BPCE_REGISTRATION_DOCUMENT_2017

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

Note 5

Notes to the balance sheet

5.1

CASH AND AMOUNTS DUE FROM CENTRAL BANKS

12/31/2017

12/31/2016

in millionsof euros

Cash

136

125

Amount due tocentralbanks

82,585 82,721

71,911 72,036

TOTALCASH AND AMOUNTSDUE FROMCENTRAL BANKS

Financial assets at fair value through profit or loss 5.2.1 Financial assets in the trading book mainly include proprietary securities transactions, repurchase agreements and derivative instruments contracted by the Group to manageits risk exposure.

FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS Financial assets and liabilities at fair value through profit or loss comprise instruments held for trading, including derivatives, and certain assets and liabilities that the Group has chosen to recognize at fair value, at their date of acquisitionor issue, using the fair value option available under IAS 39. 5.2

12/31/2017

12/31/2016

Fair value option

Fair value option

Trading 10,080

Total

Trading 7,991 4,258 12,249

Total

in thousands of euros

Treasury billsand equivalent

106

10,186

118

8,109 6,381

Bondsand other fixed-income securities

2,851

2,520 2,626

5,371

2,123 2,241

5

Fixed-income securities

12,931

15,557

14,490

Equitiesand othervariable-income securities

37,348

16,848

54,196

33,815

12,640

46,455

Loans tocredit institutions

1,254 1,752 3,006

172

1,426 8,557 9,983

1,521 1,350 2,871

204

1,725 8,517

Loans tocustomers

6,805 6,977

7,167 7,371

Loans

10,242 42,377 57,599

Repurchase agreements*

36,086

36,086 51,194

42,377

Trading derivatives*

51,194

///

57,599

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TOTALFINANCIALASSETSAT FAIR VALUE THROUGH PROFIT OR LOSS

104,479

62,537

167,016

106,534

64,629

171,163

This informationis presentedin considerationof nettingeffects, in accordancewith IAS 32(see Note 5.24). *

Financial assets at fair value through profit or loss held by the insurance companies controlled by BPCE SA group amounted to € 22,405 million at December 31, 2017 and € 16,588 million at December31, 2016. Conditions for designating financial assets designated at fair value Financial assets are designated at fair value through profit or loss when this choice provides more pertinent information or when the instruments incorporate one or more significant and separable embeddedderivatives(see Note4.1.4). The use of the fair value option is considered to provide more pertinent information in two situations: where there is an accounting mismatch between economically ● linked assets and liabilities. In particular, the fair value option is used when hedge accountingconditionsare not met: in such cases, changes in the fair value of the hedged item automaticallyoffset changes inthe fair valueof the economichedgingderivative;

where a portfolio of financial assets and liabilities is managed and ● recognizedat fair value as part of a documentedasset and liability managementpolicy. At Group level, financialassets designatedat fair value throughprofit or loss are mostly held by Natixis. They consist primarilyof long-term structured repos indexed to a basket of equities whose risks are managed globally and dynamically,financial assets representativeof unit-linked policies from insurance activities and, to a lesser extent, assets with embedded derivatives for which the principle of separation wasnot adopted. Financial assets accounted for under the fair value option, excluding Natixis, also include certain contracts for structured loans to local authorities and structured bonds hedged by derivatives not designated as hedging instruments, assets containing embedded derivativesand fixed-income instruments index-linked to a credit risk.

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Registration document 2017