BPCE - 2020 Universal Registration Document

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FINANCIAL REPORT

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

Deferred tax assets and liabilities on temporary differences arise from the recognition of the items listed in the statement below (positive figures indicate deferred tax assets, while negative figures in brackets represent deferred tax liabilities):

12/31/2020

12/31/2019

in millions of euros

Unrealized capital gains on UCITS

23

23

Fiscal EIGs

(39)

(85)

Provisions for employee-related liabilities Provisions for regulated home savings products

21

40

1

1

Provisions on a portfolio basis Other non-deductible provisions

34

60 75

4

Changes in fair value of financial instruments recorded in equity

11

(12)

Other sources of temporary differences (1) Deferred tax related to timing differences

(295) (241) 1,954

(337) (235) 1,704 (837)

Deferred tax assets and liabilities arising on the capitalization of tax loss carryforwards

Unrecognized deferred tax assets and liabilities NET DEFERRED TAX ASSETS AND LIABILITIES

(1,126)

587

632

Recognized As assets in the balance sheet As liabilities in the balance sheet

1,775

1,971

(1,187) (1,339) A deferred tax liability of €316 million at December 31, 2020 (compared to €347 million at December 31, 2019) was recognized on certain goodwill items recorded in the United (1) States, giving rise to tax amortization over 15 years.

The 2019 Finance Act in France led BPCE SA group to revalue its net deferred tax position: Deferred tax assets and liabilities of French companies are calculatedby applying the tax rate that will be in force when the temporary difference is reversed. Tax rates will be gradually lowered through to 2022 (including the social security

contributionon profits), from 28.41% in 2021 to 25.83% in 2022 and thereafter for taxable profit taxed at the normal rate. At December 31, 2020, deductible temporary differences, tax losses and unused tax credits for which no deferred tax asset has been recorded in the balance sheet amounted to €1,126 million.

Note 12

Other information

SEGMENT REPORTING 12.1 BPCE SA group has three core businesses: Retail Banking and Insurance, which is central to the transformation, includes: Financial Solutions & Expertise, a sub-division encompassing • the specializedfinancingactivities: factoring, leasing, consumer finance, sureties & financial guarantees, and “retail securities services”, in addition to Socfim, BPCE Solutions Immobilières and Pramex; Insurance, a Natixis business line serving the Groupe BPCE • networks and their customers; Payments, which offers a full range of payment and prepaid • solutions to local businesses, online and via mobile devices. Other networks, which include Oney Bank and Banque • Palatine. Asset &Wealth Management, a Natixis business line consisting of: Asset Management, which operates on several international • markets, combining expertise in investment management and distribution;

Wealth Management, with Natixis Wealth Management, • which offers wealth management and financing solutions for large private-sector investors; employee savings, Natixis Interépargne is a top-tier player in • employee savings plan management in France; Corporate & Investment Banking, a division of Natixis: Corporate & Investment Banking advises and supports • corporates, institutional investors, insurance companies, banks, public sector entities and film and audiovisual financing. The Corporate center, which primarily includes: the Group’s central institution and holding companies; • run-off activities of Crédit Foncier and BPCE International; • cross-business activities; • items related to goodwill impairment and the amortization of • valuation differences, as these items form part of the Group’s acquisition and investment strategy; the contribution to the Single Resolution Fund. •

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UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE

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