2020 Universal registration document and annual financial report - BNP PARIBAS 505

6information on the Parent ComPany finanCial statements at 31 deCemBer 2020

6

Notes to the parent company financial statements

The provisions break down as follows:

2.g GAINS OR LOSSES ON DISPOSALS OF LONG-TERM INVESTMENTS

In millions of euros

Year to 31 Dec. 2020 Year to 31 Dec. 2019

Income Expenses Income Expenses

Investments in subsidiaries and equity securities held for long-term investment 139 (169) 80 (22)

Divestments 127 (10) 1 (19)

Provisions 12 (159) 79 (3)

Investments in affiliates 324 (1,048) 551 (175)

Divestments 9 (15) 274 (5)

Provisions 315 (1,033) 277 (170)

Operating assets 676 (3) 175 (34)

TOTAL 1,139 (1,220) 806 (231)

NET GAINS OR LOSSES ON DISPOSALS OF LONG-TERM INVESTMENTS (81) 575

2.h CORPORATE INCOME TAX

In millions of euros Year to 31 Dec. 2020 Year to 31 Dec. 2019

Current tax expense (374) (362)

Deferred tax (279) 37

CORPORATE INCOME TAX (653) (325)

The basic tax consolidation agreements between BNP Paribas SA and the subsidiaries belonging to its tax group are designed to be tax neutral for every party. Each Group subsidiary recognises in its own books, over the full term of its consolidation, corporate income tax income or expense, additional contributions and all current or future taxes covered by the scope of tax consolidation just as they would if they were not part of a tax group. BNP Paribas SA, as the parent company, records the impact of Group tax savings from tax consolidation in France in current tax expense.

In millions of euros 31 Dec. 2020 31 Dec. 2019

Provisions deducted from assets 6,553 6,469

For amounts due from credit institutions (note 3.a) 161 191

For amounts due from customers (note 3.b) 5,924 5,965

For securities 418 277

For financial instruments for market activities 50 36

Provisions recognised as liabilities (note 3.k) 285 307

For off-balance sheet commitments 259 274

For doubtful loans 26 33

PROVISIONS FOR CREDIT RISKS 6,838 6,776