CACEIS Bank S.A., Germany Branch

CACEIS Bank S.A., Germany Branch

München

Befreiender Jahresabschluss zum Geschäftsjahr vom 01.01.2023 bis zum 31.12.2023

CACEIS Bank

Paris/Frankreich

Statutory auditors' report on the financial statements

PricewaterhouseCoopers Audit

63, rue de Villiers

92208 Neuilly-sur-Seine cedex

French simplified joint-stock company

(S.A.S.) with capital of € 2 510 460

672 006 483 R.C.S. Nanterre

Statutory Auditor

Member of the Compagnie régionale de Versailles et du Centre

ERNST & YOUNG et Autres

Tour First

TSA 14444

92037 Paris-La Défense cedex

French simplified joint-stock company (S.A.S.) with variable capital

438 476 913 R.C.S. Nanterre

Statutory Auditor

Member of the Compagnie régionale de Versailles et du Centre

CACEIS Bank

Year ended December 31, 2023

Statutory auditors' report on the financial statements

To the General Meeting of CACEIS Bank,

Opinion

In compliance with the assignment entrusted to us by your General Meeting, we have audited the accompanying financial statements of CACEIS Bank for the year ended 31 December 2023.

In our opinion, the financial statements give a true and fair view of the results of operations for the year ended 31 December 2023 and of the financial position and assets and liabilities of the company at that date in accordance with the accounting rules and principles applicable in France.

Basis for opinion● Audit framework

We conducted our audit in accordance with professional standards applicable in France. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Our responsibilities under these standards are further described in the "Statutory Auditor's Responsibilities for the Audit of the Financial Statements" section of our report.

● Independence

We conducted our audit engagement in compliance with independence requirements of the French Commercial Code (Code de commerce) and the French Code of Ethics (Code de déontologie) for statutory auditors for the period from 1 January 2023 to the date of our report and specifically we did not provide any prohibited non-audit services referred to in Article 5(1) of Regulation (EU) No 537/2014.

Justification of assessments - key audit matters

In accordance with the requirements of Articles L. 821-53 and R. 821-180 of the French Commercial Code (Code de commerce) relating to the justification of our assessments, we inform you of the key audit matters relating to risks of material misstatement that, in our professional judgment, were of most significance in our audit of the financial statements of the current period, as well as how we addressed those risks.

These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on specific items of the financial statements.

• Legal, tax and compliance risks

Identified risk

Your company is subject to litigation proceedings as well as requests for information, investigations or controls by regulatory or tax authorities in France and abroad which are described in notes 1.1.5 and 14 of the notes to the annual accounts (in particular Lilian in Germany and the action of H20 fund holders). The assessment of the resulting legal, tax and non-compliance risks is based on management's estimate as of the cut-off date.

The decision to recognize a provision or a receivable to be recovered and the amount thereof requires the use of judgement, due to the difficulty in estimating the final tax impact of the operations concerned by the proceedings.

Given the importance of that judgement, these assessments give rise to a significant risk of material misstatements in the financial statements and therefore constitute a key audit matter.

Our response

Our work consisted primarily of:

Specific verifications

We have also performed, in accordance with professional standards applicable in France, the specific verifications required by laws and regulations.

• Information given in the management report and in the other documents with respect to the Company's financial position and the financial statements provided to the shareholders

We have no matters to report as to the fair presentation and the consistency with the financial statements of the information given in the management report of the Board of Directors and in the other documents with respect to the financial position and the financial statements provided to the Shareholders.

With respect to the fair presentation and the consistency with the financial statements of the information relating to the payment deadlines mentioned in Article D.441-6 of the French Commercial Code, we draw your attention to the following matter: as indicated in the management report, this information does not include banking and related transactions as the Company considers that such information is not part of the scope of information to be provided.

● Report on corporate governance

We hereby attest to the existence, in the section of the management report of the Board of Directors the information required by Article L. 225-37-4 of the French Commercial Code.

● Other information

In accordance with the law, we have ensured that the various information relating to the acquisition of shareholdings and controls has been communicated to you in the management report.

Report on other legal and regulatory requirements

● Appointment of the Statutory Auditors

We were appointed as statutory auditors of CACEIS by your Annual General Meeting held on May 2nd, 2012 for PricewaterhouseCoopers Audit and on May 30th, 2006 for ERNST & YOUNG et Autres.

As of December 31st, 2023, PricewaterhouseCoopers Audit and ERNST & YOUNG et Autres were in the 12th and the 18th of total uninterrupted engagement, respectively.

Responsibilities of management and those charged with governance for the financial statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with French accounting principles and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, Management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless it is expected to liquidate the Company or to cease operations. The Audit Committee is responsible for monitoring the financial reporting process and the effectiveness of internal control and risks management systems and where applicable, its internal audit, regarding the accounting and financial reporting procedures.

The audit committee is responsible for monitoring the financial reporting process and the effectiveness of the internal control and risk management systems and, where appropriate, the internal audit, in relation to the procedures for the preparation and processing of accounting and financial information.

The financial statements were approved by the Board of Directors.

Statutory auditors' responsibilities for the audit

Our role is to issue a report on the financial statements. Our objective is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with professional standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As specified in Article L. 821-55 of the French Commercial Code (Code de commerce), our statutory audit does not include assurance on the viability of the Company or the quality of management of the affairs of the Company.

As part of an audit conducted in accordance with professional standards applicable in France, the statutory auditor exercices professional judgement throughout the audit and furthermore:

CONTENTS

BALANCE SHEET AT 31 DECEMBER 2023

ASSETS

EQUITY AND LIABILITIES

INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023

OFF-BALANCE SHEET ITEMS AT 31 DECEMBER 2023

1 HIGHLIGHTS OF THE YEAR AND EVENTS SUBSEQUENT TO DECEMBER 31, 2023

2 ACCOUNTING PRINCIPLES AND METHODS

3 LOANS TO BANKS - BREAKDOWN BY RESIDUAL TERM

4 CUSTOMER LOANS

5 TRADING SECURITIES, INVESTMENT SECURITIES, LONG-TERM INVESTMENT SECURITIES AND PORTFOLIO

ACTIVITY SECURITIES

6 EQUITY INVESTMENTS AND SUBSIDIARIES

7 CHANGE IN FIXED ASSETS

8 ACCRUALS, DEFERRALS AND OTHER ASSETS

9 IMPAIRMENT LOSSES DEDUCTED FROM ASSETS

10 DEPOSITS FROM BANKS - BREAKDOWN BY RESIDUAL TERM

11 DUE TO CUSTOMERS

12 DEBT SECURITIES

13 ACCRUALS, DEFERRALS AND OTHER LIABILITIES

14 PROVISIONS

15 EMPLOYEE OBLIGATIONS: POST-EMPLOYMENT BENEFITS, DEFINED BENEFIT PLANS

16 SUBORDINATED DEBT: BREAKDOWN BY RESIDUAL TERM

17 CHANGE IN EQUITY (BEFORE APPROPRIATION)

18 COMPOSITION OF EQUITY

19 FOREIGN EXCHANGE TRANSACTIONS, FOREIGN CURRENCY LOANS AND BORROWINGS

20 TRANSACTIONS INVOLVING FORWARD FINANCIAL INSTRUMENTS

21 COMMITMENTS AND GUARANTEES GIVEN AND RECEIVED

22 TRANSACTIONS WITH AFFILIATES AND EQUITY INVESTMENTS

23- OFFSET OF BORROWING SECURITIES

24 NET INTEREST AND SIMILAR INCOME

25 INCOME FROM SECURITIES

26 NET COMMISSION INCOME

27 GAINS OR LOSSES ON INVESTMENT PORTFOLIO TRANSACTIONS AND SIMILAR

28 OTHER BANKING INCOME AND EXPENSES

29 GENERAL OPERATING EXPENSES

30 COST OF RISK

31 NET INCOME ON FIXED ASSETS

32 INCOME TAX

33 INFORMATION RELATING TO PROFITS FROM BANKING ACTIVITIES

34 EXEMPTION FROM PREPARING CONSOLIDATED FINANCIAL STATEMENTS

35 APPROPRIATION OF INCOME

36 PRESENCE IN NON-COOPERATIVE STATES OR TERRITORIES

BALANCE SHEET AT 31 DECEMBER 2023

ASSETS

EQUITY AND LIABILITIES

INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023

OFF-BALANCE SHEET ITEMS AT 31 DECEMBER 2023

Notes regarding Off-Balance sheet :

1 HIGHLIGHTS OF THE YEAR AND EVENTS SUBSEQUENT TO DECEMBER 31, 2023

1.1 Significant events in 2023

1.1.1 Acquisition by CACEIS of the asset servicing activities of RBC Investor Services

On 3 July 2023, further to the obtention of the regulatory and antitrust authorisations, the company CACEIS acquired from the company Royal Bank Holding Inc. all shares of the capital of the company RBC Investor Services Bank S.A. (renamed CACEIS Investor Services Bank S.A.) supporting the European asset servicing activities of RBC Investor Services and its associated Malaysian center of excellence.

In addition to the acquisition of the CACEIS Investor Services Bank group, CACEIS acquired on the 1st December 2023, further to the obtention of the regulatory authorisations, all shares of the capital of the company RBC Fund Administration (Cl) Limited, renamed CACEIS Fund Administration Jersey (Cl) Limited.

In the United Kingdom, legal and regulatory approval was obtained on 31 October 2023. The UK acquisition is a Part VII transfer, meaning that the UK High Court oversees the transition of clients and employees from the custody and middle-office businesses of RBC Investor Services Trust, London Branch to CACEIS Bank, UK Branch. These transactions will essentially take place in the first quarter of 2024.

The integration of the activities of CACEIS Investor Services (formerly RBC Investor Services) entities into the systems and organization of CACEIS will be phased in 2024. It will notably include the legal merger of local entities with CACEIS entities in the various countries. It will also see the migration of customers and information systems to the CACEIS IT platform.

1.1.2 Creation of the joint-venture Fund Channel

On 24 April 2023, further to the obtention of the regulatory authorisations, the company CACEIS Bank purchased from the company Amundi Luxembourg a 33.33% stake in the share capital of Fund Channel.

CACEIS clients will benefit from the broad range of fund distribution services offered by a leading platform. The partnership will enable Fund Channel clients to benefit from a comprehensive range of fund execution services. In addition, the two partners will continue to develop their long-term cooperation in other growth areas: fund distribution services and data management.

1.1.3 Reorganisation of the CACEIS group in the United Kingdom

Following the Brexit on 31 January 2020, the UK legislator has imposed that depositary activities in the UK be no longer operated, as of 1 January 2024, by branches of companies registered in the European Union, but by companies registered in the United Kingdom. Therefore, on 20 December 2019, the company CACEIS Trustee & Depositary Services Limited (« CTADS ») was created. On 11 August 2023, further to an application review process, the Financial Conduct Authority (the "FCA") granted the required authorization to CTADS enabling to operate depositary activities.

On 1 October 2023, CACEIS Bank, UK Branch transferred its depositary activity to CTADS.

On 20 October 2023, CACEIS Bank, UK Branch was authorized by the Prudential Regulatory Authority (« PRA ») to operate as Third Country Branch.

On 15 December 2023, the Luxembourg company CACEIS Investor Services Bank S.A. transferred the depositary activity of its UK Branch to CTADS.

1.1.4 Impact relating to military operations in Ukraine

CACEIS is exposed to country risk, i.e., the risk that economic, financial, political or social conditions in a country in which it operates could affect its financial interests. A significant change to the political or macroeconomic environment could force it to recognize additional expenses or sustain heavier losses than already stated in its financial statements.

The CACEIS group is exposed, in absolute value, to the risk on Russia for €6.4 million (exposure on the correspondent bank in Russia).

As custodian of the assets of its customers, CACEIS also carries an indirect risk on its sub-depository in Russia which retains the Russian assets of the customers (€650 million). In general, CACEIS has an obligation to return those assets to the customers, but in extreme situations such as that encountered in Russia, CACEIS can be relieved of this obligation ("force majeure").

1.1.5 Lilian - CACEIS Bank S.A, Germany Branch

In 2019, CACEIS Bank - Germany Branch received from the Bavarian tax authorities a demand to recover tax on dividends received from some of its clients in 2010.

This demand concerned an amount of 312 million euros. It was accompanied by a demand to pay interest calculated at the rate of 6% per year.

CACEIS has requested a payment deferral pending the outcome of the main proceedings as described below. Deferral has been granted for the payment of interest and refused for the demand to recover taxes in the amount of 312 million euros. CACEIS has appealed to the tax authorities against this refusal. As the refusal decision is binding, the sum of 312 million euros has been paid by CACEIS, which included a receivable of this amount in its financial statements for the third quarter of 2019 in view of the appeal proceedings in process.

CACEIS Germany strongly objected to this demand, which it believes is completely unfounded. CACEIS Germany submitted its conclusions supporting its position to the Bavarian tax authorities in 2021.

CACEIS Germany was informed, on 30 November 2023, of the Bavarian tax authorities' final decision, confirming its initial position. The penalty interest for which CACEIS had obtained a suspension is not included in the scope of the decision.

CACEIS Germany continues to dispute this unfounded claim. After having initiated an appeal procedure in front of the Fiscal Court of Munich on 21 December 2022, CACEIS Germany filed its opinion at the end of August 2023.

The Group confirms its accounting position, namely maintaining the receivable of €312 million recognized in the third quarter of 2019.

1.1.6 H2O unit-holders claim

On 20 and 26 December 2023, 6077 natural and legal persons, members of an association called "Collectif Porteurs H2O", summoned CACEIS Bank before the Paris Commercial Court alongside companies Natixis Investment Managers and KPMG Audit, in the context of an action mainly brought against the companies H20 AM LLP, H2O AM Europe SAS, and H2O AM Holding.

The plaintiffs present themselves as unit holders of funds managed by H2O group companies, some of whose assets were hived off into "side pockets" in 2020, or holders of life insurance policies invested in units of such funds. Plaintiffs are seeking all defendants to be held severally liable for the damages alledgelly caused to them by the hiving-off of the funds in the amount of EUR 723,826,265.98.

In order to seek the liability "in solidum" of CACEIS Bank with the H2O group and the other codefendants, the plaintiffs allege that it breached its supervisory obligations as custodian of the funds."

1.1.7 Pilier 2 - GloBe

New international tax rules have been established by the OECD, aimed at subjecting large international groups to additional taxation when the Effective Tax Rate (ETR) of a jurisdiction in which they are established is less than 15%. The purpose of these rules is to combat competition between States based on the tax rate.

These rules will have to be transposed by the various Member States.

To date, in the EU, a European Directive was adopted at the end of 2022 (currently being transposed in the countries) and provides for 2024 as the first year of application of the GloBE rules in the EU. At this stage, the information is not reasonably estimable; census work is being initiated within the Group. This will result, if necessary, in the recognition of an additional GloBE tax in the Group's accounts in 2024.

1.2 EVENTS SUBSEQUENT TO DECEMBER 31, 2023

There are no events subsequent to the 31 December 2023 closing date to report.

2 ACCOUNTING PRINCIPLES AND METHODS

CACEIS Bank's financial statements are prepared in accordance with accounting standards applicable in France to banks and in accordance with the rules defined by Crédit Agricole SA.

CACEIS Bank's financial statements are presented in line with the provisions of ANC Regulation 2014-07 pursuant to which all the accounting standards applicable to credit institutions were combined into a single regulation for periods beginning on or after 1 January 2015.

There was no change in accounting policy and presentation of the accounts during 2023 financial year.

2.1 Loans and signed commitments

Loans to banks, Crédit Agricole group entities and customers are governed by ANC Regulation 2014-07.

They are broken down according to their residual term or type of facilities:

The Customers category includes transactions with financial customers

Subordinated loans, as well as repurchase agreements (in the form of securities or shares), are included in the various loan headings, depending on the type of counterparty (interbank, customers).

Receivables are recognised on the balance sheet at their face value including accrued interests.

Accrued interests on receivables are recognized in the income statement against related receivables.

In accordance with ANC Regulation 2014-07, commission fees received and marginal transaction costs are spread out over the effective lifetime of the loan and are therefore included in the outstanding loan amount concerned.

Signed commitments recognised as off-balance sheet items correspond to irrevocable cash loan commitments and guarantee commitments that have not resulted in any fund movements.

In accordance with ANC Regulation 2014-07, the entity recognises loans presenting a credit risk pursuant to the rules set out below.

Use of external and/or internal ratings systems helps to assess the level of credit risk.

Loans and signed commitments are broken down between outstanding loans deemed to be performing and those deemed to be non-performing.

Performing loans

If loans are not classified as non-performing, they are classified as performing or impaired and remain in their original line item.

Credit risk provisions for loans:

CACEIS Bank recognises provisions in respect of credit exposures on the liabilities side of its balance sheet to cover expected credit risks for the next 12 months (exposures classified as performing) and/or over the lifetime of the outstanding where the credit quality of the exposure has deteriorated significantly (exposures classified as impaired).

These provisions are determined within the framework of a specific monitoring process and are based on estimates reflecting the level of credit loss expected.

• Expected credit loss (ECL)

The ECL is defined as the weighted expected probable value of the discounted credit loss (principal and interest). It represents the present value of the difference between contractual cash flows and expected cash flows (principal and interest).

The ECL approach is intended to anticipate the recognition of expected credit losses as early as possible.

• ECL governance and measurement

The governance arrangements relating to the measurement of provisioning parameters is based on the organisation adopted as part of the Basel system. The Credit Agricole group's Risk Management Department is responsible for defining the methodological framework and supervising the provisioning system for outstanding loans.

The Credit Agricole group primarily uses the internal rating system and current Basel processes to generate the parameters needed to calculate ECLs. Changes in credit risk are assessed using a model for anticipating losses and making extrapolations on the basis of reasonable scenarios. All available, relevant, reasonable and justifiable information, including forward-looking information, are taken into account.

The calculation formula factors in probability of default (PD), loss given default (LGD) and exposure at default (EAD).

Calculations are based to a large extent on internal models used as part of prudential arrangements where they exist, but adjusted to determine an economic ECL.

The accounting approach also leads to the recalculation of certain Basel parameters, for example to neutralise internal recovery costs or floors set by the regulator in the regulatory calculation of loss given default.

The ECL calculation arrangements depend on the product type, i.e. customer loans and deposits and signed commitments.

Expected credit losses for the next 12 months are a portion of expected credit losses over the lifetime of loans, and they represent the shortfall in cash flow over the lifetime of loans if default were to happen within 12 months of the closing date (or over a shorter period if the expected lifetime of the exposure is less than 12 months), weighted by the probability of default within 12 months.

Expected credit losses are discounted at the effective interest rate (EIR) determined at initial recognition of the exposure.

Provisioning parameters are measured and updated according to methods defined by the Crédit Agricole group and allow an initial provisioning reference level, or shared basis, to be established.

The models and parameters used are back-tested at least annually.

Forward-looking macroeconomic data are taken into account in a methodological framework that is applied at two levels:

Significant deterioration of credit risk

For each exposure, CACEIS Bank has to assess any deterioration in credit risk since inception at each balance-sheet date. As a result of that assessment of changes in credit risk, entities classify their transaction by risk category (performing loan, impaired, non-performing) .

To assess significant deteriorations, the Crédit Agricole group uses a process based on two levels of analysis:

Barring certain exceptions, all exposures are monitored for material deterioration. No contagion is required for an exposure to the same counterparty to move from performing to impaired. Material deterioration monitoring must look at developments in the main debtor's credit risk without taking into account any guarantee, including for transactions involving a shareholder guarantee.

For small loans with similar characteristics, the analysis of individual counterparties may be replaced with a statistical estimate of projected losses.

The assessment of the significant increase in credit risk under the first level, defined above, for financial instruments with a rating model is based on the following two criteria:

1. Relative criteria:

To assess the significance of the relative increase in credit risk, thresholds are regularly calibrated on the basis of the lifetime probability of default, which includes forward-looking information at current reporting date and the initial recognition date.

A financial instrument is classified in stage 2 if the ratio of the probability of default at the balance sheet date to the probability of default at the initial recognition date exceeds a multiplier threshold defined by the Group.

These thresholds are determined for each homogeneous portfolio of financial instruments based on the segmentation of the prudential risk management system.

For example, the multiplier threshold for French residential real estate loans varies between 1.5 and 2.5 depending on the portfolio. The threshold for loans to large corporates (excluding investment banks) varies between 2 and 2.6.

This relative change criterion is supplemented by an absolute change criterion for the probability of default of +30bp. When the probability of default within one year is less than 0.3%, the credit risk is considered "not significant".

2. Absolute criteria:

In the absence of an internal rating model, the Crédit Agricole Group uses the absolute threshold of payment 30 days past due as the maximum threshold for significant credit risk increase and classification in Stage 2.

If credit risk increase since origination is no longer observed, impairment may be reduced to the 12- month expected credit losses (Stage 1).

To make up for the fact that certain significant deterioration factors or indicators may not be identifiable at instrument level, the standard allows for the assessment of significant deterioration at financial instrument portfolio level, or for groups of portfolios or parts of portfolios.

Where portfolios are created to assess deterioration on a collective basis, this may be done on the basis of common characteristics such as:

Material deterioration may be distinguished by market (small business loans, corporate loans etc.).

The way in which exposures are combined to assess changes in credit risk on a collective basis may be adjusted if new information arises.

Reversals of and charges to credit risk provisions for performing and impaired loans are included in the cost of risk.

Non-performing loans

These are loans of all kinds, even those with guarantees, that present a proven credit risk corresponding to one of the following situations:

A loan is said to be non-performing when one or more events impacting forecasted or estimated cash flows occur. The below described events are measurable indicators of a non-performing loan :

It is not necessarily possible to isolate a particular event. The impairment of the financial asset could result from the combined effect of several events.

The defaulting counterparty returns to a sound situation only after a period of observation that makes it possible to confirm that the debtor is no longer in default (assessment by the Risk Management Department).

Among non-performing loans, CACEIS Bank makes a distinction between irrecoverable loans and doubtful loans :

For doubtful loans, interest continues to be recognised as long as the loan is deemed to be doubtful, but this ends once the loan becomes irrecoverable.

Non-performing loans may be reclassified and the outstanding amount is reclassified as performing loans.

• Impairment resulting from credit risk relating to non-performing loans

Once a loan is classified as doubtful, the probable loss is recognised by CACEIS Bank by means of an impairment loss deducted from assets. These impairment losses correspond to the difference between the carrying amount of the receivable and estimated future cash flows discounted at the effective interest rate, taking into consideration the borrower's financial position, its business prospects and any guarantees, after deducting the cost of enforcing such guarantees.

Probable losses relating to off-balance sheet commitments are covered by provisions recognised as liabilities.

• Accounting treatment of impairment losses

Impairment losses and reversals of impairment losses for non-recovery risk on non-performing loans are recognised as cost of risk.

In accordance with ANC Regulation 2014-07, the Group has chosen to recognise the increase in the carrying amount relating to the reversal of impairment losses due to the passing of time as cost of risk.

• Write-offs

Decisions as to when to write off are made on the basis of expert opinions and this is determined by CACEIS Bank in conjunction with its Risk Management department, based on its knowledge of its business.

Loans reclassified as irrecoverable are recognised as losses and corresponding impairment losses are reversed.

Country risk

Country risk (risk on international commitments) consists of the total amount of commitments in arrears (on-and off-balance sheet) carried by an entity either directly or through defeasance structures on private or public debtors domiciled in countries listed by the Autorité de Contrôle Prudentiel et de Resolution, or where the outcome depends on the situation of public or private debtors domiciled in such countries.

Restructured loans

Debt instruments restructured due to financial difficulties are those for which the entity has amended the original financial terms (interest rate, term etc.) for economic or legal reasons linked to the financial difficulties of the borrower, under conditions that would not have been considered under other circumstances.

The definition of loans restructured due to financial difficulty is therefore comprised of two cumulative criteria:

The restructured notion has to be assessed at contract level and not at client level.

They include both loans classified as non-performing and performing loans at the time of the restructuring.

They exclude loans whose characteristics have been renegotiated on a commercial basis with counterparties not showing any solvency problems or financial difficulties. Renegotiated loans are derecognized. The remaining portion of commissions received and incremental transaction costs is recognized in the income statement at the date of this renegotiation, to the extent that a new outstanding is considered to have arisen.

The reduction in future cash flows from the counterparty, or the postponement of those cash flows over a more distant time horizon as a result of the restructuring, gives rise to a discount. The discount corresponds to the shortfall in future cash flows discounted at the original effective interest rate. It is equal to the difference between:

The discount recognised when a debt is restructured is accounted for in reduction of the asset and included in the cost of risk.

Loans restructured because of the debtor's financial position are rated according to Basel rules and written down according to the estimated credit risk.

Once the restructuring has been carried out, the exposure continues to be classified as "restructured" for at least 2 years, if the exposure was performing when restructured, and 3 years if the exposure was in default when restructured. These periods are extended in the event of the occurrence of certain events (e.g. further incidents).

2.2 Securities portfolio

Rules relating to the recognition of securities transactions are defined by Articles 2311-1 to 2391-1 as well as Articles 2311-1 to 2351-13 of ANC Regulation 2014-07.

Investments are presented in the financial statements according to their nature: government securities (treasury bills and similar), bonds and other fixed-income securities (negotiable debt securities and interbank market securities), equities and other variable-income securities.

They are classified into portfolios provided for by regulations (trading, investment, short-term investment, portfolio activity, fixed assets, other long-term investments, equity investment, shares in affiliates) according to the entity's management intention and the characteristics of the instrument at the time the product was taken out.

Trading securities

These are securities that are originally:

These securities must be tradeable on an active market and available market prices must be representative of actual transactions that occur lawfully on the market on an arm's length basis.

The following are also regarded as trading securities:

Apart from in the circumstances set out in ANC Regulation 2014-07, securities recognised as trading securities cannot be reclassified into another accounting category and continue to follow the rules concerning the presentation and measurement of trading securities until they are sold, redeemed in full or written off at a loss.

Trading securities are recognised on the date they are purchased and at cost excluding related expenses, including accrued interest if applicable.

Liabilities relating to securities sold short are recognised on the liabilities side of the seller's balance sheet in the amount of the selling price excluding transaction expenses.

At each reporting date, securities are measured at the most recent market price. Net gains or losses from price fluctuations are recognised in the income statement under "Gains or losses on trading portfolio transactions".

Investment securities

This category concerns securities that do not fall into the other categories of securities.

Securities are recognised at cost, including related expenses.

Bonds and other fixed-income securities

These securities are recognised at cost, including accrued interest. The difference between cost and redemption value is deferred on an actuarial basis over the residual life of the security.

Revenue is recorded in the income statement under: "Interest and similar income from bonds and other fixed-income securities".

Equities and other variable-income securities

Equities are recognised on the balance sheet at cost, including related expenses. Income from dividends attached to equities is recognised in the income statement under "Income from variable-income securities".

Income from undertakings for collective investment is recognised when it is received under the same heading.

At the close of the financial year, investment securities are valued at the lower of cost and market value. When the current value of a line or homogeneous set of securities (calculated for example on the basis of the share price at the reporting date) is lower than the carrying amount, an impairment loss is recognised in respect of the unrealised loss, without being offset by capital gains recognised on other categories of securities. Gains arising from hedging within the meaning of ANC regulation 2014-07 in the form of purchases or sales of forward financial instruments are taken into account to calculate impairment. Unrealised capital gains are not recognised.

Furthermore, for fixed-income securities, impairment losses intended to reflect counterparty risk and recognised in the cost of risk are included in this category of securities:

Sales of securities are deemed to concern the securities of the same nature subscribed at the earliest date.

Impairment losses and reversals of impairment losses, as well as capital gains or losses on the sale of investment securities, are recognised under "Gains or losses on investment portfolio transactions and similar" in the income statement.

Long-term investment securities

Long term investment securities are fixed-income securities with a fixed maturity date that have been acquired or transferred to this category with the manifest intention of holding them until maturity.

This category only includes securities for which CACEIS Bank has the financial ability required to continue to hold them until maturity and that are not subject to any legal or other constraints that could call into question its intention to hold them until maturity.

Long-term investment securities are recognised at cost, including acquisition costs and accrued interest.

The difference between cost and redemption value is deferred over the residual life of the security.

Impairment is not booked for long-term investment securities if their market value is below cost. However, if impairment arises from a risk relating specifically to the issuer of the security, impairment is recorded under "Cost of risk".

In the case of the sale or reclassification to another category of long-term investment securities representing a material amount, the reporting entity is no longer authorised to classify securities previously bought or to be bought as long-term investment securities during the current financial year and the next two financial years, in accordance with ANC Regulation 2014-07.

Portfolio securities

In accordance with ANC regulation 2014-07, securities in this category comprise "investments made on a regular basis with the sole aim of securing a capital gain in the medium term, with no intention of investing in the longer term in the development of the investee company's business or of becoming actively involved in its operational management".

In addition, securities can only be transferred to this portfolio if the significant and permanent activity is carried out within a structured framework and generates regular income, mainly coming from disposal gains.

CACEIS Bank meets these conditions and can classify part of its securities in this category.

Portfolio securities are recorded at acquisition price, including incidental purchase costs.

On the accounts closing date, these securities are measured at the lower of cost or value in use, which is determined by taking into account the issuer's general prospects and the estimated remaining term of ownership.

For listed companies, value in use is generally the average market price assessed over a sufficiently long period (taking into account the planned term of ownership) to offset the effect of temporary sharp variations in the share price. Any unrealised capital losses are calculated for each security, and are subject to impairment without netting of unrealised capital gains. They are recorded under "Gains or losses on investment portfolio transactions and similar", as is any impairment on those securities. Unrealised gains are not recognised.

Investments in affiliates, equity investments and other long-term investments

These securities are recognised at cost, including charges. Costs are deducted by means of accelerated depreciation.

At the close of the financial year, these securities are measured individually at their value in use and included on the balance sheet at the lower of cost and value in use.

This reflects what the institution would agree to pay to purchase them given its ownership objectives.

Value in use may be estimated using a variety of factors such as the issuing company's profitability and outlook, its equity, the economic climate, the average share price over the last few months or the mathematical value of the security.

When the value in use of securities is lower than cost, impairment is recognised in respect of the unrealised losses, without being offset by unrealised gains.

Impairment losses and reversals of impairment losses, as well as capital gains or losses on the sale of to these securities, are recognised under "Net income on fixed assets".

Market price

The market price at which the various categories securities are measured, if applicable, is determined as follows:

Recognition dates

CACEIS Bank recognises securities classified as long-term investment securities on the settlementdelivery date. Other securities, regardless of their nature or category, are recognised at the trade date.

Repo agreements

Securities delivered under repurchase agreements are recorded on the balance sheet and the amount received, representing a liability vis-a-vis the holder, is recognised on the liabilities side of the balance sheet.

Securities received under repurchase agreements are not recognised on the balance sheet, but the amount paid out, representing an amount due from the seller, is recognised on the assets side of the balance sheet.

Securities delivered under repurchase agreements are subject to accounting treatment corresponding to the portfolio category from which they come.

Reclassification of securities

In accordance with ANC Regulation 2014-07, the following securities reclassifications are allowed:

In 2023, CACEIS Bank made no reclassifications in accordance with ANC Regulation 2014-07.

2.3 Fixed assets

CACEIS Bank applies ANC regulation 2014-03 relating to the depreciation and impairment of assets.

It applies the component-based method of accounting to all property, plant and equipment. In accordance with the requirements of this regulation, the depreciable basis takes account of any residual value of fixed assets.

The cost of fixed assets comprises: the purchase price, associated expenses, i.e. expenses directly or indirectly related to purchase to bring the asset into usable condition.

Land is recognised at cost.

Buildings and equipment are recognised at cost minus depreciation booked since they came into service.

Software purchased is recognised at cost minus amortisation booked since it was purchased.

Software created is recognised at production cost minus amortisation booked since it was completed.

Apart from software, patents and licences, intangible assets are not amortised. If applicable, impairment may be recognised in respect of them.

The merger technical mali is recorded in the balance sheet according to the asset categories to which it is assigned, in "Other tangible fixed assets, intangible, financial...". The mali is amortized, impaired, taken out of the balance sheet according to the same modalities as the underlying asset.

Fixed assets are depreciated or amortised on a straight-line basis according to their estimated useful life.

The following components and depreciation and amortisation periods have been used by CACEIS Bank following the application of the component-based approach to recognising fixed assets. These depreciation and amortisation periods are adjusted according to the type of asset and its location.

On the basis of information available to CACEIS Bank about the value of its fixed assets, it found that impairment testing would not change the existing depreciable amount. CACEIS Bank has limited the depreciation/amortisation period for certain fixed assets to the duration of the leases to which they relate.

2.4 Deposits from banks and customers

Deposits from banks, Crédit Agricole entities and customers are presented in the financial statements according to their residual life or the type of deposit:

Repurchase agreements in the form of securities or shares are included in the various headings, depending on the type of counterparty.

Accrued interest on these deposits is recorded as accrued interest payable through profit or loss.

2.5 Debt securities

Debt securities are presented according to the type of vehicle: savings certificates, interbank market securities, negotiable debt securities, bonds and other debt securities, excluding subordinated notes, which are classified under "Subordinated debt" in liabilities.

Accrued interest not yet due is recorded as accrued interest payable through profit or loss.

Bond issue and redemption premiums are amortised over the life of the bonds concerned and the corresponding cost is recognised under "Interest and similar expense on bonds and other fixed-income securities".

Redemption and issue premiums for debt securities are amortised using the actuarial amortisation method.

CACEIS Bank also defers and amortises borrowing expenses in its parent-company financial statements. Financial services commission fees are recognised as expenses under "Commission fees".

2.6 Provisions

CACEIS Bank applies ANC regulation 2014-03 relating to the recognition and valuation of provisions.

These provisions comprise in particular provisions relating to signature commitments, pension and early retirement commitments, as well as legal disputes and miscellaneous risks.

Provisions also include country risks. All of these risks are reviewed on a quarterly basis.

Provisions are set aside for country risks after analysis of the types of transaction, the length of commitments, their nature (receivables, securities, capital market products) and the quality of the country.

CACEIS Bank partially hedges reserves on foreign-currency-denominated receivables by buying foreign currency, to limit the impact of changes in exchange rates on reserve levels.

2.7 Transactions in forward financial instruments and options

Hedging and market transactions involving forward interest-rate, exchange-rate or equity instruments are recorded in accordance with ANC regulation 2014-07.

Commitments relating to these transactions are recorded off-balance sheet in the amount of the nominal value of the agreements: this amount represents the volume of transactions outstanding. Gains and losses from these transactions are recorded by type of instrument and strategy:

Hedging transactions

Gains or losses realised on hedging transactions (category "b", Article 2523-1 of ANC Regulation 2014- 07) are recorded on the income statement symmetrically with the recognition of income and expenses on the hedged item and under the same accounting heading.

Income and expenses relating to forward financial instruments used for hedging and managing Crédit Agricole SA's overall interest rate risk (category "c", Article 2523-1 of ANC Regulation 2014-07) are recorded on a prorata temporis basis under "Interest and similar income (expenses) - Net gains (losses) on macro-hedging transactions". Unrealised gains and losses are not recorded.

Market transactions

Market transactions include:

They are measured in reference to their market value on the reporting date.

If there is an active market, the instrument is stated at the available market price. In the absence of an active market, fair value is determined using internal valuation techniques and models.

Instruments:

Counterparty risk on derivative instruments

In accordance with ANC Regulation 2014-07, CACEIS Bank factors counterparty risk with respect to derivative assets into the market value of derivatives. For this reason, counterparty risk is only calculated with respect to derivatives recognised as isolated open positions and as part of a trading portfolio (derivatives classified in categories "a" and "d", Article 2523-1 of the aforementioned regulation), through a Credit Valuation Adjustment (CVA). The CVA makes it possible to calculate counterparty losses expected by CACEIS Bank. The CVA is calculated on the basis of an estimate of expected losses based on the probability of default and loss given default. The methodology used maximises the use of observable market inputs.

It is based:

In certain circumstances, historical default data may also be used.

2.8 Foreign currency transactions

At each reporting date, receivables and liabilities as well as currency forward contracts included in offbalance sheet commitments denominated in foreign currencies are translated at the exchange rate in force on the reporting date.

Income received and expenses paid are recorded at the exchange rate on the transaction date. Accrued income and expenses not yet due are translated at the closing rate.

Assets in foreign currencies held on a long-term basis, including capital funds allocated to branches, fixed assets, investment securities, subsidiary securities and participating interests in foreign currencies financed in euros are still translated at the exchange rate on the date of acquisition (historic). A provision may be set aside if a lasting adverse movement is observed in the exchange rate relative to CACEIS Bank's foreign holdings.

At each reporting date, forward currency transactions are valued at the exchange rate for the remaining term of the currency concerned. Gains or losses are recorded in the income statement under "Net gains (losses) on trading securities - Net gains (losses) on foreign exchange transactions and similar financial instruments".

Within the framework of the application of ANC regulation 2014-07, CACEIS Bank has introduced multicurrency accounting, which allows it to monitor its foreign exchange position and measure its exposure to this risk.

2.9 Consolidation of foreign branches

Branches have their own accounting procedures that comply with applicable accounting regulations in the country in which they are based. When the financial statements were prepared, branches' balance sheets and income statements were restated to comply with French accounting standards, translated into euros and integrated with their head office's accounting procedures after elimination of reciprocal transactions.

The rules concerning translation into euros are as follows:

Any gains or losses resulting from this translation are recorded on the balance sheet under "Accruals and deferrals".

2.10 Off-balance sheet commitments

Off-balance sheet items include in particular financing commitments (unused portion) and guarantee commitments given and received.

If applicable, a provision is set aside for commitments given where there is a likelihood of this coming into play resulting in a loss for CACEIS Bank.

Reported off-balance sheet items do not mention commitments on forward financial instruments or foreign exchange transactions. Similarly, they do not include commitments received concerning treasury bonds, similar securities and other securities pledged as collateral.

2.11 Employee profit sharing and incentive plans

Employee profit sharing is recognised in the income statement for the year in respect of which the right of employees arose.

Profit sharing and incentive plans, covered by an agreement, are included in "Staff costs".

2.12 Post-employment benefits

Pension, early retirement and retirement obligations - defined benefit plans

CACEIS Bank has applied ANC recommendation no. 2013-02 on the recognition and measurement of pension obligations and related benefits, subsequently repealed and incorporated in regulation ANC 2014-03 (June,05 2014).

This recommendation is amended by the ANC on 5 November 2023. It allows, for defined benefit payment schemes which require the granting of a benefit payment on the basis of seniority, for a maximum capped amount and for a staff member to be employed by the entity when he reaches retirement age, to determine the allocation of benefit payment entitlements linearly from:

Under this regulation, CACEIS Bank sets aside provisions to cover its retirement and similar benefit obligations falling within the category of defined-benefit plans.

These commitments are stated based on a set of actuarial, financial and demographic assumptions, and in accordance with the Projected Unit Credit method. Under this method, for each year of service, a charge is booked in an amount corresponding to the employee's vested benefits for the period. The charge is calculated based on the discounted future benefit.

As of 2023, CACEIS Bank applies the determination of the breakdown of benefit entitlements on a straight-line basis as of the date that each year of service is applied for the vesting of benefit entitlements (i.e., in accordance with the IFRS IC decision of April 2023 concerning IAS 19). The impact on the level of benefit obligations amounts to €-2,763 thousand (as shown in Note 17 of the notes to the financial statements).

As actuarial gains and losses are recognised immediately in the income statement, the amount of the provision booked on the liabilities side of the balance sheet is equal to:

Pension plans - defined contribution plans

There are various mandatory pension plans to which "employer" companies contribute. Plan assets are managed by independent organisations and the contributing companies have no legal or implied obligation to pay additional contributions if the funds do not have sufficient assets to cover all benefits corresponding to services rendered by employees during the year and during prior years. Consequently, CACEIS Bank has no liabilities in this respect other than its ongoing contributions.

The amount of contributions in respect of these pension plans is recorded as "Staff costs".

2.13 Income and fees

Interest and commissions assimilated to interest are recorded in the income statement pro rata temporis.

Commissions are recorded according to the nature of the services to which they relate. Commissions remunerating one-off services are immediately recognized in profit or loss Commissions acquired remunerating continuous services are spread over the life of the service provided.

2.14 Exceptional income and expense

These are expenses and income that arise exceptionally and relate to transactions that do not fall within the framework of CACEIS Bank's ordinary business activities.

2.15 Income tax expenses

The tax expense stated in the income statement includes two items:

The standard corporate income tax rate is 25%. French companies are also subject to a social security contribution on profits of 3.3%.(a deduction of 763 K € is applied).

In accordance with OEC recommendation n ° 1-20 of February 1987, CACEIS opted to recognize deferred taxes calculated on the basis of all the differences between the book values of assets and liabilities appearing on the balance sheet and their respective tax values, when these differences affect future tax payments.

Deferred taxes are calculated based on a tax rate which has been voted or almost voted that are expected to be in effect when the temporary difference reverses. When the tax rate changes, the corresponding effect is recorded on the income statement in "deferred tax charges". Deferred tax assets are accounted only when imputed against future taxable income is considered reasonable over a reasonable time horizon, in accordance with Crédit Agricole SA group rules. These taxes are calculated using the variable carry-forward method, by applying the expected effective tax rate (including temporary increases) for the period in which the tax asset is to be applied to income.

3 LOANS TO BANKS - BREAKDOWN BY RESIDUAL TERM

4 CUSTOMER LOANS

4.1 Customer loans - breakdown by residual term

4.2 Customer loans - Breakdown by region

4.3 Customer loans - Non-performing loans and impairment by region

5 TRADING SECURITIES, INVESTMENT SECURITIES, LONG-TERM INVESTMENT SECURITIES AND PORTFOLIO ACTIVITY SECURITIES

In 2023, securities issued by public institutions are classified as Bonds and other fixed-income securities under the headings Issued by pubic bodies or Other Issuers according to the characteristics of the issuer.

5.1 Trading securities, investment securities, long-term investment securities and portfolio activity securities (excluding government securities): breakdown by major categories of counterparty

5.2 Breakdown of fixed-or variable-income listed and unlisted securities

5.3 Government securities, bonds and other fixed-income securities - Breakdown by residual term

5.4 Government securities, bonds and other fixed-income securities - Breakdown by counterparty's region

6 EQUITY INVESTMENTS AND SUBSIDIARIES

⁽¹⁾ Investor Services House SA, Partinvest SA
⁽²⁾ On 24 April, CACEIS acquired 873 shares of the JV FUND CHANNEL representing 33.33% of the share capital and voting rights of the JV from AMUNDI LUXEMBOURG.
⁽³⁾ Euroclear, Swift, GIE Amundi IT Service, Liquidshare, Bourse de Luxembourg, Fidfund, CACEIS Fund Services Gmbh, CACEIS Hong Kong Trust Ltd, Stadsherstel

Estimated value of equity investments

7 CHANGE IN FIXED ASSETS

7.1 Financial assets

7.2 Property, plant and equipment and intangible assets

⁽¹⁾ Intangible assets include acquired intangible rights for a book value of €224 million.

8 ACCRUALS, DEFERRALS AND OTHER ASSETS

⁽¹⁾ Amounts include accrued interests
⁽²⁾ Including €49,675 thousand euros in respect of the contribution to the Single Resolution Fund paid in 2023 and €36,746 thousand euros in 2022.

As a reminder, the European regulatory framework intended to preserve financial stability has been supplemented by Directive 2014/59/EU of 15 May 2014, which establishes a framework for the recovery and resolution of credit institutions and investment firms. The system for funding the Single Resolution Mechanism (SRM) was set up by Regulation (EU) 806/2014 of 15 July 2014 for the relevant institutions.

The security deposit corresponds to the guarantees for institutions having recourse to the irrevocable payment commitments set out in Article 70, paragraph 3, of Regulation (EU) 806/2014, which stipulates that the share of those commitments shall not exceed 30% of the total amount of contributions raised in accordance with said article.

With regard to the 2023 financial year, the amount of the contribution in the form of irrevocable payment commitments was €13,927 thousand euros; the amount paid in the form of fees was €37,497 thousand euros in operating expenses (Annex 29 to these financial statements).

In accordance with Implementing Regulation (EU) 2015/81 of 19 December 2014, when a resolution action requires the Fund to intervene pursuant to Article 76 of Regulation (EU) 806/2014, the Single Resolution Board calls on all or part of the irrevocable payment commitments, as made in accordance with Regulation (EU) 806/2014, in order to reconstitute the share of the irrevocable payment commitments within the Fund's available financial resources, as set by the Single Resolution Board within the limit of the ceiling set in the aforementioned Article 70, paragraph 3, of Regulation (EU) 806/2014.

The guarantees that come with these commitments will be restored in accordance with Article 3 of Regulation EU 2015/81 of 19 December 2014 once the Fund duly receives the contribution pertaining to the irrevocable payment commitments called upon. The Group does not expect a resolution action requiring an additional call for the Group, in the context of the aforementioned mechanism, to take place in the Eurozone in the foreseeable future, nor does it expect a loss or a withdrawal of its banking authorisation.

Moreover, this security deposit, which is classed under sundry accounts receivable in the institution's assets, with no change compared with the previous financial years, is paid in accordance with the agreement on the irrevocable payment commitment and the guarantee mechanism agreed between the Group and the Single Resolution Board.

Sundry debtors include a claim of €312 million on the Bavarian tax authorities recognized by CACEIS Bank S.A., Germany Branch.

Unrealised losses and losses to be deferred on financial instruments correspond to losses on hedging instruments terminated in 2020 due to a restructuring of micro-hedging operations.

9 IMPAIRMENT LOSSES DEDUCTED FROM ASSETS

10 DEPOSITS FROM BANKS - BREAKDOWN BY RESIDUAL TERM

11 DUE TO CUSTOMERS

11.1 Due to customers - breakdown by residual maturity

11.2 Due to customers - breakdown by region

11.3 Due to customers - breakdown by customer type

12 DEBT SECURITIES

12.1 Debt securities - breakdown by residual term

12.2 Bonds

13 ACCRUALS, DEFERRALS AND OTHER LIABILITIES

14 PROVISIONS

(1) The amount covers the provision for other social commitments in the context of the Turbo project for Uptevia employees transferred to CACEIS Bank.

The provision for other employee obligations related to Turbo program amounts to €3,639 thousand as at 31 December 2023 compare to €18,551 thousand at the end of last year (inclusive of the end-of-career allowances for submissions accepted in France).

The provisions for tax disputes cover tax adjustments already notified.

The provision for operational risks is intended to cover the risks of insufficient design, organization and implementation of recording procedures in the accounting system and more generally in the information systems for all related events of to the establishment's operations

Investigations, information requests and litigation proceedings

In the normal course of business, CACEIS is regularly subject to litigation proceedings, as well as requests for information, investigations, controls and other regulatory or judicial procedures from various institutions in France and abroad. The provisions recognized reflect the management's best judgement, considering the information in its possession at the closing date of the accounts.

15 EMPLOYEE OBLIGATIONS: POST-EMPLOYMENT BENEFITS, DEFINED BENEFIT PLANS

Change in actuarial liabilities

Breakdown of the expense recognised in income statement

Change in fair value of plan assets

Changes in provisions

The weighted average of the discount rates used for the assessment of end-of-career allowances is of the order of 3.03% (from 1,38% to 4.68%) at 31 December 2023 compared to 3,3% at 31 December 2022.

As of December 31, 2023, the sensitivity rates demonstrate that:

16 SUBORDINATED DEBT: BREAKDOWN BY RESIDUAL TERM

The residual duration of indefinite subordinated debts is positioned by default at more than 5 years.

17 CHANGE IN EQUITY (BEFORE APPROPRIATION)

⁽¹⁾ Allocation of the 2022 financial year profit recorded in accordance with the General meeting decision of 10 May 2023.

18 COMPOSITION OF EQUITY

19 FOREIGN EXCHANGE TRANSACTIONS, FOREIGN CURRENCY LOANS AND BORROWINGS

20 TRANSACTIONS INVOLVING FORWARD FINANCIAL INSTRUMENTS

20.1 Transactions involving forward financial instruments - notional outstanding by residual maturity

20.2 Forward financial instruments

⁽¹⁾ These are assimilated contracts according to article 2521-1 of ANC regulation 2014-07.

21 COMMITMENTS AND GUARANTEES GIVEN AND RECEIVED

22 TRANSACTIONS WITH AFFILIATES AND EQUITY INVESTMENTS

23- OFFSET OF BORROWING SECURITIES

24 NET INTEREST AND SIMILAR INCOME

25 INCOME FROM SECURITIES

26 NET COMMISSION INCOME

The income, minus charges of the same nature, mainly covers commissions on outstanding amounts (custody fees / depositary control) and on flows (clearing / stock market orders). These commissions relate to services and operations carried out on behalf of customers.

27 GAINS OR LOSSES ON INVESTMENT PORTFOLIO TRANSACTIONS AND SIMILAR

28 OTHER BANKING INCOME AND EXPENSES

⁽¹⁾ Due to a tax consolidation agreement signed on 7 March 2017, the results of CACEIS Fonds Service, Gmbh, the subsidiary of CACEIS Bank S.A., Germany Branch, have been included in CACEIS Bank's results for -€ 12.2 million in 2023 and -€ 12.1 million in 2022.

29 GENERAL OPERATING EXPENSES

Wages and salaries include charges to and reversals of provisions for pension and similar commitments and provisions for other employee-related commitments.

The External services, other administrative expenses and regulatory contributions section includes € 37,497 thousand under the single resolution fund instead of €54,500 thousand in 2022.

The fees paid to the Statutory Auditors are disclosed in the notes to the CACEIS Group's consolidated financial statements.

Average headcount by category

No Crédit Agricole group directors received attendance fees paid by CACEIS Bank in 2023.

Compensation awarded to members of executive bodies (without employment contracts) in respect of the 2023 financial year amounted to €0 thousand.

All commitments are presented under off-balance sheet items.

The total amount of advances and loans granted during the year to members of executive bodies, as well as the amount of commitments made on behalf of such persons in respect of any guarantees, amounted to €0 thousand.

Corporate officers did not receive any compensation in respect of their offices held at the company in 2023. Furthermore, they did not benefit from any post-employment or long-term benefits or severance payments.

30 COST OF RISK

31 NET INCOME ON FIXED ASSETS

32 INCOME TAX

Following the change in CACEIS'ownership structure on 23 December 2019, which resulted in CACEIS' being 69.5% owned by Crédit Agricole S.A. and 30.5% by Santander, CACEIS and its subsidiaries in France all left the consolidated tax group headed by Crédit Agricole S.A. with retroactive effect from 1 January 2019.

A consolidated tax group was set up in France headed up by CACEIS with effect from 1 January 2020. The French subsidiaries wholly-owned by CACEIS, namely CACEIS Bank, CACEIS Fund Administration and CACEIS Corporate Trust, belong to this consolidated tax group.

Given the creation of the Uptevia Joint Venture between CACEIS and BNP Paribas on January 3, 2023, Uptevia (formerly CACEIS Corporate Trust) exited the CACEIS tax consolidation in 2023.

The current corporate tax charge recorded in the income statement is €108,181 thousand.

The deferred tax is a charge of €534 thousand as of December 31, 2023.

33 INFORMATION RELATING TO PROFITS FROM BANKING ACTIVITIES

33.1 Net banking income by business segment

33.2 Net banking income by business segment and region

33.3 Income from ordinary activities by business segment

33.4 Income from ordinary activities by region

34 EXEMPTION FROM PREPARING CONSOLIDATED FINANCIAL STATEMENTS

CACEIS Bank is fully consolidated by CACEIS, which has its registered office at 1 place Valhubert, 75013 Paris, in the latter's consolidated financial statements.

CACEIS Bank is also fully consolidated in the consolidated financial statements of Crédit Agricole SA.

CACEIS Bank is not the parent company of a sub-group and as such does not have to prepare consolidated financial statements.

35 APPROPRIATION OF INCOME

The Board of Directors of CACEIS Bank has decided to propose to the shareholders that the net income of CACEIS BANK under financial year 2023, amounting to € 295,742,800.07 be allocated as follows:

(In Euros)

36 PRESENCE IN NON-COOPERATIVE STATES OR TERRITORIES

CACEIS Bank does not have a direct or indirect presence in any non-cooperative states or territories within the meaning of Article 238-0 A of the French General Tax Code.