BPCE - 2018 Registration document

5 FINANCIAL REPORT

IFRS Consolidated Financial Statements of BPCE SA group as at December 31, 2018

Note 12

Other information

SEGMENT REPORTING 12.1 BPCE SA group has three core businesses: Retail Banking and Insurance, which includes:

Wealth Management, with Natixis Wealth Management, which ● offers wealth management and financing solutions for large private-sector investors. Corporate & Investment Banking, a division of Natixis: Corporate & Investment Banking advises and supports corporates, ● institutional investors, insurance companies, banks and public sector entities. The Corporate center, which primarily includes: the Group’s central institution and holding companies; ● Natixis’ equity interests in Coface, Corporate Data Solutions, Natixis ● Algérie and Natixis Private Equity; unlisted investments and cross-business activities; ● items related to goodwill impairment and the amortization of ● valuation differences, as these items form part of the Group’s acquisition and investment strategy; the contribution to the Single Resolution Fund and the Deposit ● Guarantee Fund.

specialized Financial Services (SFS), a Natixis business line ● encompassing specialized financing activities (factoring, leasing, consumer credit, sureties and financial guarantees), payments and financial services; 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;

Segment analysis of the consolidated income statement 12.1.1 Results by division

Corporate & Investment Banking

Retail Banking and Insurance *

Asset & Wealth Management

Corporate center

BPCE SA group

in millions of euros

2018

2018

2018

2018

2018

2017

2017

2017

2017

2017

Net banking income Operating expenses

3,471 3,303 3,419 3,113 3,237 3,581 673 501 10,800 10,499

(2,713)

(2,284)

(2,264)

(2,178)

(2,193)

(2,194)

(1,626)

(1,485)

(8,795)

(8,141)

Gross operating income

758 1,019 1,154 936 1,045 1,387 (952) 78.2% 69.1% 66.2% 69.9% 67.7% 61.3% ns

(984)

2,005 2,358

Cost/income ratio

ns 81.4% 77.5%

Cost of risk

(198)

(292)

(1)

(175)

(115)

(11)

(104)

(385)

(511)

Share in income of equity-accounted associates Gains or losses on other assets Change in the value of goodwill

15

14

3

1

12

10 219 216 248 241

(40)

(15)

43

13

3 0

18

(1)

89

4 104

0

(16)

(66)

(16)

(66)

Income before tax

536 725 1,198 950 884 1,300 (762)

(849)

1,856 2,126

Income tax

(194) (162)

(231) (130)

(323) (415)

(329) (276)

(235) (194)

(380) (269)

362 329 (389)

(611) (670)

Non-controlling interests

(11)

6 (782)

NET INCOME ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT

180 364 460 345 455 651 (410)

(514)

685 845

Excluding the Banque Populaire banks, Caisses d’Epargne and their consolidated subsidiaries *

516

Registration document 2018