BPCE - 2019 Universal Registration Document

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BPCE MANAGEMENT REPORT FINANCIAL REPORT

NET GAINS OR LOSSES ON LONG-TERM INVESTMENTS Net gains or losses on long-term investments amounted to -€341 million in 2019. They consisted of changes in the value of investments in associates, in particular Natixis (-€885 million), BPCE International (+€659 million), Crédit Foncier (+€359 million), Banque Palatine (-€231 million), and 3F Holding (-€207 million). INCOME TAX In 2019, as a result of tax consolidation income, the gain in income taxes after taking into account changes in provisions and other adjustments was €146 million, down €305 million relative to 2018. The change was primarily due to the increase in the tax base in 2019. The fiscal year recorded income of €345 million on the winding-up of the Natixis CIB exposures run-off activity. Changes in assumptions in 2018 impacted the calculation of provisions for corporate tax refunds for subsidiaries in the tax consolidation scope, in the amount of €165 million.

non-deductible expenses pursuant to Article 39.4 of said Code. The resulting additional tax was €128,669. No other non-tax deductible expenses were incurred during the fiscal year. FUND FOR GENERAL BANKING RISKS AND NET INCOME A provision reversal of €65 million was performed in 2019, 50% of which was for the fund for general banking risks set up in 2009. Net income came to €442 million. PROPOSED ALLOCATION OF NET INCOME A proposal will be made to the General Shareholders’ Meeting to allocate the net profit for the period of €441,581,094.18 as follows, as proposed by the Management Board: dividend payment of €536,166,353.68 to the shareholders, • equal to €15.734 per share. As an interim dividend of €201,530,940.36 was paid on December 20, 2019, as decided by the Management Board at its meeting of December 19, 2019, a residual dividend of €334,635,413.32 remains to be paid to the shareholders, equal to €9.82 per share. In accordance with the provisions of Article L. 243 bis of the French General Tax Code, the table below shows the dividends paid out in respect of the three previous fiscal years: In July, BPCE fully acquired Turbo for €12 million. In August, following the total transfer of assets and liabilities of 3F Holding, 100% of the shares in Fidor were recognized in BPCE’s balance sheet. The net asset value of these shares amounted to €60 million at December 31, 2019. In September, BPCE subscribed for the Banque Palatine capital increase in the amount of €150 million. In October, it acquired a 50.1% stake in Oney Bank. In December, SPORTS IMAGINE carried out a €55 million capital increase. SOCFIM was acquired for €135 million. Also during fiscal year 2019, BPCE increased its asset financing capital by €11 million. Branches BPCE owns no branches. EMPLOYEE SHARE OWNERSHIP Information concerning employee share ownership is provided in Chapter 7. Fraction of the dividend eligible for the 40% tax deduction Fraction of the dividend ineligible for the 40% tax deduction €12.3120 €12.938 €12.3715 €383,499,888.77 €403,005,056.92 €403,040,426.36 / / /

NON-TAX DEDUCTIBLE EXPENSES Disclosure of luxury expenditures

In accordance with the provisions of Article 223 quater and quinquies of the French General Tax Code, the financial statements for the past fiscal year include €373,711 in

Balance sheet date

Dividend per share

12/31/2016 12/31/2017 12/31/2018

Category “A” and “B” shares Category “A” and “B” shares Category “A” and “B” shares

INFORMATION ON SUBSIDIARIES, EQUITY INVESTMENTS AND BRANCHES Activity and results of the main subsidiaries The activity and results of the main subsidiaries are described in Chapter 1 of this document. A list of subsidiaries and equity investments is available in Chapter 5 “BPCE parent company financial statements”. Investments and controlling interests In March, with the creation of the Financial Solutions and Expertise business line, BPCE acquired 100% of Natixis’ holdings in the following entities (amounts including acquisition costs): CEGC, for €1,093 million; • Natixis Factor, for €178 million, renamed BPCE Factor on • April 1, 2019; Natixis Financement, for €370 million, renamed BPCE • Financement on April 1, 2019; Natixis Lease, for €991 million, renamed BPCE Lease on • April 1, 2019. In May, BPCE purchased Natixis’ shares in We.Trade for €682,000, representing an interest of 8.65%.

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

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