BPCE - 2018 Registration document

5 FINANCIAL REPORT

Controls of accounting and financial reporting quality

coordinating and steering approaches for the analysis of the ● Group’s operating costs; helping prepare the Group strategic and financial plans; ● coordinating the Finance Control process within Groupe BPCE. ● Investor Relations The Investor Relations function is responsible for information published through presentations to financial analysts and institutional investors on the BPCE website and for registration documents and their updates filed with the AMF and also available on the BPCE website. Within BPCE, the function is performed by the Group Funding and Investor Relations division (within the Group Finance division), the head of which reports to the Chief Financial Officer. Its duties in this area are as follows: coordinating and preparing presentations of Groupe BPCE’s ● quarterly results, financial structure and business development, to enable third parties to form an opinion on its financial strength, profitability and outlook; coordinating and preparing the presentation of regulated financial ● information (registration document and its quarterly updates) filed with the AMF while including contributions from other BPCE offices; organizing relations with rating agencies by coordinating with the ● other rated entities of Groupe BPCE; organizing and maintaining relationships with credit investors likely ● to hold and/or acquire debt instruments (short, medium or long term) issued by BPCE or Natixis. a standardized control mechanism for accounting and financial ● data, the structure of which is described in Section 5.8.3 below. Groupe BPCE institutions publishing financial statements on a consolidated basis under IFRS are all of the Banque Populaire banks and Caisses d’Epargne and the Group’s main subsidiaries: Natixis, Crédit Foncier, Banque Palatine and BPCE International. The body of standards As part of the monitoring and correct application of accounting and prudential rules, BPCE’s Group Finance, Strategy, Corporate Secretary and Legal Affairs division has designed and implemented a body of standards based on: the definition and dissemination of accounting policies for Groupe ● BPCE, both for French GAAP and international (IFRS) accounting standards; the implementation of a consolidation standard aimed at ensuring ● the reliability of the process of collecting consolidated accounting, tax or prudential data.

In addition, the Group Accounting division supports the business lines of the division in managing financial information systems projects and helps preserve individual and community financial standards, for all functions comprising the division and for shareholder institutions. Finance Control The Finance Control function is responsible for preparing management information. Within Groupe BPCE, each entity’s Finance Control office is in charge of operational coordination and is responsible for producing such information for the entity and for the central institution. Within BPCE, this role is carried out by the Group Steering and Strategy division, the head of which reports to the Chief Executive Officer in charge of the Group Finance, Strategy, Corporate Secretary and Legal Affairs division. In this area, its main duties are: coordinating the steering of the financial planning, budget and ● multi-year rolling forecast process; coordinating the steering of commercial performance in support of ● the Commercial Banking and Insurance division; coordinating solvency matters (capital adequacy and leverage ● ratios, TLAC, MREL, etc.) and the Pillar II approach within the Group (stress tests, ICAAP, solvency matters, Business Model Assessment); coordinating and monitoring the management of scarce resources ● within the Group (cost-effectiveness, capital/solvency, liquidity); analyzing the performance of Groupe BPCE, its business lines and ● entities, especially during the publication of each quarter’s results; steering and challenging the subsidiaries’ financial performances to ● safeguard the Group’s financial ratios; carrying out benchmarking and monitoring the performance and ● strategic guidelines of competitors; GENERAL FRAMEWORK AND PREPARATION OF CONSOLIDATED ACCOUNTING AND FINANCIAL DATA The central institution prepares the consolidated financial statements of Groupe BPCE and its individual company financial statements. It oversees and produces Groupe BPCE’s consolidated ratios, as well as those of affiliated institutions through regulatory reporting. The central institution also ensures that Groupe BPCE’s affiliated institutions correctly apply accounting and prudential rules. To guarantee the reliability of the process, the Group Finance, Strategy, Corporate Secretary and Legal Affairs division relies on: an adapted body of standards distributed to all Group entities; ● the uniformity of a consolidated IT system that guarantees ● consistent treatment and analysis; a comprehensive body of documents in line with requirements set ● out in Articles 3 e), 11 e), 255 and 256 of the Ministerial Order of November 3, 2014 on internal control; 5.8.2

Production processes for accounting and financial data

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Registration document 2018