BPCE - 2018 Registration document

2 NON-FINANCIAL PERFORMANCE REPORT

A range of services to meet the challenges facing our customers

Going above and beyond

Populaire banks and Caisses d’Epargne have launched platforms to promote thermal home renovation by aligning local government climate policies with offers put in place by banking institutions,

In addition to special financing products, Groupe BPCE also provides retail customers with mechanisms for green growth. Several Banque

notably as part of the BPCE-KfW-ELENA program.

Review of the BPCE-KfW-ELENA pilot scheme The program launched by the European Commission in partnership with the German bank KfW and Groupe BPCE in 2012 came to an end in 2018. Three Banque Populaire banks, two Caisses d’Epargne and their six partner local authorities developed the program aimed at organizing energy transition financing in the regions. A number of qualitative and quantitative conclusions can now be drawn on the program’s successes and areas for improvement. At December 31, 2018, € 1.4 million in subsidies had been allocated to partner local authorities. Households received € 3.9 million in loans from participating Banque Populaire banks and Caisses d’Epargne, representing a total final investment of € 62.7 million and generating energy savings of 152 GWh. The initiative supported 1,610 energy efficiency projects. These results testify to the utility of the program and confirm that a bank’s full involvement is a key success factor. Underscoring this success, other local authorities have called on the Banque Populaire banks and Caisses d’Epargne to extend the program, and initiatives are under way to take it further into the future beyond 2019.

MAKING MAJOR ENERGY TRANSITION PROJECTS A REALITY Financing the French economy and local regions In 2018, Groupe BPCE’s total loan outstandings ( via the Banque Populaire and Caisse d’Epargne networks) amounted to € 444.6 billion, up 6.5% in relation to 2017. This makes Groupe BPCE the second largest banking group in France (1) . Financing local public stakeholders and the social and solidarity-based economy The Banque Populaire banks and the Caisse d’Epargne are major sources of funding for local authorities, social housing operators and structures in the social and solidarity-based economy.

Groupe BPCE is the leading private-sector lender to the social economy (2) : non-profits, foundations, mutual insurers, social entrepreneurs and cooperative groups. Of the Banque Populaire banks, Crédit Coopératif makes a particularly substantial contribution to the field. Meanwhile, the Caisse d’Epargne network is: the No. 2 private-sector operator in the social housing sector. And, ● via the Habitat en Région network which manages 244,000 housing units, it is an operator and a committed partner involved in the governance of one out of three organizations in France (public housing offices, social housing companies, cooperatives, non-profits, etc.); a major creditor of the public sector: the Caisse d’Epargne network is ● a major partner of local authorities and public healthcare institutions, accounting for nearly one-third of their loan outstandings.

FINANCING FOR THE REGIONAL PUBLIC SECTOR, SOCIAL HOUSING AND THE SOCIAL ECONOMY BY GROUPE BPCE (3) ➡

Change 2017-2018

Indicators (in thousands of euros)

2018

2017

2016

Total annual new regional public sector loans Total annual new social housing loans Total annual new social economy loans

4,066,066 3,056,821 1,745,615

4,938,171 3,016,036 1,949,753

5,279,814 2,655,554 1,481,284

(18%)

1%

(10%)

Financing the transition in the agri-food segment

For Groupe BPCE, the number two bank in farming and wine production, supporting its clients through the ecological transition is a major objective. In 2018, the Banque Populaire network included sustainable financing and support for direct local sales in its agriculture strategic plan for 2018-2023. The direct-to-customer offer was rolled out across the network to help farmers and wine producers develop their direct sales, which foster social relationships in rural areas, in particular through employment, consumer well-being and health and the reduced environmental impact. The Banque Populaire network also encourages recognition of variations in the economic environment, health considerations, and weather patterns by incorporating the notion of a resilience threshold in the loan

Among all the challenges of the energy and ecological transition, those facing the agricultural and agri-food segments are probably the most significant. As well as playing a major role in the economy, agriculture is key to an effective carbon policy and has a major ecological impact (water, biodiversity). It is also one of the main contributors to preserving the economy of local regions and protecting the environment. The agri-food industry, with its processing and distribution activities, also has a vital role to play in changing consumer habits.

Market share: 21.5% of customer deposits & savings and 21.1% of customer loans (Source: Banque de France Q3 2018) (1) APRI CE loan market share 19.77% (source: Banque de France at June 2018) and rising for the last 18 months (2) Rectified data (3)

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Registration document 2018