BPCE_REGISTRATION_DOCUMENT_2017

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

DEFERRED TAX ASSETS AND LIABILITIES 5.9 Deferredtax assets and liabilitieson temporarydifferencesarise from the recognitionof the items listed in the statementbelow (positivefigures indicatedeferredtax assets, while negative figures in bracketsrepresent deferredtax liabilities):

12/31/2017

12/31/2016

in millionsof euros

Unrealized capital gainson UCITS

19

30

Fiscal EIGs

(113)

(122)

Provisions for employee-related liabilities

108

127

Impairment on aportfoliobasis Other non-deductibleprovisions

27

38

286

461 (27)

Changesin fair valueof financial instruments recorded in equity

25

Other sourcesof temporarydifferences* Deferredtax relatedto timing differences

(494) (142) 2,331

(158)

349

Deferredtax arisingon thecapitalization oftax loss carryforwards

2,478

Unrecognizeddeferred tax assetsand liabilities NET DEFERRED TAXASSETS AND LIABILITIES

(1,154)

(1,056)

1,035

1,771

Deferredtaxes recognized: As assets in the balance sheet - As liabilities in thebalance sheet -

1,698 (663)

2,496

(725) A deferredtax liabilityof €311 millionwas recognizedat December 31,2017 (€530 millionat December 31,2016)on certaingoodwillitemsrecordedin the UnitedStates,whichwill give rise to tax * amortizationover 15 years.

In 2017, the French Finance Act for 2018 and the fiscal reform in the United States allowed BPCE SA group to revalue its net deferred tax position (seeNote 6.9): For French companies,deferredtaxes are calculatedby applyingthe ● tax rate that will be charged when the temporary difference reverses. Tax rates will be gradually lowered through to 2022 (includingthe social security contributionon profits), from 34.43% in 2018 to 25.83% in 2022 and thereafter for taxable profit taxed at the normalrate;

The US tax reform adopted at the end of December ● includesa measurelimiting deferrabletax deficits and it introduces a tax similar to corporate tax, the Base Erosion Anti-Abuse Tax. Neither of these changes were deemed likely to have a significant impact on the income received from the reduction in the federal tax rate. At December 31, 2017, deductible temporary differences, tax losses and unused tax credits for which no deferred tax asset has been recorded in the balance sheet amountedto € 4,506 million, compared with € 4,113million at December31, 2016. 2017 also

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ACCRUED INCOME AND OTHER ASSETS 5.10

12/31/2017

12/31/2016

in millionsof euros

Collection accounts Prepaid expenses

229 210 465

2,738

191

Accrued income Other accruals

1,128 2,859 6,916

2,017 2,921

Accrued incomeand prepaidexpenses

Security deposits paid*

19,061

20,849

Settlement accounts in debit on securities transactions

308

245

Reinsurers’ share of technical reserves

11,445

9,541 2,113

Other insurance-relatedassets

2,182

Other debtors Otherassets

15,289 48,285 51,206

13,002 45,750 52,666

TOTALACCRUEDINCOMEAND OTHERASSETS

“Securitydepositspaid” includesmargincallspaid in respectof repurchaseagreementsand derivativesfor €10,769 millionas at December 31,2017,comparedwith €12,123 millionat * December 31,2016.

407

Registration document 2017