BPCE - 2018 Registration document

5 FINANCIAL REPORT

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

Amounts recognized in net income

Fiscal year 2018

Fiscal year 2017

in millions of euros

OPERATING LEASES Minimum payments

(495)

(499)

Contingent rental payments included in expenses for the period

(12)

(20)

Income from subleasing activities

10

9

Transactions with company directors 12.3.2 The Group’s company directors are the members of the Management Board and Supervisory Board of BPCE. The short-term benefits, post-employment benefits, long-term benefits and termination benefits of BPCE’s company directors are described in the “Pay, benefits in kind, loans, guarantees and attendance fees received by BPCE company directors” section of Chapter 3 of the registration document, on Corporate Governance. Short-term employee benefits Short-term benefits paid out to the Group’s company directors amounted to € 9 million in 2018 ( vs. € 6 million in 2017). These include remuneration, directors’ attendance fees and benefits paid to members of the Management Board and Supervisory Board. Post-employment benefit commitments, long-term benefits and termination benefits Post-employment benefit commitments, long-term benefits and termination benefits of BPCE’s company directors are described in the “Rules and principles governing the determination of pay and benefits” section in Chapter 3 of the registration document on Corporate Governance. The amount provisioned by BPCE in respect of retirement bonuses came to € 2 million at December 31, 2018 ( € 3 million at December 31, 2017). Relations with social housing companies 12.3.3 Groupe BPCE is a longstanding partner in the HLM social housing movement in France and a key player in the social housing production process. The Group acts as an operator (the leading privately-owned bank involved in the construction of social housing which it finances in particular through Livret A passbook savings account deposits) and is one of the main distributors of State-sponsored loans for the construction of rental housing for low-income families. The Group is also the sole major shareholder in certain social housing companies. In view of the economic substance of the Group’s dealings with the social housing sector, where organizations are subject to specific regulations, some social housing companies have been classified as related parties.

RELATED PARTY TRANSACTIONS 12.3 For Groupe BPCE, related parties are considered to be all consolidated companies, including companies carried under the equity method, and the Group’s key management personnel. The Social Housing Companies in which the Group is the sole major shareholder are also covered. Transactions with consolidated companies 12.3.1 All intercompany transactions carried out during the period and balances outstanding at the end of the period with fully consolidated companies are eliminated in full on consolidation. The statement below only provides data on intercompany transactions concerning: companies over which the Group exercises joint control (joint ● operations) in respect of the non-eliminated portion: no significant transactions were identified in this category; entities over which the Group exercises significant influence and ● which are equity-accounted (associates). The significant transactions that have been identified were carried out with CNP Assurances group: under a sales agreement, the Group received commission income - amounting to € 1,033 million in 2018 ( € 974 million in 2017), for the management of the Group’s pension plans, reimbursement - rights of € 441 million were recorded to cover post-employment benefits (see Note 10.2.2), under a partnership agreement that took effect on January 1, - 2016, a cash deposit of € 11.6 billion was recorded under “Loans and receivables due from customers” (see Note 9.1.1.4). This cash deposit is backed by technical reserves recognized for an identical amount under liabilities in the balance sheet representing commitments to insured parties. Insurance expenses and income relating to reinsured policies are recorded as “Income and expenses from other activities” (see Note 6.6). A list of fully consolidated subsidiaries is presented in Note 18, “Scope of consolidation”.

Banking transactions with social housing companies

12/31/2018

12/31/2017

in millions of euros Loans outstanding Commitments given

1,701

1,819

127 722

195 665

Deposit account balances

Outstanding financial investments (UCITS and securities)

40

36

368

Registration document 2018