2019 Universal registration document and annual financial report - BNP PARIBAS 187

4Consolidated finanCial statements for the year ended 31 deCemBer 2019

4

Notes to the financial statements

In millions of euros IFRS 9 & IFRS 15

Impairment on assets subject to

12-month Expected Credit Losses

(Stage 1)

Impairment on assets subject to lifetime Expected

Credit Losses (Stage 2)

Impairment on doubtful assets

(Stage 3) Total

AT 1 JANUARY 2018 1,445 3,691 22,522 27,658

Net allowance to impairment 142 (300) 2,685 2,527

Financial assets purchased or originated during the period 578 348 - 926

Financial assets derecognised during the period(1) (179) (278) (334) (791)

Transfer to stage 2 (133) 1,687 (415) 1,139

Transfer to stage 3 (68) (676) 2,104 1,360

Transfer to stage 1 111 (667) (98) (654)

Other allowances/reversals without stage transfer(2) (167) (714) 1,428 547

Impairment provisions used (2) (12) (5,623) (5,637)

Effect of exchange rate movements and other items (36) (77) (73) (186)

AT 31 DECEMBER 2018 1,549 3,302 19,511 24,362

(1) Including disposals. (2) Including amortisation.

3.i CORPORATE INCOME TAX

Reconciliation of the effective tax expense to the theoretical tax expense at standard tax rate in France

Year to 31 Dec. 2019 Year to 31 Dec. 2018

In millions of euros tax rate

In millions of euros tax rate

Corporate income tax expense on pre-tax income at standard tax rate in France(1) (4,003) 34.4% (3,280) 34.4%

Impact of differently taxed foreign profits 541 -4.7% 456 -4.8%

Impact of changes in tax rates 77 -0.7%

Impact of the securities taxation 571 -4.9% 362 -3.8%

Impact of the non-deductibility of taxes and bank levies(2) (218) 1.9% (209) 2.2%

Impact of previously unrecognised deferred taxes (tax losses and temporary differences) 76 -0.7% 86 -0.9%

Impact of using tax losses for which no deferred tax asset was previously recognised 4 - - -

Other items 141 -1.1% 382 -4.0%

Corporate income tax expense (2,811) 24.2% (2,203) 23.1%

Current tax expense for the year to 31 December (2,615) (1,691)

Deferred tax expense for the year to 31 December (note 5.k) (196) (512)

(1) Restated for the share of profits in equity-method entities and goodwill impairment. (2) Contribution to the Single Resolution Fund and non-deductible systemic bank levies.

Change in impairment of amortised cost financial assets during the previous period