BIC_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS Consolidated financial statements

Net income impact by category of instruments 22-7 Net income related to the different categories of financial assets and liabilities are as follows:

At December 31, 2017

Breakdown by category of instruments

At fair value through the income statement

Loans and receivables (including cash)

Derivative hedging instruments

Available- for-sale assets

Debt at amortized cost

Nature of impact (in thousand euros)

Held-to-maturity investments

Total

Interests income/(expense)

6,279

3,536

-

- - - - -

5,975

- - - - -

(3,232)

Revaluation at fair value

675

- - -

675

-

-

Translation

(169)

- -

(4,674) 5,243 6,544

4,504

Net depreciation

5,243

-

TOTAL

12,027

3,536

675

1,272

At December 31, 2016

Breakdown by category of instruments

At fair value through the income statement

Loans and receivables (including cash)

Derivative hedging instruments

Available- for-sale assets

Debt at amortized cost

Type of impact (in thousand euros)

Held-to-maturity investments

Total

Interests income/(expense)

5,668

2,966

-

-

5,947

-

(3,246)

Revaluation at fair value

(2,207)

 -

(2,207)

- 

- 

- 

 -

Translation

(15,109)

- -

- -

- - -

(13,044)

- - -

(2,828)

Net depreciation

(1,038)

(1,038)

-

TOTAL

(12,686)

2,966

(2,207)

(8,134)

(6,074)

SHARE-BASED PAYMENTS NOTE 23

Grant of stock option plans 23-1 All granted plans are equity-settled plans. Group stock option plans

The Group issues shares and stock options to certain employees as compensation for services provided. Equity-settled share-based payments are measured at fair value (excluding the effect of non market-based vesting conditions) at the date of grant. This fair value on the vesting date is expensed over the vesting period, based on the Group’s estimate of the shares that will eventually be vested and adjusted for the effect of non-market-based vesting conditions. Fair value is measured using the method given below. The expected life used in the model has been adjusted, based on management’s best estimates, for the effect of non-transferability, exercise restrictions and behavioral considerations. Share-based payments are booked in staff costs (see Note 4 Operating expenses, line “staff costs” and in the lines of the income statement presented by functions).

As part of a policy recommended by the Compensation and Nomination Committee, the Board of Directors decided not to award stock options with effect from 2011 and to set up a policy of free share grants. Some 500 executives receiving stock options on the basis of their position in the Company (eligible managers) received share grants subject to three-year performance conditions. To replace the stock option programs rewarding staff selected by Management, free share grants without performance conditions were introduced.

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BIC GROUP - 2017 REGISTRATION DOCUMENT