BPCE - 2019 Universal Registration Document

FINANCIAL REPORT

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

Fiscal year 2019

Fiscal year 2018

Interest income

Interest expenses

Interest income

Interest expenses

Net 397

Net 278

in millions of euros

Loans to/borrowings from banks Loans to/borrowings from customers Bonds and other debt securities held/issued

955

(558) (971)

1,008 4,930

(730) (787)

5,292

4,321

4,143

617

(4,210)

(3,593)

658

(3,971)

(3,313)

Subordinated debt Lease liabilities (1)

(663)

(663)

(672)

(672)

(24)

(24)

///

///

///

Total financial assets and liabilities at amortized cost (excluding finance leases)

6,864

(6,426)

438 343 129

6,596

(6,160)

436 360 148

Finance leases Debt securities

343 129

///

364 148

(4)

Financial assets at fair value through other comprehensive income TOTAL FINANCIAL ASSETS AND LIABILITIES AT AMORTIZED COST AND AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (2) Non-standard financial assets not held for trading

129

129

148

148

7,336

(6,426)

910

7,108

(6,164)

944 123 256 163

91

91

123

Hedging derivatives

3,736

(3,626)

110 306

3,584

(3,328)

Economic hedging derivatives

484

(178)

263

(100)

TOTAL INTEREST INCOME AND EXPENSES 1,486 Information in respect of fiscal year 2018 has not been restated to account for the impacts of the first-time application of IFRS 16 “Leases” in accordance with the option offered (1) 11,647 (10,230) 1,417 11,078 (9,592)

by this standard. The impacts of the first-time application of IFRS 16 on the balance sheet at January 1, 2019 are presented in Note 2.2. Interest income from financial assets with a known credit risk (S3) amounted to €255 million in 2019 in financial assets at amortized cost. (2)

4.2

FEE AND COMMISSION INCOME AND EXPENSES

5

Accounting principles Under IFRS 15 “Revenue from Contracts with Customers”, recognition of revenue from ordinary activities reflects the transfer of control of goods and services promised to customers in an amount corresponding to the consideration that the entity expects to receive in exchange for these goods and services. The recognition of this revenue calls for a five-step approach: identification of contracts with customers; • identification of specific performance obligations (or items) to be recognized separately from one another; • determination of the overall transaction price; • allocation of the transaction price to the various specific performance obligations; • recognition of revenue when performance obligations are met. • This approach applies to contracts entered into by an entity with its customers, with the exception of leases (covered by IFRS 16), insurance contracts (covered by IFRS 4) and financial instruments (covered by IFRS 9). If specific stipulations relating to revenue or contract costs are given under a different standard, these will first be applied. This method primarily applies to the following Group activities: fee and commission income, notably that relating to banking services when this income is not included in the effective interest • rate, or that relating to asset management or financial engineering services; income from other activities (see Note 4.6), in particular for services included in leases. • As a result, fees and commissions are recorded based on the type of service rendered and on the method of accounting for the financial instruments to which the service relates. This line includes mainly fees and commissions receivable or payable on recurring services (payment processing, custody fees, etc.) and occasional services (fund transfers, late payment penalties, etc.), fees and commissions receivable or payable on execution of significant transactions, and fees and commissions receivable or payable on trust assets held or managed on behalf of the Group’s customers. However, fees and commissions that form an integral part of the effective yield on a contract are recorded under “Net interest income”.

391

UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE