Société Générale / Risk report 2021 - Pillar 3 2020

5 CAPITAL MANAGEMENT AND ADEQUACY SCOPE OF APPLICATION – PRUDENTIAL SCOPE PILLAR 3 - 2021 | SOCIETE GENERALE GROUP | 48 The following table provides the main differences between the accounting scope (consolidated Group) and the prudential scope (Banking Regulation requirements). TABLE 6: DIFFERENCE BETWEEN ACCOUNTING SCOPE AND PRUDENTIAL REPORTING SCOPE Type of entity Accounting treatment Prudential treatment under CRR/CRD4 Entities with a finance activity Full consolidation Full consolidation Entities with an Insurance activity Full consolidation Equity method Holdings with a finance activity by nature Equity method Equity method Joint ventures with a finance activity by nature Equity method Proportional consolidation The following table provides a reconciliation between the consolidated balance sheet and the accounting balance sheet within the prudential scope. The amounts presented are accounting data, not a measure of RWA, EAD or prudential capital. Prudential filters related to entities and holdings not associated with an insurance activity are grouped together on account of their non-material weight (< 0.2%). Return on assets ( i.e . net income divided by the balance sheet total as per the consolidated financial statements) for Societe Generale stood at -0.02% in 2020 and 0.24% in 2019. On a prudential basis, this ratio was -0.02% in 2020 and 0.27% in 2019, calculated by dividing the Group net income by the balance sheet total for prudential purposes (data in the table below). TABLE 7: RECONCILIATION BETWEEN THE CONSOLIDATED BALANCE SHEET AND THE PRUDENTIAL ACCOUNTING BALANCE SHEET ASSETS at 31.12.2020 (In EURm) Consolidated balance sheet Prudential restatements linked to insurance (1) Prudential restatements linked to consolidation methods Accounting balance sheet within the prudential scope Reference to table 12a page 59 Cash, due from banks 168,179 (0) 0 168,179 Financial assets at fair value through profit or loss 429,458 10,966 (0) 440,424 Hedging derivatives 20,667 22 - 20,689 Financial assets at fair value through other comprehensive income 52,060 (0) - 52,060 Securities at amortised cost 15,635 (0) - 15,635 Due from banks at amortised cost 53,380 0 214 53,594 1 o.w. subordinated loans to credit institutions 97 (0) - 97 Customer loans at amortised cost 448,761 1,543 (5) 450,299 Revaluation differences on portfilios hedged against interest rate risk 378 - - 378 Investment of insurance activities 166,854 (166,854) - - Tax assets 5,001 (88) 0 4,913 o.w deferred tax assets that rely on future profitability excluding those arising from temporary differences 1,840 - (613) 1,227 2 o.w deferred tax assets arising from temporary differences 2,267 - 436 2,703 Other assets 67,341 (2,529) 50 64,862 o.w defined-benefit pension fund assets 52 - - 52 3 Non-current assets held for sale 6 - - 6 Investments accounted for using the equity method 100 4,668 (76) 4,692 Tangible and intangible assets 30,088 (166) 0 29,922 o.w intangible assets exclusive of leasing rights 2,485 - (140) 2,345 4 Goodwill 4,044 (325) - 3,719 4 TOTAL ASSETS 1,461,952 (152,763) 183 1,309,372 Restatement of entities excluded from the prudential scope and reconsolidation of intra-group transactions relating to these entities. (1)