Société Générale / Risk report 2021 - Pillar 3 2020

5 CAPITAL MANAGEMENT AND ADEQUACY REGULATORY CAPITAL | SOCIETE GENERALE GROUP | PILLAR 3 - 2021 53 In addition to these requirements comes the overall buffer requirement which is the sum of: the mean of the countercyclical buffer rates of each country, p weighted by the relevant credit risk exposures in these countries. As of 1 January 2021, Societe Generale's countercyclical buffer is equal to 0.04%; the conservation buffer in force as of 1 January 2016 with a p maximum level standing at 2.50% since 1 January 2019; the Group's G-SIB buffer imposed by the Financial Stability Board p (FSB), which is equal to 1%. As of 1 January 2021, taking into account the combined regulatory buffers, the phased-in CET1 ratio level that would trigger the Maximum Distributable Amount (MDA) mechanism stands at 9.02%. TABLE 11: BREAKDOWN OF PRUDENTIAL CAPITAL REQUIREMENT FOR SOCIETE GENERALE 01.01.2021 01.01.2020 Minimum requirement for Pillar 1 4.50% 4.50% Minimum requirement for Pillar 2 (P2R) (1) 0.98% 1.75% Minimum requirement for countercyclical buffer 0.04% 0.28% Minimum requirement for conservation buffer 2.50% 2.50% Minimum requirement for systemic buffer 1.00% 1.00% Minimum requirement for CET1 ratio 9.02% 10.03% The ECB has decided to implement earlier the provisions adopted in article 104a of the CRD5 directive, stating that a minimum of 56% of P2R add-on has to be (1) covered by CET1 capital (instead of 100% previously) and 75% by Tier 1 capital. TABLE 12: REGULATORY CAPITAL AND CRR/CRD4 SOLVENCY RATIOS (1) (In EURm) 31.12.2020 31.12.2019 Shareholders’ equity (IFRS), Group share 61,684 63,527 Deeply subordinated notes (8,830) (9,500) Perpetual subordinated notes (264) (283) Group consolidated shareholders’ equity net of deeply subordinated and perpetual subordinated notes 52,590 53,744 Non-controlling interests 4,378 3,928 Intangible assets (1,647) (2,214) Goodwill (3,710) (4,302) Dividends proposed (to the General Meeting) and interest expenses on deeply subordinated and perpetual subordinated notes (557) (102) Deductions and regulatory adjustments (3,764) (5,290) COMMON EQUITY TIER 1 CAPITAL 47,290 45,764 Deeply subordinated notes and preferred shares 8,830 8,165 Other additional Tier 1 capital 195 100 Additional Tier 1 deductions (136) (137) TOTAL TIER 1 CAPITAL 56,179 53,892 Tier 2 instruments 12,587 13,032 Other Tier 2 capital 240 37 Tier 2 deductions (1,422) (1,915) Total regulatory capital 67,584 65,046 TOTAL RISK-WEIGHTED ASSETS 351,852 345,010 Credit and counterparty credit risk-weighted assets 287,324 282,536 Market risk-weighted assets 15,340 14,513 Operational risk-weighted assets 49,188 47,961 Solvency ratios Common Equity Tier 1 ratio 13.4% 13.3% Tier 1 ratio 16.0% 15.6% Total capital ratio 19.2% 18.9% December 2020 ratios take into account the IFRS 9 phasing (fully-loaded CET1 ratio of 13.2%, the phasing effect being +28 bps). December 2019 figures include the (1) restatement for 2019 dividend cancellation, in accordance with restrictions to the payment of dividends imposed by European Authorities.