BPCE - 2019 Universal Registration Document

FINANCIAL REPORT

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

In the event of disposal, changes in fair value are not transferred to profit or loss but are taken directly to retained earnings. Only dividends affect income when they correspond to a return on investment. They are recorded in “Net gains or losses on financial instruments at fair value through other comprehensive income” (Note 4.4).

12/31/2019

12/31/2018

in millions of euros

Loans and receivables

45

26

Debt securities

41,497

37,382

Shares and other equity securities (1)(2)

3,089

2,680

FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

44,630

40,088

(81) 495 350 145

(67)

o/w impairment for expected credit losses (3)

o/w gains and losses recognized directly in other comprehensive income (before tax) (4)

93

112

Debt instruments • Equity instruments •

(19) Equities and other equity securities include strategic equity interests and certain long-term private equity securities. As these securities are not held for sale, their classification (1) as equity instruments designated at fair value through other comprehensive income is appropriate. In fiscal year 2019, Natixis Investment Managers acquired stakes in asset management company Fiera Capital for €85 million and in US asset management company WCM (2) Investment Management for €253 million. Details are provided in Note 7.1.1. (3) Including the portion attributable to non-controlling interests (+€6 million at December 31, 2019, compared with -€15 million at December 31, 2018). (4)

EQUITY INSTRUMENTS DESIGNATED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Accounting principles Equity instruments designated at fair value through other comprehensive income can include: investments in associates; • shares and other equity securities. • On initial recognition, equity instruments designated at fair value through other comprehensive income are carried at fair value plus any transaction costs. On following accounting dates, changes in the fair value of the instrument are recognized in other comprehensive income (OCI). These changes in fair value that accrue to other comprehensive income will not be reclassified to profit or loss in

5

subsequent years (other comprehensive income not recyclable to profit or loss). Dividends are only taken to income when they meet the required conditions.

12/31/2019

12/31/2018

Dividends recognized over the period Equity instruments held at the end of the period

Dividends recognized over the period Equity instruments held at the end of the period

Derecognition over the period

Derecognition over the period

Total profit or loss at the disposal date

Total profit or loss at the disposal date

Fair value at the disposal date

Fair value at the disposal date

Fair value 2,631

Fair value 2,167

in millions of euros

Investments in associates

153

232 175 407

124 (14) 110

107

42 18 60

(4) (5) (9)

Shares and other equity securities

458

17

513

12

TOTAL

3,089

170

2,680

119

261

UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE