BPCE - 2020 Universal Registration Document

5

FINANCIAL REPORT

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

and its replacement with a new debt. The amendment to IFRS 9 of October 12, 2017 clarified the treatment under potential costs and fees: when the difference is IFRS 9 of modifications of liabilities recognized at amortized greater than or equal to 10%, all of the costs or fees incurred cost if the modification does not result in derecognition: the are recognized as profit or loss on debt extinguishment. includes a thresholdof 10% based on discountedcash flows, integrating

profit or loss resulting from the difference between the original cash flows and the modifiedcash flows discountedat the original effective interest rate must be recognizedin profit or loss. To assess the substantialnatureof the change, IFRS 9

The Groupmay considerother changesto be substantial,such as a change of issuer (even within the same group) or a change in currency.

5.19.1

TRANSFERRED FINANCIAL ASSETS NOT FULLY DERECOGNIZED AND OTHER FINANCIAL ASSETS

PLEDGED AS COLLATERAL

Carrying amount

Assets transferred or pledged as collateral

Outright securities lending

Repurchase agreements

Securitizations

12/31/2020

in millions of euros

Financial assets at fair value through profit or loss – Held for trading Financial assets at fair value through profit or loss – Non-SPPI Financial assets at fair value through other comprehensive income

3,852

9,038

441

373

13,704

9

9

6,581 1,132

575

1,857

9,013

Financial assets at amortized cost

1,208

127,151 129,457 121,654

38,167 38,541 38,541

167,658 190,383 182,580

TOTAL FINANCIAL ASSETS PLEDGED AS COLLATERAL o/w transferred financial assets not fully derecognized

11,566 11,566

10,820 10,820

The amount of liabilities associatedwith financial assets pledged as collateral for repurchase agreements came to €10,161 million at December 31, 2020 (€9,555 million at December 31, 2019).

The fair value of assets pledged as collateral for non-deconso- lidating securitization transactions was €38,580 million at December 31, 2020 (€40,678 million at December 31, 2019) and the amount of related liabilities came to €22,851 million at December 31, 2020 (€12,470 million at December 31, 2019).

Transferred financial assets not fully derecognized and other financial assets pledged as collateral at December 31, 2019

Carrying amount

Assets transferred or pledged as collateral

Outright securities lending

Repurchase agreements

Securitizations

12/31/2019

in millions of euros

Financial assets at fair value through profit or loss – Held for trading Financial assets at fair value through profit or loss – Non-SPPI Financial assets at fair value through other comprehensive income

4,537

9,238

3,893

448

18,117

105 265 238

10

115

6,077

1,607

7,949

Financial assets at amortized cost

947

94,925 100,435 88,099

40,125 40,573 40,573

136,235 162,416 150,080

TOTAL FINANCIAL ASSETS PLEDGED AS COLLATERAL o/w transferred financial assets not fully derecognized

11,562 11,562

9,846 9,846

5.19.1.1 SECURITIES REPURCHASING AND LENDING Groupe BPCE repurchases and loans securities.

Comments on transferred financial assets

SALES OF RECEIVABLES Groupe BPCE sells receivables as security (Articles L. 211-38or L. 313-23 et seq . of the French Monetary and Financial Code) under guaranteed refinancing operations, notably with the central bank. This type of disposal for security involves the legal transfer of the associated contractual rights, and therefore a “transfer of assets” as per the amendment to IFRS 7. The Group nevertheless remains exposed to virtually all the risks and benefits, and as such the receivables are maintained on the balance sheet.

Under the terms of the agreements, the securities may be sold on by the purchaser throughout the duration of the repurchase or lending agreement. The purchaser must nevertheless return them to the vendor at the end of the agreement. Cash flows generated by the securities are also transferred to the vendor. The Group believes that it retains almost all of the risks and benefitsof securitiesunder repurchaseor loan agreements.They are therefore not derecognized.Financing has been recorded in liabilities for the repurchasing or lending of financed securities.

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UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE

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