BPCE_REGISTRATION_DOCUMENT_2017

FINANCIAL REPORT IFRS Consolidated Financial Statements of Groupe BPCE as at December 31, 2017

Note 5

Notes to the balance sheet

5.1

CASH AND AMOUNTS DUE FROM CENTRAL BANKS

12/31/2017

12/31/2016

in millionsof euros

Cash

2,712

2,490

Amount due from centralbanks

91,990 94,702

81,429 83,919

TOTALCASH AND AMOUNTSDUE FROMCENTRAL BANKS

Financial assets at fair value through profit or loss 5.2.1 Financial assets in the trading book mainly include proprietary securities transactions, repurchase agreements and derivative instruments contracted by the Group to manageits risk exposure.

FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS Financial assets and liabilities at fair value through profit or loss comprise instruments held for trading, including derivatives, and certain assets and liabilities that the Group has chosen to recognize at fair value, at their date of acquisitionor issue, using the fair value option available under IAS 39. 5.2

12/31/2017

12/31/2016

Trading Fair value option

Total

Trading Fair value option

Total

in millions of euros

Treasury billsand equivalent

10,948

114

11,062

10,617

126

10,743

Bondsand other fixed-income securities

4,152

2,571 2,685

6,723

5,825

2,210 2,336

8,035

5

Fixed-income securities

15,100

17,785

16,442

18,778

Equitiesand othervariable-income securities

40,467

19,591

60,058

35,364

14,913

50,277

Loans tocredit institutions

186

2

188

405

34

439

Loans tocustomers

1,752 1,938

8,322 8,324

10,074 10,262 34,504 47,159

1,350 1,755

9,099 9,133

10,449 10,888 40,371 52,847

Loans

Repurchase agreements (1)

34,504

40,371

Trading derivatives (1)

47,159

///

52,847

///

TOTALFINANCIALASSETSAT FAIR VALUE THROUGH PROFIT OR LOSS

104,664

65,104

169,768

106,408

66,753

173,161

This informationis presentedin considerationof nettingeffects, in accordancewith IAS 32(see Note 5.24). (1)

Financial assets at fair value through profit or loss held by the insurance companies controlled by Groupe BPCE amounted to € 23,948 million at December 31, 2017 and € 18,018 million at December31, 2016. Conditions for designating financial assets designated at fair value Financial assets are designated at fair value through profit or loss when this choice provides more pertinent information or when the instruments incorporate one or more significant and separable embeddedderivatives(see Note4.1.4). 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 ● linked assets and liabilities. In particular, the fair value option is used when hedge accountingconditionsare not met: in such cases, changes in the fair value of the hedged item automaticallyoffset changes inthe fair valueof the economichedgingderivative;

where a portfolio of financial assets and liabilities is managed and ● recognizedat fair value as part of a documentedasset and liability managementpolicy. At Group level, financial assets measured at fair value through profit or loss are mostly held by Natixis. They consist primarilyof long-term structured repos indexed to a basket of equities whose risks are managed globally and dynamically,financial assets representativeof unit-linked policies from insurance activities and, to a lesser extent, assets with embedded derivatives for which the principle of separation wasnot adopted. Financial assets accounted for under the fair value option, excluding Natixis, also include certain contracts for structured loans to local authorities and structured bonds hedged by derivatives not designated as hedging instruments, assets containing embedded derivativesand fixed-income instruments index-linked to a credit risk.

275

Registration document 2017