2020 Universal registration document and annual financial report - BNP PARIBAS504
6 information on the Parent ComPany finanCial statements at 31 deCemBer 2020
6
Notes to the parent company financial statements
2.e GAINS OR LOSSES ON SECURITIES AVAILABLE FOR SALE
In millions of euros
Year to 31 Dec. 2020 Year to 31 Dec. 2019
Income Expenses Income Expenses
Divestments 600 (48) 625 (141)
Provisions 45 (218) 154 (55)
TOTAL 645 (266) 779 (196)
NET GAINS ON SECURITIES AVAILABLE FOR SALE 379 583
2.f COST OF RISK AND PROVISIONS FOR CREDIT RISKS Cost of risk represents the net amount of impairment losses recognised with respect to credit risks inherent to BNP Paribas SA s banking intermediation activities, plus any impairment losses in the case of known counterparty risk on over-the-counter instruments.
In millions of euros Year to 31 Dec. 2020 Year to 31 Dec. 2019
Additions to or write-backs from provisions during the period (824) (595)
Customer items and credit institutions (670) (509)
Off-balance sheet commitment (4) (30)
Securities (141) (54)
Doubtful loans 5 1
Financial instruments for market activities (14) (3)
Irrecoverable loans not covered by provisions (194) (202)
Recoveries of loans written-off 56 38
COST OF RISK (962) (759)
In millions of euros Year to 31 Dec. 2020 Year to 31 Dec. 2019
Balance at 1 January 6,776 6,370
Additions to or write-backs from provisions during the period 824 595
Write-offs during the period covered by provisions (459) (1,165)
Effect of movements in exchange rates and other (303) 976
PROVISIONS FOR CREDIT RISKS 6,838 6,776
2.d GAINS OR LOSSES ON TRADING ACCOUNT SECURITIES
In millions of euros Year to 31 Dec. 2020 Year to 31 Dec. 2019
Fixed-income instruments and transactions in trading account securities 4,509 3,434
Currency instruments 3,755 249
Credit instruments (875) 772
Other variable income financial instruments and transactions in trading account securities (2,061) 145
NET GAINS ON TRADING ACCOUNT SECURITIES 5,328 4,600
