2 MAJOR STRUCTURAL TRANSACTIONS AND MATERIAL EVENTS DURING THE PERIOD IMPACT OF MILITARY OPERATIONS IN UKRAINE On 24 February 2022, a large-scale military operation was launched by Russia against Ukraine, associated with an invasion of the territory of Ukraine by the armed forces of Russia, with the involvement of Belarus. The European Union condemned this act of war and in response announced the implementation of restrictive, sectoral and individual measures. CFM Indosuez, in conjunction with the Crédit Agricole Group, has set up a crisis unit to monitor the impact of the decisions taken by the European Union and the Principality's government. The CFM Indosuez Wealth Group has no investments in Ukraine and Russia. These events had no significant impact on the 2023 accounts. As things stand, the impact on the 2024 accounts should be limited. PILLAR TWO - GLOBE New international tax rules have been established by the OECD, aimed at subjecting large international groups to additional taxation when the Effective Tax Rate (ETR) of a jurisdiction in which they are based is less than 15%. The purpose of these rules is to combat competition between countries based on tax rates. These rules will have to be transposed by the various Member States. 3 FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY Banking risks within CFM Indosuez Wealth are managed by the Risk and Permanent Control Department (DRCP) and the Finance and Strategy Department (DFS). These departments report to the Chief Executive Officer and are tasked with the management and ongoing control of credit and operational risks (DRCP) and financial risks (DFS). A description of these processes with detailed comments is provided in the "Risk Factors" chapter of the management report, as permitted by IFRS 7 Financial Instruments: Disclosures. The accounting breakdowns are shown in the financial statements. 3.1 CREDIT RISK 3.1.1 Changes in carrying amounts and value adjustments for losses during the period Value adjustments for losses correspond to the impairment of assets and to provisions for offbalance sheet commitments recognised in net income (“Cost of risk”) relating to credit risk. The following tables present a reconciliation of the opening and closing balances of value adjustments for losses recognised under Cost of Risk and the related carrying amounts, by accounting category and type of instrument. Annual Report 2023 85
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