BPCE - 2020 Universal Registration Document

5

FINANCIAL REPORT

BPCE PARENT COMPANY ANNUAL FINANCIAL STATEMENTS

An impairment loss may be recognized if there is a strong probability that the institution will not hold the securities to maturity due to new circumstances or if there is a risk of default by the issuer. Unrealized capital gains are not recognized. Debt securitiesheld to maturity cannot be sold or transferred to another category of securities, with certain exceptions.

However, pursuant to the provisions of ANC Regulation No. 2014-07, fixed-income trading or available-for-sale securities reclassified to the category of debt securities held to maturity as a result of market illiquiditymay be sold when the market on which they are traded becomes active again.

4.3.1

SECURITIES PORTFOLIO

12/31/2020

12/31/2019

Securities held for trading (2)

Available- for-sale securities

Securities held for trading (2)

Available- for-sale securities

Securities held to maturity

Securities held to maturity

Total

Total

in millions of euros

Gross amount (2) Accrued interest

0

733

0 0

733

0

964

964

23

23

22

22

Impairment (1)

0

0

0

0

Treasury bills and equivalent

0 0

756

0

756

0 0

986

0

986

Gross amount (2) Accrued interest

2,318

2,728

5,046

2,467

3,138

5,605

7

16 (1)

23

8

20

28

Impairment (1)

(51)

(52)

(24)

0

(24)

Bonds and other fixed-income securities

0

2,274 3,372

2,743

5,017 3,372

0

2,451 1,414

3,158

5,609 1,414

Gross amount Accrued interest

0

0

Impairment (1)

(214)

(214)

(81)

(81)

Equities and other variable-income securities

0 0

3,158 6,188

3,158 8,931

0 0

1,333 4,770

0

1,333 7,928

TOTAL

2,743

3,158

After taking into account any associated micro-hedging. (1) In accordance with ANC Regulation No. 2020-10, the value of trading securities presented in the balance sheet, as a deduction from debt on securities borrowed, was (2) €63,572 million compared to €67,196 million at December 31, 2019. This amount breaks down into: €14,732 million for treasury bills and equivalent compared to €16,194 million at December 31, 2019. • €48,350 million for bonds and other fixed-income securities, compared to €48,930 million at December 31, 2019. • In addition, among these trading securities, the value of those that were loaned out was €490 million, compared to €2,072 million at December 31, 2019.

Other changes in available-for-sale and investment securities The change in bonds and other fixed-incomesecurities classified as available-for-salesecuritiesmainly reflects the amortizationof shares in a portfolio of mortgage loan or public asset securitizations for a nominal amount of €131 million. The change in bonds and other fixed-incomesecurities classified as held-to-maturity securities mainly reflects the amortization of shares in a portfolio of mortgage loan or public asset securitizations for a nominal amount of €611 million and an acquisition of “senior non-preferred” Natixis shares for €251 million.

The change in variable-income securities, classified under available-for-salesecurities, is mainly due to the acquisition of a UCITS cash fund for €1,650 million and the acquisition of Visa Inc. Class A preference shares following the conversion of VISA Inc. Class C preference shares for €240 million as mentioned in Note 4.4.1. The market value of held-to-maturity securities stood at €2,667 million. At December 31, 2020, unrealized capital gains totaled €245 million, and capital losses €402 million.

550

UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE

www.groupebpce.com