1. PRESENTATION OF GROUPE BPCE | 5 |
1.1 Groupe BPCE: committed to serving its customers and the economy | 6 |
1.2 History | 7 |
1.3 Organization of Groupe BPCE | 8 |
Overview | 8 |
Three-pillar structure | 9 |
Balanced governance | 10 |
1.4 TEC 2020: a strategic plan focused on digital transformation, commitment and growth | 11 |
1.5 Performance of Groupe BPCE – Key figures 2018 | 13 |
Recurring, diversified revenue base | 13 |
High level of solvency | 14 |
BPCE SA group indicators | 15 |
Sustainable development central to the Group’s activities | 15 |
1.6 Groupe BPCE’s business lines | 16 |
1.6.1 Retail Banking and Insurance | 17 |
1.6.2 Natixis | 26 |
1.7 Calendar | 33 |
1.8 Contacts | 33 |
2. NON-FINANCIAL PERFORMANCE REPORT | 35 |
2.1 Sustainable development built on our cooperative identity | 37 |
2.1.1 A business model that creates lasting value and has confirmed its solidity | 37 |
2.1.2 A strong cooperative identity | 42 |
2.2 A CSR strategy aimed at incorporating sustainable development in our business lines and decision-making processes | 46 |
2.2.1 Identifying our priorities: analysis of ESG risks and opportunities to build a relevant, ambitious CSR strategy | 46 |
2.2.2 Our key performance indicators | 47 |
2.2.3 Our commitments | 47 |
2.2.4 Constant dialog with our stakeholders | 56 |
2.3 A range of services to meet the challenges facing our customers | 58 |
2.3.1 Steering deposits and savings towards a more responsible economy | 58 |
2.3.2 Financing for the energy, ecological and social transition: offers tailored to our customers’ needs | 65 |
2.3.3 Helping customers address climate risk and gear up for the energy transition | 75 |
2.4 Sustainable and responsible value creation | 83 |
2.4.1 Contribution to regional economic development | 83 |
2.4.2 Active sponsorship in the French regions | 86 |
2.4.3 Respecting business ethics in all Group business lines | 88 |
2.5 Responsible internal practices | 99 |
2.5.1 Employees: helping to build and develop the Group | 99 |
2.5.2 Reducing our direct environmental footprint | 114 |
2.6 CSR reporting methodology | 120 |
2.6.1 CSR reporting structure | 120 |
2.6.2 Reporting scope for 2018 | 123 |
2.7 Report by one of the Statutory Auditors, appointed as independent third-party, on the consolidated non-financial statement published in the Group management report | 124 |
3. REPORT ON CORPORATE GOVERNANCE | 127 |
3.1 Introduction | 128 |
3.2 Corporate Governance Code | 128 |
3.3 Management and Supervisory Bodies | 130 |
3.3.1 Groupe BPCE governance structure | 130 |
3.3.2 Supervisory Board | 132 |
3.3.3 Management Board | 137 |
3.3.4 Executive Management Committee – BPCE governing body | 138 |
3.3.5 Directorships and offices held by corporate officers | 139 |
3.4 Role and operating rules of governing bodies | 181 |
3.4.1 Supervisory Board | 181 |
3.4.2 Specialized committees | 185 |
3.4.3 Attendance of Supervisory Board and specialized Committee Meetings | 189 |
3.4.4 Management Board | 190 |
3.4.5 Annual General Shareholders’ Meetings | 190 |
3.5 Rules and principles governing the determination of pay and benefits | 192 |
3.5.1 Pay policy, components of pay, benefits in kind, loans, guarantees and attendance fees received by members of the Supervisory Board of BPCE | 192 |
3.5.2 Pay and benefits of any kind awarded to Management Board Members for 2018 | 196 |
3.5.3 2019 Pay Policy | 212 |
3.6 Potential conflicts of interest | 220 |
3.6.1 Members of the Supervisory Board | 220 |
3.6.2 Members of the Management Board | 221 |
4. ACTIVITIES AND FINANCIAL INFORMATION 2018 | 223 |
4.1 Foreword | 224 |
4.2 Significant events of 2018 | 224 |
4.2.1 Economic and financial environment | 224 |
4.2.2 Significant events of the fiscal year | 225 |
4.3 Groupe BPCE financial data | 228 |
4.3.1 Groupe BPCE results | 228 |
4.3.2 Groupe BPCE’s core businesses | 229 |
4.3.3 Income statement by sector | 230 |
4.3.4 Retail Banking and Insurance | 231 |
4.3.5 Asset & Wealth Management | 236 |
4.3.6 Corporate & Investment Banking (CIB) | 237 |
4.3.7 Corporate center | 238 |
4.3.8 Analysis of the Groupe BPCE consolidated balance sheet | 239 |
4.4 BPCE SA group financial data | 241 |
4.4.1 BPCE SA group results | 241 |
4.4.2 Analysis of the consolidated balance sheet of BPCE SA group | 242 |
4.5 Investments | 243 |
4.5.1 In 2018 | 243 |
4.5.2 In 2017 | 243 |
4.5.3 In 2016 | 243 |
4.6 Post-balance sheet events | 243 |
4.7 Outlook for Groupe BPCE | 244 |
5. FINANCIAL REPORT | 247 |
5.1 IFRS Consolidated Financial Statements of Groupe BPCE as at December 31, 2018 | 250 |
5.1.1 Consolidated income statement | 250 |
5.1.2 Comprehensive income | 252 |
5.1.3 Consolidated balance sheet | 254 |
5.1.4 Statement of changes in equity | 256 |
5.1.5 Consolidated cash flow statement | 258 |
5.1.6 First-time application of IFRS 9 | 259 |
5.1.7 Notes to the financial statements of Groupe BPCE | 267 |
5.2 Statutory Auditors’ report on the consolidated financial statements | 399 |
5.3 IFRS Consolidated Financial Statements of BPCE SA group as at December 31, 2018 | 409 |
5.3.1 Consolidated income statement | 409 |
5.3.2 Comprehensive income | 411 |
5.3.3 Consolidated balance sheet | 412 |
5.3.4 Statement of changes in equity | 414 |
5.3.5 Consolidated cash flow statement | 416 |
5.3.6 First-time application of IFRS 9 | 417 |
5.3.7 Notes to the financial statements of BPCE SA group | 425 |
5.4 Statutory Auditors’ report on the consolidated financial statements | 534 |
5.5 BPCE management report | 544 |
Significant events of 2018 | 544 |
Company situation and activity in 2018 | 545 |
5.6 BPCE parent company annual financial statements | 551 |
5.6.1 Balance sheet and off-balance sheet | 551 |
5.6.2 Income statement | 553 |
5.6.3 Notes to the parent company annual financial statements | 554 |
5.7 Statutory Auditors’ report on the financial statements | 587 |
5.8 Controls of accounting and financial reporting quality | 591 |
5.8.1 Roles and responsibilities in preparing and processing accounting and financial information | 591 |
5.8.2 Production processes for accounting and financial data | 592 |
5.8.3 Control process for accounting and financial data | 594 |
5.9 Persons responsible for auditing the financial statements | 597 |
5.9.1 Statutory Audit system | 597 |
5.9.2 Statutory Auditors of BPCE | 597 |
6. RISK REPORT | 599 |
6.1 Summary of risks | 601 |
6.1.1 Types of risk | 601 |
6.1.2 Key figures | 602 |
6.1.3 Regulatory changes | 604 |
6.1.4 Main risks and emerging risks | 605 |
6.1.5 Risk factors | 605 |
6.2 General structure of Groupe BPCE’S internal control system | 615 |
6.2.1 Participants in the control system | 615 |
6.2.2 Permanent and Periodic Control departments | 615 |
6.2.3 Structure of Groupe BPCE’s internal control system | 616 |
6.3 Capital management and capital adequacy | 618 |
6.3.1 Regulatory framework | 618 |
6.3.2 Scope of application | 620 |
6.3.3 Composition of regulatory capital | 622 |
6.3.4 Regulatory capital requirements and risk-weighted assets | 625 |
6.3.5 Management of capital adequacy | 627 |
6.4 Risk governance and management system | 630 |
6.4.1 Governance of risk management | 630 |
6.4.2 Groupe BPCE’s risk management system | 635 |
6.4.3 Recovery Plan | 638 |
6.5 Credit risk | 639 |
6.5.1 Credit risk management | 639 |
6.5.2 Risk measurement and internal ratings | 645 |
6.5.3 Credit risk mitigation techniques | 651 |
6.5.4 Quantitative disclosures | 654 |
6.6 Counterparty risk | 660 |
6.6.1 Counterparty risk management | 660 |
6.6.2 Quantitative disclosures | 661 |
6.7 Securitization transactions | 663 |
6.7.1 Regulatory framework and accounting methods | 663 |
6.7.2 Securitization management at Groupe BPCE | 664 |
6.7.3 Quantitative disclosures | 665 |
6.8 Market risks | 668 |
6.8.1 Market risk policy | 668 |
6.8.2 Market risk management | 668 |
6.8.3 Market risk measurement methods | 670 |
6.8.4 Quantitative disclosures | 671 |
6.9 Liquidity, interest rate and foreign exchange risks | 674 |
6.9.1 Governance and structure | 674 |
6.9.2 Liquidity risk management policy | 674 |
6.9.3 Quantitative disclosures | 676 |
6.9.4 Management of structural interest rate risk | 679 |
6.9.5 Management of structural foreign exchange risk | 680 |
6.10 Legal risks | 681 |
10.1 Legal and arbitration proceedings – BPCE | 681 |
6.10.2 Legal and arbitration proceedings – Natixis | 681 |
6.10.3 Dependency | 683 |
6.11 Non-compliance, security and operational risks | 684 |
6.11.1 Compliance | 684 |
6.11.2 Financial security | 687 |
6.11.3 Business continuity | 688 |
6.11.4 Information System Security (ISS) | 689 |
6.11.5 Operational risks | 691 |
6.11.6 Compliance and Risks – Insurance & Non-Banking Operations | 694 |
6.11.7 Technical Insurance risks | 696 |
6.12 Climate risks | 700 |
6.12.1 Organization | 700 |
6.12.2 Activities in 2018 and strategic guidelines | 700 |
7. LEGAL INFORMATION | 703 |
7.1 Memorandum and articles of association | 704 |
7.1.1 General information | 704 |
7.1.2 Appropriation of earnings | 705 |
7.1.3 Annual General Shareholders’ Meetings | 706 |
7.1.4 Company documents | 706 |
7.2 Share capital | 707 |
7.2.1 Share capital at December 31, 2018 | 707 |
7.2.2 Category “A” and “B” shares | 708 |
7.3 Ownership structure and distribution of voting rights | 710 |
7.3.1 Ownership structure over the past three years | 710 |
7.3.2 Improper control | 711 |
7.3.3 Changes of control | 711 |
7.4 Material contracts | 712 |
7.5 Material changes | 712 |
7.6 Statutory Auditors’ special report on related-party agreements and commitments | 713 |
7.6.1 Agreements and commitments to be submitted for the approval of the Annual General Shareholders’ Meeting | 714 |
7.6.2 Agreements and commitments already approved by the Annual General Shareholders’ Meeting | 718 |
8. STATEMENT BY THE PERSON RESPONSIBLE | 729 |
8.1 Statement by the person responsible for the registration document and for the annual financial report | 730 |
Statement by the person responsible | 730 |
9. ADDITIONAL INFORMATION | 731 |
9.1 Documents on display | 732 |
9.2 Cross-reference table for the registration document | 733 |
9.3 Cross-reference table for the annual financial report and the management report | 735 |
9.4 Cross-reference table of the main social, environmental and societal information | 737 |
9.5 Glossary | 738 |