BPCE - 2018 Registration document

6 RISK REPORT

Capital management and capital adequacy

ADDITIONAL TIER 1 (AT1) CAPITAL Additional Tier 1 capital includes: subordinated instruments issued in compliance with the restrictive ● eligibility criteria set forth by CRR Article 52;

additional paid-in capital related to these instruments. ● The following deductions are made:

equity interests in eligible banking, financial and insurance ● institutions, according to the rules on allowances for these holdings and the phase-in period.

CHANGES IN AT1 CAPITAL ➡

AT1 capital

in millions of euros

12/31/2017 Redemptions

448

(266)

Issues

0

Foreign exchange effect Phase-in adjustments

31

130 344

12/31/2018

TIER 2 CAPITAL Tier 2 capital consists of: subordinated instruments issued in compliance with the restrictive ● eligibility criteria set forth by CRR Article 63; additional paid-in capital related to Tier 2 items; ●

the amount arising from provisions in excess of expected losses (in ● this calculation, performing loans are clearly separated from loans in default). The following deductions are made: equity interests in eligible banking, financial and insurance ● institutions, according to the rules on allowances for these holdings and the phase-in period.

CHANGES IN TIER 2 CAPITAL ➡

Tier 2 capital

in millions of euros

12/31/2017

14,557

Redemption of subordinated notes

(9)

Prudential haircut

(387)

New subordinated note issues

0

Phase-in deductions and adjustments

(152)

Foreign exchange effect

351

12/31/2018

14,360

622

Registration document 2018