Société Générale / Risk Report - Pillar III

3 RISKMANAGEMENT ORGANISATION RISK APPETITE

RISK MARKET Risk-weighted assets to market risk (excluding securitisation) are mainly determined using internal models (91% of the total at the 2019 end). These weighted assets stood at EUR 14.5 billion at the end of 2019, or 4% of the Group's total RWA, down compared to the end of 2018 (EUR 23.7 billion). This decrease is mainly explained by a decrease in SVaR (mainly due to a higher level of compensation between equity and fixed income positions compared to the end of 2018), by a decrease in RWA for IRC (Incremental Risk Charge) resulting from a lower exposure on the scope covered by the IRC and by the decrease in RWA under the CRM (Comprehensive Risk Measure) due to methodological improvements made in the last quarter. In the context of its risk appetite, the Group caps the proportion of RWA linked to market activities (market risks and counterparty risks) at 20% of total Group RWA and applies strict management of market risk Group aims to maintain a solid financial position, consistent with its target credit rating. It manages its financial ratios with a view to ensuring it has a sufficient security margin above the regulatory ratio requirements. As at 31 December 2019, the Group's fully-loaded CET1 ratio was 12.7% against 10.9% in 2018. This increase reflected the organic generation of capital, the use of securitisation and risk transfer operations, the already advanced implementation of the program to TRANSACTIONS IN 2019 SIGNIFICANT The Group's strategy is to concentrate its presence on the markets where it benefits from leading positions with a critical size. In accordance with this strategy of refocusing and reallocating its RWA, it finalised the sale of its subsidiaries in Bulgaria, Albania, Montenegro, SOLIDITY PROFILE FINANCIAL

through indicator-based limits, such as Value at Risk (VaR), and a set of standardised, hypothetical or historical stress tests. VaR has been riskier in 2019 (EUR 23 million on average per year compared to EUR 18 million in 2018) with an upward trend over the whole year. This gradual increase in risk comes from the natural renewal of the scenarios in the VaR calculation window, in particular those added during 2019 summer, applying stock rebound shocks (rise in prices and fall in volatility) and strong rate increases on long-term maturities. Note that there has been a significant decrease in extreme risks since 2016 and until 2019, thanks to the implementation of dedicating asset hedging programmes.

refocus the Group's activities and the reduction in RWA relating to market activities. The fully-loaded leverage ratio was 4.3% at 31

December 2019 versus 4.2% at the end of 2018.

In terms of liquidity, the LCR stood at 119% and liquidity reserves at EUR 190 billion at 31 December 2019. The NSFR is within the minimum regulatory threshold of 100%.

Poland, Serbia, Moldova and Macedonia and of its private banking activity in Belgium. At the same time, the Group integrated the Equity Markets and Commodities (EMC) activity, which was bought from

Commerzbank in November 2018.

RISK APPETITE 3.3

Risk appetite is defined as the level of risk that the Group is prepared to accept to achieve its strategic goals. Principles governing risk appetite Societe Generale seeks sustainable development based on a diversified and balanced banking model with a strong European anchor and a targeted global presence in selected areas of strong business expertise; the Group also strives to maintain long-term relationships with its clients built on the confidence it has earned and to meet the expectations of all of its stakeholders. This results in: an organisation with 16 Business Units offering various products p and services to clients in different locations; a balanced capital allocation between activities: p

a preponderance in retail banking activities in France and - abroad, which currently represent more than 60% of risk-weighted assets (“RWA”), limitation of Business Unit Global Markets’ share in the RWA of - the Group. In accordance with its client-focused development strategy, the Group has also announced the closure of its proprietary trading activities (1) , and seeks to simplify the products offered, non-bank services activities, in particular Insurance, conducted - in coherence with the business strategy, and which demonstrate a controlled risk profile and which profitability meets the Group’s expectation; a geographically balanced model: p in Retail Banking, the Group focuses its development on Europe - and Africa, where it enjoys a historic presence, extensive knowledge of the markets and prominent positions ,

In accordance with French banking law, certain residual trading activities of the Group with no connection to clients were isolated in a dedicated subsidiary called (1) Descartes Trading, closed in February 2020.

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| SOCIETE GENERALE GROUP | PILLAR 3 - 2020