2020 Universal registration document and annual financial report - BNP PARIBAS 245

4Consolidated finanCial statements for the year ended 31 deCemBer 2020

4

Notes to the financial statements

➤ OTHER ITEMS RECOGNISED DIRECTLY IN EQUITY

In millions of euros Year to

31 Dec. 2020 Year to

31 Dec. 2019

Other items recognised directly in equity (11) (6)

Actuarial (losses)/gains on plan assets or reimbursement rights 438 607

Actuarial (losses)/gains of demographic assumptions on the present value of obligations 1 56

Actuarial (losses)/gains of financial assumptions on the present value of obligations (537) (655)

Experience (losses)/gains on obligations 72 (9)

Variation of the effect of assets limitation 15 (5)

➤ MAIN ACTUARIAL ASSUMPTIONS USED TO CALCULATE OBLIGATIONS

In the eurozone, United Kingdom and United States, the Group discounts its obligations using the yields of high quality corporate bonds, with a term consistent with the duration of the obligations.

The ranges of rates used are as follows:

In%

31 December 2020 31 December 2019

Discount rate Compensation increase rate(1) Discount rate

Compensation increase rate(1)

Belgium 0.00%/0.80% 2.60%/3.20% 0.10%/1.10% 2.70%/3.20%

UK 0.30%/1.50% 2.00%/3.20% 1.30%/2.10% 2.00%/3.10%

France 0.00%/0.50% 1.40%/2.95% 0.10%/1.10% 1.60%/2.95%

Switzerland 0.05%/0.10% 1.50% 0.00%/0.20% 1.00%/2.50%

USA 1.40%/2.50% 4.00% 2.35%/3.40% 4.00%

Italy 0.00%/0.60% 1.50%/2.40% 0.20%/0.80% 1.60%/2.40%

Germany 0.30%/0.80% 2.00%/2.50% 0.50%/1.10% 2.00%/2.50%

Turkey 14.50% 11.03% 12.51% 7.59%

(1) Including price increases (inflation)

Observed weighted average rates are as follows:

■ in the eurozone: 0.15% at 31 December 2020 (0.54% at 31 December 2019);

■ in the United Kingdom: 1.31% at 31 December 2020 (2.00% at 31 December 2019);

■ in Switzerland: 0.05% at 31 December 2020 (0.15% at 31 December 2019).

The impact of a 100 bp change in discount rates on the present value of post-employment benefit obligations is as follows:

Change in the present value of obligations In millions of euros

31 December 2020 31 December 2019

Discount rate -100bp

Discount rate +100bp

Discount rate -100bp

Discount rate +100bp

Belgium 314 (274) 324 (282)

UK 443 (330) 436 (319)

France 149 (125) 155 (128)

Switzerland 163 (143) 197 (167)

USA 79 (65) 84 (69)

Italy 19 (18) 22 (20)

Germany 43 (36) 47 (36)

Turkey 16 (13) 12 (10)