BPCE - 2018 Registration document

5 FINANCIAL REPORT

IFRS Consolidated Financial Statements of Groupe BPCE as at December 31, 2018

01/01/2018

Carrying amount under IAS 39

Carrying amount under IFRS 9

Financial assets under IAS 39

Classification under IFRS 9 Note

Held-to-maturity financial assets

7,834

Fixed-income securities

Insurance business investments Debt instruments at amortized cost

(l)

2,655 5,168

7,834

Accrued income and other assets

60,290 60,290

Accrued income and other assets

26,061 15,518

Financial assets at fair value through profit or loss

Loans or receivables due from credit institutions at amortized cost Loans or receivables due from customers at amortized cost

4,948

443

Insurance business investments

(l)

13,322

Investment property

1,994

Insurance business investments

(l)

1,204

Investment property

1,994

790

Cash and amounts due from central banks Revaluation differences on interest rate risk-hedged portfolios

94,702

94,698

5,805 1,470 3,081 1,195 4,112 4,461 1,167 4,304

5,798 1,470 3,754 1,195 4,105 4,461 1,167 4,304

Current tax assets Deferred tax assets

Non-current assets held for sale Investments in associates Property, plant and equipment

Intangible assets

Goodwill

TOTAL

1,259,850

1,258,873

Impairment on a portfolio basis is recognized as a deduction from assets, like individual impairment, and is therefore included in the carrying amount of the instruments. * Application of IFRS 9 criteria (Note 2.5) relating to the business models and contractual terms of financial instruments led the Group to make the following modifications to the classification of financial assets compared with IAS 39: Fixed-income securities classified as “Financial assets designated at fair value” according to IAS 39 were classified as “Financial assets at fair value through profit or loss” under IFRS 9 for €208 million, as they (a) are managed under a trading business model. Fixed-income securities reclassified as “Financial assets at fair value through profit or loss” under IFRS 9 because they failed the SPPI test stood at €474 million. Variable-income securities classified as “Financial assets designated at fair value” under IAS 39 and managed under a trading business model were classified as “Financial assets at fair value through profit or (b) loss” under IFRS 9 for €242 million. Loans and receivables classified as “Financial assets designated at fair value” under IAS 39 and managed according to a trading business model were classified as “Financial assets at fair value through profit (c) or loss” under IFRS 9 for €2,421 million. Loans and receivables reclassified as “Financial assets at fair value through profit or loss” under IFRS 9 because they failed the SPPI test stood at €3,691 million. Securities received under repurchase agreements classified as “Financial assets designated at fair value” under IAS 39, managed under a trading business model, were classified as “Financial assets at fair (d) value through profit or loss” under IFRS 9 for €34,504 million. Debt instruments classified as “Available-for-sale financial assets” under IAS 39 were classified as “Financial assets at fair value through profit or loss” under IFRS 9 in the amount of €325 million because they (e) failed the SPPI test. Debt instruments corresponding mainly to the liquidity reserve securities portfolio, managed under a hold to collect and sell business model, were reclassified in the amount of €32,073 million as “Financial (f) assets at fair value through OCI” under IFRS 9. This reclassification had no impact on opening equity. Debt instruments classified as “Available-for-sale financial assets” under IAS 39 and reclassified as assets at amortized cost under IFRS 9 stood at €15,212 million. This reclassification did not have a material impact on opening equity. Unconsolidated UCITS units in the amount of €4,493 million are considered non-SPPI debt instruments under IFRS 9 and are therefore classified as “Financial assets at fair value through profit or loss”. (g) Other variable-income securities (excluding investments in associates) managed under a trading business model are reclassified as “Financial assets at fair value through profit or loss” under IFRS 9. Investments in associates reclassified as “Financial assets at fair value through profit or loss” under IFRS 9 stood at €789 million. Investments in associates reclassified as “Financial assets at fair value through OCI” (non-recyclable) under IFRS 9 represented €2,098 million. (h) These are loans or receivables classified as “Loans and receivables” under IAS 39 and reclassified as “Financial assets at fair value through profit or loss” under IFRS 9 because they failed the SPPI test for (i) €87 million. This reclassification did not have a material impact on equity. These are debt instruments classified as “Loans and receivables” under IAS 39 and reclassified as “Financial assets at fair value through profit or loss” under IFRS 9 because they failed the SPPI test for (j) €149 million. Debt instruments managed under a hold to collect and sell business model were reclassified in the amount of €688 million as “Financial assets at fair value through OCI” under IFRS 9. This reclassification did not have a material impact on opening equity. Securities received under repurchase agreements classified as “Loans and receivables” under IAS 39 and managed under a trading business model are recognized as “Financial assets at fair value through (k) profit or loss” under IFRS 9 for €47,317 million. Reclassification of financial assets of the insurance businesses to “Insurance business investments” in accordance with the ANC recommendation. (l)

The impacts of the transition related to changes in classification and to the application of the new provisioning method are provided in Note 5.1.6 §1.

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Registration document 2018