BPCE - 2019 Universal Registration Document

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BPCE MANAGEMENT REPORT FINANCIAL REPORT

Company situation and activity in 2019

CHANGES IN THE BPCE BALANCE SHEET

Change 2019/2018

12/31/2019

12/31/2018

(in billions of euros)

(in %)

in billions of euros

Amounts due from banks Amounts due from customers

219.1

213.2

+5.9 +3.0 (4.2) +1.8 +0.1 (0.2) +5.0 +4.1 (3.8) +1.5 +6.6

+3%

3.4

0.4

684%

Securities transactions

75.1 25.4

79.3 23.6

(5%) +8% +2% +2% (0)%

Associates, equity interests and long-term investments

Other assets

3.9

3.8

TOTAL ASSETS

326.9 131.3

320.3 131.5

+6.6%

Amounts due to banks Customer deposits

7.1

2.1

+247%

Debt securities and subordinated debt

98.6 72.0 17.9

94.5 75.8 16.4

+4%

Other liabilities

(5)

Shareholders’ equity and fund for general banking risks

+9% +2%

TOTAL LIABILITIES

326.9

320.3

Total assets under French GAAP amounted to €326.9 billion at December 31, 2019, an increase of €6.6 billion compared with December 31, 2018. Under assets, the €5.9 billion increase in “Amounts due from banks” was mainly due to an increase in the central bank account balance. “Amounts due from customers” increased by €3 billion, primarily due to the reclassification of repurchase agreements with insurance companies. “Securities transactions” declined by €4.2 billion, mostly relating to French government securities. “Associates, equity interests and long-term investments” recorded the following major changes: the acquisition from Natixis of its subsidiaries CEGC, BPCE • Factor, BPCE Lease, and BPCE Financement, which joined the Financial Solutions and Expertise division, representing a total of €2,631 million; the acquisition of 100% of the shares in SOCFIM from Crédit • Foncier and of 50.1% of Oney Bank shares, for a total of €505 million; capital increases totaling €205 million, including for Banque • Palatine and SPORTS IMAGINE; the deconsolidation of 3F Holding following a total transfer of • assets and liabilities, for -€339 million and a provision reversal of €128 million;

additional allocations to provisions of €2,185 million (on Natixis • and Banque Palatine) and provision reversals of €1,018 million (on BPCE International and Crédit Foncier); the prepayment of two Casen subordinated loans totaling • -€200 million; the arrival at term of a BPCE International subordinated loan • for -€70 million; the arrangement of subordinated loans totaling €283 million • (for Compagnie Européenne de Garanties et de Cautions and Oney Bank). “Other assets” included €77 million for the acquisition of the EuroTitres business. Under liabilities, the €5 billion increase in “Customer deposits” is mostly attributable to the reclassification of repurchase agreements with insurance companies. This reclassification is offset under “Amounts due to banks” by the rise in borrowings from related parties. “Debt securities and subordinated debt” was up €4.1 billion, notably following the issuance of senior non-preferred debt. “Other liabilities” declined by €3.8 billion, mainly from amounts payable on borrowed securities. The increase in shareholders’ equity followed the €1,200 million capital increase, subscribed for by the Banques Populaires and Caisses d’Epargne, to finance the acquisition of the Financial Solutions and Expertise subsidiaries. It can also be attributed to 2019 income of €442 million, less an interim dividend of €202 million paid in December 2019.

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

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