BPCE - 2018 Registration document

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

Transferred financial assets not fully derecognized and other financial assets pledged as collateral 5.19.1

Carrying amount

Assets transferred or pledged as collateral

Outright securities lending

Repurchase agreements

12/31/2018

Securitizations

in millions of euros

Financial assets at fair value through profit or loss – Held for trading Financial assets at fair value through profit or loss – Non SPPI Financial assets at fair value through other comprehensive income

2,699

7,456

2,934

782

13,871

11

11

4,317 1,821 8,837 8,837

111

2,483

6,910

Financial assets at amortized cost

91,654 97,082 81,787

38,400 39,182 39,182

131,875 152,667 137,373

TOTAL FINANCIAL ASSETS PLEDGED AS COLLATERAL o/w transferred financial assets not fully derecognized

7,566 7,566

The amount of liabilities associated with financial assets pledged as collateral for repurchase agreements came to € 6,787 million at December 31, 2018 ( € 14,943 million at December 31, 2017). The fair value of assets pledged as collateral for non-deconsolidating securitization transactions was € 39,213 million at December 31, 2018 ( € 34,107 million at December 31, 2017) and the amount of related liabilities came to € 15,406 million at December 31, 2018. Transferred financial assets not fully derecognized and other financial assets pledged as collateral as of December 31, 2017

Carrying amount

Assets transferred or pledged as collateral

Outright securities lending

Repurchase agreements

5

12/31/2017

Securitizations

in millions of euros

Financial assets held for trading

2,314

14,243

83 12

653

17,293

Financial assets designated at fair value through profit or loss

12

Available-for-sale financial assets

3,500

1,301

7,402

12,203 119,274

Loans and receivables Held-to-maturity assets

23

85,797

33,454

119

119

TOTAL FINANCIAL ASSETS PLEDGED AS COLLATERAL o/w transferred financial assets not fully derecognized

5,814 5,814

15,686 15,686

93,294 81,646

34,107 34,107

148,901 137,253

5.19.1.1 Comments on transferred financial assets SECURITIES REPURCHASING AND LENDING Groupe BPCE repurchases and loans securities.

nevertheless remains exposed to virtually all the risks and benefits, and as such the receivables are maintained on the balance sheet. SECURITIZATIONS CONSOLIDATED WITH OUTSIDE INVESTORS Securitizations consolidated with outside investors constitute an asset transfer according to the amendment to IFRS 7. The Group has an indirect contractual obligation to transfer to outside investors the cash flow from assets transferred to the securitization fund (although these assets are included in the Group’s balance sheet through the consolidation of the fund). In the interest of transparency, for consolidated securitization transactions: the share of receivables sold attributable to external investors is ● considered to be pledged as collateral to third parties; the share of receivables sold attributable to units and bonds ● subscribed for by the Group, and eliminated on consolidation, is not considered to be pledged as collateral unless these securities were brought to Groupe BPCE’s single treasury and central bank collateral management pool and used as part of a refinancing mechanism.

Under the terms of the agreements, the securities may be sold on by the purchaser throughout the duration of the repurchase or lending operation. The purchaser must nevertheless return them to the vendor at the transaction’s maturity date. The cash flows generated by the securities are also transferred to the vendor. The Group believes that it has retained almost all of the risks and benefits of the securities repurchased or loaned. They have therefore not been derecognized. Financing has been recorded in liabilities for the repurchasing or lending of financed securities. Groupe BPCE sells receivables as security (Articles L. 211-38 or L. 313-23 et seq. of the French Monetary and Financial Code) under guaranteed refinancing operations, notably with the central bank. This type of disposal for security involves the legal transfer of the associated contractual rights, and therefore the “transfer of assets” within the meaning of the amendment to IFRS 7. The Group SALES OF RECEIVABLES

315

Registration document 2018