Three Internal Control Committee meetings were held during 2025, on 26 February, 26 June and 19 September respectively. An e-CCI bulletin, covering the results of the third-quarter 2025 control campaign and the key highlights of the quarter, was issued on 23 December 2025. The reports on Internal Control, risk measurement and monitoring, and cheque verification for the 2024 financial year were presented at the Internal Control Committee meeting on 26 February 2025, then to the Specialised Audit and Risk Committee on 14 March 2025, and approved by the Board of Directors on 13 March 2025 without comment. All the steps required to publish the Internal Control Report and its appendices on the Onegate website with authentication of signature by the Deputy Chief Executive Officer were completed on 26 March 2025, in compliance with the deadlines set. Finally, the Cheque Security Framework was finalised and published on 21 May 2025. Since 2021, we have stepped up our efforts to provide data for the Banque de France on fraud and means of payment by introducing half-yearly reporting. The reports on fraud and payment methods for the second half of 2024 were uploaded to the Onegate website on 20 February 2025, and those for the first half of 2025 on 26 September 2025. The half-yearly report on Internal Control was submitted to the Board of Directors of CFM Indosuez Wealth on 23 September 2025. The Specialised Audit and Risk Committee meetings were chaired by Mr Pascal Brouard and attended by the Directors, the Statutory Auditors, the Chief Executive of CFM Indosuez Wealth, the General Inspection Manager, and, in turn, representatives from the Credit Risk, Permanent Control, Legal, Finance, Compliance, Fraud and IT Security departments. These committee meetings took place on the day before the quarterly Board meetings, held on 13 March, 13 May, 23 September and 11 December 2025. It should also be noted that extraordinary meetings of the Board of Directors were held on 21 May, 11 June and 5 November 2025. At its meeting on 13 March 2025, the Board of Directors approved the risk appetite matrix, in accordance with the guidelines issued by Indosuez and Crédit Agricole S.A. As part of efforts to strengthen risk monitoring, the existing matrix has been expanded with the addition of 12 new indicators. In addition, four indicators remained unchanged, ten had their risk appetite and/or tolerance thresholds adjusted, and five indicators deemed irrelevant were removed. The Board of Directors is briefed on the performance of key indicators at each quarterly meeting. Any instance where the tolerance threshold is exceeded is reported to the Directors as soon as it is identified. CREDIT AND COUNTERPARTY RISK CFM Indosuez Wealth is exposed to counterparty risks in relation to natural persons, to asset structures whose economic beneficiaries are natural persons, as well as commercial companies linked to clients who are entrepreneurs whose activity or decisionmaking centre is based in Monaco. Any exception to this scope of counterparties requires prior approval by Indosuez Wealth Group General Management and its RPC department. With regard to financial institutions, the Indosuez Wealth Group has no risk delegation in place, in accordance with Crédit Agricole CIB’s procedures. The governance of the credit policy is mainly defined within the framework of the Indosuez directive 10.2.FR relating to credit risk management within the Indosuez Wealth Management group, updated during the 2025 financial year. Oversight Lending process The Indosuez Wealth Group's framework directive defines credit risk management in private banking, specifying the nature and type of eligible counterparties as well as the financing methods that can be envisaged. The lending policy is based mainly on the nature of the transactions, the delegate system, the credit decision process and the management of collateral. Transactions are selected based on the type of credit granted, which can take eight distinct forms: primarily working capital requirements, investment in movable assets, specific assets, mortgage loans, business financing, wealth management transactions, private equity investments, and the provision of sureties and guarantees. The local Risk Committee is the only body authorised to decide on the granting of credit, with representatives from the Legal and Compliance departments. In the event of an unfavourable opinion, an appeal procedure may be activated in order to submit the application to the higher decision-making body (local Risk Committee/Indosuez Wealth Group Credit Committee). Delegation mechanism All credit decisions are subject to the dual-signature principle: one signature from an authorised sales manager (Front Office) and one signature from an authorised representative of the Risk and Continuous Monitoring department (Risk), in accordance with the local delegation of authority. The Chief Executive Officer of CFM Indosuez Wealth has delegated authority to enter into risk commitments for operations relating to Wealth Management and Corporate clients. The Risk and Permanent Control Department manager has the same level of signing authority as the Chief Executive Officer. Following analysis and local review, credit files whose characteristics exceed CFM Indosuez Wealth’s delegation limits are subject to an arbitration procedure: they are referred to the Indosuez Wealth Group and, where appropriate, to RPC/DRI at Crédit Agricole CIB. Annual Report 2025 57
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