NATIXIS - 2018 Registration document and annual financial report
5 FINANCIAL DATA
Consolidated financial statements and notes
Conditions for classification of financial assets under 9.4.1.1 the fair value option Financial assets are designated at fair value through profit or loss when this choice provides more pertinent information or when these instruments incorporate one or more significant and separable embedded derivatives. The use of the fair value option is considered to provide more pertinent information in two situations:
where there is an accounting mismatch between economically a linked assets and liabilities. This arises for example in the case of an asset and a hedging derivative when the criteria for hedge accounting are not met; where a portfolio of financial assets and liabilities is managed a and recognized at fair value as part of a documented policy of asset and liability management. Financial assets designated at fair value through profit or loss mainly consist of financial assets representative of unit-linked policies from insurance activities.
31/12/2018
31/12/2017
Managed on a fair value basis
Managed on a fair value basis
Embedded derivatives
Embedded derivatives
Carrying amount
Accounting mismatch
Carrying amount
Accounting mismatch
(in millions of euros)
Loans and receivables due from banks Loans and receivables due from customers Debt instruments in the form of securities
0
0
0
0
0
0
0
0
0
0
0
0
2,011
2,011
0
0
2,353
843
0 0
1,510
2,541
972
0
1,569
Equity instruments
15,148
15,148
0
13,667
13,304
363
0
TOTAL
17,501
15,991
0
1,510
18,220
16,287
363
1,569
9.4.2
Available-for-sale financial assets
The table below shows available-for-sale financial assets by type of instrument (fixed-income securities, variable-income securities). It discloses the gross value before impairment, the amount of impairment and the carrying amount net of impairment.
31/12/2018
01/01/2018
(in millions of euros)
Securities
48,045 40,452
47,097 39,225
Debt instruments a
Equity instruments (a)
7,133
7,401
a
Accrued interest a
460
472
Impairment of available-for-sale assets
(245)
(200)
Debt instruments a
(38)
(15)
Equity instruments (b)
(207)
(184)
a
TOTAL
47,801
46,898
Including mutual fund units. (a) At December 31, 2018, permanent impairment of variable-income securities stood at €69 million, compared with €15 million at December 31, (b) 2017. This expense was 88% offset by the profit-sharing mechanism. The 2018 expense can be broken down into an additional impairment loss on previously impaired securities for €13 million (€7 million at December 31, 2017) and an allowance for newly impaired securities for €56 million (€9 million at December 31, 2017).
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Natixis Registration Document 2018
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