BPCE - 2018 Registration document

ACTIVITIES AND FINANCIAL INFORMATION 2018 Significant events of 2018

4.2.2

Significant events of the fiscal year

The Groupe BPCE Supervisory Board, chaired by Michel Grass, approved the appointment of Laurent Mignon as Chairman of the Management Board after François Pérol stepped down. A new Management Board was appointed for a four-year term, along with several new members of the Executive Management Committee. The Executive Management Committee of Groupe BPCE now comprises: Laurent Mignon, Chairman of the BPCE Management Board; ● Laurent Benatar, Chief Information Officer; ● Jacques Beyssade, Secretary General; ● Géraud Brac de La Perrière, Chief Risk Officer; ● Christine Fabresse, Head of Retail Banking and Insurance, Member ● of the Management Board ; Jean-Yves Forel, Head of Retail Banking Europe and Paris 2024 ● Project; Dominique Garnier, Deputy Chief Executive Officer, Head of SEF : ● Solutions and Financial Expertise; Catherine Halberstadt, Head of Human Resources, Member of the ● Management Board; Nicolas Namias, Chief Financial Officer, Member of the ● Management Board; François Riahi, Chief Executive Officer of Natixis, Member of the ● Management Board; Yves Tyrode, Chief Digital Officer. ● Against this backdrop, Groupe BPCE continued implementing its strategic plan and launched structure-building projects aimed at strengthening its operating model and improving efficiency: Groupe BPCE launched a plan to integrate the activities and teams ● of Crédit Foncier with the goal of consolidating its leading position in the real estate financing market, thanks in large part to the contribution of Crédit Foncier’s skills, expertise and talent, and to the strength of the Banque Populaire and Caisse d’Epargne networks in the regions, with a view to increasing banking penetration among customers. The plan, approved by the employee representative bodies of CFF on October 26, 2018, will be implemented in the first half of 2019 subject to two requirements: first, the Group aims to extend and increase its presence among - all customers, particularly low-income, first-time home buyers, second, Crédit Foncier employees will be integrated within other - Groupe BPCE companies in a socially responsible manner, in accordance with their respective traditions; on September 12, 2018, Natixis and BPCE announced Natixis’ plan ● to sell its Factoring, Sureties & Guarantees, Leasing, Consumer Finance and Securities Services business lines to BPCE for € 2.7 billion. This transaction, if completed, will contribute significantly to the achievement of Natixis and BPCE’s strategic plans. In particular, it will allow Natixis to step up the development of its asset-light model and BPCE to strengthen its universal

banking model. The sale is scheduled to take place by the end of Q1 2019, subject to the conditions precedent being lifted; specifically, BPCE must complete a capital increase – and the newly issued shares acquired by the Banque Populaire banks and Caisses d’Epargne – and the necessary regulatory approvals must be obtained. During the fourth quarter of 2018, the operational implementation of the plan was prepared and the various stages leading to the completion of the transaction initiated; the Group also launched initiatives to develop its presence in ● international retail banking. It entered into exclusive talks with Moroccan banking group, Banque Centrale Populaire on the sale of the equity interests held by BPCE International in Africa (1) . This deal is in line with the sale of Banque des Mascareignes to Groupe Banque Centrale Populaire, finalized in October 2018. The Insurance business line, a key component of the Group’s strategy, kept the momentum going strong in 2018, generating 9.8% growth in life insurance AuM to € 60.1 billion (2) . The non-life insurance portfolio grew by 5% to 5.8 million policies. Earned premiums on the Banque Populaire and Caisse d’Epargne networks climbed 7% to € 1.5 billion. Revenue synergies between Natixis and the networks totaled € 280 million in 2018, with a final target of € 750 million by end-2020. Insurance accounted for 57% of revenue synergies, reflecting the rapid development of the Bancassurance model. New products and services were launched on both networks: the Banque Populaire banks launched the first banking service offer ● in France for families, combining all everyday banking services and the best in digital services. A dedicated advisor assists the entire family with day-to-day banking matters and with their life goals; the Caisses d’Epargne launched a new full-digital mobile banking ● offer dubbed “Enjoy”. Available for € 2 a month, customers receive all essential everyday banking services: an account, a debit card, a mobile app and access to the entire Caisse d’Epargne lending, savings and insurance range via their Enjoy advisor; after launching Apple Pay in 2017, Groupe BPCE was the first to ● offer the Samsung Pay mobile payment solution to Banque Populaire and Caisse d’Epargne customers with compatible Samsung smartphones; the Banque Populaire banks and Caisses d’Epargne launched a ● simple, digital and personalized turnkey loyalty solution for professional customers (small enterprises, craftsmen, small retailers, farmers and self-employed professionals). The solution allows professionals to use a dedicated platform to offer loyalty incentives tailored to their customers and to create targeted market campaigns to boost sales; the Permanent Assembly of Chambers of Trade and Small ● Businesses and Groupe BPCE launched the “small business agreement” to support and promote small businesses. The agreement contains five commitments, including the provision of € 1 billion in medium- and long-term loans to finance small businesses;

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in Cameroon (68.5% in Banque Internationale du Cameroun pour l’Épargne et le Crédit), Madagascar (71% in Banque Malgache de l’Océan Indien), Republic of the Congo (100% in Banque (1) Commerciale Internationale) and Tunisia (60% in Banque Tuniso-Koweitienne) Excluding the reinsurance treaty with CNP. (2)

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Registration document 2018