2012 Registration document and annual financial report - BNP Paribas

4CONSOLIDATEDFINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2012Notes to the financial statements➤ CARRYING VALUE BROKEN DOWN BY MATURITYIn millions of eurosRemaining time to maturity1 year 2 years 3 years 5 years 10 years 15 years >15 yearsTotal31 December2012IrelandLoans and receivables and available-for-salefinancial assets reclassified as loans andreceivables 50 53 103Held-to-maturity financial assets 9 181 135 325PortugalLoans and receivables and available-for-salefinancial assets reclassified as loans andreceivables 32 322 96 450Held-to-maturity financial assets 60 10 89 1594Disposals of held-to-maturity securities in 2011In 2011, BNP Paribas sold EUR 2. 8 billion of sovereign debt securities,issued by Italy, which had until then been classified under “Held-tomaturityassets”. The amount of securities sold equalled around 21% ofsecurities under this heading at 31 December 2010 (see note 5.j).The sale of Italian securities was prompted by the deterioration in Italy’seconomic situation, as reflected by the downgrading of Italy’s creditratings by various rating agencies in September and October 2011 andby the fall in the market value of these securities (see IAS 39 – AG22a).In addition, increased solvency requirements under the European CapitalRequirements Directive (CRD 3) at 31 December 2011 and the moveto anticipate the new Basel III solvency ratio – with initial drafts ofCRD 4 and a European Capital Requirements Regulation being publishedin July 2011 – prompted the bank to carry out a substantial reductionin assets, particularly by selling material amounts of assets classifiedunder “Loans and receivables” and “Held-to-maturity financial assets”(see IAS 39 – AG22e).Rating downgrades suffered by certain issuers threatened to increase theamount of risk-weighted assets corresponding to the loans concerned. Asa result, the bank had to reduce its exposure to positions most affectedby this change, regardless of their accounting classification.As a result, the Group applied the requirements of paragraphs AG 22a)and e) of IAS 39, to demonstrate that these disposals do not alter itsintention to hold other assets in this category to maturity, or its abilityto finance them. Other assets were therefore kept within this category.1382012 Registration document and annual financial report - BNP PARIBAS