BPCE_REGISTRATION_DOCUMENT_2017

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

OPERATING EXPENSES 6.6 Operating expenses include mainly payroll costs (wages and salaries net of rebilled amounts), social security charges, and employee benefit expenses suchas pension costs.Operating expenses also includethe full amount of administrative expenses and external services costs.

Fiscal year 2017

Fiscal year 2016

in millionsof euros Payroll costs

(4,864)

(4,646)

Taxes other than on income

(470)

(396)

External servicesand otheroperatingexpenses

(2,468) (2,938) (7,802)

(2,347) (2,743) (7,389)

Otheradministrativecosts

TOTALOPERATINGEXPENSES

COST OF RISK 6.7 This item recordsnet impairmentchargesfor credit risks, regardlessof whether the impairment is calculated on an individual or collective basis for aportfolioof similarreceivables. Impairmentlosses are recognized for both loans and receivables and fixed-income securities when there is a known counterparty risk. Losses related to other types of instruments(derivativesor securities designatedat fair value through profit or loss) recordedas a result of default by credit institutions are also included under this item.

Taxes other than on income included, in particular, the contribution to the SRF (Single Resolution Fund) for an annual amount of € 200 million ( versus € 165 million in 2016) and the systemic risk tax for an annualamount of € 39 million ( versus € 47 million in2016). The breakdownof payrollcosts is providedin Note 9.1.

Cost of risk for the period

5

Fiscal year 2017

Fiscal year 2016

in millionsof euros

Net chargeto provisionsand provisions for impairment

(432)

(455)

Recoveries ofbad debtswrittenoff

19

36

Irrecoverableloans not coveredby provisionsfor impairment

(98)

(89)

TOTALCOST OF RISK

(511)

(508)

Cost of risk for the period by type of asset

Fiscal year 2017

Fiscal year 2016

in millions of euros

Interbanktransactions Customer transactions Other financialassets TOTALCOST OF RISK

(12)

4

(486)

(469)

(13)

(43)

(511)

(508)

GAINS OR LOSSES ON OTHER ASSETS 6.8 This item includes gains and losses on disposalsof property,plant and equipmentand intangibleassets, as well as gains and losses on disposals of consolidatedinvestmentsin associates.

Fiscal year 2017

Fiscal year 2016

in millionsof euros

Gains or losseson disposalsof property,plant and equipment and intangible assets used in operations

94 10

134

Gains or losseson disposalsof consolidated investments TOTALGAINS ORLOSSESON OTHERASSETS

36

104

170

421

Registration document 2017