BPCE - 2020 Universal Registration Document

FINANCIAL REPORT

BPCE PARENT COMPANY ANNUAL FINANCIAL STATEMENTS

Balances on terminations or transfers are recognized as follows: balances on transactions classified under specialized asset • management contracts or isolated open positions are immediately recognized in the income statement; for micro-hedging and macro-hedging transactions, • balances are amortized over the remaining term of the initially hedged item or immediately recognized in the income statement. Options The notional amount of the underlying asset of an option or forward contract is recognized by distinguishing between hedging contracts and contracts traded for the purposes of capital market transactions. For transactions involving interest rate, foreign exchange or equity options, the premiumspaid or received are recognized

in a temporary account. At the end of the fiscal year, any options traded in an organizedor similar market are measured and recognizedin the income statement.For over-the-counter (OTC) options, provisionsare recognizedfor capital losses but unrealized capital gains are not recognized.When an option is sold, repurchased, or exercised, or when an option expires, the correspondingpremium is recognized immediately in the income statement. Income and expensesfor hedging instrumentsare recognized symmetrically with those from the hedged item. Seller options are not eligible for classification as macro-hedging instruments. Over-the-counter markets may be treated as organized markets when market makers ensure continuous quotations within a range that reflect market practices when the underlyingfinancial instrumentis itself quotedon an organized market.

5.2.1

FINANCIAL INSTRUMENTS AND FOREIGN EXCHANGE FUTURES

12/31/2020

12/31/2019

Hedging transactions

Other transactions

Hedging transactions

Other transactions

Total

Fair value

Total

Fair value

in millions of euros

Forward transactions Interest rate contracts Foreign currency contracts

0 0 0 0

0 0 0 0 0

0 0 0 0

Other contracts

Transactions on organized markets

0

0

0

0

0

5

Forward rate agreements (FRA)

Interest rate swaps

152,698 10,404 15,009

0

152,698 10,404 15,009

2,578 (255)

138,975 15,754 14,291

350

139,325 15,754 14,291

2,178

Foreign exchange swaps

22

Currency swaps

15

527

Other foreign currency contracts Other forward and futures contracts Over-the-counter transactions TOTAL FORWARD TRANSACTIONS

698 487

698 487

0

395 518

395 518

0 1

0 0 0

(24)

0

179,296 179,296

179,296 179,296

2,314 2,314

169,933 169,933

350 350

170,283 170,283

2,728 2,728

Options Interest rate options

0 0 0 0

0 0 0 0

0 0

Foreign currency options

0

0

Other options

Transactions on organized markets

0

0

0

0

0

0

Interest rate options

32

32

(1)

154

154

(1)

Foreign currency options

0 0

0 0

0 0

Other options

0 0 0

0 0 0

Over-the-counter transactions

32 32

32 32

(1) (1)

154 154

154 154

(1) (1)

TOTAL OPTIONS

TOTAL FINANCIAL AND FOREIGN CURRENCY FUTURES

179,328

0

179,328

2,313

170,087

350

170,437

2,727

The notional amounts of contracts listed in this table are solely intended to provide an indication of the volume of BPCE’s activities involving financial instruments at the balance sheet date and do not reflect the market risk associated with these instruments.

Commitments on interest rate derivatives traded over the counter mainly consisted of interest rate swaps for futures and interest rate guarantees for options. Commitmentson foreign exchange instruments traded over the counter mainly consisted of currency swaps.

571

UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE

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