BPCE - 2018 Registration document

5 FINANCIAL REPORT

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

SUBORDINATED DEBT 5.14

Accounting principles Subordinated debt differs from other debt and bonds in that it will be repaid only after all the senior and unsecured creditors, but before the repayment of participating loans and securities and deeply subordinated notes. Subordinated debt which the issuer is obliged to repay is classified as debt and initially recognized at fair value less any transaction costs. It is subsequently measured at amortized cost at each balance sheet date using the Effective Interest Method.

12/31/2018

01/01/2018

in millions of euros

Subordinated debt designated at fair value through profit or loss SUBORDINATED DEBT AT FAIR VALUE THROUGH PROFIT OR LOSS

100 100

100 100

Term subordinated debt Perpetual subordinated debt Subordinated debt and similar

16,214

15,933

317

312

16,531

16,245

Accrued interest

360 504

321 489

Revaluation of the hedged component

SUBORDINATED DEBT AT AMORTIZED COST

17,395 17,495

17,056 17,156

TOTAL SUBORDINATED DEBT*

Including €672 million for the insurance entities at December 31, 2018, versus €639 million at December 31, 2017. *

The fair value of subordinated debt is presented in Note 10.

Changes in subordinated debt and similar during the year

12/31/2018

01/01/2018

Issuance (1)

Redemption (2) Other changes (3)

in millions of euros

Subordinated debt designated at fair value through profit or loss SUBORDINATED DEBT AT FAIR VALUE THROUGH PROFIT OR LOSS

100

100

100

100

Term subordinated debt Perpetual subordinated debt

15,933

(70) (30)

349

16,214

312

36

317

SUBORDINATED DEBT AT AMORTIZED COST

16,245 16,345

(100) (100)

385 385

16,531 16,631

SUBORDINATED DEBT AND SIMILAR

No new issuance was made in the 2018 fiscal year. (1) Redemptions of subordinated loans and notes were due to the maturing of such borrowings. (2) Other changes mainly included the revaluation of debts subject to hedging, foreign exchange fluctuations and variations in intra-group securities held by Natixis Funding for the purposes of (3) market-making on Natixis’ debt on the secondary market.

Deeply subordinated notes qualifying as equity instruments are presented in Note 5.15.

464

Registration document 2018