The Joint General Meeting of April 29 was attended by 867 shareholders (versus 745 in 2003, representing an improvement of 16%), and a record quorum of 46.04% of voting rights.
The speeches and debates covered two main topics:
- Group results, strategy and outlook
- Sustainable development and corporate governance, resolutions, share performance and share ownership structure.
The Meeting was attended by:
- all Board members exceptMrBaird due to health reasons, andMrHata who was in Japan
- 6 members of the consultative Shareholders Committee.
The net dividend paid in 2003 stood at EUR 2.50, up by 19% on the previous year. The dividend will be payable as of May 18, 2004.


Summary of the message from Chairman Daniel Bouton

Our performance was very strong in 2003. Group net income grew by 78% to EUR2.5billion, thanks to ongoing growth, the development of our businesses and our strategy aimed at improving our risk profile. The strength of the Group is based on a structure comprising three core businesses which bring a balanced contribution to income thanks to healthy organic growth which is reinforced by targeted acquisitions:
> Retail Banking in France represents 36% of net banking income in 2003 and one-third of the Group’s capital,
> Corporate and Investment Banking generates 33% of net banking income and mobilises 27% of the Group’s capital,
> all of the high growth potential businesses (the Group’s "growth drivers"), including Retail Banking outside France, Specialised

Financial Services and Asset Management and Private Banking, represent 31% of net banking income and 40% of the Group’s capital.
Today, two-thirds of the Group’s capital is allocated to Retail Banking, Specialised Financial Services and Asset Management, businesses which are less volatile than Corporate and Investment Banking. This breakdown enabled SG to turn in excellent results across all business lines.

With the improved business environment and economic recovery, notably in the United States, and the upholding of low interest rates, net banking income recorded strong growth of 7%, to EUR15.6billion, rising by more than 4% for Retail Banking in France, 18% for Financial Services and 8% for Corporate and Investment Banking. The strong growth in income is the result of both organic activities and our acquisitions. The smooth integration of our acquisitions, made in Financial Services, Retail Banking outside France and Asset Management and Private Banking, boosted the net banking income of the companies acquired by 21% between 2002 and 2003.

Retail Banking outside France now serves around 5 million customers, one-third of whom in the enlarged European Union. Our Asset Management and Private Banking arm performed remarkably, with a successful market penetration in Asia and, in particular, in China. Corporate and Investment Banking posted exceptional results in its debt, financing and equity activities. The cost/income ratio dropped by about 4.6 points between 2002 and 2003, reflecting greater efficiency in the use of our resources. Lastly, the headcount fell slightly over the year when adjusted for changes in Group structure: -0.7%. The stability in operating expenses attests to tight cost control resulting from three years of effort, with net allocation to provisions down by 6% thanks to better management of our commitments. The Group’s operating performance is therefore remarkable: a 40% rise in operating income over the year and Group net income of EUR 2.5 billion, up by 78%, representing a return on equity after tax of 16.2%. Earnings per share stood at EUR 6.07, also showing strong growth.