BPCE - 2019 Universal Registration Document

FINANCIAL REPORT

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

Summarized financial data for non-material joint ventures and companies under significant influence at December 31, 2019 is as follows:

Fiscal year 2019

Fiscal year 2018

in millions of euros

Value of investments in associates

784

813

Total amount of share in: Net income

37 (9) 28

37 (1) 36

Gains and losses recognized directly in other comprehensive income

COMPREHENSIVE INCOME

Nature and scope of major restrictions 12.4.1.2 Groupe BPCE has not been faced with any major restrictions relating to interests held in associates and joint ventures.

12.4.2

SHARE IN NET INCOME OF ASSOCIATES

Fiscal year 2019

Fiscal year 2018

in millions of euros

CNP Assurances (group) EDF Investment Group (EIG)

227

220

10

12

Socram Banque

(25)

2

Banque Calédonienne d’Investissement

15 33

13 33

Other

Financial sector companies

260

280

Other

5 5

4 4

Non-financial companies

TOTAL INVESTMENTS IN OF ASSOCIATES

265

284

12.5

INTERESTS IN NON-CONSOLIDATED STRUCTURED ENTITIES NATURE OF INTERESTS IN NON-CONSOLIDATED

As a result, the following are not included in the scope of this note: structured entities which are associated with Groupe BPCE • through a current transaction alone. This corresponds to an unstructured financial instrument which generally does not have a material impact on the variability of the structured entity’s returns and which could be concluded by Groupe BPCE with structured entities or classically governed entities alike. The main kinds of current transactions are: plain vanilla fixed income, foreign exchange and other – underlying derivatives, as well as securities lending/borrowing and repurchase transactions, plain vanilla guarantees and financing granted to family – non-trading real estate companies (SCI) or to certain holdings; external structured entities in which Groupe BPCE simply acts • as an investor. These notably include: investments in external UCITS that the Group does not • manage, except for those in which the Group owns almost all the shares; a limited scope of interests held in securitization vehicles • (exposures on these funds are included in the information published in Chapter 6 “Risk Management – Securitizations”); interests held in external real estate funds or private equity • funds in which Groupe BPCE acts as a simple minority investor. The structured entities with which the Group has a relationship can be divided into four categories: entities involved in asset management, securitization vehicles, entities created for structured financing purposes, and entities created for other types of transactions.

5

12.5.1

STRUCTURED ENTITIES A non-consolidated structured entity is a structured entity that is not controlled and is therefore not accounted for using the full consolidation method. As a result, the interests held in a joint venture or associate which is classed as a structured entity falls within the scope of this note. The same is true of controlled structured entities that are not consolidated due to holding threshold reasons. This includes all structured entities in which Groupe BPCE holds an interest and intervenes in one or more of the following capacities: originator/structurer/arranger; • placement agent; • manager; • in any other capacity that has a major impact on the • structuring or management of the transaction ( e.g. provision of financing, guarantees or structuring derivatives, tax investor, major investor, etc.). An interest in an entity corresponds to all types of relationships, contractual or not, that expose Groupe BPCE to a risk of fluctuations in returns relating to the entity’s performance. Interests in another entity may be evidenced by, among others, the holding of equity instruments or debt securities, as well as, by other types of relationships, such as financing, short-term credit facilities, credit enhancement, the provision of guarantees or structured derivatives.

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE