BPCE - 2018 Registration document

1 PRESENTATION OF GROUPE BPCE

TEC 2020: a strategic plan focused on digital transformation, commitment and growth

AMBITIOUS GROWTH TARGETS IN ALL BUSINESS LINES

Retail Banking and Insurance For the Banque Populaire banks, developing the civil service market, consolidating our position as the leading bank for SMEs and ● maintaining a presence alongside company directors. For the Caisses d’Epargne, consolidating our position as the preferred bank for individual customers, and particularly those with the ● potential to become wealth management clients, and continuing our efforts to gain new professional and corporate customers, while maintaining leadership on the institutional market. Crédit Foncier: further integrating the bank’s activities within the Group. ● Banque Palatine: providing an offering of high-end services focusing on dual banking relationships with company directors. ● Digitizing specialized financial services, boosting synergies with the banking networks and becoming a pure player in payments (Natixis). ● Consolidating our position as a top tier insurer in France (notably as one of the Top 5 in personal insurance) and integrating the entire ● non-life insurance value chain. Asset Management Confirming our position as a world leader in active investment strategies in terms of size, profitability and capacity for innovation. ● Developing alternative strategies and solutions. ● Expanding global distribution capacities. ● Corporate & Investment Banking Being recognized as a bank for innovative solutions and strengthening our Originate-to-Distribute model, primarily by expanding our ● client base of insurers and investment funds. Becoming the go-to bank in four key sectors: Energy and Natural Resources, Infrastructure, Aviation, Real Estate & Hospitality. ● This growth will be achieved in strict compliance with the Group’s financial fundamentals, i.e. keeping the CET1 ratio above 15.5% and the TLAC ratio above 21.5% (excluding senior preferred debt) as from early 2019 by issuing € 4 billion to € 5 billion in senior non preferred debt per year, while keeping cost of risk on outstandings between 20 bp and 30 bp. Groupe BPCE has set an NBI target of more than € 25 billion by the end of 2020. The target cost/income ratio is approximately 64% for Retail Banking and Insurance, 68% for Asset & Wealth Management, and 60% for Corporate & Investment Banking. To reach these targets, the Group will rely on additional revenue synergies between Natixis, the Banque Populaire banks and the Caisse d’Epargne (over € 750 million) and a cost-cutting program set to unlock € 1 billion in savings on a full-year basis by 2020. In retail banking: redeployment of Crédit Foncier activities and expertise across the Group; ● incorporation of Natixis specialized financial services in BPCE SA group; ● partnership with Auchan Holding, with BPCE planning to purchase a 50.1% stake in Oney Bank, a leading European player in consumer ● finance and payment activities. In Asset Management: expanded expertise in the private debt market, with the acquisition of MV Credit by Natixis Investment Managers. ● In Corporate & Investment Banking: ongoing development of the multi-boutique model in M&A Advisory, with investments in Fenchurch Advisory Partners (United Kingdom), ● Vermilion Partners (China) and Clipperton (France). ADDITIONAL STRATEGIC OPERATIONS FOR THE DEVELOPMENT OF THE BUSINESS LINES

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Registration document 2018