2019 Universal registration document and annual financial report - BNP PARIBAS 219

4Consolidated finanCial statements for the year ended 31 deCemBer 2019

4

Notes to the financial statements

➤ SENSITIVITY OF THE MAIN GOODWILL VALUATIONS TO A 10-BASIS POINT CHANGE IN THE COST OF CAPITAL, A 1% CHANGE IN THE COST/INCOME RATIO IN TERMINAL VALUE, A 5% CHANGE OF THE COST OF RISK IN TERMINAL VALUE AND A 50-BASIS POINT CHANGE IN THE GROWTH RATE TO PERPETUITY

In millions of euros BancWest Personal Finance

Cost of capital 9.3% 10.0%

Adverse change (+10 basis points) (108) (207)

Positive change (-10 basis points) 112 212

Cost/income ratio 62.3% 45.3%

Adverse change (+1%) (199) (431)

Positive change (-1%) 199 431

Cost of risk (127) (1,999)

Adverse change (+5%) (48) (251)

Positive change (-5%) 48 251

Growth rate to perpetuity 3.0% 2.1%

Adverse change (-50 basis points) (200) (446)

Positive change (+50 basis points) 234 507

Concerning the homogeneous Personal Finance set mentioned above, there would be no need to depreciate even by using, for the impairment tests, the four most unfavorable variations in the table.

5.p PROVISIONS FOR CONTINGENCIES AND CHARGES

➤ PROVISIONS FOR CONTINGENCIES AND CHARGES BY TYPE

In millions of euros 31 December

2018 Net additions to provisions

Provisions used

Changes in value

recognised directly in

equity

Effect of movements

in exchange rates and

other movements(1)

31 December 2019

Provisions for employee benefits 6,039 1,350 (992) 199 40 6,636

of which post-employment benefits (note 7.b) 3,998 250 (331) 189 35 4,141

of which post-employment healthcare benefits (note 7.b) 131 6 (4) 10 3 146

of which provision for other long-term benefits (note 7.c) 1,120 344 (277) 1 1,188

of which provision for voluntary departure, early retirement plans, and headcount adaptation plan (note 7.d) 380 294 (155) (6) 513

of which provision for share-based payments (note 7.e) 410 456 (225) 7 648

Provisions for home savings accounts and plans 136 (12) 124

Provisions for credit commitments (note 3.h) 1,192 95 (32) (21) 1,234

Provisions for litigations 1,348 173 (75) (848) 598

Other provisions for contingencies and charges 905 187 (201) 3 894

TOTAL PROVISIONS FOR CONTINGENCIES AND CHARGES 9,620 1,793 (1,300) 199 (826) 9,486

(1) Changes over the period include the effect of IFRIC 23 first time adoption (see note 5.k)