BPCE_REGISTRATION_DOCUMENT_2017

5 FINANCIAL REPORT

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

INCOME AND CARRYING AMOUNT FROM 16.3 ASSETS TRANSFERRED TO SPONSORED NON-CONSOLIDATED STRUCTURED ENTITIES A structured entity is sponsored by a Group entity when the two following indicators are both satisfied: it is involved in the creation and structuring of the structured ● entity; it contributesto the success of the entity by transferringassets to ● it or by managing relevant activities. When the Group entity’s role is limited to one of advisor, arranger, custodianor placementagent, the structuredentity is not considered to be sponsored.

Groupe BPCE plays the role of sponsor for: UCITS initiated by a management company belonging to Groupe ● BPCE and in which Groupe BPCE holds no investmentor any other interest. Reported income includes management and outperformancefees charged by Groupe BPCE entities, as well as profit and loss from ordinary business with these funds; a US activity of originationand disposalof portfoliosof home loans ● to securitization vehicles created by the Natixis group with third parties and in which Natixis group holds no interests. Reported income includes structuring fees as well as gains or losses on the disposal of receivables. For the non-consolidated structured entities that the Group sponsoredwithout holding any interests, the impact on the financial statements ispresented below:

Fiscal year 2017

Securitization Asset management

in millionsof euros

Incomefromentities Net interest income

(36)

211

2

Net fee and commission income

(7)

204

Net gains or losses on financial instrumentsat fair value through profitor loss Carryingamount ofassets transferredto theentityduringthe fiscal year

(29)

5

2,365

Fiscal year 2016

Securitization

Asset management

in millionsof euros

Income fromentities Net interest income

(19)

259

3

Net fee and commission income

(3)

242

Net gains or losses on financial instrumentsat fair value through profitor loss Carryingamount ofassets transferredto theentityduringthe fiscal year

(16)

14

1,797

Note 17

Scope of consolidation

Establishment of Banque Populaire Grand Ouest On December 5, 2017, the cooperative shareholders of Banque Populaire Atlantique, Banque Populaire de l’Ouest, Crédit Maritime Atlantique and Crédit Maritime Bretagne-Normandie merged to create Banque PopulaireGrand Ouest. This mergerbetween the fourcompanies comprising the consolidating entity had no material impact on the Group’s consolidatedfinancial statements. Merger of Caisse Régionale de Crédit Maritime Mutuel du Nord and Banque Populaire du Nord On April 22, 2017, Caisse Régionale de Crédit Maritime Mutuel du Nord merged withBanque Populairedu Nord. This merger betweenthe two companiescomprisingthe consolidating entity had no material impact on the Group’s consolidatedfinancial statements.

CHANGES IN SCOPE OF CONSOLIDATION 17.1 DURING FISCAL YEAR 2017 The main changes in the scope of consolidation during 2017 are presented below: Establishment of Caisse d’Epargne des Hauts de France On April 29, 2017, Caisse d’Epargne Picardie and Caisse d’Epargne Nord France Europe merged, giving rise to Caisse d’EpargneHauts de France. This merger betweenthe two companiescomprisingthe consolidating entity had no material impact on the Group’s consolidatedfinancial statements.

326

Registration document 2017