BPCE_REGISTRATION_DOCUMENT_2017
FINANCIAL REPORT IFRS Consolidated Financial Statements of BPCE SA group as at December 31, 2017
NET GAINS OR LOSSES ON FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS This item includesgains and losses (includingthe related interest)on financial assets and liabilities classified as held for trading or designated at fair value throughprofit or loss. 6.3
“Gains and losses on hedging transactions”include gains and losses arising from the revaluationof derivativesused as fair value hedges, as well as gains and losses from the revaluationof the hedged item in the same manner, the revaluation at fair value of the macro-hedged portfolio and the ineffective portion of cash flow hedges.
Fiscal year 2017
Fiscal year 2016
in millionsof euros
Gains and losseson financial instruments held for trading (1)
2,515
2,119 (112)
Gains and losseson financial instruments designated at fair value through profitor loss
426
Gains and losseson hedgingtransactions - Ineffective portionof fair valuehedges - Ineffective portionof cash flow hedges
(123) (130)
35 33
7
2
Gains and losseson foreignexchange transactions (2)
(18)
174
TOTALNET GAINS ORLOSSESON FINANCIALINSTRUMENTSAT FAIRVALUE THROUGH PROFIT ORLOSS
2,800
2,216
In 2017,“Gainsand losseson financialinstrumentsheld for trading”included: (1)
impairmentstakenagainstthe fair valueof CDS entered into with monolineinsurers(see Note 4.1.6),which led to a decreaseof €7 millionin cumulativeimpairments(income)in 2017,versus ● incomeof €19 millionin 2016excludingforeignexchangeeffect,bringingcumulativeimpairmentsto €63 millionat December 31,2017versus€73 millionat December 31,2016; a reversalof the full portfolio-basedprovisionrecordedon exposuresin respectof CDPCs(CreditDerivativeProductCompanies)was recordedin 2017 in the amountof €1 million.In 2016,a ● €4 millionreversalwas carriedout, bringingthe cumulativebalanceof the portfolio-basedprovisionto €1 million; the +€79 millionchange in the fair valueof derivativesdue to the differencein impairmentsfor counterpartyrisk (CreditValuationAdjustment– CVA), in the amountof -€55 milliondue to the ● considerationof non-performancerisk in the valuationof derivativefinancialliabilities(DebitValuationAdjustment– DVA),and in the amountof +€25 milliondue to the inclusionof an adjustment for fundingcosts (FundingValuationAdjustment– FVA). Incomeof €47 millionwas recordedin 2016,correspondingto the reclassificationof foreignexchangegainsand lossesarisingon the reimbursementby certainentitiesof capital in foreign (2) currenciesor equity items treatedas capital.
5
Day-one profit
Fiscal year 2017
Fiscal year 2016
in millionsof euros
Day-oneprofit at the start ofthe year Deferred profiton new transactions Profit recognized in income during the year DAY-ONE PROFITAT YEAR-END
74
82 53
100 (97)
(62)
77
73
NET GAINS OR LOSSES ON AVAILABLE-FOR-SALE FINANCIAL ASSETS 6.4
This item includesdividendsfrom variable-incomesecurities,gains and losses on the sale of available-for-sale financialassets and other financial assets not valuedat fair value aswell as impairment losses recognized on variable-income securities due to a permanent impairment in value.
Fiscal year 2017
Fiscal year 2016
in millionsof euros
Gains or losseson disposal
282 170 (35) 417
944 184 (93)
Dividendsreceived
Permanent impairment of variable-incomesecurities
TOTALNET GAINS ORLOSSESONAVAILABLE-FOR-SALE FINANCIAL ASSETS
1,035
In 2016, “Gains or losses on disposal”included € 831 millionrelatedto the capital gainon the disposal of Visa Europe shares. In 2017, permanent impairment of variable-income securities amounted to € 35 million, versus € 93 million in 2016. This expense involves insurance portfolios for € 15 million ( € 40 million at December 31, 2016), the impact of which is neutralized given the profit-sharing mechanism.
In 2017, permanent impairment in value of variable-income securities (1) also includedan additionalimpairmentloss of € 18 million on previously impaired securities ( € 55 million in2016). The allowancefor newly-impairedsecuritieslinked to the application of analysis criteria as defined in the accounting principles and methods(see Note 4.1.7) amountedto € 9 million,primarilyapplicable to insuranceportfolios( € 37 millionin 2016, also mainly for insurance portfolios).
Excluding insurance portfolio securities, in light of the deferred profit-sharing mechanism. (1)
419
Registration document 2017
Made with FlippingBook - professional solution for displaying marketing and sales documents online