BPCE - 2019 RISK REPORT Pillar III

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CAPITAL MANAGEMENT AND CAPITAL ADEQUACY

COMPOSITION OF REGULATORY CAPITAL

Additional Tier 1 (AT1) capital

Additional Tier 1 capital includes: subordinated instruments issued in compliance with the • restrictive eligibility criteria set forth by CRR Article 52; additional paid-in capital related to these instruments. •

Deductions comprise equity interests in eligible banking, financial and insurance institutions, according to the rules on allowances for these holdings.

TABLE 5 – CHANGES IN AT1 CAPITAL

AT1 capital

in millions of euros

12/31/2018 Redemptions

344

(344)

Issues

-

Foreign exchange effect Phase-in adjustments

23

-

12/31/2019

23

Tier 2 capital

Tier 2 capital consists of: subordinated instruments issued in compliance with the • restrictive eligibility criteria set forth by CRR Article 63; additional paid-in capital related to Tier 2 items; •

the amount arising from provisions in excess of expected • losses (in this calculation, performing loans are clearly separated from loans in default). Deductions comprise equity interests in eligible banking, financial and insurance institutions, according to the rules on allowances for these holdings.

TABLE 6 – CHANGES IN TIER 2 CAPITAL

Tier 2 capital (T2)

in millions of euros

12/31/2018

14,360

Redemption of subordinated notes

(80)

Prudential haircut

(616)

New subordinated note issues

-

Phase-in deductions and adjustments

(373)

Foreign exchange effect

18

12/31/2019

13,309

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RISK REPORT PILLAR III 2019 | GROUPE BPCE

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