BPCE_REGISTRATION_DOCUMENT_2017

4 2017 ACTIVITIES AND FINANCIAL INFORMATION Groupe BPCE financial data

YEAR-ON-YEAR CHANGE IN ASSETS UNDER MANAGEMENT ➡ (IN BILLIONS OF EUROS)

The averagerate of return on AuMwas up 4.5% to 29.5 bp, i.e. 1.3 bp high er compared to December 31, 2016 at constant exchange rates. At December 31, 2017, AuM can be broken down as predominantly bond products (28.4%), followed by equity products (25.4%) and life insurance (21.5%). At December 31, 2017, net banking income stood at € 2,972 million, up 15% year-on-year, driven by higher fees on AuM across the regions due to the increase in average AuM and in the commission rate over the period, the rise in incentive fees charged by European asset managementcompanies,and the increase infinancial income. Expensesstood at € 2,034 million, up 10% comparedto December 31, 2016 (+12% at constant exchange rates), the increase mainly attributable to the variable pay expenses of asset management companies in Europe and the US for the most part and, to a lesser extent, to fixed payroll costs linked to the increase in average headcount and pay raises. Wealth Management At December 31, 2017, Wealth Management posted net inflows of € 1.4 billion, driven essentially by the strong performance in international wealth management and the private banking services provided by the networks. Assets under management stood at € 31.6 billion, up9.0% year-on-year. In 2017, Wealth Management NBI rose € 6 million to € 142 million (+4%) compared to 2016, representing a € 19.2 million increase (+15%) excluding the scope effect and non-recurring items. The increase in net banking income was underpinned by a high level of incentive fees in 2017, after zero fees were recorded in 2016, successfulstructuredproductscampaignsand other drivers,as well as the increase infees onassets connectedto the business.

+51.8

+23.8

-26.0

-50.2

831.5

830.8

Assets under management at 12/31/2016

Assets under management at 12/31/2017

Foreign exchange movements

Net inflow Market effect

Scope effect

The business line recorded net inflows of € 23.8 billion over the period, € 27.2 billion of which in long-term products, with positive net inflows acrossthe regions: in the US, net inflows totaled € 13.9 billion, boosted by Harris ● Associates in equity products, Loomis in bond products and, to a lesser extent,Alpha Simplex inalternativeproducts; net inflows in Europe totaled € 9.0 billion on the back of diversified ● products (NAM, H2O, DNCA and Mirova), equities (DNCA, Mirova and Dorval)and bonds (H2O and DNCA),partiallyoffset by outflows in life insurance and moneymarketproducts (NAM). At € 820.1 billion, averageassets under managementwere up 5.9% in 2017 compared to 2016 (at constant exchange rates).

4.3.6

Corporate & Investment Banking

Corporate & Investment Banking

Change

2017

2016 pf 3,270 (2,046) 1,224 62.6%

€m

%

in millions of euros

Net banking income Operating expenses

3,581 (2,194) 1,387 61.3%

311

9.5% 7.3%

(148)

Gross operatingincome

163

13.3% (1.3 pt) (41.1%) (24.5%)

Cost/incomeratio

Cost ofRisk

(115)

(195)

80 (3) 18

Share in incomeof equity-accounted associates

10 18

14

Gains or losseson otherassets

0

ns

Incomebeforetax

1,300

1,043

258

24.7%

Preliminary remark: thissectionon CIB includes Cash & Collateral Management.

In 2017, Corporate& InvestmentBankingNBI totaled € 3,581 million, up 9.5% compared to2016 at current exchange rates. Revenues from the Capital Market business line (excluding cash) totaled € 1,781 million in 2017, up 6.0% compared to 2016 at constant exchange rates. At € 1,177 million, revenues from Fixed Income, Forex, Credit and Commodities activities climbed +4.2% on 2016. The followingchanges wereobserved ineach segment:

fixed Income and Forex revenueswere down 2.4% to € 487 million, ● with Fixed Income businessup 7.1% to € 371 million thanks to very strong sales momentumin Asia in particular, while Forex business was down 24.1% to € 116 million. Weaker currency volatility in 2017, compared to 2016 which was fraught with deep uncertainty surrounding Brexit and the US elections at the end of the year, reducedflow volumes;

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Registration document 2017