BPCE_REGISTRATION_DOCUMENT_2017

5 FINANCIAL REPORT

Controls of accounting and financial reporting quality

performingaccountingservicesand preparingregulatoryreports for ● BPCE SA group and the entities under its authority. In addition,the Group Accountingdivision supportsthe businesslines of the Group Finance and Strategy division in managing financial information systems projects and helps preserve individual and communityfinancialstandards,for all functionscomprisingthe Group Financeand Strategy divisionand for shareholder institutions. Finance Control The finance control functionis responsiblefor preparingmanagement information. Within Groupe BPCE, each entity’s Finance Control office is in charge of operational coordination and is responsible for producing such information for the entity and for the central institution. Within BPCE, this role is carried out by the Group Steering and Strategy division, the head of which reports to the Chief Executive Officer in charge of Group Finance, Strategy, Legal Affairs and the Secretary’s Office of the Board. In this area, its mainduties are: coordinating the steering of the financial planning, budget and ● multi-year rolling forecast process; coordinatingthe steering of commercialperformancein support of ● the CommercialBanking and Insurancedivision; coordinating solvency matters (capital adequacy and leverage ● ratios, TLAC, MREL, etc.) and the Pillar II approachwithin the Group (stress tests,ICAAP,solvency matters, Business Model Assessment); coordinating and monitoring the managementof scarce resources ● within theGroup (cost-effectiveness, capital/solvency,liquidity); analyzing the performance of Groupe BPCE, its business lines and ● entities,especiallyduring the publication of each quarter’s results; steering and challengingthe subsidiaries’financialperformancesto ● safeguard the Group’s financial ratios; GENERAL FRAMEWORK AND PREPARATION OF CONSOLIDATED ACCOUNTING AND FINANCIAL DATA The central institutionprepares the consolidatedfinancialstatements of Groupe BPCE and its individual company financial statements. It oversees and produces Groupe BPCE’s consolidatedratios, as well as those of affiliatedinstitutionsthroughregulatory reporting. The central institution also ensures that Groupe BPCE’s affiliated institutionscorrectlyapply accounting and prudential rules. To guarantee the reliability of the process, the Group Finance and Strategy divisionrelies on: an adapted body of standards distributed to all Group entities; ● the uniformity of a consolidated IT system that guarantees ● consistent treatmentand analysis; 5.8.2

carrying out benchmarking and monitoring the performance and ● strategic guidelines of competitors; coordinating and steering approaches for the analysis of the ● Group’s operating costs; helping prepare the Group strategic and financial plans; ● coordinating the FinanceControl process within Groupe BPCE. ● Investor Relations The Investor Relations function is responsible for information published through presentations to financial analysts and institutional investors on the BPCE website and for registration documentsand their updatesfiled with the AMF and also availableon the BPCE website. Within BPCE, the function is performed by the Group Funding and Investor Relations division (within the Group Finance division), the head of which reports to the Chief Financial Officer. Its duties in this area are as follows: coordinating and preparing presentations of Groupe BPCE’s ● quarterly results, financial structure and business development,to enable third parties to form an opinion on its financial strength, profitabilityand outlook; coordinatingand preparing the presentationof regulated financial ● information(registrationdocument and its quarterly updates) filed with the AMF while including contributions from other BPCE offices; organizing relations with rating agencies by coordinatingwith the ● other ratedentities of Groupe BPCE; organizingand maintainingrelationshipswith credit investorslikely ● to hold and/or acquire debt instruments (short, medium or long term) issued by BPCE or Natixis. a comprehensivebody of documents in line with requirementsset ● out in Articles 3 e), 11 e), 255 and 256 of the MinisterialOrder of November3, 2014 oninternalcontrol; a standardized control mechanism for accounting and financial ● data, thestructure of which isdescribed inSection5.8.3 below. Groupe BPCE institutions publishing financial statements on a consolidatedbasisunderIFRS are all of the BanquePopulairebanksand Caisses d’Epargne and the Group’s main subsidiaries:Natixis, Crédit Foncier, Banque Palatine and BPCE International. The body of standards As part of the monitoringand correct applicationof accountingand prudential rules, BPCE’s Group Finance and Strategy division has designed and implemented a body of standards based on: the definition and disseminationof accountingpolicies for Groupe ● BPCE, both for French GAAP and international (IFRS) accounting standards; the implementationof a consolidationstandard aimed at ensuring ● the reliability of the process of collecting consolidatedaccounting, tax or prudentialdata.

Production processes for accounting and financial data

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Registration document 2017