AFD_REGISTRATION_DOCUMENT_2017

RISK MANAGEMENT

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BaselbIII pillarb3

4.2.4 Risk exposure and evaluation procedures 4.2.4.1 Credit risk 4.2.4.1.1 General information

Regarding risk stemming from loans, exposures that are in arrears, i.e . primarily loan risk, are monitored in the information system and are automatically downgraded as doubtful loans, in accordance with arrears rules defined by the regulations, and impairments are recorded. The approaches adopted for specific and general provisions and impairments are presented in Paragraphb6.2 of the financial statements: “Provisions” and “Impairments of loans and receivables” in the Notes to the consolidated financial statements. Ratings are reviewed on a periodic basis to ensure individual monitoring of counterparties.

Exposure to credit risk includes balance sheet risk, notably exposure to loans, equity investments, financial instruments and derivatives, as well as off-balance sheet exposures (financing commitments and guarantees given).

4.2.4.1.1.1 Credit risk exposure Balance sheet and off-balance sheet items exposed to credit risk are presented in the table below:

Assets In thousands of euros

31/12/2017 IFRS

31/12/2016 IFRS

Cash, due from central banks

1,016,778

173,209

b 33,244

35,895

Financial assets measured at fair value through profit and loss (excluding derivatives)

Financial assets available for sale

3,016,003 6,613,638 1,260,143 5,353,495 25,437,510

2,017,348 6,834,178

Loans and receivables due from credit institutions

Demand

602,068

Term

6,232,110 24,219,887

Loans and receivables due from customers

Commercial receivables Other loans to customers

b

-

25,437,510

24,219,887

Overdrafts

b b

- -

Finance lease

TOTAL LOANS AND RECEIVABLES Held-to-maturity financial assets

32,051,148

3,054,065

778,182 146,156 146,851

800,402 165,982 111,081

Equity stakes in companies accounted for by the equity method Financial assets at fair value through profit and loss (Derivatives)

Hedging derivatives

1,679,788 1,826,639

2,390,382 2,501,463

Derivatives

BALANCE SHEET TOTAL

38,868,151

36,748,363

Off-balance sheet

b

-

Firm lending commitments

11,989,375

10,656,145

Financial guarantees

584,957

528,360

OFF-BALANCE SHEET TOTAL

12,574,332 51,442,482

11,184,505 47,932,868

GRAND TOTAL

4.2.4.1.1.2 Breakdown by major credit exposure category, type of counterparty and geographic area The geographic spread (foreign countries/French Overseas Departments and Collectivities) and the breakdown by type of

activity (sovereign/non-sovereign) for the gross loan portfolio is discussed in Chapterb5.3.1 “Consolidated balance sheet”. The different types of financial assets are detailed in Noteb3bto the consolidated financial statements – “Financial investments”.

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REGISTRATION DOCUMENT 2017

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