Société Générale / Risk Report - Pillar III

6 CREDIT AND COUNTERPARTY CREDIT RISK QUANTITATIVE INFORMATION

Net cost of risk CHANGE IN GROUP NET COST OF RISK (IN EURM)

The Group’s net cost of risk in 2019 amounted to EUR -1,278 million, up to +27.1% compared to 2018. Normalisation thus remains very gradual compared to the level in 2018. Measured in basis points on average outstanding at the start of the period of the four quarters preceding the closing, including operating leases, the cost of risk remains low. It stood at 25 basis points in 2019 compared to 21 basis points in 2018. In French Retail Banking , the commercial cost of risk fell to 24 basis p points in 2019 compared to 26 basis points in 2018, illustrating the quality of the credit policy. At 43 basis points in 2019 (versus 30 basis points in 2018), the cost of p risk of the Retail Banking and International Financial Services division is increasing but remains low, demonstrateing the effectiveness of the policies implemented to improve loan portfolio quality. More specifically, the cost of risk in the Czech Republic and Romania is a net recovery (- 9 and - 56 basis points, respectively, in 2019). Global Banking and Investor Solutions’ cost of risk stood at 13 p basis points (versus 6 basis points in 2018).

1,278

17

1,005

588

19

Corporate Centre International retail banking and Financial Services Global Banking and Investor Solutions French Retail Banking

404

206

93

489

467

31.12.2019

31.12.2018

89

| SOCIETE GENERALE GROUP | PILLAR 3 - 2020