BPCE_REGISTRATION_DOCUMENT_2017

5 FINANCIAL REPORT

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

Securitizations consolidated with outside investors Securitizations consolidated with outside investors constitute an asset transfer according to the amendment to IFRS 7. The Group has an indirect contractual obligation to transfer to outside investors the cash flow from assets transferred to the securitizationfund (althoughthese assets are included in the Group’s balance sheet through the consolidationof the fund). In the interest of transparency, for consolidated securitization transactions: the share of receivables sold attributable to external investors is ● considered to be pledged as collateral to third parties; the share of receivables sold attributable to units and bonds ● subscribedfor by the Group, and eliminatedin consolidation,is not considered to be pledged as collateral unless these securities were brought to Groupe BPCE’s single treasury and central bank collateral management pool and used as part of a refinancing mechanism. Comments on financial assets pledged as collateral 13.1.2 but not transferred Financial assets provided as collateral but not transferred are generally pledged. The main mechanisms involved are Banques Populaires Covered Bonds, the CRH (Caisse de refinancement de l’habitat), and securities pledged as collateral for ECB refinancing operations. Moreover, in accordance with French law, the intrinsic guarantees attached to issues of covered bonds is not recognized under

guarantee commitments given. The covered bonds issued by Compagnie de Financement Foncier benefit from a legal privilege comprised of eligible assets. Financial assets received as collateral that can be 13.1.3 sold or repledged This heading covers financial assets received as security under financial guarantee agreementswith the right to reuse the assets in the absenceof any default onthe part of the owner of the guarantee. The fair value of the financial assets received as collateral that BPCE SA group may sell or repledge amounted to € 207 billion at December31, 2017,compared to € 197 billion at December31, 2016. The fair value of the financial assets received as collateral that were actually sold or repledgedamountedto € 136 billion at December 31, 2017, compared with € 114 billion at December31, 2016. FULLY DERECOGNIZED FINANCIAL ASSETS 13.2 FOR WHICH THE GROUP RETAINS AN ONGOING COMMITMENT Fully derecognized transferred financial assets for which BPCE SA group retains an ongoing commitmentconsist of asset transfers to a deconsolidated securitization vehicle in which the Group has an interest or an obligation,althoughthe latter do not call into question the transfer of almost all of the benefits and risks relating to the assets transferred. Ongoing commitments retained by the Group in relation to securitization vehicles were not significant on December31, 2017.

Note 14

Finance and operating leases

LEASING TRANSACTIONS AS LESSOR 14.1

12/31/2017

12/31/2016

Term outstanding

Term outstanding

≥ 1 year to < 5 years > 5 years

≥ 1 year to < 5 years > 5 years

< 1 year

Total

< 1 year

Total

in millions of euros Finance leases Gross investment

2,557 6,697 4,202 13,456 2,308 6,202 4,110 12,620

Present valueof minimum leasepayments receivable

2,272 6,150 3,560 11,982 2,045 5,576 3,223 10,844

Financialincome not received

177

556

704

1,437

187

650

769

1,606

Operatingleases Minimum leasepaymentsreceivable on non-cancellable contracts

37

96

63

196

35

103

2

140

438

Registration document 2017