BPCE - 2020 Universal Registration Document

FINANCIAL REPORT

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

has been incurred include the existence of past due payments; and these events are likely to lead to the recognitionof incurred • losses. Impairment is determined as the difference between the amortizedcost and the recoverableamount of the receivable, i.e. the present value of estimated recoverable future cash flows taking into account the impact of any collateral.

Impairment of loans and receivables IAS 39 defines the methods for calculating and recognizing the impairment of loans. A loan or receivableis deemed to be impaired if the following two conditions are met: there is objective evidence of impairment on an individual • or portfolio basis: there are “triggering events” or “loss events” identifying counterparty risk occurring after the initial recognition of the loans in question. On an individual level, the criteria for deciding whether or not a credit risk

12/31/2020

12/31/2019

in millions of euros

Investment property

1,441

1,502

Financial assets at fair value through profit or loss Available-for-sale financial assets Loans and receivables due from banks Loans and receivables due from customers

27,905 54,858

23,267 53,740

393

747

12,700

13,312

Held-to-maturity financial assets

764

918

Share held by cedents and retrocessionaires in liabilities relating to insurance policies and financial contracts

16,538

15,254

Receivables arising from insurance and assumed reinsurance activities

1,751

2,232

Receivables arising from ceded reinsurance activities

26

86

Deferred acquisition costs

728

731

TOTAL INSURANCE BUSINESS INVESTMENTS (1)

117,104

111,787

At December 31, 2019, Coface contributed €3,987 million to Insurance business investments. (1)

9.1.1.1

Investment property

5

12/31/2020

12/31/2019

Accumulated depreciation and impairment

Accumulated depreciation and impairment

Gross amount

Gross amount

Net amount

Net amount

in millions of euros

Investment property recognized at historic cost Investment property recognized at fair value (1) Investment property (unit-linked vehicles)

44

(15)

29

44

(14)

30

1,018

1,018

1,070

1,070

394

394

402

402

TOTAL INVESTMENT PROPERTY 1,502 Changes in fair value give rise to symmetrical recognition of a provision for deferred profit-sharing averaging, at December 31, 2020, 87% of the calculation base in question (1) versus 89% at December 31, 2019. 1,456 (15) 1,441 1,516 (14)

The fair value of investment property came to €1,472 million at December 31, 2020 versus €1,530 million at December 31, 2019. The fair value of investment property is classified in Level 3 of the fair value hierarchy in accordance with IFRS 13.

471

UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE