BPCE - 2020 Universal Registration Document

FINANCIAL REPORT

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

This method primarily applies to thefollowing Group activities: fee and commission income, notably that relating to banking services when this income is not included in the effective interest • rate, or that relating to asset managementor financial engineering services; income from other activities (see Note 4.6), in particular fosrervices included in leases. • As a result, fees and commissions are recorded based on the type of service rendered and on the method of accounting for the financial instruments to which the service relates. This line includes mainly fees and commissions receivable or payable on recurring services (payment processing, custody fees, etc.) and occasional services (fund transfers, late payment penalties, etc.), fees and commissions receivable or payable on execution of significant transactions, and fees and commissions receivable or payable on trust assets held or managed on behalf of the Group’s customers. However, fees and commissions that form an integral part of the effective yield on a contract are recorded under “Net interest income”. Commissions on services Commissions on services are analyzed to separately identify their different items (or performance obligations) and to assign the appropriateshare of revenues to each item. Each item is then recorded in the income statement by type of service provided, and according to the method used to recognize the associatedfinancial instrument: commissionspayable or receivableon recurring services are deferred over the period in which the service is provided (payment • processing, custody fees, etc.); commissions payable or receivable on occasional services are recognized in full in income when the service is provided (fund • transfers, payment penalties, etc.); commissions payable or receivable on execution of a significant transaction are recognized in full in income on completion of • the transaction. When there is some uncertainty about the amount of a commission (incentive fees in asset management, variable financial engineering commissions, etc.),only the amount that the Group is already certain to receive, given the information available at the closing date, is recognized. Fees and commissions that form an integral part of the effective yield on an instrument, such as fees on loan commitments given or loan set-up fees, are recognizedand amortized as an adjustment to the effective interest rate over the estimated term of the applicable loan. These fees and commissions are recognized as “Interest income” rather than “Fee and commission income”. Fiduciary and similar fees and commissions are those that result in assets being held or invested on behalf of individual customers, pension schemes or other institutions. Trust-management services mainly cover asset management business and custody services on behalf of third parties.

5

Fiscal year 2020

Fiscal year 2019

Income

Expense

Net (25) 852 101 155 437

Income

Expense

Net (52) 879

in millions of euros

Cash and interbank transactions

46

(71) (13)

11

(63) (23)

Customer transactions

865 233 155 512 181

902 320 149 485 158

Financial services

(132)

(619)

(299)

Sales of life insurance products

///

///

149 406

Payment services

(75)

(79)

Securities transactions

(180)

1

(133)

25

Trust management services (1)

3,444

3,444 (311) (962) 3,692

4,038

4,038

Financial instruments and off-balance sheet transactions

203 119

(514)

148 131

(119)

29

Other fee and commission income/(expense)

(1,081) (2,066)

(1,270) (2,305)

(1,139)

TOTAL FEE AND COMMISSION INCOME AND EXPENSES (2)

5,758

6,342

4,036

Of which performance fees in the amount of €314 million (€286 million for Europe) in 2020, compared wit€h627 million (€537 million for Europe) in 2019. (1) At December 31, 2019, Coface contributed net fees and commissions of -€127 million (+€59 million in income and -€186 million in expenses, primarily recorded under Other). (2)

415

UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE