BPCE - 2018 Risk report / Pillar III

5 CREDIT RISK

Quantitative disclosures

Provisions and impairments CHANGE IN GROUP COST OF RISK (IN €M) ➡ -6.1%

COST OF RISK IN BP (GROUPE BPCE) ➡

1,384

1,299

163

175 51

115

Corporate & Investment Banking Retail Banking & Insurance Corporate Center

1,106

1,072

-1 bp

20

19

2017

2018

2018 (1)

2017

(1) Excludingnon-recurringitems

At € 1.3 billion, Groupe BPCE’s cost of risk decreased 6.1% in 2018 compared to 2017. Average annual cost of risk (expressed in basis points versus customerexposuresat the start of the period) reacheda record lowof 19 bp in 2018, down 1 bp from 2017. In Retail Banking and Insurance, cost of risk fell 3% year-on-year. Cost of risk averaged 23 bp for the Banque Populaire banks in 2018

(stable compared to 2017) versus 15 bp for the Caisses d’Epargne (also stable). For Corporate & Investment Banking, cost of risk (excluding non-recurring items) averaged 18 bp, down 2bp versus 2017.

TABLE 23 – COVERAGE OF NON-PERFORMING LOANS ➡

12/31/2018

01/01/2018

in billions of euros

Gross loan outstandings- customers andbanks

763.1 21.5 2.8%

730.1 23.2 3.2% 10.5 45.1%

o/w S3exposures

Non-performing loans/gross loans

Total S3 impairments

9.7

Impairments/non-performing loans

45.0%

96

Risk Report Pillar III 2018