BPCE_REGISTRATION_DOCUMENT_2017

5 FINANCIAL REPORT

IFRS Consolidated Financial Statements of Groupe BPCE as at December 31, 2017

5.1.4

Statement ofchangesin equity

Share capital and additional paid-in capital

Additional paid-in capital (1)

Share capital (1)

Preference shares

Perpetual deeply subordinated notes

Retained earnings

in millions of euros

SHAREHOLDERS’ EQUITY AT JANUARY 1, 2016

17,261

3,835

1,395

33,011

Distribution

(361)

Capital increase (2)

851

453

Redemptionofdeeplysubordinated notes Interestondeeplysubordinated notes

(165)

(185)

(99)

Impactofacquisitions and disposals onnon-controlling interests Total activity arisingfromrelations with shareholders Gains and losses recognized directly in other comprehensive income (4) Net income fortheperiod Comprehensive income Other changes (3)

(147)

851

(165)

(339)

1

(1)

(100)

SHAREHOLDERS’ EQUITY AT DECEMBER 31, 2016

18,113

3,834

1,230

32,572

Allocationofnet income for 2016

3,988

First application of IFRS 9 for financialiabilitiesdesignated at fairvalue through profit or loss SHAREHOLDERS’ EQUITY AT JANUARY 1, 2017

18,113

3,834

1,230

36,560

Distribution

(354)

Capital increase (2)

775

870

Redemptionofdeeplysubordinated notes (5) Interestondeeplysubordinated notes

(547)

(505)

(75)

Impactofacquisitions and disposals onnon-controlling interests Total activity arisingfromrelations with shareholders Gains and losses recognized directly in other comprehensive income (7) Net income fortheperiod Comprehensive income Other changes (8) (6)

(226)

775

(547)

(290)

(69)

SHAREHOLDERS’ EQUITY AT DECEMBER 31, 2017

18,888

3,834

683

36,201

At December 31, 2017, “Share capital” nd “Additional paid-in capital”consistedof the share capital in the Banque Populaire banks and the Caisses d’Epargne (see Note 5.21.1). (1) Since January 1, 2017, the Banque Populaire banks and the Caisses d’Epargne have carried out capital increasesof €775 million (€851 million i 2016),resultinginan increase in“Sharecapital”and (2) “Additional paid-in capital.”Theshareholders’ equity of the local savings companies is included in“Retained earnings” after the elimination of the Caisses d’Epargne cooperative shares held. The issuance of cooperative shares since January 1,2017resulted inan increase in retainedearnings of€870 million. Including a reduction in retainedearningsof -€173 million (-€147 million attributable toequityholdersof the parent and -€26 million attributable to non-controlling interests) arising from the impactof (3) acquisitions and other movements. Thisreductionwasmainlydueto the following: -€73 million (-€52 million attributable to equityholdersof the parent and -€21 million attributable to non-controlling interests) for stock options granted tohe minority shareholders of Peter J.Solomon ● Company (PJSC); -€24 million (-€17 million attributable to equityholdersof the parent and -€7 attributable to non-controlling interests)forstockoptions granted to the minority shareholders of Ciloger; ● -€65 million (-€46 million attributable to equityholdersof the parent and -€19 million attributable to non-controlling interests) for the change in the fairvalueof stock options grantedto the minority ● shareholders of DNCAFrance; -€18 million (-€13 million attributable to equityholdersof the parent and -€5 million attributable to non-controlling interests)for theacquisition of a 40%stake inAEWEurope; ● +€26 million attributable to non-controlling interestsfor the Natixiscapitalincreasereservedforemployees. ● Including avariationin the translation difference of -€44 million (-€31 million attributable to equity holdersof the parent and-€13 million attributable to non-controlling interests) followingtherepaymentof (4) $400 million in retainedearningsby Natixis’NewYorkbranch; Redemptions of perpetual deeply subordinated notesovertheperiod amounted to: (5) €990 million for BPCE SAgroupissues;thisredemption led tothe reversal of the capitalgain recorded in equityin the amount of €443 million (see Note 5.21.2); ● €276 million for theredemptionby Natixisof aperpetual deeply subordinated note issued in 2007, which was fullysubscribed for by non-controlling interests.Thisredemption led to thereversalof the ● capitalgainrecorded inequityin the amount of €87 million (€62 million attributable to equityholdersof the parent and €25 million attributable to non-controlling interests). Including a reduction in retainedearningsof €490 million and an increase in the translation difference of€5 million (-€221 million attributable to equityholdersof the parent and -€264 million attributable to (6) non-controlling interests) arising from the impactof acquisitions andothermovements.Thisreductionwasmainlydue to the following: -€292 million (-€80 million attributable to equity holdersof the parent and-€212 million attributable to non-controlling interests) for the purchase of40%of BPCE Assurances fromminorityshareholders; ●

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Registration document 2017