BPCE_REGISTRATION_DOCUMENT_2017

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

GOODWILL 5.14 Goodwill relatedto operations for the financial year is analyzed inrespect of the note regarding the scope of consolidation.

12/31/2017

12/31/2016

in millionsof euros

Opening netvalue

3,803

3,725

Acquisitions (1)

193

176

Disposals

(4)

Impairment (2)

(66)

(117)

Reclassifications

(24)

Foreign exchange rateadjustments

(202) 3,728

47

Closing netvalue

3,803

The main transactionsduringthe periodthat led to the recognitionof goodwillare as follows: (1)

in accordancewith IFRS 3,“Businesscombinations”,analysisof the accountingtreatmentof the acquisitionof Fidorgroupwas finalizedin 2017.This analysisled to the recognitionof a haircuton ● a portfolioof financialassetsfor -€52 millionnet of deferredtax assetsand liabilitiesand the recognitionof intangibleassetscoveringthe technologicalplatform,the brandand a majorcontract for +€49 millionnet of deferredtax assetsand liabilities.Furtherto the analysis,goodwillon Fidorgroup,whichhad beenassessedon a provisionalbasisat the end of 2016,was adjustedby +€2 millionand amountedto €82 million; Natixis’acquisitionsof PayPlug(€14 million),Dalenys(€72 million),InvestorMutualLimited– IML (€100 million)and AltheliaEcosphere(€3 million). ● Lossesfor the periodconcernthe followingcash-generatingunits (CGUs):BanquePalatine(€53 million)and BPCE International(€13 million).In 2016, impairmentwas recordedon Coface (2) (€75 million)and BanquePalatine(€42 million).

At December 31, 2017, gross goodwill stood at € 4,247 million and total impairment stoodat € 519 million. Certain goodwill items recognized in the United States gave rise to tax amortizationover 15 years, leading to a difference between the

carrying amount of the goodwill and its tax base. This difference in treatment generated a deferred tax liability of € 311 million at December 31, 2017, compared with € 530 million at December 31,

2016 (see Note5.9).

5

Breakdown of goodwill

Carrying amount

12/31/2017

12/31/2016 (1)

in millions of euros BPCE International

28 82

43 80 53 13 14

Fidor AG

BanquePalatine Crédit Foncier

13

Other (2)

4

Othernetworks

127 163

203

SpecializedFinancialServices (2)

64 93

Insurance (1)

93

Equity interests (Coface) Retail Bankingand Insurance Asset & Wealth Management (1) Corporate& Investment Banking

281 664

282 642

2,987

3,074

77

87

TOTALGOODWILL 3,803 Under the new strategicplan,New Dimension,and in line with the creationof the new Insurancebusinessline, the InvestmentSolutionsCGUwas split into two separateCGUs:“Asset& Wealth (1) Management”and “Insurance”.Goodwillrecordedon the InvestmentSolutionsCGU in the amountof €3,093 millionas of December 31,2016was reassignedto the two new CGUs in line with the entitiesto which the goodwillrelated,sinceeachentity is assignedto just one CGU. Goodwillon S-moneytotaling€12 millionwas reassignedto SpecializedFinancialServicesafter this entitywas transferredto Natixisgroup in 2017. (2) 3,728

409

Registration document 2017