BPCE_REGISTRATION_DOCUMENT_2017

5 FINANCIAL REPORT

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

Note 6

Notes to the income statement

6.1

INTEREST AND SIMILAR INCOME

It also includes interest receivable on fixed-income securities classified as available-for-sale financial assets and hedging derivatives, it being specified that accrued interest on cash flow hedgingderivativesis taken to incomein the samemannerand period as the accrued interest on the hedgeditem.

AND EXPENSES This line item comprises interest income and expenses, calculated using the effective interest method, on financial assets and liabilities measured at amortized cost, which include interbank and customer items, held-to-maturity assets, debt securities and subordinated debt.

Fiscal year 2017

Fiscal year 2016

Income 17,007

Expense (5,505)

Net

Income

Expense

Net

in millions of euros

Loans and receivablesdue from customers

11,502

17,816

(5,238)

12,578

Loans and receivablesdue from creditinstitutions (1)

1,378

(809)

569

1,314

(682)

632

Finance leases

495

///

495

533

///

533

Debt securities and subordinated debt

///

(4,420) (4,948)

(4,420)

///

(4,794)

(4,794)

Hedgingderivatives

4,877 1,832

(71)

5,074 1,855

(5,282)

(208)

Available-for-salefinancial assets Held-to-maturity financial assets

/// /// ///

1,832

/// /// ///

1,855

269

269

287

287

Impaired financialassets

71 12

71

73

73

Other interestincomeand expenses

(27)

(15)

5

(57)

(52)

TOTALINTEREST INCOMEAND EXPENSES 10,904 Interest incomefrom loansand receivableswith credit institutionsconsistsof €707 millionin income(€760 millionin 2016)collectedon the Livret A,LDD and LEP passbooksavingsaccounts, (1) whichare depositedwith Caissedes Dépôtset Consignations. 25,941 (15,709) 10,232 26,957 (16,053)

6.2

FEE AND COMMISSION INCOME

occasionalservices (fund transfers, payment penalties, etc.), fees and commissions receivable or payable on execution of significant transactions,and fees and commissionsreceivableor payableon trust assets managed onbehalf of theGroup’scustomers. However, fees and commissions that form an integral part of the effective yield on a contract are recorded under “Net interest income.”

AND EXPENSES Fees and commissions are recorded based on the type of service rendered and on the method of accounting for the financial instrument to which the service relates. This line includes mainly fees and commissionsreceivable or payable on recurring services (payment processing, custody fees, etc.) and

Fiscal year 2017

Fiscal year 2016

Income

Expense

Net

Income

Expense

Net

in millions of euros

Cash andinterbank transactions

22

(57) (22)

(35)

16

(32)

(16)

Customer transactions

3,294

3,272

3,094

(39)

3,055

Financialservices

662

(751)

(89)

563

(678)

(115)

Sales of life insurance products

1,220 1,570

///

1,220 1,024

1,298 1,625

///

1,298

Payment services

(546) (188)

(604) (159)

1,021

Securitiestransactions

326

138

285

126

Trust management services

3,606

(8)

3,598

3,220

(6)

3,214

Financialinstruments and off-balance sheet transactions

455

(156)

299

401

(146)

255

Other fee and commission income/(expense) TOTALFEE ANDCOMMISSIONINCOME AND EXPENSES

433

(409)

24

450

(507)

(57)

11,588

(2,137)

9,451

10,952

(2,171)

8,781

300

Registration document 2017