Société Générale / Risk report 2021 - Pillar 3 2020

1 GROUP CONCISE RISK STATEMENT FINANCIAL STRENGTH PROFILE PILLAR 3 - 2021 | SOCIETE GENERALE GROUP | 4 As part of setting its Risk Appetite, Societe Generale seeks a Group also aims to maintain long-term relationships with its sustainable development based on a diversified and balanced customers built on well-earned trust, and to respond responsibly to banking model with a strong European foothold and a global the expectations of all of its stakeholders. presence targeted on a few areas of strong business expertise. The FINANCIAL STRENGTH PROFILE 1.1 The Group aims to maintain a robust financial strength profile, consistent with its financial rating target. In terms of financial ratios (1) , the Group calibrates its objectives to ensure a sufficient safety margin in relation to regulatory requirements. As at 31 December 2020, the Group's CET1 ratio stood at 13.4% against 13.3% at the end of 2019, well above the regulatory requirement of 9.02% (“MDA” threshold - Maximum Distributable Amount, calculated on 1 January 2021). SOLVENCY RATIOS REGULATORY CAPITAL (IN EURBN) As at 31 December 2020, the Group’s leverage ratio stood at 4.8%, taking into account an amount of Tier 1 capital of EUR 56.2 billion compared with a leverage exposure of EUR 1,179 billion (4.5% at 31 December 2019, with EUR 53.9 billion and EUR 1,200 billion respectively). LEVERAGE RATIO In addition, at 31 December 2020, the Group has a TLAC (Total Loss Absorbing Capacity) ratio of 28.6% of weighted exposures (for a regulatory requirement of 19.5%) and 9.2% of leverage exposure (for a regulatory requirement of 6%). Regarding its risk profile, the Group presents a balanced distribution of weighted exposures between its Corporate Banking and Investor Solutions division (36% as at 31 December 2020), International Retail Banking and Financial Services (31% as at 31 December 2020) and French Retail banking (28% as at 31 December 2020). In terms of evolution, the Group’s risk-weighted exposures stood at EUR 352 billion at 31 December 2020 compared to EUR 345 billion at 31 December 2019, an increase of + 2% mainly driven by the Corporate Banking and Investor Solutions division. The solvency and leverage prudential ratios, as well as the amounts of regulatory capital and RWA featured here, take into account: - at 31 December 2020, the IFRS 9 (1) phasing (fully-loaded CET1 ratio of 13.2%, the phasing effect being +28 bps); - at 31 December 2019, the restatement for the 2019 dividend cancellation, in accordance with restrictions on dividend payments imposed by the European authorities.