NATIXIS - Universal registration document and financial report 2019

5 FINANCIAL DATA

Consolidated financial statements and notes

Financial liabilities designated at fair value through profit or loss 8.1.2 The table below shows the breakdown of financial liabilities at fair value through profit and loss by instrument type.

31/12/2019

31/12/2018

Financial liabilities designated under the fair value option 8.1.2.1 and 8.1.2.2

Financial liabilities designated under the fair value option 8.1.2.1 and 8.1.2.2

Financial liabilities issued for trading

Financial liabilities issued for trading

Total

(in millions of euros)

Total

Note

Securities

18,840

24,759 24,659

43,598 24,955

21,062

22,132 22,032

43,194 22,332

Debt securities

297

301

Subordinated debt

0

100

100

0

100

100

Short sales

18,543 96,032

0 0

18,543 96,032

20,761 90,812

0 0

20,761 90,812

Repurchased securities (a)

Liabilities

12

3,933

3,945

14

4,579

4,593

Due to banks

0

96

96

0

67

67

Customer deposits

12

139

151

14

123

137

Other liabilities

0

3,699

3,699

0

4,389

4,389

Derivative instruments not eligible for hedge accounting (a)

59,718 14,985 189,587

0 0

59,718 14,985 218,279

57,160 12,423 181,472

0 0

57,160 12,423 208,183

Security deposits received

TOTAL

28,692

26,711

The information presented takes into account the impact of offsetting carried out in accordance with IAS 32 (see Note 8.3). (a)

where a portfolio of financial assets and liabilities is managed and V recognized at fair value as part of a documented policy of asset and liability management. Liabilities measured at fair value through profit and loss mainly comprise issues originated and structured on behalf of customers for which risks and hedging are collectively managed. These issues include significant embedded derivatives for which changes in value are neutralized, except for those allocated to own credit risk, by those of the derivative instruments hedging them.

8.1.2.1

Conditions for classification of financial

liabilities under the fair value option Financial liabilities are designated at fair value through profit and loss when this choice provides more pertinent information or when the instruments incorporate one or more significant and separable embedded derivatives (see Note 6.1.5) . 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 V linked assets and liabilities. In particular, the fair value option is used when hedge accounting conditions are not met: in such cases, changes in the fair value of the hedged item automatically offset changes in the fair value of the hedging derivative;

31/12/2019

31/12/2018

Managed on a fair

Managed on a fair value basis

Accoun- ting mismatch

Carrying amount

value basis

Embedded derivatives

Carrying amount

Accounting mismatch

Embedded derivatives

(in millions of euros)

Due to banks

96

6 0

90

67

6 0

61

Customer deposits

139

139

123

123

Debt securities

24,659

20,569

4,090

22,032

17,770

4,261

Subordinated debt

100

0

100

100

0

100

Other liabilities

3,699

3,699

4,388

4,389

0

TOTAL

28,693

24,274

4,419

26,711

22,165

4,545

Some liabilities issued and recognized under the fair value option through profit or loss are covered by a guarantee. The effect of this guarantee is incorporated into the fair value of the liabilities.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019

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