BPCE - 2020 Universal Registration Document

5

FINANCIAL REPORT

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

EXPENSE FOR THE YEAR REPRESENTED BY LOYALTY AND PERFORMANCE PLANS

Fiscal year 2020

Plans settled in cash indexed to Natixis shares

Plans settled in shares

Total

Fiscal year 2019

in millions of euros

Previous loyalty plans

(7)

1

(6) (5)

(24)

Loyalty plans from the fiscal year

(5) (4)

(3)

TOTAL

(7)

(11)

(27)

VALUATION PARAMETERS USED FOR THE COST ESTIMATE FOR THESE PLANS

12/31/2020

12/31/2019

Share price

2.79

3.96

Risk-free interest rates Dividend payout ratio

(0.56%) 7.17% 4.55%

(0.66%) 12.83% 4.72%

Loss of rights rate

LOYALTY AND PERFORMANCE PLANS SETTLED IN CASH Some employees are awarded deferred cash-settled loyalty and employee benefits”. The estimated expense takes into account performance bonus benefits. These bonuses are subject to an actuarial estimate of these conditions being met. It is spread presence and performance conditions. In terms of accounting over the rights vesting period. The amount recognized in respect treatment, they are accounted for under “Other long-term of fiscal year 2020 was:

Fiscal year 2020 (in millions of euros)

Fiscal year 2019 (in millions of euros)

Year of plan

Grant date

Vesting date March 2018 March 2019 March 2019 March 2020 March 2020 March 2021 March 2021 March 2022 March 2022 March 2023

2016 plan

04/10/2017

(1)

2017 plan

02/23/2018

(1)

(9)

2018 plan

02/26/2019

(5)

1

2019 plan

01/22/2020

(3)

(12)

2020 plan

01/20/2021

(8)

TOTAL

(17)

(21)

Note 9

Insurance businesses

Key points Insurance businesses cover life insurance and non-life insurance activities. In Groupe BPCE these activities are performed by dedicated subsidiaries subject to the specific regulations applicable to the insurance sector. On November 3, 2017, the European Commission adopted the amendment to IFRS 4 applying IFRS 9 “Financial instruments”with IFRS 4 “Insurancecontracts”with specific provisions for financial conglomerates, applicable as of January 1, 2018. European regulations therefore allow European financial conglomeratesto opt to defer application of IFRS 9 for their insuranceactivitiesuntil January 1,2021 (effectivedate of the new IFRS 17, Insurance contracts). At its meeting on March 17, 2020, the IASB decided to defer its application by two years, as clarificationsstill need to be given regardingkey

aspects of the standard. It also decided to defer the expiry of insurance companies’ temporary exemption from IFRS 9 to January 1, 2023, to align it with the applicationof IFRS 17. An amendment was published on June 25, 2020. This amendment improves the application of IFRS 17. As Groupe BPCE is a financial conglomerate, it elected to apply this provision to its insurance businesses, which continue to be covered by IAS 39. The entities concernedare listed in Note 14.4 on the scope of consolidation. Financial assets and liabilities of insurance businesses are therefore recognized in accordance with the provisions of IAS 39. They are classified into categories defined by this standard,which calls for specific approachesto measurement and accounting treatment.

468

UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE

www.groupebpce.com