BPCE_REGISTRATION_DOCUMENT_2017

5 FINANCIAL REPORT

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

GUARANTEE COMMITMENTS 11.2

12/31/2017

12/31/2016

in millionsof euros

Guaranteecommitmentsgiven to: credit institutions -

6,856

5,575

customers* -

38,150 45,006

37,191 42,766

TOTALGUARANTEECOMMITMENTSGIVEN Guaranteecommitmentsreceivedfrom: credit institutions -

22,493 131,827 154,320

19,847 126,242

customers -

TOTALGUARANTEECOMMITMENTSRECEIVED 146,089 The guaranteesgivenby CEGC (a subsidiaryof Natixis) in connectionwith its activityare treatedas insurancepoliciesfor accountingpurposes,in accordancewith IFRS 4“Insurancecontracts.”They * are recordedon the liabilitiesside of the balancesheetand are not includedin guaranteesgiven to customersshown in the tableabove.

Guaranteecommitmentsare off-balance sheet commitments. “Securities pledged as collateral” are included in Note 13.1 “Transferred financial assets not fully derecognized and other financial assets pledged as collateral”.

“Securities received as collateral” that can be sold or repledged are included in Note 13.1.3 “Financial assets received as collateral that can be sold or repledged”.

Note 12

Related party transactions

For Groupe BPCE, related parties are consideredto be all consolidated companies, includingcompaniescarriedunder the equitymethod,and the Group’s key management personnel. The social housing companies in which the Group is the sole major shareholder arealso covered. TRANSACTIONS WITH CONSOLIDATED 12.1 COMPANIES All intercompany transactions carried out during the period and balancesoutstandingat the end of the period with fully consolidated companies are eliminated in full onconsolidation. The statementbelowonly providesdata on intercompanytransactions concerning: companies over which the Group exercises joint control (joint ● operations)in respect of the non-eliminatedportion: no significant transactions were identified in this category; entities over which the Group exercises significant influence and ● which are equity-accounted (associates). The significant transactions that have been identified were carried out with CNP Assurancesgroup: under a sales agreement,the Group received commissionincome - amounting to € 974 million in2017 ( € 956 million in2016), for the managementof the Group’spensionplans, reimbursement - rights of € 454 million were recorded to cover post-employment benefits (seeNote 9.2.2), under a partnership agreement that took effect on January 1, - 2016, a cash deposit of € 11.8 billion was recorded under “Loans and receivables due from customers” (see Note 5.6.2). This cash depositis backedby technicalreservesrecognizedfor an identical amount under liabilities in the balance sheet representing commitmentsto insured parties. Insurance expenses and income relating to reinsured policies are recorded as “Income and expenses from otheractivities” (see Note 6.5).

A list of fully consolidated subsidiaries is presented in Note

18,

“Scope of consolidation”.

TRANSACTIONS WITH COMPANY 12.2 DIRECTORS

The Group’s company directors are the members of the Management Board and Supervisory Board of BPCE. The short-term benefits, post-employment benefits, long-term benefits and termination benefits of BPCE’s company directors are described in the “Pay, benefits in kind, loans, guarantees and attendance fees received by BPCE company directors” section of Chapter 2 of the registration document, onCorporate Governance. Short-term employee benefits Short-term benefits paid out to the Group’s company directors amounted to € 6 million in 2017 (vs. € 6 million in 2016). These include remuneration, directors’ attendance fees and benefits paid to membersof the Management Board and Supervisory Board. Post-employment benefit commitments, long-term benefits and termination benefits Post-employment benefit commitments, long-term benefits and terminationbenefits for the Group’s company directors are described in paragraph 2.4 in Chapter 2 of the registration document on CorporateGovernance.The amount provisionedby BPCE in respect of retirement bonuses came to € 3 million at December 31, 2017 (unchangedagainstthe previousyear). RELATIONS WITH SOCIAL HOUSING 12.3 COMPANIES Groupe BPCE is a longstanding partner in the HLM social housing movementin France and a key player in the social housingproduction process. The Group acts as an operator (the leading privately-owned bank involved in the constructionof social housing which it finances in particularthrough Livret A passbooksavings account deposits)and

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Registration document 2017