BPCE - 2020 Universal Registration Document

5

FINANCIAL REPORT

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

For the purposes of measuring expected credit losses, pledged assets and other credit enhancementsthat form an integral part of the contractual conditions of the instrument and that the entity does not recognize separately are taken into account in the estimate of expected cash flow shortfalls. Recognition of impairment of assets classified at amortized cost and at fair value through other comprehensive income, and of provisions for loan and guarantee commitments For debt instruments recognized on the balance sheet in the financial assets at amortized cost category, impairment is recorded against the line on which the asset was initially shown for its net amount (regardlessof whether the asset is S1, S2, S3 or POCI). Impairment charges and reversals are recognized in the income statement under “Cost of credit risk”.

For debt instruments recognized as financial assets at fair value through other comprehensive income on the balance sheet, impairment is carried on the liabilities side of the balance sheet at the level of other comprehensive income recyclable to profit or loss, with a correspondingentry on the income statement under “Cost of credit risk” (regardless of whether the asset is classified S1, S2, S3 or POCI). For loan and financial guarantee commitments given, provisions are recorded on the liabilities side of the balance sheet under “Provisions” (irrespective of whether the commitment given is classifiedS1, S2, S3 or POCI). Additions to/reversals from provisions are recognized in the income statement under “Cost of credit risk”.

CHANGE IN EXPECTED CREDIT LOSSES ON FINANCIAL ASSETS AND COMMITMENTS 7.1.3 As of December 31, 2020 the POCI are presented by segmentation S2 POCI and S3 POCI.

7.1.3.1

Change in impairment for credit losses on financial assets through other comprehensive income

Stage 1

Stage 2

TOTAL

Impairment for expected credit losses

Impairment for expected credit losses

Impairment for expected credit losses

Gross carrying amount

Gross carrying amount

Gross carrying amount

in millions of euros

BALANCE AT 12/31/2019 Origination and acquisitions Derecognition (redemptions, disposals and debt forgiveness) Transfers of financial assets

15,532

53

15,586

1,875

1,875

(1,724)

(1)

(1,725)

46 52 (6)

(46) (52)

Transfers to S1 Transfers to S2 Other changes (1)

6

389

(1) (1)

389

(1) (1)

BALANCE AT 12/31/2020

16,118

6

16,124

Including amortization of receivables, changes in credit risk parameters (including partial repayments), exchange rate fluctuations and IFRS 5 impacts. (1)

458

UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE

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