BPCE - 2019 Universal Registration Document

5

FINANCIAL REPORT

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

12/31/2019

12/31/2018

in millions of euros

UCITS

2,285 2,285

4,810 4,810

Financial assets held for trading

Trading derivatives

19

18

Bonds

2,054 1,092

1,528

Equities

602 171

UCITS

277

Investments backed by unit-linked policies Financial assets designated at fair value

19,490 22,913 25,217

16,469 18,770 23,598

TOTAL FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

CONDITIONS FOR DESIGNATING INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

12/31/2019

12/31/2018

Financial assets designated at fair value

Financial assets designated at fair value

Fair value measur- ement

Fair value measur- ement

Accounting mismatches

Embedded derivatives

Accounting mismatches

Embedded derivatives

in millions of euros

Bonds

645 507

27

1,381

2,053 1,092

762 195

27

739

1,528

Equities

585

408

602 171

UCITS

277 390

277

171 600

Investments backed by unit-linked policies

17,762 18,915

1,338 1,950

19,490 22,913

14,720 15,677

1,149 1,584

16,469 18,770

TOTAL

2,048

1,510

9.1.1.3

Available-for-sale financial assets

Accounting principles Available-for-sale financial assets are all securities not classified in the previous three categories. Available-for-sale financial assets are initially recognized at fair value, plus any transaction costs.

On the balance sheet date, they are carried at their fair value and changes in fair value are recorded under “Gains and losses recognized directly in other comprehensive income” (except for foreign currency monetary assets, for which changes in the fair value of the foreign currency component affect income). If they are sold, these changes in fair value are taken to income. Interest income accrued or received on fixed income securities is recorded under “Net income from insurance businesses”. Income from variable-income securities is recorded under “Net income from insurance businesses”.

12/31/2019

12/31/2018

in millions of euros

Bonds

47,735

45,112

Equities

4,588 6,480

3,882 5,426

UCITS

Available-for-sale financial assets, gross

58,803

54,420

Impairment of debt instruments Impairment of equity instruments (1)

(50)

(38)

(208)

(256)

TOTAL AVAILABLE-FOR-SALE FINANCIAL ASSETS 54,126 In 2019, permanent impairment of variable-income securities came to €63 million. This expense was 89% offset by the profit sharing mechanism. The 2019 expense can be (1) broken down into an additional impairment loss on previously impaired securities for €16 million and an allowance for newly impaired securities for €47 million. 58,546

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

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