BPCE - 2018 Registration document

5 FINANCIAL REPORT

IFRS Consolidated Financial Statements of Groupe BPCE as at December 31, 2018

Note 12

Other information

SEGMENT REPORTING 12.1 The Group has three core businesses: Retail Banking and Insurance, which includes:

Wealth Management, with Natixis Wealth Management, which ● offers wealth management and financing solutions for large private-sector investors. Corporate & Investment Banking, a division of 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 central institution and holding companies; ● Natixis’ equity interests in Coface, Corporate Data Solutions, Natixis ● Algérie and Natixis Private Equity; unlisted investments and cross-business activities; ● items related to goodwill impairment and the amortization of ● valuation differences, as these items form part of the Group’s acquisition and investment strategy; the contribution to the Single Resolution Fund and the Deposit ● Guarantee Fund.

the Banque Populaire network, comprising the 14 Banque Populaire ● banks and their subsidiaries, Crédit Maritime Mutuel, and the Mutual Guarantee Companies; the Caisse d’Epargne network, consisting of the 15 Caisses ● d’Epargne; 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 Natixis business line consisting of: Asset Management, which operates on several international ● markets, combining expertise in investment management and distribution; Segment analysis of the consolidated income statement 12.1.1 Results by division*

Retail Banking and Insurance

Asset & Wealth Management

Corporate & Investment Banking

Corporate center

Groupe BPCE

2018

2018 3,419 (2,264) 1,154

2018 3,237 (2,193) 1,045

2018

2018

2017 pf 16,683 (11,494)

2017

2017

2017 pf

2017

in millions of euros Net banking income Operating expenses

16,795 (11,772)

3,113 (2,178)

3,581 (2,194) 1,387

550

342

24,001 (17,687)

23,720 (17,099)

(1,458)

(1,233)

6,314

6,621

Gross operating income

5,023

5,189

936

(908)

(891)

Cost/income ratio

70.1% 68.9% 66.2% 69.9% 67.7% 61.3%

ns

ns

73.7% 72.1%

Cost of risk

(1,072)

(1,105)

(1)

-

(175)

(115)

(51)

(164)

(1,299)

(1,384)

Share in income of equity-accounted associates Gains or losses on other assets Change in the value of goodwill

44

49

3

1

12

10 18

226

216

284

276

(40)

(29)

43

13

3

9

86

15

88

-

-

-

-

-

-

(16)

(85)

(16)

(85)

5,297 (1,477)

5,516

Income before tax

3,956

4,104

1,198 (323) (415)

950

884

1,300 (380) (269)

(742)

(838)

Income tax

(1,289)

(1,334)

(329) (276)

(235) (194)

370 (14)

232

(1,811)

Non-controlling interests

(170)

(136)

1

(793)

(681)

NET INCOME ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT Transition from pro forma to reportable net income

2,496

2,634

460

345

455

651

(386)

(605)

3,026

3,024

(8)

8

REPORTABLE NET INCOME ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT *

2,496 3,024 2017 segment information for Groupe BPCE is stated pro forma of the transfer of Ouest Croissance from the Corporate center to the Banque Populaire network (Retail Banking and Insurance division). * 2 634 460 345 455 651 (386) (605) 3,026

364

Registration document 2018