BPCE - 2019 Universal Registration Document

5

FINANCIAL REPORT

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

Fiscal year 2019

Fiscal year 2018

Interest income

Interest expenses

Interest income

Interest expenses

Net 526

Net 465

in millions of euros

Loans to/borrowings from banks (1) Loans to/borrowings from customers Bonds and other debt securities held/issued

1,123

(597)

1,107

(642)

15,965

(4,738) (4,323)

11,227 (3,408)

15,568

(4,577) (4,086)

10,991 (3,037)

915

1,049

Subordinated debt Lease liabilities (2)

(664)

(664)

(679)

(679)

(25)

(25)

///

///

///

Financial assets and liabilities at amortized cost (excluding finance leases)

18,003

(10,347)

7,656

17,724

(9,984)

7,740

Finance leases Debt securities

467 587

///

467 587

492 547

(4)

488 547

Financial assets at fair value through other comprehensive income TOTAL FINANCIAL ASSETS AND LIABILITIES AT AMORTIZED COST AND AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (3) Non-standard financial assets not held for trading

587

587

547

547

19,057

(10,347)

8,710

18,763

(9,988)

8,775

114

114

158

158

Hedging derivatives

4,306

(4,751)

(445)

4,208

(4,623)

(415)

Economic hedging derivatives

668

(386)

282

352

(229)

123

TOTAL INTEREST INCOME AND EXPENSES 8,641 Interest income from loans and receivables with banks consists of €737 million in income (€720 million in 2018) collected on the Livret A, LDD and LEP passbook savings (1) accounts, which are deposited with Caisse des Dépôts et Consignations. Information in respect of fiscal year 2018 has not been restated to account for the impacts of the first-time application of IFRS 16 “Leases” in accordance with the option offered (2) by this standard. The impacts of the first-time application of IFRS 16 on the balance sheet at January 1, 2019 are presented in Note 2.2. Interest income from financial assets with a known credit risk (S3) amounted to €493 million in 2019, o/w €490 million in financial assets at amortized cost. (3) 24,145 (15,484) 8,661 23,481 (14,840)

4.2

FEE AND COMMISSION INCOME AND EXPENSES

Accounting principles

Under IFRS 15 “Revenue from Contracts with Customers”, recognition of revenue from ordinary activities reflects the transfer of control of goods and services promised to customers in an amount corresponding to the consideration that the entity expects to receive in exchange for these goods and services. The recognition of this revenue calls for a five-step approach: identification of contracts with customers; • identification of specific performance obligations (or items) to be recognized separately from one another; • determination of the overall transaction price; • allocation of the transaction price to the various specific performance obligations; • recognition of revenue when performance obligations are met. • This approach applies to contracts entered into by an entity with its customers, with the exception of leases (covered by IFRS 16), insurance contracts (covered by IFRS 4) and financial instruments (covered by IFRS 9). If specific stipulations relating to revenue or contract costs are given under a different standard, these will be applied first. This method primarily applies to the following Group activities: fee and commission income, notably that relating to banking services when this income is not included in the effective interest • rate, or that relating to asset management or financial engineering services; income from other activities (see Note 4.6), in particular for services included in leases. • As a result, fees and commissions are recorded based on the type of service rendered and on the method of accounting for the financial instruments to which the service relates. This line includes mainly fees and commissions receivable or payable on recurring services (payment processing, custody fees, etc.) and occasional services (fund transfers, late payment penalties, etc.), fees and commissions receivable or payable on execution of significant transactions, and fees and commissions receivable or payable on trust assets held or managed on behalf of the Group’s customers.

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

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