BPCE_PILLAR_III_2017

CAPITAL MANAGEMENT AND CAPITAL ADEQUACY Composition of regulatory capital

Common Equity Tier 1 (CET1)

CORE CAPITAL AND DEDUCTIONS Common EquityTier 1 consistsof the following: share capital; ● reserves, including revaluation differences and gains or losses ● recognized directly inequity; additional paid-in capital or merger premiums; ● retained earnings; ● net income attributable to equity holders of the parent; ● unrealizedgains and losses recognized directly in equity; ● non-controllinginterests in banking or related subsidiaries for the ● share after CET1 eligibility caps. The following deductions are made: treasury sharesheld and measured at their carrying amount; ●

intangible assets, including set-up costs and goodwill; ● deferred tax assets and liabilities depending on future taxable ● income; prudentialfilters arising fromArticles 32, 33, 34 and 35 of the CRR: ● gains or losses on cash flow hedges, gains on transactions in securitized assets, own credit risk; negative amounts arising from the comparisonbetween provisions ● and expectedlosses (in this calculationperformingloans are clearly separated from loans in default); equity interests in eligible banking, financial and insurance ● institutions,accordingto the rules on allowancesfor these holdings and the phase-inperiod; value adjustmentsarising from the prudent valuationof assets and ● liabilitiesmeasured at fair value accordingto a prudentialmethod, deductingany value adjustments.

3

TABLE 3 – CHANGES IN CET1 CAPITAL ➡

CET1 capital

in millionsof euros

12/31/2016

55,303

Cooperativeshare issues

1,645 2621 (527)

Incomenet of proposeddividend payout

Other items 12/31/2017

59,042

TABLE 4 – BREAKDOWN OF NON-CONTROLLING INTERESTS (MINORITY INTERESTS) ➡

Non-controlling interests

in millionsof euros

Carryingamount (regulatory scope) – 12/31/2017

6,373 (430) (434) (336) (487) (117) 4,569

Perpetual deeply subordinated notes classified as non-controlling interests

Ineligible non-controlling interests

Proposed dividendpayout

Caps on eligible non-controlling interests

Other items

Prudentialamount – 12/31/2017

35

Risk Report Pillar III 2017