BPCE - 2019 Universal Registration Document

5

FINANCIAL REPORT

BPCE PARENT COMPANY ANNUAL FINANCIAL STATEMENTS

4.10

SUBORDINATED DEBT

Accounting principles Subordinated debt comprises proceeds from issues of both term and perpetual subordinated debt securities, and mutual guarantee deposits. In the event of the obligor’s liquidation, the repayment of subordinated debt is only possible after all other creditors have been satisfied. Accrued interest payable on subordinated debt is disclosed separately as a related payable, as a balancing entry to the income statement entry.

12/31/2019

12/31/2018

in millions of euros

Term subordinated debt Perpetual subordinated debt

14,924

15,270

0

31

Perpetual deeply subordinated debt*

700 384

1,462

Accrued interest

372

TOTAL 17,135 On September 30, 2019, BPCE exercised its early redemption option at par on issues of two perpetual deeply subordinated notes eligible as additional Tier 1 Basel III regulatory * capital, for €374 million and $444 million. 16,008

Bond issue and redemption premiums remaining to be amortized at December 31, 2019 totaled €83 million. Perpetual deeply subordinated debt has the following characteristics:

Outstanding at 12/31/2019 (in millions of euros)

Interest rate after initial redemption option date 3M Euribor + 5.04%

Interest rate after step-up date 3M Euribor +

Next redemption option date

Date of interest step-up

Amount (in original currency)

Currency

Issue date

Rate

EUR

11/30/2018

700 700

700

5.35%

5.04% 11/30/2023

11/30/2023

TOTAL

4.11

FUND FOR GENERAL BANKING RISKS

Accounting principles This fund is intended to cover risks inherent in the company’s banking activities, in accordance with the provisions of Article 3 of CRBF Regulation No. 90-02. It also includes the amounts allocated to the funds set up as part of the guarantee mechanism (see Note 1.2).

12/31/2018

Increase

Decrease

12/31/2019

in millions of euros

Fund for general banking risks

130 130

-

(65) (65)

65 65

TOTAL

-

536

UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

www.groupebpce.com