2019 Universal registration document and annual financial report - BNP PARIBAS476

6 information on the Parent ComPany finanCial statements at 31 deCemBer 2019

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. 2019 Year to 31 Dec. 2018

Income Expenses Income Expenses

Divestments 625 (141) 244 (113)

Provisions 154 (55) 106 (68)

TOTAL 779 (196) 350 (181)

NET GAINS ON SECURITIES AVAILABLE FOR SALE 583 169

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. 2019 Year to 31 Dec. 2018

Additions to or write-backs from provisions during the period (595) (176)

Customer items and credit institutions (509) (374)

Off-balance sheet commitment (30) 252

Securities (54) (41)

Doubtful loans 1 11

Financial instruments for market activities (3) (24)

Irrecoverable loans not covered by provisions (202) (226)

Recoveries of loans written-off 38 70

COST OF RISK (759) (332)

In millions of euros Year to 31 Dec. 2019 Year to 31 Dec. 2018

Balance at 1 January 6,370 6,689

Additions to or write-backs from provisions during the period 595 176

Write-offs during the period covered by provisions (1,165) (1,183)

Effect of movements in exchange rates and other 976 688

PROVISIONS FOR CREDIT RISKS 6,776 6,370

The provisions break down as follows:

In millions of euros 31 December 2019 31 December 2018

Provisions deducted from assets 6,469 6,089

For amounts due from credit institutions (note 3.a) 191 157

For amounts due from customers (note 3.b) 5,965 5,644

For securities 277 228

For financial instruments for market activities 36 60

Provisions recognised as liabilities (note 3.k) 307 281

For off-balance sheet commitments 274 248

For doubtful loans 33 33

PROVISIONS FOR CREDIT RISKS 6,776 6,370