BPCE - 2019 Universal Registration Document

FINANCIAL REPORT

BPCE PARENT COMPANY ANNUAL FINANCIAL STATEMENTS

3.11.2

TAXABLE INCOME FOR FISCAL YEAR 2019 – RECONCILIATION FROM ACCOUNTING TO TAXABLE INCOME

Fiscal year 2019

Fiscal year 2018

in millions of euros

Net accounting income (A)

442

391

Corporate tax (B)

(162) 1,564

(261)

Add-backs (C)

508

Impairments and provisions

69

29

UCITS

6

0

Long-term capital losses under exemptions Share of profit from partnerships or joint ventures

1,062

416

15

14 49

Other items*

412

Deductions (D)

2,081

1,144

Long-term capital gains under exemptions

0

80

Reversals of impairment and provisions, including the fund for general banking risks

194

203 811

Dividends

1,906

Share of profit from partnerships or joint ventures

0 0

0

UCITS

16 34

Other items

(19)

Tax base at normal rate (A)+(B)+(C)-(D)

(237)

(506)

Add-backs mostly include losses on total transfer of assets and liabilities of 3F Holding, for €335 million. *

3.12

BREAKDOWN OF ACTIVITY

Holding company activities

Fiscal year 2019

Fiscal year 2018

in millions of euros

Net banking income Operating expenses Gross operating income

930

494

(356)

(200)

5

574

294

Cost of risk

(2)

(2)

Operating income

572

292

Gains or losses on long-term investments

(341)

(352)

Income before tax

231

(60)

Information on the balance sheet Note 4

Unless otherwise indicated, explanatory notes for balance sheet items are presented net of depreciation, amortization, impairment and provisions. Certain information relating to credit risk as required under ANC Regulation No. 2014-07 is provided in the risk management report. This information forms an integral part of the financial statements audited by the Statutory Auditors.

4.1

INTERBANK TRANSACTIONS

Accounting principles Loans and advances to banks cover all loans and advances made in connection with banking transactions with the exception of those represented by a security. They also include securities purchased under resale agreements, regardless of the type of underlying asset, and loans and advances relating to securities repurchase agreements. They are broken down between demand loans and advances and term loans and advances. Loans to banks are recorded in the balance sheet at their nominal value, with the exception of buybacks of customer loans which are recorded at acquisition cost, plus accrued interest and net of any impairment charges recognized for credit risk.

Amounts due to banks are recorded under demand deposits and current accounts or term deposits and borrowings. Amounts due to customers are classified into regulated savings accounts and other deposits for customers. Depending on the counterparty involved, these items include securities and other assets sold under repurchase agreements. Accrued interest is recorded under related payables. Guarantees received are recorded in the accounts as an off-balance sheet item. They are remeasured on a regular

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE