BPCE_REGISTRATION_DOCUMENT_2017

4 2017 ACTIVITIES AND FINANCIAL INFORMATION Groupe BPCE financial data

BREAKDOWN OF 2017 SFS NET BANKING INCOME ➡ BY BUSINESS LINE

CHANGE IN LIFE INSURANCE ASSETS UNDER ➡ MANAGEMENT (IN BILLIONS OF EUROS)

Securities 7%

Factoring 11%

+1.0

+2.9

+3.0

Sureties & Financial Guarantees 14%

Payments 24%

Employee savings plans 7%

Lease financing 16%

54.7

47.8

Coficiné 2%

Consumer Financing 19%

Assets under management at 12/31/2016

Assets under management at 12/31/2017

Net inflow in €

Unit-linked policy net inflow

Market effect and other

Net banking income totaled € 1,382 million in 2017, up 2%. Specialized Financing revenues picked up by 3%. Sureties and Guarantees posted 5% NBI growth. Consumer Finance and Leasing gained 3% and 2% in NBI respectively,year-on-year.Revenues from the Payments business were up 2%, led by the consistently strong Electronic Banking and Service Vouchers business lines. Revenues from Financial Services excluding Payments were up 1%, with net banking incomeon Employee Benefits Planning up 3%. At € 939 million, SFS expenses were up 6% compared to 2016, a result largely owed to scope changes for the Payments and Leasing business lines. Overall, gross operating income shed 5% to € 443 million. At € 73 million, cost of risk increased mainly from collective provisions. INSURANCE In terms of business levels, sales momentum in all the Insurance segments wasparticularlydynamicin 2017. With € 9.5 billion in direct business premiums, life insurance inflows were up 59% comparedto 2016, thanks to the roll-outon the market of life insurance and Provident Insurance on the Caisse d’Epargne network,2017 being the first full year of distribution.In 2017 inflows were more directed at unit-linkedassets, driven by the launch of the new Sélectiz range. Premiums on unit-linked assets totaled € 3.3 billion (+160%) and made up 35% of total gross inflows, up 14 points year-on-year and 7 points higher than the market rate (late-November data).

Premiums on Provident Insurance and Payment Protection Insurance ( € 820 million) continued to climb at a steady pace (+8%). In a competitive and evolving market dictated by digital innovations, non-life insurance grew at a rapid rate, stimulated by the positive impacts of the Hamon Act and the increase in real estate financing on the networks. The Banque Populaire banks and Caisse d’Epargne sold 1.3 million non-life insurance policies in 2017, an increase of 2.4% comparedto 2016, buoyed by strong momentumin automotive (+3%), multi-riskhome (+6%) and personalaccidentpolicies (+15%). The number of policies under managementrose 5% to 5.6 million for the Banque Populaire and Caisse d’Epargne networks. Earned premiums increased by8% to € 1,386 million. Net banking income in the Insurance business lines totaled € 734 million,up 12.0% compared to 2016, resulting from: strong net banking income growth in life insurance, propelled by ● considerablegrowth in assets under management(up 15%), driven in turn by the roll-outof the offer on the Caisse d’Epargnenetwork. Despite the persistently low interest rate environment in 2017, lower bond yields were offset through the diversification of investmentsources (private placementsor the direct funding of the economy); the stability of net banking income in Provident and Payment ● Protection insurance, as growth was offset by a less favorable claims expensecompared to2016; growth in Non-Life NBI (+13%), attributable to lower costs for ● extreme weather events in 2017 compared to 2016, an improvementin the past claims expense and fewer large claims in 2017 versus 2016. The combined ratio stood at 92.1%, a slight improvement on2016.

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Registration document 2017