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Societe Generale dates back to 4 May 1864, date of the authorisation decree signed by Napoleon III. The bank''s ambitions were reflected in its original articles of association, when it took the form - still very unusual at the time - of a limited company.
1864 - 1893 - The first period of expansion
1894 - 1930 - A large deposit bank
Starting in 1894, the bank set up the structures characterising a large, modern credit institution. As well as collecting company and private deposits, its branches started to provide short-term operating credits for industrialists and traders. It also moved into placing shares with the general public, issuing private debenture loans in France and also in Russia.
Acquisition of equity stakes became a more secondary activity. The company's excellent financial health allowed it to expand its shareholding structure. In 1895, Societe Generale had 14,000 shareholders -- in 1913 they numbered 122,000.
The war years were difficult and had serious consequences with the loss of Russian business. However, during the 1920s, Societe Generale became France's leading bank: its network had grown sharply since the 1890s, with a huge number of branches and seasonal offices allowing in-depth penetration of the provincial market (260 seasonal offices in 1910 and 864 in 1930). The number of sales outlets rose from 1,005 in 1913 to 1,457 in 1933 (including those operated by Sogenal).
Thanks also to the dynamism of supervisory and management staff at head office and in the branch offices, it moved ahead of Credit Lyonnais in terms of deposits collected and loans distributed between 1921 and 1928. To satisfy the requirements of investing companies, Societe Generale created a subsidiary, CALIF, specialised in medium-term credit, in 1928.
The 1930s were another difficult period. Given the decline in international and French business, the bank was forced to rationalise its network by closing down local branches. On the eve of the Second World War, the number of sales outlets was not much greater than in 1922. However, Societe Generale was active in placing numerous public loans launched during this period by the State or the colonies. The war and the German Occupation interrupted its advance, but the bank moved into black Africa and America.
1945 - 1964 - From the liberation to the 1960s
Societe Generale was nationalised in 1945. It now had a single shareholder: the State.
The period from 1945 to 1958 was characterised in France by rapid economic recovery but also a greater disequilibrium in the balance of payments, calling for continued exchange controls and virtually permanent credit control measures. It was not until 1959 that the economy really recovered, but credit controls were reinforced due to persistent inflationary pressures.
Sharp growth in production and foreign trade opened up new areas of business for the banks. The industry underwent some quite radical changes, one of the most striking of which was much greater specialisation of credit. The range of banking services on offer expanded uninterruptedly.
Thanks to its presence in New York, Societe Generale was able to take advantage of the flow of business generated by the Marshall Plan.
Societe Generale continued to expand in France and elsewhere. It moved into Italy and Mexico and altered the status of its establishments in Africa after decolonisation, in accordance with the laws passed by these newly independent countries.
1965 - 1990 - The boom of modern banking
Societe Generale gave new impetus to its French network, with an acceleration in growth after 1966 following elimination of prior authorisation for opening branch offices. International expansion was just as vigorous. It was no longer limited, as before, to the main financial centres (London, New York), neighbouring countries (Belgium, Spain) and the former colonies, with the primary aim of facilitating the business of French firms, but was also aimed at guaranteeing the bank's presence where new markets were developing, either to export the technical expertise it had acquired in certain fields, or to keep up its contact with the multi-nationals.
1966 and 1967 represented a fundamental turning point in banking regulations, the main development being attenuation of the distinction between deposit and investment banking, and creation of the home mortgage market.
Societe Generale dates back to 4 May 1864, date of the authorisation decree signed by Napoleon III. The bank''s ambitions were reflected in its original articles of association, when it took the form - still very unusual at the time - of a limited company.
1991 - 2004 - Recent history
In recent years, the Societe Generale Group has focused on developing its activities around three core businesses through a combination of organic growth and acquisitions.
Retail Banking was strengthened in 1997 through the acquisition of Credit du Nord, highlighting the Group's determination to capitalise on the restructuring of the French banking system. At the same time, Societe Generale has looked to secure the long-term loyalty of its customers (launch of "one account number for life" and introduction of Jazz, a package of service offers).
In 1998, Societe Generale set up Retail Banking outside France as a separate division, underscoring the Group's resolve to make this business one of its strategic development axes. This activity was also strengthened in 1999 through the acquisitions made in Rumania, Bulgaria and Madagascar.This external growth strategy has been manifested through acquisitions in Central Europe (Komercni Banka in the Czech Republic and SKB Banka in Slovenia) in 2001. Africa is also a major area of interest for the bank, with the 2002 purchase of Eqdom in Morocco (the market leader in consumer lending) and Union International de Banque in Tunisia. In addition, 48% of SBB Bank in Ghana was acquired in 2003. In terms of specialized financial services, a department created in mid-2001, the purchase of two Deutsche Bank subsidiaries—ALD for multi-brand auto leasing and financing and GEFA for corporate sales financing enabled
Societe Generale dates back to 4 May 1864, date of the authorisation decree signed by Napoleon III. The bank''s ambitions were reflected in its original articles of association, when it took the form - still very unusual at the time - of a limited company.
During the 1st quarter 2004, the third branch of activity of the Societe Generale Group, GIMS Global Investment Management and Services was created.
In February 2004, Societe Generale set up a new division named SG GSSI, Global Securities Services for Investors, which provides full investor services on securities and listed derivatives covered by the group around the world.
SG GSSI is attached to the GIMS which regroups Societe Generale Asset Management, Societe Generale Private Banking and Societe Generale Global Securities Services for Investors. GIMS employs 7,600 people.
Societe Generale is developing its Corporate and Investment Banking businesses under the Societe Generale CIB brand name, which was introduced by the Group in 1998. Bolstered by a sound client base and a recognised capacity for innovation borne out by the league tables (the Group is ranked among the global leaders in equity derivatives, convertible bonds, export finance, etc.), Societe Generale is looking to develop its M&A, advisory and IPO activities through the acquisition of specialised firms (Hambros in the United Kingdom, Barr Devlin and Cowen in the United States).
