BPCE_REGISTRATION_DOCUMENT_2017

3 RISK REPORT

Capital management and capital adequacy

3.3.3

Composition of regulatory capital

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 institutionsand 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 categoriesare broken down accordingto decreasingdegrees of solidity and stability, duration and degree of subordination.

PHASED-IN REGULATORY CAPITAL ➡

12/31/2017 Basel III phased-in (1)

12/31/2016 Basel III phased in (1)

in millions of euros

Share capital andadditionalpaid-incapital

22,722 36,894

21,947 33,796

Retained earnings

Income

3,024 1,400

3,987 1,726

Gains and lossesrecognizeddirectly in equity

Consolidatedequity attributableto equityholdersof the parent

64,039

61,456 (1,629)

Perpetualdeeply subordinated notes classified as equity

(683)

Consolidated equity attributableto equityholdersof the parent excluding perpetualdeeplysubordinatednotes classified as equity

63,356

59,827

Non-controllinginterests o/w prudentialfilters -

4,569

4,550

229

461

Deductions

(4,912) (3,962)

(4,719) (3,875)

o/w goodwill -

o/w intangible assets - Prudential restatements

(951)

(844)

(3,971) (1,285)

(4,355) (1,232)

o/w shortfall ofcredit riskadjustmentsto expectedlosses -

o/w prudentvaluation - Common EquityTier 1 (2) Additional Tier 1capital

(409)

(414)

59,042

55,303

448

1,304

Tier 1 capital Tier 2 capital

59,490 14,557 74,047

56,607 15,693 72,300

TOTALREGULATORYCAPITAL

Phased-in:after takingphase-inmeasuresinto account. (1) CommonEquityTier 1 included€22,477 millionin cooperativesharesat December 31,2017and €21,036 millionat December 31,2016. (2)

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Registration document 2017