BPCE_REGISTRATION_DOCUMENT_2017

5 FINANCIAL REPORT

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

Acquisition of Investors Mutual Limited (IML) by Natixis In 2017, Natixis – via one of its subsidiaries – acquired a majority stake (51.9%) in the Australian investment management company InvestorsMutual Limited (IML). This acquisition will allow Natixis to enter the individual customer and retirementsavings markets and enhance its distributionplatform in Australia. The company’s managementholds shares alongside Natixis and exit provisions are in place which, if exercised, would allow Natixis to acquire all theremainingcapital. Acquisition of 40% of BPCE Assurances from Macif and Maif by Natixis Natixis, via Natixis Assurances, finalized the acquisition of 40% of BPCE Assurances from Macif (25%) and Maif (15%). Following this transaction, Natixis Assurances is the sole shareholder of BPCE Assurances. Disposal of Banque des Mascareignes On December 15, 2017, a consortium comprising Banque Centrale Populaire (BCP Maroc) and Sipromad group, acting jointly and severally, signed a firm and definitive agreement with BPCE International et Outre-Mer to purchase all the capital and voting rights inBanque des Mascareignes. A capital loss was recorded on the removal of this bank from the consolidation scope in the amount of € 20 million at December 31, 2017 (see Note6.8). 1.4 On February 20, 2018, the Group announced the signing of an agreement on the disposal of 100% of the capital in Banque des Mascareignes to Banque Centrale Populaire and Sipromadgroups. The agreement covers the sale by BPCE Internationalof Banque des Mascareignes, a bank located in Mauritius, and its subsidiary in Madagascar (Banque des Mascareignes Madagascar), to the Moroccan cooperative group Banque Centrale Populaire and its strategic partner in the region, MadagascanconglomerateSipromad, a long-standingshareholder inthe Madagascan subsidiary. The completion of the sale is subject to the usual conditions precedent for this type of transaction, including in particular the approval of the regulatory authorities in Mauritius, Madagascar and Morocco. Itshouldbe finalized by the end of the first-half2018. This sale is part of the Group’s strategy of refocusing on priority development sectors and regions. POST-BALANCE SHEET EVENTS

1.3

SIGNIFICANT EVENTS

Banque Populaire bank and Caisse d’Epargne mergers After the Extraordinary Shareholders’ Meetings of cooperative shareholders held on April 29, 2017, Caisse d’Epargne Picardie and Caisse d’Epargne Nord France Europe merged, giving rise to Caisse d’Epargne Hauts de France. On December 5, 2017, the cooperative shareholders of Banque Populaire Atlantique, Banque Populaire de l’Ouest, Crédit Maritime Atlantique and Crédit Maritime Bretagne-Normandie voted in Extraordinary Shareholders’ Meetings to approve the merger of all four entities to createBanque PopulaireGrand Ouest. Finalization of Natixis’ acquisition of PayPlug In 2017, Natixis finalized the acquisition of PayPlug, a fintech specializing inonline paymentsolutions for SMEs and VSEs. Following thecapitalincreaseconducted immediately aftertheacquisition, Natixis held 78.54%of PayPlug’s capital atDecember 31, 2017. The company’s managementholds shares alongside Natixis and exit provisions are in place which, if exercised, would allow Natixis to acquire all theremainingcapital. Acquisition of Dalenys by Natixis In the fourth quarter of 2017, Natixis – via one of its subsidiaries– finalized the acquisitionof 54.3% of Dalenys (representing61.3% of voting rights) fromDalenys’main shareholders. Following this acquisition,a mandatory public bid was made for the outstanding Dalenys shares (the initial acceptance period ran from December11, 2017 toJanuary 22, 2018). Dalenys providespaymentsolutionsfor retailers ande-commerce. Acquisition of Althelia Ecosphère by Natixis Natixis – via one of its subsidiaries– finalizedthe acquisitionof 51% of Althelia Ecosphère, an asset managementcompany specialized in impact investingin natural capital (global warmingand protectionof local regions, biodiversity, ground resources and maritime r sources).

Note 2

Applicable accounting standards and comparability

applicableat that date, therebyexcludingcertain provisionsof IAS

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2.1

REGULATORY FRAMEWORK

relating to hedge accounting (1) .

In accordancewith EC regulationNo. 1606/2002of July 19, 2002 on the application of international accounting standards, the Group prepared its consolidated financial statements for the fiscal year ended December 31, 2017 under International Financial Reporting Standards (IFRS) as adopted for use by the European Union and

STANDARDS 2.2 The standards and interpretations used and detailed in the annual financialstatementsas at December 31, 2016 were complementedby standards, amendments and interpretations whose application is mandatory for reporting periodstartingfrom January1, 2017.

These standards are available on the website of the European Commission at the following URL: https://ec.europa.eu/info/business-economy-euro/company-reporting-and-auditing/ (1) company-reporting/financial-reporting_fr

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Registration document 2017