BPCE - 2019 Universal Registration Document

FINANCIAL REPORT

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

5.14

SUBORDINATED DEBT

Accounting principles Subordinated debt differs from other debt and bonds in that it will be repaid only after all the senior and unsecured creditors, but before the repayment of participating loans and securities and deeply subordinated notes. Subordinated debt which the issuer is obliged to repay is classified as debt and initially recognized at fair value less any transaction costs. It is subsequently measured at amortized cost at each balance sheet date using the effective interest method.

12/31/2019

12/31/2018

in millions of euros

Subordinated debt designated at fair value through profit or loss SUBORDINATED DEBT AT FAIR VALUE THROUGH PROFIT OR LOSS

100 100

100 100

Term subordinated debt Perpetual subordinated debt Subordinated debt and similar

15,864

16,214

287

317

16,151

16,531

Accrued interest

396 799

360 504

Revaluation of the hedged component

SUBORDINATED DEBT AT AMORTIZED COST

17,346 17,446

17,395 17,495

TOTAL SUBORDINATED DEBT (1)

Including €672 million for the insurance entities at December 31, 2019, versus €672 million at December 31, 2018. (1)

The fair value of subordinated debt is presented in Note 10.

CHANGES IN SUBORDINATED DEBT AND SIMILAR DURING THE YEAR

Other changes (3)

12/31/2018

Issuance (1)

Redemption (2)

12/31/2019

in millions of euros

5

Subordinated debt designated at fair value through profit or loss

100

100

SUBORDINATED DEBT AT FAIR VALUE THROUGH PROFIT OR LOSS

100

100

Term subordinated debt Perpetual subordinated debt

16,214

(546)

196

15,864

317

(30)

287

SUBORDINATED DEBT AT AMORTIZED COST (4)

16,531 16,631

(576) (576)

196 196

16,151 16,251

SUBORDINATED DEBT AND SIMILAR

No issues were carried out in fiscal year 2019. (1) Redemptions of subordinated loans and notes were due to the maturing of such borrowings. (2) Other changes mainly included the revaluation of debts subject to hedging, foreign exchange fluctuations and variations in intra-group securities held by Natixis Funding for the (3) purposes of debt market-making on the secondary market. Excluding accrued interest and revaluation of the hedged component. (4)

Deeply subordinated notes qualifying as equity instruments are presented in Note 5.15.

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE