BPCE - 2020 Universal Registration Document

FINANCIAL REPORT

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

SUBORDINATED DEBT

5.14

Accounting principles Subordinated debt differs from other debt and bonds in that it will be repaid only after all the senior and unsecured creditors, but before the repayment of participating loans and securities and deeply subordinated notes. Subordinated debt which the issuer is obliged to repay is classified as debt and initially recognized at fair value less any transaction costs. It is subsequently measured at amortizedcost at each balance sheet date using the effectiveinterest method.

12/31/2020

12/31/2019

in millions of euros

Subordinated debt designated at fair value through profit or loss SUBORDINATED DEBT AT FAIR VALUE THROUGH PROFIT OR LOSS

100 100

100 100

Term subordinated debt Perpetual subordinated debt Mutual guarantee deposits Subordinated debt and similar

14,457

15,859

303 121

303 130

14,881

16,292

Accrued interest

409

396 799

Revaluation of the hedged component

1,085

SUBORDINATED DEBT AT AMORTIZED COST

16,375 16,475

17,487

TOTAL SUBORDINATED DEBT (1) 17,587 Including €251 million for the insurance entities at December 31, 2020, versus €672 million at December 31, 2019. Coface contributed-€389 million at December 31, 2019 (see (1) Note 1.3).

The fair value of subordinated debt is presented in Note 10.

CHANGES IN SUBORDINATED DEBT AND SIMILAR DURING THE YEAR

Change in consolidation scope (2)

Other changes (3)

5

12/31/2019

Issuance Redemption (1)

12/31/2020

in millions of euros

Subordinated debt designated at fair value through profit or loss

100

100

SUBORDINATED DEBT AT FAIR VALUE THROUGH PROFIT OR LOSS

100

100

Term subordinated debt Perpetual subordinated debt Mutual guarantee deposits

15,859

350

(449)

(392)

(911)

14,457

303 130

303 121

8

(15)

(2)

SUBORDINATED DEBT AT AMORTIZED COST (4)

16,292 16,392

358 358

(464) (464)

(392) (392)

(913) (913)

14,881 14,981

SUBORDINATED DEBT AND SIMILAR

Redemptions of subordinated loans and notes were due to the maturing of such borrowings. (1) Relates on the one hand to the Fidor group, reported under IFRS 5, and on the other to the Coface group, which is now accounted for by the equity method (see Note 5.7). (2) Other changes mainly included the revaluation of debts subject to hedging, foreign exchange fluctuations and variations in intra-group securities held by Natixis Funding for the (3)

purposes of market-making on Natixis’ debt on the secondary market. Excluding accrued interest and revaluation of the hedged component. (4)

Deeply subordinated notes qualifying as equity instruments are presented in Note 5.15.2.

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UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE