ANNUAL GENERAL MEETING, 19 MAY 2015 LETTER TO SHAREHOLDERS_JUNE 2015 | 7 However, we note that the downward trend in interest rates is beginning to reverse. The impact on net interest margin is also mitigated by higher credit volumes. Furthermore, in the first quarter of 2015, Societe Generale confirmed the role of its insurance, private banking and corporate services activities as growth drivers. Retail Banking in France is expected to grow from 1% to 2% this year. What is the response of Societe Generale to new technology financial players, illustrated notably by the mobile payment service, Apple Pay? Admittedly, new competitors are arriving on the market. Our strategy already takes account of the shift to digital, which is reflected in the mobile apps that we are offering our clients, our Boursorama online bank and the numerous partnerships forged with start-ups. Recently some of our Group executives visited Silicon Valley, the prestigious US technological centre. In addition, at Val-de-Fontenay just east of Paris, we have a new building where we will host our own technology hub. Societe Generale is striving to remain among the leaders in digital banking. What is the Group doing to protect itself against new threats, such as cyberattacks? Cybercrime is one of the most serious operational risks facing the banking industry. As a precaution, the Group has set up a number of IT teams responsible for detecting suspected fraud and identifying and inspecting the flow of information leaving the bank. We are also among the first to have set up a dedicated monitoring team, on call 24 hours a day. Each month, we have to deal with dozens of cyberattacks. The fight against cybercrime, to which we allocate about €100 million per year, is one of our daily priorities. Are the tax deductions from the losses suffered by the Group due to the activities of Jérôme Kerviel being called into question? So far Jérôme Kerviel’s criminal responsibility has been recognised by the judicial system. The current proceeding is taking place in the civil court and concerns the matter of damages. The Court of Cassation referred the case to the Court of Appeal of Versailles, which is expected to give a ruling. The outcome of the civil trial will have no impact on the tax status of the losses. What is Societe Generale’s exposure to the Greek risk? Like many banks, we suffered losses on our sovereign Greek debt holdings in 2010. The Group has now completely eliminated its exposure to this type of asset. Currently, Societe Generale is exposed to only about €300 million in Greek corporate debt. This risk would therefore appear to be very limited. SOCIETE GENERALE IS DETERMINED TO REMAIN AMONG THE LEADERS IN DIGITAL BANKING
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