BPCE - 2019 Universal Registration Document

FINANCIAL REPORT

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

However, fees and commissions that form an integral part of the effective yield on a contract are recorded under “Net interest income”. Commissions on services Commissions on services are analyzed to separately identify their different items (or performance obligations) and to assign the appropriate share of revenues to each item. Each item is then recorded in the income statement by type of service provided, and according to the method used to recognize the associated financial instrument: commissions payable or receivable on recurring services are deferred over the period in which the service is provided (payment • processing, custody fees, etc.); commissions payable or receivable on occasional services are recognized in full in income when the service is provided (fund • transfers, payment penalties, etc.); commissions payable or receivable on execution of a significant transaction are recognized in full in income on completion of • the transaction. When there is some uncertainty about the amount of a commission (incentive fee in asset management, variable financial engineering commission, etc.), only the amount that the Group is already certain to receive, given the information available at the end of the fiscal year, is recognized. Fees and commissions that form an integral part of the effective yield on an instrument, such as fees on loan commitments given or loan set-up fees, are recognized and amortized as an adjustment to the effective interest rate over the estimated term of the applicable loan. These fees and commissions are recognized as “Interest income” rather than “Fee and commission income”. Fiduciary and similar fees and commissions are those that result in assets being held or invested on behalf of individual customers, pension schemes or other institutions. Trust-management services mainly cover asset management business and custody services on behalf of third parties.

Fiscal year 2019

Fiscal year 2018

Income

Expense

Net (31)

Income

Expense

Net (28)

in millions of euros

Cash and interbank transactions

24

(55) (38)

19

(47) (39)

5

Customer transactions

2,986

2,948

3,173

3,134

Financial services

515

(604)

(89)

670

(721)

(52)

Sales of life insurance products

1,222 1,754

///

1,222 1,155

1,237 1,660

///

1,237 1,116

Payment services

(599) (139)

(543) (181)

Securities transactions

222

83

216

35

Trust management services (1)

4,133

(4)

4,128

3,976

(5)

3,971

Financial instruments and off-balance sheet transactions

446 305

(110) (474)

336

475 266

(109) (477)

366

Other fee and commission income/(expense)

(169) 9,585

(212) 9,568

TOTAL FEE AND COMMISSION INCOME AND EXPENSES

11,607

(2,022)

11,691

(2,123)

O/w performance fees in the amount of €627 million (o/w €537 million for Europe) in 2019, versus €426 million (o/w €420 million for Europe) in 2018. *

245

UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE