2012 Registration document and annual financial report - BNP Paribas

CONSOLIDATED FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2012Notes to the financial statements42.c NET GAIN/LOSS ON FINANCIALINSTRUMENTS AT FAIR VALUE THROUGHPROFIT OR LOSSNet gain/loss on financial instruments at fair value through profit orloss includes all profit and loss items relating to financial instrumentsmanaged in the trading book and financial instruments (includingdividends) that the Group has designated as at fair value through profit orloss under the fair value option, other than interest income and expensewhich are recognised in “Net interest income” (note 2.a).In millions of eurosYear to31 Dec. 2012Year to31 Dec. 2011Trading book 5,505 952Debt instruments 2,066 (297)Equity instruments 3,132 455Other derivatives 307 806Repurchase agreements - (12)Financial instruments designated at fair value through profit or loss (2,818) 2,891Of which debt remeasurement effect arising from BNPP Group issuer risk (note 5.a) (1,617) 1,190Impact of hedge accounting 16 (117)Fair value hedges 258 (1,989)Hedged items in fair value hedge (242) 1,872Remeasurement of currency positions 609 7TOTAL 3,312 3,7334Net gains on the trading book in 2012 and 2011 include a non-material amount related to the ineffective portion of cash flow hedges.2.d NET GAIN/LOSS ON AVAILABLE-FOR-SALE FINANCIAL ASSETS AND OTHER FINANCIALASSETS NOT MEASURED AT FAIR VALUEIn millions of eurosYear to31 Dec. 2012Year to31 Dec. 2011Loans and receivables, fixed-income securities (1) 839 (408)Disposal gains and losses 839 (408)Equities and other variable-income securities 785 688Dividend income 515 453Additions to impairment provisions (465) (731)Net disposal gains 735 966TOTAL 1,624 280(1) Interest income from fixed-income financial instruments is included in “Net interest income” (note 2.a), and impairment losses related to potentialissuer default are included in “Cost of risk” (note 2.f).After the impact of insurance policy holders’ surplus reserve, u nrealisedgains and losses previously recorded under “Change in assets andliabilities recognised directly in shareholders’ equity” and included inthe pre-tax income, amount to a gain of EUR 445 million for the yearended 31 December 2012 compared with a net gain of EUR 742 millionfor the year ended 31 December 2011.The application of the automatic impairment criteria and qualitativeanalysis led to a first impairment of variable-income securities, for thefollowing amounts:■ EUR 45 million linked to a decline in price of more than 50% of theacquisition price (EUR 44 million in 2011);■ EUR 8 million linked to the observation of an unrealised loss over twoconsecutive years (EUR 23 million in 2011);■ EUR 11 million linked to the observation of an unrealised loss of atleast an average of 30% over one year (not used in 2011);■ EUR 54 million linked to an additional qualitative analysis(EUR 73 million in 2011).2012 Registration document and annual financial report - BNP PARIBAS 127