BPCE - 2018 Registration document

ACTIVITIES AND FINANCIAL INFORMATION 2018 Groupe BPCE financial data

INCOME BEFORE TAX At € 1.3 billion, Groupe BPCE’s cost of risk decreased 6.1% compared to 2017. Divided by customer loan outstandings, Groupe BPCE’s cost of risk in basis points hit a low of 19 bp on average over the year versus 20 bp in 2017. At 2.8%, the rate of non-performing loans to gross outstandings was on the decline from 2017. The coverage rate for non-performing loans, including collateral on impaired loan outstandings, came to 74.5% at December 31, 2018 versus 71.4% at December 31, 2017. Over full-year 2018, cost of risk was steadily low in retail banking (23 bp for the Banque Populaire network and 15 bp for the Caisse d’Epargne network) and Corporate & Investment Banking (18 bp). The share in income of associates climbed € 7 million, thanks in large part to the improvement in CNP’s earnings. Gains and losses on other assets fell € 73 million, primarily due to a 2017 comparison base effect (a capital gain of € 84 million was recorded on the disposal of the Parc Avenue building in 2017). Goodwill declined - € 16 million in 2018, reflecting goodwill impairment on Crédit Foncier Immobilier (- € 13 million) and Ariès Assurances (- € 3 million). Groupe BPCE’s income tax totaled € 1,477 million, down 18.4% compared to 2017, mainly attributable to a 2017 comparison base effect (exceptional corporate tax contribution, impairment of deferred tax assets subsequent to the announcement of an income tax reduction in France over the next few years, and the income tax reduction in 2018 on earnings generated outside France and particularly in the United States). Net income attributable to equity holders of the parent was stable in 2018 at € 3.0 billion. Groupe BPCE ramped up its transformation in 2018 and delivered another strong earnings performance, rooted in its universal banking model, despite ongoing economic uncertainty and adverse market conditions. NET INCOME ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT

SOLVENCY Groupe BPCE’s CET1 ratio (1) grew stronger in 2018 despite the negative -17 bp impact of the entry into force of IFRS 9: the CET1 ratio was 15.8% at December 31, 2018 versus 15.4% at December 31, 2017, an improvement of 40 bp. This improvement can mainly be attributed to the expansion of CET1 capital (by approximately € 3 billion), largely owing to retained earnings (+69 bp since December 31, 2017) and net cooperative share inflows (+34 bp since December 31, 2017). At 15.8%, Groupe BPCE’s phased-in CET1 ratio at December 31, 2018 was significantly higher than the ECB’s minimum requirement, as defined during the 2018 Supervisory Review and Evaluation Process (SREP). The phased-in total capital ratio came to 19.6% at December 31, 2018, i.e. above the ECB’s minimum requirement (13.25%). TLAC (Total Loss Absorping Capacity) (2) totaled € 88.4 billion at end-December 2018. The pro forma TLAC ratio was 22.5% at end-2018 versus 20.8% at December 31, 2017 and a target of 21.5% for early 2019, as defined in the TEC 2020 strategic plan. The leverage ratio (3) came out at 5.2% at December 31, 2018 versus 5.1% at December 31, 2017 (pro forma). LIQUIDITY Groupe BPCE’s total liquidity reserves amounted to € 204 billion at December 31, 2018, including € 74 billion in available assets eligible for central bank funding, € 62 billion in LCR-eligible assets and € 67 billion in liquid assets placed with central banks. Short-term funding increased from € 101 billion at December 31, 2017 to € 107 billion at December 31, 2018, stemming from the decrease in liquidity reserves. At December 31, 2018, Groupe BPCE’s total liquidity reserves covered 160% of all short-term funding as well as short-term maturities of MLT debt ( versus 174% at end-2017). The Liquidity Coverage Ratio (LCR) was once again above 110% at December 31, 2018.

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4.3.2

Groupe BPCE’s core businesses

The Group has three core businesses: Retail Banking and Insurance, which includes:

Insurance, a Natixis business line serving the Groupe BPCE ● networks and their customers; other networks, which comprise Crédit Foncier group, BPCE ● International (BPCE I) and Banque Palatine. Asset & Wealth Management, a Natixis business line consisting of: Asset Management, which operates on several international ● markets, combining expertise in investment management and distribution;

the Banque Populaire network, comprised of the 14 Banque ● Populaire banks and their subsidiaries, Crédit Maritime Mutuel, and the Mutual Guarantee Companies; the Caisse d’Epargne network, consisting of the 15 Caisses ● d’Epargne; Specialized Financial Services (SFS), a Natixis business line ● encompassing specialized financing activities (factoring, leasing, consumer finance, sureties and guarantees), payments and financial services;

Estimate at 12/31/2018 – CRR/CRD IV fully loaded. (1) Within the meaning of the Financial Stability Board term sheet of November 9, 2015 on Total Loss Absorbing Capacity. (2) Under the rules of the Delegated Act published by the European Commission on October 10, 2014. (3)

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Registration document 2018