BPCE_REGISTRATION_DOCUMENT_2017

2017 ACTIVITIES AND FINANCIAL INFORMATION Groupe BPCE financial data

Operating expenses were up 16.2% to € 439 million, as the business developed and the strategic ambitions fell into place: in the Caisses d’Epargne,the deployment of the new life insurance range, the launch of strategic non-life insurance projects (overhaul of the claims information system) and the amortization of the Assurément#2016, Impulse and Paris Digitaux programs. Gross operating income rose 6.4% to € 295 million.

At € 451 million, operating expenses decreased 8.7% year-on-year, illustratingthe Group’songoingcost managementefforts, particularly aimed at bringing downpayrollcosts. Cost of risk came to € 81 million, representing a decline of 32.4% compared to 2016, primarily thanks to the improvement in risk associated with generations of loans recorded on the balance sheet since 2011; it should be noted that this improvementalso includes a positive effect on the revaluation of guarantees and the impact of reduced cost of risk stemming from the sale of the non-performing loan portfolioin July 2017. BPCE International and Banque Palatine For BPCE International(BPCE I), gross operating income declined by -12.9% versus 2016 to € 72 million, reflecting the slowdown in international business and non-recurringexpenses generated by the disposal of Banque des Mascareignes,BM Madagascarand Sky Elite Tour. Its contribution to the division’s net income was - € 67 million versus - € 4 million in 2016, due to the heavily adverse impact of higher cost of risk for the internationalsubsidiariesand the projected loss on the sale of Banque des Mascareignes shares (- € 19 million). Lastly, Banque Palatine’s contribution to the division’s net income was stable at € 49 million, attributableto a slight +0.3% rise in NBI (+ € 1 million)and a +14.3%improvementin cost of risk (+ € 7 million), offsetting the +3.2% upturn in operatingexpenses(- € 6 million).

OTHER NETWORKS

Crédit Foncier group The real estate market posted very solid growth in 2017, with some indicators even pointing to a record year. This performance was attributable to the residential real estate market (first-time home buying and rental investments) and the commercial real estate market (offices, stores, etc.). In such a fast-growing market, Crédit Foncier delivered very robust sales performances across all business lines and all customer bases (individual customers, investors, real estate professionalsand local authorities).Crédit Foncier’s new loans totaled € 11.8 billion in 2017, including € 8.8 billion in the individual customer segment. Crédit Foncier group recorded a 31.0% year-on-year drop in net banking income, due in large part to prepaymentsbrought on by low interest rates.

4

4.3.5

Asset & Wealth Management

Asset & Wealth Management

Change

2017

2016 pf 2,718 (1,981)

€m

%

in millions of euros

Net banking income Operating expenses

3,113 (2,178)

395

14.5%

(196)

9.9%

Gross operatingincome

936

737

198

26.9% (2.9 pts) (60.3%)

Cost/incomeratio

69.9%

72.9%

Cost ofRisk

0 1

1

0

Share in incomeof equity-accounted associates

(9) 30

10

NS

Gains or losseson otherassets

13

(17) 191

(56.4%) 25.1%

Incomebeforetax

950

759

Asset management Assets under managementamounted to € 830.8 billion at end-December 2017, which was stable at current exchange rates (+6% at constant exchange rates) relative to December31, 2016,driven by inflows and avery positive marketeffect.

225

Registration document 2017