FINANCIAL REPORT 2017

2.5.2.4.2. Due to banks and customers by remaining maturity

31.12.2017

> 3 months up to ≤ 1 year

> 1 year up to ≤ 5 years

(in thousands of euros)

≤ 3 months

> 5 years

Total

Due to banks

4762642

197

19327

4782166

Due to customers

48422188

6383

48428571

TOTAL

53184830

6580

19327

0 53210737

NET CARRYING AMOUNT

53210737

31.12.2016

> 3 months up to ≤ 1 year

> 1 year up to ≤ 5 years

(in thousands of euros)

≤ 3 months

> 5 years

Total

Due to banks

8166745

346

21623

8188714

Due to customers

44830357 52997102

1041800 1042146

4854

45877011

TOTAL

26477

0 54065725

NET CARRYING AMOUNT

54065725

2.5.3. CASH FLOW AND FAIR VALUE INTEREST RATE AND FOREIGN EXCHANGE HEDGING Derivative financial instruments used in a hedging relationship are designated according to the intended purpose:

• Fair value hedge; • Cash flow hedge; • Hedge of a net investment in foreign currency.

Each hedging relationship is formally documented describing the strategy, item hedged and hedging instrument, and method of measuring effectiveness.

2.5.3.1. Fair value hedges A fair value hedge modifies the risk of changes in the fair value of a fixed-rate financial instrument caused by changes in interest rates. Fair value hedges transform fixed-rate assets or liabilities into floating-rate assets or liabilities. Items hedged are principally fixed-rate loans, securities, deposits and subordinated debt.

The financial instruments considered as hedging instruments on December 31, 2017 are interest rate swaps which cover securities or customer demand deposits.

2.5.3.2. Hedging derivative instruments

31.12.2017

31.12.2016

Market value

Market value

Notional amount

Notional amount

(in thousands of euros)

positive 83620

negative

positive

negative

FAIR VALUE HEDGES

119749 21764700 119749 21764700

10964 10964

228019 18377700 228019 18377700

83620

Interest rate

TOTAL

83620

119749 21764700

10964

228019 18377700

25