SocGen CEO Expects Soft Landing for Europe Economy

First your net income came out at one point fifty seven billion
euros. Very strong performance in global markets on both the fixed income and the equities of fast snaking missing. However
on the cost of risk and operating expenses. Can you tell us exactly what's been the impact of the war in Ukraine on your
activities. As first of all very strong performances across the board and actually a very strong management of the customer cost
increases related to their variable compensation and taxes. So again very strong performances because the risk 60 percent comes
from Russia. Both onshore and offshore exposure to the rest of the course the risk is very good.
At the end of the day it's 59 basis points under control.

We are seeing for the full year between 15 and 25 basis points. So it's
limited. We will book the impact of those disposal of ROEs back in the second quarter.
Let me just highlight that the impact of capital is actually largely booked in the first quarter. And so when we will close
in the in the way of disposing the second quarter the impact on capital would be very limited. Could you tell us exactly how
much you got from the sale of Rose Bank to Vladimir Putin in and that is I expect it would cover the 500 million euros of
subordinated debt.

Is that all you got. No we don't disclose the detail.
As we said we have that which is of course something very positive. The civilian they did that and beyond.
Aren't you afraid that Vladimir Putin would actually end up on the sanctions list before the deal is actually closed which
which is something that you expect in the coming weeks. Listen we will see that. If that were to happen we would probably
request a license but for the time being. As you know he is not sanctioned and we are moving ahead smoothly with the closing
process. So how much do you expect in terms of impact in the second quarter going forward. As we've said in the piece now
it's roughly a minus 3 billion euro. It's a mix of the position of the asset and non-cash item of 1 million. But as I said in
terms of capital impact we had initially communicated on 20 basis point 14 basis point is actually already booked in
practice in the first quarter.

So the net margin and impact would be just six basis points. In terms of capital in the
second quarter how much provisions do you ultimately expect to book from your offshore exposure to Russia excluding a rose bank
which is estimated to be around 2.8 billion euros. Yeah. First of all let me say this exposure is going down has gone down in
the first quarter than NPL ratio actually remained steady for the first quarter at two point nine percent. And we are giving
the guidance of the cost is between 30 35 basis points for the full year.

When we had said below 50 basis points. So as you can
see the very marginal effect on the course of risk. This is of course your exposure. But then you have the secondary effect of
the war in Ukraine the impact on inflation the impact on growth. Do you expect a recession in Europe this year. And how do you
position over this. I think the outlook remains uncertain as well as I would say the
conflict and the final outcome. Our central scenario the central scenario of the economist is more of a soft landing of the GDP
than a recession. So we have a monetary policy in particularly in Europe which will be very progressive.

And so an inflation.
Yes. Which will remain more important for longer because of the war. Also related to analogy prices in particular but then a
soft landing. So that's where we stand in terms of central scenario knowing and certainty is there. We had obviously the
Fed decision last night. What do you expect from higher rates. Is that good news or bad news. Foster's decision now especially
for your global markets franchise your equities revenues. Are actually beating estimates in the first quarter about
nineteen point five percent and a fixed income of 22 percent.

So how do you expect to position with those higher rates as
unfolded. Well first of all let me say I think this raise was expected and I think the country would have been worrying for
the markets and we saw a positive reaction. So I think a monetary policy which will deal with inflation is will be seen
by the markets as normal and a good news. Second as you said the performance is exceptionally strong in
the first quarter in very different circumstances than last year. That shows all the hard work and the success with all the
work we had on the business. It's both for fixed income and equity and we are confident going forward that to deliver very
good the performance is on our market activities. So we can't expect these counterfeit farmers to be sustainable for Bloomberg
Markets for both equities and fixed income.

You know there's always seasonality. The first quarter is always a strong one. So
not the one point seven billion every quarter. A good performance well positive all the good and the hard work we did
in 2021 is successful in your opinion. What do you expect the ECB to do after this Fed decision. What do you expect the next
move from the ECB to be.

Again something probably more progressive in Europe. The inflation is not as strong but again
progressive normalization. Probably a buying less bonds and then step by step but progressively increasing rates. Both Deutsche
Bank and UBS have actually warned about this payroll pressure. They have inflation of wages. Is that a concern for you in the
race for talent. First let me say first quarter the cost income is 10 10 percent below our guidance for the full year. We are
rhetoric maintaining our guidance for this full year. So we think we can manage other cuts this year. Second I think it's
probably more a US thing than the European one. Pressure is even more important in the US and Europe. And I think that we have to
build if you wish our relationship with our staff which is not just built on money. And I think the way that the working
environment that challenges positive challenges which offered the sense of purpose of the company is also important.

So yes
it's certainly one element which remains uncertain. But overall I feel so that we can control. Finally we
had the re-election of President Emanuel in my call about 10 days ago. Do you see any markets risks. Have the legislative
elections next months. An I'm not a politician but when I look at the polls you know
the voting system in the parliament in France should not lead to a significant surprise. All the polls seems to say that even you
could have still the majority in the parliament..

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