BPCE - 2018 Registration document

6 RISK REPORT

Capital management and capital adequacy

6.3.3

Composition of regulatory capital

REGULATORY CAPITAL Regulatory capital is determined in accordance with Regulation No. 575/2013 of the European Parliament and of the Council of June 26, 2013 on prudential requirements for credit institutions and investment firms.

It is divided into three categories: Common Equity Tier 1, Additional Tier 1 capital and Tier 2 capital. Deductions are made from these categories. These categories are broken down according to decreasing degrees of solidity and stability, duration and degree of subordination.

PHASED-IN REGULATORY CAPITAL ➡

12/31/2018 Basel III phased-in (1)

12/31/2017 Basel III phased-in (1)

in millions of euros

Share capital and additional paid-in capital

23,513 39,052

22,722 36,894

Retained earnings

Income

3,026

3,024 1,400

Gains and losses recognized directly in other comprehensive income Consolidated equity attributable to equity holders of the parent Perpetual deeply subordinated notes classified as other comprehensive income Consolidated equity attributable to equity holders of the parent excluding perpetual deeply subordinated notes classified as other comprehensive income

613

66,204

64,039

(683)

(683)

65,521

63,356

Non-controlling interests o/w prudential filters -

4,859

4,568

-

229

Deductions

(5,098) (4,138)

(4,912) (3,962)

- -

o/w goodwill (2)

(960)

(951)

o/w intangible assets (2)

Prudential restatements

(3,104)

(3,970) (1,285)

o/w shortfall of credit risk adjustments to expected losses -

(252) (545)

o/w prudent valuation - Common Equity Tier 1 (3) Additional Tier 1 capital

(409)

62,178

59,042

344

448

Tier 1 capital Tier 2 capital

62,522 14,360 76,882

59,490 14,557 74,047

TOTAL REGULATORY CAPITAL

Phased-in: after taking phase-in measures into account. (1) Including non-current assets and entities held for sale classified as held for sale. (2) Common Equity Tier 1 included €24,128 million in cooperative shares (after taking allowances into account) at December 31, 2018 and €22,477 million in 2017. (3)

620

Registration document 2018