2018 Registration document and annual fi nancial report - BNP PARIBAS 187

4CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

4

Notes to the fi nancial statements

Reconciliation between IAS 39 and the IAS 37 impairment provisions and the IFRS 9 expected credit losses

The impact of the new impairment model defi ned by IFRS 9 is an increase in the impairment of fi nancial instruments by EUR 3.3 billion before tax (a decrease in the value of Loans and advances to customers by EUR 2.9 billion and an increase in the amount of Provisions for contingencies and charges related to fi nancing and guarantee commitments by EUR 0.4 billion). The impairment increase is mainly due to the introduction of EUR 1.7 billion in stage 1, for which the major portion of related assets were not subject to impairment under the IAS 39 model, as well as the consideration of prospective information such as asset sale scenarios, in particular for stage 3 assets.

In millions of euros

31 December 2017

IAS 39

From Loans and

receivables to Financial

instruments at fair value

through profi t or loss

From available-

for-sale debt securities to

amortised cost

From available-

for-sale debt securities

to assets at fair value

through equity

From available-

for-sale debt securities

to assets at fair value

through profi t or loss

Change in impairment calculation

method Other

impacts

1 January 2018

IFRS 9 Cash and balances at central banks 13 13 Financial instruments at fair value through profi t or loss 89 128 31 (58) 190 Available-for-sale fi nancial assets 146 (5) (110) (31) - Financial assets at fair value through equity 110 22 (1) 131 Financial assets at amortised cost

Loans and advances to credit institutions 109 49 (12) 146 Loans and advances to customers 24,686 (128) 2,857 (5) 27,410

Debt securities 5 36 61 102

Other assets 63 12 75

Commitments and other items 906 371 1,277 TOTAL EXPECTED CREDIT LOSSES 25,999 - - - - 3,360 (15) 29,344

of which collective impairment 3,421

of which stage 1 impairment 1,678

of which stage 2 impairment 3,972 of which stage 3/specifi c impairment 22,578 23,694

➤ FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH EQUITY UNDER IAS 39, RECLASSIFIED AT AMORTISED COST UNDER IFRS 9

IAS 39 accounting categories In millions of euros

IFRS 9 accounting categories

Carrying value at 31 December 2018

Fair value at 31 December 2018

Change in value which would have been recognised in equity during the year to

31 Dec. 2018

Available-for-sale fi nancial assets

Financial assets at amortised cost

Debt securities 44,332 43,866 (599)