Societe Generale. Updated following the publication of Q results. CREDIT OPINION 30 September Update. Summary Rating Rationale

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1 CREDIT OPINION 3 September 26 Update Societe Generale Updated following the publication of Q2 26 results Summary Rating Rationale RATINGS Societe Generale We rate Societe Generale's (SG) long-term deposit and senior unsecured debt ratings with a stable outlook. SG's debt and deposit ratings are underpinned by the bank's standalone credit strength, reflected in the BCA and take into account our advanced Loss Given Failure (LGF) analysis. SG's Baseline Credit Assessment (BCA) of reflects the bank's strong franchises, good geographical diversification and broad spread of predominantly retail banking activities, according to its universal bank model and captures SG's enhanced capitalisation and improved liquidity and funding positions. These factors are partially offset by SG's exposures to the weak and volatile economic environment in Russia(Ba negative), the bank's sizeable capital markets activities and its high, albeit improving, reliance on confidence-sensitive wholesale funding. Domicile Paris, France Long Term Debt Type Senior Unsecured - Fgn Curr Outlook Stable Long Term Deposit Credit Strengths Type LT Bank Deposits - Fgn Curr SG's franchise is strong in domestic retail and corporate banking. Outlook Stable We expect credit risk to stabilise in France and in Russia; market risk appetite has reduced. SG's capitalisation, including leverage, continues to improve converging towards those of its global peers with large capital market activities Profitability is improving but is challenged by downside risk from the bank's operations in Russia Our advanced LGF analysis indicates a very low loss given failure for junior depositors and senior unsecured creditors, resulting in a two-notch uplift in the relevant ratings, from the firm s adjusted BCA The long-term deposit and senior unsecured debt ratings incorporate one notch of Government Support uplift Please see the ratings section at the end of this report for more information. The ratings and outlook shown reflect information as of the publication date. Contacts Andrea Usai Senior Vice President andrea.usai@moodys.com Yana Ruvinskaya Associate Analyst yana.ruvinskaya@moodys.com Michael Eberhardt, CFA VP-Sr Credit Officer michael.eberhardt@moodys.com Laurie Mayers Associate Managing Director laurie.mayers@moodys.com Credit Challenges Elevated reliance on confidence-sensitive wholesale funding mitigated by good liquidity Rating Outlook The ratings outlook is stable, as we expect no material changes in the bank's credit fundamentals over the next 28 months, despite weak economic growth within major European economies and a weakening economic environment in Russia.

2 Factors that Could Lead to an Upgrade The BCA could be upgraded following further structural improvements in the bank's funding profile and/or a material reduction in the size of its capital markets activity. An upgrade of the bank's BCA would likely affect all ratings. Factors that Could Lead to a Downgrade The BCA could be downgraded if the bank's () funding and liquidity profiles deteriorates, (2) risk-management failures or material unexpected losses (3) operating environment weakens beyond our current expectations. A Downgrade of the BCA would likely result in downgrades of all ratings. Key Indicators Exhibit Societe Generale (Consolidated Financials) [] 223 Avg.,254,22,59,47,7,984,58,569,27,228,393,377.6,259,526.8,34,79.5,458,646.6,354, , , ,3 35, , , , , , , Total Assets (EUR million) Total Assets (USD million) Tangible Common Equity (EUR million) Tangible Common Equity (USD million) Problem Loans / Gross Loans (%) Tangible Common Equity / Risk Weighted Assets (%) Problem Loans / (Tangible Common Equity + Loan Loss Reserve) (%) Net Interest Margin (%) PPI / Average RWA (%) Net Income / Tangible Assets (%) Cost / Income Ratio (%) Market Funds / Tangible Banking Assets (%) Liquid Banking Assets / Tangible Banking Assets (%) Gross loans / Due to customers (%) [] All figures and ratios are adjusted using Moody's standard adjustments [2] Basel III - fully-loaded or transitional phase-in; IFRS [3] Basel II; IFRS [4] Compound Annual Growth Rate based on IFRS reporting periods [5] IFRS reporting periods have been used for average calculation [6] Basel III - fully-loaded or transitional phase-in & IFRS reporting periods have been used for average calculation Source: Moody's Financial Metrics Detailed Rating Considerations SG's FRANCHISE IS STRONG IN DOMESTIC RETAIL AND CORPORATE BANKING SG's `Strong' Macro Profile is mainly driven by its exposure to France (`Strong+` Macro Profile, 43% of its exposures at default), and United States (`Very Strong-`, 3%) but partly offset by the firm's exposures to Eastern Europe (8%) and Russia (2%), which have weaker Macro Profiles. French banks benefit from operating in a country with a large and broadly diversified economy, a robust institutional framework and a very low susceptibility to event risk. Nevertheless, France's medium and long-term economic performance will continue to be constrained by weak economic growth that coupled with institutional and political constraints, poses for the material reduction in the government's high debt burden. We recognize SG's broad and diversified businesses and reflect it by assigning a one-notch positive adjustment for Business Diversification in the qualitative section of or BCA scorecard. This offsets the a one-notch negative adjustment for Opacity and Complexity, in line with other firms with material capital markets activities. We consider SG's domestic retail franchise as strong: SG benefits from a good position in French retail banking and in the small and medium enterprise (SME) segment, benefiting from the integrated solutions offered by the investment banking division. This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on for the most updated credit rating action information and rating history. 2 3 September 26 Societe Generale: Updated following the publication of Q2 26 results

3 The group's international retail activities are in three main regions: Central and Eastern Europe, Russia and Africa. Russian activities ( 4.5 billion exposures at default at end-june 26, representing 2% of group total), are currently under pressure due to a weak economic environment. Our stress test shows that even in an adverse scenario, the negative impact on SG's capital is manageable. However, the potential volatility of the economy in the country and the heightened geopolitical risk mean that SG's exposures to Russia remains a key, albeit decreasing, risk (SG disclosed 2.5 billion equity and.7 billion of intra-group funding (subordinated loan) to SG's Russian subsidiaries at end-june 26). The Financial Services to Corporates and Insurance divisions' performance has been solid. SG's bancassurance business sells a range of products to its client base, including in-house life insurance and mutual funds, which form an important part of the savings base in France. Some areas of Specialised Financial Services represent a risk, notably consumer credit in Italy; however, this exposure is contained in the context of the group loan book. The Global Banking and Investor Solutions (GBIS) division provides capital markets, financing & advisory and asset management services. We consider SG as a tier-two global investment bank due to its multi-specialist business model with a focus on cross-asset solutions (structured equity and fixed income solutions) and flow equity derivatives. SG has strong expertise in structured products (with a global leadership in equity derivatives), exchange traded funds (under the Lyxor brand), commodities, research and market making. The group has recently announced a new focus on post-trade services and a plan to expand its bond origination and trading business with existing European clients. Capital markets activities bring elements of earnings volatility, confidence sensitivity and complexity that reduce the value we attribute to these franchises. Societe' Generale Americas Securities (SGAS) is a core operating subsidiary through which SG conducts its institutional equities and fixedincome brokerage and futures commission merchant activities in the United States. SGAS's Baa2 BCA is aligned with that of SG, as we consider it as an integrated and strategically important operating subsidiary of SG. We view SG's 26 strategic plan as credit neutral for bondholders because it leverages off SG's existing business model built around three core businesses, each one of them currently representing around one third of the group risk-weighted assets (French Retail Banking, International Retail Banking & Financial Services, and Global Banking & Investor Solutions). Under the plan, SG will maintain a balanced capital allocation, with RWA allocated to domestic and international retail accounting for c.6% of group RWA, while RWA's allocated to capital market activities will be capped at 2%. In detail, in 26 SG will focus on: the digital transformation of French Retail Banking and the development of its international retail banking activities; the improvement of its operating efficiency (around. billion of additional savings planned by end-27) mainly in Global Banking and Investor Solutions; and achieving capital and leverage targets. WE EXPECT CREDIT RISK TO STABILIZE IN FRANCE AND IN RUSSIA; MARKET RISK APPETITE HAS REDUCED The main risk to which SG is exposed to is credit risk, representing 83% of RWAs at end-june 26, while market and operational risks represented the remaining 7% as at the same reporting date. Credit risk mainly relates to the firm lending activities in France, Central Eastern Europe (CEE) and Russia. Market risk derives from its capital markets activities, which represent around one fifth of group's RWA and revenues. SG's customer loan book of 48 billion at end-june 26 is exposed to country and sector concentration risks. Exposures to a few relatively large corporates in its financing activities and notable industry concentrations to the financial services sector in the capital market activities also affect SG's asset risk. Legacy assets are small at 2.5 billion or.5% of the group gross loans, at end-june 26. SG's credit quality has improved in recent quarters and problem loans accounted for 23.4 billion at end-june 26, equal to 5.4% of gross customer loans (excluding legacy assets and including repos). Problem loans remain higher than most domestic players due to the firm's exposure to Eastern Europe and Russia and its large presence in the mid-corporate French market. High levels of doubtful loans also reflects protracted workout practices, in common with other French banks, which are partly mitigated by collateral and provisions. At end-25, the coverage ratio - excluding collateral - was at 64%, including specific and portfolio-based provisions. In Q2 26, SG's cost of risk was 38 basis points (bps) continued to decrease (44 bps in Q2 25), benefiting from lower loan provisions. Cost of risk in Russia was higher at 244 bps in Q2 26, corresponding to a 25% decrease compared to the same period a year earlier. We expect cost of risk to stabilise in both the domestic and international retail loan books in the second half of September 26 Societe Generale: Updated following the publication of Q2 26 results

4 Market risk significantly decreased over the last two years: the bank's risk appetite as measured by the average VaR was 2 million at end-june 26. At end-june 26, market risk accounted for 7.4 billion RWA, or 5% of group's total. Operational risk accounted for 44 billion RWAs, or 2% of the group's total RWAs, a moderate level when compared to the global firms with large capital markets activities. We believe that the firm's market risk appetite has reduced, and its risk management capabilities has been overhauled in recent years, following the financial crisis and in response to the rogue trader fraud in 28. However, securities and client trading assets of 5 billion at end-june 26 remain higher than some of SG's peers (as a percentage of the total cash balance sheet) due to the large and liquid equity trading assets portfolio and the large securities book due to Basel III liquidity requirements. Our Asset Risk score of indicates that, overall, asset risk remains a modest weakness for SG's BCA. We reflect within our score the stricter accountancy regime in France in relation to problem loans, the group's exposures to Russia and the market risk, counterparty credit risk and operational risk stemming from its capital market activities. SG's CAPITALISATION, INCLUDING LEVERAGE, CONTINUES TO IMPROVE CONVERGING TOWARDS THOSE OF ITS GLOBAL PEERS WITH LARGE CAPITAL MARKETS ACTIVITIES SG s Basel III fully-applied Common Equity Tier (CET) ratio of.% at end-june 26 was in line with its European peers and above the firm s % target for 26. SG targets to maintain a management buffer of 5 bps against a January 29 SREP requirement of.5%, including the fullyapplied Global Systemically Important Banks (G-SIB) resulting in a Basel III fully-applied CET ratio of.% as at end-26 and.52% as at end-28 and a Basel II leverage ratio of 4%-4.5%, respectively. The outcome of the EBA s 26 adverse scenario stress test showed that SG s end-point fully-applied CET was 7.5%, well-below the average of the 5 sample banks fully-applied CET ratio of 9.2% due to the lower start-point capital ratio at end-25. These results highlighted a moderate impact of the adverse scenario on the firm s balance sheet, which translated into a 34 bp decrease in its fully-applied CET, broadly in line with the average of the 5 sample banks. Credit provisions were lower than peers average and the firm reported positive adjustments to market risk; however, net interest income over the period was weaker than peers and losses on financial assets were high, due to SG s elevated exposures to equities, which were subject to high haircuts. SG reported a Basel III leverage ratio - including legacy Additional Tier (AT) - of 3.9% at end-june 26, a decline of bps compared to the previous quarter, driven by the increase of the leverage exposure (+5%), in particular deposits, following the Brexit referendum. SG s.5 billion AT securities target issuance per year over the next three years will improve its leverage ratio, in our view. Our assigned Capital score of reflects our expectation that the capital and leverage position will moderately increase over the medium term. PROFITABILITY IS IMPROVING BUT IS CHALLENGED BY DOWNSIDE RISK FROM THE BANK'S OPERATIONS IN RUSSIA Results in 25 showed a positive trend in underlying profitability, driven by higher revenues in French Retail Banking and Global Banking and Investor Solutions divisions that more than offset rise in operating costs and cost of risk: SG reported a Moody's adjusted net income of 3.5 billion with an adjusted return on risk-weighted assets of % and a return on equity of around 8%. In Q2 26, SG reported a Moody s adjusted net income of.9 billion, excluding 39 million of revaluation of the bank s own financial liabilities and a 662 million capital gain on the VISA stake sale. We estimate an adjusted annualized return on risk-weighted assets of.% and a return on equity of around 8% for the quarter. In 26, we expect continued revenue pressure in Corporate and Investment Banking activities and moderate losses in Russia, due to the weak economic environment. In line with management guidance, we believe SG will not achieve its % ROE target in 26 given the low interest rates environment and challenging markets conditions. Our score for Profitability reflects these factors and is in line with SG's BCA. ELEVATED RELIANCE ON CONFIDENCE-SENSITIVE WHOLESALE FUNDING MITIGATED BY GOOD LIQUIDITY Our Funding Structure score of b reflects the bank's high reliance on large amounts of wholesale funding. 4 3 September 26 Societe Generale: Updated following the publication of Q2 26 results

5 We view SG's funding profile as weaker than those of some large international peers, as the firm's reliance on confidence-sensitive wholesale funding remains elevated, at 26 billion, or 29% of its funded balance sheet at end-june 26, driven by large trading and investment portfolios. SG's wholesale funding profile was broadly stable in Q2 26, with short-term wholesale funding (including the portion of long-term debt maturing within the next 2 months), representing 36% of total wholesale funding. SG s liquidity reserves have been increasing and are in line with those of most of its international peers. At Q2 26, SG reported a 75 billion liquidity buffer which covered 24% of short-term funding, inclusive of the long-term debt maturing within the next 2 months. The bank s liquidity coverage ratio (LCR) was 52%, which is well-above future requirements. Our Liquid Resources score of a reflects our view that SG has large liquidity buffers. Notching Considerations LOSS GIVEN FAILURE We apply our advanced Loss Given Failure (LGF) analysis to SG as the bank is incorporated in France, which we consider to be an Operational Resolution Regime because it is subject to the EU Bank Recovery and Resolution Directive (BRRD). For this analysis we assume that equity and losses stand at 3% and 8%, respectively, of tangible banking assets in a failure scenario. We also assume a 25% run-off of junior wholesale deposits and a 5% run-off in preferred deposits. Moreover, we assign a 25% probability to junior deposits being preferred to senior unsecured debt. These are in line with our standard assumptions. We apply a standard assumption for European banks that 26% of deposits are junior. Our advanced LGF analysis indicates a very low loss given failure for junior depositors and senior unsecured creditors, resulting in a two-notch uplift in the relevant ratings, from the firm s adjusted BCA. For SG's junior securities our LGF analysis shows a high loss given failure, given the small volume of debt and limited protection from more subordinated instruments and residual equity. We also incorporate additional notching for junior subordinated and preference share instruments reflecting coupon suspension risk ahead of failure. GOVERNMENT SUPPORT We assess a moderate probability of Government Support for SG's long-term senior unsecured and junior depositors, resulting in a one-notch uplift incorporate in the relevant ratings. For other junior securities, we continue to believe that potential government support is low and these ratings do not include any related uplift. 5 3 September 26 Societe Generale: Updated following the publication of Q2 26 results

6 Rating Methodology and Scorecard Factors Exhibit 2 Societe Generale Macro Factors Weighted Macro Profile Strong Financial Profile Factor 6 % Historic Macro Ratio Adjusted Score Credit Trend Assigned Score Key driver # Key driver #2 Solvency Asset Risk Problem Loans / Gross Loans 6.7% ba Quality of assets Market risk Capital TCE / RWA.8% Capital retention Stress capital resilience Profitability Net Income / Tangible Assets.3% ba3 Return on assets Loan loss charge coverage Combined Solvency Score Liquidity Funding Structure Market Funds / Tangible Banking Assets ba 49.7% Liquid Resources Liquid Banking Assets / Tangible Banking Assets 45.% b a b Term structure a Stock of liquid assets Combined Liquidity Score Financial Profile Business Diversification Opacity and Complexity Corporate Behavior Total Qualitative Adjustments Sovereign or Affiliate constraint: Scorecard Calculated BCA range Assigned BCA Affiliate Support notching Adjusted BCA Aa2 baa- Balance Sheet Other liabilities Deposits Preferred deposits Junior Deposits Senior unsecured bank debt Dated subordinated bank debt Junior subordinated bank debt Preference shares (bank) Senior unsecured holding company debt Dated subordinated holding company debt Junior subordinated holding company debt Preference shares (holding company) Equity Total Tangible Banking Assets in-scope (EUR) % in-scope September 26 at-failure (EUR) % at-failure Societe Generale: Updated following the publication of Q2 26 results

7 Debt class De jure waterfall De facto waterfall Notching LGF Assigned Additional Preliminary LGF notching Rating Instrument Sub- Instrument SubDe jure De facto notching guidance notching Assessment volume + ordination volume + ordination versus subordination subordination BCA Counterparty Risk Assessment a2 (cr) Deposits a3 Senior unsecured bank debt a3 Dated subordinated bank debt Junior subordinated bank debt ba (hyb) Non-cumulative bank preference shares ba2 (hyb) Instrument Class Counterparty Risk Assessment Deposits Senior unsecured bank debt Dated subordinated bank debt Junior subordinated bank debt Non-cumulative bank preference shares Loss Given Failure notching Additional Preliminary Rating notching Assessment a2 (cr) a3 a3 ba (hyb) ba2 (hyb) -2 Government Local Currency rating Foreign Currency Support notching rating A (cr) Baa3 Baa3 (P)Ba Ba (hyb) Ba2 (hyb) Ba2 (hyb) Source: Moody's Financial Metrics Ratings Exhibit 3 Category SOCIETE GENERALE Outlook Bank Deposits Baseline Credit Assessment Adjusted Baseline Credit Assessment Counterparty Risk Assessment Senior Unsecured Subordinate Jr Subordinate Pref. Stock Non-cumulative Commercial Paper Other Short Term Moody's Rating Stable /P A(cr)/P(cr) Baa3 Ba (hyb) Ba2 (hyb) P (P)P SG ISSUER Outlook Bkd Senior Unsecured Stable Source: Moody's Investors Service 7 3 September 26 Societe Generale: Updated following the publication of Q2 26 results

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