BPCE - 2018 Risk report / Pillar III

CAPITAL MANAGEMENT AND CAPITAL ADEQUACY Composition of regulatory capital

Common Equity Tier 1 (CET1)

CORE CAPITAL AND DEDUCTIONS Common EquityTier 1 consistsof: share capital; ● reserves, including revaluation differences and gains or losses ● recognized directly inequity; 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-controllinginterests in banking or related subsidiaries for the ● share after CET1 eligibility caps. The following deductions are made: treasury sharesheld and measured at their carrying amount; ●

intangible assets, including set-up costs and goodwill; ● deferredtax assets and liabilities that rely on future profitability; ● prudentialfilters arising from CRR Articles 32, 33, 34 and 35: gains ● or losses on cash flow hedges, gains on transactionsin securitized assets, own credit risk; negative amounts arising from the comparisonbetween 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,accordingto the rules on allowancesfor these holdings and the phase-inperiod; value adjustmentsarising from the prudent valuationof assets and ● liabilitiesmeasured at fair value accordingto a prudentialmethod, deductingany value adjustments.

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TABLE 3 – CHANGES IN CET1 CAPITAL ➡

CET1 capital

in millionsof euros

12/31/2017

59,042

Cooperativeshare issues

1,404 2,680 (948)

Incomenet of proposeddividend payout

Other items 12/31/2018

62,178

TABLE 4 – BREAKDOWN OF NON-CONTROLLING INTERESTS (MINORITY INTERESTS) ➡

Non-controlling interests

in millionsof euros

Carryingamount (regulatory scope) – 12/31/2018

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

Perpetualdeeply subordinated notes classified as non-controlling interests

Ineligible non-controlling interests

Proposed dividendpayout

Caps on eligible non-controlling interests

Other items

Prudentialamount – 12/31/2018

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Risk Report Pillar III 2018

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