BPCE - 2018 Registration document

1.1 Groupe BPCE: committed to serving its customers and the economy6
1.2 History7
1.3 Organization of Groupe BPCE8
Three-pillar structure9
Balanced governance10
1.4 TEC 2020: a strategic plan focused on digital transformation, commitment and growth11
1.5 Performance of Groupe BPCE – Key figures 201813
Recurring, diversified revenue base13
High level of solvency14
BPCE SA group indicators15
Sustainable development central to the Group’s activities15
1.6 Groupe BPCE’s business lines16
1.6.1 Retail Banking and Insurance17
1.6.2 Natixis26
1.7 Calendar33
1.8 Contacts33
2.1 Sustainable development built on our cooperative identity37
2.1.1 A business model that creates lasting value and has confirmed its solidity37
2.1.2 A strong cooperative identity42
2.2 A CSR strategy aimed at incorporating sustainable development in our business lines and decision-making processes46
2.2.1 Identifying our priorities: analysis of ESG risks and opportunities to build a relevant, ambitious CSR strategy46
2.2.2 Our key performance indicators47
2.2.3 Our commitments47
2.2.4 Constant dialog with our stakeholders56
2.3 A range of services to meet the challenges facing our customers58
2.3.1 Steering deposits and savings towards a more responsible economy58
2.3.2 Financing for the energy, ecological and social transition: offers tailored to our customers’ needs65
2.3.3 Helping customers address climate risk and gear up for the energy transition75
2.4 Sustainable and responsible value creation83
2.4.1 Contribution to regional economic development83
2.4.2 Active sponsorship in the French regions86
2.4.3 Respecting business ethics in all Group business lines88
2.5 Responsible internal practices99
2.5.1 Employees: helping to build and develop the Group99
2.5.2 Reducing our direct environmental footprint114
2.6 CSR reporting methodology120
2.6.1 CSR reporting structure120
2.6.2 Reporting scope for 2018123
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 report124
3.1 Introduction128
3.2 Corporate Governance Code128
3.3 Management and Supervisory Bodies130
3.3.1 Groupe BPCE governance structure130
3.3.2 Supervisory Board132
3.3.3 Management Board137
3.3.4 Executive Management Committee – BPCE governing body138
3.3.5 Directorships and offices held by corporate officers139
3.4 Role and operating rules of governing bodies181
3.4.1 Supervisory Board181
3.4.2 Specialized committees185
3.4.3 Attendance of Supervisory Board and specialized Committee Meetings189
3.4.4 Management Board190
3.4.5 Annual General Shareholders’ Meetings190
3.5 Rules and principles governing the determination of pay and benefits192
3.5.1 Pay policy, components of pay, benefits in kind, loans, guarantees and attendance fees received by members of the Supervisory Board of BPCE192
3.5.2 Pay and benefits of any kind awarded to Management Board Members for 2018196
3.5.3 2019 Pay Policy212
3.6 Potential conflicts of interest220
3.6.1 Members of the Supervisory Board220
3.6.2 Members of the Management Board221
4.1 Foreword224
4.2 Significant events of 2018224
4.2.1 Economic and financial environment224
4.2.2 Significant events of the fiscal year225
4.3 Groupe BPCE financial data228
4.3.1 Groupe BPCE results228
4.3.2 Groupe BPCE’s core businesses229
4.3.3 Income statement by sector230
4.3.4 Retail Banking and Insurance231
4.3.5 Asset & Wealth Management236
4.3.6 Corporate & Investment Banking (CIB)237
4.3.7 Corporate center238
4.3.8 Analysis of the Groupe BPCE consolidated balance sheet239
4.4 BPCE SA group financial data241
4.4.1 BPCE SA group results241
4.4.2 Analysis of the consolidated balance sheet of BPCE SA group242
4.5 Investments243
4.5.1 In 2018243
4.5.2 In 2017243
4.5.3 In 2016243
4.6 Post-balance sheet events243
4.7 Outlook for Groupe BPCE244
5.1 IFRS Consolidated Financial Statements of Groupe BPCE as at December 31, 2018250
5.1.1 Consolidated income statement250
5.1.2 Comprehensive income252
5.1.3 Consolidated balance sheet254
5.1.4 Statement of changes in equity256
5.1.5 Consolidated cash flow statement258
5.1.6 First-time application of IFRS 9259
5.1.7 Notes to the financial statements of Groupe BPCE267
5.2 Statutory Auditors’ report on the consolidated financial statements399
5.3 IFRS Consolidated Financial Statements of BPCE SA group as at December 31, 2018409
5.3.1 Consolidated income statement409
5.3.2 Comprehensive income411
5.3.3 Consolidated balance sheet412
5.3.4 Statement of changes in equity414
5.3.5 Consolidated cash flow statement416
5.3.6 First-time application of IFRS 9417
5.3.7 Notes to the financial statements of BPCE SA group425
5.4 Statutory Auditors’ report on the consolidated financial statements534
5.5 BPCE management report544
Significant events of 2018544
Company situation and activity in 2018545
5.6 BPCE parent company annual financial statements551
5.6.1 Balance sheet and off-balance sheet551
5.6.2 Income statement553
5.6.3 Notes to the parent company annual financial statements554
5.7 Statutory Auditors’ report on the financial statements587
5.8 Controls of accounting and financial reporting quality591
5.8.1 Roles and responsibilities in preparing and processing accounting and financial information591
5.8.2 Production processes for accounting and financial data592
5.8.3 Control process for accounting and financial data594
5.9 Persons responsible for auditing the financial statements597
5.9.1 Statutory Audit system597
5.9.2 Statutory Auditors of BPCE597
6.1 Summary of risks601
6.1.1 Types of risk601
6.1.2 Key figures602
6.1.3 Regulatory changes604
6.1.4 Main risks and emerging risks605
6.1.5 Risk factors605
6.2 General structure of Groupe BPCE’S internal control system615
6.2.1 Participants in the control system615
6.2.2 Permanent and Periodic Control departments615
6.2.3 Structure of Groupe BPCE’s internal control system616
6.3 Capital management and capital adequacy618
6.3.1 Regulatory framework618
6.3.2 Scope of application620
6.3.3 Composition of regulatory capital622
6.3.4 Regulatory capital requirements and risk-weighted assets625
6.3.5 Management of capital adequacy627
6.4 Risk governance and management system630
6.4.1 Governance of risk management630
6.4.2 Groupe BPCE’s risk management system635
6.4.3 Recovery Plan638
6.5 Credit risk639
6.5.1 Credit risk management639
6.5.2 Risk measurement and internal ratings645
6.5.3 Credit risk mitigation techniques651
6.5.4 Quantitative disclosures654
6.6 Counterparty risk660
6.6.1 Counterparty risk management660
6.6.2 Quantitative disclosures661
6.7 Securitization transactions663
6.7.1 Regulatory framework and accounting methods663
6.7.2 Securitization management at Groupe BPCE664
6.7.3 Quantitative disclosures665
6.8 Market risks668
6.8.1 Market risk policy668
6.8.2 Market risk management668
6.8.3 Market risk measurement methods670
6.8.4 Quantitative disclosures671
6.9 Liquidity, interest rate and foreign exchange risks674
6.9.1 Governance and structure674
6.9.2 Liquidity risk management policy674
6.9.3 Quantitative disclosures676
6.9.4 Management of structural interest rate risk679
6.9.5 Management of structural foreign exchange risk680
6.10 Legal risks681
10.1 Legal and arbitration proceedings – BPCE681
6.10.2 Legal and arbitration proceedings – Natixis681
6.10.3 Dependency683
6.11 Non-compliance, security and operational risks684
6.11.1 Compliance684
6.11.2 Financial security687
6.11.3 Business continuity688
6.11.4 Information System Security (ISS)689
6.11.5 Operational risks691
6.11.6 Compliance and Risks – Insurance & Non-Banking Operations694
6.11.7 Technical Insurance risks696
6.12 Climate risks700
6.12.1 Organization700
6.12.2 Activities in 2018 and strategic guidelines700
7.1 Memorandum and articles of association704
7.1.1 General information704
7.1.2 Appropriation of earnings705
7.1.3 Annual General Shareholders’ Meetings706
7.1.4 Company documents706
7.2 Share capital707
7.2.1 Share capital at December 31, 2018707
7.2.2 Category “A” and “B” shares708
7.3 Ownership structure and distribution of voting rights710
7.3.1 Ownership structure over the past three years710
7.3.2 Improper control711
7.3.3 Changes of control711
7.4 Material contracts712
7.5 Material changes712
7.6 Statutory Auditors’ special report on related-party agreements and commitments713
7.6.1 Agreements and commitments to be submitted for the approval of the Annual General Shareholders’ Meeting714
7.6.2 Agreements and commitments already approved by the Annual General Shareholders’ Meeting718
8.1 Statement by the person responsible for the registration document and for the annual financial report730
Statement by the person responsible730
9.1 Documents on display732
9.2 Cross-reference table for the registration document733
9.3 Cross-reference table for the annual financial report and the management report735
9.4 Cross-reference table of the main social, environmental and societal information737
9.5 Glossary738

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