BPCE - 2019 Universal Registration Document

6

RISK REPORT

CAPITAL MANAGEMENT AND CAPITAL ADEQUACY

Composition of regulatory capital 6.4.3

REGULATORY CAPITAL Regulatory capital is determined in accordance with regulation No. 575/2013 of the European Parliament and of the Council of June 26, 2013 on prudential requirements for credit institutions and investment firms.

It is divided into three categories: Common Equity Tier 1, Additional Tier 1 capital and Tier 2 capital. Deductions are made from these categories. These categories are broken down according to decreasing degrees of solidity and stability, duration and degree of subordination.

PHASED-IN REGULATORY CAPITAL

12/31/2019 Basel III phased-in (1)

12/31/2018 Basel III phased-in (1)

in millions of euros

Share capital and additional paid-in capital

26,740 38,981

23,513 39,052

Retained earnings

Income income for the period

3,030 1,168

3,026

Gains and losses recognized directly in other comprehensive income Consolidated equity attributable to equity holders of the parent Perpetual deeply subordinated notes classified as other comprehensive income

613

69,919

66,204

-

(683)

Consolidated equity attributable to equity holders of the parent excluding perpetual deeply subordinated notes classified as other comprehensive income

69,919

65,521

Non-controlling interests o/w prudential filters •

5,059

4,859

-

-

Deductions

(5,768) (4,278)

(5,098) (4,138)

o/w goodwill (2) •

(823) (667)

(960)

o/w intangible assets (2) •

o/w irrevocable payment commitments •

-

Prudential restatements

(3,217)

(3,104)

o/w shortfall of credit risk adjustments to expected losses •

(387) (561)

(252) (545)

o/w prudent valuation • Common Equity Tier 1 (3) Additional Tier 1 capital

65,992

62,178

23

344

Tier 1 capital Tier 2 capital

66,015 13,309 79,325

62,522 14,360 76,882

TOTAL REGULATORY CAPITAL

Phased-in: after taking phase-in measures into account. (1) Including non-current assets and entities held for sale classified as held for sale. (2) Common Equity Tier 1 included €25,674 million in cooperative shares (after taking allowances into account) at December 31, 2019 and €24,128 million at December 31, 2018. (3)

A detailed breakdown of prudential capital by accounting classification, as required by Implementing regulation No. 1423/2013, is published at the following address: https://groupebpce.com/en/investors/results-and-publications/pillar-iii A detailed breakdown of debt instruments recognized as AT1 and T2 capital, as required by implementing regulation No. 1423/2013, is published at the following address: https://groupebpce.com/en/investors/results-and-publications/pillar-iii

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

www.groupebpce.com