Message from the Chairman of the Management Board | 3 |
Groupe BPCE at a glance | 4 |
A solid group generating robust performances | 6 |
Balanced governance | 8 |
A group more committed than ever | 10 |
1. PRESENTATION OF GROUPE BPCE | 13 |
1.1 Group history | 14 |
1.2 Understanding the Group’s organization | 16 |
1.3 Highlights | 18 |
1.4 TEC 2020: a strategic plan focused on digital transformation, commitment and growth | 20 |
1.5 The Group’s business lines | 24 |
1.6 Calendar | 43 |
1.7 Contacts | 43 |
2. NON-FINANCIAL PERFORMANCE STATEMENT | 45 |
Introduction | 46 |
2.1 Putting our cooperative identity to work for regional development | 48 |
2.1.1 Drawing on our business model to create sustainable, robust value | 48 |
2.1.2 Contributing to regional development | 52 |
2.2 Applying CSR in the entities, business lines and processes | 58 |
2.2.1 CSR and Cooperative Guidelines | 58 |
2.2.2 Our commitments | 60 |
2.2.3 Measuring our performance | 63 |
2.2.4 Identifying and managing risks to ensure our development | 65 |
2.3 Supporting the energy, ecological and social transition in local regions | 71 |
2.3.1 Integrating the fight against climate change and the preservation of biodiversity into our development strategy | 72 |
2.3.2 Supporting our customers in the energy, ecological and social transition | 84 |
2.3.3 Supporting local regions in the transition | 87 |
2.3.4 Groupe BPCE’s response to its investors | 90 |
2.3.5 Steering customers’ deposits and savings towards a more responsible economy | 91 |
2.4 Being a responsible group in its internal and external practices | 93 |
2.4.1 Implementing banking accessibility | 93 |
2.4.2 Respecting business ethics | 97 |
2.4.3 Reflecting pandemic and technology risks | 111 |
2.4.4 Reducing Groupe BPCE’s carbon footprint | 113 |
2.4.5 A socially-responsible company | 117 |
2.4.6 Looking after employees by developing their commitment | 117 |
2.5 CSR reporting methodology | 126 |
2.5.1 CSR reporting structure | 126 |
2.5.2 Reporting scope for 2020 | 129 |
2.6 Report of one of the Statutory Auditors, appointed as an independent third party, on the consolidated statement of non-financial performance included in the Group management report | 130 |
2.7 Cross-reference table of the main social, environmental and societal information | 132 |
3. REPORT ON CORPORATE GOVERNANCE | 133 |
3.1 Introduction | 134 |
3.2 Corporate Governance Code | 134 |
3.3 Management and Supervisory Bodies | 136 |
3.3.1 Groupe BPCE’s governance organization chart | 136 |
3.3.2 Supervisory Board | 138 |
3.3.3 Management Board | 144 |
3.3.4 Executive Management Committee – BPCE governing body | 145 |
3.3.5 Directorships and offices held by corporate officers | 146 |
3.4 Role and operating rules of governing bodies | 176 |
3.4.1 Supervisory Board | 176 |
3.4.2 Specialized committees | 179 |
3.4.3 Attendance of Supervisory Board and Specialized Committee Meetings | 184 |
3.4.3 Management Board | 184 |
3.4.4 Annual General shareholders’ Meetings | 185 |
3.5 Rules and principles governing the determination of pay and benefits | 187 |
3.5.1 Pay policy, components of pay, benefits in kind, loans, guarantees and attendance fees received by members of the Supervisory Board of BPCE | 187 |
3.5.2 Corporate officer pay policy for fiscal year 2021 | 191 |
3.5.3 Pay and benefits awarded to executive corporate officers for 2020 | 198 |
3.5.4 Procedure for enforcing pay policies and practices covered by Articles L. 511-71 to L. 511-88 of the French Monetary and Financial Code | 207 |
3.6 Potential conflicts of interest | 208 |
3.6.1 Members of the Supervisory Board | 208 |
3.6.2 Members of the Management Board | 209 |
4. ACTIVITIES AND FINANCIAL INFORMATIONS 2020 | 211 |
4.1 Foreword | 212 |
4.2 Significant events of 2020 | 212 |
4.2.1 Economic and financial environment | 212 |
4.2.2 Significant events of the fiscal year | 213 |
4.3 Groupe BPCE financial data | 217 |
4.3.1 Groupe BPCE results | 217 |
4.3.2 The Group’s business lines | 218 |
4.3.3 Income statement by sector | 219 |
4.3.4 Retail banking & Insurance | 220 |
4.3.5 Asset & Wealth Management | 225 |
4.3.6 Corporate & Investment Banking (CIB) | 226 |
4.3.7 Corporate center | 227 |
4.3.8 Analysis of the Groupe BPCE consolidated balance sheet | 228 |
4.4 BPCE SA group financial data | 231 |
4.4.1 BPCE SA group results | 231 |
4.4.2 Analysis of BPCE SA group’s consolidated balance sheet | 232 |
4.5 Investments | 233 |
4.5.1 In 2020 | 233 |
4.5.2 In 2019 | 233 |
4.5.3 In 2018 | 233 |
4.6 Post-balance sheet events | 233 |
4.7 Outlook for Groupe BPCE | 234 |
4.7.1 2021 Outlook: a still partial and uncertain mechanical rebound | 234 |
5. FINANCIAL REPORT | 237 |
5.1 IFRS Consolidated Financial Statements of Groupe BPCE as at December 31, 2020 | 239 |
5.1.1 Consolidated income statement | 239 |
5.1.2 Comprehensive income | 240 |
5.1.3 Consolidated balance sheet | 241 |
5.1.4 Statement of changes in equity | 242 |
5.1.5 Consolidated cash flow statement | 244 |
5.1.6 Notes to the financial statements of Groupe BPCE | 245 |
5.2 Statutory Auditors’ report on the consolidated financial statements | 381 |
5.3 IFRS Consolidated Financial Statements of BPCE SA group as at December 31, 2020 | 389 |
5.3.1 Consolidated income statement | 389 |
5.3.2 Comprehensive income | 390 |
5.3.3 Consolidated balance sheet | 391 |
5.3.4 Statement of changes in equity | 392 |
5.3.5 Consolidated cash flow statement | 394 |
5.3.6 Notes to the financial statements of BPCE SA group | 395 |
5.4 Statutory Auditors’ report on the consolidated financial statements | 516 |
5.5 BPCE management report | 523 |
5.6 BPCE parent company annual financial statements | 530 |
5.6.1 Balance sheet and off-balance sheet items | 531 |
5.6.2 Notes to the parent company annual financial statements | 533 |
5.7 Statutory Auditors’ report on the annual financial statements | 574 |
5.8 Controls of accounting and financial reporting quality | 578 |
5.8.1 Roles and responsibilities in preparing and processing accounting and financial information | 578 |
5.8.2 Production processes for accounting and financial data | 579 |
5.8.3 Accounting and financial data control process | 581 |
5.9 Persons responsible for auditing the financial statements | 584 |
5.9.1 Statutory Audit system | 584 |
5.9.2 Statutory Auditors of BPCE | 585 |
6. RISK FACTORS & RISK MANAGEMENT | 587 |
6.1 Key figures | 589 |
6.1.1 Types of risk | 591 |
6.1.2 Regulatory changes | 592 |
6.2 Risk factors | 593 |
6.3 Risk management system | 605 |
6.3.1 Adequacy of risk management systems | 605 |
6.3.2 Risk appetite | 605 |
Summary of Groupe BPCE’s risk profile in 2020 | 607 |
6.3.3 Risk management | 608 |
6.3.4 Internal control | 615 |
6.3.5 Recovery Plan | 619 |
6.4 Capital management and capital adequacy | 620 |
6.4.1 Regulatory framework | 620 |
6.4.2 Scope of application | 622 |
6.4.3 Composition of regulatory capital | 624 |
6.4.4 Regulatory capital requirements and risk-weighted assets | 626 |
6.4.5 Management of capital adequacy | 628 |
6.5 Credit risks | 632 |
Foreword | 632 |
6.5.1 Credit risk management | 633 |
6.5.2 Risk measurement and internal ratings | 640 |
6.5.3 Credit risk mitigation techniques | 646 |
6.5.4 Quantitative disclosures | 649 |
6.6 Counterparty risk | 660 |
6.6.1 Counterparty risk management | 660 |
6.6.2 Quantitative disclosures | 661 |
6.7 Securitization transactions | 663 |
6.7.1 Regulatory framework and accounting methods | 663 |
6.7.2 Securitization management at Groupe BPCE | 665 |
6.7.3 Quantitative disclosures | 665 |
6.8 Market risks | 668 |
6.8.1 Market risk policy | 668 |
6.8.2 Market risk management | 668 |
Risk monitoring | 669 |
6.8.3 Market risk measurement methods | 669 |
6.8.4 Quantitative disclosures | 671 |
6.9 Liquidity, interest rate and foreign exchange risks | 674 |
6.9.1 Governance and structure | 674 |
6.9.2 Liquidity risk management policy | 674 |
6.9.3 Quantitative disclosures | 677 |
6.9.4 Management of structural interest rate risk | 681 |
6.9.5 Management of structural foreign exchange risk | 683 |
6.10 Legal risks | 684 |
6.10.1 Legal and arbitration proceedings – BPCE | 684 |
6.10.2 Legal and arbitration proceedings – Natixis | 684 |
6.10.3 Dependency | 687 |
6.11 Non-compliance and security risks | 688 |
6.11.1 Compliance | 689 |
6.11.2 Financial security | 691 |
6.11.3 Business continuity | 691 |
6.11.4 Information System Security (ISS) | 692 |
6.12 Operational risks | 693 |
6.13 Insurance, asset management, financial conglomerate risks | 697 |
6.14 Climate risks | 704 |
6.14.1 Governance and structure | 704 |
6.14.2 Acceleration of the integration of a section dedicated to climate risks and Environmental, Social and Governance (ESG) criteria | 704 |
6.14.3 Awareness and training | 705 |
6.14.4 Regulatory environment | 707 |
6.15 Remuneration policy | 709 |
7. LEGAL INFORMATION | 711 |
7.1 Charter of incorporation and articles of association | 712 |
7.1.1 General information | 712 |
7.1.2 Appropriation of earnings | 713 |
7.1.3 Company documents | 714 |
7.2 Share capital | 714 |
7.2.1 Share capital at December 31, 2020 | 714 |
7.2.2 Category A and B shares | 714 |
7.3 Ownership structure and distribution of voting rights | 716 |
7.3.1 Ownership structure over the past three years | 716 |
7.3.2 Improper control | 717 |
7.3.3 Changes of control | 717 |
7.4 Material contracts | 717 |
7.5 Material changes | 717 |
7.6 Statutory Auditors’ special report on related-party agreements and commitments | 718 |
7.6.1 Agreements to be submitted for the approval of the Annual General Shareholders’ Meeting | 719 |
7.6.2 Agreements already approved by the Annual General Shareholders’ Meeting | 721 |
8. ADDITIONAL INFORMATION | 733 |
8.1 Statement by the person responsible for the universal registration document and for the annual financial report | 734 |
8.2 Documents on display | 735 |
8.3 Cross-reference table for the universal registration document | 736 |
8.4 Cross-reference table for the annual financial report and the management report | 739 |
8.5 Glossary | 742 |