The French financial services company expects to issue around €25 billion worth of structured notes in 2023.

Société Générale has posted revenues of €28.1 billion (US$30.1 billion) for 2022 – an all-time record and increase of 9.3% compared to the previous year. For the fourth quarter, the group reported revenues of €6.9 billion, up 5.9% year-on-year (YoY).

The global markets business, which houses the group’s structured products activities, had a record year, as it benefited from robust commercial activity in a durably volatile environment, particularly regarding interest rates. Revenues stood at €5.9 billion, up 17.1% compared to full year 2021. In Q4 2022, revenues were €1.2 billion, up 11.2% versus Q4 2021.

The equity activity enjoyed its best-ever year in 2022, registering revenues of €3.3 billion, up 4.7% YoY. Over the quarter, revenues contracted by -11.5% compared to Q4 2021 revenues, which were comparatively very high. Amid highly volatile interest rates, fixed income and currencies (FIC) posted a record year, generating €2.6 billion in revenues, up 38.2% YoY. In Q4 2022, revenues rose to €577 million (Q4 2021: €370m).

The bank led by Frederic Oudéa (pictured) issued 4,180 structured products worth an estimated US$13.2 billion in 2022, globally (FY2021: US$14.1 billion from 3,435 products).

Products were publicly distributed in 15 different jurisdictions of which Switzerland saw the highest issuance (1,980 products) followed by France (1,060), Taiwan (502), Germany (269) and Italy (160).

One of its best-selling products of the year was SG Opportunités Trimestrielles N3, a 10-year Luxembourg listed autocall targeted at investors in France. It was linked to the SBF Top 50 ESG EW Decrement 50 Points and collected €180m during the three-month subscription period.

In the fourth quarter, Société Générale issued 931 products with an estimated volume of US$2.8 billion – down 16% in sales from the prior year period (Q4 2021: US$3.3 billion from 910 products).

The French group was the number two provider of listed products (by issuance) in 2022, behind J.P. Morgan only, according to SRP data. The bank issued some 604,442 turbo certificates in the year, an increase of 40% compared to the previous year (FY2020: 433,109 turbos). The majority of turbos were listed in Germany (541,025). Other countries where its turbos are marketed include France (42,799), Belgium (14,446) and the Netherlands (12,446).

In Hong Kong SAR, SG issued 4,445 callable bull bear certificates (CBBCs) and 482 warrants during the year, significantly down from 2021 when 5,754 CBBCs and 696 warrants were issued. A further 246 listed certificates were issued in Singapore (2021: 58).

In the fourth quarter, SocGen issued just under 150,000 turbos in Europe – again second behind J.P. Morgan (by issuance), with the US bank listing 157,713 turbos in Q4. A further 1,422 warrants and CBBCs were listed in Hong Kong SAR during this period.

The parent company’s long term funding program raised €44 billion (including €3.9 billion of pre-funding raised in 2021), of which €23.7 billion was linked to structured notes issuance and €20.3 billion to vanilla debt.

Funding conditions were competitive with an average maturity of 4.9-years. An additional €2.7 billion was issued by SG subsidiaries.

The group’s 2023 funding program is already well advanced with approximately 60% of the €24 billion vanilla long-term program completed on 31 January 2023.

The annual structured notes issuance volume is expected to be around €25 billion in 2023.

As of 31 December 2022, the group’s consolidated balance sheet included €133.2 billion worth of debt securities issued (end-December 2021: €135.3 billion) and an outstanding for hedging derivatives of €46.2 billion (€10.4 billion).

Click the link to read the Société Générale fourth quarter and full year 2022 results, presentation and consolidated financial statements.