Contents | II |
Message from the chairman of the management board | 3 |
Groupe BPCE at a glance | 4 |
A solid group generating robust performances | 6 |
Balanced governance | 8 |
Our commitment to making sustainable development a reality | 10 |
1. PRESENTATION OF GROUPE BPCE | 13 |
1.1 Group history | 14 |
1.2 Understanding the structure of Groupe BPCE | 16 |
1.3 Highlights | 18 |
1.4 TEC 2020: a strategic plan focused on digital transformation, commitment and growth | 20 |
1.5 Groupe BPCE’s business lines | 23 |
1.6 Calendar | 40 |
1.7 Contacts | 40 |
2. NON-FINANCIAL PERFORMANCE REPORT | 41 |
Introduction | 42 |
2.1 Putting our cooperative identity to work for regional development | 44 |
2.1.1 Drawing on our business model to create sustainable, robust value | 44 |
2.1.2 Contributing to local development – Our regional footprint | 48 |
2.2 Applying CSR in our activities | 54 |
2.2.1 Engagement and dialog | 55 |
2.2.2 Measuring our performance | 58 |
2.2.3 Identify and manage risks to boost growth | 60 |
2.2.4 Our key performance indicators: | 61 |
2.3 Supporting the energy, ecological and social transition in local regions | 66 |
2.3.1 Reflecting environmental, social and governance risks and our customers’ requirements and aspirations in our strategy | 67 |
2.3.2 Financing and facilitating the energy, ecological and social transition with Groupe BPCE’s products and services | 70 |
2.3.3 Steering customers’ deposits and savings towards a more responsibleeconomy | 78 |
2.4 Responsible internal and external practices | 83 |
2.4.1 Respecting business ethics | 83 |
2.4.2 Reducing Groupe BPCE’s carbon footprint | 94 |
2.4.3 Looking after our employees | 98 |
2.5 CSR reporting methodology | 106 |
2.5.1 CSR reporting structure | 106 |
2.5.2 Reporting scope for 2019 | 108 |
2.6 Report by one of the Statutory Auditors, appointed as independent third-party, on the consolidated Non-Financial Performance Statement published in the Group management report | 110 |
2.7 Cross-reference table of the main social, environmental and societal information | 112 |
3. REPORT ON CORPORATE GOVERNANCE | 113 |
3.1 Introduction | 114 |
3.2 Corporate Governance Code | 114 |
3.3 Management and Supervisory Bodies | 116 |
3.3.1 Groupe BPCE governance structure (1) | 116 |
3.3.2 Supervisory Board | 118 |
3.3.3 Management Board | 125 |
3.3.4 Executive Management Committee – BPCE governing body | 126 |
3.3.5 Directorships and offices held by corporate officers | 127 |
3.4 Role and operating rules of governing bodies | 158 |
3.4.1 Supervisory Board | 158 |
3.4.2 Specialized committees | 161 |
3.4.3 Attendance of Supervisory Board and Specialized Committee Meetings | 166 |
3.4.4 Management Board | 166 |
3.4.5 Annual General Shareholders’ Meetings | 167 |
3.5 Rules and principles governing the determination of pay and benefits | 169 |
3.5.1 Pay policy, components of pay, benefits in kind, loans, guarantees and attendance fees received by members of the Supervisory Board of BPCE | 169 |
3.5.2 Corporate officer pay policy for fiscal year 2020 | 174 |
3.5.3 Pay and benefits of any kind awarded to company directors for 2019 | 181 |
3.5.4 Procedure for enforcing pay policies and practices covered by Articles L. 511-71 to L. 511-88 of the French Monetary and Financial Code | 190 |
3.6 Potential conflicts of interest | 191 |
3.6.1 Members of the Supervisory Board | 191 |
3.6.2 Members of the Management Board | 191 |
4. ACTIVITIES AND FINANCIAL INFORMATIONS 2019 | 193 |
4.1 Foreword | 194 |
4.2 Significant events of 2019 | 194 |
4.2.1 Economic and financial environment | 194 |
4.2.2 Significant events of the fiscal year | 195 |
4.3 Groupe BPCE financial data | 198 |
4.3.1 Groupe BPCE results | 198 |
4.3.2 The Group’s business lines | 199 |
4.3.3 Income statement by sector | 200 |
4.3.4 Retail Banking and Insurance | 201 |
4.3.5 Asset & Wealth Management | 205 |
4.3.6 Corporate and Investment Banking (CIB) | 207 |
4.3.7 Corporate Center | 208 |
4.3.8 Analysis of the Groupe BPCE consolidated balance sheet | 209 |
4.4 BPCE SA group financial data | 211 |
4.4.1 BPCE SA group results | 211 |
4.4.2 Analysis of BPCE SA group’s consolidated balance sheet | 212 |
4.5 Investments | 213 |
4.5.1 In 2019 | 213 |
4.5.2 In 2018 | 213 |
4.5.3 In 2017 | 213 |
4.6 Post-balance sheet events | 213 |
4.7 Outlook for Groupe BPCE | 214 |
5. FINANCIAL REPORT | 217 |
Groupe BPCE and BPCE SA group scopes of consolidation | 218 |
5.1 IFRS Consolidated Financial Statements of Groupe BPCE as at December 31, 2019 | 219 |
5.1.1 Consolidated income statement | 219 |
5.1.2 Comprehensive income | 220 |
5.1.3 Consolidated balance sheet | 221 |
5.1.4 Statement of changes in equity | 222 |
5.1.5 Consolidated cash flow statement | 224 |
5.1.6 Notes to the financial statements of Groupe BPCE | 225 |
5.2 Statutory Auditors’ report on the consolidated financial statements | 359 |
5.3 IFRS Consolidated Financial Statements of BPCE SA group as at December 31, 2019 | 367 |
5.3.1 Consolidated income statement | 367 |
5.3.2 Comprehensive income | 368 |
5.3.3 Consolidated balance sheet | 369 |
5.3.4 Statement of changes in equity | 370 |
5.3.5 Consolidated cash flow statement | 372 |
5.3.6 Notes to the financial statements of BPCE SA group | 373 |
5.4 Statutory Auditors’ report on the consolidated financial statements | 486 |
5.5 BPCE management report | 495 |
5.6 BPCE parent company annual financial statements | 502 |
5.6.1 Balance sheet and off-balance sheet items | 503 |
5.6.2 Notes to the parent company annual financial statements | 505 |
5.7 Statutory Auditors’ report on the consolidated financial statements | 543 |
5.8 Controls of accounting and financial reporting quality | 547 |
5.8.1 Roles and responsibilities in preparing and processing accounting and financial information | 547 |
5.8.2 Production processes for accounting and financial data | 548 |
5.8.3 Accounting and financial data control process | 549 |
5.9 Persons responsible for auditing the financial statements | 552 |
5.9.1 Statutory Audit system | 552 |
5.9.2 Statutory Auditors of BPCE | 552 |
6. RISK REPORT | 555 |
6.1 Key figures | 557 |
6.1.1 Types of risk | 559 |
6.1.2 Regulatory changes | 560 |
6.2 Risk factors | 561 |
6.3 Risk management system | 571 |
6.3.1 Adequacy of risk management systems | 571 |
6.3.2 Risk appetite | 571 |
6.3.3 Risk management | 574 |
6.3.4 Internal control | 581 |
6.3.5 Recovery Plan | 585 |
6.4 Capital management and capital adequacy | 586 |
6.4.1 Regulatory framework | 586 |
6.4.2 Scope of application | 587 |
6.4.3 Composition of regulatory capital | 590 |
6.4.4 Regulatory capital requirements and risk-weighted assets | 593 |
6.4.5 Management of capital adequacy | 594 |
6.5 Credit risks | 598 |
6.5.1 Credit risk management | 598 |
6.5.2 Risk measurement and internal ratings | 604 |
6.5.3 Credit risk mitigation techniques | 609 |
6.5.4 Quantitative disclosures | 612 |
6.6 Counterparty risk | 620 |
6.6.1 Counterparty risk management | 620 |
6.6.2 Quantitative disclosures | 621 |
6.7 Securitization transactions | 623 |
6.7.1 Regulatory framework and accounting methods | 623 |
6.7.2 Securitization management at Groupe BPCE | 625 |
6.7.3 Quantitative disclosures | 626 |
6.8 Market risks | 629 |
6.8.1 Market risk policy | 629 |
6.8.2 Market risk management | 629 |
6.8.3 Market risk measurement methods | 630 |
6.8.4 Quantitative disclosures | 632 |
6.9 Liquidity, interest rate and foreign exchange risks | 635 |
6.9.1 Governance and structure | 635 |
6.9.2 Liquidity risk management policy | 635 |
6.9.3 Quantitative disclosures | 637 |
6.9.4 Management of structural interest rate risk | 640 |
6.9.5 Management of structural foreign exchange risk | 641 |
6.10 Legal risks | 642 |
6.10.1 Legal and arbitration proceedings – BPCE | 642 |
6.10.2 Legal and arbitration proceedings – Natixis | 642 |
6.10.3 Dependency | 645 |
6.11 Non-compliance and security risks | 646 |
6.11.1 Compliance | 646 |
6.11.2 Financial security | 648 |
6.11.3 Business continuity | 649 |
6.11.4 Information System Security (ISS) | 649 |
6.12 Operational risks | 651 |
Insurance risks | 654 |
6.13 Climate risk | 658 |
Highlights and strategic objectives | 658 |
7. LEGAL INFORMATION | 659 |
7.1 Charter of incorporation and articles of association | 660 |
7.1.1 General information | 660 |
7.1.2 Appropriation of earnings | 661 |
7.1.3 Company documents | 661 |
7.2 Share capital | 662 |
7.2.1 Share capital at December 31, 2019 | 662 |
7.2.2 Category “A” and “B” shares | 662 |
7.3 Ownership structure and distribution of voting rights | 664 |
7.3.1 Ownership structure over the past three years | 664 |
7.3.2 Improper control | 665 |
7.3.3 Changes of control | 665 |
7.4 Material contracts | 665 |
7.5 Material changes | 665 |
7.6 Statutory Auditors’ special report on related-party agreements and commitments | 666 |
7.6.1 Agreements to be submitted for the approval of the Annual General Shareholders’ Meeting | 667 |
7.6.2 Agreements already approved by the Annual General Shareholders’ Meeting | 668 |
8. ADDITIONAL INFORMATION | 679 |
8.1 Statement by the person responsible for the universal registration document and for the annual financial report | 680 |
8.2 Documents on display | 681 |
8.3 Cross-reference table for the universal registration document | 682 |
8.4 Cross-reference table for the annual financial report and the management report | 684 |
8.5 Glossary | 686 |