The non-performing and disputed exposures on the balance sheet stay under control at €18 million in 2025, compared with €16 million in 2024 and €24 million in 2023, representing less than 1% of balance sheet outstandings which amounted to €3.6 billion in 2025, compared with €3.5 billion in 2024 and €3.2 billion in 2023. Given the mainly secured nature of our commitments, capital consumption remains low and the RWA allocated to credit risk stays below the appetite threshold defined for the business. MARKET RISK Market risk corresponds to the risk of losses in the value of financial instruments resulting from changes in market parameters such as exchange rates, interest rates, securities prices, derivatives and other assets. The mechanism for supervising client transactions and proprietary trading is based on first-level control provided by market operators and the risk department (Risk and Permanent Control Department - DRCP) of CFM Indosuez Wealth. It should be noted that part of the Market Activity Monitoring function has been transferred to Crédit Agricole Indosuez Wealth (Europe), with effect from 3 September, primarily to oversee Treasury operations (monitoring of limit sets). Advisory business and collateral values continue to be monitored locally. The main tasks of CFM Indosuez Wealth's MAM department as at 31 December 2025 are as follows: · Daily monitoring of compliance with the limits granted to the bank's customers · Monitoring of atypical or unauthorised transactions · Organising a monthly market committee meeting at which risk monitoring metrics are presented · Monitoring of collateral values. During the 2025 financial year, the number of instances of non-compliance remained limited, and each case was resolved promptly. Furthermore, the level of market RWA, although up slightly to €14 million (compared with €5 million in 2024, mainly due to changes in the model applied to public authorities with the introduction of a flat-rate LGD (Loss Given Default) of 45%), remains well below the warning threshold set at €45 million. Monitoring Credit and counterparty risks at CFM Indosuez Wealth are monitored by the Risk and Permanent Control Department (DRCP), which reports operationally to the Chief Executive Officer and in terms of line management to the Indosuez Wealth Risk and Permanent Control function. Counterparty risk is primarily focused on the client lending business and is part of Wealth Management business line’s risk management strategy, approved by the governing bodies of Crédit Agricole CIB and Crédit Agricole SA, then transposed in Indosuez Wealth Group’s framework directive. Credit risk management mechanisms Guarantees received and collateral Collateral is mainly provided by way of pledging assets held on the Bank’s books: bonds, shares, other securities and deposits, subject to compliance with specific conditions (eligible assets, liquid assets, assets valued on a continuous basis, pledged in favour of the Bank, credit rating, etc.). It may also be effected by means of bank guarantees, or by the assignment or delegation of life insurance policies to the Bank, provided that the underlying assets are indeed eligible for a pledge value. The pledge value of pledged financial instruments is determined on the basis of liquidity, volatility, issuer quality (S&P and Moody’s ratings), risk profile, etc. Equity securities subject to a pledge value must also be listed on approved stock exchanges and indices, with the exception of the secondary market, the open market or the new market. Furthermore, strict rules on the diversification and concentration of collateral must be adhered to in order to ensure the robustness of the system. Monitoring process The risk measurement and monitoring framework is based on a regular review of the facilities granted, quarterly meetings of the Sensitive Business committee, and daily monitoring of compliance with limits and collateral requirements. The monitoring of counterparty risk, including compliance with limits and monitoring of collateral, is carried out at a second level by the Credit Risk Manager, who checks it and reports to General Management. Exposure The level of provisioning for credit risk remains limited and well-covered due to the nature of the investments, the type of counterparty and rate of coverage of the guarantees, which provide effective recovery through the possible use of collateral. Therefore, the amount provisioned at 31 December 2025 is around €10 million, compared to €7 million in 2024 and in 2023. CFM Indosuez Wealth Management 58
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