AFD - 2019 Universal registration document

RISK MANAGEMENT

Basel III Pillar 3

direct, unconditional, lowest rank subordinated commitments for an indefinite term without an AFD guarantee. Save for the occurrence of a regulatory event, as provided for in the agreement with the State (point of non-viability, i.e. non- compliance with the minimum CET1 ratio as provided by law at a specific time), the securities will pay an annual interest of 0.25%; P €448M of Tier Ǿ 2 capital (resources with special conditions).

The breakdown of regulatory capital at 31 Ǿ December Ǿ 2019 was as follows: P €6,177M category 1 base capital, comprising hard, non- refundable capital (mainly provisions and reserves); P €840M additional category 1 capital in the form of undated subordinated bonds subscribed by the French State. The securities commitments made by AFD (which are obligatory under French law), in terms of principle and interest, are

When itemised, the capital breaks down as follows: ❙ Consolidated risk capital

31/12/19

In millions of euros

Equity

2,808 2,493

Consolidated reserves

Earnings

68

Projected distribution (20% company income statement)

0

FRBG

460 146

Equity method diff.

4

Unrealised capital gains and losses

27

Minority interests Intangible assets

217

-36

Exclusion of unrealised gains entered in KP

0

Prudent valuation

-5

CET1 capital

6,177

CET1 deductions

0

CET1 capital after deductions T1 subordinated securities

6,177

840

T1 capital

7,018

T1 deductions

0

T1 capital after deductions

7,018

RCS

448

Subordinated loans, Art. 4d Subordinated loans, Art.

0 0

4c T2 capital T2 deductions

448

0

T2 capital after deductions

448

TOTAL CONSOLIDATED CAPITAL

7,466

❙ Inmillions of euros 4 Deductions and prudential restatements under CRR/CRD4

31/12/2019

31/12/2018

In millions of euros

Cut back of non-eligible minority interests

12.6

19.2

Exclusion of unrealised gains entered in shareholders’ equity

0.0

0.0

Prudent Value Adjustment

-4.6 8.0

-4.1

TOTAL 15.1 Articles Ǿ 81 and 479 of the CRR provide for the deduction from capital of the minority interests in entities not governed by the CRR and CRDIV, or equivalent requirements, with a transition period.

85

UNIVERSAL REGISTRATION DOCUMENT 2019