BPCE - 2019 Universal Registration Document

Message from the chairman of the management board3
Groupe BPCE at a glance4
A solid group generating robust performances6
Balanced governance8
Our commitment to making sustainable development a reality10
1.1 Group history14
1.2 Understanding the structure of Groupe BPCE16
1.3 Highlights18
1.4 TEC 2020: a strategic plan focused on digital transformation, commitment and growth20
1.5 Groupe BPCE’s business lines23
1.6 Calendar40
1.7 Contacts40
2.1 Putting our cooperative identity to work for regional development44
2.1.1 Drawing on our business model to create sustainable, robust value44
2.1.2 Contributing to local development – Our regional footprint48
2.2 Applying CSR in our activities54
2.2.1 Engagement and dialog55
2.2.2 Measuring our performance58
2.2.3 Identify and manage risks to boost growth60
2.2.4 Our key performance indicators:61
2.3 Supporting the energy, ecological and social transition in local regions66
2.3.1 Reflecting environmental, social and governance risks and our customers’ requirements and aspirations in our strategy67
2.3.2 Financing and facilitating the energy, ecological and social transition with Groupe BPCE’s products and services70
2.3.3 Steering customers’ deposits and savings towards a more responsibleeconomy78
2.4 Responsible internal and external practices83
2.4.1 Respecting business ethics83
2.4.2 Reducing Groupe BPCE’s carbon footprint94
2.4.3 Looking after our employees98
2.5 CSR reporting methodology106
2.5.1 CSR reporting structure106
2.5.2 Reporting scope for 2019108
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 report110
2.7 Cross-reference table of the main social, environmental and societal information112
3.1 Introduction114
3.2 Corporate Governance Code114
3.3 Management and Supervisory Bodies116
3.3.1 Groupe BPCE governance structure (1)116
3.3.2 Supervisory Board118
3.3.3 Management Board125
3.3.4 Executive Management Committee – BPCE governing body126
3.3.5 Directorships and offices held by corporate officers127
3.4 Role and operating rules of governing bodies158
3.4.1 Supervisory Board158
3.4.2 Specialized committees161
3.4.3 Attendance of Supervisory Board and Specialized Committee Meetings166
3.4.4 Management Board166
3.4.5 Annual General Shareholders’ Meetings167
3.5 Rules and principles governing the determination of pay and benefits169
3.5.1 Pay policy, components of pay, benefits in kind, loans, guarantees and attendance fees received by members of the Supervisory Board of BPCE169
3.5.2 Corporate officer pay policy for fiscal year 2020174
3.5.3 Pay and benefits of any kind awarded to company directors for 2019181
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 Code190
3.6 Potential conflicts of interest191
3.6.1 Members of the Supervisory Board191
3.6.2 Members of the Management Board191
4.1 Foreword194
4.2 Significant events of 2019194
4.2.1 Economic and financial environment194
4.2.2 Significant events of the fiscal year195
4.3 Groupe BPCE financial data198
4.3.1 Groupe BPCE results198
4.3.2 The Group’s business lines199
4.3.3 Income statement by sector200
4.3.4 Retail Banking and Insurance201
4.3.5 Asset & Wealth Management205
4.3.6 Corporate and Investment Banking (CIB)207
4.3.7 Corporate Center208
4.3.8 Analysis of the Groupe BPCE consolidated balance sheet209
4.4 BPCE SA group financial data211
4.4.1 BPCE SA group results211
4.4.2 Analysis of BPCE SA group’s consolidated balance sheet212
4.5 Investments213
4.5.1 In 2019213
4.5.2 In 2018213
4.5.3 In 2017213
4.6 Post-balance sheet events213
4.7 Outlook for Groupe BPCE214
Groupe BPCE and BPCE SA group scopes of consolidation218
5.1 IFRS Consolidated Financial Statements of Groupe BPCE as at December 31, 2019219
5.1.1 Consolidated income statement219
5.1.2 Comprehensive income220
5.1.3 Consolidated balance sheet221
5.1.4 Statement of changes in equity222
5.1.5 Consolidated cash flow statement224
5.1.6 Notes to the financial statements of Groupe BPCE225
5.2 Statutory Auditors’ report on the consolidated financial statements359
5.3 IFRS Consolidated Financial Statements of BPCE SA group as at December 31, 2019367
5.3.1 Consolidated income statement367
5.3.2 Comprehensive income368
5.3.3 Consolidated balance sheet369
5.3.4 Statement of changes in equity370
5.3.5 Consolidated cash flow statement372
5.3.6 Notes to the financial statements of BPCE SA group373
5.4 Statutory Auditors’ report on the consolidated financial statements486
5.5 BPCE management report495
5.6 BPCE parent company annual financial statements502
5.6.1 Balance sheet and off-balance sheet items503
5.6.2 Notes to the parent company annual financial statements505
5.7 Statutory Auditors’ report on the consolidated financial statements543
5.8 Controls of accounting and financial reporting quality547
5.8.1 Roles and responsibilities in preparing and processing accounting and financial information547
5.8.2 Production processes for accounting and financial data548
5.8.3 Accounting and financial data control process549
5.9 Persons responsible for auditing the financial statements552
5.9.1 Statutory Audit system552
5.9.2 Statutory Auditors of BPCE552
6.1 Key figures557
6.1.1 Types of risk559
6.1.2 Regulatory changes560
6.2 Risk factors561
6.3 Risk management system571
6.3.1 Adequacy of risk management systems571
6.3.2 Risk appetite571
6.3.3 Risk management574
6.3.4 Internal control581
6.3.5 Recovery Plan585
6.4 Capital management and capital adequacy586
6.4.1 Regulatory framework586
6.4.2 Scope of application587
6.4.3 Composition of regulatory capital590
6.4.4 Regulatory capital requirements and risk-weighted assets593
6.4.5 Management of capital adequacy594
6.5 Credit risks598
6.5.1 Credit risk management598
6.5.2 Risk measurement and internal ratings604
6.5.3 Credit risk mitigation techniques609
6.5.4 Quantitative disclosures612
6.6 Counterparty risk620
6.6.1 Counterparty risk management620
6.6.2 Quantitative disclosures621
6.7 Securitization transactions623
6.7.1 Regulatory framework and accounting methods623
6.7.2 Securitization management at Groupe BPCE625
6.7.3 Quantitative disclosures626
6.8 Market risks629
6.8.1 Market risk policy629
6.8.2 Market risk management629
6.8.3 Market risk measurement methods630
6.8.4 Quantitative disclosures632
6.9 Liquidity, interest rate and foreign exchange risks635
6.9.1 Governance and structure635
6.9.2 Liquidity risk management policy635
6.9.3 Quantitative disclosures637
6.9.4 Management of structural interest rate risk640
6.9.5 Management of structural foreign exchange risk641
6.10 Legal risks642
6.10.1 Legal and arbitration proceedings – BPCE642
6.10.2 Legal and arbitration proceedings – Natixis642
6.10.3 Dependency645
6.11 Non-compliance and security risks646
6.11.1 Compliance646
6.11.2 Financial security648
6.11.3 Business continuity649
6.11.4 Information System Security (ISS)649
6.12 Operational risks651
Insurance risks654
6.13 Climate risk658
Highlights and strategic objectives658
7.1 Charter of incorporation and articles of association660
7.1.1 General information660
7.1.2 Appropriation of earnings661
7.1.3 Company documents661
7.2 Share capital662
7.2.1 Share capital at December 31, 2019662
7.2.2 Category “A” and “B” shares662
7.3 Ownership structure and distribution of voting rights664
7.3.1 Ownership structure over the past three years664
7.3.2 Improper control665
7.3.3 Changes of control665
7.4 Material contracts665
7.5 Material changes665
7.6 Statutory Auditors’ special report on related-party agreements and commitments666
7.6.1 Agreements to be submitted for the approval of the Annual General Shareholders’ Meeting667
7.6.2 Agreements already approved by the Annual General Shareholders’ Meeting668
8.1 Statement by the person responsible for the universal registration document and for the annual financial report680
8.2 Documents on display681
8.3 Cross-reference table for the universal registration document682
8.4 Cross-reference table for the annual financial report and the management report684
8.5 Glossary686

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