BPCE - 2019 Universal Registration Document

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FINANCIAL REPORT

IFRS CONSOLIDATED FINANCIAL STATEMENTS OF GROUPE BPCE AS AT DECEMBER 31, 2019

Mergers and full transfers of assets and liabilities In 2019, Vendôme Investissements was absorbed by Crédit • Foncier via a total transfer of assets and liabilities, with retroactive effect at January 1, 2019. EDEL absorbed its subsidiary MONIFO via a total transfer of assets and liabilities, with retroactive effect at January 1, 2019. Locindus was merged with Crédit Foncier subsequent to a • public delisting offer, with retroactive effect at January 1, 2019. Sofiscop was absorbed by Sofiscop Sud Est, which took the name of the absorbed entity (Sofiscop). SIMC was absorbed by Banque Populaire Auvergne Rhône • Alpes via a total transfer of assets and liabilities. 3F Holding was absorbed by BPCE SA, via a total transfer of • assets and liabilities, with retroactive effect at January 1, 2019. GOODWILL 3.5 VALUE OF GOODWILL 3.5.1 Goodwill related to operations completed during the financial year is described in respect of Note 3.4 on “Changes in scope of consolidation”.

Natixis Brasil was sold on February 6, 2019. • The following entities were sold to Fiera Capital in accordance • with the Fiera investment protocol completed in the second quarter of 2019: Natixis Investment Managers Canada Corp, Natixis Investment Managers Canada LP, Natixis Investment Managers Capital Corporation and Natixis Investment Liquidation of Filiales LOCI, SPGRES, NJR Finance BV1, • Nexgen Reinsurance Designated Activity Company, Natixis Global Associates Germany, Natixis Global Associates Australia, AEW Partners IV Inc, Mc Donnell and Natixis Investment Corp. Deconsolidation of BP Covered Bond, SOGIMA • and SACOGIVA, securitization vehicle FCT Natixis Export Credit Agency and investment funds Mirova Global Sustainable Equity Fund, Ostrum Multi Asset Global Income, ASG Managed Futures, DNCA Archer Mid-Cap Europe, Ostrum Ultra Short Term Bonds Plus SI (C) EUR, Fructifonds Profil 6, Fructifonds Profil 9 and ABP Vie Mandat FCPI. Managers Canada Limited. OTHER DECONSOLIDATIONS

Fiscal year 2019

Fiscal year 2018

in millions of euros

Opening net value

4,489

4,304

Acquisitions (1)

233

190 (27) (16) (28)

Disposals Impairment

(2)

(88)

Other changes

(1) 34

Foreign exchange rate adjustments

66

CLOSING NET VALUE 4,489 The main acquisitions carried out over the period which led to the recognition of goodwill involved Oney Bank (€138 million recognized on the acquisition of Oney Bank by BPCE (1) and €32 million in goodwill recorded on the books of Oney Bank) and the following acquisitions: Titres Cadeaux (€10 million recorded by the Payments division), Massena Partners (+€42 million recorded by the Asset & Wealth Management division) and Azure Capital (+€11 million recorded by the Corporate & Investment Banking division). 4,665

Certain goodwill items recognized in the United States give rise to tax amortization over 15 years leading to a difference between the carrying amount of the goodwill and its tax base. This difference in accounting treatment generated a deferred tax liability of €347 million at December 31, 2019, compared with €336 million at December 31, 2018 (see Note 11.2).

At December 31, 2019, gross goodwill stood at €5,290 million and total impairment came to -€625 million. The valuation of FIDOR Bank in the Groupe BPCE consolidated financial statements was revised in 2019 to reflect its potential disposal, which resulted in an impairment loss of -€82 million. In the absence of other signs of impairment, no additional test was carried out at December 31, 2019.

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

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