BPCE - 2019 Universal Registration Document

FINANCIAL REPORT

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

5.10

DEBT SECURITIES

Accounting principles Issues of debt securities not classified as financial liabilities at fair value through profit or loss or through other comprehensive income are initially recognized at fair value less any transaction costs. They are subsequently measured at amortized cost at each balance sheet date using the effective interest method. These instruments are recognized on the balance sheet under “Amounts due to banks”, “Amounts due to customers” or “Debt securities”. Debt securities are classified based on the nature of the underlying, with the exception of subordinated notes presented under “Subordinated debt”. Securities are recorded in the balance sheet on the settlement-delivery date. The first-in, first-out (FIFO) method is applied to any partial disposals of securities, except in special cases. A new category of liabilities eligible for the numerator in the TLAC (Total Loss Absorbing Capacity) calculation has been introduced by French law and is commonly referred to as “senior non-preferred debt”. These liabilities rank between own funds and other senior preferred debt.

12/31/2019

12/31/2018

in millions of euros

Bonds

125,036 92,180

123,110 77,434

Interbank market instruments and negotiable debt securities

Other debt securities

2,266

1,919

Senior non-preferred debt

18,297 237,779

12,468 214,930

Total

Accrued interest

1,562

1,947

TOTAL DEBT SECURITIES

239,341

216,878

5

The fair value of debt securities is presented in Note 10.

5.11

AMOUNTS DUE TO BANKS AND SIMILAR, AND CUSTOMERS

Accounting principles These liabilities, which are not classified as financial liabilities at fair value through profit or loss, are carried at amortized cost under “Amounts due to banks” or “Amounts due to customers”. Issues of debt securities (which are not classified as financial liabilities at fair value through profit or loss or through other comprehensive income) are initially recognized at fair value less any transaction costs. They are subsequently measured at amortized cost at each balance sheet date using the effective interest method. These instruments are recognized on the balance sheet under “Amounts due to banks”, “Amounts due to customers” or “Debt securities”. Temporary sales of securities are recorded on the settlement-delivery date. For repurchase transactions, a loan commitment received is recorded between the transaction date and the settlement-delivery date when such transactions are recorded as “Liabilities”.

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE