BPCE - 2018 Registration document

First page Table of contents Next page Last page

1. PRESENTATION OF GROUPE BPCE	5
1.1 Groupe BPCE: committed to serving its customers and the economy	6
1.2 History	7
1.3 Organization of Groupe BPCE	8
Overview	8
Three-pillar structure	9
Balanced governance	10
1.4 TEC 2020: a strategic plan focused on digital transformation, commitment and growth	11
1.5 Performance of Groupe BPCE – Key figures 2018	13
Recurring, diversified revenue base	13
High level of solvency	14
BPCE SA group indicators	15
Sustainable development central to the Group’s activities	15
1.6 Groupe BPCE’s business lines	16
1.6.1 Retail Banking and Insurance	17
1.6.2 Natixis	26
1.7 Calendar	33
1.8 Contacts	33
2. NON-FINANCIAL PERFORMANCE REPORT	35
2.1 Sustainable development built on our cooperative identity	37
2.1.1 A business model that creates lasting value and has confirmed its solidity	37
2.1.2 A strong cooperative identity	42
2.2 A CSR strategy aimed at incorporating sustainable development in our business lines and decision-making processes	46
2.2.1 Identifying our priorities: analysis of ESG risks and opportunities to build a relevant, ambitious CSR strategy	46
2.2.2 Our key performance indicators	47
2.2.3 Our commitments	47
2.2.4 Constant dialog with our stakeholders	56
2.3 A range of services to meet the challenges facing our customers	58
2.3.1 Steering deposits and savings towards a more responsible economy	58
2.3.2 Financing for the energy, ecological and social transition: offers tailored to our customers’ needs	65
2.3.3 Helping customers address climate risk and gear up for the energy transition	75
2.4 Sustainable and responsible value creation	83
2.4.1 Contribution to regional economic development	83
2.4.2 Active sponsorship in the French regions	86
2.4.3 Respecting business ethics in all Group business lines	88
2.5 Responsible internal practices	99
2.5.1 Employees: helping to build and develop the Group	99
2.5.2 Reducing our direct environmental footprint	114
2.6 CSR reporting methodology	120
2.6.1 CSR reporting structure	120
2.6.2 Reporting scope for 2018	123
2.7 Report by one of the Statutory Auditors, appointed as independent third-party, on the consolidated non-financial statement published in the Group management report	124
3. REPORT ON CORPORATE GOVERNANCE	127
3.1 Introduction	128
3.2 Corporate Governance Code	128
3.3 Management and Supervisory Bodies	130
3.3.1 Groupe BPCE governance structure	130
3.3.2 Supervisory Board	132
3.3.3 Management Board	137
3.3.4 Executive Management Committee – BPCE governing body	138
3.3.5 Directorships and offices held by corporate officers	139
3.4 Role and operating rules of governing bodies	181
3.4.1 Supervisory Board	181
3.4.2 Specialized committees	185
3.4.3 Attendance of Supervisory Board and specialized Committee Meetings	189
3.4.4 Management Board	190
3.4.5 Annual General Shareholders’ Meetings	190
3.5 Rules and principles governing the determination of pay and benefits	192
3.5.1 Pay policy, components of pay, benefits in kind, loans, guarantees and attendance fees received by members of the Supervisory Board of BPCE	192
3.5.2 Pay and benefits of any kind awarded to Management Board Members for 2018	196
3.5.3 2019 Pay Policy	212
3.6 Potential conflicts of interest	220
3.6.1 Members of the Supervisory Board	220
3.6.2 Members of the Management Board	221
4. ACTIVITIES AND FINANCIAL INFORMATION 2018	223
4.1 Foreword	224
4.2 Significant events of 2018	224
4.2.1 Economic and financial environment	224
4.2.2 Significant events of the fiscal year	225
4.3 Groupe BPCE financial data	228
4.3.1 Groupe BPCE results	228
4.3.2 Groupe BPCE’s core businesses	229
4.3.3 Income statement by sector	230
4.3.4 Retail Banking and Insurance	231
4.3.5 Asset & Wealth Management	236
4.3.6 Corporate & Investment Banking (CIB)	237
4.3.7 Corporate center	238
4.3.8 Analysis of the Groupe BPCE consolidated balance sheet	239
4.4 BPCE SA group financial data	241
4.4.1 BPCE SA group results	241
4.4.2 Analysis of the consolidated balance sheet of BPCE SA group	242
4.5 Investments	243
4.5.1 In 2018	243
4.5.2 In 2017	243
4.5.3 In 2016	243
4.6 Post-balance sheet events	243
4.7 Outlook for Groupe BPCE	244
5. FINANCIAL REPORT	247
5.1 IFRS Consolidated Financial Statements of Groupe BPCE as at December 31, 2018	250
5.1.1 Consolidated income statement	250
5.1.2 Comprehensive income	252
5.1.3 Consolidated balance sheet	254
5.1.4 Statement of changes in equity	256
5.1.5 Consolidated cash flow statement	258
5.1.6 First-time application of IFRS 9	259
5.1.7 Notes to the financial statements of Groupe BPCE	267
5.2 Statutory Auditors’ report on the consolidated financial statements	399
5.3 IFRS Consolidated Financial Statements of BPCE SA group as at December 31, 2018	409
5.3.1 Consolidated income statement	409
5.3.2 Comprehensive income	411
5.3.3 Consolidated balance sheet	412
5.3.4 Statement of changes in equity	414
5.3.5 Consolidated cash flow statement	416
5.3.6 First-time application of IFRS 9	417
5.3.7 Notes to the financial statements of BPCE SA group	425
5.4 Statutory Auditors’ report on the consolidated financial statements	534
5.5 BPCE management report	544
Significant events of 2018	544
Company situation and activity in 2018	545
5.6 BPCE parent company annual financial statements	551
5.6.1 Balance sheet and off-balance sheet	551
5.6.2 Income statement	553
5.6.3 Notes to the parent company annual financial statements	554
5.7 Statutory Auditors’ report on the financial statements	587
5.8 Controls of accounting and financial reporting quality	591
5.8.1 Roles and responsibilities in preparing and processing accounting and financial information	591
5.8.2 Production processes for accounting and financial data	592
5.8.3 Control process for accounting and financial data	594
5.9 Persons responsible for auditing the financial statements	597
5.9.1 Statutory Audit system	597
5.9.2 Statutory Auditors of BPCE	597
6. RISK REPORT	599
6.1 Summary of risks	601
6.1.1 Types of risk	601
6.1.2 Key figures	602
6.1.3 Regulatory changes	604
6.1.4 Main risks and emerging risks	605
6.1.5 Risk factors	605
6.2 General structure of Groupe BPCE’S internal control system	615
6.2.1 Participants in the control system	615
6.2.2 Permanent and Periodic Control departments	615
6.2.3 Structure of Groupe BPCE’s internal control system	616
6.3 Capital management and capital adequacy	618
6.3.1 Regulatory framework	618
6.3.2 Scope of application	620
6.3.3 Composition of regulatory capital	622
6.3.4 Regulatory capital requirements and risk-weighted assets	625
6.3.5 Management of capital adequacy	627
6.4 Risk governance and management system	630
6.4.1 Governance of risk management	630
6.4.2 Groupe BPCE’s risk management system	635
6.4.3 Recovery Plan	638
6.5 Credit risk	639
6.5.1 Credit risk management	639
6.5.2 Risk measurement and internal ratings	645
6.5.3 Credit risk mitigation techniques	651
6.5.4 Quantitative disclosures	654
6.6 Counterparty risk	660
6.6.1 Counterparty risk management	660
6.6.2 Quantitative disclosures	661
6.7 Securitization transactions	663
6.7.1 Regulatory framework and accounting methods	663
6.7.2 Securitization management at Groupe BPCE	664
6.7.3 Quantitative disclosures	665
6.8 Market risks	668
6.8.1 Market risk policy	668
6.8.2 Market risk management	668
6.8.3 Market risk measurement methods	670
6.8.4 Quantitative disclosures	671
6.9 Liquidity, interest rate and foreign exchange risks	674
6.9.1 Governance and structure	674
6.9.2 Liquidity risk management policy	674
6.9.3 Quantitative disclosures	676
6.9.4 Management of structural interest rate risk	679
6.9.5 Management of structural foreign exchange risk	680
6.10 Legal risks	681
10.1 Legal and arbitration proceedings – BPCE	681
6.10.2 Legal and arbitration proceedings – Natixis	681
6.10.3 Dependency	683
6.11 Non-compliance, security and operational risks	684
6.11.1 Compliance	684
6.11.2 Financial security	687
6.11.3 Business continuity	688
6.11.4 Information System Security (ISS)	689
6.11.5 Operational risks	691
6.11.6 Compliance and Risks – Insurance & Non-Banking Operations	694
6.11.7 Technical Insurance risks	696
6.12 Climate risks	700
6.12.1 Organization	700
6.12.2 Activities in 2018 and strategic guidelines	700
7. LEGAL INFORMATION	703
7.1 Memorandum and articles of association	704
7.1.1 General information	704
7.1.2 Appropriation of earnings	705
7.1.3 Annual General Shareholders’ Meetings	706
7.1.4 Company documents	706
7.2 Share capital	707
7.2.1 Share capital at December 31, 2018	707
7.2.2 Category “A” and “B” shares	708
7.3 Ownership structure and distribution of voting rights	710
7.3.1 Ownership structure over the past three years	710
7.3.2 Improper control	711
7.3.3 Changes of control	711
7.4 Material contracts	712
7.5 Material changes	712
7.6 Statutory Auditors’ special report on related-party agreements and commitments	713
7.6.1 Agreements and commitments to be submitted for the approval of the Annual General Shareholders’ Meeting	714
7.6.2 Agreements and commitments already approved by the Annual General Shareholders’ Meeting	718
8. STATEMENT BY THE PERSON RESPONSIBLE	729
8.1 Statement by the person responsible for the registration document and for the annual financial report	730
Statement by the person responsible	730
9. ADDITIONAL INFORMATION	731
9.1 Documents on display	732
9.2 Cross-reference table for the registration document	733
9.3 Cross-reference table for the annual financial report and the management report	735
9.4 Cross-reference table of the main social, environmental and societal information	737
9.5 Glossary	738

Made with FlippingBook flipbook maker