BPCE - 2018 Risk report / Pillar III

3 CAPITAL MANAGEMENT AND CAPITAL ADEQUACY Composition of regulatory capital

Composition of regulatory capital 3.3

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 categoriesare broken down accordingto decreasingdegrees of solidity and stability, duration and degree of subordination.

TABLE 2 – PHASED-IN REGULATORY CAPITAL ➡

12/31/2018 Basel III phased-in  (1)

12/31/2017 Basel III phased-in  (1)

in millionsof euros

Share capital andadditional paid-incapital

23,513 39,052

22,722 36,894

Retained earnings

Income

3,026

3,024 1,400

Gains and lossesrecognizeddirectly in other comprehensiveincome Consolidatedequity attributableto equityholdersof the parent Perpetualdeeply subordinated notes classified as othercomprehensive income Consolidatedequity attributableto equity holdersof the parent excluding perpetual deeply subordinated notes classified as other comprehensive income

613

66,204

64,039

(683)

(683)

65,521

63,356

Non-controllinginterests o/w prudentialfilters -

4,859

4,568

-

229

Deductions

(5,098) (4,138)

(4,912) (3,962)

- -

o/w goodwill  (2)

o/w intangible assets  (2)

(960)

(951)

Prudential restatements

(3,104)

(3,970) (1,285)

o/w shortfall ofcredit riskadjustmentsto expectedlosses -

(252) (545)

o/w prudentvaluation - Common EquityTier 1  (3) Additional Tier 1capital

(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

TOTALREGULATORYCAPITAL

Phased-in:after takingphase-inmeasuresinto account. (1) Includingnon-currentassetsand entitiesheld for sale classifiedas held for sale. (2) CommonEquityTier 1 included€24,128 millionin cooperativeshares (after takingallowancesinto account)at December 31,2018and €22,477 millionin 2017. (3)

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Risk Report Pillar III 2018