BPCE - Risk Report - Pillar III 2020

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CAPITAL MANAGEMENT AND CAPITAL ADEQUACY

COMPOSITION OF REGULATORY CAPITAL

Composition of regulatory capital 4.3

Regulatory capital

Regulatory capital is determined in accordance with regulation No. 575/2013 of the European Parliament and of the Council of June 26, 2013 on prudential requirements for credit institutions and investment firms.

It is divided into three categories: Common Equity Tier 1, Additional Tier 1 capital and Tier 2 capital. Deductions are made from these categories. These categories are broken down according to decreasing degrees of solidity and stability, duration and degree of subordination.

BPCE01 – PHASED-IN REGULATORY CAPITAL

12/31/2020 Basel III phased-in (1)

12/31/2019 Basel III phased-in (1)

in millions of euros

Share capital and additional paid-in capital

27,481 42,540

26,740 38,981

Retained earnings Income for the period

1,610 1,042

3,030 1,168

Gains and losses recognized directly in other comprehensive income Consolidated equity attributable to equity holders of the parent Perpetual deeply subordinated notes classified as other comprehensive income

72,672

69,918

-

-

Consolidated equity attributable to equity holders of the parent excluding perpetual deeply subordinated notes classified as other comprehensive income

72,672

69,918

Non-controlling interests o/w prudential filters •

4,229

5,059

-

-

Deductions

(4,835) (4,095)

(5,768) (4,278)

o/w goodwill (2) •

o/w intangible assets (2) •

(740)

(823) (667)

o/w irrevocable payment commitments •

-

Prudential restatements

(3,097)

(3,217)

o/w shortfall of credit risk adjustments to expected losses •

(391) (512)

(387) (561)

o/w prudent valuation • Common Equity Tier 1 (3) Additional Tier 1 capital

68,969

65,992

8

23

Tier 1 capital Tier 2 capital

68,977

66,015 13,309 79,325

9,257

TOTAL REGULATORY CAPITAL

78,234

Phased-in: after taking phase-in arrangements into account. (1) Including non-current assets and entities held for sale classified as held for sale. (2) Common Equity Tier 1 included €26,851 million in cooperative shares (after taking allowances into account) on December 31, 2020 and €25,674 million on December 31, 2019. (3)

A detailed breakdown of prudential capital by accounting classification, as required by Implementing regulation No. 1423/2013, is published at the following address: https://groupebpce.com/en/investors/results-and-publications/pillar-iii A detailed breakdown of debt instruments recognized as AT1 and T2 capital, as required by implementing regulation No. 1423/2013, is published at the following address: https://groupebpce.com/en/investors/results-and-publications/pillar-iii

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RISK REPORT PILLAR III 2020 | GROUPE BPCE

www.groupebpce.com