Société Générale / Risk Report - Pillar III

5 CAPITAL MANAGEMENT AND ADEQUACY CAPITAL MANAGEMENT

TABLE 11: MAIN SUBSIDIARIES’ CONTRIBUTIONS TO THE GROUP’S RWA

Crédit du Nord

Rosbank

Komerčni Banka

IRB Standard

IRB Standard

IRB Standard

(In EURm)

Credit and counterparty risk

16,867

3,152

609 519

7,820

10,783

1,805

Sovereign

-

583

12

126 427

1

Financial institutions

64

13

- - -

561

34

Corporate

8,804 6,793 1,017

689 864 248 756

4,204 2,504

6,694 3,378

1,163

Retail

56

Equity investments

90

-

158

1

Other non-credit obligation assets

-

539

- -

550

Securitisation

189

-

-

-

-

Market risk

108

74

47

Operational risk

1,329

1,058 9,562

660

TOTAL 2019

21,456

13,295

TOTAL 2018

21,572

7,537

13,756

CAPITAL MANAGEMENT 5.5

As part of its capital management, the Group (under the supervision of the Finance Division) ensures that its solvency level is always compatible with the following objectives: maintaining its financial solidity and respecting the Risk Appetite p targets; preserving its financial flexibility to finance organic growth and p growth through acquisitions; allocating adequate capital to the various businesses, according to p the Group’s strategic objectives; maintaining the Group’s resilience in the event of stress scenarios; p meeting the expectations of its various stakeholders: supervisors, p debt and equity investors, rating agencies, and shareholders. The Group determines its internal solvency targets in accordance with these objectives and regulatory thresholds.

The Group has an internal process for assessing the adequacy of its capital that measures the adequacy of the Group’s capital ratios in light of regulatory constraints. In addition, the Group maintains a balanced capital allocation among its three strategic core business: French Retail Banking; p International Retail Banking and Financial Services; p Global Banking and Investor Solutions. p Each of the Group’s core businesses accounts for around a third of total risk-weighted assets (RWA), with French and International Retail Banking (more than 62% of business outstanding) and credit risk (82% of the Group’s risk-weighted assets) accounting for the largest share. As at 31 December 2019, the Group’s risk-weighted assets were down by 8.3% to EUR 345 billion, compared to EUR 376 billion at end December 2018.

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PILLAR 3 - 2020 | SOCIETE GENERALE GROUP |