BPCE_REGISTRATION_DOCUMENT_2017

5 FINANCIAL REPORT

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

6.5

INCOME AND EXPENSES FROM OTHER

income and expensesresultingfrom the Group’s insurancebusiness ● (notably premiumincome, paid benefits and claims, and changes in technical reserves of insurance companies); income and expenses onoperatingleases; ● income and expenses on real estate development activities ● (revenues, purchases used).

ACTIVITIES This itemmainlycomprises:

income and expenses on investment property (rental income and ● expense, gains and losses on disposals, depreciation, amortization and impairment);

Fiscal year 2017

Fiscal year 2016

Income 10,802

Expense (10,928)

Net

Income

Expense

Net

in millions of euros

Incomeand expensesfrom insuranceactivities (1) Incomeand expensesfrom leasingtransactions Incomeand expensesfrom investmentproperty

(126)

20,105

(19,694)

411

285 123

(275)

10

260 111

(257)

3

(48) (82)

75 16

(47) (84)

64

Share of joint ventures

98 12

89

5 3

Transfersof expensesand income Other operatingincome andexpenses

(6)

6

9

(6)

731

(277)

454

751

(191)

560

Additions to/reversals fromprovisions toother operating income and expenses

52

52

(84)

(84)

Otherbankingincome andexpenses

841

(313)

528

849

(365)

484

TOTALINCOMEANDEXPENSES FROMOTHER ACTIVITIES 12,051 962 In 2016,the implementationof the partnershipwith CNP Assurancesconcerningreceivablesarisingfrom reinsurancetransactionslinked to reinsuredcontractswas reflectedby an entryof (1) €11.9 billionrecordedunder“Incomeand expensesfrom insuranceactivities”: incomefrom insurancecompaniesincludedthe effectof the implementationof the reinsurancetreatycovering10%of the savingsdepositoutstandingsheld by CNP; ● expensesincludedthe recognizedallocationsto technicalreserves. ● (11,564) 487 21,325 (20,363)

Income and expenses from insurance activities The statementshownbelowprovidesa transitionbetweenthe financial statements of insurance companies included in the scope of consolidationand their translation into the financial statements of BPCESA group in accordance with t e presentationapplicable tobanks.

The Group’s consolidated companies that present their financial statements based on the insurance company model are Natixis Assurances, Surassur,CEGC and Coface.

Banking format 2017

Net banking income*

Operating expenses

Gross operating income

Other items

Insurance format 2017

Insurance format 2016

in millions of euros Earnedpremiums

13,289

13,289

13,289

21,616

Revenues or income from otheractivities

246

246

246

305

Other operatingincome

28

19

47

47

19

Net financial incomebefore financecosts TOTALREVENUE FROMORDINARY ACTIVITIES

2,625

(12)

2,613

(24)

2,589

1,806

16,188 (13,356)

7

16,195

(24)

16,171 (13,470)

23,746 (21,189)

Claimsand benefits expenses Expensesfrom otheractivities

(114)

(13,470)

(14)

(14) (35)

(4)

(18) (35)

(17) (55)

Net income from reinsurancedisposals

(35)

Policy acquisitioncosts Administrative expenses

(735) (369)

(218) (385) (243)

(953) (754) (318)

1

(952) (755) (320)

(923) (681) (215)

(1) (2)

Other operatingincome andexpenses/recurring TOTALOTHER RECURRING INCOME AND EXPENSES

(75)

(14,570)

(974) (967)

(15,544)

(6)

(15,550)

(23,080)

OPERATING INCOME

1,618

651

(30)

621

666

O/w -€126 millionrecordedin “Incomeand expensesfrom insuranceactivities”(see Note 6.5). *

Income and expenses recognized for insurance policies are included under the “Income from other activities” and “Expenses from other activities” components of net banking income. Other componentsof the operating income of insuranceentities of a banking nature (interest and commissions) are reclassified under these items of net banking income.

The main reclassificationsrelate to the charging of general operating expenses by nature whereas they are charged by function in the insurance presentation.

420

Registration document 2017