BPCE_PILLAR_III_2017

LIQUIDITY, INTEREST RATE AND FOREIGN EXCHANGE RISKS Quantitative disclosures

Accrued interest not yet due is shown in the “Less than 1 column. The amounts shown are contractual amounts excluding projected interest. Funding strategy and conditions in 2017 One of the Group’s priorities in terms of medium- and long-term funding in the markets is to ensure that sources of funding are properly diversified, in terms of types of investors, vehicles, geographic regionsand currencies. Another priority is extending the average maturity of its liabilities to help strengthen Groupe BPCE’s funding structure. In recent years, Groupe BPCE has also implementeda policy designed to control the percentage of encumbered assets so as to protect its creditors holding unsecured debt. As a result, MLT funding in the secured category is limited to about one-third of total MLT funding raised. Under the 2017 wholesale medium- and long-term funding plan, Groupe BPCE raised a total of € 23 billion, including an issue at the end of 2016 to pre-fundits 2017 funding requirements;public issues made up 55% of this amount and private placements 45%. UNSECURED BOND SEGMENT ➡ month”

The technical provisionsof insurance companies,which, for the most part are equivalent to demand deposits, are not shown in the Table above.

The breakdownby currencyof unsecuredissues is a good indicatorof the diversity of the Group’s medium- and long-termfunding sources. In all, 52% of these issues were in currenciesother than the euro; the two largestwere the USD (36%) and the JPY (10%). The breakdown of these 2017 issues by currency is as follows: DIVERSIFICATION OF INVESTOR BASE ➡

CHF 1% DKK 1% GBP 2%

JPY 10%

EUR 48%

USD 36%

Senior non preferred €4 bn

52% in currencies other than the euro

Vanilla private placements €1.6 bn

Public issues €2.8 bn

The average maturity at issue for Groupe BPCE as a whole was 7.1 years in 2017 compared with an average maturity of 7.2 years in 2016. The unsecured bondsegment (senior preferred+ senior non-preferred) accounted for 64% ( € 14.7 billion) of funds raised and the covered bond segment 36% ( € 8.4 billion). Groupe BPCE therefore met the guidance it gave the market in early 2017 (75% unsecuredand 25% covered bond). The vast majority of medium- and long-term funding raised in 2017 was at a fixed rate. In general, the fixed rate is swappedto a floating rate in accordance with the Group’s interest rate risk management policy.

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Structured private placements €6.2 bn

COVERED BOND SEGMENT ➡

BPCE SFH €2.8 bn

Compagnie de Financement Foncier €5.3 bn

Natixis Pfandbriefbank €0.3 bn

In 2017, funds raised in the unsecured bond segment stood at € 14.7 billion, of which € 10.7 billion in senior preferred debt and € 4 billion in senior non-preferreddebt; funds raised in the covered bond segment amounted to € 8.4 billion.

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Risk Report Pillar III 2017