Société Générale / Risk Report - Pillar III

6 CREDIT AND COUNTERPARTY CREDIT RISK QUANTITATIVE INFORMATION

NON-PERFORMING LOANS (NPL) The following tables have been prepared in accordance with the guidelines of the European Banking Authority (EBA) on the publication of non-performing and renegotiated exposures (document EBA/GL/2018/10 of December 2018). They present the credit quality of restructured exposures and of performing and non-performing exposures, by geographical area and industry sector, with provisions and associated collateral, as well as details of the change over the period of outstanding loans and non-performing advances. For information purposes, and in accordance with the ECB’s recommendations, the concepts of Basel default, impaired assets and

Restructured debt Within Societe Generale group, “restructured” debt refers to loans for which the amount, term or financial conditions have been contractually modified due to the borrower’s insolvency (whether insolvency has already occurred or will definitely occur unless the debt is restructured). Societe Generale aligns its definition of restructured loans with the EBA definition. Restructured debt does not include commercial renegotiations involving customers for which the Bank has agreed to renegotiate the debt in order to maintain or develop a business relationship, in accordance with credit approval rules in force and without relinquishing any of the principal or accrued interest. Any situation leading to debt restructuring entails placing the considered customer in the Basel default category and classifying the loans themselves as impaired. The customers whose loans have been restructured are kept in the default category for as long as the Bank remains uncertain of their ability to meet their future commitments and for at least one year.

non-performing exposures are aligned within the Group. The non-performing loan ratio at the end of 2019 is 3.1%.

This ratio is calculated in accordance with the guidelines relating to the requirements of prudential disclosures published by the EBA. The methodology for calculating this ratio differs marginally from that used for the publication of the financial results.

TABLE 32: CREDIT QUALITY OF FORBORNE EXPOSURES (TEMPLATE 1)

31.12.2019

Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions

Collateral received and financial guarantees received on forborne exposures

Gross carrying amount/nominal amount of exposures with forbearance measures

Non-performing forborne

Of which collateral and financial guarantees received on non-performing exposures with forbearance measures

On non-performing forborne

On performing forborne exposures

Performing forborne

Of which defaulted

Of which impaired

TOTAL

exposures TOTAL

(In EURm)

Loans and advances

814 3,050

3,050

3,050

(18)

(1,428)

1,644

1,208

Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households Debt Securities Loan commitments given

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

318 1,490

1,490

1,490

(6)

(768)

987

727

495 1,560

1,560

1,560

(12)

(661)

657

481

-

-

-

-

-

-

-

-

1

43

43

43

-

-

28

28

TOTAL

815 3,092

3,092

3,092

(18)

(1,428)

1,672

1,236

90

PILLAR 3 - 2020 | SOCIETE GENERALE GROUP |