Investor Presentaiton

HSBC SFH HSBC France SFH legal framework ☐ Key provisions of SFH law - Requirement to cover all liquidity needs for the next 180 day period on an ongoing basis - Minimum 5% legal over-collateralisation of the cover assets Possibility for the issuers to use up to 10% of outstanding issued covered bonds for direct repo operations with ECB Guaranteed home loans: ☐ The rating of the guarantor directly impacts the weighting of such home loans in the cover pool valuation Guarantor Rating External Guarantor Internal Guarantor ≥ A- 100% 80% Guaranteed home loans secured by an "internal" guarantee (i.e. when the guarantor is at least 20% owned by the sponsor bank) are applied an additional 20% weighting haircut Obligations de financement de l'Habitat (OH) investors benefit from the Privilege (statutory priority right of payment) over all the assets and revenues of the Issuer ≥ BBB- and < BBB+ 80% 60% < BBB- or not rated 0% 0% OH are subject to strict criteria in terms of asset eligibility, supervision, control and license requirements ■ The control over cover pool assets and guarantors are further tightened under the OH regime with the appointment of the specific controller, who publishes a yearly report to the Directors of HSBC SFH (France) on (i) the governance of the issuer, (ii) its ALM procedures, (iii) the eligibility of cover assets and (iv) the compliance with any other aspects of the law. This report is directly sent by the specific controller to the regulator. Moreover, the specific controller must certify any regulatory reporting sent to ACPR. 28

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