OREANDA-NEWS. September 19, 2011. In the context of the current climate of uncertainty, turbulent financial markets and unsubstantiated rumors affecting banks in general and Societe Generale in particular, the Group is providing updated information on its credit exposures and funding situation and an outline of the measures by which it intends to accelerate the Group’s transformation in order to adjust to an emerging new environment, reported the press-centre of Mobiasbanca.

The Societe Generale Group is fundamentally strong, stable and well-positioned to manage its businesses through the current turbulent environment.

We have solid profitability across our business lines and sufficient liquidity, funding and capital to ride out the turbulence in markets.

Thanks to its robust and diversified business model, Societe Generale has remained profitable throughout the crisis and has increased its capital (shareholder’s equity) by plus EUR 19 billion up to EUR 40.6 billion since 2007.

Over the past two years, we have taken significant steps to build a more client-oriented, lower risk, higher capital base business model. The new environment calls for an acceleration of this transformation. In particular, we have decided to further focus on strengths, cost efficiency and leverage reduction in our corporate & investment banking activities, and the Group will dispose of EUR 4 billion businesses assets (+100 bp in Basel 3 Core Tier One ratio at 2013 horizon).

We have a reinforced solid Core Tier One of 9.3% and thanks to our continued capital generation capacity and the additional disposal measures, Societe Generale will reach a fully loaded Basel 3 Core Tier One ratio well above 9% by 2013 without a capital increase.

Following the review of French banks’ ratings, Societe Generale acknowledges Moody’s decision to lower its rating to Aa3, down by one notch due to a methodological aspect in order to align the systemic support assumptions related to Societe Generale with the two other large French banks. Societe Generale notes that Moody’s considers as modest and manageable the Group’s exposure to Greece (sovereign debt and Geniki subsidiary) as well as to the other peripheral euro zone countries, with regard to its profitability and capital base.

Mobiasbanca:
There is no direct impact of the financial crisis in the Eurozone on Mobiasbanca activity. It has been involved exclusively in financing the Moldavian clients. Mobiasbanca is profitable with sound financial and liquidity ratios.

Mobiasbanca reaffirms its will to finance the local economy, to stand by individual and corporate customers, and to be at the service of these clients.

Mobiasbanca is part of SG International Retail Banking activity, which is one of 3 pillars of the Group’s strategy.