BPCE - 2020 Universal Registration Document

5

FINANCIAL REPORT

BPCE PARENT COMPANY ANNUAL FINANCIAL STATEMENTS

4.3.2

CHANGES IN HELD-TO-MATURITY SECURITIES

Transfers between categories Conversion

Disposals and redemptions

Discount/ premium

Other changes

12/31/2019 Purchases

12/31/2020

in millions of euros

Treasury bills

0

0

0

0

0

Bonds and other fixed-income securities

3,158 3,158

251 251

(611) (611)

(76) (76)

25 25

(4) (4)

2,743 2,743

TOTAL

0

The changes mainly reflected the amortization of shares in a portfolio of mortgage loan and public asset securitizations for a nominal value of €611 million and the acquisition of Natixis “Senior not-preferred” shares for €251 million.

4.3.3

RECLASSIFICATION OF ASSETS

Accounting principles In the interest of harmonizing accounting practices and ensuring consistencywith IFRS, ANC RegulationNo. 2014-07 reiterates the provisions of Opinion No. 2008-19 of December 8, 2008 ono the reclassificationof securitiesout of the “Trading securities” and “Available-for-sale securities” categories. Reclassification from the “trading securities” category to the “Available-for-sale” and “Held-to-maturity”categories is now allowed in the following two cases: under exceptional market circumstances calling for a • change of strategy; where fixed-income securities are no longer, after their • acquisition, tradable on active markets, and provided that the company has the intention and ability to hold them in the foreseeable future or until they reach maturity. Reclassificationsfrom the “available-for-sale”category to the “Held-to-maturity” category are effective as from the reclassification date in either of the following conditions: under exceptional market circumstances calling for a • change of strategy; Reclassification due to a change of intention (provisions of CRB Regulation No. 90-01 prior to CRC Regulation No. 2008-17, replaced by ANC Regulation No. 2014-07) BPCE has not reclassified any assets in the last two fiscal years.

where fixed-income securities are no longer tradable on an • active market. In its March 23,2009 press release, the Conseil national de la comptabilité (CNC – French National Accounting Board) specified that “the possibility of portfolio transfers, in particular from available-for-sale securities portfolios to held-to-maturity securities portfolios as specified under Article 19 of CRB RegulationNo. 90-01before it was updated by CRC Regulation No. 2008-17, remains in force and is not repealed by ANC RegulationNo. 2014-07.As CRC Regulation No. 2008-17, replaced by ANC Regulation No. 2014-07, provided for additional possibilities of transfers between portfolios,these new transferpossibilitiesare added, as of the regulation’seffectivedate of July 1, 2008, to those previously defined”. Consequently, reclassification from the available-for-sale securities portfolio to the held-to-maturity portfolio remains possible through a simple change of intention if, at the transfer date, all the criteria for a held-to-maturityportfolio are met.

In fiscal year 2020, the amortization of held-to-maturity securities reclassified in 2015 as available-for-sale securities represented a nominal amount of €131 million.

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UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE

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