BPCE - 2020 Universal Registration Document

5

FINANCIAL REPORT

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

The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument to the net carrying amount of thefinancial asset or financial liability. The effective interest rate calculation takes account of all transaction fees paid or received as well as premiums and discounts. Transaction fees paid or received that are an integral part of the effective interest rate of the contract, such as loan set-up fees and commissions paid to financialpartners, are treated as additional interest. For 2020, negative interests are presented as follows: a negative interest on an asset is presented as an interesetxpense in NBI; • a negative interest on a liability is presented as interesitncome in NBI. • For the year 2019, negative interest was presented net of positive interest on financial assets and liabilities, respectively.

Fiscal year 2020

Fiscal year 2019

Interest income

Interest expenses

Interest income

Interest expenses

Net 328

Net 397

in millions of euros

Loans to/borrowings from banks Loans to/borrowings from customers Bonds and other debt securities held/issued

1,662 4,275

(1,334)

955

(558) (971)

(475)

3,800

5,292

4,321

623

(3,232)

(2,609)

617

(4,210)

(3,593)

Subordinated debt Lease liabilities

(624)

(624)

(663)

(663)

(15)

(15)

(24)

(24)

Financial assets and liabilities at amortized cost (excluding finance leases)

6,560

(5,680)

880 341

6,864

(6,426)

438 343 129

Finance leases Debt securities

341

343 129

///

88

88

Financial assets at fair value through other comprehensive income

88

88

129

129

TOTAL FINANCIAL ASSETS AND LIABILITIES AT AMORTIZED COST AND AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (1) Non-standard financial assets not held for trading

6,989

(5,680)

1,309

7,336

(6,426)

910

104

104 285 167 (94)

91

91

Hedging derivatives

3,585

(3,300)

3,736

(3,626)

110 306

Economic hedging derivatives Other interest income and expenses TOTAL INTEREST INCOME AND EXPENSES

234

(67) (94)

484

(178)

10,912 1,417 Interest income related to financial assets with a known credit risk (S3) amounted to €241 million (€255 million in 2019), of which €240 million on financial assets at amortized (1) cost (€255 million in 2019). (9,141) 1,771 11,647 (10,230)

FEE AND COMMISSION INCOME AND EXPENSES

4.2

Accounting principles Under IFRS 15 “Revenue from contracts with customers”, recognition of revenue from ordinary activities reflects the transfer of control of goods and services promised to customers in an amount correspondingto the consideration that the entity expects to receive in exchange for these goods and services. Therecognition of this revenue calls for a five-step approach: identification of contracts with customers; • identification of specific performance obligations (or itemst)o be recognized separately from one another; • determination of the overall transaction price; • allocation of the transaction price to thevarious specific performance obligations; • recognition of revenue when performance obligations are met. • This approach applies to contracts entered into by an entity with its customers, with the exception of leases (covered by IFRS 16), insurance contracts (covered by IFRS 4) and financial instruments (covered by IFRS 9). If specific stipulations relating to revenue or contract costs aregiven under a different standard, these will first be applied.

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UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE

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