BPCE - 2020 Universal Registration Document

5

FINANCIAL REPORT

BPCE PARENT COMPANY ANNUAL FINANCIAL STATEMENTS

DEBT SECURITIES

4.6

Accounting principles Debt securities are presented according to the type of underlying: retail certificates of deposit, interbank and negotiable debt securities, bonds and other debt securities, apart from subordinated debt, which is recorded separately under liabilities. Accrued interest on these instruments is disclosed separately as a related payable, as a balancing entry to the income statement entry. Issue premiums are recognized in full during the period or are recognized on a straight-line basis over the life of the debt. Issue and redemption premiums are spread over the life of the loan via a deferred expenses account. For structured debt, applying the principle of conservatism, only the certain portion of remuneration or principal is recognized. Unrealized gains are not recorded. Unrealizedlosses are subject to a provision.

12/31/2020

12/31/2019

in millions of euros

Certificates of deposit and savings bonds

0

0

Interbank market instruments and negotiable debt securities

28,859 33,167 21,552

32,525 31,315 18,066

Bonds

Other debt securities*

Accrued interest

408

659

TOTAL 82,565 Other debt securities are a category of liabilities eligible for the numerator in the TLAC (Total Loss Absorbing Capacity) calculation, which has been introduced by French law and * is commonly referred to as “senior non-preferred debt”. These liabilities rank between own funds and other senior preferred debt. 83,986

The amount of bond issue and redemption premiums remaining to be amortized totaled €161 million.

The unamortized balance is the difference between the amount initially received and the redemption price for debt securities.

4.7

OTHER ASSETS, OTHER LIABILITIES

12/31/2020

12/31/2019

Assets

Liabilities

Assets

Liabilities

in millions of euros

Remaining payments due on investments in associates

0

28

0

34 63

Securities settlement accounts (3) Premiums on options bought and sold

95

1,337

124

0 0

0 0

1 0

0 0

Amounts payable on borrowed securities and other securities debt (1)

Tax and social security receivables and liabilities

448 350 896

462

383

372

Security deposits paid and received

0

91

0

Other accounts receivable, other accounts payable (2)

2,575 4,402

906

2,972

TOTAL 3,441 In accordance with ANC Regulation No. 2020-10, the amount of liabilities for 2019 has been restated for debt on borrowed securities and reduced by the value of identical (1) securities classified by the institution as trading securities and concurrent with the amount of debt. (see Note 4.3.1). Other accounts receivable include notably €374 million in security deposits paid, including €153 million paid to securitization funds for the Group’s securitization activities, and (2) €214 million in margin calls paid. Other accounts payable include €2,347 million in margin calls received, including €2,287 million from Natixis. This line concerns the securities custody activity. (3) 1,789 1,505

562

UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE

www.groupebpce.com