BPCE_REGISTRATION_DOCUMENT_2017

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

Income and expenses from insurance activities The statement shown below provides a transition between the financialstatementsof insurancecompaniesincludedin the scope of consolidationand their translation into the financial statements of Groupe BPCE in accordance with the presentation applicable to banks.

The Group’s consolidated companies that present their financial statements based on the insurance company model are Natixis Assurances, Muracef, Surassur, Prépar Vie, Prépar Iard, CEGC and Coface.

Banking format 2017

Gross operating income Other items

Operating expenses

Insurance format 2017

Net banking income (1)

Insurance format 2016

in millions of euros Earnedpremiums

14,033

14,033

14,033

22,428

Revenues or income from otheractivities

246

246

246

305

Other operatingincome

28

19

47

47

19

Net financial incomebefore financecosts

2,863

(15)

2,848

(24) (24)

2,824

2,008

TOTALREVENUE FROMORDINARY ACTIVITIES

17,170

4

17,174

17,150 (14,035)

24,760 (21,726)

Claimsand benefits expenses Expensesfrom otheractivities

(13,919)

(116)

(14,035)

(313)

(14)

(327)

(4)

(331)

(399)

Net income from reinsurancedisposals

(36)

(36)

(36)

(58)

Policy acquisitioncosts Administrative expenses

(758) (394)

(221) (389) (249)

(979) (783) (325)

1

(978) (784) (327)

(945) (710) (221)

(1) (2)

Other operatingincome andexpenses/recurring TOTALOTHER RECURRING INCOME AND EXPENSES

(76)

(15,496)

(989) (985)

(16,485)

(6)

(16,491)

(24,059)

OPERATING INCOME

1,674

689

(30)

659

701

5

O/w -€248 millionrecordedin “Incomeand expensesfrom insuranceactivities”(see Note 6.5). (1)

OPERATING EXPENSES 6.6 Operating expenses include mainly payroll costs (wages and salaries net of rebilled amounts), social security charges, and employee benefit expenses such as pension costs. Operating expenses also include the full amount of administrative expenses and external services costs.

Income and expenses recognized for insurance policies are included under the “Income from other activities” and “Expenses from other activities” components of net banking income. Other componentsof the operating income of insuranceentities of a banking nature (interest and commissions) are reclassified under these items of net banking income. The main reclassificationsrelate to the charging of general operating expenses by nature whereas they are charged by function in the insurance presentation.

Fiscal year 2017

Fiscal year 2016

in millionsof euros Payroll costs

(10,327)

(10,025)

Taxes other than on incomeand regulatorycontributions External servicesand otheroperatingexpenses

(861)

(826)

(5,060) (5,921) (16,248)

(4,969) (5,795) (15,820)

Otheradministrativecosts

TOTALOPERATINGEXPENSES

Taxes and regulatory contributions included, in particular, the contribution to the SRF (Single Resolution Fund) for an annual amount of € 273 million ( versus € 229 million in2016) and the systemic risk tax for an annual amount of € 86 million ( versus € 102 million in2016). The breakdownof payrollcosts is providedin Note 9.1.

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Registration document 2017