BPCE - 2020 Universal Registration Document

Message from the Chairman of the Management Board3
Groupe BPCE at a glance4
A solid group generating robust performances6
Balanced governance8
A group more committed than ever10
1.1 Group history14
1.2 Understanding the Group’s organization16
1.3 Highlights18
1.4 TEC 2020: a strategic plan focused on digital transformation, commitment and growth20
1.5 The Group’s business lines24
1.6 Calendar43
1.7 Contacts43
2.1 Putting our cooperative identity to work for regional development48
2.1.1 Drawing on our business model to create sustainable, robust value48
2.1.2 Contributing to regional development52
2.2 Applying CSR in the entities, business lines and processes58
2.2.1 CSR and Cooperative Guidelines58
2.2.2 Our commitments60
2.2.3 Measuring our performance63
2.2.4 Identifying and managing risks to ensure our development65
2.3 Supporting the energy, ecological and social transition in local regions71
2.3.1 Integrating the fight against climate change and the preservation of biodiversity into our development strategy72
2.3.2 Supporting our customers in the energy, ecological and social transition84
2.3.3 Supporting local regions in the transition87
2.3.4 Groupe BPCE’s response to its investors90
2.3.5 Steering customers’ deposits and savings towards a more responsible economy91
2.4 Being a responsible group in its internal and external practices93
2.4.1 Implementing banking accessibility93
2.4.2 Respecting business ethics97
2.4.3 Reflecting pandemic and technology risks111
2.4.4 Reducing Groupe BPCE’s carbon footprint113
2.4.5 A socially-responsible company117
2.4.6 Looking after employees by developing their commitment117
2.5 CSR reporting methodology126
2.5.1 CSR reporting structure126
2.5.2 Reporting scope for 2020129
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 report130
2.7 Cross-reference table of the main social, environmental and societal information132
3.1 Introduction134
3.2 Corporate Governance Code134
3.3 Management and Supervisory Bodies136
3.3.1 Groupe BPCE’s governance organization chart136
3.3.2 Supervisory Board138
3.3.3 Management Board144
3.3.4 Executive Management Committee – BPCE governing body145
3.3.5 Directorships and offices held by corporate officers146
3.4 Role and operating rules of governing bodies176
3.4.1 Supervisory Board176
3.4.2 Specialized committees179
3.4.3 Attendance of Supervisory Board and Specialized Committee Meetings184
3.4.3 Management Board184
3.4.4 Annual General shareholders’ Meetings185
3.5 Rules and principles governing the determination of pay and benefits187
3.5.1 Pay policy, components of pay, benefits in kind, loans, guarantees and attendance fees received by members of the Supervisory Board of BPCE187
3.5.2 Corporate officer pay policy for fiscal year 2021191
3.5.3 Pay and benefits awarded to executive corporate officers for 2020198
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 Code207
3.6 Potential conflicts of interest208
3.6.1 Members of the Supervisory Board208
3.6.2 Members of the Management Board209
4.1 Foreword212
4.2 Significant events of 2020212
4.2.1 Economic and financial environment212
4.2.2 Significant events of the fiscal year213
4.3 Groupe BPCE financial data217
4.3.1 Groupe BPCE results217
4.3.2 The Group’s business lines218
4.3.3 Income statement by sector219
4.3.4 Retail banking & Insurance220
4.3.5 Asset & Wealth Management225
4.3.6 Corporate & Investment Banking (CIB)226
4.3.7 Corporate center227
4.3.8 Analysis of the Groupe BPCE consolidated balance sheet228
4.4 BPCE SA group financial data231
4.4.1 BPCE SA group results231
4.4.2 Analysis of BPCE SA group’s consolidated balance sheet232
4.5 Investments233
4.5.1 In 2020233
4.5.2 In 2019233
4.5.3 In 2018233
4.6 Post-balance sheet events233
4.7 Outlook for Groupe BPCE234
4.7.1 2021 Outlook: a still partial and uncertain mechanical rebound234
5.1 IFRS Consolidated Financial Statements of Groupe BPCE as at December 31, 2020239
5.1.1 Consolidated income statement239
5.1.2 Comprehensive income240
5.1.3 Consolidated balance sheet241
5.1.4 Statement of changes in equity242
5.1.5 Consolidated cash flow statement244
5.1.6 Notes to the financial statements of Groupe BPCE245
5.2 Statutory Auditors’ report on the consolidated financial statements381
5.3 IFRS Consolidated Financial Statements of BPCE SA group as at December 31, 2020389
5.3.1 Consolidated income statement389
5.3.2 Comprehensive income390
5.3.3 Consolidated balance sheet391
5.3.4 Statement of changes in equity392
5.3.5 Consolidated cash flow statement394
5.3.6 Notes to the financial statements of BPCE SA group395
5.4 Statutory Auditors’ report on the consolidated financial statements516
5.5 BPCE management report523
5.6 BPCE parent company annual financial statements530
5.6.1 Balance sheet and off-balance sheet items531
5.6.2 Notes to the parent company annual financial statements533
5.7 Statutory Auditors’ report on the annual financial statements574
5.8 Controls of accounting and financial reporting quality578
5.8.1 Roles and responsibilities in preparing and processing accounting and financial information578
5.8.2 Production processes for accounting and financial data579
5.8.3 Accounting and financial data control process581
5.9 Persons responsible for auditing the financial statements584
5.9.1 Statutory Audit system584
5.9.2 Statutory Auditors of BPCE585
6.1 Key figures589
6.1.1 Types of risk591
6.1.2 Regulatory changes592
6.2 Risk factors593
6.3 Risk management system605
6.3.1 Adequacy of risk management systems605
6.3.2 Risk appetite605
Summary of Groupe BPCE’s risk profile in 2020607
6.3.3 Risk management608
6.3.4 Internal control615
6.3.5 Recovery Plan619
6.4 Capital management and capital adequacy620
6.4.1 Regulatory framework620
6.4.2 Scope of application622
6.4.3 Composition of regulatory capital624
6.4.4 Regulatory capital requirements and risk-weighted assets626
6.4.5 Management of capital adequacy628
6.5 Credit risks632
6.5.1 Credit risk management633
6.5.2 Risk measurement and internal ratings640
6.5.3 Credit risk mitigation techniques646
6.5.4 Quantitative disclosures649
6.6 Counterparty risk660
6.6.1 Counterparty risk management660
6.6.2 Quantitative disclosures661
6.7 Securitization transactions663
6.7.1 Regulatory framework and accounting methods663
6.7.2 Securitization management at Groupe BPCE665
6.7.3 Quantitative disclosures665
6.8 Market risks668
6.8.1 Market risk policy668
6.8.2 Market risk management668
Risk monitoring669
6.8.3 Market risk measurement methods669
6.8.4 Quantitative disclosures671
6.9 Liquidity, interest rate and foreign exchange risks674
6.9.1 Governance and structure674
6.9.2 Liquidity risk management policy674
6.9.3 Quantitative disclosures677
6.9.4 Management of structural interest rate risk681
6.9.5 Management of structural foreign exchange risk683
6.10 Legal risks684
6.10.1 Legal and arbitration proceedings – BPCE684
6.10.2 Legal and arbitration proceedings – Natixis684
6.10.3 Dependency687
6.11 Non-compliance and security risks688
6.11.1 Compliance689
6.11.2 Financial security691
6.11.3 Business continuity691
6.11.4 Information System Security (ISS)692
6.12 Operational risks693
6.13 Insurance, asset management, financial conglomerate risks697
6.14 Climate risks704
6.14.1 Governance and structure704
6.14.2 Acceleration of the integration of a section dedicated to climate risks and Environmental, Social and Governance (ESG) criteria704
6.14.3 Awareness and training705
6.14.4 Regulatory environment707
6.15 Remuneration policy709
7.1 Charter of incorporation and articles of association712
7.1.1 General information712
7.1.2 Appropriation of earnings713
7.1.3 Company documents714
7.2 Share capital714
7.2.1 Share capital at December 31, 2020714
7.2.2 Category A and B shares714
7.3 Ownership structure and distribution of voting rights716
7.3.1 Ownership structure over the past three years716
7.3.2 Improper control717
7.3.3 Changes of control717
7.4 Material contracts717
7.5 Material changes717
7.6 Statutory Auditors’ special report on related-party agreements and commitments718
7.6.1 Agreements to be submitted for the approval of the Annual General Shareholders’ Meeting719
7.6.2 Agreements already approved by the Annual General Shareholders’ Meeting721
8.1 Statement by the person responsible for the universal registration document and for the annual financial report734
8.2 Documents on display735
8.3 Cross-reference table for the universal registration document736
8.4 Cross-reference table for the annual financial report and the management report739
8.5 Glossary742

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