BPCE_REGISTRATION_DOCUMENT_2017

RISK REPORT Credit risk

PROVISIONS AND IMPAIRMENTS

CHANGE IN GROUP COST OF RISK (IN €M) ➡ -2.7%

COST OF RISK IN BP (GROUPE BPCE) ➡

1,423

1,384

8

195

115 163

3

1,220

Corporate & Investment Banking Retail Banking & Insurance Corporate Center

1,106

-2 bp

22

20

12/31/2016

12/31/2017

12/31/2017

12/31/2016

At € 1.4 billion in 2017, Groupe BPCE’s cost of risk decreased slightly (by 2.7%) compared to 2016. Average annual cost of risk (expressed in basis points versus customer outstandings at the start of the period) reached arecord lowof 20 bp in 2017, down 2 bp from2016. In Retail Banking and Insurance, cost of risk fell by more than 9% year-on-year.The Banque Populaire banks posted an average annual

cost of risk of 23 bp (down 5 bp comparedto 2016) versus 15 bp for the Caisses d’Epargne (down 3 bp from 2016). This change for both networks reflected adecline inindividualprovisions. For Corporate & Investment Banking, average annual cost of risk stood at 20 bp, down 14 bp versus 2016, which included an effort to build provisionson the Oil & Gas sector.

COVERAGE OF NON-PERFORMING LOANS ➡

in millions of euros

12/31/2017

12/31/2016

12/31/2015

Gross customerloan outstandings

704,905 22,918

679,176 23,427

629,775 23,098

o/w non-performing loans

Non-performing loans/gross loans

3.3%

3.4%

3.7%

Impairments

11,777 51.4%

12,278 52.4%

12,310 53.3%

Impairments/non-performing loans

NON-IMPAIRED LOANS SHOWING PAST DUE BALANCES Assets with past due payments are performing financial assets for which apaymentincidenthas beenrecorded. For example: a debt instrument is considered past due if the bond issuer is no ● longer making interest payments; a loan is consideredpast due if a payment or installmenthas been ● missed and recorded as such on the books;

a current account overdraft carried in “Loans and advances” is ● considered past due if the overdraft period or authorized limit has been exceededat the balance sheet date. The amountsdisclosedin the statementbelowdo not includepast due paymentsresultingfromthe timedelaybetweenthe settlementdateand the recognition date. Past due loans and receivables (past due principal and accrued interest in the case of loans and total overdrawnbalance in the case of current accounts)can be broken down by due date as follows:

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Registration document 2017

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