BPCE_REGISTRATION_DOCUMENT_2017

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

Note 7

Exposure to risks

Information relating to capital management as well as regulatory ratios are presented in the Risk Management section. Information on financial assets with past due payments and remodeling due to financial difficulties is provided in the section on “Credit Risk”in Chapter 3 – “Risk Management”. Informationon liquidityrisk (analysisof financialassets and liabilities and commitments by contractual maturity date) is provided in the section on “Liquidity, Interest Rate and Exchange Rate Risks” in Chapter3 – “Risk Management”. 7.1 Certain disclosures relating to risk management required by IFRS 7 are also provided inthe risk management report. They include: the breakdownof the loan portfolio by category of gross exposure ● and approach; the breakdown of gross exposures by category and approach ● (separation of credit and counterparty risk); the breakdown of gross exposure by geographicregion; ● CREDIT RISK AND COUNTERPARTY RISK

This information forms an integral part of the financial statements certified by the Statutory Auditors. 7.1.1 Credit risk arises whenever a counterparty is unable to meet its paymentobligationsand may result from a reductionin credit quality or even default by thecounterparty. Commitmentsexposed to credit risk consist of existing or potential receivables and particularly loans, debt securities, equities, performance swaps, performance bonds, or confirmed or undrawn facilities. Credit risk management procedures and assessment methods, risk concentration, the quality of performing financial assets, and the analysis and breakdown of outstandings are described in the risk managementreport. 7.1.2 The statementbelow shows the credit and counterpartyrisk exposure for all BPCE SA group’s financial assets. This exposure to credit risk (determined without taking into account the impact of any unrecognized netting or collateral agreements) and to counterparty risk is based onthe carrying amountof the financial assets. Measurement and management of credit risk Total exposure to credit risk and counterparty risk

concentration of credit risk by borrower; ● the breakdown of exposure by credit rating. ●

Net outstandings at 12/31/2017

Performing loans

Non-performing loans

Impairments and provisions

Net outstandings at 12/31/2016

5

in millionsof euros

Financial assetsat fair value throughprofit or loss (excluding variable-income securities)

110,809

110,809

123,241

Hedgingderivatives

8,606

8,606

13,205

Available-for-salefinancial assets(excluding variable-income securities)

55,349 121,591 225,637

102

(59) (69)

55,392

52,732

Loans and receivablesdue from creditinstitutions Loans and receivablesdue from customers*

63

121,585

123,323

9,045

(3,541)

231,141

236,897

Held-to-maturity financial assets

2,125

3

(2)

2,126

3,035

Prepaid expensesand otherassetsrelatedto insurance activities

1,958

595 878

(371) (159)

2,182

2,113

Other debtors

14,570 540,645 99,716

15,289

13,001

Exposure to balancesheet commitments Exposure to off-balancesheet commitments TOTALCREDIT AND COUNTERPARTY RISK EXPOSURE AT DECEMBER 31, 2017 TOTALCREDIT AND COUNTERPARTY RISK EXPOSURE AT DECEMBER 31, 2016

10,686

(4,201)

547,130

567,547

330

(67)

99,979

108,603

640,361

11,016

(4,268)

647,109

676,150

669,162

11,552

(4,564)

676,150

Excludingdepositsof €10,190 millionwith CNP under the reinsurancetreaty. *

423

Registration document 2017