BPCE_REGISTRATION_DOCUMENT_2017

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

NET GAINS OR LOSSES ON FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS This item includesgains and losses (includingthe related interest)on financial assets and liabilities classified as held for trading or designated at fair value throughprofit or loss. 6.3

“Gains and losses on hedging transactions”include gains and losses arising from the revaluationof derivativesused as fair value hedges, as well as gains and losses from the revaluationof the hedged item in the same manner, the revaluation at fair value of the macro-hedged portfolio and the ineffective portion of cash flow hedges.

Fiscal year 2017

Fiscal year 2016

in millionsof euros

Gains and losseson financial instruments held for trading (1)

2,751

2,229

Gains and losseson financial instruments designated at fair value through profitor loss

531

34

Gains and losseson hedgingtransactions Ineffective portionof fair value hedges - Ineffective portionof cash flow hedges -

(187) (197)

(123) (114)

10 82

(9)

Gains and losseson foreignexchange transactions (2)

288

TOTALNET GAINS ORLOSSESON FINANCIALINSTRUMENTSAT FAIRVALUE THROUGH PROFIT ORLOSS

3,177

2,428

In 2017,“Gainsand losseson financialinstrumentsheld for trading”included: (1) impairmentstakenagainstthe fair valueof CDS entered into with monolineinsurers(see Note 4.1.6),which led to a decreaseof €7 millionin cumulativeimpairmentsin 2017,versus incomeof - €19 millionin 2016excludingforeignexchangeeffect,bringingcumulativeimpairmentsto €63 millionat December 31,2017versus€73 millionat December 31,2016; a reversalof the full portfolio-basedprovisionrecordedon exposuresin respectof CDPCs(CreditDerivativeProductCompanies)was recordedin 2017 in the amountof €1 million.In 2016,a €4 million - reversalwas carriedout, bringingthe cumulativebalanceof the portfolio-basedprovisionto €1 million; the +€95 millionchange in the fair valueof derivativesdue to the differencein impairmentsfor counterpartyrisk (CreditValuationAdjustment– CVA), in the amountof -€55 milliondue to the - considerationof non-performancerisk in the valuationof derivativefinancialliabilities(DebitValuationAdjustment– DVA),and in the amountof +€25 milliondue to the inclusionof an adjustmentfor fundingcosts (FundingValuationAdjustment– FVA). Incomeof €47 millionwas recordedin 2016,correspondingto the reclassificationof foreignexchangegainsand lossesarisingon the reimbursementby certainentitiesof capital in foreign (2) currenciesor equity items treatedas capital.

5

Day-one profit

Fiscal year 2017

Fiscal year 2016

in millionsof euros

Day-oneprofit at the start ofthe year Deferred profiton new transactions Profit recognized in income during theyear Other changes DAY-ONE PROFITAT YEAR-END

74

82 53

100 (97)

(62)

77

73

NET GAINS OR LOSSES ON AVAILABLE-FOR-SALE FINANCIAL ASSETS 6.4

This item includes dividends from variable-income securities, gains and losses on the sale of available-for-salefinancial assets and other financialassets not valued at fair value as well as impairmentlosses recognizedon variable-incomesecuritiesdue to a permanentimpairmentin value.

Fiscal year 2017

Fiscal year 2016

in millionsof euros

Gains or losseson disposal

607 257 (61) 803

1,250

Dividendsreceived

237

Permanent impairment of variable-incomesecurities

(120) 1,367

TOTALNET GAINS ORLOSSESONAVAILABLE-FOR-SALE FINANCIAL ASSETS

In 2016,“Gains and losses ondisposal” included € 831 million related to the capital gain on the disposalof Visa Europeshares.

301

Registration document 2017