BPCE_REGISTRATION_DOCUMENT_2017

5 FINANCIAL REPORT

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

are enteredinto with the same clearing house, - have thesamematurity date, - involve thesame custodian, - are denominated inthe same currency. -

OFFSETTING FINANCIAL ASSETS 5.24 AND FINANCIAL LIABILITIES

Financial assets and liabilities were offset on the balance sheet in accordance with IAS 32. Under this standard, a financial asset and financial liability are offset and a net balance is recorded in the balance sheet if and only if: the Group has the legally enforceableright to offset the recorded ● amounts;and it has the intention either to settle the net amount or to ● simultaneously realize the asset and settle the liability. Within BPCE SA group, most offset amounts are the result of repurchase agreements and derivatives transactions mostly carried out by Natixis with clearing houses, which fulfilled the requirements of IAS 32: for OTC derivatives,this involves the effects of the currency offset ● between asset valuations and liabilityvaluations of the derivatives; for asset switch transactions that have similar nominal amounts ● and identical maturities and currencies, the Group presents them as a single financial asset or liability; for listed derivatives, the positions recorded under the respective ● asset and liability items for: index options and futures options are offset by maturity and by - currency, equity options are offsetby ISIN code and maturity date; - for repurchase agreements, the amount recorded in the balance ● sheet corresponds to the net value of repurchase and reverse repurchase agreements that:

Financial assets and liabilities “Under netting agreementsnot offset in the balance sheet” comprise transactions under netting agreements or similar agreements, but that do not meet the restrictivenetting criteria set by IAS 32. This is particularlythe case for derivatives or OTC repurchase agreements subject to master agreementsunder which the net settlementcriteria or realizationof a simultaneous settlement of the asset and liability cannot be demonstratedor for which the offsettingright can only be exercised in the event of default, insolvency or bankruptcy by one of the parties to the agreement. For these instruments, the “Related financial assets and financial instruments received as collateral” and “Related financial liabilities and financial instruments pledged as collateral”include inparticular: for repurchase agreements: ● loans or borrowings resulting from reverse repurchase - agreementswith the same counterparty,and securities pledged or received ascollateral (for the fair value of saidsecurities), margin calls in the form of securities (for the fair value of said - securities); for derivatives,the fair values of the reverse transactionswith the ● same counterparty, as well as the margin calls in the form of securities. Margin calls received or paid in cash are shown in “Margin calls received (cashcollateral)” and “Margin calls paid (cash collateral).”

Financial assets 5.24.1

Financial assets under netting agreements offset in the balance sheet

12/31/2017

12/31/2016

Gross amount of financial liabilities offset in the balance sheet

Gross amount of financial liabilities offset in the balance sheet

Net amount of financial assets recognized in the balance sheet

Net amount of financial assets recognized in the balance sheet

Gross amount of financial assets

Gross amount of financial assets

in millions of euros  

Derivatives (tradingand hedging)

77,224 44,551 121,775

17,426

59,798 36,086 95,884

90,508 49,879 140,387

19,705

70,803 42,377

Repurchase agreements

8,465

7,502

Financial assetsat fair value

25,891

27,207

113,180

Repurchase agreements (loansand receivables portfolio)

62,972 184,747

6,459

56,513

66,274

12,572

53,702

TOTAL

32,350

152,397

206,661

39,779

166,882

416

Registration document 2017