BPCE - 2018 Registration document

RISK REPORT Capital management and capital adequacy

COMMON EQUITY TIER 1 (CET1) Core capital and deductions Common Equity Tier 1 consists of: share capital; ● reserves, including revaluation differences and gains or losses ● recognized directly in equity; additional paid-in capital or merger premiums; ● retained earnings; ● net income attributable to equity holders of the parent; ● unrealized gains and losses recognized directly in other ● comprehensive income; non-controlling interests in banking or related subsidiaries for the ● share after CET1 eligibility caps. The following deductions are made:

treasury shares held and measured at their carrying amount; ● intangible assets, including set-up costs and goodwill; ● deferred tax assets and liabilities that rely on future profitability; ● prudential filters arising from CRR Articles 32, 33, 34 and 35: ● gains or losses on cash flow hedges, gains on transactions in securitized assets, own credit risk; negative amounts arising from the comparison between provisions ● and expected losses (in this calculation, performing loans are clearly separated from loans in default); equity interests in eligible banking, financial and insurance ● institutions, according to the rules on allowances for these holdings and the phase-in period; value adjustments arising from the prudent valuation of assets and ● liabilities measured at fair value according to a prudential method, deducting any value adjustments.

CHANGES IN CET1 CAPITAL ➡

CET1 capital

in millions of euros

12/31/2017

59,042

Cooperative share issues

1,404 2,680 (948)

Income net of proposed dividend payout

Other items 12/31/2018

62,178

BREAKDOWN OF NON-CONTROLLING INTERESTS (MINORITY INTERESTS) ➡

Non-controlling interests

in millions of euros

6

Carrying amount (regulatory scope) – 12/31/2018

6,392 (152) (736) (334) (312) 4,859 0

Perpetual deeply subordinated notes classified as non-controlling interests

Ineligible non-controlling interests

Proposed dividend payout

Caps on eligible non-controlling interests

Other items

Prudential amount – 12/31/2018

621

Registration document 2018