Société Générale / Risk report 2021 - Pillar 3 2020

5 CAPITAL MANAGEMENT AND ADEQUACY RISK-WEIGHTED ASSETS AND CAPITAL REQUIREMENTS PILLAR 3 - 2021 | SOCIETE GENERALE GROUP | 54 The solvency ratio as at 31 December 2020 stood at 13.4% in Common Equity Tier 1 (13.3% at 31 December 2019) and 16.0% in Tier 1 (15.6% at 31 December 2019) for a total ratio of 19.2% (18.9% at 31 December 2019). Group shareholders’ equity at 31 December 2020 totalled EUR 61.7 billion (compared with EUR 63.5 billion at 31 December 2019). After taking into account non-controlling interests and regulatory adjustments, CET1 regulatory capital was EUR 47.3 billion at 31 December 2020, vs . EUR 45.8 billion at 31 December 2019. The Additional Tier One deductions mainly concern authorisations to buy back own Additional Tier 1 capital instruments as well as subordinated bank and insurance loans. TABLE 13: CET1 REGULATORY DEDUCTIONS AND ADJUSTMENTS UNDER CRR/CRD4 (In EURm) 31.12.2020 31.12.2019 Unrecognised minority interests (2,507) (2,094) Deferred tax assets (1,226) (1,903) Prudent Valuation Adjustment (884) (935) Adjustments related to changes in the value of own liabilities 289 217 Other 564 (575) TOTAL CET1 REGULATORY DEDUCTIONS AND ADJUSTMENTS (3,764) (5,290) CRR/CRD4 prudential deductions and restatements included in the “Other” category essentially involve the following: any positive difference between expected losses on customer loans p and receivables managed under the internal ratings-based (IRB) approach, and the sum of related value adjustments and impairment losses; expected losses on equity portfolio exposures; p unrealised gains and losses on cash flow hedges; p assets from defined benefit pension funds, net of deferred taxes; p securitisation exposures weighted at 1,250%, when these positions p are excluded from the calculation of RWA. RISK-WEIGHTED ASSETS AND CAPITAL 5.5 REQUIREMENTS The Basel 3 Accord has established the rules for calculating minimum capital requirements in order to more accurately assess the risks to which banks are exposed, taking into account the risk profile of transactions via two approaches intended for determining RWA: a standardised approach and an advanced one based on internal methods modelling the counterparties' risk profiles. The total amount of RWA featured in this chapter (EUR 351.9 billion) shows a EUR 0.5 billion gap compared with the amount published through the financial communication of 10 February 2021 of Societe Generale group as regards Q4 2020 and 2020 full year. This discrepancy is due to the consideration, in the present regulatory information disclosed, of the phasing related to IFRS 9 transitional arrangements.