BPCE_REGISTRATION_DOCUMENT_2017

2017 ACTIVITIES AND FINANCIAL INFORMATION BPCE SA group financial data

BPCE SA group financial data 4.4

4.4.1

BPCE SA group results

BPCE SA group’snet incomeis calculated after restating the contributionof non-consolidated entities. In 2017,the transitionfrom Groupe BPCE’snet income to BPCE SA group’snet incomecan be broken down as follows:

2017

in millionsof euros

GROUPEBPCENET INCOME

3,024 (2,198)

Entities not consolidated or consolidated under a different method (1)

Other items

19

BPCE SA GROUP NET INCOME

845

4

Includingthe BanquePopulairebanks,the Caissesd’Epargneand theirconsolidatedsubsidiaries. (1)

€ 845 million in 2017, down € 819 million comparedto 2016 (pro

The Group generatednet income attributableto equity holders of the parent of

forma), whichset a comparison base of + € 797 million linkedto the acquisition of Visa Europe by Visa Inc.on June

21, 2016.

Retail Banking and Insurance

Asset & Wealth Management

Corporate & Investment Banking

Corporate Center

BPCE SA group

2017

2017

2017

2017

2016 pf

2016 pf

2016 pf

2016 pf

2017

2016

in millions of euros

Net banking income Operating expenses

3,303 3,448 3,113 2,718 3,581 3,270 501 1,344 10,499 10,781

(2,284) (2,199) (2,178) (1,981) (2,194) (2,046) (1,485) (1,479) 1,019 1,249 936 737 1,387 1,224 (984) (135) 69.1% 63.8% 69.9% 72.9% 61.3% 62.6% ns

(8,141) (7,705) 2,358 3,076

Gross operatingincome

Cost/incomeratio

ns 77.5% 71.5%

Cost ofRisk

(292)

(294)

0

1 (115)

(195)

(104)

(20)

(511)

(508)

Share in incomeof equity-accounted associates Gains or losseson otherassets Change in thevalue of goodwill

14

16 35

1

(9) 30

10 18

14 216 181 241 202

(15)

13

0

89 105 104 170

(66)

(117)

(66)

(117)

Incomebeforetax

725 1,006 950 759 1,300 1,043 (849)

15 2,126 2,823

Incometax

(231) (130)

(355) (159)

(329) (276)

(261) (187)

(380) (269)

(322) (207)

329 274 (611)

(665) (494)

Non-controllinginterests

6

59 (670)

NET INCOMEATTRIBUTABLETO EQUITYHOLDERSOF THE PARENT

364 492 345 310 651 513 (514)

348 845 1,664

Retail Banking and Insurancerecorded a - € 129 million decline in net income attributableto equity holders of the parent versus 2016 (pro forma), reflecting a business downturn at Crédit Foncier and BPCE International. With income of € 345 million, the Asset & Wealth Management division posted a 11.1% year-on-year gain on a pro forma basis, driven by higher fees on AuM due to the increasein averageAuM and in the commission rate over the period, the rise in incentive fees charged by Europeanasset managementcompanies,and the increase in interest income.

Corporate & Investment Banking earned income of € 651 million, up 26.8% compared to 2016 (pro forma), buoyed by positive market conditions and strongperformance inall business lines. In addition to the contribution of the Group’s central institution, BPCE SA, and Natixis, the CorporateCenter’s net income attributable to equity holders of the parent included a - € 150 million contribution to the Single Resolution Fund, disposals of international workout portfolio assets amountingto - € 60 million, and asset impairmentsof - € 66 million.

231

Registration document 2017