BPCE - 2019 RISK REPORT Pillar III

5

CREDIT RISKS

QUANTITATIVE DISCLOSURES

CONCENTRATION TABLE 24 – CONCENTRATION BY BORROWER

12/31/2019

12/31/2018

Breakdown Gross amount/Total large risk exposures (1)

Breakdown Gross amount/Total large risk exposures (1)

Percentage of capital Gross amount/Capital (2)

Percentage of capital Gross amount/Capital (2)

Concentration by borrower

No. 1 borrower Top 10 borrowers Top 50 borrowers Top 100 borrowers

2.6%

6.0%

3.4%

7.1%

20.2% 51.8% 72.0%

45.9% 117.8% 163.7%

21.3% 54.8% 74.9%

44.2% 113.6% 155.5%

Total large risks excluding Groupe BPCE sovereign exposures (€180.2 billion of euros at 12/31/2019). (1) Groupe BPCE regulatory capital (Corep CA4 row 11 at 12/31/2019): €79.3 billion of euros. (2)

The percentage of the Top 100 borrowers held relatively steady in 2019 and did not show any particular concentration.

Provisions and impairments

CHANGE IN GROUP COST OF RISK (in millions of euros)

COST OF RISK IN BP (1) (GROUPE BPCE)

19

19

+ 5.2 %

1,367

1,299

20

174 125

312

1,028

999

● Corporate Center ● Corporate & Investment Banking ● Retail Banking & Insurance

2018 pf

2019

2019

2018 pf

At €1.4 billion, Groupe BPCE’s cost of risk increased 5.2% in 2019 compared to 2018. Average annual cost of risk (expressed in basis points versus customer exposures at the start of the period) held steady at a low 19 bp excluding non-recurring items (20 bp including non-recurring items). In Retail Banking and Insurance, cost of risk rose 2.9% year-on-year. Cost of risk averaged 19 bp for the Banques

Populaires in 2019 (down 4 points compared to 2018) versus 15 bp for the Caisses d’Epargne (down 1 point compared to 2018). At €312 million, cost of risk for the Corporate & Investment Banking division was up 79.2% compared to 2018 (including non-recurring items).

TABLE 25 – COVERAGE OF NON-PERFORMING LOANS

12/31/2019

12/31/2018

in millions of euros

Gross loan outstandings – customers and banks

798.2

763.1

o/w S3 exposures

21.7

21.5

Non-performing loans/gross loans

2.7%

2.8%

Total S3 impairments

9.9

9.7

Impairments/non-performing loans

45.9%

45.0%

(1) Excluding non-recurring items

94

RISK REPORT PILLAR III 2019 | GROUPE BPCE

www.groupebpce.com