BPCE_REGISTRATION_DOCUMENT_2017

3 RISK REPORT

Capital management and capital adequacy

RWA BY TYPE OF RISK AND BY BUSINESS LINE ➡

Groupe BPCE redefined its business lines in the TEC 2020 strategic plan announced on November business lines:Retail Banking and Insurance, Asset & WealthManagement,and Corporate & Investment Banking. The segment reporting informationof Groupe BPCEhas been restated accordingly for previous reporting periods.

29, 2017. The Group now has three core

Basel III phased-in

Credit risk (1)

CVA Market risks

Operational risk

Total

in millions of euros

December 31, 2016 December 31,2017 December 31,2016 December 31,2017 December 31,2016 December 31,2017 December 31,2016 December 31,2017 December 31,2016

243,704 1,014

1,094

26,696 272,508 26,266 278,458

250,837 13,747

393

962

Retail Banking and Insurance (2)

1 0

-

4,026 4,424 6,171 6,866

17,774 11,359 65,686 58,535 35,013 37,979

6,935

0

Asset & Wealth Management (2)

46,977 3,539 42,930 1,162

8,999 7,577 2,112 2,161

Corporate &InvestmentBanking

31,724 35,026

401 293

776 499

Other

336,152 4,955

12,205

37,669 390,981

TOTALRISK-WEIGHTED ASSETS DECEMBER 31,2017

335,728 1,848

10,700

38,055

386,331

Includingsettlement/deliveryrisk. (1) Segmentreportinginformationwas modifiedas of March 31,2017,with the creationof the RetailBankingand Insurancedivision,which includesthe BanquePopulaireand Caissed’Epargneretail (2) bankingnetworks,the SpecializedFinancialServicesdivisionof Natixisand the OtherNetworks(CréditFoncier,BanquePalatine,and BPCE International);the above figuresare estimates,equal to the sum of the formerCBA and SFS divisions.Additionally,as of December 31,2017, in line with the presentationof the businesslinesunder the new strategicplan “TEC2020”,the Natixis insurance businesslines (life insurance,providentinsurance,paymentprotectioninsuranceand non-life insurance),previouslyincludedin the InvestmentSolutionsdivision,are now part of the RetailBanking& Insurancedivision.The InvestmentSolutionsdivision is now the Asset& WealthManagementdivision.

3.3.5

Management of capitaladequacy

The methods used by Groupe BPCE to calculate risk-weighted assets are described in section

3.4 “Regulatory capital requirements and

risk-weighted assets”.

REGULATORY CAPITAL AND CAPITAL RATIOS

REGULATORY CAPITAL AND PHASED-IN BASEL III CAPITAL RATIOS ➡

12/31/2017 Basel III phased-in

12/31/2016 Basel III phased-in

in millions of euros

CommonEquity Tier 1 (CET1) Additional Tier 1(AT1) capital TOTALTIER 1(T1) CAPITAL

59,042

55,303

448

1,304

59,490 14,557 74,047 335,718

56,607 15,693 72,300 336,125

Tier 2 (T2)capital

TOTALREGULATORYCAPITAL

Credit riskexposure

Settlement/deliveryrisk exposure

10

27

CVA risk exposure Marketrisk exposure

1,848

4,955

10,700 38,055 386,331

12,205 37,669 390,981

Operational riskexposure TOTALRISKEXPOSURE Capital adequacy ratios CommonEquity Tier 1ratio

15.3% 15.4% 19.2%

14.1% 14.5% 18.5%

Tier 1 ratio

Total capital ratio

138

Registration document 2017