BPCE - 2019 Universal Registration Document

FINANCIAL REPORT

BPCE PARENT COMPANY ANNUAL FINANCIAL STATEMENTS

4.6

DEBT SECURITIES

Accounting principles Debt securities are presented according to the type of underlying: retail certificates of deposit, interbank and negotiable debt securities, bonds and other debt securities, apart from subordinated debt, which is recorded separately under liabilities. Accrued interest on these instruments is disclosed separately as a related payable, as a balancing entry to the income statement entry. Issue premiums are recognized in full during the period or are recognized on a straight-line basis over the life of the debt. Issue and redemption premiums are spread over the life of the loan via a deferred expenses account. For structured debt, applying the principle of conservatism, only the certain portion of remuneration or principal is recognized. Unrealized gains are not recorded. Unrealized losses are subject to a provision.

12/31/2019

12/31/2018

in millions of euros

Certificates of deposit and savings bonds

0

0

Interbank market instruments and negotiable debt securities

32,525 31,315 18,066

30,230 33,728 12,487

Bonds

Other debt securities*

Accrued interest

659

933

TOTAL 77,378 Other debt securities are a new category of liabilities eligible for the numerator in the TLAC (Total Loss Absorbing Capacity) calculation, which has been introduced by French law * and is commonly referred to as “senior non-preferred debt”. These liabilities rank between own funds and other senior preferred debt. 82,565

The amount of bond issue and redemption premiums remaining to be amortized totaled €162 million.

The unamortized balance is the difference between the amount initially received and the redemption price for debt securities.

4.7

OTHER ASSETS, OTHER LIABILITIES

5

12/31/2019

12/31/2018

Assets

Liabilities

Assets

Liabilities

in millions of euros

Remaining payments due on investments in associates

0

34 63

0 0 2 0

38

Securities settlement accounts (3)

124

0

Premiums on options bought and sold (4)

1 0

0

367

67,197

71,039

Amounts payable on borrowed securities and other securities debt (1)

Tax and social security receivables and liabilities

383

371

518

654

Security deposits paid and received

91

0

35

5

Other accounts receivable, other accounts payable (2)

906

2,972

1,098 1,653

1,909

TOTAL 74,012 Amounts payable on borrowed securities and other securities debt are predominantly associated with the borrowing of FCT BPCE Master Home Loans securities (€34,370 million), (1) FCT BPCE Home Loans 2017_5 securities (€6,283 million), and FCT BPCE Consumer Loans 2016_5 securities (€3,337 million). These securities were received by the Banques Populaires and Caisses d’Epargne for the purposes of internal securitization transactions. Other accounts receivable include €443 million in security deposits paid, including €180 million paid to securitization funds for the Group’s securitization activities, and (2) €139 million in margin calls paid. Other accounts payable include €2,737 million in margin calls received, o/w €2,665 million from Natixis. This line concerns the securities custody activity. (3) The option premium recorded in the balance sheet in respect of the Natixis CIB exposures run-off activity (formerly GAPCE) was taken to income on completion when the activity (4) was wound up in 2019, generating income of €345 million (see Note 1.3). 1,505 70,637

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE