RISK REPORT Capital management and capital adequacy

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 subsidiariesfor 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; prudential filters arising from Articles 32, 33, 34 and 35 of the ● CRR: gains or losses on cash flow hedges, gains on transactionsin securitized assets, own credit risk; negative amounts arising from the comparisonbetween provisions ● and expected losses (in this calculation performing loans are clearly separated from loans in default); equity interests in eligible banking, financial and insurance ● institutions, according to the rules on allowances for these holdings and thephase-in period; value adjustmentsarising from the prudentvaluationof assets and ● liabilitiesmeasuredat fair value accordingto a prudentialmethod, deductingany value adjustments.



in millions of euros

CET1 capital



Cooperativeshare issues

1,645 2621 (527)

Incomenet of proposeddividend payout

Other items 12/31/2017



in millions of euros

Non-controlling interests

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

ADDITIONAL TIER 1 (AT1) CAPITAL Additional Tier1 capital includes: subordinatedinstrumentsissued in compliancewith the restrictive ● eligibility criteria set forth by Article52 of the CRR; additional paid-in capital related to these instruments. ●

The following deductions are made: equity interests in eligible banking, financial and insurance ● institutions,accordingto the rules on allowancesfor these holdings and the phase-inperiod. AdditionalTier 1 capital predominantlyconsists of non-innovativeor innovative capital instruments, with progressive dividend yields on innovativecapital instruments.


Registration document 2017

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