BPCE_REGISTRATION_DOCUMENT_2017

4 2017 ACTIVITIES AND FINANCIAL INFORMATION Significant events of 2017

This new ecosystem also relies on 40 digital champions responsible for steering the transformationwithin each group institution. More than 500 employees are currently working towards this goal, with another 500 to come by 2020. New digital services designed for customers of the Groupe BPCE networks were launched throughouthe year: after staking its claim as the first banking group in France to offer ● Apple Pay in 2016, Groupe BPCE rolled out the Paylib contactless payment solution for customersof the Banque Populairebanks and Caisses d’Epargne with Android smartphones; every month since July 2017, new services have been providedwith ● the aim of improving customer independence and everyday management of banking transactions on their mobile phones (transactionsearches, bank account details forms, managementof forgottenpasswordsor lost identifiers,general availabilityof Touch ID, etc.); Banque Populaire customers can now apply for consumer loans ● online in a simplified, modernized process including the electronic signatureof the loan agreement; a customer feedback system was set up for the purpose of ● detecting problems, resolving complaints, continuously improving our services and determining our digital NetPromoter Score; Banque Populaire,Caisse d’Epargneand Natixis Car Lease launched ● the MyCarLease website, an innovative digital operating lease solution giving professionalcustomersthe choice of any car model on the market, and Lookar, an innovative vehiclerecognitionapp; Banque Populaire and Caisse d’Epargne rolled out fast and easy ● all-digital employee savingsolutions; Banque Populaire launched Money Friends, a money transfer app ● (Android & iOS) designed to monitor and settle debts among friends; Natixis Assurances brought out two full-digital innovations to ● improve insurance claim management: WeProov and Oculus Rift. WeProov is a self-care claim submission app for customers of the Caisse d’Epargneand Banque Populairenetworks,while Oculus Rift helps them keep track of the different steps in the claim managementprocess. For its partners,GroupeBPCE was the first commercialbank in France to adopt a transparencypolicy under which partners are given open access to structured data to use as needed. Nearly 60 sets of data were already available at end-December. The Group has fully embraced the open banking approach and is preparing to launch an API (1) portal in 2018. Working alongside over 500 start-ups, Groupe BPCE also launched a fast and easy contractualprocedureto work more efficientlywith this ecosystem. Known as “Start-up PASS”, this procedure simplifies relations between start-ups and Groupe BPCE by speeding up the initiation of the operational phase while respecting the start-up’s intellectual property and facilitating cooperation on a daily basis. Lastly, Groupe BPCE also made a subscriptioncommitmentto Truffle Financial Innovation Fund, an institutionalfund whose purpose is to create, support and finance 10-15 future Fintech and Insurtech leaders inFrance and Europe. The digital transformation has also made day-to-day operations easier for all Groupe BPCE employees. For example, an ambitious

digital acclimation program (B’digit) and an internal social network (Yammer),alreadyboastingover 40,000members,were both set up in 2017. Groupe BPCE further consolidatedits positions in Retail Banking and Insurance activities as well, with loan outstandings and on-balance sheet deposits and savings climbing 5.1% and 4.4%, respectively,in 2017. The BanquePopulaireand Caisse d’Epargnenetworkscontinued to expand their customer bases, gaining approximately250,000 new principal active customers and increasing their product and service ownership rate. Relations progressed between Natixis’ core business lines and the customers of the Banque Populaire banks and Caisses d’Epargne:at December 31, 2017, revenuesynergiessince the start of 2014 hit € 810 million, globally in line with the target set in the “Another way to grow” strategic plan. The Insurance business, a key componentof the Group’s strategy,kept the momentumgoing strong in 2017, generatingNBI growth of 12% year-on-year.Life insurance AuM amounted to € 54.7 billion (excluding the reinsurance treaty with CNP), up +14%. Net inflows came out at € 5.9 billion, with 49% consisting of unit-linked assets. The non-life insurance portfolio expanded 8.5% and the Group now manages more than 5.7 million policies. The Natixis business lines delivered excellent performances. Asset managementprofit margins improved,thanks in large part to positive net inflows of € 24 billion, predominantlyconcentratedin long-term and value-addedproducts. Asset & Wealth Managementgenerateda 14.5% gain in net banking income. After an excellent first half, Corporate& InvestmentBankingrevenuesended the year on a strong note, climbing over 9.5% in 2017, buoyed by very strong showings from the GlobalMarkets,InvestmentBanking and M&Aactivities. Groupe BPCE forged ahead with its bancassurancestrategy in 2017. Natixis Assurances became the sole shareholder of BPCE Assurances after buying a total stake of 40% in the company from Macif (25%) and Maif (15%). This purchase served to consolidate the strategy of integrating the insurance value chain by establishing a single Insurance division at Natixis focused on achieving Groupe BPCE’s ambitions inthis sector. Groupe BPCE continued optimizing its structure with the sale of S-money and its subsidiaries to Natixis Payment Holding and BPCE SA’s acquisition of Crédit Foncier’s indirect equity interest in MFC Prou-Investissements, giving it a49% stakein the company. In the Payments business line, Groupe BPCE has now centered all its expertise around Natixis Payment Solutions to gain efficiency and competitiveness:Natixis Intertitres (securities services), S-money, Le Pot Commun (online money pot), E-Cotiz (payments to associations) and Depopass (secure peer-to-peer payments). This new structure, designedto promotecommercialdevelopmentand priority objectives, combines a commercial focus, a technological approach and an entrepreneurial drive. At the same time, an external growth policy was enacted, with several start-ups brought into the fold to expand the rangeof retailer services: PayPlugprovidessmall retailersand VSEs with an online and mobile ● debit card payment system without requiring a special payment terminal; Dalenys is strengthening Natixis’ penetration of the European ● market for paymentsolutions targeting major stores and e-retailers.

Application Programming Interface. (1)

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Registration document 2017