BPCE_REGISTRATION_DOCUMENT_2017

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

Loyalty and performance plans settled in cash

are recorded under “Other long-term employee benefits”. The estimated expense accounts for an actuarial estimate of these conditions being met. It is spread over the vesting period for the benefits. The amount recognized in respect of fiscalyear 2017 was:

Some employeesare awarded loyalty and performancebonuses with deferred payment in cash. These bonuses are subject to attendance and performanceconditions.In terms of accountingtreatment,they

Fiscal year 2017 (in millions of euros)

Fiscal year 2016 (in millions of euros)

Year of plan

Grant date

Vesting date March 2014 March 2015 March 2016 March 2015 March 2016 March 2017 March 2016 March 2017 March 2018 March 2017 March 2018 March 2018 March 2019 March 2019 March 2020

2012 plan

02/17/2013

2013 plan

02/19/2014

(3)

2014 plan

02/18/2015

(3)

(7)

2015 plan

02/10/2016

(6)

(16)

2016 plan

04/10/2017

(16)

(16)

2017 plan

02/23/2018

(20) (44)

TOTAL

(42)

5

Note 10

Segment reporting

BPCE SA group redefined its business lines in the TEC 2020 strategic plan presented on November 29, 2017, notably making the decision to split up the InvestmentSolutions,Corporate& InvestmentBanking and Specialized Financial Services division. The Investment Solutions sub-division’s Insurance business line and the Specialized Financial Services sub-division were transferred to the Retail Banking and Insurancedivision. Specialized Financial Services (SFS), a Natixis business line ● encompassing specialized financing activities (factoring, leasing, consumer credit, sureties and financial guarantees),payments and financial services; Insurance, a Natixis business line serving the Groupe BPCE ● networks and their customers; Other networks, which comprise Crédit Foncier group, BPCE ● International (BPCE I) and Banque Palatine. Asset &Wealth Management,a Natixisbusiness line consisting of: Asset Management, which operates on several international ● markets, combining expertise in investment management and distribution; Wealth Management, with Natixis Wealth Management, which ● offers wealth management and financing solutions for large private-sectorinvestors. The Group now has three core business divisions: Retail Banking andInsurance, which includes:

Corporate &Investment Banking, adivisionof Natixis: Corporate & Investment Banking advises and supports corporates, ● institutional investors, insurance companies, banks and public sector entities. The Corporate Center, which primarily includes: the Group’s centralinstitution and holding companies; ● Natixis’equity interestsin Coface,CorporateData Solutions,Natixis ● Algérie and NatixisPrivate Equity; unlistedinvestmentsand cross-business activities; ● items related to goodwillimpairmentand amortizationof valuation ● differences, which are associated with the Group’s equity interest acquisition strategy; the contribution to the Single Resolution Fund and the Deposit ● GuaranteeFund; As of the publicationof the 2017 annual results, the presentationof the business divisions reflects these segment reporting amendments, in addition to changes in the capital allocation standards applied by Natixis (Basel III average RWA increased to 10.5% versus 10% previously)and in the rate of return on capital (lowered to 2% from 3% previously). The segment reporting information of BPCE SA group has been restated accordingly for previous reporting periods.

433

Registration document 2017