BPCE_REGISTRATION_DOCUMENT_2017

5 FINANCIAL REPORT

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

5.3.4

Statement ofchangesin equity

Share capital and additional paid-in capital

Additional paid-in capital

Share capital

Preference shares

 Perpetual deeply subordinated notes

Retained earnings

in millions of euros

SHAREHOLDERS’ EQUITY AT JANUARY 1, 2016

156 12,426

1,395

4,473

Dividend payments

(351)

Capitalincrease

5

Redemption of deeplysubordinated notes Interestondeeplysubordinated notes

(165)

(185)

(99)

Impact ofacquisitionsand disposals onnon-controlling interests (1) Total activity arisingfromrelations with shareholders Gains and losses recognized directly in othercomprehensive income (2) Income Comprehensive income Other changes (3)

(147)

(165)

(777)

(100)

SHAREHOLDERS’ EQUITY AT DECEMBER 31, 2016

156 12,426

1,230

3,596 1,664 5,260

Allocation of net income for 2016

SHAREHOLDERS’ EQUITY AT JANUARY 1, 2017

156 12,426

1,230

Dividend payments

(410)

Capitalincrease Redemption of deeplysubordinated notes (4)

(547)

(505)

Interestondeeplysubordinated notes

(75)

Impact ofacquisitionsand disposals onnon-controlling interests (5) Total activity arisingfromrelations with shareholders Gains and losses recognized directly in othercomprehensive income (6) Income Comprehensive income Other changes (7)

(215)

(547)

(1,205)

(44)

SHAREHOLDERS’ EQUITY AT DECEMBER 31, 2017

156 12,426

683

4,011

Including a reduction in retainedearningsof -€173 million (-€147 million attributable toequityholdersof the parent and -€26 million attributable to non-controlling interests) arising from the impactof (1) acquisitions and other movements. Thisreductionwasmainlydueto the following: -€73 million (-€52 million attributable to equityholdersof the parent and -€21 million attributable to non-controlling interests) for stock options granted tohe minority shareholders of Peter J.Solomon ● Company (PJSC); -€24 million (-€17 million attributable to equityholdersof the parent and -€7 million attributable to non-controlling interests)forstockoptions granted to the minority shareholders of Ciloger; ● -€65 million (-€46 million attributable to equityholdersof the parent and -€19 million attributable to non-controlling interests) for the change in the fairvalueof stock options grantedto the minority ● shareholders of DNCAFrance; -€18 million (-€13 million attributable to equityholdersof the parent and -€5 million attributable to non-controlling interests)for theacquisition of a 40%stake inAEWEurope; ● +€26 million attributable to non-controlling interestsfor the Natixiscapitalincreasereservedforemployees. ● Including avariationin the translation difference of -€44 million (-€31 million attributable to equity holdersof the parent and-€13 million attributable to non-controlling interests) followingtherepaymentof (2) $400 million in retainedearningsby Natixis’NewYorkbranch. Otherchangesnotably include interest on perpetual deeply subordinated notes for the portion subscribed for by non-controlling interests. (3) Redemptions of perpetual deeply subordinated notesovertheperiod amounted to: (4) €990 million for BPCE SAgroupissues;thisredemption led tothe reversal of the capitalgain recorded in equityin the amount of €443 million (see note 5.21); ● €276 million for theredemptionby Natixisof aperpetual deeply subordinated note issued in 2007, which was fullysubscribed for by non-controlling interests.Thisredemption led to thereversalof the ● capitalgainrecorded inequityin the amount of €87 million (€62 million attributable to equityholdersof the parent and €25 million attributable to non-controlling interests). Including a reduction in retainedearningsof €510 million and an increase in the translation difference of€5 million (-€210 million attributable to equityholdersof the parent and -€295 million attributable to (5) non-controlling interests) arising from the impactof acquisitions andothermovements.Thisreductionwasmainlydue to the following:

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Registration document 2017