BPCE_REGISTRATION_DOCUMENT_2017

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

CHANGE IN GAINS AND LOSSES RECOGNIZED DIRECTLY IN OTHER COMPREHENSIVE INCOME 5.23

Fiscal year 2017

Fiscal year 2016

Gross

Tax

Net

Gross (205)

Tax

Net

in millions of euros

Revaluation differenceson defined-benefit pension schemes Revaluation ofown creditrisk on financialliabilities atfair value through profit or loss (1) Share ofgains and losses recognized directly in othercomprehensive incomeof associatesthat cannotbe reclassified in income

50 (34)

16

60

(145)

(198)

50

(148)

(142)

49

(93)

///

///

(1)

///

///

Items that cannot be reclassifiedin income

(133) (699)

(238)

Foreign exchange rateadjustments

(699)

///

118

///

118

Change in thevalue of available-for-sale financial assets (2)

28 134 153 (56)

162

(340)

(49)

(389)

Change in thevalue of hedging derivatives (3)

97

134 (65)

69

Share ofgains and losses recognized directly in othercomprehensive incomeof associatesthat can be reclassified in income

///

///

9

///

///

112

Items that can be reclassifiedin income

(431)

(90)

GAINS ANDLOSSES RECOGNIZED DIRECTLY IN OTHER COMPREHENSIVE INCOME(AFTERINCOMETAX)

(564) (331) (233)

(328) (405)

Attributable toequity holdersof the parent

Non-controllinginterests 77 The Groupdecidedto early-apply,fromDecember 31,2016,the provisionsof IFRS 9on the recognitionof own creditrisk for financialliabilitiesat fair value throughprofitor loss (see Note 2.2). (1) O/w -€304 million(beforetax) reclassifiedas incomefor 2017,comparedwith -€830 millionin 2016;over the 2016 fiscalyear, the capitalgain on Visa Europesecuritiesremeasuredat €831 million (2) was reclassifiedin incomeat the dateof theirsale to Visa Inc. O/w €88 million(beforetax) reclassifiedas incomefor 2017comparedwith €96 millionin 2016. (3)

5

index options and futures options are offset by maturity and by - currency, equity options are offsetby ISIN code and maturity date; - for repurchase agreements, the amount recorded in the balance ● sheet corresponds to the net value of repurchase and reverse repurchase agreements that: are enteredinto with the same clearing house, -

OFFSETTING FINANCIAL ASSETS 5.24 AND FINANCIAL LIABILITIES

Financial assets and liabilities were offset on the balance sheet in accordance with IAS 32. Under this standard, a financial asset and financial liability are offset and a net balance is recorded in the balance sheet if and only if: the Group has the legally enforceable right to offset the recorded ● amounts; and it has the intention either to settle the net amount or to ● simultaneously realize the asset and settle the liability. Within Groupe BPCE, most offset amounts are the result of repurchase agreements and derivatives transactions mostly carried out by Natixis with clearing houses, which fulfilled the requirements of IAS 32: for OTC derivatives,this involves the effects of the currency offset ● between asset valuations and liabilityvaluations of the derivatives; for asset switch transactions that have similar nominal amounts ● and identicalmaturitiesand currencies,the Group presentsthem as a single financial asset or liability; for listed derivatives, the positions recorded under the respective ● asset and liability items for:

have thesamematurity date, - involve thesame custodian, - are denominated inthe same currency. -

Financial assets and liabilities “Under netting agreements not offset in the balancesheet” comprisetransactionsunder nettingagreements or similar agreements, but that do not meet the restrictive netting criteria set by IAS 32. This is particularly the case for derivatives or OTC repurchase agreements subject to master agreements under which the net settlement criteria or realization of a simultaneous settlement of the asset and liability cannot be demonstratedor for which the offsetting right can only be exercised in the event of default, insolvency or bankruptcy by one of the parties to the agreement.

297

Registration document 2017