Societe Generale welcomes the initiative led by the EBA in order to test the financial soundness of the European banking industry.

The results presented hereafter comply with the EBA’s specific methodological guidelines and definitions. Consequently, the reader should be aware that some data may deviate significantly from those disclosed in Financial review 2010 of Societe Generale and which are compliant with CRDstandards and definitions.

Simulations for the years 2011 and 2012, even in the “baseline scenario”, should be read as indicative figures resulting from the assumptions designed by EBA, and cannot give any indication of actual forecasts. 

Societe Generale Core Tier 1 Capital ratio resulting from the EBA methodology as at the end of 2012,under the adverse scenario, would stand at 6.6% to be compared with the 5% threshold.

As of today, the solid profits generated during the first quarter of 2011, the success of the scrip dividend option and the uptake of Societe Generale's employee shareholder subscription campaign would boost the 2012 EBA adverse scenario Core ratio by 0.50%. Furthermore, the benefit of the deleveraging of the Group's legacy asset portfolio already secured, but not taken into account under the static balance sheet assumption as at December 2010 used in the stress test, would raise the Core Tier 1 ratio (as calculated using EBA rules) by an additional 0.40% under the 2012 adverse scenario.

Looking ahead the bank is confident that continued solid internal capital generation and pro-active reductions in its legacy asset portfolio will enable it to build its capital base further so as to reach a fully loaded Basel 3 Core Tier 1 ratio at or above 9% in 2013.

See more details on the EBA template for Societe Generale and banks announcement document on: http://www.investor.socgen.com/