BPCE - 2020 Universal Registration Document

5

FINANCIAL REPORT

BPCE PARENT COMPANY ANNUAL FINANCIAL STATEMENTS

Fiscal year 2020

Fiscal year 2019

Income

Expense

Net 410

Income

Expense

Net 832

in millions of euros

Transactions with banks (1)(3) Customer transactions (1)

1,951

(1,541)

1,140

(308)

8

(2)

6

12

(1)

11

Bonds and other fixed-income securities

823

(1,467)

(644) (275)

895

(1,828)

(933) (511)

Subordinated debt

0

(275)

0

(511)

Macro-hedging transactions (2)

11

0

11

116

(83)

33

TOTAL

2,793

(3,285)

(492)

2,163

(2,731)

(568)

At December 31, 2020, negative interest income on transactions with banks and customers amounted to €940 million and expenses amounted to €916 million. (1) As of December 31, 2020, macro-hedging transactions are presented net. (2) Interest income and similar expenses on transactions with banks include interest on TLTRO3 funding mentioned in Note 4.1. and those of associated loans granted to Group (3) institutions.

INCOME FROM VARIABLE-INCOME SECURITIES

3.2

Accounting principles Income from variable-incomesecurities includes dividends and other income from equities and other variable-incomesecurities, equity interests, other long-term investments and investments in affiliates. Dividends are recognized when the right to receive payment has been decided by the competent body. They are recognized under “Income from variable-income securities”.

Fiscal year 2020

Fiscal year 2019

in millions of euros

Equities and other variable-income securities Equity interests and other long-term investments

0

0

163 557 720

211 907

Investments in affiliates*

TOTAL

1,118

As mentioned in Note 1.5.3. the amount of dividends fell sharply in 2020 following the recommendations of the ECB. *

3.3

COMMISSIONS

Accounting principles Fees and commissions that are similar in nature to interest are recognized under “Interest and similar income and expenses” (see Note 3.1). Other commission income is recognized according to the type of service provided as follows: • commissions received for an ad hoc service are recognized on completion of the service; • commissions received for an ongoing or discontinued service paid for in several installments are recognized over the period in • which the service is provided.

Fiscal year 2020

Fiscal year 2019

Income

Expense

Net

Income

Expense

Net

in millions of euros

Cash and interbank transactions

5 1 0 0 0 1

(2) (1) (2)

3 0

8 1 0

(2) (1) (1)

6 0

Customer transactions Securities transactions

(2)

(1) (9)

Payment services

(19)

(19)

150

(159)

Foreign exchange transactions Off-balance sheet commitments

0 0

0 1

0 1

0 0

0 1

Financial services* Consulting services

97

(8)

89

68

(7)

61

0 0

0 0

0 0

0 0

0 0

0 0

Other fee and commission income/(expense)

TOTAL

104

(32)

72

228

(170)

58

The increase is mainly due to the integration of four quarters of Eurotitres results in 2020, compared to three in 2019 (acquisition on March 31, 2019). *

538

UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE

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