BPCE - 2020 Universal Registration Document

FINANCIAL REPORT

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

Cash flow hedges – Details of other items recognized in other comprehensive income

Reclassification of the effective portion in income

Hedged item partially or fully extinguished

Change in the effective portion

01/01/2020

12/31/2020

in millions of euros

(352) (352)

(42) (42)

4 4

7 7

(383) (383)

Amount of equity for cash flow hedging

TOTAL

Reclassification of the effective portion in income

Hedged item partially or fully extinguished

Change in the effective portion

01/01/2019

12/31/2019

in millions of euros

Amount of equity for cash flow hedging

(414) (414)

38 38

18 18

6 6

(352) (352)

TOTAL

5.4

FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Accounting principles Financial assets at fair value through other comprehensiveincome are initially recognized at fair value, plus any transaction costs. Debt instruments measured at fair value through othecromprehensive income recyclable to profit or loss For each reporting period, these instruments are carried at their fair value and changes in fair value (excluding accrued interest) are recorded under ”Gains and losses recognized directly in other comprehensive income recyclable to profit or loss” (as the foreign currency assets are monetary assets, changes in the fair value of the foreign currency component affect income). The principles used to determine fair value are described in Note 10. These instruments are subject to IFRS 9 impairment requirements. Information about credit risk is provided in Note 7.1. If they are sold, these changes in fair value are taken to income. Interest income accrued or received on debt instruments is recorded under “Interest and similar income” based on the effective interest method. Thismethod is described in Note 5.3 – Assets at amortized cost. Equity instruments measured at fair value through othecromprehensive income not recyclable to profit or loss For each reporting period, these instruments are carried at their fair value and changes in fair value are recorded under “Gains and losses recognizeddirectly in other comprehensiveincome not recyclable to profit or loss” (as the foreign currency assets are not monetary assets, changes in the fair value of the foreign currency component do not affect income). The principles used to determine fair value are described in Note 10. The designation at fair value through other comprehensive income not recyclable to profit or loss is an irrevocable option that is applied on an instrument-by-instrumentbasis only to equity instruments not held for trading purposes. Realized and unrealized losses continue to be recorded in other comprehensive income with no impact on income. These financial assets are not impaired. In the event of disposal, changes in fair value are not transferred to profit or loss buat re taken directly to retained earnings. Only dividends affect income when they correspond to a return on investment. They are recorded in “Net gains or losses on financial instruments at fair value through other comprehensive income” (Note 4.4).

5

12/31/2020

12/31/2019

in millions of euros

Loans and receivables

19

41

Debt securities

16,104

15,545

Shares and other equity securities (1)

1,674

1,530

FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

17,797

17,116

O/w impairment for expected credit losses (2)

(1)

O/w gains and losses recognized directly in other comprehensive income (before tax) (3)

130

(33)

Debt instruments • Equity instruments •

56 74

29

(62) Shares and other equity securities include strategic equity interests and certain long-term private equity securities. As these securities are not held for sale, their classification as (1) equity instruments designated at fair value through other comprehensive income is appropriate. Details are provided in Note 7.1.1. (2) Including the portion attributable to non-controlling interests (+€55 million at December 31, 2020, compared with +€7 million at December 31, 2019). (3)

431

UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE