a) Fees and commission for ongoing services (e.g. fees and commission for means of payment) are recognised in income according to the degree of progress of the service provided. b) Fees and commission paid or received for oneoff services are recognised in full in the Income Statement once the service has been provided. Fees and commission payable or receivable dependent on the achievement of a performance target are recognised for the amount at which it is highly probable the income thus recognised will not later be subject to a significant downward adjustment upon resolution of uncertainty. This estimate is updated at the end of each reporting period. In practice, this condition can have the effect of deferring recognition of certain items of performancerelated fee and commission income until the expiry of the performance assessment period and until such income has been definitively acquired. LEASES (IFRS 16) The Group may be the lessor or lessee of a lease. Leases for which the Group is the lessor Leases are classified either as finance leases if the lease transfers substantially all the risks and rewards incidental to ownership of the underlying asset to the lessee, or as operating leases if substantially all the risks and rewards of ownership of the leased asset are not transferred to the lessee. • Finance leases are treated as the sale of an asset to a lessee financed by a loan granted by the lessor to the lessee. The lessor therefore recognises a financial receivable from the lessee, recorded under "financial assets at amortised cost" at a value equal to the present value of the lease payments receivable at the rate implicit in the lease, plus any unsecured residual value accruing to the lessor. Rental income is broken down into interest recorded in the income statement under "Interest and similar income" and capital amortisation, so that net income represents a constant rate of return on the residual amount outstanding. For finance lease receivables, CFM Indosuez Wealth applies the general approach to impairment of financial assets at amortised cost set out in IFRS 9. • In the case of operating leases, the lessor recognises the leased assets as property, plant and equipment on its balance sheet and depreciates them on a straight-line basis over their useful life, excluding residual value. Lease payments are also recognised in the income statement on a straightline basis over the lease term. Rental income and depreciation are recorded in the income statement under "Income from other activities" and "Expenses from other activities". Leases for which the Group is the lessee Leases are recognised in the balance sheet as at the date on which the leased asset was made available. The lessee records an asset representing the right of use of the leased asset under “Property, plant & equipment” over the estimated term of the contract and a liability representing the rental payment obligation under “sundry liabilities” over that same term. A contract’s term equates to the non-cancellable period of the lease, adjusted to take account of contract extension options that the lessee is reasonably certain to exercise and the termination option that the lessee is reasonably certain not to exercise. In France, the Group principle applicable to openended or tacitly renewable contracts is to retain the first exit option after 5 years. In the context of so-called “3/6/9” commercial leases, the Group principle will apply to French commercial leases from the start date of the lease, and the initial term will therefore generally be deemed to be six years, except in specific circumstances (for example, where the tenant considers it reasonably certain that they will exercise the option to terminate the lease after three years). The main exception will be in the case of a lease in which the intermediate exit options have been abandoned (for example in return for a reduction in rent); in this case, an initial lease term of 9 years will be applied in accordance with the Group principle. The lease liability is recognised for an amount equal to the present value of the rental payments over the term of the contract. Rental payments include fixed rent, variable rent based on a rate or index, and payments that the lessee expects to pay as residual value guarantees, purchase options or early termination penalties. The liability is calculated excluding variable rent not based on an index or a rate and non-deductible VAT on rent, which are recognised under “operating expenses”. The discount rate applicable when calculating the right-of-use asset and the lease liability is, by default, the lessee’s marginal debt ratio over the term of the contract on the date it was signed, where the implicit rate cannot be easily established. The marginal debt ratio takes account of the rent payment structure. It reflects the terms of the lease (duration, guarantees, economic environment, etc.). The cost of leases is broken down into interest and amortised capital. The right-of-use of the asset is valued at the initial value of the lease liability plus the initial direct costs, advance payments and restoration costs, minus any lease incentive benefits. It is amortised over the estimated term of the lease. The lease liability and the right of use may be adjusted in the event of any amendment to the lease, re-estimation of the lease term or rent review related to the application of indices or rates. Deferred taxes are recognised as temporary differences in right-of-use and rental liabilities by the lessee. Annual Report 2025 95
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