BPCE - 2020 Universal Registration Document

5

FINANCIAL REPORT

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

12/31/2020

12/31/2019

in millions of euros

Loans and receivables due from banks (1) Loans and receivables due from customers (2) (3)

393

747

12,700 13,093

13,312 14,059

TOTAL LOANS AND RECEIVABLES

Coface contributed €17 million to Loans and receivables due from banks at December 31, 2019. (1) Including €11,089 million for guarantee deposits made for the acceptance of reinsurance treaties versus €11,602 million at December 31, 2019. (2) Coface contributed €59 million to Loans and receivables due from customers at December 31, 2019. (3)

9.1.1.5

Held-to-maturity financial assets

Accounting principles Held-to-maturity (HTM) financial assets are securities with fixed or determinablepayments and fixed maturity dates that the Group has the intention and ability to hold until maturity. IAS 39 does not permit the sale or transfer of these securities before maturity except in certain specific circumstances. In the event that the securities are sold before maturity, all held-to-maturity assets must be reclassified and the held-to-maturitycategory cannot be used during the current year or the followingtwo years. Exceptionsto the rule apply in the following cases: a material deterioration in the issuer’s credit quality; • a change in tax regulations canceling or significantly • reducing the tax exemption on interest earned on investments held-to-maturity; a major business combination or significant withdrawal of • activity (sale of a sector, for example) requiring the sale or transfer of held-to-maturity investments in order to maintain the entity’s existing situation in terms of interest rate risk or its credit risk policy; a change in legal or regulatory provisions significantly • modifying either the definition of an eligible investment or

the maximum amount of certain types of investment, requiring that the entity dispose of a held-to-maturity asset; a significant increase in capital requirements forcing the • entity to restructure by selling held-to-maturity assets; and a significant increase in the risk weighting of • held-to-maturity assets in terms of prudential capital regulations. In the exceptional cases described above, the income from the disposal is recorded under “Net income from insurance businesses”. The hedgingof these securitiesagainst interest rate risk is not permitted. However,hedges against exchangerate risk or the inflation componentof certain held-to-maturityfinancial assets are allowed. Held-to-maturityfinancial assets are recognizedat fair value at inception, plus any transaction costs directly attributable to their acquisition. They are subsequently measured at amortized cost using the effective interest method, including any premiums, discounts and acquisition fees, where material.

12/31/2020

12/31/2019

in millions of euros

Treasury bills and equivalent

507 258 765

636 283 919

Bonds and other fixed-income securities

Gross amount of held-to-maturity investments

Impairment

(1)

(1)

TOTAL HELD-TO-MATURITY FINANCIAL ASSETS

764

918

474

UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE

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