BPCE - 2019 Universal Registration Document

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FINANCIAL REPORT

BPCE PARENT COMPANY ANNUAL FINANCIAL STATEMENTS

recognition of a provision reversal of €359 million for Crédit • Foncier shares, increasing the carrying amount to €1,354 million at December 31, 2019; recognition of impairment of €1,954 million on Natixis shares, • decreasing the carrying amount to €13,315 million at December 31, 2019; recognition of additional impairment of €231 million on Banque • Palatine shares, decreasing the carrying amount to €667 million at December 31, 2019. These impairments are recognized under net gains or losses on long-term investments.

No perpetual deeply subordinated notes were subscribed for or redeemed in 2019. The valuation of BPCE’s major subsidiaries is based on multi-year forecasts discounted for expected dividend flows (Dividend Discount Model). The expected dividend flow forecasts are based on business plans, taken from the strategic plans of relevant entities, and on reasonable technical inputs. The prudential constraints applicable to relevant activities are taken into account during valuation. Valuations carried out during the closing of accounts for 2019 included: recognition of a provision reversal of €659 million for BPCE • International shares, increasing the carrying amount to €826 million at December 31, 2019;

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

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