BPCE - 2020 Universal Registration Document

FINANCIAL REPORT

BPCE PARENT COMPANY ANNUAL FINANCIAL STATEMENTS

SUBORDINATED DEBT

4.10

Accounting principles Subordinated debt comprises proceeds from issues of both term and perpetual subordinated debt securities, and mutual guarantee deposits. In the event of the obligor’s liquidation, the repayment of subordinated debt is only possible after all other creditors have been satisfied. Accrued interest payable on subordinated debt is disclosed separately as a related payable, as a balancing entry to the income statement entry.

12/31/2020

12/31/2019

in millions of euros

Term subordinated debt Perpetual subordinated debt

13,892

14,924

0

0

Perpetual deeply subordinated debt

700 409

700 384

Accrued interest

TOTAL

15,001

16,008

Bond issue and redemption premiums remaining to be amortized at December 31, 2020 totaled €65 million. Perpetual deeply subordinated debt has the following characteristics:

Outstanding at 12/31/2019 (in millions of euros)

Amount (in original currency)

Interest rate after initial redemption option date Euribor 3 months +5.04%

Interest rate after step-up date

Date of interest step-up

Next redemption option date

Currency

Issue date

Rate

Euribor 3 months +5.04%

EUR

11/30/2018

700 700

700 5.35%

11/30/2023

11/30/2023

TOTAL

5

4.11

FUND FOR GENERAL BANKING RISKS

Accounting principles This fund is intended to cover risks inherent in the company’s banking activities, in accordancewith the provisions of Article 3 of CRBF Regulation No. 90-02. It also includes the amounts allocated to thefunds set up as part of the guaranteemechanism (see Note 1.2).

12/31/2019

Increase

Decrease

12/31/2020

in millions of euros

Fund for general banking risks

65 65

-

-

65 65

TOTAL

-

-

567

UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE