BPCE - 2018 Risk report / Pillar III

3 CAPITAL MANAGEMENT AND CAPITAL ADEQUACY Scope of application

Scope of application 3.2

Regulatory scope Groupe BPCE is required to submit consolidatedregulatoryreports to the European Central Bank (ECB), the supervisory authority for euro zone banks. PillarIII is therefore prepared on a consolidatedbasis. The regulatory scope of consolidation is established based on the statutory scope of consolidation.The main difference between these two scopes lies in the consolidationmethod for insurancecompanies, which are accounted for by the equity method within the regulatory scope, regardless of the statutory consolidation method. The following insurance companies are accounted for by the equity method withinthe regulatory scope of consolidation:

Coface; ● Natixis Assurances; ● Compagnie Européenne de Garanties et de Cautions; ● Prépar-Vie; ● Prépar-IARD; ● Nexgen Reinsurance Limited. ●

The following insurance companies are accounted for by the equity method within both the statutory and regulatory scopes of consolidation: CNP Assurances; ● Caisse de GarantieImmobilière duBâtiment; ● Parnasse Garanties. ●

Surassur; ● Muracef; ●

TABLE 1 – DIFFERENCES BETWEEN ACCOUNTING AND REGULATORY SCOPES OF CONSOLIDATION ➡ The table below shows the transition from an accounting balance sheet to aregulatory balance sheet for Groupe BPCE at December31, 2018.

Assets at 12/31/2018 in millions of euros

BPCE statutory scope

Prudential restatements

BPCE prudential scope

Cash and amountsdue from centralbanks Financialassetsat fair value throughprofit or loss

76,458 200,516 22,322 25,713

95 (4) 20

76,553 200,512 22,342 25,713

o/w debt instruments - o/w equityinstruments -

-

o/w loan book -

7,590

(30)

7,560

o/w repurchaseagreements - o/w derivative financial instruments -

83,115 45,867 15,909

-

83,115 45,872 15,910

6 0

Security deposits paid -

Hedgingderivatives– PositiveFV

8,160

-

8,160

Financialassetsat fair value throughother comprehensiveincome

40,088 31,776 91,142 659,281

89 24

40,177 31,800 90,100 662,216

Debt securities atamortizedcost

Loans and receivablesdue from creditinstitutions Loans and receivablesdue from customers

(1,041) 2,934

Revaluation differenceson interestrate risk-hedged portfolios

5,480

0

5,480

Insurancebusiness investments

110,295

(109,536)

759 799

Currenttax assets Deferred tax assets

873

(74)

3,174

(199) (234)

2,975

Accrued incomeand other assets Non-current assetsheld for sale

29,123

28,889

2,639

- -

2,639

Deferred profit-sharing Investments in associates

-

-

4,033

3,552

7,585

Investmentproperty

783

0

783

Property, plantand equipment

4,419 1,198 4,489

(49)

4,370

Intangible assets

(242) (331)

957

Goodwill TOTAL

4,157

1,273,926

(105,014)

1,168,912

30

Risk Report Pillar III 2018