Universal registration document and annual financial report 2019

2019 Universal registration document and annual financial report - BNP PARIBAS230

4 Consolidated finanCial statements for the year ended 31 deCemBer 2019

Notes to the financial statements

➤ OTHER ITEMS RECOGNISED DIRECTLY IN EQUITY

In millions of euros Year to

31 Dec. 2019 Year to

31 Dec. 2018

Other items recognised directly in equity (6) 147

Actuarial (losses)/gains on plan assets or reimbursement rights 607 (120)

Actuarial (losses)/gains of demographic assumptions on the present value of obligations 56 36

Actuarial (losses)/gains of financial assumptions on the present value of obligations (655) 400

Experience (losses)/gains on obligations (9) (50)

Variation of the effect of assets limitation (5) (119)

➤ 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 2019 31 December 2018

Discount rate Compensation increase rate(1) Discount rate

Compensation increase rate(1)

Belgium 0.10%/1.10% 2.70%/3.20% 0.80%/1.80% 2.90%/3.40%

UK 1.30%/2.10% 2.00%/3.10% 1.80%/3.00% 2.00%/3.55%

France 0.10%/1.10% 1.60%/2.95% 0.40%/1.80% 2.05%/3.30%

Switzerland 0.00%/0.20% 1.00%/2.50% 0.00%/0.90% 1.40%/1.50%

USA 2.35%/3.40% 4.00% 3.50%/4.45% 4.00%

Italy 0.20%/0.80% 1.60%/2.40% 0.80%/1.80% 1.80%/3.10%

Germany 0.50%/1.10% 2.00%/2.50% 1.40%/1.90% 2.00%/3.00%

Turkey 12.51% 7.59% 16.70% 12.20%

(1) Including price increases (inflation).

Observed weighted average rates are as follows:

■ in the Eurozone: 0.54% at 31 December 2019 (1.30% at 31 December 2018);

■ in the United Kingdom: 2.00% at 31 December 2019 (2.81% at 31 December 2018);

■ in Switzerland: 0.15% at 31 December 2019 (0.89% at 31 December 2018).

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 2019 31 December 2018

Discount rate -100bp

Discount rate +100bp

Discount rate -100bp

Discount rate +100bp

Belgium 324 (282) 306 (250)

UK 436 (319) 325 (243)

France 155 (128) 144 (121)

Switzerland 197 (167) 187 (145)

USA 84 (69) 69 (57)

Italy 22 (20) 26 (25)

Germany 47 (36) 37 (28)

Turkey 12 (10) 15 (12)