BPCE - 2018 Registration document
5 FINANCIAL REPORT
IFRS Consolidated Financial Statements of Groupe BPCE as at December 31, 2018
SUBORDINATED DEBT 5.14
Accounting principles Subordinated debt differs from other debt and bonds in that it will be repaid only after all the senior and unsecured creditors, but before the repayment of participating loans and securities and deeply subordinated notes. Subordinated debt which the issuer is obliged to repay is classified as debt and initially recognized at fair value less any transaction costs. It is subsequently measured at amortized cost at each balance sheet date using the Effective Interest Method.
12/31/2018
01/01/2018
in millions of euros
Subordinated debt designated at fair value
100 100
100 100
SUBORDINATED DEBT AT FAIR VALUE THROUGH PROFIT OR LOSS
Term subordinated debt Perpetual subordinated debt Mutual guarantee deposits Subordinated debt and similar
16,208
16,115
334 192
321 158
16,734
16,594
Accrued interest
360 504
328 489
Revaluation of the hedged component
SUBORDINATED DEBT AT AMORTIZED COST
17,598 17,698
17,411 17,511
TOTAL SUBORDINATED DEBT*
Including €672 million for the insurance entities at December 31, 2018, versus €639 million at December 31, 2017. *
The fair value of subordinated debt is presented in Note 10.
Changes in subordinated debt and similar during the year
12/31/2018
01/01/2018
Issuance (1)
Redemption (2)
Other changes (3)
in millions of euros
Subordinated debt designated at fair value
100
100
SUBORDINATED DEBT AT FAIR VALUE THROUGH PROFIT OR LOSS
100
100
Term subordinated debt Perpetual subordinated debt Mutual guarantee deposits
16,115
(256)
349
16,244
321 158
(23)
36 34
298 192
SUBORDINATED DEBT AT AMORTIZED COST
16,594 16,694
(279) (279)
419 419
16,734 16,834
SUBORDINATED DEBT AND SIMILAR
No new issuance was made in the 2018 fiscal year; (1) Redemptions of subordinated loans and notes were due to the maturing of such borrowings; (2) Other changes mainly included the revaluation of debts subject to hedging, foreign exchange fluctuations and variations in intra-group securities held by Natixis Funding for the purposes of (3) market-making on Natixis’ debt on the secondary market.
Deeply subordinated notes qualifying as equity instruments are presented in Note 5.15.2.
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Registration document 2018
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