BPCE - 2020 Universal Registration Document

FINANCIAL REPORT

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

7.1.3.4

Change in credit losses on loans and receivables due from customers at amortized cost

improvement was neutralized in the impairment calculations described below. Furthermore, additional provisions amounting to €795 million were recorded in 2020 to cover the risks of significant deterioration in credit risk in the tourism, hotel, restaurant, specialized retailing and aeronautics sectors. In the absence of a proven downgrade in their rating at December 31, 2020, the outstandings covered by these provisions were partially maintained in S1. They will be closely monitored in 2021, as described in Note 1.5.2.1.

Financial instruments are divided into three categories (Stages) depending on the increase in credit risk observed since initial recognition. This increased risk is measured by ratings at the closing date, including if ratings have been automatically improved by government support measures (positive impact of the moratoria and SGLs described below and in Note 1.5.2). A total of €2.4 billion in outstandings have been affected by this automatic uplift and could be transferred to Stage 2. This transfer would have no impact on cost of risk as the

Purchased or originated credit impaired (S2 POCI) assets

Purchased or originated

credit-impaired (S3 POCI) assets

Stage 1

Stage 2

Stage 3

TOTAL

Impair- ment for expected

Impair- ment for expected

Impair- ment for expected

Impair- ment for expected

Impair- ment for expected

Impair- ment for expected

Gross carrying amount

Gross carrying amount

Gross carrying amount

Gross carrying amount

Gross carrying amount

Gross carrying amount

credit losses

credit losses

credit losses

credit losses

credit losses

credit losses

in millions of euros BALANCE AT 12/31/2019 Origination and acquisitions Derecognition (redemptions, disposals and debt forgiveness) Transfers of financial assets Transfers to S1 (1) Transfers to S3 Other changes (2) BALANCE AT 12/31/2020 Impairment (write off)

618,123 (1,058)

66,306 (1,913)

20,926 (9,482)

85

(1)

626

(356)

706,067 (12,810)

131,856

(480)

5,223

(83)

///

///

632

(78)

137,711

(641)

(71,859)

66 (6,668)

64 (3,041)

147

(2)

(430)

282 (81,999)

559

///

///

///

///

(1,789)

1,668

(33)

33 (1,822)

1,701

(7,078) 19,962

772

2,794

(791)

3,486 (538)

(615)

58

(1)

(58)

1

(798) (309) (309) (181)

(634)

5

(122)

(19,733)

238

20

136

Transfers to S2 (24,021)

635 25,116 (1,342)

(1,403)

160

58

(1)

(58)

1

(547) (222)

(3,018)

260 (2,589)

313 (14)

5,426 1,173

(795) (975)

4,148

(726)

(4,088)

(30)

(13)

2

1,189 (1,714)

675,190 (1,424) 760,347 (13,538) Including a reclassification of €3.7 billion in outstandings carried by Corporate & Investment Banking and certain Retail Banking and Insurance business lines from Stage 2 to (1) Stage 1 by the Natixis group, as a downgrade to a sector’s rating ceased to be a reason to move it to Stage 2, and a reclassification of €2.0 billion in outstandings carried by Retail Banking from Stage 2 to Stage 1, due to better quality segmentation criteria. Other changes include amortization of receivables, changes in credit risk parameters (including partial repayments), currency fluctuations and IFRS 5 impacts (particularly -€2 (2) billion related to Coface, now reported by the equity method). 63,566 (2,738) 20,755 (9,257) 112 (2) 724 (117)

The change in outstanding loans and receivables due from customers includes State-guaranteed loans (SGLs) granted in 2020 for €30.1 billion (see Note 1.5.1.1).

309

UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE