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2E Actu DRF 2009 02 Second registration document update and interim financial reports year ended june 30, 2010 AMF The first update to the 2009 Registration document was submitted to France’s financial market authority ( Autorité des marchés financiers - AMF ) on May 20, 2010 under N°.D.10-0169-A01. The 2009 Registration document was filed with the Autorité des marchés financiers on May 10, 2010 under N°.R.10-035. This document is an English-language translation of the French “Deuxième actualisation du document de référence” submitted to France’s financial market authority (Autorité des marchés financiers) on August 31, 2010 in compliance with Article 212-13 of the AMF’s standard regulations. Only the original French version can be used to support a financial transaction, provided it is accompanied by an Information notice “note d’opération” duly certified by the Autorité des marchés financiers. The English version of this report is a free translation from the original which was prepared in French. All possible care has been taken to ensure that the translation is an accurate presentation of the original. However, in matters of interpretation, views or opinion expressed in the original language version of the document in French take precedence over the translation. TABLE OF CONTENTS chapter 1 2010 interim management report ........................................................................................ 4 1.1. Highlights of the first half of 2010 ..........................................................................................................4 1.2. Groupe BPCE results.............................................................................................................................4 1.3. Groupe BPCE activities and results by sector ...........................................................................................6 1.3.1. Definition of the Group's segments ..............................................................................................6 1.3.2. Summary of results by sector .....................................................................................................7 1.3.3. Commercial Banking and Insurance .............................................................................................7 1.3.4. Corporate and Investment Banking, Investment Solutions, and Specialized Financial Services .......... 12 1.3.5. Equity Investments.................................................................................................................. 15 1.3.6. Run-off Operations and Other Activities...................................................................................... 17 1.4. BPCE SA group results ........................................................................................................................ 17 1.5. Subsequent events and outlook for the second half of 2010 ................................................................... 19 1.6 Main risks and uncertainties for the next six months............................................................................... 19 Chapter 2 Risk management .............................................................................................................. 20 2.1. Information relating to credit and counterparty risk................................................................................ 20 Credit and counterparty risk management organization ......................................................................... 20 Work carried out in the first half of 2010 ............................................................................................. 20 Breakdown of the loan portfolio by exposure category........................................................................... 20 Breakdown by region (gross exposure in millions of euros at June 30, 2010)........................................... 21 Breakdown by sector (gross exposure) ................................................................................................ 21 Concentration by borrower................................................................................................................. 22 Exposures by credit quality ................................................................................................................ 22 2.2. Market risk........................................................................................................................................ 22 Market risk management ................................................................................................................... 22 Market risk measurement methods ..................................................................................................... 23 Market risk measurement quantitative data ......................................................................................... 24 Stress testing results ........................................................................................................................ 25 Global stress tests at June 30, 2010 (in millions of euros)...................................................................... 25 Global stress tests for Natixis and BRED Banque Populaire (in millions of euros):...................................... 25 2.3. Liquidity and interest rate risk ............................................................................................................. 26 Liquidity risk .................................................................................................................................... 27 Interest rate risk .............................................................................................................................. 27 2.4. Risks relating to the BPCE guarantee for Natixis concerning part of GAPC ................................................. 27 2.5. Risks relating to the proprietary activities of Caisse Nationale des Caisses d’Epargne (CNCE)...................... 29 2.6. Financial Stability Forum recommendations concerning financial transparency .......................................... 30 Summary of sensitive exposures ........................................................................................................ 30 Sensitive exposures excluding Natixis.................................................................................................. 30 Natixis's sensitive exposures .............................................................................................................. 33 2.7. Legal risks......................................................................................................................................... 37 2.7.1 Proceedings subject to change during the first half of 2010........................................................... 37 2.7.2 Subsequent legal risks .............................................................................................................. 40 Chapter 3 Corporate Governance ....................................................................................................... 41 3.1 BPCE Combined General Shareholders’ Meeting ...................................................................................... 41 3.1.1 Resolutions submitted to the Ordinary Shareholders’ Meeting ........................................................ 41 3.1.2 Resolutions submitted to the Extraordinary Shareholders’ Meeting.................................................. 43 3.2 BPCE Supervisory Board as at June 30, 2010.......................................................................................... 43 3.2.1 Specialist committees as at June 30, 2010 .................................................................................. 44 3.3. Composition of the Management Board, the Executive Management Committee and the Executive Committee of BPCE at June 30, 2010 ........................................................................ 44 3.3.1 Management Board................................................................................................................... 44 3.3.2 Executive Management Committee ............................................................................................. 45 3.3.3 Executive Committee ................................................................................................................ 45 Chapter 4 Financial information ......................................................................................................... 46 4.1. Groupe BPCE IFRS condensed interim consolidated financial statements at June 30, 2010 ......................... 46 4.1.1 Consolidated balance sheet........................................................................................................ 46 4.1.2 Consolidated income statement.................................................................................................. 47 4.1.3 Statement of comprehensive income .......................................................................................... 48 4.1.4 Statement of changes in equity.................................................................................................. 49 4.1.5 Consolidated cash flow statement............................................................................................... 51 4.1.6 Notes to the consolidated financial statements ............................................................................. 52 4.1.7 Statutory Auditors’ report on Groupe BPCE's interim financial statements....................................... 77 4.2. BPCE
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