BPCE - 2019 Universal Registration Document

FINANCIAL REPORT

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

level, the criteria for deciding whether or not a credit risk has been incurred include the existence of past due payments; and these events are liable to lead to the recognition of • incurred losses. Impairment is determined as the difference between the amortized cost and the recoverable amount of the receivable, i.e. the present value of estimated recoverable future cash flows taking into account the impact of any collateral.

Impairment of loans and receivables IAS 39 defines the methods for calculating and recognizing the impairment of loans. A loan or receivable is deemed to be impaired if the following two conditions are met: there is objective evidence of impairment on an individual • or portfolio basis: there are “triggering events” or “loss events” identifying counterparty risk occurring after the initial recognition of the loans in question. On an individual

12/31/2019

12/31/2018

in millions of euros

Investment property

1,502

1,375

Financial assets at fair value through profit or loss Available-for-sale financial assets Loans and receivables due from banks Loans and receivables due from customers

23,267 53,740

22,014 49,479

747

383

13,312

12,759

Held-to-maturity financial assets

918

1,291

Share held by cedents and retrocessionaires in liabilities relating to insurance policies and financial contracts

15,254

13,050

Receivables arising from insurance and assumed reinsurance activities

2,232

2,130

Receivables arising from ceded reinsurance activities

86

91

Deferred acquisition costs

731

709

111,787

103,281

TOTAL INSURANCE BUSINESS INVESTMENTS

9.1.1.1

Investment property

12/31/2019

12/31/2018

5

Accumulated depreciation and impairment

Accumulated depreciation and impairment

Gross amount

Net amount

Gross amount

Net amount

in millions of euros

Investment property recognized at historic cost Investment property recognized at fair value (1) Investment property (unit-linked vehicles)

44

(14)

30

44

(14)

30

1,070

1,070

970 374

970 374

402

402

TOTAL INVESTMENT PROPERTY 1,375 Changes in fair value give rise to symmetrical recognition of a provision for deferred profit-sharing averaging, at December 31, 2019, 89% of the calculation base in question (1) versus 88% at December 31, 2018. 1,516 (14) 1,502 1,388 (14)

The fair value of investment property came to €1,530 million at December 31, 2019 versus €1,400 million at December 31, 2018. The fair value of investment property is classified in Level 3 of the fair value hierarchy in accordance with IFRS 13.

9.1.1.2

Financial assets at fair value through profit or loss

Accounting principles This asset category includes:

These assets are measured at fair value at the date of initial recognition and at each balance sheet date. Changes in fair value over the period, interest, dividends, gains or losses on disposals on these instruments are recognized in “Net income from insurance businesses”.

financial assets held for trading, i.e. securities acquired or • issued principally for the purpose of selling them in the near term; and financial assets that the Group has chosen to recognize at • fair value through profit or loss at inception using the fair value option available under IAS 39.

443

UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE