Société Générale / Risk report 2021 - Pillar 3 2020

6 CREDIT RISK QUANTITATIVE INFORMATION | SOCIETE GENERALE GROUP | PILLAR 3 - 2021 93 Corporate and bank clients exposure BREAKDOWN OF RISK BY INTERNAL RATING FOR CORPORATE CLIENTS AT 31 DECEMBER 2020 (AS %OF EAD) BREAKDOWN OF RISK BY INTERNAL RATING FOR CORPORATE CLIENTS AT 31 DECEMBER 2019 (AS %OF EAD) Regarding Corporate clients, the scope consists of performing loans recorded under the IRB approach (excluding prudential classification criteria, by weight, of specialised financing) over the entire Corporate clients portfolio, all divisions combined, and represents a EUR 264 billion EAD (out of a EUR 296 billion total EAD for the Corporate Basel portfolio, standardised approach included). The rating breakdown of Societe Generale Group’s Corporate counterparty exposure reveals the sound quality of the portfolio. It is based on an internal counterparty rating system, displayed above as its Standard & Poor’s equivalent. As at 31 December 2020, the majority of the portfolio had an Investment Grade rating, i.e. counterparties with an S&P-equivalent internal rating higher than BBB- (65% of Corporate clients). Transactions with non-Investment Grade counterparties were very often backed by guarantees and collaterals in order to mitigate the risk incurred. BREAKDOWN OF RISK BY INTERNAL RATING FOR BANKING CLIENTS AT 31 DECEMBER 2020 (AS %OF EAD) BREAKDOWN OF RISK BY INTERNAL RATING FOR BANKING CLIENTS AT 31 DECEMBER 2019 (AS %OF EAD) Regarding banking clients, the scope consists of performing loans quality of the portfolio. It is based on an internal counterparty rating recorded under the IRB approach over the entire banking clients system, displayed above as its Standard & Poor’s equivalent. portfolio, all divisions combined, and represents a EUR 62 billion EAD (out of a EUR 106 billion total EAD for the Bank Basel portfolio, standardised approach included). The rating breakdown of Societe Generale Group’s banking counterparty exposure reveals the sound As at 31 December 2020, exposure on banking clients was concentrated on Investment Grade counterparties (95% of the exposure) and in developed countries (90%).