BPCE - 2019 Universal Registration Document

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FINANCIAL REPORT

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

EXPENSE FOR THE PERIOD FOR LOYALTY AND PERFORMANCE PLANS

Fiscal year 2019

Plans settled in cash indexed to Natixis shares

Plans settled in shares

Total

Fiscal year 2018

in millions of euros

Previous loyalty plans

(8)

(17)

(24)

(14)

Loyalty plans from the fiscal year

(3)

(3)

(2)

TOTAL

(8)

(20)

(27)

(16)

VALUATION INPUTS USED TO ASSESS THE EXPENSE RELATIVE TO THESE PLANS

12/31/2019

12/31/2018

Share price

3.96

4.12

Risk-free interest rate Dividend payout ratio

(0.66%) 12.83% 4.72%

(0.64%) 11.35% 4.61%

Loss of rights rate

LOYALTY AND PERFORMANCE PLANS SETTLED IN CASH Some employees are awarded loyalty and performance bonuses

benefits”. The estimated expense accounts for an actuarial with deferred payment in cash. These bonuses are subject to estimate of these conditions being met. It is spread over the attendance and performance conditions. In terms of accounting vesting period for the benefits. The amount recognized in treatment, they are recorded under “Other long-term employee respect of fiscal year 2019 was:

Fiscal year 2018 (in millions of euros)

Fiscal year 2019 (in millions of euros)

Year of plan

Grant date

Vesting date March 2017 March 2018 March 2018 March 2019 March 2019 March 2020 March 2020 March 2021 March 2021 March 2022

2015 plan

02/10/2016

(1)

2016 plan

04/10/2017

(1)

(7)

2017 plan

02/23/2018

(9)

(19)

2018 plan

02/26/2019

1

(29)

2019 plan

01/22/2020

(12) (21)

TOTAL

(56)

Insurance businesses Note 9

Key points Insurance businesses cover life insurance and non-life insurance activities. In Groupe BPCE these activities are performed by dedicated subsidiaries subject to the specific regulations applicable to the insurance sector. On November 3, 2017, the European Commission adopted the amendment to IFRS 4 applying IFRS 9 “Financial Instruments” with IFRS 4 “Insurance Contracts” with specific provisions for financial conglomerates, applicable as of January 1, 2018. On November 14, 2018, the IASB decided to delay the implementation of IFRS 17 “Insurance Contracts” by one year to January 1, 2022. It also decided to defer the expiry of insurance companies’ temporary exemption from IFRS 9 to

January 1, 2022, to align it with the application of IFRS 17. A draft amendment, “Exposure Draft ED/2019/4 Amendments to IFRS 17”, was published on June 26, 2019. As Groupe BPCE is a financial conglomerate, it elected to apply this provision to its insurance businesses, which continue to be covered by IAS 39. The entities concerned are listed in Note 13.4 on the scope of consolidation. Financial assets and liabilities of insurance businesses are therefore recognized in accordance with the provisions of IAS 39. They are classified into categories defined by this standard, which calls for specific approaches to measurement and accounting treatment.

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

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