BPCE - 2019 Universal Registration Document

5

FINANCIAL REPORT

CONTROLS OF ACCOUNTING AND FINANCIAL REPORTING QUALITY

Within Groupe BPCE, each entity’s Finance Control office is in charge of operational oversight and for producing such information for the entity and for the central institution. At BPCE, this role is assigned to the Group Performance Oversight division, the head of which reports to the Chief Executive Officer in charge of Group Finance and Strategy. In this area, its main duties are: coordinating oversight of the financial planning, budget and • multi-year rolling forecast process; coordinating the oversight of business performance in support • of the Retail Banking and Insurance division; coordinating solvency matters (capital adequacy and leverage • ratios, TLAC, MREL, etc.) and the Pillar II approach within the Group (stress tests, ICAAP, solvency ratios, Business Model Assessment); coordinating and monitoring the management of scarce • resources within the Group (cost-effectiveness, capital/solvency, liquidity); analyzing the performance of Groupe BPCE, its business lines • and entities, especially for the publication of each quarter’s results; steering and challenging the subsidiaries’ financial • performances to safeguard the Group’s financial ratios; carrying out benchmarking and monitoring the performance • and strategic guidelines of competitors; coordinating and steering approaches for the analysis of the • Group’s operating costs; GENERAL FRAMEWORK AND PREPARATION OF CONSOLIDATED ACCOUNTING AND FINANCIAL DATA The central institution prepares the consolidated financial statements of Groupe BPCE and its individual company financial statements. It also produces and oversees Groupe BPCE’s regulatory ratios on a consolidated basis and those of affiliated institutions in the regulatory financial statements. The central institution also ensures that Groupe BPCE’s affiliated institutions correctly apply accounting and prudential rules. To ensure the reliability of the production processes, the Finance and Strategy division uses: an appropriate body of standards distributed to all Group • entities; a single consolidated IT system that guarantees consistent • treatment and analysis; a comprehensive body of documents respecting regulatory • requirements; a standardized control mechanism, the structure of which is • described in Section 5.8.3 below. Groupe BPCE institutions publishing financial statements on a consolidated basis under IFRS are all of the Banques Populaires and Caisses d’Epargne and the Group’s main subsidiaries, essentially Natixis, Crédit Foncier and Banque Palatine.

helping prepare the Group’s strategic and financial plans; • coordinating the Finance Control process within Groupe BPCE. • INVESTOR RELATIONS The Investor Relations function is responsible for information published through presentations to financial analysts and institutional investors on the BPCE website and for registration documents and their updates filed with the AMF and also available on the BPCE website. Within BPCE, the function is performed by the Group Funding and Investor Relations division within the Group Finance division, the head of which reports to the Head of Finance and Strategy. Its duties in respect of accounting and financial information are: coordinating and preparing presentations of Groupe BPCE’s • quarterly results, financial structure and business development, to enable third parties to form an opinion on its financial strength, profitability and outlook; coordinating and preparing the presentation of regulated • financial information (registration document and its quarterly updates) filed with the AMF while including contributions from other BPCE functions; organizing relations with rating agencies by coordinating with • the other rated entities of Groupe BPCE; organizing and maintaining relationships with credit investors • likely to hold and/or acquire debt instruments (short, medium or long term) issued by BPCE or Natixis. division has designed and implemented a body of standards based on: the definition and dissemination of accounting policies for • Groupe BPCE, both for French GAAP and international (IFRS) accounting standards; a consolidation reference framework designed to ensure the • accuracy of the preparation of consolidated accounting, fiscal and prudential data. This standard also includes the analysis and interpretation of new texts issued during a given period. The policies are regularly circulated via: Group instructions to affiliated institutions that present • common accounting, tax and prudential management rules (changes in scope of consolidation, a schedule of various work to help respect deadlines, any changes to the information systems, reminder of accounting and prudential regulatory changes, etc.); Group procedures and working methods covering the • production of reporting statements; presentations at Accounting and Tax days which provide • details, including regulatory changes, that impact the accounting, prudential and fiscal work of affiliated institutions and the Group; training and activities aimed in particular at the accounting • teams of consolidated entities. A SINGLE CONSOLIDATED INFORMATION SYSTEM Data consolidation takes place quarterly based on the financial statements of each Group entity. Data from the entities are entered into a central database where consolidation procedures are then carried out.

Production processes for accounting and financial data 5.8.2

BODY OF STANDARDS

For the purposes of monitoring and correctly applying accounting and prudential rules, BPCE’s Finance and Strategy

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

www.groupebpce.com

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