2018 Registration document and annual fi nancial report - BNP PARIBAS204

4 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

4

Notes to the fi nancial statements

5.c FINANCIAL ASSETS AT FAIR VALUE THROUGH EQUITY

In millions of euros

31 December 2018 IFRS 9 & IFRS 15

1 January 2018 IFRS 9 & IFRS 15

Fair value

of which changes in value taken

directly to equity Fair value

of which changes in value taken

directly to equity

Debt securities 53,838 77 53,942 584

Governments 32,818 243 28,649 549

Other public administrations 14,340 (74) 18,615 63

Credit institutions 4,149 (83) 4,099 (56)

Others 2,531 (9) 2,579 28

Equity securities 2,151 451 2,330 599

TOTAL FINANCIAL ASSETS AT FAIR VALUE THROUGH EQUITY 55,989 528 56,272 1,183

Debt securities at fair value through equity include EUR 114 million classifi ed as stage 3 at 31 December 2018 (unchanged compared to 1 January 2018). For these securities, the credit impairment recognised in the profi t and loss account has been charged to the negative changes in value recognized in equity for EUR 112 million at 31 December 2018 (EUR 108 million at 1 January 2018).

The option to recognise certain equity instruments at fair value through equity was retained in particular for shares held through strategic

partnerships and shares that the Group is required to hold in order to carry out certain activities.

During the year ended 31 December 2018, the Group sold several equity securities measured at fair value through equity. However, the gains and losses thus reclassifi ed into retained earnings were immaterial. No dividend related to these securities was recognised in the profi t and loss account during the year ended 31 December 2018.

Changes in value taken directly to equity are detailed as follows:

In millions of euros

31 December 2018 IFRS 9 & IFRS 15

1 January 2018 IFRS 9 & IFRS 15

Debt securities

Equity securities Total

Debt securities

Equity securities Total

Non-hedged changes in value of securities, recognised in Financial assets at fair value through equity 77 451 528 584 599 1,183

Deferred tax linked to these changes in value (46) (34) (80) (192) (36) (228)

Group share of changes in value of fi nancial assets at fair value through equity owned by equity-method entities, after deferred tax 39 1 40 62 62

Expected credit loss recognised in profi t or loss 140 140 130 130

Changes in value of non-current assets held for sale recognised directly in equity, after deferred tax 6 6

Other variations (10) (10) 1 1

Changes in value of assets taken directly to equity under the heading Financial assets at fair value through equity 206 418 624 585 563 1,148

Attributable to equity shareholders 201 403 604 589 561 1,150

Attributable to minority interests 5 15 20 (4) 2 (2)