BPCE_REGISTRATION_DOCUMENT_2017

5 FINANCIAL REPORT

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

for the BPCE Internationalsubsidiaries,the latest available market ● information. The long-term growth rates are based on the long-term inflation rates in their countriesof operation. These tests led to the recognition of goodwill impairment of € 85 million in2017. Sensitivity of recoverable values A 20 basis-point increase in discount rates combined with a 50 basis-point decrease in perpetual growth rates would reduce the CGUs’ valuein use by: -7.1% forthe Asset & Wealth Management CGU; ● -3.3% forthe Corporate & Investment Banking CGU; ● -5.3% forthe InsuranceCGU; ● -3.6% forthe Specialized Financial Services CGU; ● -2.6% forthe Coface CGU; ● -6.2% forthe RegionalBanks CGU. ● These changes would only result in the booking of additional impairment losses for the Regional Banks CGU ( € 17 million). Similarly,the sensitivityof these CGUs’ future cash flows, as forecast in the business plan, to changes in the main assumptionswould not significantly affect their recoverable value: for Asset & Wealth Management, a 10% decline in the equity ● markets would have a -8% negative impact on the CGU’s recoverable value and would not lead to the recognition of an impairment loss; for Corporate & Investment Banking, sensitivity to the dollar or to ● changesin the CAC 40 would have a limited impact on net banking income and would not result in recognitionof impairment;

for Insurance, the main vector of sensitivity for life insurance is ● interest rates but various steps are being taken to reduce their impact (diversificationof investments, reserves, etc.). Accordingly, the impact on the income statement is limited and would not significantly impact the CGU’s value. For non-life insurance, the main vector of sensitivity is the loss ratio, which is notably measured via the combined ratio. Natixis’ strategic plan, New Dimension,sets this ratio at below 94%. A one-point deterioration in this ratio each year from 2018 in relation to the assumptions used to value the CGU would lead to a limited fall of 3% in this value, with noimpact onimpairment. for Specialized Financial Services, a one-point increase in the ● 3-month Euribor applied to the factoring business and the replication of a “2008/2009”-typecrisis (decline in new business and increase in cost of risk) in the leasing business would have a negative impact of -6% on the CGU’s recoverablevalue and would have noimpact interms of impairment; for Coface, the primary sensitivity vector is the loss ratio. The ● projected level of this ratio is below 54% (net of reinsurance) for 2017. A one-point increase in the loss ratio, relative to the assumptionsused for the DCF calculationover all years from 2018, would impact the averagemulti-criteriavalue by less than 5% and would not lead to the recognition of impairment on the CGU. A valuationat the lowest price of the year 2017 would have a limited impact on the weighted average valuation determined using the differentmethods (-2%); for the Regional Banks, the sensitivity of future cash flows, as ● forecast in the business plan, to a 5% point fall in normative net income, combined with a 50 basis point rise in the target capital adequacy ratio, would have a negative impact on the CGU’s value of 5.8% and would lead to the recognitionof an impairmentloss of around € 14 million onthe CGU.

AMOUNTS DUE TO CREDIT INSTITUTIONS AND CUSTOMERS 5.15 These liabilities,which are not classifiedas financialliabilitiesat fair value through profit or loss, are carried at amortizedcost under “Amounts due to credit institutions” or “Amounts due to customers”.

Amounts due to credit institutions 5.15.1

12/31/2017

12/31/2016

in millionsof euros

Demand deposits

9,488 4,841

11,944

Repurchase agreements

5,305

Accrued interest

8

8

Amountsdue tocredit institutions– repayable on demand

14,337 64,397 13,431

17,257 57,392 12,398

Term deposits and loans Repurchase agreements

Accrued interest

(20)

145

Amountsdue tocredit institutions– repayable at agreed maturity dates

77,808 92,145

69,935 87,192

TOTALAMOUNTS DUE TO CREDIT INSTITUTIONS

The fair valueof amountsdue to credit institutions is presented inNote 15.

290

Registration document 2017