BPCE - 2019 Universal Registration Document

5

FINANCIAL REPORT

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

3.4

GOODWILL

VALUE OF GOODWILL 3.4.1 Goodwill related to operations completed during the financial year is described in respect of Note 3.3 on “Changes in scope of consolidation”.

Fiscal year 2019

Fiscal year 2018

in millions of euros

Opening net value

3,906

3,728

Acquisitions (1)

233

190 (27) (16) (35)

Disposals Impairment

(2)

(82)

Other changes

Foreign exchange rate adjustments

33

66

CLOSING NET VALUE 3,906 The main acquisitions carried out over the period which led to the recognition of goodwill involved Oney Bank (€138 million recognized on the acquisition of Oney Bank by BPCE (1) and €32 million in goodwill recorded on the books of Oney Bank) and the following acquisitions: Titres Cadeaux (€10 million recorded by the Payments division), Massena Partners (+€42 million recorded by the Asset & Wealth Management division) and Azure Capital (+€11 million recorded by the Corporate & Investment Banking division). 4,088

At December 31, 2019, gross goodwill stood at €4,557 million and total impairment came to -€469 million. The valuation of FIDOR Bank in the BPCE SA group consolidated financial statements was revised in 2019 to reflect its potential disposal, which resulted in an impairment loss of -€82 million. In the absence of other signs of impairment, no additional test was carried out at December 31, 2019.

Certain goodwill items recognized in the United States give rise to tax amortization over 15 years leading to a difference between the carrying amount of the goodwill and its tax base. This difference in accounting treatment generated a deferred tax liability of €347 million at December 31, 2019, compared with €336 million at December 31, 2018 (see Note 11.2).

Breakdown of goodwill

Carrying amount

12/31/2019

12/31/2018

in millions of euros

Oney Bank (1) Fidor Bank AG

170

82 82

Other Networks

170

Financial Solutions and Expertise (2)

27 93

Insurance

93

Equity interests (Coface)

282

281 185

Specialized Financial Services (2)

137 709

Payments (2)(3)

Retail Banking and Insurance Asset & Wealth Management (2)(4) Corporate & Investment Banking (5)

641

3,235

3,136

144

129

TOTAL GOODWILL

4,088

3,906

o/w +€138 million recognized on the acquisition of Oney Bank by BPCE and +€32 million in goodwill recorded on the books of Oney Bank. (1) The sale of entities previously belonging to the SFS division changed the presentation of Natixis’ CGUs with the creation of the “SEF” CGU by BPCE. In the former SFS CGU, the (2) entities related to the Payments business lines now belong to a dedicated CGU to which goodwill of €127 million (predominantly comprising the goodwill recognized on recent fintech acquisitions by the aforementioned business lines) was reallocated. o/w +€10 million in goodwill recognized on the acquisition of Titres Cadeaux. (3) o/w +€40 million in goodwill recognized on the acquisition of Massena Partners. Furthermore, a goodwill adjustment of -€1 million was recorded on MV Crédit within the (4) one-year allocation period. o/w +€11 million in goodwill recognized on the acquisition of Azure Capital Holding Pty Ltd. (5)

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

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