| Source: KOF Economic Institute The current level of the KOF Employment Indicator is virtually unchanged compared with last quarter. There are hardly any changes in the individual sectors either. The indicator value suggests that employment in Switzerland will continue to perform well over the coming months. The KOF Employment Indicator currently stands at 3.9 points after having been 3.8 points in the third quarter of 2024 (revised from 5.2 points). Having peaked at 16.6 points in the second quarter of 2022, the indicator has fallen continuously ever since. However, the KOF Employment Indicator has stabilised since the first quarter of this year and has now recorded values of around 4.0 points for three consecutive quarters. The indicator is marginally above its long-term average overall. As it is slightly ahead of the actual employment trend in Switzerland, the latest figures point to moderate employment levels over the coming months. The analysis conducted for the fourth quarter of 2024 is based on the responses of around 4,500 firms that were surveyed in October about their employment plans and expectations. On balance, the majority of participating businesses still consider their current staffing levels to be too low. The proportion of firms planning to increase their workforces in the next three months slightly exceeds the proportion of those planning to cut jobs. Minor changes in the individual sectors The picture varies from sector to sector. The employment outlook in manufacturing, construction, hospitality and banking has changed little compared with last quarter. The employment indicators for these industries remain close to zero. The KOF indicator for wholesale fell yet again from an already low level and is now firmly in negative territory (minus 12 points). Although the outlook for the insurance sector has also deteriorated, the employment indicator for this industry remains positive. By contrast, other service providers are planning to increase staffing levels considerably. This category includes key sectors in terms of employment, such as information and communication, real estate and housing, scientific and technical services, and health and social services. |
Category: Switzerland
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MIL-OSI Submissions: Economy – KOF Employment Indicator remains stable
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MIL-OSI: Acquisition of Knab by BAWAG Group Successfully Completed
Source: GlobeNewswire (MIL-OSI)
ACQUISITION OF KNAB BY BAWAG GROUP SUCCESSFULLY COMPLETED
VIENNA, Austria – November 1, 2024 – BAWAG Group today announces the successful completion of the acquisition of Knab, a bank based in the Netherlands. BAWAG Group will work with the Knab leadership team to continue growing the Retail and SME business in the Netherlands, while also providing the operational support and financial strength of a broader banking group.
About BAWAG Group
BAWAG Group AG is a publicly listed holding company headquartered in Vienna, Austria, serving 2.1 million retail, small business, corporate, real estate and public sector customers across Austria, Germany, Switzerland, Netherlands, Western Europe and the United States. The Group operates under various brands and across multiple channels offering comprehensive savings, payment, lending, leasing, investment, building society, factoring and insurance products and services. Our goal is to deliver simple, transparent, and affordable financial products and services that our customers need.
BAWAG Group’s Investor Relations website https://www.bawaggroup.com/ir contains further information, including financial and other information for investors.Forward looking statement
This release contains “forward-looking statements” regarding the financial condition, results of operations, business plans and future performance of BAWAG Group. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “projects,” “may,” “will,” “should,” “would,” “could” and other similar expressions are intended to identify these forward-looking statements. These forward-looking statements reflect management’s expectations as of the date hereof and are subject to risks and uncertainties that may cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, economic conditions, the regulatory environment, loan concentrations, vendors, employees, technology, competition, and interest rates. Readers are cautioned not to place undue reliance on the forward-looking statements as actual results may differ materially from the results predicted. Neither BAWAG Group nor any of its affiliates, advisors or representatives shall have any liability whatso-ever (in negligence or otherwise) for any loss howsoever arising from any use of this report or its content or otherwise arising in connection with this document. This report does not constitute an offer or invitation to purchase or subscribe for any securities and neither it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. This statement is included for the express purpose of invoking “safe harbor provisions”.
Financial Community:
Jutta Wimmer (Head of Investor Relations)
Tel: +43 (0) 5 99 05-22474IR Hotline: +43 (0) 5 99 05-34444
E-mail: investor.relations@bawaggroup.comMedia:
Manfred Rapolter (Head of Corporate Affairs)
Tel: +43 (0) 5 99 05-31210
E-mail: communications@bawaggroup.comThis text can also be downloaded from our website: https://www.bawaggroup.com
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MIL-OSI Europe: In Montreal, Ignazio Cassis stresses human dimension on road to peace in Ukraine
Source: Switzerland – Department of Foreign Affairs in English
On 30 October 2024, Federal Councillor Ignazio Cassis, head of the FDFA, took part in the Ministerial Conference on the Human Dimension of Ukraine’s 10-Point Peace Formula. This meeting in Montreal concludes the series of follow-up conferences announced in June 2024 at the Bürgenstock resort. During the conference, Mr Cassis held political discussions with Canadian Foreign Minister Mélanie Joly, Ukrainian Foreign Minister Andrii Sybiha and Norwegian Foreign Minister Espen Barth Eide.
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MIL-OSI United Kingdom: expert reaction to study on sugar rationing in utero and early life reducing the risk of chronic disease in adulthood using post-WWII data
Source: United Kingdom – Executive Government & Departments
A study published in Science looks at sugar rationing in the first 1000 days of life and the risk of chronic disease in adulthood.
Dr Hilda Mulrooney, Reader in Nutrition and Health, London Metropolitan University, said:
“This is a really interesting and timely paper, given the currently high intakes of sugar in the UK population, and prevalence of chronic disease including Type 2 diabetes and hypertension.
“The potential for diet in utero to impact on long-term health risks has long been recognised, and there are a number of plausible mechanisms to explain how these may occur. In this study, the authors used data from what could be considered a natural experiment – rationing in response to World War 2. By comparing individuals exposed and not exposed to sugar rationing in utero and in early childhood, a significant effect was seen. Those exposed to rationing had significantly lower risks of Type 2 diabetes (35% lower) and hypertension (20% lower), compared to those who did not. Early childhood was especially important; only a third of the increase in risk for both type 2 diabetes and hypertension was explained by in utero exposure. This highlights the potential for early childhood diet as a risk factor for chronic disease. Given the high levels of sugar in foods and drinks aimed at toddlers and young children, this is of concern.
“The study cannot demonstrate causality; it is not possible from this sort of study design. Nonetheless it is a strong study, with several potential confounding factors taken into account and large numbers of participants (38,155 exposed to rationing and 22,028 not exposed to rationing). The groups were similar in relation to gender, race, family history of diabetes and cardiovascular disease (for which hypertension is a strong risk factor), and genetic scores calculated for obesity (which could confound for both type 2 diabetes and hypertension). In addition to sugar intakes immediately and markedly rising after rationing of sugar ended, risk of obesity was also significantly higher in those not exposed to rationing in utero and the first year of life, compared with those who were.
“This study inevitably has weaknesses, due to its type and reliance on historical data. Changes to sugar intakes were unlikely to be the only changes that occurred to participants at that time. The authors took as many factors as they could into account and the message is clear – exposure to high intakes of added sugar in utero and early childhood is a significant risk factor for chronic disease. This suggests that action to reduce the sugar content of foods and drinks aimed at or attractive to children is needed. This will not entirely reduce the risk, since diet in pregnancy is what enables in utero exposure – so action on all foods and drinks high in added sugar is needed. However this will have to be approached with care – simply replacing sugar with sweeteners will not enable the population to reduce their preference for sweet tastes.”
Jerusa Brignardello, Lecturer in Dietetics & Nutrition, Oxford Brookes University, said:
Does the press release accurately reflect the science?
“Yes, the press release is aligned with the conclusions and findings to the study. This press release emphasises in the importance of the sugar restriction during the first 1000 days of life as an early dietary intervention for the reduction of hypertension and diabetes risk.”
Is this good quality research? Are the conclusions backed up by solid data?
“This is an interesting retrospective piece of research that explores the consequences of early of sugar restriction during early life and comparing the effects of sugar consumption in the same age group after the rationing of food was lifted in the post-war UK. However, results should be interpreted with caution, as nutritional environments from the 1950s differ significantly from those of today.
“The information was obtained from the UK- Biobank with 60183 participants. However, the Biobank cohort is not nationally representative of the population and tend to represent a part of the population that was healthier and wealthy. Nonetheless, the quasi-experimental design of the exposure conditions makes this study very rigorous to study the sugar exposure in humans.”
How does this work fit with the existing evidence?
“Current evidence suggests that early exposure to sugar during pregnancy and early life may impact neonatal metabolism, obesity risk, and taste perception, which may later influence food choices and the risk of other chronic diseases. This study supports the findings related to chronic diseases and contributes to the “fetal origins hypothesis” described by British physician and epidemiologist David Baker in the 90s.”
Have the authors accounted for confounders? Are there important limitations to be aware of?
“Yes, the authors have worked on the limitations inherent in studying a cohort like this. It is important to be aware that food environments and dietary patterns in the 50s were very different compared to the current food environment. In addition, lifestyle during those years was not the same as today, and obesity was not considered for statistical purposes as a potential variable to study public health.
“Therefore, the risk found in the UK-Biobank cohort that was exposed to sugar rationing may be different if that is compared to other populations given the differences in lifestyle, dietary habits, food environment, and obesity prevalence. Consequently, the extrapolation of the results presented in the work of Gracner et al. should be interpreted with caution, for example, if these results will be used to build machine learning models for risk predictions for the current population. However, these results contribute to the “Baker hypothesis” or “Fetal origins hypothesis” showing how a simple nutritional intervention as cutting sugar during this crucial period of pregnancy and early life affect in the reduction of risk of diabetes and hypertension in later life.”
What are the implications in the real world? Is there any overspeculation?
“As mentioned previously, the food environment, lifestyle, and physical activity are very different from those in their 50s. Therefore, the results found in this research should be a call for attention for women in the stages of preconception, pregnancy, and parents of children in early life. In addition, this should reinforce the actions of policymakers for the promotion of low sugar intake during these critical life stages in parents and children. Finally, the food industry should consider reformulating products targeted at these groups in light of the evidence, prioritising the well-being of future generations.
“I do not believe there is overspeculation in this article, as it has undergone peer review, meaning that multiple academics have evaluated the research, including its methodology, results, discussion, and conclusions.”
Dr Katie Dalrymple Lecturer in Nutritional Sciences, Kings College London said:
“This study provides further epidemiological evidence which supports the Developmental Origins of Health and Disease (DOHaD) hypothesis. DoHaD suggests that certain environmental influences during critical periods of growth and development during early life may have significant consequences on a child’s long-term health. Given the complexity of this research question, the study relies on observational data and an event study design to draw meaningful conclusions of the relationship between nutrition in early life and the development of chronic diseases. Whilst it is important to consider confounding factors which may have occurred between the exposure and the outcome and potential bias of the Biobank cohort, the results are consistent with existing DoHaD literature, and they support the notion of public health initiatives which focus on sugar reduction.”
Amanda Adler, Professor of Diabetic Medicine and Health Policy from the University of Oxford’s Radcliffe Department of Medicine said:
“The investigators take advantage of the ‘natural experiment’ of post-war food rationing to test the theory that exposure to sugar rationing in utero and in early childhood prevents or delays the onset of type 2 diabetes and hypertension years later.
“The investigators observed that people conceived during rationing indeed had lower rates of disease when compared to people conceived after rationing ended.
“But, we still don’t really know if the children less likely to get diabetes later in life were indeed the ones not exposed to sugar in utero or after birth – even in a setting of rationing.
“It may be that at the same time rationing ended and people consumed more sugar, they also changed other habits becoming, for example, less physically active. So, this may have influenced in part their risk for diabetes later in life.
“It’s intriguing and entirely possible that a lower exposure to sugar in utero via the mother would lead to life-long benefits.
“This study is an open invitation to clinical trialist to clarify the ‘right’ levels of sugar to add to the diet for pregnant or lactating women, and for their infants.”
‘Exposure to sugar rationing in the first 1000 days of life protected against chronic disease’ by Gracner et al. was published by AAAS in the journal Science at 18:00 UK time on Thursday 31st October.
DOI: 10.1126/science.adn5421
Declared interests
Dr Hilda Mulrooney “In terms of conflicts, I am a committee member of the Obesity Group of the British Dietetic Association, a committee member of the European Specialist Dietitians Network for Obesity and a Council member for Public Health to the Nutrition Society. I am not paid by any of these organisations and not representing them in these comments.”
Jerusa Brignardello “In 2013 I was awarded scholarships from Kraft Foods to attend to the Young Global Nutrition Leader in the International Unions of Nutrition Societies and International Nutrition Foundation. I worked as International Nutrition Consultant for the World Food Programme at United Nations in the Latin American and Caribbean Bureau between 2013 and 2014 . I have worked in Nutrigenomix which is a company for nutritional genetic testing based in Canada between 2012 and 2017. Also, as a clinical trial coordinator for Nestle Switzerland in 2010 and as consultant for Nestle Chile doing activities related to science communication in gut health topics in 2024. In 2018 I received a funding from the American Egg Board from USA to do research in food biomarkers, while I studied at Imperia College London- UK. I am not aware about significant industry funding in my department at Oxford Brookes University. I do not have any conflicts of interest related to this research for my own research.”
Dr Katie Dalrymple “I worked for Danone for 4 years (2012-2016) before I did my PhD.”
Amanda Adler “No conflicts of interest to declare.”
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MIL-OSI Security: Update 257 – IAEA Director General Statement on Situation in Ukraine
Source: International Atomic Energy Agency – IAEA
At Ukraine’s Zaporizhzhya Nuclear Power Plant (ZNPP), repairs are being conducted in one of its six reactors after a small water leakage was detected from an impulse line – essentially a small pipe – connected to the unit’s primary circuit, with the work expected to be completed later this week, Director General Rafael Mariano Grossi of the International Atomic Energy Agency (IAEA) said today.
The IAEA expert team stationed at the ZNPP visited unit 1 on Tuesday after being informed that one of the impulse lines, part of the reactor coolant pump support systems, was leaking and required repair. For this work, the pressure in the primary circuit had to be decreased to atmospheric level. The team was informed today that welding work had been completed and that radiography checks of the welds were on-going.
“The Agency will continue to follow this issue closely, although we don’t see any immediate issue for nuclear safety. In general, we have identified regular equipment maintenance – which is vital to ensure sustainable nuclear safety and security – as a challenging area for the Zaporizhzhya Nuclear Power Plant during the conflict,” Director General Grossi said.
Like the ZNPP’s five other reactors, unit 1 has been in cold shutdown, generating no electricity for the grid, prior to this week’s change in status to shutdown for maintenance. It is expected that unit 1 will be put back to cold shutdown after the repair of the impulse line is completed and tested.
The IAEA team has also carried out other walkdowns during the past week as part of their continuous work to assess – and report on – nuclear safety and security at the ZNPP, where the general situation remains precarious on the frontline of the conflict.
Earlier this week, for example, the team visited the main control rooms of all six units to examine key plant parameters as well as the staffing situation. The IAEA staff have also visited some of the emergency diesel generators (EDG) of units 2 and 5 to verify the readiness of equipment and check the diesel fuel levels.
As virtually every week, the team has continued to hear explosions daily, although no damage to the plant was reported.
Elsewhere in Ukraine, an IAEA team last week completed its visits to seven electrical substations, as part of the Agency’s work to assess the status of the electrical grid infrastructure essential to nuclear safety that began in September.
During the visits, which were requested by Ukraine, the team reviewed how damage caused by military activities earlier this year had impacted the substations’ deliveries of off-site power to the country’s operating nuclear power plants (NPPs), an area highlighted in the Seven Indispensable Pillars of nuclear safety and security outlined by Director General Grossi in March 2022.
The IAEA teams present at the Khmelnytskyy, Rivne and South Ukraine NPPs and the Chornobyl site reported that nuclear safety and security is being maintained despite the effects of the ongoing conflict, including air raid alarms for several days over the past week.
On Monday, the team at the Khmelnytskyy NPP had to shelter at their hotel for several hours after hearing drones which triggered an air raid alarm. The IAEA was subsequently informed by the Ukrainian regulator that 12 drones had been flying near the site during the morning, the closest 400 metres away. The regulator also said drones had been reported near the South Ukraine site on three occasions over the past week.
“Frequent reports of drones flying near nuclear power plants continue to be a source of deep concern for nuclear safety and security. As we have stated repeatedly, any military activity in the vicinity of nuclear power plants represents a potential risk,” Director General Grossi said.
The IAEA is continuing to implement its comprehensive programme of assistance in support of nuclear safety and security in Ukraine, including by delivering requested equipment.
Over the past two weeks, the South Ukraine NPP received radiation and contamination monitoring devices, while State Enterprise USIE Izotop – involved in the management of radioactive material intended for medical, industrial and other purposes – received personal protective equipment. These items were procured with funds from Japan, Switzerland and the United Kingdom. So far, a total of 73 deliveries of equipment and other supplies have been completed by the IAEA.
Last week, remote training on human performance and management observation and coaching was completed for 109 staff at the Chornobyl, Rivne and South Ukraine sites. The training aimed to equip staff and management with skills on how to prevent or reduce the risk of human errors with potential implications for nuclear safety.
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MIL-OSI Europe: FDFA welcomes the outcome of the 34th International Conference of the Red Cross and Red Crescent
Source: Switzerland – Federal Administration in English
Gathered in Geneva, 2,200 delegates from all over the world approved five resolutions aimed at strengthening humanitarian action in a world of constant change, where humanitarian needs are immense. The work, in which Switzerland actively participated, focused on compliance with international humanitarian law (IHL).
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MIL-OSI Europe: Federal Councillor Baume-Schneider attends G20 Health Ministers’ Meeting in Brazil
Source: Switzerland – Federal Administration in English
Federal Councillor Elisabeth Baume-Schneider took part in the G20 Health Ministers’ Meeting in Rio de Janeiro today. Federal Councillor Baume-Schneider also represented Switzerland at the G20’s Joint Ministerial Meeting on Finance and Health. The meetings’ discussions focused in particular on the resilience of healthcare systems and on ensuring equitable access to medical products. The Head of the Federal Department of Home Affairs (FDHA) also took the opportunity to conduct bilateral discussions with several of her international counterparts. She will continue her stay in Brazil with a working visit devoted to both health and cultural issues between now and Saturday 2 November.
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MIL-OSI Economics: Per Jacobsson Lecture 2024 — Ngozi Okonjo-Iweala: “Delivering on new global challenges: How can we keep multilateral coherence whilst re-imagining the multilateral trading system?”
Source: WTO
Headline: Per Jacobsson Lecture 2024 — Ngozi Okonjo-Iweala: “Delivering on new global challenges: How can we keep multilateral coherence whilst re-imagining the multilateral trading system?”
Excellencies, Dear Raghu, Minouche, Maury, ladies and gentlemen, friends,
Thank you. What an honor to follow in the footsteps of previous Per Jacobsson lecturers – all the more so in this 80th anniversary year of the Bretton Woods Conference.
We are living in troubled times – something Per Jacobsson knew well. So far as trade is concerned, the times are not only troubled, they are tense. Trade is sometimes blamed and scapegoated for poor outcomes that really derive from macroeconomic, technology, or social policy, for which trade is not responsible.
Trade policies and tools are being deployed not just to solve trade-related problems, but also to try to address security and geopolitical concerns.
As unilateral measures or threats thereof become increasingly widespread, trade policy has been getting more restrictive. In recent months, the US, the EU, Turkey, and Canada have introduced new tariffs and countervailing duties on Chinese electric vehicles and other products, including steel. China has countered with WTO disputes and measures against EU products such as dairy, pork, and brandy.
These are among the over 130 new trade-restricting measures recorded by the WTO Secretariat since the start of this year. This number represents an 8% increase to the stockpile of over 1600 restrictive measures introduced between 2009 and 2023, which as of last year were already affecting over 10% of world goods trade. In addition, WTO members initiated 210 trade remedy investigations in the first half of 2024 – nearly as many as in all of 2023. While not all will culminate in the imposition of duties, investigations have a well-documented chilling effect on trade. And I haven’t even mentioned subsidies yet.
Frictions are manifesting as trade disputes. Six of the eight WTO disputes initiated this year deal with green technologies, particularly electric vehicles.
I hope we are not on a path that leads back to the sort of economic disorder that came before Bretton Woods – disorder that was followed by political extremism and war.
It was precisely to avoid a repeat of such circumstances that the multilateral economic institutions were created. My concern today is that we have forgotten this lesson – that we have forgotten the good these institutions have done.
Walking away from the legacy of Bretton Woods, including the trading system, would diminish the world’s ability – collectively and at the national level – to respond to problems affecting people’s lives and opportunities.
I will argue that there is a better path forward: re-imagining the global trading system and the rest of the multilateral economic architecture to help us meet the technological, environmental, social and geopolitical challenges of our time. To succeed, its various components must work in concert – an idea we have come to call ‘coherence’.
In the 1940s, the overall thrust of coherence was that trade, reconstruction financing, and monetary policymaking need to be in harmony with each other, and anchored in institutions and rules across countries, to promote growth, prosperity, and peace.
Today, delivering lasting improvements to people’s lives and livelihoods requires us to solve problems of the global commons.
The notion of coherence across different policy areas would have made sense to Per Jacobsson. His convictions about sound money, and its importance for durable growth and recovery, were shaped by his own experiences. As a young man he saw the collapse of global economic integration amid the First World War. From his position at the League of Nations in the 1920s, he witnessed the failed attempts by leading economies to establish effective international coordination on global finance and trade – a memory that echoes uncomfortably today.
We know what happened when the downturn came at the end of the decade. Vicious circles emerged: of falling output, deflation, banking and financial crises, trade protectionism and retaliation, and exchange rate chaos. Countries retreated into increasingly isolated economic blocs.
The experience of those years was seared into the consciousness of the officials who gathered in Bretton Woods in July 1944. US Treasury Secretary Henry Morgenthau opened the conference by looking back at what he called “the great economic tragedy of our time.” I quote “We saw currency disorders develop and spread from land to land, destroying the basis for international trade and international investment and even international faith. In their wake, we saw unemployment and wretchedness — idle tools, wasted wealth. We saw their victims fall prey, in places, to demagogues and dictators. We saw bewilderment and bitterness become the breeders of fascism and, finally, of war.”
What Bretton Woods delivered
The genius of Bretton Woods was that it turned the vicious circles of the 1930s into virtuous ones, by recognizing that macro-financial stability, reconstruction and development, and trade went hand-in-hand.
Instead of beggar-thy-neighbor policies, countries would treat trade, monetary issues, and even domestic macro-economic policies as matters of common interest.
Instead of excessively rigid or chaotically fluctuating currencies, there would be orderly, rules-based management of exchange rates and balance of payments problems.
Instead of underinvestment, there would be long-term financing for reconstruction and expanding productive capacity.
Instead of quantitative restrictions, prohibitive tariffs, and bilateral clearing, there would be a coordinated lowering of trade barriers, and freedom to undertake international payments and current account transactions.
The idea of coherence across policy fields, with trade as a unifying theme, was baked into the system from day one. Promoting the “balanced growth of international trade” is written into the founding mandates of both the IMF and the World Bank – not as an end in itself, but as a means to higher employment, productivity, and incomes.
The trade leg of the stool, alongside the Bank and the IMF, was supposed to be the International Trade Organization, but it ran aground in the US Congress. A parallel negotiating process in 1947 produced the General Agreement on Tariffs and Trade, which was nominally temporary and did not require Congressional ratification. Successive rounds of GATT negotiations substantially reduced barriers to trade. The growing number of “contracting parties” used the GATT to resolve and avoid trade disputes. By the 1960s, global trade was growing faster than output.
The decades that followed Bretton Woods and the Marshall Plan delivered a breathtaking recovery from the devastation of the Second World War.
Strong growth in the 1950s and 1960s saw per capita incomes in Western Europe and Japan begin to converge with those in the United States.
Major European currencies achieved full convertibility in 1958, when Per Jacobsson was leading the IMF.
These gains, however, were largely confined to industrialized countries.
Most newly independent developing countries continued to lose ground in relative terms, as they struggled with declining terms of trade for their commodities.
But a handful of poor economies in East Asia started trying to use increasingly open external markets to pursue export-led development.
Discordance and reinvention: the 1970s and 1980s
Coherence gave way to discordance in the 1970s, with the oil shocks, stagflation, the advent of floating exchange rates, and a wave of emerging market debt crises.
By the mid-1980s, the success of the so-called Asian tigers had become a compelling example, inspiring many developing country governments to pivot from inward-oriented to export-oriented development strategies.
At the international level, growing frustration with ad hoc protectionism and “à la carte” approaches to GATT strictures created demand for more rules-based trade cooperation.
The Uruguay Round negotiations from 1986 to 1994 broadened the reach of multilateral trade rules to cover services and intellectual property, filled longstanding gaps with respect to agriculture and textiles, and unwound much of the protectionism that had emerged in the preceding years.
The nominally provisional GATT was transformed into the World Trade Organization, with a binding dispute resolution mechanism that enhanced the predictability offered by its expanded rulebook.
The preamble to the Marrakesh Agreement establishing the WTO opened up new vistas for the organization, defining its purpose as using trade not just to raise living standards and create jobs but to advance sustainable development – thus introducing environmental concerns that were absent in the 1940s.
1990 to 2020: A “golden period of economic development”, but clouds on the horizon
The Uruguay Round and the end of the Cold War would mark a second era of coherence and virtuous circles across the trading system, the World Bank, and the IMF. And this time, the benefits were spread much more widely across countries and people.
The WTO became an anchor for outward-oriented economic reforms in many emerging markets and developing economies.
Increasingly open and predictable trade became a stronger driver of development, productivity, specialization and scale.
Better macro-financial policies bolstered growth – and trade performance – in many emerging markets and developing countries. So did improved human capital and physical infrastructure.
Trade and modern supply chains became powerful sources of disinflationary pressures.
Market-oriented reforms in China, Eastern Europe, India and other developing economies brought them into the increasingly global division of labor. Trade boomed, incomes rose, and poverty plummeted.
Between 1995 and 2022, as low- and middle-income economies nearly doubled their share in global exports from 16 to 32%, the share of their populations subsisting on less than US$2.15 per day fell from 40% to under 11%. Over 1.5 billion people were lifted out of extreme poverty.
Since 1995, per capita incomes in low- and middle-income countries have nearly tripled, and global per capita income increased by approximately 65 percent.
For the first time since the industrial revolution two centuries earlier, per capita incomes in rich and poor countries began to converge.
Gains for poor countries did not come at the expense of rich ones. Examining the United States since 1950, researchers at the Peterson Institute for International Economics (PIIE) have shown that international trade boosted the economy by the equivalent of $2.6 trillion in 2022, or about 10% of GDP. The gains from trade would be even larger for small, open advanced economies.
In a Foreign Affairs piece this year, Dev Patel, Justin Sandefur, and Arvind Subramanian called the years between 1990 and the start of COVID-19 pandemic in 2020, I quote, “history’s most golden period of economic development”. They argue that the rapid increase in trading opportunities was “perhaps the most important enabler” of convergence.
Research from our new World Trade Report backs them up: the pace of income convergence of low- and middle-income economies is strikingly correlated with their participation in global trade, as measured by a size-adjusted ratio of trade to GDP. Our simulations suggest falling trade costs account for as much as one-third of the convergence.
To be clear, the period was not golden for everyone. Developing countries with lower trade participation or greater commodity-dependence – mostly in Africa, Latin America and the Caribbean, and the Middle East – lagged on convergence. And in some rich countries, many people felt left behind, and their frustration started to fuel a political backlash against trade.
Multilateral rule-making on trade began to falter, with the failure of the Doha Round of WTO negotiations.
Nevertheless, in 2008 and 2009, when the world economy faced its worst financial crisis since the 1930s, the system worked.
International markets stayed broadly open. The rules and norms of the multilateral trading system helped governments contain protectionist pressures.
Alongside fiscal and monetary support, trade was a powerful shock absorber. Crisis-hit countries could rely on predictable market access elsewhere to absorb their excess supply, preventing growth and development from getting derailed.
The WTO, the World Bank, and the IMF also worked together productively on the macro-micro policy nexus.
For instance, when trade finance dried up during the credit crunch, despite being extremely low-risk, the three institutions joined hands to encourage G20 members and international financial institutions to step in with a $250 billion support package.
Since the financial crisis, the multilateral trading system, with the WTO at its core, has continued to deliver economic benefits, despite rising geopolitical tensions and tariffs between the US and China, the disabling of the Appellate Body, and the failure to reach agreements in long-running negotiations such as those on agriculture. Global trade kept reaching new highs through the 2010s, and over 75% of global goods trade continued – and continues today – to operate on core WTO tariff terms.
When COVID-19 hit in 2020, the norms and rules of the multilateral trading system mostly did their job again. Trust in trade was damaged by initial missteps, as governments enacted export restrictions on medical supplies and vaccines. But governments generally refrained from widespread protectionism, allowing food and other essentials to flow across borders to where they were needed. Goods trade rebounded strongly from the lockdowns and was soon setting new records. Cross-border supply chains churned out products needed to fight the pandemic, from face masks to vaccines. Trade in digitally-delivered services boomed, propelled by the same technologies that allowed so many of us to work from home.
Goods and especially services trade are now well above pre-COVID levels. Last year, global trade was worth a near-record $30.5 trillion, in a $105-trillion world economy.
Re-imagining the Multilateral Trading System with coherence
As we saw at the outset, however, these successes did not forestall the challenges we now face in global trade. While trade has been largely resilient, signs of fragmentation are now visible.
So it’s not difficult to imagine a return of vicious circles – trade restrictions, efficiency losses, slower growth, higher prices, costs imposed by extreme weather and food insecurity, and public frustration and anger.
Allowing the vicious circles to take hold and the world to fragment into isolated trading blocs would be costly. The WTO has estimated longer term global GDP losses in the order of 5% were the world to fragment into two like-minded trading blocs. IMF estimates are in the order 7%. We cannot afford this!
And that is why we need to re-imagine the multilateral trading system to solve modern challenges and address modern vulnerabilities.
This means re-imagining coherence as well. Trade alone was insufficient in 1944, and trade alone is insufficient to build the more secure, sustainable, and inclusive world we want today. The way forward for trade will increasingly be about “WTO and” – trade in tandem with other issues, and policies that support the original vision of coherence and do not misuse trade tools, for coercion, as a weapon, or to undermine competition.
Our unfinished business from 1944 was elegantly illustrated by a recent blog post from IMF chief economist Pierre-Olivier Gourinchas and his team.
They showed that China’s growing and contentious trade surplus, and the US’s widening trade deficit, are the result of domestic macro-economic forces, rather than the product of trade and industrial policies.
“Homegrown surpluses and deficits call for homegrown solutions,” they argued, suggesting demand-boosting measures in China and fiscal consolidation in the US.
As for concerns over industrial policy, they said the right response was to strengthen WTO rules, not to restrict trade.
They cited the WTO’s recent China Trade Policy Review which showed new data of billions of dollars in subsidies going to manufacturing. Urging China to be more transparent about its subsidies.
The blog shows the coherence mandate in action but it also illustrates how even today, the global trading system is paying a price for shortcomings of macro-economic policy.
As Sylvia Ostry, one of my predecessors at this podium, said in 1987, “Trade policy is no substitute for macro policy.”
Let’s now turn to the new trade agenda, and look at three areas where future prospects for people and the planet require trade to be re-imagined, and complemented by other policy levers pulling in the same direction.
First, the environmental agenda, above all climate change and getting to net zero by mid-century.
Trade is indispensable to deploy low-carbon technologies globally. Trade lets countries share the burden of developing new green tech. Scale economies and competitive pressures associated with trade help drive down unit costs, making it possible for renewables to undercut fossil fuel energy.
Trade also allows us to leverage ‘green comparative advantage’, a concept that our chief economist, Ralph Ossa, has done much to advance. The idea is straightforward: just as individuals and countries can reap economic gains by specializing in what they are relatively good at, the world can reap environmental gains if countries specialize in what they are relatively green at.
If countries with abundant clean energy can produce more energy-intensive goods and services, while importing energy-light products from places where clean energy is scarce, and vice versa, global emissions fall much more than they would have absent that trade. And in fact research from the University of Zurich suggests that as much as one-third of global emissions reductions could come from this kind of specialization linked to green comparative advantage.
As Ricardo Hausmann at Harvard has observed, fossil fuels are cheap to transport, but wind and solar energy are not. This makes parts of Africa, Central Asia, and Latin America with high green energy potential attractive destinations for investment in energy-intensive industries, including the production of green hydrogen.
Global cooperation on internalizing carbon costs would incentivize greener sourcing everywhere. Nevertheless, we are already seeing moves in the right direction as in Kenya, which has attracted a billion-dollar investment to build a geothermal-powered low-carbon data center.
Parenthetically, a similar dynamic exists for water, provided it is valued correctly. A recent report of the Global Commission on the Economics of Water, which I co-chair, shows that with trade one can also promote the notion of a hydrological comparative advantage. Trade can help mitigate water scarcity by allowing countries with abundant hydrological resources to specialize in producing water-intensive products for export to water-scarce nations. Such virtual water trade offers agricultural export opportunities, for example, to those regions including countries in Africa with under-utilized ground water resources and land.
But just as environmental policy coordination could accelerate climate action, policy fragmentation could weaken it. There is a genuine risk that trade frictions associated with carbon pricing, green subsidies, and other climate policies will escalate into trade restrictions and retaliation, harming emissions reduction as well as trade.
We should seek to pre-empt such frictions and disputes by establishing shared frameworks for trade and climate policy. The goal would be to maximize emissions reduction and green innovation, while minimizing negative spillovers, trade tensions, and wasted public resources on subsidy races that most countries may not even afford to participate in.
To this end, the WTO Secretariat is coordinating a carbon pricing task force comprised of the IMF, World Bank, OECD, UNCTAD, and UNFCCC, where we are working to develop shared carbon metrics and ultimately a global carbon pricing framework against which we can benchmark national policies to aid interoperability of approaches. We have also joined hands with the IMF, the OECD, and the World Bank to explore approaches to enhance greater transparency with respect to subsidies. And we are working with the steel industry to help them promote interoperability in decarbonization standards, reducing transaction costs and facilitating trade and investment in green steel.
Reforming the over $1.2 trillion in direct global annual fossil fuel subsidies, the $630 billion in trade-distorting agricultural support, and the $22 billion in harmful fisheries subsidies (which the WTO Fisheries Subsidies Agreement is delivering) should be a no-brainer. Some of the resources freed up could be repurposed to support green innovation and a just transition for poor countries.
The second set of opportunities for the Multilateral Trading System deals with diversifying and decentralizing supply chains – and doing so in a manner that brings in countries and communities that remain on the margins of the global division of labor.
More diversified global production networks would enhance supply security in an increasingly shock-prone world, while extending the benefits of trade to places and people that have not shared adequately in them. Greater diversification would also help lower the geopolitical temperature around supply chain relationships, by making them harder for any single country to weaponize.
As the pandemic and the war in Ukraine made abundantly clear, overconcentration makes supply chains vulnerable in a crisis.
The advent of COVID-19, concentrated minds on the fact that 80% of world vaccine exports came from only ten countries. This meant export restrictions in a few of them severely disrupted global access to vaccines – especially to Africa, which relied on imports for 99% of its jabs.
Decentralizing value chains and building up pharmaceutical production capacity in Africa and other developing country regions for instance would make the global supply base more resilient in the event of future pandemics, whilst more closely integrating these regions in to world trade, and making them part of a more prosperous and healthy world.
Critical minerals is another sector where there are major opportunities to mitigate concerns about overconcentration in mining and especially processing, while stimulating growth in developing countries.
Exports of minerals critical for the low-carbon transition, like lithium, cobalt, nickel, and rare earths, have grown rapidly to reach USD 320 billion in value in 2022, and are set to increase much more in the years ahead. Africa, for example, represents 40% of estimated global reserves of cobalt, manganese, and platinum; and 12% of world exports of critical minerals, but only 3.8% of exports of processed minerals.
By investing in processing these minerals within the regions including in Central Asia and Latin America where they are found, we can promote value addition and job creation while removing supply bottlenecks that currently threaten to hold back the low-carbon transition.
Furthermore, to the extent that this process is powered by green hydrogen and other kinds of clean energy, it would harness the green comparative advantage I mentioned earlier and thereby help the developing regions increase their share in world trade.
It would be green growth and green trade – the ‘re-globalization’ we want.
Finally, there are areas where cross-border commerce is flourishing, but where new rules are necessary to foster predictability and lower barriers to entry for smaller businesses and developing economies.
The fastest growing segment of international trade is in services delivered across borders via computer networks. Trade in digitally-delivered services – everything from streaming video to remote consulting – has quadrupled since 2005, reaching $4.25 trillion in value last year. These services have become an increasingly important driver of growth and job creation.
The commercialization of artificial intelligence promises to further accelerate digital trade. A forthcoming WTO report describes how AI could reduce trade and transaction costs, improve supply chain logistics, and shift countries’ comparative advantages.
I always say the future of trade is digital, but the future of protectionism could be as well. Imports of digital services could become as contentious as manufactured imports have, or more so – inviting digital barriers that are even simpler to put in place than their counterparts for trade in physical goods.
Putting in place some basic rules for digital trade would reduce the risks of such reversals. The 90-odd members participating in plurilateral e-commerce negotiations at the WTO are now looking to conclude a first phase agreement on a series of practical measures to facilitate digital trade, from common rules for e-signatures and payments, to paperless trading, and consumer protection. Tougher issues like cross-border data flows – a critical element in AI – will be dealt with in a second phase of negotiations.
Delivering on this agenda for the future will involve strengthening all of the WTO’s functions: monitoring and transparency, negotiations, and dispute settlement.
With respect to our dispute settlement system, we are working to reform it. The reform process has wide buy-in, and talks are advancing, including on issues like appeal review and accessibility to ensure that developing countries can use the system. There are delicate issues here around how national security exceptions will be handled – it is going to take work!
We will need to negotiate and implement new rules in important areas like the environment. Some members are showing the way: New Zealand, Costa Rica, Switzerland, and Iceland recently agreed to liberalize trade in a list of hundreds of environmental goods, and they are trying to get others to join.
We are working on getting an Agreement on Investment Facilitation for Development, negotiated by three-quarters of our membership, into the WTO rulebook. This agreement will help developing economies attract FDI by simplifying investment-related procedures and sweeping away red tape.
We will also need to review existing rules to make them fit for purpose. Instead of members doing an end run around our Agreement on Subsidies and Countervailing Measures to introduce industrial policies, it would be better to update that agreement. It actually dates back to 1994 – seven years before China joined the WTO, [a time when climate concerns were barely on the radar screen, and the conventional wisdom was that state-owned enterprises were a fading relic of a bygone era]. Members could decide to create space for subsidizing the green transition. Shared ground rules would help minimize negative spillovers and related trade tensions, while maximizing efficiency in the use of public resources.
Excellencies, ladies, and gentlemen. Let me now conclude.
As I said at the start, these are tense times for trade. There are political dynamics outside our control. But we can treat the challenges we face as opportunities to re-imagine the global trading system.
We can build global resilience whilst making the system more supportive of inclusive growth and environmental sustainability.
We can make existing trade rules more fit for purpose rather than go around or against them and we can make new rules fit for the time.
We can help developing countries left behind by the recent wave of global economic integration.
We can have interdependence without overdependence.
While nothing is ever easy at the WTO, we are moving in the right direction. We will manage what we can manage. Control what we can control. But we will need your help.
Over the past eight decades, the multilateral economic architecture, including the trading system, has delivered a great deal for the world. We have reinvented it before. We can do so again, for people and planet.
Nelson Mandela once wrote that “after climbing a great hill, one only finds that there are many more hills to climb.” I ask you, let’s climb these hills together.
Thank you.Share
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MIL-OSI Economics: Lufthansa celebrates 40th anniversary of flights to Korea
Source: Lufthansa Group
Lufthansa German Airlines celebrates its 40th anniversary of flights from South Korea to Germany and is offering four weeks of special fares to major European cities, including Frankfurt, where it has operated for the last 40 years. The offers are also bookable for those who depart from 8 cities in Korea with Lufthansa Rail & Air.
Lufthansa, as one of the longest-serving European airlines in Korea, has been flying between Seoul and Frankfurt without suspension for four decades. In addition to a Frankfurt service, it also connects Korea with Europe and beyond every day together with a sister Lufthansa Seoul-Munich flight. In addition, this year, as a part of Lufthansa Group, Swiss International Air Lines has added a new service on the Seoul-Zurich route, providing even more convenient connections for Korean travelers.
Over the past 40 years, this European airline was the first to introduce and operate the latest and largest aircraft, including the A380, B747-8 and A350, on its Korean routes. Furthermore, Lufthansa also offers a wide range of customized services for Korean customers through localized services such as Korean cabin crew, Korean infights meals and Korean entertainment programs. In addition, Lufthansa has been at the forefront of providing convenience for Korean travelers by introducing various digital services to the Korean market, including the first onboard internet service in Korea and the Lufthansa App, which was recently awarded as the airline’s best app in the world.
In addition, Lufthansa recently launched Lufthansa Rail & Air, offering travelers the option to connect Seoul with Europe by combining KTX trains and Lufthansa international flights in eight cities in Korea, including Busan. Moreover, as the first and exclusive foreign airlines in Korea, the airline opened a Lufthansa check-in counter at Seoul Station City Airport Terminal earlier this year, to provide convenience for passengers traveling by train as well as those traveling from Seoul to Incheon International Airport.
According to General Manager Korea of Lufthansa Group Airlines, Leandro Tonidandel:
“As we celebrate this 40-year milestone in Korea, we are grateful for the trust and loyalty of our Korean customers and partners. From expanding our routes from/to Korea to pioneering sustainable travel solutions, we’ve grown together with Korea’s dynamic spirit. Together, we’re not just shaping the future of travel, but doing so with purpose and a shared vision for global impact. Here’s to the next 40 years of growth, partnership, and innovation and Lufthansa, as a premium airline, keeps striving to provide more global yet localized services for the Korean market.
About Lufthansa Group
The Lufthansa Group is an aviation group with operations worldwide. With 100,000+ employees, Lufthansa Group generated revenue of €35.4bn in the financial year 2023. Our largest business segment is Passenger Airlines while other key business segments include Logistics and Maintenance, Repair and Overhaul (MRO). Other companies and Group functions such as IT companies and Lufthansa Aviation Training form complimentary components of the Group. All airlines and business segments play leading roles in their respective markets.
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MIL-OSI: Societe Generale: Third quarter 2024 earnings
Source: GlobeNewswire (MIL-OSI)
RESULTS AT 30 SEPTEMBER 2024
Press release
Paris, 31 October 2024SOLID BUSINESS PERFORMANCE IN Q3 24,
GROUP NET INCOME OF EUR 1.4 BILLIONRevenues of EUR 6.8 billion, up +10.5% vs. Q3 231, driven notably by the strong rebound in net interest income in France, in line with end of year estimate, and by another solid performance of Global Banking and Investor Solutions, in particular in Equities and Transaction Banking
Strong positive jaws, control of operating expenses, down by -0.8% vs. Q3 23
Cost-to-income ratio at 63.3% in Q3 24, improved by 7.1 points vs. Q3 23
Stable cost of risk at 27 basis points in Q3 24
Profitability (ROTE) at 9.6% vs. 3.8% for Q3 23
9M 24 NET INCOME UP 53% VS. 9M 23 AT EUR 3.2 BILLION,
DRIVEN BY THE IMPROVEMENT IN OPERATING PERFORMANCERevenues of EUR 20.2 billion, up +5.3% vs. 9M 23
Stable operating expenses, +0.1% vs. 9M 23
Cost-to-income ratio at 68.8%, improved by 3.6 percentage points vs. 9M 23
Profitability (ROTE) at 7.1% vs. 5.0% for 9M 23
SOLID CAPITAL AND LIQUIDITY RATIOS
CET 1 ratio of 13.2%2at end of Q3 24, around 300 basis points above the regulatory requirement
Liquidity Coverage Ratio at 152% at end of Q3 24
Distribution provision of EUR 1.663per share at end-September 2024
DECISIVE EXECUTION OF THE STRATEGIC PLAN
Capital build-up ahead of Capital Markets Day trajectory
Continuous improvement in efficiency and profitability
Reshaping of the business portfolio well underway
Slawomir Krupa, the Group’s Chief Executive Officer, commented:
“We are publishing solid quarterly results that continue to show strong improvement. It demonstrates that we are executing our strategic plan which is impacting our results in a positive and tangible way. Our revenues are up thanks to the solid performance of our businesses with a strong rebound of the net interest income in France and another remarkable contribution from Global Banking and Investor Solutions. Operating expenses are stable and cost of risk is contained. We are posting a clear improvement of cost-to-income ratio and profitability, and our capital ratio continues to strengthen.
For the past year we have been working relentlessly. Our teams are mobilized and we have made progress in three fundamental areas: capital build-up, improvement of profitability, and the reshaping of our business portfolio. We continue to implement our various strategic initiatives such as BoursoBank’s development, LeasePlan’s integration within Ayvens and the acceleration of our contribution to the energy transition. Our goal remains unchanged: a sustainable performance that will create long-term value.”- GROUP CONSOLIDATED RESULTS
In EURm Q3 24 Q3 23 Change 9M 24 9M 23 Change Net banking income 6,837 6,189 +10.5% +11.8%* 20,167 19,147 +5.3% +6.5%* Operating expenses (4,327) (4,360) -0.8% -0.3%* (13,877) (13,858) +0.1% +0.5%* Gross operating income 2,511 1,829 +37.3% +41.0%* 6,290 5,289 +18.9% +22.4%* Net cost of risk (406) (316) +28.4% +30.5%* (1,192) (664) +79.6% +81.0%* Operating income 2,105 1,513 +39.1% +43.2%* 5,098 4,625 +10.2% +13.9%* Net profits or losses from other assets 21 6 x 3.5 x 3.4* (67) (92) +27.5% +27.3%* Income tax (535) (624) -14.3% -12.7%* (1,188) (1,377) -13.7% -11.3%* Net income 1,591 563 x 2.8 x 3.0* 3,856 2,836 +35.9% +41.3%* O.w. non-controlling interests 224 268 -16.5% -16.1%* 696 774 -10.1% -11.2%* Reported Group net income 1,367 295 x 4.6 x 5.1* 3,160 2,062 +53.2% +62.2%* ROE 8.4% 0.9% 6.2% 3.6% +0.0% +0.0%* ROTE 9.6% 3.8% 7.1% 5.0% +0.0% +0.0%* Cost to income 63.3% 70.4% 68.8% 72.4% +0.0% +0.0%* Societe Generale’s Board of Directors, which met on 30 October 2024 under the chairmanship of Lorenzo Bini Smaghi, examined Societe Generale Group’s results for Q3 24 and for the first nine months of 2024.
Net banking income
Net banking income stood at EUR 6.8 billion, up by +10.5% vs. Q3 23.
Revenues of French Retail, Private Banking and Insurance were up by +18.7% vs. Q3 23 and totalled EUR 2.3 billion in Q3 24. Net interest income continued its rebound in Q3 24 (+43% excluding PEL/CEL provision vs. Q3 23), in line with latest estimates, in the context of a still muted loan environment and the pursuit of increasing interest-bearing deposits. Assets under management in the Private Banking and Insurance businesses continued to rise, respectively recording a growth of +8% and +10% in Q3 24 vs. Q3 23. Last, BoursoBank continued its controlled client acquisition, onboarding once again more than 300,000 new clients over the quarter, reaching close to 6.8 million clients at end-September 2024. Likewise, assets under administration rose by over 14% vs. Q3 23. As in Q2 24, BoursoBank posted a positive contribution to Group net income in Q3 24.
Global Banking and Investor Solutions registered a +4.9% increase in revenues relative to Q3 23. Revenues totalled EUR 2.4 billion over the quarter, still driven by strong dynamics of Global Markets’ and Global Transaction & Payment Services’ activities, with revenues increasing by a respective +7.6% and +9.0% in Q3 24 vs. Q3 23. Within Global Markets, revenues of Equity businesses grew by +10.1%. This is the second best third quarter ever. Fixed income and Currencies also recorded a solid performance, with a +6.1% increase in revenues amid a falling interest rates. Financing and Advisory’s revenues totalled EUR 843 million, stable vs. Q3 23. The commercial momentum in the securitisation businesses remained very solid and the performance of financing activities continued to be good, albeit slower relative to an elevated Q3 23. Likewise, Global Transaction & Payment Services’ activities posted an +9.0% increase in revenues vs. Q3 23, driven by a favourable market environment and sustained commercial development in the cash management and correspondent banking activities.
Mobility, International Retail Banking and Financial Services’ revenues were down by -5.4% vs. Q3 23 mainly owing to base effects at Ayvens. International Retail Banking recorded a +1.4% increase in revenues vs. Q3 23 to EUR 1.1 billion, driven by favourable momentum across all regions. Mobility and Financial Services’ revenues contracted by -11.4% vs. Q3 23 owing to an unfavourable non-recurring base effect on Ayvens.
The Corporate Centre recorded revenues of EUR +54 million in Q3 24. They include the booking of exceptional proceeds of approximately EUR 0.3 billion4.
Over 9M 24, net banking income increased by +5.3% vs. 9M 23.
Operating expenses
Operating expenses came to EUR 4,327 million in Q3 24, down -0.8% vs. Q3 23.
The cost-to-income ratio stood at 63.3% in Q3 24, a sharp decrease vs. Q3 23 (70.4%) and Q2 24 (68.4%).
Over 9M 24, operating expenses were stable (+0.1% vs. 9M 23) and the cost-to-income ratio came to 68.8% (vs. 72.4% for 9M 23), which is lower than the 71% target set for FY 2024.
Cost of risk
The cost of risk was stable and contained over the quarter at 27 basis points, i.e., EUR 406 million. This comprises a EUR 400 million provision for doubtful loans (around 27 basis points) and a provision on performing loan outstandings for EUR +6 million.
At end-September 2024, the Group’s provisions on performing loans amounted to EUR 3,122 million, down by a slight EUR -56 million relative to 30 June 2024 notably as per the application of IFRS5 accounting standards on activities under disposal. The EUR -450 million contraction relative to 31 December 2023 is mainly owing to the application of IFRS 5 accounting standards for activities under disposal.
The gross non-performing loan ratio stood at 2.95%5,6 at 30 September 2024, down vs. end of June 2024 (3.03%). The net coverage ratio on the Group’s non-performing loans stood at 84%7 at 30 September 2024 (after netting of guarantees and collateral).
Net profits from other assets
In Q3 24, the Group booked net profit of EUR 21 million driven, on the one hand, by the sale of the headquarters of KB in the Czech Republic and, on the other hand, by the accounting impacts mainly owing to the current sale of assets.
Group net income
Group net income stood at EUR 1,367 million in Q3 24, equating to a Return on Tangible Equity (ROTE) of 9.6%.
Over 9M 24, Group net income came to EUR 3,160 million, equating to a Return on Tangible Equity (ROTE) of 7.1%.
2. STRATEGIC PLAN FULLY ON TRACK
Since announcing its strategic plan in September 2023, the Group has made significant progress in its implementation, the benefits of which are starting to materialise, including on financials aspects. Fundamental milestones have notably been reached in three major areas: capital build-up, the continuous improvement in efficiency and profitability and the reshaping of the business portfolio.
Regarding the business portfolio, the Group has been proactive in recent months, announcing the disposal of several non-core and non-synergistic assets. These latest divestments not only contribute to simplifying the Group but will also reinforce the capital ratio by around 60 basis points, of which around 15 basis points are expected by year-end.
At the same time, the Group is preparing the future by investing in our core franchises, as demonstrated by the development of BoursoBank, the integration of LeasePlan in Ayvens, the creation of Bernstein, the partnership with Brookfield, the merger of our networks in France and the digitalization of our networks in the Czech Republic.
The rollout of our ESG roadmap is also progressing well, particularly on the alignment of our portfolio. The Group has already reduced by more than 50% its upstream Oil & Gas exposure at Q2 24 compared to 20198.
Last quarter, the Group reached its EUR 300 billion sustainable finance target set between 2022-2025. Societe Generale announces today a new sustainable finance target to facilitate EUR 500 billion over the 2024-2030 period that breaks down as follows:
– EUR 400 billion in financing and EUR 100 billion in sustainable bonds9
– EUR 400 billion in environmental activities and EUR 100 billion in socialA major portion of financing will be for dedicated transactions in clean energy, sustainable real estate, low carbon mobility, and other industry and environmental transition topics.
3. THE GROUP’S FINANCIAL STRUCTURE
At 30 September 2024, the Group’s Common Equity Tier 1 ratio stood at 13.2%10, around 300 basis points above the regulatory requirement. Likewise, the Liquidity Coverage Ratio (LCR) was well ahead of regulatory requirements at 152% at end-September 2024 (156% on average for the quarter), and the Net Stable Funding Ratio (NSFR) stood at 116% at end-September 2024.
All liquidity and solvency ratios are well above the regulatory requirements.
30.09.2024 31.12.2023 Requirements CET1(1) 13.2% 13.1% 10.22% CET1 fully loaded 13.2% 13.1% 10.22% Tier 1 ratio (1) 15.5% 15.6% 12.15% Total Capital(1) 18.2% 18.2% 14.71% Leverage ratio (1) 4.25% 4.25% 3.60% TLAC (% RWA)(1) 27.8% 31.9% 22.29% TLAC (% leverage)(1) 7.6% 8.7% 6.75% MREL (% RWA)(1) 32.2% 33.7% 27.56% MREL (% leverage)(1) 8.8% 9.2% 6.23% End of period LCR 152% 160% >100% Period average LCR 156% 155% >100% NSFR 116% 119% >100% In EURbn 30.09.2024 31.12.2023 Total consolidated balance sheet 1,580 1,554 Group shareholders’ equity 67 66 Risk-weighted assets 392 389 O.w. credit risk 331 326 Total funded balance sheet 948 970 Customer loans 453 497 Customer deposits 608 618 At 11 October 2024, the parent company had issued a total of EUR 38.0 billion in medium/long-term debt, of which EUR 17.5 billion in vanilla notes. The 2024 long-term vanilla funding programme is completed. The subsidiaries had issued EUR 4.6 billion. In all, the Group has issued a total of EUR 42.6 billion.
The Group is rated by four rating agencies: (i) FitchRatings – long-term rating “A-”, stable outlook, senior preferred debt rating “A”, short-term rating “F1” (ii) Moody’s – long-term rating (senior preferred debt) “A1”, negative outlook, short-term rating “P-1” (iii) R&I – long-term rating (senior preferred debt) “A”, stable outlook; and (iv) S&P Global Ratings – long-term rating (senior preferred debt) “A”, stable outlook, short-term rating “A-1”.
4. FRENCH RETAIL, PRIVATE BANKING AND INSURANCEIn EURm Q3 24 Q3 23 Change 9M 24 9M 23 Change Net banking income 2,254 1,900 +18.7% 6,390 6,090 +4.9% Net banking income excl. PEL/CEL 2,259 1,895 +19.2% 6,392 6,090 +5.0% Operating expenses (1,585) (1,608) -1.4% (4,962) (5,073) -2.2% Gross operating income 669 292 x 2.3 1,428 1,017 +40.5% Net cost of risk (178) (144) +23.4% (597) (342) +74.7% Operating income 491 148 x 3.3 831 675 +23.1% Net profits or losses from other assets (1) 0 n/s 7 4 x 2.1 Reported Group net income 368 109 x 3.4 631 506 +24.8% RONE 9.4% 2.8% 5.4% 4.4% Cost to income 70.3% 84.7% 77.7% 83.3% Commercial activity
SG Network, Private Banking and Insurance
Average outstanding deposits of the SG Network amounted to EUR 236 billion in Q3 24, up by +0.6% vs. the previous quarter (-1% vs. Q3 23), with a continued rise in interest-bearing deposits and financial savings.
The SG Network’s average loan outstandings contracted by -5% vs. Q3 23 to EUR 195 billion. Outstanding loans to corporate and professional clients were stable vs. Q3 23 (excluding government-guaranteed PGE loans), with the share of medium to long-term loans increasing relative to Q2 24. Home loan production continued its recovery (2.4x vs. Q3 23 and +15% vs. Q2 24).
The average loan to deposit ratio came to 82.5% in Q3 24, down by -3.3 percentage points relative to Q3 23.
Private Banking activities saw their assets under management11 reach a new record of EUR 154 billion in Q3 24, up by +8% vs. Q3 23. Net gathering stood at EUR 5.9 billion in 9M 24, the net asset gathering pace (net new money divided by AuM) has risen by +5.5% since the start of the year. Net banking income stood at EUR 368 million over the quarter, stable vs. Q3 23. Over 9M 24, net banking income came to EUR 1,121 million, a +1% increase vs. 9M 23.
Insurance, which covers activities in and outside France, posted a very strong commercial performance. Life insurance outstandings increased sharply by +10% vs. Q3 23 to reach a record EUR 145 billion at end-September 2024. The share of unit-linked products remained high at 40%. Gross life insurance savings inflows amounted to EUR 3.6 billion in Q3 24, up by +35% vs. Q3 23.
Personal protection and P&C premia were up by +5% vs. Q3 23.
BoursoBank
BoursoBank registered almost 6.8 million clients at end-September 2024, a +27% increase vs. Q3 23 (an increase of around 1.4 million clients year on year). The pace of new client acquisition (around 310,000 new clients in Q3 24) is fully in line with the target of 7 million clients by the end of 2024. BoursoBank can build on an active, loyal and high-quality client base. The brokerage activity registered two million transactions, up by +18% vs. Q3 23. Last, proof of the efficiency of the model and of the very high client satisfaction level, the churn rate has remained low at around 3% and below the market rate.
Average loan outstandings rose by +4,2% compared to Q3 23, at EUR 15 billion in Q3 24.
Average outstanding savings including deposits and financial savings were +13.8% higher vs. Q3 23 at EUR 63 billion. Deposits outstanding totalled EUR 38 billion at Q3 24, posting another sharp increase of +16.2% vs. Q3 23. Life insurance outstandings came to EUR 12 billion in Q3 24 and rose by +7.3% vs. Q3 23 (o/w 47% unit-linked products, a +3.3 percentage points increase vs. Q3 23). The activity continued to register strong gross inflows over the quarter (+55% vs. Q3 23, around 53% unit-linked products).
For the second quarter in a row, BoursoBank recorded a positive contribution to Group net income in Q3 24.
Net banking income
Over the quarter, revenues came to EUR 2,254 million, up +19% vs. Q3 23 and up +6% vs Q2 24. Net interest income grew by +43% vs. Q3 23 (excluding PEL/CEL) and +19% (EUR 169 million) vs. Q2 24. Fee income rose by +5.0% relative to Q3 23.
Over 9M 24 revenues came to EUR 6,390 million, up by +4.9% vs. 9M 23. Net interest income excluding PEL/CEL was up by +15.9% vs. 9M 23. Fee income increased by +1.7% relative to 9M 23.
Operating expenses
Over the quarter, operating expenses came to EUR 1,585 million, down -1.4% vs. Q3 23. Operating expenses for Q3 24 include EUR 12 million in transformation costs. The cost-to-income ratio stood at 70.3% for Q3 24, improving by more than +14 percentage points vs. Q3 23.
Over 9M 24, operating expenses came to EUR 4,962 million (-2.2% vs. 9M 23). The cost-to-income ratio stood at 77.7% and improved by +5.7 percentage points vs. 9M 23.
Cost of risk
In Q3 24, the cost of risk amounted to EUR 178 million or 30 basis points stable on Q2 24
(29 basis points).Over 9M 24, the cost of risk totalled EUR 597 million or 34 basis points.
Group net income
Over the quarter, Group net income totalled EUR 368 million. RONE stood at 9.4% in Q3 24.
Over 9M 24, Group net income totalled EUR 631 million. RONE stood at 5.4% in 9M 24.
5. GLOBAL BANKING AND INVESTOR SOLUTIONSIn EUR m Q3 24 Q3 23 Variation 9M 24 9M 23 Change Net banking income 2,422 2,309 +4.9% +5.2%* 7,666 7,457 +2.8% +2.8%* Operating expenses (1,494) (1,478) +1.1% +1.3%* (4,898) (5,187) -5.6% -5.5%* Gross operating income 928 831 +11.6% +12.0%* 2,768 2,270 +21.9% +21.8%* Net cost of risk (27) (14) +95.3% x 2.0* (29) 8 n/s n/s Operating income 901 817 +10.2% +10.5%* 2,739 2,278 +20.2% +20.0%* Reported Group net income 699 645 +8.2% +8.5%* 2,160 1,814 +19.1% +18.8%* RONE 18.0% 16.8% +0.0% +0.0%* 19.0% 15.6% +0.0% +0.0%* Cost to income 61.7% 64.0% +0.0% +0.0%* 63.9% 69.6% +0.0% +0.0%* Net banking income
Global Banking and Investor Solutions continued to deliver very strong performances, posting revenues of EUR 2,422 million, up +4.9% versus Q3 23.
Over 9M 24, revenues climbed by +2.8% vs. 9M 23 (EUR 7,666 million vs. EUR 7,457 million).
Global Markets and Investor Services recorded a rise in revenues over the quarter vs. Q3 23 of +7.6% to EUR 1,579 million. Over 9M 24, revenues totalled EUR 5,063 million, i.e., a +3.1% increase vs. 9M 23. Growth was mainly driven by Global Markets which recorded revenues of EUR 1,410 million in Q3 24, up by +8.6% relative to Q3 23 amid a positive environment that was particularly conducive to Equities. Over 9M 24, revenues totalled EUR 4,553 million, up by +4.5% vs. 9M 23.
The Equities business again delivered a solid performance, recording revenues of EUR 880 million in Q3 24, up by a strong +10.1% vs. Q3 23, notably on the back of a very good performance from derivatives amid favourable market conditions. This is the second best third quarter ever. Over 9M 24, revenues increased sharply by +12.9% relative to 9M 23 to EUR 2,739 million.
Fixed Income and Currencies registered a +6.1% increase in revenues to EUR 530 million in Q3 24, notably owing to robust demand for rates and forex flow activities, particularly from US clients. Over 9M 24, revenues decreased by -6.0% to EUR 1,814 million.
Securities Services’ revenues were up +0.6% versus Q3 23 at EUR 169 million, but increased by +9.9% excluding the impact of equity participations. The business continued to reap the benefit of a positive fee generation trend and robust momentum in private market and fund distribution. Over 9M 24, revenues were down by -8.2%, but rose by +2.1% excluding equity participations. Assets under Custody and Assets under Administration amounted to EUR 4,975 billion and EUR 614 billion, respectively.
The Financing and Advisory business posted revenues of EUR 843 million, stable versus Q3 23. Over 9M 24, revenues totalled EUR 2,602 million, up by +2.3% vs. 9M 23.
The Global Banking and Advisory business posted a -3.2% decline in revenues relative to Q3 23. Securitised products again delivered a solid performance and momentum was strong in the distribution activity. Financing activities posted a good performance, albeit down on the high baseline in Q3 23. Investment banking activities turned in resilient performances. Over 9M 24, revenues dipped slightly by -0.3% relative to 9M 23.
Global Transaction & Payment Services again delivered a very robust performance compared with Q3 23, posting an +9.0% increase in revenues, driven by strong momentum in cash management and the correspondent banking activities. Over 9M 24, revenues grew by +10.1%.
Operating expenses
Operating expenses came to EUR 1,494 million over the quarter and included EUR 21 million in transformation costs. Operating expenses rose by +1.1% compared with Q3 23, equating to a cost-to-income ratio of 61.7% in Q3 24.
Over 9M 24, operating expenses decreased by -5.6% compared with 9M 23 and the cost-to-income ratio came to 63.9%.
Cost of risk
Over the quarter, the cost of risk was low at EUR 27 million, or 7 basis points vs. 3 basis points in Q3 23.
Over 9M 24, the cost of risk was EUR 29 million, or 2 basis points.
Group net income
Group net income increased by +8.2% vs. Q3 23 to EUR 699 million. Over 9M 24, Group net income rose sharply by +19.1% to EUR 2,160 million.
Global Banking and Investor Solutions reported high RONE of 18.0% for the quarter and RONE of 19.0% for 9M 24.
6. MOBILITY, INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES
In EURm Q3 24 Q3 23 Change 9M 24 9M 23 Change Net banking income 2,108 2,228 -5.4% -2.8%* 6,403 6,491 -1.4% +1.8%* Operating expenses (1,221) (1,239) -1.4% +0.3%* (3,832) (3,479) +10.2% +12.7%* Gross operating income 887 989 -10.4% -6.6%* 2,570 3,013 -14.7% -10.9%* Net cost of risk (201) (175) +14.9% +18.1%* (572) (349) +63.7% +65.9%* Operating income 685 814 -15.8% -12.0%* 1,998 2,663 -25.0% -21.2%* Net profits or losses from other assets 94 1 x 77.0 x 76.7* 98 0 x 375.7 x 304.1 Non-controlling interests 223 237 -6.1% -3.6%* 623 674 -7.6% -7.8%* Reported Group net income 367 377 -2.4% +3.1%* 956 1,325 -27.8% -22.1%* RONE 14.1% 14.9% 12.2% 18.6% Cost to income 57.9% 55.6% 59.9% 53.6% (122)()
Commercial activity
International Retail Banking
International Retail Banking1 posted robust commercial momentum in Q3 24, with an increase in loan outstandings of +4.2%* vs. Q3 23 (+1.8%, outstandings of EUR 68 billion in Q3 24) and growth of +4.1%* vs. Q3 23 (+1.2%, outstandings of EUR 83 billion in Q3 24).
Activity in Europe was solid across client segments for both entities. Loan outstandings increased by +6.0%* vs. Q3 23 (+3.1% at current perimeter and exchange rates, outstandings of EUR 43 billion in Q3 24), driven by home loans and medium and long-term corporate loans in a lower rates environment. Deposit outstandings increased by +4.6%* vs. Q3 23 (+1.9% at current perimeter and exchange rates, outstandings of EUR 55 billion in Q3 24), mainly on interest-bearing products.
In Africa, Mediterranean Basin and French Overseas Territories, loan outstandings totalled EUR 25 billion in Q3 24 (+1.2%* vs. Q3 23, stable at current perimeter and exchange rates) on back of a +5.6%* rise vs. Q3 23 in sub-Saharan Africa (stable vs. Q3 23 at current perimeter and exchange rates). Deposit outstandings totalled EUR 27 billion at Q3 24. They increased by +3.0%* vs. Q3 23 (stable at current perimeter and exchange rates) across all client segments in Africa.
Mobility and Financial Services
Overall, Mobility and Financial Services maintained a good commercial performance.
Ayvens’ earning assets totalled EUR 53.1 billion at end-September 2024, a +5.8% increase vs. end-September 2023.
The Consumer Finance business posted loans outstanding of EUR 23 billion for Q3 24, down -4.5% vs. Q3 23 in a still uncertain environment.
Equipment Finance posted outstandings of EUR 15 billion in Q3 24, the same level as in Q3 23.
Net banking income
Over the quarter, Mobility, International Retail Banking and Financial Services’ revenues totalled EUR 2,108 million, a decrease of -2.8%* vs. Q3 23 (-5.4% at current perimeter and exchange rates).
Over 9M 24, revenues came to EUR 6,403 million, up slightly by +1.8%* vs. 9M 23 (-1.4% at current perimeter and exchange rates).
International Retail Banking recorded a solid performance over the quarter, with a net banking income of EUR 1,058 million, up by +5.1%* vs. Q3 23 (+1.4% at current perimeter and exchange rates). Over 9M 24, revenues totalled EUR 3,131 million, a +4.0%* increase vs. 9M 23 (stable at current perimeter and exchange rates).
Europe recorded revenues of EUR 506 million in Q3 24, an increase for both entities (+3.0%* vs. Q3 23, stable at current perimeter and exchange rates).
The Africa, Mediterranean Basin and French Overseas Territories region continued to post robust commercial momentum with revenues of EUR 552 million in Q3 24. These increased by +7.2%* vs. Q3 23 (+2.8% at current perimeter and exchange rates), driven by a significant rise in net interest income in Africa (+10.5%* vs. Q3 23).
In Q3 24, Mobility and Financial Services’ revenues decreased by -11.4% vs. Q3 23 to EUR 1,049 million. Over the first nine months of 2024, they contracted by -2.9% to EUR 3,271 million.
Ayvens’ net banking income stood at EUR 732 million, a decrease of -14,8% in Q3 24 vs. Q3 23 and of
-4,0% restated from non-recurring items13. The amount of underlying margins was stable vs. Q3 23 at around EUR 690 million1. The average used car sale result per vehicle (UCS) continued to normalise but remained at a high level of EUR 1,4201 per unit in Q3 24 vs. EUR 1,4801 in Q2 24.Consumer Finance activities, down by -3.5% vs. Q3 23, have stabilised since Q2 24 with the business posting net banking income of EUR 218 million in Q3 24. Equipment Finance revenues were also stable vs. Q3 23 (EUR 99 million in Q3 24).
Operating expenses
Over the quarter, operating expenses were stable (+0.3%* vs. Q3 23, -1.4%) at EUR 1,221 million and included EUR 29 million in transformation costs. The cost-to-income ratio came to 57.9% in Q3 24.
Over 9M 24, operating expenses totalled EUR 3,832 million, up +12.7%* vs. 9M 23 (+10.2% at current perimeter and exchange rates). They include around EUR 148 million of transformation charges.
In a context of a strong transformation, International Retail Banking costs rose by +3.4%* vs. Q3 23 (stable at current perimeter and exchange rates, EUR 567 million in Q3 24), notably due to the impact of a new banking tax in Romania which entered into force in January 2024.
The Mobility and Financial Services business recorded a decrease in operating expenses compared to Q3 23 (-2.4% vs. Q3 23, EUR 654 million in Q3 24).
Cost of risk
Over the quarter, the cost of risk normalised at 48 basis points (or EUR 201 million).
Over 9M 24, the cost of risk stood at 45 basis points vs. 32 basis points in 9M 23.
Group net income
Over the quarter, Group net income came to EUR 367 million, down -2.4% vs. Q3 23. RONE stood at 14.1% in Q3 24. RONE was 21.4% for International Retail Banking (positive impact on Group net income of around EUR 40 million related to the sale of KB head office premises), and 9.2% in Mobility and Financial Services in Q3 24.
Over 9M 24, Group net income came to EUR 956 million, down by -27.8% vs. 9M 23. RONE stood at 12.2% for 9M 24. RONE was 16.4% in International Retail Banking, and 9.5% in Mobility and Financial Services in 9M 24.
7. CORPORATE CENTREIn EURm Q3 24 Q3 23 Change 9M 24 9M 23 Change Net banking income 54 (249) n/s n/s (291) (891) +67.3% +67.8%* Operating expenses (27) (35) -22.8% -25.8%* (185) (119) +55.2% +48.2%* Gross operating income 27 (283) n/s n/s (476) (1,010) +52.9% +54.2%* Net cost of risk 1 17 +95.9% +95.9%* 6 19 +70.6% +70.6%* Net profits or losses from other assets (73) 4 n/s n/s (172) (96) -78.9% -79.1%* Income tax (26) (214) -87.7% -87.5%* 118 (85) n/s n/s Reported Group net income (67) (836) +92.0% +92.2%* (587) (1,582) +62.9% +63.7%* The Corporate Centre includes:
- the property management of the Group’s head office,
- the Group’s equity portfolio,
- the Treasury function for the Group,
- certain costs related to cross-functional projects, as well as several costs incurred by the Group that are not re-invoiced to the businesses.
Net banking income
Over the quarter, the Corporate Centre’s net banking income totalled EUR +54 million vs. EUR -249 million in Q3 23. It includes the booking of exceptional proceeds received of approximately EUR 0.3 billion14.
Operating expenses
Over the quarter, operating expenses totalled EUR 27 million vs. EUR 35 million in Q3 23.
Net losses from other assets
Pursuant notably to the application of IFRS 5, the Group booked in Q3 24 various impacts from ongoing disposals of assets.
Group net income
Over the quarter, the Corporate Centre’s Group net income totalled EUR -67 million vs. EUR -836 million in Q3 23.
8. 2024 AND 2025 FINANCIAL CALENDAR
2024 and 2025 Financial communication calendar February 6th, 2025 Fourth quarter and full year 2024 results
April 30th, 2025 First quarter 2025 results
May 20th, 2025 2024 Combined General MeetingThe Alternative Performance Measures, notably the notions of net banking income for the pillars, operating expenses, cost of risk in basis points, ROE, ROTE, RONE, net assets and tangible net assets are presented in the methodology notes, as are the principles for the presentation of prudential ratios. This document contains forward-looking statements relating to the targets and strategies of the Societe Generale Group.
These forward-looking statements are based on a series of assumptions, both general and specific, in particular the application of accounting principles and methods in accordance with IFRS (International Financial Reporting Standards) as adopted in the European Union, as well as the application of existing prudential regulations.
These forward-looking statements have also been developed from scenarios based on a number of economic assumptions in the context of a given competitive and regulatory environment. The Group may be unable to:
– anticipate all the risks, uncertainties or other factors likely to affect its business and to appraise their potential consequences;
– evaluate the extent to which the occurrence of a risk or a combination of risks could cause actual results to differ materially from those provided in this document and the related presentation.
Therefore, although Societe Generale believes that these statements are based on reasonable assumptions, these forward-looking statements are subject to numerous risks and uncertainties, including matters not yet known to it or its management or not currently considered material, and there can be no assurance that anticipated events will occur or that the objectives set out will actually be achieved. Important factors that could cause actual results to differ materially from the results anticipated in the forward-looking statements include, among others, overall trends in general economic activity and in Societe Generale’s markets in particular, regulatory and prudential changes, and the success of Societe Generale’s strategic, operating and financial initiatives.
More detailed information on the potential risks that could affect Societe Generale’s financial results can be found in the section “Risk Factors” in our Universal Registration Document filed with the French Autorité des Marchés Financiers (which is available on https://investors.societegenerale.com/en).
Investors are advised to take into account factors of uncertainty and risk likely to impact the operations of the Group when considering the information contained in such forward-looking statements. Other than as required by applicable law, Societe Generale does not undertake any obligation to update or revise any forward-looking information or statements. Unless otherwise specified, the sources for the business rankings and market positions are internal.
9. APPENDIX 1: FINANCIAL DATA
GROUP NET INCOME BY CORE BUSINESS
In EURm Q3 24 Q3 23 Variation 9M 24 9M 23 Variation French Retail, Private Banking and Insurance 368 109 x 3.4 631 506 +24.8% Global Banking and Investor Solutions 699 645 +8.2% 2,160 1,814 +19.1% Mobility, International Retail Banking & Financial Services 367 377 -2.4% 956 1,325 -27.8% Core Businesses 1,434 1,131 +26.7% 3,747 3,644 +2.8% Corporate Centre (67) (836) +92.0% (587) (1,582) +62.9% Group 1,367 295 x 4.6 3,160 2,062 +53.2% MAIN EXCEPTIONAL ITEMS
In EURm Q3 24 Q3 23 9M 24 9M 23 Net Banking Income – Total exceptional items 287 0 287 (240) One-off legacy items – Corporate Centre 0 0 0 (240) Exceptional proceeds received – Corporate Centre 287 0 287 0 Operating expenses – Total one-off items and transformation charges (62) (145) (538) (662) Transformation charges (62) (145) (538) (627) Of which French Retail, Private Banking and Insurance (12) (46) (139) (330) Of which Global Banking & Investor Solutions (21) (41) (204) (102) Of which Mobility, International Retail Banking & Financial Services (29) (58) (148) (195) Of which Corporate Centre 0 0 (47) 0 One-off items 0 0 0 (35) Of which French Retail, Private Banking and Insurance 0 0 0 60 Of which Global Banking & Investor Solutions 0 0 0 (95) Other one-off items – Total 13 (625) 13 (704) Net profits or losses from other assets 13 (17) 13 (96) Of which Mobility, International Retail Banking and Financial Services 86 0 86 0 Of which Corporate Centre (73) (17) (73) (96) Goodwill impairment – Corporate Centre 0 (338) 0 (338) Provision of Deferred Tax Assets – Corporate Centre 0 (270) 0 (270) CONSOLIDATED BALANCE SHEET
In EUR m 30.09.2024 31.12.2023 Cash, due from central banks 199,140 223,048 Financial assets at fair value through profit or loss 528,259 495,882 Hedging derivatives 8,265 10,585 Financial assets at fair value through other comprehensive income 93,795 90,894 Securities at amortised cost 29,908 28,147 Due from banks at amortised cost 87,153 77,879 Customer loans at amortised cost 446,576 485,449 Revaluation differences on portfolios hedged against interest rate risk (330) (433) Insurance and reinsurance contracts assets 438 459 Tax assets 4,535 4,717 Other assets 75,523 69,765 Non-current assets held for sale 39,940 1,763 Investments accounted for using the equity method 384 227 Tangible and intangible fixed assets 60,970 60,714 Goodwill 5,031 4,949 Total 1,579,587 1,554,045 In EUR m 30.09.2024 31.12.2023 Due to central banks 10,134 9,718 Financial liabilities at fair value through profit or loss 391,788 375,584 Hedging derivatives 14,621 18,708 Debt securities issued 162,997 160,506 Due to banks 105,320 117,847 Customer deposits 526,100 541,677 Revaluation differences on portfolios hedged against interest rate risk
(5,074) (5,857) Tax liabilities 2,516 2,402 Other liabilities 93,909 93,658 Non-current liabilities held for sale 29,802 1,703 Insurance contracts related liabilities 150,295 141,723 Provisions 3,954 4,235 Subordinated debts 15,985 15,894 Total liabilities 1,502,347 1,477,798 Shareholder’s equity – – Shareholders’ equity, Group share – – Issued common stocks and capital reserves 21,166 21,186 Other equity instruments 8,918 8,924 Retained earnings 34,074 32,891 Net income 3,160 2,493 Sub-total 67,318 65,494 Unrealised or deferred capital gains and losses 128 481 Sub-total equity, Group share 67,446 65,975 Non-controlling interests 9,794 10,272 Total equity 77,240 76,247 Total 1,579,587 1,554,045 10. APPENDIX 2: METHODOLOGY
1 –The financial information presented for the third quarter and nine-month 2024 was examined by the Board of Directors on October 30th, 2024 and has been prepared in accordance with IFRS as adopted in the European Union and applicable at that date. This information has not been audited.
2 – Net banking income
The pillars’ net banking income is defined on page 42 of Societe Generale’s 2024 Universal Registration Document. The terms “Revenues” or “Net Banking Income” are used interchangeably. They provide a normalised measure of each pillar’s net banking income taking into account the normative capital mobilised for its activity.
3 – Operating expenses
Operating expenses correspond to the “Operating Expenses” as presented in note 5 to the Group’s consolidated financial statements as at December 31st, 2023. The term “costs” is also used to refer to Operating Expenses. The Cost/Income Ratio is defined on page 42 of Societe Generale’s 2024 Universal Registration Document.
4 – Cost of risk in basis points, coverage ratio for doubtful outstandings
The cost of risk is defined on pages 43 and 770 of Societe Generale’s 2024 Universal Registration Document. This indicator makes it possible to assess the level of risk of each of the pillars as a percentage of balance sheet loan commitments, including operating leases.
In EURm Q3 24 Q3 23 9M 24 9M 23 French Retail, Private Banking and Insurance Net Cost Of Risk 178 144 597 342 Gross loan Outstandings 234,420 243,740 236,286 248,757 Cost of Risk in bp 30 24 34 18 Global Banking and Investor Solutions Net Cost Of Risk 27 14 29 (8) Gross loan Outstandings 163,160 167,057 163,482 170,165 Cost of Risk in bp 7 3 2 (1) Mobility, International Retail Banking & Financial Services Net Cost Of Risk 201 175 572 349 Gross loan Outstandings 168,182 162,873 167,680 145,227 Cost of Risk in bp 48 43 45 32 Corporate Centre Net Cost Of Risk (1) (17) (6) (19) Gross loan Outstandings 25,121 22,681 24,356 19,364 Cost of Risk in bp (1) (31) (3) (13) Societe Generale Group Net Cost Of Risk 406 316 1,192 664 Gross loan Outstandings 590,882 596,350 591,804 583,512 Cost of Risk in bp 27 21 27 15 The gross coverage ratio for doubtful outstandings is calculated as the ratio of provisions recognised in respect of the credit risk to gross outstandings identified as in default within the meaning of the regulations, without taking account of any guarantees provided. This coverage ratio measures the maximum residual risk associated with outstandings in default (“doubtful”).
5 – ROE, ROTE, RONE
The notions of ROE (Return on Equity) and ROTE (Return on Tangible Equity), as well as their calculation methodology, are specified on pages 43 and 44 of Societe Generale’s 2024 Universal Registration Document. This measure makes it possible to assess Societe Generale’s return on equity and return on tangible equity.
RONE (Return on Normative Equity) determines the return on average normative equity allocated to the Group’s businesses, according to the principles presented on page 44 of Societe Generale’s 2024 Universal Registration Document.
Group net income used for the ratio numerator is the accounting Group net income adjusted for “Interest paid and payable to holders if deeply subordinated notes and undated subordinated notes, issue premium amortisation”. For ROTE, income is also restated for goodwill impairment.
Details of the corrections made to the accounting equity in order to calculate ROE and ROTE for the period are given in the table below:ROTE calculation: calculation methodology
End of period (in EURm) Q3 24 Q3 23 9M 24 9M 23 Shareholders’ equity Group share 67,446 68,077 67,446 68,077 Deeply subordinated and undated subordinated notes (8,955) (11,054) (8,955) (11,054) Interest payable to holders of deeply & undated subordinated notes, issue premium amortisation(1) (45) (102) (45) (102) OCI excluding conversion reserves 560 853 560 853 Distribution provision(2) (1,319) (1,059) (1,319) (1,059) Distribution N-1 to be paid – – – – ROE equity end-of-period 57,687 56,715 57,687 56,715 Average ROE equity 57,368 56,572 56,896 56,326 Average Goodwill(3) (4,160) (4,279) (4,079) (3,991) Average Intangible Assets (2,906) (3,390) (2,933) (3,128) Average ROTE equity 50,302 48,903 49,884 49,207 Group net Income 1,367 295 3,160 2,063 Interest paid and payable to holders of deeply subordinated notes and undated subordinated notes, issue premium amortisation (165) (165) (521) (544) Cancellation of goodwill impairment – 338 – 338 Adjusted Group net Income 1,202 468 2,639 1,858 ROTE 9.6% 3.8% 7.1% 5.0% 151617
RONE calculation: Average capital allocated to Core Businesses (in EURm)
In EURm Q3 24 Q3 23 Change 9M 24 9M 23 Change French Retail , Private Banking and Insurance 15,695 15,564 +0.8% 15,602 15,457 +0.9% Global Banking and Investor Solutions 15,490 15,324 +1.1% 15,149 15,485 -2.2% Mobility, International Retail Banking & Financial Services 10,433 10,136 +2.9% 10,425 9,505 +9.7% Core Businesses 41,618 41,024 +1.4% 41,177 40,448 +1.8% Corporate Center 15,750 15,548 +1.3% 15,719 15,878 -1.0% Group 57,368 56,572 +1.4% 56,896 56,326 +1.0% 6 – Net assets and tangible net assets
Net assets and tangible net assets are defined in the methodology, page 45 of the Group’s 2024 Universal Registration Document. The items used to calculate them are presented below:
1819End of period (in EURm) 9M 24 H1 24 2023 Shareholders’ equity Group share 67,446 66,829 65,975 Deeply subordinated and undated subordinated notes (8,955) (9,747) (9,095) Interest of deeply & undated subordinated notes, issue premium amortisation(1) (45) (19) (21) Book value of own shares in trading portfolio 97 96 36 Net Asset Value 58,543 57,159 56,895 Goodwill(2) (4,178) (4,143) (4,008) Intangible Assets (2,895) (2,917) (2,954) Net Tangible Asset Value 51,471 50,099 49,933 Number of shares used to calculate NAPS(3) 796,498 787,442 796,244 Net Asset Value per Share 73.5 72.6 71.5 Net Tangible Asset Value per Share 64.6 63.6 62.7 7 – Calculation of Earnings Per Share (EPS)
The EPS published by Societe Generale is calculated according to the rules defined by the IAS 33 standard (see page 44 of Societe Generale’s 2024 Universal Registration Document). The corrections made to Group net income in order to calculate EPS correspond to the restatements carried out for the calculation of ROE and ROTE.
The calculation of Earnings Per Share is described in the following table:Average number of shares (thousands) 9M 24 H1 24 2023 Existing shares 802,314 802,980 818,008 Deductions Shares allocated to cover stock option plans and free shares awarded to staff 4,548 4,791 6,802 Other own shares and treasury shares 2,930 3,907 11,891 Number of shares used to calculate EPS(4) 794,836 794,282 799,315 Group net Income (in EUR m) 3,160 1,793 2,493 Interest on deeply subordinated notes and undated subordinated notes (in EUR m) (521) (356) (759) Adjusted Group net income (in EUR m) 2,638 1,437 1,735 EPS (in EUR) 3.32 1.81 2.17 20
8 – The Societe Generale Group’s Common Equity Tier 1 capital is calculated in accordance with applicable CRR2/CRD5 rules. The fully loaded solvency ratios are presented pro forma for current earnings, net of dividends, for the current financial year, unless specified otherwise. When there is reference to phased-in ratios, these do not include the earnings for the current financial year, unless specified otherwise. The leverage ratio is also calculated according to applicable CRR2/CRD5 rules including the phased-in following the same rationale as solvency ratios.9 – Funded balance sheet, loan to deposit ratio
The funded balance sheet is based on the Group financial statements. It is obtained in two steps:
- A first step aiming at reclassifying the items of the financial statements into aggregates allowing for a more economic reading of the balance sheet. Main reclassifications:
Insurance: grouping of the accounting items related to insurance within a single aggregate in both assets and liabilities.
Customer loans: include outstanding loans with customers (net of provisions and write-downs, including net lease financing outstanding and transactions at fair value through profit and loss); excludes financial assets reclassified under loans and receivables in accordance with the conditions stipulated by IFRS 9 (these positions have been reclassified in their original lines).
Wholesale funding: Includes interbank liabilities and debt securities issued. Financing transactions have been allocated to medium/long-term resources and short-term resources based on the maturity of outstanding, more or less than one year.
Reclassification under customer deposits of the share of issues placed by French Retail Banking networks (recorded in medium/long-term financing), and certain transactions carried out with counterparties equivalent to customer deposits (previously included in short term financing).
Deduction from customer deposits and reintegration into short-term financing of certain transactions equivalent to market resources.- A second step aiming at excluding the contribution of insurance subsidiaries, and netting derivatives, repurchase agreements, securities borrowing/lending, accruals and “due to central banks”.
The Group loan/deposit ratio is determined as the division of the customer loans by customer deposits as presented in the funded balance sheet.
NB (1) The sum of values contained in the tables and analyses may differ slightly from the total reported due to rounding rules.
(2) All the information on the results for the period (notably: press release, downloadable data, presentation slides and supplement) is available on Societe Generale’s website www.societegenerale.com in the “Investor” section.Societe Generale
Societe Generale is a top tier European Bank with more than 126,000 employees serving about 25 million clients in 65 countries across the world. We have been supporting the development of our economies for nearly 160 years, providing our corporate, institutional, and individual clients with a wide array of value-added advisory and financial solutions. Our long-lasting and trusted relationships with the clients, our cutting-edge expertise, our unique innovation, our ESG capabilities and leading franchises are part of our DNA and serve our most essential objective – to deliver sustainable value creation for all our stakeholders.
The Group runs three complementary sets of businesses, embedding ESG offerings for all its clients:
- French Retail, Private Banking and Insurance, with leading retail bank SG and insurance franchise, premium private banking services, and the leading digital bank BoursoBank.
- Global Banking and Investor Solutions, a top tier wholesale bank offering tailored-made solutions with distinctive global leadership in equity derivatives, structured finance and ESG.
- Mobility, International Retail Banking and Financial Services, comprising well-established universal banks (in Czech Republic, Romania and several African countries), Ayvens (the new ALD I LeasePlan brand), a global player in sustainable mobility, as well as specialized financing activities.
Committed to building together with its clients a better and sustainable future, Societe Generale aims to be a leading partner in the environmental transition and sustainability overall. The Group is included in the principal socially responsible investment indices: DJSI (Europe), FTSE4Good (Global and Europe), Bloomberg Gender-Equality Index, Refinitiv Diversity and Inclusion Index, Euronext Vigeo (Europe and Eurozone), STOXX Global ESG Leaders indexes, and the MSCI Low Carbon Leaders Index (World and Europe).
For more information, you can follow us on Twitter/X @societegenerale or visit our website societegenerale.com. or visit our website societegenerale.com.
Asterisks* in the document refer to data at constant perimeter and exchange rates
1 +5.8% excluding exceptional proceeds recorded in Corporate Centre (~EUR 0.3bn)
2 Including IFRS 9 phasing, proforma including Q3 24 results
3 Based on a pay-out ratio of 50% of the Group net income, at the high-end of the 40%-50% pay-out ratio, as per regulation, restated from non-cash items and after deduction of interest on deeply subordinated notes and undated subordinated notes
4 As stated in Q2 24 results press release
5 Ratio calculated according to European Banking Authority (EBA) methodology published on 16 July 2019
6 Ratio excluding loans outstanding of companies currently being disposed of in compliance with IFRS 5
7 Ratio of S3 provisions, guarantees and collaterals over gross outstanding non-performing loans
8 Target: -80% upstream exposure reduction by 2030 vs. 2019, with an intermediary step in 2025 at -50% vs. 2019
9 Only the Societe Generale participation is taken into account
10 Including IFRS 9 phasing, proforma including Q3 24 results
11 France and International, including Switzerland and United Kingdom
1 Including entities reported under IFRS 5
1 Excluding non-recurring items on either margins or UCS (mainly linked to fleet revaluation at EUR 114m in Q3 23 vs EUR 0m in Q3 24, the net impact related to prospective depreciation and Purchase Price Allocation for ~EUR 35m vs. Q3 23, hyperinflation in Turkey at EUR 46m in Q3 23 vs. EUR 10m in Q3 24 and MtM of derivatives at EUR -82m in Q3 23 vs. EUR -55m in Q3 24)
14 As stated in Q2 24 results press release
15 Interest net of tax
16 The dividend to be paid is calculated based on a pay-out ratio of 50%, restated from non-cash items and after deduction of interest on deeply subordinated notes and on undated subordinated notes
17 Excluding goodwill arising from non-controlling interests
18 Interest net of tax
19 Excluding goodwill arising from non-controlling interests
20 The number of shares considered is the number of ordinary shares outstanding at end of period, excluding treasury shares and buybacks, but including the trading shares held by the Group (expressed in thousand of shares)
4 The number of shares considered is the average number of ordinary shares outstanding during the period, excluding treasury shares and buybacks, but including the trading shares held by the Group.Attachment
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MIL-OSI: Societe Generale: Managerial changes within the Group
Source: GlobeNewswire (MIL-OSI)
SOCIETE GENERALE: MANAGERIAL CHANGES WITHIN THE GROUP
Press release
Paris, 31 October 2024Societe Generale announces managerial changes within the Group.
Within General Management:
Following a proposal by Slawomir Krupa, Chief Executive Officer, the Societe Generale Board of Directors, under the chairmanship of Lorenzo Bini Smaghi, approved on 30 October 2024 the reduction of the number of General Management executive officers to two: Slawomir Krupa, Chief Executive Officer, and Pierre Palmieri, Deputy Chief Executive Officer.
Philippe Aymerich, Deputy Chief Executive Officer, will step down from his role on 31 October 2024.
As part of this change, Slawomir Krupa will assume direct supervision of Retail Banking activities in France (SG Network and BoursoBank), Private Banking, and Insurance.
Within Retail Banking and Private Banking:
Bertrand Cozzarolo and Thierry Le Marre are appointed Co-Heads of the SG Retail Banking network in France, effective 1 November 2024. They have been serving Societe Generale and its clients since 2004 and 1998, respectively. Their extensive experience in retail banking activities in France and abroad, as well as their direct contribution to the development of SG Retail Banking, will be essential assets in implementing our ambitious commercial roadmap to deliver sustainable performance.
They replace Marie-Christine Ducholet, who will pursue projects outside the Group, effective 31 October 2024.
Mathieu Vedrenne is appointed Head of Private Banking activities, effective 1 November 2024, replacing Bertrand Cozzarolo. At the service of the Group and its clients since 2001, he is currently Deputy Head of Private Banking, with particular responsibility for Private Banking in France, where he has successfully led its many years of sustainable growth.
Within Financial Management:
Leopoldo Alvear is appointed Chief Financial Officer of the Group, effective 7 January 2025. He will also become a member of the Group Executive Committee. With over 27 years of banking experience, including 12 years as head of financial departments at banking institutions (successively at Bankia and currently at Banco Sabadell), Leopoldo Alvear has demonstrated outstanding professional and leadership qualities.
He will succeed Claire Dumas, who will ensure a seamless transition of the Chief Financial Officer duties until the end of January 2025, before pursuing professional opportunities outside the Group.
The role of the Chief Financial Officer remains a direct report to Slawomir Krupa.
Slawomir Krupa, Chief Executive Officer, comments: “Over the past 18 months, we have initiated numerous transformation, development and efficiency initiatives to strengthen our Group and increase the sustainability of our performance. We are already realizing the tangible benefits in our results. The trajectory of our improvement is clear, and our determination is unwavering.
I would like to warmly thank Philippe and Marie-Christine for their commitment throughout the many years they have served our Group, and I wish them every success in their new projects.
I am proud to promote our internal talents, Bertrand, Thierry and Mathieu, to continue building the new model of our SG Network in France while also developing our Private Banking activities, and strengthening commercial dynamics, synergies, and financial performance of our retail banking activities in France.
I would also like to thank Claire for all the work she has done for Societe Generale over the past two decades, which she will continue during the transition period until the end of January.
I am delighted to welcome Leopoldo to our team starting 7 January. His experience as a chief financial officer of other banking institutions, as well as his professional and personal qualities, will be valuable assets in ensuring the flawless execution of our strategic plan.
Our ambition remains the same: to build a stronger and more profitable bank and create more long-term value for all our stakeholders.”Press contact:
Jean-Baptiste Froville_+33 1 58 98 68 00_ jean-baptiste.froville@socgen.comBiographies
Bertrand Cozzarolo began his career in 2000 in the General Inspection teams of the Ministry of Finance before joining Societe Generale in 2004 as a financial analyst. He subsequently held several management positions within retail banking subsidiaries in Egypt and Bulgaria before returning to France in 2011 as Executive Management Chief of Staff. In 2015, he joined Retail Banking in France, where he held various key positions in commercial management and customer relations before being appointed as the Commercial and Marketing Director in 2021. In December 2022, he was appointed as the Head of Societe Generale Private Banking.
He is a graduate of the Paris Institute of Political Studies and a former student of the National School of Administration.Thierry Le Marre began his career in 1990 as a consultant at Coopers & Lybrand before joining the Societe Generale Group in 1998 in the Organization department. In 2002, he became the Chief of Staff of the Chairman and Secretary of the Board of Directors. From 2007 to 2014, he held various management positions in international consumer credit activities. In 2014, he joined retail banking in France, where he successively led two regional delegations. In January 2021, he was appointed co-responsible for the “Clients and network organization” project within the merger project between Credit du Nord and Societe Generale. He has been the Regional Director of SG Societe Generale Ile-de-France Sud since 2023.
He is a graduate of the Paris Institute of Political Studies.Mathieu Vedrenne began his career as a consultant at PriceWaterhouseCoopers in 1998 before joining the General Inspection of Societe Generale in 2001, and then the Strategy Department in 2005. In 2008, he was appointed as Executive Management Chief of Staff. He joined Private Banking in 2011, where he held several positions in Switzerland and France and contributed to the commercial development of the activities. He has been Head of Societe Generale Private Banking France since 2019 and Deputy Head of Private Banking since 2023.
He is a graduate of the Swiss Federal Institute of Technology Lausanne (EPFL).Leopoldo Alvear has over 27 years of experience in financial services. Since 2021, he has been the General Manager and Chief Financial Officer of Banco Sabadell. Previously, he spent 11 years at Bankia, where he successively held the positions of first Head of Financial Management & Rating, and then, since 2012 Group CFO. He began his career at PWC in Corporate Finance before joining Caja Madrid as head of Equity Capital Markets.
He is a graduate of the Complutense University of Madrid.Societe Generale
Societe Generale is a top tier European Bank with more than 126,000 employees serving about 25 million clients in 65 countries across the world. We have been supporting the development of our economies for 160 years, providing our corporate, institutional, and individual clients with a wide array of value-added advisory and financial solutions. Our long-lasting and trusted relationships with the clients, our cutting-edge expertise, our unique innovation, our ESG capabilities and leading franchises are part of our DNA and serve our most essential objective – to deliver sustainable value creation for all our stakeholders.
The Group runs three complementary sets of businesses, embedding ESG offerings for all its clients:
- French Retail, Private Banking and Insurance, with leading retail bank SG and insurance franchise, premium private banking services, and the leading digital bank BoursoBank.
- Global Banking and Investor Solutions, a top tier wholesale bank offering tailored-made solutions with distinctive global leadership in equity derivatives, structured finance and ESG.
- Mobility, International Retail Banking and Financial Services, comprising well-established universal banks (in Czech Republic, Romania and several African countries), Ayvens (the new ALD I LeasePlan brand), a global player in sustainable mobility, as well as specialized financing activities.
Committed to building together with its clients a better and sustainable future, Societe Generale aims to be a leading partner in the environmental transition and sustainability overall. The Group is included in the principal socially responsible investment indices: DJSI (Europe), FTSE4Good (Global and Europe), Bloomberg Gender-Equality Index, Refinitiv Diversity and Inclusion Index, Euronext Vigeo (Europe and Eurozone), STOXX Global ESG Leaders indexes, and the MSCI Low Carbon Leaders Index (World and Europe).
In case of doubt regarding the authenticity of this press release, please go to the end of the Group News page on societegenerale.com website where official Press Releases sent by Societe Generale can be certified using blockchain technology. A link will allow you to check the document’s legitimacy directly on the web page.
For more information, you can follow us on Twitter/X @societegenerale or visit our website societegenerale.com.
Attachment
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MIL-OSI Europe: Strong growth for SMEs in 2022
Source: Switzerland – Department of Home Affairs
Small and medium-sized enterprises (SMEs) are the beating heart of the Swiss economy. In 2022, they employed almost 3.2 million people. 60 000 jobs were created between 2021 and 2022. Over the whole 2011-2022 period, the proportion of enterprises with fewer than 10 jobs increased at the expense of those with 10 to 49 jobs. Jobs in tourism-related activities have experienced mixed growth since 2019. SMEs involved in the export and import of goods performed even better when large in size and part of a group. These are some of the findings from the publication ‘Portrait of Swiss SMEs’ by the Federal Statistical Office (FSO).
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MIL-OSI Europe: The 2024 Statistical Yearbook reveals and explains the trends that move Switzerland
Source: Switzerland – Department of Home Affairs
The Statistical Yearbook of Switzerland, the longest-running publication of the Federal Statistical Office (FSO), is now in its 130th edition. This year’s 400-page yearbook features engaging insights into the most important statistics on Swiss society and its people and includes over 130 QR codes for easy access to a wealth of additional statistics and datasets online. The special focus of this edition is health.
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MIL-OSI Europe: The start-up “Patronus AI” wins over the DDPS in the Cyber Start-up Challenge 2024
Source: Switzerland – Department of Defence, Civil Protection and Sport
The Cyber Start-up Challenge of the Cyber-Defence Campus of armasuisse Science and Technology is held every year to find relevant start-ups and innovative technologies in the cyber area. In this year’s Cyber Start-up Challenge contest, the start-up “Patronus AI” won over the jury with a platform for automated evaluation and safeguarding of LLMs. In 2025, the start-up will be able to demonstrate its solution to the DDPS in practice in a feasibility study.
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MIL-OSI New Zealand: Surveys – New Zealand outranks Australia as the country that Americans want to relocate to the most, according to new research
Source: Journo ResearchNew Zealand ranks in eighth place with 11,866 average monthly searches, beating Australia with 10,919 searches.
Canada is the country that Americans want to relocate to the most, with 28,722 average monthly relocation-related searches.
The study analysed Google search data for keywords related to relocation inquiries to rank the countries Americans are most interested in moving to.New research reveals that Canada is the country Americans want to relocate to the most.
Experts at QR Code Generator ranked countries by the average number of monthly Google searches for relocation-related terms, such as “move to Canada” and “Brazil visa.” The findings identified which countries Americans would like to relocate to the most.
Canada ranks in first place with 28,722 average monthly searches. The country is the most searched in every state except California and Hawaii, where Japan holds the top spot.
Vermont has the highest average monthly searches for Canada-related relocation terms per 100,000 of its population, at 20.34 searches.
With 21,584 average monthly searches, Japan places second. Hawaii searches for Japan the most, with 26.36 average monthly searches per 100,000 locals. This search volume is also the highest out of any state’s interest in any country.
Third place goes to Costa Rica with 15,511 average monthly searches. Montana has the highest average monthly searches for Costa Rica, with 8.90 searches per 100,000 residents.
Brazil ranks in fourth place with 14,613 average monthly searches. With 7.64 average monthly searches per 100,000 locals, Massachusetts is the most interested in moving to Brazil.
Earning fifth place, Mexico has 13,221 average monthly searches. South Dakota is the most interested in moving to Mexico, with 8.52 average monthly searches per 100,000 residents.Countries that Americans want to relocate to the most
Ranking
Country
Average Monthly Google Searches
1
Canada
28,722
2
Japan
21,584
3
Costa Rica
15,511
4
Brazil
14,613
5
Mexico
13,221
6
Switzerland
12,963
7
Spain
12,592
8
New Zealand
11,866
9
Ireland
11,732
10
Italy
11,711
Switzerland ranks sixth, with 12,963 average monthly searches. With 5.08 average monthly searches per 100,000 locals, Massachusetts is the state that is the most interested in moving to the Central European country.
With 12,592 average monthly searches, Spain takes seventh place. Even though Spain reaches its highest rank of fourth-most searched in New York, the state that has the highest volume of Spain-related searches is Rhode Island, with 7.98 searches per 100,000 residents.
In eighth place, New Zealand has 11,866 average monthly searches. The country in Oceania was the second-most popular in Wyoming, Montana, and Hawaii, with 13.27, 9.42, and 11.85 average monthly searches per 100,000 locals, respectively.
Ireland ranks in ninth place with 11,732 average monthly searches. Ireland was the second-most popular country with Vermont, Maine and West Virginia, receiving 13.77, 8.42, and 5.08 average monthly searches per 100,000 residents, respectively.
Italy just makes the list in tenth place, with 11,711 searches. Alaska, Delaware, and Rhode Island had Italy as their second-most searched destination, with 12.84, 8.80, and 9.88 average monthly searches per 100,000 locals, respectively.
Marc Porcar, CEO of QR Code Generator PRO S.L, commented on the findings:
“With its proximity and cultural similarities, Canada has emerged as the clear favorite for Americans considering a move abroad.“Yet some of the other top choices, like Japan, Costa Rica, and Brazil, are surprising, given the language barriers, unique cuisines, and distinct cultural landscapes they offer.
“These findings reveal that many Americans aren’t just looking for an easy transition, but are drawn to the adventure of a richer, more diverse experience overseas.”
If you publish these insights, please credit and link to QR Code Generator, as they conducted this research.
Methodology
To determine which countries have the highest interest for Americans looking to relocate, data from Google Keyword Planner was examined.
Terms like “move to [country]” and “visa [country]” were searched, and the average monthly search volume over the past 12 months was analysed to rank countries by the frequency of relocation searches.
State data was compared to its respective populations.The 193 countries were taken from this United Nations source:
https://www.un.org/en/about-us/member-states
The combined search volume for each country’s 22 terms was calculated and used to rank the countries from highest to lowest average monthly searches.
Full ranking: The countries Americans want to relocate to the most
Ranking
Country
Average Monthly Google Searches
1
Canada
28,722
2
Japan
21,584
3
Costa Rica
15,511
4
Brazil
14,613
5
Mexico
13,221
6
Switzerland
12,963
7
Spain
12,592
8
New Zealand
11,866
9
Ireland
11,732
10
Italy
11,711
11
Portugal
11,057
12
Australia
10,919
13
Thailand
9,228
14
Germany
9,193
15
Turkey
9,089
16
Iceland
8,557
17
Norway
8,274
18
Sweden
7,696
19
France
7,685
20
United Kingdom
7,523
21
Greece
6,957
22
Netherlands
6,705
23
Kenya
6,632
24
Philippines
6,309
25
Finland
6,079
26
Denmark
6,013
27
Vietnam
6,005
28
Belize
5,838
29
Ghana
5,756
30
Panama
5,647
31
North Korea
5,441
32
South Korea
5,133
33
Dominican Republic
5,098
34
Russia
4,947
35
The Bahamas
4,851
36
South Africa
4,813
37
Argentina
4,769
38
Singapore
4,753
39
China
4,482
40
Taiwan
4,283
41
Poland
4,168
42
Israel
3,913
43
Colombia
3,910
44
India
3,906
45
Ecuador
3,885
46
Austria
3,648
47
Malaysia
3,633
48
Uruguay
3,510
49
Jamaica
3,386
50
Chile
3,356
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MIL-OSI: CoinShares Appoints Lisa Avellini as Group General Counsel
Source: GlobeNewswire (MIL-OSI)
31stOctober 2024 | SAINT HELIER, Jersey | CoinShares International Limited (“CoinShares” or “the Group”) (Nasdaq Stockholm: CS; US OTCQX: CNSRF), the leading European investment company specialising in digital assets, is pleased to announce the appointment of Lisa Avellini as Group General Counsel, effective November 4, 2024.
Lisa brings a wealth of valuable experience to CoinShares, with an extensive background in legal and compliance roles within leading global financial institutions. She joins CoinShares after three years at Balyasny Asset Management, where she oversaw global legal and compliance requirements for the credit division.
Prior to her tenure at Balyasny, Lisa spent three years at Citadel, where she provided strategic legal guidance across a range of complex financial transactions and regulatory matters.
Jean-Marie Mognetti, CEO of CoinShares, commented:
“As the digital asset ecosystem increasingly aligns with traditional finance and its regulatory frameworks, Lisa’s extensive legal and regulatory experience with established investment firms strengthens our expertise to navigate this evolving landscape.
Lisa’s appointment reinforces our leadership team and underscores our unwavering commitment to exemplary legal and regulatory compliance. Her arrival not only enhances our capabilities but also signifies CoinShares’ entry into a new growth phase, demonstrating our ability to attract premier talent from the world’s foremost investment companies.”
Lisa Avellini added:
“I am excited to join CoinShares at such a pivotal time in the company’s development. My career has always been driven by curiosity and innovation, and the digital asset industry presents unique challenges and opportunities. This is why I have decided to join a leader in this emerging industry. I look forward to contributing my experience to support CoinShares’ strategic objectives and to further enhance its strong compliance culture.”
In her role as Group General Counsel, Lisa will oversee all legal and regulatory matters for CoinShares globally, providing strategic advice to the executive team and supporting the company’s growth initiatives.
ABOUT COINSHARES
CoinShares is the leading European investment company specialising in digital assets, that delivers a broad range of financial services across investment management, trading and securities to a wide array of clients that includes corporations, financial institutions and individuals. Focusing on crypto since 2013, the firm is headquartered in Jersey, with offices in France, Sweden, Switzerland, the UK and the US. CoinShares is regulated in Jersey by the Jersey Financial Services Commission, in France by the Autorité des marchés financiers, and in the US by the Securities and Exchange Commission, National Futures Association and Financial Industry Regulatory Authority. CoinShares is publicly listed on the Nasdaq Stockholm under the ticker CS and the OTCQX under the ticker CNSRF.
For more information on CoinShares, please visit: https://coinshares.com
Company | +44 (0)1534 513 100 | enquiries@coinshares.com
Investor Relations | +44 (0)1534 513 100 | enquiries@coinshares.comPRESS CONTACT
CoinShares
Benoît Pellevoizin
bpellevoizin@coinshares.comM Group Strategic Communications
Peter Padovano
press@coinshares.com -
MIL-OSI: Temenos Named a Leader in IDC MarketScapes for Digital Core Banking Platforms
Source: GlobeNewswire (MIL-OSI)
GRAND-LANCY, Switzerland, Oct. 31, 2024 (GLOBE NEWSWIRE) — Temenos (SIX: TEMN) today announced that it has been named a Leader in the 2024 IDC MarketScapes for Digital Core Banking Platforms in North America, EMEA and Asia Pacific.[1] Temenos attributes this recognition to the rich functionality of its core banking platform, helping banks enhance their customer experiences and increase business agility.
In North America, the IDC MarketScape evaluated 10 technology vendors, while the IDC MarketScapes for APAC and EMEA assessed 15 vendors each. In this competitive global landscape, Temenos is one of just two vendors to be named a Leader in all three evaluations.
Jerry Silva, Vice President, IDC Financial Insights, said: “The Temenos Core Banking solution portfolio is a cloud-native and cloud-agnostic composable microservices-based offering. It uses a modern technology stack that can evolve to cater for new needs as they arise. This enables banks to compose, extend, and deploy banking capabilities at scale via cloud and SaaS, or to deploy on premise. The solution is used by clients all over the world and Temenos has earned a reputation for being customer-centric and collaborative.”
Barb Morgan, Chief Product and Technology Officer, Temenos, commented: “We’re proud to be recognized by the IDC MarketScape as a market leader across multiple regions in digital core banking platforms. We believe this demonstrates the proven value of our comprehensive core banking solutions, providing banks globally with the agility they need to innovate faster and elevate the digital banking experience for their customers. We are committed to keep investing on Temenos’ core banking platform and delivering solutions that create long-term value and success for our customers.”
The IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of ICT suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each vendor’s position within a given market. The Capabilities score measures vendor go-to-market and business execution in the short-term. The Strategy score measures alignment of vendor strategies with customer requirements in a 3-5-year timeframe. Vendor market share is represented by the size of the icons.
[1] Source: IDC MarketScape: North American Digital Core Banking Platforms 2024 Vendor Assessment (doc #US50463523, September 2024); IDC MarketScape: EMEA Digital Core Banking Platforms 2204 Vendor Assessment (doc #EUR150463623, September 2024); and IDC MarketScape: Asia Pacific Digital Core Banking Platforms 2024 Vendor Assessment (doc #AP50463723, September 2024).
About IDC MarketScape
IDC MarketScape vendor assessment model is designed to provide an overview of the competitive fitness of technology and service suppliers in a given market. The research utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each supplier’s position within a given market. IDC MarketScape provides a clear framework in which the product and service offerings, capabilities and strategies, and current and future market success factors of technology suppliers can be meaningfully compared. The framework also provides technology buyers with a 360-degree assessment of the strengths and weaknesses of current and prospective suppliers.About Temenos
Temenos (SIX: TEMN) is the world’s leading platform for composable banking, serving clients in 150 countries by helping them build new banking services and state-of-the-art customer experiences. Top performing banks using Temenos software achieve cost-income ratios almost half the industry average and returns on equity 2X the industry average. These banks’ IT spend on growth and innovation is also 2X the industry average.For more information, please visit www.temenos.com.
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MIL-OSI Asia-Pac: HKMA and BIS co-host international financial conference (with photos)
Source: Hong Kong Government special administrative region
HKMA and BIS co-host international financial conference (with photos)
HKMA and BIS co-host international financial conference (with photos)
*********************************************************************The following is issued on behalf of the Hong Kong Monetary Authority: An international financial conference (Conference), jointly organised by the Hong Kong Monetary Authority (HKMA) and the Bank for International Settlements (BIS) and supported by the Global Association of Risk Professionals (GARP), was successfully concluded today (October 31) in Hong Kong. This Conference followed the 15th Global Risk Forum co-hosted by the HKMA and GARP on October 30, and brought together over 100 representatives from international bodies, central banks, regulatory authorities, financial institutions, technology firms, consultancy firms and academia around the world. Building on the success of the inaugural Conference last year, the HKMA co-organised this significant event with the BIS for the second time. The Conference this year focused on the theme of “Opportunities and Challenges of Emerging Technologies in the Financial Ecosystem”, and featured a keynote address by the Deputy Governor of the Bank of England for Financial Stability, Ms Sarah Breeden. Other distinguished speakers of the Conference also shared their valuable insights on how artificial intelligence, tokenisation, and other technologies are transforming the financial landscape and how the industry can better prepare for these changes. The Chief Executive of the HKMA, Mr Eddie Yue, said, “Technology is a game changer in the financial industry. While we embrace the immense opportunities it offers, we must also strengthen collaboration among all parties to effectively address the challenges it presents. This Conference provides an excellent opportunity to leverage the collective insights of relevant stakeholders on the opportunities and challenges brought about by technological advancements. The HKMA will work hand in hand with the banking industry to foster a safe and smooth digital transformation journey.” Chief Representative of the BIS Office for Asia and the Pacific, Mr Tao Zhang, said, “Working closely with central banks and other stakeholders, the BIS can play a crucial role in support of their efforts to reap the benefits of tokenisation and artificial intelligence while addressing associated challenges.”About the Bank for International Settlements The Bank for International Settlements (BIS) is an international organisation established in 1930 and owned by central banks. Its headquarters is located in Basel, Switzerland. The mission of the BIS is to support co-operation among central banks around the world in their pursuit of global monetary and financial stability. The BIS Representative Office for Asia and the Pacific is located in Hong Kong. The BIS also has an innovation hub centre in Hong Kong and is undertaking projects to develop public goods in the technology space to support central banks and improve the functioning of the financial system. This year marks the 5th anniversary of the Hong Kong Centre of the BIS Innovation Hub. About the Global Association of Risk Professionals The Global Association of Risk Professionals (GARP) is a non-partisan, not-for-profit membership organisation focused on elevating the practice of risk management. GARP offers the leading global certification for risk managers in the Financial Risk Manager (FRM®), as well as the Sustainability and Climate Risk (SCR®) Certificate, Risk and AI (RAI™) Certificate, and ongoing educational opportunities through Continuing Professional Development. Through the GARP Benchmarking Initiative (GBI®) and GARP Risk Institute, GARP sponsors research in risk management and promotes collaboration among practitioners, academics, and regulators. Founded in 1996 and governed by a Board of Trustees, GARP is headquartered in Jersey City, New Jersey, the United States, with offices in London and Hong Kong.
Ends/Thursday, October 31, 2024Issued at HKT 18:17NNNN
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MIL-OSI Europe: The Swiss Science Council SSC Presents its 2024–2027 Working Programme
Source: Switzerland – Department of Foreign Affairs in English
The Swiss Science Council (SSC) is the advisory body to the Federal Council on issues related to education, research and innovation policy. In the Working Programme for the years 2024–2027, the Council outlines its thematic priorities. These include questions on artificial intelligence, universities of applied sciences, climate change and research libraries. In addition, the SSC conducts various evaluations.
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MIL-OSI Europe: Bundesrat Cassis unterstreicht in Montréal die Bedeutung der humanitären Aspekte auf dem Weg zu einem Frieden in der Ukraine (de)
Source: Switzerland – Department of Foreign Affairs in English
Am 30. Oktober 2024 nahm Bundesrat Ignazio Cassis in Kanada an der Konferenz über humanitäre Aspekte für einen gerechten und dauerhaften Frieden in der Ukraine teil. Das Treffen in Montréal schliesst die Reihe der im Juni 2024 anlässlich der Konferenz auf dem Bürgenstock angekündigten Folgekonferenzen ab. Im Rahmen der Konferenz in Montréal führte der Vorsteher des EDA politische Gespräche mit der kanadischen Aussenministerin Mélanie Joly, dem ukrainischen Aussenminister Andrij Sybiha und dem norwegischen Aussenminister Espen Barth Eide.
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MIL-OSI Video: Follow Captain Vanessa Von Viràg | UN Peacekeeping
Source: United Nations (Video News)
Follow Captain Vanessa Von Viràg from Switzerland as she carries out daily activities serving with the United Nations Military Observer Group in India and Pakistan (UNMOGIP).
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MIL-OSI Europe: VW emissions manipulations: the Office of the Attorney General abandons its criminal proceedings with an abandonment order
Source: Switzerland – Department of Foreign Affairs in English
The Office of the Attorney General of Switzerland (OAG) is abandoning the Swiss criminal proceedings in connection with VW’s emissions manipulations. A fine imposed on VOLKSWAGEN AG (VW AG) by the Braunschweig public prosecutor’s office (Germany) makes it impossible for the OAG to prosecute VW AG in Switzerland due to the transnational ban on double prosecution and double jeopardy. The OAG is therefore abandoning its criminal proceedings against VW AG. The suspicion against AMAG IMPORT AG (AMAG AG) and its responsible bodies and employees has not been substantiated. The OAG is therefore also abandoning its criminal proceedings against these suspects. The abandonment order is not yet final.
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MIL-OSI Europe: One step closer to quantum technologies: Fundamental quantum model recreated from nanographenes
Source: Switzerland – Federal Administration in English
Quantum technologies exploit the unusual properties of the most fundamental building blocks of matter. They promise breakthroughs in communication, computing, sensors and much more. However, quantum states are fragile, and their effects are difficult to grasp, making research into real-world applications challenging. Empa researchers and their partners have now achieved a breakthrough: Using a kind of “quantum Lego”, they have been able to accurately realize a well-known theoretical quantum physics model in a synthetic material.
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MIL-OSI Europe: Ukraine: Switzerland adopts new sanctions against Belarus
Source: Switzerland – Federal Council in English
On 30 October, the Federal Council decided to adopt further sanctions against Belarus. This brings Switzerland in line with the measures adopted by the European Union on 29 June and reaffirms Switzerland’s close partnership with the EU with regard to sanctions. The changes will come into effect on 31 October.
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MIL-OSI: iRhythm Technologies Announces Third Quarter 2024 Financial Results
Source: GlobeNewswire (MIL-OSI)
SAN FRANCISCO, Oct. 30, 2024 (GLOBE NEWSWIRE) — iRhythm Technologies, Inc. (NASDAQ: IRTC), a leading digital health care company focused on creating trusted solutions that detect, predict, and prevent disease, today reported financial results for the three months ended September 30, 2024.
Third Quarter 2024 Financial Highlights
- Revenue of $147.5 million, an 18% increase compared to third quarter 2023
- Gross margin of 68.8%, a 260-basis point increase compared to third quarter 2023
- Unrestricted cash, cash equivalents and marketable securities of $522.0 million as of September 30, 2024
Recent Operational Highlights
- Strong quarterly registration volume driven by record demand from existing accounts combined with another record quarter of new account openings in the United States and record registrations in the United Kingdom
- Received FDA 510(k) clearance for updates previously made to the Zio AT device as letter to file
- Expanded global reach with commercial launch of Zio monitor in Austria, the Netherlands, Switzerland, and Spain, and received Japanese PMDA regulatory approval for Zio monitor, highlighting our continued commitment to bringing our innovative digital healthcare solutions to millions of people worldwide
- Entered into technology license agreement with BioIntelliSense to incorporate medical grade, connected, multi-sensor capabilities into our future ambulatory cardiac monitoring products, positioning us to expand the capabilities of our product platform
- Upcoming data at American Heart Association’s Scientific Sessions 2024 in Chicago from November 16–18
“The third quarter of 2024 was an exceptional quarter of execution as our teams drove significant demand in our core business, made substantial progress in expanding our Zio services into global markets, and established an important licensing agreement with an external partner to drive future platform capabilities for long term growth,” said Quentin Blackford, president and chief executive officer of iRhythm. “Third quarter revenue growth of over 18% year-over-year was driven by record volume demand from existing accounts, and our field teams were also able to open a record number of new accounts during the quarter while continuing our expansion into primary care channels. We were also very pleased to be able to celebrate one million patients having been registered for Zio monitor – our newest generation, long-term continuous monitoring system – in October and have officially launched our first commercial account using Aura – Epic’s specialty diagnostics and devices suite.”
“We also made tangible progress towards long-term initiatives to drive future growth. For the first time ever, we have achieved more than 10,000 billable registrations in a single quarter in the UK, and we are excited that we have begun receiving physician orders following commercial launch in four additional European countries. Furthermore, we have recently received a FDA 510(k) clearance for updates to our Zio AT device associated with our FDA remediation efforts, an ongoing and critical priority for our teams to demonstrate our commitment to quality, compliance and performance. With strong execution across multiple growth levers and with additional catalysts on the horizon, we could not be more excited about the future of iRhythm.”
Third Quarter Financial Results
Revenue for the third quarter of 2024 was $147.5 million, up 18% from $124.6 million during the same period in 2023. The increase was driven by growth in demand for Zio services.Gross profit for the third quarter of 2024 was $101.5 million, up 23% from $82.5 million during the same period in 2023, while gross margin was 68.8%, up from 66.2% during the same period in 2023. The increase in gross profit was primarily due to increased volume of Zio services provided due to higher demand. The increase in gross margin was primarily due to operational efficiencies as well as the absence of increased reserves for excess Zio XT printed circuit board assembly (PCBA) components that were incurred during the prior year.
Operating expenses for the third quarter of 2024 were $151.8 million, compared to $110.1 million for the same period in 2023. Adjusted operating expenses for the third quarter of 2024 were $143.8 million, compared to $107.1 million during the same period in 2023. The increase in adjusted operating expenses was primarily driven by a $32.1 million charge for license consideration payable to BioIntelliSense that was recognized on iRhythm’s unaudited condensed consolidated statements of operations as acquired in-process research and development (“IPR&D”) expense during the third quarter of 2024. In alignment with SEC guidance around non-GAAP financial measures relating to acquired IPR&D expense, iRhythm does not exclude expenses related to acquired IPR&D from its non-GAAP results.
Net loss for the third quarter of 2024 was $46.2 million, or a diluted loss of $1.48 per share, compared with net loss of $27.1 million, or a diluted loss of $0.89 per share, for the same period in 2023. Adjusted net loss for the third quarter of 2024 was $39.2 million, or a diluted loss of $1.26 per share, compared with an adjusted net loss of $24.1 million, or a diluted loss of $0.79 per share, for the same period in 2023. The increase in net loss was primarily driven by a $32.1 million charge for license consideration payable to BioIntelliSense that was recognized on iRhythm’s unaudited condensed consolidated statements of operations as acquired IPR&D expense during the third quarter of 2024.
Unrestricted cash, cash equivalents, and marketable securities were $522.0 million as of September 30, 2024.
2024 Annual Guidance
iRhythm projects revenue for the full year 2024 to grow approximately 18% to 19% compared to prior year results, ranging from approximately $582.5 million to $587.5 million. Gross margin for the full year 2024 is expected to range from 68.5% to 69.0%. iRhythm now expects adjusted EBITDA margin for the full year 2024 to range from approximately negative 2% to negative 1.5% of full year revenues. Adjusted EBITDA guidance includes license consideration payable to BioIntelliSense that is recognized on iRhythm’s consolidated statements of operations as acquired IPR&D expenses, including a charge of approximately $32 million of expense incurred during the third quarter of 2024. In alignment with SEC guidance around non-GAAP financial measures relating to acquired IPR&D expense, iRhythm will not exclude expenses related to acquired IPR&D from its non-GAAP results, which include adjusted EBITDA.Webcast and Conference Call Information
iRhythm’s management team will host a conference call today beginning at 1:30 p.m. PT/4:30 p.m. ET. Interested parties may access a live and archived webcast of the presentation on the “Events & Presentations” section of the company’s investor website at investors.irhythmtech.com.About iRhythm Technologies, Inc.
iRhythm is a leading digital health care company that creates trusted solutions that detect, predict, and prevent disease. Combining wearable biosensors and cloud-based data analytics with powerful proprietary algorithms, iRhythm distills data from millions of heartbeats into clinically actionable information. Through a relentless focus on patient care, iRhythm’s vision is to deliver better data, better insights, and better health for all.Reclassifications
Certain prior period amounts have been reclassified to conform to the current year presentation. These reclassifications have no impact on previously reported results of operations or financial position.Use of Non-GAAP Financial Measures
We refer to certain financial measures that are not recognized under U.S. generally accepted accounting principles (GAAP) in this press release, including adjusted EBITDA, adjusted net loss, adjusted net loss per share and adjusted operating expenses. We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. See the schedules attached to this press release for additional information and reconciliations of such non-GAAP financial measures. We have not reconciled our adjusted operating expenses and adjusted EBITDA estimates for full year 2024 because certain items that impact these figures are uncertain or out of our control and cannot be reasonably predicted. Accordingly, a reconciliation of adjusted operating expenses and adjusted EBITDA estimates is not available without unreasonable effort.Adjusted EBITDA excludes non-cash operating charges for stock-based compensation expense, changes in fair value of strategic investments, impairment and restructuring charges, business transformation costs, and loss on extinguishment of debt. Business transformation costs include costs associated with professional services, employee termination and relocation, third-party merger and acquisition, integration, and other costs to augment and restructure the organization, inclusive of both outsourced and offshore resources.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements include statements regarding financial guidance, market opportunity, ability to penetrate the market, anticipated productivity improvements and expectations for growth. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties, many of which are beyond our control, include risks described in the section entitled “Risk Factors” and elsewhere in our filings made with the Securities and Exchange Commission, including those on the Form 10-Q expected to be filed on or about October 30, 2024. These forward-looking statements speak only as of the date hereof and should not be unduly relied upon. iRhythm disclaims any obligation to update these forward-looking statements.Investor Contact
Stephanie Zhadkevich
investors@irhythmtech.comMedia Contact
Kassandra Perry
irhythm@highwirepr.comIRHYTHM TECHNOLOGIES, INC.
Condensed Consolidated Balance Sheets
(In thousands, except par value)
(unaudited)September 30, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 519,535 $ 36,173 Marketable securities 2,496 97,591 Accounts receivable, net 77,427 61,484 Inventory 15,032 13,973 Prepaid expenses and other current assets 13,419 21,591 Total current assets 627,909 230,812 Property and equipment, net 122,390 104,114 Operating lease right-of-use assets 45,570 49,317 Restricted cash, long-term 8,358 — Goodwill 862 862 Long-term strategic investments 59,059 3,000 Other assets 45,540 45,039 Total assets $ 909,688 $ 433,144 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 7,593 $ 5,543 Accrued liabilities 73,958 83,362 Deferred revenue 3,031 3,306 Operating lease liabilities, current portion 15,522 15,159 Total current liabilities 100,104 107,370 Long-term senior convertible notes 645,821 — Debt, noncurrent portion — 34,950 Other noncurrent liabilities 17,978 1,012 Operating lease liabilities, noncurrent portion 74,019 79,715 Total liabilities 837,922 223,047 Stockholders’ equity: Preferred stock, $0.001 par value – 5,000 shares authorized; none issued and outstanding at September 30, 2024 and December 31, 2023 — — Common stock, $0.001 par value – 100,000 shares authorized; 31,516 shares issued and 31,287 shares outstanding at September 30, 2024, respectively; and 30,954 shares issued and outstanding at December 31, 2023 31 31 Additional paid-in capital 854,363 855,784 Accumulated other comprehensive loss (66 ) (112 ) Accumulated deficit (757,562 ) (645,606 ) Treasury stock, at cost; 229 and 0 shares at September 30, 2024 and December 31, 2023, respectively (25,000 ) — Total stockholders’ equity 71,766 210,097 Total liabilities and stockholders’ equity $ 909,688 $ 433,144 IRHYTHM TECHNOLOGIES, INC.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenue, net $ 147,538 $ 124,604 $ 427,514 $ 360,170 Cost of revenue 46,062 42,130 135,051 115,790 Gross profit 101,476 82,474 292,463 244,380 Operating expenses: Research and development 15,694 16,309 52,378 44,828 Acquired in-process research and development 32,069 — 32,069 — Selling, general and administrative 103,375 93,768 318,797 285,531 Impairment charges 641 — 641 — Total operating expenses 151,779 110,077 403,885 330,359 Loss from operations (50,303 ) (27,603 ) (111,422 ) (85,979 ) Interest and other income (expense), net: Interest income 6,456 1,717 16,198 4,619 Interest expense (3,329 ) (927 ) (9,501 ) (2,709 ) Loss on extinguishment of debt — — (7,589 ) — Other income (expense), net 1,182 (108 ) 772 (143 ) Total interest and other income (expense), net 4,309 682 (120 ) 1,767 Loss before income taxes (45,994 ) (26,921 ) (111,542 ) (84,212 ) Income tax provision 188 195 414 495 Net loss $ (46,182 ) $ (27,116 ) $ (111,956 ) $ (84,707 ) Net loss per common share, basic and diluted $ (1.48 ) $ (0.89 ) $ (3.59 ) $ (2.78 ) Weighted-average shares, basic and diluted 31,262 30,607 31,147 30,470 IRHYTHM TECHNOLOGIES, INC.
Reconciliation of GAAP to Non-GAAP Financial Information
(in thousands, except per share data)
(unaudited)Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Adjusted EBITDA reconciliation* Net loss1 $ (46,182 ) $ (27,116 ) $ (111,956 ) $ (84,707 ) Interest expense 3,329 927 9,501 2,709 Interest income (6,456 ) (1,717 ) (16,198 ) (4,619 ) Changes in fair value of strategic investments (1,059 ) — (1,059 ) — Income tax provision 188 195 414 495 Depreciation and amortization 5,135 4,067 15,426 11,434 Stock-based compensation 17,158 21,008 59,970 53,358 Impairment charges 641 — 641 — Business transformation costs 7,360 2,999 8,656 14,094 Loss on extinguishment of debt — — 7,589 — Adjusted EBITDA $ (19,886 ) $ 363 $ (27,016 ) $ (7,236 ) Adjusted net loss reconciliation* Net loss, as reported1 $ (46,182 ) $ (27,116 ) $ (111,956 ) $ (84,707 ) Impairment charges 641 — 641 — Business transformation costs 7,360 2,999 8,656 14,094 Changes in fair value of strategic investments (1,059 ) — (1,059 ) — Loss on extinguishment of debt — — 7,589 — Adjusted net loss $ (39,240 ) $ (24,117 ) $ (96,129 ) $ (70,613 ) Adjusted net loss per share reconciliation* Net loss per share, as reported1 $ (1.48 ) $ (0.89 ) $ (3.59 ) $ (2.78 ) Impairment charges per share 0.02 — 0.02 — Business transformation costs per share 0.24 0.10 0.28 0.46 Changes in fair value of strategic investments per share (0.03 ) — (0.03 ) — Loss on extinguishment of debt per share — — 0.24 — Adjusted net loss per share $ (1.26 ) $ (0.79 ) $ (3.09 ) $ (2.32 ) Weighted-average shares, basic and diluted 31,262 30,607 31,147 30,470 Adjusted operating expense reconciliation* Operating expense, as reported $ 151,779 $ 110,077 $ 403,885 $ 330,359 Impairment charges (641 ) — (641 ) — Business transformation costs (7,360 ) (2,999 ) (8,656 ) (14,094 ) Adjusted operating expense $ 143,778 $ 107,078 $ 394,588 $ 316,265 *Certain numbers expressed may not sum due to rounding.
1 Net loss for the three and nine months ended September 30, 2024 includes $32.1 million of acquired in-process research and development expense. -
MIL-OSI: Transocean Ltd. Reports Third Quarter 2024 Results
Source: GlobeNewswire (MIL-OSI)
Three months ended Three months ended September 30, June 30, sequential September 30, year-over-year 2024 2024 change 2023 change (In millions, except per share amounts, percentages and backlog) Contract drilling revenues $ 948 $ 861 $ 87 $ 713 $ 235 Adjusted contract drilling revenues $ 948 $ 861 $ 87 $ 721 $ 227 Revenue efficiency (1) 94.5 % 96.9 % 95.4 % Operating and maintenance expense $ 563 $ 534 $ 29 $ 524 $ 39 Net loss attributable to controlling interest $ (494 ) $ (123 ) $ (371 ) $ (220 ) $ (274 ) Diluted loss per share $ (0.58 ) $ (0.15 ) $ (0.43 ) $ (0.28 ) $ (0.30 ) Adjusted EBITDA $ 342 $ 284 $ 58 $ 162 $ 180 Adjusted EBITDA margin 36.0 % 33.0 % 22.5 % Adjusted net income (loss) $ 64 $ (123 ) $ 187 $ (280 ) $ 344 Adjusted diluted earnings (loss) per share $ — $ (0.15 ) $ 0.15 $ (0.36 ) $ 0.36 Backlog as of the October 2024 Fleet Status Report $ 9.3 billion STEINHAUSEN, Switzerland, Oct. 30, 2024 (GLOBE NEWSWIRE) — Transocean Ltd. (NYSE: RIG) today reported a net loss attributable to controlling interest of $494 million, $0.58 per diluted share, for the three months ended September 30, 2024.
Third quarter results included net unfavorable items of $558 million or $0.58 per diluted share as follows:
- $617 million, $0.64 per diluted share, loss on impairment of assets, net of tax.
Partially offset by:
- $21 million , $0.02 per diluted share, gain on retirement of debt; and
- $38 million, $0.04 per diluted share, discrete tax items, net.
After consideration of these net unfavorable items, third quarter 2024 adjusted net income was $64 million.
Contract drilling revenues for the three months ended September 30, 2024, increased sequentially by $87 million to $948 million, primarily due to increased rig utilization, increased dayrates for two rigs, higher reimbursement revenues and a full quarter of revenues from the newbuild ultra-deepwater drillship Deepwater Aquila, partially offset by lower revenue efficiency across the fleet.
Operating and maintenance expense was $563 million, compared with $534 million in the prior quarter. The sequential increase was the result of increased fleet activity, including a full quarter of operations from Deepwater Aquila, partially offset by reduced operating costs related to Transocean Norge following the acquisition of Orion Holdings (Cayman) Limited in June 2024.
General and administrative expense was $47 million, down from $59 million in the second quarter. The decrease was primarily due to reduced costs associated with the early retirement of certain personnel and lower professional fees.
Interest expense net of capitalized amounts was $154 million, compared to $143 million in the prior quarter, excluding the favorable adjustment of $74 million and $69 million in the third and second quarter, respectively, for the fair value of the bifurcated exchange feature related to the 4.625% exchangeable bonds. Interest income was $11 million, compared to $14 million in the prior quarter.
The Effective Tax Rate(2) was 6.0%, down from 474.5% in the prior quarter. The decrease was primarily due to rig impairments, rig sales and other ordinary movement in income before tax. The Effective Tax Rate excluding discrete items was 22.5% compared to 416.3% in the previous quarter.
Cash provided by operating activities was $194 million during the third quarter of 2024, representing an increase of $61 million compared to the prior quarter. The sequential increase was primarily due to increased operating activities, improved cash collected from customers and timing of payments to suppliers, partially offset by higher interest payments.
Third quarter 2024 capital expenditures of $58 million were primarily associated with Deepwater Aquila. This compares with $84 million in the prior quarter.
“As illustrated by the nearly $1.3 billion in backlog booked in the third quarter, including the recent award for Deepwater Conqueror, the demand for our fleet of high specification ultra-deepwater and harsh environment rigs remains strong,” said Chief Executive Officer, Jeremy Thigpen. “With these most recent awards, more than 97% of Transocean’s active fleet is contracted in 2025, once again demonstrating that our customers clearly recognize Transocean’s unique capabilities – our rigs, crews and superior operational performance – add value to their programs.”
Thigpen concluded, “With approximately $9.3 billion in backlog, and clear visibility to future demand, we will remain focused on delivering safe, reliable and efficient operations for our customers and continue to maximize cash generation to improve our balance sheet, as we did in the third quarter with $136 million of free cash flow.”
Non-GAAP Financial Measures
We present our operating results in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”). We believe certain financial measures, such as Adjusted Contract Drilling Revenues, EBITDA, Adjusted EBITDA and Adjusted Net Income, which are non-GAAP measures, provide users of our financial statements with supplemental information that may be useful in evaluating our operating performance. We believe that such non-GAAP measures, when read in conjunction with our operating results presented under U.S. GAAP, can be used to better assess our performance from period to period and relative to performance of other companies in our industry, without regard to financing methods, historical cost basis or capital structure. Such non-GAAP measures should be considered as a supplement to, and not as a substitute for, financial measures prepared in accordance with U.S. GAAP.All non-GAAP measure reconciliations to the most comparative U.S. GAAP measures are displayed in quantitative schedules on the company’s website at: www.deepwater.com.
About Transocean
Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. The company specializes in technically demanding sectors of the global offshore drilling business with a particular focus on ultra-deepwater and harsh environment drilling services, and operates the highest specification floating offshore drilling fleet in the world.
Transocean owns or has partial ownership interests in and operates a fleet of 34 mobile offshore drilling units, consisting of 26 ultra-deepwater floaters and eight harsh environment floaters.
For more information about Transocean, please visit: www.deepwater.com.
Conference Call Information
Transocean will conduct a teleconference starting at 9 a.m. EDT, 2 p.m. CET, on Thursday, October 31, 2024, to discuss the results. To participate, dial +1 785-424-1226 and refer to conference code 827284 approximately 15 minutes prior to the scheduled start time.
The teleconference will be simulcast in a listen-only mode at: www.deepwater.com, by selecting Investors, News, and Webcasts. Supplemental materials that may be referenced during the teleconference will be available at: www.deepwater.com, by selecting Investors, Financial Reports.
A replay of the conference call will be available after 12 p.m. EDT, 5 p.m. CET, on Thursday, October 31, 2024. The replay, which will be archived for approximately 30 days, can be accessed at +1 402-220-9184, passcode 827284. The replay will also be available on the company’s website.
Forward-Looking Statements
The statements described herein that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements could contain words such as “possible,” “intend,” “will,” “if,” “expect,” or other similar expressions. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, estimated duration of customer contracts, contract dayrate amounts, future contract commencement dates and locations, planned shipyard projects and other out-of-service time, sales of drilling units, timing of the company’s newbuild deliveries, operating hazards and delays, risks associated with international operations, actions by customers and other third parties, the fluctuation of current and future prices of oil and gas, the global and regional supply and demand for oil and gas, the intention to scrap certain drilling rigs, the success of our business following prior acquisitions, the effects of the spread of and mitigation efforts by governments, businesses and individuals related to contagious illnesses, and other factors, including those and other risks discussed in the company’s most recent Annual Report on Form 10-K for the year ended December 31, 2023, and in the company’s other filings with the SEC, which are available free of charge on the SEC’s website at: www.sec.gov. Should one or more of these risks or uncertainties materialize (or the other consequences of such a development worsen), or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or expressed or implied by such forward-looking statements. All subsequent written and oral forward-looking statements attributable to the company or to persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be required by law. All non-GAAP financial measure reconciliations to the most comparative GAAP measure are displayed in quantitative schedules on the company’s website at: www.deepwater.com.
This press release, or referenced documents, do not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and do not constitute an offering prospectus within the meaning of the Swiss Financial Services Act (“FinSA”) or advertising within the meaning of the FinSA. Investors must rely on their own evaluation of Transocean and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of Transocean.
Notes
(1) Revenue efficiency is defined as actual operating revenues, excluding revenues for contract terminations and reimbursements, for the measurement period divided by the maximum revenue calculated for the measurement period, expressed as a percentage. Maximum revenue is defined as the greatest amount of contract drilling revenues the drilling unit could earn for the measurement period, excluding revenues for incentive provisions, reimbursements and contract terminations. See the accompanying schedule entitled “Revenue Efficiency.” (2) Effective Tax Rate is defined as income tax expense or benefit divided by income or loss before income taxes. See the accompanying schedule entitled “Supplemental Effective Tax Rate Analysis.” Analyst Contact:
Alison Johnson
+1 713-232-7214Media Contact:
Pam Easton
+1 713-232-7647TRANSOCEAN LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data) (Unaudited) Three months ended Nine months ended September 30, September 30, 2024 2023 2024 2023 Contract drilling revenues $ 948 $ 713 $ 2,572 $ 2,091 Costs and expenses Operating and maintenance 563 524 1,620 1,417 Depreciation and amortization 190 192 559 560 General and administrative 47 44 158 137 800 760 2,337 2,114 Loss on impairment of assets (629 ) (5 ) (772 ) (58 ) Loss on disposal of assets, net (4 ) (3 ) (10 ) (173 ) Operating loss (485 ) (55 ) (547 ) (254 ) Other income (expense), net Interest income 11 12 40 42 Interest expense, net of amounts capitalized (80 ) (232 ) (271 ) (649 ) Gain (loss) on retirement of debt 21 — 161 (32 ) Other, net 8 12 32 35 (40 ) (208 ) (38 ) (604 ) Loss before income tax benefit (525 ) (263 ) (585 ) (858 ) Income tax benefit (31 ) (43 ) (66 ) (8 ) Net loss (494 ) (220 ) (519 ) (850 ) Net income attributable to noncontrolling interest — — — — Net loss attributable to controlling interest $ (494 ) $ (220 ) $ (519 ) $ (850 ) Loss per share Basic $ (0.56 ) $ (0.28 ) $ (0.62 ) $ (1.13 ) Diluted $ (0.58 ) $ (0.28 ) $ (0.65 ) $ (1.13 ) Weighted-average shares outstanding Basic 879 774 840 755 Diluted 954 774 915 755 TRANSOCEAN LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In millions, except share data) (Unaudited) September 30, December 31, 2024 2023 Assets Cash and cash equivalents $ 435 $ 762 Accounts receivable, net of allowance of $2 at September 30, 2024 and December 31, 2023 594 512 Materials and supplies, net of allowance of $176 and $198 at September 30, 2024 and December 31, 2023, respectively 425 426 Assets held for sale 345 49 Restricted cash and cash equivalents 365 233 Other current assets 179 144 Total current assets 2,343 2,126 Property and equipment 22,412 23,875 Less accumulated depreciation (6,424 ) (6,934 ) Property and equipment, net 15,988 16,941 Contract intangible assets — 4 Deferred tax assets, net 165 44 Other assets 1,014 1,139 Total assets $ 19,510 $ 20,254 Liabilities and equity Accounts payable $ 255 $ 323 Accrued income taxes 13 23 Debt due within one year 457 370 Other current liabilities 706 681 Total current liabilities 1,431 1,397 Long-term debt 6,503 7,043 Deferred tax liabilities, net 570 540 Other long-term liabilities 778 858 Total long-term liabilities 7,851 8,441 Commitments and contingencies Shares, $0.10 par value, 1,057,879,029 authorized, 141,262,093 conditionally authorized, 940,828,901 issued and 875,803,595 outstanding at September 30, 2024, and CHF 0.10 par value, 1,021,294,549 authorized, 142,362,093 conditionally authorized, 843,715,858 issued and 809,030,846 outstanding at December 31, 2023 87 81 Additional paid-in capital 14,871 14,544 Accumulated deficit (4,552 ) (4,033 ) Accumulated other comprehensive loss (179 ) (177 ) Total controlling interest shareholders’ equity 10,227 10,415 Noncontrolling interest 1 1 Total equity 10,228 10,416 Total liabilities and equity $ 19,510 $ 20,254 TRANSOCEAN LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) Nine months ended September 30, 2024 2023 Cash flows from operating activities Net loss $ (519 ) $ (850 ) Adjustments to reconcile to net cash provided by operating activities: Amortization of contract intangible asset 4 45 Depreciation and amortization 559 560 Share-based compensation expense 38 30 Loss on impairment of assets 772 58 Loss on impairment of investment in unconsolidated affiliate 5 — Loss on disposal of assets, net 10 173 Fair value adjustment to bifurcated compound exchange feature (153 ) 272 Amortization of debt-related balances, net 39 38 (Gain) loss on retirement of debt (161 ) 32 Deferred income tax expense (benefit) (91 ) 1 Other, net (6 ) 21 Changes in deferred revenues, net 98 40 Changes in deferred costs, net (26 ) (125 ) Changes in other operating assets and liabilities, net (328 ) (229 ) Net cash provided by operating activities 241 66 Cash flows from investing activities Capital expenditures (225 ) (207 ) Investment in loans to unconsolidated affiliates (3 ) (3 ) Investment in equity of unconsolidated affiliate — (10 ) Proceeds from disposal of assets, net of costs to sell 99 10 Cash acquired in acquisition of unconsolidated affiliates 5 7 Net cash used in investing activities (124 ) (203 ) Cash flows from financing activities Repayments of debt (2,073 ) (1,707 ) Proceeds from issuance of debt, net of issue costs 1,767 1,664 Other, net (6 ) (3 ) Net cash used in financing activities (312 ) (46 ) Net decrease in unrestricted and restricted cash and cash equivalents (195 ) (183 ) Unrestricted and restricted cash and cash equivalents, beginning of period 995 991 Unrestricted and restricted cash and cash equivalents, end of period $ 800 $ 808 TRANSOCEAN LTD. AND SUBSIDIARIES FLEET OPERATING STATISTICS Three months ended September 30, June 30, September 30, Contract Drilling Revenues (in millions) 2024 2024 2023 Ultra-deepwater floaters $ 668 $ 606 $ 516 Harsh environment floaters 280 255 197 Total contract drilling revenues $ 948 $ 861 $ 713 Three months ended September 30, June 30, September 30, Average Daily Revenue (1) 2024 2024 2023 Ultra-deepwater floaters $ 426,700 $ 433,900 $ 406,500 Harsh environment floaters 464,900 449,600 357,400 Total fleet average daily revenue $ 436,800 $ 438,300 $ 391,300 Three months ended September 30, June 30, September 30, Utilization (2) 2024 2024 2023 Ultra-deepwater floaters 60.7 % 53.5 % 45.0 % Harsh environment floaters 75.0 % 73.0 % 63.0 % Total fleet average rig utilization 63.9 % 57.8 % 49.4 % Three months ended September 30, June 30, September 30, Revenue Efficiency (3) 2024 2024 2023 Ultra-deepwater floaters 92.5 % 96.5 % 94.3 % Harsh environment floaters 100.1 % 98.1 % 98.1 % Total fleet average revenue efficiency 94.5 % 96.9 % 95.4 % (1) Average daily revenue is defined as operating revenues, excluding revenues for contract terminations, reimbursements and contract intangible amortization, earned per operating day. An operating day is defined as a day for which a rig is contracted to earn a dayrate during the firm contract period after operations commence. (2) Rig utilization is defined as the total number of operating days divided by the total number of rig calendar days in the measurement period, expressed as a percentage. (3) Revenue efficiency is defined as actual operating revenues, excluding revenues for contract terminations and reimbursements, for the measurement period divided by the maximum revenue calculated for the measurement period, expressed as a percentage. Maximum revenue is defined as the greatest amount of contract drilling revenues the drilling unit could earn for the measurement period, excluding revenues for incentive provisions, reimbursements and contract terminations. TRANSOCEAN LTD. AND SUBSIDIARIES NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE (in millions, except per share data) YTD QTD YTD QTD YTD 09/30/24 09/30/24 06/30/24 06/30/24 03/31/24 Adjusted Net Income (Loss) Net income (loss) attributable to controlling interest, as reported $ (519 ) $ (494 ) $ (25 ) $ (123 ) $ 98 Loss on impairment of assets, net of tax 755 617 138 138 — Loss on impairment of investment in unconsolidated affiliates 5 — 5 4 1 Gain on retirement of debt (161 ) (21 ) (140 ) (140 ) — Discrete tax items (161 ) (38 ) (123 ) (2 ) (121 ) Net income (loss), as adjusted $ (81 ) $ 64 $ (145 ) $ (123 ) $ (22 ) Adjusted Diluted Earnings (Loss) Per Share: Diluted earnings (loss) per share, as reported $ (0.65 ) $ (0.58 ) $ (0.03 ) $ (0.15 ) $ 0.11 Loss on impairment of assets, net of tax 0.82 0.64 0.17 0.17 — Loss on impairment of investment in unconsolidated affiliates 0.01 — — — — Gain on retirement of debt (0.18 ) (0.02 ) (0.17 ) (0.17 ) — Discrete tax items (0.18 ) (0.04 ) (0.15 ) — (0.14 ) Diluted earnings (loss) per share, as adjusted $ (0.18 ) $ — $ (0.18 ) $ (0.15 ) $ (0.03 ) YTD QTD YTD QTD YTD QTD YTD 12/31/23 12/31/23 09/30/23 09/30/23 06/30/23 06/30/23 03/31/23 Adjusted Net Loss Net loss attributable to controlling interest, as reported $ (954 ) $ (104 ) $ (850 ) $ (220 ) $ (630 ) $ (165 ) $ (465 ) Loss on impairment of assets 57 (1 ) 58 5 53 53 — Loss on disposal of assets, net 169 — 169 — 169 — 169 Loss on impairment of investment in unconsolidated affiliate 5 5 — — — — — Loss on conversion of debt to equity 27 24 3 — 3 3 — (Gain) loss on retirement of debt 31 (1 ) 32 — 32 — 32 Discrete tax items (74 ) 3 (77 ) (65 ) (12 ) (1 ) (11 ) Net loss, as adjusted $ (739 ) $ (74 ) $ (665 ) $ (280 ) $ (385 ) $ (110 ) $ (275 ) Adjusted Diluted Loss Per Share: Diluted loss per share, as reported $ (1.24 ) $ (0.13 ) $ (1.13 ) $ (0.28 ) $ (0.85 ) $ (0.22 ) $ (0.64 ) Loss on impairment of assets 0.07 — 0.08 0.01 0.07 0.07 — Loss on disposal of assets, net 0.22 — 0.23 — 0.23 — 0.23 Loss on impairment of investment in unconsolidated affiliate 0.01 0.01 — — — — — Loss on conversion of debt to equity 0.04 0.03 — — — — — (Gain) loss on retirement of debt 0.04 — 0.04 — 0.04 — 0.04 Discrete tax items (0.10 ) — (0.10 ) (0.09 ) (0.01 ) — (0.01 ) Diluted loss per share, as adjusted $ (0.96 ) $ (0.09 ) $ (0.88 ) $ (0.36 ) $ (0.52 ) $ (0.15 ) $ (0.38 ) TRANSOCEAN LTD. AND SUBSIDIARIES NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS ADJUSTED CONTRACT DRILLING REVENUES EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION AND RELATED MARGINS (in millions, except percentages) YTD QTD YTD QTD YTD 09/30/24 09/30/24 06/30/24 06/30/24 03/31/24 Contract drilling revenues $ 2,572 $ 948 $ 1,624 $ 861 $ 763 Contract intangible asset amortization 4 — 4 — 4 Adjusted Contract Drilling Revenues $ 2,576 $ 948 $ 1,628 $ 861 $ 767 Net income (loss) $ (519 ) $ (494 ) $ (25 ) $ (123 ) $ 98 Interest expense, net of interest income 231 69 162 60 102 Income tax expense (benefit) (66 ) (31 ) (35 ) 156 (191 ) Depreciation and amortization 559 190 369 184 185 Contract intangible asset amortization 4 — 4 — 4 EBITDA 209 (266 ) 475 277 198 Loss on impairment of assets 772 629 143 143 — Loss on impairment of investment in unconsolidated affiliates 5 — 5 4 1 Gain on retirement of debt (161 ) (21 ) (140 ) (140 ) — Adjusted EBITDA $ 825 $ 342 $ 483 $ 284 $ 199 Profit (loss) margin (20.2 ) % (52.0 ) % (1.5 ) % (14.3 ) % 12.9 % EBITDA margin 8.1 % (28.1 ) % 29.2 % 32.2 % 25.8 % Adjusted EBITDA margin 32.0 % 36.0 % 29.7 % 33.0 % 26.0 % YTD QTD YTD QTD YTD QTD YTD 12/31/23 12/31/23 09/30/23 09/30/23 06/30/23 06/30/23 03/31/23 Contract drilling revenues $ 2,832 $ 741 $ 2,091 $ 713 $ 1,378 $ 729 $ 649 Contract intangible asset amortization 52 7 45 8 37 19 18 Adjusted Contract Drilling Revenues $ 2,884 $ 748 $ 2,136 $ 721 $ 1,415 $ 748 $ 667 Net loss $ (954 ) $ (104 ) $ (850 ) $ (220 ) $ (630 ) $ (165 ) $ (465 ) Interest expense, net of interest income 594 (13 ) 607 220 387 157 230 Income tax expense (benefit) 13 21 (8 ) (43 ) 35 (16 ) 51 Depreciation and amortization 744 184 560 192 368 186 182 Contract intangible asset amortization 52 7 45 8 37 19 18 EBITDA 449 95 354 157 197 181 16 Loss on impairment of assets 57 (1 ) 58 5 53 53 — Loss on disposal of assets, net 169 — 169 — 169 — 169 Loss on impairment of investment in unconsolidated affiliate 5 5 — — — — — Loss on conversion of debt to equity 27 24 3 — 3 3 — (Gain) loss on retirement of debt 31 (1 ) 32 — 32 — 32 Adjusted EBITDA $ 738 $ 122 $ 616 $ 162 $ 454 $ 237 $ 217 Loss margin (33.7 ) % (14.0 ) % (40.7 ) % (30.9 ) % (45.7 ) % (22.6 ) % (71.6 ) % EBITDA margin 15.6 % 12.7 % 16.6 % 21.8 % 13.9 % 24.2 % 2.4 % Adjusted EBITDA margin 25.6 % 16.3 % 28.9 % 22.5 % 32.1 % 31.7 % 32.5 % TRANSOCEAN LTD. AND SUBSIDIARIES SUPPLEMENTAL EFFECTIVE TAX RATE ANALYSIS (in millions, except tax rates) Three months ended Nine months ended September 30, June 30, September 30, September 30, September 30, 2024 2024 2023 2024 2023 Income (loss) before income taxes $ (525 ) $ 33 $ (263 ) $ (585 ) $ (858 ) Loss on impairment of assets 629 143 5 772 58 Loss on disposal of assets, net — — — — 169 Loss on impairment of investment in unconsolidated affiliates — 4 — 5 — Loss on conversion of debt to equity — — — — 3 (Gain) loss on retirement of debt (21 ) (140 ) — (161 ) 32 Adjusted income (loss) before income taxes $ 83 $ 40 $ (258 ) $ 31 $ (596 ) Income tax expense (benefit) $ (31 ) $ 156 $ (43 ) $ (66 ) $ (8 ) Loss on impairment of assets 12 5 — 17 — Loss on disposal of assets, net — — — — — Loss on impairment of investment in unconsolidated affiliates — — — — — Loss on conversion of debt to equity — — — — — (Gain) loss on retirement of debt — — — — — Changes in estimates (1) 38 2 65 161 77 Adjusted income tax expense (benefit) (2) $ 19 $ 163 $ 22 $ 112 $ 69 Effective Tax Rate (3) 6.0 % 474.5 % 16.3 % 11.3 % 0.9 % Effective Tax Rate, excluding discrete items (4) 22.5 % 416.3 % (8.7 ) % 364.0 % (11.7 ) % (1) Our estimates change as we file tax returns, settle disputes with tax authorities, or become aware of changes in laws and other events that have an effect on our (a) deferred taxes, (b) valuation allowances on deferred taxes and (c) other tax liabilities. (2) The three months ended September 30, 2024 included $283 million of additional tax benefit, reflecting the cumulative effect of a decrease in the annual effective tax rate from the previous quarter estimate. (3) Our effective tax rate is calculated as income tax expense or benefit divided by income or loss before income taxes. (4) Our effective tax rate, excluding discrete items, is calculated as income tax expense or benefit, excluding various discrete items (such as changes in estimates and tax on items excluded from income before income taxes), divided by income or loss before income taxes, excluding gains and losses on sales and similar items pursuant to the accounting standards for income taxes related to estimating the annual effective tax rate. Transocean Ltd. and subsidiaries Non-GAAP Financial Measures and Reconciliations Free Cash Flow and Levered Free Cash Flow (in millions) YTD QTD YTD QTD YTD 09/30/24 09/30/24 06/30/24 06/30/24 03/31/24 Cash provided by (used in) operating activities $ 241 $ 194 $ 47 $ 133 $ (86 ) Capital expenditures (225 ) (58 ) (167 ) (84 ) (83 ) Free Cash Flow 16 136 (120 ) 49 (169 ) Debt repayments (2,073 ) (258 ) (1,815 ) (1,664 ) (151 ) Debt repayments, paid from debt proceeds 1,748 99 1,649 1,649 – Levered Free Cash Flow $ (309 ) $ (23 ) $ (286 ) $ 34 $ (320 ) YTD QTD YTD QTD YTD QTD YTD 12/31/23 12/31/23 09/30/23 09/30/23 06/30/23 06/30/23 03/31/23 Cash provided by (used in) operating activities $ 164 $ 98 $ 66 $ (44 ) $ 110 $ 157 $ (47 ) Capital expenditures (427 ) (220 ) (207 ) (50 ) (157 ) (76 ) (81 ) Free Cash Flow (263 ) (122 ) (141 ) (94 ) (47 ) 81 (128 ) Debt repayments (1,717 ) (10 ) (1,707 ) (139 ) (1,568 ) (4 ) (1,564 ) Debt repayments, paid from debt proceeds 1,156 – 1,156 – 1,156 – 1,156 Levered Free Cash Flow $ (824 ) $ (132 ) $ (692 ) $ (233 ) $ (459 ) $ 77 $ (536 ) YTD QTD YTD QTD YTD QTD YTD 12/31/22 12/31/22 09/30/22 09/30/22 06/30/22 06/30/22 03/31/22 Cash provided by (used in) operating activities $ 448 $ 178 $ 270 $ 230 $ 40 $ 41 $ (1 ) Capital expenditures (717 ) (409 ) (308 ) (87 ) (221 ) (115 ) (106 ) Free Cash Flow (269 ) (231 ) (38 ) 143 (181 ) (74 ) (107 ) Debt repayments (554 ) (101 ) (453 ) (196 ) (257 ) (92 ) (165 ) Debt repayments, paid from debt proceeds – – – – – – – Levered Free Cash Flow $ (823 ) $ (332 ) $ (491 ) $ (53 ) $ (438 ) $ (166 ) $ (272 ) -
MIL-OSI Submissions: Economy – KOF Economic Barometer: Sluggish economic recovery
Source: KOF Economic Institute
In October, the KOF Economic Barometer drops noticeably. Although it is still within the medium-term average range, for the first time since January of this year it is no longer above the 100 mark. The recovery of the Swiss economy is very hesitant.
The KOF Economic Barometer loses 5.0 points in October, falling to a level of 99.5 (after a revised 104.5 in September). The indicator bundles of all production-side categories included in the barometer decline in October: the indicators for manufacturing, financial and insurance services, other services, hospitality and construction. However, the demand-side indicators, the indicators for foreign demand and consumer demand, are not following this downward tendency. The development of the demand-side indicators, though, does not currently give hope for stronger impetus.
In the producing industries (manufacturing and construction), the indicators for almost all aspects of business activity are under pressure. This applies in particular to export prospects, production activity, the competitive situation and order income. Only the indicators for the purchase of primary products and the inventory situation cushioned the negative development somewhat.
Within the manufacturing, the outlook is becoming bleaker, particularly for chemical and pharmaceutical companies, the metal industry, the wood, glass, stone and earth segment and for food and beverage producers. The outlook is slightly more favourable for textile and clothing companies. -
MIL-OSI United Kingdom: Update following round 5 of negotiations on an enhanced Free Trade Agreement with Switzerland
Source: United Kingdom – Executive Government & Departments
The fifth round of negotiations on an enhanced Free Trade Agreement (FTA) with Switzerland took place in London between 14 and 18 October 2024
The fifth round of negotiations on an enhanced Free Trade Agreement (FTA) with Switzerland took place in London between 14 and 18 October 2024.
The talks were the UK’s first with the Swiss since the Secretary of State for Business and Trade announced the government’s intention to deliver the UK’s FTA negotiations programme in July.
FTAs have an important role to play in achieving economic growth. A stronger trade relationship with Switzerland will contribute to growth, jobs and prosperity in the UK, providing long-term certainty on UK business travel to Switzerland and helping data and ideas flow seamlessly between two world-leading services powerhouses. Total trade between the UK and Switzerland was worth £50.8 billion in 2023.
UK negotiators made good progress in this round and covered almost all areas of the negotiation.
Talks continue to be constructive, with both countries working towards agreeing ambitious outcomes in key areas, including services, investment and digital.
Round 6 of negotiations is expected to take place in Switzerland in early 2025. The government will continue to work towards delivering outcomes in the FTA that secure economic growth for the UK.
The government will only ever sign a trade agreement which aligns with the UK’s national interests, upholding our high standards across a range of sectors, including protections for the National Health Service.
Any organisations or individuals interested in speaking to the Department for Business and Trade about negotiations with Switzerland should do so by emailing ch.fta.engagement@businessandtrade.gov.uk.
Updates to this page
Published 30 October 2024 -
MIL-OSI Europe: 20 years of ch.ch: A successful public service model
Source: Switzerland – Federal Administration in English
Since its launch in October 2004, the ch.ch portal has developed into a highly valued source of information. The portal, which is available in five languages, receives around 20 million queries a year. It laid the foundations for citizen-centred communication on the part of Switzerland’s authorities and will continue to develop in that vein to reflect the ongoing trend towards digital transformation.
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MIL-OSI Europe: New committee to improve workplace equality in the public sector
Source: Switzerland – Federal Administration in English
The Charter for equal pay in the public sector brings together the Confederation, can-tons, communes and state-associated organisations that have undertaken to actively promote equal pay for women and men. The Federal Council intends to strengthen this Charter, in particular by setting up a committee to coordinate various measures and en-sure the exchange of information among signatories. At its first meeting yesterday in Bern, the committee chose three action areas to be prioritised in the coming years.