BPCE - 2020 Universal Registration Document

5

FINANCIAL REPORT

IFRS CONSOLIDATED FINANCIAL STATEMENTS OF GROUPE BPCE AS AT DECEMBER 31, 2020

Fiscal year 2020

Fiscal year 2019

Interest income

Interest expenses

Interest income

Interest expenses

Net 693

Net 526

(in millions of euros)

Loans to/borrowings from banks (1) Loans to/borrowings from customers Bonds and other debt securities held/issued

1,510

(817)

1,123

(597)

14,557

(3,768) (3,309)

10,789 (2,529)

15,965

(4,738) (4,323)

11,227 (3,408)

780

915

Subordinated debt Lease liabilities

(624)

(624)

(664)

(664)

(17)

(17)

(25)

(25)

Financial assets and liabilities at amortized cost (excluding finance leases)

16,847

(8,535)

8,312

18,003

(10,347)

7,656

Finance leases Debt securities

462 462

///

462 462

467 587

///

467 587

Financial assets at fair value through other comprehensive income TOTAL FINANCIAL ASSETS AND LIABILITIES AT AMORTIZED COST AND AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (2)

462

462

587

587

17,771

(8,535)

9,236

19,057

(10,347)

8,710

Non-standard financial assets held for trading

119

119

114

114

4,135

(4,357)

(222)

4,306

(4,751)

(445)

Hedging derivatives

Economic hedging derivatives Other interest income and charges

270

(132) (101)

138

668

(386)

282

(101) 9,170

TOTAL INTEREST INCOME AND EXPENSES 8,661 Interest income from loans and receivables with banks consists of €613 million (€737 million in 2019) collected on the Livret A, LDD and LEP passbook savings accounts, which (1) are deposited with Caisse des Dépôts et Consignations. Interest income from financial assets with a known credit risk (S3) amounted to €430 million in 2020 (versus €493 million in 2019), of which €429 million in financial assets at (2) amortized cost (€490 million in 2019). 22,295 (13,125) 24,145 (15,484)

4.2

FEE AND COMMISSION INCOME AND EXPENSES

Accounting principles Under IFRS 15 “Revenue from contracts with customers”, recognition of revenue from ordinary activities reflects the transfer of control of goods and services promised to customers in an amount correspondingto the consideration that the entity expects to receive in exchange for these goods and services. Therecognition of this revenue calls for a five-step approach: identification of contracts with customers; • identification of specific performance obligations (or itemst)o be recognized separately from one another; • determination of the overall transaction price; • allocation of the transaction price to thevarious specific performance obligations; • recognition of revenue when performance obligations are met. • This approach applies to contracts entered into by an entity with its customers, with the exception of leases (covered by IFRS 16), insurance contracts (covered by IFRS 4) and financial instruments (covered by IFRS 9). If specific stipulations relating to revenue or contract costs aregiven under a different standard, these will first be applied. This method primarily applies to thefollowing Group activities: fee and commission income, notably that relating to banking services when this income is not included in the effective interest • rate, or that relating toasset management or financial engineering services; income from other activities (seeNote 4.6), in particular for services included in leases. • As a result, fees and commissions are recorded based on the type of service rendered and on the method of accounting for the financial instruments to which the service relates. This line includes mainly fees and commissions receivable or payable on recurring services (payment processing, custody fees, etc.) and occasional services (fund transfers, late payment penalties, etc.), fees and commissions receivable or payable on execution of significant transactions, and fees and commissions receivable or payable on trust assets held or managed on behalf of the Group’s customers. However, fees and commissions that form an integral part of the effective yield on a contract are recorded under “Net interest income”.

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UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE

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