BPCE_REGISTRATION_DOCUMENT_2017
5 FINANCIAL REPORT
IFRS Consolidated Financial Statements of Groupe BPCE as at December 31, 2017
HEDGING DERIVATIVES 5.3 Derivatives may only be designated as hedges if they meet the criteria set out inIAS 39 at inceptionand throughoutthe term of the hedge. These criteria include formal documentationthat the hedging relation between the derivatives and the hedged items is both prospectively and retrospectively effective. Fair value hedges mainly consist of interest rate swaps that protect fixed-rate financial instruments against changes in fair value attributable to changes in market rates of interest. They transform fixed-rate assets or liabilities into floating-rate instruments and
include mostly hedges of fixed-rate loans, securities, deposits and subordinated debt. Fair value hedging is also used to manage their overall interest rate risk position. The cash flow hedges fix or control the variability of cash flows arising from floating-rate instruments. Cash flow hedging is also used to manage the overall interest rate risk position. The notional amounts of derivative instruments are merely an indication of the volume of the Group’s business in financial instruments,and do not reflect the market risks associatedwith such instruments.
12/31/2017
12/31/2016
Notional amount 39,360
Positive fair value
Negative fair value
Notional amount 33,576
Positive fair value
Negative fair value
in millions of euros
Interestrate derivatives Currency derivatives Equity derivatives Cash flowhedges Interestrate derivatives Currency derivatives Credit derivatives Fair valuehedges
180 320
671 593
241 859
965 579
7,489
3,336
197
225
1
47,046 655,634 11,888
500
1,264
37,137
1,100
1,545
8,534
11,300 849,916
11,864
14,906
775
2,161
16,092
1,878
3,336
128
33
667,650 714,696
9,309 9,809
13,461 866,041 14,725 903,178
13,742 14,842
18,242 19,787
TOTALHEDGINGINSTRUMENTS
AVAILABLE-FOR-SALE FINANCIAL ASSETS 5.4 These are non-derivativefinancialassets that could not be classifiedin any other category(“Financialassets at fair value”, “Financialassets held to maturity” or “Loansand receivables”).
12/31/2017
12/31/2016
in millionsof euros
Treasury billsand equivalent
44,530 45,312
42,929 43,690
Bondsand other fixed-income securities
Impaired securities
173
156
Fixed-income securities
90,015 15,848
86,775 14,683
Equitiesand othervariable-incomesecurities
Loans
34
33
Available-for-salefinancialassets, gross Impairment offixed-income securitiesand loans
105,897
101,491
(107)
(83)
Permanent impairment of equities and othervariable-incomesecurities
(1,121)
(1,251)
TOTALAVAILABLE-FOR-SALE FINANCIAL ASSETS
104,669
100,157
Gains andlosses recognized directly in equityon available-for-sale financial assets(before tax) (1) 5,945 Includingthe portionattributableto non-controllinginterests(€1,297 millionat December 31,2017,comparedwith €1,342 millionat December 31,2016). In the insurancesubsidiaries,this net (1) unrealizedcapitalgain gave rise to the symmetricalrecognitionof deferredprofit-sharingof €3,780 millionat December 31,2017,comparedwith €3,780 millionat December 31,2016 (see Note 5.18). 5,960
Available-for-salefinancial assets held by the insurance companies controlled by Groupe BPCE amounted to € 51,197 million at December31, 2017 and € 47,458million at December31, 2016. Impairment losses are recognized for available-for-sale financial assets whenever the Group considers that its investmentmay not be
recovered.For variable-incomesecurities quoted in an active market, a price decline in excess of 50% in relation to the historical cost or for more thana 36-month periodconstitutesevidence of impairment.
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Registration document 2017
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