BPCE_REGISTRATION_DOCUMENT_2017

5 FINANCIAL REPORT

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

6.5

INCOME AND EXPENSES FROM OTHER

In 2017, permanent impairment of variable-income securities amounted to € 61 million, versus € 120 million in 2016. This expense involves insurance portfolios for € 15 million ( € 40 million at December 31, 2016), the impact of which is neutralized given the profit-sharing mechanism. In 2017, permanent impairment in value of variable-income securities (1) also includedan additionalimpairmentloss of € 18 million on previously impaired securities ( € 59 million in2016). The allowancefor newly-impairedsecuritieslinked to the application of analysis criteria as defined in the accounting principles and methods(see Note 4.1.7) amountedto € 9 million,primarilyapplicable to insurance portfolios ( € 43 million in 2016, € 35 million of which was applicable toinsurance portfolios).

ACTIVITIES This itemmainlycomprises:

income and expenses on investment property (rental income and ● expense, gains and losses on disposals, depreciation, amortization and impairment); income and expensesresultingfrom the Group’s insurancebusiness ● (notably premiumincome, paid benefits and claims, and changes in technical reserves of insurance companies); income and expenses onoperatingleases; ● income and expenses on real estate development activities ● (revenues, purchases used).

Fiscal year 2017

Fiscal year 2016

Income

Expense

Net

Income

Expense

Net

in millions of euros

Incomeand expensesfrom insuranceactivities (1) Incomeand expensesfrom real estate activities Incomeand expensesfrom leasingtransactions Incomeand expensesfrom investmentproperty

11,536 (11,784)

(248)

20,884 (20,573)

311

2

2 7

3

3

346 213

(339) (105)

300

(300)

108

209

(92)

117

Share of joint ventures

7

(7) (7)

7

(9) (7)

(2)

Transfersof expensesand income Other operatingincome andexpenses

18

11

15

8

598

(362)

236

645

(300)

345

Additions to/reversals fromprovisions toother operating incomeand expenses

(59)

(59) 188

(104)

(104)

Otherbankingincome andexpenses

623

(435)

667

(420)

247

TOTALINCOMEANDEXPENSES FROMOTHER ACTIVITIES

12,720 (12,663) 678 In 2016,the implementationof the partnershipwith CNP Assurancesconcerningreceivablesarisingfrom reinsurancetransactionslinked to reinsuredcontractswas reflectedby an entryof (1) €11.9 billionrecordedunder“Incomeand expensesfrom insuranceactivities”: incomefrom insurancecompaniesincludedthe effectof the implementationof the reinsurancetreatycovering10%of the savingsdepositoutstandingsheld by CNP; - expensesincludedthe recognizedallocationsto technicalreserves. - 57 22,063 (21,385)

Excluding insurance portfolio securities, in light of the deferred profit-sharing mechanism. (1)

302

Registration document 2017