BPCE - 2020 Universal Registration Document

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FINANCIAL REPORT

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

Deferred tax assets and liabilities on temporary differences arise from the recognition of the items listed in the statement below (positive figures indicate deferred tax assets, while negative figures in brackets represent deferred tax liabilities):

12/31/2020

12/31/2019

in millions of euros

Unrealized capital gains on UCITS

31

34

Fiscal EIGs

(29) 210 161 556 317 (32) 382

(75) 232 159 395 381 (98) 294

Provisions for employee-related liabilities Provisions for regulated home savings products

Provisions on a portfolio basis Other non-deductible provisions

Changes in fair value of financial instruments recorded in equity

Other sources of temporary differences (1) Deferred tax related to timing differences

1,596 1,962

1,322 1,719 (844) 2,196

Deferred tax assets and liabilities arising on the capitalization of tax loss carryforwards

Unrecognized deferred tax assets and liabilities NET DEFERRED TAX ASSETS AND LIABILITIES

(1,131)

2,428

Recognized As assets in the balance sheet As liabilities in the balance sheet

3,667

3,597

(1,239) (1,400) A deferred tax liability of €316 million was recognized at December 31, 2020 (€347 million at December 31, 2019) on certain goodwill items recorded in the United States giving (1) rise to tax amortization over 15 years.

The 2019 Finance Act in France led Groupe BPCE to revalue its net deferred tax position: Deferred tax assets and liabilities of French companies are calculated by applying the tax rate that will be in force when the temporary difference is reversed. Tax rates will be gradually lowered through to 2022 (including the social security

contribution on profits), 28.41% in 2021 to 25.83% in 2022 and thereafter for taxable profit taxed at the normal rate. At December 31, 2020, deductible temporary differences, tax losses and unused tax credits for which no deferred tax asset has been recorded in the balance sheet amounted to €1,131 million.

Note 12

Other information

SEGMENT REPORTING 12.1 The Group has three core businesses: Retail Banking and Insurance, which is central to the transformation, includes: the Banque Populaire network, comprising the fourteen • Banques Populaires and their subsidiaries, Crédit Maritime Mutuel, and the Mutual Guarantee Companies; the Caisse d’Epargne network, consisting of the fifteen • Caisses d’Epargne; Financial Solutions and Expertise, a sub-divisionencompassing • the specialized financing activities: Factoring, Leasing, Consumer Finance, Sureties & Financial Guarantees, and Retail Securities Services, in addition to Socfim, BPCE Solutions Immobilières and Pramex; Insurance, a Natixis business line serving the Groupe BPCE • networks and their customers; Payments, which offer a full range of payment and prepaid • solutions to local businesses, online and via mobile devices;

Other networks, which include Oney Bank and Banque • Palatine. Asset & Wealth Management, a Natixis business line consisting of: Asset Management, which operates on several international • markets, combining expertise in investment management and distribution; Wealth Management, with Natixis Wealth Management, • which offers wealth management and financing solutions for large private-sector investors; employee savings, Natixis Interépargne is a top-tier player in • employee savings plan management in France. Corporate & Investment Banking, a division of Natixis: Corporate & Investment Banking advises and supports • corporates, institutional investors, insurance companies, banks, public sector entities and Film and Audiovisual Financing.

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UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE

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