BPCE - 2018 Registration document

FINANCIAL REPORT IFRS Consolidated Financial Statements of Groupe BPCE as at December 31, 2018

4.2

FEE AND COMMISSION INCOME AND EXPENSES

Accounting principles Fees and commissions are recorded based on the type of service rendered and on the method of accounting for the financial instrument to which the service relates. This line includes mainly fees and commissions receivable or payable on recurring services (payment processing, custody fees, etc.) and occasional services (fund transfers, payment penalties, etc.), fees and commissions receivable or payable on execution of significant transactions, and fees and commissions receivable or payable on trust assets held or managed on behalf of the Group’s customers. However, fees and commissions that form an integral part of the effective yield on a contract are recorded under “Net interest income”. Commissions on services Commissions on services are analyzed to separately identify their different items (or performance obligations) and to assign the appropriate share of revenues to each item. Each item is then recorded in the income statement by type of service provided, and according to the method used to recognize the associated financial instrument: commissions payable or receivable on recurring services are deferred over the period in which the service is provided (payment processing, ● custody fees, etc.); commissions payable or receivable on occasional services are recognized in full in income when the service is provided (fund transfers, ● payment penalties, etc.); commissions payable or receivable on execution of a significant transaction are recognized in full in income on completion of the ● transaction. When there is some uncertainty about the amount of a commission (incentive fee in asset management, variable financial engineering commission, etc.), only the amount that the Group is already certain to receive, given the information available at the end of the fiscal year, is recognized. Fees and commissions that form an integral part of the effective yield on an instrument, such as fees on loan commitments given or loan set-up fees, are recognized and amortized as an adjustment to the effective interest rate over the estimated term of the applicable loan. These fees and commissions are recognized as “Interest income” rather than “Fee and commission income”. Fiduciary and similar fees and commissions are those that result in assets being held or invested on behalf of individual customers, pension schemes or other institutions. Trust-management services mainly cover asset management business and custody services on behalf of third parties.

5

Fiscal year 2018

Fiscal year 2017

Income

Expense

Net (28)

Income

Expense

Net

in millions of euros

Cash and interbank transactions

19

(47) (39)

22

(57) (22)

(35)

Customer transactions

3,173

3,134

3,294

3,272

Financial services

670

(721)

(52)

662

(751)

(89)

Sales of life insurance products

1,237 1,660

///

1,237 1,116

1,220 1,570

///

1,220 1,024

Payment services

(543) (181)

(546) (188)

Securities transactions

216

35

326

138

Trust management services*

3,976

(5)

3,971

3,606

(8)

3,598

Financial instruments and off-balance sheet transactions

475 266

(109) (477)

366

455 433

(156) (409)

299

Other fee and commission income/(expense) TOTAL FEE AND COMMISSION INCOME AND EXPENSES

(212)

24

11,691

(2,123)

9,568

11,588

(2,137)

9,451

Of which performance fees in the amount of €426 million (of which €420 million for Europe) in 2018, versus €287 million (of which €266 million for Europe) in 2017. *

283

Registration document 2018