BPCE - 2019 Universal Registration Document

5

FINANCIAL REPORT

BPCE PARENT COMPANY ANNUAL FINANCIAL STATEMENTS

EQUITIES AND OTHER VARIABLE-INCOME SECURITIES

12/31/2019

12/31/2018

Securities held for trading

Available- for-sale securities

Securities held for trading

Available -for-sale securities

Total

Total

in millions of euros

Listed securities Unlisted securities Accrued interest

1,224

1,224

1,224

1,224

109

109

51

51

0

0

TOTAL

0

1,333

1,333

0

1,275

1,275

At December 31, 2019, unrealized capital losses on available-for-sale securities subject to impairment amounted to €87 million versus €37 million at December 31, 2018. Unrealized capital gains on available-for-sale securities totaled €70 million at December 31, 2019 versus €63 million at December 31, 2018.

At December 31, 2019, equities and other variable-income securities included €1,263 million in UCITS, with accumulation funds accounting for €1,213 million of that total (compared with €1,265 million in UCITS at December 31, 2018, o/w €1,213 million in accumulation funds).

4.3.2

CHANGES IN HELD-TO-MATURITY SECURITIES

Disposals and redemptions

Transfers between categories Conversion

Discount/ premium

Other changes

12/31/2018

Purchases

12/31/2019

in millions of euros

Treasury bills

0

0

Bonds and other fixed-income securities

3,302 3,302

(185) (185)

23 23

20 20

(2) (2)

3,158 3,158

TOTAL

0

0

The changes mainly reflected the amortization of shares in a portfolio of mortgage loan and public asset securitizations for a nominal amount of €185 million.

4.3.3

RECLASSIFICATION OF ASSETS

Accounting principles In the interest of harmonizing accounting practices and ensuring consistency with IFRS, ANC Regulation No. 2014-07 reiterates the provisions of Opinion No. 2008-19 of December 8, 2008 ono the reclassification of securities out of the “trading securities” and “available-for-sale securities” categories. Reclassification from the “trading securities” category to the “available-for-sale” and “held- to-maturity” categories is now allowed in the following two cases: under exceptional market circumstances calling for a • change of strategy; where fixed-income securities are no longer, after their • acquisition, tradable on active markets, and provided that the company has the intention and ability to hold them in the foreseeable future or until they reach maturity. Reclassifications from the “available-for-sale” category to the “held-to-maturity” category are effective as from the reclassification date in either of the following conditions: under exceptional market circumstances calling for a • change of strategy; Reclassification due to a change of intention (provisions of CRBF Regulation No. 90-01 prior to CRC Regulation No. 2008-17, replaced by ANC Regulation No. 2014-07) BPCE has not reclassified any assets in the last two fiscal years.

where fixed-income securities are no longer tradable on an • active market. In its March 23, 2009 press release, the Conseil national de la comptabilité (CNC – French National Accounting Board) specified that “the possibility of portfolio transfers, in particular from available-for-sale securities portfolios to held-to-maturity securities portfolios as specified under Article 19 of CRBF Regulation No. 90-01 before it was updated by CRC Regulation No. 2008-17, remains in force and is not repealed by ANC Regulation No. 2014-07. As CRC Regulation No. 2008-17, replaced by ANC Regulation No. 2014-07, provided for additional possibilities of transfers between portfolios, these new transfer possibilities are added, as of the regulation’s effective date of July 1, 2008, to those previously defined”. Consequently, reclassification from the available-for-sale securities portfolio to the held-to-maturity portfolio remains possible through a simple change of intention if, at the transfer date, all the criteria for a held-to-maturity portfolio are met.

In fiscal year 2019, the amortization of held-to-maturity securities reclassified in 2015 as available-for-sale securities represented a nominal amount of €120 million.

522

UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

www.groupebpce.com