BPCE - 2020 Universal Registration Document

FINANCIAL REPORT

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

The designation at fair value through other comprehensive income not recyclable to profit or loss is an irrevocable option that is applied on an instrument-by-instrumentbasis only to equity instruments not held for trading purposes. Realized and unrealized losses continue to be recorded in other comprehensive income with no impact on income. These financial assets are not impaired. In the event of disposal, changes in fair value are not transferred to profit or loss but are taken directly to retained earnings. Only dividends affect income when they correspond to a return on investment. They are recorded in “Net gains or losses on financial instruments at fair value through other comprehensive income” (Note 4.4).

12/31/2020

12/31/2019

in millions of euros

Loans and receivables

19

45

Debt securities

46,231

41,497

Shares and other equity securities (1)

3,380

3,089

FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

49,630

44,630

O/w impairment for expected credit losses (2)

(86) 672 448 224

(81) 495 350

O/w gains and losses recognized directly in other comprehensive income (before tax) (3)

Debt instruments • Equity instruments •

145 Shares and other equity securities include strategic equity interests and certain long-term private equity securities. As these securities are not held for sale, their classification as (1) equity instruments designated at fair value through other comprehensive income is appropriate. Details are provided in Note 7.1.1. (2) Including the portion attributable to non-controlling interests (+€53 million at December 31, 2020, compared with +€6 million at December 31, 2019). (3)

EQUITY INSTRUMENTS DESIGNATED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Accounting principles Equity instruments designated at fair valuethrough other comprehensive income can include: investments in associates; • shares and other equity securities. • On initial recognition, equity instruments designated at fair value through other comprehensive income are carried at fair value plus any transaction costs. On following accounting dates, changes in the fair value of the instrument are recognized inother comprehensive income (OCI). These changes in fair value that accrue to other comprehensive income will not be reclassified to profit or loss in subsequent years (other comprehensive income not recyclable to profiotr loss). Dividends are only taken to income when they meet the required conditions.

5

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UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE