BPCE - 2018 Registration document

5 FINANCIAL REPORT

BPCE management report

Information relating to control of accounting and financial reporting quality This information is provided in Chapter 5.8. POST-BALANCE SHEET EVENTS BPCE SA plans (1) to purchase a majority stake of 50.1% from Auchan Holding On February 12, 2019, Groupe BPCE announced that it was in exclusive talks with Auchan Holding to purchase a 50.1% stake in Oney Bank SA. The employee representative bodies will be informed and consulted on this project. After the consultation, the parties may sign their partnership agreement. The transaction may not be closed until the necessary approvals are obtained from the competent French and European authorities; as such, it is expected to be closed in the second half of the year. The deal is expected to have an estimated impact of under 15bp on the Group’s CET1 ratio. RECENT DEVELOPMENTS AND OUTLOOK The outlook for the economic environment and recent and forthcoming regulatory changes are described in point 4.7 of Chapter 4.

Liquidations over the period were as follows: Technology Shared Services Outre-Mer: liquidation closed in ● January; Technology Shared Services Méditerranée: liquidation closed in ● March. Research and development activities BPCE carries out research and development activities chiefly in the area of modeling credit risks. Management of financial risks Information relating to the management of financial risks is provided in Chapter 6. Main risks Information relating to the main risks and uncertainties facing BPCE is provided in Chapter 6. Difficulties encountered The difficulties encountered over 2018 were linked to the economic and financial environment described in point 4.2.1 of Chapter 4. Social, environmental and societal information This information is provided in Chapter 2.

Subject to the lifting of the conditions precedent and procurement of the necessary regulatory approvals (1)

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Registration document 2018