2 '25, helped by the continued strong increase in deposits of 9% versus the same period last year. Similarly, life insurance outstandings increased by 20% versus Q2 '25, with a high proportion, 51% of unit-linked products. BoursoBank also saw a record number of market orders at EUR 3.7 million, representing an increase of 25% compared to Q2 '25. On the lending side, total loans outstandings are up by 8% versus Q2 '25. BoursoBank serves now around 9.1 million clients after onboarding more than 280,000 new clients in Q2 '26, while the churn rate remains below 4%. In Q2 '26, BoursoBank's net income stands at EUR 84 million. This is EUR 176 million for the first half of the year, or well on track to reach its 2026 target of more than EUR 300 million. Finally, the RONE for BoursoBank stood at 60.7%, strong proof of the profitability of this model. Looking at the whole pillar on Slide 16. French Retail, Private Banking and Insurance posted a strong increase in revenues of 12.6% versus Q2 '25, which included a 14.9% growth in NII and 11.3% growth in fees. At the same time, operating expenses fell by minus 4.1% from Q2 '25. As a result, the cost/income ratio stood at 55.5% in Q2 '26, which represents a substantial improvement of almost 10 percentage points versus Q2 '25. All in all, net income lands at EUR 674 million for the quarter, up 38% versus Q2 '25 with RONE at 14.7% versus 11.2% last year. Moving on to Global Markets and Investor Services on Slide 17. Global Markets revenues declined slightly by 1% versus Q2 '25 compared to a high base case in Q2 last year, and we benefited from strong client activity following the announcement of U.S. tariffs. Equities posted a strong quarter with revenues up 5.5% versus Q2 '25, supported by sound commercial activity. Derivatives, financing and prime services were the key drivers for this good performance. In fixed income and currencies, revenues declined by 11% versus Q2 '25. As we saw in previous quarters, we're still affected by unfavorable market conditions for our business mix, which, as you know, is mostly exposed to Europe and rates. Lastly, revenues in Security Services grew by 3.9% versus Q2 '25 on the back of growth in fee income and a stronger net interest income performance. Let's turn to Slide 18 on the evolution of Financing & Advisory. Revenues increased by 8.9% versus Q2 '25 on the back of a strong business dynamics. Revenues in Global Banking & Advisory grew by 9.7% versus Q2 '25, driven by solid origination and strong client activity. By sectors, growth was supported by good momentum in energy, infrastructure and commodities trade finance. We also saw a strong rebound in investment banking on the back of DCM and ECM revenues, which were driven by landmark transactions and spreading across different sectors and geographies. Lastly, in Transaction Banking and Payment Services, revenues increased by 6.7% versus Q2 '25. Commercial activity was strong, driving growth in corporate deposits across all regions. Now moving to Slide 19 for the overall view on GBIS. At the pillar level, revenues grew by 2.7% versus Q2 '25. One more quarter, we maintained disciplined cost management that can be seen through the reduction of operating expenses by minus 2.7% versus Q2 '25. The increase of revenues and the reduction of costs explain the cost/income ratio of 58.4% in Q2 '26, 3.2 percentage points lower than the same ratio in Q2 '25. At the same time, the cost of risk was particularly low at 3 basis points in Q2 '26, which compares with 12 last quarter. All in all, GBIS posted a net income of EUR 867 million in Q2 '26, up by 15.6% versus Q2 '25 and resulting into a very high RONE of 19.9%. Turning now to International Retail Banking in Slide 20. The strong commercial momentum continued in Europe, supported by both KB in the Czech Republic and BRD in Romania, where loans and deposits increased by 9% each versus Q2 '25 at constant perimeter and FX. This translates into a 3% revenue increase versus Q2 '25 despite lower spreads this quarter. In Africa, the 2% growth in revenue is in line with the lending dynamic, driven by higher NII in core countries and the deposit evolution, which was also up by 3% year-on-year at constant perimeter and FX. Focusing on Mobility and Financial Services in Slide 21. The decrease in revenues this quarter, minus 10% compared to last year comes essentially from Ayvens. On the one hand, we observed a high level of margins at 610 basis points in Q2 '26 or up 60 basis points versus Q2 '25, thanks to good dynamics in both leasing and services. These were more than balanced by lower results from used car sales as the secondary market is still normalizing as was well anticipated and guided. The average result per unit in the quarter was around EUR 330 within the range of EUR 200 to EUR 600 that Ayvens guided for the full year 2026. The cost/income already stands at 50.3% and the ROTE at 13.4%, both in line with targets for the year. Finally, looking at consumer finance performance, margins continued to improve, translating into an NII growth of 9% versus Q2 '25. This quarter, we have a base effect to a positive revaluation of one asset back in Q2 '25, leading to flatten revenues overall this quarter. In Slide 22, MIBS overall shows the same level of operational efficiency as last year, reflecting the combination of lower revenues, minus 5%, which were netted through strict cost discipline, reflected in a reduction of cost of minus 4%, both at constant perimeter and FX versus Q2 '25. At 52% in Q2 '26, the cost/income ratio is below the target of 55% for the full year. Cost of risk this quarter stood at 43 basis points, very similar to the 40 basis points that we had in Q1 '26. MIBS posted a net income of EUR 360 million, down by 8.5% versus Q2 '25 at constant perimeter and exchange rates, but still translating into a good level of profitability with RONE at 13.4%. To conclude with the quarterly results, let's move on quickly to Slide 23 with the Corporate Center. Similar to previous quarters, revenues improved versus Q2 '25, notably thanks to continued efficient management of liquidity and also positive revaluations of liabilities accounted at fair value through P&L. Operating expenses include EUR 127 million related to the group employee share ownership program, which, as a reminder, is a non-cash item and therefore, does not affect neither CET1 nor shareholder distribution. Let me now give back the floor to Slavomir.

Thank you, Leo. And turning now to sustainable development. As the energy transition continues to reshape the economy, we believe our deep sector expertise, along with our long-standing client relationships, strongly position us to support the technologies and infrastructure that will decarbonize the economy. For instance, this includes emerging champions such as Fervo Energy in the U.S. who are specializing in next-generation low-carbon energy, who also supporting lower carbon mobility as well as carbon capture and storage infrastructure. And beyond climate, we further strengthened our ambition on nature-based solutions by launching a new partnership with Ardian this quarter. We also renewed our commitments through Act for Nature International for the 2026-2028 period. Together, these initiatives demonstrate how we continue to support our clients' transition and adaptation strategies while developing the sustainable solutions of tomorrow. So to summarize, we are moving forward, making progress and upgrading our future targets as a result of our building momentum. The conviction behind our actions continues to pay off quarter after quarter. And I can assure you that we will continue to forge ahead with determination never letting up. We look forward to seeing you again on the 21st of September at our Capital Markets Day. Thank you very much, and we will now open the Q&A session and kindly remind everyone to limit themselves to 2 questions per person. The floor is yours.

[Operator Instructions] The first question comes from Tarik El Mejjad of Bank of America.

Two questions, please. First, I mean, you had a strong cost cutting in the quarter and the previous quarters, massive Jaws and growth driven by French retail and financing advisory. Is that a preview of the CMD to come in September? Should we expect you to be amongst those handful of banks in Europe that cut costs in absolute terms rather than guide for jaws, cost of RWAs or other types of KPIs to appreciate the cost efforts. Second question on your equities business. I mean, it looks like you were not invited to the equities party this quarter. I mean, joke about -- can you explain the lower perf versus European banks, let alone the U.S. So when you were CEO, I remember in charge of CIB, you conducted this exercise to de-risk the derivatives business. I mean you worked well to reduce the vol at the lower to downside and to the -- and by preserving the upside. But it looks like from this quarter, you cut too much of the upside. Would you be ready to increase the risk appetite if you see a profitable super cycle in equities business coming in the future years?

Thank you, Tarik. Thanks for your question. So listen, thanks for the first one. I'm just going to write that up into the slides and we're done. So all jokes aside and without saying anything in advance, but let me put it this way. We are certainly very committed conceptually and I would say, from a management experience and vision perspective to have as much as possible in our own hands. So to rely as much as possible on things that we have control over and that allow us to basically improve the company's performance across the board, somewhat regardless of what's happening outside, right? Obviously, market conditions influence where we're going to be, but we want to focus on what we can manage. And so for sure, if you see signs of that in our 3-year performance or in this particular quarter, you should feel like this is a feature of what we're trying to do, and we believe that there's no reason to change that, right? So more in September. Since you had this funny line about the -- not being invited to the party, so let me follow through. We were invited to the party, but we didn't drink so much alcohol. So that's the joke line. More seriously, you are right. There is a strategic preference and has been for the last 5 years since I was back then the CEO of CIB, strategic preference for stability and profitability over, let's say, the particular opportunity in one particular quarter. This -- and you know that I know, Tarik, that you know, this does not prevent us from making -- remember the initial range that I gave, which was 4.5% to something I don't even remember, we're making up to EUR 1.5 billion more than 5 years ago, right? So this strategic stance didn't prevent us from doing better from actually growing and from keeping a high level of revenues close to our highest level historically, especially at constant business model. And clearly, from a guidance perspective, I can reiterate what I already said last quarter that we're aiming to be above the top of the range, above the EUR 5.7 (billion) top of the range that we have for this year. We're very confident about this and nothing's changed. So in all likelihood, we will be at a high level of revenue generation. And may I remind you, at a very high level of RONE for the division GM and GMIS, which includes the small contribution from SGSS, Security Services, we're talking for this quarter of about a 25% RONE, which is, as you know, among the highest in the industry. So that's the strategic stance. That's the strategic mix that we look for and that we execute against, if you will. Now in terms of are we always going to have that preference and basically leave some money on the table because of this? No. And I think since you pointed out the equities, you need to have in mind 2 things. One, less than in the FICC business, but we do have a focus on Europe, right? And this quarter, the big drivers were Americas, Asia Pacific and obviously, the prime services business in which we do have a capability, but it's not today in terms of size, comparable to most of our peers, including the European ones that do have this activity. And so we're not sitting on our hands. We are investing in this space. We have been acquiring Bernstein was a major building block in that sense, and this is going well. Now we are continuing to develop the systems and the offering to be able over time, but on an organic basis to provide the service, which was the outperformer this quarter on the equity side. So a strategic stance that favors predictability and stability, combined with the willingness to invest in the business organically at the right pace to fix some of the business mix or geographical mix issues that we may have when compared to broader scale competitors.

The next question is from Giulia Miotto of Morgan Stanley.

I have 2 questions. And the first one, I'll go back on costs. And I remember, especially Leo, you talked about the IT landscape and being very complicated, having more than 500 providers and wanting to simplify it. So I want to ask you, where are you on this journey? Are you done with the simplification? Have you taken it down to 5 providers? Or is there more to go there? So an update on that? And then separately, Second question is on French retail. So PBT and people grow nicely, so that's great. But when I look at volumes, loans and deposits, and I put together the networks and BoursoBank, that's actually flat year-on-year because BoursoBank is growing, but the networks are instead declining. So how are you thinking about the performance of these 2 parts of your French retail? Because BoursoBank is clearly performing very well, but the networks not really. How do you turn around this performance in terms of market share capture? Or maybe is it deliberate, I don't know. Any comment on that?

Sure. Thank you very much. On the first question, so as far as -- because you're referring specifically to what we call the concentration or ultra concentration effort that we had. And actually, it was more 700 than 300 initially, down to 5 main providers today. On this front, we're done, right? So this is done now benefits from this very deep transformation, right? You can imagine how deep of a change this was not only from a pure supply chain management, but also in terms of culture, in terms of quality of the strategic evolution of our systems. I mean, very simply, you talk to 700 people about your strategy in terms of transformation of your architecture and landscape from an application perspective. It's not the same conversation than if you have it with 5 major providers. So what I'm trying to hint at here is that, yes, there's the supply chain benefit, but the implied benefits throughout the organization continue basically to generate positive effects in terms of efficiency, both like just sheer cost spending, et cetera, but also, again, from a strategic standpoint, so like a second layer of improvement over time. So that's very important. Now in terms of technology specifically, we continue to work on other aspects of, let's say, legacy inefficiency. For instance, again, the structure between the coding personnel versus the business analysts, the project managers, et cetera, where historically, we've been off benchmarks. And so all this work continues. It's been delivering very significant outcomes, but there is still a potential for us to do better. So that's on IT. In terms of the French retail, putting out clearly a feature of our business there. But let me take a step back for a second and address the underlying strategic question that you asked. There's a way of thinking about this, which is that we have a French retail business, which is made of distribution networks, product factories, insurance, of course, being one of them. I mean, insurance is an integral part of what we're doing in the network. And so to some extent, the idea that you would single out -- I'm not talking about the U.K., but generally speaking, that you would single out, for instance, the, let's say, the traditional network without taking into account the massive value creation, which is reported here in the insurance company, of which 90% of the business is basically catering life insurance products and P&C products for the network, right? So the value chain is one here, right? On the other hand, in the market, which, of course, is changing in terms of behaviors, in terms of structure, et cetera, et cetera, we do have this remarkable vehicle, which is BoursoBank, which is, to your point, performing very well. And so if you take a step back, and I'm hinting here at our vision for the future, right, take a step back and think about this as it's one business, right? It's one business, which is there is a retail client in France that needs banking products on the investment side and on the credit side. And how do we approach this market with all the tools we have. And as you can see, both on the product side, on the network side, distribution network side, on the private banking side and on the digital banking side, we have a super powerful offering for that market opportunity that is constituted, if you will, by the existence of a retail banking customer or prospect in the French market, right? So I hope I'm giving you some color about how we're thinking about this. The idea is the strength of the pillar is made of all its components. And to some extent, it's not conceptually sound to single out one of them. Now just to give you some more, let's say, precise color on the volumes and everything, what you need to have in mind is, again, what we apply to markets or to events, which is a sound long-term strategic view about what's the current situation, what's the current market condition and how do we navigate this? -- balancing very precisely, fine-tuning precisely the balance between growth and profitability. So bear with me, what I'm hinting at here is today, you have -- and you've seen that in the numbers, obviously, site deposits, which are a significant opportunity always for banks for obvious reasons. And you have term deposits, which, to be frank, are less of an opportunity for banks. And so what you see in our numbers is the focus that we have there, which is, again, we don't need to go after the last dollar of not so profitable deposits, and this is what we're doing, right? Not everybody in the market is in the same position, right? Not everybody has the same loan-to-deposit ratio as we do. But we have structurally a little bit of a luxury there to fine-tune our approach slightly better for the sake of generating value. So that's for -- on the deposit side. But then you need to think also about the fact that on the loan side, first of all, the macro, you saw the French figures, which are slightly, I would say, slightly better than feared by some in line with consensus, but they're not stellar. So in that context from a macro perspective, you will not have like massive growth in terms of inventory of credit, especially as most of that inventory is geared towards investments. And as you've seen in the GDP release, investments are not the most dynamic component of the GDP in France today for, I mean, obvious reasons also linked to the macro context. Now we are also there, not unlike in the other business, focused on making sure that we don't spread our capital investments too thin across the entire client base on the corporate side, right? And so you also see some of that effect, which is we've been pickier and pickier in terms of how we allocate capital in this particular segment, which, again, represents very good opportunities in a number of cases, but also the risk of diluted returns in a number of other cases, right? And so what you see here is us fine-tuning this approach very carefully so that we strike the right balance between the growth opportunity or -- yes, growth opportunity and profitability. Hopefully, that gives you some color.

The next question is from Delphine Lee of JPMorgan.

So first of all, just wanted to come back on French retail. So NII growth has been amazing, and that it has been helped by the stabilization of the mix that you've talked about. Now just kind of looking forward, do you think that you can continue to grow at double digits, assuming that this deposit mix remains the same? Do you think that this NII growth can still be strong in coming years? And then my second question is on the buyback and capital return in general. Even with EUR 1.5 billion, your CET1 ratio is still at 13.2% and you even continue to generate a bit of capital in the second half. So just wondering about your commitment to maybe distributing that excess capital closer to that 13% level? Or are you thinking that it is better today to have a little bit of margin above that?

Thank you, Delphine. Listen, on NII growth, I'll be very specific. So we are -- the great performance that you see, mid-teens, is clearly supported by the cost of funding decrease because of the sharp repricing down of Livret A last year, right? And remember, last year, we benefited from 2 re-pricings down. And so right now, in the reference, you have only one -- so the point is, as we move forward in the year, you're going to start to have comparisons to pricing down of Livret A. It's a way of saying, well, everything else being equal, you will not see the same level of performance. But what you will see is what we've been saying forever, so to speak, which is the moderate increase of the NII as the back book reprices, and as in a slightly better rate environment, we also hedge progressively at better levels, knowing that this is a very, very controlled process because, as you know, we've been talking about this in the past, especially the French retail is hedged almost entirely for year 1 in terms of sensitivity. And then a substantial portion of year 2 is also hedged. So you will have an evolution there, a positive one if the rates stay slightly higher than in the initial, let's say, scenario, but it's going to be a process. So this is how you should think about this. There is the Livret A effect. Now, don't forget what we discussed in the previous question, BoursoBank is having a run in terms of growth of its inventories and its performance in terms of both client acquisition and client development. And that's going to be also sustaining that dynamic, right? But this quarter does benefit from a base, which doesn't have the entire benefit of last year's Livret A pricing down. In terms of the buyback, I mean, listen, don't read too much into this, right? At some point, there are processes, they are -- we accumulate capital every day as we go. Some of the regulatory -- big regulatory headwinds like FRTB, yes, kind of moved off the horizon. But on the other hand, from a simulation perspective, we need to make sure we understand where we put that in the trajectory at all and so on and so forth. So knowing that there are still some small moving parts in terms of the exact timing and temporality of things, we maintain, I don't know, 10 basis points of extra caution, but I mean, this is frankly a detail at this point from our standpoint. To run it -- the commitment to run this -- the ship at close to 13% CET1 is totally unchanged.

The next question is from Joseph Dickerson of Jefferies.

I have 2, please. First, you were discussing in response, I think it was Giulia's question, looking at the French retail and incorporating Bourso in a holistic manner. I guess what's the fungibility of the BoursoBank business into, say, the Red brand French retail of Société Générale because there's a notable gap in terms of the resourcing behind Bourso versus the resourcing behind the -- what I would refer to as the Red brand Soc Gen. I guess what's the fungibility across those 2 businesses first? And then second, how do you think about organic risk-weighted asset growth going forward from here and the various opportunity sets across your different businesses?

Just a small precision. It's red and black. I'd rather not say on red only. That's it. I'm not going to say anything else.