BPCE_REGISTRATION_DOCUMENT_2017

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

PROVISIONS 5.19 Provisionsare detailedin the tablebelow:

Reversals unused

Other changes (1)

12/31/2017

01/01/2017

Increase

Use

in millionsof euros

Provisions for employee benefit commitments (2)

1,096

124

(172)

(114)

(30)

904

Provisions for restructuring costs (3)

56

17

(19) (60)

(9)

45

Legal andtax risks (4)

1,073

267

(66)

(86)

1,128

Loan and guarantee commitments

110

41

(2)

(41)

(41)

67

Provisions for regulated home savings products

4

4

Other operatingprovisions TOTALPROVISIONS

693

158 607

(90)

(99)

15

677

3,032 2,825 Otherchangesincludeprimarilythe variationin revaluationdifferenceson employeebenefits(-€7 millionbeforetax) and the impactsrelatedto changesin the scopeof consolidationand foreign (1) exchangerate adjustments(-€116 million). O/w €824 millionfor post-employmentdefined-benefitplansand other long-termemployeebenefits(see Note 9.2.1). (2) At December 31,2017,provisionsfor restructuringcostsnotably included: (3) €2 millionfor the workforceadjustmentplan at Natixiscompletedin 2015 (€6 millionat December 31,2016); ● €31 millionin provisionsfor restructuringcosts for the COFACEplan (€42 millionat December 31,2016). ● Provisionsfor legaland tax risks included€389 millionfor the net insuranceexposureon the Madofffraud.The insuranceamounttotals€123 millionfor disputesrelatingto this case.The provision (4) for Madoffnet outstandingstotaled€480 millionat December 31,2016. (343) (329) (142)

SUBORDINATED DEBT 5.20 Subordinateddebt differs from other debt and bonds in that it will be repaid only after all the senior and unsecured creditors, but before the repayment of participating loans and securities and deeply subordinated notes.

5

12/31/2017

12/31/2016

in millionsof euros

Termsubordinated debt Perpetualsubordinated debt Subordinated debtand similar

15,902

19,027

312

312

16,214

19,339

Accrued interest

322 489

367 658

Revaluation ofthe hedged component TOTALSUBORDINATEDDEBT

17,025

20,364

The fair valueof subordinateddebt is presented inNote 15.

Changes in subordinated debt and similar during the year

12/31/2017

01/01/2017

Issuance (1)

Redemption (2) Other changes (3)

in millions of euros

Termsubordinated debt Perpetualsubordinated debt

19,027

(2,214)

(911)

15,902

312

312

SUBORDINATEDDEBT AND SIMILAR

19,339

(2,214)

(911)

16,214

No new issuancewas made in the 2017 fiscal year. (1) Redemptionsof subordinatedborrowingsand securitiesspecificallyinvolved: (2)

the maturingof subordinatedsecurities issuedby BPCE in the amountof €1,713 million,in 2017; ● the maturingof subordinatedsecurities issuedby Natixis in the amountof €500 million,in 2017. ● Otherchangesmainly includedthe revaluationof debtssubjectto hedging,foreignexchangefluctuationsand variationsin intra-groupsecuritiesheld by NatixisFundingfor the purposesof (3) market-makingwith respectto Natixis’debt on the secondarymarket.

Deeply subordinatednotes qualifying as equity instruments are presented in Note

5.21.

413

Registration document 2017