BPCE - 2019 Universal Registration Document

5

FINANCIAL REPORT

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

In the event of disposal, changes in fair value are not transferred to profit or loss but are taken directly to retained earnings. Only dividends affect income when they correspond to a return on investment. They are recorded in “Net gains or losses on financial instruments at fair value through other comprehensive income” (Note 4.4).

12/31/2019

12/31/2018

in millions of euros

Loans and receivables

41

24

Debt securities

15,545

14,638

Shares and other equity securities (1)(2)

1,530

1,071

FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

17,116

15,733

o/w impairment for expected credit losses (3)

(1)

o/w gains and losses recognized directly in other comprehensive income (before tax) (4)

(33)

(167)

29

(8)

Debt instruments • Equity instruments •

(62) (159) Equities and other equity securities include strategic equity interests and certain long-term private equity securities. As these securities are not held for sale, their classification (1) as equity instruments designated at fair value through other comprehensive income is appropriate. In fiscal year 2019, Natixis Investment Managers acquired stakes in asset management company Fiera Capital for €85 million and in US asset management company WCM (2) Investment Management for €253 million. Details are provided in Note 7.1.1. (3) Including the portion attributable to non-controlling interests (+€7 million at December 31, 2019, compared with -€10 million at December 31, 2018). (4)

EQUITY INSTRUMENTS DESIGNATED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Accounting principles Equity instruments designated at fair value through other comprehensive income can include: investments in associates; • shares and other equity securities. • On initial recognition, equity instruments designated at fair value through other comprehensive income are carried at fair value plus any transaction costs. On following accounting dates, changes in the fair value of the instrument are recognized in other comprehensive income (OCI). These changes in fair value that accrue to other comprehensive income will not be reclassified to profit or loss in

subsequent years (other comprehensive income not recyclable to profit or loss). Dividends are only taken to income when they meet the required conditions.

12/31/2019

12/31/2018

Dividends recognized over the period Equity instruments held at the end of the period

Dividends recognized over the period Equity instruments held at the end of the period

Derecognition over the period

Derecognition over the period

Total profit or loss at the disposal date

Total profit or loss at the disposal date

Fair value at the disposal date

Fair value at the disposal date

Fair value

Fair value

in millions of euros

Investments in associates

1,495

94

14

2

1,035

68

18

(4) (1) (5)

Shares and other equity securities

35

(9) (7)

36

4

TOTAL

1,529

94

14

1,071

68

22

408

UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

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