BPCE_REGISTRATION_DOCUMENT_2017

2017 ACTIVITIES AND FINANCIAL INFORMATION Groupe BPCE financial data

LOAN OUTSTANDINGS (IN BILLIONS OF EUROS) ➡

Loan outstandings rose +7.7% in an improving economic environment The Banque Populairebanks consolidatedtheir activerole in financing the economy,with an annual increase of +7.7% in loan outstandings to € 196.1 billion at end-2017. Loan outstandingsin the individualcustomermarket were buoyed by robust growth in home loans (+9.3% to € 110.7 billion), amid low interest rates which triggered demand, but also as a result of renegotiations of existing loans and purchases of loans from competitors. Consumer loans also contributed to the rise in total outstandings, with consumer loan outstandings recording double-digitgrowth of +11.6% to € 9.2 billion at end-2017. Loan outstandings (including leases) also improved in the professional, corporate and institutional customer segments, increasing 5.1% to nearly € 75.7 billion by end-2017, driven by renewed momentum in short-term credit facilities (+13.7%) and equipment loans, which began climbing again in 2017 (+8.2% to € 55.7 billion) onthe back of dynamicnew lendingactivity.

7.7%

196.1

182.2

26.4

25.5

59.0

55.4

110.7

101.3

Equipment loans Other

Home loans

4

12/31/2016

12/31/2017

Financial results The Banque Populairenetwork’s net banking income totaled € 6.3 billion in2017, relatively stablecompared to2016.

Change

2017

2016

€m

%

in millionsof euros

Net interest income

3,804 2,609 (129) 6,284

3,910 2,453

(106)

(2.7%)

Fees and commissions

156 (61) (11)

6.4%

Other incomeand expenses NET BANKING INCOME

(68)

89.7% (0.2%)

6,295

Net interest income (1) came to € 3.8 billion, down - € 106 million year-on-year. Positive volume effects were not strong enough to offset the erosion in the intermediationmargin, with the interest rate on loans declining more thanthe rateon savings. Fees and commissions made a substantial gain of +6.4% (+ € 156 million) compared to 2016, driven by all categories. Fees on loans increased by + € 73 million, largely due to prepayment penalty fees (+ € 30 million,+25.8% versus 2016), which neverthelessrecorded a slowdownin the secondhalf. Fees on off-balancesheet depositsand savings rose + € 56 million or +16.9%, +10.7% of which was attributableto life insurance business. Fees on payment instruments shot up considerably (+ € 38 million, +10.8%) as the banking penetration rate increased. Account management fees improved (+ € 20 million, +1.9%)with the expansionof the customerbase. Other income and expenses fell - € 61 million, in line with the development of Prépar Vie (BRED’s life insurance business).

Operating expenses increased slightly compared to 2016 (- € 55 million, +1.3%) to - € 4.4 billion. Restated for transformation and restructuring costs, they inched up +0.7% on 2016 tp € 4.3 billion. Transformation costs stemmed primarily from the creationof BanquePopulaireGrand Ouest from the merger of Banque PopulaireAtlantique, Banque Populaire Ouest and their subsidiaries. Restated for non-recurringitems, gross operating income slid -0.1% to € 2 billion and the cost/incomeratio increased 0.2 pt to 68.0% in fiscal year2017. Cost of risk declined-11.6%on 2016 to - € 0.4 billion. Divided by loan outstandings,it stood at 23 bp in 2017, down -4.8 bp compared to 2016. The Banque Populaire banks contributed € 1.4 billion to the Retail Banking and Insurance division’s income before tax, down -3.6% relative to 2016.

Fees and commissions on centralized savings have been restated for net interest income and included in fees and commissions income. (1)

221

Registration document 2017