BPCE - 2018 Registration document

5 FINANCIAL REPORT

IFRS Consolidated Financial Statements of BPCE SA group as at December 31, 2018

01/01/2018

Carrying amount under IAS 39

Carrying amount under IFRS 9

Financial assets under IAS 39

Classification under IFRS 9

Note

Accrued income and other assets

51,206 51,206

Accrued income and other assets

18,477 15,593

Financial assets at fair value through profit or loss

Loans or receivables due from credit institutions at amortized cost Loans or receivables due from customers at amortized cost

3,548

44

Insurance business investments

13,558

(l)

Investment property

1,111

Insurance business investments

949 162

(l)

Investment property

1,111

Cash and amounts due from central banks

82,721

82,721

Revaluation differences on interest rate risk-hedged portfolios

5,096 1,421 1,698 1,195 3,625 1,111

5,096 1,421 1,501 1,195 3,623 1,111

Current tax assets Deferred tax assets

Non-current assets held for sale Investments in associates Property, plant and equipment

Intangible assets

884

884

Goodwill

3,728

3,728

TOTAL

759,620

759,425

Impairment on a portfolio basis is recognized as a deduction from assets, like individual impairment, and is therefore included in the carrying amount of the instruments. * Application of IFRS 9 criteria (Note 2.5) relating to the business models and contractual terms of financial instruments led the Group to make the following modifications to the classification of financial assets compared with IAS 39: Fixed-income securities classified as “Financial assets designated at fair value” according to IAS 39 were reclassified as “Financial assets at fair value through profit or loss” under IFRS 9 for €201 million, as (a) they are managed under a trading business model. Fixed-income securities reclassified as “Financial assets at fair value through profit or loss” under IFRS 9 because they do not meet SPPI criteria totaled €62 million. Variable-income securities classified as “Financial assets designated at fair value” under IAS 39 and managed under a trading business model were classified as “Financial assets at fair value through profit or (b) loss” under IFRS 9 for €242 million. Loans and receivables classified as “Financial assets designated at fair value” under IAS 39 and managed according to a trading business model were classified as “Financial assets at fair value through profit (c) or loss” under IFRS 9 for €2,421 million. Loans and receivables reclassified as “Financial assets at fair value through profit or loss” under IFRS 9 because they do not meet SPPI criteria stood at €2,397 million. Securities received under repurchase agreements classified as “Financial assets designated at fair value” under IAS 39 and managed under a trading business model were classified as “Financial assets at fair (d) value through profit or loss” under IFRS 9 for €36,086 million. Debt instruments classified as “Available-for-sale financial assets” under IAS 39 were classified as “Financial assets at fair value through profit or loss” under IFRS 9 in the amount of €15 million because they (e) do not meet SPPI criteria. Debt instruments in the amount of €14,025 million corresponding mainly to the liquidity reserve securities portfolio, managed under a hold to collect and sell business model, were reclassified as “Financial (f) assets at fair value through other comprehensive income” under IFRS 9. This reclassification had no impact on opening equity. Debt instruments classified as “Available-for-sale financial assets” under IAS 39 and reclassified as assets at amortized cost under IFRS 9 stood at €2,546 million. This reclassification did not have a material impact on opening equity. Unconsolidated UCITS units in the amount of €4,493 million are considered non-SPPI debt instruments under IFRS 9 and are therefore classified as “Financial assets at fair value through profit or loss”. (g) Other variable-income securities (excluding investments in associates) managed under a trading business model were reclassified as “Financial assets at fair value through profit or loss” under IFRS 9. Investments in associates reclassified as “Financial assets at fair value through profit or loss” under IFRS 9 stood at €421 million. Investments in associates reclassified as “Financial assets at fair value through other comprehensive income not recyclable to income” under IFRS 9 represented €1,136 million. (h) These are loans or receivables classified as “Loans and receivables” under IAS 39 and reclassified as “Financial assets at fair value through profit or loss” under IFRS 9 because they do not meet SPPI criteria, (i) for €59 million. This reclassification did not have a material impact on equity. These are debt instruments classified as “Loans and receivables” under IAS 39 and reclassified as “Financial assets at fair value through profit or loss” under IFRS 9 because they do not meet SPPI criteria, for (j) €47 million. Debt instruments managed under a hold to collect and sell business model were reclassified in the amount of €679 million as “Financial assets at fair value through other comprehensive income” under IFRS 9. This reclassification did not have a material impact on opening equity. Securities received under repurchase agreements classified as “Loans and receivables” under IAS 39 and managed under a trading business model are recognized as “Financial assets at fair value through (k) profit or loss” under IFRS 9 for €47,327 million. Reclassification of financial assets of the insurance businesses to “Insurance business investments” in accordance with the ANC recommendation. (l)

The impacts of the transition related to changes in classification and to the application of the new provisioning method are provided in Note 5.3.6§1.

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Registration document 2018