Société Générale / Risk report 2021 - Pillar 3 2020

6 CREDIT RISK QUANTITATIVE INFORMATION PILLAR 3 - 2021 | SOCIETE GENERALE GROUP | 98 Net cost of risk CHANGE IN GROUP NET COST OF RISK (IN EURM) The Group's net cost of risk in 2020 was - EUR 3,306 million, up to +159% compared to 2019. This cost of risk is therefore up sharply vs. 2019 due to the increase in stage 1/stage 2 following the deterioration of the economic outlook and, to a lesser extent, the increase in stage 3 due to defaults occurring mainly in the first semester. The cost of risk (expressed in basis points on the average of the outstanding amounts at the beginning of the four quarters preceding the closing, including operating leases) thus amounts to 64 basis points for the year 2020 compared to 25 basis points in 2019. In French Retail Banking , the cost of commercial risk rose to 52 p basis points in 2020 compared to 24 basis points in 2019, including 30 basis points for stage 1/stage 2 in anticipation of future defects. At 96 basis points in 2020 (versus 43 basis points in 2019), the cost of p risk for the Retail Banking and International Financial Services division increased due to defaults mainly in the first semester and by 29 bps of cost of risk stage 1/stage 2. The cost of risk for Corporate Banking and Investor Solutions is at p 57 basis points (compared to 13 basis points in 2019). This cost of risk includes 19 bps of the cost of stage 1/stage 2 risk.