BPCE - 2018 Registration document

FINANCIAL REPORT IFRS Consolidated Financial Statements of BPCE SA group as at December 31, 2018

impaired, Stage 1 or Stage 2) based on expert opinion when no uncertainty remains as to the borrower’s capacity to honor the commitment. When the extent of the restructuring is substantial (for example the conversion of all or part of a loan into equity instruments), the new instruments are booked at fair value and the difference between the carrying amount of the derecognized loan (or part of the loan) and the fair value of the assets received in exchange is taken to income under “Cost of credit risk”. Any impairment previously recorded on the loan is adjusted and fully reversed if the loan is fully converted into a new asset. Fees and commissions External costs consist primarily of commissions paid to third parties in connection with the arrangement of loans. They essentially comprise commissions paid to business providers. Income directly attributable to the issuance of new loans principally comprises set-up fees charged to customers, rebilled costs and commitment fees (if it is more probable than improbable that the loan will be drawn down). Commitment fees received that

will not result in any drawdowns are apportioned on a straight-line basis over the life of the commitment. Expenses and income arising on loans with a term of less than one year at inception are deferred on a pro rata basis with no recalculation of the effective interest rate. For floating or adjustable rate loans, the effective interest rate is adjusted at each rate refixing date. Date of recognition Securities are recorded in the balance sheet on the settlement/delivery date. Temporary transfers of securities are also recorded on the settlement/delivery date. The first-in, first-out (FIFO) method is applied to any partial disposals of securities, except in special cases. For repurchase transactions, a loan commitment given is recorded between the transaction date and the settlement/delivery date when such transactions are recorded as “Loans and receivables”.

5.5.1

Securities at amortized cost

12/31/2018

01/01/2018

in millions of euros

Treasury bills and equivalent Bonds and other debt securities Impairment for expected credit losses

4,182

8,993 7,067 (137)

11,471

5

(154)

TOTAL SECURITIES AT AMORTIZED COST

15,499

15,923

The fair value of securities at amortized cost is presented in Note 10. The classification of outstanding loans and impairment for credit losses by impairment Stage is detailed in Note 7.1.

5.5.2 Loans and receivables due from credit institutions at amortized cost

12/31/2018

01/01/2018

in millions of euros

Current accounts with overdrafts

7,278 2,089

6,540 1,725

Repurchase agreements Accounts and loans*

115,817

105,181

Other loans or receivables due from credit institutions

812

1,378 3,548

Security deposits paid

3,317

Impairment for expected credit losses

(51)

(68)

TOTAL 118,304 Livret A, LDD and LEP savings accounts centralized with Caisse des Dépôts et Consignations and recorded under “Accounts and loans” amounted to €247 million at December 31, 2018 versus * €297 million at January 1, 2018. 129,262

The fair value of loans and receivables due from banks is presented in Note 10. The classification of outstanding loans and impairment for credit losses by impairment Stage is detailed in Note 7.1.

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Registration document 2018