2018 Registration document and annual fi nancial report - BNP PARIBAS 189

4CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

4

Notes to the fi nancial statements

3.b COMMISSION INCOME AND EXPENSE

In millions of euros

Year to 31 Dec. 2018 IFRS 9 & IFRS 15

Year to 31 Dec. 2017 IAS 39

Income Expense Net Income Expense Net

Customer transactions 3,901 (1,157) 2,744 3,589 (908) 2,681

Securities and derivatives transactions 1,729 (1,187) 542 2,078 (1,183) 895

Financing and guarantee commitments 1,102 (44) 1,058 1,079 (39) 1,040

Asset management and other services 4,723 (246) 4,477 4,479 (204) 4,275

Others 1,470 (1,084) 386 1,718 (1,179) 539

COMMISSION INCOME/EXPENSE 12,925 (3,718) 9,207 12,943 (3,513) 9,430

of which net commission income related to trust and similar activities through which the Group holds or invests assets on behalf of clients, trusts, pension and personal risk funds or other institutions 2,834 (261) 2,573 2,743 (203) 2,540

of which commission income and expense on fi nancial instruments not measured at fair value through profi t or loss 3,005 (427) 2,578 2,670 (343) 2,327

In millions of euros Year to 31 Dec. 2018

IFRS 9 & IFRS 15 Year to 31 Dec. 2017

IAS 39

Trading book (1,470) 7,045

Interest rate and credit instruments 1,975 1,112

Equity fi nancial instruments (2,926) 4,961

Foreign exchange fi nancial instruments 1,432 823

Loans and repurchase agreements (1,126) (509)

Other fi nancial instruments (825) 658

Financial instruments designated as at fair value through profi t or loss 6,756 (1,781)

of which debt remeasurement effect arising from BNP Paribas Group issuer risk(1) (61)

Other fi nancial instruments at fair value through profi t or loss 533

Debt instruments (38)

Equity instruments 571

Impact of hedge accounting (11) 82

Fair value hedging derivatives 134 62

Hedged items in fair value hedge (145) 20

NET GAIN ON FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS 5,808 5,346

(1) Debt remeasurement effect arising from BNP Paribas Group issuer risk (Own Credit Adjustment OCA) is recognised as of 1 January 2018 in equity, within Changes in assets and liabilities recognised directly in equity that will not be reclassifi ed to profi t or loss .

3.c NET GAIN ON FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

Net gain on fi nancial instruments measured at fair value through profi t or loss includes all profi t and loss items relating to fi nancial instruments managed in the trading book, non-trading equity instruments that the Group did not choose to measure at fair value through equity, fi nancial instruments that the Group has designated as at fair value through profi t or loss, as well as debt instruments whose cash fl ows are not solely

repayments of principal and interest on the principal or whose business model is not to collect cash fl ows nor to collect cash fl ows and sell the assets.

These income items include dividends on these instruments and exclude interest income and expense from fi nancial instruments designated as at fair value through profi t or loss and instruments whose cash fl ows are not only repayments of principal and interest on the principal or whose business model is not to collect cash fl ows nor to collect cash fl ows and sell the assets, which are presented in interest margin (note 3.a).