BPCE - 2018 Registration document

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

Transferred financial assets not fully derecognized and other financial assets pledged as collateral 5.19.1

Carrying amount

Assets transferred or pledged as collateral

Outright securities lending

Repurchase agreements

12/31/2018

Securitizations

in millions of euros

Financial assets at fair value through profit or loss – Held for trading Financial assets at fair value through profit or loss – Non SPPI Financial assets at fair value through other comprehensive income

2,071

7,455

2,641

782

12,950

11

11

5

407

412

Financial assets at amortized cost

18,654 21,713 11,779

5,457 6,239 6,239

24,111 37,483 27,549

TOTAL FINANCIAL ASSETS PLEDGED AS COLLATERAL o/w transferred financial assets not fully derecognized

2,071 2,071

7,460 7,460

The amount of liabilities associated with financial assets pledged as collateral for repurchase agreements came to € 6,653 million at December 31, 2018 ( € 13,561 million at December 31, 2017).

The fair value of assets pledged as collateral for non-deconsolidating securitization transactions was € 6,239 million at December 31, 2018 ( € 5,379 million at December 31, 2017) and the amount of related liabilities came to € 5,190 million at December 31, 2018.

TRANSFERRED FINANCIAL ASSETS NOT FULLY DERECOGNIZED AND OTHER FINANCIAL ASSETS PLEDGED AS COLLATERAL ➡ AS OF DECEMBER 31, 2017

5

Carrying amount

Assets transferred or pledged as collateral

Outright securities lending

Repurchase agreements

Securitizations

12/31/2017

in millions of euros

Financial assets held for trading

1,656

14,215

653

16,524

Financial assets designated at fair value through profit or loss

12

12

Available-for-sale financial assets

6,418

6,418

Loans and receivables

2

13,433 19,863 13,213

4,726 5,379 5,379

18,161 41,115 34,465

TOTAL FINANCIAL ASSETS PLEDGED AS COLLATERAL o/w transferred financial assets not fully derecognized

1,656 1,656

14,217 14,217

5.19.1.1 Comments on transferred financial assets SECURITIES REPURCHASING AND LENDING BPCE SA group repurchases and loans securities.

SECURITIZATIONS CONSOLIDATED WITH OUTSIDE INVESTORS Securitizations consolidated with outside investors constitute an asset transfer according to the amendment to IFRS 7. The Group has an indirect contractual obligation to transfer to outside investors the cash flow from assets transferred to the securitization fund (although these assets are included in the Group’s balance sheet through the consolidation of the fund). In the interest of transparency, for consolidated securitization transactions: the share of receivables sold attributable to external investors is ● considered to be pledged as collateral to third parties; the share of receivables sold attributable to units and bonds ● subscribed for by the Group, and eliminated on consolidation, is not considered to be pledged as collateral unless these securities were brought to Groupe BPCE’s single treasury and central bank collateral management pool and used as part of a refinancing mechanism.

Under the terms of the agreements, the securities may be sold on by the purchaser throughout the duration of the repurchase or lending operation. The purchaser must nevertheless return them to the vendor at the transaction’s maturity date. The cash flows generated by the securities are also transferred to the vendor. The Group believes that it has retained almost all of the risks and benefits of the securities repurchased or loaned. They have therefore not been derecognized. Financing has been recorded in liabilities for the repurchasing or lending of financed securities. SALES OF RECEIVABLES BPCE SA group sells receivables as security (Articles L. 211-38 or L. 313-23 et seq. of the French Monetary and Financial Code) under guaranteed refinancing operations, notably with the central bank. This type of disposal for security involves the legal transfer of the associated contractual rights, and therefore the “transfer of assets” within the meaning of the amendment to IFRS 7. The Group nevertheless remains exposed to virtually all the risks and benefits, and as such the receivables are maintained on the balance sheet.

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Registration document 2018