(Boursier.com) — The European Central Bank (ECB) has notified the group Societe Generale the capital requirement under Pillar 2 (P2R – Mandatory Pillar 2) from January 1, 2024. The latter will be established at 2.42% including at least 1.44% in the form of CET1. It includes an additional requirement of 0.17% under Pillar 2 prudential expectations on the provisioning of non-performing loans granted before April 26, 2019, which must now be fully covered by CET1 (56.25% previously).
Taking into account the various regulatory buffers, the minimum requirements applicable to the Group on a consolidated basis will be established on January 1, 2024 at 10.22% for the CET1 ratio (including 0.79% for countercyclical buffers compared to 0.56 % at the end of September 2023), 12.14% for the Tier 1 ratio and 14.71% for the Total Capital ratio.
The European Central Bank has also notified the Société Générale group of a requirement of 0.1% under Pillar 2 on the leverage ratio (P2R-LR), bringing the minimum requirement to 3.6% from January 1, 2024 (compared to 3.5% previously).
With a CET1 ratio of 13.3% (including IFRS 9) as of September 30, 2023, the Group benefits from a comfortable pro-forma margin of maneuver of more than 300 basis points above the regulatory requirement. Likewise, the Group’s leverage ratio stood at 4.17% as of September 30, 2023, well above the requirement of 3.6%..
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