BPCE - 2018 Risk report / Pillar III

3 CAPITAL MANAGEMENT AND CAPITAL ADEQUACY Composition of regulatory capital

Additional Tier 1(AT1) capital

Additional Tier1 capital includes: subordinatedinstrumentsissued in compliancewith the restrictive ● eligibility criteria set forth by CRR Article 52; additional paid-in capital related to these instruments. ●

The following deductions are made: equity interests in eligible banking, financial and insurance ● institutions,accordingto the rules on allowancesfor these holdings and the phase-inperiod.

TABLE 5 – CHANGES IN AT1 CAPITAL ➡

AT1 capital

in millionsof euros 12/31/2017 Redemptions

448

(266)

Issues

0

Foreign exchange effect Phase-inadjustments

31

130 344

12/31/2018

Tier 2Capital

Tier 2 capitalconsistsof: subordinatedinstrumentsissued in compliancewith the restrictive ●

The following deductions are made: equity interests in eligible banking, financial and insurance ● institutions,accordingto the rules on allowancesfor these holdings and the phase-inperiod.

eligibility criteria set forth by CRR Article 63; additional paid-in capital related to Tier 2 items; ●

the amount arising from provisionsin excess of expected losses (in ● this calculation,performing loans are clearly separated from loans in default).

TABLE 6 – CHANGES IN TIER 2 CAPITAL ➡

Tier 2 capital

in millionsof euros

12/31/2017

14,557

Redemptionof subordinatednotes

(9)

Prudential haircut

(387)

New subordinated note issues

0

Phase-indeductions and adjustments

(152)

Foreign exchange effect

351

12/31/2018

14,360

34

Risk Report Pillar III 2018