BPCE - 2019 Universal Registration Document

FINANCIAL REPORT

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

9.1.1.3

Available-for-sale financial assets

Accounting principles Available-for-sale financial assets are all securities not classified in the previous three categories. Available-for-sale financial assets are initially recognized at fair value, plus any transaction costs.

On the balance sheet date, they are carried at their fair value and changes in fair value are recorded under “Gains and losses recognized directly in other comprehensive income” (except for foreign currency monetary assets, for which changes in the fair value of the foreign currency component affect income). If they are sold, these changes in fair value are taken to income. Interest income accrued or received on fixed income securities is recorded under “Net income from insurance businesses”. Income from variable-income securities is recorded under “Net income from insurance businesses”.

12/31/2019

12/31/2018

in millions of euros

Bonds

44,592

41,976

Equities

2,889 6,476

2,332 5,422

UCITS

Available-for-sale financial assets, gross

53,957

49,730

Impairment of debt instruments Impairment of equity instruments (1)

(49)

(38)

(168)

(213)

TOTAL AVAILABLE-FOR-SALE FINANCIAL ASSETS 49,479 In 2019, permanent impairment of variable-income securities came to €63 million. This expense was 89% offset by the profit sharing mechanism. The 2019 expense can be (1) broken down into an additional impairment loss on previously impaired securities for €16 million and an allowance for newly impaired securities for €47 million. 53,740

9.1.1.4

Loans and receivables

5

Accounting principles The portfolio of loans and receivables included in “Insurance business investments” comprises non-derivative financial assets with fixed or determinable payments and which are not quoted in an active market. In addition, these assets must not be exposed to a risk of material losses unrelated to a deterioration in their credit quality. Some securities not quoted in an active market may be classified in this portfolio. These are initially recognized at fair value, plus any transaction costs and less any transaction income. Securities classified in this category comply with the rules for recognition, measurement and impairment applicable to loans and receivables. When a financial asset recorded under loans and receivables is sold before its maturity, the income from the disposal is recorded under “Net income from insurance businesses”.

12/31/2019

12/31/2018

in millions of euros

Loans and receivables due from banks Loans and receivables due from customers (1) TOTAL LOANS AND RECEIVABLES

747

383

13,312 14,059

12,759 13,142

Including €11,602 million for guarantee deposits made for the acceptance of reinsurance treaties versus €11,598 million at December 31, 2018. (1)

445

UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE