BPCE - 2018 Registration document

5 FINANCIAL REPORT

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

7.1.2

Cost of credit risk

Accounting principles Cost of risk applies to debt instruments classified as financial assets at amortized cost or at fair value through other comprehensive income recyclable to income as well as financing commitments and financial guarantees given that are not recognized at fair value through profit or loss. It also applies to receivables relating to leasing contracts, business loans and contract assets. This item therefore covers net impairment and provision charges for credit risk. Credit losses related to other types of instruments (derivatives or securities designated at fair value through profit or loss) recorded as a result of default by credit institutions are also included under this item. Irrecoverable loans not covered by provisions for impairment are loans that are permanently lost before being provisioned in Stage 3.

Cost of risk for the period

Fiscal year 2018

in millions of euros

Net charge to provisions and provisions for impairment

(278)

Recoveries of bad debts written off

23

Irrecoverable loans not covered by provisions for impairment

(130) (385)

TOTAL COST OF CREDIT RISK

Figures for 2017 under IAS 39

Fiscal year 2017

in millions of euros

Net charge to provisions and provisions for impairment

(432)

Recoveries of bad debts written off

19

Irrecoverable loans not covered by provisions for impairment

(98)

TOTAL COST OF CREDIT RISK

(511)

Cost of risk for the period by type of asset

Fiscal year 2018

in millions of euros

Interbank transactions Customer transactions Other financial assets

43

(325) (103) (385)

TOTAL COST OF CREDIT RISK

Figures for 2017 under IAS 39

Fiscal year 2017

in millions of euros

Interbank transactions Customer transactions Other financial assets

(12)

(486)

(13)

TOTAL COST OF CREDIT RISK

(511)

478

Registration document 2018