BPCE - 2019 Universal Registration Document

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ACTIVITIES AND FINANCIAL INFORMATIONS 2019

GROUPE BPCE FINANCIAL DATA

AMOUNTS DUE TO CUSTOMERS Amounts due to customers mainly comprise regulated savings accounts, current accounts in credit, customer accounts and repurchase agreements. They totaled €559.7 billion at December 31, 2019, an increase of €29.4 billion compared to December 31, 2018. This increase can mainly be broken down as follows: a sharp increase in current accounts in credit (+€23.5 billion); • higher investments in regulated savings accounts • (+€8.6 billion), underpinned by inflows from Livret A passbook savings accounts (+€2.5 billion), Livret B passbook savings accounts (+€4.8 billion), and a strong performance in home savings plans (+€1.3 billion); a decline in securities sold under repurchase agreements • (-€1.8 billion) and to a lesser degree in other amounts due to customers (factoring) (-€0.7 billion). DEBT SECURITIES These mainly comprise bonds, certificates of deposit, treasury notes, commercial paper and senior non-preferred debt, which stood at €239.3 billion at December 31, 2019. Persistently low interest rates contributed to the €22.5 billion increase in this debt in relation to 2018. The increase was mainly due to strong outstandings of senior non-preferred debt (+€5.8 billion) and certificates of deposit (+€5.1 billion) and was significantly underpinned by an increase in treasury notes and commercial paper (+€9.7 billion). LIABILITIES RELATED TO INSURANCE CONTRACTS This line mainly comprises technical liabilities related to insurance policies and financial contracts, which amounted to €110.7 billion at December 31, 2019, an increase of €11.8 billion. Technical liabilities related to insurance policies accounted for an increase of +€8.0 billion while profit sharing accounted for +€2.1 billion. SHAREHOLDERS’ EQUITY Equity attributable to equity holders of the parent totaled €69.9 billion at December 31, 2019 compared to €66.2 billion at December 31, 2018. This increase resulted from: net income for the period: +€3.0 billion; • the change in capital: +€1.6 billion in respect of issues, net of • redemptions, of Banque Populaire and Caisse d’Epargne cooperative shares.

large part to resilient groupwide performances, with special mention going to Retail Banking and Insurance. This performance can be attributed to the Caisse d’Epargne network for +€21.4 billion and the Banque Populaire network for +€15.7 billion. This momentum was mainly propelled by home loans (+€18.1 billion), short-term credit facilities (+€9.9 billion) and equipment loans (+€7.9 billion). Other customer loans saw a decline of -€2.7 billion. Non-performing loans accounted for 2.7% of gross loan outstandings at December 31, 2019. INSURANCE BUSINESS INVESTMENTS These financial assets comprise available-for-sale investments, including investments at fair value through profit or loss, loans and receivables due from customers, and the shares held by cedents and retrocessionaires in liabilities related to insurance policies and financial contracts. This portfolio totaled €119.0 billion at December 31, 2019 versus €110.3 billion in fiscal year 2018. The €8.8 billion increase was the result of fast-growing business (+7.9%). 2019 saw strong momentum across all insurance segments. Natixis, which accounted for 89.9% of outstandings at December 31, 2019, recorded inflows of €10.4 billion in life insurance, while its non-life and provident insurance activities saw gains of +6.4% and +12.2% respectively. CHANGES IN SIGNIFICANT LIABILITY ITEMS FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS On the liabilities side, this portfolio consists of debt instruments carried at fair value at the reporting date, with an offsetting entry on the income statement. At December 31, 2019, these liabilities amounted to €201.8 billion, up by €6.9 billion (+3.5%) over the period. This increase can be explained by the increase in other financial liabilities held for trading purposes (+€5.4 billion), debt securities designated at fair value through profit or loss (+€2.1 billion), and security deposits received (+€1.4 billion). AMOUNTS DUE TO BANKS Amounts due to banks consist mainly of term borrowings and to a lesser extent current accounts. They amounted to €76.7 billion, a decrease of €9.0 billion over the year (-10.5%), incorporating lower term borrowing (-€11.1 billion) which was partially offset by the increase in amounts due to credit institutions on demand (+€2.1 billion).

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

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