BPCE - 2019 Universal Registration Document

5

FINANCIAL REPORT

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

5.13

PROVISIONS

Accounting principles Provisions other than those relating to employee benefit commitments and similar, regulated home savings products, off-balance sheet commitments, and insurance policies mainly consist of provisions for restructuring, claims and litigation, fines and penalties, and tax risks (excluding income tax). Provisions are liabilities for which the timing or amount is uncertain, but can be reliably estimated. They correspond to current obligations (legal or implicit), resulting from a past event, and for which an outflow of funds will probably be necessary to settle them. The amount recognized in provisions is the best estimate of the expense required to extinguish the present commitment at the balance sheet date. Provisions are discounted when the impact of discounting is material. Changes in provisions are recognized in the income statement on the lines corresponding to the nature of the future expenditure.

Reversals unused Other changes (1)

12/31/2018

Increase

Use

12/31/2019

in millions of euros

Provisions for employee benefit commitments (2)

822 360

122

(193) (199)

(68)

92

775 235 906 230

94 40

(9)

(11)

Provisions for restructuring costs (3)

Legal and tax risks (4)

1,211

(9)

(21)

(315)

183

354

(15)

(312)

20 (1)

Loan and guarantee commitments (5)

Provisions for regulated home savings products

3

2

Other operating provisions TOTAL PROVISIONS

469

128 738

53

(81)

(58)

511

3,048 2,659 Other changes include, in particular, the revaluation differences in respect of post-employment defined-benefit (+€90 million before tax) and the reclassification of provisions for (1) legal and tax risks to Tax Liabilities pursuant to the application at January 1, 2019 of IFRIC 23 (-€349 million) and foreign exchange rate adjustments (+€24 million). o/w €712 million for post-employment defined-benefit plans and other long-term employee benefits (see Note 8.2.1). (2) (363) (491) (273)

At December 31, 2019, provisions for restructuring costs notably included: (3) €191 million for the voluntary redundancy plan initiated at Crédit Foncier; • €20 million for the employment protection plan for BPCE International; • €11 million for the COFACE plan. •

Provisions for legal and tax risks included €551 million for the exposure on the Madoff fraud. (4) Provisions for credit losses on loan and guarantee commitments given are detailed in Note 7.1.3. (5)

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

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