Société Générale / Risk report 2021 - Pillar 3 2020

6 CREDIT RISK QUANTITATIVE INFORMATION | SOCIETE GENERALE GROUP | PILLAR 3 - 2021 99 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 non-performing exposures are aligned within the Group. The non-performing loan ratio at the end of 2020 is 3.3%. This ratio is calculated in accordance with the guidelines relating to the requirements of prudential disclosures published by the EBA. 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 classifying the considered customer in the Basel default category and classifying the loans themselves as impaired in the event of a loss of value greater than 1% of the original debt. 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. In other cases, an analysis of the customer's situation makes it possible to estimate his/her ability to repay according to the new schedule. Otherwise, the customer is also transferred to Basel default. TABLE 41: CREDIT QUALITY OF FORBORNE EXPOSURES (TEMPLATE 1) (In EURm) 31.12.2020 Gross carrying amount/nominal amount of exposures with forbearance measures Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions Collateral received and financial guarantees received on forborne exposures Performing forborne Non-performing forborne On performing forborne exposures On non-performing forborne exposures TOTAL of which collateral and financial guarantees received on non-performing exposures with forbearance measures TOTAL of which defaulted of which impaired Loans and advances 1,210 2,438 2,438 2,438 (17) (1,010) 992 613 Central banks - - - - - - - - General governments 0 - - - (0) - - - Credit institutions - - - - - - - - Other financial corporations 7 1 1 1 - (0) 8 1 Non-financial corporations 704 1,179 1,179 1,179 (17) (487) 759 477 Households 499 1,258 1,258 1,258 (0) (524) 225 135 Debt Securities - - - - - - - - Loan commitments given 12 31 31 31 (1) (2) 15 13 TOTAL 1,223 2,470 2,470 2,470 (18) (1,012) 1,006 626