BPCE - 2020 Universal Registration Document

FINANCIAL REPORT

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

12/31/2020

12/31/2019

in millions of euros

UCITS

5,669 5,669

2,285 2,285

Financial assets held for trading

Trading derivatives Hedging derivatives

17 29

19

Bonds

1,710 1,268 3,512

2,054 1,092

Equities

UCITS

277

Investments backed by unit-linked policies Financial assets designated at fair value

18,004 24,494 30,209

19,490 22,913 25,217

TOTAL FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

CONDITIONS FOR DESIGNATING INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

12/31/2020

12/31/2019

Financial assets

Financial assets

Fair value measur- ement

Fair value measur- ement

Accounting mismatches

Embedded derivatives

designated at fair value

Accounting mismatches

Embedded derivatives

designated at fair value

in millions of euros

Bonds

553 499

26

1,131

1,710 1,268 3,512

645 507

27

1,381

2,053 1,092

Equities

768

585

UCITS

3,512

277

277

Investments backed by unit-linked policies

15,922 20,486

1 510 2 304

573

18,005 24,494

17,762 18,915

1,338 1,950

390

19,490 22,913

TOTAL

1,704

2,048

9.1.1.3

Available-for-sale financial assets

5

Accounting principles Available-for-sale financial assets are allsecurities not classified in the previous three categories. Available-for-sale financial assetsare initially recognized at fair value, plus any transactioncosts.

On the balance sheet date, they are carried at their fair value and changes in fair value are recorded under “Gains and losses recognized directly in other comprehensive income” (except for foreign currency monetary assets, for which changes in the fair value of the foreign currency component affect income). If they are sold, these changes in fair value are taken to income. Interest income accrued or received on fixed income securities is recorded under “Net income from insurance businesses”. Income from variable-income securities is recorded under “Neint come from insurance businesses”.

12/31/2020

12/31/2019

in millions of euros

Bonds

48,636

47,735

Equities

4,379 7,007

4,588 6,480

UCITS

Available-for-sale financial assets, gross

60,023

58,803

Impairment of debt instruments Impairment of equity instruments (1)

(57)

(50)

(229)

(208)

TOTAL AVAILABLE-FOR-SALE FINANCIAL ASSETS (2) 58,546 In 2020, permanent impairment of variable-income securities came to €171 million (€63 million in 2019). This expense was 87% offset by the profit sharing mechanism (89% in (1) 2019). The 2020 expense can be broken down into an additional impairment loss on previously impaired securities for €144 million (€16 million in 2019) and an allowance for newly impaired securities for €27 million (€47 million in 2019). Coface contributed €2,911 million to Available-for-sale financial assets at December 31, 2019. (2) 59,737

323

UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE