BPCE_REGISTRATION_DOCUMENT_2017

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

Breakdown of goodwill:

Carrying amount

12/31/2017

12/31/2016 (1)

in thousands of euros Regionalbanks (2) BanqueBCP France

633

650

42

42

Other

8

7

Retail Banking BPCE International

683

699

27 82

42 80 53 13 15

Fidor AG

BanquePalatine Crédit Foncier

13

Other (3)

3

Othernetworks

125 132

203

SpecializedFinancialServices (3)

33 39

Insurance (1)

39

Equity Interests (Coface) Retail Bankingand Insurance Asset & Wealth Management (1) Corporate& Investment Banking

281

282

1,260 2,967

1,256 3,054

77

87

TOTALGOODWILL 4,397 Under the new strategicplan,New Dimension,and in line with the creationof the new Insurancebusinessline, the InvestmentSolutionsCGUwas split into two separateCGUs:“Asset& Wealth (1) Management”and “Insurance”.Goodwillrecordedon the InvestmentSolutionsCGU in the amountof €3,093 millionas of December 31,2016was reassignedto the two new CGUs in line with the entitiesto which the goodwillrelated,sinceeachentity is assignedto just one CGU. Regionalbanks:Banquede Savoie,BanqueDupuy,de Parseval,BanqueMarze,goodwillcarriedby BanquePopulaireAquitaineCentreAtlantique(transferof CCSO– Pelletier’sgoodwillto Banque (2) PopulaireAquitaineCentreAtlantiqueafter theirmerger)and goodwillcarriedby BanquePopulaireMéditerranée(transferof BanqueChaix’sgoodwillto BanquePopulaireMéditerranéeafter their merger). Goodwillon S-moneytotaling€12 millionwas reassignedto SpecializedFinancialServicesafter this entitywas transferredto Natixisgroup in 2017. (3) 4,304

5

Impairment tests All goodwill has been impairment-tested,based on the assessmentof the value in use of the cash-generatingunits (CGUs) to which it is attached.

Key assumptions used to determine recoverable value Value in use is determinedbased on the discountedpresent value of the CGU’s future cash flows under medium-termplans drawn up for the purposes of the Group’s budget process. The following assumptions were used:

Discount rate

Long-term growth rate

Retail Bankingand Insurance Insurance Specialized FinancialServices

11.5% 12.2%

2.5% 2.5% 2.0% 2.0% 2.5% 2.5% 2.5%

BanquePalatine Regionalbanks BPCE International

8.5% 7.5%

8.9% – 18.9%

1.9% – 5.3%

Asset & Wealth Management EquityInterests (Coface) Corporate& Investment Banking

9.7%

10.8% 11.4%

The discount rates were determined by factoringin the following: for the Asset & Wealth Management, Insurance, Specialized ● Financial Services and Corporate & Investment Banking CGUs, the risk-freeinterestrate of the Euro-Bundzone, averagedover a depth of 10 years, plus a risk premium calculated according to a sample of CGU-representative companies; for the Coface CGU, the benchmark interest rates used were ● determined according to a similar method as applied to the other

CGUs, using samples of equivalent companies for insurance, services and factoring activities; for the Banque Palatine and Regional banks CGUs, a risk-free rate ● (10-year OAT) over a depth of six years, plus a risk premium calculated based on a sample of listed European banks with a similar banking business, while factoring in the specific characteristics of these institutions;

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Registration document 2017