BPCE_REGISTRATION_DOCUMENT_2017

5 FINANCIAL REPORT

BPCE parent company financial statements

The average headcountduring the year, broken down by professional category, was as follows: 1,404 managers and 107 non-managers, representing atotal of 1,511persons.

The Employmentand CompetitivenessTax Credit (CICE) is deducted from payroll costs. The use of this tax is presented in the “Social, environmentaland societal information” section of the registration document.

5.8

COST OF RISK

Fiscal year 2017

Fiscal year 2016

Recoveries of bad debts written off

Recoveries of bad debts written off

Reversals and uses of funds Losses

Reversals and uses of funds Losses

Charges

Total

Charges

Total

in millions of euros Impairmentofassets Interbank

0 0

0 1 0 3 0 0

Customers

1 3

Securities portfolio and othereceivables Provisions Off-balancesheet commitments Provisions for customer c edit risks

(2)

(2)

(3)

1

1 0 0

41

(38)

Other

TOTAL

0

1

(2)

0

(1)

0

45

(41)

0

4

o/w: reversals ofobsolete impairment charges reversals ofutilizedimpairmentcharges

1 3 4

reversals ofobsolete provisions reversals ofutilizedprovisions

1

37 45

Netamountofreversals

1

5.9

GAINS OR LOSSES ON LONG-TERM INVESTMENTS

Fiscal year 2017

Fiscal year 2016

Equity interests and other long-term investments

Property, plant and equipment and intangible assets

Equity interests and other long-term investments

Property, plant and equipment and intangible assets

Held-to- maturity securities

Held-to- maturity securities

Total

Total

in millions of euros

Impairment Charges

(262)

(262)

(1,090)

(1,090)

Reversals

521

521

8

8

Net gain/(loss) ondisposal

10

(7) (7)

3

867

349 349

1,216

TOTAL

269

0

262

(215)

0

134

Société d’ExploitationMAB ( € 1 million); - use of provisionsfor impairment of investments in associates: ● EuropayFrance ( € 11 million); - profit or loss on the sale of investments in associates and other ● long-term securities: S-money: capital gain of € 21 million, - EuropayFrance: capital loss of € 11 million; - the impact on held-to-maturitysecuritiesmainly relate to FCC SLM ● Student Loan Trust securities for acapitalloss of € 16 million.

Gains or losses on investments in associates, Equity interests, affiliates and otherlong-term investments included specifically: provisionsfor impairment of investments in associates: ● BPCE International ( € 122 million), - Crédit Foncier ( € 96 million), - Banque Palatine ( € 30 million); - reversalsof provisionsfor impairment of investments in associates: ● Natixis ( € 452 million), - BPCE ImmobilierExploitation( € 56 million), -

500

Registration document 2017