2018 Registration document and annual fi nancial report - BNP PARIBAS194

4 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

4

Notes to the fi nancial statements

➤ CREDIT RISK IMPAIRMENT

Change in impairment by accounting category and asset type during the period

In millions of euros 1 January 2018

IFRS 9 & IFRS 15 Net allowance to impairment

Impairment provisions

used

Effect of exchange rate

movements and other

31 December 2018 IFRS 9 & IFRS 15

Assets impairment

Cash and balances at central banks 13 5 - (3) 15

Financial instruments at fair value through profi t or loss 190 (41) - 42 191

Impairment of assets at fair value through equity 131 12 (1) (2) 140

Financial assets at amotised cost 27,658 2,527 (5,637) (186) 24,362

Loans and receivables 27,556 2,489 (5,626) (187) 24,232

Debt securities 102 38 (11) 1 130

Other assets 75 4 (1) 2 80

Total impairment of fi nancial assets 28,067 2,507 (5,639) (147) 24,788

of which stage 1 1,477 145 (2) (39) 1,581

of which stage 2 3,707 (291) (12) (79) 3,325

of which stage 3 22,883 2,653 (5,625) (29) 19,882

Provisions recognised as liabilities

Provisions for commitments 763 (9) (66) 87 775

Other provisions 514 (8) (50) (39) 417

Total provisions recognised for credit commitments 1,277 (17) (116) 48 1,192

of which stage 1 201 10 (1) 27 237

of which stage 2 265 (49) - 4 220

of which stage 3 811 22 (115) 17 735

TOTAL IMPAIRMENT AND PROVISIONS 29,344 2,490 (5,755) (99) 25,980

Change in impairment of amortised cost fi nancial assets during the period

In millions of euros IFRS 9 & IFRS 15

Impairment on assets subject to

12-month Expected Credit Losses

(Stage 1)

Impairment on assets subject to lifetime Expected

Credit Losses (Stage 2)

Impairment on doubtful assets

(Stage 3) Total

AT 1 JANUARY 2018 1,445 3,691 22,522 27,658

Net allowance to impairment 142 (300) 2,685 2,527

Financial assets purchased or originated during the period 578 348 926

Financial assets derecognised during the period(1) (179) (278) (334) (791)

Transfer to stage 2 (133) 1,687 (415) 1,139

Transfer to stage 3 (68) (676) 2,104 1,360

Transfer to stage 1 111 (667) (98) (654)

Other allowances/reversals without stage transfer(2) (167) (714) 1,428 547

Impairment provisions used (2) (12) (5,623) (5,637)

Effect of exchange rate movements and other items (36) (77) (73) (186)

AT 31 DECEMBER 2018 1,549 3,302 19,511 24,362

(1) including disposals. (2) including amortisation.