Founded in 1864 and based in Paris, Société Générale is one of the oldest French banks. For over 150 years, the group has remained a major player in the real economy with a strong presence in Europe and the rest of the world. The company has more than 138,000 employees in 62 countries worldwide. In 2020, the bank was not spared the adverse effects of the Covid-19 health crisis. It recorded its first annual loss for at least thirty years.
In the fourth quarter of 2020, Societe Generale saw its net banking income (NBI), the equivalent of revenue, fall by 6% to €5.84 billion. Over the twelve months of this year, annual NBI reached EUR 22.1 billion. 22.1 billion, a decrease of 10.4% compared to the previous year.
The first part of this year was marked by the impact of the pandemic and the dislocation of the banking businesses. In contrast, all three of the group's business lines showed a marked improvement in the second half of the year. This, in a still uncertain context imposed by the coronavirus health crisis.
In detail, net banking income (excluding the PEL/CEL provision) of the French retail banking business grew by 2% in H2/2020 compared to the previous half-year. For the year as a whole, it was down 6.1% on the previous year.
Retail Banking and International Financial Services recorded revenues up 2.6% in H1/2020. For the year as a whole, it fell by 2.9%. For its part, the NBI of the Global Customer and Investor Solutions posted an increase of 17% in H2-2020, compared to the first half of the year. For the year as a whole, it fell by 12.5%.
Between October and December 2020, the net cost of risk (corresponding to allocations to and reversals of provisions on all banking credit, counterparty and operational risks) stood at 689 million euros. In the third quarter of 2020, it was 518 million euros. In Q4-2019, it had reached 371 million euros.
For the whole of 2020, the net cost of risk amounted to 3.306 billion euros. It more than doubled compared to 2019 (€1.278 billion). It represents 64 basis points or 0.64% of outstanding loans. This increase is due in particular to the increase in provisions for healthy loans.
These provisions are estimated at a total amount of 1.37 billion euros. 1.01 billion relating to the review of macroeconomic scenarios.
In the last quarter of 2020, net income, group share, stood at €470 million, down 28.1% compared to Q4-2019. For the twelve months of this year, the bank recorded a net loss group share of €258 million.
In the fourth quarter of 2020, the underlying net result group share amounted to 631 million euros. For the year as a whole, it amounted to 1.435 billion euros. For the year under review, Societe Generale posted management fees of €16.714 billion, down 5.7% on 2019.
Underlying management fees are estimated at €16.504 billion in 2020. They fell by 5.2% year-on-year. In Q4-2020, they amounted to €4.318 billion, down 6.0% compared to the last quarter of 2019. In addition, for the full year, the company generated an operating profit of €2.093 billion, down 63.1% year-on-year.
In Q4-2020, it stood at 798 million euros, down 40.4% compared to the same period last year. Gross operating profit was €1.487 billion between October and December 2020. It fell by 13.0% year-on-year. For the year as a whole, it reached 5.399 billion euros, down 22.2% compared to 2019.
At the end of the 2020 financial year, shareholders' equity, group share, amounted to €61.7 billion. Net assets per share amounted to EUR 62.3. Tangible net assets per share amounted to EUR 54.8. At the end of December this year, the consolidated balance sheet total reached 1,462 billion euros.
Over the whole of 2020, the parent company issued medium and long-term debt estimated at 34.3 billion euros. The subsidiaries issued 2.9 billion euros. In total, the bank's medium- and long-term debt issuance reached EUR 37.2 billion at 31 December 2020.
The Group's risk-weighted assets (RWA) are estimated at 352.4 billion euros at the end of 2020, compared with 345.0 billion euros a year earlier. 345.0 billion a year earlier. Credit risk-weighted assets increased by 1.9% year-on-year to 287.9 billion euros.
287.9 billion, representing 81.7% of the total. In addition, the Group's Common Equity Tier 1 ratio stood at 13.4% at the end of December 2020. It exceeded the regulatory requirement (9.03%) set by the European Central Bank (ECB) by almost 440 basis points.
Societe Generale's Annual General Meeting of Shareholders was held on 18 May 2021. At this meeting, the bank's Board of Directors proposed the distribution of a dividend of €0.55 per share in cash for the 2020 financial year. It was paid on 27 May 2021.
In addition, Societe Generale reports a strong presence in the financial markets. It is one of the most popular stocks for investors or traders on the stock exchanges. The company is listed on the Paris stock exchange. It is also included in the French CAC 40 stock market index. As of October 2021, its market capitalisation is estimated at EUR 24.05 billion.