Form 20-F
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X
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Form 40-F
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Yes
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No
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X
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Yes
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No
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X
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Item
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1
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Banco Santander, S.A. and Companies composing Santander Group – Interim Condensed Consolidated Financial Statements for the three-month period ended 31 March 2014
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Banco Santander, S.A. and Companies composing Santander Group
Interim Condensed Consolidated
Financial Statements for the three-month period ended 31 March 2014
|
Translation of a report originally issued in Spanish and of interim condensed consolidated financial statements originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to the Group (see Notes 1 and 16).
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Banco Santander, S.A. and Companies composing Santander Group
Interim Condensed Consolidated
Financial Statements for the three-month period ended 31 March 2014
|
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|||||||||||||||||||||||||
Note
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31/03/14
|
31/12/13
(*)
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LIABILITIES AND EQUITY
|
Note
|
31/03/14
|
31/12/13
(*)
|
||||||||||||||||||||||
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|
|
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|||||||||||||||||||||||||
CASH AND BALANCES WITH CENTRAL
|
|
FINANCIAL LIABILITIES HELD FOR TRADING
|
9 | 105,946 | 94,673 | |||||||||||||||||||||||
BANKS
|
82,402 | 77,103 |
|
|||||||||||||||||||||||||
|
|
OTHER FINANCIAL LIABILITIES AT FAIR
|
||||||||||||||||||||||||||
FINANCIAL ASSETS HELD FOR TRADING
|
5 | 128,630 | 115,289 |
VALUE THROUGH PROFIT OR LOSS
|
9 | 51,501 | 42,311 | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
OTHER FINANCIAL ASSETS AT FAIR
|
FINANCIAL LIABILITIES AT AMORTISED
|
|||||||||||||||||||||||||||
VALUE THROUGH PROFIT OR LOSS
|
5 | 38,993 | 31,381 |
COST
|
9 | 889,287 | 863,114 | |||||||||||||||||||||
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||||||||||||||||||||||||||||
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CHANGES IN THE FAIR VALUE OF HEDGED
|
|||||||||||||||||||||||||||
AVAILABLE-FOR-SALE FINANCIAL ASSETS
|
5 | 90,888 | 83,799 |
ITEMS IN PORTFOLIO HEDGES OF
|
||||||||||||||||||||||||
INTEREST RATE RISK
|
77 | 87 | ||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
LOANS AND RECEIVABLES
|
5 | 731,596 | 714,484 |
HEDGING DERIVATIVES
|
5,764 | 5,283 | ||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
LIABILITIES ASSOCIATED WITH NON-
|
||||||||||||||||||||||||||||
HELD-TO-MATURITY INVESTMENTS
|
5 | - | - |
CURRENT ASSETS HELD FOR SALE
|
1 | 1 | ||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
CHANGES IN THE FAIR VALUE OF
HEDGED ITEMS IN PORTFOLIO HEDGES OF
|
LIABILITIES UNDER INSURANCE CONTRACTS
|
1,548 | 1,430 | |||||||||||||||||||||||||
INTEREST RATE RISK
|
1,396 | 1,627 |
|
|||||||||||||||||||||||||
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PROVISIONS
|
10 | 14,900 | 14,475 | ||||||||||||||||||||||||
HEDGING DERIVATIVES
|
6,807 | 8,301 |
|
|||||||||||||||||||||||||
|
TAX LIABILITIES:
|
7,596 | 6,079 | |||||||||||||||||||||||||
NON-CURRENT ASSETS HELD FOR SALE
|
6 | 5,042 | 4,892 |
Current
|
4,569 | 4,254 | ||||||||||||||||||||||
|
Deferred
|
3,027 | 1,825 | |||||||||||||||||||||||||
INVESTMENTS:
|
3,502 | 5,536 |
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|||||||||||||||||||||||||
Associates
|
1,847 | 1,829 |
OTHER LIABILITIES
|
9,576 | 8,283 | |||||||||||||||||||||||
Jointly controlled entities
|
2 | 1,655 | 3,707 |
|
||||||||||||||||||||||||
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TOTAL LIABILITIES
|
1,086,196 | 1,035,736 | |||||||||||||||||||||||||
INSURANCE CONTRACTS LINKED TO
|
|
|||||||||||||||||||||||||||
PENSIONS
|
331 | 342 |
SHAREHOLDERS' EQUITY:
|
11 | 85,632 | 84,740 | ||||||||||||||||||||||
|
Share capital
|
5,781 | 5,667 | |||||||||||||||||||||||||
REINSURANCE ASSETS
|
383 | 356 |
Share premium
|
36,668 | 36,804 | |||||||||||||||||||||||
|
Reserves
|
41,587 | 38,121 | |||||||||||||||||||||||||
TANGIBLE ASSETS:
|
7 | 15,907 | 13,654 |
Other equity instruments
|
298 | 193 | ||||||||||||||||||||||
Property, plant and equipment
|
12,313 | 9,974 |
Less: Treasury shares
|
(5 | ) | (9 | ) | |||||||||||||||||||||
Investment property
|
3,594 | 3,680 |
Profit for the period attributable to the Parent
|
1,303 | 4,370 | |||||||||||||||||||||||
|
||||||||||||||||||||||||||||
INTANGIBLE ASSETS:
|
8 | 29,184 | 26,241 |
Less: Dividends and remuneration
|
3 | - | (406 | ) | ||||||||||||||||||||
Goodwill
|
26,056 | 23,281 |
|
|||||||||||||||||||||||||
Other intangible assets
|
3,128 | 2,960 |
VALUATION ADJUSTMENTS:
|
11 | (13,253 | ) | (14,152 | ) | ||||||||||||||||||||
|
Available-for-sale financial assets
|
699 | 35 | |||||||||||||||||||||||||
TAX ASSETS:
|
26,319 | 26,819 |
Cash flow hedges
|
(186 | ) | (233 | ) | |||||||||||||||||||||
Current
|
5,044 | 5,751 |
Hedges of net investments in foreign operations
|
(2,289 | ) | (1,874 | ) | |||||||||||||||||||||
Deferred
|
21,275 | 21,068 |
Exchange differences
|
(8,366 | ) | (8,768 | ) | |||||||||||||||||||||
|
Non-current assets held for sale
|
- | - | |||||||||||||||||||||||||
OTHER ASSETS
|
7,338 | 5,814 |
Entities accounted for using the equity method
|
(277 | ) | (446 | ) | |||||||||||||||||||||
|
Other valuation adjustments
|
(2,834 | ) | (2,866 | ) | |||||||||||||||||||||||
|
NON-CONTROLLING INTERESTS
|
10,143 | 9,314 | |||||||||||||||||||||||||
|
Valuation adjustments
|
(1,362 | ) | (1,541 | ) | |||||||||||||||||||||||
|
Other
|
11,505 | 10,855 | |||||||||||||||||||||||||
|
EQUITY
|
82,522 | 79,902 | |||||||||||||||||||||||||
TOTAL ASSETS
|
1,168,718 | 1,115,638 |
TOTAL LIABILITIES AND EQUITY
|
1,168,718 | 1,115,638 | |||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
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MEMORANDUM ITEMS:
|
|||||||||||||||||||||||||||
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CONTINGENT LIABILITIES
|
40,596 | 41,049 | |||||||||||||||||||||||||
|
CONTINGENT COMMITMENTS
|
191,005 | 172,797 | |||||||||||||||||||||||||
|
|
|
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|
|||||||||||||||||||||||||
ASSETS
|
Note
|
31/03/14
|
31/12/13
(*)
|
LIABILITIES AND EQUITY
|
Note
|
31/03/14
|
31/12/13
(*)
|
|||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||
CASH AND BALANCES WITH CENTRAL
|
|
FINANCIAL LIABILITIES HELD
|
||||||||||||||||||||||||||
BANKS
|
257,720 | 251,171 |
FOR TRADING
|
9 | 331,356 | 308,407 | ||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
FINANCIAL ASSETS HELD FOR TRADING
|
5 | 402,303 | 375,565 |
OTHER FINANCIAL LIABILITIES AT FAIR
|
||||||||||||||||||||||||
|
VALUE THROUGH PROFIT OR LOSS
|
9 | 161,075 | 137,832 | ||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
OTHER FINANCIAL ASSETS AT FAIR
|
FINANCIAL LIABILITIES AT AMORTISED
|
|||||||||||||||||||||||||||
VALUE THROUGH PROFIT OR LOSS
|
5 | 121,953 | 102,227 |
COST
|
9 | 2,781,334 | 2,811,680 | |||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
CHANGES IN THE FAIR VALUE OF HEDGED
ITEMS IN PORTFOLIO HEDGES OF
|
||||||||||||||||||||||||||||
AVAILABLE-FOR-SALE FINANCIAL ASSETS
|
5 | 284,261 | 272,984 |
INTEREST RATE RISK
|
241 | 283 | ||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
LOANS AND RECEIVABLES
|
5 | 2,288,140 | 2,327,503 |
HEDGING DERIVATIVES
|
18,027 | 17,210 | ||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
LIABILITIES ASSOCIATED WITH NON-
|
||||||||||||||||||||||||||||
HELD-TO-MATURITY INVESTMENTS
|
5 | - | - |
CURRENT ASSETS HELD FOR SALE
|
3 | 3 | ||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
CHANGES IN THE FAIR VALUE OF
HEDGED ITEMS IN PORTFOLIO HEDGES OF
|
LIABILITIES UNDER INSURANCE
CONTRACTS
|
4,842 | 4,658 | |||||||||||||||||||||||||
INTEREST RATE RISK
|
4,366 | 5,300 |
|
|||||||||||||||||||||||||
|
PROVISIONS
|
10 | 46,601 | 47,154 | ||||||||||||||||||||||||
HEDGING DERIVATIVES
|
21,290 | 27,041 |
|
|||||||||||||||||||||||||
|
TAX LIABILITIES:
|
23,757 | 19,803 | |||||||||||||||||||||||||
NON-CURRENT ASSETS HELD FOR SALE
|
6 | 15,769 | 15,936 |
Current
|
14,290 | 13,858 | ||||||||||||||||||||||
|
Deferred
|
9,467 | 5,945 | |||||||||||||||||||||||||
INVESTMENTS:
|
10,953 | 18,034 |
|
|||||||||||||||||||||||||
Associates
|
5,777 | 5,958 |
OTHER LIABILITIES
|
29,951 | 26,984 | |||||||||||||||||||||||
Jointly controlled entities
|
2 | 5,176 | 12,076 |
|
||||||||||||||||||||||||
|
TOTAL LIABILITIES
|
3,397,187 | 3,374,014 | |||||||||||||||||||||||||
INSURANCE CONTRACTS LINKED TO
|
|
|||||||||||||||||||||||||||
PENSIONS
|
1,035 | 1,114 |
SHAREHOLDERS' EQUITY:
|
11 | 204,040 | 200,896 | ||||||||||||||||||||||
|
Share capital
|
13,443 | 13,069 | |||||||||||||||||||||||||
REINSURANCE ASSETS
|
1,198 | 1,160 |
Share premium
|
80,958 | 81,403 | |||||||||||||||||||||||
|
Reserves
|
104,716 | 94,759 | |||||||||||||||||||||||||
TANGIBLE ASSETS:
|
7 | 49,752 | 44,479 |
Other equity instruments
|
718 | 389 | ||||||||||||||||||||||
Property, plant and equipment
|
38,511 | 32,491 |
Less: Treasury shares
|
(15 | ) | (28 | ) | |||||||||||||||||||||
Investment property
|
11,241 | 11,988 |
Profit for the period attributable to the Parent
|
4,220 | 12,463 | |||||||||||||||||||||||
|
||||||||||||||||||||||||||||
INTANGIBLE ASSETS:
|
8 | 91,276 | 85,483 |
Less: Dividends and remuneration
|
3 | - | (1,159 | ) | ||||||||||||||||||||
Goodwill
|
81,493 | 75,840 |
|
|||||||||||||||||||||||||
Other intangible assets
|
9,783 | 9,643 |
VALUATION ADJUSTMENTS:
|
11 | 22,333 | 29,055 | ||||||||||||||||||||||
|
Available-for-sale financial assets
|
2,186 | 112 | |||||||||||||||||||||||||
TAX ASSETS:
|
82,316 | 87,366 |
Cash flow hedges
|
(582 | ) | (760 | ) | |||||||||||||||||||||
Current
|
15,776 | 18,735 |
Hedges of net investments in foreign operations
|
(7,159 | ) | (6,103 | ) | |||||||||||||||||||||
Deferred
|
66,540 | 68,631 |
Exchange differences
|
37,619 | 46,595 | |||||||||||||||||||||||
|
Non-current assets held for sale
|
- | - | |||||||||||||||||||||||||
OTHER ASSETS
|
22,950 | 18,940 |
Entities accounted for using the equity method
|
(867 | ) | (1,453 | ) | |||||||||||||||||||||
|
Other valuation adjustments
|
(8,864 | ) | (9,336 | ) | |||||||||||||||||||||||
|
NON-CONTROLLING INTERESTS
|
31,722 | 30,338 | |||||||||||||||||||||||||
|
Valuation adjustments
|
2,069 | 2,772 | |||||||||||||||||||||||||
|
Other
|
29,653 | 27,566 | |||||||||||||||||||||||||
|
EQUITY
|
258,095 | 260,289 | |||||||||||||||||||||||||
TOTAL ASSETS
|
3,655,282 | 3,634,303 |
TOTAL LIABILITIES AND EQUITY
|
3,655,282 | 3,634,303 | |||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
|
MEMORANDUM ITEMS:
|
|||||||||||||||||||||||||||
|
CONTINGENT LIABILITIES
|
126,968 | 133,721 | |||||||||||||||||||||||||
|
CONTINGENT COMMITMENTS
|
597,387 | 562,904 | |||||||||||||||||||||||||
|
|
|
|
(Debit) Credit
|
||||||||||
|
Note
|
31/03/14
|
31/03/13
(*)
|
|||||||||
|
|
|
||||||||||
INTEREST AND SIMILAR INCOME
|
12 | 13,045 | 13,226 | |||||||||
INTEREST EXPENSE AND SIMILAR CHARGES
|
(6,053 | ) | (6,574 | ) | ||||||||
NET INTEREST INCOME
|
6,992 | 6,652 | ||||||||||
INCOME FROM EQUITY INSTRUMENTS
|
12 | 31 | 59 | |||||||||
SHARE OF RESULTS OF ENTITIES ACCOUNTED FOR USING THE EQUITY METHOD
|
65 | 154 | ||||||||||
FEE AND COMMISSION INCOME
|
12 | 2,941 | 3,168 | |||||||||
FEE AND COMMISSION EXPENSE
|
(610 | ) | (652 | ) | ||||||||
GAINS/LOSSES ON FINANCIAL ASSETS AND LIABILITIES (net)
|
12 | 630 | 909 | |||||||||
EXCHANGE DIFFERENCES (net)
|
137 | 59 | ||||||||||
OTHER OPERATING INCOME
|
12 | 1,514 | 1,680 | |||||||||
OTHER OPERATING EXPENSES
|
(1,576 | ) | (1,740 | ) | ||||||||
GROSS INCOME
|
10,124 | 10,289 | ||||||||||
ADMINISTRATIVE EXPENSES
|
(4,255 | ) | (4,428 | ) | ||||||||
Staff costs
|
(2,455 | ) | (2,582 | ) | ||||||||
Other general administrative expenses
|
(1,800 | ) | (1,846 | ) | ||||||||
DEPRECIATION AND AMORTISATION CHARGE
|
(591 | ) | (569 | ) | ||||||||
PROVISIONS (net)
|
(1,360 | ) | (309 | ) | ||||||||
IMPAIRMENT LOSSES ON FINANCIAL ASSETS (net)
|
5 | (2,700 | ) | (2,918 | ) | |||||||
IMPAIRMENT LOSSES ON OTHER ASSETS (net)
|
7 & 8
|
(382 | ) | (109 | ) | |||||||
GAINS/(LOSSES) ON DISPOSAL OF ASSETS NOT CLASSIFIED AS NON-CURRENT ASSETS HELD FOR SALE
|
2 | 2,309 | 150 | |||||||||
GAINS FROM BARGAIN PURCHASES ARISING IN BUSINESS COMBINATIONS
|
- | - | ||||||||||
GAINS/(LOSSES) ON NON-CURRENT ASSETS HELD FOR SALE NOT CLASSIFIED AS DISCONTINUED OPERATIONS
|
6 | (43 | ) | (102 | ) | |||||||
PROFIT BEFORE TAX
|
3,102 | 2,004 | ||||||||||
INCOME TAX
|
(1,548 | ) | (496 | ) | ||||||||
PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS
|
1,554 | 1,508 | ||||||||||
PROFIT/LOSS FROM DISCONTINUED OPERATIONS (net)
|
- | - | ||||||||||
CONSOLIDATED PROFIT FOR THE PERIOD
|
1,554 | 1,508 | ||||||||||
Profit attributable to the Parent
|
1,303 | 1,205 | ||||||||||
Profit attributable to minority interests
|
251 | 303 | ||||||||||
EARNINGS PER SHARE:
|
||||||||||||
From continuing and discontinued operations:
|
||||||||||||
Basic earnings per share (euros)
|
3 | 0.11 | 0.12 | |||||||||
Diluted earnings per share (euros)
|
3 | 0.11 | 0.11 | |||||||||
|
||||||||||||
From continuing operations:
|
||||||||||||
Basic earnings per share (euros)
|
3 | 0.11 | 0.12 | |||||||||
Diluted earnings per share (euros)
|
3 | 0.11 | 0.11 |
|
|
(Debit) Credit
|
||||||||||
|
Note
|
31/03/14
|
31/03/13 (*)
|
|||||||||
|
|
|
||||||||||
INTEREST AND SIMILAR INCOME
|
12 | 42,258 | 34,855 | |||||||||
INTEREST EXPENSE AND SIMILAR CHARGES
|
(19,608 | ) | (17,325 | ) | ||||||||
NET INTEREST INCOME
|
22,650 | 17,530 | ||||||||||
INCOME FROM EQUITY INSTRUMENTS
|
12 | 100 | 155 | |||||||||
SHARE OF RESULTS OF ENTITIES ACCOUNTED FOR USING THE EQUITY METHOD
|
211 | 406 | ||||||||||
FEE AND COMMISSION INCOME
|
12 | 9,527 | 8,349 | |||||||||
FEE AND COMMISSION EXPENSE
|
(1,976 | ) | (1,718 | ) | ||||||||
GAINS/LOSSES ON FINANCIAL ASSETS AND LIABILITIES (net)
|
12 | 2,041 | 2,396 | |||||||||
EXCHANGE DIFFERENCES (net)
|
444 | 156 | ||||||||||
OTHER OPERATING INCOME
|
12 | 4,904 | 4,427 | |||||||||
OTHER OPERATING EXPENSES
|
(5,105 | ) | (4,586 | ) | ||||||||
GROSS INCOME
|
32,796 | 27,115 | ||||||||||
ADMINISTRATIVE EXPENSES
|
(13,784 | ) | (11,669 | ) | ||||||||
Staff costs
|
(7,953 | ) | (6,804 | ) | ||||||||
Other general administrative expenses
|
(5,831 | ) | (4,865 | ) | ||||||||
DEPRECIATION AND AMORTISATION CHARGE
|
(1,914 | ) | (1,500 | ) | ||||||||
PROVISIONS (net)
|
(4,406 | ) | (814 | ) | ||||||||
IMPAIRMENT LOSSES ON FINANCIAL ASSETS (net)
|
5 | (8,746 | ) | (7,690 | ) | |||||||
IMPAIRMENT LOSSES ON OTHER ASSETS (net)
|
7 & 8
|
(1,237 | ) | (287 | ) | |||||||
GAINS/(LOSSES) ON DISPOSAL OF ASSETS NOT CLASSIFIED AS NON-CURRENT ASSETS HELD FOR SALE
|
2 | 7,480 | 395 | |||||||||
GAINS FROM BARGAIN PURCHASES ARISING IN BUSINESS COMBINATIONS
|
- | - | ||||||||||
GAINS/(LOSSES) ON NON-CURRENT ASSETS HELD FOR SALE NOT CLASSIFIED AS DISCONTINUED OPERATIONS
|
6 | (140 | ) | (269 | ) | |||||||
PROFIT BEFORE TAX
|
10,049 | 5,281 | ||||||||||
INCOME TAX
|
(5,015 | ) | (1,307 | ) | ||||||||
PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS
|
5,034 | 3,974 | ||||||||||
PROFIT/LOSS FROM DISCONTINUED OPERATIONS (net)
|
- | - | ||||||||||
CONSOLIDATED PROFIT FOR THE PERIOD
|
5,034 | 3,974 | ||||||||||
Profit attributable to the Parent
|
4,220 | 3,175 | ||||||||||
Profit attributable to minority interests
|
814 | 799 | ||||||||||
EARNINGS PER SHARE:
|
||||||||||||
From continuing and discontinued operations:
|
||||||||||||
Basic earnings per share (reais)
|
3 | 0.37 | 0.30 | |||||||||
Diluted earnings per share (reais)
|
3 | 0.37 | 0.30 | |||||||||
|
||||||||||||
From continuing operations:
|
||||||||||||
Basic earnings per share (reais)
|
3 | 0.37 | 0.30 | |||||||||
Diluted earnings per share (reais)
|
3 | 0.37 | 0.30 |
Note
|
31/03/14
|
31/03/13 (*)
|
||||||||||
CONSOLIDATED PROFIT FOR THE PERIOD
|
1,554 | 1,508 | ||||||||||
OTHER RECOGNISED INCOME AND EXPENSE:
|
1,077 | 869 | ||||||||||
Items that will not be reclassified to profit or loss
|
28 | 41 | ||||||||||
Actuarial gains and losses on defined benefit pension plans
|
11 | 58 | 76 | |||||||||
Non-current assets held for sale
|
- | - | ||||||||||
Income tax relating to items that will not be reclassified to profit or loss
|
(30 | ) | (35 | ) | ||||||||
Items that may be reclassified subsequently to profit or loss for the period
|
1,049 | 828 | ||||||||||
Available-for-sale financial assets:
|
982 | 88 | ||||||||||
Revaluation gains/(losses)
|
1,341 | 571 | ||||||||||
Amounts transferred to income statement
|
(359 | ) | (483 | ) | ||||||||
Other reclassifications
|
- | - | ||||||||||
Cash flow hedges:
|
69 | (35 | ) | |||||||||
Revaluation gains/(losses)
|
162 | (1 | ) | |||||||||
Amounts transferred to income statement
|
(93 | ) | (34 | ) | ||||||||
Other reclassifications
|
- | - | ||||||||||
Hedges of net investments in foreign operations:
|
11 | (423 | ) | (869 | ) | |||||||
Revaluation gains/(losses)
|
(361 | ) | (870 | ) | ||||||||
Amounts transferred to income statement
|
- | 1 | ||||||||||
Other reclassifications
|
(62 | ) | - | |||||||||
Exchange differences:
|
11 | 574 | 1,558 | |||||||||
Revaluation gains/(losses)
|
654 | 1,559 | ||||||||||
Amounts transferred to income statement
|
3 | (1 | ) | |||||||||
Other reclassifications
|
(83 | ) | - | |||||||||
Non-current assets held for sale:
|
- | - | ||||||||||
Revaluation gains/(losses)
|
- | - | ||||||||||
Amounts transferred to income statement
|
- | - | ||||||||||
Other reclassifications
|
- | - | ||||||||||
Entities accounted for using the equity method:
|
169 | 84 | ||||||||||
Revaluation gains/(losses)
|
313 | 81 | ||||||||||
Amounts transferred to income statement
|
1 | 3 | ||||||||||
Other reclassifications
|
(145 | ) | - | |||||||||
Income tax
|
(322 | ) | 2 | |||||||||
TOTAL RECOGNISED INCOME AND EXPENSE
|
2,631 | 2,377 | ||||||||||
Attributable to the Parent
|
2,202 | 1,666 | ||||||||||
Attributable to non-controlling interests
|
429 | 711 |
Note
|
31/03/14
|
31/03/13 (*)
|
||||||||||
CONSOLIDATED PROFIT FOR THE PERIOD
|
5,034 | 3,974 | ||||||||||
OTHER RECOGNISED INCOME AND EXPENSE:
|
(7,454 | ) | (8,804 | ) | ||||||||
Items that will not be reclassified to profit or loss
|
91 | 108 | ||||||||||
Actuarial gains and losses on defined benefit pension plans
|
11 | 188 | 200 | |||||||||
Non-current assets held for sale
|
- | - | ||||||||||
Income tax relating to items that will not be reclassified to profit or loss
|
(97 | ) | (92 | ) | ||||||||
Items that may be reclassified subsequently to profit or loss for the period
|
(7,545 | ) | (8,912 | ) | ||||||||
Available-for-sale financial assets:
|
3,181 | 232 | ||||||||||
Revaluation gains/(losses)
|
4,344 | 1,505 | ||||||||||
Amounts transferred to income statement
|
(1,163 | ) | (1,273 | ) | ||||||||
Other reclassifications
|
- | - | ||||||||||
Cash flow hedges:
|
224 | (92 | ) | |||||||||
Revaluation gains/(losses)
|
525 | (3 | ) | |||||||||
Amounts transferred to income statement
|
(301 | ) | (89 | ) | ||||||||
Other reclassifications
|
- | - | ||||||||||
Hedges of net investments in foreign operations:
|
11 | (1,370 | ) | (2,290 | ) | |||||||
Revaluation gains/(losses)
|
(1,169 | ) | (2,293 | ) | ||||||||
Amounts transferred to income statement
|
- | 3 | ||||||||||
Other reclassifications
|
(201 | ) | - | |||||||||
Exchange differences:
|
11 | (9,084 | ) | (6,988 | ) | |||||||
Revaluation gains/(losses)
|
(8,825 | ) | (6,985 | ) | ||||||||
Amounts transferred to income statement
|
10 | (3 | ) | |||||||||
Other reclassifications
|
(269 | ) | - | |||||||||
Non-current assets held for sale:
|
- | - | ||||||||||
Revaluation gains/(losses)
|
- | - | ||||||||||
Amounts transferred to income statement
|
- | - | ||||||||||
Other reclassifications
|
- | - | ||||||||||
Entities accounted for using the equity method:
|
547 | 221 | ||||||||||
Revaluation gains/(losses)
|
1,014 | 213 | ||||||||||
Amounts transferred to income statement
|
3 | 8 | ||||||||||
Other reclassifications
|
(470 | ) | - | |||||||||
Income tax
|
(1,043 | ) | 5 | |||||||||
TOTAL RECOGNISED INCOME AND EXPENSE
|
(2,420 | ) | (4,830 | ) | ||||||||
Attributable to the Parent
|
(2,502 | ) | (5,389 | ) | ||||||||
Attributable to non-controlling interests
|
82 | 559 |
Equity attributable to the Parent
|
||||||||||||||||||||||||||||||||
Shareholders’ equity
|
||||||||||||||||||||||||||||||||
Share
capital
|
Share premium and reserves less dividends and remuneration
|
Other
equity
instruments
|
Less: Treasury shares
|
Profit for the period attributable to the Parent
|
Valuation adjustments
|
Non-controlling interests
|
Total
equity
|
|||||||||||||||||||||||||
Balance at 31/12/13
|
5,667 | 74,519 | 193 | (9 | ) | 4,370 | (14,152 | ) | 9,314 | 79,902 | ||||||||||||||||||||||
Adjustments due to changes in accounting policies
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Adjustments due to errors
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Adjusted beginning balance
|
5,667 | 74,519 | 193 | (9 | ) | 4,370 | (14,152 | ) | 9,314 | 79,902 | ||||||||||||||||||||||
Total recognised income and expense
|
- | - | - | - | 1,303 | 899 | 429 | 2,631 | ||||||||||||||||||||||||
Other changes in equity
|
114 | 3,736 | 105 | 4 | (4,370 | ) | 400 | (11 | ) | |||||||||||||||||||||||
Capital increases/(reductions)
|
114 | (114 | ) | - | - | - | - | (529 | ) | (529 | ) | |||||||||||||||||||||
Conversion of financial liabilities into equity
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Increases in other equity instruments
|
- | - | 140 | - | - | - | - | 140 | ||||||||||||||||||||||||
Reclassification from/to financial liabilities
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Distribution of dividends
|
- | (471 | ) | - | - | - | - | (17 | ) | (488 | ) | |||||||||||||||||||||
Transactions involving own equity instruments (net)
|
- | 5 | - | 4 | - | - | - | 9 | ||||||||||||||||||||||||
Transfers between equity items
|
- | 4,361 | 9 | - | (4,370 | ) | - | - | - | |||||||||||||||||||||||
Increases/(decreases) due to business combinations
|
- | - | - | - | - | - | 105 | 105 | ||||||||||||||||||||||||
Equity-instrument-based payments
|
- | - | (41 | ) | - | - | - | - | (41 | ) | ||||||||||||||||||||||
Other increases/(decreases) in equity
|
- | (45 | ) | (3 | ) | - | - | - | 841 | 793 | ||||||||||||||||||||||
Balance at 31/03/14
|
5,781 | 78,255 | 298 | (5 | ) | 1,303 | (13,253 | ) | 10,143 | 82,522 |
Equity attributable to the Parent
|
||||||||||||||||||||||||||||||||
Shareholders’ equity
|
||||||||||||||||||||||||||||||||
Share
capital
|
Share premium and reserves less dividends and remuneration
|
Other
equity
instruments
|
Less: Treasury shares
|
Profit for the period attributable to the Parent
|
Valuation adjustments
|
Non-controlling interests
|
Total
equity
|
|||||||||||||||||||||||||
Balance at 31/12/13
|
13,069 | 175,003 | 389 | (28 | ) | 12,463 | 29,055 | 30,338 | 260,289 | |||||||||||||||||||||||
Adjustments due to changes in accounting policies
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Adjustments due to errors
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Adjusted beginning balance
|
13,069 | 175,003 | 389 | (28 | ) | 12,463 | 29,055 | 30,338 | 260,289 | |||||||||||||||||||||||
Total recognised income and expense
|
- | - | - | - | 4,220 | (6,722 | ) | 82 | (2,420 | ) | ||||||||||||||||||||||
Other changes in equity
|
374 | 10,671 | 329 | 13 | (12,463 | ) | - | 1,302 | 226 | |||||||||||||||||||||||
Capital increases/(reductions)
|
374 | (374 | ) | - | - | - | - | (1,747 | ) | (1,747 | ) | |||||||||||||||||||||
Conversion of financial liabilities into equity
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Increases in other equity instruments
|
- | - | 438 | - | - | - | - | 438 | ||||||||||||||||||||||||
Reclassification from/to financial liabilities
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Distribution of dividends
|
- | (1,342 | ) | - | - | - | - | (53 | ) | (1,395 | ) | |||||||||||||||||||||
Transactions involving own equity instruments (net)
|
- | 16 | - | 13 | - | - | - | 29 | ||||||||||||||||||||||||
Transfers between equity items
|
- | 12,435 | 28 | - | (12,463 | ) | - | - | - | |||||||||||||||||||||||
Increases/(decreases) due to business combinations
|
- | - | - | - | - | - | 333 | 333 | ||||||||||||||||||||||||
Equity-instrument-based payments
|
- | - | (128 | ) | - | - | - | - | (128 | ) | ||||||||||||||||||||||
Other increases/(decreases) in equity
|
- | (64 | ) | (9 | ) | - | - | - | 2,769 | 2,696 | ||||||||||||||||||||||
Balance at 31/03/14
|
13,443 | 185,674 | 718 | (15 | ) | 4,220 | 22,333 | 31,722 | 258,095 |
Equity attributable to the Parent (*)
|
||||||||||||||||||||||||||||||||
Shareholders' equity
|
||||||||||||||||||||||||||||||||
Share
capital
|
Share premium and reserves less dividends and remuneration
|
Other
equity
instruments
|
Less: Treasury shares
|
Profit for the period attributable to the Parent
|
Valuation adjustments
|
Non-controlling interests (*)
|
Total
equity
(*)
|
|||||||||||||||||||||||||
Balance at 31/12/12
|
5,161 | 73,915 | 250 | (287 | ) | 2,205 | (6,590 | ) | 9,672 | 84,326 | ||||||||||||||||||||||
Adjustments due to changes in accounting policies
|
- | - | - | - | 90 | (2,884 | ) | (257 | ) | (3,051 | ) | |||||||||||||||||||||
Adjustments due to errors
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Adjusted beginning balance (*)
|
5,161 | 73,915 | 250 | (287 | ) | 2,295 | (9,474 | ) | 9,415 | 81,275 | ||||||||||||||||||||||
Total recognised income and expense
|
- | - | - | - | 1,205 | 461 | 711 | 2,377 | ||||||||||||||||||||||||
Other changes in equity
|
109 | 1,562 | (5 | ) | 247 | (2,295 | ) | - | 1,270 | 888 | ||||||||||||||||||||||
Capital increases/(reductions)
|
109 | (109 | ) | - | - | - | - | - | - | |||||||||||||||||||||||
Conversion of financial liabilities into equity
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Increases in other equity instruments
|
- | - | 20 | - | - | - | - | 20 | ||||||||||||||||||||||||
Reclassification from/to financial liabilities
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Distribution of dividends
|
- | (423 | ) | - | - | - | - | (29 | ) | (452 | ) | |||||||||||||||||||||
Transactions involving own equity instruments (net)
|
- | (49 | ) | - | 247 | - | - | - | 198 | |||||||||||||||||||||||
Transfers between equity items
|
- | 2,288 | 7 | - | (2,295 | ) | - | - | - | |||||||||||||||||||||||
Increases/(decreases) due to business combinations
|
- | - | - | - | - | - | 176 | 176 | ||||||||||||||||||||||||
Equity-instrument-based payments
|
- | - | (28 | ) | - | - | - | - | (28 | ) | ||||||||||||||||||||||
Other increases/(decreases) in equity
|
- | (145 | ) | (4 | ) | - | - | - | 1,123 | 974 | ||||||||||||||||||||||
Balance at 31/03/13
|
5,270 | 75,477 | 245 | (40 | ) | 1,205 | (9,013 | ) | 11,396 | 84,540 |
Equity attributable to the Parent (*)
|
||||||||||||||||||||||||||||||||
Shareholders' equity
|
||||||||||||||||||||||||||||||||
Share
capital
|
Share premium and reserves less dividends and remuneration
|
Other
equity instruments
|
Less: Treasury shares
|
Profit for the period attributable to the Parent
|
Valuation adjustments
|
Non-controlling interests (*)
|
Total
equity
(*)
|
|||||||||||||||||||||||||
Balance at 31/12/12
|
11,632 | 173,921 | 573 | (776 | ) | 5,514 | 10,958 | 26,149 | 227,971 | |||||||||||||||||||||||
Adjustments due to changes in accounting policies
|
- | - | - | - | 225 | (7,766 | ) | (694 | ) | (8,235 | ) | |||||||||||||||||||||
Adjustments due to errors
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Adjusted beginning balance (*)
|
11,632 | 173,921 | 573 | (776 | ) | 5,739 | 3,192 | 25,455 | 219,736 | |||||||||||||||||||||||
Total recognised income and expense
|
- | - | - | - | 3,175 | (8,564 | ) | 559 | (4,830 | ) | ||||||||||||||||||||||
Other changes in equity
|
292 | 3,897 | (12 | ) | 674 | (5,739 | ) | - | 3,278 | 2,390 | ||||||||||||||||||||||
Capital increases/(reductions)
|
292 | (292 | ) | - | - | - | - | - | - | |||||||||||||||||||||||
Conversion of financial liabilities into equity
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Increases in other equity instruments
|
- | - | 51 | - | - | - | - | 51 | ||||||||||||||||||||||||
Reclassification from/to financial liabilities
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Distribution of dividends
|
- | (1,057 | ) | - | - | - | - | (74 | ) | (1,131 | ) | |||||||||||||||||||||
Transactions involving own equity instruments (net)
|
- | (126 | ) | - | 674 | - | - | - | 548 | |||||||||||||||||||||||
Transfers between equity items
|
- | 5,721 | 18 | - | (5,739 | ) | - | - | - | |||||||||||||||||||||||
Increases/(decreases) due to business combinations
|
- | - | - | - | - | - | 452 | 452 | ||||||||||||||||||||||||
Equity-instrument-based payments
|
- | - | (72 | ) | - | - | - | - | (72 | ) | ||||||||||||||||||||||
Other increases/(decreases) in equity
|
- | (349 | ) | (9 | ) | - | - | - | 2,900 | 2,542 | ||||||||||||||||||||||
Balance at 31/03/13
|
11,924 | 177,818 | 561 | (102 | ) | 3,175 | (5,372 | ) | 29,292 | 217,296 |
|
|
|
|
|||||||||
|
Note
|
31/03/14
|
31/03/13 (*)
|
|||||||||
|
|
|
|
|||||||||
A. CASH FLOWS FROM OPERATING ACTIVITIES
|
|
3,046 | (38,047 | ) | ||||||||
Consolidated profit for the period
|
|
1,554 | 1,508 | |||||||||
Adjustments made to obtain the cash flows from operating activities:
|
|
4,899 | 4,634 | |||||||||
|
591 | 569 | ||||||||||
Other adjustments
|
|
4,308 | 4,065 | |||||||||
Net increase/(decrease) in operating assets and liabilities:
|
|
(4,018 | ) | (43,791 | ) | |||||||
Operating assets
|
|
(27,941 | ) | 47,415 | ||||||||
Operating liabilities
|
|
23,923 | (3,624 | ) | ||||||||
Income tax recovered/(paid)
|
|
611 | (398 | ) | ||||||||
B. CASH FLOWS FROM INVESTING ACTIVITIES
|
|
365 | (538 | ) | ||||||||
Payments:
|
|
925 | 957 | |||||||||
Tangible assets
|
7 | 479 | 250 | |||||||||
Intangible assets
|
287 | 674 | ||||||||||
Investments
|
19 | 33 | ||||||||||
Subsidiaries and other business units
|
140 | - | ||||||||||
Non-current assets held for sale and associated liabilities
|
- | - | ||||||||||
Held-to-maturity investments
|
- | - | ||||||||||
Other payments related to investing activities
|
- | - | ||||||||||
Proceeds:
|
1,291 | 419 | ||||||||||
Tangible assets
|
7 | 117 | 72 | |||||||||
Intangible assets
|
31 | 117 | ||||||||||
Investments
|
2 | 241 | 36 | |||||||||
Subsidiaries and other business units
|
2 | 664 | - | |||||||||
Non-current assets held for sale and associated liabilities
|
6 | 237 | 194 | |||||||||
Held-to-maturity investments
|
- | - | ||||||||||
Other proceeds related to investing activities
|
- | - | ||||||||||
C. CASH FLOWS FROM FINANCING ACTIVITIES
|
1,290 | (514 | ) | |||||||||
Payments:
|
1,055 | 2,739 | ||||||||||
Dividends
|
3 | 235 | 213 | |||||||||
Subordinated liabilities
|
78 | 764 | ||||||||||
Redemption of own equity instruments
|
- | - | ||||||||||
Acquisition of own equity instruments
|
11 | 742 | 1,762 | |||||||||
Other payments related to financing activities
|
- | - | ||||||||||
Proceeds:
|
2,345 | 2,225 | ||||||||||
Subordinated liabilities
|
1,594 | - | ||||||||||
Issuance of own equity instruments
|
- | - | ||||||||||
Disposal of own equity instruments
|
11 | 751 | 1,960 | |||||||||
Other proceeds related to financing activities
|
- | 265 | ||||||||||
D. EFFECT OF FOREIGN EXCHANGE RATE CHANGES
|
598 | (187 | ) | |||||||||
E. NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
|
5,299 | (39,286 | ) | |||||||||
F. CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
77,103 | 118,488 | ||||||||||
G. CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
82,402 | 79,202 | ||||||||||
|
||||||||||||
COMPONENTS OF CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
||||||||||||
Cash
|
5,506 | 6,899 | ||||||||||
Cash equivalents at central banks
|
76,896 | 72,303 | ||||||||||
Other financial assets
|
- | - | ||||||||||
Less - Bank overdrafts refundable on demand
|
- | - | ||||||||||
TOTAL CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
82,402 | 79,202 |
|
|
|
|
|||||||||
|
Note
|
31/03/14
|
31/03/13 (*)
|
|||||||||
|
|
|
|
|||||||||
A. CASH FLOWS FROM OPERATING ACTIVITIES
|
|
9,867 | (100,268 | ) | ||||||||
Consolidated profit for the period
|
|
5,034 | 3,974 | |||||||||
Adjustments made to obtain the cash flows from operating activities:
|
|
15,870 | 12,212 | |||||||||
Depreciation and amortisation charge
|
|
1,914 | 1,500 | |||||||||
Other adjustments
|
|
13,956 | 10,712 | |||||||||
Net increase/(decrease) in operating assets and liabilities:
|
|
(13,016 | ) | (115,405 | ) | |||||||
Operating assets
|
|
(90,512 | ) | (124,956 | ) | |||||||
Operating liabilities
|
|
77,496 | 9,551 | |||||||||
Income tax recovered/(paid)
|
|
1,979 | (1,049 | ) | ||||||||
B. CASH FLOWS FROM INVESTING ACTIVITIES
|
|
1,181 | (1,418 | ) | ||||||||
Payments:
|
|
2,998 | 2,522 | |||||||||
Tangible assets
|
7 | 1,552 | 659 | |||||||||
Intangible assets
|
930 | 1,776 | ||||||||||
Investments
|
62 | 87 | ||||||||||
Subsidiaries and other business units
|
454 | - | ||||||||||
Non-current assets held for sale and associated liabilities
|
- | - | ||||||||||
Held-to-maturity investments
|
- | - | ||||||||||
Other payments related to investing activities
|
- | - | ||||||||||
Proceeds:
|
4,179 | 1,104 | ||||||||||
Tangible assets
|
7 | 379 | 190 | |||||||||
Intangible assets
|
100 | 308 | ||||||||||
Investments
|
2 | 781 | 95 | |||||||||
Subsidiaries and other business units
|
2 | 2,151 | - | |||||||||
Non-current assets held for sale and associated liabilities
|
6 | 768 | 511 | |||||||||
Held-to-maturity investments
|
- | - | ||||||||||
Other proceeds related to investing activities
|
- | - | ||||||||||
C. CASH FLOWS FROM FINANCING ACTIVITIES
|
4,179 | (1,355 | ) | |||||||||
Payments:
|
3,418 | 7,218 | ||||||||||
Dividends
|
3 | 761 | 561 | |||||||||
Subordinated liabilities
|
253 | 2,013 | ||||||||||
Redemption of own equity instruments
|
- | - | ||||||||||
Acquisition of own equity instruments
|
11 | 2,404 | 4,644 | |||||||||
Other payments related to financing activities
|
- | - | ||||||||||
Proceeds:
|
7,597 | 5,863 | ||||||||||
Subordinated liabilities
|
5,164 | - | ||||||||||
Issuance of own equity instruments
|
- | - | ||||||||||
Disposal of own equity instruments
|
11 | 2,433 | 5,165 | |||||||||
Other proceeds related to financing activities
|
- | 698 | ||||||||||
D. EFFECT OF FOREIGN EXCHANGE RATE CHANGES
|
(8,678 | ) | (13,730 | ) | ||||||||
E. NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
|
6,549 | (116,771 | ) | |||||||||
F. CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
251,171 | 320,344 | ||||||||||
G. CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
257,720 | 203,573 | ||||||||||
|
||||||||||||
COMPONENTS OF CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
- | - | ||||||||||
Cash
|
17,221 | 17,732 | ||||||||||
Cash equivalents at central banks
|
240,499 | 185,841 | ||||||||||
Other financial assets
|
- | - | ||||||||||
Less - Bank overdrafts refundable on demand
|
- | - | ||||||||||
TOTAL CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
257,720 | 203,573 |
1.
|
Introduction, basis of presentation of the interim condensed consolidated financial statements and other information
|
a)
|
Introduction
|
b)
|
Basis of presentation of the quarterly financial statements
|
|
The accounting policies and methods used in preparing these quarterly financial statements are the same as those applied in the consolidated financial statements for 2013, taking into account the standards and interpretations that came into force in the first quarter of 2014. In this connection it should be noted that the following standards and interpretations came into force for the Group in the first quarter of 2014:
|
|
-
|
Amendments to IAS 32, Financial Instruments: Presentation - Offsetting Financial Assets and Financial Liabilities - these amendments introduce a series of additional clarifications on the requirements established by the standard for an entity to be able to offset a financial asset and a financial liability, indicating that they can only be offset when an entity currently has a legally enforceable right to set off the recognised amounts and this does not depend on the occurrence of future events.
|
|
-
|
Amendments to IAS 36, Impairment of Assets - Recoverable Amount Disclosures for Non-Financial Assets - these amendments eliminate the requirement to present certain disclosures on the recoverable amount of each cash-generating unit and introduce the obligation to disclose information on the recoverable amount of assets in relation to which an impairment loss was recognised or reversed in the year.
|
|
-
|
Amendments to IAS 39 Financial Instruments: Recognition and Measurement - Novation of Derivatives and Continuation of Hedge Accounting - these amendments introduce an exception to the application of the discontinuation of hedge accounting for novations in which, as a consequence of laws or regulations, the original counterparty of the hedging instrument is replaced by one or more central counterparties, such as clearing agencies, provided that other changes to the hedging instrument are limited to those that are necessary to effect such a replacement of the counterparty.
|
|
-
|
IFRIC 21, Levies - provides clarifying guidance on when to recognise a liability to pay a levy that is accounted for in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets, and on obligations to pay a levy whose timing and amount is certain. The obligation to pay is recognised when the activity that triggers the payment of the levy occurs.
|
c)
|
Use of estimates
|
|
The consolidated results and the determination of consolidated equity are sensitive to the accounting policies, measurement bases and estimates used by the directors of the Bank in preparing the quarterly financial statements. The main accounting policies and measurement bases are set forth in Note 2 to the consolidated financial statements for 2013.
|
|
In the quarterly financial statements estimates were occasionally made by the senior management of the Bank and of the consolidated entities in order to quantify certain of the assets, liabilities, income, expenses and obligations reported herein. These estimates, which were made on the basis of the best information available, relate basically to the following:
|
|
1.
|
The income tax expense, which, in accordance with IAS 34, is recognised in interim periods based on the best estimate of the weighted average tax rate expected by the Group for the full financial year;
|
|
2.
|
The impairment losses on certain assets - loans and receivables, non-current assets held for sale, investments, tangible assets and intangible assets-;
|
|
3.
|
The assumptions used in the calculation of the post-employment benefit liabilities and commitments and other obligations;
|
|
4.
|
The useful life of the tangible and intangible assets;
|
|
5.
|
The measurement of goodwill arising on consolidation;
|
|
6.
|
The fair value of certain unquoted assets and liabilities; and
|
|
7.
|
The recoverability of deferred tax assets.
|
|
In the three-month period ended 31 March 2014 there were no significant changes in the estimates made at 2013 year-end other than those indicated in these quarterly financial statements.
|
d)
|
Contingent assets and liabilities
|
|
Note 2.o to the Group's consolidated financial statements for the year ended 31 December 2013 includes information on the contingent assets and liabilities at that date. There were no significant changes in the Group's contingent assets and liabilities from 31 December 2013 to the date of formal preparation of these quarterly financial statements.
|
e)
|
Comparative information
|
|
The information for 2013 contained in these quarterly financial statements is presented for comparison purposes only with the information relating to the three-month period ended 31 March 2014.
|
f)
|
Seasonality of the Group's transactions
|
|
In view of the business activities carried on by the Group entities, their transactions are not cyclical or seasonal in nature. Therefore, no specific disclosures are included in these explanatory notes to the condensed consolidated financial statements for the three-month period ended 31 March 2014.
|
g)
|
Materiality
|
|
In determining the note disclosures to be made on the various items in the financial statements or other matters, the Group, in accordance with IAS 34, took into account their materiality in relation to the financial statements for the first quarter of 2014.
|
h)
|
Events after the reporting period
|
It should be noted that from 1 April 2014 to the date on which the financial statements for the first quarter of 2014 were authorised for issue, the following significant events occurred at Santander Group:
|
|
-
|
On 7 April, Banco Santander (Brasil) S.A. announced that it had reached an agreement to purchase through an investee all the shares of Getnet Tecnologia Em Captura e Processamento de Transações H.U.A.H. S.A. (“Getnet”) for BRL 1,104 million (approximately EUR 353 million). Following the acquisition Banco Santander (Brasil) S.A. will hold an indirect ownership interest of 88.5% in Getnet.
|
|
-
|
On 28 April, the Bank's board of directors approved a bid for the acquisition of all the shares of Banco Santander (Brasil) not owned by the Group, which represent approximately 25% of the share capital of Banco Santander (Brasil). The transaction, which is expected to be completed in October 2014, will be paid for in shares of the Bank.
|
|
-
|
On 29 April, the Bank announced that, under the Santander Dividendo Elección scrip dividend remuneration scheme in connection with the final dividend for 2013, the owners of 88.22% of the bonus share rights had opted to receive new shares. The related capital increase amounted to EUR 108.5 million (BRL 333 million) and, therefore, the Bank purchased 1,361,433,703 rights for EUR 203 million (BRL 625 million).
|
|
-
|
On 8 May, the Bank announced that its executive committee had resolved to launch an issue of preference shares contingently convertible into newly issued ordinary shares of the Bank for a nominal amount of up to USD 2,500 million. The final amount of the issue was USD 1,500 million, with demand exceeding USD 9,000 million. The shares were issued at par with fixed discretional payments amounting to 6.375% annually for the first five years payable quarterly and subject to certain conditions.
|
i)
|
Condensed consolidated statements of cash flows
|
|
The following terms are used in the condensed consolidated statements of cash flows with the meanings specified:
|
|
-
|
Cash flows: inflows and outflows of cash and cash equivalents, which are short-term, highly liquid investments that are subject to an insignificant risk of changes in value, irrespective of the portfolio in which they are classified.
|
|
-
|
Operating activities: the principal revenue-producing activities of credit institutions and other activities that are not investing or financing activities.
|
|
-
|
Investing activities: the acquisition and disposal of long-term assets and other investments not included in cash and cash equivalents.
|
|
-
|
Financing activities: activities that result in changes in the size and composition of the equity and liabilities that are not operating activities.
|
2.
|
Santander Group
|
BUSINESS COMBINATIONS OR OTHER ACQUISITIONS OR INCREASES IN OWNERSHIP INTERESTS IN SUBSIDIARIES, JOINT VENTURES AND/OR INVESTMENTS IN ASSOCIATES (CURRENT PERIOD)
|
||||||
Name of entity (or line of business) acquired or merged
|
Category
|
Effective transaction date (dd/mm/yy)
|
Cost (net) of the combination (a) + (b) (millions of euros)
|
% of voting power acquired
|
% of total voting power at entity after acquisition
|
|
Amount (net) paid in acquisition + other costs directly attributable to combination
(a)
|
Fair value of equity instruments issued for acquisition of entity (b)
|
|||||
Santander Consumer USA Inc.
|
Obtainment of control
|
23/01/14
|
-
|
-
|
-
|
60.65%
|
Financiera El Corte Inglés, E.F.C., S.A.
|
Acquisition
|
27/02/14
|
140
|
-
|
51.00%
|
51.00%
|
BUSINESS COMBINATIONS OR OTHER ACQUISITIONS OR INCREASES IN OWNERSHIP INTERESTS IN SUBSIDIARIES, JOINT VENTURES AND/OR INVESTMENTS IN ASSOCIATES (CURRENT PERIOD)
|
||||||
Name of entity (or line of business) acquired or merged
|
Category
|
Effective transaction date (dd/mm/yy)
|
Cost (net) of the combination (a) + (b) (millions of reais)
|
% of voting power acquired
|
% of total voting power at entity after acquisition
|
|
Amount (net) paid in acquisition + other costs directly attributable to combination
(a)
|
Fair value of equity instruments issued for acquisition of entity (b)
|
|||||
Santander Consumer USA Inc.
|
Obtainment of control
|
23/01/14
|
-
|
-
|
-
|
60.65%
|
Financiera El Corte Inglés, E.F.C., S.A.
|
Acquisition
|
27/02/14
|
449
|
-
|
51.00%
|
51.00%
|
DECREASES IN OWNERSHIP INTERESTS IN SUBSIDIARIES, JOINT VENTURES AND/OR INVESTMENTS IN ASSOCIATES AND OTHER SIMILAR TRANSACTIONS (CURRENT PERIOD)
|
|||||
Name of entity (or line of business) disposed of, spun off or derecognised
|
Category
|
Effective transaction date (dd/mm/yy)
|
% of voting power disposed of or derecognised
|
% of total voting power at entity after disposal
|
Net gain/(loss) (millions of euros)
|
Santander Consumer USA Inc.
|
Disposal
|
23/01/14
|
4.32%
|
60.65%
|
730
|
Altamira Asset Management, S.L.
|
Disposal
|
03/01/14
|
85.00%
|
15.00%
|
385
|
DECREASES IN OWNERSHIP INTERESTS IN SUBSIDIARIES, JOINT VENTURES AND/OR INVESTMENTS IN ASSOCIATES AND OTHER SIMILAR TRANSACTIONS (CURRENT PERIOD)
|
|||||
Name of entity (or line of business) disposed of, spun off or derecognised
|
Category
|
Effective transaction date (dd/mm/yy)
|
% of voting power disposed of or derecognised
|
% of total voting power at entity after disposal
|
Net gain/(loss) (millions of euros)
|
Santander Consumer USA Inc.
|
Disposal
|
23/01/14
|
4.32%
|
60.65%
|
2,365
|
Altamira Asset Management, S.L.
|
Disposal
|
03/01/14
|
85.00%
|
15.00%
|
1,246
|
Millions
of euros
|
||||
Cash and balances with central banks
|
1,185 | |||
Financial assets held for trading
|
22 | |||
Loans and receivables - loans and advances to customers
|
16,095 | |||
Tangible assets
|
1,514 | |||
Intangible assets (*)
|
293 | |||
Other assets
|
1,060 | |||
Total assets
|
20,169 | |||
Deposits from credit institutions
|
6,191 | |||
Marketable debt securities and other financial liabilities
|
11,156 | |||
Provisions
|
11 | |||
Other liabilities
|
642 | |||
Total liabilities
|
18,000 | |||
Net asset value
|
2,169 | |||
Non-controlling interests
|
(852 | ) | ||
Employee share option plans
|
(94 | ) | ||
Cost of investment
|
(3,747 | ) | ||
Goodwill at January 2014
|
2,524 |
Millions
of reais
|
||||
Cash and balances with central banks
|
3,839 | |||
Financial assets held for trading
|
71 | |||
Loans and receivables - loans and advances to customers
|
52,143 | |||
Tangible assets
|
4,905 | |||
Intangible assets (*)
|
949 | |||
Other assets
|
3,435 | |||
Total assets
|
65,342 | |||
Deposits from credit institutions
|
20,057 | |||
Marketable debt securities and other financial liabilities
|
36,142 | |||
Provisions
|
36 | |||
Other liabilities
|
2,080 | |||
Total liabilities
|
58,315 | |||
Net asset value
|
7,027 | |||
Non-controlling interests
|
(2,760 | ) | ||
Employee share option plans
|
(305 | ) | ||
Cost of investment
|
(12,139 | ) | ||
Goodwill at January 2014
|
8,177 |
|
(*)
|
The preliminary valuation work identified the following intangible assets:
|
|
- Relationships with concession operator networks amounting to EUR 215 million (BRL 708 million).
|
|
- Trademarks amounting to EUR 37 million (BRL 122 million).
|
Millions
of euros
|
||||
Loans and advances to credit institutions
|
29 | |||
Loans and receivables - loans and advances to customers
|
1,291 | |||
Intangible assets
|
2 | |||
Other assets
|
22 | |||
Total assets
|
1,344 | |||
Deposits from credit institutions
|
173 | |||
Customer deposits
|
81 | |||
Marketable debt securities
|
585 | |||
Provisions
|
3 | |||
Other liabilities
|
290 | |||
Total liabilities
|
1,132 | |||
Net asset value
|
212 | |||
Non-controlling interests
|
(104 | ) | ||
Cost of investment
|
(140 | ) | ||
Goodwill at 27 February 2014
|
32 |
Millions
of reais
|
||||
Loans and advances to credit institutions
|
93 | |||
Loans and receivables - loans and advances to customers
|
4,146 | |||
Intangible assets
|
6 | |||
Other assets
|
71 | |||
Total assets
|
4,316 | |||
Deposits from credit institutions
|
556 | |||
Customer deposits
|
260 | |||
Marketable debt securities
|
879 | |||
Provisions
|
10 | |||
Other liabilities
|
931 | |||
Total liabilities
|
3,636 | |||
Net asset value
|
680 | |||
Non-controlling interests
|
(334 | ) | ||
Cost of investment
|
(449 | ) | ||
Goodwill at 27 February 2014
|
103 |
3.
|
Shareholder remuneration system and earnings per share
|
a)
|
Shareholder remuneration system
|
|
The cash remuneration paid by the Bank to its shareholders in the first three months of 2014 and 2013 was as follows:
|
|
First quarter of 2014
|
First quarter of 2013
|
||||||||||||||||||||||
|
% of par value
|
Euros per share
|
Amount (millions of euros)
|
% of par value
|
Euros per share
|
Amount (millions of euros)
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Ordinary shares
|
4.14 | % | 0.020716 | 235 | 4.13 | % | 0.020670 | 213 | ||||||||||||||||
Other shares (non-voting, redeemable, etc.)
|
- | - | - | - | - | - | ||||||||||||||||||
Total remuneration paid
|
4.14 | % | 0.020716 | 235 | 4.13 | % | 0.020670 | 213 | ||||||||||||||||
Remuneration paid out of profit
|
4.14 | % | 0.020716 | 235 | 4.13 | % | 0.020670 | 213 | ||||||||||||||||
Remuneration paid with a charge to reserves or share
premium
|
- | - | - | - | - | - | ||||||||||||||||||
Remuneration paid in kind
|
- | - | - | - | - | - |
|
First quarter of 2014
|
First quarter of 2013
|
||||||||||||||||||||||
|
% of par value
|
Reais per share
|
Amount (millions of reais)
|
% of par value
|
Reais per share
|
Amount (millions of reais)
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Ordinary shares
|
4.14 | % | 0.059078 | 670 | 4.13 | % | 0.051699 | 533 | ||||||||||||||||
Other shares (non-voting, redeemable, etc.)
|
- | - | - | - | - | - | ||||||||||||||||||
Total remuneration paid
|
4.14 | % | 0.059078 | 670 | 4.13 | % | 0.051699 | 533 | ||||||||||||||||
Remuneration paid out of profit
|
4.14 | % | 0.059078 | 670 | 4.13 | % | 0.051699 | 533 | ||||||||||||||||
Remuneration paid with a charge to reserves or share
premium
|
- | - | - | - | - | - | ||||||||||||||||||
Remuneration paid in kind
|
- | - | - | - | - | - |
b)
|
Earnings per share from continuing and discontinued operations
|
|
Basic earnings per share are calculated by dividing the net profit attributable to the Parent by the weighted average number of ordinary shares outstanding during the period, excluding the average number of treasury shares held in the period.
|
|
Accordingly:
|
|
31/03/14
|
31/03/13
|
||||||
Net profit attributable to the Parent (millions of euros)
|
1,303 | 1,205 | ||||||
Of which:
|
||||||||
Profit/Loss from discontinued operations (millions of euros)
|
- | - | ||||||
Profit from continuing operations (millions of euros)
|
1,303 | 1,205 | ||||||
Weighted average number of shares outstanding
|
11,489,841,874 | 10,420,505,245 | ||||||
Basic earnings per share (euros)
|
0.11 | 0.12 | ||||||
Of which: from discontinued operations (euros)
|
- | - | ||||||
from continuing operations (euros)
|
0.11 | 0.12 |
|
31/03/14
|
31/03/13
|
||||||
Net profit attributable to the Parent (millions of reais)
|
4,220 | 3,175 | ||||||
Of which:
|
||||||||
Profit/Loss from discontinued operations (millions of reais)
|
- | - | ||||||
Profit from continuing operations (millions of reais)
|
4,220 | 3,175 | ||||||
Weighted average number of shares outstanding
|
11,489,841,874 | 10,420,505,245 | ||||||
Basic earnings per share (reais)
|
0.37 | 0.30 | ||||||
Of which: from discontinued operations (reais)
|
- | - | ||||||
from continuing operations (reais)
|
0.37 | 0.30 |
|
In calculating diluted earnings per share, the amount of profit attributable to the Parent and the weighted average number of shares outstanding, net of treasury shares, are adjusted for all the dilutive effects inherent to potential ordinary shares (share options, warrants and convertible debt instruments).
|
|
Accordingly, diluted earnings per share were determined as follows:
|
|
31/03/14
|
31/03/13
|
||||||
|
|
|
||||||
Net profit attributable to the Parent (millions of euros)
|
1,303 | 1,205 | ||||||
Dilutive effect of changes in profit for the period arising from potential conversion of ordinary shares
|
- | - | ||||||
Net profit attributable to the Parent (millions of euros)
|
1,303 | 1,205 | ||||||
Of which:
|
||||||||
Profit/Loss from discontinued operations (millions of euros)
|
- | - | ||||||
Profit from continuing operations (millions of euros)
|
1,303 | 1,205 | ||||||
|
||||||||
Weighted average number of shares outstanding
|
11,489,841,874 | 10,420,505,245 | ||||||
Dilutive effect of:
|
||||||||
Options/ receipt of shares
|
35,119,697 | 57,054,158 | ||||||
Adjusted number of shares
|
11,524,961,571 | 10,477,559,403 | ||||||
Diluted earnings per share (euros)
|
0.11 | 0.11 | ||||||
Of which: from discontinued operations (euros)
|
- | - | ||||||
from continuing operations (euros)
|
0.11 | 0.11 |
|
31/03/14
|
31/03/13
|
||||||
|
|
|
||||||
Net profit attributable to the Parent (millions of reais)
|
4,220 | 3,175 | ||||||
Dilutive effect of changes in profit for the period arising from potential conversion of ordinary shares
|
- | - | ||||||
Profit attributable to the Parent (millions of reais)
|
4,220 | 3,175 | ||||||
Of which:
|
||||||||
Profit/Loss from discontinued operations (millions of reais)
|
- | - | ||||||
Profit from continuing operations (millions of reais)
|
4,220 | 3,175 | ||||||
|
||||||||
Weighted average number of shares outstanding
|
11,489,841,874 | 10,420,505,245 | ||||||
Dilutive effect of:
|
||||||||
Options/ receipt of shares
|
35,119,697 | 57,054,158 | ||||||
Adjusted number of shares
|
11,524,961,571 | 10,477,559,403 | ||||||
Diluted earnings per share (reais)
|
0.37 | 0.30 | ||||||
Of which: from discontinued operations (reais)
|
- | - | ||||||
from continuing operations (reais)
|
0.37 | 0.30 |
4.
|
Remuneration and other benefits paid to the Bank’s directors and senior managers
|
Thousands of euros
|
||||||||
31/03/14
|
31/03/13
|
|||||||
Members of the board of directors:
|
||||||||
Type of remuneration-
|
||||||||
Fixed salary remuneration of executive directors
|
1,854 | 2,160 | ||||||
Variable remuneration in cash of executive directors
|
- | - | ||||||
Attendance fees of directors
|
311 | 407 | ||||||
By-law stipulated annual directors’ emoluments
|
- | - | ||||||
Other (except insurance premiums)
|
194 | 612 | ||||||
Sub-total
|
2,359 | 3,178 | ||||||
Transactions with shares and/or other financial instruments
|
- | - | ||||||
2,359 | 3,178 |
Thousands of reais
|
||||||||
31/03/14
|
31/03/13
|
|||||||
Members of the board of directors:
|
||||||||
Type of remuneration-
|
||||||||
Fixed salary remuneration of executive directors
|
6,006 | 5,692 | ||||||
Variable remuneration in cash of executive directors
|
- | - | ||||||
Attendance fees of directors
|
1,007 | 1,073 | ||||||
By-law stipulated annual directors’ emoluments
|
- | - | ||||||
Other (except insurance premiums)
|
628 | 1,613 | ||||||
Sub-total
|
7,641 | 8,378 | ||||||
Transactions with shares and/or other financial instruments
|
- | - | ||||||
7,641 | 8,378 |
|
(1)
|
The notes to the annual consolidated financial statements for 2014 will contain detailed and complete information on the remuneration paid to all the directors, including executive directors.
|
Thousands of euros
|
||||||||
31/03/14
|
31/03/13
|
|||||||
Members of the board of directors:
|
||||||||
Other benefits-
|
||||||||
Advances
|
- | - | ||||||
Loans granted
|
7,096 | 5,666 | ||||||
Pension funds and plans: Provisions and/or contributions (1)
|
1,057 | 373 | ||||||
Pension funds and plans: Accumulated rights (2)
|
147,403 | 225,851 | ||||||
Life insurance premiums
|
229 | 516 | ||||||
Guarantees provided for directors
|
- | - | ||||||
Thousands of reais
|
||||||||
31/03/14
|
31/03/13
|
|||||||
Members of the board of directors:
|
||||||||
Other benefits-
|
||||||||
Advances
|
- | - | ||||||
Loans granted
|
22,987 | 14,932 | ||||||
Pension funds and plans: Provisions and/or contributions (1)
|
3,424 | 983 | ||||||
Pension funds and plans: Accumulated rights (2)
|
477,495 | 595,198 | ||||||
Life insurance premiums
|
742 | 1,360 | ||||||
Guarantees provided for directors
|
- | - | ||||||
|
(1)
|
Corresponds to provisions and/or contributions made in the first quarter of 2014 for retirement pensions and supplementary benefits (surviving spouse and child benefits, and permanent disability). The amount for the first quarter of 2013 relates only to retirement pensions.
|
|
(2)
|
Corresponds to the pension rights accumulated by the directors. In addition, at 31 March 2014 and 2013, former Board members held accumulated pension rights amounting to EUR 76,694 thousand (BRL 239,868 thousand) and EUR 80,584 thousand (BRL 207,125 thousand), respectively.
|
Thousands of euros
|
||||||||
31/03/14
|
31/03/13
|
|||||||
Senior management:
|
||||||||
Total remuneration of senior management
|
8,365 | 8,973 | ||||||
Thousands of reais
|
||||||||
31/03/14
|
31/03/13
|
|||||||
Senior management:
|
||||||||
Total remuneration of senior management
|
27,097 | 23,647 | ||||||
|
(1)
|
The above amounts reflect the quarterly remuneration irrespective of the months in which the senior managers have held positions as members of the Bank's general management, and they exclude the remuneration of executive directors.
|
|
(2)
|
The number of senior managers of the Bank, excluding executive directors, decreased from 25 in the first quarter of 2013 to 24 in the first quarter of 2014.
|
5.
|
Financial assets
|
a)
|
Breakdown
|
|
The detail, by nature and category for measurement purposes, of the Group's financial assets, other than the balances relating to Cash and balances with central banks and Hedging derivatives, at 31 March 2014 and 31 December 2013 is as follows:
|
Millions of euros
|
||||||||||||||||||||
31/03/14
|
||||||||||||||||||||
Financial assets held for trading
|
Other financial assets at fair value through profit or loss
|
Available-for-sale financial assets
|
Loans and receivables
|
Held-to-maturity investments
|
||||||||||||||||
|
||||||||||||||||||||
Loans and advances to credit institutions
|
5,511 | 22,870 | - | 46,357 | - | |||||||||||||||
Loans and advances to customers
|
5,902 | 11,054 | - | 677,639 | - | |||||||||||||||
Debt instruments
|
48,765 | 4,165 | 86,849 | 7,600 | - | |||||||||||||||
Equity instruments
|
8,200 | 904 | 4,039 | - | - | |||||||||||||||
Trading derivatives
|
60,252 | - | - | - | - | |||||||||||||||
128,630 | 38,993 | 90,888 | 731,596 | - |
Millions of reais
|
||||||||||||||||||||
31/03/14
|
||||||||||||||||||||
Financial assets held for trading
|
Other financial assets at fair value through profit or loss
|
Available-for-sale financial assets
|
Loans and receivables
|
Held-to-maturity investments
|
||||||||||||||||
|
||||||||||||||||||||
Loans and advances to credit institutions
|
17,236 | 71,528 | - | 144,986 | - | |||||||||||||||
Loans and advances to customers
|
18,459 | 34,572 | - | 2,119,384 | - | |||||||||||||||
Debt instruments
|
152,517 | 13,026 | 271,629 | 23,770 | - | |||||||||||||||
Equity instruments
|
25,646 | 2,827 | 12,632 | - | - | |||||||||||||||
Trading derivatives
|
188,445 | - | - | - | - | |||||||||||||||
402,303 | 121,953 | 284,261 | 2,288,140 | - |
Millions of euros
|
||||||||||||||||||||
31/12/13
|
||||||||||||||||||||
Financial assets held for trading
|
Other financial assets at fair value through profit or loss
|
Available-for-sale financial assets
|
Loans and receivables
|
Held-to-maturity investments
|
||||||||||||||||
|
||||||||||||||||||||
Loans and advances to credit institutions
|
5,503 | 13,444 | - | 56,017 | - | |||||||||||||||
Loans and advances to customers
|
5,079 | 13,196 | - | 650,581 | - | |||||||||||||||
Debt instruments
|
40,841 | 3,875 | 79,844 | 7,886 | - | |||||||||||||||
Equity instruments
|
4,967 | 866 | 3,955 | - | - | |||||||||||||||
Trading derivatives
|
58,899 | - | - | - | - | |||||||||||||||
115,289 | 31,381 | 83,799 | 714,484 | - |
Millions of reais
|
||||||||||||||||||||
31/12/13
|
||||||||||||||||||||
Financial assets held for trading
|
Other financial assets at fair value through profit or loss
|
Available-for-sale financial assets
|
Loans and receivables
|
Held-to-maturity investments
|
||||||||||||||||
|
||||||||||||||||||||
Loans and advances to credit institutions
|
17,927 | 43,795 | - | 182,481 | - | |||||||||||||||
Loans and advances to customers
|
16,545 | 42,988 | - | 2,119,333 | - | |||||||||||||||
Debt instruments
|
133,044 | 12,623 | 260,100 | 25,689 | - | |||||||||||||||
Equity instruments
|
16,180 | 2,821 | 12,884 | - | - | |||||||||||||||
Trading derivatives
|
191,869 | - | - | - | - | |||||||||||||||
375,565 | 102,227 | 272,984 | 2,327,503 | - |
b)
|
Sovereign risk with peripheral European countries
|
Sovereign risk by country of issuer/borrower at 31 March 2014 (*)
|
||||||||||||||||||||||||||||||||
|
Millions of euros
|
|||||||||||||||||||||||||||||||
Debt instruments
|
Loans and advances to customers (**)
|
Total net direct exposure
|
Derivatives (***)
|
|||||||||||||||||||||||||||||
Financial assets held for trading and Other financial assets at fair value through profit or loss
|
Short positions
|
Available-for-sale financial assets
|
Loans and receivables
|
Other than CDSs
|
CDSs
|
|||||||||||||||||||||||||||
Spain
|
5,482 | (1,387 | ) | 19,044 | 1,549 | 15,409 | 40,097 | 264 | - | |||||||||||||||||||||||
Portugal
|
231 | (18 | ) | 3,551 | - | 603 | 4,367 | - | - | |||||||||||||||||||||||
Italy
|
3,058 | (838 | ) | 76 | - | - | 2,296 | (3 | ) | 3 | ||||||||||||||||||||||
Greece
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Ireland
|
- | - | - | - | - | - | 210 | - |
Sovereign risk by country of issuer/borrower at 31 March 2014 (*)
|
||||||||||||||||||||||||||||||||
|
Millions of reais
|
|||||||||||||||||||||||||||||||
Debt instruments
|
Loans and advances to customers (**)
|
Total net direct exposure
|
Derivatives (***)
|
|||||||||||||||||||||||||||||
Financial assets held for trading and Other financial assets at fair value through profit or loss
|
Short positions
|
Available-for-sale financial assets
|
Loans and receivables
|
Other than CDSs
|
CDSs
|
|||||||||||||||||||||||||||
Spain
|
17,146 | (4,338 | ) | 59,562 | 4,845 | 48,193 | 125,408 | 826 | - | |||||||||||||||||||||||
Portugal
|
722 | (56 | ) | 11,106 | - | 1,886 | 13,658 | - | - | |||||||||||||||||||||||
Italy
|
9,564 | (2,621 | ) | 238 | - | - | 7,181 | (9 | ) | 9 | ||||||||||||||||||||||
Greece
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Ireland
|
- | - | - | - | - | - | 657 | - |
(*)
|
Information prepared under EBA standards. In addition, there are government debt securities on the insurance companies' balance sheets amounting to EUR 6,770 million (of which EUR 5,820 million, EUR 727 million and EUR 223 million relate to Spain, Portugal and Italy, respectively) (BRL 21,174 million (of which BRL 18,203 million, BRL 2,274 million and BRL 697 million relate to Spain, Portugal and Italy, respectively)) and off-balance-sheet exposure other than derivatives –contingent liabilities and commitments– amounting to EUR 3,879 million (of which EUR 2,589 million, EUR 214 million, EUR 1,074 million and EUR 2 million to Spain, Portugal, Italy and Ireland, respectively) (BRL 12,132 million (of which BRL 8,098 million, BRL 669 million, BRL 3,359 million and BRL 6 million to Spain, Portugal, Italy and Ireland, respectively)).
|
(**)
|
Presented without taking into account the valuation adjustments recognised (EUR 22 million (BRL 69 million)).
|
(***)
|
“Other than CDSs” refers to the exposure to derivatives based on the location of the counterparty, irrespective of the location of the underlying. “CDSs” refers to the exposure to CDSs based on the location of the underlying.
|
Sovereign risk by country of issuer/borrower at 31 December 2013 (*)
|
||||||||||||||||||||||||||||||||
|
Millions of euros
|
|||||||||||||||||||||||||||||||
Debt instruments
|
Loans and advances to customers (**)
|
Total net direct exposure
|
Derivatives (***)
|
|||||||||||||||||||||||||||||
Financial assets held for trading and Other financial assets at fair value through profit or loss
|
Short positions
|
Available-for-sale financial assets
|
Loans and receivables
|
Other than CDSs
|
CDSs
|
|||||||||||||||||||||||||||
Spain
|
4,783 | (2,079 | ) | 21,144 | 1,145 | 13,374 | 38,367 | (153 | ) | - | ||||||||||||||||||||||
Portugal
|
148 | - | 2,076 | - | 583 | 2,807 | - | - | ||||||||||||||||||||||||
Italy
|
2,571 | (1,262 | ) | 77 | - | - | 1,386 | - | 2 | |||||||||||||||||||||||
Greece
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Ireland
|
- | - | - | - | - | - | 199 | - |
Sovereign risk by country of issuer/borrower at 31 December 2013 (*)
|
||||||||||||||||||||||||||||||||
|
Millions of reais
|
|||||||||||||||||||||||||||||||
Debt instruments
|
Loans and advances to customers (**)
|
Total net direct exposure
|
Derivatives (***)
|
|||||||||||||||||||||||||||||
Financial assets held for trading and Other financial assets at fair value through profit or loss
|
Short positions
|
Available-for-sale financial assets
|
Loans and receivables
|
Other than CDSs
|
CDSs
|
|||||||||||||||||||||||||||
Spain
|
15,581 | (6,773 | ) | 68,879 | 3,730 | 43,567 | 124,984 | (498 | ) | - | ||||||||||||||||||||||
Portugal
|
482 | - | 6,763 | - | 1,899 | 9,144 | - | - | ||||||||||||||||||||||||
Italy
|
8,376 | (4,111 | ) | 250 | - | - | 4,515 | - | 7 | |||||||||||||||||||||||
Greece
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Ireland
|
- | - | - | - | - | - | 648 | - |
(*)
|
Information prepared under EBA standards. In addition, there are government debt securities on the insurance companies' balance sheets amounting to EUR 5,649 million (of which EUR 4,783 million, EUR 654 million and EUR 208 million relate to Spain, Portugal and Italy, respectively) (BRL 18,389 million (of which BRL 15,581 million, BRL 2,130 million and BRL 678 million relate to Spain, Portugal and Italy, respectively)) and off-balance-sheet exposure other than derivatives -contingent liabilities and commitments- amounting to EUR 1,884 million (of which EUR 1,627 million, EUR 118 million, EUR 137 million and EUR 2 million relate to Spain, Portugal, Italy and Ireland, respectively) (BRL 6,137 million (of which BRL 5,300 million, BRL 384 million, BRL 446 million and BRL 7 million relate to Spain, Portugal, Italy and Ireland, respectively)).
|
(**)
|
Presented without taking into account the valuation adjustments recognised (EUR 20 million (BRL 65 million)).
|
(***)
|
“Other than CDSs” refers to the exposure to derivatives based on the location of the counterparty, irrespective of the location of the underlying. “CDSs” refers to the exposure to CDSs based on the location of the underlying.
|
Exposure to other counterparties by country of issuer/borrower at 31 March 2014 (*)
|
|||||||||
Millions of euros
|
|||||||||
Balances with central banks
|
Reverse repurchase agreements
|
Debt instruments
|
Loans and advances to customers (**)
|
Total net direct exposure
|
Derivatives (***)
|
||||
Financial assets held for trading and Other financial assets at fair value through profit or loss
|
Available-for-sale financial assets
|
Loans and receivables
|
|||||||
Other than CDSs
|
CDSs
|
||||||||
Spain
|
669
|
13,665
|
3,035
|
6,638
|
1,223
|
162,693
|
187,923
|
1,735
|
(42)
|
Portugal
|
453
|
-
|
277
|
1,415
|
1,951
|
21,802
|
25,898
|
1,547
|
(2)
|
Italy
|
4
|
-
|
437
|
397
|
2
|
6,632
|
7,472
|
(75)
|
4
|
Greece
|
-
|
-
|
-
|
-
|
-
|
79
|
79
|
-
|
-
|
Ireland
|
-
|
-
|
242
|
110
|
191
|
444
|
987
|
65
|
-
|
Exposure to other counterparties by country of issuer/borrower at 31 March 2014 (*)
|
|||||||||
Millions of reais
|
|||||||||
Balances with central banks
|
Reverse repurchase agreements
|
Debt instruments
|
Loans and advances to customers (**)
|
Total net direct exposure
|
Derivatives (***)
|
||||
Financial assets held for trading and Other financial assets at fair value through profit or loss
|
Available-for-sale financial assets
|
Loans and receivables
|
|||||||
Other than CDSs
|
CDSs
|
||||||||
Spain
|
2,092
|
42,739
|
9,492
|
20,761
|
3,825
|
508,839
|
587,748
|
5,426
|
(131)
|
Portugal
|
1,417
|
-
|
866
|
4,426
|
6,102
|
68,188
|
80,999
|
4,838
|
(6)
|
Italy
|
13
|
-
|
1,367
|
1,242
|
6
|
20,742
|
23,370
|
(236)
|
14
|
Greece
|
-
|
-
|
-
|
-
|
-
|
247
|
247
|
-
|
-
|
Ireland
|
-
|
-
|
757
|
344
|
597
|
1,389
|
3,087
|
203
|
-
|
(*)
|
Also, the Group has off-balance-sheet exposure other than derivatives –contingent liabilities and commitments– amounting to EUR 50,534 million, EUR 6,281 million, EUR 2,645 million, EUR 18 million and EUR 223 million to counterparties in Spain, Portugal, Italy, Greece and Ireland, respectively (BRL 158,050 million, BRL 19,644 million, BRL 8,273 million, BRL 56 million and BRL 697 million to counterparties in Spain, Portugal, Italy, Greece and Ireland, respectively).
|
(**)
|
Presented excluding valuation adjustments and impairment losses recognised (EUR 12,557 million (BRL 39,273 million)).
|
(***)
|
“Other than CDSs” refers to the exposure to derivatives based on the location of the counterparty, irrespective of the location of the underlying. “CDSs” refers to the exposure to CDSs based on the location of the underlying.
|
Exposure to other counterparties by country of issuer/borrower at 31 December 2013 (*)
|
|||||||||
Millions of euros
|
|||||||||
Balances with central banks
|
Reverse repurchase agreements
|
Debt instruments
|
Loans and advances to customers (**)
|
Total net direct exposure
|
Derivatives (***)
|
||||
Financial assets held for trading and Other financial assets at fair value through profit or loss
|
Available-for-sale financial assets
|
Loans and receivables
|
|||||||
Other than CDSs
|
CDSs
|
||||||||
Spain
|
816
|
7,451
|
3,148
|
7,826
|
1,804
|
160,478
|
181,523
|
1,981
|
(44)
|
Portugal
|
1,716
|
-
|
209
|
1,168
|
1,845
|
25,578
|
30,516
|
1,454
|
(1)
|
Italy
|
11
|
-
|
368
|
273
|
93
|
6,490
|
7,235
|
(115)
|
(2)
|
Greece
|
-
|
-
|
-
|
-
|
-
|
80
|
80
|
-
|
-
|
Ireland
|
-
|
-
|
229
|
360
|
259
|
507
|
1,355
|
1,031
|
-
|
Exposure to other counterparties by country of issuer/borrower at 31 December 2013 (*)
|
|||||||||
Millions of reais
|
|||||||||
Balances with central banks
|
Reverse repurchase agreements
|
Debt instruments
|
Loans and advances to customers (**)
|
Total net direct exposure
|
Derivatives (***)
|
||||
Financial assets held for trading and Other financial assets at fair value through profit or loss
|
Available-for-sale financial assets
|
Loans and receivables
|
|||||||
Other than CDSs
|
CDSs
|
||||||||
Spain
|
2,658
|
24,272
|
10,255
|
25,494
|
5,877
|
522,773
|
591,329
|
6,453
|
(143)
|
Portugal
|
5,590
|
-
|
681
|
3,805
|
6,010
|
83,323
|
99,409
|
4,737
|
(3)
|
Italy
|
36
|
-
|
1,199
|
889
|
303
|
21,142
|
23,569
|
(375)
|
(7)
|
Greece
|
-
|
-
|
-
|
-
|
-
|
261
|
261
|
-
|
-
|
Ireland
|
-
|
-
|
745
|
1,173
|
844
|
1,652
|
4,414
|
3,359
|
-
|
(*)
|
Also, the Group has off-balance-sheet exposure other than derivatives –contingent liabilities and commitments– amounting to EUR 48,659 million, EUR 5,982 million, EUR 2,717 million, EUR 4 million and EUR 93 million to counterparties in Spain, Portugal, Italy, Greece and Ireland, respectively (BRL 158,512 million, BRL 19,487 million, BRL 8,851 million, BRL 13 million and BRL 303 million to counterparties in Spain, Portugal, Italy, Greece and Ireland, respectively).
|
(**)
|
Presented excluding valuation adjustments and impairment losses recognised (EUR 13,209 million (BRL 43,030 million)).
|
(***)
|
“Other than CDSs” refers to the exposure to derivatives based on the location of the counterparty, irrespective of the location of the underlying. “CDSs” refers to the exposure to CDSs based on the location of the underlying.
|
31/03/14
|
|||||||
Millions of euros
|
|||||||
Notional amount
|
Fair value
|
||||||
Bought
|
Sold
|
Net
|
Bought
|
Sold
|
Net
|
||
Spain
|
Sovereign
|
-
|
-
|
-
|
-
|
-
|
-
|
Other
|
1,557
|
2,031
|
(474)
|
(15)
|
(27)
|
(42)
|
|
Portugal
|
Sovereign
|
192
|
174
|
18
|
-
|
-
|
-
|
Other
|
218
|
228
|
(10)
|
(2)
|
-
|
(2)
|
|
Italy
|
Sovereign
|
603
|
570
|
33
|
(2)
|
5
|
3
|
Other
|
843
|
878
|
(35)
|
1
|
3
|
4
|
|
Greece
|
Sovereign
|
-
|
-
|
-
|
-
|
-
|
-
|
Other
|
3
|
3
|
-
|
-
|
-
|
-
|
|
Ireland
|
Sovereign
|
4
|
4
|
-
|
-
|
-
|
-
|
Other
|
6
|
6
|
-
|
-
|
-
|
-
|
31/03/14
|
|||||||
Millions of reais
|
|||||||
Notional amount
|
Fair value
|
||||||
Bought
|
Sold
|
Net
|
Bought
|
Sold
|
Net
|
||
Spain
|
Sovereign
|
-
|
-
|
-
|
-
|
-
|
-
|
Other
|
4,870
|
6,352
|
(1,482)
|
(47)
|
(84)
|
(131)
|
|
Portugal
|
Sovereign
|
600
|
544
|
56
|
-
|
-
|
-
|
Other
|
682
|
713
|
(31)
|
(6)
|
-
|
(6)
|
|
Italy
|
Sovereign
|
1,886
|
1,783
|
103
|
(6)
|
15
|
9
|
Other
|
2,637
|
2,746
|
(109)
|
4
|
10
|
14
|
|
Greece
|
Sovereign
|
-
|
-
|
-
|
-
|
-
|
-
|
Other
|
9
|
9
|
-
|
-
|
-
|
-
|
|
Ireland
|
Sovereign
|
13
|
13
|
-
|
-
|
-
|
-
|
Other
|
19
|
19
|
-
|
-
|
-
|
-
|
31/12/13
|
|||||||
Millions of euros
|
|||||||
Notional amount
|
Fair Value
|
||||||
Bought
|
Sold
|
Net
|
Bought
|
Sold
|
Net
|
||
Spain
|
Sovereign
|
-
|
-
|
-
|
-
|
-
|
-
|
Other
|
1,735
|
2,277
|
(542)
|
(18)
|
(26)
|
(44)
|
|
Portugal
|
Sovereign
|
192
|
174
|
18
|
5
|
(5)
|
-
|
Other
|
223
|
278
|
(55)
|
1
|
(2)
|
(1)
|
|
Italy
|
Sovereign
|
603
|
570
|
33
|
(1)
|
3
|
2
|
Other
|
834
|
913
|
(79)
|
(2)
|
-
|
(2)
|
|
Greece
|
Sovereign
|
-
|
-
|
-
|
-
|
-
|
-
|
Other
|
5
|
5
|
-
|
-
|
-
|
-
|
|
Ireland
|
Sovereign
|
4
|
4
|
-
|
-
|
-
|
-
|
Other
|
6
|
6
|
-
|
-
|
-
|
-
|
31/12/13
|
|||||||
Millions of reais
|
|||||||
Notional amount
|
Fair Value
|
||||||
Bought
|
Sold
|
Net
|
Bought
|
Sold
|
Net
|
||
Spain
|
Sovereign
|
-
|
-
|
-
|
-
|
-
|
-
|
Other
|
5,652
|
7,418
|
(1,766)
|
(59)
|
(84)
|
(143)
|
|
Portugal
|
Sovereign
|
626
|
567
|
59
|
16
|
(16)
|
-
|
Other
|
727
|
906
|
(179)
|
3
|
(6)
|
(3)
|
|
Italy
|
Sovereign
|
1,965
|
1,857
|
108
|
(3)
|
10
|
7
|
Other
|
2,717
|
2,974
|
(257)
|
(7)
|
-
|
(7)
|
|
Greece
|
Sovereign
|
-
|
-
|
-
|
-
|
-
|
-
|
Other
|
16
|
16
|
-
|
-
|
-
|
-
|
|
Ireland
|
Sovereign
|
13
|
13
|
-
|
-
|
-
|
-
|
Other
|
20
|
20
|
-
|
-
|
-
|
-
|
c)
|
Valuation adjustments for impairment of financial assets
|
|
At 31 March 2014, the Group analysed the changes in the fair value of the various assets composing this portfolio and charged net impairment losses of EUR 34 million (BRL 110 million) to the income statement (first quarter of 2013: a net credit of EUR 4 million (BRL 11 million)). Accordingly, most of the changes in value of these assets are presented in equity under Valuation adjustments - Available-for-sale financial assets (see Note 11). The changes in valuation adjustments in the three-month period are recognised in the consolidated statement of recognised income and expense.
|
|
The changes in the balance of the allowances for impairment losses on the assets included under Loans and receivables in the three-month periods ended 31 March 2014 and 2013 were as follows:
|
Millions of reais
|
||||||||
|
31/03/14
|
31/03/13
|
||||||
Balance at beginning of period
|
24,959 | 25,467 | ||||||
|
||||||||
Impairment losses charged to income for the period
|
2,923 | 3,236 | ||||||
Of which:
|
||||||||
Impairment losses charged to income
|
4,445 | 4,448 | ||||||
Impairment losses reversed with a credit to income
|
(1,522 | ) | (1,212 | ) | ||||
Write-off of impaired balances against recorded impairment allowance
|
(2,569 | ) | (2,829 | ) | ||||
Exchange differences and other changes
|
1,998 | 403 | ||||||
|
||||||||
Balance at end of period
|
27,311 | 26,277 | ||||||
|
||||||||
Of which:
|
||||||||
By method of assessment:
|
||||||||
Individually
|
22,209 | 22,294 | ||||||
Of which, arising from country risk
|
41 | 44 | ||||||
Collectively
|
5,102 | 3,983 |
|
Millions of reais
|
|||||||
|
31/03/14
|
31/03/13
|
||||||
Balance at beginning of period
|
81,306 | 68,853 | ||||||
|
||||||||
Impairment losses charged to income for the period
|
9,469 | 8,528 | ||||||
Of which:
|
||||||||
Impairment losses charged to income
|
14,399 | 11,722 | ||||||
Impairment losses reversed with a credit to income
|
(4,930 | ) | (3,194 | ) | ||||
Write-off of impaired balances against recorded impairment allowance
|
(8,322 | ) | (7,455 | ) | ||||
Exchange differences and other changes
|
2,965 | (2,386 | ) | |||||
|
||||||||
Balance at end of period
|
85,418 | 67,540 | ||||||
|
||||||||
Of which:
|
||||||||
By method of assessment:
|
||||||||
Individually
|
69,461 | 57,302 | ||||||
Of which, arising from country risk
|
128 | 113 | ||||||
Collectively
|
15,957 | 10,238 |
|
Previously written-off assets recovered in the first three months of 2014 amounted to EUR 257 million (BRL 833 million) (first three months of 2013: EUR 314 million (BRL 827 million)). Considering these amounts and those recognised under Impairment losses charged to income in the foregoing table, the impairment losses on loans and receivables amounted to EUR 2,666 million in the first quarter of 2014 (BRL 8,636 million) (first quarter of 2013: EUR 2,922 million (BRL 7,701 million)). If the impairment losses on available-for-sale
|
d)
|
Impaired assets
|
|
The detail of the changes in the three-month periods ended 31 March 2014 and 2013 in the balance of financial assets classified as loans and receivables and considered to be impaired due to credit risk is as follows:
|
|
Millions of euros
|
|||||||
|
31/03/14
|
31/03/13
|
||||||
Balance at beginning of period
|
40,374 | 35,361 | ||||||
Net additions
|
2,217 | 3,699 | ||||||
Written-off assets
|
(2,569 | ) | (2,829 | ) | ||||
Changes in scope of consolidation
|
326 | 299 | ||||||
Exchange differences and other
|
680 | 648 | ||||||
Balance at end of period
|
41,028 | 37,178 |
|
Millions of reais
|
|||||||
|
31/03/14
|
31/03/13
|
||||||
Balance at beginning of period
|
131,522 | 95,602 | ||||||
Net additions
|
7,182 | 9,748 | ||||||
Written-off assets
|
(8,322 | ) | (7,455 | ) | ||||
Changes in scope of consolidation
|
1,056 | 788 | ||||||
Exchange differences and other
|
(3,119 | ) | (3,124 | ) | ||||
Balance at end of period
|
128,319 | 95,559 |
|
This amount, after deducting the related allowances, represents the Group's best estimate of the discounted value of the flows that are expected to be recovered from the impaired assets.
|
e)
|
Fair value of financial assets not measured at fair value
|
|
Millions of euros
|
Millions of euros
|
||||||||||||||
|
31/03/14
|
31/12/13
|
||||||||||||||
|
Carrying amount
|
Fair
value
|
Carrying amount
|
Fair
value
|
||||||||||||
Loans and receivables:
|
|
|
||||||||||||||
Loans and advances to credit institutions
|
46,357 | 46,315 | 56,017 | 56,213 | ||||||||||||
Loans and advances to customers
|
677,639 | 677,337 | 650,581 | 651,338 | ||||||||||||
Debt instruments
|
7,600 | 7,587 | 7,886 | 7,858 | ||||||||||||
ASSETS
|
731,596 | 731,239 | 714,484 | 715,409 |
|
Millions of reais
|
Millions of reais
|
||||||||||||||
|
31/03/14
|
31/12/13
|
||||||||||||||
|
Carrying amount
|
Fair
value
|
Carrying amount
|
Fair
value
|
||||||||||||
Loans and receivables:
|
|
|
||||||||||||||
Loans and advances to credit institutions
|
144,986 | 144,855 | 182,481 | 183,119 | ||||||||||||
Loans and advances to customers
|
2,119,384 | 2,118,439 | 2,119,333 | 2,121,799 | ||||||||||||
Debt instruments
|
23,770 | 23,729 | 25,689 | 25,598 | ||||||||||||
ASSETS
|
2,288,140 | 2,287,023 | 2,327,503 | 2,330,516 |
6.
|
Non-current assets held for sale
|
Millions of euros
|
||||||||
31/03/14
|
31/12/13
|
|||||||
Tangible assets
|
4,999 | 4,845 | ||||||
Of which:
|
||||||||
Foreclosed assets
|
4,811 | 4,742 | ||||||
Of which: Property assets in Spain
|
4,282 | 4,146 | ||||||
Other tangible assets held for sale
|
188 | 103 | ||||||
Other assets
|
43 | 47 | ||||||
5,042 | 4,892 |
Millions of reais
|
||||||||
31/03/14
|
31/12/13
|
|||||||
Tangible assets
|
15,635 | 15,783 | ||||||
Of which:
|
||||||||
Foreclosed assets
|
15,047 | 15,448 | ||||||
Of which: Property assets in Spain
|
13,392 | 13,506 | ||||||
Other tangible assets held for sale
|
588 | 335 | ||||||
Other assets
|
134 | 153 | ||||||
15,769 | 15,936 |
7.
|
Tangible assets
|
a)
|
Changes in the period
|
|
In the first three months of 2014, tangible assets were acquired for EUR 479 million (BRL 1,552 million) (first three months of 2013: EUR 250 million (BRL 659 million)).
|
b)
|
Impairment losses
|
|
In the first three months of 2014, there were impairment losses on tangible assets (mainly investment property) amounting to EUR 44 million (BRL 143 million) (first three months of 2013: EUR 79 million (BRL 208 million)), which were recognised under Impairment losses on other assets.
|
c)
|
Property, plant and equipment purchase commitments
|
|
At 31 March 2014 and 2013, the Group did not have any significant commitments to purchase property, plant and equipment items.
|
8.
|
Intangible assets
|
a)
|
Goodwill
|
|
The detail of Goodwill at 31 March 2014 and 31 December 2013, based on the cash-generating units giving rise thereto, is as follows:
|
Millions of euros
|
||||||||
|
31/03/14
|
31/12/13
|
||||||
|
|
|
||||||
Santander UK
|
8,972 | 8,913 | ||||||
Banco Santander (Brazil)
|
6,082 | 5,840 | ||||||
Bank Zachodni WBK
|
2,476 | 2,487 | ||||||
Santander Consumer USA Inc.
|
2,474 | - | ||||||
Santander Holdings USA
|
1,489 | 1,489 | ||||||
Santander Consumer Holding (Germany)
|
1,315 | 1,315 | ||||||
Banco Santander Totta
|
1,040 | 1,040 | ||||||
Banco Santander Chile
|
653 | 687 | ||||||
Grupo Financiero Santander (Mexico)
|
542 | 541 | ||||||
Other companies
|
1,013 | 969 | ||||||
|
26,056 | 23,281 |
Millions of reais
|
||||||||
|
31/03/14
|
31/12/13
|
||||||
|
|
|
||||||
Santander UK
|
28,061 | 29,035 | ||||||
Banco Santander (Brazil)
|
19,024 | 19,024 | ||||||
Bank Zachodni WBK
|
7,744 | 8,102 | ||||||
Santander Consumer USA Inc.
|
7,738 | - | ||||||
Santander Holdings USA
|
4,657 | 4,851 | ||||||
Santander Consumer Holding (Germany)
|
4,113 | 4,284 | ||||||
Banco Santander Totta
|
3,253 | 3,388 | ||||||
Banco Santander Chile
|
2,042 | 2,238 | ||||||
Grupo Financiero Santander (Mexico)
|
1,695 | 1,762 | ||||||
Other companies
|
3,166 | 3,156 | ||||||
|
81,493 | 75,840 |
|
The changes from 31 December 2013 to 31 March 2014 relate mainly to the recognition of the goodwill associated with the obtainment of control over Santander Consumer USA (see Note 2). In addition, in the first quarter of 2014, goodwill increased by EUR 209 million (BRL 677 million) due to exchange differences which, pursuant to current regulations, were recognised with a credit to Valuation adjustments - Exchange differences in equity in the consolidated statement of recognised income and expense.
|
|
Note 17 to the consolidated financial statements for the year ended 31 December 2013 includes detailed information on the procedures followed by the Group to analyse the potential impairment losses on the goodwill recognised with respect to its recoverable amount and to recognise the related impairment, as appropriate.
|
|
Accordingly, based on the analysis performed of the available information on the performance of the various cash-generating units which might evidence the existence of indications of impairment, the Group's directors concluded that in the first quarter of 2014 there were no impairment losses which required recognition.
|
b)
|
Other intangible assets
|
|
In the first three months of 2014, there were impairment losses amounting to EUR 300 million (BRL 972 million) which were recognised under Impairment losses on other assets.
|
9.
|
Financial liabilities
|
a)
|
Breakdown
|
|
The detail, by nature and category for measurement purposes, of the Group's financial liabilities, other than hedging derivatives, at 31 March 2014 and 31 December 2013 is as follows:
|
|
Millions of euros
|
|||||||||||||||||||||||
|
31/03/14
|
31/12/13
|
||||||||||||||||||||||
|
Financial liabilities held for trading
|
Other financial liabilities at fair value through profit or loss
|
Financial liabilities at amortised cost
|
Financial liabilities held for trading
|
Other financial liabilities at fair value through profit or loss
|
Financial liabilities at amortised cost
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Deposits from central banks
|
5,410 | 3,006 | 11,062 | 3,866 | 2,097 | 9,788 | ||||||||||||||||||
Deposits from credit institutions
|
9,522 | 9,724 | 87,051 | 7,468 | 9,644 | 76,534 | ||||||||||||||||||
Customer deposits
|
13,197 | 33,683 | 573,255 | 8,500 | 26,484 | 572,853 | ||||||||||||||||||
Marketable debt securities
|
1 | 5,088 | 179,446 | 1 | 4,086 | 171,390 | ||||||||||||||||||
Trading derivatives
|
59,664 | - | - | 58,887 | - | - | ||||||||||||||||||
Subordinated liabilities
|
- | - | 17,738 | - | - | 16,139 | ||||||||||||||||||
Short positions
|
18,152 | - | - | 15,951 | - | - | ||||||||||||||||||
Other financial liabilities
|
- | - | 20,735 | - | - | 16,410 | ||||||||||||||||||
|
105,946 | 51,501 | 889,287 | 94,673 | 42,311 | 863,114 |
|
Millions of reais
|
|||||||||||||||||||||||
|
31/03/14
|
31/12/13
|
||||||||||||||||||||||
|
Financial liabilities held for trading
|
Other financial liabilities at fair value through profit or loss
|
Financial liabilities at amortised cost
|
Financial liabilities held for trading
|
Other financial liabilities at fair value through profit or loss
|
Financial liabilities at amortised cost
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Deposits from central banks
|
16,920 | 9,402 | 34,598 | 12,594 | 6,831 | 31,885 | ||||||||||||||||||
Deposits from credit institutions
|
29,781 | 30,413 | 272,261 | 24,328 | 31,416 | 249,317 | ||||||||||||||||||
Customer deposits
|
41,275 | 105,347 | 1,792,912 | 27,690 | 86,274 | 1,866,126 | ||||||||||||||||||
Marketable debt securities
|
3 | 15,913 | 561,235 | 3 | 13,311 | 558,320 | ||||||||||||||||||
Trading derivatives
|
186,605 | - | - | 191,830 | - | - | ||||||||||||||||||
Subordinated liabilities
|
- | - | 55,477 | - | - | 52,575 | ||||||||||||||||||
Short positions
|
56,772 | - | - | 51,962 | - | - | ||||||||||||||||||
Other financial liabilities
|
- | - | 64,851 | - | - | 53,457 | ||||||||||||||||||
|
331,356 | 161,075 | 2,781,334 | 308,407 | 137,832 | 2,811,680 |
b)
|
Information on issuances, repurchases or redemptions of debt instruments
|
|
Following is a detail, at 31 March 2014, of the outstanding balance of the debt instruments which at this date had been issued by the Bank or any other Group entity. Also included is the detail of the changes in this balance in the first three months of 2014:
|
Millions of euros
|
||||||||||||||||||||
31/03/14
|
||||||||||||||||||||
Outstanding beginning balance at 01/01/14
|
Issues
|
Repurchases or redemptions
|
Exchange rate and other adjustments
|
Outstanding ending
balance at 31/03/14
|
||||||||||||||||
Debt instruments issued in an EU member state for which it was necessary to file a prospectus
|
143,865 | 8,116 | (12,861 | ) | (7,350 | ) | 131,770 | |||||||||||||
Debt instruments issued in an EU member state for which it was not necessary to file a prospectus
|
3,226 | 4,619 | (5,265 | ) | 6,548 | 9,128 | ||||||||||||||
Other debt instruments issued outside EU member states
|
44,525 | 10,770 | (9,735 | ) | 15,815 | 61,375 | ||||||||||||||
191,616 | 23,505 | (27,861 | ) | 15,013 | 202,273 |
Millions of reais
|
||||||||||||||||||||
31/03/14
|
||||||||||||||||||||
Outstanding beginning balance at 01/01/14
|
Issues
|
Repurchases or redemptions
|
Exchange rate and other adjustments
|
Outstanding ending
balance at 31/03/14
|
||||||||||||||||
Debt instruments issued in an EU member state for which it was necessary to file a prospectus
|
468,655 | 26,291 | (41,662 | ) | (41,160 | ) | 412,124 | |||||||||||||
Debt instruments issued in an EU member state for which it was not necessary to file a prospectus
|
10,509 | 14,963 | (17,055 | ) | 20,132 | 28,549 | ||||||||||||||
Other debt instruments issued outside EU member states
|
145,045 | 34,888 | (31,535 | ) | 43,558 | 191,956 | ||||||||||||||
624,209 | 76,142 | (90,252 | ) | 22,530 | 632,629 |
c)
|
Other issues guaranteed by the Group
|
d)
|
Case-by-case information on certain issues, repurchases or redemptions of debt instruments
|
|
The main characteristics of the most significant issuances (excluding promissory notes, securitisations and issues maturing within less than one year), repurchases or redemptions performed by the Group in the first three months of 2014, or guaranteed by the Bank or Group entities, are as follows:
|
Issuer data
|
|
|
Data on the transactions performed in the first quarter of 2014
|
||||||||||
Name
|
Relationship with the Bank
|
Country of registered office
|
Issuer or issue credit rating
|
Transaction
|
ISIN code
|
Type of security
|
Transaction date
|
Amount of
the issue, repurchase or redemption (millions
of euros)
|
Balance outstanding (millions
of euros)
(a)
|
Interest rate
|
Market where listed
|
Type of guarantee provided
|
Risks additional to the guarantee that the Group would assume
|
ABBEY NATIONAL TREASURY SERVICES PLC
|
Subsidiary
|
United Kingdom
|
Aaa / AAA / AAA
|
Issuance
|
XS1017654150
|
Mortgage-backed bond
|
20/01/14
|
906
|
906
|
3M GB LIBOR + 0.51%
|
London
|
-
|
N/A
|
ABBEY NATIONAL TREASURY SERVICES PLC
|
Subsidiary
|
United Kingdom
|
A2 /A / A
|
Issuance
|
XS1014539289
|
Senior debt
|
14/01/14
|
1,000
|
1,000
|
2.00%
|
London
|
-
|
N/A
|
ABBEY NATIONAL TREASURY SERVICES PLC
|
Subsidiary
|
United Kingdom
|
A2 /A / A
|
Issuance
|
XS1023278887
|
Senior debt
|
27/01/14
|
500
|
500
|
3M EU + 0.35%
|
London
|
-
|
N/A
|
ABBEY NATIONAL TREASURY SERVICES PLC
|
Subsidiary
|
United Kingdom
|
A2 /A / A
|
Issuance
|
US002799AN46
|
Senior debt
|
13/03/14
|
725
|
725
|
4.00%
|
Berlin
|
-
|
N/A
|
ABBEY NATIONAL TREASURY SERVICES PLC
|
Subsidiary
|
United Kingdom
|
A2 /A / A
|
Issuance
|
US002799AM62
|
Senior debt
|
13/03/14
|
798
|
798
|
1.38%
|
Trace
|
-
|
N/A
|
ABBEY NATIONAL TREASURY SERVICES PLC
|
Subsidiary
|
United Kingdom
|
A2 /A / A
|
Issuance
|
US002799AP93
|
Senior debt
|
13/03/14
|
290
|
290
|
3M US LIBOR + 0.51%
|
Trace
|
-
|
N/A
|
BANCO SANTANDER CHILE
|
Subsidiary
|
Chile
|
Aa3 / A+
/ A
|
Issuance
|
FIXRATE CHF 300 bond
|
Senior debt
|
20/01/14
|
246
|
246
|
1.00%
|
N/A
|
-
|
N/A
|
BANCO SANTANDER BRAZIL
|
Subsidiary
|
Brazil
|
N/A
|
Issuance
|
FINANCIAL BILL (LF)
|
Financial bill (LF)
|
07/03/14
|
320
|
320
|
6.75%
|
Brazil
|
-
|
N/A
|
BANCO SANTANDER, S.A.
|
Parent
|
Spain
|
Ba2e
|
Issuance
|
XS1043535092
|
Preferred securities
|
12/03/14
|
1,500
|
1,500
|
6.25%
|
Dublin
|
-
|
N/A
|
SANTANDER CONSUMER FINANCE
|
Subsidiary
|
Spain
|
Baa1 / BBB+ / BBB-
|
Issuance
|
XS1016635580
|
Senior debt
|
29/01/14
|
1,000
|
945
|
1.45%
|
Dublin
|
-
|
N/A
|
SANTANDER INTERNATIONAL DEBT, S.A.U.
|
Subsidiary
|
Spain
|
Baa1 / BBB / BBB
|
Issuance
|
XS1022793951
|
Senior debt
|
03/02/14
|
500
|
500
|
3M EU + 0.65%
|
Frankfurt
|
Banco Santander, S.A. guarantee
|
N/A
|
SANTANDER INTERNATIONAL DEBT, S.A.U.
|
Subsidiary
|
Spain
|
Baa1 / BBB+ / BBB
|
Issuance
|
XS1041097301
|
Senior debt
|
10/03/14
|
300
|
300
|
3M EU + 0.61%
|
Dublin
|
Banco Santander, S.A. guarantee
|
N/A
|
SANTANDER INTERNATIONAL DEBT, S.A.U.
|
Subsidiary
|
Spain
|
Baa1 / BBB+ / BBB
|
Issuance
|
XS1046276504
|
Senior debt
|
25/03/14
|
1,500
|
1,500
|
1.38%
|
Dublin
|
Banco Santander, S.A. guarantee
|
N/A
|
SANTANDER INTERNATIONAL DEBT, S.A.U.
|
Subsidiary
|
Spain
|
Aa3 / A+ / A
|
Repayment
|
XS0752985878
|
Senior debt
|
10/03/14
|
219
|
-
|
6M US + 2.76%
|
Luxembourg
|
Banco Santander, S.A. guarantee
|
N/A
|
BANCO SANTANDER BRAZIL
|
Subsidiary
|
Brazil
|
Baa1 / BBB+ / BBB
|
Repayment
|
FINANCIAL BILL (LF)
|
Financial bill (LF)
|
06/03/14
|
323
|
-
|
5.13%
|
N/A
|
-
|
N/A
|
BANCO SANTANDER BRAZIL
|
Subsidiary
|
Brazil
|
BBB
|
Repayment
|
US05966UAJ34
|
Senior debt
|
18/03/14
|
870
|
-
|
3M US LIB + 2.1
|
Luxembourg
|
-
|
N/A
|
BANCO SANTANDER (MEXICO), S.A. INSTITUCIÓN DE BANCA MÚLTIPLE, GRUPO FINANCIERO SANTANDER
|
Subsidiary
|
Mexico
|
Aaa / AAA
|
Repayment
|
MX94BS030038
|
Senior debt
|
27/01/14
|
278
|
-
|
TIIE 28 + 0.20%
|
Mexico
|
-
|
N/A
|
ABBEY NATIONAL TREASURY SERVICES PLC
|
Subsidiary
|
United Kingdom
|
A2 / A
|
Repayment
|
XS0597611705
|
Senior debt
|
03/03/14
|
1,000
|
-
|
4.13%
|
London
|
-
|
N/A
|
BANCO SANTANDER, S.A.
|
Parent
|
Spain
|
Aa1/AA+
|
Repayment
|
ES0413900111
|
Mortgage-backed bond
|
06/02/14
|
2,959
|
-
|
3.50%
|
AIAF
|
-
|
N/A
|
BANCO ESPAÑOL DE CREDITO, S.A. (currently BANCO SANTANDER, S.A.)
|
Parent
|
Spain
|
Aa1/AAA
|
Repayment
|
ES0413440100
|
Mortgage-backed bond
|
21/02/14
|
1,353
|
-
|
4.25%
|
AIAF
|
-
|
N/A
|
|
(a)
|
The amounts relating to securities denominated in foreign currencies were translated to euros at the exchange rate prevailing at the end of the first quarter of 2014.
|
Issuer data
|
|
|
Data on the transactions performed in the first quarter of 2014
|
||||||||||
Name
|
Relationship with the Bank
|
Country of registered office
|
Issuer or issue credit rating
|
Transaction
|
ISIN code
|
Type of security
|
Transaction date
|
Amount of
the issue, repurchase or redemption (millions
of reais)
|
Balance outstanding (millions
of reais)
(a)
|
Interest rate
|
Market where listed
|
Type of guarantee provided
|
Risks additional to the guarantee that the Group would assume
|
ABBEY NATIONAL TREASURY SERVICES PLC
|
Subsidiary
|
United Kingdom
|
Aaa / AAA / AAA
|
Issuance
|
XS1017654150
|
Mortgage- backed bond
|
20/01/14
|
2,866
|
2,834
|
3M GB LIBOR + 0.51%
|
London
|
-
|
N/A
|
ABBEY NATIONAL TREASURY SERVICES PLC
|
Subsidiary
|
United Kingdom
|
A2 /A / A
|
Issuance
|
XS1014539289
|
Senior debt
|
14/01/14
|
3,228
|
3,128
|
2.00%
|
London
|
-
|
N/A
|
ABBEY NATIONAL TREASURY SERVICES PLC
|
Subsidiary
|
United Kingdom
|
A2 /A / A
|
Issuance
|
XS1023278887
|
Senior debt
|
27/01/14
|
1,637
|
1,564
|
3M EU + 0.35%
|
London
|
-
|
N/A
|
ABBEY NATIONAL TREASURY SERVICES PLC
|
Subsidiary
|
United Kingdom
|
A2 /A / A
|
Issuance
|
US002799AN46
|
Senior debt
|
13/03/14
|
2,369
|
2,268
|
4.00%
|
Berlin
|
-
|
N/A
|
ABBEY NATIONAL TREASURY SERVICES PLC
|
Subsidiary
|
United Kingdom
|
A2 /A / A
|
Issuance
|
US002799AM62
|
Senior debt
|
13/03/14
|
2,608
|
2,496
|
1.38%
|
Trace
|
-
|
N/A
|
ABBEY NATIONAL TREASURY SERVICES PLC
|
Subsidiary
|
United Kingdom
|
A2 /A / A
|
Issuance
|
US002799AP93
|
Senior debt
|
13/03/14
|
948
|
907
|
3M US LIBOR + 0.51%
|
Trace
|
-
|
N/A
|
BANCO SANTANDER CHILE
|
Subsidiary
|
Chile
|
Aa3 / A+
/ A
|
Issuance
|
FIXRATE CHF 300 bond
|
Senior debt
|
20/01/14
|
778
|
769
|
1.00%
|
N/A
|
-
|
N/A
|
BANCO SANTANDER BRAZIL
|
Subsidiary
|
Brazil
|
N/A
|
Issuance
|
FINANCIAL BILL (LF)
|
Financial bill (LF)
|
07/03/14
|
1,036
|
1,001
|
6.75%
|
Brazil
|
-
|
N/A
|
BANCO SANTANDER, S.A.
|
Parent
|
Spain
|
Ba2e
|
Issuance
|
XS1043535092
|
Preferred securities
|
12/03/14
|
4,918
|
4,691
|
6.25%
|
Dublin
|
-
|
N/A
|
SANTANDER CONSUMER FINANCE
|
Subsidiary
|
Spain
|
Baa1 / BBB+ / BBB-
|
Issuance
|
XS1016635580
|
Senior debt
|
29/01/14
|
3,317
|
2,956
|
1.45%
|
Dublin
|
-
|
N/A
|
SANTANDER INTERNATIONAL DEBT, S.A.U.
|
Subsidiary
|
Spain
|
Baa1 / BBB / BBB
|
Issuance
|
XS1022793951
|
Senior debt
|
03/02/14
|
1,624
|
1,564
|
3M EU + 0.65%
|
Frankfurt
|
Banco Santander, S.A. guarantee
|
N/A
|
SANTANDER INTERNATIONAL DEBT, S.A.U.
|
Subsidiary
|
Spain
|
Baa1 / BBB+ / BBB
|
Issuance
|
XS1041097301
|
Senior debt
|
10/03/14
|
971
|
938
|
3M EU + 0.61%
|
Dublin
|
Banco Santander, S.A. guarantee
|
N/A
|
SANTANDER INTERNATIONAL DEBT, S.A.U.
|
Subsidiary
|
Spain
|
Baa1 / BBB+ / BBB
|
Issuance
|
XS1046276504
|
Senior debt
|
25/03/14
|
4,799
|
4,691
|
1.38%
|
Dublin
|
Banco Santander, S.A. guarantee
|
N/A
|
SANTANDER INTERNATIONAL DEBT, S.A.U.
|
Subsidiary
|
Spain
|
Aa3 / A+ / A
|
Repayment
|
XS0752985878
|
Senior debt
|
10/03/14
|
709
|
-
|
6M US + 2.76%
|
Luxembourg
|
Banco Santander, S.A. guarantee
|
N/A
|
BANCO SANTANDER BRAZIL
|
Subsidiary
|
Brazil
|
Baa1 / BBB+ / BBB
|
Repayment
|
FINANCIAL BILL (LF)
|
Financial bill (LF)
|
06/03/14
|
1,029
|
-
|
5.13%
|
N/A
|
-
|
N/A
|
BANCO SANTANDER BRAZIL
|
Subsidiary
|
Brazil
|
BBB
|
Repayment
|
US05966UAJ34
|
Senior debt
|
18/03/14
|
2,847
|
-
|
3M US LIB + 2.1
|
Luxembourg
|
-
|
N/A
|
BANCO SANTANDER (MEXICO), S.A. INSTITUCIÓN DE BANCA MÚLTIPLE, GRUPO FINANCIERO SANTANDER
|
Subsidiary
|
Mexico
|
Aaa / AAA
|
Repayment
|
MX94BS030038
|
Senior debt
|
27/01/14
|
910
|
-
|
TIIE 28 + 0.20%
|
Mexico
|
-
|
N/A
|
ABBEY NATIONAL TREASURY SERVICES PLC
|
Subsidiary
|
United Kingdom
|
A2 /A
|
Repayment
|
XS0597611705
|
Senior debt
|
03/03/14
|
3,213
|
-
|
4.13%
|
London
|
-
|
N/A
|
BANCO SANTANDER, S.A.
|
Parent
|
Spain
|
Aa1 / AA+
|
Repayment
|
ES0413900111
|
Mortgage-backed bond
|
06/02/14
|
9,596
|
-
|
3.50%
|
AIAF
|
-
|
N/A
|
BANCO ESPAÑOL DE CREDITO, S.A. (currently BANCO SANTANDER, S.A.)
|
Parent
|
Spain
|
Aa1 / AAA
|
Repayment
|
ES0413440100
|
Mortgage-backed bond
|
21/02/14
|
4,408
|
-
|
4.25%
|
AIAF
|
-
|
N/A
|
|
(a)
|
The amounts relating to securities denominated in foreign currencies were translated to reais at the exchange rate prevailing at the end of the first quarter of 2014.
|
e)
|
Fair value of financial liabilities not measured at fair value
|
|
Millions of euros
|
|||||||||||||||
|
31/03/14
|
31/12/13
|
||||||||||||||
|
Carrying amount
|
Fair
value
|
Carrying amount
|
Fair
value
|
||||||||||||
Financial liabilities at amortised cost:
|
|
|
||||||||||||||
Deposits from central banks
|
11,062 | 11,062 | 9,788 | 9,788 | ||||||||||||
Deposits from credit institutions
|
87,051 | 91,319 | 76,534 | 76,636 | ||||||||||||
Customer deposits
|
573,255 | 570,097 | 572,853 | 570,312 | ||||||||||||
Marketable debt securities
|
179,446 | 182,504 | 171,390 | 170,787 | ||||||||||||
Subordinated liabilities
|
17,738 | 18,230 | 16,139 | 16,342 | ||||||||||||
Other financial liabilities
|
20,735 | 20,724 | 16,410 | 16,407 | ||||||||||||
LIABILITIES
|
889,287 | 893,935 | 863,114 | 860,272 |
|
Millions of reais
|
|||||||||||||||
|
31/03/14
|
31/12/13
|
||||||||||||||
|
Carrying amount
|
Fair
value
|
Carrying amount
|
Fair
value
|
||||||||||||
Financial liabilities at amortised cost:
|
|
|
||||||||||||||
Deposits from central banks
|
34,598 | 34,598 | 31,885 | 31,885 | ||||||||||||
Deposits from credit institutions
|
272,261 | 285,609 | 249,317 | 249,649 | ||||||||||||
Customer deposits
|
1,792,912 | 1,783,035 | 1,866,126 | 1,857,848 | ||||||||||||
Marketable debt securities
|
561,235 | 570,800 | 558,320 | 556,356 | ||||||||||||
Subordinated liabilities
|
55,477 | 57,016 | 52,575 | 53,236 | ||||||||||||
Other financial liabilities
|
64,851 | 64,816 | 53,457 | 53,447 | ||||||||||||
LIABILITIES
|
2,781,334 | 2,795,874 | 2,811,680 | 2,802,421 |
10.
|
Provisions
|
a)
|
Breakdown
|
|
The detail of Provisions at 31 March 2014 and 31 December 2013 is as follows:
|
|
Millions of euros
|
|||||||
|
31/03/14
|
31/12/13
|
||||||
|
||||||||
Provision for pensions and similar obligations
|
9,382 | 9,126 | ||||||
Provisions for taxes and other legal contingencies
|
2,790 | 2,727 | ||||||
Provisions for contingent liabilities and commitments
|
668 | 693 | ||||||
Of which: due to country risk
|
4 | 4 | ||||||
Other provisions
|
2,060 | 1,929 | ||||||
Provisions
|
14,900 | 14,475 |
|
Millions of reais
|
|||||||
|
31/03/14
|
31/12/13
|
||||||
|
||||||||
Provision for pensions and similar obligations
|
29,343 | 29,729 | ||||||
Provisions for taxes and other legal contingencies
|
8,726 | 8,883 | ||||||
Provisions for contingent liabilities and commitments
|
2,089 | 2,258 | ||||||
Of which: due to country risk
|
13 | 13 | ||||||
Other provisions
|
6,443 | 6,284 | ||||||
Provisions
|
46,601 | 47,154 |
b)
|
Provisions for pensions and similar obligations
|
The increase in the balance of Provisions for pensions and similar obligations in the first quarter of 2014 related mainly to the charge of EUR 440 million (BRL 1,425 million) to the provision for pre-retirements in Spain, which was offset in part by the pension payments.
|
c)
|
Provisions for taxes and other legal contingencies and Other provisions
|
Millions of euros
|
||||||||
31/03/14
|
31/12/13
|
|||||||
Provisions for taxes
|
1,189 | 1,177 | ||||||
Provisions for employment-related proceedings (Brazil)
|
695 | 638 | ||||||
Provisions for other legal proceedings
|
963 | 912 | ||||||
Provision for customer remediation (UK)
|
446 | 465 | ||||||
Regulatory framework-related provisions (UK)
|
188 | 201 | ||||||
Provision for restructuring
|
480 | 378 | ||||||
Other
|
889 | 885 | ||||||
4,850 | 4,656 |
Millions of reais
|
||||||||
31/03/14
|
31/12/13
|
|||||||
Provisions for taxes
|
3,719 | 3,834 | ||||||
Provisions for employment-related proceedings (Brazil)
|
2,174 | 2,078 | ||||||
Provisions for other legal proceedings
|
3,012 | 2,971 | ||||||
Provision for customer remediation (UK)
|
1,395 | 1,515 | ||||||
Regulatory framework-related provisions (UK)
|
588 | 655 | ||||||
Provision for restructuring
|
1,501 | 1,231 | ||||||
Other
|
2,780 | 2,883 | ||||||
15,169 | 15,167 |
|
-
|
The provision for payments to the Financial Services Compensation Scheme (FSCS): the FSCS is the compensation fund for customers of financial services entities in the UK and is responsible for paying compensation if an entity cannot pay for rights claimed from it. The FSCS is financed through levies applied to the industry (and recoveries and loans, where appropriate).
|
|
-
|
The provision for the payment of the bank levy in the UK: the 2011 Finance Act introduced an annual bank levy in the UK which is collected using the quarterly system in force for corporation tax. This levy is based on the total liabilities presented in the balance sheet at year-end, although certain amounts are excluded.
|
|
d) Litigation
|
|
At 31 March 2014, the main tax-related proceedings concerning the Group were as follows:
|
|
-
|
Legal actions filed by Banco Santander (Brasil) S.A. and certain Group companies in Brazil challenging the increase in the rate of Brazilian social contribution tax on net income from 9% to 15% stipulated by Interim Measure 413/2008, ratified by Law 11,727/2008, a provision having been recognised for the amount of the estimated loss.
|
|
-
|
Legal actions filed by certain Group companies in Brazil claiming their right to pay the Brazilian social contribution tax on net income at a rate of 8% and 10% from 1994 to 1998. No provision was recognised in connection with the amount considered to be a contingent liability.
|
|
-
|
Legal actions filed by Banco Santander Brasil, S.A. (currently Banco Santander (Brasil), S.A.) and other Group entities claiming their right to pay the Brazilian PIS and COFINS social contributions only on the income from the provision of services. In the case of Banco Santander Brasil, S.A., the legal action was declared unwarranted and an appeal was filed at the Federal Regional Court. In September 2007 the Federal Regional Court found in favour of Banco Santander Brasil, S.A., but the Brazilian authorities appealed against the judgment at the Federal Supreme Court. In the case of Banco ABN AMRO Real, S.A. (currently Banco Santander (Brasil), S.A.), in March 2007 the court found in its favour, but the Brazilian authorities appealed against the judgment at the Federal Regional Court, which handed down a decision partly upholding the appeal in September 2009. Banco Santander (Brasil), S.A. filed an appeal at the Federal Supreme Court. Law 12,865/2013 established a programme of payments or deferrals of certain tax and social security debts, exempting the entities availing themselves of the Law from paying late-payment interest and resulting in the legal actions brought being withdrawn. In November 2013 Banco Santander (Brasil) S.A. partially availed itself of this programme but only with respect to the legal actions brought by the former Banco ABN AMRO Real, S.A. in relation to the period from September 2006 to April 2009, and with respect to other minor actions brought by other entities in its Group. However, the legal actions brought by Banco Santander (Brasil), S.A. and those of Banco ABN AMRO Real, S.A. relating to the periods prior to September 2006, for which the estimated loss was provided for, still subsist.
|
|
-
|
Banco Santander (Brasil), S.A. and other Group companies in Brazil have appealed against the assessments issued by the Brazilian tax authorities questioning the deduction of loan losses in their income tax returns (IRPJ and CSLL) on the ground that the relevant requirements under the applicable legislation were not met. No provision was recognised in connection with the amount considered to be a contingent liability.
|
|
-
|
Banco Santander (Brasil), S.A. and other Group companies in Brazil are involved in several administrative and legal proceedings against various municipalities that demand payment of the Service Tax on certain items of income from transactions not classified as provisions of services. No provision was recognised in connection with the amount considered to be a contingent liability.
|
|
-
|
In addition, Banco Santander (Brasil), S.A. and other Group companies in Brazil are involved in several administrative and legal proceedings against the tax authorities in connection with the taxation for social security purposes of certain items which are not considered to be employee remuneration. No provision was recognised in connection with the amount considered to be a contingent liability.
|
|
-
|
In December 2008 the Brazilian tax authorities issued an infringement notice against Banco Santander (Brasil), S.A. in relation to income tax (IRPJ and CSLL) for 2002 to 2004. The tax authorities took the view that Banco Santander (Brasil), S.A. did not meet the necessary legal requirements to be able to deduct the goodwill arising on the acquisition of Banespa (currently Banco Santander (Brasil), S.A.). Banco Santander (Brasil) S.A. filed an appeal against the infringement notice at Conselho Administrativo de Recursos Fiscais (CARF), which on 21 October 2011 unanimously decided to render the infringement notice null and void. The tax authorities have appealed against this decision at a higher administrative level. In June 2010 the Brazilian tax authorities issued infringement notices in relation to this same matter for 2005 to 2007. Banco Santander (Brasil), S.A. filed an appeal against these procedures at CARF, which was partially upheld on 8 October 2013. This decision will be appealed at the higher instance of CARF (Tax Appeal High Chamber). In December 2013 the Brazilian tax authorities issued the infringement notice relating to 2008, the last year for amortisation of the goodwill. This infringement notice will be appealed by Banco Santander (Brasil), S.A. Based on the advice of its external legal counsel and in view of the first decision by CARF, the Group considers that the stance taken by the Brazilian tax authorities is incorrect and that there are sound defence arguments to appeal against the infringement notices. Accordingly, the risk of incurring a loss is remote. Consequently, no provisions have been recognised in connection with these proceedings because this matter should not affect the consolidated financial statements.
|
|
-
|
In May 2003 the Brazilian tax authorities issued separate infringement notices against Santander Distribuidora de Títulos e Valores Mobiliarios Ltda. (DTVM) and Banco Santander Brasil, S.A. (currently Banco Santander (Brasil), S.A.) in relation to the Provisional Tax on Financial Movements (CPMF) with respect to certain transactions carried out by DTVM in the management of its customers' funds and for the clearing services provided by Banco Santander Brasil, S.A. to DTVM in 2000, 2001 and the first two months of 2002. Both entities appealed against the infringement notices at CARF, with DTVM obtaining a favourable decision and Banco Santander Brasil, S.A. an unfavourable decision. Both decisions were appealed by the losing parties at the Higher Chamber of CARF, and the appeal relating to Banco Santander Brasil, S.A. is pending a decision. With respect to DTVM, on 24 August 2012, it was notified of a decision overturning the previous favourable judgment and lodged an appeal at the Higher Chamber of CARF on 29 August 2012. Based on the opinion of its legal advisers, the Group considers that the tax treatment applied in these transactions was correct. No provision was recognised in the consolidated financial statements in relation to this litigation as it was considered a contingent liability.
|
|
-
|
In December 2010 the Brazilian tax authorities issued an infringement notice against Santander Seguros, S.A., as the successor by merger to ABN AMRO Brazil Dois Participacoes, S.A., in relation to income tax (IRPJ and CSLL) for 2005. The tax authorities questioned the tax treatment applied to a sale of shares of Real Seguros, S.A. made in that year. The bank filed an appeal for reconsideration against this infringement notice. As the former parent of Santander Seguros, S.A. (Brasil), Banco Santander (Brasil), S.A. is liable in the event of any adverse outcome of this proceeding. No provision was recognised in connection with this proceeding as it was considered to be a contingent liability.
|
|
-
|
Also, in December 2010, the Brazilian tax authorities issued infringement notices against Banco Santander (Brasil), S.A. in connection with income tax (IRPJ and CSLL), questioning the tax treatment applied to the economic compensation received under the contractual guarantees provided by the sellers of the former Banco Meridional. The bank filed an appeal for reconsideration against this infringement notice. On 23 November 2011, CARF unanimously decided to render null and void an infringement notice relating to 2002 with regard to the same matter, and the decision was declared final in February 2012. The proceedings relating to the 2003 to 2006 fiscal years are still in progress. No provision was recognised in connection with this proceeding as it was considered to be a contingent liability.
|
|
-
|
In June 2013, the Brazilian tax authorities issued an infringement notice against Banco Santander (Brasil), S.A. as the party liable for tax on the capital gain allegedly obtained in Brazil by the entity not resident in Brazil, Sterrebeeck B.V., as a result of the “incorporação de ações” (merger of shares) transaction carried out in August 2008. As a result of the aforementioned transaction, Banco Santander (Brasil), S.A. acquired all of the shares of Banco ABN AMRO Real, S.A. and ABN AMRO Brasil Dois Participações, S.A. through the delivery to these entities' shareholders of newly issued shares of Banco Santander (Brasil), S.A., issued in a capital increase carried out for that purpose. The Brazilian tax authorities take the view that in the aforementioned transaction Sterrebeeck B.V. obtained income subject to tax in Brazil consisting of the difference between the issue value of the shares of Banco Santander (Brasil), S.A. that were received and the acquisition cost of the shares delivered in the exchange. The Group lodged an appeal against the infringement notice at the Federal Tax Office and considers, based on the advice of its external legal counsel, that the stance taken by the Brazilian tax authorities is not correct, that there are sound defence arguments to appeal against the infringement notice and that, therefore, the risk of loss is remote. Consequently, the Group has not recognised any provisions in connection with these proceedings because this matter should not affect the consolidated financial statements.
|
|
-
|
Legal action brought by Sovereign Bancorp, Inc. (currently Santander Holdings USA, Inc.) claiming its right to take a foreign tax credit in connection with taxes paid outside the United States in fiscal years 2003 to 2005 in relation to financing transactions carried out with an international bank. Santander Holdings USA Inc. considers that, in accordance with applicable tax legislation, it is entitled to recognise the aforementioned tax credits as well as the related issuance and financing costs. In addition, if the outcome of this legal action is favourable to the interests of Santander Holdings USA, Inc., the amounts paid over by the entity in relation to this matter with respect to 2006 and 2007 would have to be refunded. In 2013 the US courts found against two taxpayers in cases with a similar structure In the case of Santander Holdings USA, Inc. the proceeding was scheduled for 7 October 2013, although it was adjourned indefinitely when the judge found in favour of Santander Holdings USA, Inc. with respect to one of the main grounds of the case. Santander Holdings USA, Inc. is expecting the judge to rule within the next few months on whether his previous decision will result in the proceedings being stayed in the case or whether other matters need to be analysed before a final decision may be handed down. If the decision is favourable to Santander Holdings USA, Inc.'s interests, the US government has stated its intention to appeal against it. The estimated loss relating to this proceeding was provided for.
|
|
-
|
Customer remediation: claims associated with the sale by Santander UK of certain financial products (principally payment protection insurance (PPI)) to its customers.
|
|
-
|
Proceeding under Criminal Procedure Law filed by Galesa de Promociones, S.A. against the Bank at Elche Court of First Instance no. 5, Alicante (case no. 1946/2008). The claim sought damages amounting to EUR 51 million as a result of a judgment handed down by the Supreme Court on 24 November 2004 setting aside a summary mortgage proceeding filed by the Bank against the plaintiff company.
|
|
-
|
After the Madrid Provincial Appellate Court had rendered null and void the award handed down in the previous arbitration proceeding, on 8 September 2011, Banco Santander, S.A. filed a new request for arbitration with the Spanish Arbitration Court against Delforca 2008, S.A. (formerly Gaesco Bolsa Sociedad de Valores, S.A.), claiming EUR 66 million that the latter owes it as a result of the declaration on 4 January 2008 of the early termination by the Bank of all the financial transactions agreed upon between the parties.
|
|
-
|
Former employees of Banco do Estado de São Paulo S.A., Santander Banespa, Cia. de Arrendamiento Mercantil: a claim was filed in 1998 by the association of retired Banespa employees (AFABESP) on behalf of its members, requesting the payment of a half-yearly bonus initially envisaged in the entity’s Bylaws in the event that the entity obtained a profit and that the distribution of this profit were approved by the board of directors. The bonus was not paid in 1994 and 1995 since the bank did not make a profit and partial payments were made from 1996 to 2000, as agreed by the board of directors, and the relevant clause was eliminated in 2001. The Regional Employment Court ordered the bank to pay this half-yearly bonus in September 2005 and the bank filed an appeal against the decision at the High Employment Court (“TST”) and, subsequently, at the Federal Supreme Court (“STF”). The TST confirmed the judgment against the bank, whereas the STF rejected the extraordinary appeal filed by the bank in a decision adopted by only one of the Court members, thereby also upholding the order issued to the bank. This decision was appealed by the bank and the association. Only the appeal lodged by the bank has been given leave to proceed and will be decided upon by the STF in plenary session.
|
|
-
|
"Planos economicos": Like the rest of the banking system, Santander Brazil has been the subject of claims from customers, mostly depositors, and of class actions brought for a common reason, arising from a series of legislative changes relating to the calculation of inflation ("planos economicos"). The claimants considered that their vested rights had been impaired due to the immediate application of these adjustments. In April 2010, the High Court of Justice ("STJ") set the limitation period for these class actions at 5 years, as claimed by the banks, rather than 20 years, as sought by the claimants, which will probably significantly reduce the number of actions brought and the amounts claimed in this connection. As regards the substance of the matter, the decisions issued to date have been adverse for the banks, although two proceedings have been brought at the STJ and the Supreme Federal Court ("STF") with which the matter is expected to be definitively settled. In August 2010, the STJ handed down a decision finding for the plaintiffs in terms of substance, but excluding one of the “planos” from the claim, thereby reducing the amount thereof, and once again confirming the five-year statute-of-limitations period. Shortly thereafter, the STF issued an injunctive relief order whereby the proceedings in progress were stayed until this court issues a final decision on the matter.
|
|
-
|
Proceeding under Criminal Procedure Law (case no. 1043/2009) conducted at Madrid Court of First Instance no. 26, following a claim brought by Banco Occidental de Descuento, Banco Universal, C.A. against the Bank for USD 150 million in principal plus USD 4.7 million in interest, upon alleged termination of an escrow contract.
|
|
-
|
On 26 January 2011, notice was served on the Bank of an ancillary insolvency claim to annul acts detrimental to the assets available to creditors as part of the voluntary insolvency proceedings of Mediterráneo Hispa Group, S.A. at Murcia Commercial Court no. 2. The aim of the principal action is to request annulment of the application of the proceeds obtained by the company undergoing insolvency from an asset sale and purchase transaction involving EUR 32 million in principal and EUR 2.7 million in interest. On 24 November 2011, the hearing was held with the examination of the proposed evidence. Upon completion of the hearing, it was resolved to conduct a final proceeding. The Court dismissed the claim in full in a judgment dated 13 November 2013. The judgment has been appealed by the complainant.
|
|
-
|
The bankruptcy of various Lehman Group companies was made public on 15 September 2008. Various customers of Santander Group were affected by this situation since they had invested in securities issued by Lehman or in other products which had such assets as their underlying.
|
|
-
|
The intervention, on the grounds of alleged fraud, of Bernard L. Madoff Investment Securities LLC ("Madoff Securities") by the US Securities and Exchange Commission ("SEC") took place in December 2008. The exposure of customers of the Group through the Optimal Strategic US Equity ("Optimal Strategic") subfund was EUR 2,330 million, of which EUR 2,010 million related to institutional investors and international private banking customers, and the remaining EUR 320 million made up the investment portfolios of the Group's private banking customers in Spain, who were qualifying investors.
|
|
-
|
At the end of the first quarter of 2013, news stories were published stating that the public sector was debating the validity of the interest rate swaps arranged between various financial institutions and public sector companies in Portugal, particularly in the public transport industry.
|
11.
|
Equity
|
|
On 30 January 2014, the bonus issue through which the Santander Dividendo Elección scrip dividend scheme is instrumented took place, whereby 227,646,659 shares (2.01% of the share capital) were issued for an amount of EUR 114 million (BRL 374 million).
|
b)
|
Valuation adjustments - Available-for-sale financial assets
|
Millions of euros
|
||||||||||||||||||||||||||||||||
31/03/14
|
31/12/13
|
|||||||||||||||||||||||||||||||
Revaluation gains
|
Revaluation losses
|
Net revaluation gains/(losses)
|
Fair
value
|
Revaluation gains
|
Revaluation losses
|
Net revaluation gains/(losses)
|
Fair
value
|
|||||||||||||||||||||||||
Debt instruments
|
||||||||||||||||||||||||||||||||
Government debt securities and debt
instruments issued by central banks
|
||||||||||||||||||||||||||||||||
Spain
|
549 | (352 | ) | 197 | 24,477 | 356 | (496 | ) | (140 | ) | 25,664 | |||||||||||||||||||||
Rest of Europe
|
79 | (44 | ) | 35 | 13,867 | 28 | (143 | ) | (115 | ) | 12,080 | |||||||||||||||||||||
Latin America and rest of the world
|
59 | (168 | ) | (109 | ) | 22,536 | 38 | (217 | ) | (179 | ) | 17,134 | ||||||||||||||||||||
Private-sector debt securities
|
265 | (228 | ) | 37 | 25,969 | 258 | (280 | ) | (22 | ) | 24,966 | |||||||||||||||||||||
952 | (792 | ) | 160 | 86,849 | 680 | (1,136 | ) | (456 | ) | 79,844 | ||||||||||||||||||||||
Equity instruments
Domestic
|
||||||||||||||||||||||||||||||||
Spain
International
|
186 | (8 | ) | 178 | 1,471 | 132 | (10 | ) | 122 | 1,432 | ||||||||||||||||||||||
Rest of Europe
|
141 | (25 | ) | 116 | 1,002 | 158 | (25 | ) | 133 | 974 | ||||||||||||||||||||||
United States
|
20 | - | 20 | 598 | 20 | (1 | ) | 19 | 661 | |||||||||||||||||||||||
Latin America and rest of the world
|
247 | (22 | ) | 225 | 968 | 235 | (18 | ) | 217 | 888 | ||||||||||||||||||||||
594 | (55 | ) | 539 | 4,039 | 545 | (54 | ) | 491 | 3,955 | |||||||||||||||||||||||
Of which:
|
||||||||||||||||||||||||||||||||
Listed
|
299 | (27 | ) | 272 | 913 | 313 | (26 | ) | 287 | 1,330 | ||||||||||||||||||||||
Unlisted
|
295 | (28 | ) | 267 | 3,126 | 232 | (28 | ) | 204 | 2,625 | ||||||||||||||||||||||
|
1,546 | (847 | ) | 699 | 90,888 | 1,225 | (1,190 | ) | 35 | 83,799 |
Millions of reais
|
||||||||||||||||||||||||||||||||
31/03/14
|
31/12/13
|
|||||||||||||||||||||||||||||||
Revaluation gains
|
Revaluation losses
|
Net revaluation gains/(losses)
|
Fair value
|
Revaluation gains
|
Revaluation losses
|
Net revaluation gains/(losses)
|
Fair
value
|
|||||||||||||||||||||||||
Debt instruments
|
||||||||||||||||||||||||||||||||
Government debt securities and debt
instruments issued by central banks
|
||||||||||||||||||||||||||||||||
Spain
|
1,717 | (1,101 | ) | 616 | 76,554 | 1,160 | (1,616 | ) | (456 | ) | 83,603 | |||||||||||||||||||||
Rest of Europe
|
247 | (138 | ) | 109 | 43,370 | 91 | (466 | ) | (375 | ) | 39,352 | |||||||||||||||||||||
Latin America and rest of the world
|
185 | (525 | ) | (340 | ) | 70,484 | 124 | (708 | ) | (584 | ) | 55,816 | ||||||||||||||||||||
Private-sector debt securities
|
828 | (713 | ) | 115 | 81,221 | 840 | (912 | ) | (72 | ) | 81,329 | |||||||||||||||||||||
2,977 | (2,477 | ) | 500 | 271,629 | 2,215 | (3,702 | ) | (1,487 | ) | 260,100 | ||||||||||||||||||||||
Equity instruments
Domestic
|
||||||||||||||||||||||||||||||||
Spain
International
|
582 | (25 | ) | 557 | 4,601 | 430 | (33 | ) | 397 | 4,665 | ||||||||||||||||||||||
Rest of Europe
|
441 | (78 | ) | 363 | 3,134 | 515 | (81 | ) | 434 | 3,173 | ||||||||||||||||||||||
United States
|
63 | - | 63 | 1,870 | 65 | (3 | ) | 62 | 2,153 | |||||||||||||||||||||||
Latin America and rest of the world
|
772 | (69 | ) | 703 | 3,027 | 765 | (59 | ) | 706 | 2,893 | ||||||||||||||||||||||
1,858 | (172 | ) | 1,686 | 12,632 | 1,775 | (176 | ) | 1,599 | 12,884 | |||||||||||||||||||||||
Of which:
|
||||||||||||||||||||||||||||||||
Listed
|
935 | (84 | ) | 851 | 2,855 | 1,020 | (85 | ) | 935 | 4,333 | ||||||||||||||||||||||
Unlisted
|
923 | (88 | ) | 835 | 9,777 | 755 | (91 | ) | 665 | 8,551 | ||||||||||||||||||||||
4,835 | (2,649 | ) | 2,186 | 284,261 | 3,990 | (3,878 | ) | 112 | 272,984 |
c)
|
Valuation adjustments - Hedges of net investments in foreign operations and Exchange differences
|
|
Valuation adjustments - Hedges of net investments in foreign operations includes the net amount of changes in the value of hedging instruments in hedges of net investments in foreign operations, for the portion of these changes considered as effective hedges.
|
|
Valuation adjustments - Exchange differences includes the net amount of exchange differences arising on non-monetary items whose fair value is adjusted against equity and the differences arising on the translation to euros of the balances of the consolidated entities whose functional currency is not the euro.
|
|
The net changes in both these items recognised in the statement of recognised income and expense in the first quarter of 2014 reflect the effect arising from the appreciation of foreign currencies, mainly the pound sterling and the Brazilian real. Of the change in the balance in the first quarter, a gain of approximately EUR 208 million related to the measurement of goodwill using the year-end exchange rate.
|
d)
|
Valuation adjustments - Other valuation adjustments
|
12.
|
Segment information
|
|
-
|
Geographical areas: the United States geographical area now includes Santander Bank, Santander Consumer USA, which was accounted for by the equity method and is now fully consolidated, and Puerto Rico, which was previously included in Latin America.
|
|
-
|
Business: the name of the Asset management and insurance segment was changed to Private banking, asset management and insurance, and now includes the domestic private banking units in Spain, Portugal, Italy, Brazil, Mexico and Chile, where management is shared with the local banks. This segment also includes Santander Private Banking in Latin America.
|
Revenue (Millions of euros)
|
||||||||||||||||||||||||
Segment |
Revenue from
external customers
|
Inter-segment
revenue
|
Total revenue
|
|||||||||||||||||||||
31/03/14
|
31/03/13
|
31/03/14
|
31/03/13
|
31/03/14
|
31/03/13
|
|||||||||||||||||||
Continental Europe
|
6,107 | 6,574 | 27 | 304 | 6,134 | 6,878 | ||||||||||||||||||
United Kingdom
|
2,387 | 2,017 | 228 | 550 | 2,615 | 2,567 | ||||||||||||||||||
Latin America
|
7,640 | 8,499 | (88 | ) | 137 | 7,552 | 8,636 | |||||||||||||||||
United States
|
1,647 | 646 | (4 | ) | 23 | 1,643 | 669 | |||||||||||||||||
Corporate Activities
|
380 | 1,306 | 2,168 | 1,569 | 2,548 | 2,875 | ||||||||||||||||||
Inter-segment revenue adjustments and eliminations
|
- | - | (2,331 | ) | (2,583 | ) | (2,331 | ) | (2,583 | ) | ||||||||||||||
Total
|
18,161 | 19,042 | - | - | 18,161 | 19,042 |
Revenue (Millions of reais)
|
||||||||||||||||||||||||
Segment |
Revenue from
external customers
|
Inter-segment
revenue
|
Total revenue
|
|||||||||||||||||||||
31/03/14
|
31/03/13
|
31/03/14
|
31/03/13
|
31/03/14
|
31/03/13
|
|||||||||||||||||||
Continental Europe
|
19,783 | 17,325 | 87 | 804 | 19,870 | 18,129 | ||||||||||||||||||
United Kingdom
|
7,732 | 5,316 | 739 | 1,449 | 8,471 | 6,765 | ||||||||||||||||||
Latin America
|
24,749 | 22,397 | (285 | ) | 361 | 24,464 | 22,758 | |||||||||||||||||
United States
|
5,335 | 1,702 | (13 | ) | 61 | 5,322 | 1,763 | |||||||||||||||||
Corporate Activities
|
1,231 | 3,442 | 7,023 | 4,132 | 8,254 | 7,574 | ||||||||||||||||||
Inter-segment revenue adjustments and eliminations
|
- | - | (7,551 | ) | (6,807 | ) | (7,551 | ) | (6,807 | ) | ||||||||||||||
Total
|
58,830 | 50,182 | - | - | 58,830 | 50,182 |
Consolidated profit
(Millions of euros)
|
||||||||
Segment
|
31/03/14
|
31/03/13
|
||||||
Continental Europe
|
499 | 336 | ||||||
United Kingdom
|
376 | 224 | ||||||
Latin America
|
910 | 1,263 | ||||||
United States
|
202 | 233 | ||||||
Corporate Activities
|
(433 | ) | (548 | ) | ||||
Total profit of the segments reported
|
1,554 | 1,508 | ||||||
(+/-) Unallocated profit
|
- | - | ||||||
(+/-) Elimination of inter-segment profit
|
- | - | ||||||
(+/-) Other profit/loss
|
- | - | ||||||
(+/-) Income tax and/or profit from discontinued operations
|
1,548 | 496 | ||||||
Profit before tax
|
3,102 | 2,004 |
Consolidated profit
(Millions of reais)
|
||||||||
Segment
|
31/03/14
|
31/03/13
|
||||||
Continental Europe
|
1,616 | 885 | ||||||
United Kingdom
|
1,218 | 590 | ||||||
Latin America
|
2,949 | 3,329 | ||||||
United States
|
654 | 614 | ||||||
Corporate Activities
|
(1,403 | ) | (1,444 | ) | ||||
Total profit of the segments reported
|
5,034 | 3,974 | ||||||
(+/-) Unallocated profit
|
- | - | ||||||
(+/-) Elimination of inter-segment profit
|
- | - | ||||||
(+/-) Other profit/loss
|
- | - | ||||||
(+/-) Income tax and/or profit from discontinued operations
|
5,015 | 1,307 | ||||||
Profit before tax
|
10,049 | 5,281 |
13.
|
Related party transactions
|
Millions of euros
|
||||||||||||||||||||
31/03/14
|
||||||||||||||||||||
Expenses and income
|
Significant shareholders
|
Directors and executives
|
Group companies or entities
|
Other related parties
|
Total
|
|||||||||||||||
Expenses:
|
||||||||||||||||||||
Finance costs
|
- | - | 4 | - | 4 | |||||||||||||||
Management or cooperation agreements
|
- | - | - | - | - | |||||||||||||||
R&D transfers and licensing agreements
|
- | - | - | - | - | |||||||||||||||
Leases
|
- | - | - | - | - | |||||||||||||||
Services received
|
- | - | - | - | - | |||||||||||||||
Purchases of goods (finished or in progress)
|
- | - | - | - | - | |||||||||||||||
Valuation adjustments for uncollectible or doubtful debts
|
- | - | - | - | - | |||||||||||||||
Losses on derecognition or disposal of assets
|
- | - | - | - | - | |||||||||||||||
Other expenses
|
- | - | 4 | - | 4 | |||||||||||||||
- | - | 8 | - | 8 | ||||||||||||||||
Income:
|
||||||||||||||||||||
Finance income
|
- | - | 21 | - | 21 | |||||||||||||||
Management or cooperation agreements
|
- | - | - | - | - | |||||||||||||||
R&D transfers and licensing agreements
|
- | - | - | - | - | |||||||||||||||
Dividends received
|
- | - | - | - | - | |||||||||||||||
Leases
|
- | - | - | - | - | |||||||||||||||
Rendering of services
|
- | - | - | - | - | |||||||||||||||
Sale of goods (finished or in progress)
|
- | - | - | - | - | |||||||||||||||
Gains on derecognition or disposal of assets
|
- | - | - | - | - | |||||||||||||||
Other income
|
- | - | 133 | 1 | 134 | |||||||||||||||
- | - | 154 | 1 | 155 |
Millions of reais
|
||||||||||||||||||||
31/03/14
|
||||||||||||||||||||
Expenses and income
|
Significant shareholders
|
Directors and executives
|
Group companies or entities
|
Other related parties
|
Total
|
|||||||||||||||
Expenses:
|
||||||||||||||||||||
Finance costs
|
- | - | 13 | - | 13 | |||||||||||||||
Management or cooperation agreements
|
- | - | - | - | - | |||||||||||||||
R&D transfers and licensing agreements
|
- | - | - | - | - | |||||||||||||||
Leases
|
- | - | - | - | - | |||||||||||||||
Services received
|
- | - | - | - | - | |||||||||||||||
Purchases of goods (finished or in progress)
|
- | - | - | - | - | |||||||||||||||
Valuation adjustments for uncollectible or doubtful debts
|
- | - | - | - | - | |||||||||||||||
Losses on derecognition or disposal of assets
|
- | - | - | - | - | |||||||||||||||
Other expenses
|
- | - | 13 | - | 13 | |||||||||||||||
- | - | 26 | - | 26 | ||||||||||||||||
Income:
|
||||||||||||||||||||
Finance income
|
- | - | 68 | - | 68 | |||||||||||||||
Management or cooperation agreements
|
- | - | - | - | - | |||||||||||||||
R&D transfers and licensing agreements
|
- | - | - | - | - | |||||||||||||||
Dividends received
|
- | - | - | - | - | |||||||||||||||
Leases
|
- | - | - | - | - | |||||||||||||||
Rendering of services
|
- | - | - | - | - | |||||||||||||||
Sale of goods (finished or in progress)
|
- | - | - | - | - | |||||||||||||||
Gains on derecognition or disposal of assets
|
- | - | - | - | - | |||||||||||||||
Other income
|
- | - | 431 | 3 | 434 | |||||||||||||||
- | - | 499 | 3 | 502 |
Millions of euros
|
||||||||||||||||||||
31/03/14
|
||||||||||||||||||||
Other transactions
|
Significant shareholders
|
Directors and executives
|
Group companies or entities
|
Other related parties
|
Total
|
|||||||||||||||
Purchases of tangible, intangible or other assets
|
- | - | - | - | - | |||||||||||||||
Financing agreements: loans and capital contributions (lender)
|
- | 9 | 6,680 | 369 | 7,058 | |||||||||||||||
Finance leases (lessor)
|
- | - | - | - | - | |||||||||||||||
Repayment or termination of loans and leases (lessor)
|
- | - | - | - | - | |||||||||||||||
Sales of tangible, intangible or other assets
|
- | - | - | - | - | |||||||||||||||
Financing agreements: loans and capital contributions (borrower)
|
- | 3 | 1,018 | 187 | 1,208 | |||||||||||||||
Finance leases (lessee)
|
- | - | - | - | - | |||||||||||||||
Repayment or termination of loans and leases (lessee)
|
- | - | - | - | - | |||||||||||||||
Guarantees provided
|
- | - | 78 | 128 | 206 | |||||||||||||||
Guarantees received
|
- | - | - | - | - | |||||||||||||||
Obligations acquired
|
- | 1 | 648 | 4 | 653 | |||||||||||||||
Obligations/guarantees cancelled
|
- | - | - | - | - | |||||||||||||||
Dividends and other distributed profit
|
- | 5 | - | 25 | 30 | |||||||||||||||
Other transactions
|
- | - | 6,370 | 929 | 7,299 |
Millions of reais
|
||||||||||||||||||||
31/03/14
|
||||||||||||||||||||
Other transactions
|
Significant shareholders
|
Directors and executives
|
Group companies or entities
|
Other related parties
|
Total
|
|||||||||||||||
Purchases of tangible, intangible or other assets
|
- | - | - | - | - | |||||||||||||||
Financing agreements: loans and capital contributions (lender)
|
- | 28 | 20,893 | 1,154 | 22,075 | |||||||||||||||
Finance leases (lessor)
|
- | - | - | - | - | |||||||||||||||
Repayment or termination of loans and leases (lessor)
|
- | - | - | - | - | |||||||||||||||
Sales of tangible, intangible or other assets
|
- | - | - | - | - | |||||||||||||||
Financing agreements: loans and capital contributions (borrower)
|
- | 9 | 3,184 | 585 | 3,778 | |||||||||||||||
Finance leases (lessee)
|
- | - | - | - | - | |||||||||||||||
Repayment or termination of loans and leases (lessee)
|
- | - | - | - | - | |||||||||||||||
Guarantees provided
|
- | - | 244 | 400 | 644 | |||||||||||||||
Guarantees received
|
- | - | - | - | - | |||||||||||||||
Obligations acquired
|
- | 3 | 2,027 | 13 | 2,043 | |||||||||||||||
Obligations/guarantees cancelled
|
- | - | - | - | - | |||||||||||||||
Dividends and other distributed profit
|
- | 16 | - | 81 | 97 | |||||||||||||||
Other transactions
|
- | - | 19,922 | 2,906 | 22,828 |
Millions of euros
|
||||||||||||||||||||
31/03/13
|
||||||||||||||||||||
Expenses and income
|
Significant shareholders
|
Directors and executives
|
Group companies or entities
|
Other related parties
|
Total
|
|||||||||||||||
Expenses:
|
||||||||||||||||||||
Finance costs
|
- | - | 2 | 2 | 4 | |||||||||||||||
Management or cooperation agreements
|
- | - | - | - | - | |||||||||||||||
R&D transfers and licensing agreements
|
- | - | - | - | - | |||||||||||||||
Leases
|
- | - | - | - | - | |||||||||||||||
Services received
|
- | - | - | - | - | |||||||||||||||
Purchases of goods (finished or in progress)
|
- | - | - | - | - | |||||||||||||||
Valuation adjustments for uncollectible or doubtful debts
|
- | - | - | - | - | |||||||||||||||
Losses on derecognition or disposal of assets
|
- | - | - | - | - | |||||||||||||||
Other expenses
|
- | - | 7 | - | 7 | |||||||||||||||
- | - | 9 | 2 | 11 | ||||||||||||||||
Income:
|
||||||||||||||||||||
Finance income
|
- | - | 19 | 3 | 22 | |||||||||||||||
Management or cooperation agreements
|
- | - | - | - | - | |||||||||||||||
R&D transfers and licensing agreements
|
- | - | - | - | - | |||||||||||||||
Dividends received
|
- | - | - | - | - | |||||||||||||||
Leases
|
- | - | - | - | - | |||||||||||||||
Rendering of services
|
- | - | - | - | - | |||||||||||||||
Sale of goods (finished or in progress)
|
- | - | - | - | - | |||||||||||||||
Gains on derecognition or disposal of assets
|
- | - | - | - | - | |||||||||||||||
Other income
|
- | - | 10 | 2 | 12 | |||||||||||||||
- | - | 29 | 5 | 34 |
Millions of reais
|
||||||||||||||||||||
31/03/13
|
||||||||||||||||||||
Expenses and income
|
Significant shareholders
|
Directors and executives
|
Group companies or entities
|
Other related parties
|
Total
|
|||||||||||||||
Expenses:
|
||||||||||||||||||||
Finance costs
|
- | - | 6 | 6 | 12 | |||||||||||||||
Management or cooperation agreements
|
- | - | - | - | - | |||||||||||||||
R&D transfers and licensing agreements
|
- | - | - | - | - | |||||||||||||||
Leases
|
- | - | - | - | - | |||||||||||||||
Services received
|
- | - | - | - | - | |||||||||||||||
Purchases of goods (finished or in progress)
|
- | - | - | - | - | |||||||||||||||
Valuation adjustments for uncollectible or doubtful debts
|
- | - | - | - | - | |||||||||||||||
Losses on derecognition or disposal of assets
|
- | - | - | - | - | |||||||||||||||
Other expenses
|
- | - | 23 | - | 23 | |||||||||||||||
- | - | 29 | 6 | 35 | ||||||||||||||||
Income:
|
||||||||||||||||||||
Finance income
|
- | - | 62 | 10 | 72 | |||||||||||||||
Management or cooperation agreements
|
- | - | - | - | - | |||||||||||||||
R&D transfers and licensing agreements
|
- | - | - | - | - | |||||||||||||||
Dividends received
|
- | - | - | - | - | |||||||||||||||
Leases
|
- | - | - | - | - | |||||||||||||||
Rendering of services
|
- | - | - | - | - | |||||||||||||||
Sale of goods (finished or in progress)
|
- | - | - | - | - | |||||||||||||||
Gains on derecognition or disposal of assets
|
- | - | - | - | - | |||||||||||||||
Other income
|
- | - | 32 | 6 | 38 | |||||||||||||||
- | - | 94 | 16 | 110 |
Millions of euros
|
||||||||||||||||||||
31/03/13
|
||||||||||||||||||||
Other transactions
|
Significant shareholders
|
Directors and executives
|
Group companies or entities
|
Other related parties
|
Total
|
|||||||||||||||
Purchases of tangible, intangible or other assets
|
- | - | - | - | - | |||||||||||||||
Financing agreements: loans and capital contributions (lender)
|
- | 36 | 6,988 | 742 | 7,766 | |||||||||||||||
Finance leases (lessor)
|
- | - | - | - | - | |||||||||||||||
Repayment or termination of loans and leases (lessor)
|
- | - | - | - | - | |||||||||||||||
Sales of tangible, intangible or other assets
|
- | - | - | - | - | |||||||||||||||
Financing agreements: loans and capital contributions (borrower)
|
- | 27 | 620 | 463 | 1,110 | |||||||||||||||
Finance leases (lessee)
|
- | - | - | - | - | |||||||||||||||
Repayment or termination of loans and leases (lessee)
|
- | - | - | - | - | |||||||||||||||
Guarantees provided
|
- | - | 2 | 309 | 311 | |||||||||||||||
Guarantees received
|
- | - | - | - | - | |||||||||||||||
Obligations acquired
|
- | 8 | 2,996 | 3 | 3,007 | |||||||||||||||
Obligations/guarantees cancelled
|
- | - | - | - | - | |||||||||||||||
Dividends and other distributed profit
|
- | 5 | - | 27 | 32 | |||||||||||||||
Other transactions
|
- | - | 9,261 | 946 | 10,207 |
Millions of reais
|
||||||||||||||||||||
31/03/13
|
||||||||||||||||||||
Other transactions
|
Significant shareholders
|
Directors and executives
|
Group companies or entities
|
Other related parties
|
Total
|
|||||||||||||||
Purchases of tangible, intangible or other assets
|
- | - | - | - | - | |||||||||||||||
Financing agreements: loans and capital contributions (lender)
|
- | 113 | 21,856 | 2,321 | 24,290 | |||||||||||||||
Finance leases (lessor)
|
- | - | - | - | - | |||||||||||||||
Repayment or termination of loans and leases (lessor)
|
- | - | - | - | - | |||||||||||||||
Sales of tangible, intangible or other assets
|
- | - | - | - | - | |||||||||||||||
Financing agreements: loans and capital contributions (borrower)
|
- | 84 | 1,939 | 1,448 | 3,471 | |||||||||||||||
Finance leases (lessee)
|
- | - | - | - | - | |||||||||||||||
Repayment or termination of loans and leases (lessee)
|
- | - | - | - | - | |||||||||||||||
Guarantees provided
|
- | - | 6 | 966 | 972 | |||||||||||||||
Guarantees received
|
- | - | - | - | - | |||||||||||||||
Obligations acquired
|
- | 25 | 9,370 | 9 | 9,404 | |||||||||||||||
Obligations/guarantees cancelled
|
- | - | - | - | - | |||||||||||||||
Dividends and other distributed profit
|
- | 16 | - | 87 | 103 | |||||||||||||||
Other transactions
|
- | - | 30,000 | 3,064 | 33,064 |
14.
|
Average headcount
|
Bank
|
Group
|
|||||||
Average headcount
|
31/03/14
|
31/03/14
|
||||||
Men
|
14,656 | 83,100 | ||||||
Women
|
10,378 | 100,633 | ||||||
25,034 | 183,733 |
15.
|
Other disclosures: valuation techniques for financial assets and liabilities
|
Millions of euros
|
||||||||||||||||||||||||
31/03/14
|
31/12/13
|
|||||||||||||||||||||||
Published price quotations
in active markets
|
Internal models
|
Published price quotations
in active markets
|
Internal models
|
|||||||||||||||||||||
Total
|
Total
|
|||||||||||||||||||||||
Financial assets held for trading
|
55,678 | 72,952 | 128,630 | 46,472 | 68,817 | 115,289 | ||||||||||||||||||
Other financial assets at fair value through profit or loss
|
3,721 | 35,272 | 38,993 | 3,687 | 27,694 | 31,381 | ||||||||||||||||||
Available-for-sale financial assets (1)
|
67,180 | 22,539 | 89,719 | 62,343 | 20,995 | 83,338 | ||||||||||||||||||
Hedging derivatives (assets)
|
191 | 6,616 | 6,807 | 221 | 8,080 | 8,301 | ||||||||||||||||||
Financial liabilities held for trading
|
15,714 | 90,232 | 105,946 | 14,643 | 80,030 | 94,673 | ||||||||||||||||||
Other financial liabilities at fair value through profit or loss
|
- | 51,501 | 51,501 | - | 42,311 | 42,311 | ||||||||||||||||||
Hedging derivatives (liabilities)
|
243 | 5,521 | 5,764 | 187 | 5,096 | 5,283 | ||||||||||||||||||
Liabilities under insurance contracts
|
- | 1,548 | 1,548 | - | 1,430 | 1,430 | ||||||||||||||||||
Millions of reais
|
||||||||||||||||||||||||
31/03/14
|
31/12/13
|
|||||||||||||||||||||||
Published price quotations
in active markets
|
Internal models
|
Published price quotations
in active markets
|
Internal models
|
|||||||||||||||||||||
Total
|
Total
|
|||||||||||||||||||||||
Financial assets held for trading
|
174,142 | 228,161 | 402,303 | 151,387 | 224,178 | 375,565 | ||||||||||||||||||
Other financial assets at fair value through profit or loss
|
11,637 | 110,316 | 121,953 | 12,011 | 90,216 | 102,227 | ||||||||||||||||||
Available-for-sale financial assets (1)
|
210,112 | 70,491 | 280,603 | 203,089 | 68,393 | 271,482 | ||||||||||||||||||
Hedging derivatives (assets)
|
597 | 20,693 | 21,290 | 710 | 26,321 | 27,041 | ||||||||||||||||||
Financial liabilities held for trading
|
49,151 | 282,205 | 331,356 | 47,701 | 260,706 | 308,407 | ||||||||||||||||||
Other financial liabilities at fair value through profit or loss
|
- | 161,075 | 161,075 | - | 137,832 | 137,832 | ||||||||||||||||||
Hedging derivatives (liabilities)
|
759 | 17,268 | 18,027 | 609 | 16,601 | 17,210 | ||||||||||||||||||
Liabilities under insurance contracts
|
- | 4,842 | 4,842 | - | 4,658 | 4,658 | ||||||||||||||||||
|
(1)
|
In addition to the financial instruments measured at fair value shown in the foregoing table, at 31 March 2014, the Bank held equity instruments classified as available-for-sale financial assets and carried at cost amounting to EUR 1,170 million (BRL 3,658 million) (31 December 2013: EUR 461 million (BRL 1,502 million)).
|
Millions of euros
|
||||||
Fair values
calculated using internal models at
31/03/14
|
Fair values
calculated using
internal models at
31/12/13
|
|||||
Level 2
|
Level 3
|
Level 2
|
Level 3
|
Valuation techniques
|
Main inputs
|
|
ASSETS:
|
135,972
|
1,405
|
124,079
|
1,507
|
||
Financial assets held for trading
|
72,678
|
273
|
68,535
|
282
|
||
Loans and advances to credit institutions
|
5,511
|
-
|
5,502
|
-
|
Present Value Method
|
Observable market data
|
Loans and advances to customers (a)
|
5,902
|
-
|
5,079
|
-
|
Present Value Method
|
Observable market data
|
Debt and equity instruments
|
3,061
|
53
|
1,585
|
50
|
Present Value Method
|
Observable market data, HPI/HPI Spot Rate, HPI Forward Growth Rate, HPI Volatility
|
Trading derivatives
|
58,204
|
220
|
56,369
|
232
|
||
Swaps
|
42,134
|
51
|
40,380
|
56
|
Present Value Method, Gaussian Copula (b)
|
Observable market data, basis, liquidity
|
Exchange rate options
|
1,481
|
17
|
849
|
16
|
Black-Scholes Model
|
Observable market data, liquidity
|
Interest rate options
|
7,748
|
-
|
7,375
|
-
|
Black's Model and advanced multi-factor interest rate models
|
Observable market data, liquidity, correlation
|
Interest rate futures
|
7
|
-
|
16
|
-
|
Present Value Method
|
Observable market data
|
Index and securities options
|
3,383
|
54
|
2,953
|
56
|
Black-Scholes Model
|
Observable market data, dividends, correlation, liquidity, HPI/HPI Spot Rate, HPI Forward Growth Rate, HPI Volatility
|
Other
|
3,451
|
98
|
4,796
|
104
|
Present Value Method, advanced local volatility and stochastic models and other
|
Observable market data and other
|
Hedging derivatives
|
6,616
|
-
|
8,080
|
-
|
||
Swaps
|
5,833
|
-
|
6,920
|
-
|
Present Value Method
|
Observable market data, basis
|
Exchange rate options
|
346
|
-
|
400
|
-
|
Black-Scholes Model
|
Observable market data
|
Interest rate options
|
36
|
-
|
24
|
-
|
Black-Scholes Model
|
Observable market data
|
Other
|
401
|
-
|
736
|
-
|
N/A
|
N/A
|
Other financial assets at fair value through profit or loss
|
||||||
34,834
|
438
|
27,184
|
510
|
|||
Loans and advances to credit institutions
|
22,870
|
-
|
13,444
|
-
|
Present Value Method
|
Observable market data
|
Loans and advances to customers (c)
|
10,991
|
63
|
13,135
|
61
|
Present Value Method
|
Observable market data, HPI/HPI Spot Rate, HPI Forward Growth Rate, HPI Volatility
|
Debt and equity instruments
|
973
|
375
|
605
|
449
|
Present Value Method
|
Observable market data, HPI/HPI Spot Rate, HPI Forward Growth Rate, HPI Volatility
|
Available-for-sale financial assets
|
21,844
|
694
|
20,280
|
715
|
||
Debt and equity instruments
|
21,844
|
694
|
20,280
|
715
|
Present Value Method
|
Observable market data/underlying rate, hierarchy level, conditional prepayment rate (CPR) and expected default rates. Acquisition cost and underlying carrying amount
|
LIABILITIES:
|
148,719
|
82
|
128,762
|
105
|
||
Financial liabilities held for trading
|
90,182
|
49
|
79,970
|
60
|
||
Deposits from central banks
|
5,410
|
-
|
3,866
|
-
|
Present Value Method
|
Observable market data
|
Deposits from credit institutions
|
9,522
|
-
|
7,468
|
-
|
Present Value Method
|
Observable market data
|
Customer deposits
|
13,197
|
-
|
8,500
|
-
|
Present Value Method
|
Observable market data
|
Marketable debt securities
|
1
|
-
|
1
|
-
|
Present Value Method
|
Observable market data, liquidity
|
Trading derivatives
|
58,268
|
49
|
57,260
|
60
|
||
Swaps
|
42,358
|
-
|
41,156
|
2
|
Present Value Method, Gaussian Copula (b)
|
Observable market data, basis, liquidity, HPI/HPI Spot Rate, HPI Forward Growth Rate, HPI Volatility
|
Exchange rate options
|
1,431
|
-
|
660
|
-
|
Black-Scholes Model
|
Observable market data, liquidity
|
Interest rate options
|
8,499
|
-
|
8,457
|
-
|
Black's Model and advanced multi-factor interest rate models
|
Observable market data, liquidity, correlation
|
Index and securities options
|
36
|
-
|
4,252
|
-
|
Black-Scholes Model
|
Observable market data, dividends, correlation, liquidity, HPI/HPI Spot Rate, HPI Forward Growth Rate, HPI Volatility
|
Interest rate and equity futures
|
4,245
|
-
|
88
|
-
|
Present Value Method
|
Observable market data
|
Other
|
1,699
|
49
|
2,647
|
58
|
Present Value Method, advanced local volatility and stochastic models and other
|
Observable market data and other
|
Short positions
|
3,784
|
-
|
2,875
|
-
|
||
Hedging derivatives
|
5,521
|
-
|
5,096
|
-
|
||
Swaps
|
5,203
|
-
|
4,961
|
-
|
Present Value Method
|
Observable market data, basis
|
Exchange rate options
|
1
|
-
|
1
|
-
|
Black-Scholes Model
|
Observable market data
|
Interest rate options
|
19
|
-
|
13
|
-
|
Black's Model
|
Observable market data
|
Other
|
298
|
-
|
121
|
-
|
N/A
|
N/A
|
Other financial liabilities at fair value through profit or loss
|
51,468
|
33
|
42,266
|
45
|
Present Value Method
|
Observable market data
|
Liabilities under insurance contracts
|
1,548
|
-
|
1,430
|
-
|
Present Value Method
|
Millions of reais
|
||||||
Fair values
calculated using
internal models at 31/03/14
|
Fair values
calculated using
internal models at
31/12/13
|
|||||
Level 2
|
Level 3
|
Level 2
|
Level 3
|
Valuation techniques
|
Main inputs
|
|
ASSETS:
|
425,361
|
4,300
|
404,199
|
4,909
|
||
Financial assets held for trading
|
227,307
|
854
|
223,260
|
918
|
||
Loans and advances to credit institutions
|
17,236
|
-
|
17,923
|
-
|
Present Value Method
|
Observable market data
|
Loans and advances to customers (a)
|
18,459
|
-
|
16,545
|
-
|
Present Value Method
|
Observable market data
|
Debt and equity instruments
|
9,574
|
166
|
5,163
|
163
|
Present Value Method
|
Observable market data, HPI/HPI Spot Rate, HPI Forward Growth Rate, HPI Volatility
|
Trading derivatives
|
182,038
|
688
|
183,629
|
755
|
||
Swaps
|
131,778
|
160
|
131,542
|
182
|
Present Value Method, Gaussian Copula (b)
|
Observable market data, basis, liquidity
|
Exchange rate options
|
4,632
|
53
|
2,766
|
52
|
Black-Scholes Model
|
Observable market data, liquidity
|
Interest rate options
|
24,233
|
-
|
24,025
|
-
|
Black's Model and advanced multi-factor interest rate models
|
Observable market data, liquidity, correlation
|
Interest rate futures
|
22
|
-
|
52
|
-
|
Present Value Method
|
Observable market data
|
Index and securities options
|
10,581
|
169
|
9,620
|
182
|
Black-Scholes Model
|
Observable market data, dividends, correlation, liquidity, HPI/HPI Spot Rate, HPI Forward Growth Rate, HPI Volatility
|
Other
|
10,792
|
306
|
15,624
|
339
|
Present Value Method, advanced local volatility and stochastic models and other
|
Observable market data and other
|
Hedging derivatives
|
20,693
|
-
|
26,321
|
-
|
||
Swaps
|
18,243
|
-
|
22,543
|
-
|
Present Value Method
|
Observable market data, basis
|
Exchange rate options
|
1,082
|
-
|
1,303
|
-
|
Black-Scholes Model
|
Observable market data
|
Interest rate options
|
113
|
-
|
78
|
-
|
Black-Scholes Model
|
Observable market data
|
Other
|
1,255
|
-
|
2,397
|
-
|
N/A
|
N/A
|
Other financial assets at fair value through profit or loss
|
108,946
|
1,370
|
88,554
|
1,662
|
||
Loans and advances to credit institutions
|
71,528
|
-
|
43,795
|
-
|
Present Value Method
|
Observable market data
|
Loans and advances to customers (c)
|
34,375
|
197
|
42,788
|
199
|
Present Value Method
|
Observable market data, HPI/HPI Spot Rate, HPI Forward Growth Rate, HPI Volatility
|
Debt and equity instruments
|
3,043
|
1,173
|
1,971
|
1,463
|
Present Value Method
|
Observable market data, HPI/HPI Spot Rate, HPI Forward Growth Rate, HPI Volatility
|
Available-for-sale financial assets
|
68,415
|
2,076
|
66,064
|
2,329
|
||
Debt and equity instruments
|
68,415
|
2,076
|
66,064
|
2,329
|
Present Value Method
|
Observable market data/underlying rate, hierarchy level, conditional prepayment rate (CPR) and expected default rates. Acquisition cost and underlying carrying amount
|
LIABILITIES:
|
465,138
|
252
|
419,454
|
343
|
||
Financial liabilities held for trading
|
282,053
|
152
|
260,510
|
196
|
||
Deposits from central banks
|
16,920
|
-
|
12,594
|
-
|
Present Value Method
|
Observable market data
|
Deposits from credit institutions
|
29,781
|
-
|
24,328
|
-
|
Present Value Method
|
Observable market data
|
Customer deposits
|
41,275
|
-
|
27,690
|
-
|
Present Value Method
|
Observable market data
|
Marketable debt securities
|
3
|
-
|
3
|
-
|
Present Value Method
|
Observable market data, liquidity
|
Trading derivatives
|
182,237
|
152
|
186,529
|
196
|
||
Swaps
|
132,479
|
-
|
134,070
|
7
|
Present Value Method, Gaussian Copula (b)
|
Observable market data, basis, liquidity, HPI/HPI Spot Rate, HPI Forward Growth Rate, HPI Volatility
|
Exchange rate options
|
4,476
|
-
|
2,150
|
-
|
Black-Scholes Model
|
Observable market data, liquidity
|
Interest rate options
|
26,581
|
-
|
27,550
|
-
|
Black's Model and advanced multi-factor interest rate models
|
Observable market data, liquidity, correlation
|
Index and securities options
|
113
|
-
|
13,851
|
-
|
Black-Scholes Model
|
Observable market data, dividends, correlation, liquidity, HPI/HPI Spot Rate, HPI Forward Growth Rate, HPI Volatility
|
Interest rate and equity futures
|
13,277
|
-
|
287
|
-
|
Present Value Method
|
Observable market data
|
Other
|
5,311
|
152
|
8,621
|
189
|
Present Value Method, advanced local volatility and stochastic models and other
|
Observable market data and other
|
Short positions
|
11,837
|
-
|
9,366
|
-
|
||
Hedging derivatives
|
17,268
|
-
|
16,601
|
-
|
||
Swaps
|
16,273
|
-
|
16,161
|
-
|
Present Value Method
|
Observable market data, basis
|
Exchange rate options
|
3
|
-
|
3
|
-
|
Black-Scholes Model
|
Observable market data
|
Interest rate options
|
59
|
-
|
42
|
-
|
Black's Model
|
Observable market data
|
Other
|
933
|
-
|
395
|
-
|
N/A
|
N/A
|
Other financial liabilities at fair value through profit or loss
|
160,975
|
100
|
137,685
|
147
|
Present Value Method
|
Observable market data
|
Liabilities under insurance contracts
|
4,842
|
-
|
4,658
|
-
|
Present Value Method
|
(a)
|
Includes mainly short-term loans and reverse repurchase agreements with corporate customers (mainly brokerage and investment companies).
|
(b)
|
Includes credit risk derivatives with a positive net fair value of EUR 62 million (BRL 194 million) recognised in the consolidated balance sheet. These assets and liabilities are measured using the Standard Gaussian Copula Model.
|
(c)
|
Includes home mortgage loans to financial institutions in the UK (which are regulated and partly financed by the Government). The fair value of these loans was obtained using observable market variables, including current market transactions with similar amounts and collateral facilitated by the UK Housing Association. Since the Government is involved in these financial institutions, the credit risk spreads have remained stable and are homogeneous in this sector. The results arising from the valuation model are checked against current market transactions.
|
|
-
|
Instruments (loans, debt instruments and derivatives) linked to the House Price Index (HPI) in Santander UK's portfolio. Even if the valuation techniques used for these instruments may be the same as those used to value similar products (present value in the case of loans and debt instruments, and the Black-Scholes model for derivatives), the main factors used in the valuation of these instruments are the HPI spot rate, the growth rate of that rate, its volatility and mortality rates, which are not always observable in the market and, accordingly, these instruments are considered illiquid.
|
|
·
|
The HPI spot rate: for some instruments the NSA HPI spot rate, which is directly observable and published on a monthly basis, is used. For other instruments where regional HPI rates must be used (published quarterly), adjustments are made to reflect the different composition of the rates and adapt them to the regional composition of Santander UK's portfolio.
|
|
·
|
HPI growth rate: this is not always directly observable in the market, especially for long maturities, and is estimated in accordance with existing quoted prices. To reflect the uncertainty implicit in these estimates, adjustments are made based on an analysis of the historical volatility of the HPI, incorporating reversion to the mean.
|
|
·
|
HPI volatility: the long-term volatility is not directly observable in the market but is estimated on the basis of more short-term quoted prices and by making an adjustment to reflect the existing uncertainty, based on the standard deviation of historical volatility over various time periods.
|
|
·
|
Mortality rates: these are based on published official tables and adjusted to reflect the composition of the customer portfolio for this type of product at Santander UK.
|
|
-
|
Illiquid CDOs and CLOs in the portfolio of the treasury unit in Madrid. These are measured by grouping together the securities by type of underlying (sector/country), payment hierarchy (prime, mezzanine, junior, etc.), and assuming forecast conditional prepayment rates (CPR) and default rates, adopting conservative criteria.
|
Portfolio / Instrument
|
Valuation technique
|
Main unobservable inputs
|
Range
|
Weighted average
|
Impacts (in millions of euros)
|
|
(Level 3)
|
Unfavourable scenario
|
Favourable scenario
|
||||
Financial assets held for trading
|
|
|
|
|
||
Debt instruments
|
Partial differential equations
|
Long-term volatility
|
32.5% - 41.8%
|
37.2%
|
(15)
|
15
|
Trading derivatives
|
Present Value Method
|
Curves on ABR indices (*)
|
(a)
|
(a)
|
(7)
|
7
|
|
Present Value Method, Modified Black-Scholes Model
|
HPI forward growth rate
|
0%-5%
|
2.3%
|
(20)
|
20
|
|
Present Value Method, Modified Black-Scholes Model
|
HPI spot rate
|
n/a
|
584 (**)
|
(24)
|
24
|
|
Standard Gaussian Copula Model
|
Probability of default
|
0.1%-1.2%
|
0.70%
|
(4)
|
4
|
Other financial assets at fair value through profit or loss
|
|
|
|
|
||
Loans and advances to customers
|
Weighted average by probability (according to forecast mortality rates) of European HPI options, using the Black-Scholes model
|
HPI forward growth rate
|
0%-5%
|
3%
|
(1)
|
1
|
Debt and equity instruments
|
Weighted average by probability (according to forecast mortality rates) of HPI forwards, using the present value model
|
HPI forward growth rate
|
0%-5%
|
2.7%
|
(14)
|
13
|
|
Weighted average by probability (according to forecast mortality rates) of HPI forwards, using the present value model
|
HPI spot rate
|
n/a
|
590 (**)
|
(18)
|
18
|
|
Adjusted average of quoted prices from independent sources
|
Credit spread
|
4%-14%
|
7.2%
|
(5)
|
5
|
Available-for-sale financial assets
|
|
|
|
|
||
Debt and equity instruments
|
Present Value Method, others
|
Non-performing loans and prepayment ratios, cost of capital, long-term earnings growth rate
|
(a)
|
(a)
|
(2)
|
2
|
Financial liabilities held for trading
|
|
|
|
|
||
Trading derivatives
|
Present Value Method, Modified Black-Scholes Model
|
HPI forward growth rate
|
0%-5%
|
1.6%
|
(2)
|
2
|
|
Present Value Method, Modified Black-Scholes Model
|
HPI spot rate
|
n/a
|
565 (**)
|
(10)
|
10
|
|
Present Value Method, Modified Black-Scholes Model
|
Curves on ABR indices (*)
|
(a)
|
(a)
|
-
|
-
|
Other liabilities at fair value through profit or loss
|
-
|
-
|
-
|
-
|
(b)
|
(b)
|
Portfolio / Instrument
|
Valuation technique
|
Main unobservable inputs
|
Range
|
Weighted average
|
Impacts (in millions of reais)
|
|
(Level 3)
|
Unfavourable scenario
|
Favourable scenario
|
||||
Financial assets held for trading
|
|
|
|
|
||
Debt instruments
|
Partial differential equations
|
Long-term volatility
|
32.5% - 41.8%
|
37.2%
|
(47)
|
47
|
Trading derivatives
|
Present Value Method
|
Curves on ABR indices (*)
|
(a)
|
(a)
|
(22)
|
22
|
|
Present Value Method, Modified Black-Scholes Model
|
HPI forward growth rate
|
0%-5%
|
2.3%
|
(63)
|
63
|
|
Present Value Method, Modified Black-Scholes Model
|
HPI spot rate
|
n/a
|
584 (**)
|
(75)
|
75
|
|
Standard Gaussian Copula Model
|
Probability of default
|
0.1%-1.2%
|
0.70%
|
(13)
|
13
|
Other financial assets at fair value through profit or loss
|
|
|
|
|
||
Loans and advances to customers
|
Weighted average by probability (according to forecast mortality rates) of European HPI options, using the Black-Scholes model
|
HPI forward growth rate
|
0%-5%
|
3%
|
(3)
|
3
|
Debt and equity instruments
|
Weighted average by probability (according to forecast mortality rates) of HPI forwards, using the present value model
|
HPI forward growth rate
|
0%-5%
|
2.7%
|
(44)
|
41
|
|
Weighted average by probability (according to forecast mortality rates) of HPI forwards, using the present value model
|
HPI spot rate
|
n/a
|
590 (**)
|
(56)
|
56
|
|
Adjusted average of quoted prices from independent sources
|
Credit spread
|
4%-14%
|
7.2%
|
(16)
|
16
|
Available-for-sale financial assets
|
|
|
|
|
||
Debt and equity instruments
|
Present Value Method, others
|
Non-performing loans and prepayment ratios, cost of capital, long-term earnings growth rate
|
(a)
|
(a)
|
(6)
|
(6)
|
Financial liabilities held for trading
|
|
|
|
|
||
Trading derivatives
|
Present Value Method, Modified Black-Scholes Model
|
HPI forward growth rate
|
0%-5%
|
1.6%
|
(6)
|
6
|
|
Present Value Method, Modified Black-Scholes Model
|
HPI spot rate
|
n/a
|
565 (**)
|
(31)
|
31
|
|
Present Value Method, Modified Black-Scholes Model
|
Curves on ABR indices (*)
|
(a)
|
(a)
|
-
|
-
|
Other liabilities at fair value through profit or loss
|
-
|
-
|
-
|
-
|
(b)
|
(b)
|
(a)
|
The exercise was conducted for the unobservable inputs described in the Main unobservable inputs column under probable scenarios. The range and weighted average value used are not shown because the aforementioned exercise was conducted jointly for various inputs or variants thereof, and it was not possible to break down the results separately by type of input.
|
(b)
|
The Group calculates the potential effect on the valuation of each of these instruments on a joint basis, irrespective of whether their individual valuation is positive (asset) or negative (liability), and the global effect associated with these financial instruments is broken down in the Other financial assets at fair value through profit or loss line included.
|
31/12/13
|
Changes
|
31/03/14
|
||||||||||||||||||||||||||||||||||||||
Millions of euros
|
Fair value calculated using internal models (Level 3)
|
Purchases
|
Sales
|
Issues
|
Settlements
|
Changes in
fair value recognised in profit or loss (unrealised)
|
Changes in fair value recognised in profit or loss (realised)
|
Changes in fair value recognised in equity
|
Other
|
Fair value calculated using internal models (Level 3)
|
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Financial assets held for trading
|
282 | - | - | - | - | (3 | ) | (2 | ) | - | (4 | ) | 273 | |||||||||||||||||||||||||||
Debt and equity instruments
|
50 | - | - | - | - | 2 | - | - | 1 | 53 | ||||||||||||||||||||||||||||||
Trading derivatives
|
232 | - | - | - | - | (5 | ) | (2 | ) | - | (5 | ) | 220 | |||||||||||||||||||||||||||
Swaps
|
56 | - | - | - | - | 4 | (6 | ) | - | (3 | ) | 51 | ||||||||||||||||||||||||||||
Exchange rate options
|
16 | - | - | - | - | - | - | - | 1 | 17 | ||||||||||||||||||||||||||||||
Index and securities options
|
56 | - | - | - | - | (2 | ) | - | - | - | 54 | |||||||||||||||||||||||||||||
Other
|
104 | - | - | - | - | (7 | ) | 4 | - | (3 | ) | 98 | ||||||||||||||||||||||||||||
Other financial assets at fair value through profit or loss
|
510 | - | (70 | ) | - | - | 1 | - | - | (3 | ) | 438 | ||||||||||||||||||||||||||||
Loans and advances to customers
|
61 | - | - | - | - | 1 | - | - | 1 | 63 | ||||||||||||||||||||||||||||||
Debt and equity instruments
|
449 | - | (70 | ) | - | - | - | - | - | (4 | ) | 375 | ||||||||||||||||||||||||||||
Available-for-sale financial assets
|
715 | - | (61 | ) | - | - | - | - | 15 | 25 | 694 | |||||||||||||||||||||||||||||
TOTAL ASSETS
|
1,507 | - | (131 | ) | - | - | (2 | ) | (2 | ) | 15 | 18 | 1,405 | |||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Financial liabilities held for trading
|
60 | - | - | - | - | 10 | (14 | ) | - | (7 | ) | 49 | ||||||||||||||||||||||||||||
Trading derivatives
|
60 | - | - | - | - | 10 | (14 | ) | - | (7 | ) | 49 | ||||||||||||||||||||||||||||
Swaps
|
2 | - | - | - | - | - | (2 | ) | - | - | - | |||||||||||||||||||||||||||||
Other
|
58 | - | - | - | - | 10 | (12 | ) | - | (7 | ) | 49 | ||||||||||||||||||||||||||||
Other liabilities at fair value through profit or loss
|
45 | - | (11 | ) | - | - | 6 | (7 | ) | - | - | 33 | ||||||||||||||||||||||||||||
TOTAL LIABILITIES
|
105 | - | (11 | ) | - | - | 16 | (21 | ) | - | (7 | ) | 82 |
31/12/13
|
Changes
|
31/03/14
|
||||||||||||||||||||||||||||||||||||||
Millions of reais
|
Fair value calculated using internal models (Level 3)
|
Purchases
|
Sales
|
Issues
|
Settlements
|
Changes in
fair value recognised in profit or loss (unrealised)
|
Changes in fair value recognised in profit or loss (realised)
|
Changes in fair value recognised in equity
|
Other
|
Fair value calculated using internal models (Level 3)
|
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Financial assets held for trading
|
918 | - | - | - | - | (10 | ) | (6 | ) | - | (48 | ) | 854 | |||||||||||||||||||||||||||
Debt and equity instruments
|
163 | - | - | - | - | 6 | - | - | (3 | ) | 166 | |||||||||||||||||||||||||||||
Trading derivatives
|
755 | - | - | - | - | (16 | ) | (6 | ) | - | (45 | ) | 688 | |||||||||||||||||||||||||||
Swaps
|
182 | - | - | - | - | 13 | (19 | ) | - | (16 | ) | 160 | ||||||||||||||||||||||||||||
Exchange rate options
|
52 | - | - | - | - | - | - | - | 1 | 53 | ||||||||||||||||||||||||||||||
Index and securities options
|
182 | - | - | - | - | (6 | ) | - | - | (7 | ) | 169 | ||||||||||||||||||||||||||||
Other
|
339 | - | - | - | - | (23 | ) | 13 | - | (23 | ) | 306 | ||||||||||||||||||||||||||||
Other financial assets at fair value through profit or loss
|
1,662 | - | (227 | ) | - | - | 4 | - | - | (69 | ) | 1,370 | ||||||||||||||||||||||||||||
Loans and advances to customers
|
199 | - | - | - | - | 4 | - | - | (6 | ) | 197 | |||||||||||||||||||||||||||||
Debt and equity instruments
|
1,463 | - | (227 | ) | - | - | - | - | - | (63 | ) | 1,173 | ||||||||||||||||||||||||||||
Available-for-sale financial assets
|
2,329 | - | (197 | ) | - | - | - | - | 49 | (105 | ) | 2,076 | ||||||||||||||||||||||||||||
TOTAL ASSETS
|
4,909 | - | (424 | ) | - | - | (6 | ) | (6 | ) | 49 | (222 | ) | 4,300 | ||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Financial liabilities held for trading
|
196 | - | - | - | - | 32 | (46 | ) | - | (30 | ) | 152 | ||||||||||||||||||||||||||||
Trading derivatives
|
196 | - | - | - | - | 32 | (46 | ) | - | (30 | ) | 152 | ||||||||||||||||||||||||||||
Swaps
|
7 | - | - | - | - | - | (7 | ) | - | - | - | |||||||||||||||||||||||||||||
Other
|
189 | - | - | - | - | 32 | (39 | ) | - | (30 | ) | 152 | ||||||||||||||||||||||||||||
Other liabilities at fair value through profit or loss
|
147 | - | (37 | ) | - | - | 20 | (26 | ) | - | (4 | ) | 100 | |||||||||||||||||||||||||||
TOTAL LIABILITIES
|
343 | - | (37 | ) | - | - | 52 | (72 | ) | - | (34 | ) | 252 | |||||||||||||||||||||||||||
16.
|
Explanation added for translation to English
|
Banco Santander, S.A.
|
||||||
Date:
|
August 19, 2014
|
By:
|
/s/ José Antonio Álvarez
|
|||
Name:
|
José Antonio Álvarez
|
|||||
Title:
|
Executive Vice President
|