BANCO SANTANDER CENTRAL HISPANO, S.A. | SANTANDER FINANCE PREFERRED, S.A. UNIPERSONAL | |
(Exact name of Registrant as specified in its charter) | (Exact name of Registrant as specified in its charter) | |
Kingdom of Spain (Jurisdiction of incorporation or organization) | Kingdom of Spain (Jurisdiction of incorporation or organization) | |
6029 (Primary Standard Industrial Classification Code Number) | 6029 (Primary Standard Industrial Classification Code Number) | |
132617929 (I.R.S. Employer Identification Number) | 98-0420594 (I.R.S. Employer Identification Number) |
Ciudad Grupo Santander Avenida de Cantabria 28660 Boadilla del Monte Madrid, Spain Telephone: 34-91-259-6520 | ||
(Address, including zip code, and telephone number, including area code, of Registrants’ principal executive offices) |
Banco Santander Central Hispano, S.A. New York Branch 45 East 53rd Street New York, NY 10022 | ||
(Name, Address, including zip code, and telephone number, including area code, of Registrants’ agent for service) |
Copies to: | ||
Nicholas A. Kronfeld Davis Polk & Wardwell 450 Lexington Avenue New York, New York 10017 (212) 450-4000 |
Title Of Each Class Of Securities To Be Registered | Amount To Be Registered | Proposed Maximum Offering Price Per Security(1) | Proposed Maximum Aggregate Offering Price(1) | Amount of Registration Fee(1) |
6.80% Non-Cumulative Guaranteed Series 4 preferred securities, par value $25 per security of Santander Finance Preferred, S.A. Unipersonal | 20,000,000 | 100% | $500,000,000 | $15,350 |
Guarantee of 6.80% Non-Cumulative Guaranteed Series 4 preferred securities, par value $25 per security of Santander Finance Preferred, S.A. Unipersonal | 20,000,000 | — | — | None(2) |
(1) | The securities being registered hereby are offered in exchange for 6.80% Non-Cumulative Guaranteed Series 4 preferred securities previously sold in transactions exempt from registration under the Securities Act of 1933. The registration fee has been computed based on the face value of the securities pursuant to Rule 457 under the Securities Act. |
(2) | Pursuant to Rule 457(n) under the Securities Act of 1933, no separate fee is payable with respect to the guarantee. |
The information in this prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted. |
· | you must instruct your bank or broker to further instruct the Depository Trust Company (“DTC”) Participant through which your restricted Series 4 preferred securities are held to tender your restricted Series 4 preferred securities for exchange to DTC through the DTC Automated Tender Offer Program (“ATOP”) by 5:00 p.m., New York City time, on , 2007 (the “Exchange Offer Deadline”). |
Spanish Withholding Tax Requirements | 1 |
Where You Can Find More Information | 1 |
Enforceability of Certain Civil Liabilities | 2 |
Forward-Looking Statements | 2 |
Presentation of Financial Information | 4 |
Prospectus Summary | 5 |
The Exchange Series 4 Preferred Securities | 7 |
Risk Factors | 11 |
Use of Proceeds | 15 |
Management’s Discussion and Analysis of Financial Condition and Results of Operations | 16 |
Business | 17 |
Ratio of Earnings to Combined Fixed Charges | 17 |
Capitalization | 18 |
Selected consolidated financial information | 20 |
Recent Developments | 21 |
The exchange offer | 24 |
Management | 33 |
Description of the Exchange Series 4 Preferred Securities | 34 |
Description of the Guarantee | 41 |
Certain Relationships and Related Party Transactions | 46 |
Taxation | 47 |
Plan of Distribution | 57 |
Validity of the Exchange Series 4 Preferred Securities | 58 |
Experts | 59 |
INDEX TO FINANCIAL STATEMENTS | F-1 |
ANNEX A | A-1 |
ANNEX B | B-1 |
ANNEX C - Annual Report of Banco Santander Central Hispano, S.A. on Form 20-F for the year ended December 31, 2006, as filed with the SEC on July 2, 2007 | C-1 |
ANNEX D - Items 3 and 4 of the Periodic Report of Banco Santander Central Hispano, S.A. on Form 6-K for the three-month period ended March 31, 2007, as filed with the SEC on April 30, 2007 | D-1 |
· | exposure to various types of market risks; |
· | management strategy; |
· | capital expenditures; |
· | earnings and other targets; and |
· | asset portfolios. |
· | exposure to various types of market risks, principally including interest rate risk, foreign exchange rate risk and equity price risk; |
· | general economic or industry conditions in Spain, the United Kingdom, other European countries, Latin America, the United States and the other areas in which the Guarantor has significant business activities or investments; |
· | the effects of a decline in real estate prices, particularly in Spain and the UK; |
· | monetary and interest rate policies of the European Central Bank and various central banks; |
· | inflation or deflation; |
· | the effects of non-linear market behavior that cannot be captured by linear statistical models, such as the VaR/DCaR/ACaR model the Guarantor uses; |
· | changes in competition and pricing environments; |
· | the inability to hedge some risks economically; |
· | the adequacy of loss reserves; |
· | acquisitions or restructurings; |
· | changes in demographics, consumer spending or saving habits; and |
· | changes in competition and pricing environments as a result of the progressive adoption of the internet for conducting financial services and/or other factors. |
· | political stability in Spain, the United Kingdom, the United States, other European countries and Latin America; and |
· | changes in Spanish, UK, EU or other laws, regulations or taxes. |
· | the Guarantor’s ability to integrate successfully its acquisitions, including Abbey National Plc (“Abbey”), and the challenges inherent in diverting management’s focus and resources from other strategic opportunities and from operational matters while the Guarantor integrates these acquisitions; and |
· | the outcome of the Guarantor’s negotiations with business partners and governments. |
· | technical difficulties and the development and use of new technologies by the Guarantor and its competitors; |
· | the impact of changes in the composition of the Guarantor’s balance sheet on future net interest income; and |
· | potential losses associated with an increase in the level of substandard loans or non-performance by counterparties to other types of financial instruments. |
Securities Offered | The Issuer is offering up to 20,000,000 6.80% Non-Cumulative Guaranteed Series 4 Preferred Securities, par value $25 per security, of Santander Finance Preferred, S.A. Unipersonal, which have been registered under the Securities Act. |
The Exchange Offer | The Issuer is offering to issue the exchange Series 4 preferred securities (CUSIP No.80281R706 and ISIN No.US80281R7061) in exchange for a like principal amount of your restricted Series 4 preferred securities (CUSIP No. 80281R409 and ISIN No. US80281R4092). The Issuer is offering to issue the exchange Series 4 preferred securities to satisfy its obligations contained in the registration rights agreement entered into when the restricted Series 4 preferred securities were sold in transactions permitted by Rule 144A under the Securities Act and therefore not registered with the SEC. For procedures for tendering, see “The Exchange Offer.” |
Tenders, Exchange Offer Expiry Date, Withdrawal | The exchange offer will expire at 5:00 p.m. New York City time on , 2007 unless it is extended. If you decide to exchange your restricted Series 4 preferred securities for exchange Series 4 preferred securities, you must acknowledge that you are not engaging in, and do not intend to engage in, a distribution of the exchange Series 4 preferred securities. If you decide to tender your restricted Series 4 preferred securities in the exchange offer, you |
may withdraw them at any time prior to 5:00 p.m. New York City time on , 2007. If the Issuer decides for any reason not to accept any restricted Series 4 preferred securities for exchange, your restricted Series 4 preferred securities will be returned to you without expense to you promptly after the exchange offer expires. | |
Material U.S. Federal Income Tax Consequences | Your exchange of restricted Series 4 preferred securities for exchange Series 4 preferred securities in the exchange offer will not constitute a taxable exchange for U.S. federal income tax purposes. See “Taxation—Material U.S. Federal Income Tax Considerations” for the tax consequences of the exchange of restricted Series 4 preferred securities and the ownership of exchange Series 4 preferred securities. |
Spanish Tax Consequences | The exchange of restricted Series 4 preferred securities for exchange Series 4 preferred securities may give rise to imputed income under Spanish tax law. If the tax certification and exchange agent (the “Tax Certification and Exchange Agent”) does not receive on your behalf the beneficial owner identity and residence information required by Spanish tax law and set forth in Annex B (the “Beneficial Owner Exchange Information”), the Issuer and Guarantor will withhold Spanish withholding tax from the relevant distribution payment on your preferred securities as to which the required Beneficial Owner Exchange Information has not been provided at the rate of 18% of any such imputed income, and, if the amount of such distribution is insufficient to fund such withholding tax, your exchange Series 4 preferred securities will be sold to the extent necessary to fund such withholding tax. See “The Exchange Offer—Exchange Withholding Tax”, “Taxation—Spanish Tax Considerations” and Article II of Annex A. |
Use of Proceeds | The Issuer will not receive any proceeds from the issuance of the exchange Series 4 preferred securities in the exchange offer. |
Tax Certification and Exchange Agent | Acupay is the Tax Certification and Exchange Agent for the exchange offer. |
Failure to Tender Your restricted Series 4 preferred securities | If you fail to tender your restricted Series 4 preferred securities in the exchange offer, you will not have any further rights under the registration rights agreement, including any right to require the Issuer to register your restricted Series 4 preferred securities or to pay you distributions at a higher rate. |
· | you are not one of the Issuer’s or Guarantor’s “affiliates”, which is defined in Rule 405 of the Securities Act; |
· | you acquire the exchange Series 4 preferred securities in the ordinary course of your business; |
· | you do not have any arrangement or understanding with any person to participate in the distribution of the exchange Series 4 preferred securities; and |
· | you are not engaged in, and do not intend to engage in, a distribution of the exchange Series 4 preferred securities. |
· | you must represent that you do not have any arrangement with the Issuer, the Guarantor or any affiliate of the Issuer or the Guarantor to distribute the exchange Series 4 preferred securities; |
· | you must acknowledge that you will deliver a prospectus in connection with any resale of the exchange Series 4 preferred securities you receive from the Issuer in the exchange offer. By so acknowledging and by delivering a prospectus, you will not be deemed to admit that you are an “underwriter” within the meaning of the Securities Act; and |
· | you may use this prospectus, as it may be amended or supplemented from time to time, in connection with the resale of exchange Series 4 preferred securities received in exchange for restricted Series 4 preferred securities acquired by you as a result of market-making or other trading activities. |
Issuer | Santander Finance Preferred, S.A. Unipersonal |
Guarantor | Banco Santander Central Hispano, S.A. |
The exchange Series 4 preferred securities | Up to 20,000,000 6.80% Non-Cumulative Guaranteed Series 4 Preferred Securities, par value $25 per security of Santander Finance Preferred, S.A. Unipersonal, which have been registered under the Securities Act (CUSIP No. 80281R706 and ISIN No. US80281R7061). |
Distribution Payment Dates | February 21, May 21, August 21 and November 21 of each year, commencing . |
Liquidation Preference | $25.00 |
Redemption Price | $25.00 |
Guarantee | The Guarantor will fully and unconditionally guarantee the payment of Distributions, the Liquidation Distribution and the Redemption Price with respect to the exchange Series 4 preferred securities. See “Description of the Guarantee.” |
Ranking | The exchange Series 4 preferred securities will rank (a) junior to all liabilities of the Issuer including subordinated liabilities, (b) pari passu with each other and with any other series of Preferred Securities of the Issuer and (c) senior to the Issuer’s ordinary shares. The Guarantee will rank (a) junior to all liabilities of the Guarantor, including subordinated liabilities (other than any guarantee or contractual right expressly ranking equally with or subordinated to the Guarantee) (b) pari passu with the most senior Preferred Securities issued by the Guarantor and any obligations of the Guarantor under any guarantee issued by it relating to any Preferred Securities issued by any Subsidiary; and (c) senior to the Guarantor’s ordinary shares. |
“Preferred Securities” means (as the case may be) any preferred securities (participaciones preferentes) issued under Spanish Law 13/1985, or other securities or instruments equivalent to preferred securities issued by the Issuer, or by any other subsidiary of the Guarantor which are entitled to the benefit of a guarantee ranking pari passu with the Guarantor’s obligations under the Guarantee, or any such securities or instruments issued by the Guarantor and ranking pari passu with the Guarantor’s obligations under the | |
Guarantee. | |
Clearance and settlement | The exchange Series 4 preferred securities will be issued in book-entry form through the facilities of DTC for the accounts of its participants and will trade in DTC’s same day funds settlement system. Beneficial interests in exchange Series 4 preferred securities held in book-entry form will not be entitled to receive physical delivery of certificated notes, except in certain limited circumstances. For a description of certain factors relating to clearance and settlement, see “Description of exchange Series 4 preferred securities.” |
Spanish Withholding Tax Requirements | Under current Spanish laws and regulations, distributions made to a holder of the exchange Series 4 preferred securities by the Issuer will not be subject to taxation in Spain and no withholding tax will be required on such distribution, except in the case of distributions to (a) individual holders who are resident for tax purposes in Spain; (b) holders who receive payments through a Tax Haven (as defined in Royal Decree 1080/1991, of 5th July, as amended); and (c) holders who fail to comply with the tax certification procedures described in detail in Annexes A and B. In the case of (a), (b), or (c), the Issuer and Guarantor will withhold Spanish withholding tax at the rate of 18% from any payment in respect of the exchange Series 4 preferred securities, including in connection with any imputed income arising from an exchange. For a discussion of the tax consequences of, and limitations on, the payment of additional amounts with respect to any withholding taxes, see “Taxation—Spanish Tax Considerations.” |
Listing | Application will be made to list the exchange Series 4 preferred securities on the New York Stock Exchange. The restricted Series 4 preferred securities are currently listed on the London Stock Exchange and, upon exchange for exchange Series 4 preferred securities, the restricted Series 4 preferred securities will continue to be so listed unless all of the restricted Series 4 preferred securities are exchanged for exchange Series 4 preferred securities, in which case, the restricted Series 4 preferred securities will be delisted from the London Stock Exchange. |
Paying Agent | The Bank of New York. |
As of December 31, | ||||||||||||||||||||||||
2004 | 2005 | 2006 | ||||||||||||||||||||||
Including interests on deposits | Excluding interests on deposits | Including interests on deposits | Excluding interests on deposits | Including interests on deposits | Excluding interests on deposits | |||||||||||||||||||
Ratio of Earnings to Combined Fixed Charges1 | 1.39 | 1.90 | 1.31 | 1.82 | 1.35 | 1.77 |
As of March 31, 2007 | ||||
(millions of Euros) | ||||
Outstanding indebtedness | ||||
Short-term indebtedness | 23,562 | |||
Long-term indebtedness(1) | 232,233 | |||
Of which: Preferred securities(2) | 7,483 | |||
Total indebtedness | 255,796 | |||
Stockholders’ equity | ||||
Shares, stated value €0.50 each | 3,127 | |||
Shares held by consolidated companies | (102 | ) | ||
Reserves | 40,495 | |||
Dividends | (3,256 | ) | ||
Valuation adjustments | 2,384 | |||
Net income attributed to the Group(3) | 1,802 | |||
Total shareholders’ equity | 44,450 | |||
Preferred shares | 670 | |||
Minority interest | 2,055 | |||
Total capitalization and indebtedness | 302,971 |
(1) | Includes all outstanding bonds, debentures and subordinated debt (including preferred securities) as of March 31, 2007. |
(2) | Under the EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004, preferred securities, such as the exchange Series 4 preferred securities, are accounted for as subordinated debt. Nonetheless, for Bank of Spain regulatory capital purposes, such preferred securities are treated as Tier 1 capital instruments. |
(3) | For the period from January 1, 2007 to March 31, 2007. |
· | Abbey National Treasury Services issued CAD50 million, CHF275 million, €149.20 million, GBP425 million, HKD348 million, JPY31,400 million, and US$500.21 million of senior debt. |
· | Banco Santander Río, S.A. issued ARS450 million of senior debt. |
· | Banesto Financial Products plc, issued CZK 660 million, €322.84 million, GBP50 million, JPY2,900 million and US$3,034 million of senior debt. |
· | Santander Banespa Cayman issued BRL13.90 million and US$13.98 million of senior debt. |
· | Santander International Debt, S.A. Unipersonal issued €2,995 million of senior debt. |
· | Santander Issuances SAU issued €650 million of subordinated debt. |
· | Banco Santander Central Hispano, S.A. issued €3,000 million of Mortgage Debt. |
· | The Group redeemed CAD300 million, DEM81.55 million, €109 million, FRF500 million, GBP412.81 million, HKD459 million, ITL10,000 million, JPY11,600 million and US$2,379.22 million of senior debt issued by Abbey National Treasury Services. |
· | The Group redeemed €500 million of subordinated debt issued by Abbey National Plc. |
· | The Group redeemed UF1.2 million of senior debt issued by Banco Santander Chile. |
· | The Group redeemed €20 million of senior debt issued by Banesto Issuances Ltd. |
· | The Group redeemed €327.84 million and US$10 million of senior debt issued by Banesto Financial Products Plc. |
· | The Group redeemed €2.56 million of subordinated debt issued by Santander Consumer Bank AG. |
· | The Group redeemed €19.81 million of senior debt issued by Banco Santander Totta, S.A. |
· | The Group redeemed €11 million of subordinated debt issued by Banco Santander Totta, S.A. |
· | The Group redeemed €150 million of senior debt issued by Santander International Debt, S.A. Unipersonal. |
· | The Group redeemed €1,000 million and US$100 million of subordinated debt issued by SCH Issuances Ltd. |
· | The Group redeemed €1,000 million of senior debt issued by Banco Santander Central Hispano, S.A. |
· | The Group redeemed €4.99 million of subordinated debt issued by Totta Credito Especializado. |
· | On May 1, 2007, the Guarantor paid a fourth dividend for the 2006 fiscal year in the gross amount of €0.199913 per share. |
· | On June 25, 2007, the Guarantor announced that it will pay on August 1, 2007 a dividend on account of the earnings for the 2007 fiscal year in the gross amount of €0.12294 per share. |
March 31, | ||||||||
2006 | 2007 | |||||||
(in thousands of Euros, except percentages and per share data) | ||||||||
Interest and similar income | 9,020,025 | 10,411,971 | ||||||
Interest expense and similar charges | (6,137,047 | ) | (6,951,570 | ) | ||||
Income from equity instruments | 49,701 | 48,151 | ||||||
Net interest income | 2,932,679 | 3,508,552 | ||||||
Share of results from entities accounted for by the equity method | 130,554 | 60,216 | ||||||
Net fees and commissions(1) | 1,737,564 | 2,087,320 | ||||||
Insurance activity income | 66,310 | 95,108 | ||||||
Gains on financial transactions(2) | 408,396 | 492,008 | ||||||
Gross income | 5,275,503 | 6,243,204 | ||||||
Net income from non-financial activities(3) | 37,758 | 34,430 | ||||||
Other operating expenses(4) | (20,735 | ) | (33,920 | ) | ||||
General administrative expenses | (2,479,267 | ) | (2,660,711 | ) | ||||
Personnel | (1,492,513 | ) | (1,560,802 | ) | ||||
Other general and administrative expenses | (986,754 | ) | (1,099,909 | ) | ||||
Depreciation and amortization | (280,280 | ) | (307,836 | ) | ||||
Net operating income | 2,532,979 | 3,275,167 | ||||||
Impairment losses (net) | (511,823 | ) | (682,755 | ) | ||||
Net gains on disposal of investments in associates(5) | 731 | 3,586 | ||||||
Net results on other disposals, provisions, and other income(6) | (12,623 | ) | (93,163 | ) | ||||
Profit before tax | 2,009,264 | 2,502,835 | ||||||
Income tax | (433,163 | ) | (575,585 | ) | ||||
Profit from continuing operations | 1,576,101 | 1,927,250 | ||||||
Profit from discontinued operations | 78,973 | 0 | ||||||
Consolidated profit for the year | 1,655,074 | 1,927,250 | ||||||
Profit attributed to minority interests | 161,665 | 125,074 | ||||||
Profit attributed to the Group | 1,493,409 | 1,802,176 | ||||||
Per Share Information: | ||||||||
Average number of shares (thousands)(7) | 6,247,741 | 6,242,548 | ||||||
Basic earnings per share (in Euros) | 0.2390 | 0.2887 | ||||||
Diluted earnings per share (in Euros) | 0.2380 | 0.2874 |
March 31, | ||||||||
2006 | 2007 | |||||||
Consolidated Balance Sheet Data: | (in thousands of Euros, except percentages and per share data) | |||||||
Total assets | 814,737,822 | 844,240,207 | ||||||
Loans and advances to credit institutions(8) | 60,568,573 | 73,289,922 | ||||||
Loans and advances to customers (net)(8) | 451,397,397 | 530,811,346 | ||||||
Investment Securities(9) | 199,323,555 | 126,733,617 | ||||||
Investments: Associates | 3,076,276 | 4,911,891 | ||||||
Liabilities | ||||||||
Deposits from central banks and credit institutions(10) | 139,610,050 | 100,913,875 | ||||||
Customer deposits(10) | 304,254,995 | 327,110,904 | ||||||
Debt securities (10) | 160,699,885 | 222,440,737 | ||||||
Capitalization | ||||||||
Guaranteed subordinated debt excluding preferred securities(11) | 9,726,252 | 13,402,776 | ||||||
Secured subordinated debt | – | – | ||||||
Other subordinated debt | 12,788,126 | 12,469,781 | ||||||
Preferred securities(11) | 6,469,213 | 7,482,507 | ||||||
Preferred shares(11) | 1,293,238 | 670,438 | ||||||
Minority interest (including net income of the period) | 2,944,435 | 2,055,306 | ||||||
Stockholders’ equity(12) | 40,486,074 | 44,449,740 | ||||||
Total capitalization | 73,707,338 | 80,530,548 | ||||||
Stockholders’ equity per Share(12) | 6.48 | 7.12 | ||||||
Other managed funds | ||||||||
Mutual funds | 114,173,699 | 131,147,392 | ||||||
Pension funds | 29,190,102 | 29,996,354 | ||||||
Managed portfolio | 16,780,649 | 19,244,822 | ||||||
Total other managed funds | 160,144,450 | 180,388,568 | ||||||
Consolidated Ratios | ||||||||
Profitability Ratios: | ||||||||
Efficiency ratio(13) | 50.88 | % | 46.32 | % | ||||
Return on average total assets (ROA) | 0.81 | % | 0.92 | % | ||||
Return on average stockholders’ equity (ROE) | 17.12 | % | 18.48 | % | ||||
Capital Ratio: | ||||||||
Average stockholders’ equity to average total assets | 4.27 | % | 4.64 | % | ||||
Ratio of earnings to fixed charges(14) | ||||||||
Excluding interest on deposits | 1.69 | % | 1.73 | % | ||||
Including interest on deposits | 1.29 | % | 1.34 | % | ||||
Credit Quality Data | ||||||||
Allowances for impaired assets (excluding country risk) | 8,075,370 | 8,722,139 | ||||||
Allowances for impaired assets as a percentage of total loans | 1.76 | % | 1.62 | % | ||||
Impaired assets(15) | 4,369,871 | 4,936,052 | ||||||
Impaired assets as a percentage of total loans | 0.95 | % | 0.91 | % | ||||
Allowances for impaired assets as a percentage of impaired assets | 184.80 | % | 176.70 | % | ||||
Net loan charge-offs as a percentage of total loans | 0.07 | % | 0.10 | % |
(1) | Equals “Fee and commission income” less “Fee and commission expense” as stated in our consolidated financial statements. |
(2) | Equals the sum of “Gains/losses on financial assets and liabilities (net)” and “Exchange differences (net)” as stated in our consolidated financial statements. |
(3) | Equals the sum of “Sales and income from the provision of non-financial services” and “Cost of sales” as stated in our consolidated financial statements. |
(4) | Equals the sum of “Other operating income” and “Other operating expenses” as stated in our consolidated financial statements. |
(5) | Equals the sum of “Other gains: Gains on disposal of investments in associates” and “Other losses: Losses on disposal of investments in associates” as stated in our consolidated financial statements. |
(6) | Includes “Provisions (net)”, “Finance income from non-financial activities”, “Finance expense from non-financial activities”, “Other gains: Gains on disposal of tangible assets”, “Other gains: Other”, “Other losses: Losses on disposal of tangible assets” and “Other losses: Other” as stated in our consolidated financial statements. |
(7) | Average number of shares have been calculated on the basis of the weighted average number of shares outstanding in the relevant year, net of treasury stock. |
(8) | Equals the sum of the amounts included under the headings “Financial assets held for trading”, “Other financial assets at fair value through profit or loss” and “Loans and receivables” as stated in our consolidated financial statements. |
(9) | Equals the amounts included as “Debt instruments” and “Other equity instruments” under the headings “Financial assets held for trading”, “Other financial assets at fair value through profit or loss”, “Available-for-sale financial assets” and “Loans and receivables” as stated in our consolidated financial statements. |
(10) | Equals the sum of the amounts included under the headings “Financial liabilities held for trading”, “Other financial liabilities at fair value through profit or loss” and “Financial liabilities at amortized cost” included in Notes 20, 21 and 22 to our consolidated financial statements. |
(11) | In our consolidated financial statements preferred securities are included under “Subordinated liabilities” and preferred shares are stated as “Equity having the substance of a financial liability”. |
(12) | Equals the sum of the amounts included at the end of each year as “Own funds” and “Valuation adjustments” as stated in our consolidated financial statements. We have deducted the book value of treasury stock from stockholders’ equity. |
(13) | Efficiency ratio equals the sum of “General administrative expenses from financial activities”, “Depreciation and amortization costs” less “Offsetting fees” (see Note 48 to our consolidated financial statements), divided by the sum of “Gross income” and “Net income from non-financial activities” less “General administrative expenses from non-financial activities”. |
(14) | For the purpose of calculating the ratio of earnings to fixed charges, earnings consist of income from continuing operations before taxation and minority interests plus fixed charges and after deduction of the unremitted pre-tax income of companies accounted for by the equity method. Fixed charges consist of total interest expense, including or excluding interest on deposits as appropriate, and the proportion of rental expense deemed representative of the interest factor. Fixed charges include dividends and interest paid on preferred shares. |
(15) | Impaired assets reflect Bank of Spain classifications. Such classifications differ from the classifications applied by U.S. banks in reporting loans as non-accrual, past due, restructured and potential problem loans. |
· | use the Issuer’s and the Guarantor’s reasonable best efforts to prepare and, as soon as practicable within 180 days following November 21, 2006, file with the SEC an exchange offer registration statement, or the Exchange Offer Registration Statement, with respect to a proposed exchange offer and the issuance and delivery to the holders, in exchange for the restricted Series 4 preferred securities, of exchange Series 4 preferred securities having terms identical in all material respects to the restricted Series 4 preferred securities including the full, unconditional and irrevocable guarantee by the Guarantor, except that the exchange Series 4 preferred securities would not contain terms with respect to transfer restrictions and would not provide for liquidated damages under certain circumstances described in the registration rights agreement; |
· | use the Issuer’s and the Guarantor’s reasonable best efforts to cause the Exchange Offer Registration Statement to be declared effective under the Securities Act within 270 days of November 21, 2006; |
· | use the Issuer’s and the Guarantor’s reasonable best efforts to keep the Exchange Offer Registration Statement effective until the closing of the exchange offer; |
· | use the Issuer’s and the Guarantor’s reasonable best efforts to cause the exchange offer to be completed not later than 300 days following November 21, 2006; and |
· | provided that the exchange Series 4 preferred securities meet the minimum listing requirements of the New York Stock Exchange at the time an Exchange Offer Registration Statement is declared effective, use the Issuer’s and the Guarantor’s reasonable best efforts to list the exchange Series 4 preferred securities on the New York Stock Exchange within 30 days following an Exchange Offer Registration Statement being declared effective. |
· | When you tender to the Issuer restricted Series 4 preferred securities as provided below, including by causing the transmission of an Agent’s Message by DTC on your behalf to the Tax Certification and Exchange Agent, you will be deemed to represent and warrant to the Issuer that you have read and agree to all of the terms and conditions of the exchange offer, and the Issuer’s acceptance of the restricted Series 4 preferred securities will constitute a binding agreement between you and the Issuer upon the terms and subject to the conditions in this prospectus. |
· | For each restricted Series 4 preferred security surrendered to the Issuer in the exchange offer, the Issuer will give you one exchange Series 4 preferred security. |
· | The Issuer will keep the exchange offer open for not less than 20 business days, or longer if required by applicable law, after the date that the Issuer first mails notice of the exchange offer to the holders of the restricted Series 4 preferred securities. Acupay, on behalf of the Issuer, is sending this prospectus on or |
about the date of this prospectus to DTC, to DTC participants holding the restricted Series 4 preferred securities as of that date and to all known holders of restricted Series 4 preferred securities as of that date. |
· | The exchange offer expires at 5:00 p.m., New York City time, on _____________, 2007; provided, however, that the Issuer, in its sole discretion, may extend the period of time for which the exchange offer is open. The term “Exchange Offer Expiry Date” means 5:00 p.m., New York City time, on _____________, 2007 or, if extended by us, the latest time and date to which the exchange offer is extended. |
· | As of the date of this prospectus, $500,000,000.00 in aggregate principal amount of the restricted Series 4 preferred securities were outstanding. The exchange offer is not conditioned upon any minimum principal amount of restricted Series 4 preferred securities being tendered. |
· | The Issuer’s obligation to accept restricted Series 4 preferred securities for exchange in the exchange offer is subject to the conditions described in the section called “Conditions to the Exchange Offer” below. |
· | The Issuer expressly reserves the right, at any time, to extend the period of time during which the exchange offer is open, and thereby delay acceptance of any restricted Series 4 preferred securities, by giving oral or written notice of an extension to the Tax Certification and Exchange Agent and notice of that extension to the holders as described below. During any extension, all restricted Series 4 preferred securities previously tendered will remain subject to the exchange offer unless withdrawal rights are exercised. Any restricted Series 4 preferred securities not accepted for exchange for any reason will be returned without expense to the tendering holder as promptly as practicable after the expiration or termination of the exchange offer. |
· | The Issuer expressly reserves the right to amend or terminate the exchange offer, and not to accept for exchange any restricted Series 4 preferred securities that the Issuer has not yet accepted for exchange, if any of the conditions of the exchange offer specified below under “Conditions to the Exchange Offer” are not satisfied. |
· | The Tax Certification and Exchange Agent on behalf of the Issuer will give oral or written notice of any extension, amendment, termination or non-acceptance described above to holders of the restricted Series 4 preferred securities as promptly as practicable. If the Issuer extends the Exchange Offer Expiry Date, the Tax Certification and Exchange Agent on behalf of the Issuer will give notice by means of a press release or other public announcement no later than 9:00 a.m., New York City time, on the business day after the previously scheduled Exchange Offer Expiry Date. Without limiting the manner in which we may choose to make any public announcement and subject to applicable law, we will have no obligation to publish, advertise or otherwise communicate any public announcement other than by issuing a release to the Dow Jones News Service. |
· | Holders of restricted Series 4 preferred securities do not have any appraisal or dissenters’ rights in connection with the exchange offer. |
· | Restricted Series 4 preferred securities which are not tendered for exchange or are tendered but not accepted in connection with the exchange offer will remain outstanding, but will be subject to transfer restrictions and will not be entitled to any further registration rights under the registration rights agreement. |
· | The Issuer intends to conduct the exchange offer in accordance with the applicable requirements of the Securities Act and the Exchange Act and the rules and regulations of the SEC thereunder. |
· | By tendering to the Issuer restricted Series 4 preferred securities, including causing the transmission of an Agent’s Message by DTC on your behalf to the Tax Certification and Exchange Agent, you will be making the representations described below to the Issuer. See “—Resale of the exchange Series 4 preferred securities.” |
· | the quantity of the restricted Series 4 preferred securities to be withdrawn; and |
· | the name and number of the account at DTC to be credited with the withdrawn restricted Series 4 preferred securities and otherwise comply with the procedures of that facility. |
Via email: info@acupaysystem.com | |
By post, telephone or fax: | |
IN LONDON: | IN NEW YORK: |
Acupay System LLC Attention: Nina Santa-Maria First Floor 28 Throgmorton Street London EC2N 2AN United Kingdom Tel. 44-(0)-207-382-0340 Fax. 44-(0)-207-256-7571 | Acupay System LLC Attention: Sabrina Cruz 30 Broad Street – 46th Floor New York, N.Y. 10004 USA Tel. 1-212-422-1222 Fax. 1-212-422-0790 |
· | give the paying agent irrevocable instructions and authority to pay the redemption price to the holders of the exchange Series 4 preferred securities. |
· | distributions on the exchange Series 4 preferred securities called for redemption shall cease; |
· | such exchange Series 4 preferred securities will no longer be considered outstanding; and |
· | the holders will no longer have any rights as holders except the right to receive the redemption price. |
· | $25.00 per exchange Series 4 preferred security, plus |
· | an amount equal to the accrued and unpaid Distributions for the then-current Distribution Period up to the date of payment. |
· | of all Preferred Securities of the Issuer; |
· | of all Preferred Securities of other subsidiaries of the Guarantor; and |
· | of Preferred Securities issued by the Guarantor, |
· | ranked junior to all liabilities of the Guarantor; |
· | ranked pari passu with the most senior Preferred Securities which could have been issued by the Guarantor (if any); and |
· | ranked senior to the Guarantor’s ordinary shares. |
· | appoint two additional members of the board of directors of the Issuer; |
· | remove any such board member from office; and |
· | appoint another person(s) in place of such member(s). |
· | written notice given to the Issuer by the holders of a majority in liquidation preference; or |
· | an ordinary resolution passed by the holders of a majority in liquidation preference of the securities present in person or by proxy at a special general meeting of the holders convened for that purpose. |
· | with the consent in writing of the holders of at least two-thirds of the outstanding exchange Series 4 preferred securities; or |
· | with the sanction of a special resolution passed at a separate general meeting by the holders of at least two-thirds of the outstanding exchange Series 4 preferred securities. |
· | take any action required to issue additional Preferred Securities or authorize, create and issue one or more other series of Preferred Securities of the Issuer ranking equally with the exchange Series 4 preferred securities, as to the participation in the profits and assets of the Issuer, without limit as to the amount; or |
· | take any action required to authorize, create and issue one or more other classes or series of shares of the Issuer ranking junior to the Preferred Securities, as to the participation in the profits or assets of the Issuer. |
· | will be entitled to receive notice of and to attend the general meeting of shareholders called to adopt this resolution; and |
· | will be entitled to hold a separate and previous general meeting of holders and vote together as a single class without regard to series on such resolution, but not on any other resolution. |
· | the liquidation, dissolution or, winding up of the Guarantor; or |
· | a reduction in shareholders equity of the Guarantor under Article 169 of the Corporations Law of Spain. |
· | the date, time and place of the meeting; |
· | a description of any resolution to be proposed for adoption at the meeting at which the holders are entitled to vote; and |
· | instructions for the delivery of proxies. |
· | any accrued and unpaid Distributions; |
· | the redemption price for any exchange Series 4 preferred securities redeemed by the Issuer; and |
· | the liquidation distribution per exchange Series 4 preferred security described under “Description of the exchange Series 4 preferred securities—Rights upon Liquidation.” |
· | junior to all liabilities of the Guarantor; |
· | pari passu with the most senior Preferred Securities which could have been issued by the Guarantor (if any); and |
· | senior to the Guarantor’s ordinary shares. |
· | ranks junior to all liabilities of the Guarantor, including subordinated liabilities (other than any guarantee or contractual right expressly ranking equally with or junior to the Guarantee); |
· | ranks pari passu with the most senior Preferred Securities which could have been issued by the Guarantor, if any, and any obligations of the Guarantor under any guarantee issued by it relating to any Preferred Securities issued by any subsidiary; and |
· | ranks senior to the Guarantor’s ordinary shares. |
· | no dividends (other than in the form of Guarantor’s ordinary shares or other shares of the Guarantor ranking junior to the obligations of the Guarantor under the Guarantee) will be declared or paid or set apart for payment, or other distribution made, upon the Guarantor’s ordinary shares or any other shares of the Guarantor ranking junior to the Guarantee; and |
· | the Guarantor will not redeem, repurchase or otherwise acquire for any consideration (including any amounts to be paid or made available for a sinking fund for redemption of any Guarantor ordinary shares), the Guarantor’s ordinary shares or any other shares of the Guarantor ranking junior to the obligations of the Guarantor under the Guarantee (except by conversion into or exchange for shares of the Guarantor ranking junior to the Guarantee), |
· | payment of the redemption price of all outstanding exchange Series 4 preferred securities and registered Series 4 preferred securities covered by the Guarantee; |
· | purchase and cancellation of all exchange Series 4 preferred securities and registered Series 4 preferred securities; or |
· | payment of the Series 4 preferred securities liquidation distribution. |
Aruba, | ||||
British Virgin Islands, | Jamaica, | Republic of Trinidad and Tobago, | ||
Cayman Islands, | Kingdom of Bahrain, | Republic of Vanuatu, | ||
Channel Islands (Jersey and Guernsey), | Macao, | Saint Lucia, | ||
Falkland Islands, | Marianas Islands, | Saint Vincent & the Grenadines | ||
Fiji Islands, | Mauritius, | Solomon Islands, | ||
Gibraltar, | Montserrat, | Sultanate of Brunei, | ||
Grand Duchy of Luxembourg Area (only as regards the income received by the Companies referred to in paragraph 1 of the Protocol annexed to the Avoidance of Double Taxation Treaty, dated 3rd June 1986 entered into by Spain and Luxembourg), | Netherlands Antilles, Principality of Andorra, Principality of Liechtenstein, Principality of Monaco, Republic of Cyprus, Republic of Lebanon, Republic of Liberia, | Sultanate of Oman, The Bahamas, The Bermuda Islands, The Cook Islands, The Island of Anguilla, The Island of Barbados, The Republic of Dominica, | ||
Grenada, | Republic of Nauru, | Turks and Caicos Islands, and | ||
Hashemite Kingdom of Jordan, | Republic of Panama, | Virgin Islands (of the United | ||
Hong-Kong, | Republic of San Marino, | States). | ||
Islands of Antigua and Barbuda, | Republic of Seychelles, | |||
Isle of Man, | Republic of Singapore, |
Via email: info@acupaysystem.com | |
By post, telephone or fax: |
IN LONDON: | IN NEW YORK: |
Acupay System LLC Attention: Nina Santa-Maria First Floor 28 Throgmorton Street London EC2N 2AN United Kingdom Tel. 44-(0)-207-382-0340 Fax. 44-(0)-207-256-7571 | Acupay System LLC Attention: Sabrina Cruz 30 Broad Street – 46th Floor New York, N.Y. 10004 USA Tel. 1-212-422-1222 Fax. 1-212-422-0790 |
· | regulated investment companies; |
· | real estate investment trusts; |
· | certain financial institutions; |
· | dealers and certain traders in securities or foreign currencies; |
· | insurance companies; |
· | persons holding exchange Series 4 preferred securities as part of a hedge, straddle, conversion or other integrated transaction; |
· | persons whose functional currency for U.S. federal income tax purposes is not the U.S. dollar; |
· | partnerships or other entities classified as partnerships for U.S. federal income tax purposes; |
· | persons liable for the alternative minimum tax; |
· | tax-exempt organizations; or |
· | persons that own or are deemed to own 25% or more of the Issuer’s capital. |
· | in the over-the-counter market; |
· | in negotiated transactions; |
· | through the writing of options on the exchange Series 4 preferred securities or |
· | a combination of those methods of resale; |
· | directly to purchasers or |
· | to or through brokers or dealers who may receive compensation in the form of commissions or concessions from any broker-dealer or the purchasers of any exchange Series 4 preferred securities. |
Modelo de certificación en inversiones por cuenta propia |
Form of Certificate for Own Account Investments |
(nombre) (name) |
(domicilio) (address) |
(TIN) (tax identification number) |
(en calidad de), en nombre y representación de la Entidad abajo señalada a los efectos previstos en el artículo 12.3.a) del Real Decreto 2281/1998, |
(function), in the name and on behalf of the Entity indicated below, for the purposes of article 12.3.a) of Royal Decree 2281/1998, |
CERTIFICO: |
I CERTIFY: |
1. Que el nombre o razón social de la Entidad que represento es: |
that the name of the Entity I represent is: |
2. Que su residencia fiscal es la siguiente: |
that its residence for tax purposes is: |
3. Que la Entidad que represento está inscrita en el Registro de |
that the institution I represent is recorded in the Register of |
(pais, estado, ciudad), con el número |
(country, state, city), under number |
4. Que la Entidad que represento está sometida a la supervisión de (Organo supervisor) |
that the institution I represent is supervised by (Supervision body) |
en virtud de(normativa que lo regula) |
under (governing rules). |
Todo ello en relación con: |
All the above in relation to: |
Identificación de los valores poseidos por cuenta propia |
Identification of securities held on own account: |
Importe de los rendimientos |
Amount of income |
Lo que certifico en a de de 20 |
I certify the above in [location] on the [day] of [month] of [year] |
Modelo de certificación en inversiones por cuenta ajena |
Form of Certificate for Third Party Investments |
(nombre) (name) |
(domicilio) (address) |
(TIN) (tax identification number) |
(en calidad de), en nombre y representación de la Entidad abajo señalada a los efectosprevistos en el artículo 12.3.b) y c) del Real Decreto 2281/1998, |
(function), in the name and on behalf of the Entity indicated below, for the purposes of article 12.3.b) and c) of Royal Decree 2281/1998, |
CERTIFICO: |
I CERTIFY: |
1. Que el nombre o razón social de la Entidad que represento es: |
that the name of the Entity I represent is: |
2. Que su residencia fiscal es la siguiente: |
that its residence for tax purposes is: |
3. Que la Entidad que represento está inscrita en el Registro de |
that the institution I represent is recorded in the Register of |
(pais, estado, ciudad), con el número |
(country, state, city), under number |
4. Que la Entidad que represento está sometida a la supervisión de (Organo supervisor) |
that the institution I represent is supervised by (Supervision body) |
en virtud de (normativa que lo regula) |
under (governing rules). |
5. Que, de acuerdo con los Registros de la Entidad que represento, la relación de titulares adjunta a la presente certificación, comprensiva del nombre de cada uno de los titulares no residentes, su país de residencia y el importe de los correspondientes rendimientos, es exacta, y no incluye personas o Entidades residentes en España o en los países o territorios que tienen en España la consideración de paraíso fiscal de acuerdo con las normas reglamentarias en vigor. |
That, according to the records of the Entity I represent, the list of beneficial owners hereby attached, including the names of all the non-resident holders, their country of residence and the amounts and the relevant amounts is accurate, and does not include person(s) or institution(s) resident either in Spain or in tax haven countries or |
territories as defined under Spanish applicable regulations. |
Lo que certifico en a de de 20 |
I certify the above in [location] on the [day] of [month] of [year] |
RELACIÓN ADJUNTA A CUMPLIMENTAR: |
TO BE ATTACHED: |
Identificación de los valores: |
Identification of the securities |
Listado de titulares: |
List of beneficial owners: |
Nombre/País de residencia/Importe de los rendimientos |
Name/Country of residence/Amount of income |
Certificate for application of the exemption on withholding to Spanish corporate income taxpayers and to permanent establishments of non-resident income taxpayers |
(nombre) (name) |
(domicilio) (address) |
(TIN) (tax identification number) |
(en calidad de), en nombre y representación de la Entidad abajo señalada a los efectos previstos en el artículo 59.s) del Real Decreto 1777/2004, |
(function), in the name and on behalf of the Entity indicated below, for the purposes of article 59.s) of Royal Decree 1777/2004, |
CERTIFICO: |
I CERTIFY: |
1. Que el nombre o razón social de la Entidad que represento es: |
that the name of the Entity I represent is: |
2. Que su residencia fiscal es la siguiente: |
that its residence for tax purposes is: |
3. Que la Entidad que represento está inscrita en el Registro de |
that the institution I represent is recorded in the Register of |
(pais, estado, ciudad), con el número |
(country, state, city), under number |
4. Que la Entidad que represento está sometida a la supervisión de (Organo supervisor) |
that the institution I represent is supervised by (Supervision body) |
en virtud de (normativa que lo regula) |
under (governing rules). |
5. Que, a través de la Entidad que represento, los titulares incluidos en la relacion adjunta, sujetos pasivos del Impuesto sobre Sociedades y establecimientos permanentes en España de sujetos pasivos del Impuesto sobre la Renta de no Residentes, son perceptores de los rendimientos indicados. |
That, through the Entity I represent, the list of holders hereby attached, are Spanish Corporate Income Tax payers and permanent establishments in Spain of Non-Resident Income Tax taxpayers, and are recipients of the |
referred income. |
6. Que la Entidad que represento conserva, a disposición del emisor, fotocopia de la tarjeta acreditativa del número de identificaciôn fiscal de los titulares incluidos en la relación. |
That the Entity I represent keeps, at the disposal of the Issuer, a photocopy of the card evidencing the Fiscal Identification Number of the holders included in the attached list. |
Lo que certifico en a de de 20 |
I certify the above in [location] on the [day] of [month] of [year] |
RELACION ADJUNTA: |
TO BE ATTACHED: |
Identificación de los valores: |
Identification of the securities |
Razón social/Domicilio/Número de identificación fiscal/Número de valores/Rendimientos brutos/ Retención al [●]% |
Name/Domicile/Fiscal Identification Number/Number of securities/Gross income/Amount withheld at the applicable rate. |
Table of Contents
o | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) | |
OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
OR | ||
þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) | |
OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the fiscal year ended December 31, 2006 | ||
OR | ||
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) | |
OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
for the transition period from to | ||
Commission file number 001-12518 | ||
o | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) | |
OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
Date of event requiring this shell company report |
Name of each exchange | ||
Title of each class | on which registered | |
American Depositary Shares, each representing the right to receive one Share of Capital Stock of Banco Santander Central Hispano, S.A., par value Euro 0.50 each | New York Stock Exchange | |
Shares of Capital Stock of Banco Santander Central Hispano, S.A., par value Euro 0.50 each | New York Stock Exchange | |
Non-cumulative Guaranteed Preferred Stock of Santander Finance Preferred, S.A. Unipersonal, Series 1 | New York Stock Exchange | |
Guarantee of Non-cumulative Guaranteed Preferred Stock of Santander Finance Preferred, S.A. Unipersonal |
* | Banco Santander Central Hispano Shares are not listed for trading, but only in connection with the registration of the American Depositary Shares, pursuant to requirements of the New York Stock Exchange. |
Non-cumulative Preferred Securities, Series 1 7,600,000 |
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Page | ||||||
Presentation of Financial and Other Information | 3 | |||||
Cautionary Statement Regarding Forward-Looking Statements | 4 | |||||
PART I | ||||||
ITEM 1. | 6 | |||||
ITEM 2. | 6 | |||||
ITEM 3. | 6 | |||||
6 | ||||||
12 | ||||||
12 | ||||||
12 | ||||||
ITEM 4. | 16 | |||||
16 | ||||||
23 | ||||||
76 | ||||||
76 | ||||||
ITEM 4A. | 76 | |||||
ITEM 5. | 77 | |||||
83 | ||||||
106 | ||||||
107 | ||||||
107 | ||||||
108 | ||||||
109 | ||||||
ITEM 6. | 110 | |||||
110 | ||||||
116 | ||||||
128 | ||||||
138 | ||||||
140 | ||||||
ITEM 7. | 141 | |||||
141 | ||||||
141 | ||||||
142 | ||||||
ITEM 8. | 143 | |||||
143 | ||||||
145 |
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ITEM 9. | 146 | |||||||
146 | ||||||||
147 | ||||||||
147 | ||||||||
151 | ||||||||
151 | ||||||||
152 | ||||||||
ITEM 10. | 152 | |||||||
152 | ||||||||
152 | ||||||||
158 | ||||||||
159 | ||||||||
159 | ||||||||
163 | ||||||||
163 | ||||||||
163 | ||||||||
163 | ||||||||
ITEM 11. | 164 | |||||||
164 | ||||||||
165 | ||||||||
168 | ||||||||
169 | ||||||||
190 | ||||||||
197 | ||||||||
198 | ||||||||
199 | ||||||||
ITEM 12. | 216 | |||||||
216 | ||||||||
216 | ||||||||
216 | ||||||||
216 | ||||||||
PART II | ||||||||
ITEM 13. | 217 | |||||||
ITEM 14. | 217 | |||||||
217 | ||||||||
ITEM 15. | 217 | |||||||
ITEM 16. | ||||||||
219 | ||||||||
219 | ||||||||
220 | ||||||||
220 | ||||||||
221 | ||||||||
PART III | ||||||||
ITEM 17. | 222 | |||||||
ITEM 18. | 222 | |||||||
ITEM 19. | 222 | |||||||
Exhibit 1.1 | ||||||||
Exhibit 1.2 | ||||||||
Exhibit 4.1 | ||||||||
Exhibit 12.1 | ||||||||
Exhibit 12.2 | ||||||||
Exhibit 12.3 | ||||||||
Exhibit 13.1 | ||||||||
Exhibit 15.1 |
2
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3
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• | exposure to various types of market risks; | ||
• | management strategy; | ||
• | capital expenditures; | ||
• | earnings and other targets; and | ||
• | asset portfolios. |
• | exposure to various types of market risks, principally including interest rate risk, foreign exchange rate risk and equity price risk; | ||
• | general economic or industry conditions in Spain, the United Kingdom, other European countries, Latin America and the other areas in which we have significant business activities or investments; | ||
• | the effects of a decline in real estate prices, particularly in Spain and the UK; | ||
• | monetary and interest rate policies of the European Central Bank and various central banks; | ||
• | inflation or deflation; | ||
• | the effects of non-linear market behavior that cannot be captured by linear statistical models, such as the VaR/DCaR/ACaR model we use; | ||
• | changes in competition and pricing environments; | ||
• | the inability to hedge some risks economically; | ||
• | the adequacy of loss reserves; | ||
• | acquisitions, including our proposed acquisition of certain assets of ABN AMRO Holding N.V. (see Item 4. Information on the Company—A. History and development of the company—Principal Capital Expenditures and Divestitures—Acquisitions, Dispostions, Reorganizations—Recent Events—ABN AMRO Holding N.V. (“ABN AMRO”)), or restructurings; | ||
• | changes in demographics, consumer spending or saving habits; and | ||
• | changes in competition and pricing environments as a result of the progressive adoption of the internet for conducting financial services and/or other factors. |
4
Table of Contents
• | political stability in Spain, the United Kingdom, other European countries and Latin America; and | ||
• | changes in Spanish, UK, EU or foreign laws, regulations or taxes. |
• | our ability to integrate successfully our acquisitions and the challenges inherent in diverting management’s focus and resources from other strategic opportunities and from operational matters while we integrate these acquisitions; and | ||
• | the outcome of our negotiations with business partners and governments. |
• | technical difficulties and the development and use of new technologies by us and our competitors; | ||
• | the impact of changes in the composition of our balance sheet on future net interest income; and | ||
• | potential losses associated with an increase in the level of substandard loans or non-performance by counterparties to other types of financial instruments. |
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6
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7
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Consolidated Income Statement Data | Year Ended December 31, | |||||||||||
2004 | 2005 | 2006 | ||||||||||
(in thousands of euros, except percentages and per share data) | ||||||||||||
Interest and similar income | 17,444,350 | 33,098,866 | 36,840,896 | |||||||||
Interest expense and similar charges | (10,271,884 | ) | (22,764,963 | ) | (24,757,133 | ) | ||||||
Income from equity instruments | 389,038 | 335,576 | 404,038 | |||||||||
Net interest income | 7,561,504 | 10,669,479 | 12,487,801 | |||||||||
Share of results from entities accounted for by the equity method | 449,036 | 619,157 | 426,921 | |||||||||
Net fees and commissions (1) | 4,727,232 | 6,256,312 | 7,223,264 | |||||||||
Insurance activity income | 161,374 | 226,677 | 297,851 | |||||||||
Gains on financial transactions (2) | 1,099,795 | 1,561,510 | 2,179,537 | |||||||||
Gross income | 13,998,941 | 19,333,135 | 22,615,374 | |||||||||
Net income from non-financial activities (3) | 118,308 | 156,178 | 118,913 | |||||||||
Other operating expenses (4) | (61,974 | ) | (89,540 | ) | (119,352 | ) | ||||||
General administrative expenses | (6,790,485 | ) | (9,473,116 | ) | (10,095,417 | ) | ||||||
Personnel | (4,296,171 | ) | (5,675,740 | ) | (6,045,447 | ) | ||||||
Other general and administrative expenses | (2,494,314 | ) | (3,797,376 | ) | (4,049,970 | ) | ||||||
Depreciation and amortization | (834,112 | ) | (1,017,335 | ) | (1,150,770 | ) | ||||||
Net operating income | 6,430,678 | 8,909,322 | 11,368,748 | |||||||||
Impairment losses (net) | (1,847,294 | ) | (1,801,964 | ) | (2,550,459 | ) | ||||||
Net gains on disposal of investments in associates (5) | 30,891 | 1,298,935 | 271,961 | |||||||||
Net results on other disposals, provisions, and other income (6) | (227,002 | ) | (606,618 | ) | 59,767 | |||||||
Profit before tax | 4,387,273 | 7,799,675 | 9,150,017 | |||||||||
Income tax | (525,824 | ) | (1,274,738 | ) | (2,293,638 | ) | ||||||
Profit from continuing operations | 3,861,449 | 6,524,937 | 6,856,379 | |||||||||
Profit from discontinued operations | 134,785 | 224,833 | 1,389,374 | |||||||||
Consolidated profit for the year | 3,996,234 | 6,749,770 | 8,245,753 | |||||||||
Profit attributed to minority interests | 390,364 | 529,666 | 649,806 | |||||||||
Profit attributed to the Group | 3,605,870 | 6,220,104 | 7,595,947 | |||||||||
Per Share Information: | ||||||||||||
Average number of shares (thousands) (7) | 4,950,498 | 6,240,611 | 6,248,376 | |||||||||
Basic earnings per share (in euros) | 0.7284 | 0.9967 | 1.2157 | |||||||||
Basic earnings per share — continued operations (in euros) | 0.7122 | 0.9735 | 1.0271 | |||||||||
Diluted earnings per share (in euros) | 0.7271 | 0.9930 | 1.2091 | |||||||||
Dividends paid (in euros) | 0.33 | 0.42 | 0.52 | |||||||||
Dividends paid (in US$) | 0.39 | 0.49 | 0.65 |
8
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Consolidated Balance Sheet Data: | Year Ended December 31, | |||||||||||
2004 | 2005 | 2006 | ||||||||||
(in thousands of euros, except percentages and per share data) | ||||||||||||
Total assets | 664,486,300 | 809,106,914 | 833,872,715 | |||||||||
Loans and advances to credit institutions (8) | 58,379,774 | 59,773,022 | 60,174,538 | |||||||||
Loans and advances to customers (net) (8) | 369,350,064 | 435,828,795 | 523,345,864 | |||||||||
Investment Securities (9) | 138,753,764 | 203,938,360 | 136,760,433 | |||||||||
Investments: Associates | 3,747,564 | 3,031,482 | 5,006,109 | |||||||||
Liabilities | ||||||||||||
Deposits from central banks and credit institutions (10) | 83,750,339 | 148,622,407 | 113,035,937 | |||||||||
Customer deposits (10) | 283,211,616 | 305,765,280 | 331,222,601 | |||||||||
Debt securities (10) | 113,838,603 | 148,840,346 | 204,069,390 | |||||||||
Capitalization | ||||||||||||
Guaranteed Subordinated debt excluding preferred securities (11) | 9,369,939 | 8,973,699 | 11,186,480 | |||||||||
Secured Subordinated debt | 508,039 | – | – | |||||||||
Other Subordinated debt | 12,300,179 | 13,016,989 | 12,399,771 | |||||||||
Preferred securities (11) | 5,292,016 | 6,772,768 | 6,836,570 | |||||||||
Preferred shares (11) | 2,124,222 | 1,308,847 | 668,328 | |||||||||
Minority interest (including net income of the period) | 2,085,316 | 2,848,223 | 2,220,743 | |||||||||
Stockholders’ equity (12) | 34,414,942 | 39,778,476 | 44,851,559 | |||||||||
Total capitalization | 66,094,652 | 72,699,002 | 78,163,451 | |||||||||
Stockholders’ Equity per Share (12) | 6.95 | 6.37 | 7.18 | |||||||||
Other managed funds | ||||||||||||
Mutual funds | 97,837,724 | 109,480,095 | 119,838,418 | |||||||||
Pension funds | 21,678,522 | 28,619,183 | 29,450,103 | |||||||||
Managed portfolio | 8,998,388 | 14,746,329 | 17,835,031 | |||||||||
Total other managed funds | 128,514,634 | 152,845,607 | 167,123,552 | |||||||||
Consolidated Ratios | ||||||||||||
Profitability Ratios: | ||||||||||||
Net Yield (13) | 2.21 | % | 1.68 | % | 1.67 | % | ||||||
Efficiency ratio (14) | 52.76 | % | 52.82 | % | 48.53 | % | ||||||
Return on average total assets (ROA) | 1.01 | % | 0.91 | % | 1.00 | % | ||||||
Return on average stockholders’ equity (ROE) | 19.74 | % | 19.86 | % | 21.39 | % | ||||||
Capital Ratio: | ||||||||||||
Average stockholders’ equity to average total assets | 4.62 | % | 4.24 | % | 4.36 | % | ||||||
Ratio of earnings to fixed charges (15) | ||||||||||||
Excluding interest on deposits | 1.90 | % | 1.82 | % | 1.77 | % | ||||||
Including interest on deposits | 1.39 | % | 1.31 | % | 1.35 | % | ||||||
Credit Quality Data | ||||||||||||
Allowances for impaired assets (excluding country risk) | 6,813,354 | 7,902,225 | 8,626,937 | |||||||||
Allowances for impaired assets as a percentage of total loans | 1.81 | % | 1.78 | % | 1.62 | % | ||||||
Impaired assets (16) | 4,114,691 | 4,341,500 | 4,607,547 | |||||||||
Impaired assets as a percentage of total loans | 1.09 | % | 0.98 | % | 0.87 | % | ||||||
Allowances for impaired assets as a percentage of impaired assets | 165.59 | % | 182.02 | % | 187.23 | % | ||||||
Net loan charge-offs as a percentage of total loans | 0.16 | % | 0.23 | % | 0.34 | % |
(1) | Equals “Fee and commission income” less “Fee and commission expense” as stated in our consolidated financial statements. | |
(2) | Equals the sum of “Gains/losses on financial assets and liabilities (net)” and “Exchange differences (net)” as stated in our consolidated financial statements. | |
(3) | Equals the sum of “Sales and income from the provision of non-financial services” and “Cost of sales” as stated in our consolidated financial statements. |
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(4) | Equals the sum of “Other operating income” and “Other operating expenses” as stated in our consolidated financial statements. | |
(5) | Equals the sum of “Other gains: Gains on disposal of investments in associates” and “Other losses: Losses on disposal of investments in associates” as stated in our consolidated financial statements. | |
(6) | Includes “Provisions (net)”, “Finance income from non-financial activities”, “Finance expense from non-financial activities”, “Other gains: Gains on disposal of tangible assets”, “Other gains: Other”, “Other losses: Losses on disposal of tangible assets” and “Other losses: Other” as stated in our consolidated financial statements. | |
(7) | Average number of shares have been calculated on the basis of the weighted average number of shares outstanding in the relevant year, net of treasury stock. | |
(8) | Equals the sum of the amounts included under the headings “Financial assets held for trading”, “Other financial assets at fair value through profit or loss” and “Loans and receivables” as stated in our consolidated financial statements. | |
(9) | Equals the amounts included as “Debt instruments” and “Other equity instruments” under the headings “Financial assets held for trading”, “Other financial assets at fair value through profit or loss”, “Available-for-sale financial assets” and “Loans and receivables” as stated in our consolidated financial statements. | |
(10) | Equals the sum of the amounts included under the headings “Financial liabilities held for trading”, “Other financial liabilities at fair value through profit or loss” and “Financial liabilities at amortized cost” included in Notes 20, 21 and 22 to our consolidated financial statements. | |
(11) | In our consolidated financial statements preferred securities are included under “Subordinated liabilities” and preferred shares are stated as “Equity having the substance of a financial liability”. | |
(12) | Equals the sum of the amounts included at the end of each year as “Own funds” and “Valuation adjustments” as stated in our consolidated financial statements. We have deducted the book value of treasury stock from stockholders’ equity. | |
(13) | Net yield is the total of net interest income (including dividends on equity securities) divided by average earning assets. See “Item 4 Information on the Company—B. Business Overview—Financial Management and Equity Stakes—Assets—Earning Assets—Yield Spread”. | |
(14) | Efficiency ratio equals the sum of “General administrative expenses from financial activities”, “Depreciation and amortization costs” less “Offsetting fees” (see Note 48 to our consolidated financial statements), divided by the sum of “Gross income” and “Net income from non-financial activities” less “General administrative expenses from non-financial activities”. | |
(15) | For the purpose of calculating the ratio of earnings to fixed charges, earnings consist of income from continuing operations before taxation and minority interests plus fixed charges and after deduction of the unremitted pre-tax income of companies accounted for by the equity method. Fixed charges consist of total interest expense, including or excluding interest on deposits as appropriate, and the proportion of rental expense deemed representative of the interest factor. Fixed charges include dividends and interest paid on preferred shares. | |
(16) | Impaired assets reflect Bank of Spain classifications. Such classifications differ from the classifications applied by U.S. banks in reporting loans as non-accrual, past due, restructured and potential problem loans. See “Item 4. Information on the Company—B. Business Overview—Financial Management and Equity Stakes—Classified Assets—Bank of Spain Classification Requirements”. |
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The following table shows net income, stockholders’ equity, total assets and certain ratios on a U.S. GAAP basis. |
Year Ended December 31, | ||||||||||||||||||||
U.S. GAAP | 2002 | 2003 | 2004 | 2005 | 2006 | |||||||||||||||
(in thousands of euros, except ratios and per share data) | ||||||||||||||||||||
Net income (1) | 2,286,959 | 2,264,332 | 3,940,866 | 6,318,460 | 7,414,571 | |||||||||||||||
Of which: | ||||||||||||||||||||
Continuing operations | 2,286,959 | 2,264,332 | 3,860,818 | 6,173,425 | 6,395,747 | |||||||||||||||
Discontinued operations | — | — | 80,048 | 145,035 | 1,018,824 | |||||||||||||||
Stockholders’ equity (1)(2) | 23,114,475 | 25,093,234 | 38,671,623 | 43,784,335 | 48,703,540 | |||||||||||||||
Total assets | 321,804,691 | 350,662,064 | 604,084,270 | 845,345,463 | 841,939,558 | |||||||||||||||
Basic earnings per share (3) | 0.48 | 0.47 | 0.80 | 1.01 | 1.19 | |||||||||||||||
Basic earnings per share — continued operations | 0.48 | 0.47 | 0.78 | 0.99 | 1.02 | |||||||||||||||
Stockholders’ equity per share (2)(3) | 4.89 | 5.26 | 7.78 | 7.02 | 7.79 | |||||||||||||||
Ratio of earnings to fixed charges: (4) | ||||||||||||||||||||
Excluding interest on deposits | 1.61 | 1.79 | 1.92 | 1.85 | 1.78 | |||||||||||||||
Including interest on deposits | 1.22 | 1.30 | 1.38 | 1.32 | 1.35 | |||||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends: (5) | ||||||||||||||||||||
Excluding interest on deposits | 1.49 | 1.64 | 1.92 | 1.83 | 1.76 | |||||||||||||||
Including interest on deposits | 1.18 | 1.26 | 1.38 | 1.32 | 1.35 |
(1) | For information concerning reconciliation between the EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 and U.S. GAAP and a discussion of the significant U.S. GAAP adjustments to net income and stockholders’ equity, see Note 58 to our consolidated financial statements. | |
(2) | As of the end of each period. The book value of our treasury stock has been deducted from stockholders’ equity. | |
(3) | Per share data have been calculated on the basis of the weighted average number of our shares outstanding in the relevant year, including treasury stock. | |
(4) | For the purpose of calculating the ratio of earnings to fixed charges, earnings consist of income from continuing operations before taxation and minority interests, plus fixed charges and after deduction of the unremitted pre-tax income of companies accounted for by the equity method. Fixed charges consist of total interest expense, including or excluding interest on deposits as appropriate, and the proportion of rental expense deemed representative of the interest factor. | |
(5) | For the purpose of calculating the ratio of earnings to combined fixed charges and preferred stock dividends, earnings consist of income from continuing operations before taxation and minority interest, plus fixed charges and after deduction of the unremitted pre-tax income of companies accounted for by the equity method. Fixed charges consist of total interest expense, including or excluding interest on deposits as appropriate, preferred stock dividend requirements (corresponding to minority interest participation and, accordingly, not eliminated in consolidation), and the proportion of rental expense deemed representative of the interest factor. Preferred stock dividends for any year represent the amount of pre-tax earnings required to pay dividends on preferred stock outstanding during such year. Under the EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 all payments from preferred securities are accounted for as interest expenses and consequently this ratio is not necessary. (For details of the different accounting treatment given to preferred securities under the EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 and U.S.GAAP see Notes 58.2, 58.5 and 58.6 to our consolidated financial statements). |
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Rate During Period | ||||||||
Period End | Average Rate(1) | |||||||
Calendar Period | ($) | ($) | ||||||
2002 | 1.0485 | 0.9495 | ||||||
2003 | 1.2597 | 1.411 | ||||||
2004 | 1.3538 | 1.2478 | ||||||
2005 | 1.1842 | 1.2449 | ||||||
2006 | 1.3197 | 1.2661 |
(1) | The average of the Noon Buying Rates for euros on the last day of each month during the period. |
Rate During Period | ||||||||
Last six months | High $ | Low $ | ||||||
2006 | ||||||||
December | 1.3327 | 1.3073 | ||||||
2007 | ||||||||
January | 1.3286 | 1.2904 | ||||||
February | 1.3246 | 1.2933 | ||||||
March | 1.3374 | 1.3094 | ||||||
April | 1.3660 | 1.3363 | ||||||
May | 1.3616 | 1.3419 | ||||||
June (through June 28, 2007) | 1.3526 | 1.3295 |
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• | Capital increase of 1,485,893,636 new shares of€0.5 par value each and share premium of€7.94 each for an effective amount of€12,540.9 million, which were paid in full through the contribution of shares representing all the capital stock of Abbey, in accordance with the resolutions adopted at our Extraordinary Shareholders’ Meeting held on October 21, 2004. These shares were issued on November 12, 2004. |
• | Business Unit Latin America (excluding wholesale clients outside Brazil) including, notably, the Banco Real franchise in Brazil; | ||
• | Banca Antonveneta in Italy; and | ||
• | Interbank and DMC Consumer Finance, a specialized consumer finance business in the Netherlands. |
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• | Continental Europe. This covers all retail banking business (including Banco Banif, S.A. (“Banif”), our specialized private bank), wholesale banking and asset management and insurance conducted in Europe, with the exception of Abbey. This segment includes the following units: Santander Network, Banco Español de Crédito, S.A. (“Banesto”), Santander Consumer Finance and Portugal. |
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• | United Kingdom (Abbey). This covers only Abbey’s business, mainly focused on retail banking in the UK. | ||
• | Latin America. This embraces all the financial activities conducted via our subsidiary banks and other subsidiaries. It also includes the specialized units in International Private Banking, as an independent globally managed unit. Our business in New York is also managed in this area. |
• | Retail Banking. This covers all customer banking businesses (except those of Corporate Banking, which are managed globally throughout the world). | ||
• | Global Wholesale Banking. This business reflects the returns from Global Corporate Banking, Investment Banking and Markets worldwide, including all treasuries with global management, as well as our equities business. | ||
• | Asset Management and Insurance. This includes our units that design and manage mutual and pension funds and insurance. |
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Percentage Held | Percentage Held | |||||||||
at December 31, 2006 | at December 31, 2006 | |||||||||
Banco Río de la Plata, S.A. (Argentina) | 99.30 | Banco Santander, S.A. (Mexico) | 74.91 | |||||||
Banco Santander Banespa, S.A. (Brazil) | 97.97 | Banco Santander Puerto Rico | 90.77 | |||||||
Banco Santander Chile | 76.73 | Banco Santander, S.A. (Uruguay) | 100.00 | |||||||
Banco Santander Colombia, S.A. | 97.64 | Banco de Venezuela, S.A. Banco Universal | 98.42 |
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Percentage Held | ||||
Company | Business | At December 31, 2006 | ||
France Telecom España, S.A. | Telecommunications | 5.01 | ||
CEPSA | Oil and Petrochemicals | 29.99 | ||
Grupo Corporativo ONO, S.A. | Telecommunications | 4.47 |
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• | We have included interest received on non-accruing assets in interest income only if we received such interest during the period in which it was due; |
• | We have included loan fees in interest income; |
• | We have not recalculated tax-exempt income on a tax-equivalent basis because the effect of doing so would not be significant; |
• | We have included income and expenses from interest-rate hedging transactions as a separate line item under interest income and expenses if these transactions qualify for hedge accounting under the EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004. If these transactions did not qualify for such treatment, we included income and expenses on these transactions elsewhere in our income statement; |
• | We have stated average balance on a gross basis, before netting our allowances for credit losses, except for the total average asset figures, which reflect such netting. See Note 2 to our consolidated financial statements for a discussion of our accounting policies for hedging activities; and |
• | All average data have been calculated using month-end balances, which is not significantly different than having used daily averages. |
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2004 | 2005 | 2006 | ||||||||||||||||||||||||||||||||||
Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | ||||||||||||||||||||||||||||
(in thousand of euros, except percentages) | ||||||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||
Cash and due from central banks | ||||||||||||||||||||||||||||||||||||
Domestic | 2,699,587 | 35,957 | 1.33 | % | 3,133,279 | 44,121 | 1.41 | % | 1,974,832 | 68,969 | 3.49 | % | ||||||||||||||||||||||||
International | 5,317,681 | 200,573 | 3.77 | % | 8,487,908 | 227,184 | 2.68 | % | 12,445,028 | 405,884 | 3.26 | % | ||||||||||||||||||||||||
8,017,268 | 236,530 | 2.95 | % | 11,621,187 | 271,305 | 2.33 | % | 14,419,860 | 474,853 | 3.29 | % | |||||||||||||||||||||||||
Due from credit entities | ||||||||||||||||||||||||||||||||||||
Domestic | 11,775,968 | 282,136 | 2.40 | % | 13,674,911 | 340,950 | 2.49 | % | 11,519,832 | 460,640 | 4.00 | % | ||||||||||||||||||||||||
International | 28,961,103 | 808,519 | 2.79 | % | 51,599,988 | 2,032,721 | 3.94 | % | 48,964,815 | 2,044,429 | 4.18 | % | ||||||||||||||||||||||||
40,737,071 | 1,090,655 | 2.68 | % | 65,274,899 | 2,373,671 | 3.64 | % | 60,484,647 | 2,505,069 | 4.14 | % | |||||||||||||||||||||||||
Loans and credits | ||||||||||||||||||||||||||||||||||||
Domestic | 120,221,648 | 4,504,867 | 3.75 | % | 141,048,015 | 5,291,967 | 3.75 | % | 177,426,121 | 7,678,628 | 4.33 | % | ||||||||||||||||||||||||
International | 75,559,409 | 5,934,723 | 7.85 | % | 249,372,121 | 16,127,608 | 6.47 | % | 297,802,148 | 18,822,654 | 6.32 | % | ||||||||||||||||||||||||
195,781,057 | 10,439,590 | 5.33 | % | 390,420,136 | 21,419,575 | 5.49 | % | 475,228,269 | 26,501,282 | 5.58 | % | |||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||
Domestic | 29,007,098 | 933,402 | 3.22 | % | 23,461,682 | 778,971 | 3.32 | % | 20,025,278 | 762,274 | 3.81 | % | ||||||||||||||||||||||||
International | 40,352,722 | 2,692,624 | 6.67 | % | 91,154,696 | 3,699,253 | 4.06 | % | 105,873,943 | 3,810,785 | 3.60 | % | ||||||||||||||||||||||||
69,359,820 | 3,626,026 | 5.23 | % | 114,616,378 | 4,478,224 | 3.91 | % | 125,899,221 | 4,573,059 | 3.63 | % | |||||||||||||||||||||||||
Income from hedging operations | ||||||||||||||||||||||||||||||||||||
Domestic | 280,562 | 2,404,944 | 225,696 | |||||||||||||||||||||||||||||||||
International | 1,425,634 | 1,709,334 | 2,017,358 | |||||||||||||||||||||||||||||||||
1,706,196 | 4,114,278 | 2,243,054 | ||||||||||||||||||||||||||||||||||
Other interest earning assets | ||||||||||||||||||||||||||||||||||||
Domestic | 10,651,193 | 345,353 | 3.24 | % | 37,424,900 | 441,813 | 1.18 | % | 43,270,683 | 543,579 | 1.26 | % | ||||||||||||||||||||||||
International | – | – | – | – | – | – | – | – | – | |||||||||||||||||||||||||||
10,651,193 | 345,353 | 3.24 | % | 37,424,900 | 441,813 | 1.18 | % | 43,270,683 | 543,579 | 1.26 | % | |||||||||||||||||||||||||
Total interest-earning assets | ||||||||||||||||||||||||||||||||||||
Domestic | 174,355,494 | 6,382,277 | 3.66 | % | 218,742,787 | 9,302,766 | 4.25 | % | 254,216,746 | 9,739,786 | 3.83 | % | ||||||||||||||||||||||||
International | 150,190,915 | 11,062,073 | 7.37 | % | 400,614,713 | 23,796,100 | 5.94 | % | 465,085,934 | 27,101,110 | 5.83 | % | ||||||||||||||||||||||||
324,546,409 | 17,444,350 | 5.37 | % | 619,357,500 | 33,098,866 | 5.34 | % | 719,302,680 | 36,840,896 | 5.12 | % | |||||||||||||||||||||||||
Investments in equity securities | ||||||||||||||||||||||||||||||||||||
Domestic | 4,024,823 | 261,357 | 6.49 | % | 5,823,044 | 196,263 | 3.37 | % | 6,778,956 | 233,975 | 3.45 | % | ||||||||||||||||||||||||
International | 10,418,333 | 127,681 | 1.23 | % | 5,444,896 | 139,313 | 2.56 | % | 16,570,221 | 170,063 | 1.03 | % | ||||||||||||||||||||||||
14,443,156 | 389,038 | 2.69 | % | 11,267,940 | 335,576 | 2.98 | % | 23,349,177 | 404,038 | 1.73 | % | |||||||||||||||||||||||||
Investments in affiliated companies | ||||||||||||||||||||||||||||||||||||
Domestic | 3,168,233 | – | – | 3,581,100 | – | – | 3,125,583 | – | – | |||||||||||||||||||||||||||
International | 388,774 | – | – | 391,543 | – | – | 1,561,780 | – | – | |||||||||||||||||||||||||||
3,557,007 | – | – | 3,972,643 | – | – | 4,687,363 | – | – | ||||||||||||||||||||||||||||
Total earning assets | ||||||||||||||||||||||||||||||||||||
Domestic | 181,548,550 | 6,643,634 | 3.66 | % | 228,146,931 | 9,499,029 | 4.16 | % | 264,121,285 | 9,973,761 | 3.78 | % | ||||||||||||||||||||||||
International | 160,998,022 | 11,189,754 | 6.95 | % | 406,451,152 | 23,935,413 | 5.89 | % | 483,217,935 | 27,271,173 | 5.64 | % | ||||||||||||||||||||||||
342,546,572 | 17,833,388 | 5.21 | % | 634,598,083 | 33,434,442 | 5.27 | % | 747,339,220 | 37,244,934 | 4.98 | % | |||||||||||||||||||||||||
Other assets | 27,889,415 | – | – | 45,206,313 | – | – | 43,550,697 | – | – | |||||||||||||||||||||||||||
Assets from discontinued operations | 3,878,431 | – | – | 41,094,869 | – | – | 23,342,540 | – | – | |||||||||||||||||||||||||||
Total average assets | 374,324,418 | 17,833,388 | 720,899,265 | 33,434,442 | 814,232,457 | 37,244,934 |
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Year Ended December 31, | ||||||||||||||||||||||||||||||||||||
2004 | 2005 | 2006 | ||||||||||||||||||||||||||||||||||
Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | ||||||||||||||||||||||||||||
(in thousands of euros, except percentages) | ||||||||||||||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS EQUITY | ||||||||||||||||||||||||||||||||||||
Due to credit entities | ||||||||||||||||||||||||||||||||||||
Domestic | 18,946,115 | 436,035 | 2.30 | % | 15,781,853 | 410,174 | 2.60 | % | 15,450,460 | 452,377 | 2.93 | % | ||||||||||||||||||||||||
International | 44,885,403 | 1,703,731 | 3.80 | % | 100,192,483 | 3,182,489 | 3.18 | % | 108,302,740 | 3,145,329 | 2.90 | % | ||||||||||||||||||||||||
63,831,518 | 2,139,766 | 3.35 | % | 115,974,336 | 3,592,663 | 3.10 | % | 123,753,200 | 3,597,706 | 2.91 | % | |||||||||||||||||||||||||
Customers deposits | ||||||||||||||||||||||||||||||||||||
Domestic | 92,462,553 | 1,357,707 | 1.47 | % | 98,165,752 | 1,653,302 | 1.68 | % | 104,310,458 | 2,479,998 | 2.38 | % | ||||||||||||||||||||||||
International | 74,000,626 | 2,370,509 | 3.20 | % | 187,806,635 | 7,742,070 | 4.12 | % | 211,168,237 | 8,603,441 | 4.07 | % | ||||||||||||||||||||||||
166,463,179 | 3,728,216 | 2.24 | % | 285,972,387 | 9,395,372 | 3.29 | % | 315,478,695 | 11,083,439 | 3.51 | % | |||||||||||||||||||||||||
Marketable debt securities | ||||||||||||||||||||||||||||||||||||
Domestic | 30,654,245 | 967,251 | 3.16 | % | 56,259,922 | 1,507,745 | 2.68 | % | 87,819,976 | 2,862,427 | 3.26 | % | ||||||||||||||||||||||||
International | 23,338,251 | 870,168 | 3.73 | % | 67,925,712 | 2,718,923 | 4.00 | % | 86,557,319 | 2,966,498 | 3.43 | % | ||||||||||||||||||||||||
53,992,496 | 1,837,419 | 3.40 | % | 124,185,634 | 4,226,668 | 3.40 | % | 174,377,295 | 5,828,925 | 3.34 | % | |||||||||||||||||||||||||
Subordinated debt | ||||||||||||||||||||||||||||||||||||
Domestic | 4,377,978 | 168,965 | 3.86 | % | 7,457,156 | 329,883 | 4.42 | % | 10,264,689 | 466,520 | 4.54 | % | ||||||||||||||||||||||||
International | 10,091,110 | 571,906 | 5.67 | % | 19,829,925 | 1,261,618 | 6.36 | % | 19,289,808 | 1,227,217 | 6.36 | % | ||||||||||||||||||||||||
14,469,088 | 740,871 | 5.12 | % | 27,287,081 | 1,591,501 | 5.83 | % | 29,554,497 | 1,693,737 | 5.73 | % | |||||||||||||||||||||||||
Equity having the substance of a financial liability | ||||||||||||||||||||||||||||||||||||
Domestic | – | – | – | – | – | – | – | – | – | |||||||||||||||||||||||||||
International | 2,201,122 | 151,952 | 6.90 | % | 1,614,121 | 118,389 | 7.33 | % | 1,161,537 | 85,229 | 7.34 | % | ||||||||||||||||||||||||
2,201,122 | 151,952 | 6.90 | % | 1,614,121 | 118,389 | 7.33 | % | 1,161,537 | 85,229 | 7.34 | % | |||||||||||||||||||||||||
Other interest bearing liabilities | ||||||||||||||||||||||||||||||||||||
Domestic | 18,110,398 | 802,069 | 4.43 | % | 56,732,523 | 876,092 | 1.54 | % | 65,381,500 | 530,095 | 0.81 | % | ||||||||||||||||||||||||
International | – | – | – | – | – | – | – | 530,671 | – | |||||||||||||||||||||||||||
18,110,398 | 802,069 | 4.43 | % | 56,732,523 | 876,092 | 1.54 | % | 65,381,500 | 1,060,766 | 1.62 | % | |||||||||||||||||||||||||
Expenses from hedging operations | ||||||||||||||||||||||||||||||||||||
Domestic | – | (314,413 | ) | – | – | 1,638,632 | – | – | (298,065 | ) | – | |||||||||||||||||||||||||
International | – | 1,186,004 | – | – | 1,325,646 | – | – | 1,705,396 | – | |||||||||||||||||||||||||||
– | 871,591 | – | – | 2,964,278 | – | – | 1,407,331 | – | ||||||||||||||||||||||||||||
Total interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||
Domestic | 164,551,289 | 3,417,614 | 2.08 | % | 234,397,206 | 6,415,828 | 2.74 | % | 283,227,083 | 6,493,352 | 2.29 | % | ||||||||||||||||||||||||
International | 154,516,512 | 6,854,270 | 4.44 | % | 377,368,876 | 16,349,135 | 4.33 | % | 426,479,641 | 18,263,781 | 4.28 | % | ||||||||||||||||||||||||
319,067,801 | 10,271,884 | 3.22 | % | 611,766,082 | 22,764,963 | 3.72 | % | 709,706,724 | 24,757,133 | 3.49 | % | |||||||||||||||||||||||||
Other liabilities | 26,589,380 | – | – | 34,135,939 | – | – | 39,386,637 | – | – | |||||||||||||||||||||||||||
Minority interest | 2,027,972 | – | – | 2,056,087 | – | – | 2,264,300 | – | – | |||||||||||||||||||||||||||
Stockholders’ Equity | 22,760,834 | – | – | 31,846,288 | – | – | 39,532,256 | – | – | |||||||||||||||||||||||||||
Liabilities from discontinued operations | 3,878,431 | – | – | 41,094,869 | – | – | 23,342,540 | – | – | |||||||||||||||||||||||||||
Total average Liabilities and Stockholders’ Equity | 374,324,418 | 10,271,884 | 720,899,265 | 22,764,963 | 814,232,457 | 24,757,133 |
34
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EU-IFRS(*) | ||||||||||||
2006/2005 | ||||||||||||
Increase (Decrease) due to changes in | ||||||||||||
Volume | Rate | Net change | ||||||||||
(in thousands of euros) | ||||||||||||
Interest and similar revenues | ||||||||||||
Cash and due from central banks | ||||||||||||
Domestic | (40,324 | ) | 65,172 | 24,848 | ||||||||
International | 129,470 | 49,230 | 178,700 | |||||||||
89,146 | 114,402 | 203,548 | ||||||||||
Due from credit entities | ||||||||||||
Domestic | (86,801 | ) | 206,491 | 119,690 | ||||||||
International | (112,132 | ) | 123,840 | 11,708 | ||||||||
(198,933 | ) | 330,331 | 131,398 | |||||||||
Loans and credits | ||||||||||||
Domestic | 1,568,583 | 818,078 | 2,386,661 | |||||||||
International | 3,069,104 | (374,058 | ) | 2,695,046 | ||||||||
4,637,687 | 444,020 | 5,081,707 | ||||||||||
Debt securities | ||||||||||||
Domestic | (131,659 | ) | 114,962 | (16,697 | ) | |||||||
International | 530,844 | (419,312 | ) | 111,532 | ||||||||
399,185 | (304,350 | ) | 94,835 | |||||||||
Other interest earning assets | ||||||||||||
Domestic | 71,826 | 29,940 | 101,766 | |||||||||
International | – | – | – | |||||||||
71,826 | 29,940 | 101,766 | ||||||||||
Total interest-earning assets | ||||||||||||
Domestic | 1,381,625 | 1,234,643 | 2,616,268 | |||||||||
International | 3,617,286 | (620,300 | ) | 2,996,986 | ||||||||
4,998,911 | 614,343 | 5,613,254 | ||||||||||
Investments in equity securities | ||||||||||||
Domestic | 33,054 | 4,658 | 37,712 | |||||||||
International | 114,057 | (83,307 | ) | 30,750 | ||||||||
147,111 | (78,649 | ) | 68,462 | |||||||||
Total earning assets without hedging operations | ||||||||||||
Domestic | 1,414,679 | 1,239,301 | 2,653,980 | |||||||||
International | 3,731,343 | (703,607 | ) | 3,027,736 | ||||||||
5,146,022 | 535,694 | 5,681,716 | ||||||||||
Income from hedging operations | ||||||||||||
Domestic | (2,179,248 | ) | – | (2,179,248 | ) | |||||||
International | 308,024 | – | 308,024 | |||||||||
(1,871,224 | ) | – | (1,871,224 | ) | ||||||||
Total earning assets | ||||||||||||
Domestic | (764,569 | ) | 1,239,301 | 474,732 | ||||||||
International | 4,039,367 | (703,607 | ) | 3,335,760 | ||||||||
3,274,798 | 535,694 | 3,810,492 | ||||||||||
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
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Table of Contents
EU-IFRS(*) | ||||||||||||
2005/2004 | ||||||||||||
Increase (Decrease) due to changes in | ||||||||||||
Volume | Rate | Net change | ||||||||||
(in thousands of euros) | ||||||||||||
Interest and similar revenues | ||||||||||||
Cash and due from central banks | ||||||||||||
Domestic | 6,004 | 2,160 | 8,164 | |||||||||
International | 84,574 | (57,963 | ) | 26,611 | ||||||||
90,578 | (55,803 | ) | 34,775 | |||||||||
Due from credit entities | ||||||||||||
Domestic | 48,216 | 10,598 | 58,814 | |||||||||
International | 891,149 | 333,053 | 1,224,202 | |||||||||
939,365 | 343,651 | 1,283,016 | ||||||||||
Loans and credits | ||||||||||||
Domestic | 787,100 | – | 787,100 | |||||||||
International | 11,235,605 | (1,042,720 | ) | 10,192,885 | ||||||||
12,022,705 | (1,042,720 | ) | 10,979,985 | |||||||||
Debt securities | ||||||||||||
Domestic | (183,438 | ) | 29,007 | (154,431 | ) | |||||||
International | 2,059,835 | (1,053,206 | ) | 1,006,629 | ||||||||
1,876,397 | (1,024,199 | ) | 852,198 | |||||||||
Other interest earning assets | ||||||||||||
Domestic | 315,875 | (219,415 | ) | 96,460 | ||||||||
International | – | – | – | |||||||||
315,875 | (219,415 | ) | 96,460 | |||||||||
Total interest-earning assets | ||||||||||||
Domestic | 973,757 | (177,650 | ) | 796,107 | ||||||||
International | 14,271,163 | (1,820,836 | ) | 12,450,327 | ||||||||
15,244,920 | (1,998,486 | ) | 13,246,434 | |||||||||
Investments in equity securities | ||||||||||||
Domestic | 60,480 | (125,574 | ) | (65,094 | ) | |||||||
International | (126,932 | ) | 138,564 | 11,632 | ||||||||
(66,452 | ) | 12,990 | (53,462 | ) | ||||||||
Total earning assets without hedging operations | ||||||||||||
Domestic | 1,034,237 | (303,224 | ) | 731,013 | ||||||||
International | 14,144,231 | (1,682,272 | ) | 12,461,959 | ||||||||
15,178,468 | (1,985,496 | ) | 13,192,972 | |||||||||
Income from hedging operations | ||||||||||||
Domestic | 2,124,382 | – | 2,124,382 | |||||||||
International | 283,700 | – | 283,700 | |||||||||
2,408,082 | – | 2,408,082 | ||||||||||
Total earning assets | ||||||||||||
Domestic | 3,158,619 | (303,224 | ) | 2,855,395 | ||||||||
International | 14,427,931 | (1,682,272 | ) | 12,745,659 | ||||||||
17,586,550 | (1,985,496 | ) | 15,601,054 |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
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Table of Contents
EU-IFRS(*) | ||||||||||||
2006/2005 | ||||||||||||
Increase (Decrease) due to changes in | ||||||||||||
Volume | Rate | Net change | ||||||||||
(in thousands of euros) | ||||||||||||
Interest and similar expenses | ||||||||||||
Due to credit entities | ||||||||||||
Domestic | (9,877 | ) | 52,080 | 42,203 | ||||||||
International | 243,379 | (280,539 | ) | (37,160 | ) | |||||||
233,502 | (228,459 | ) | 5,043 | |||||||||
Customers deposits | ||||||||||||
Domestic | 139,536 | 687,160 | 826,696 | |||||||||
International | 955,274 | (93,903 | ) | 861,371 | ||||||||
1,094,810 | 593,257 | 1,688,067 | ||||||||||
Marketable debt securities | ||||||||||||
Domestic | 1,028,374 | 326,308 | 1,354,682 | |||||||||
International | 634,752 | (387,177 | ) | 247,575 | ||||||||
1,663,126 | (60,869 | ) | 1,602,257 | |||||||||
Subordinated debt | ||||||||||||
Domestic | 127,688 | 8,949 | 136,637 | |||||||||
International | (34,401 | ) | – | (34,401 | ) | |||||||
93,287 | 8,949 | 102,236 | ||||||||||
Equity having the substance of a financial liability | ||||||||||||
Domestic | – | – | – | |||||||||
International | (33,321 | ) | 161 | (33,160 | ) | |||||||
(33,321 | ) | 161 | (33,160 | ) | ||||||||
Other interest bearing liabilities | ||||||||||||
Domestic | 68,150 | (414,147 | ) | (345,997 | ) | |||||||
International | 530,671 | – | 530,671 | |||||||||
598,821 | (414,147 | ) | 184,674 | |||||||||
Total interest-bearing liabilities without hedging operations | ||||||||||||
Domestic | 1,353,871 | 660,350 | 2,014,221 | |||||||||
International | 2,296,354 | (761,458 | ) | 1,534,896 | ||||||||
3,650,225 | (101,108 | ) | 3,549,117 | |||||||||
Expenses from hedging operations | ||||||||||||
Domestic | (1,936,697 | ) | – | (1,936,697 | ) | |||||||
International | 379,750 | – | 379,750 | |||||||||
(1,556,947 | ) | – | (1,556,947 | ) | ||||||||
Total interest-bearing liabilities | ||||||||||||
Domestic | (582,826 | ) | 660,350 | 77,524 | ||||||||
International | 2,676,104 | (761,458 | ) | 1,914,646 | ||||||||
2,093,278 | (101,108 | ) | 1,992,170 |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
37
Table of Contents
EU-IFRS(*) | ||||||||||||
2005/2004 | ||||||||||||
Increase (Decrease) due to changes in | ||||||||||||
Volume | Rate | Net change | ||||||||||
(in thousands of euros) | ||||||||||||
Interest and similar expenses | ||||||||||||
Due to credit entities | ||||||||||||
Domestic | (82,699 | ) | 56,838 | (25,861 | ) | |||||||
International | 1,757,047 | (278,289 | ) | 1,478,758 | ||||||||
1,674,348 | (221,451 | ) | 1,452,897 | |||||||||
Customers deposits | ||||||||||||
Domestic | 101,424 | 194,171 | 295,595 | |||||||||
International | 4,690,755 | 680,806 | 5,371,561 | |||||||||
4,792,179 | 874,977 | 5,667,156 | ||||||||||
Marketable debt securities | ||||||||||||
Domestic | 687,634 | (147,140 | ) | 540,494 | ||||||||
International | 1,785,742 | 63,013 | 1,848,755 | |||||||||
2,473,376 | (84,127 | ) | 2,389,249 | |||||||||
Subordinated debt | ||||||||||||
Domestic | 136,401 | 24,517 | 160,918 | |||||||||
International | 620,083 | 69,629 | 689,712 | |||||||||
756,484 | 94,146 | 850,630 | ||||||||||
Equity having the substance of a financial liability | ||||||||||||
Domestic | – | – | – | |||||||||
International | (43,028 | ) | 9,465 | (33,563 | ) | |||||||
(43,028 | ) | 9,465 | (33,563 | ) | ||||||||
Other interest bearing liabilities | ||||||||||||
Domestic | 597,414 | (523,391 | ) | 74,023 | ||||||||
International | – | – | – | |||||||||
597,414 | (523,391 | ) | 74,023 | |||||||||
Total interest-bearing liabilities without hedging operations | ||||||||||||
Domestic | 1,440,174 | (395,005 | ) | 1,045,169 | ||||||||
International | 8,810,599 | 544,624 | 9,355,223 | |||||||||
10,250,773 | 149,619 | 10,400,392 | ||||||||||
Expenses from hedging operations | ||||||||||||
Domestic | 1,953,045 | – | 1,953,045 | |||||||||
International | 139,642 | – | 139,642 | |||||||||
2,092,687 | – | 2,092,687 | ||||||||||
Total interest-bearing liabilities | ||||||||||||
Domestic | 3,393,219 | (395,005 | ) | 2,998,214 | ||||||||
International | 8,950,241 | 544,624 | 9,494,865 | |||||||||
12,343,460 | 149,619 | 12,493,079 |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
38
Table of Contents
EU-IFRS(*) | ||||||||||||
Year Ended December 31, | ||||||||||||
2004 | 2005 | 2006 | ||||||||||
(in thousands of euros, except percentages) | ||||||||||||
Average earning assets | ||||||||||||
Domestic | 181,548,550 | 228,146,931 | 264,121,285 | |||||||||
International | 160,998,022 | 406,451,152 | 483,217,935 | |||||||||
342,546,572 | 634,598,083 | 747,339,220 | ||||||||||
Interest and dividends on equity securities (1) | ||||||||||||
Domestic | 6,643,634 | 9,499,029 | 9,973,761 | |||||||||
International | 11,189,754 | 23,935,413 | 27,271,173 | |||||||||
17,833,388 | 33,434,442 | 37,244,934 | ||||||||||
Net interest income | ||||||||||||
Domestic | 3,226,020 | 3,083,201 | 3,480,409 | |||||||||
International | 4,335,484 | 7,586,278 | 9,007,392 | |||||||||
7,561,504 | 10,669,479 | 12,487,801 | ||||||||||
Gross yield (2) | ||||||||||||
Domestic | 3.66 | % | 4.16 | % | 3.78 | % | ||||||
International | 6.95 | % | 5.89 | % | 5.64 | % | ||||||
5.21 | % | 5.27 | % | 4.98 | % | |||||||
�� | ||||||||||||
Net yield (3) | ||||||||||||
Domestic | 1.78 | % | 1.35 | % | 1.32 | % | ||||||
International | 2.69 | % | 1.87 | % | 1.86 | % | ||||||
2.21 | % | 1.68 | % | 1.67 | % | |||||||
Yield spread (4) | ||||||||||||
Domestic | 1.58 | % | 1.42 | % | 1.49 | % | ||||||
International | 2.51 | % | 1.56 | % | 1.36 | % | ||||||
1.99 | % | 1.55 | % | 1.49 | % |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
(1) | Dividends on equity securities include dividends from companies accounted for by the equity method. | |
(2) | Gross yield is the quotient of interest and dividends on equity securities divided by average earning assets. | |
(3) | Net yield is the quotient of net interest income (that includes dividends on equity securities) divided by average earning assets. | |
(4) | Yield spread is the difference between gross yield on earning assets and the average cost of interest-bearing liabilities. For a discussion of the changes in yield spread over the periods presented, see “Item 5. Operating and Financial Review and Prospects – A. Operating Results – Results of Operations for Santander Group – Net Interest Income”. |
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Table of Contents
EU-IFRS(*) | ||||||||||||
Year Ended December 31, | ||||||||||||
2004 | 2005 | 2006 | ||||||||||
ROA: Return on average total assets | 1.01 | % | 0.91 | % | 1.00 | % | ||||||
ROE:Return on average stockholders’ equity | 19.74 | % | 19.86 | % | 21.39 | % | ||||||
PAY-OUT:Dividends per average share as a percentage of net attributable income per average share | 50.95 | % | 41.88 | % | 42.87 | % | ||||||
Average stockholders’ equity as a percentage of average total assets | 4.62 | % | 4.24 | % | 4.36 | % |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
EU-IFRS(*) | ||||||||||||
Year Ended December 31, | ||||||||||||
2004 | 2005 | 2006 | ||||||||||
Cash and due from Central Banks | ||||||||||||
Domestic | 0.84 | % | 0.51 | % | 0.27 | % | ||||||
International | 1.64 | % | 1.37 | % | 1.73 | % | ||||||
2.48 | % | 1.88 | % | 2.00 | % | |||||||
Due from credit entities | ||||||||||||
Domestic | 3.63 | % | 2.21 | % | 1.60 | % | ||||||
International | 8.92 | % | 8.33 | % | 6.81 | % | ||||||
12.55 | % | 10.54 | % | 8.41 | % | |||||||
Loans and credits | ||||||||||||
Domestic | 37.04 | % | 22.77 | % | 24.67 | % | ||||||
International | 23.28 | % | 40.26 | % | 41.40 | % | ||||||
60.32 | % | 63.03 | % | 66.07 | % | |||||||
Debt securities | ||||||||||||
Domestic | 8.94 | % | 3.79 | % | 2.78 | % | ||||||
International | 12.43 | % | 14.72 | % | 14.72 | % | ||||||
21.37 | % | 18.51 | % | 17.50 | % | |||||||
Other interest earning assets | ||||||||||||
Domestic | 3.28 | % | 6.04 | % | 6.02 | % | ||||||
International | – | – | – | |||||||||
3.28 | % | 6.04 | % | 6.02 | % | |||||||
Total interest-earning assets | ||||||||||||
Domestic | 53.73 | % | 35.32 | % | 35.34 | % | ||||||
International | 46.27 | % | 64.68 | % | 64.66 | % | ||||||
100.00 | % | 100.00 | % | 100.00 | % |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
40
Table of Contents
EU-IFRS(*) | ||||||||||||
At December 31, | ||||||||||||
2004 | 2005 | 2006 | ||||||||||
(in thousands of euros) | ||||||||||||
Reciprocal accounts | 118,536 | 345,104 | 503,299 | |||||||||
Time deposits | 23,204,031 | 21,962,472 | 16,842,601 | |||||||||
Reverse repurchase agreements | 31,495,786 | 33,634,326 | 37,010,008 | |||||||||
Other accounts | 3,561,421 | 3,831,120 | 5,818,630 | |||||||||
58,379,774 | 59,773,022 | 60,174,538 | ||||||||||
Less- Impairment allowances | (53,879 | ) | (36,046 | ) | (12,727 | ) | ||||||
58,325,895 | 59,736,976 | 60,161,811 |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
Previous Spanish GAAP | ||||||||
At December 31, | ||||||||
2002 | 2003 | |||||||
(in thousands of euros) | ||||||||
Demand deposits- | ||||||||
Current accounts | 105,816 | 103,734 | ||||||
Clearing House | – | – | ||||||
Other accounts | 3,043,095 | 1,599,804 | ||||||
3,148,911 | 1,703,538 | |||||||
Other deposits- | ||||||||
Deposits in credit entities | 15,865,145 | 14,635,787 | ||||||
Securities purchased under agreements to resell | 21,332,856 | 21,390,247 | ||||||
37,198,001 | 36,026,034 | |||||||
Less- Allowance for credit losses(1) | (90,522 | ) | (111,735 | ) | ||||
40,256,390 | 37,617,837 |
(1) | The purpose of this allowance for credit losses was to recognize the loss related to the collectibility of these balances due to transfer risk and credit risk. This allowance was determined, in accordance with Bank of Spain requirements, based on debt servicing, on debtor credit rating, and on the outstanding settlement and transfer risks of the country in which the debtor is located. | |
The allowance for credit losses reduces the fair value of the balances included in Due from Credit Institutions after evaluating their collectibility. All estimated losses considered in the calculation of this allowance are related to claims due from non-OECD financial institutions. |
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Table of Contents
EU-IFRS(*) | ||||||||||||
At December 31, | ||||||||||||
2004 | 2005 | 2006 | ||||||||||
(in thousands of euros) | ||||||||||||
Debt securities | ||||||||||||
Domestic- | ||||||||||||
Spanish Government | 17,252,328 | 19,595,333 | 12,596,984 | |||||||||
Other domestic issuer: | ||||||||||||
Public authorities | 217,457 | 121,328 | 179,317 | |||||||||
Other domestic issuer | 5,652,988 | 6,569,398 | 5,900,637 | |||||||||
Total domestic | 23,122,773 | 26,286,059 | 18,676,938 | |||||||||
International- | ||||||||||||
United States: | ||||||||||||
U.S. Treasury and other U.S. Government agencies | 1,397,595 | 874,569 | 1,073,246 | |||||||||
States and political subdivisions | 691,401 | 95,167 | 50,218 | |||||||||
Other securities | 6,153,787 | 5,331,903 | 5,707,115 | |||||||||
Total United States | 8,242,783 | 6,301,639 | 6,830,579 | |||||||||
Other: | ||||||||||||
Governments | 13,995,188 | 70,913,815 | 21,127,122 | |||||||||
Other securities | 67,063,965 | 56,244,892 | 68,042,118 | |||||||||
Total Other | 81,059,153 | 127,158,707 | 89,169,240 | |||||||||
Total International | 89,301,936 | 133,460,346 | 95,999,820 | |||||||||
Less- Allowance for credit losses | (212,423 | ) | (80,000 | ) | (90,322 | ) | ||||||
Less- Price fluctuation allowance | (7,212 | ) | – | – | ||||||||
Total Debt Securities | 112,205,074 | 159,666,405 | 114,586,436 | |||||||||
Equity securities | ||||||||||||
Domestic | 4,231,724 | 7,556,389 | 7,312,113 | |||||||||
International- | ||||||||||||
United States | 291,239 | 247,711 | 604,922 | |||||||||
Other | 22,056,652 | 36,485,513 | 14,270,821 | |||||||||
Total international | 22,347,891 | 36,733,224 | 14,875,743 | |||||||||
Less- Price fluctuation allowance | (30,925 | ) | (17,658 | ) | (13,859 | ) | ||||||
Total Equity Securities | 26,548,690 | 44,271,955 | 22,173,997 | |||||||||
Total Investment Securities | 138,753,764 | 203,938,360 | 136,760,433 |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
42
Table of Contents
Previous Spanish GAAP | ||||||||
At December 31, | At December 31, | |||||||
2002 | 2003 | |||||||
(in thousands of euros) | ||||||||
Debt securities | ||||||||
Domestic- | ||||||||
Spanish Goverment | 24,988,526 | 31,118,523 | ||||||
Other domestic issuer: | ||||||||
Public authorities | 216,012 | 275,146 | ||||||
Other domestic issuer | 2,802,959 | 5,327,211 | ||||||
Total domestic | 28,007,497 | 36,720,880 | ||||||
International- | ||||||||
United States: | ||||||||
U.S. Treasury and other U.S. Government agencies | 596,589 | 1,140,134 | ||||||
States and political subdivisions | 2,145,256 | 98,306 | ||||||
Other securities | 781,884 | 696,328 | ||||||
Total United States | 3,523,729 | 1,934,768 | ||||||
Other: | ||||||||
Governments | 19,896,934 | 26,542,838 | ||||||
Other securities | 5,980,499 | 10,434,092 | ||||||
Total Other | 25,877,433 | 36,976,930 | ||||||
Total International | 29,401,162 | 38,911,698 | ||||||
Less- Allowance for credit losses | (135,552 | ) | (185,978 | ) | ||||
Less- Price fluctuation allowance | (198,453 | ) | (61,682 | ) | ||||
Total Debt Securities | 57,074,654 | 75,384,918 | ||||||
Equity securities | ||||||||
Domestic | 3,849,006 | 4,766,673 | ||||||
International- | ||||||||
United States | 57,359 | 346,003 | ||||||
Other | 4,530,102 | 5,900,207 | ||||||
Total international | 4,587,461 | 6,246,210 | ||||||
Less- Price fluctuation allowance | (569,715 | ) | (948,761 | ) | ||||
Total Equity Securities | 7,866,752 | 10,064,122 | ||||||
Total Investment Securities | 64,941,406 | 85,449,040 |
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Aggregate as of December 31, 2006 | ||||||||
Book value | Market value | |||||||
(in thousands of euros) | ||||||||
Debt securities: | ||||||||
Exceed 10% of stockholders’ equity: | ||||||||
Mexican Government | 16,983,417 | 16,983,417 | ||||||
Brazilian Government | 13,157,126 | 13,157,126 | ||||||
Spanish Government | 12,776,301 | 12,776,301 | ||||||
Near 10% of sotckholders’ equity: | ||||||||
Lloyds TSB Group plc | 3,389,743 | 3,389,743 | ||||||
HBOS plc | 3,051,027 | 3,051,027 |
At December 31, 2006 | ||||||||||||||||||||
Maturing | Maturing | |||||||||||||||||||
Maturing | Between | Between | Maturing | |||||||||||||||||
Within | 1 and | 5 and | After | |||||||||||||||||
1 Year | 5 Years | 10 Years | 10 Years | Total | ||||||||||||||||
(in thousands of euros) | ||||||||||||||||||||
DEBT SECURITIES | ||||||||||||||||||||
Domestic: | ||||||||||||||||||||
Spanish Government | 4,649,274 | 3,356,227 | 3,807,182 | 784,302 | 12,596,984 | |||||||||||||||
Other domestic issuer: | ||||||||||||||||||||
Public authorities | 27,734 | 8,451 | 134,374 | 8,758 | 179,317 | |||||||||||||||
Other domestic issuer | 481,848 | 1,495,657 | 1,327,062 | 2,596,070 | 5,900,637 | |||||||||||||||
Total domestic | 5,158,856 | 4,860,335 | 5,268,618 | 3,389,129 | 18,676,938 | |||||||||||||||
International: | ||||||||||||||||||||
United States: | ||||||||||||||||||||
U.S. Treasury and other U.S. Government agencies | 417,116 | 462,481 | 24,558 | 169,090 | 1,073,246 | |||||||||||||||
States and political subdivisions | 1,174 | 13,670 | 19,477 | 15,897 | 50,218 | |||||||||||||||
Other securities | 1,203,079 | 1,662,495 | 2,190,771 | 650,770 | 5,707,115 | |||||||||||||||
Total United States | 1,621,369 | 2,138,646 | 2,234,807 | 835,757 | 6,830,579 | |||||||||||||||
Other: | ||||||||||||||||||||
Governments | 7,933,468 | 6,043,845 | 3,523,930 | 3,625,880 | 21,127,122 | |||||||||||||||
Other securities | 26,192,304 | 27,787,898 | 7,814,286 | 6,247,631 | 68,042,118 | |||||||||||||||
Total Other | 34,125,772 | 33,831,743 | 11,338,216 | 9,873,510 | 89,169,240 | |||||||||||||||
Total International | 35,747,141 | 35,970,389 | 13,573,022 | 10,709,268 | 95,999,820 | |||||||||||||||
Total debt investment securities | 40,905,997 | 40,830,724 | 18,841,640 | 14,098,397 | 114,676,758 | |||||||||||||||
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EU-IFRS(*) | ||||||||||||
At December 31, | ||||||||||||
2004 | 2005 | 2006 | ||||||||||
(in thousands of euros) | ||||||||||||
Borrowers in Spain: | ||||||||||||
Spanish Government | 5,741,016 | 5,242,938 | 5,328,526 | |||||||||
Commercial, financial, agricultural and industrial | 48,110,367 | 54,799,113 | 71,412,545 | |||||||||
Real estate-construction | 5,417,473 | 7,834,447 | 12,391,306 | |||||||||
Real estate-mortgage | 53,456,477 | 65,940,697 | 81,718,186 | |||||||||
Installment loans to individuals | 11,295,350 | 14,343,281 | 20,058,666 | |||||||||
Lease financing | 6,097,620 | 7,276,200 | 8,668,599 | |||||||||
Other | 2,764,974 | 3,345,467 | 5,668,234 | |||||||||
Total | 132,883,277 | 158,782,143 | 205,246,062 | |||||||||
Borrowers outside Spain: | ||||||||||||
Governments | 5,713,770 | 6,608,103 | 4,969,713 | |||||||||
Banks and other financial institutions | 17,681,264 | 2,109,420 | 767,765 | |||||||||
Commercial and industrial | 55,500,956 | 108,145,797 | 128,438,265 | |||||||||
Mortgage loans | 144,827,500 | 161,147,496 | 177,631,731 | |||||||||
Other | 19,588,512 | 6,645,761 | 14,455,772 | |||||||||
Total | 243,312,002 | 284,656,577 | 326,263,246 | |||||||||
Total loans and leases, gross | 376,195,279 | 443,438,720 | 531,509,308 | |||||||||
Allowance for possible loan losses | (6,845,215 | ) | (7,609,925 | ) | (8,163,444 | ) | ||||||
Loans and leases, net of allowances | 369,350,064 | 435,828,795 | 523,345,864 |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
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Previous Spanish GAAP | ||||||||
At December 31, | ||||||||
2002 | 2003 | |||||||
(in thousands of euros) | ||||||||
Borrowers in Spain: | ||||||||
Spanish Government | 4,897,118 | 5,487,358 | ||||||
Commercial, financial, agricultural and industrial | 37,407,850 | 40,082,919 | ||||||
Real estate-construction | 3,537,343 | 4,048,386 | ||||||
Real estate-mortgage | 30,940,525 | 41,091,269 | ||||||
Installment loans to individuals | 10,579,255 | 8,894,956 | ||||||
Lease financing | 4,441,411 | 5,198,113 | ||||||
Other | 1,969,754 | 4,199,954 | ||||||
Total | 93,773,256 | 109,002,955 | ||||||
Borrowers outside Spain: | ||||||||
Governments | 10,303,475 | 5,824,432 | ||||||
Banks and other financial institutions | 726,373 | 1,398,685 | ||||||
Commercial and industrial | 28,371,091 | 37,915,142 | ||||||
Mortgage loans | — | — | ||||||
Other (1) | 34,736,966 | 23,479,482 | ||||||
Total | 74,137,905 | 68,617,741 | ||||||
Total loans and leases, gross | 167,911,161 | 177,620,696 | ||||||
Allowance for possible loan losses | (4,938,204 | ) | (5,116,683 | ) | ||||
Loans and leases, net of allowances | 162,972,957 | 172,504,013 |
(1) | Of which €14.9 billion and €11.9 billion, respectively, at December 31, 2002 and 2003, are real-estate mortgages. The remaining amount corresponds to other types of customers, with no “loan concentration” as defined by Item III-C of Industry Guide 3. |
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Maturity | ||||||||||||||||||||||||||||||||
Less than | One to five | Over five | ||||||||||||||||||||||||||||||
one year | years | years | Total | |||||||||||||||||||||||||||||
% of | % of | % of | % of | |||||||||||||||||||||||||||||
Balance | Total | Balance | Total | Balance | Total | Balance | Total | |||||||||||||||||||||||||
(in thousands of euros, except percentages) | ||||||||||||||||||||||||||||||||
Loans to borrowers in Spain: | ||||||||||||||||||||||||||||||||
Spanish Government | 1,971,727 | 1.30 | % | 808,118 | 0.69 | % | 2,548,681 | 0.97 | % | 5,328,526 | 1.00 | % | ||||||||||||||||||||
Commercial, financial, agriculture and industrial | 33,934,204 | 22.35 | % | 20,879,651 | 17.91 | % | 16,598,690 | 6.31 | % | 71,412,545 | 13.44 | % | ||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||
Construction | 898,773 | 0.59 | % | 2,099,890 | 1.80 | % | 9,392,643 | 3.57 | % | 12,391,306 | 2.33 | % | ||||||||||||||||||||
Mortgage | 3,353,484 | 2.21 | % | 5,761,156 | 4.94 | % | 72,603,546 | 27.59 | % | 81,718,186 | 15.37 | % | ||||||||||||||||||||
Installment loans to individuals | 5,391,501 | 3.55 | % | 8,054,818 | 6.91 | % | 6,612,347 | 2.51 | % | 20,058,666 | 3.77 | % | ||||||||||||||||||||
Lease financing | 3,123,383 | 2.06 | % | 4,438,895 | 3.81 | % | 1,106,321 | 0.42 | % | 8,668,599 | 1.63 | % | ||||||||||||||||||||
Other | 3,471,108 | 2.29 | % | 1,858,656 | 1.59 | % | 338,470 | 0.13 | % | 5,668,234 | 1.07 | % | ||||||||||||||||||||
Total borrowers in Spain | 52,144,180 | 34.35 | % | 43,901,184 | 37.66 | % | 109,200,698 | 41.50 | % | 205,246,062 | 38.62 | % | ||||||||||||||||||||
Loans to borrowers outside Spain: | ||||||||||||||||||||||||||||||||
Other Governments | 2,916,081 | 1.92 | % | 1,305,444 | 1.12 | % | 748,188 | 0.28 | % | 4,969,713 | 0.94 | % | ||||||||||||||||||||
Financial | 673,488 | 0.44 | % | 71,049 | 0.06 | % | 23,228 | 0.01 | % | 767,765 | 0.14 | % | ||||||||||||||||||||
Commercial and Industrial | 77,860,212 | 51.29 | % | 38,058,181 | 32.65 | % | 12,519,872 | 4.76 | % | 128,438,265 | 24.16 | % | ||||||||||||||||||||
Mortgage loans | 10,662,373 | 7.02 | % | 27,238,508 | 23.37 | % | 139,730,850 | 53.10 | % | 177,631,731 | 33.42 | % | ||||||||||||||||||||
Other | 7,540,726 | 4.97 | % | 5,997,627 | 5.14 | % | 917,419 | 0.35 | % | 14,455,772 | 2.72 | % | ||||||||||||||||||||
Total loans to borrowers outside Spain | 99,652,880 | 65.65 | % | 72,670,809 | 62.34 | % | 153,939,557 | 58.50 | % | 326,263,246 | 61.38 | % | ||||||||||||||||||||
Total loans and leases, gross | 151,797,060 | 100.00 | % | 116,571,993 | 100.00 | % | 263,140,255 | 100.00 | % | 531,509,308 | 100.00 | % |
Fixed and variable rate loans | ||||||||||||
having a maturity of more than one year | ||||||||||||
Domestic | International | Total | ||||||||||
(in thousands of euros, except percentages) | ||||||||||||
Fixed rate | 26,988,115 | 84,943,844 | 111,931,959 | |||||||||
Variable rate | 126,189,857 | 141,590,432 | 267,780,289 | |||||||||
Total | 153,177,972 | 226,534,276 | 379,712,248 |
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EU-IFRS(*) | ||||||||||||||||||||||||
2004 | 2005 | 2006 | ||||||||||||||||||||||
% of | % of | % of | ||||||||||||||||||||||
total | total | total | ||||||||||||||||||||||
assets | assets | assets | ||||||||||||||||||||||
(in thousands of euros, except percentages) | ||||||||||||||||||||||||
OECD Countries: (1) | ||||||||||||||||||||||||
United Kingdom | 5,411,129 | 0.94 | % | 15,492,849 | 1.91 | % | 15,221,206 | 1.83 | % | |||||||||||||||
United States | 12,021,223 | 2.09 | % | 11,797,617 | 1.46 | % | 8,182,442 | 0.98 | % | |||||||||||||||
France | 1,982,782 | 0.34 | % | 22,992,147 | 2.84 | % | 7,614,250 | 0.91 | % | |||||||||||||||
Germany | 2,449,377 | 0.43 | % | 19,405,650 | 2.40 | % | 3,470,054 | 0.42 | % | |||||||||||||||
Italy | 1,171,670 | 0.20 | % | 2,539,602 | 0.31 | % | 1,835,052 | 0.22 | % | |||||||||||||||
Ireland | 7,989,843 | 1.39 | % | 841,519 | 0.10 | % | 587,834 | 0.07 | % | |||||||||||||||
Other OECD Countries (2) | 3,279,864 | 0.57 | % | 7,610,573 | 0.94 | % | 16,947,351 | 2.03 | % | |||||||||||||||
Total OECD | 34,305,888 | 5.96 | % | 80,679,957 | 9.97 | % | 53,858,189 | 6.46 | % | |||||||||||||||
Non-OECD Countries: | ||||||||||||||||||||||||
Latin American Countries (2) (3) | 4,310,301 | 0.75 | % | 8,937,626 | 1.10 | % | 7,585,080 | 0.91 | % | |||||||||||||||
Other (2) | 3,982,155 | 0.69 | % | 4,670,386 | 0.58 | % | 9,896,129 | 1.19 | % | |||||||||||||||
Total Non-OECD | 8,292,456 | 1.44 | % | 13,608,012 | 1.68 | % | 17,481,209 | 2.10 | % | |||||||||||||||
Total | 42,598,344 | 7.40 | % | 94,287,969 | 11.65 | % | 71,339,398 | 8.56 | % |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
(1) | The Organization for Economic Cooperation and Development. | |
(2) | Aggregate outstandings in any single country in this category do not exceed 0.75% of our total assets. | |
(3) | With regards to these cross-border outstandings, at December 31, 2004, 2005 and 2006, we had allowances for country-risk equal to €83.3, €281.4 million, €140.6 million, respectively. Such allowances for country-risk exceeded the Bank of Spain’s minimum requirements at such dates. |
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Banks and other | ||||||||||||||||
Financial | Commercial and | |||||||||||||||
Government | Institutions | Industrial | Total | |||||||||||||
(in thousands of euros) | ||||||||||||||||
2004 | ||||||||||||||||
United States | 26,902 | 11,481,187 | 513,134 | 12,021,223 | ||||||||||||
Ireland | — | 30,915 | 7,958,928 | 7,989,843 | ||||||||||||
United Kingdom | 12,558 | 4,990,900 | 407,671 | 5,411,129 | ||||||||||||
Total | 39,460 | 16,503,002 | 8,879,733 | 25,422,195 | ||||||||||||
2005 | ||||||||||||||||
France | 15,000,031 | 6,695,742 | 1,296,374 | 22,992,147 | ||||||||||||
Germany | 15,020,893 | 4,053,190 | 331,567 | 19,405,650 | ||||||||||||
United Kingdom | 144 | 13,113,700 | 2,379,005 | 15,492,849 | ||||||||||||
United States | 152,942 | 9,131,079 | 2,513,596 | 11,797,617 | ||||||||||||
Total | 30,174,010 | 32,993,711 | 6,520,542 | 69,688,263 | ||||||||||||
2006 | ||||||||||||||||
United Kingdom | 5,005 | 10,070,366 | 5,145,835 | 15,221,206 | ||||||||||||
United States | 397,945 | 4,276,080 | 3,508,417 | 8,182,442 | ||||||||||||
France | 149,656 | 5,867,658 | 1,596,936 | 7,614,250 | ||||||||||||
Total | 552,606 | 20,214,104 | 10,251,188 | 31,017,898 |
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(i) Negligible risk | • All types of credits made to, or guaranteed by, any European Union country or certain other specified public entities of the countries classified in category 1 of the country-risk categories; | ||||
• Advance payments for pensions or payrolls for the following month, when paid by any public entity and deposited at Santander; | |||||
• Those credits guaranteed by public entities of the countries classified in category 1 of the country-risk categories whose principal activity is to provide guarantees; | |||||
•Credits made to banks; | |||||
• Credits personally, jointly and unconditionally guaranteed by banks or mutual guaranty companies payable on first demand; | |||||
• Credits guaranteed under the name of the “Fondo de Garantía de Depósitos” if their credit risk quality is comparable with that of the European Union; or | |||||
• All credits collateralized by cash or by money market and treasury funds or securities issued by the central administrations or credit entities of countries listed in category 1 for country-risk purposes when the outstanding exposure is 90% or less than the redemption value of the money market and treasury funds and of the market value of the securities given as collateral. | |||||
(ii) Low risk | Assets in this category include: | ||||
• | assets qualified as collateral for monetary policy transactions in the European System of Central Banks, except those included in (i) above; | ||||
• | fully-secured mortgages and financial leases on finished residential properties when outstanding risk is less than 80% of the appraised value of such property; | ||||
• | ordinary mortgage backed securities; | ||||
• | assets from entities whose long term debt is rated “A” or better by a qualified rating agency; and | ||||
• | securities denominated in local currency and issued by government entities in countries other than those classified in category 1 of the country-risk categories, when such securities are registered in the books of the bank’s branch located in the issuer country. | ||||
(iii) Medium-low risk | Assets in this category include financial leases and mortgages and pledges on tangible assets that are not included in other categories, provided that the estimated value of the financial leases and the collateral totally covers the outstanding risk. | ||||
(iv) Medium risk | Assets in this category include those with Spanish residents or residents of countries classified in categories 1 or 2, provided that such assets are not included in other categories. |
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(v) Medium-high risk | Assets in this category include (unless these assets qualify as “high risk” assets) loans to individuals for the acquisition of durable consumption goods, other goods or current services not for professional use, except those registered in the Registry of Sales of Movable Assets (“Registro de Ventas de Bienes Muebles”); and risks with residents of countries classified in categories 3 to 6, to the extent not covered by country-risk allowances. | ||||
(vi) High risk | Assets in this category include credit card balances; current account overdrafts and excesses in credit accounts (except those included in categories (i) and (ii)). |
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• | Outstandings guaranteed by residents in other countries in a better category should be classified in the category of the guarantor. | ||
• | Fully secured loans, when the security covers sufficiently the outstanding risk and can be enforced in Spain or in any other “category 1” country, should be classified as category 1. | ||
• | Outstanding risks with foreign branches of a bank should be classified according to the residence of the headquarters of those branches. |
Country-Risk Categories | Description | |
1 | European Union, Norway, Switzerland, Iceland, USA, Canada, Japan, Australia and New Zealand | |
2 | Low risk countries not included in 1 | |
3 | Countries with transitory difficulties | |
4 | Countries with serious difficulties | |
5 | Doubtful countries | |
6 | Bankrupt countries |
• | Sub-standard assets: All outstandings in categories 3 and 4 except when they should be classified as non-performing or charged-off assets due to credit risk attributable to the client. | ||
• | Non-performing assets: All outstandings in category 5 and off-balance sheet risks classified in category 6, except when they should be classified as non-performing or charged-off assets due to credit risk attributable to the client. | ||
• | Charged-off assets: All other outstandings in category 6 except when they should be classified as charged-off assets due to credit risk attributable to the client. |
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EU-IFRS(*) | ||||||||||||
At December 31, | ||||||||||||
2004 | 2005 | 2006 | ||||||||||
(in thousands of euros) | ||||||||||||
Interest owed on non-accruing assets | ||||||||||||
Domestic | 36,273 | 38,751 | 49,537 | |||||||||
International | 184,083 | 273,834 | 218,216 | |||||||||
Total | 220,363 | 312,585 | 267,754 | |||||||||
Interest received on non-accruing assets | ||||||||||||
Domestic | 83,535 | 79,183 | 86,370 | |||||||||
International | 105,273 | 77,602 | 70,435 | |||||||||
Total | 188,808 | 156,785 | 156,805 |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
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Allowance | |||||||||||
Period Overdue | Companies | Other clients | |||||||||
3-6 months | 5.3 | % | 4.5 | % | |||||||
6-12 months | 27.8 | % | 27.4 | % | |||||||
12-18 months | 65.1 | % | 60.5 | % | |||||||
18-24 months | 95.8 | % | 93.3 | % | |||||||
More than 24 months | 100 | % | 100 | % |
Period Overdue | Allowance | |||
3 months-3 years | 2 | % | ||
3-4 years | 25 | % | ||
4-5 years | 50 | % | ||
5-6 years | 75 | % | ||
More than 6 years | 100 | % |
Allowance | |||||||||||
Period Overdue | Companies | Other clients | |||||||||
3-6 months | 4.5 | % | 3.8 | % | |||||||
6-12 months | 23.6 | % | 23.3 | % | |||||||
12-18 months | 55.3 | % | 47.2 | % | |||||||
18-24 months | 81.4 | % | 79.3 | % | |||||||
More than 24 months | 100 | % | 100 | % |
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Categories: | Minimum percentage of coverage | ||||||||||
Category 3 | 10.1 | % | |||||||||
Category 4 | 22.8 | % | |||||||||
Category 5 | 83.5 | % | |||||||||
Category 6 | 100 | % |
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EU-IFRS(*) | ||||||||||||
Year Ended December 31, | ||||||||||||
2004 | 2005 | 2006 | ||||||||||
(in thousands of euros) | ||||||||||||
Allowance for credit losses at beginning of year | ||||||||||||
Borrowers in Spain | 1,849,001 | 2,836,564 | 3,664,349 | |||||||||
Borrowers outside Spain | 3,172,452 | 4,160,864 | 4,092,326 | |||||||||
Total | 5,021,453 | 6,997,428 | 7,756,675 | |||||||||
Inclusion of acquired companies’ credit loss allowances | ||||||||||||
Borrowers in Spain | 1,972 | — | — | |||||||||
Borrowers outside Spain | 1,044,042 | 4,006 | 164,530 | |||||||||
Total | 1,046,014 | 4,006 | 164,530 | |||||||||
Recoveries of loans previously charged off (1) | ||||||||||||
Borrowers in Spain | 145,591 | 105,800 | 123,566 | |||||||||
Borrowers outside Spain | 259,777 | 381,217 | 428,040 | |||||||||
Total | 405,368 | 487,017 | 551,606 | |||||||||
Net provisions for credit losses (1) | ||||||||||||
Borrowers in Spain | 868,520 | 746,519 | 793,898 | |||||||||
Borrowers outside Spain | 713,220 | 1,009,527 | 1,689,730 | |||||||||
Total | 1,581,740 | 1,756,046 | 2,483,628 | |||||||||
Charge offs against credit loss allowance | ||||||||||||
Borrowers in Spain | (344,392 | ) | (226,036 | ) | (269,559 | ) | ||||||
Borrowers outside Spain | (681,036 | ) | (1,293,458 | ) | (2,100,306 | ) | ||||||
Total | (1,025,428 | ) | (1,519,494 | ) | (2,369,865 | ) | ||||||
Other movements (2) | (31,719 | ) | 31,672 | (298,446 | ) | |||||||
Allowance for credit losses at end of year | ||||||||||||
Borrowers in Spain | 2,836,564 | 3,664,349 | 4,318,320 | |||||||||
Borrowers outside Spain | 4,160,864 | 4,092,326 | 3,969,808 | |||||||||
Total | 6,997,428 | 7,756,675 | 8,288,128 |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
(1) | We have not included separate line items for charge-offs of loans not previously provided for (loans charged-off against income) and recoveries of loans previously charged-off as these are not permitted under the EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004. | |
(2) | The shift in “Other Movements” from 2004 to 2005, and to 2006 principally reflects foreign exchange differences. |
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Previous Spanish GAAP | ||||||||
Year Ended December 31, | ||||||||
2002 | 2003 | |||||||
(in thousands of euros) | ||||||||
Allowance for credit losses at beginning of year | ||||||||
Borrowers in Spain | 1,771,321 | 1,725,606 | ||||||
Borrowers outside Spain | 3,811,553 | 3,438,672 | ||||||
Total | 5,582,874 | 5,164,278 | ||||||
Inclusion of acquired companies’ credit loss allowances | ||||||||
Borrowers in Spain | — | — | ||||||
Borrowers outside Spain | 9,034 | — | ||||||
Total | 9,034 | — | ||||||
Loans charged off against income (1) | ||||||||
Borrowers in Spain | (14,921 | ) | (12,729 | ) | ||||
Borrowers outside Spain | (117,474 | ) | (91,110 | ) | ||||
Total | (132,395 | ) | (103,839 | ) | ||||
Recoveries of loans previously charged off (1) | ||||||||
Borrowers in Spain | 141,850 | 108,722 | ||||||
Borrowers outside Spain | 251,804 | 248,765 | ||||||
Total | 393,654 | 357,487 | ||||||
Net provisions for credit losses (1) | ||||||||
Borrowers in Spain | 318,656 | 681,234 | ||||||
Borrowers outside Spain | 1,329,536 | 814,453 | ||||||
Total | 1,648,192 | 1,495,687 | ||||||
Charge-offs against credit loss allowance | ||||||||
Borrowers in Spain | (249,757 | ) | (259,366 | ) | ||||
Borrowers outside Spain | (1,223,617 | ) | (811,719 | ) | ||||
Total | (1,473,374 | ) | (1,071,085 | ) | ||||
Other movements (2) | (863,707 | ) | (428,132 | ) | ||||
Allowance for credit losses at end of year | ||||||||
Borrowers in Spain | 1,725,606 | 1,681,017 | ||||||
Borrowers outside Spain | 3,438,672 | 3,733,379 | ||||||
Total | 5,164,278 | 5,414,396 |
(1) | We have included separate line items for charge-offs of loans not previously provided for (loans charged-off against income) and recoveries of loans previously charged-off in order to satisfy the SEC’s requirement to show all charge-offs and recoveries in this table. We have increased provisions for credit losses for purposes of this table by the amount of charge-offs of loans not previously provided for and decreased it by the amount of recoveries of loans previously provided for to produce the line item “net provisions for credit losses” in this table. This has also allowed the figures for net provisions for credit losses in this table to match the amounts recorded under “Write-offs and credit loss provisions (net)” in our Consolidated Income Statement. | |
(2) | The shift in “Other Movements” from 2002, to 2003 principally reflects foreign exchange differences. |
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EU-IFRS(*) | ||||||||||||
Year Ended December 31, | ||||||||||||
2004 | 2005 | 2006 | ||||||||||
(in thousands of euros) | ||||||||||||
Recoveries of loans previously charged off- | ||||||||||||
Domestic: | ||||||||||||
Commercial, financial, agricultural, Industrial | 60,113 | 51,649 | 37,879 | |||||||||
Real estate-construction | 2,488 | 140 | 5,646 | |||||||||
Real estate-mortgage | 24,799 | 5,226 | 11,249 | |||||||||
Installment loans to individuals | 44,340 | 32,303 | 59,726 | |||||||||
Lease finance | 4,050 | 2,903 | 5,023 | |||||||||
Other | 9,800 | 13,579 | 4,043 | |||||||||
Total Borrowers in Spain | 145,591 | 105,800 | 123,566 | |||||||||
Borrowers outside Spain | ||||||||||||
Government and official institutions | 1,958 | 1 | 1,126 | |||||||||
Bank and other financial institutions | 10,373 | 1,691 | 21 | |||||||||
Commercial and industrial | 141,324 | 292,279 | 299,302 | |||||||||
Mortgage loans | 8,288 | 3,468 | 7,751 | |||||||||
Other | 97,834 | 83,778 | 119,840 | |||||||||
Borrowers outside Spain | 259,777 | 381,217 | 428,040 | |||||||||
Total | 405,368 | 487,017 | 551,606 | |||||||||
Net provisions for credit losses- | ||||||||||||
Domestic: | ||||||||||||
Commercial, financial, agricultural, Industrial | 333,801 | 296,879 | 405,914 | |||||||||
Real estate-construction | (621 | ) | 49,925 | 20,430 | ||||||||
Real estate-mortgage | 46,016 | 62,526 | 96,209 | |||||||||
Installment loans to individuals | 121,574 | 161,027 | 278,223 | |||||||||
Lease finance | 22,977 | 19,838 | 55,894 | |||||||||
Other | 344,774 | 156,324 | (62,772 | ) | ||||||||
Total Borrowers in Spain | 868,520 | 746,519 | 793,898 | |||||||||
Borrowers outside Spain | ||||||||||||
Government and official institutions | (5,085 | ) | 16,836 | 2,035 | ||||||||
Bank and other financial institutions | 46,117 | 1,698 | 72,479 | |||||||||
Commercial and industrial | 472,200 | 829,058 | 1,128,005 | |||||||||
Mortgage loans | 64,375 | 88,812 | 11,378 | |||||||||
Other | 135,613 | 73,123 | 475,833 | |||||||||
Borrowers outside Spain | 713,220 | 1,009,527 | 1,689,730 | |||||||||
Total | 1,581,740 | 1,756,046 | 2,483,628 | |||||||||
Charge offs against credit loss allowance | ||||||||||||
Domestic: | ||||||||||||
Commercial, financial, agricultural, Industrial | (158,248 | ) | (113,357 | ) | (55,982 | ) | ||||||
Real estate-construction | (667 | ) | (8 | ) | (18,911 | ) | ||||||
Real estate-mortgage | (36,253 | ) | (14,674 | ) | (7,284 | ) | ||||||
Installment loans to individuals | (113,652 | ) | (67,554 | ) | (184,218 | ) | ||||||
Lease finance | (2,249 | ) | (8,007 | ) | (1,775 | ) | ||||||
Other | (33,323 | ) | (22,436 | ) | (1,389 | ) | ||||||
Total Borrowers in Spain | (344,392 | ) | (226,036 | ) | (269,559 | ) | ||||||
Borrowers outside Spain | ||||||||||||
Government and official institutions | (1,706 | ) | — | (174 | ) | |||||||
Bank and other financial institutions | (85,339 | ) | (86 | ) | (12,189 | ) | ||||||
Commercial and industrial | (551,804 | ) | (1,120,180 | ) | (1,333,617 | ) | ||||||
Mortgage loans | (4,923 | ) | (30,562 | ) | (46,603 | ) | ||||||
Other | (37,265 | ) | (142,630 | ) | (707,723 | ) | ||||||
Borrowers outside Spain | (681,036 | ) | (1,293,458 | ) | (2,100,306 | ) | ||||||
Total | (1,025,428 | ) | (1,519,494 | ) | (2,369,865 | ) |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
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Previous Spanish GAAP | ||||||||
Year Ended December 31, | ||||||||
2002 | 2003 | |||||||
(in thousands of euros) | ||||||||
Loans charged off against income- | ||||||||
Borrowers in Spain: | ||||||||
Commercial, financial, agricultural, Industrial | (685 | ) | (2,917 | ) | ||||
Real estate-construction | (4 | ) | (3 | ) | ||||
Real estate-mortgage | (465 | ) | (1,042 | ) | ||||
Installment loans to individuals | (10,927 | ) | (7,763 | ) | ||||
Lease finance | (2,491 | ) | (992 | ) | ||||
Other | (349 | ) | (12 | ) | ||||
Total Borrowers in Spain | (14,921 | ) | (12,729 | ) | ||||
Borrowers outside Spain | ||||||||
Government and official institutions | — | — | ||||||
Bank and other financial institutions | — | (2,762 | ) | |||||
Commercial and industrial | (71,433 | ) | (15,384 | ) | ||||
Other | (46,041 | ) | (72,964 | ) | ||||
Total borrowers outside Spain | (117,474 | ) | (91,110 | ) | ||||
Total | (132,395 | ) | (103,839 | ) | ||||
Recoveries of loans previously charged off- | ||||||||
Domestic: | ||||||||
Commercial, financial, agricultural, Industrial | 58,131 | 47,069 | ||||||
Real estate-construction | 478 | 425 | ||||||
Real estate-mortgage | 24,847 | 15,164 | ||||||
Installment loans to individuals | 38,117 | 35,389 | ||||||
Lease finance | 3,981 | 1,644 | ||||||
Other | 16,296 | 9,031 | ||||||
Total Borrowers in Spain | 141,850 | 108,722 | ||||||
Borrowers outside Spain | ||||||||
Government and official institutions | — | 1,766 | ||||||
Bank and other financial institutions | 3,097 | 13,485 | ||||||
Commercial and industrial | 121,316 | 109,577 | ||||||
Other | 127,391 | 123,937 | ||||||
Borrowers outside Spain | 251,804 | 248,765 | ||||||
Total | 393,654 | 357,487 | ||||||
Provisions for credit losses- | ||||||||
Domestic: | ||||||||
Commercial, financial, agricultural, Industrial | 119,155 | 318,538 | ||||||
Real estate-construction | 1,139 | 759 | ||||||
Real estate-mortgage | 17,632 | 18,973 | ||||||
Installment loans to individuals | 93,545 | 91,799 | ||||||
Lease finance | 19,007 | 36,267 | ||||||
Other | 68,178 | 214,898 | ||||||
Total Borrowers in Spain | 318,656 | 681,234 | ||||||
Borrowers outside Spain | ||||||||
Government and official institutions | (1,966 | ) | (3,350 | ) | ||||
Bank and other financial institutions | 69,459 | (19,983 | ) | |||||
Commercial and industrial | 892,446 | 434,725 | ||||||
Other | 369,597 | 403,061 | ||||||
Borrowers outside Spain | 1,329,536 | 814,453 | ||||||
Total | 1,648,192 | 1,495,687 | ||||||
Charge offs against credit loss allowance | ||||||||
Domestic: | ||||||||
Commercial, financial, agricultural, Industrial | (112,943 | ) | (154,360 | ) | ||||
Real estate-construction | (197 | ) | (811 | ) | ||||
Real estate-mortgage | (11,506 | ) | (19,109 | ) | ||||
Installment loans to individuals | (61,131 | ) | (59,334 | ) | ||||
Lease finance | (1,085 | ) | (1,885 | ) | ||||
Other | (62,895 | ) | (23,867 | ) | ||||
Total Borrowers in Spain | (249,757 | ) | (259,366 | ) | ||||
Borrowers outside Spain | ||||||||
Government and official institutions | — | (451 | ) | |||||
Bank and other financial institutions | (665 | ) | (196,662 | ) | ||||
Commercial and industrial | (384,373 | ) | (288,151 | ) | ||||
Other | (838,579 | ) | (326,455 | ) | ||||
Borrowers outside Spain | (1,223,617 | ) | (811,719 | ) | ||||
Total | (1,473,374 | ) | (1,071,085 | ) |
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EU-IFRS(*) | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2004 | % | 2005 | % | 2006 | % | |||||||||||||||||||
(in thousands of euros, except percentages) | ||||||||||||||||||||||||
Borrowers in Spain: | ||||||||||||||||||||||||
Commercial, financial, agricultural, industrial | 1,494,605 | 21.36 | 2,056,003 | 26.51 | 2,302,546 | 27.78 | ||||||||||||||||||
Real estate-construction | 7,929 | 0.11 | 270,369 | 3.49 | 267,771 | 3.23 | ||||||||||||||||||
Real estate-mortgage | 206,461 | 2.95 | 243,335 | 3.14 | 457,132 | 5.52 | ||||||||||||||||||
Installment loans to individuals | 491,698 | 7.03 | 612,564 | 7.90 | 889,283 | 10.73 | ||||||||||||||||||
Lease finance | 105,101 | 1.50 | 98,830 | 1.27 | 166,542 | 2.01 | ||||||||||||||||||
Other | 530,771 | 7.59 | 383,248 | 4.94 | 235,046 | 2.84 | ||||||||||||||||||
Total Borrowers in Spain | 2,836,564 | 40.54 | 3,664,349 | 47.24 | 4,318,320 | 52.10 | ||||||||||||||||||
Borrowers outside Spain | ||||||||||||||||||||||||
Government and official institutions | 53,966 | 0.77 | 41,302 | 0.53 | 30,054 | 0.36 | ||||||||||||||||||
Bank and other financial institutions | 176,115 | 2.52 | 68,122 | 0.88 | 149,729 | 1.81 | ||||||||||||||||||
Commercial and industrial | 3,551,929 | 50.76 | 3,413,736 | 44.01 | 2,670,075 | 32.22 | ||||||||||||||||||
Mortgage loans | 199,022 | 2.84 | 363,980 | 4.69 | 831,972 | 10.04 | ||||||||||||||||||
Other | 179,832 | 2.57 | 205,186 | 2.65 | 287,978 | 3.47 | ||||||||||||||||||
Total borrowers outside Spain | 4,160,864 | 59.46 | 4,092,326 | 52.76 | 3,969,808 | 47.90 | ||||||||||||||||||
Total | 6,997,428 | 100.00 | 7,756,675 | 100.00 | 8,288,128 | 100.00 |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
EU-IFRS(*) | ||||||||||||
At December 31, | ||||||||||||
Non-performing assets | 2004 | 2005 | 2006 | |||||||||
(in thousands of euros, except percentages) | ||||||||||||
Past-due and other non-performing assets (1) (2) (3): | ||||||||||||
Domestic | 1,018,088 | 1,110,784 | 1,288,857 | |||||||||
International | 3,096,603 | 3,230,716 | 3,318,690 | |||||||||
Total | 4,114,691 | 4,341,500 | 4,607,547 | |||||||||
Non-performing loans as a percentage of total loans | 1.09 | % | 0.98 | % | 0.87 | % | ||||||
Net loan charge-offs as a percentage of total loans | 0.16 | % | 0.23 | % | 0.34 | % |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
(1) | We estimate that the total amount of our non-performing assets fully provisioned under the EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 and which under U.S. GAAP would have been charged-off from the balance sheet was €1,567.0 million, €1,302.6 million and €1,206.5 million at December 31, 2004, 2005 and 2006 respectively. | |
(2) | Non-performing assets due to country risk were €117.1 million, €40.3 and €23.7 million at December 31, 2004, 2005 and 2006, respectively. | |
(3) | We estimate that at December 31, 2004, 2005 and 2006, (i) the total amount of our non-performing past-due assets was €3,501.0 million, €3,367.1 million and €3,841.2 million, respectively, and (ii) the total amount of our other non-performing assets was €613.7 million, €974.4 million and €766.3 million, respectively. |
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Previous Spanish GAAP | ||||||||
At December 31, | ||||||||
2002 | 2003 | |||||||
(in thousands of euros, except percentages) | ||||||||
Past-due and other non-performing assets (1) (2) (3): | ||||||||
Domestic | 1,003,851 | 931,583 | ||||||
International | 2,672,616 | 2,290,921 | ||||||
Total | 3,676,467 | 3,222,504 | ||||||
Non-performing loans as a percentage of total loans | 2.19 | % | 1.81 | % | ||||
Net loan charge-offs as a percentage of total loans | 0.72 | % | 0.46 | % |
(1) | The figures in this table do not reflect the entire principal amount of loans having payments 90 days or more past due unless the entire principal amount of the loan is classified as non-performing under Bank of Spain regulations as described above under “—Bank of Spain Classification Requirements”. We estimate that the entire principal amount of such loans would have been €4,486.0 million, €3,823.4 million at December 31, 2002 and 2003. | |
(2) | We estimate that at December 31, 2002 and 2003, (i) the total amount of our non-performing past-due assets was €2,208.8 million and €2,327.3 million, respectively, and (ii) the total amount of our other non-performing assets was €1,467.6 million and €895.2 million, respectively. | |
(3) | We estimate that the total amount of our non-performing assets fully provisioned under Spanish GAAP and which under U.S. GAAP would have been charged-off from the balance sheet was €341.8 million at December 31, 2003. |
EU-IFRS(*) | ||||||||||||||||||||||||
Year ended | Year ended | |||||||||||||||||||||||
December 31, | December 31, | Quarter ended | ||||||||||||||||||||||
(in thousands of euros) | 2004 | 2005 | Mar. 31, 2006 | Jun. 30, 2006 | Sep. 30, 2006 | Dec. 31, 2006 | ||||||||||||||||||
Opening balance | 3,512,727 | 4,114,691 | 4,341,500 | 4,369,871 | 4,488,817 | 4,646,619 | ||||||||||||||||||
Net additions | 1,627,392 | 1,737,692 | 508,640 | 568,536 | 717,611 | 841,125 | ||||||||||||||||||
Writeoffs | (1,025,428 | ) | (1,510,833 | ) | (480,269 | ) | (449,590 | ) | (559,809 | ) | (880,197 | ) | ||||||||||||
Closing balance(1) | 4,114,691 | 4,341,500 | 4,369,871 | 4,488,817 | 4,646,619 | 4,607,547 |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
(1) | Non-performing assets due to country-risk were €117.1 million, €40.3 million and €23.7 million at December 31, 2004, 2005 and 2006, respectively. |
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Previous Spanish GAAP | ||||||||
Year ended December 31, | ||||||||
2002 | 2003 | |||||||
(in thousands of euros) | ||||||||
Opening balance | 3,895,514 | 3,676,467 | ||||||
Net additions | 1,356,366 | 720,500 | ||||||
Writeoffs | (1,575,413 | ) | (1,174,463 | ) | ||||
Closing balance | 3,676,467 | 3,222,504 |
EU-IFRS(*) | ||||||||||||
At December 31, | ||||||||||||
2004 | 2005 | 2006 | ||||||||||
(in thousands of euros, except percentages) | ||||||||||||
Computable credit risk (1) | 411,482,598 | 489,662,040 | 588,372,837 | |||||||||
Non-performing assets | ||||||||||||
Mortgage loans | 1,352,564 | 1,209,137 | 1,364,317 | |||||||||
Other | 2,762,127 | 3,132,363 | 3,243,230 | |||||||||
Total non-performing assets | 4,114,691 | 4,341,500 | 4,607,547 | |||||||||
Allowances for non-performing assets | 6,813,354 | 7,902,225 | 8,626,937 | |||||||||
Ratios | ||||||||||||
Non-performing assets to computable credit risk | 1.00 | % | 0.89 | % | 0.78 | % | ||||||
Coverage ratio (2) | 165.59 | % | 182.02 | % | 187.23 | % |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
(1) | Computable credit risk is the sum of the face amounts of loans and leases (including non-performing assets but excluding country risk loans), guarantees and documentary credits. | |
(2) | Allowances for non-performing assets as a percentage of non-performing assets. |
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Previous Spanish GAAP | ||||||||
At December 31, | ||||||||
2002 | 2003 | |||||||
(in thousands of euros, except percentages) | ||||||||
Computable credit risk (1) | 194,917,391 | 207,979,474 | ||||||
Non-performing assets | ||||||||
Mortgage loans | 361,076 | 510,265 | ||||||
Other | 3,315,391 | 2,712,239 | ||||||
Total non performing assets | 3,676,467 | 3,222,504 | ||||||
Allowances for non-performing assets | 5,144,855 | 5,323,127 | ||||||
Ratios | ||||||||
Non-performing assets to computable credit risk | 1.89 | % | 1.55 | % | ||||
Coverage ratio (2) | 139.94 | % | 165.19 | % |
(1) | Computable credit risk is the sum of the face amounts of loans and leases (including non-performing assets but excluding country risk loans), guarantees and documentary credits. | |
(2) | Allowances for non-performing assets as a percentage of non-performing assets. |
EU-IFRS(*) | ||||||||||||
Year ended December 31, | ||||||||||||
2004 | 2005 | 2006 | ||||||||||
(in millions of euros) | ||||||||||||
Risk (gross) | 1,063.7 | 668.1 | 899.1 | |||||||||
Provisions | 275.0 | 313.0 | 233.5 | |||||||||
Risk (net) | 788.8 | 355.1 | 665.6 |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
Previous Spanish GAAP | ||||||||
Year ended December 31, | ||||||||
2002 | 2003 | |||||||
(in millions of euros) | ||||||||
Risk (gross) | 409.5 | 497.0 | ||||||
Provisions | 337.5 | 406.0 | ||||||
Risk (net) | 72.0 | 91.0 |
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Table of Contents
EU-IFRS(*) | ||||||||||||
Year Ended December 31, | ||||||||||||
Summary of non-accrual assets | 2004 | 2005 | 2006 | |||||||||
(in millions of euros) | ||||||||||||
Assets classified as Non Performing Assets | 4,114.7 | 4,341.5 | 4,607.5 | |||||||||
Non Performing Assets due to country risk | 117.1 | 40.3 | 23.7 | |||||||||
Other assets on non-accrual status due to country risk | 717.5 | 626.5 | 874.5 | |||||||||
Total non-accruing assets | 4,949.3 | 5,008.3 | 5,505.7 |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
Previous Spanish GAAP | ||||||||
Year Ended December 31, | ||||||||
Summary of non-accrual assets | 2002 | 2003 | ||||||
(in millions of euros) | ||||||||
Assets classified as Non Performing Assets | 3,676.5 | 3,222.5 | ||||||
Outstanding balances of loans partially classified as non-performing | 809.5 | 600.9 | ||||||
Other assets on non-accrual status due to country risk | 259.5 | 249.7 | ||||||
Total non-accruing assets | 4,745.5 | 4,073.1 |
EU-IFRS(*) | ||||||||||||||||||||||||||||
Year ended | Year ended | Quarterly movements | Total Year | |||||||||||||||||||||||||
December 31, | December 31, | Mar. 31, | Jun. 30, | Sep. 30, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||
2004 | 2005 | 2006 | 2006 | 2006 | 2006 | 2006 | ||||||||||||||||||||||
(in thousands of euros, except percentages) | ||||||||||||||||||||||||||||
Opening balance | 242,155 | 372,519 | 408,042 | 409,853 | 378,495 | 380,817 | 408,042 | |||||||||||||||||||||
Foreclosures | 455,024 | 442,458 | 126,246 | 122,122 | 121,778 | 269,662 | 639,808 | |||||||||||||||||||||
Sales | (324,660 | ) | (406,935 | ) | (124,435 | ) | (153,480 | ) | (119,456 | ) | (242,029 | ) | (639,400 | ) | ||||||||||||||
Gross foreclosed assets | 372,519 | 408,042 | 409,853 | 378,495 | 380,817 | 408,450 | 408,450 | |||||||||||||||||||||
Allowances established | (89,773 | ) | (115,683 | ) | (119,723 | ) | (99,700 | ) | (116,508 | ) | (129,611 | ) | (129,611 | ) | ||||||||||||||
Allowance as a percentage of foreclosed assets | 24.10 | % | 28.35 | % | 29.21 | % | 26.34 | % | 30.59 | % | 31.73 | % | 31.73 | % | ||||||||||||||
Closing balance (net) | 282,746 | 292,359 | 290,130 | 278,795 | 264,309 | 278,839 | 278,839 |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
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EU-IFRS(*) | ||||||||||||
Deposits from central banks and credit | At December 31, | |||||||||||
institutions- | 2004 | 2005 | 2006 | |||||||||
(in thousands of euros) | ||||||||||||
Reciprocal accounts | 39,162 | 190,885 | 411,314 | |||||||||
Time deposits | 42,459,721 | 47,224,471 | 63,589,635 | |||||||||
Other demand accounts | 4,191,073 | 7,383,695 | 2,225,037 | |||||||||
Repurchase agreements | 33,920,297 | 91,399,196 | 45,417,839 | |||||||||
Central bank credit account drawdowns | 3,107,895 | 2,369,406 | 1,348,815 | |||||||||
Other financial liabilities associated with transferred financial assets | — | 7,170 | 8,445 | |||||||||
Hybrid financial liabilities | 32,191 | 47,584 | 34,852 | |||||||||
Total | 83,750,339 | 148,622,407 | 113,035,937 | |||||||||
Customer deposits- | ||||||||||||
Demand deposits- | ||||||||||||
Current accounts | 67,714,687 | 80,631,188 | 89,151,030 | |||||||||
Savings accounts | 78,849,072 | 90,471,827 | 93,717,633 | |||||||||
Other demand deposits | 3,720,956 | 1,747,720 | 2,025,095 | |||||||||
Time deposits- | ||||||||||||
Fixed-term deposits | 80,052,445 | 77,166,817 | 86,345,788 | |||||||||
Home-purchase savings accounts | 289,779 | 269,706 | 324,262 | |||||||||
Discount deposits | 10,163,257 | 16,128,577 | 7,132,341 | |||||||||
Funds received under financial asset transfers | — | 1 | — | |||||||||
Hybrid financial liabilities | 1,873,863 | 4,141,071 | 4,994,535 | |||||||||
Other financial liabilities associated with transferred financial assets | — | 20,346 | — | |||||||||
Other time deposits | 498,961 | 351,620 | 470,140 | |||||||||
Notice deposits | 24,911 | 33,713 | 45,849 | |||||||||
Repurchase agreements | 40,023,685 | 34,802,694 | 47,015,928 | |||||||||
Total | 283,211,616 | 305,765,280 | 331,222,601 | |||||||||
Total deposits | 366,961,955 | 454,387,687 | 444,258,538 |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
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EU-IFRS(*) | ||||||||||||
Deposits from central banks and | At December 31, | |||||||||||
credit institutions- | 2004 | 2005 | 2006 | |||||||||
(in thousands of euros) | ||||||||||||
Due to credit institutions | ||||||||||||
Offices in Spain | 29,594,503 | 76,504,500 | 45,786,284 | |||||||||
Offices outside Spain: | ||||||||||||
Other EU countries | 9,559,941 | 9,647,389 | 47,733,849 | |||||||||
United States | 2,536,104 | 1,439,643 | 300,336 | |||||||||
Other OECD countries (1) | 26,844,609 | 36,905,723 | 24,509 | |||||||||
Central and South America (1) | 14,974,332 | 23,926,745 | 19,146,367 | |||||||||
Other | 240,850 | 198,407 | 44,592 | |||||||||
Total offices outside Spain | 54,155,836 | 72,117,907 | 67,249,653 | |||||||||
Total | 83,750,339 | 148,622,407 | 113,035,937 | |||||||||
Customer deposits | ||||||||||||
Offices in Spain | 102,249,913 | 107,117,818 | 120,485,991 | |||||||||
Offices outside Spain: | ||||||||||||
Other EU countries | 135,209,492 | 133,274,597 | 136,730,342 | |||||||||
United States | 6,037,483 | 7,578,598 | 7,512,963 | |||||||||
Other OECD countries (1) | 74,859 | 106,151 | 79,117 | |||||||||
Central and South America (1) | 38,499,807 | 56,395,157 | 64,984,913 | |||||||||
Other | 1,140,062 | 1,292,959 | 1,429,275 | |||||||||
Total offices outside Spain | 180,961,703 | 198,647,462 | 210,736,610 | |||||||||
Total | 283,211,616 | 305,765,280 | 331,222,601 | |||||||||
Total deposits | 366,961,955 | 454,387,687 | 444,258,538 |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
(1) | In this schedule Mexico is classified under “Central and South America.” |
December 31, 2006 | ||||||||||||
Domestic | International | Total | ||||||||||
(in thousands of euros) | ||||||||||||
Under 3 months | 13,672,757 | 16,994,282 | 30,667,039 | |||||||||
3 to 6 months | 1,871,785 | 3,416,972 | 5,288,757 | |||||||||
6 to 12 months | 2,705,830 | 3,902,752 | 6,608,582 | |||||||||
Over 12 months | 2,907,384 | 12,721,918 | 15,629,302 | |||||||||
Total | 21,157,756 | 37,035,924 | 58,193,680 |
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EU-IFRS(*) | ||||||||||||||||||||||||
At December 31, | ||||||||||||||||||||||||
2004 | 2005 | 2006 | ||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||
Short-Term Borrowings | Amount | Rate | Amount | Rate | Amount | Rate | ||||||||||||||||||
(in thousands of euros, except percentages) | ||||||||||||||||||||||||
Securities sold under agreements to repurchase (principally Spanish Treasury notes and bills): | ||||||||||||||||||||||||
At December 31 | 67,856,642 | 1.55 | % | 126,201,890 | 3.55 | % | 92,433,767 | 4.39 | % | |||||||||||||||
Average during year | 62,726,813 | 3.24 | % | 91,458,502 | 3.65 | % | 101,682,243 | 3.74 | % | |||||||||||||||
Maximun month-end balance | 69,575,864 | 129,563,533 | 129,816,503 | |||||||||||||||||||||
Other short-term borrowings: | ||||||||||||||||||||||||
At December 31 | 18,727,698 | 2.66 | % | 25,157,976 | 2.34 | % | 35,385,525 | 2.50 | % | |||||||||||||||
Average during year | 14,975,003 | 2.26 | % | 21,249,880 | 4.23 | % | 25,501,630 | 2.66 | % | |||||||||||||||
Maximun month-end balance | 18,752,237 | 26,688,044 | 35,385,525 | |||||||||||||||||||||
Total short-term borrowings at year-end | 86,584,340 | 1.79 | % | 151,359,866 | 3.35 | % | 127,819,292 | 3.87 | % |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
• | Program of activities detailing the transactions to be made and the corporate structure of the branch. | ||
• | Address in Spain of the branch. |
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• | Name and curriculum vitae of the branch’s managers. | ||
• | Stockholders’ equity and solvency ratio of the financial institution and its consolidated group. | ||
• | Detailed information about any deposit guarantee scheme that assures the protection of the branch’s depositors. |
• | amount of the investment, | ||
• | percentage of the share capital and of the total voting rights, | ||
• | name of the companies through which the investment will be made, | ||
• | draft of the by-laws, | ||
• | program of activities, setting out the types of business envisaged, the administrative and accounting organization and the internal control procedures, including those established to prevent money laundering transactions, | ||
• | list of the persons who will be members of the first board of directors and of the senior management, | ||
• | list of partners with significant holdings; and | ||
• | detailed description of the banking, tax and anti-money laundering regulations of the country where it will be located. |
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• | Individually, for all significant debt instruments and for instruments which, although not material, are not susceptible to being classified in homogeneous groups of instruments with similar risk characteristics: instrument type, debtor’s industry and geographical location, type of guarantee or collateral, and age of past-due amounts, taking into account: (i) the present value of future cash flows, discounted at an appropriate discount rate; (ii) the debtor’s financial situation; and (iii) any guarantees in place. |
• | Collectively, in all other cases: we classify transactions on the basis of the nature of the obligors, the conditions of the countries in which they reside, transaction status and type of collateral or guarantee, and age of past-due amounts. For each risk group, we establish the appropriate impairment losses (“identified losses”) that must be recognized. |
• | Additional allowance for credit losses: additionally, we recognize an impairment allowance for credit losses taking into account the historical loss experience and other circumstances known at the time of assessment. For these purposes, credit losses are losses incurred at the reporting date calculated using statistical methods that have not yet been allocated to specific transactions. |
(i) | No appreciable risk. | ||
(ii) | Low risk. | ||
(iii) | Medium-low risk. | ||
(iv) | Medium risk. | ||
(v) | Medium-high risk. | ||
(vi) | High risk. |
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• | assumed interest rates; |
• | mortality tables; |
• | annual social security pension revision rate; |
• | price inflation; |
• | annual salary growth rate, and |
• | the method used to calculate vested commitments to current employees. |
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Percent Owned | Contributions to Net Income (1) | |||||||
Dec. 31, 2006 | 2006 | |||||||
Investment | (in millions of euros, except percentages) | |||||||
CEPSA | 30.0 | % | 370.2 | |||||
Attijariwafa Bank Société Anonyme | 14.5 | % | 24.2 | |||||
Sovereign Bancorp | 24.8 | % | 9.2 |
(1) | Contributions to income from companies accounted for by the equity method include dividends. |
Percent Owned | ||||||||
Dec. 31, | Contributions to Net Income (1) | |||||||
2005 | 2005 | |||||||
Investment | (in millions of euros, except percentages) | |||||||
CEPSA | 32.3 | % | 476.2 | |||||
Unión Fenosa | 0.0 | %(2) | 78.6 | |||||
UCI | 50.0 | % | 19.8 | |||||
Attijariwafa Bank | 14.5 | % | 16.7 |
(1) | Contributions to income from companies accounted for by the equity method include dividends. | |
(2) | During 2005, we sold our 22.07% stake in Unión Fenosa. |
Amount | % | |||||||||||||||
2006 | 2005 | Change | Change | |||||||||||||
(in millions of euros, except percentages) | ||||||||||||||||
Commissions for services | 4,417.6 | 3,710.9 | 706.7 | 19.0 | ||||||||||||
Credit and debit cards | 663.7 | 619.9 | 43.8 | 7.1 | ||||||||||||
Insurance | 1,184.7 | 924.1 | 260.6 | 28.2 | ||||||||||||
Account management | 554.9 | 544.6 | 10.3 | 1.9 | ||||||||||||
Bill discounting | 231.6 | 218.5 | 13.1 | 6.0 | ||||||||||||
Contingent liabilities | 302.0 | 252.9 | 49.2 | 19.4 | ||||||||||||
Other operations | 1,480.6 | 1,150.9 | 329.7 | 28.6 | ||||||||||||
Mutual and pension funds | 2,028.0 | 1,908.4 | 119.6 | 6.3 | ||||||||||||
Securities services | 777.7 | 637.0 | 140.7 | 22.1 | ||||||||||||
Total net fees and commissions | 7,223.3 | 6,256.3 | 967.0 | 15.5 |
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Amount | % | |||||||||||||||
2005 | 2004 | Change | Change | |||||||||||||
(in millions of euros, except percentages) | ||||||||||||||||
Commissions for services | 3,710.9 | 2,671.0 | 1,039.9 | 38.9 | % | |||||||||||
Credit and debit cards | 619.9 | 558.5 | 61.4 | 11.0 | % | |||||||||||
Insurance | 924.1 | 524.0 | 400.1 | 76.4 | % | |||||||||||
Account management | 544.6 | 446.1 | 98.5 | 22.1 | % | |||||||||||
Bill discounting | 218.5 | 268.7 | -50.2 | -18.7 | % | |||||||||||
Contingent liabilities | 252.9 | 226.5 | 26.4 | 11.7 | % | |||||||||||
Other operations | 1,150.9 | 647.2 | 503.7 | 77.8 | % | |||||||||||
Mutual and pension funds | 1,908.4 | 1,546.7 | 361.7 | 23.4 | % | |||||||||||
Securities services | 637.0 | 509.6 | 127.4 | 25.0 | % | |||||||||||
Total net fees and commissions | 6,256.3 | 4,727.2 | 1,529.1 | 32.3 | % |
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2006 | 2005 | |||||||||||||||
Sales/ | Cost of | Sales/ | Cost of | |||||||||||||
Income | Sales | Income | Sales | |||||||||||||
(in thousands of euros) | ||||||||||||||||
Property | 45,875 | (17,531 | ) | 80,464 | (55,789 | ) | ||||||||||
Rail transport (*) | 240,411 | (190,236 | ) | 285,207 | (233,085 | ) | ||||||||||
Other | 448,316 | (407,922 | ) | 199,854 | (120,473 | ) | ||||||||||
734,602 | (615,689 | ) | 565,525 | (409,347 | ) |
(*) | Porterbrook (Group Abbey) leases rail transport stock to UK railway operators. |
2005 | 2004 | |||||||||||||||
Sales/ | Cost of | Sales/ | Cost of | |||||||||||||
Income | Sales | Income | Sales | |||||||||||||
(in thousands of euros) | ||||||||||||||||
Property | 80,464 | (55,789 | ) | 15,184 | (641 | ) | ||||||||||
Rail transport (*) | 285,207 | (233,085 | ) | — | — | |||||||||||
Other | 199,854 | (120,473 | ) | 283,583 | (179,818 | ) | ||||||||||
565,525 | (409,347 | ) | 298,767 | (180,459 | ) |
(*) | Porterbrook (Group Abbey) leases rail transport stock to UK railway operators. |
�� | ||||||||||||||||
Amount | % | |||||||||||||||
2006 | 2005 | Change | Change | |||||||||||||
(in millions of euros, except percentages) | ||||||||||||||||
Personnel expenses | 6,045,447 | 5,675,740 | 369,707 | 6.5 | % | |||||||||||
Other administrative expenses | 4,049,970 | 3,797,376 | 252,594 | 6.7 | % | |||||||||||
Building and premises | 980,836 | 887,103 | 93,733 | 10.6 | % | |||||||||||
Other expenses | 847,117 | 832,787 | 14,330 | 1.7 | % | |||||||||||
Information technology | 421,901 | 422,613 | (712 | ) | (0.2 | %) | ||||||||||
Advertising | 482,165 | 397,153 | 85,012 | 21.4 | % | |||||||||||
Communications | 351,784 | 394,869 | (43,085 | ) | (10.9 | %) | ||||||||||
Technical reports | 263,918 | 275,303 | (11,385 | ) | (4.1 | %) | ||||||||||
Per diems and travel expenses | 243,990 | 216,127 | 27,863 | 12.9 | % | |||||||||||
Taxes (other than income tax) | 231,498 | 183,320 | 48,178 | 26.3 | % | |||||||||||
Guard and cash courier services | 190,864 | 159,490 | 31,374 | 19.7 | % | |||||||||||
Insurance premiums | 35,897 | 28,611 | 7,286 | 25.5 | % | |||||||||||
Total general administrative expenses | 10,095,417 | 9,473,116 | 622,301 | 6.6 | % |
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Amount | % | |||||||||||||||
2005 | 2004 | Change | Change | |||||||||||||
(in millions of euros, except percentages) | ||||||||||||||||
Personnel expenses | 5,675,740 | 4,296,171 | 1,379,569 | 32.1 | % | |||||||||||
Other administrative expenses | 3,797,376 | 2,494,314 | 1,303,062 | 52.2 | % | |||||||||||
Building and premises | 887,103 | 539,645 | 347,458 | 64.4 | % | |||||||||||
Other expenses | 832,787 | 456,591 | 376,196 | 82.4 | % | |||||||||||
Information technology | 422,613 | 326,362 | 96,251 | 29.5 | % | |||||||||||
Advertising | 397,153 | 292,964 | 104,189 | 35.6 | % | |||||||||||
Communications | 394,869 | 231,372 | 163,497 | 70.7 | % | |||||||||||
Technical reports | 275,303 | 200,768 | 74,535 | 37.1 | % | |||||||||||
Per diems and travel expenses | 216,127 | 155,172 | 60,955 | 39.3 | % | |||||||||||
Taxes (other than income tax) | 183,320 | 124,773 | 58,547 | 46.9 | % | |||||||||||
Guard and cash courier services | 159,490 | 138,271 | 21,219 | 15.3 | % | |||||||||||
Insurance premiums | 28,611 | 28,396 | 215 | 0.8 | % | |||||||||||
Total general administrative expenses | 9,473,116 | 6,790,485 | 2,682,631 | 39.5 | % |
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Amount | % | |||||||||||||||
2006 | 2005 | Change | Change | |||||||||||||
(in millions of euros, except percentages) | ||||||||||||||||
On disposal of investments | 272.0 | 1,299.0 | 1,027.0 | (79.1 | %) | |||||||||||
Of which: Unión Fenosa | – | 1,156.6 | – | – | ||||||||||||
ADRs (Banco Santander Chile) | 269.8 | – | – | – |
Amount | % | |||||||||||||||
2005 | 2004 | Change | Change | |||||||||||||
(in millions of euros, except percentages) | ||||||||||||||||
On disposal of investments | 1,299.0 | 30.9 | 1,268.1 | 4,103.9 | % | |||||||||||
Of which: Unión Fenosa | 1,156.6 | – | 1,156.6 | – |
Amount | % | |||||||||||||||
2006 | 2005 | Change | Change | |||||||||||||
Results on other disposals | (in millions of euros, except percentages) | |||||||||||||||
On disposal of tangible assets | 89.0 | 80.6 | 8.4 | 10.4 | % | |||||||||||
Other | 1,047.7 | 1,135.6 | (88.0 | ) | (7.7 | %) | ||||||||||
Of which, obtained on the disposal of: | ||||||||||||||||
Antena 3 TV | 294.3 | – | 294.3 | |||||||||||||
San Paolo IMI | 704.9 | – | 704.9 | |||||||||||||
RBS | – | 717.4 | (717.4 | ) | ||||||||||||
Auna | – | 354.8 | (354.8 | ) | ||||||||||||
Net gains | 1,136.7 | 1,216.2 | (79.5 | ) | (6.5 | %) | ||||||||||
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Amount | % | |||||||||||||||
2005 | 2004 | Change | Change | |||||||||||||
Results on other disposals | (in millions of euros, except percentages) | |||||||||||||||
On disposal of tangible assets | 80.6 | 169.7 | (89.1 | ) | (52.5 | %) | ||||||||||
Other | 1,135.6 | 714.0 | 421.7 | 59.1 | % | |||||||||||
Of which, obtained on the disposal of: | ||||||||||||||||
RBS | 717.4 | 472.2 | 245.2 | |||||||||||||
Auna | 354.8 | – | 354.8 | |||||||||||||
Vodafone | – | 241.8 | (241.8 | ) | ||||||||||||
Shinsei | – | 117.6 | (117.6 | ) | ||||||||||||
Net gains | 1,216.2 | 883.7 | 332.5 | 37.6 | % | |||||||||||
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Year ended December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
(in thousands of euros, except per share data) | ||||||||||||
As Reported | ||||||||||||
Profit attributed to the Group | 7,595,947 | 6,220,104 | 3,605,870 | |||||||||
Profit attributed to the Group per average share (1) | 1.22 | 1.00 | 0.73 | |||||||||
U.S. GAAP | ||||||||||||
Net income | 7,414,571 | 6,318,460 | 3,940,866 | |||||||||
Net income per average share (1) | 1.19 | 1.01 | 0.80 |
(1) | Based on the average number of shares outstanding in the relevant year. |
Continental Europe | Variations | |||||||||||||||||||
2006 | 2005 | 2004 | 06/05(%) | 05/04(%) | ||||||||||||||||
(in millions of euros) | ||||||||||||||||||||
Net interest income | 6,206 | 5,366 | 4,770 | 15.65 | 12.49 | |||||||||||||||
Share of results of entities accounted for using the equity method | 6 | 26 | 33 | (76.92 | ) | (21.21 | ) | |||||||||||||
Net fee and commission income | 3,653 | 3,291 | 3,143 | 11.00 | 4.71 | |||||||||||||||
Insurance activity income | 137 | 115 | 87 | 19.13 | 32.18 | |||||||||||||||
Gains/losses on financial assets and liabilities and Exchange differences | 708 | 505 | 404 | 40.20 | 25.00 | |||||||||||||||
Gross income | 10,710 | 9,303 | 8,437 | 15.12 | 10.26 | |||||||||||||||
Sales and income from the provision of non- financial services (net) and Other operating income/expense | 39 | 55 | 1 | (29.09 | ) | n/a | ||||||||||||||
General administrative expenses: | ||||||||||||||||||||
Personnel expenses | (2,685 | ) | (2,510 | ) | (2,502 | ) | 6.97 | 0.32 | ||||||||||||
Other administrative expenses | (1,272 | ) | (1,154 | ) | (1,097 | ) | 10.23 | 5.20 | ||||||||||||
Depreciation and amortization | (522 | ) | (490 | ) | (512 | ) | 6.53 | (4.30 | ) | |||||||||||
Net operating income | 6,270 | 5,204 | 4,327 | 20.48 | 20.27 | |||||||||||||||
Net impairment losses | (1,355 | ) | (977 | ) | (1,265 | ) | 38.69 | (22.77 | ) | |||||||||||
Other gains/losses | (244 | ) | (18 | ) | (7 | ) | 1,255.56 | 157.14 | ||||||||||||
Profit before tax | 4,671 | 4,209 | 3,055 | 10.98 | 37.77 | |||||||||||||||
Profit from continuing operations | 3,268 | 3,020 | 2,170 | 8.21 | 39.17 | |||||||||||||||
Profit from discontinued operations | 1,147 | 110 | 102 | 942.73 | 7.84 | |||||||||||||||
Consolidated profit for the year | 4,416 | 3,130 | 2,272 | 41.09 | 37.76 | |||||||||||||||
Profit attributed to the Group | 4,144 | 2,980 | 2,159 | 39.06 | 38.03 |
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Abbey | Variation | |||||||||||||||
2006 | 2005 | 2004 | 06/05(%) | |||||||||||||
(in millions of euros) | ||||||||||||||||
Net interest income | 2,108 | 2,083 | – | 1.20 | ||||||||||||
Share of results of entities accounted for using the equity method | 3 | 2 | – | 50.00 | ||||||||||||
Net fee and commission income | 1,025 | 947 | – | 8.24 | ||||||||||||
Insurance activity income | – | – | – | – | ||||||||||||
Gains/losses on financial assets and liabilities and Exchange differences | 423 | 345 | – | 22.61 | ||||||||||||
Gross income | 3,559 | 3,377 | – | 5.39 | ||||||||||||
Sales and income from the provision of non- financial services (net) and Other operating income/expense | 42 | 36 | – | 16.67 | ||||||||||||
General administrative expenses: | ||||||||||||||||
Personnel expenses | (1,062 | ) | (1,119 | ) | – | (5.09 | ) | |||||||||
Other administrative expenses | (815 | ) | (888 | ) | – | (8.22 | ) | |||||||||
Depreciation and amortization | (105 | ) | (117 | ) | – | (10.26 | ) | |||||||||
Net operating income | 1,619 | 1,289 | – | 25.60 | ||||||||||||
Net impairment losses | (387 | ) | (318 | ) | – | 21.70 | ||||||||||
Other gains/losses | – | 76 | – | n/a | ||||||||||||
Profit before tax | 1,232 | 1,047 | – | 17.67 | ||||||||||||
Profit from continuing operations | 889 | 725 | – | 22.62 | ||||||||||||
Profit from discontinued operations | 114 | 86 | – | 32.56 | ||||||||||||
Consolidated profit for the year | 1,003 | 811 | – | 23.67 | ||||||||||||
Profit attributed to the Group | 1,003 | 811 | – | 23.67 |
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Latin America | Variations | |||||||||||||||||||
2006 | 2005 | 2004 | 06/05(%) | 05/04(%) | ||||||||||||||||
(in millions of euros) | ||||||||||||||||||||
Net interest income | 5,280 | 3,960 | 3,314 | 33.33 | 19.49 | |||||||||||||||
Share of results of entities accounted for using the equity method | 7 | 7 | 4 | 0.00 | 75.00 | |||||||||||||||
Net fee and commission income | 2,556 | 2,037 | 1,597 | 25.48 | 27.55 | |||||||||||||||
Insurance activity income | 165 | 109 | 78 | 51.38 | 39.74 | |||||||||||||||
Gains/losses on financial assets and liabilities and Exchange differences | 634 | 759 | 457 | (16.47 | ) | 66.08 | ||||||||||||||
Gross income | 8,642 | 6,872 | 5,450 | 25.76 | 26.09 | |||||||||||||||
Sales and income from the provision of non- financial services (net) and Other operating income/expense | (120 | ) | (90 | ) | (48 | ) | 33.33 | 87.50 | ||||||||||||
General administrative expenses: | ||||||||||||||||||||
Personnel expenses | (2,052 | ) | (1,807 | ) | (1,526 | ) | 13.56 | 18.41 | ||||||||||||
Other administrative expenses | (1,774 | ) | (1,551 | ) | (1,246 | ) | 14.38 | 24.48 | ||||||||||||
Depreciation and amortization | (309 | ) | (336 | ) | (284 | ) | (8.04 | ) | 18.31 | |||||||||||
Net operating income | 4,387 | 3,088 | 2,346 | 42.07 | 31.63 | |||||||||||||||
Net impairment losses | (886 | ) | (433 | ) | (401 | ) | 104.62 | 7.98 | ||||||||||||
Other gains/losses | (226 | ) | (219 | ) | (111 | ) | 3.20 | 97.30 | ||||||||||||
Profit before tax | 3,275 | 2,436 | 1,834 | 34.44 | 32.82 | |||||||||||||||
Profit from continuing operations | 2,566 | 1,982 | 1,629 | 29.47 | 21.67 | |||||||||||||||
Profit from discontinued operations | 9 | 28 | 32 | (67.86 | ) | (12.50 | ) | |||||||||||||
Consolidated profit for the year | 2,575 | 2,010 | 1,661 | 28.11 | 21.01 | |||||||||||||||
Profit attributed to the Group | 2,287 | 1,779 | 1,470 | 28.56 | 21.02 |
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Financial Management and | ||||||||||||||||||||
Equity Stakes | Variations | |||||||||||||||||||
2006 | 2005 | 2004 | 06/05(%) | 05/04(%) | ||||||||||||||||
(in millions of euros) | ||||||||||||||||||||
Net interest income | (1,106 | ) | (740 | ) | (522 | ) | 49.46 | 41.76 | ||||||||||||
Share of results of entities accounted for using the equity method | 411 | 584 | 412 | (29.62 | ) | 41.75 | ||||||||||||||
Net fee and commission income | (11 | ) | (19 | ) | (13 | ) | (42.11 | ) | 46.15 | |||||||||||
Insurance activity income | (4 | ) | 2 | (4 | ) | n/a | n/a | |||||||||||||
Gains/losses on financial assets and liabilities and Exchange differences | 414 | (47 | ) | 239 | n/a | n/a | ||||||||||||||
Gross income | (296 | ) | (219 | ) | 112 | 35.16 | n/a | |||||||||||||
Sales and income from the provision of non- financial services (net) and Other operating income/expense | (31 | ) | (25 | ) | (18 | ) | 24.00 | 38.89 | ||||||||||||
General administrative expenses: | ||||||||||||||||||||
Personnel expenses | (205 | ) | (183 | ) | (193 | ) | 12.02 | (5.18 | ) | |||||||||||
Other administrative expenses | (160 | ) | (171 | ) | (105 | ) | (6.43 | ) | 62.86 | |||||||||||
Depreciation and amortization | (215 | ) | (74 | ) | (38 | ) | 190.54 | 94.74 | ||||||||||||
Net operating income | (907 | ) | (672 | ) | (242 | ) | 34.97 | 177.69 | ||||||||||||
Net impairment losses | 78 | (74 | ) | (181 | ) | n/a | (59.12 | ) | ||||||||||||
Other gains/losses | 801 | 853 | (79 | ) | (6.10 | ) | n/a | |||||||||||||
Profit before tax | (28 | ) | 107 | (502 | ) | n/a | n/a | |||||||||||||
Profit from continuing operations | 133 | 798 | 62 | (83.33 | ) | 1,187.10 | ||||||||||||||
Profit from discontinued operations | 119 | – | 1 | n/a | n/a | |||||||||||||||
Consolidated profit for the year | 252 | 798 | 63 | (68.42 | ) | 1,166.67 | ||||||||||||||
Profit attributed to the Group | 162 | 650 | (23 | ) | (75.08 | ) | n/a |
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Retail Banking | Variations | |||||||||||||||||||
2006 | 2005 | 2004 | 06/05(%) | 05/04(%) | ||||||||||||||||
(in millions of euros) | ||||||||||||||||||||
Net interest income | 12,372 | 10,639 | 7,391 | 16.29 | 43.95 | |||||||||||||||
Share of results of entities accounted for using the equity method | 16 | 35 | 42 | (54.29 | ) | (16.67 | ) | |||||||||||||
Net fee and commission income | 5,936 | 5,169 | 3,932 | 14.84 | 31.46 | |||||||||||||||
Gains/losses on financial assets and liabilities and Exchange differences | 1,051 | 928 | 323 | 13.25 | 187.31 | |||||||||||||||
Gross income | 19,375 | 16,771 | 11,688 | 15.53 | 43.49 | |||||||||||||||
Sales and income from the provision of non- financial services (net) and Other operating income/expense | (10 | ) | 24 | (24 | ) | n/a | n/a | |||||||||||||
General administrative expenses: | ||||||||||||||||||||
Personnel expenses | (5,145 | ) | (4,896 | ) | (3,587 | ) | 5.09 | 36.49 | ||||||||||||
Other administrative expenses | (3,445 | ) | (3,208 | ) | (2,062 | ) | 7.39 | 55.58 | ||||||||||||
Depreciation and amortization | (848 | ) | (867 | ) | (731 | ) | (2.19 | ) | 18.60 | |||||||||||
Net operating income | 9,927 | 7,824 | 5,284 | 26.88 | 48.07 | |||||||||||||||
Net impairment losses | (2,330 | ) | (1,659 | ) | (1,506 | ) | 40.45 | 10.16 | ||||||||||||
Other gains/losses | (417 | ) | (176 | ) | (115 | ) | 136.93 | 53.04 | ||||||||||||
Profit before tax | 7,180 | 5,989 | 3,663 | 19.89 | 63.50 |
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Global Wholesale Banking | Variations | |||||||||||||||||||
2006 | 2005 | 2004 | 06/05(%) | 05/04(%) | ||||||||||||||||
(in millions of euros) | ||||||||||||||||||||
Net interest income | 1,167 | 724 | 677 | 61.19 | 6.94 | |||||||||||||||
Share of results of entities accounted for using the equity method | – | – | – | – | – | |||||||||||||||
Net fee and commission income | 618 | 488 | 392 | 26.64 | 24.49 | |||||||||||||||
Gains/losses on financial assets and liabilities and Exchange differences | 685 | 654 | 528 | 4.74 | 23.86 | |||||||||||||||
Gross income | 2,470 | 1,866 | 1,597 | 32.37 | 16.84 | |||||||||||||||
Sales and income from the provision of non- financial services (net) and Other operating income/expense | (31 | ) | (24 | ) | (24 | ) | 29.17 | – | ||||||||||||
General administrative expenses: | ||||||||||||||||||||
Personnel expenses | (432 | ) | (351 | ) | (299 | ) | 23.08 | 17.39 | ||||||||||||
Other administrative expenses | (243 | ) | (219 | ) | (187 | ) | 10.96 | 17.11 | ||||||||||||
Depreciation and amortization | (65 | ) | (58 | ) | (50 | ) | 12.07 | 16.00 | ||||||||||||
Net operating income | 1,699 | 1,214 | 1,037 | 39.95 | 17.07 | |||||||||||||||
Net impairment losses | (298 | ) | (69 | ) | (162 | ) | 331.88 | (57.41 | ) | |||||||||||
Other gains/losses | (49 | ) | 12 | 3 | n/a | 300.00 | ||||||||||||||
Profit before tax | 1,353 | 1,157 | 878 | 16.94 | 31.78 |
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Asset Management and Insurance | Variations | |||||||||||||||||||
2006 | 2005 | 2004 | 05/06(%) | 05/04(%) | ||||||||||||||||
(in millions of euros) | ||||||||||||||||||||
Net interest income | 55 | 46 | 16 | 19.57 | 187.50 | |||||||||||||||
Share of results of entities accounted for using the equity method | — | — | (5 | ) | — | n/a | ||||||||||||||
Net fee and commission income | 680 | 618 | 416 | 10.03 | 48.56 | |||||||||||||||
Insurance activity income | 302 | 224 | 165 | 34.82 | 35.76 | |||||||||||||||
Gains/losses on financial assets and liabilities and Exchange differences | 29 | 27 | 10 | 7.41 | 170.00 | |||||||||||||||
Gross income | 1,066 | 915 | 602 | 16.50 | 51.99 | |||||||||||||||
Sales and income from the provision of non- financial services (net) and Other operating income/expense | 2 | — | 1 | n/a | n/a | |||||||||||||||
General administrative expenses: | ||||||||||||||||||||
Personnel expenses | (222 | ) | (189 | ) | (142 | ) | 17.46 | 33.10 | ||||||||||||
Other administrative expenses | (173 | ) | (165 | ) | (94 | ) | 4.85 | 75.53 | ||||||||||||
Depreciation and amortization | (23 | ) | (18 | ) | (15 | ) | 27.78 | 20.00 | ||||||||||||
Net operating income | 650 | 543 | 352 | 19.71 | 54.26 | |||||||||||||||
Net impairment losses | — | — | 2 | — | n/a | |||||||||||||||
Other gains/losses | (5 | ) | 3 | (6 | ) | n/a | n/a | |||||||||||||
Profit before tax | 645 | 546 | 348 | 18.13 | 56.90 |
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December 31, | ||||||||
2006 | 2005 | |||||||
Tier 1 Capital Ratio | 7.42 | % | 7.88 | % | ||||
Total Capital Ratio — Tier 1 and Tier 2 | 12.49 | % | 12.94 | % |
2006 | 2005 | 2004 | ||||||||||
(in thousands of euros) | ||||||||||||
Due to credit entities | 123,753,200 | 115,974,336 | 63,831,518 | |||||||||
Customer deposits | 315,478,695 | 285,972,387 | 166,463,179 | |||||||||
Marketable debt securities | 174,377,295 | 124,185,634 | 53,992,496 | |||||||||
Subordinated debt | 29,554,497 | 27,287,081 | 14,469,088 | |||||||||
Total | 643,163,687 | 553,419,438 | 298,756,281 |
• | Senior debt | 5.3 years | ||
• | Mortgage debt | 14.1 years | ||
• | Dated subordinated debt | 8.4 years |
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Long-Term | Short-Term | Financial Strength | ||||||||||
Moody’s | Aa1 | P1 | B | |||||||||
Standard & Poor’s | AA | A1+ | ||||||||||
Fitch | AA | F1+ | A/B |
• | a downturn in real estate markets, and a corresponding increase in mortgage defaults; | ||
• | the recent interest rate hikes in the United States and other countries; |
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• | uncertainties relating to economic growth expectations and interest rates cycles, especially in the United States, Spain, the United Kingdom, other European countries and Latin America, and the impact they may have over the yield curve and exchange rates; | ||
• | the effect that an economic slowdown may have over Latin America and fluctuations in local interest and exchange rates; | ||
• | the chance that changes in the macroeconomic environment will deteriorate the quality of our customers` credit; | ||
• | a possible downturn in capital markets; | ||
• | a drop in the value of the euro relative to the US dollar, the Sterling pound or Latin American currencies; | ||
• | inflationary pressures, because of the effect they may have in relation to increases of interest rates and decreases of growth; | ||
• | increased consolidation of the European financial services sector; | ||
• | although it is foreseeable that entry barriers to domestic markets in Europe will be lowered, our possible plans of expansion into other markets could be affected by regulatory requirements of the national authorities of these countries; and | ||
• | acquisitions or restructurings of businesses, including our proposed acquisition of certain assets of ABN AMRO Holding N.V. (see Item 4. Information on the Company — A. History and development of the company — Principal Capital Expenditures and Divestitures — Acquisitions, Dispositions and Reorganizations — Recent Events — ABN AMRO Holding N.V. (“ABN AMRO”), that do not perform in accordance with our expectations. |
2006 | 2005 | 2004 | ||||||||||
(in thousands of euros) | ||||||||||||
Contingent liabilities: | ||||||||||||
Guarantees and other sureties | 58,205,412 | 48,199,671 | 31,511,567 | |||||||||
Bank guarantees and other indemnities provided | 52,697,242 | 44,251,411 | 28,533,973 | |||||||||
Credit derivatives sold | 478,250 | 180,000 | — | |||||||||
Irrevocable documentary credits | 5,029,484 | 3,767,022 | 2,977,594 | |||||||||
Other financial guarantees | 436 | 1,238 | — | |||||||||
Assets assigned to sundry obligations | 4 | 24 | 24 | |||||||||
Other contingent liabilities | 563,893 | 253,880 | 302,291 | |||||||||
58,769,309 | 48,453,575 | 31,813,882 | ||||||||||
Commitments: | ||||||||||||
Balances drawable by third parties | 91,690,396 | 77,678,333 | 63,110,699 | |||||||||
Other commitments | 11,559,034 | 18,584,929 | 11,749,833 | |||||||||
103,249,430 | 96,263,262 | 74,860,532 | ||||||||||
162,018,739 | 144,716,837 | 106,674,414 | ||||||||||
2006 | 2005 | 2004 | ||||||||||
(in thousands of euros) | ||||||||||||
Contingent liabilities: | ||||||||||||
Mutual funds | 119,838,418 | 109,480,095 | 97,837,724 | |||||||||
Pension funds | 29,450,103 | 28,619,183 | 21,678,522 | |||||||||
Other managed funds | 17,835,031 | 14,746,000 | 8,998,388 | |||||||||
167,123,552 | 152,845,278 | 128,514,634 |
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More than | ||||||||||||||||
Contractual obligations | 1 year but | |||||||||||||||
Less than | less than | More than | ||||||||||||||
(in millions of euros) | 1 year | 5 years | 5 years | Total | ||||||||||||
Deposits fron credit institutions | 49,752 | 5,446 | 1,618 | 56,816 | ||||||||||||
Customer deposits | 300,112 | 12,594 | 1,671 | 314,377 | ||||||||||||
Marketable debt securities | 47,557 | 37,170 | 89,682 | 174,409 | ||||||||||||
Subordinated debt | 595 | 5,577 | 24,250 | 30,422 | ||||||||||||
Operating lease obligations | 170 | 579 | 1,105 | 1,854 | ||||||||||||
Purchase obligations | 107 | 310 | 156 | 573 | ||||||||||||
Other long-term liabilities | — | — | 14,014 | 14,014 | ||||||||||||
Total | 398,293 | 61,676 | 132,496 | 592,465 |
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Director | ||||
Name | Position with Santander | Since | ||
Emilio Botín (1) | Chairman | 1960 | ||
Fernando de Asúa | First Vice Chairman | 1999 | ||
Alfredo Sáenz | Second Vice Chairman and Chief Executive Officer | 1994 | ||
Matías R. Inciarte | Third Vice Chairman | 1988 | ||
Manuel Soto | Fourth Vice Chairman | 1999 | ||
Assicurazioni Generali, S.p.A. | Director | 1999 | ||
Antonio Basagoiti | Director | 1999 | ||
Ana P. Botín (1) | Director | 1989 | ||
Javier Botín (1) | Director | 2004 | ||
Lord Burns | Director | 2004 | ||
Guillermo de la Dehesa | Director | 2002 | ||
Rodrigo Echenique | Director | 1988 | ||
Antonio Escámez | Director | 1999 | ||
Francisco Luzón | Director | 1997 | ||
Abel Matutes | Director | 2002 | ||
Mutua Madrileña Automovilista | Director | 2004 | ||
Luis Ángel Rojo | Director | 2005 | ||
Luis Alberto Salazar-Simpson | Director | 1999 | ||
Isabel Tocino | Director | 2007 |
(1) | Ana P. Botín and Javier Botín are daughter and son, respectively, of Emilio Botín. |
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Name | Position with Banco Santander Central Hispano | |
Emilio Botín | Chairman of the Board of Directors and of the Executive Committee | |
Alfredo Sáenz | Second Vice Chairman of the Board of Directors and Chief Executive Officer | |
Matías R. Inciarte (1) | Third Vice Chairman of the Board of Directors and Chairman of the Risk Committee | |
Ana P. Botín | Chairwoman, Banesto | |
Francisco Luzón | Director, Executive Vice President, America | |
José A. Alvarez | Executive Vice President, Financial Management | |
Nuno Amado | Executive Vice President, Santander Totta | |
David Arce | Executive Vice President, Internal Auditing | |
Ignacio Benjumea | Executive Vice President, General Secretariat | |
Juan Manuel Cendoya | Executive Vice President, Communications, Corporate Marketing and Research | |
Fermín Colomés | Executive Vice President, Operations | |
José María Espí | Executive Vice President, Risk | |
Enrique G. Candelas | Executive Vice President, Santander Branch Network - Spain | |
Joan-David Grimà | Executive Vice President, Asset Management | |
Juan Guitard | Executive Vice President, General Secretariat | |
Gonzalo de las Heras | Executive Vice President, Global Wholesale Banking | |
Antonio H. Osorio | Chief Executive Officer, Abbey | |
Adolfo Lagos | Executive Vice President, Global Wholesale Banking | |
Jorge Maortua | Executive Vice President, Global Wholesale Banking | |
Serafín Méndez | Executive Vice President, Premises and Security | |
Jorge Morán | Executive Vice President, Insurance | |
César Ortega | Executive Vice President, General Secretariat | |
Javier Peralta | Executive Vice President, Risk | |
Marcial Portela | Executive Vice President, America | |
Juan R. Inciarte (1) | Executive Vice President, Consumer Finance | |
José Manuel Tejón | Executive Vice President, Financial Accounting and Control | |
Jesús Ma Zabalza | Executive Vice President, America |
(1) | Matías and Juan R. Inciarte are brothers. |
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2006 | 2005 | 2004 | ||||||||||
(in thousands of euros) | ||||||||||||
Total salaries | 20,970 | 18,494 | 16,179 | |||||||||
Of which: variable compensation | 13,666 | 11,412 | 9,395 |
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In thousands of euros | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2006 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Bylaw-Stipulated Compensation | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Appointments | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Audit and | and | |||||||||||||||||||||||||||||||||||||||||||||||||||
Executive | Compliance | Remuneration | Attendance Fees | Salary of Executive Directors (1) | Other | 2005 | 2004 | |||||||||||||||||||||||||||||||||||||||||||||
Directors | Board | Committee | Committee | Committee | Board | Other Fees | Fixed | Variable (a) | Total | Remuneration | Total | Total | Total | |||||||||||||||||||||||||||||||||||||||
Emilio Botín | 107 | 215 | — | — | 23 | 2 | 1,079 | 2,032 | 3,111 | 1 | 3,459 | 3,035 | 2,749 | |||||||||||||||||||||||||||||||||||||||
Fernando de Asúa | 143 | 215 | 50 | 30 | 23 | 129 | — | — | — | — | 590 | 519 | 407 | |||||||||||||||||||||||||||||||||||||||
Alfredo Sáenz | 107 | 215 | — | — | 23 | 2 | 2,718 | 4,652 | 7,370 | 382 | 8,099 | 7,161 | 6,252 | |||||||||||||||||||||||||||||||||||||||
Matías R. Inciarte | 107 | 215 | — | — | 23 | 113 | 1,372 | 2,517 | 3,889 | 154 | 4,501 | 3,970 | 3,545 | |||||||||||||||||||||||||||||||||||||||
Manuel Soto Serrano | 143 | — | 50 | 30 | 23 | 25 | — | — | — | — | 271 | 246 | 150 | |||||||||||||||||||||||||||||||||||||||
Assicurazioni Generali, S.p.A. | 125 | — | — | — | 11 | — | — | — | — | — | 136 | 110 | 76 | |||||||||||||||||||||||||||||||||||||||
Antonio Basagoiti | 107 | 215 | — | — | 23 | 111 | — | — | — | 3,021 | 3,477 | 414 | 279 | |||||||||||||||||||||||||||||||||||||||
Ana P. Botín | 107 | 215 | — | — | 23 | — | 1,030 | 1,696 | 2,726 | 13 | 3,084 | 2,733 | 2,252 | |||||||||||||||||||||||||||||||||||||||
Javier Botín | 107 | — | — | — | 21 | — | — | — | — | — | 128 | 106 | 42 | |||||||||||||||||||||||||||||||||||||||
Lord Terence Burns (***) | 107 | — | — | — | 15 | — | — | — | — | — | 122 | 105 | 4 | |||||||||||||||||||||||||||||||||||||||
Guillermo de la Dehesa | 107 | 215 | — | 30 | 21 | 8 | — | — | — | — | 381 | 326 | 258 | |||||||||||||||||||||||||||||||||||||||
Rodrigo Echenique | 107 | 215 | — | 30 | 21 | 85 | — | — | — | 930 | 1,388 | 1,329 | 1,113 | |||||||||||||||||||||||||||||||||||||||
Antonio Escámez | 107 | 215 | — | — | 23 | 110 | — | — | — | 874 | 1,329 | 1,337 | 1,088 | |||||||||||||||||||||||||||||||||||||||
Francisco Luzón | 107 | 215 | — | — | 23 | — | 1,105 | 2,769 | 3,874 | 382 | 4,601 | 4,003 | 3,538 | |||||||||||||||||||||||||||||||||||||||
Luís Ángel Rojo (****) | 107 | — | 50 | 30 | 23 | 22 | — | — | — | — | 232 | 113 | — | |||||||||||||||||||||||||||||||||||||||
Abel Matutes | 107 | — | 50 | — | 23 | 9 | — | — | — | — | 189 | 172 | 144 | |||||||||||||||||||||||||||||||||||||||
Mutua Madrileña Automovilista | 125 | — | — | — | 23 | — | — | — | — | — | 148 | 122 | 62 | |||||||||||||||||||||||||||||||||||||||
Luís Alberto Salazar-Simpson | 107 | — | 50 | — | 21 | 14 | — | — | — | — | 192 | 173 | 143 | |||||||||||||||||||||||||||||||||||||||
Jay S. Sidhu (b) | 58 | — | — | — | — | — | — | — | — | — | 58 | — | — | |||||||||||||||||||||||||||||||||||||||
Emilio Botín O. (**) | — | — | — | — | — | — | — | — | — | — | — | 98 | 94 | |||||||||||||||||||||||||||||||||||||||
Elías Masaveu (**) | — | — | — | — | — | — | — | — | — | — | — | 47 | 81 | |||||||||||||||||||||||||||||||||||||||
Jaime Botín (*) | — | — | — | — | — | — | — | — | — | — | — | — | 48 | |||||||||||||||||||||||||||||||||||||||
Juan Abelló (*) | — | — | — | — | — | — | — | — | — | — | — | — | 121 | |||||||||||||||||||||||||||||||||||||||
José Manuel Arburúa (*) | — | — | — | — | — | — | — | — | — | — | — | — | 120 | |||||||||||||||||||||||||||||||||||||||
Sir George Ross Mathewson (*) | — | — | — | — | — | — | — | — | — | — | — | — | 69 | |||||||||||||||||||||||||||||||||||||||
Antonio de Sommer (*) | — | — | — | — | — | — | — | — | — | — | — | — | 25 | |||||||||||||||||||||||||||||||||||||||
Total 2006 | 2,092 | 2,150 | 250 | 150 | 386 | 630 | 7,304 | 13,666 | 20,970 | 5,757 | 32,385 | — | — | |||||||||||||||||||||||||||||||||||||||
Total 2005 | 1,795 | 1,800 | 256 | 148 | 315 | 607 | 7,082 | 11,412 | 18,494 | 2,704 | — | 26,119 | — | |||||||||||||||||||||||||||||||||||||||
Total 2004 | 1,435 | 1,463 | 214 | — | 387 | 697 | 6,784 | 9,395 | 16,179 | 2,285 | — | — | 22,660 | |||||||||||||||||||||||||||||||||||||||
(*) | Directors who were Board members for some months in 2004 but ceased to be directors prior to December 31, 2004. | |
(**) | Directors who were Board members for some months in 2005 but ceased to be directors prior to December 31, 2005. | |
(***) | Appointed as member of the Bank’s Board of Directors on December 20, 2004 and subsequently ratified by the shareholders at the Annual General Meeting on June 18, 2005. | |
(****) | Appointed as member of the Bank’s Board of Directors on April 25, 2005 and subsequently ratified by the shareholders at the Annual General Meeting on June 18, 2005. | |
(a) | Accrued in 2006. | |
(b) | Appointed by the shareholders at the Annual General Meeting on June 17, 2006 and ceased to discharge his duties on December 31, 2006. | |
(1) | Recognized under “Personnel expenses” in the income statement of the Bank, except for the salary of Ana P. Botín, which is recognized at Banco Español de Crédito, S.A. |
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Thousands | ||||||
Company | of Euros | |||||
Emilio Botín | Shinsei | 59.9 | ||||
Fernando de Asúa | CEPSA | 95.6 | ||||
Antonio Escámez | Attijariwafa Bank | 5.0 | ||||
160.5 | ||||||
Number | In thousands of euros | |||||||||||||||||||||||
of | Salary Compensation | Other | ||||||||||||||||||||||
Year | People (1) | Fixed | Variable | Total | Compensation | Total | ||||||||||||||||||
2004 | 23 | 15,156 | 24,399 | 39,555 | 1,727 | 41,282 | ||||||||||||||||||
2005 | 24 | 16,450 | 27,010 | 43,460 | 2,708 | 46,168 | ||||||||||||||||||
2006 | 26 | 19,119 | 34,594 | 53,713 | 11,054 | 64,767 |
(*) | Excluding Executive Directors’ compensation, which is detailed above. | |
(1) | At some point in the year they occupied the position of Executive Vice President. |
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In thousands of euros | ||||||||||||||||||||||||
2006 | 2005 | |||||||||||||||||||||||
Total Accrued | Total Accrued | 2004 | ||||||||||||||||||||||
Pension | Other | Pension | Other | Total Accrued | Other | |||||||||||||||||||
Obligations | Insurance | Obligations | Insurance | Pension Obligations | Insurance | |||||||||||||||||||
Emilio Botín | 21,068 | — | 11,785 | — | 10,700 | — | ||||||||||||||||||
Alfredo Sáenz | 55,537 | 8,155 | 45,444 | 7,917 | 46,061 | 7,724 | ||||||||||||||||||
Matías R. Inciarte | 39,390 | 4,117 | 28,953 | 3,997 | 27,752 | 3,900 | ||||||||||||||||||
Ana P. Botín | 15,045 | 1,402 | 12,232 | 1,373 | 9,742 | 1,258 | ||||||||||||||||||
Francisco Luzón | 39,187 | 6,571 | 39,188 | 6,380 | 35,703 | 6,224 | ||||||||||||||||||
Total | 170,227 | 20,245 | 137,602 | 19,667 | 129,958 | 19,106 | ||||||||||||||||||
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Exercised Options | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Granted | Exercised Options | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Options Granted | Market | Market | Date of | Date of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Options at | Exercise | Exercise | Exercised | Options at | Options | Exercise | Price | Options at | Exercise | Options | Exercise | Price | Options at | Exercise | Commencement | Expiration of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
January 1, | Price | Price | Options | January 1, | Granted | Price | Applied | December 31, | Price | Granted | Price | Applied | December 31, | Price | of Exercise | Exercise | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2004 | (Euros) | Number | (Euros) | Number | 2005 | Number | Number | (Euros) | (Euros) | 2005 | (Euros) | Number | Number | (Euros) | (Euros) | 2006 | (Euros) | Period | Period | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Managers Plan 2000: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Emilio Botín | 150,000 | 10.545 | — | — | — | 150,000 | — | (150,000 | ) | 10.545 | 11.12 | — | — | — | — | — | — | — | — | 12/30/03 | 12/29/05 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Alfredo Sáenz | 100,000 | 10.545 | — | — | — | 100,000 | — | (100,000 | ) | 10.545 | 11.14 | — | — | — | — | — | — | — | — | 12/30/03 | 12/29/05 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Matías R. Inciarte | 125,000 | 10.545 | — | — | — | 125,000 | — | (125,000 | ) | 10.545 | 11.14 | — | — | — | — | — | — | — | — | 12/30/03 | 12/29/05 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Antonio Escámez | 100,000 | 10.545 | — | — | — | 100,000 | — | (100,000 | ) | 10.545 | 11.07 | — | — | — | — | — | — | — | — | 12/30/03 | 12/29/05 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Francisco Luzón | 100,000 | 10.545 | — | — | — | 100,000 | — | (100,000 | ) | 10.545 | 11.14 | — | — | — | — | — | — | — | 12/30/03 | 12/29/05 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
575,000 | 10.545 | — | — | — | 575,000 | — | (575,000 | ) | 10.545 | 11.12 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Incentive Plan (I06) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Emilio Botín | — | — | 541,400 | 9.09 | — | 541,400 | — | — | — | — | 541,400 | 9.09 | — | — | — | — | 541,400 | 9.09 | 01/15/08 | 01/15/09 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Alfredo Sáenz | — | — | 1,209,100 | 9.09 | — | 1,209,100 | — | — | — | — | 1,209,100 | 9.09 | — | — | — | — | 1,209,100 | 9.09 | 01/15/08 | 01/15/09 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Matías R. Inciarte | — | — | 665,200 | 9.09 | — | 665,200 | — | — | — | — | 665,200 | 9.09 | — | — | — | — | 665,200 | 9.09 | 01/15/08 | 01/15/09 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ana P. Botín (*) | — | — | 293,692 | 9.09 | — | 293,692 | — | — | — | — | 293,692 | 9.09 | — | — | — | — | 293,692 | 9.09 | 01/15/08 | 01/15/09 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Francisco Luzón | — | — | 639,400 | 9.09 | — | 639,400 | — | — | — | — | 639,400 | 9.09 | — | — | — | — | 639,400 | 9.09 | 01/15/08 | 01/15/09 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— | — | 3,348,792 | 9.09 | — | 3,348,792 | — | — | — | — | 3,348,792 | 9.09 | — | — | — | — | 3,348,792 | 9.09 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(*) | Approved by Banesto’s shareholders at its Annual General Meeting on February 28, 2006. |
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b) Growth in Earnings per Share (“EPS”).
Percentage of | Santander's | Percentage of | ||||||||
Santander's | shares to be | position in the | shares to be | |||||||
position in the | delivered | EPS growth | delivered | |||||||
TSR ranking | over maximum | ranking | over maximum | |||||||
1st to 6th | 50 | % | 1st to 6th | 50 | % | |||||
7th | 43 | % | 7th | 43 | % | |||||
8th | 36 | % | 8th | 36 | % | |||||
9th | 29 | % | 9th | 29 | % | |||||
10th | 22 | % | 10th | 22 | % | |||||
11th | 15 | % | 11th | 15 | % | |||||
12th or more | 0 | % | 12th or more | 0 | % |
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Bank | Country | |
ABN AMRO Holding | The Netherlands | |
Banco Itau | Brazil | |
Bank of America | United States | |
Barclays | United Kingdom | |
BBVA | Spain | |
BNP Paribas | France | |
Citigroup | United States | |
Credit Agricole | France | |
HBOS | United Kingdom | |
HSBC Holdings | United Kingdom | |
Intesa Sanpaolo | Italy | |
JP Morgan Chase & Co. | United States | |
Lloyds TSB Group | United Kingdom | |
Mitsubishi | Japan | |
Nordea Bank | Sweden | |
Royal Bank of Canada | Canada | |
Royal Bank of Scotland Group | United Kingdom | |
Société Générale | France | |
UBS | Switzerland | |
Unicredito Italiano | Italy | |
Wells Fargo & Co. | United States |
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Executive Directors | First Cycle | Second Cycle | ||||||
Emilio Botín | 41,785 | 62,589 | ||||||
Alfredo Sáenz | 110,084 | 164,894 | ||||||
Matías R. Inciarte | 53,160 | 79,627 | ||||||
Francisco Luzón | 44,749 | 67,029 | ||||||
Ana P. Botín | 27,929 | 41,835 |
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Executive Directors | Maximum No. of shares | |||
Emilio Botín | 16,306 | |||
Alfredo Sáenz | 37,324 | |||
Matías R. Inciarte | 20,195 | |||
Francisco Luzón | 22,214 | |||
Ana P. Botín | 13,610 |
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Euros | Date of | Date of | ||||||||||||||||||||||||||
Number of | Exercise | Year | Employee | Number of | Commencement | Expiry of | ||||||||||||||||||||||
Shares | Price | Granted | Group | Persons | of Exercise Period | Exercise Period | ||||||||||||||||||||||
Plans outstanding at January 1, 2004 | 25,739,966 | 9.38 | ||||||||||||||||||||||||||
Options exercised | (1,934,406 | ) | (2.83 | ) | ||||||||||||||||||||||||
Of which: | ||||||||||||||||||||||||||||
Plan Four | (36,000 | ) | 7.84 | |||||||||||||||||||||||||
Managers Plan 99 | (1,139,488 | ) | 2.29 | |||||||||||||||||||||||||
Additional Managers Plan 99 | (55,668 | ) | 2.41 | |||||||||||||||||||||||||
Young Executives Plan | (563,250 | ) | 2.29 | |||||||||||||||||||||||||
European Branches Plan | (140,000 | ) | 8.23 | |||||||||||||||||||||||||
Options cancelled or not exercised | (2,678,810 | ) | — | |||||||||||||||||||||||||
Plans outstanding at December 31, 2004 | 21,126,750 | 9.94 | ||||||||||||||||||||||||||
Of which: | ||||||||||||||||||||||||||||
Plan Four | 228,000 | 7.84 | 1998 | Managers | 5 | 01/09/03 | 12/30/05 | |||||||||||||||||||||
Investment Bank Plan | 4,503,750 | 10.25 | 2000 | Managers | 56 | 06/16/03 | 06/15/05 | |||||||||||||||||||||
Young Executives Plan | 364,000 | 2.29 | 2000 | Managers | 111 | 07/01/03 | 06/30/05 | |||||||||||||||||||||
Managers Plan 2000 | 13,341,000 | 10.545 | 2000 | Managers | 970 | 12/30/03 | 12/29/05 | |||||||||||||||||||||
European Branches Plan | 2,690,000 | 7.60 (* | ) | 2002 and 2003 | Managers | 27 | 07/01/05 | 07/15/05 | ||||||||||||||||||||
Plans outstanding at January 1, 2005 | 21,126,750 | 9.94 | ||||||||||||||||||||||||||
Options granted (Plan I06) | 99,900,000 | 9.09 (** | ) | Managers | 2,601 | 01/15/08 | 01/15/09 | |||||||||||||||||||||
Options exercised | (15,606,000 | ) | (9.83 | ) | ||||||||||||||||||||||||
Of which: | ||||||||||||||||||||||||||||
Plan Four | (228,000 | ) | 7.84 | |||||||||||||||||||||||||
Investment Bank Plan | — | — | ||||||||||||||||||||||||||
Young Executives Plan | (329,000 | ) | 2.29 | |||||||||||||||||||||||||
Managers Plan 2000 | (12,389,000 | ) | 10.545 | |||||||||||||||||||||||||
European Branches Plan | (2,660,000 | ) | 7.60 (* | ) | ||||||||||||||||||||||||
Options cancelled or not exercised | (5,520,750 | ) | — | |||||||||||||||||||||||||
Plans outstanding at December 31, 2005 | 99,900,000 | 9.09 | Managers | 2,601 | 01/15/08 | 01/15/09 | ||||||||||||||||||||||
Options exercised | — | — | ||||||||||||||||||||||||||
Options cancelled, net (Plan I06) | (3,648,610 | ) | 9.09 | Managers | (44 | ) | 01/15/08 | 01/15/09 | ||||||||||||||||||||
Plans outstanding at December 31, 2006 | 96,251,390 | 9.09 | Managers | 2,557 | 01/15/08 | 01/15/09 | ||||||||||||||||||||||
(*) | The average exercise price ranges from€5.65 to€10.15 per share. | |
(**) | The exercise price of the options under Plan I06 is€9.09 per share, which is the weighted average of the daily average market price of the Bank shares on the continuous market in the first 15 trading days of January 2005. This was the criterion established in the resolution approving Plan I06 adopted at the Annual General Meeting held on June 18, 2005. The documentation on the aforementioned resolution stated correctly the method to be used to set the exercise price but, by mistake, an amount of€9.07 per share was mentioned rather than the correct amount of€9.09 per share. |
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Pounds | Date of | Date of | ||||||||||||||||||||||||||
Number of | Sterling (*) | Year | Employee | Number of | Commencement | Expiry of | ||||||||||||||||||||||
Shares | Exercise Price | Granted | Group | Persons | of Exercise Period | Exercise Period | ||||||||||||||||||||||
Plans outstanding at December 31,2004 | 17,675,567 | 3.58 | ||||||||||||||||||||||||||
Of which: | ||||||||||||||||||||||||||||
Executive Options | 358,844 | 4.16 | ||||||||||||||||||||||||||
Employee Options | 56,550 | 5.90 | ||||||||||||||||||||||||||
Sharesave | 17,260,173 | 3.56 | ||||||||||||||||||||||||||
Plans outstanding at January 1, 2005 | 17,675,567 | 3.58 | ||||||||||||||||||||||||||
Options exercised | (1,769,216 | ) | 4.45 | |||||||||||||||||||||||||
Of which: | ||||||||||||||||||||||||||||
Executive Options | (89,305 | ) | 4.43 | |||||||||||||||||||||||||
Employee Options | (2,550 | ) | 5.90 | |||||||||||||||||||||||||
Sharesave | (1,677,361 | ) | 4.45 | |||||||||||||||||||||||||
Options cancelled or not exercised | (1,783,670 | ) | — | |||||||||||||||||||||||||
Plans outstanding at December 31,2005 | 14,122,681 | 3.41 | ||||||||||||||||||||||||||
Of which: | ||||||||||||||||||||||||||||
Executive Options | 269,539 | 4.07 | ||||||||||||||||||||||||||
Employee Options | 54,000 | 5.90 | ||||||||||||||||||||||||||
Sharesave | 13,799,142 | 3.38 | ||||||||||||||||||||||||||
Plans outstanding at January 1, 2006 | 14,122,681 | 3.41 | ||||||||||||||||||||||||||
Options granted (MTIP) | 2,825,123 | 7.50 | 2005 and 2006 | Managers | 174 | First half of 2008 | First half of 2008 | |||||||||||||||||||||
Options exercised | (5,214,171 | ) | 3.41 | |||||||||||||||||||||||||
Of which: | ||||||||||||||||||||||||||||
Executive Options | (87,659 | ) | 4.07 | |||||||||||||||||||||||||
Employee Options | (33,000 | ) | 5.90 | |||||||||||||||||||||||||
Sharesave | (5,093,512 | ) | 3.38 | |||||||||||||||||||||||||
Options cancelled (net) or not exercised | (1,379,401 | ) | — | |||||||||||||||||||||||||
Plans outstanding at December 31,2006 | 10,354,232 | 4.32 | ||||||||||||||||||||||||||
Of which: | ||||||||||||||||||||||||||||
Executive Options | 178,026 | 4.11 | 2003-2004 | Managers | 13 | 03/26/06 | 03/24/13 | |||||||||||||||||||||
Employee Options | — | — | — | — | — | — | — | |||||||||||||||||||||
Sharesave | 7,638,791 | 3.32 | 1998-2004 | Employees | 4,512 (** | ) | 04/01/06 | 09/01/11 | ||||||||||||||||||||
MTIP | 2,537,415 | 7.39 | 2005 and 2006 | Managers | 170 | First half of 2008 | First half of 2008 |
(*) | At December 31, 2006, 2005 and 2004 the euro/pound sterling exchange rate was€1.4892/GBP 1,€1.4592/GBP 1 and€1.4183/GBP 1, respectively. | |
(**) | Number of accounts/contracts. A single employee may have more than one account/contract. |
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Name | Date of expiration | |||
Emilio Botín | 1st half 2010 | |||
Fernando de Asúa | 1st half 2011 | |||
Alfredo Sáenz | 1st half 2011 | |||
Matías R. Inciarte | 1st half 2010 | |||
Manuel Soto | 1st half 2010 | |||
Assicurazioni Generali, S.p.A. | 1st half 2012 | |||
Antonio Basagoiti | 1st half 2012 | |||
Ana P. Botín | 1st half 2011 | |||
Javier Botín | 1st half 2010 | |||
Lord Burns | 1st half 2011 | |||
Guillermo de la Dehesa | 1st half 2010 | |||
Rodrigo Echenique | 1st half 2011 | |||
Antonio Escámez | 1st half 2012 | |||
Francisco Luzón | 1st half 2012 | |||
Abel Matutes | 1st half 2010 | |||
Mutua Madrileña Automovilista. | 1st half 2009 | |||
Luis Ángel Rojo | 1st half 2010 | |||
Luis Alberto Salazar-Simpson | 1st half 2009 | |||
Isabel Tocino | 1st half 2011 |
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By decision | ||||||||||||
Date of current | By decision of | of the | ||||||||||
contract | the Bank | Director | ||||||||||
Advance notice period | (month/day/year) | (months) | (months) | |||||||||
Emilio Botín | 01/02/2007 | (* | ) | (* | ) | |||||||
Alfredo Sáenz | 12/09/1997 and 02/13/2002 | 4 | 4 | |||||||||
Matías R. Inciarte | 10/07/2002 | 4 | 4 | |||||||||
Ana P. Botín | 02/13/2002 | 4 | 4 | |||||||||
Francisco Luzón | 01/12/2004 | 6 | 4 |
(*) | It is not contractually established. |
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• | The Committee’s composition, functions and operating regime. | ||
• | Activity in 2006, grouped on the basis of the Committee’s various functions: |
• | Evaluation by the Committee of its performance during 2006. |
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Name | Position | |
Luis Ángel Rojo | Chairman | |
Fernando de Asúa | Member | |
Manuel Soto | Member | |
Abel Matutes | Member | |
Luis Alberto Salazar-Simpson | Member |
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• | Composition, functions and operating regime of the Committee. | ||
• | Report on Directors’ Remuneration Policy. | ||
• | Activity in 2006: |
• | Evaluation by the Committee of its performance during 2006. |
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Name | Position | |
Fernando de Asúa | Chairman | |
Manuel Soto | Member | |
Guillermo de la Dehesa | Member | |
Rodrigo Echenique | Member | |
Luis Ángel Rojo | Member |
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Number of employees | ||||||||||||
2006 | 2005(*) | 2004(*) | ||||||||||
SPAIN | 35,781 | 34,813 | 35,048 | |||||||||
LATIN AMERICA | 65,967 | 62,161 | 59,905 | |||||||||
Argentina | 6,566 | 5,975 | 5,907 | |||||||||
Bolivia | – | 328 | 323 | |||||||||
Brazil | 21,599 | 20,489 | 21,097 | |||||||||
Chile | 12,533 | 11,408 | 11,408 | |||||||||
Colombia | 1,893 | 1,730 | 1,737 | |||||||||
Mexico | 15,820 | 14,562 | 12,596 | |||||||||
Peru | 29 | 1,492 | 536 | |||||||||
Puerto Rico | 2,249 | 1,611 | 1,630 | |||||||||
Uruguay | 304 | 251 | 253 | |||||||||
Venezuela | 4,974 | 4,315 | 4,418 | |||||||||
EUROPE | 27,171 | 31,474 | 36,310 | |||||||||
Czech Republic | 179 | 192 | 275 | |||||||||
Germany | 1,845 | 1,875 | 1,824 | |||||||||
Belgium | 11 | 27 | 58 | |||||||||
France | 18 | 17 | 28 | |||||||||
Hungary | 77 | 76 | 72 | |||||||||
Ireland | 5 | 5 | 8 | |||||||||
Italy | 780 | 720 | 622 | |||||||||
Norway | 285 | 269 | 496 | |||||||||
Poland | 588 | 646 | 801 | |||||||||
Portugal | 6,190 | 6,317 | 6,503 | |||||||||
Switzerland | 194 | 188 | 173 | |||||||||
The Netherlands | 57 | 62 | 57 | |||||||||
United Kingdom | 16,942 | 21,080 | 25,393 | |||||||||
USA | 734 | 649 | 636 | |||||||||
ASIA | 11 | 11 | 10 | |||||||||
Hong Kong | 7 | 7 | 6 | |||||||||
Japan | 4 | 4 | 4 | |||||||||
OTHERS | 85 | 88 | 92 | |||||||||
Bahamas | 57 | 65 | 70 | |||||||||
Others | 28 | 23 | 22 | |||||||||
Total | 129,749 | 129,196 | 132,001 | |||||||||
(*) | Figures for 2005 and 2004 differ from those presented in our Annual Report. In the Annual Report, for comparison purposes, we do not include employees working for the companies that were discontinued during 2006, such as the life insurance business of Abbey. In this Annual Report on Form 20-F we include the total number of employees at those dates. |
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Number of employees | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Retail Banking | 119,346 | 117,655 | 122,262 | |||||||||
Asset Management and Insurance | 7,132 | 7,902 | 6,108 | |||||||||
Global Wholesale Banking | 1,774 | 2,177 | 2,198 | |||||||||
Financial Management and Equity Stakes | 1,498 | 1,462 | 1,433 | |||||||||
Total | 129,749 | 129,196 | 132,001 | |||||||||
Direct | Indirect stake | % of | ||||||||||||||
Directors | Stake | and represented | Total shares | Capital stock | ||||||||||||
Emilio Botín (1) | 1,638,712 | 134,992,890 | 136,631,602 | 2.506 | % | |||||||||||
Fernando de Asúa | 25,616 | 34,400 | 60,016 | 0.001 | % | |||||||||||
Alfredo Sáenz | 365,063 | 1,243,532 | 1,608,595 | 0.026 | % | |||||||||||
Matías R. Inciarte | 555,517 | 126,744 | 682,261 | 0.011 | % | |||||||||||
Manuel Soto | – | 240,000 | 240,000 | 0.004 | % | |||||||||||
Assicurazioni Generali S.p.A | 13,883,922 | 67,847,477 | 81,731,399 | 1.307 | % | |||||||||||
Antonio Basagoiti | 530,000 | – | 530,000 | 0.008 | % | |||||||||||
Ana P. Botín (1) | 4,977,323 | 4,024,306 | 9,001,629 | 0.000 | % | |||||||||||
Javier Botín (2) | 4,793,481 | 6,300,000 | 11,093,481 | 0.000 | % | |||||||||||
Lord Burns (Terence) | 100 | 27,001 | 27,101 | 0.000 | % | |||||||||||
Guillermo de la Dehesa | 100 | – | 100 | 0.000 | % | |||||||||||
Rodrigo Echenique | 651,598 | 7,344 | 658,942 | 0.011 | % | |||||||||||
Antonio Escámez | 559,508 | – | 559,508 | 0.009 | % | |||||||||||
Francisco Luzón | 44,095 | 1,298,544 | 1,342,639 | 0.021 | % | |||||||||||
Abel Matutes | 52,788 | 86,150 | 138,938 | 0.002 | % | |||||||||||
Mutua Madrileña Automovilista | 73,100,000 | 150,000 | 73,250,000 | 1.171 | % | |||||||||||
Luis Ángel Rojo | 1 | – | 1 | 0.000 | % | |||||||||||
Luis Alberto Salazar-Simpson | 108,412 | 4,464 | 112,876 | 0.002 | % | |||||||||||
Isabel Tocino | 343 | – | 343 | 0.000 | % | |||||||||||
101,286,579 | 216,382,852 | 317,669,431 | 5.079 | % |
(1) | Emilio Botín has attributed the right of vote in a General Shareholders’ Meeting of 90,715,628 shares (1.45% of the capital stock) held by the Marcelino Botín Foundation, of 8,096,742 shares held by Jaime Botín, of 96,047 shares held by Paloma O’Shea, of 9,041,480 shares held by Emilio Botín O., of 9,001,459 shares held by Ana P. Botín and of 11,093,481 shares held by Javier Botín. This table shows the direct and indirect shareholding of the two latter who are Directors, but in the column showing the percentage of the capital these shareholdings are calculated together with those that belong or are also represented by Emilio Botín. | |
(2) | Javier Botín is a proprietary Director as he represents in the Board of Directors a 2.506% of the Bank’s capital stock which corresponds to the holdings of the Marcelino Botín Foundation, Emilio Botín, Ana P. Botín, Emilio Botín O., Jaime Botín, Paloma O’Shea and his own. |
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In thousands of euros | ||||||||||||
Loans and | ||||||||||||
Credits | Guarantees | Total | ||||||||||
Alfredo Sáenz | 21 | — | 21 | |||||||||
Manuel Soto | 4 | — | 4 | |||||||||
Antonio Basagoiti | 125 | 1 | 126 | |||||||||
Ana P. Botín | 2 | — | 2 | �� | ||||||||
Rodrigo Echenique | 33 | — | 33 | |||||||||
Antonio Escámez | 289 | — | 289 | |||||||||
Francisco Luzón | 875 | — | 875 | |||||||||
Mutua Madrileña Automovilista | 140 | 63 | 203 | |||||||||
1,489 | 64 | 1,553 | ||||||||||
• | overnight call deposits; | ||
• | foreign exchange purchases and sales; | ||
• | derivative transactions, such as forward purchases and sales; | ||
• | money market fund transfers; | ||
• | letters of credit for imports and exports; |
• | in the ordinary course of business; | ||
• | on substantially the same terms, including interest rates and collateral, as those prevailing for comparable transactions with other persons; and | ||
• | did not involve more than the normal risk of collectibility or present other unfavorable features. |
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Page | ||||
Report of Deloitte, S.L. | F-1 | |||
Consolidated Balance Sheets as of December 31, 2006, 2005 and 2004 | F-2 | |||
Consolidated Statements of Income for the Years Ended December 31, 2006, 2005 and 2004 | F-4 | |||
Notes to the Consolidated Financial Statements | F-8 |
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See the discussion of certain litigation in Note 1.d.i and ii to our consolidated financial statements.
Other Litigation
In addition to the above described matters, the Bank and its subsidiaries are from time to time subject to certain claims and parties to certain legal proceedings incidental to the normal course of our business, including in connection with the Group’s lending activities, relationships with the Group’s employees and other commercial or tax matters. In view of the inherent difficulty of predicting the outcome of legal matters, particularly where the claimants seek very large or indeterminate damages, or where the cases present novel legal theories, involve a large number of parties or are in early stages of discovery, the Bank cannot state with confidence what the eventual outcome of these pending matters will be, what the timing of the ultimate resolution of these matters will be or what the eventual loss, fines or penalties related to each pending matter may be. The Bank believes that it has made adequate reserves related to the costs anticipated to be incurred in connection with these various claims and legal proceedings and believes that liabilities related to such claims and proceedings should not have, in the aggregate, a material adverse effect on the Group’s business, financial condition, or results of operations. However, in light of the uncertainties involved in such claims and proceedings, there is no assurance that the ultimate resolution of these matters will not significantly exceed the reserves currently accrued by the Bank; as a result, the outcome of a particular matter may be material to the Bank’s operating results for a particular period, depending upon, among other factors, the size of the loss or liability imposed and the level of the Bank’s income for that period.
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Euro per Share Interim | Dollars per ADS Interim | |||||||||||||||||||||||||||||||||||||||
First | Second | Third | Fourth | Total | First | Second | Third | Fourth | Total | |||||||||||||||||||||||||||||||
2002 | 0.0775 | 0.07513 | 0.07513 | 0.06073 | 0.2885 | 0.0754 | 0.0612 | 0.0804 | 0.0680 | 0.2850 | ||||||||||||||||||||||||||||||
2003 | 0.0775 | 0.0775 | 0.0775 | 0.0704 | 0.3029 | 0.08602 | 0.0899 | 0.0842 | 0.08801 | 0.36235 | ||||||||||||||||||||||||||||||
2004 | 0.0830 | 0.0830 | 0.0830 | 0.0842 | 0.3332 | 0.08484 | 0.08971 | 0.09175 | 0.09191 | 0.35821 | ||||||||||||||||||||||||||||||
2005 | 0.09296 | 0.09296 | 0.09296 | 0.13762 | 0.4165 | 0.09591 | 0.09466 | 0.09523 | 0.147016 | 0.432816 | ||||||||||||||||||||||||||||||
2006 | 0.106904 | 0.106904 | 0.106904 | 0.199913 | 0.5206 | 0.11582 | 0.11593 | 0.11400 | 0.222418 | 0.568168 |
Year Ended December 31, | ||||||||||||||||||||
Previous Spanish GAAP | EU-IFRS(*) | |||||||||||||||||||
2002 | 2003 | 2004 (**) | 2004 | 2005 | 2006 | |||||||||||||||
(in thousands of euros) | ||||||||||||||||||||
1,376,178 | 1,445,033 | 1,837,424 | 1,935,992 | 2,605,009 | 3,256,190 |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
(**) | Statutory Distributable Profits |
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Euros per Share | ||||||||||||
High | Low | Last | ||||||||||
2002 Annual | 10.47 | 4.99 | 6.54 | |||||||||
2003 Annual | 9.44 | 5.01 | 9.39 | |||||||||
2004 Annual | 9.77 | 7.70 | 9.13 | |||||||||
2005 Annual | 11.18 | 8.92 | 11.15 | |||||||||
First Quarter | 9.83 | 8.94 | 9.39 | |||||||||
Second Quarter | 9.65 | 8.92 | 9.59 | |||||||||
Third Quarter | 10.99 | 9.21 | 10.93 | |||||||||
Fourth Quarter | 11.18 | 10.25 | 11.15 | |||||||||
2006 Annual | 14.37 | 10.54 | 14.14 | |||||||||
First Quarter | 12.40 | 11.00 | 12.05 | |||||||||
Second Quarter | 12.29 | 10.54 | 11.42 | |||||||||
Third Quarter | 12.49 | 11.00 | 12.47 | |||||||||
Fourth Quarter | 14.37 | 12.38 | 14.14 | |||||||||
Last six months | ||||||||||||
2006 | ||||||||||||
December | 14.22 | 13.51 | 14.14 | |||||||||
2007 | ||||||||||||
January | 14.59 | 14.07 | 14.59 | |||||||||
February | 14.65 | 14.01 | 14.01 | |||||||||
March | 13.87 | 12.83 | 13.36 | |||||||||
April | 13.92 | 13.19 | 13.19 | |||||||||
May | 14.28 | 13.06 | 14.28 | |||||||||
June (through June 28, 2007) | 14.50 | 13.59 | 13.69 |
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Dollars Per ADS | ||||||||||||
High | Low | Last | ||||||||||
2002 Annual | 9.49 | 4.75 | 7.05 | |||||||||
2003 Annual | 12.01 | 5.68 | 12.01 | |||||||||
2004 Annual | 12.47 | 9.43 | 12.37 | |||||||||
2005 | ||||||||||||
Annual | 13.27 | 11.37 | 13.19 | |||||||||
First Quarter | 12.80 | 11.68 | 12.16 | |||||||||
Second Quarter | 12.30 | 11.37 | 11.58 | |||||||||
Third Quarter | 13.27 | 11.50 | 13.17 | |||||||||
Fourth Quarter | 13.20 | 12.41 | 13.19 | |||||||||
2006 | ||||||||||||
Annual | 18.73 | 13.16 | 18.66 | |||||||||
First Quarter | 14.79 | 13.30 | 14.61 | |||||||||
Second Quarter | 15.62 | 13.16 | 14.62 | |||||||||
Third Quarter | 15.88 | 13.81 | 15.79 | |||||||||
Fourth Quarter | 18.73 | 15.83 | 18.66 | |||||||||
Last six months | ||||||||||||
2006 | ||||||||||||
December | 18.73 | 18.07 | 18.66 | |||||||||
2007 | ||||||||||||
January | 19.10 | 18.22 | 18.87 | |||||||||
February | 19.34 | 18.20 | 18.54 | |||||||||
March | 18.30 | 17.29 | 17.83 | |||||||||
April | 18.91 | 17.69 | 17.69 | |||||||||
May | 19.20 | 17.67 | 19.20 | |||||||||
June (through June 28, 2007) | 19.46 | 18.14 | 18.42 |
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• | the trade involves more than€1.5 million and more than 40% of average daily trading volume of the stock during the preceding quarter; | ||
• | relates to a merger or spin-off of a listed company; | ||
• | relates to the reorganization of a business group; | ||
• | the transaction is executed for the purposes of settling litigation; | ||
• | involves certain types of contracts or complex transactions; or | ||
• | the Sociedad de Bolsas finds other justifiable cause. |
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• | established an independent regulatory authority, the CNMV, to supervise the securities markets; | ||
• | established a framework for the regulation of trading practices, tender offers and insider trading; | ||
• | required stock exchange members to be corporate entities; | ||
• | required companies listed on a Spanish stock exchange to file annual audited financial statements and to make public quarterly financial information; | ||
• | established a framework for integrating quotations on the four Spanish stock exchanges by computer; | ||
• | exempted the sale of securities from transfer and value added taxes; | ||
• | deregulated brokerage commissions as of 1992; and | ||
• | provided for transfer of shares by book-entry or by delivery of evidence of title. |
• | provisions regarding market transparency such as: requiring listed companies to establish an audit committee, redefining the reporting requirements for relevant events, rules relating to the treatment of confidential and insider information and related party transactions, and prevention of manipulative and fraudulent practices with respect to market prices; | ||
• | the establishment of Iberclear; and | ||
• | the authorization to the Minister of Economy to regulate the financial services electronic contracts. |
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• | information and transparency obligations including detailed requirements of the contents of the corporate website of listed companies and the obligation to file with the CNMV an annual corporate governance report; and | ||
• | the obligation to implement a series of corporate governance rules including, among others, regulations regarding the boards of directors and the general shareholders’ meeting. |
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• | anyone with a right to acquire, transfer or exercise voting rights granted by the shares, regardless of the actual ownership of the shares; and anyone owing, acquiring or transferring other securities or financial instruments which grant a right to acquire shares with voting rights, will also have to notify the holding of a significant stake in accordance with the developing regulations; | ||
• | Directors of listed companies, in addition to notifying any transaction concerning the shares or other securities or financial instruments of the issuer which are linked to these shares, will have to inform the CNMV of their stake upon appointment or resignation; and | ||
• | Listed companies will be required to notify transactions concerning their treasury shares in certain cases, which will be established in the developing regulations. |
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(i) | issuance of bonds; | ||
(ii) | increase or reduction of share capital; | ||
(iii) | transformation of Santander (change in corporate nature); | ||
(iv) | merger, split or spin-off; | ||
(v) | any other amendment of our By-laws; and | ||
(vi) | dissolution. |
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• | capital increases following conversion of convertible bonds into Santander shares; or | ||
• | capital increases due to the absorption of another company or of part of the spun-off assets of another company, when the new shares are issued in exchange for the new assets received. |
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• | a Spanish 210 Form; | ||
• | the certificate referred to in the preceding section; and | ||
• | evidence that Spanish non-resident income tax was withheld with respect to you. |
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• | certain financial institutions; | ||
• | insurance companies; | ||
• | dealers and traders in securities or foreign currencies; | ||
• | holders holding ADSs or shares as part of a hedge, straddle, conversion transaction or other integrated transaction; | ||
• | holders whose “functional currency” is not the U.S. dollar; | ||
• | holders liable for alternative minimum tax; | ||
• | tax exempt organizations; | ||
• | partnerships or other entities classified as partnerships for U.S. federal income tax purposes; | ||
• | holders that own 10% or more of our voting shares; or | ||
• | persons who acquired our ADSs or shares pursuant to the exercise of any employee stock option or otherwise as compensation. |
• | a citizen or resident of the United States; | ||
• | a corporation, or other entity taxable as a corporation, created or organized in or under the laws of the United States or of any political subdivision thereof; or | ||
• | an estate or trust the income of which is subject to U.S. federal income taxation regardless of its source. |
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• | Organization of Risk Management; | ||
• | Global Risk Analysis Profile; | ||
• | Credit Risk; | ||
• | Operational Risk; | ||
• | Reputational Risk; | ||
• | Risk Training Activities; and | ||
• | Market Risk. |
• | Autonomy in each business area. Matías R. Inciarte, the Group’s third Vice-Chairman and Chairman of the Risk Committee, reports directly to the Executive Committee and to the Board. | ||
• | While maintaining the principle of autonomy in each business area, providing the necessary support for achieving the commercial goals, without eroding the quality of risk, by identifying business opportunities that create value. Consequently, the organizational structure is adapted to the commercial structure and business and risk managers work within such organization. |
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• | Executive capacity supported by knowledge and closeness to the customer, in parallel with the business manager, as well as collective decisions via the corresponding risks committees. | ||
• | Help Senior Management define the philosophy and level of tolerance to risk on the basis of the business strategy. | ||
• | Help Financial Management measure the risk of various activities, the risk-adjusted return and the creation of value in the Group’s businesses. | ||
• | Global scope, without detriment to specialization by risk type and customer segment. | ||
• | Collective decisions (including at the branch) which ensures different opinions and does not make results dependent on decisions by individuals. | ||
• | Medium-low risk profiles as a target, emphasizing its low volatility or predictable nature, which entails a culture of consistency in a series of policies and procedures, among which are the following: |
– | Special emphasis on monitoring of risks in order to have sufficient warning of possible problems. | ||
– | Risk diversification limiting, in general, the Group’s relative exposure to the overall risk of customers in the credit system. | ||
– | Avoid exposure to companies with ratings deemed to be below par, even when this would entail a risk premium proportionate to the level of internal rating. |
• | Internal qualitative and quantitative ratings; with valuation of the different components which, by client and facility, enable the probabilities of failure to be estimated and then the inherent loss on the basis of historical data. | ||
• | Economic capital, as the homogeneous metric of the risk assumed and the basis for measuring management. | ||
• | Return on Risk Adjusted Capital (RORAC), for pricing operations (bottom up) and analysis of portfolios and units (top down). | ||
• | Value at risk as an element of control and for setting the market risk limits of the different trading portfolios. | ||
• | Stress testing to complement the analysis of market and credit risk, in order to assess the impact of alternative scenarios, including on provisions and capital. |
• | Propose to the Board the risk policy for the Group, which must, in particular, identify: |
– | The different types of risk (operational, technological, financial, legal and reputational, among others) facing the Bank, including contingent liabilities and other off-balance sheet risks; | ||
– | The internal information and control systems used to control and manage these risks; | ||
– | The level of risk considered acceptable; and | ||
– | The measures envisaged to mitigate the impact of identified risks, in the event that they materialize. |
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• | Systematically review exposures with the main customers, economic sectors, geographic areas and types of risk. | ||
• | To be familiar with and to authorize, in each case, the management tools, enhancement initiatives, progress of projects and any other relevant activity related to risk control, including the specific characteristics and behavior of the internal risk models as well as the results of the internal validation. | ||
• | Assess and track the indications formulated by the supervisory bodies in the exercise of their functions. | ||
• | Vouch that our actions are consistent with the previously decided risk tolerance level and delegate in other committees lower down the hierarchy or in executives powers to assume risks. | ||
• | Resolve operations beyond the powers delegated to bodies immediately below, as well as the global limits of preclassification of economic groups or in relation to exposures by classes of risk. |
Sphere | Level in the hierarchy | Name | ||
Centralised | Executive | Executive Committee | ||
Risks Committee of the Board | ||||
Risks Division | Risks Management Committee | |||
Global Committee of General Directorate of Risks | ||||
Permanent Committee of Risks | ||||
Areas and Departments | Risk Wholesale Banking Risk Committee | |||
Company Banking Global Risk Committee | ||||
Standardised Global Risk Committee | ||||
Financial Global Risk Committee | ||||
Decentralised | Units Committee | Risks Committee in Banks of the Group/Countries | ||
Risks Committee in Branches Abroad | ||||
Risks Committee in regional areas or in business units | ||||
Other committees |
• | General Directorate of Risks; and | ||
• | General Directorate of Internal Control and Integral Assessment of Risk. |
• | Clients: study, analysis and monitoring of risks, from the standpoint of the various customer segments. |
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• | Control, Analysis and Consolidation: responsible for receiving, consolidating, controlling and analyzing all the information on risks from our various units. | ||
• | Methodology, Processes and Infrastructure: responsible for defining the methodologies to be used by the Group, defining the needs, scope and implementation of the infrastructure needed to support the risks function and define and maintain policies for risk activity. |
– | Establishes, proposes and documents the risk policies and criteria, the global limits and decision-making processes and control. | ||
– | Generates management frameworks, systems and tools. | ||
– | Fosters and supports their implementation and ensures that they function effectively in all units. | ||
– | Knows, assimilates and adapts the best practices inside and outside the Group. |
– | Apply policies and decision-making systems to each market. | ||
– | Adapt the organization and management framework to the Corporate Frameworks. | ||
– | Contribute criticism and best practices, as well as local knowledge and proximity to customers. | ||
– | Assume greater responsibilities in decision-making, control and risk management. | ||
– | Define and document policies and lead projects in the local sphere. |
• | Quantitative validation of the internal risk models, according to BIS II, and calculation of the internal parameters for economic-regulatory capital. | ||
• | Qualitative reviewing of the rating systems, internal processes and treatment of data in order to evaluate their suitability and adjustment to the requirements of the internal models, in accordance with Basel II rules and the prevailing legislation. | ||
• | Provide the Group’s units with methodological support for everything regarding Basel II. | ||
• | Co-ordination, at Group level, of compliance with the requirements set by the regulatory bodies in risk matters. Monitoring and control of compliance to regulators’ recommendations. |
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• | Management of relations with Internal Auditing and the Auditor; pre-audits and monitoring compliance to recommendations of Internal Auditing in the risks areas. | ||
• | Management of our global economic capital model, which besides serving the internal purposes of business and capital management, will act as the central plank for the Internal Capital Adequacy Assessment Process (ICAAP) within Pillar 2 of Basel II. | ||
• | Measurement and control of our operational risk including establishing methodologies, defining and monitoring indicators and compliance with the regulations on management of this risk. Tracking and control of compliance to the regulators’ recommendations. | ||
• | Management at the internal and external levels of global information on risks and on applying and validating internal models, including the production of indicators, scoreboards and reports for senior management, and management of external information (Pillar 3 of BIS II) for rating agencies, the Group’s Annual Report and other Spanish and international bodies and forums. |
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Sovereign fixed | Private fixed | Commitments | Derivatives | |||||||||||||||||||||||||||||||||||||
Commitments | income | income | Outstanding | to | and | Change | ||||||||||||||||||||||||||||||||||
Outstanding | to | (excluding | (excluding | to credit | credit | Repos | over | |||||||||||||||||||||||||||||||||
to customers | customers | trading) | trading) | entities | entities | (ECR) | Total | % | Dec. 05 | |||||||||||||||||||||||||||||||
SPAIN | 257,464 | 57,053 | 10,253 | 5,263 | 12,622 | 948 | 14,907 | 358,510 | 48.1 | % | 10.3 | % | ||||||||||||||||||||||||||||
Parent bank | 155,136 | 39,368 | 2,228 | 1,681 | 7,742 | 476 | 9,657 | 216,288 | 29.0 | % | 0.0 | % | ||||||||||||||||||||||||||||
Banesto | 72,027 | 11,067 | 7,378 | 1,761 | 2,593 | 135 | 5,185 | 100,145 | 13.4 | % | 24.5 | % | ||||||||||||||||||||||||||||
Others | 30,302 | 6,618 | 647 | 1,821 | 2,287 | 337 | 65 | 42,077 | 5.6 | % | 48.7 | % | ||||||||||||||||||||||||||||
REST OF EUROPE | 231,470 | 11,579 | 772 | 1,093 | 4,170 | 1 | 13,325 | 262,410 | 35.2 | % | 7.9 | % | ||||||||||||||||||||||||||||
Germany | 15,547 | 1,668 | 0 | 41 | 284 | 0 | 5 | 17,545 | 2.4 | % | 17.3 | % | ||||||||||||||||||||||||||||
Portugal | 22,949 | 5,785 | 664 | 114 | 1,472 | 1 | 1,810 | 32,794 | 4.4 | % | -14.0 | % | ||||||||||||||||||||||||||||
UK | 164,513 | 2,702 | 0 | 875 | 1,036 | 0 | 11,389 | 180,515 | 24.2 | % | 1.3 | % | ||||||||||||||||||||||||||||
Others | 28,462 | 1,425 | 108 | 62 | 1,378 | 0 | 121 | 31,556 | 4.2 | % | 161.9 | % | ||||||||||||||||||||||||||||
LATIN AMERICA | 61,542 | 21,027 | 13,890 | 2,128 | 12,555 | 763 | 5,124 | 117,029 | 15.7 | % | 9.9 | % | ||||||||||||||||||||||||||||
Brazil | 16,440 | 4,002 | 5,420 | 597 | 2,904 | 0 | 1,677 | 31,041 | 4.2 | % | 14.1 | % | ||||||||||||||||||||||||||||
Chile | 15,890 | 3,239 | 149 | 513 | 1,453 | 1 | 1,899 | 23,145 | 3.1 | % | -5.8 | % | ||||||||||||||||||||||||||||
Mexico | 15,438 | 10,613 | 6,672 | 0 | 4,299 | 762 | 1,133 | 38,916 | 5.2 | % | 16.2 | % | ||||||||||||||||||||||||||||
Puerto Rico | 6,882 | 1,355 | 259 | 818 | 134 | 0 | 332 | 9,779 | 1.3 | % | -2.1 | % | ||||||||||||||||||||||||||||
Venezuela | 3,171 | 1,283 | 794 | 199 | 2,915 | 0 | 0 | 8,362 | 1.1 | % | 41.9 | % | ||||||||||||||||||||||||||||
Others | 3,721 | 535 | 596 | 1 | 850 | 0 | 83 | 5,787 | 0.8 | % | 8.2 | % | ||||||||||||||||||||||||||||
REST OF WORLD | 3,774 | 319 | 217 | 1,116 | 2,315 | 0 | 54 | 7,795 | 1.0 | % | 42.6 | % | ||||||||||||||||||||||||||||
TOTAL GROUP | 554,250 | 89,978 | 25,132 | 9,601 | 31,661 | 1,712 | 33,409 | 745,744 | 100 | % | 9.6 | % | ||||||||||||||||||||||||||||
% OF TOTAL | 74.3 | % | 12.1 | % | 3.4 | % | 1.3 | % | 4.2 | % | 0.2 | % | 4.5 | % | 100.0 | % | ||||||||||||||||||||||||
%change/dec05 | 21.1 | % | 17.6 | % | -56.4 | % | -46.9 | % | -20.2 | % | 49.5 | % | 13.8 | % | 9.6 | % |
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EaD | % | Average PD | Average LGD | EL | ||||||||||||||||
Sovereign | 37,163 | 5.4 | % | 1.10 | % | 22.0 | % | 0.24 | % | |||||||||||
Counterparty | 80,863 | 11.8 | % | 0.22 | % | 33.4 | % | 0.07 | % | |||||||||||
Public sector | 4,434 | 0.6 | % | 0.64 | % | 20.6 | % | 0.13 | % | |||||||||||
Corporate | 97,816 | 14.3 | % | 0.76 | % | 30.4 | % | 0.23 | % | |||||||||||
Companies | 131,313 | 19.2 | % | 2.33 | % | 32.0 | % | 0.75 | % | |||||||||||
Mortgages | 248,964 | 36.3 | % | 0.80 | % | 13.8 | % | 0.11 | % | |||||||||||
Consumer | 72,975 | 10.7 | % | 5.51 | % | 34.9 | % | 1.92 | % | |||||||||||
Cards | 10,605 | 1.5 | % | 5.27 | % | 43.0 | % | 2.26 | % | |||||||||||
Rest | 982 | 0.1 | % | 4.09 | % | 61.8 | % | 2.52 | % | |||||||||||
Memo items customers | 567,069 | 82.8 | % | 1.84 | % | 30.22 | % | 0.56 | % | |||||||||||
Total | 685,115 | 100.0 | % | 1.61 | % | 30.0 | % | 0.48 | % |
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• | Firms under individualized management: those customers who have been assigned, explicitly or implicitly, a risk analyst (attached to a Company Analysis Unit, Corporate Banking Risks or Risks with Financial Institutions). This category includes the segments of corporate banking, financial institutions, sovereigns and part of retail banking companies. | ||
• | Standardized: a customer who has not been assigned a risk analyst and whose actual or potential risk is less than€500,000. These customers include individuals, individual business persons and retail banking companies that are not under individualized management. |
Management | Valuation tool | Analysis criterion | ||||
Sovereigns, Financial Institutions and Global Corporates | Centralised at Group | Rating | Automatic valuation + analyst adjustment | |||
Local corporations | Centralised at entity | Rating | Automatic valuation + analyst adjustment | |||
Private companies and institutions under individualised management | Decentralised | Rating | Automatic valuation + analyst adjustment | |||
Micro companies and businesses | Decentralised | Scoring | Automatic valuation | |||
Individuals | Decentralised | Scoring | Automatic valuation |
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• | The quantitative rating is based on the market price of credit derivatives, specifically credit default swaps, or on the financial statements for institutions that do not have a liquid price in these instruments. |
• | There is then a review of the rating which has been automatically calculated by the analysts, producing a final rating. | |
• | Lastly, in the case of global wholesale banking the rating is adjusted when the customer belongs to a group from whom explicit support is received. |
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Internal | Probability of | Standard & | ||||||
Rating | default | Poor’s | Moody’s | |||||
9.3 | 0.017 | % | AAA | Aaa | ||||
9.2 | 0.018 | % | AA+ | Aa1 | ||||
9.0 | 0.022 | % | AA | Aa2 | ||||
8.5 | 0.035 | % | AA- | Aa3 | ||||
8.0 | 0.06 | % | A+ | A1 | ||||
7.5 | 0.09 | % | A | A2 | ||||
7.0 | 0.14 | % | A- | A3 | ||||
6.5 | 0.23 | % | BBB+ | Baa1 | ||||
6.0 | 0.36 | % | BBB | Baa2 | ||||
5.5 | 0.57 | % | BBB- | Baa3 | ||||
5.0 | 0.92 | % | BB+ | Ba1 | ||||
4.5 | 1.46 | % | BB | Ba2 | ||||
4.0 | 2.33 | % | BB/BB- | Ba2/Ba3 | ||||
3.5 | 3.71 | % | BB-/B+ | Ba3/B1 | ||||
3.0 | 5.92 | % | B+/B | B1/B2 | ||||
2.5 | 9.44 | % | B | B2 | ||||
2.0 | 15.05 | % | B- | B3 | ||||
1.5 | 24.00 | % | CCC | Caa1 | ||||
1.0 | 38.26 | % | CC/C | Caa1/Caa2 |
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Inherent loss | Capital by credit risk (%) | |||||||||||||||
Business unit | 2006 | 2005 | 2006 | 2005 | ||||||||||||
Santander Retail Banking Spain | 0.55 | 0.53 | 3.0 | 3.0 | ||||||||||||
Banesto | 0.25 | 0.21 | 2.6 | 3.0 | ||||||||||||
Abbey | 0.16 | 0.14 | 0.9 | 1.2 | ||||||||||||
Portugal | 0.43 | 0.36 | 3.2 | 3.6 | ||||||||||||
Consumer loans Europe | 1.19 | 1.18 | 3.1 | 3.2 | ||||||||||||
Latin America | 1.13 | 1.02 | 6.5 | 7.2 | ||||||||||||
Global Wholesale* | 0.22 | 0.22 | 5.7 | 5.9 | ||||||||||||
Grupo Santander | 0.48 | 0.39 | 3.0 | 3.1 |
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• | To analyze and set prices during the decision-making process for operations (admission) and clients (monitoring); | ||
• | To estimate the capital consumption of each client, portfolio or business segment, in order to facilitate the optimal allocation of economic capital; and | ||
• | To calculate the level of provisions that correspond to average inherent losses. |
• | Calculating the risk parameters (PD, LGD and EaD) necessary for applying the new regulatory capital formulas |
• | Methodological supervision of the estimation of parameters in all the Group’s units |
• | Methodological dissemination |
• | Presentation of results to national supervisory bodies |
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• | Assistance in validation processes |
• | Design of data bases and technological processes for estimating, assigning and calculating regulatory capital |
• | The use of risk parameters is not limited to calculating regulatory capital. Other applications, such as calculating Economic Capital or estimating RORAC, require knowing and being able to assign to each transaction its EaD, PD and LGD values |
• | The Department also supervises the methodological solutions used in other departments of the ICIAR and specifically, as already mentioned, those that affect the economic capital calculation and the RORAC of transactions |
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• | Quantitative validation | ||
• | Qualitative validation | ||
• | Technological validation | ||
• | Internal government validation |
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• | “1” indicates that the result of the test is fully satisfactory and can be applied to quantitative tests, qualitative reviews, documentary, etc. | ||
• | “2” is for those tests where partial positive conclusions are obtained and so must be strengthened in some aspect (greater application or documentation in a process, raise the amount of information available, improve the current performance, etc.). | ||
• | “3” is the rating given to those tests whose results are unsatisfactory and a mitigation or improvement plan should be implemented. |
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– | Approve new risk products | ||
– | Study and classification of risk | ||
– | Determine the economic provisions | ||
– | Determine market data | ||
– | Approve and validate risk methodologies |
– | Generate information on risks |
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Extinguish | Secure | Reduce | Track | Total FEVE | ||||||||||||||||
Spain- parent bank | 259 | 33 | 1,558 | 5,849 | 7,699 | |||||||||||||||
Portugal | 185 | 39 | 211 | 1,625 | 2,060 | |||||||||||||||
Latin America | 259 | 54 | 416 | 2,509 | 3,239 |
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Risk | NPL ratio (%) | Coverage (%) | ||||||||||||||||||||||
Million euros | Dec-06 | Dec-05 | Dec-06 | Dec-05 | Dec-06 | Dec-05 | ||||||||||||||||||
Argentina | 2,565 | 2,200 | 1.25 | 1.48 | 258.1 | 245.1 | ||||||||||||||||||
Brazil | 17,998 | 13,570 | 2.38 | 2.88 | 102.8 | 138.5 | ||||||||||||||||||
Colombia | 1,431 | 1,174 | 0.58 | 0.68 | 396.4 | 414.5 | ||||||||||||||||||
Chile | 16,741 | 16,975 | 1.59 | 2.31 | 152.6 | 165.6 | ||||||||||||||||||
Mexico | 16,598 | 14,052 | 0.64 | 0.89 | 279.2 | 273.4 | ||||||||||||||||||
Puerto Rico | 5,467 | 5,399 | 1.67 | 1.75 | 161.7 | 167.6 | ||||||||||||||||||
Venezuela | 3,238 | 2,319 | 0.98 | 1.52 | 435.5 | 399.9 | ||||||||||||||||||
Other countries | 6,545 | 4,989 | 0.16 | 0.54 | 831.7 | 432.0 | ||||||||||||||||||
Total | 70,582 | 60,678 | 1.38 | 1.82 | 167.3 | 186.5 |
Net | Write | Net specific | Cost of | |||||||||||||
2006 | specific | off | provisions less | credit | ||||||||||||
Million euros | provisions | recoveries | Write off recoveries | % of portfolio | ||||||||||||
Argentina | 12.4 | 22.5 | (10.1 | ) | (0.44 | ) | ||||||||||
Brazil | 635.1 | 103.6 | 531.5 | 3.49 | ||||||||||||
Colombia | 7.7 | 3.7 | 4.1 | 0.31 | ||||||||||||
Chile | 253.5 | 71.0 | 182.5 | 1.07 | ||||||||||||
Mexico | 229.9 | 48.1 | 181.8 | 1.26 | ||||||||||||
Puerto Rico | 60.0 | 13.7 | 46.2 | 0.85 | ||||||||||||
Venezuela | 15.9 | 9.6 | 6.2 | 0.24 | ||||||||||||
Other countries | (2.5 | ) | 5.6 | (8.1 | ) | (0.15 | ) | |||||||||
Total | 1,211.9 | 277.8 | 934.1 | 1.47 |
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Change | ||||||||||||||||||||||||||||
Dec-05 | ||||||||||||||||||||||||||||
Spain | Portugal | Latam | Rest | Abbey | Total | (p.p.) | ||||||||||||||||||||||
Agriculture | 0.6 | 0.1 | 0.2 | 0.0 | 0.0 | 0.9 | 0.3 | |||||||||||||||||||||
Manufacturing | 4.5 | 0.3 | 1.7 | 0.5 | 0.0 | 7.1 | -2.0 | |||||||||||||||||||||
Energy | 1.4 | 0.1 | 0.0 | 0.2 | 0.0 | 1.7 | -0.1 | |||||||||||||||||||||
Construction | 3.7 | 0.4 | 0.5 | 0.2 | 0.0 | 4.8 | 0.7 | |||||||||||||||||||||
Distribution | 2.8 | 0.3 | 0.9 | 0.6 | 0.0 | 4.6 | 0.2 | |||||||||||||||||||||
Hotel trade | 0.7 | 0.0 | 0.0 | 0.0 | 0.2 | 1.0 | 0.1 | |||||||||||||||||||||
Transport | 0.9 | 0.1 | 0.2 | 0.1 | 0.4 | 1.7 | 0.1 | |||||||||||||||||||||
Telecommunications | 0.8 | 0.1 | 0.2 | 0.2 | 0.0 | 1.3 | -0.2 | |||||||||||||||||||||
Financial intermediaries | 1.2 | 0.5 | 0.0 | 0.1 | 4.6 | 6.3 | 3.4 | |||||||||||||||||||||
Insurance | 0.1 | 0.0 | 0.3 | 0.5 | 0.3 | 1.1 | 0.4 | |||||||||||||||||||||
Real estate | 7.3 | 0.2 | 0.2 | 0.0 | 2.0 | 9.7 | 1.0 | |||||||||||||||||||||
Services | 3.5 | 0.6 | 1.5 | 0.2 | 0.2 | 6.1 | 0.3 | |||||||||||||||||||||
Public sector | 1.3 | 0.1 | 0.6 | 0.2 | 0.0 | 2.1 | 0.3 | |||||||||||||||||||||
Individuals without econ. activity | 11.4 | 2.8 | 2.7 | 4.5 | 22.7 | 44.1 | 0.4 | |||||||||||||||||||||
Rest/unclassified | 0.1 | -0.1 | 2.2 | 4.4 | 0.8 | 7.4 | -4.9 | |||||||||||||||||||||
Total | 40.2 | 5.6 | 11.3 | 11.7 | 31.2 | 100.0 | ||||||||||||||||||||||
Change over Dec 05 (p. p.) | -0.3 | -0.1 | -0.2 | 6.6 | -6.0 |
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Notional values | ||||||||||||||||||||||||
< 1 year | 1-5 years | 5-10 years | Trade | Hedge | Total | |||||||||||||||||||
CDS protection acquired | 5,231 | 40,807 | 10,728 | 54,744 | 4,138 | 58,881 | ||||||||||||||||||
CDS protection sold | 6,365 | 36,711 | 10,750 | 55,481 | 923 | 56,404 | ||||||||||||||||||
TOTAL CREDIT DERIVATIVES | 11,596 | 77,518 | 21,478 | 110,225 | 5,061 | 115,286 | ||||||||||||||||||
Equity forwards | 365 | — | — | — | 365 | 365 | ||||||||||||||||||
Equity options | 13,176 | 12,407 | 990 | 2,757 | 23,836 | 26,593 | ||||||||||||||||||
Equity swaps | 3,957 | 7,226 | 9,797 | 19,805 | 1,175 | 20,980 | ||||||||||||||||||
TOTAL EQUITY DERIVATIVES | 17,498 | 19,633 | 10,787 | 22,563 | 25,375 | 47,938 | ||||||||||||||||||
Fixed-income forwards | 2,080 | 16 | — | 617 | 1,479 | 2,096 | ||||||||||||||||||
Fixed-income options | 451 | — | — | 232 | 219 | 451 | ||||||||||||||||||
TOTAL FIXED INCOME DERIVATIVES | 2,530 | 16 | — | 848 | 1,698 | 2,546 | ||||||||||||||||||
Exchange-rate swaps | 28,791 | 2,330 | 327 | 2,706 | 28,941 | 31,646 | ||||||||||||||||||
Maturity swaps | 44,202 | 2,296 | — | 13,636 | 32,874 | 46,510 | ||||||||||||||||||
Exchange-rate options | 67,300 | 23,269 | 17,574 | 17,950 | 93,106 | 111,056 | ||||||||||||||||||
Other exchange-rate derivatives | 276 | 225 | — | 501 | — | 501 | ||||||||||||||||||
TOTAL EXCHANGE-RATE DERIVATIVES | 140,569 | 28,120 | 17,902 | 34,793 | 154,920 | 189,713 | ||||||||||||||||||
Asset swaps | 77 | 254 | 215 | — | 2,077 | 2,077 | ||||||||||||||||||
Call money swaps | 81,178 | 3,501 | 2,586 | 81,907 | 5,358 | 87,266 | ||||||||||||||||||
IRS | 483,498 | 600,380 | 267,450 | 1,090,060 | 396,903 | 1,486,963 | ||||||||||||||||||
Interest-rate forwards — FRAs | 14,256 | — | — | 14,256 | — | 14,256 | ||||||||||||||||||
Other interest-rate derivatives | 103,482 | 129,871 | 22,507 | 4,780 | 256,335 | 261,115 | ||||||||||||||||||
Structures | 3,198 | 22,894 | 991 | 27,305 | — | 27,305 | ||||||||||||||||||
TOTAL INTEREST-RATE DERIVATIVES | 685,690 | 756,900 | 293,749 | 1,218,308 | 660,673 | 1,878,981 | ||||||||||||||||||
Commodities | 30 | 5 | — | — | 36 | 36 | ||||||||||||||||||
TOTAL COMMODITY DERIVATIVES | 30 | 5 | — | — | 36 | 36 | ||||||||||||||||||
TOTAL OTC DERIVATIVES | 857,914 | 882,192 | 343,916 | 1,386,737 | 847,763 | 2,234,500 |
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Total net NRV | Total ECR | |||||||||||||||||||||||
Trade | Hedge | Total | Trade | Hedge | Total | |||||||||||||||||||
CDS protection acquired | -391 | -20 | -411 | 263 | 158 | 421 | ||||||||||||||||||
CDS protection sold | 433 | 7 | 440 | 287 | 1 | 288 | ||||||||||||||||||
TOTAL CREDIT DERIVATIVES | 42 | -13 | 30 | 550 | 159 | 709 | ||||||||||||||||||
Equity forwards | — | — | — | — | 7 | 7 | ||||||||||||||||||
Equity options | -110 | 31 | -79 | 78 | 1,682 | 1,760 | ||||||||||||||||||
Equity swaps | 181 | -3 | 178 | 377 | 3 | 380 | ||||||||||||||||||
TOTAL EQUITY DERIVATIVES | 71 | 27 | 99 | 455 | 1,693 | 2,148 | ||||||||||||||||||
Fixed-income forwards | 1 | — | 1 | 5 | 2 | 6 | ||||||||||||||||||
Fixed-income options | — | — | — | 2 | — | 2 | ||||||||||||||||||
TOTAL FIXED INCOME DERIVATIVES | 1 | — | 1 | 7 | 2 | 9 | ||||||||||||||||||
Exchange-rate swaps | 37 | 85 | 122 | 239 | 1,666 | 1,906 | ||||||||||||||||||
Maturity swaps | 10 | -2 | 8 | 211 | 331 | 542 | ||||||||||||||||||
Exchange-rate options | 135 | 255 | 390 | 1,719 | 3,263 | 4,982 | ||||||||||||||||||
Other exchange-rate derivatives | 9 | — | 9 | 67 | — | 67 | ||||||||||||||||||
TOTAL EXCHANGE RATE DERIVATIVES | 191 | 337 | 528 | 2,238 | 5,260 | 7,498 | ||||||||||||||||||
Asset swaps | — | 105 | 105 | — | 378 | 378 | ||||||||||||||||||
Call money swaps | 28 | — | 29 | 240 | 42 | 283 | ||||||||||||||||||
IRS | 4,142 | 621 | 4,762 | 11,597 | 3,577 | 15,174 | ||||||||||||||||||
Forwards Tipos de Interés — FRAs | 2 | — | 2 | 8 | — | 8 | ||||||||||||||||||
Other interest-rate derivatives | -3 | -390 | -393 | 26 | 784 | 810 | ||||||||||||||||||
Structures | 387 | — | 387 | 1,431 | — | 1,431 | ||||||||||||||||||
TOTAL INTEREST-RATE DERIVATIVES | 4,555 | 336 | 4,892 | 13,303 | 4,781 | 18,084 | ||||||||||||||||||
Commodities | — | — | — | — | 4 | 4 | ||||||||||||||||||
TOTAL COMMODITY DERIVATIVES | — | — | — | — | 4 | 4 | ||||||||||||||||||
TOTAL OTC DERIVATIVES | 4,861 | 688 | 5,549 | 16,552 | 11,900 | 28,452 | ||||||||||||||||||
COLLATERAL | -1,057 | -505 | -1,562 | -1,057 | -505 | -1,562 | ||||||||||||||||||
TOTAL | 3,804 | 183 | 3,987 | 15,495 | 11,395 | 26,890 |
counterparty rating
AAA | 0.7 | % | ||
AA | 60.6 | % | ||
A | 24.5 | % | ||
BBB | 10.4 | % | ||
BB | 3.5 | % | ||
B | 0.1 | % | ||
Without rating | 0.2 | % | ||
Total | 100.0 | % |
geographic areas
Spain | 25.5 | % | ||
UK | 14.9 | % | ||
Rest of Europe | 31.6 | % | ||
Latin America | 12.6 | % | ||
US | 14.4 | % | ||
Others | 1.0 | % | ||
Total | 100.0 | % |
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1. | Priority is given to mitigating daily management operational risk. | ||
2. | A large part of the basic foundations of an internal approach are already incorporated to the standardized approach and to our management of operational risk. |
– | The Risks Division is responsible for evaluating and controlling this risk category. | ||
– | The Central Unit that supervises operational risks reports to the Risks Division and is responsible for the global corporate programme. | ||
– | The management structure of operational risk is based on the knowledge and experience of executives and experts in the different areas and units. Particular importance is attached to the role of operational risk coordinators, who are the key players. |
• | Integral and effective management of operational risk (identification, prevention, evaluation, monitoring, control/mitigation and reporting). | ||
• | Improves knowledge of existing operational risks, both current and potential, and its allocation to the business and support lines. | ||
• | Loss data collection enables operational risk to be quantified for calculating both the economic and the regulatory capital. | ||
• | Operational risk information helps to improve the processes and controls, reduce losses and the volatility of revenues. |
• | Presentations to senior management and development of the internal rules. | ||
• | Designation of coordinators and the creation of operational risk departments. |
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• | Training and interchange of experiences. | ||
• | Design and putting into effect qualitative and quantitative operational risk tools. | ||
• | Conciliation of data bases of losses — accounting. | ||
• | Developments for the automatic capturing of events through accounting and management systems. | ||
• | Drive in mitigation plans and communication of best practices: interchange between the Group’s institutions on mitigation plans, specific measures taken and projects underway. | ||
• | Development of the corporate operational risk tool in a web-based environment. | ||
• | Collaboration with the purchase area regarding its function in managing banking insurance related to operational risk (BBB policies, damage, civil responsibility and life). | ||
• | Fostering contingency and business continuity plans. |
- Data bases of losses classified by errors and operational types are received every month. Our data base shows a total of 1,604,136 events, without exclusions for reasons of amount, and with both the accounting impact (including positive effects) as well as the non-accounting impact. | |||
– | Self-assessment questionnaires filled in by almost all our units are received and analyzed. | ||
– | Operational risk indicators are available, regularly defined and updated by the main management units. | ||
– | There are a sufficient number of coordinators in the business and back-up areas. | ||
– | The main events are identified and analyzed, and mitigation measures taken which, in significant cases, are disseminated to the Group’s other units as a Best Practices guide. | ||
– | Processes to reconcile data bases with accounting. |
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Average of | Average of | Average of | ||||||||||||||||||||||||||
all areas | business areas | support areas | ||||||||||||||||||||||||||
Impact | Impact | Impact | Product | |||||||||||||||||||||||||
Event category classification | OR | Coverage | OR | Coverage | OR | Coverage | Total | |||||||||||||||||||||
1- Internal fraud | 3.18 | 2.25 | 3.00 | 2.28 | 3.20 | 2.22 | 7 | |||||||||||||||||||||
II- External fraud | 3.07 | 2.13 | 3.19 | 2.17 | 3.02 | 2.10 | 7 | |||||||||||||||||||||
III- Employment practices, health and security at work | 2.74 | 2.01 | 2.89 | 1.96 | 2.72 | 2.05 | 6 | |||||||||||||||||||||
IV- Practices with clients, products and business | 3.08 | 1.89 | 3.15 | 1.91 | 3.09 | 1.93 | 6 | |||||||||||||||||||||
V- Damage to physical assets | 3.14 | 2.38 | 2.93 | 2.30 | 3.30 | 2.43 | 7 | |||||||||||||||||||||
VI- Interruption in business and systems failure | 3.35 | 2.11 | 3.24 | 2.09 | 3.47 | 2.22 | 7 | |||||||||||||||||||||
VII- Execution, delivery and management of processes | 3.08 | 1.96 | 3.18 | 2.04 | 3.06 | 2.01 | 6 | |||||||||||||||||||||
Total average | 3.09 | 2.10 | 3.08 | 2.11 | 3.12 | 2.14 | 7 |
Impact on OR: 1- without impact; 2- small impact; 3- medium impact; 4- high impact; 5-maximum impact
Hedging of OR: 1- maximum; 2- high; 3- medium; 4- small; 5- zero.
• | Retail Banking (Spain) |
– | Rolling out of a new IT platform (Partenón), which provides automatic information on OR. | ||
– | Verification of the effectiveness of the measures adopted in 2005 as preventative policies against fraud (anti-skimming devices, etc). | ||
– | Extending the early warning system to 24 hours and installing neural networks for the prevention of fraud in stores. |
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– | Continuation of the process of migration to CHIP-EMV (hardware) technology in ATMs and point-of-sale terminals in stores. | ||
– | As a member of the Interbanking Cooperation Committee, the Bank is part of the VISO project to fight fraud. |
• | Mutual and pension fund management institutions (Spain): |
– | Existence of an Internal Control Procedures Manual since 1999 (mutual fund activity has been regulated by the National Securities Market Commission since 1997) and creation of a structure which is very ��sensitive to risk”. |
– | Improvements in the control procedure for prices, operations, reconciliation of operations and adapting to the new Regulations for Collective Investment Institutions. |
• | Santander Consumer Finance (Spain and Portugal): |
– | Frequent cooperation with institutions in investigating fraud. |
– | Procedures put into place to search for fraud when drawing up risk operations, as well as warnings in automatic scoring systems, which have led to not going ahead with operations when fraud is detected. |
– | Tracking of events in the registration of guarantees (reservation of ownership right), changing of rules, design and verification of the operational procedure for physically inspecting vehicles financed by credit stock. |
• | Abbey (United Kingdom): |
– | Mitigation measures adopted, both to combat fraud as well as operational and improvements in controls. Of note are the following: |
– | Branch network: improving the operational controls in branches was a priority in 2006. Steps were taken to ensure that the controls had been carried out at the end of each day. New warnings and systems to track the results of the control metrics were introduced. |
– | Fraud: increased security in products and distribution channels, through greater use of data, analysis and models, as well as improvements to the already existing technical models, resulted in a fall in the losses from fraud. |
– | Establishment of contingency strategies: sophisticated business continuity plans are being developed in order to respond to terrorism, flooding and pandemic disasters. |
– | Technological platform for Treasury and Financial Markets: critical systems strengthened by improvements to the payment and settlement systems. Agreements were also signed with external suppliers to establish contingency plans. |
• | Santander Totta (Portugal): |
– | The centralization of complaints about cards, the speed of the system and the use of certain tools diminished the impact of losses from cards and made them very moderate. |
– | Updating formal support of development of the Operational Risk management model, both organically with the creation of the Operational Risk Cabinet as well as procedurally. |
– | Inclusion in the Operational Risk management model of a large number of activity and control indicators. |
– | The Operations Committee develops a management and operational control structure for the branch network, putting the focus on mitigating Operational Risk. |
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• | Santander (Chile): |
– | The Business Continuity Committee and the Regulations Committee were created in 2006, with the following objectives: strengthen management, ensure the implementation of the Business Continuity Plans and ensure correct application of internal and external rules. |
– | Launch of two competitions for initiatives. A total of 359 were received for the Operational Risk sphere, which are being analyzed. The Operational Risk Coordinators are also preparing a best practices manual. |
– | A skills and communication programme, part of the Operational Risk Master Plan, was put into effect in order to disseminate the importance, contents and scope of the Operational Risk Project, involving and motivating employees so as to ensure their active participation in the Operational Risk management and administration model. |
• | Santander Banespa (Brazil): |
– | Constant training of coordinators and consolidation of the Risk Prevention and Control Week (held yearly), bringing closer concepts, situation, effects and consequences arising from Operational Risk to the daily activity of the Group’s professionals. |
– | The Anti-fraud Group continues to coordinate actions to prevent and reduce Operational Risk losses, especially in debit cards and electronic banking transactions. |
– | Creation of a Multidiscipline Group to monitor the events that are leading to fines on the Bank from official institutions: identifying causes and obtaining commitments to implement corrective plans. |
• | Cooperating in showing the Operational Risk control and management model to insurance and reinsurance companies. |
• | Preparing maps with categories of risk and policies contracted, in order to optimize Operational Risk hedging via insurance policies. |
• | Close cooperation between local Operational Risk coordinators and local insurance coordinators to strengthen Operational Risk mitigation. |
• | Two levels of information: one corporate and the other individualized for each country/unit. |
• | It enables, via maintaining a data base of events and mitigating measures, the best practices to be disseminated among countries/Grupo Santander units. |
• | Grupo Santander’s management model for operational risk |
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• | Human resources and perimeter of action | ||
• | Analysis of the data base of errors and events | ||
• | Cost of Operational Risk and Reconciliation of Accounts | ||
• | Self-assessment questionnaires | ||
• | Indicators | ||
• | Mitigating measures/active management | ||
• | Contingency plans | ||
• | Regulatory framework: BIS II | ||
• | Insurance | ||
• | Other activities of the Operational Risk Department | ||
• | Next steps |
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– | Each product or service is sold by those who know how to sell it. | ||
– | The client knows what he or she is investing in and the risk of each product or service and this can be accredited with documents. |
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– | Each product or service is sold where it can be, not only for legal or tax reasons (i.e. it fits into the legal and tax regime of each country), but also on the basis of the financial culture. |
– | When a product or service is approved the maximum limit is set for the amount that can be sold in each country. |
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• | Trading in financial instruments, which involves interest rate, foreign exchange rate, equity price and volatility risks. |
• | Engaging in retail banking activities, which involves interest rate risk since a change in interest rates affects interest income, interest expense and customer behavior. This interest rate risk arises from the gap (maturity and repricing) between assets and liabilities. |
• | Investing in assets (including subsidiaries) whose returns or accounts are denominated in currencies other than the Euro, which involves foreign exchange rate risk between the Euro and such other currencies. |
• | Investing in subsidiaries and other companies, which subject us to equity price risk. |
• | Liquidity risk is embedded in all activities, trading and non-trading. |
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• | Its main functions are to: |
• | Constrain all market risk within the business management and defined risk strategy. |
• | Quantify and inform all business units of the risk levels and profiles defined by the Board of Directors in order to avoid non-desired levels or types of risk. |
• | Maintain risks levels over all businesses in accordance with market and business strategy changes, and which are consistent with the Board of Directors’ positions. |
• | Allow business units reasonable but sufficient risk-taking flexibility in order to meet established business objectives. |
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• | Providing risk reducing levels suggestions and controls. These actions are the result of breaking “alarm” limits. |
• | Taking executive actions that require risk takers to close out positions to reduce risk levels. |
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• | A one-day time horizon may not fully capture the market risk of positions that cannot be liquidated or hedged within one day. |
• | At present, we compute DCaR at the close of business and trading positions may change substantially during the course of the trading day. |
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1 | All figures in this report are measured in euros. The exchange rate used is the one quoted in the market on the reference date. | |
2 | Banesto is not included in the Group’s VaRD for trading activity. | |
3 | In addition, as of January 1, 2006, the matrix of correlations between the VaR of the Group’s various units was changed, with an average impact on consolidated VaR of an increase of€6 million. |
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Minimum | Average | Maximum | Last | |||||||||||||||
TOTAL TRADING | Total VaRD | 26.4 | 35.7 | 75.0 | 36.8 | |||||||||||||
Diversification effect | (4.4 | ) | (10.0 | ) | (16.3 | ) | (10.2 | ) | ||||||||||
Fixed-Income VaRD | 22.2 | 32.5 | 69.8 | 29.7 | ||||||||||||||
Equity VaRD | 2.0 | 4.0 | 6.0 | 5.0 | ||||||||||||||
FX VarD | 4.4 | 9.2 | 17.3 | 14.7 | ||||||||||||||
LATIN AMERICA | VaRD Total | 20.9 | 27.7 | 64.2 | 30.9 | |||||||||||||
Diversification effect | (2.3 | ) | (8.3 | ) | (13.9 | ) | (13.1 | ) | ||||||||||
Fixed-Income VaRD | 19.7 | 26.0 | 63.8 | 26.2 | ||||||||||||||
Equity VaRD | 1.0 | 2.3 | 4.1 | 4.1 | ||||||||||||||
FX VarD | 2.0 | 7.6 | 14.0 | 13.7 | ||||||||||||||
USA | VaRD Total | 0.8 | 2.3 | 4.9 | 1.2 | |||||||||||||
Diversification effect | 0.1 | (0.6 | ) | (1.7 | ) | (0.3 | ) | |||||||||||
Fixed-Income VaRD | 0.7 | 1.7 | 4.1 | 1.0 | ||||||||||||||
Equity VaRD | 0.0 | 0.1 | 0.4 | 0.1 | ||||||||||||||
FX VarD | 0.3 | 1.0 | 2.6 | 0.4 | ||||||||||||||
EUROPE | VaRD Total | 7.1 | 12.1 | 23.7 | 9.9 | |||||||||||||
Diversification effect | (1.7 | ) | (4.0 | ) | (7.5 | ) | (3.7 | ) | ||||||||||
Fixed-Income VaRD | 4.9 | 10.0 | 21.5 | 6.4 | ||||||||||||||
Equity VaRD | 1.5 | 3.1 | 4.9 | 2.9 | ||||||||||||||
FX VarD | 0.9 | 2.9 | 10.6 | 4.3 |
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Minimum | Average | Maximum | Last | |||||||||||||
TOTAL | 26.4 | 35.7 | 75.0 | 36.8 | ||||||||||||
EUROPE | 7.1 | 12.1 | 23.7 | 9.9 | ||||||||||||
USA | 0.8 | 2.3 | 4.9 | 1.2 | ||||||||||||
LATIN AMERICA | 20.9 | 27.7 | 64.2 | 30.9 |
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€ million | Fixed income | Equities | Exchange rate | Volatility | Total | |||||||||||||||
Total Trading | (114.8 | ) | (20.2 | ) | 23.6 | 18.6 | (89.5 | ) | ||||||||||||
Europe | (13.4 | ) | (4.0 | ) | 2.8 | 6.5 | (8.1 | ) | ||||||||||||
Latin America | (97.1 | ) | (15.8 | ) | 22.7 | 12.1 | (75.0 | ) | ||||||||||||
USA (New York) | (4.3 | ) | (0.5 | ) | (1.9 | ) | 0.0 | (6.5 | ) |
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More than 5 | ||||||||||||||||||||||||
€ million | Not sensitive | Up to 1 year | 1-3 years | 3-5 years | years | TOTAL | ||||||||||||||||||
Money and securities market | — | 17,552 | 176 | 504 | 429 | 18,632 | ||||||||||||||||||
Loans | — | 106,258 | 19,939 | 3,175 | 2,120 | 131,492 | ||||||||||||||||||
Permanent equity stakes | 44,557 | — | — | — | — | 44,557 | ||||||||||||||||||
Other assets | 6,324 | 27,201 | — | — | — | 33,525 | ||||||||||||||||||
Total assets | 50,881 | 150,981 | 20,115 | 3,680 | 2,549 | 228,206 | ||||||||||||||||||
Money market | — | 3,963 | — | 50 | — | 4,013 | ||||||||||||||||||
Customer deposits | — | 20,194 | 9,040 | 12,199 | 12,605 | 54,038 | ||||||||||||||||||
Debt Issues and securitisations | — | 87,099 | 2,389 | 1,102 | 210 | 90,800 | ||||||||||||||||||
Shareholders’ equity and other liabilities | 47,895 | 28,005 | 1,119 | 893 | 1,950 | 79,862 | ||||||||||||||||||
Total liabilities | 47,895 | 139,261 | 12,547 | 14,244 | 14,766 | 228,713 | ||||||||||||||||||
Balance sheet Gap | 2,986 | 11,721 | 7,568 | (10,565 | ) | (12,217 | ) | (507 | ) | |||||||||||||||
Off-balance sheet structural Gap | — | 5,256 | 378 | (242 | ) | (546 | ) | 4,846 | ||||||||||||||||
Total structural Gap | 2,986 | 16,977 | 7,945 | (10,807 | ) | (12,763 | ) | 4,339 | ||||||||||||||||
Accumulated Gap | — | 16,977 | 24,922 | 14,115 | 1,353 | — | ||||||||||||||||||
4. | Includes the total balance sheet except for the trading portfolios | |
5. | Includes Abbey |
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Gaps in Local Currency | TOTAL | 0-6 months | 6-12 months | 1-3 years | > 3 years | Not sensitive | ||||||||||||||||||
Assets | 106,542 | 54,970 | 9,146 | 14,590 | 16,905 | 10,916 | ||||||||||||||||||
Liabilities | 102,744 | 66,750 | 3,054 | 11,508 | 5,642 | 15,791 | ||||||||||||||||||
Off-balance Sheet | -4,276 | 23,098 | -26,911 | -6,376 | 5,916 | -2 | ||||||||||||||||||
Gap | -478 | 11,856 | -20,840 | -2,683 | 16,329 | -5,139 |
Gaps in Foreign Currency | TOTAL | 0-6 months | 6-12 months | 1-3 years | > 3 years | Not sensitive | ||||||||||||||||||
Assets | 22,132 | 12,252 | 1,387 | 2,673 | 4,443 | 1,377 | ||||||||||||||||||
Liabilities | 25,930 | 15,330 | 1,653 | 3,079 | 3,557 | 2,311 | ||||||||||||||||||
Off-balance Sheet | 4,276 | 3,928 | -34 | -154 | 538 | -3 | ||||||||||||||||||
Gap | 478 | 850 | -300 | -560 | 1,425 | -937 |
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6 | Intesa San Paolo from January 2007 onwards |
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Dec-06 | ||||||||||||||||||||
Dec-05 | Low | Average | High | Period End | ||||||||||||||||
TOTAL | 353.3 | 285.5 | 404.4 | 605.5 | 353.3 | |||||||||||||||
Trading | 27.0 | 26.4 | 35.7 | 75.0 | 36.8 | |||||||||||||||
Non-Trading | 352.2 | 283.7 | 402.4 | 603.7 | 351.3 | |||||||||||||||
Diversification Effect | (25.9 | ) | (24.7 | ) | (33.7 | ) | (73.2 | ) | (34.9 | ) |
Dec-06 | ||||||||||||||||||||
Dec-05 | Low | Average | High | Period End | ||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||
Trading | 25.3 | 22.2 | 32.5 | 69.8 | 29.7 | |||||||||||||||
Non-Trading | 94.4 | 73.5 | 105.4 | 123.8 | 114.4 | |||||||||||||||
Diversification Effect | (22.0 | ) | (18.9 | ) | (27.6 | ) | (51.5 | ) | (25.9 | ) | ||||||||||
TOTAL | 97.7 | 76.8 | 110.3 | 142.1 | 118.2 |
Dec-06 | ||||||||||||||||||||
Dec-05 | Low | Average | High | Period End | ||||||||||||||||
Exchange Rate Risk | ||||||||||||||||||||
Trading | 6.2 | 4.4 | 9.2 | 17.3 | 14.7 | |||||||||||||||
Non-Trading | 85.9 | 67.8 | 96.9 | 125.4 | 90.3 | |||||||||||||||
Diversification Effect | (6.0 | ) | (4.3 | ) | (8.8 | ) | (16.1 | ) | (13.5 | ) | ||||||||||
TOTAL | 86.1 | 68.0 | 97.3 | 126.6 | 91.5 |
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Dec-06 | ||||||||||||||||||||
Dec-05 | Low | Average | High | Period End | ||||||||||||||||
Equity Price Risk | ||||||||||||||||||||
Trading | 2.9 | 2.0 | 4.0 | 6.0 | 5.0 | |||||||||||||||
Non-Trading | 286.7 | 231.4 | 302.8 | 400.3 | 277.6 | |||||||||||||||
Diversification Effect | (2.9 | ) | (2.0 | ) | (4.0 | ) | (5.9 | ) | (5.0 | ) | ||||||||||
TOTAL | 286.7 | 231.4 | 302.8 | 400.4 | 277.7 |
Dec-06 | ||||||||||||||||||||
Dec-05 | Low | Average | High | Period End | ||||||||||||||||
Trading | ||||||||||||||||||||
Interest Rate | 25.3 | 22.2 | 32.5 | 69.8 | 29.7 | |||||||||||||||
Exchange Rate | 6.2 | 4.4 | 9.2 | 17.3 | 14.7 | |||||||||||||||
Equity | 2.9 | 2.0 | 4.0 | 6.0 | 5.0 | |||||||||||||||
TOTAL | 27.0 | 26.4 | 35.7 | 75.0 | 36.8 | |||||||||||||||
Balance | ||||||||||||||||||||
Interest Rate | 94.4 | 73.5 | 105.4 | 123.8 | 114.4 | |||||||||||||||
Non-Trading FX | ||||||||||||||||||||
Exchange Rate | 85.9 | 67.8 | 96.9 | 125.4 | 90.3 | |||||||||||||||
Non-Trading Eq | ||||||||||||||||||||
Equity | 286.7 | 231.4 | 302.8 | 400.3 | 277.6 | |||||||||||||||
TOTAL | 353.3 | 285.5 | 404.4 | 605.5 | 353.3 | |||||||||||||||
Interest Rate | 97.7 | 76.8 | 110.3 | 142.1 | 118.2 | |||||||||||||||
Exchange Rate | 86.1 | 68.0 | 97.3 | 126.6 | 91.5 | |||||||||||||||
Equity | 286.7 | 231.4 | 302.8 | 400.4 | 277.7 |
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– | Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets; | |
– | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and | |
– | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements. |
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of
Banco Santander Central Hispano, S.A.:
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/s/ Deloitte, S.L.
Madrid – Spain
June 22, 2007, except for Notes 58 and 59 as to which the date is June 29, 2007
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2004 | 2005 | 2006 | ||||||||||
(in millions of euros) | ||||||||||||
Audit Fees (1) | 15.9 | 15.8 | 15.6 | |||||||||
Audit Related Fees (2) | 4.1 | 9.3 | 10.5 | |||||||||
Tax Fees (3) | 1.3 | 1.4 | 1.9 | |||||||||
All Other Fees (4) | 6.1 | 3.7 | 6.9 | |||||||||
Total | 27.4 | 30.2 | 35.0 |
(1) | Fees for annual company audits of the Group. | |
(2) | Fees for professional services rendered to comply with Sarbanes-Oxley Act and for other reports required by legal regulations emanating from different national supervisory organizations in the countries in which the Group operates. Includes€1 million paid in 2006 in connection with the work relating to the Group’s adaptation to the new capital regulations (Basel II). | |
(3) | Fees for professional services rendered for tax compliance, tax advice, and tax planning in the countries in which the Group operates. | |
(4) | Fees for other services provided. These fees were mainly for financial advisory, due diligence services and systems reviews. |
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(d) Maximum number (or | ||||||||||||||||
(a) Total number of | (b) Average | (c) Total number of shares (or | approximate dollar value) of shares | |||||||||||||
shares (or units) | price paid per | units) purchased as part of publicly | (or units) that may yet be purchased | |||||||||||||
2006 | purchased | share (or unit) | announced plans or programs | under the plans or programs | ||||||||||||
January | 103,611,996 | €11.35 | ¯ | ¯ | ||||||||||||
February | 32,860,543 | €11.86 | ¯ | ¯ | ||||||||||||
March | 26,570,378 | €12.07 | ¯ | ¯ | ||||||||||||
April | 41,771,763 | €12.01 | ¯ | ¯ | ||||||||||||
May | 80,235,108 | €11.80 | ¯ | ¯ | ||||||||||||
June | 30,526,935 | €10.89 | ¯ | ¯ | ||||||||||||
July | 26,861,984 | €11.55 | ¯ | ¯ | ||||||||||||
August | 21,292,702 | €11.77 | ¯ | ¯ | ||||||||||||
September | 19,210,849 | €12.38 | ¯ | ¯ | ||||||||||||
October | 34,307,162 | €13.31 | ¯ | ¯ | ||||||||||||
November | 29,693,739 | €13.54 | ¯ | ¯ | ||||||||||||
December | 30,723,158 | €13.01 | ¯ | ¯ | ||||||||||||
Total | 477,666,317 |
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Page | ||||
Report of Deloitte, S.L. | F-1 | |||
Consolidated Balance Sheets as of December 31, 2006, 2005 and 2004 | F-2 | |||
Consolidated Statements of Income for the Years Ended December 31, 2006, 2005 and 2004 | F-3 | |||
Consolidated Statements Of Changes In Shareholders’ Equity for the Years Ended December 31, 2006, 2005 and 2004 | F-4 | |||
Consolidated Cash Flow Statement for the Years Ended December 31, 2006, 2005 and 2004 | F-5 | |||
Notes to the Consolidated Financial Statements | F-7 |
Exhibit | ||
Number | Description | |
1.1 | By-laws (Estatutos) of Banco Santander Central Hispano, S.A., as amended. | |
1.2 | By-laws (Estatutos) of Banco Santander Central Hispano, S.A., as amended (English translation). | |
4.1* | Consortiom and Shareholders’ Agreement, dated May 28, 2007, among The Royal Bank of Scotland Group plc, Banco Santander Central Hispano, S.A., Fortis N.V., Fortis SA/NV and RFS Holdings B.V. | |
8.1 | List of Subsidiaries (incorporated by reference as Exhibits I, II and III of our Financial Pages filed with this Form 20-F). | |
12.1 | Section 302 Certification by the Chief Executive Officer | |
12.2 | Section 302 Certification by the Chief Financial Officer | |
12.3 | Section 302 Certification by the Chief Accounting Officer | |
13.1 | Section 906 Certification by the Chief Executive Officer, the Chief Financial Officer and the Chief Accounting Officer | |
15.1 | Consent of Deloitte, S.L. |
* | Pursuant to a request for confidential treatment filed with the Securities and Exchange Commission, the confidential portions of this exhibit have been omitted and filed separately with the Securities and Exchange Commission. |
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BANCO SANTANDER CENTRAL HISPANO, S.A. | ||||
By: | /s/ José Antonio Álvarez | |||
Name: | José Antonio Álvarez | |||
Title: | Chief Financial Officer | |||
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Page | ||||
Report of Deloitte, S.L. | F-1 | |||
Consolidated Balance Sheets as of December 31, 2006, 2005, and 2004 | F-2 | |||
Consolidated Statements of Income for the Years Ended December 31, 2006, 2005 and 2004 | F-3 | |||
Notes to the Consolidated Financial Statements | F-7 |
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of
Banco Santander Central Hispano, S.A.:
We have audited the accompanying consolidated balance sheets of Banco Santander Central Hispano, S.A. (the “Bank”) and Companies composing, together with the Bank, the Santander Group (the “Group”), as of December 31, 2006, 2005 and 2004, and the related consolidated income statements, statements of changes in equity (recognized income and expense), and cash flow statements for the years then ended. These consolidated financial statements are the responsibility of the controlling Bank’s directors. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Banco Santander Central Hispano, S.A. and Companies composing the Santander Group as of December 31, 2006, 2005 and 2004, and the results of their operations and their cash flows for the years then ended in conformity with the International Financial Reporting Standards, as adopted by the European Union (“EU-IFRS”) required to be applied under Bank of Spain’s Circular 4/2004 (Note 1.b).
The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 vary in certain significant respects from accounting principles generally accepted in the United States of America (U.S. GAAP). Information relating to the nature and effect of such differences is presented in Notes 58 and 59 to the consolidated financial statements.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the effectiveness of the Group’s internal control over financial reporting as of December 31, 2006, based on the criteria established inInternal Control–Integrated Frameworkissued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated June 22, 2007, except for Notes 58 and 59 as to which the date is June 29, 2007 expressed an unqualified opinion on management’s assessment of the effectiveness of the Group’s internal control over financial reporting and an unqualified opinion on the effectiveness of the Group’s internal control over financial reporting.
/s/ Deloitte, S.L.
Madrid-Spain
June 22, 2007, except for Notes 58 and 59 as to which the date is June 29, 2007
F-1
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CONSOLIDATED BALANCE SHEETS AT DECEMBER 31, 2006, 2005 AND 2004 (NOTES 1 to 4)
(Thousands of Euros)
Note | 2006 | 2005 | 2004 | |||||||||||||
ASSETS | ||||||||||||||||
CASH AND BALANCES WITH CENTRAL BANKS | 13,835,149 | 16,086,458 | 8,801,412 | |||||||||||||
FINANCIAL ASSETS HELD FOR TRADING | 170,422,722 | 154,207,859 | 111,755,936 | |||||||||||||
Loans and advances to credit institutions | 6 | 14,627,738 | 10,278,858 | 12,878,171 | ||||||||||||
Loans and advances to customers | 10 | 30,582,982 | 26,479,996 | 17,507,585 | ||||||||||||
Debt instruments | 7 | 76,736,992 | 81,741,944 | 55,869,629 | ||||||||||||
Other equity instruments | 8 | 13,490,719 | 8,077,867 | 4,419,338 | ||||||||||||
Trading derivatives | 9 | 34,984,291 | 27,629,194 | 21,081,213 | ||||||||||||
OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS | 15,370,682 | 48,862,267 | 45,759,095 | |||||||||||||
Loans and advances to credit institutions | 6 | 185,485 | 2,428,663 | 6,524,070 | ||||||||||||
Loans and advances to customers | 10 | 7,972,544 | 6,431,197 | 5,291,551 | ||||||||||||
Debt instruments | 7 | 4,500,220 | 9,699,237 | 19,632,958 | ||||||||||||
Other equity instruments | 8 | 2,712,433 | 30,303,170 | 14,310,516 | ||||||||||||
AVAILABLE-FOR-SALE FINANCIAL ASSETS | 38,698,299 | 73,944,939 | 44,521,323 | |||||||||||||
Debt instruments | 7 | 32,727,454 | 68,054,021 | 36,702,487 | ||||||||||||
Other equity instruments | 8 | 5,970,845 | 5,890,918 | 7,818,836 | ||||||||||||
LOANS AND RECEIVABLES: | 544,048,823 | 459,783,749 | 394,431,900 | |||||||||||||
Loans and advances to credit institutions | 6 | 45,361,315 | 47,065,501 | 38,977,533 | ||||||||||||
Money market operations through counterparties | 200,055 | — | 3,907,905 | |||||||||||||
Loans and advances to customers | 10 | 484,790,338 | 402,917,602 | 346,550,928 | ||||||||||||
Debt instruments | 7 | 621,770 | 171,203 | — | ||||||||||||
Other financial assets | 24 | 13,075,345 | 9,629,443 | 4,995,534 | ||||||||||||
HELD-TO-MATURITY INVESTMENTS | — | — | — | |||||||||||||
CHANGES IN THE FAIR VALUE OF HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | (259,254 | ) | — | — | ||||||||||||
HEDGING DERIVATIVES | 11 | 2,987,964 | 4,126,104 | 3,824,936 | ||||||||||||
NON-CURRENT ASSETS HELD FOR SALE | 327,384 | 336,324 | 2,097,164 | |||||||||||||
Equity instruments | 12 | — | — | 1,814,418 | ||||||||||||
Tangible assets | 12 | 327,384 | 336,324 | 282,746 | ||||||||||||
INVESTMENTS: | 5,006,109 | 3,031,482 | 3,747,564 | |||||||||||||
Associates | 13 | 5,006,109 | 3,031,482 | 3,747,564 | ||||||||||||
INSURANCE CONTRACTS LINKED TO PENSIONS | 14 | 2,604,535 | 2,676,365 | 2,753,816 | ||||||||||||
REINSURANCE ASSETS | 15 | 261,873 | 2,387,701 | 3,045,804 | ||||||||||||
TANGIBLE ASSETS: | 10,110,996 | 9,993,207 | 10,585,193 | |||||||||||||
Property, plant and equipment for own use | 16 | 5,284,177 | 5,204,931 | 4,925,231 | ||||||||||||
Investment property | 16 | 374,547 | 667,449 | 2,115,823 | ||||||||||||
Other assets leased out under an operating lease | 16 | 4,452,272 | 4,120,827 | 3,544,139 | ||||||||||||
Memorandum item: Acquired under a finance lease | 200,838 | 83,459 | 41,117 | |||||||||||||
INTANGIBLE ASSETS: | 16,956,841 | 16,229,271 | 15,503,274 | |||||||||||||
Goodwill | 17 | 14,512,735 | 14,018,245 | 15,090,541 | ||||||||||||
Other intangible assets | 17 | 2,444,106 | 2,211,026 | 412,733 | ||||||||||||
TAX ASSETS: | 9,856,053 | 10,127,059 | 9,723,970 | |||||||||||||
Current | 699,746 | 1,217,646 | 1,381,722 | |||||||||||||
Deferred | 27 | 9,156,307 | 8,909,413 | 8,342,248 | ||||||||||||
PREPAYMENTS AND ACCRUED INCOME | 18 | 1,581,843 | 2,969,219 | 3,029,728 | ||||||||||||
OTHER ASSETS: | 2,062,696 | 4,344,910 | 4,905,185 | |||||||||||||
Inventories | 143,354 | 2,457,842 | 1,582,675 | |||||||||||||
Other | 19 | 1,919,342 | 1,887,068 | 3,322,510 | ||||||||||||
TOTAL ASSETS | 833,872,715 | 809,106,914 | 664,486,300 | |||||||||||||
MEMORANDUM ACCOUNTS: | ||||||||||||||||
CONTINGENT LIABILITIES: | 58,769,309 | 48,453,575 | 31,813,882 | |||||||||||||
Financial guarantees | 35 | 58,205,412 | 48,199,671 | 31,511,567 | ||||||||||||
Assets earmarked for third-party obligations | 35 | 4 | 24 | 24 | ||||||||||||
Other contingent liabilities | 35 | 563,893 | 253,880 | 302,291 | ||||||||||||
CONTINGENT COMMITMENTS: | 103,249,430 | 96,263,262 | 74,860,532 | |||||||||||||
Drawable by third parties | 35 | 91,690,396 | 77,678,333 | 63,110,699 | ||||||||||||
Other commitments | 35 | 11,559,034 | 18,584,929 | 11,749,833 |
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LIABILITIES AND EQUITY | Note | 2006 | 2005 | 2004 | ||||||||||||
FINANCIAL LIABILITIES HELD FOR TRADING | 123,996,445 | 112,466,429 | 91,526,435 | |||||||||||||
Deposits from credit institutions | 20 | 39,690,713 | 31,962,919 | 25,224,743 | ||||||||||||
Customer deposits | 21 | 16,572,444 | 14,038,543 | 20,541,225 | ||||||||||||
Marketable debt securities | 22 | 17,522,108 | 19,821,087 | 11,791,579 | ||||||||||||
Trading derivatives | 9 | 38,738,118 | 29,228,080 | 25,243,768 | ||||||||||||
Short positions | 9 | 11,473,062 | 17,415,800 | 8,725,120 | ||||||||||||
OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS | 12,411,328 | 11,809,874 | 11,243,800 | |||||||||||||
Debt certificates (including bonds) | 22 | 12,138,249 | 11,809,874 | 11,243,800 | ||||||||||||
Customer deposits | 21 | 273,079 | — | — | ||||||||||||
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH EQUITY | — | — | — | |||||||||||||
FINANCIAL LIABILITIES AT AMORTISED COST | 605,302,821 | 565,651,643 | 447,831,156 | |||||||||||||
Deposits from central banks | 20 | 16,529,557 | 22,431,194 | 8,067,860 | ||||||||||||
Deposits from credit institutions | 20 | 56,815,667 | 94,228,294 | 50,457,736 | ||||||||||||
Money market operations through counterparties | — | — | 2,499,000 | |||||||||||||
Customer deposits | 21 | 314,377,078 | 291,726,737 | 262,670,391 | ||||||||||||
Marketable debt securities | 22 | 174,409,033 | 117,209,385 | 90,803,224 | ||||||||||||
Subordinated liabilities | 23 | 30,422,821 | 28,763,456 | 27,470,172 | ||||||||||||
Other financial liabilities | 24 | 12,748,665 | 11,292,577 | 5,862,773 | ||||||||||||
CHANGES IN THE FAIR VALUE OF HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | — | — | — | |||||||||||||
HEDGING DERIVATIVES | 11 | 3,493,849 | 2,310,729 | 2,895,321 | ||||||||||||
LIABILITIES ASSOCIATED WITH NON- CURRENT ASSETS HELD FOR SALE: | — | 7,967 | — | |||||||||||||
Other liabilities | — | 7,967 | — | |||||||||||||
LIABILITIES UNDER INSURANCE CONTRACTS | 15 | 10,704,258 | 44,672,300 | 42,344,776 | ||||||||||||
PROVISIONS: | 19,226,513 | 19,822,990 | 18,023,924 | |||||||||||||
Provisions for pensions and similar obligations | 25 | 14,014,305 | 14,172,961 | 13,441,357 | ||||||||||||
Provisions for contingent liabilities and commitments | 25 | 598,735 | 487,048 | 360,594 | ||||||||||||
Other provisions | 25 | 4,613,473 | 5,162,981 | 4,221,973 | ||||||||||||
TAX LIABILITIES: | 4,539,051 | 3,867,795 | 3,496,212 | |||||||||||||
Current | 761,529 | 1,100,567 | 625,340 | |||||||||||||
Deferred | 27 | 3,777,522 | 2,767,228 | 2,870,872 | ||||||||||||
ACCRUED EXPENSES AND DEFERRED INCOME | 18 | 2,999,080 | 3,048,733 | 4,382,034 | ||||||||||||
OTHER LIABILITIES: | 3,458,740 | 1,512,908 | 4,118,162 | |||||||||||||
Other | 19 | 3,458,740 | 1,512,908 | 4,118,162 | ||||||||||||
EQUITY HAVING THE SUBSTANCE OF A FINANCIAL LIABILITY | 26 | 668,328 | 1,308,847 | 2,124,222 | ||||||||||||
TOTAL LIABILITIES | 786,800,413 | 766,480,215 | 627,986,042 | |||||||||||||
MINORITY INTERESTS | 28 | 2,220,743 | 2,848,223 | 2,085,316 | ||||||||||||
VALUATION ADJUSTMENTS: | 2,870,757 | 3,077,096 | 1,777,564 | |||||||||||||
Available-for-sale financial assets | 29 | 2,283,323 | 1,941,690 | 1,936,818 | ||||||||||||
Cash flow hedges | 29 | 49,252 | 70,406 | (1,787 | ) | |||||||||||
Hedges of net investments in foreign operations | 29 | (173,503 | ) | (384,606 | ) | 638,227 | ||||||||||
Exchange differences | 29 | 711,685 | 1,449,606 | (795,694 | ) | |||||||||||
OWN FUNDS: | 30 | 41,980,802 | 36,701,380 | 32,637,378 | ||||||||||||
Issued capital | 31 | 3,127,148 | 3,127,148 | 3,127,148 | ||||||||||||
Share premium | 32 | 20,370,128 | 20,370,128 | 20,370,128 | ||||||||||||
Reserves | 12,289,480 | 8,703,789 | 6,877,827 | |||||||||||||
Accumulated reserves | 33 | 11,491,670 | 8,100,140 | 6,256,632 | ||||||||||||
Reserves of entities accounted for using the equity method: | 797,810 | 603,649 | 621,195 | |||||||||||||
Associates | 33 | 797,810 | 603,649 | 621,195 | ||||||||||||
Other equity instruments: | 34 | 62,118 | 77,478 | 93,567 | ||||||||||||
Equity component of compound financial instruments | 12,118 | 34,977 | — | |||||||||||||
Other | 50,000 | 42,501 | 93,567 | |||||||||||||
Treasury shares | 34 | (126,801 | ) | (53,068 | ) | (126,500 | ) | |||||||||
Profit attributed to the Group | 30 | 7,595,947 | 6,220,104 | 3,605,870 | ||||||||||||
Dividends and remuneration | 30 | (1,337,218 | ) | (1,744,199 | ) | (1,310,662 | ) | |||||||||
TOTAL EQUITY | 47,072,302 | 42,626,699 | 36,500,258 | |||||||||||||
TOTAL LIABILITIES AND EQUITY | 833,872,715 | 809,106,914 | 664,486,300 | |||||||||||||
F-2
Table of Contents
CONSOLIDATED INCOME STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2006, 2005 AND 2004 (NOTES 1 to 4)
(Thousands of Euros)
(Debit) Credit | ||||||||||||||||
Note | 2006 | 2005 (*) | 2004 (*) | |||||||||||||
INTEREST AND SIMILAR INCOME | 38 | 36,840,896 | 33,098,866 | 17,444,350 | ||||||||||||
INTEREST EXPENSE AND SIMILAR CHARGES | 39 | (24,757,133 | ) | (22,764,963 | ) | (10,271,884 | ) | |||||||||
Return on equity having the substance of a financial liability | (85,229 | ) | (118,389 | ) | (151,952 | ) | ||||||||||
Other | (24,671,904 | ) | (22,646,574 | ) | (10,119,932 | ) | ||||||||||
INCOME FROM EQUITY INSTRUMENTS | 40 | 404,038 | 335,576 | 389,038 | ||||||||||||
NET INTEREST INCOME | 12,487,801 | 10,669,479 | 7,561,504 | |||||||||||||
SHARE OF RESULTS OF ENTITIES ACCOUNTED FOR USING THE EQUITY METHOD | 41 | 426,921 | 619,157 | 449,036 | ||||||||||||
Associates | 426,921 | 619,157 | 449,036 | |||||||||||||
FEE AND COMMISSION INCOME | 42 | 8,535,566 | 7,422,094 | 5,652,617 | ||||||||||||
FEE AND COMMISSION EXPENSE | 43 | (1,312,302 | ) | (1,165,782 | ) | (925,385 | ) | |||||||||
INSURANCE ACTIVITY INCOME | 44 | 297,851 | 226,677 | 161,374 | ||||||||||||
Insurance and reinsurance premium income | 4,809,298 | 2,378,812 | 2,275,655 | |||||||||||||
Reinsurance premiums paid | (137,187 | ) | (98,610 | ) | (65,389 | ) | ||||||||||
Claims paid and other insurance-related expenses | (2,167,600 | ) | (1,517,986 | ) | (1,003,769 | ) | ||||||||||
Reinsurance income | 105,472 | 88,452 | 14,413 | |||||||||||||
Net provisions for insurance contract liabilities | (3,030,109 | ) | (1,287,309 | ) | (1,497,692 | ) | ||||||||||
Finance income | 936,940 | 794,395 | 494,947 | |||||||||||||
Finance expense | (218,963 | ) | (131,077 | ) | (56,791 | ) | ||||||||||
GAINS/LOSSES ON FINANCIAL ASSETS AND LIABILITIES (net): | 45 | 2,082,841 | 1,485,012 | 738,596 | ||||||||||||
Financial assets held for trading | 1,820,009 | 999,769 | 481,238 | |||||||||||||
Other financial instruments at fair value through profit or loss | (104,672 | ) | 23,538 | 8,380 | ||||||||||||
Available-for-sale financial assets | 340,748 | 533,769 | 364,154 | |||||||||||||
Loans and receivables | 78,519 | 70,645 | 48,092 | |||||||||||||
Other | (51,763 | ) | (142,709 | ) | (163,268 | ) | ||||||||||
EXCHANGE DIFFERENCES (net) | 46 | 96,696 | 76,498 | 361,199 | ||||||||||||
GROSS INCOME | 22,615,374 | 19,333,135 | 13,998,941 | |||||||||||||
Sales and income from the provision of non-financial services | 47 | 734,602 | 565,525 | 298,767 | ||||||||||||
COST OF SALES | 47 | (615,689 | ) | (409,347 | ) | (180,459 | ) | |||||||||
OTHER OPERATING INCOME | 48 | 324,265 | 256,229 | 201,145 | ||||||||||||
PERSONNEL EXPENSES | 49 | (6,045,447 | ) | (5,675,740 | ) | (4,296,171 | ) | |||||||||
OTHER GENERAL ADMINISTRATIVE EXPENSES | 50 | (4,049,970 | ) | (3,797,376 | ) | (2,494,314 | ) | |||||||||
DEPRECIATION AND AMORTIZATION: | (1,150,770 | ) | (1,017,335 | ) | (834,112 | ) | ||||||||||
Tangible assets | 16 | (630,817 | ) | (619,851 | ) | (487,904 | ) | |||||||||
Intangible assets | 17 | (519,953 | ) | (397,484 | ) | (346,208 | ) | |||||||||
OTHER OPERATING EXPENSES | 51 | (443,617 | ) | (345,769 | ) | (263,119 | ) | |||||||||
NET OPERATING INCOME | 11,368,748 | 8,909,322 | 6,430,678 | |||||||||||||
IMPAIRMENT LOSSES (net) | (2,550,459 | ) | (1,801,964 | ) | (1,847,294 | ) | ||||||||||
Available-for-sale financial assets | 8 | 2,799 | 110,977 | (19,419 | ) | |||||||||||
Loans and receivables | 10 | (2,483,628 | ) | (1,747,908 | ) | (1,595,070 | ) | |||||||||
Non-current assets held for sale | 12 | (48,796 | ) | (10,536 | ) | (90,822 | ) | |||||||||
Investments | 13 | (380 | ) | — | — | |||||||||||
Tangible assets | 16 | (6,428 | ) | (15,112 | ) | 491 | ||||||||||
Goodwill | 17 | (12,811 | ) | — | (138,200 | ) | ||||||||||
Other intangible assets | 17 | — | (130,977 | ) | — | |||||||||||
Other assets | (1,215 | ) | (8,408 | ) | (4,274 | ) | ||||||||||
PROVISIONS (net) | 25 | (1,078,768 | ) | (1,815,034 | ) | (1,107,146 | ) | |||||||||
FINANCE INCOME FROM NON-FINANCIAL ACTIVITIES | 7,386 | 2,846 | 20,161 | |||||||||||||
FINANCE EXPENSES OF NON-FINANCIAL ACTIVITIES | (5,553 | ) | (10,709 | ) | (23,736 | ) | ||||||||||
OTHER GAINS: | 52 | 1,677,004 | 2,764,744 | 1,468,940 | ||||||||||||
Gains on disposal of tangible assets | 147,893 | 151,055 | 245,188 | |||||||||||||
Gains on disposal of investments | 273,656 | 1,306,357 | 35,729 | |||||||||||||
Other | 1,255,455 | 1,307,332 | 1,188,023 | |||||||||||||
OTHER LOSSES: | 52 | (268,341 | ) | (249,530 | ) | (554,330 | ) | |||||||||
Losses on disposal of tangible assets | (58,869 | ) | (70,425 | ) | (75,440 | ) | ||||||||||
Losses on disposal of investments | (1,695 | ) | (7,422 | ) | (4,838 | ) | ||||||||||
Other | (207,777 | ) | (171,683 | ) | (474,052 | ) | ||||||||||
PROFIT BEFORE TAX | 9,150,017 | 7,799,675 | 4,387,273 | |||||||||||||
INCOME TAX | 27 | (2,293,638 | ) | (1,274,738 | ) | (525,824 | ) | |||||||||
PROFIT FROM CONTINUING OPERATIONS | 6,856,379 | 6,524,937 | 3,861,449 | |||||||||||||
PROFIT FROM DISCONTINUED OPERATIONS (net) | 37 | 1,389,374 | 224,833 | 134,785 | ||||||||||||
CONSOLIDATED PROFIT FOR THE YEAR | 8,245,753 | 6,749,770 | 3,996,234 | |||||||||||||
PROFIT ATTRIBUTED TO MINORITY INTERESTS | 28 | (649,806 | ) | (529,666 | ) | (390,364 | ) | |||||||||
PROFIT ATTRIBUTED TO THE GROUP | 7,595,947 | 6,220,104 | 3,605,870 | |||||||||||||
EARNINGS PER SHARE | ||||||||||||||||
From continuing operations and discontinued operations | ||||||||||||||||
Basic earnings per share (euros) | 1.2157 | 0.9967 | 0.7284 | |||||||||||||
Diluted earnings per share (euros) | 1.2091 | 0.9930 | 0.7271 | |||||||||||||
From continuing operations | ||||||||||||||||
Basic earnings per share (euros) | 1.0271 | 0.9735 | 0.7122 | |||||||||||||
Diluted earnings per share (euros) | 1.0216 | 0.9698 | 0.7110 |
F-3
Table of Contents
2006 | 2005 | 2004 | ||||||||||
NET INCOME RECOGNISED DIRECTLY IN EQUITY: | (206,339 | ) | 1,299,532 | (265,796 | ) | |||||||
Available-for-sale financial assets- | 341,633 | 4,872 | (111,871 | ) | ||||||||
Revaluation gains/losses | 1,663,713 | 911,814 | 925,454 | |||||||||
Amounts transferred to income statement | (1,177,308 | ) | (883,474 | ) | (821,555 | ) | ||||||
Income tax | (144,772 | ) | (23,468 | ) | (215,770 | ) | ||||||
Cash flow hedges- | (21,154 | ) | 72,193 | 3,542 | ||||||||
Revaluation gains/losses | 9,087 | 83,216 | 19,315 | |||||||||
Income tax | (30,241 | ) | (11,023 | ) | (15,773 | ) | ||||||
Hedges of net investments in foreign operations- | 211,103 | (1,022,833 | ) | 638,227 | ||||||||
Revaluation gains/losses | 211,103 | (1,022,833 | ) | 638,227 | ||||||||
Exchange differences- | (737,921 | ) | 2,245,300 | (795,694 | ) | |||||||
Translation gains/losses | (741,085 | ) | 2,411,831 | (799,080 | ) | |||||||
Amounts transferred to income statement | 3,164 | (166,531 | ) | 3,386 | ||||||||
CONSOLIDATED PROFIT FOR THE YEAR: | 8,245,753 | 6,749,770 | 3,996,234 | |||||||||
Consolidated profit for the year | 8,245,753 | 6,749,770 | 3,996,234 | |||||||||
8,039,414 | 8,049,302 | 3,730,438 | ||||||||||
TOTAL INCOME AND EXPENSE FOR THE YEAR: | ||||||||||||
Parent | 7,389,608 | 7,519,636 | 3,340,074 | |||||||||
Minority interests (*) | 649,806 | 529,666 | 390,364 | |||||||||
TOTAL (*) | 8,039,414 | 8,049,302 | 3,730,438 | |||||||||
(*) | In addition, in 2006 the net loss recognized directly in equity relating to minority interests amounted to€121 million. |
of changes in equity (recognized income and expense) for the year ended December 31, 2006.
F-4
Table of Contents
CONSOLIDATED CASH FLOW STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2006, 2005 AND 2004 (NOTES 1 to 4)
(Thousands of Euros)
2006 | 2005 (*) | 2004 (*) | ||||||||||
1. CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||
Consolidated profit for the year | 8,245,753 | 6,749,770 | 3,996,234 | |||||||||
Adjustments to profit- | 8,307,782 | 5,499,799 | 5,258,376 | |||||||||
Depreciation of tangible assets | 630,817 | 622,359 | 490,555 | |||||||||
Amortization of intangible assets | 519,953 | 398,852 | 348,119 | |||||||||
Impairment losses (net) | 2,550,459 | 1,806,983 | 1,843,415 | |||||||||
Net provisions for insurance contract liabilities | 3,030,109 | 1,473,435 | 1,497,692 | |||||||||
Provisions (net) | 1,078,768 | 1,808,478 | 1,141,571 | |||||||||
Gains/losses on disposal of tangible assets | (89,024 | ) | (83,272 | ) | (179,866 | ) | ||||||
Gains/losses on disposal of investments | (271,961 | ) | (1,299,046 | ) | (30,891 | ) | ||||||
Share of results of entities accounted for using the equity method | (426,921 | ) | (619,166 | ) | (449,011 | ) | ||||||
Other non-monetary items(and monetary items related to discontinuous operations) | (1,008,056 | ) | — | — | ||||||||
Taxes | 2,293,638 | 1,391,176 | 596,792 | |||||||||
Of which paid | 949,050 | 1,036,379 | 584,706 | |||||||||
16,553,535 | 12,249,569 | 9,254,610 | ||||||||||
Net increase/decrease in operating assets: | (72,431,132 | ) | (142,040,506 | ) | (13,882,427 | ) | ||||||
Financial assets held for trading- | (17,673,307 | ) | (42,451,923 | ) | (6,976,058 | ) | ||||||
Loans and advances to credit institutions | (4,346,626 | ) | 2,599,313 | — | ||||||||
Loans and advances to customers | (4,120,763 | ) | (8,972,411 | ) | — | |||||||
Debt instruments | 5,004,952 | (25,872,315 | ) | (4,005,998 | ) | |||||||
Other equity instruments | (5,412,852 | ) | (3,658,529 | ) | (214,066 | ) | ||||||
Trading derivatives | (8,798,018 | ) | (6,547,981 | ) | (2,755,994 | ) | ||||||
Other financial assets at fair value through profit or loss- | (1,385,171 | ) | (3,103,172 | ) | (3,252,226 | ) | ||||||
Loans and advances to credit institutions | (662,145 | ) | 4,095,407 | (110,835 | ) | |||||||
Loans and advances to customers | (1,541,615 | ) | (1,139,646 | ) | (1,220,842 | ) | ||||||
Debt instruments | (1,487,469 | ) | 9,933,721 | (1,213,512 | ) | |||||||
Other equity instruments | 2,306,058 | (15,992,654 | ) | (707,037 | ) | |||||||
Available-for-sale financial assets- | 35,824,691 | (28,550,639 | ) | 26,133,878 | ||||||||
Debt instruments | 35,324,013 | (31,229,897 | ) | 23,809,729 | ||||||||
Other equity instruments | 500,678 | 2,679,258 | 2,324,149 | |||||||||
Loans and receivables- | (85,625,544 | ) | (67,550,354 | ) | (31,434,661 | ) | ||||||
Loans and advances to credit institutions | 1,063,273 | (8,087,968 | ) | 3,662,338 | ||||||||
Money market operations through counterparties | (200,055 | ) | 3,907,905 | (3,621,813 | ) | |||||||
Loans and advances to customers | (82,609,964 | ) | (58,565,179 | ) | (31,417,021 | ) | ||||||
Debt instruments | (461,403 | ) | (171,203 | ) | — | |||||||
Other financial assets | (3,417,395 | ) | (4,633,909 | ) | (58,165 | ) | ||||||
Other operating assets | (3,571,801 | ) | (384,418 | ) | 1,646,640 | |||||||
Net increase/decrease in operating liabilities: | 3,740,822 | 95,494,609 | (6,782,368 | ) | ||||||||
Financial liabilities held for trading- | 15,327,711 | 14,736,090 | (788,302 | ) | ||||||||
Deposits from credit institutions | 7,727,794 | 6,738,176 | — | |||||||||
Customer deposits | 2,533,901 | (6,502,682 | ) | — | ||||||||
Marketable debt securities | 1,498,716 | 1,825,604 | (2,905,781 | ) | ||||||||
Trading derivatives | 9,510,038 | 3,984,312 | 4,410,392 | |||||||||
Short positions | (5,942,738 | ) | 8,690,680 | (2,292,913 | ) | |||||||
Other financial liabilities at fair value through profit or loss- | (5,381,405 | ) | 555,299 | 619,124 | ||||||||
Deposits from credit institutions | 822,550 | — | — | |||||||||
Customer deposits | 282,806 | — | — | |||||||||
Marketable debt securities | (6,486,761 | ) | 555,299 | 619,124 | ||||||||
Financial liabilities at amortized cost- | (4,453,117 | ) | 82,195,979 | (685,483 | ) | |||||||
Deposits from central banks | (5,901,637 | ) | 14,363,334 | (2,313,955 | ) | |||||||
Deposits from credit institutions | (36,075,478 | ) | 43,770,558 | (14,132,950 | ) | |||||||
Money market operations through counterparties | — | (2,499,000 | ) | 504,479 | ||||||||
Customer deposits | 22,733,508 | 29,056,346 | 12,776,724 | |||||||||
Marketable debt securities | 13,337,020 | (7,925,063 | ) | 1,676,830 | ||||||||
Other financial liabilities | 1,453,470 | 5,429,804 | 803,389 | |||||||||
Other operating liabilities | (1,752,367 | ) | (1,992,759 | ) | (5,927,707 | ) | ||||||
Total net cash flows from operating activities (1) | (52,136,775 | ) | (34,296,328 | ) | (11,410,185 | ) | ||||||
Of which: | ||||||||||||
Interest and similar income collected (Note 38) | 36,412,213 | 31,326,727 | 16,783,989 | |||||||||
Interest expense and similar charges paid (Note 39) | (23,915,708 | ) | (18,819,373 | ) | (9,704,114 | ) |
F-5
Table of Contents
CONSOLIDATED CASH FLOW STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2006, 2005 AND 2004 (NOTES 1 to 4)
2006 | 2005 (*) | 2004 (*) | ||||||||||
2. CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
Investments- | (7,551,157 | ) | (2,478,073 | ) | (3,650,892 | ) | ||||||
Subsidiaries, jointly controlled entities and associates | (2,693,849 | ) | (18,470 | ) | (232,758 | ) | ||||||
Tangible assets | (3,383,041 | ) | (1,990,867 | ) | (2,666,205 | ) | ||||||
Intangible assets | (1,474,267 | ) | (454,107 | ) | (416,541 | ) | ||||||
Other financial assets | — | — | (335,388 | ) | ||||||||
Other assets | — | (14,629 | ) | — | ||||||||
Divestments- | 10,050,304 | 6,616,203 | 2,677,725 | |||||||||
Subsidiaries, jointly controlled entities and associates | 7,477,594 | 1,750,237 | 85,785 | |||||||||
Tangible assets | 1,957,376 | 2,482,232 | 2,276,973 | |||||||||
Other financial assets | — | 1,814,418 | — | |||||||||
Other assets | 615,334 | 569,316 | 314,967 | |||||||||
Total net cash flows from investing activities (2) | 2,499,147 | 4,138,130 | (973,167 | ) | ||||||||
3. CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||
Acquisition of own equity instruments (**) | (73,733 | ) | — | (87,378 | ) | |||||||
Disposal of own equity instruments (**) | — | 73,432 | — | |||||||||
Issuance/Redemption of other equity instruments | (15,360 | ) | (16,089 | ) | 35,000 | |||||||
Redemption of equity having the substance of a financial liability | (472,925 | ) | (944,968 | ) | (2,624,283 | ) | ||||||
Issuance of subordinated liabilities | 5,896,301 | 2,507,872 | 5,283,872 | |||||||||
Redemption of subordinated liabilities | (2,739,743 | ) | (2,410,288 | ) | (465,323 | ) | ||||||
Issuance of other long-term liabilities | 78,851,479 | 52,669,694 | 19,477,021 | |||||||||
Redemption of other long-term liabilities | (30,510,388 | ) | (14,269,479 | ) | (5,893,627 | ) | ||||||
Increase/Decrease in minority interests | (124,026 | ) | 233,241 | (266,195 | ) | |||||||
Dividends paid | (2,779,334 | ) | (2,208,518 | ) | (1,496,840 | ) | ||||||
Other items related to financing activities | (767,419 | ) | 1,500,947 | (1,345,097 | ) | |||||||
Total net cash flows from financing activities (3) | 47,264,852 | 37,135,844 | 12,617,150 | |||||||||
4. EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (4) | 121,467 | 307,400 | (348,269 | ) | ||||||||
5. NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1+2+3+4) | (2,251,309 | ) | 7,285,046 | (114,471 | ) | |||||||
Cash and cash equivalents at beginning of year | 16,086,458 | 8,801,412 | 8,915,883 | |||||||||
Cash and cash equivalents at end of year | 13,835,149 | 16,086,458 | 8,801,412 | |||||||||
F-6
Table of Contents
1. | Introduction, basis of presentation of the consolidated financial statements and other information |
a) | Introduction |
b) | Basis of presentation of the consolidated financial statements |
– | IFRS 7 Financial Instruments: Disclosure | ||
– | Amendments to IAS 1 on the disclosure of the objectives, policies and processes for managing capital |
F-7
Table of Contents
– | Interpretation IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies | ||
– | Interpretation IFRIC 8 Scope of IFRS 2 | ||
– | Interpretation IFRIC 9 Reassessment of Embedded Derivatives |
– | IFRS 8 Operating Segments | ||
– | IFRIC 10 Interim Financial Reporting and Impairment | ||
– | IFRIC 11 Group and Treasury Share Transactions |
– | Significant changes in accounting policies, measurement bases and presentation of the financial statements; | ||
– | The inclusion in the consolidated financial statements of two new financial statements, namely the statement of recognized income and expense and the cash flow statement; and | ||
– | A significant increase in the volume of disclosures in the notes to the consolidated financial statements. |
c) | Use of estimates |
– | The impairment losses on certain assets (Notes 6, 7, 8, 10, 12, 13, 16 and 17); | ||
– | The assumptions used in the actuarial calculation of the post-employment benefit liabilities and commitments and other obligations (Note 25); | ||
– | The useful life of the tangible and intangible assets (Notes 16 and 17); | ||
– | The measurement of goodwill arising on consolidation (Note 17); and |
– | The fair value of certain unquoted assets (Notes 8, 9 and 11). |
F-8
Table of Contents
d) | Other matters |
F-9
Table of Contents
e) | Information relating to 2005 and 2004 |
f) | Equity |
g) | Environmental impact |
h) | Events after the balance sheet date |
i) | Comparative information |
F-10
Table of Contents
– | Translation of foreign currency to the functional currency (currency of the main economic environment in which the Group operates); and | ||
– | Translation to euros of the balances held in the functional currencies of entities whose functional currency is not the euro. |
– | Non-monetary items measured at historical cost are translated to the functional currency at the exchange rate at the date of acquisition. | ||
– | Non-monetary items measured at fair value are translated at the exchange rate at the date when the fair value was determined. |
F-11
Table of Contents
– | Income and expenses are translated at the average exchange rates for the period for all the transactions performed during the year. | ||
– | The balances arising from non-hedging forward foreign currency/foreign currency and foreign currency/euro purchase and sale transactions are translated at the closing rates prevailing in the forward foreign currency market for the related maturity. |
– | Assets and liabilities, at the closing rates. | ||
– | Income and expenses, at the average exchange rates for the year. | ||
– | Equity items, at the historical exchange rates. |
F-12
Table of Contents
Millions of Euros | ||||||||||||||||
Effect on | Effect on | |||||||||||||||
Consolidated Equity | Consolidated Profit | |||||||||||||||
Currency | 2006 | 2005 | 2006 | 2005 | ||||||||||||
US dollar | 0.1 | (10.1 | ) | 30.2 | 18.7 | |||||||||||
Chilean peso | (9.8 | ) | (1.0 | ) | 2.2 | — | ||||||||||
Pound sterling | (49.0 | ) | (32.6 | ) | 23.2 | 13.4 | ||||||||||
Mexican peso | (20.5 | ) | (19.5 | ) | 5.2 | 1.9 | ||||||||||
Brazilian real | (25.4 | ) | (27.5 | ) | — | — |
Millions of Euros | ||||||||||||||||
Effect on | Effect on | |||||||||||||||
Consolidated Equity | Consolidated Profit | |||||||||||||||
Currency | 2006 | 2005 | 2006 | 2005 | ||||||||||||
US dollar | (0.1 | ) | 10.3 | (30.8 | ) | (19.1 | ) | |||||||||
Chilean peso | 10.9 | 1.0 | (6.0 | ) | — | |||||||||||
Pound sterling | 33.1 | 30.3 | (16.7 | ) | (0.5 | ) | ||||||||||
Mexican peso | 24.7 | 18.3 | (7.3 | ) | (1.3 | ) | ||||||||||
Brazilian real | 26.0 | 28.0 | — | — |
F-13
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F-14
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– | The Group measures the cost of the business combination, defined as the fair value of the assets given, the liabilities incurred and the equity instruments issued, if any, by the entity. | ||
– | The fair values of the assets, liabilities and contingent liabilities of the acquiree, including any intangible assets which might have not been recognized by the acquiree, are estimated and recognized in the consolidated balance sheet. | ||
– | Any negative difference between the net fair value of the assets, liabilities and contingent liabilities of the acquiree and the business combination cost is recognized as discussed in Note 2-m; any positive difference is recognized in “Other gains” in the consolidated income statement. |
– | Investments in subsidiaries, jointly controlled entities and associates (Note 13). | ||
– | Rights and obligations under employee benefit plans (Note 25). | ||
– | Rights and obligations under insurance contracts (Note 15). | ||
– | Contracts and obligations relating to employee remuneration based on own equity instruments (Note 34). |
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– | Financial assets held for trading (at fair value through profit or loss): this category includes the financial assets acquired for the purpose of generating a profit in the near term from fluctuations in their prices and financial derivatives that are not designated as hedging instruments. | ||
– | Other financial assets at fair value through profit or loss: this category includes hybrid financial assets not held for trading that are measured entirely at fair value and financial assets not held for trading that are managed jointly with “Liabilities under insurance contracts” measured at fair value or with derivative financial instruments whose purpose and effect is to significantly reduce exposure to variations in fair value, or that are managed jointly with financial liabilities and derivatives for the purpose of significantly reducing overall exposure to interest rate risk. |
– | Available-for-sale financial assets: this category includes debt instruments not classified as “Held-to-maturity investments” or as “Financial assets at fair value through profit or loss,” and equity instruments issued by entities other than subsidiaries, associates and jointly controlled entities, provided that such instruments have not been classified as “Financial assets held for trading” or as “Other financial assets at fair value through profit or loss.” | ||
– | Loans and receivables: this category includes financing granted to third parties, based on their nature, irrespective of the type of borrower and the form of financing, including finance lease transactions in which the consolidated entities act as lessors. |
– | Held-to-maturity investments: this category includes debt instruments with fixed maturity and with fixed or determinable payments. |
– | Cash and balances with central banks: cash balances and balances receivable on demand relating to deposits with the Bank of Spain and other central banks. | ||
– | Loans and advances to credit institutions: credit of any nature in the name of credit institutions. | ||
– | Money market operations through counterparties: amount of the money market operations conducted through central counterparties. | ||
– | Loans and advances to customers: all credit granted by the Group, other than that represented by marketable securities, money market operations through central counterparties, finance lease receivables and loans and advances to credit institutions. | ||
– | Debt instruments: bonds and other securities that represent a debt for their issuer, that generate an interest return, and that are in the form of certificates or book entries. |
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– | Other equity instruments: financial instruments issued by other entities, such as shares and non-voting equity units, which have the nature of equity instruments for the issuer, unless they are investments in subsidiaries, jointly controlled entities or associates. Investment fund units and shares are included in this item. | ||
– | Trading derivatives: includes the fair value in favor of the Group of derivatives which do not form part of hedge accounting. | ||
– | Other financial assets: other debit balances in favor of the Group in respect of transactions which do not have the nature of credit (such as cheques drawn on credit institutions, the amounts receivable from clearing houses and settlement agencies for transactions on the stock exchange and organized markets, bonds given in cash, capital calls, and fees and commissions receivable for financial guarantees). | ||
– | Changes in the fair value of hedged items in portfolio hedges of interest rate risk: this item is the balancing entry for the amounts credited to the consolidated income statement in respect of the measurement of the portfolios of financial instruments which are efficiently hedged against interest rate risk through fair value hedging derivatives. | ||
– | Hedging derivatives: includes the fair value in favor of the Group of derivatives designated as hedging instruments in hedge accounting. | ||
– | Investments: includes the investments in the share capital of associates. |
– | Financial liabilities held for trading (at fair value through profit or loss): this category includes the financial liabilities issued for the purpose of generating a profit in the near term from fluctuations in their prices, financial derivatives not considered to qualify for hedge accounting and financial liabilities arising from the outright sale of financial assets purchased under resale agreements or borrowed (“short positions”). | ||
– | Other financial liabilities at fair value through profit or loss: this category includes all hybrid financial liabilities not held for trading that have to be measured entirely at fair value, including life insurance linked to investment funds that does not expose the issuer of the contract to a significant insurance risk, when the financial assets to which they are linked are also measured at fair value through profit or loss. | ||
– | Financial liabilities at fair value through equity: financial liabilities associated with available-for-sale financial assets arising as a result of transfers of assets in which the consolidated entities as transferors neither transfer nor retain substantially all the risks and rewards of ownership of the assets. | ||
– | Financial liabilities at amortized cost: financial liabilities, irrespective of their instrumentation and maturity, not included in any of the above-mentioned categories which arise from the ordinary deposit-taking activities carried on by financial institutions. |
v. | Classification of financial liabilities for presentation purposes |
– | Deposits from credit institutions: deposits of any nature, including credit and money market operations received in the name of credit institutions. | ||
– | Money market operations through counterparties: amount of the money market operations conducted through central counterparties. |
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– | Customer deposits: includes all repayable balances received in cash by the Group, other than those represented by marketable securities, money market operations through central counterparties, subordinated liabilities and deposits from central banks and credit institutions. | ||
– | Marketable debt securities: includes the amount of bonds and other debt represented by marketable securities, other than subordinated liabilities. This item includes the component considered to be a financial liability of issued securities that are compound financial instruments. | ||
– | Trading derivatives: includes the fair value of the Group’s liability in respect of derivatives which do not form part of hedge accounting. | ||
– | Deposits from central banks: deposits of any nature received from the Bank of Spain or other central banks. | ||
– | Short positions: includes the amount of financial liabilities arising from the outright sale of financial assets purchased under reverse repurchase agreements or borrowed. | ||
– | Subordinated liabilities: amount of financing received which, for the purposes of payment priority, ranks behind ordinary debt. | ||
– | Other financial liabilities: includes the amount of payment obligations having the nature of financial liabilities not included in other items. | ||
– | Changes in the fair value of hedged items in portfolio hedges of interest rate risk: this item is the balancing entry for the amounts charged to the consolidated income statement in respect of the measurement of the portfolios of financial instruments which are efficiently hedged against interest rate risk through fair value hedging derivatives. | ||
– | Hedging derivatives: includes the fair value of the Group’s liability in respect of derivatives designated as hedging instruments in hedge accounting. | ||
– | Equity having the substance of a financial liability: amount of the financial instruments issued by the consolidated entities that, although equity for legal purposes, do not meet the requirements for classification as equity. |
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Millions of Euros | ||||||||||||||||||||||||
2006 | 2005 | |||||||||||||||||||||||
Published | Published | |||||||||||||||||||||||
Price | Price | |||||||||||||||||||||||
Quotations | Quotations | |||||||||||||||||||||||
in Active | Internal | in Active | Internal | |||||||||||||||||||||
Markets | Models (*) | Total | Markets | Models (*) | Total | |||||||||||||||||||
Financial assets held for trading | 84,009 | 86,414 | 170,423 | 85,558 | 68,650 | 154,208 | ||||||||||||||||||
Other financial assets at fair value through profit or loss | 4,543 | 10,828 | 15,371 | 39,020 | 9,842 | 48,862 | ||||||||||||||||||
Available-for-sale financial assets | 32,111 | 6,587 | 38,698 | 72,909 | 1,036 | 73,945 | ||||||||||||||||||
Hedging derivatives (assets) | — | 2,988 | 2,988 | — | 4,126 | 4,126 | ||||||||||||||||||
Financial liabilities held for trading | 30,657 | 93,339 | 123,996 | 35,156 | 77,310 | 112,466 | ||||||||||||||||||
Other financial liabilities at fair value through profit or loss | 259 | 12,152 | 12,411 | — | 11,810 | 11,810 | ||||||||||||||||||
Hedging derivatives (liabilities) | — | 3,494 | 3,494 | — | 2,311 | 2,311 | ||||||||||||||||||
Liabilities under insurance contracts | 5,760 | 4,944 | 10,704 | 13,076 | 31,596 | 44,672 |
(*) | In substantially all cases, observable market data are used. |
F-19
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– | In the valuation of financial instruments permitting static hedging (basically, forwards and swaps) the “present value” method is used. | ||
– | In the valuation of financial instruments requiring dynamic hedging, the Black-Scholes model is mainly used. | ||
– | In the valuation of financial instruments exposed to interest rate risk, the Heath-Jarrow-Morton model is employed to analyze the correlation by currency. | ||
– | Credit risk is measured using dynamic models similar to those used in the measurement of interest rate risk. |
– | “Available-for-sale financial assets” are recognized temporarily in equity under “Valuation adjustments – Available-for-sale financial assets,” unless they relate to exchange differences, in which case they are recognized in “Valuation adjustments – Exchange differences” (exchange differences arising on monetary financial assets are recognized in “Exchange differences” in the consolidated income statement). | ||
– | Items charged or credited to “Valuation adjustments – Available-for-sale financial assets” and “Valuation adjustments – Exchange differences” remain in the Group’s consolidated equity until the related assets are derecognized, whereupon they are charged to the consolidated income statement. | ||
– | Unrealized gains on available-for-sale financial assets classified as “Non-current assets held for sale” because they form part of a disposal group or a discontinued operation are recognized in “Valuation adjustments — Non-current assets held for sale.” | ||
– | “Financial liabilities at fair value through equity” are recognized in “Valuation adjustments – Financial liabilities at fair value through equity.” |
F-20
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1. | The derivative hedges one of the following three types of exposure: |
a. | Changes in the fair value of assets and liabilities due to fluctuations, among others, in the interest rate and/or exchange rate to which the position or balance to be hedged is subject (“fair value hedge”); | ||
b. | Changes in the estimated cash flows arising from financial assets and liabilities, commitments and highly probable forecast transactions (“cash flow hedge”); and | ||
c. | The net investment in a foreign operation (“hedge of a net investment in a foreign operation”). |
2. | It is effective in offsetting exposure inherent in the hedged item or position throughout the expected term of the hedge, which means that: |
a. | At the date of arrangement the hedge is expected, under normal conditions, to be highly effective (“prospective effectiveness”). | ||
b. | There is sufficient evidence that the hedge was actually effective during the whole life of the hedged item or position (“retrospective effectiveness”). |
3. | There must be adequate documentation evidencing the specific designation of the financial derivative to hedge certain balances or transactions and how this effective hedge was expected to be achieved and measured, provided that this is consistent with the Group’s management of own risks. |
a. | In fair value hedges, the gains or losses arising on both the hedging instruments and the hedged items attributable to the type of risk being hedged are recognized directly in the consolidated income statement. | ||
In fair value hedges of interest rate risk on a portfolio of financial instruments, the gains or losses that arise on measuring the hedging instruments are recognized directly in the consolidated income statement, whereas the gains or losses due to changes in the fair value of the hedged amount (attributable to the hedged risk) are recognized in the consolidated income statement with a balancing entry under “Changes in the fair value of hedged items in portfolio hedges of interest rate risk” on the asset or liability side of the balance sheet, as appropriate. | |||
b. | In cash flow hedges, the effective portion of the change in value of the hedging instrument is recognized temporarily in equity under “Valuation adjustments — Cash flow hedges” until the forecast transactions occur, when it is recognized in the consolidated income statement, unless, if the forecast transactions result in the recognition of non-financial assets or liabilities, it is included in the cost of the non-financial asset or liability. The ineffective portion of the change in value of hedging derivatives is recognized directly in the consolidated income statement. | ||
c. | In hedges of a net investment in a foreign operation, the gains and losses attributable to the portion of the hedging instruments qualifying as an effective hedge are recognized temporarily in equity under “Valuation adjustments — Hedges of net investments in foreign operations” until the gains or losses on the hedged item are recognized in the consolidated income statement. | ||
d. | The ineffective portion of the gains and losses on the hedging instruments of cash flow hedges and hedges of a net investment in a foreign operation are recognized directly under “Gains/losses on financial assets and liabilities” in the consolidated income statement. |
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1. | If the Group transfers substantially all the risks and rewards to third parties –unconditional sale of financial assets, sale of financial assets under an agreement to repurchase them at their fair value at the date of repurchase, sale of financial assets with a purchased call option or written put option that is deeply out of the money, securitization of assets in which the transferor does not retain a subordinated debt or grant any credit enhancement to the new holders, and other similar cases– the transferred financial asset is derecognized and any rights or obligations retained or created in the transfer are recognized simultaneously. | ||
2. | If the Group retains substantially all the risks and rewards associated with the transferred financial asset –sale of financial assets under an agreement to repurchase them at a fixed price or at the sale price plus interest, a securities lending agreement in which the borrower undertakes to return the same or similar assets, and other similar cases–, the transferred financial asset is not derecognized and continues to be measured by the same criteria as those used before the transfer. However, the following items are recognized: |
a. | An associated financial liability, for an amount equal to the consideration received; this liability is subsequently measured at amortized cost. | ||
b. | The income from the transferred financial asset not derecognized and any expense incurred on the new financial liability. |
3. | If the Group neither transfers nor retains substantially all the risks and rewards associated with the transferred financial asset –sale of financial assets with a purchased call option or written put option that is not deeply in or out of the money, securitization of assets in which the transferor retains a subordinated debt or other type of credit enhancement for a portion of the transferred asset, and other similar cases– the following distinction is made: |
a. | If the transferor does not retain control of the transferred financial asset, the asset is derecognized and any rights or obligations retained or created in the transfer are recognized. | ||
b. | If the transferor retains control of the transferred financial asset, it continues to recognize it for an amount equal to its exposure to changes in value and recognizes a financial liability associated with the transferred financial asset. The net carrying amount of the transferred asset and the associated liability is the amortized cost of the rights and obligations retained, if the transferred asset is measured at amortized cost, or the fair value of the rights and obligations retained, if the transferred to third parties asset is measured at fair value. |
F-22
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– | In the case of debt instruments (loans and debt securities), give rise to an adverse impact on the future cash flows that were estimated at the transaction date. | ||
– | In the case of equity instruments, mean that their carrying amount may not be fully recovered. |
In estimating the future cash flows of debt instruments the following factors are taken into account: |
– | All the amounts that are expected to be obtained over the remaining life of the instrument; including, where appropriate, those which may result from the collateral provided for the instrument (less the costs for obtaining and subsequently selling the collateral). The impairment loss takes into account the likelihood of collecting accrued interest receivable; | ||
– | The various types of risk to which each instrument is subject; and | ||
– | The circumstances in which collections will foreseeably be made. |
– | When there is evidence of a deterioration of the obligor’s ability to pay, either because it is in arrears or for other reasons; and/or |
– | When country risk materializes: country risk is considered to be the risk associated with debtors resident in a given country due to circumstances other than normal commercial risk. |
F-23
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1. | Specific credit risk allowance |
a. | Specific allowance |
i. | Assets classified as doubtful due to counterparty arrears: |
– | Less than 6 months: between 4.5% and 5.3%. | ||
– | More than 6 months and less than 12 months: between 27.4% and 27.8% | ||
– | More than 12 months and less than 18 months: between 60.5% and 65.1% | ||
– | More than 18 months and less than 24 months: between 93.3% and 95.8% | ||
– | More than 24 months: 100% |
– | Less than 3 years, provided that the outstanding loan does not exceed 80% of the appraisal value of the home: 2% | ||
– | More than 3 years and less than 4 years: 25% | ||
– | More than 4 years and less than 5 years: 50% | ||
– | More than 5 years and less than 6 years: 75% | ||
– | More than 6 years: 100% |
– | Less than 6 months: between 3.8% and 4.5% | ||
– | More than 6 months and less than 12 months: between 23.3% and 23.6% | ||
– | More than 12 months and less than 18 months: between 47.2% and 55.3% | ||
– | More than 18 months and less than 24 months: between 79.3% and 81.4% | ||
– | More than 24 months: 100% |
ii. | Assets classified as doubtful for reasons other than counterparty arrears: |
F-24
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b. | General allowance for inherent losses: |
– | Exposure at default (EAD) is the amount of risk exposure at the date of default by the counterparty. | ||
– | Probability of default (PD) is the probability of the counterparty failing to meet its principal and/or interest payment obligations. The probability of default is associated with the rating/scoring of each counterparty/transaction. |
– | Loss given default (LGD) is the loss arising in the event of default. It depends mainly on the guarantees associated with the transaction. |
1. | Low default portfolios | ||
In certain portfolios (sovereign risk, credit institutions or large corporations) the number of defaults observed is very small or zero. In these cases, the Group opted to use the data contained in the credit derivative spreads to estimate the excepted loss discounted by the market and break it down into PD and LGD. | |||
2. | Top-down units | ||
In the cases in which the Group does not have sufficient data to construct a sufficiently robust credit risk measurement model, the inherent loss on the loan portfolios is estimated based on a top-down approximation in which the historically observed average write-off of the loan portfolios is used as the best estimate of the inherent loss. As the credit models are developed and bottom-up measurements are obtained, the top-down measurements used for these units are gradually replaced. |
F-25
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– | Negligible risk: 0% | ||
– | Low risk: 0.20% — 0.75% | ||
– | Medium-low risk: 0.50% — 1.88% | ||
– | Medium risk: 0.59% — 2.25% | ||
– | Medium-high risk: 0.66 — 2.50% | ||
– | High risk: 0.83% — 3.13% |
2. | Country risk allowance: | ||
Country risk is considered to be the risk associated with counterparties resident in a given country due to circumstances other than normal commercial risk (sovereign risk, transfer risk and risks arising from international financial activity). Based on the countries’ economic performance, political situation, regulatory and institutional framework, and payment capacity and record, the Group classifies all the transactions performed with third parties into six different groups, from group 1 (transactions with ultimate obligors resident in European Union countries, Norway, Switzerland, Iceland, the United States, Canada, Japan, Australia and New Zealand) to group 6 (transactions of which the recovery is considered remote due to circumstances attributable to the country), assigning to each group the credit loss allowance percentages resulting from the aforementioned analyses. | |||
However, due to the size of the Group and to the proactive management of its country risk exposure, the allowances recognized in this connection are not material with respect to the credit loss allowances recognized. |
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– | By applying a strict methodology in the launch of products and in the assignment of the value thereto. | ||
– | By using deterministic and stochastic models for measuring commitments. | ||
– | By using reinsurance as a risk mitigation technique as part of the credit quality guidelines in line with the Group’s general risk policy. | ||
– | By establishing an operating framework for credit risks. | ||
– | By actively managing asset and liability matching. | ||
– | By applying security measures in processes. |
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– | Current estimates of future cash flows under the insurance contracts of the consolidated entities. These estimates include all contractual cash flows and any related cash flows, such as claims handling costs; and | ||
– | The value recognized in the consolidated balance sheet for insurance liabilities (Note 15), net of any related deferred acquisition costs or related intangible assets, such as the amount paid to acquire, in the event of purchase by the entity, the economic rights held by a broker deriving from policies in the entity’s portfolio. |
F-28
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Annual Rate | ||||
Buildings for own use | 2 | |||
Furniture | 7.5 to 10 | |||
Fixtures | 6 to 10 | |||
Office and IT equipment | 10 to 25 | |||
Leasehold improvements | 5 to 10 |
F-29
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– | If it is attributable to specific assets and liabilities of the companies acquired, by increasing the value of the assets (or reducing the value of the liabilities) whose fair values were higher (lower) than the carrying amounts at which they had been recognized in the balance sheets of the acquirees. | ||
– | If it is attributable to specific intangible assets, by recognizing it explicitly in the consolidated balance sheet provided that the fair value of these assets within 12 months following the date of acquisition can be measured reliably. | ||
– | The remaining amount is recognized as goodwill, which is allocated to one or more specific cash-generating units (a cash generating unit is the smallest identifiable group of assets that, as a result of continuing operation, generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets). The cash-generating units represent the Group’s geographical and/or business segments. |
F-30
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n) | Prepayments and accrued income and Accrued expenses and deferred income |
These items include all the balances of prepayments and accrued income and of accrued expenses and deferred income, excluding accrued interest. |
o) | Other assets and Other liabilities |
– | Inventories: this item includes the amount of assets, other than financial instruments, that are held for sale in the ordinary course of business, that are in the process of production, construction or development for such purpose, or that are to be consumed in the production process or in the provision of services. “Inventories” includes land and other property held for sale in the property development business. | ||
Inventories are measured at the lower of cost and net realizable value, which is the estimated selling price of the inventories in the ordinary course of business, less the estimated costs of completion and the estimated costs required to make the sale. | |||
Any write-downs of inventories –such as those due to damage, obsolescence or reduction of selling price– to net realizable value and other impairment losses are recognized as expenses for the year in which the impairment or loss occurs. Subsequent reversals are recognized in the consolidated income statement for the year in which they occur. |
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The carrying amount of inventories is derecognized and recognized as an expense in the period in which the revenue from their sale is recognized. This expense is included under “Cost of sales” in the accompanying consolidated income statements (Note 47) when it relates to activities of the non-financial entities that do not form part of the consolidable group of credit institutions or under “Other operating expenses” in all other cases. | |||
– | Other: this item includes the amount of the difference between pension plan obligations and the value of the plan assets with a debit balance for the entity, when the net amount is to be reported in the consolidated balance sheet, and the amount of any other assets not included in other items. |
p) | Provisions and contingent assets and liabilities |
– | Provisions: credit balances covering present obligations at the balance sheet date arising from past events which could give rise to a loss for the consolidated entities, which is considered to be likely to occur and certain as to its nature but uncertain as to its amount and/or timing; | ||
– | Contingent liabilities: possible obligations that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more future events not wholly within the control of the consolidated entities. They include the present obligations of the consolidated entities when it is not probable that an outflow of resources embodying economic benefits will be required to settle them; and | ||
– | Contingent assets: possible assets that arise from past events and whose existence is conditional on, and will be confirmed only by, the occurrence or non-occurrence of events beyond the control of the Group. Contingent assets are not recognized in the consolidated balance sheet or in the consolidated income statement, but rather are disclosed in the notes, provided that it is probable that these assets will give rise to an increase in resources embodying economic benefits. |
– | Provisions for pensions and similar obligations: includes the amount of all the provisions made to cover post-employment benefits, including obligations to early retirees and similar obligations. | ||
– | Provisions for taxes: includes the amount of the provisions made to cover tax contingencies. | ||
– | Provisions for contingent liabilities and commitments: includes the amount of the provisions made to cover contingent liabilities –defined as those transactions in which the Group guarantees the obligations of a third party, arising as a result of financial guarantees granted or contracts of another kind– and contingent commitments –defined as irrevocable commitments that may give rise to the recognition of financial assets. | ||
– | Other provisions: includes the amount of other provisions made by the consolidated entities. This item includes, inter alia, provisions for restructuring costs and litigation (Note 25). |
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q) | Litigation and/or claims in process |
r) | Own equity instruments |
– | The instruments do not include any contractual obligation for the issuer: (i) to deliver cash or another financial asset to a third party; or (ii) to exchange financial assets or financial liabilities with a third party under conditions that are potentially unfavorable to the issuer. | ||
– | The instruments will or may be settled in the issuer’s own equity instruments and are: (i) a non-derivative that includes no contractual obligation for the issuer to deliver a variable number of its own equity instruments; or (ii) a derivative that will be settled by the issuer through the exchange of a fixed amount of cash or another financial asset for a fixed number of its own equity instruments. |
s) | Equity-instrument-based employee remuneration |
t) | Recognition of income and expenses |
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– | Fee and commission income and expenses relating to financial assets and financial liabilities measured at fair value through profit or loss are recognized when paid. | ||
– | Those arising from transactions or services that are performed over a period of time are recognized over the life of these transactions or services. | ||
– | Those relating to services provided in a single act are recognized when the single act is carried out. |
u) | Financial guarantees |
v) | Assets under management and investment and pension funds managed by the Group |
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w) | Post-employment benefits |
– | They are not owned by the consolidated entities, but by a legally separate third party that is not a party related to the Group. | ||
– | They can only be used to pay or finance post-employment benefits and cannot be returned to the consolidated entities unless the assets remaining in the plan are sufficient to meet all obligations of the plan and of the entity relating to current or former employee benefits, or to reimburse employee benefits already paid by the Group. |
F-35
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– | Current service cost –defined as the increase in the present value of the obligations resulting from employee service in the current period–, under “Personnel expenses.” | ||
– | Interest cost –defined as the increase during the year in the present value of the obligations as a result of the passage of time– under “Interest expense and similar charges.” When obligations are presented on the liability side of the consolidated balance sheet, net of the plan assets, the cost of the liabilities recognized in the income statement relates exclusively to the obligations recognized as liabilities. | ||
– | The expected return on plan assets and the gains or losses on the value of the plan assets, less any plan administration costs and less any applicable taxes, under “Interest and similar income.” | ||
– | The actuarial gains and losses calculated using the corridor approach and the unrecognized past service cost, under “Provisions (net)” in the consolidated income statement. |
x) | Other long-term employee benefits |
y) | Termination benefits |
z) | Income tax |
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Tax Periods Beginning on or after | Tax Rate | |||
January 1, 2007 | 32.5 | % | ||
January 1, 2008 | 30.0 | % |
aa) | Residual maturity periods and average interest rates |
bb) | Consolidated cash flow statements |
– | 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. | ||
– | 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. |
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a) | Banco Santander Central Hispano, S.A. |
b) | International Group structure |
c) | Acquisitions and disposals |
i. | Abbey National plc (Abbey) |
ii. | Abbey’s insurance business |
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iii. | Interbanco, S.A. (Interbanco) |
iv. | Elcon Finans AS (Elcon) and Bankia Bank ASA (Bankia) |
v. | Polskie Towarzystwo Finansowe, S.A. (PTF) |
vi. | Santander Consumer Bank S.p.A. (formerly Finconsumo Banca S.p.A. – Finconsumo) |
vii. | Santander Consumer Finance B.V. (formerly Abfin B.V. - Abfin) |
viii. | Grupo Financiero Santander, S.A. de C.V. (formerly Grupo Financiero Santander Serfin, S.A. de C.V. - Grupo Financiero Santander Serfin) and Banco Santander, S.A., Institución de Banca Múltiple, Grupo Financiero Santander (formerly Banco Santander Mexicano, S.A.) |
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ix. | Compañía Española de Petróleos, S.A. (Cepsa) |
x. | Unión Fenosa, S.A. (Unión Fenosa) |
xi. | Sovereign Bancorp Inc. (Sovereign) |
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xii. | Island Finance |
xiii. | Drive Consumer USA, Inc. (Drive) |
xiv. | Banco Santander Chile |
xv. | Merger |
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xvi. | Inmobiliaria Urbis, S.A. (Urbis) |
xvii. | Unifin S.p.A. (Unifin) |
d) | Off-shore entities |
– | Santander Bank and Trust, Ltd., a bank resident in the Bahamas which engages mainly in international private banking for foreign customers. It also handles investments in bonds and equities and financing transactions. | ||
– | Banco Santander Bahamas International, Ltd., an entity resident in the Bahamas engaging mainly in equities trading and financing transactions. | ||
– | Santander Investment Limited, a company resident in the Bahamas which is managed from the New York branch. It performs brokerage and investment activities in the US market, mainly related to Latin American fixed-income securities. | ||
– | Santander Trade Services, Ltd. (Hong Kong), an intermediary in export documentary credits. |
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– | Banco Santander (Panamá), S.A. has reduced its banking activity. | ||
– | Banco Caracas, N.V. (Netherlands Antilles). This subsidiary, which engages in banking activities, is currently in the process of being sold, and the sale is expected to be completed in 2007. |
– | Santander Merchant Bank, Ltd., (Bahamas), inactive. | ||
– | Santander Investment Bank, Ltd., (Bahamas), a mere asset holding company. | ||
– | Pan American Bank, Ltd., a Bahamas-resident bank which is inactive. | ||
– | Serfin International Bank and Trust, Ltd. (Cayman Islands), which continues to be virtually inactive. | ||
– | Larix Limited, an Isle of Man-resident property and marketable securities holding company. |
1. | Issuers of preferred securities: |
– | Banesto Holdings, Ltd. (Guernsey) | ||
– | Totta & Açores Financing, Limited (Cayman Islands) | ||
– | Pinto Totta International Finance, Limited (Cayman Islands) |
2. | Issuers of debt: |
– | Banesto Finance, Ltd. (Cayman Islands) | ||
– | Banesto Issuances, Ltd. (Cayman Islands) | ||
– | Santander Central Hispano Financial Services, Ltd. (Cayman Islands) | ||
– | Santander Central Hispano International, Ltd. (Cayman Islands) | ||
– | Santander Central Hispano Issuances, Ltd. (Cayman Islands) |
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Unit | Location | Millions of Euros | ||||
Banco Caracas, N.V. | Netherlands Antilles | 4.58 | ||||
Banco Santander (Panamá), S.A. | Panama | 0.64 | ||||
Banco Santander Bahamas International, Ltd. | Bahamas | (64.64 | ) | |||
Holbah II, Ltd. | Bahamas | (24.27 | ) | |||
Holbah, Ltd. | Bahamas | (81.99 | ) | |||
Santander Bank & Trust, Ltd. | Bahamas | 196.41 | ||||
Santander Investment Bank, Ltd. | Bahamas | 10.41 | ||||
Santander Investment Limited | Bahamas | (27.22 | ) | |||
Santander Merchant Bank, Ltd. | Bahamas | 0.71 | ||||
Santander Trade Services, Ltd. | Hong Kong | 2.63 | ||||
Serfin International Bank & Trust | Bahamas | 1.44 | ||||
Total | 18.72 | |||||
– | Insurance, carried on by three subsidiaries: James Hay Insurance Company Limited in Jersey and two subsidiaries in Guernsey, Baker Street Risk and Insurance (Guernsey) Limited and Carfax Insurance Limited (the business activities of the latter subsidiary are currently being significantly reduced). | ||
– | Issuance, carried on by three subsidiaries in Jersey: Abbey National GP (Jersey) Limited, AN Structured Issues Limited and Abbey National Financial Investments Nº 2 Limited (the last-mentioned entity was inactive at 2006 year-end). | ||
– | Banking, performed by one subsidiary in Jersey: Abbey National International Limited. Abbey National Treasury International (IOM) Limited, located in the Isle of Man, was inactive at year-end. | ||
– | Four portfolio or asset holding companies, of which three are located in Jersey –Abbey National Offshore Holdings Limited, Abbey National Jersey International Limited and Abbey National Financial and Investment Services (Jersey) Limited– and one in Gibraltar –Abbey National (Gibraltar) Limited (which was virtually inactive at year-end). | ||
– | Services, mainly administrative services, performed by Abbey National Secretariat Services (Jersey) Limited. | ||
– | Also, the following seven subsidiaries located in Jersey were inactive at 2006 year-end and their eventual liquidation is being assessed: Whitewick Limited, Cater Allen Trust Company (Jersey) Limited, Sandywick Limited, The Inscape Investment Fund (Jersey) Limited, Cater Allen Nominees (Jersey) Limited, Cater Allen Registrars Limited and Brettwood Limited. |
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a) | Distribution of the Bank’s profit |
Thousands | ||||
of Euros | ||||
Interim dividends | 3,256,144 | |||
Of which: | ||||
Distributed at December 31, 2006 (*) | 1,337,218 | |||
Third interim dividend | 668,609 | |||
Fourth interim dividend | 1,250,317 | |||
Voluntary reserves | 46 | |||
Net profit for the year | 3,256,190 | |||
(*) | Recognized under “Shareholders’ equity – Dividends and remuneration.” |
Millions of Euros | ||||||||||||||||
05/31/06 | 09/30/06 | 12/31/06 | 12/31/06 | |||||||||||||
First | Second | Third (*) | Fourth (*) | |||||||||||||
Profit after tax | 700 | 1,653 | 3,256 | 3,256 | ||||||||||||
Dividends paid | — | (669 | ) | (1,337 | ) | (2,006 | ) | |||||||||
700 | 984 | 1,919 | 1,250 | |||||||||||||
Interim dividends | 668.6 | 668.6 | 668.6 | 1,250.3 | ||||||||||||
Accumulated interim dividends | 668.6 | 1,337.2 | 2,005.8 | 3,256.1 | ||||||||||||
Gross dividend per share (euros) | 0.106904 | 0.106904 | 0.106904 | 0.199913 | ||||||||||||
Date of payment | 08/01/06 | 11/01/06 | 02/01/07 | 05/01/07 | ||||||||||||
(*) | Dividends not distributed at December 31, 2006. |
b) | Earnings per share in continuing operations and discontinued operations |
i. | Basic earnings per share |
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2006 | 2005 | 2004 | ||||||||||
Net profit for the year (thousands of euros) | 7,595,947 | 6,220,104 | 3,605,870 | |||||||||
Weighted average number of shares outstanding | 6,248,375,663 | 6,240,611,051 | 4,950,497,709 | |||||||||
Basic earnings per share (euros) | 1.2157 | 0.9967 | 0.7284 | |||||||||
Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Net profit for the year | 7,595,947 | 6,220,104 | 3,605,870 | |||||||||
Dilutive effect of changes in profit for the year arising from potential conversion of ordinary shares | — | — | — | |||||||||
7,595,947 | 6,220,104 | 3,605,870 | ||||||||||
Weighted average number of shares outstanding | 6,248,375,663 | 6,240,611,051 | 4,950,497,709 | |||||||||
Dilutive effect of: | ||||||||||||
Assumed conversion of convertible debt | — | — | — | |||||||||
Options | 34,052,536 | 23,325,614 | 8,602,181 | |||||||||
Adjusted average number of shares for the calculation | 6,282,428,199 | 6,263,936,665 | 4,959,099,890 | |||||||||
Diluted earnings per share (euros) | 1.2091 | 0.9930 | 0.7271 | |||||||||
a) | Remuneration of directors |
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– | Board meetings: €2,310 for resident directors and €1,870 for non-resident directors (2005: €2,310 thousand and €1,870 thousand, respectively). | ||
– | Committee meetings: €1,155 for resident directors and €935 for non-resident directors (2005: €1,155 thousand and €935 thousand, respectively). |
Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Total salaries | 20,970 | 18,494 | 16,179 | |||||||||
Of which: variable remuneration | 13,666 | 11,412 | 9,395 |
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Thousands of Euros | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Bylaw-Stipulated Emoluments | Attendance Fees | Salary of Executive Directors | ||||||||||||||||||||||||||||||||||||||||||||||||||
Appointments | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Audit and | and | |||||||||||||||||||||||||||||||||||||||||||||||||||
Executive | Compliance | Remuneration | Other | |||||||||||||||||||||||||||||||||||||||||||||||||
Directors | Board | Committee | Committee | Committee | Board | Other Fees | Fixed | Variable (a) | Total | Remuneration | Total | Total | Total | |||||||||||||||||||||||||||||||||||||||
Mr. Emilio Botín-Sanz de Sautuola y García de los Ríos | 107 | 215 | — | — | 23 | 2 | 1,079 | 2,032 | 3,111 | 1 | 3,459 | 3,035 | 2,749 | |||||||||||||||||||||||||||||||||||||||
Mr. Fernando de Asúa Álvarez | 143 | 215 | 50 | 30 | 23 | 129 | — | — | — | — | 590 | 519 | 407 | |||||||||||||||||||||||||||||||||||||||
Mr. Alfredo Sáenz Abad | 107 | 215 | — | — | 23 | 2 | 2,718 | 4,652 | 7,370 | 382 | 8,099 | 7,161 | 6,252 | |||||||||||||||||||||||||||||||||||||||
Mr. Matías Rodríguez Inciarte | 107 | 215 | — | — | 23 | 113 | 1,372 | 2,517 | 3,889 | 154 | 4,501 | 3,970 | 3,545 | |||||||||||||||||||||||||||||||||||||||
Mr. Manuel Soto Serrano | 143 | — | 50 | 30 | 23 | 25 | — | — | — | — | 271 | 246 | 150 | |||||||||||||||||||||||||||||||||||||||
Assicurazioni Generali, S.p.A. | 125 | — | — | — | 11 | — | — | — | — | — | 136 | 110 | 76 | |||||||||||||||||||||||||||||||||||||||
Mr. Antonio Basagoiti García-Tuñón | 107 | 215 | — | — | 23 | 111 | — | — | — | 3,021 | 3,477 | 414 | 279 | |||||||||||||||||||||||||||||||||||||||
Ms. Ana Patricia Botín-Sanz de Sautuola y O’Shea | 107 | 215 | — | — | 23 | — | 1,030 | 1,696 | 2,726 | 13 | 3,084 | 2,733 | 2,252 | |||||||||||||||||||||||||||||||||||||||
Mr. Francisco Javier Botín-Sanz de Sautuola y O’Shea | 107 | — | — | — | 21 | — | — | — | — | — | 128 | 106 | 42 | |||||||||||||||||||||||||||||||||||||||
Lord Terence Burns (***) | 107 | — | — | — | 15 | — | — | — | — | — | 122 | 105 | 4 | |||||||||||||||||||||||||||||||||||||||
Mr. Guillermo de la Dehesa Romero | 107 | 215 | — | 30 | 21 | 8 | — | — | — | — | 381 | 326 | 258 | |||||||||||||||||||||||||||||||||||||||
Mr. Rodrigo Echenique Gordillo | 107 | 215 | — | 30 | 21 | 85 | — | — | — | 930 | 1,388 | 1,329 | 1,113 | |||||||||||||||||||||||||||||||||||||||
Mr. Antonio Escámez Torres | 107 | 215 | — | — | 23 | 110 | — | — | — | 874 | 1,329 | 1,337 | 1,088 | |||||||||||||||||||||||||||||||||||||||
Mr. Francisco Luzón López | 107 | 215 | — | — | 23 | — | 1,105 | 2,769 | 3,874 | 382 | 4,601 | 4,003 | 3,538 | |||||||||||||||||||||||||||||||||||||||
Mr. Luis Ángel Rojo Duque (****) | 107 | — | 50 | 30 | 23 | 22 | — | — | — | — | 232 | 113 | — | |||||||||||||||||||||||||||||||||||||||
Mr. Abel Matutes Juan | 107 | — | 50 | — | 23 | 9 | — | — | — | — | 189 | 172 | 144 | |||||||||||||||||||||||||||||||||||||||
Mutua Madrileña Automovilista | 125 | — | — | — | 23 | — | — | — | — | — | 148 | 122 | 62 | |||||||||||||||||||||||||||||||||||||||
Mr. Luis Alberto Salazar-Simpson Bos | 107 | — | 50 | — | 21 | 14 | — | — | — | — | 192 | 173 | 143 | |||||||||||||||||||||||||||||||||||||||
Mr. Jay S. Sidhu (b) | 58 | — | — | — | — | — | — | — | — | — | 58 | — | — | |||||||||||||||||||||||||||||||||||||||
Mr. Emilio Botín-Sanz de Sautuola y O’Shea (**) | — | — | — | — | — | — | — | — | — | — | — | 98 | 94 | |||||||||||||||||||||||||||||||||||||||
Mr. Elías Masaveu Alonso del Campo (**) | — | — | — | — | — | — | — | — | — | — | — | 47 | 81 | |||||||||||||||||||||||||||||||||||||||
Mr. Jaime Botín-Sanz de Sautuola y García de los Ríos (*) | — | — | — | — | — | — | — | — | — | — | — | — | 48 | |||||||||||||||||||||||||||||||||||||||
Mr. Juan Abelló Gallo (*) | — | — | — | — | — | — | — | — | — | — | — | — | 121 | |||||||||||||||||||||||||||||||||||||||
Mr. José Manuel Arburúa Aspiunza (*) | — | — | — | — | — | — | — | — | — | — | — | — | 120 | |||||||||||||||||||||||||||||||||||||||
Sir George Ross Mathewson (*) | — | — | — | — | — | — | — | — | — | — | — | — | 69 | |||||||||||||||||||||||||||||||||||||||
Mr. Antonio de Sommer Champalimaud (*) | — | — | — | — | — | — | — | — | — | — | — | — | 25 | |||||||||||||||||||||||||||||||||||||||
Total 2006 | 2,092 | 2,150 | 250 | 150 | 386 | 630 | 7,304 | 13,666 | 20,970 | 5,757 | 32,385 | — | — | |||||||||||||||||||||||||||||||||||||||
Total 2005 | 1,795 | 1,800 | 256 | 148 | 315 | 607 | 7,082 | 11,412 | 18,494 | 2,704 | — | 26,119 | — | |||||||||||||||||||||||||||||||||||||||
Total 2004 | 1,435 | 1,463 | 214 | — | 387 | 697 | 6,784 | 9,395 | 16,179 | 2,285 | — | — | 22,660 | |||||||||||||||||||||||||||||||||||||||
(*) | Directors who were Board members for some months in 2004 but ceased to be directors prior to December 31, 2004. | |
(**) | Directors who were Board members for some months in 2005 but ceased to be directors prior to December 31, 2005. | |
(***) | Appointed as member of the Bank’s Board of Directors on December 20, 2004 and subsequently ratified by the shareholders at the Annual General Meeting on June 18, 2005. | |
(****) | Appointed as member of the Bank’s Board of Directors on April 25, 2005 and subsequently ratified by the shareholders at the Annual General Meeting on June 18, 2005. | |
(a) | Accrued in 2006. | |
(b) | Appointed by the shareholders at the Annual General Meeting on June 17, 2006 and ceased to discharge his duties on December 31, 2006. | |
(1) | Recognized under “Personnel expenses” in the income statement of the Bank, except for the salary of Ms. Ana Patricia Botín-Sanz de Sautuola y O’Shea, which is recognized at Banco Español de Crédito, S.A. |
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b) | Remuneration of the Board members as representatives of the Bank |
Thousands of Euros | |||||||||||
Company | 2006 | 2005 | |||||||||
Mr. Emilio Botín-Sanz de Sautuola y García de los Ríos | Shinsei Bank, Ltd. | 59.9 | 58.7 | ||||||||
Mr. Fernando de Asúa Álvarez | Cepsa | 95.6 | 89.9 | ||||||||
Mr. Antonio Escámez Torres | Attijariwafa Bank | ||||||||||
Société Anonyme | 5.0 | 5.1 | |||||||||
160.5 | 153.7 | ||||||||||
c) | Post-employment and other long-term benefits |
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Thousands of Euros | ||||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||
Accrued | Accrued | Accrued | ||||||||||||||||||||||
Pension | Other | Pension | Other | Pension | Other | |||||||||||||||||||
Obligations | Insurance | Obligations | Insurance | Obligations | Insurance | |||||||||||||||||||
Mr. Emilio Botín-Sanz de Sautuola y García de los Ríos | 21,068 | — | 11,785 | — | 10,700 | — | ||||||||||||||||||
Mr. Alfredo Sáenz Abad | 55,537 | 8,155 | 45,444 | 7,917 | 46,061 | 7,724 | ||||||||||||||||||
Mr. Matías Rodríguez Inciarte | 39,390 | 4,117 | 28,953 | 3,997 | 27,752 | 3,900 | ||||||||||||||||||
Ms. Ana Patricia Botín-Sanz de Sautuola y O’Shea | 15,045 | 1,402 | 12,232 | 1,373 | 9,742 | 1,258 | ||||||||||||||||||
Mr. Francisco Luzón López | 39,187 | 6,571 | 39,188 | 6,380 | 35,703 | 6,224 | ||||||||||||||||||
170,227 | 20,245 | 137,602 | 19,667 | 129,958 | 19,106 | |||||||||||||||||||
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d) | Share option plans granted to directors |
Exercised | Options | Options | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Options Granted | Options | Granted | Exercised Options | Granted | Exercised Options | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Granted | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Market | Market | Date of | Date of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Options at | Exercise | Exercise | Options at | Exercise | Price | Options at | Exercise | Exercise | Price | Options at | Exercise | Commencement | Expiry of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
January 1, | Price | Price | January 1, | Price | Applied | December 31, | Price | Price | Applied | December 31, | Price | of Exercise | Exercise | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2004 | (Euros) | Number | (Euros) | Number | 2005 | Number | Number | (Euros) | (Euros) | 2005 | (Euros) | Number | Number | (Euros) | (Euros) | 2006 | (Euros) | Period | Period | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Managers Plan 2000: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Emilio Botín-Sanz de Sautuola y García de los Ríos | 150,000 | 10.545 | — | — | — | 150,000 | — | (150,000 | ) | 10.545 | 11.12 | — | — | — | — | — | — | — | — | 12/30/03 | 12/29/05 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Alfredo Sáenz Abad | 100,000 | 10.545 | — | — | — | 100,000 | — | (100,000 | ) | 10.545 | 11.14 | — | — | — | — | — | — | — | — | 12/30/03 | 12/29/05 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Matías Rodríguez Inciarte | 125,000 | 10.545 | — | — | — | 125,000 | — | (125,000 | ) | 10.545 | 11.14 | — | — | — | — | — | — | — | — | 12/30/03 | 12/29/05 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Antonio Escámez Torres | 100,000 | 10.545 | — | — | — | 100,000 | — | (100,000 | ) | 10.545 | 11.07 | — | — | — | — | — | — | — | — | 12/30/03 | 12/29/05 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Francisco Luzón López | 100,000 | 10.545 | — | — | — | 100,000 | — | (100,000 | ) | 10.545 | 11.14 | — | — | — | — | — | — | — | 12/30/03 | 12/29/05 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
575,000 | 10.545 | — | — | — | 575,000 | — | (575,000 | ) | 10.545 | 11.12 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Incentive Plan (I06) (Note 49): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Emilio Botín-Sanz de Sautuola y García de los Ríos | — | — | 541,400 | 9.09 | — | 541,400 | — | — | — | — | 541,400 | 9.09 | — | — | — | — | 541,400 | 9.09 | 01/15/08 | 01/15/09 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Alfredo Sáenz Abad | — | — | 1,209,100 | 9.09 | — | 1,209,100 | — | — | — | — | 1,209,100 | 9.09 | — | — | — | — | 1,209,100 | 9.09 | 01/15/08 | 01/15/09 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Matías Rodríguez Inciarte | — | — | 665,200 | 9.09 | — | 665,200 | — | — | — | — | 665,200 | 9.09 | — | — | — | — | 665,200 | 9.09 | 01/15/08 | 01/15/09 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ms. Ana Patricia Botín-Sanz de Sautuola y O’Shea (*) | — | — | 293,692 | 9.09 | — | 293,692 | — | — | — | — | 293,692 | 9.09 | — | — | — | — | 293,692 | 9.09 | 01/15/08 | 01/15/09 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Francisco Luzón López | — | — | 639,400 | 9.09 | — | 639,400 | — | — | — | — | 639,400 | 9.09 | — | — | — | — | 639,400 | 9.09 | 01/15/08 | 01/15/09 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— | — | 3,348,792 | 9.09 | — | 3,348,792 | — | — | — | — | 3,348,792 | 9.09 | — | — | — | — | 3,348,792 | 9.09 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(*) | Approved by Banesto’s shareholders at its Annual General Meeting on February 28, 2006. | |
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e) | Loans |
Thousands of Euros | ||||||||||||||||||||||||
2006 | 2005 | |||||||||||||||||||||||
Loans and | Loans and | |||||||||||||||||||||||
Credits | Guarantees | Total | Credits | Guarantees | Total | |||||||||||||||||||
Mr. Emilio Botín-Sanz de Sautuola y O’Shea | — | — | — | 2 | — | 2 | ||||||||||||||||||
Mr. Fernando de Asúa Álvarez | — | — | — | 4 | — | 4 | ||||||||||||||||||
Mr. Alfredo Sáenz Abad | 21 | — | 21 | 16 | — | 16 | ||||||||||||||||||
Mr. Matías Rodríguez Inciarte | — | — | — | 8 | 10 | 18 | ||||||||||||||||||
Mr. Manuel Soto Serrano | 4 | — | 4 | 3 | — | 3 | ||||||||||||||||||
Mr. Antonio Basagoiti García-Tuñón | 125 | 1 | 126 | 145 | 1 | 146 | ||||||||||||||||||
Ms. Ana Patricia Botín-Sanz de Sautuola y O’Shea | 2 | — | 2 | — | — | — | ||||||||||||||||||
Mr. Francisco Javier Botín-Sanz de Sautuola y O’Shea | — | — | — | 60 | — | 60 | ||||||||||||||||||
Mr. Rodrigo Echenique Gordillo | 33 | — | 33 | 5 | — | 5 | ||||||||||||||||||
Mr. Antonio Escámez Torres | 289 | — | 289 | 295 | — | 295 | ||||||||||||||||||
Mr. Francisco Luzón López | 875 | — | 875 | 1,026 | — | 1,026 | ||||||||||||||||||
Mutua Madrileña Automovilista | 140 | 63 | 203 | 5 | 47 | 52 | ||||||||||||||||||
1,489 | 64 | 1,553 | 1,569 | 58 | 1,627 | |||||||||||||||||||
�� |
f) | Senior managers |
Thousands of Euros | ||||||||||||||||||||||||
Salary | ||||||||||||||||||||||||
Number of | Other | |||||||||||||||||||||||
Year | Managers(1) | Fixed | Variable | Total | Remuneration | Total | ||||||||||||||||||
2004 | 23 | 15,156 | 24,399 | 39,555 | 1,727 | 41,282 | ||||||||||||||||||
2005 | 24 | 16,450 | 27,010 | 43,460 | 2,708 | 46,168 | ||||||||||||||||||
2006 | 26 | 19,119 | 34,594 | 53,713 | 11,054 | 64,767 |
(*) | Excluding executive directors’ remuneration, which is detailed above. | |
(1) | At some point in the year they occupied the position of General Manager. |
g) | Post-employment benefits to former directors and senior managers |
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h) | Termination benefits |
– | In the case of Mr. Emilio Botín-Sanz de Sautuola y García de los Ríos, to acquire the status of retiree and to accrue a pension supplement. At December 31, 2006, the annual pension supplement would amount to €1,529 thousand. | ||
– | In the cases of Mr. Matías Rodríguez Inciarte and Mr. Francisco Luzón López, to acquire the status of early retirees and to accrue pension supplements. At December 31, 2006, the annual pension supplements would amount to €1,916 thousand for Mr. Matías Rodríguez Inciarte and €1,972 thousand for Mr. Francisco Luzón López (2005: €1,801 thousand and €1,938 thousand, respectively). | ||
– | In the case of Ms. Ana Patricia Botín-Sanz de Sautuola y O’Shea, to receive a termination benefit amounting to up to five years’ annual fixed salary payments, as established in the related contract, based on the date on which the contract is terminated. At December 31, 2006, this benefit would amount to €4,120 thousand (December 31, 2005: €4,000 thousand). Receipt of this termination benefit is incompatible with that of a pension supplement. | ||
– | In the case of Mr. Alfredo Sáenz Abad, to acquire the status of retiree or, alternatively, to receive a termination benefit equal to 40% of his annual fixed salary multiplied by the number of years of service at the Bank, up to a maximum of ten times his annual fixed salary. At December 31, 2006, the amount relating to the first option would be €3,657 thousand and that relating to the second option would be €27.2 million. The two alternatives are mutually exclusive and, therefore, if Mr. Alfredo Sáenz Abad opted to receive the termination benefit, he would not receive any pension supplement (December 31, 2005: €3,421 thousand per year and €26.4 million, respectively). |
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i) | Detail of the directors’ investments in companies with similar business activities and performance by directors, as independent professionals or as employees, of similar activities |
Number of | ||||||
Director | Corporate Name | Shares | Functions | |||
Mr. Emilio Botín-Sanz de Sautuola y | Bankinter, S.A. | 847,777 | — | |||
García de los Ríos | Shinsei Bank, Limited | — | Director (1) | |||
Sovereign Bancorp, Inc. | — | Director (1) (2) | ||||
Bank of America Corporation | 280 | — | ||||
Santander Investment, S.A. | — | Chairman (1) | ||||
Mr. Fernando de Asúa Álvarez | Lloyds TSB | 6,000 | — | |||
Unibanco GDR | 650 | — | ||||
BNP Paribas | 1,007 | — | ||||
Banco Bilbao Vizcaya Argentaria, S.A. | 8,650 | — | ||||
Bankinter, S.A. | 2,500 | — | ||||
Banco Pastor, S.A. | 4,000 | — | ||||
Société Générale | 346 | — | ||||
Deutsche Bank, A.G. | 800 | — | ||||
Sumitomo Mitsui | 10 | — | ||||
Merrill Lynch | 625 | — | ||||
ING | 1,500 | — | ||||
Mr. Alfredo Sáenz Abad | Banco Bilbao Vizcaya Argentaria, S.A. | 25,000 | — | |||
HSBC Holdings | 8,298 | — | ||||
Lloyds TSB | 218 | — | ||||
San Paolo IMI, S.p.A. (3) | — | Director (1) | ||||
Banco Banif, S.A. | — | Chairman (1) | ||||
Santander Investment, S.A. | — | Deputy Chairman (1) | ||||
Mr. Matías Rodríguez Inciarte | Banesto | 18,700 | Director (1) | |||
Banco Santander Totta, S.A. | — | Deputy Chairman (1) | ||||
Mr. Manuel Soto Serrano | Istituto per le Opere di Religione (IOR) | — | Member (4) |
F-54
Table of Contents
Number of | ||||||
Director | Corporate Name | Shares | Functions | |||
Assicurazioni Generali S.p.A (5) | BSI SA | 4,400,000 | — | |||
Commerzbank, AG | 57,620,026 | — | ||||
Banca Intesa S.p.A. (3) | 475,422,124 | — | ||||
San Paolo IMI, S.p.A. (3) | 46,251,051 | — | ||||
Capitalia S.p.A. | 63,947,779 | — | ||||
Mediobanca - Banca di Credito Finanziario S.p.A. | 17,505,846 | — | ||||
Bank Leumi le-Israel B.M. | 19,711,333 | — | ||||
Erste Bank AG | 3,397,796 | — | ||||
Banca Monte dei Paschi di Siena S.p.A. | 19,401,413 | — | ||||
UniCredito Italiano S.p.A. | 47,773,711 | — | ||||
ABN Amro Holding NV | 8,288,079 | — | ||||
Société Générale | 1,362,552 | — | ||||
Banco Bilbao Vizcaya Argentaria, S.A. | 8,794,076 | — | ||||
BNP Paribas | 2,658,477 | — | ||||
Deutsche Bank, A.G. | 1,040,288 | — | ||||
Fortis SA NV | 2,717,241 | — | ||||
Dexia SA | 2,369,438 | — | ||||
Bank of Ireland | 1,670,983 | — | ||||
Banco Popular Español, S.A. | 1,464,930 | — | ||||
Banesto | 750,000 | — | ||||
Mr. Antonio Basagoiti García Tuñón | Banco Popular Español, S.A. | 500 | — | |||
Banco Pastor, S.A. | 980 | — | ||||
Commerzbank AG | 530 | — | ||||
Ms. Ana Patricia Botín-Sanz de | Banesto | 206,848 | Chairwoman | |||
Sautuola y O’Shea | Santander Investment, S.A. | — | Director (1) | |||
Banco Santander de Negócios Portugal, S.A. | — | Director (1) | ||||
Bankinter, S.A. | 1 | — | ||||
Lord Terence Burns | Abbey National plc | — | Chairman (1) | |||
Mr. Guillermo de la Dehesa Romero | Goldman Sachs & Co. | 12,888 | — | |||
Goldman Sachs Europe Ltd. | — | Director (1) |
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Number of | ||||||
Director | Corporate Name | Shares | Functions | |||
Mr. Rodrigo Echenique Gordillo | Banco Popular Español, S.A. | 6,000 | — | |||
Banco Bilbao Vizcaya Argentaria, S.A. | 4,080 | — | ||||
BNP Paribas | 990 | — | ||||
Mitsubishi UFJ FIN | 6 | — | ||||
Royal Bank of Scotland Group plc | 1,700 | — | ||||
Mizuho Financial Group, Inc. | 5 | — | ||||
UBS | 1,600 | — | ||||
Banco Banif, S.A. | — | 2ndDeputy Chairman (1) | ||||
Santander Investment, S.A. | — | Director (1) | ||||
Allfunds Bank, S.A. | — | Chairman (1) | ||||
Banco Santander International | — | Director (1) | ||||
Mr. Antonio Escámez Torres | Attijariwafa Bank Société Anonyme | 10 | Deputy Chairman (1) | |||
Banco de Valencia, S.A. | 349 | — | ||||
Santander Consumer Finance, S.A. | — | Chairman (1) | ||||
Open Bank Santander Consumer, S.A. | — | Chairman (1) | ||||
Mr. Francisco Luzón López | Banco Santander Serfin, S.A. | — | Director (1) | |||
Banco Santander International | — | Director (1) | ||||
Banco Bilbao Vizcaya Argentaria, S.A. | 17,225 | — | ||||
Mr. Abel Matutes Juan | San Paolo IMI S.p.A. (3) | 757,517 | — | |||
Eurizon Financial Group | — | Director (1) | ||||
Mr. Luis Alberto Salazar-Simpson Bos | Bankinter, S.A. | 2,798 | — | |||
Mr. Jay S. Sidhu (6) | Sovereign Bancorp, Inc. | 3,247,222 | — | |||
Mr. Antoine Bernheim (7) | BNP Paribas | 1,100 | — | |||
UBS | 40,164 | — | ||||
Crédit Suisse | 35,200 | — | ||||
Banca Intesa S.p.A. (3) | 398,533 | Director (1) | ||||
Mediobanca - Banca di Credito Finanziario S.p.A. | 60,000 | Director (1) | ||||
UniCredito Italiano S.p.A. | 126,455 | — | ||||
ABN Amro | 39,297 | — | ||||
BSI SA | — | Director (1) |
(1) | Non-executive. | |
(2) | Mr. Emilio Botín-Sanz de Sautuola y García de los Ríos resigned as a non-executive director of Sovereign Bancorp, Inc. on March 8, 2007. | |
(3) | Effective January 1, 2007, San Paolo IMI, S.p.A. was merged into Banca Intesa S.p.A. | |
(4) | Non-executive member of the Control Committee. | |
(5) | More detailed information on the ownership interests held by Assicurazioni Generali, S.p.A. can be consulted in the notes to the financial statements of this company or on its website (www.generali.it). | |
(6) | He was appointed at the Annual General Meeting on June 17, 2006 and stood down on December 31, 2006. | |
(7) | Representative on the Bank’s Board of Directors of the non-executive nominee director Assicurazioni Generali S.p.A. |
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Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Classification: | ||||||||||||
Financial assets held for trading | 14,627,738 | 10,278,858 | 12,878,171 | |||||||||
Other financial assets at fair value through profit or loss | 185,485 | 2,428,663 | 6,524,070 | |||||||||
Loans and receivables | 45,361,315 | 47,065,501 | 38,977,533 | |||||||||
60,174,538 | 59,773,022 | 58,379,774 | ||||||||||
Type: | ||||||||||||
Reciprocal accounts | 503,299 | 345,104 | 118,536 | |||||||||
Time deposits | 16,842,601 | 21,962,472 | 23,204,031 | |||||||||
Reverse repurchase agreements | 37,010,008 | 33,634,326 | 31,495,786 | |||||||||
Other accounts | 5,818,630 | 3,831,120 | 3,561,421 | |||||||||
60,174,538 | 59,773,022 | 58,379,774 | ||||||||||
Currency: | ||||||||||||
Euro | 33,380,000 | 33,537,338 | 30,077,335 | |||||||||
Pound sterling | 4,364,111 | 5,313,338 | 9,617,191 | |||||||||
US dollar | 16,150,735 | 16,848,462 | 14,544,531 | |||||||||
Other currencies | 6,292,419 | 4,109,930 | 4,194,596 | |||||||||
Impairment losses | (12,727 | ) | (36,046 | ) | (53,879 | ) | ||||||
60,174,538 | 59,773,022 | 58,379,774 | ||||||||||
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Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Classification: | ||||||||||||
Financial assets held for trading | 76,736,992 | 81,741,944 | 55,869,629 | |||||||||
Other financial assets at fair value through profit or loss | 4,500,220 | 9,699,237 | 19,632,958 | |||||||||
Available-for-sale financial assets | 32,727,454 | 68,054,021 | 36,702,487 | |||||||||
Loans and receivables | 621,770 | 171,203 | — | |||||||||
114,586,436 | 159,666,405 | 112,205,074 | ||||||||||
Type: | ||||||||||||
Spanish government debt securities | ||||||||||||
Treasury bills | 3,160,674 | 3,948,045 | 2,980,221 | |||||||||
Government bonds | 535,584 | 3,287,406 | 1,256,828 | |||||||||
Other book-entry debt securities | 9,080,043 | 12,481,210 | 13,232,736 | |||||||||
Foreign government debt securities | 22,250,587 | 48,120,701 | 16,084,183 | |||||||||
Issued by financial institutions | 56,063,543 | 61,080,306 | 50,845,648 | |||||||||
Other fixed-income securities | 23,586,327 | 30,828,737 | 28,025,093 | |||||||||
Impairment losses | (90,322 | ) | (80,000 | ) | (219,635 | ) | ||||||
Of which: on available-for-sale financial assets | (90,322 | ) | (80,000 | ) | (219,635 | ) | ||||||
114,586,436 | 159,666,405 | 112,205,074 | ||||||||||
Currency: | ||||||||||||
Euro | 43,708,401 | 79,195,677 | 47,956,487 | |||||||||
Pound sterling | 22,488,577 | 32,983,211 | 27,570,398 | |||||||||
US dollar | 12,483,749 | 12,591,314 | 14,014,065 | |||||||||
Other currencies | 35,996,031 | 34,976,203 | 22,883,759 | |||||||||
Impairment losses | (90,322 | ) | (80,000 | ) | (219,635 | ) | ||||||
114,586,436 | 159,666,405 | 112,205,074 |
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a) | Breakdown |
Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Classification: | ||||||||||||
Financial assets held for trading | 13,490,719 | 8,077,867 | 4,419,338 | |||||||||
Other financial assets at fair value through profit or loss | 2,712,433 | 30,303,170 | 14,310,516 | |||||||||
Available-for-sale financial assets | 5,970,845 | 5,890,918 | 7,818,836 | |||||||||
Of which: | ||||||||||||
Disregarding impairment losses | 5,984,704 | 5,908,576 | 7,849,761 | |||||||||
Impairment losses | (13,859 | ) | (17,658 | ) | (30,925 | ) | ||||||
22,173,997 | 44,271,955 | 26,548,690 | ||||||||||
Type: | ||||||||||||
Shares of Spanish companies | 5,185,206 | 5,707,494 | 4,306,586 | |||||||||
Shares of foreign companies | 11,138,458 | 8,256,086 | 6,352,310 | |||||||||
Investment fund units and shares | 3,410,494 | 18,563,343 | 10,597,843 | |||||||||
Of which: Abbey | 669,689 | 17,041,821 | 9,226,959 | |||||||||
Pension fund units | 144,320 | 133,918 | 92,790 | |||||||||
Other securities | 2,309,378 | 11,628,772 | 5,230,086 | |||||||||
Of which: unit linked | 2,309,378 | 11,628,772 | 5,230,086 | |||||||||
Impairment losses | (13,859 | ) | (17,658 | ) | (30,925 | ) | ||||||
22,173,997 | 44,271,955 | 26,548,690 | ||||||||||
b) | Changes |
Millions of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Balance at beginning of year | 5,909 | 7,850 | 10,234 | |||||||||
Net additions /disposals | (1,232 | ) | (2,984 | ) | (2,981 | ) | ||||||
Of which: | ||||||||||||
Antena 3 Televisión, S.A. | (398 | ) | — | — | ||||||||
San Paolo IMI, S.p.A. | (1,499 | ) | — | — | ||||||||
Assicurazioni Generali, S.p.A. | 399 | |||||||||||
Royal Bank of Scotland Group plc | — | (2,028 | ) | (1,587 | ) | |||||||
Commerzbank AG | — | (306 | ) | — | ||||||||
Shinsei Bank, Ltd. | — | (52 | ) | (53 | ) | |||||||
Transfers | — | 396 | — | |||||||||
Valuation adjustments | 1,308 | 647 | 597 | |||||||||
Of which: San Paolo IMI SpA | 607 | 414 | 41 | |||||||||
Balance at end of year | 5,985 | 5,909 | 7,850 |
i. | Vodafone Airtouch, plc. (Vodafone) |
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ii. | Shinsei Bank, Ltd. (Shinsei) |
iii. | Sacyr-Vallehermoso, S.A. |
iv. | Royal Bank of Scotland Group plc (RBS) |
v. | Auna Operadores de Telecomunicaciones, S.A. (Auna) |
vi. | Commerzbank AG |
vii. | Antena 3 Televisión, S.A. (“Antena 3”) |
viii. | San Paolo IMI, S.p.A. (“San Paolo”) |
c) | Notifications of acquisitions of investments |
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d) | Impairment losses |
Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Balance at beginning of year | 97,658 | 250,560 | 226,876 | |||||||||
Net impairment losses for the year | (2,799 | ) | (110,977 | ) | 19,419 | |||||||
Of which: | ||||||||||||
Impairment losses charged to income | 6,807 | 36,156 | 21,214 | |||||||||
Impairment losses reversed with a credit to income | (9,606 | ) | (147,133 | ) | (1,795 | ) | ||||||
Inclusion of entities in the Group in the year | — | — | 6 | |||||||||
Write-off of impaired balances against recorded impairment allowance | (4,009 | ) | (21,471 | ) | (5,947 | ) | ||||||
Exchange differences and other items | (5,018 | ) | 5,948 | (17,304 | ) | |||||||
Transfers between allowances | 18,349 | (26,402 | ) | 27,510 | ||||||||
Balance at end of year | 104,181 | 97,658 | 250,560 | |||||||||
Of which: | ||||||||||||
By geographical location of risk: | ||||||||||||
Spain | 52,225 | 31,868 | 163,475 | |||||||||
Rest of Europe | 3,122 | 2,553 | 46,889 | |||||||||
Latin America | 48,834 | 63,237 | 40,196 | |||||||||
By type of asset covered: | ||||||||||||
Debt instruments – Available-for-sale financial assets (Note 7) | 90,322 | 80,000 | 219,635 | |||||||||
Other equity instruments – Available-for-sale financial assets | 13,859 | 17,658 | 30,925 |
a) | Trading derivatives |
Thousands of Euros | ||||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||
Debit | Credit | Debit | Credit | Debit | Credit | |||||||||||||||||||
Balance | Balance | Balance | Balance | Balance | Balance | |||||||||||||||||||
Interest rate risk | 24,522,311 | 24,785,804 | 23,944,965 | 23,733,558 | 17,715,596 | 19,567,730 | ||||||||||||||||||
Foreign currency risk | 3,416,681 | 4,204,816 | 1,325,399 | 1,330,493 | 792,418 | 1,819,693 | ||||||||||||||||||
Price risk | 5,121,227 | 7,938,554 | 1,949,054 | 3,695,552 | 2,433,774 | 3,630,129 | ||||||||||||||||||
Other risks | 1,924,072 | 1,808,944 | 409,776 | 468,477 | 139,425 | 226,216 | ||||||||||||||||||
34,984,291 | 38,738,118 | 27,629,194 | 29,228,080 | 21,081,213 | 25,243,768 | |||||||||||||||||||
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b) | Short positions |
Thousands of Euros | ||||||||
2006 | 2005 | |||||||
Borrowed securities: | ||||||||
Debt instruments | 5,459,927 | 7,033,121 | ||||||
Of which: Abbey | 4,574,639 | 6,156,838 | ||||||
Equity instruments | 4,151,317 | 6,279,410 | ||||||
Of which: | ||||||||
Bank | 8,800 | 1,193,790 | ||||||
Abbey | 3,995,291 | 4,975,258 | ||||||
Short sales: | ||||||||
Debt instruments | 1,842,729 | 4,051,078 | ||||||
Of which: the Bank | 1,721,742 | 3,876,223 | ||||||
Equity instruments | 19,089 | 52,191 | ||||||
11,473,062 | 17,415,800 | |||||||
a) | Breakdown |
Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Financial assets held for trading | 30,582,982 | 26,479,996 | 17,507,585 | |||||||||
Other financial assets at fair value through profit or loss | 7,972,544 | 6,431,197 | 5,291,551 | |||||||||
Loans and receivables | 484,790,338 | 402,917,602 | 346,550,928 | |||||||||
Of which: | ||||||||||||
Disregarding impairment losses | 492,953,782 | 410,527,527 | 353,396,143 | |||||||||
Impairment losses | (8,163,444 | ) | (7,609,925 | ) | (6,845,215 | ) | ||||||
523,345,864 | 435,828,795 | 369,350,064 | ||||||||||
Loans and advances to customers disregarding impairment losses | 531,509,308 | 443,438,720 | 376,195,279 | |||||||||
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b) | Detail |
Millions of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Loan type and status: | ||||||||||||
Commercial credit | 21,565 | 16,931 | 15,772 | |||||||||
Secured loans | 302,361 | 255,041 | 221,619 | |||||||||
Reverse repurchase agreements | 30,502 | 27,581 | 17,023 | |||||||||
Other term loans | 148,110 | 119,179 | 99,125 | |||||||||
Finance leases | 13,991 | 11,899 | 11,297 | |||||||||
Receivable on demand | 10,367 | 8,452 | 7,151 | |||||||||
Impaired assets | 4,613 | 4,356 | 4,208 | |||||||||
531,509 | 443,439 | 376,195 | ||||||||||
Borrower sector: | ||||||||||||
Public sector — Spain | 5,329 | 5,243 | 5,741 | |||||||||
Public sector — Other countries | 4,970 | 6,608 | 5,714 | |||||||||
Households | 302,451 | 248,615 | 228,690 | |||||||||
Energy | 4,616 | 5,583 | 4,614 | |||||||||
Construction | 19,659 | 13,694 | 12,592 | |||||||||
Manufacturing | 28,682 | 25,649 | 23,430 | |||||||||
Services | 91,592 | 63,585 | 58,257 | |||||||||
Other sectors | 74,210 | 74,462 | 37,157 | |||||||||
531,509 | 443,439 | 376,195 | ||||||||||
Geographical area: | ||||||||||||
Spain | 205,246 | 158,782 | 132,883 | |||||||||
European Union (excluding Spain) | 231,445 | 203,111 | 187,938 | |||||||||
United States and Puerto Rico | 31,385 | 25,884 | 15,237 | |||||||||
Other OECD countries | 6,020 | 3,943 | 3,236 | |||||||||
Latin America | 54,274 | 49,227 | 34,569 | |||||||||
Rest of the world | 3,139 | 2,492 | 2,332 | |||||||||
531,509 | 443,439 | 376,195 | ||||||||||
Interest rate formula: | ||||||||||||
Fixed interest rate | 178,423 | 143,316 | 111,195 | |||||||||
Floating rate | 353,086 | 300,123 | 265,000 | |||||||||
531,509 | 443,439 | 376,195 | ||||||||||
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c) | Impairment losses |
Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Balance at beginning of year | 7,756,675 | 6,997,428 | 5,021,453 | |||||||||
Impairment losses charged to income for the year: | 3,035,234 | 2,234,194 | 1,999,133 | |||||||||
Of which: | ||||||||||||
Individually assessed | 2,584,434 | 1,874,413 | 1,582,797 | |||||||||
Collectively assessed | 1,151,142 | 636,844 | 1,071,489 | |||||||||
Impairment losses reversed with a credit to income | (700,342 | ) | (277,063 | ) | (655,153 | ) | ||||||
Inclusion of entities in the Group in the year | 164,530 | 4,006 | 1,046,014 | |||||||||
Write-off of impaired balances against recorded impairment allowance | (2,369,865 | ) | (1,519,494 | ) | (1,025,428 | ) | ||||||
Exchange differences and other changes | (260,800 | ) | 267,082 | (172,937 | ) | |||||||
Transfers between allowances | (37,646 | ) | (226,541 | ) | 129,193 | |||||||
Balance at end of year | 8,288,128 | 7,756,675 | 6,997,428 | |||||||||
Of which: | ||||||||||||
By method of assessment: | ||||||||||||
Individually assessed | 3,190,220 | 3,520,985 | 3,312,828 | |||||||||
Of which: country risk (Note 2-g) | 159,024 | 281,389 | 83,280 | |||||||||
Of which: on loans and advances to credit institutions (Note 6) | 12,727 | 36,046 | 53,879 | |||||||||
Of which: on other financial assets (Note 24) | 111,957 | 110,704 | 98,334 | |||||||||
Collectively assessed | 5,097,908 | 4,235,690 | 3,684,600 | |||||||||
By geographical location of risk: | ||||||||||||
Spain | 4,318,320 | 3,664,349 | 3,340,017 | |||||||||
Rest of Europe | 2,358,448 | 2,153,620 | 2,002,049 | |||||||||
Americas | 1,611,360 | 1,938,706 | 1,655,362 |
d) | Impaired assets |
Millions of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Balance at beginning of year | 4,356 | 4,208 | 3,567 | |||||||||
Net additions | 2,723 | 1,356 | 1,766 | |||||||||
Written-off assets | (2,370 | ) | (1,519 | ) | (1,025 | ) | ||||||
Exchange differences and other | (96 | ) | 311 | (100 | ) | |||||||
Balance at end of year | 4,613 | 4,356 | 4,208 | |||||||||
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Millions of Euros | ||||||||||||||||||||||||||||
With no | ||||||||||||||||||||||||||||
Past-Due | ||||||||||||||||||||||||||||
Balances or | ||||||||||||||||||||||||||||
Less than | With Balances Past Due by | |||||||||||||||||||||||||||
3 Months | 3 to 6 | 6 to 12 | 12 to 18 | 18 to 24 | More than | |||||||||||||||||||||||
Past Due | Months | Months | Months | Months | 24 Months | Total | ||||||||||||||||||||||
Spain | 159 | 491 | 210 | 370 | 73 | 98 | 1,401 | |||||||||||||||||||||
European Union (excluding Spain) | 15 | 515 | 275 | 1,060 | 87 | 173 | 2,125 | |||||||||||||||||||||
United States and Puerto Rico | — | 118 | 8 | 41 | 3 | 15 | 185 | |||||||||||||||||||||
Other OECD countries | 4 | 19 | 21 | 4 | 2 | 83 | 133 | |||||||||||||||||||||
Latin America | 40 | 180 | 177 | 103 | 10 | 252 | 762 | |||||||||||||||||||||
Rest of the world | 5 | — | — | — | — | 2 | 7 | |||||||||||||||||||||
223 | 1,323 | 691 | 1,578 | 175 | 623 | 4,613 | ||||||||||||||||||||||
e) | Securitization |
Millions of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Derecognized | 4,901 | 6,065 | 8,254 | |||||||||
Of which: mortgage-backed securities | 2,981 | 2,897 | 3,947 | |||||||||
Retained on the balance sheet | 59,426 | 46,523 | 36,410 | |||||||||
Of which: mortgage-backed securities | 36,363 | 33,085 | 26,246 | |||||||||
Total | 64,327 | 52,588 | 44,664 | |||||||||
Thousands of Euros | ||||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||
Fair value hedges | 2,866,213 | (3,340,480 | ) | 3,757,503 | (1,710,911 | ) | 3,763,931 | (2,770,069 | ) | |||||||||||||||
Cash flow hedges | 98,220 | (132,658 | ) | 368,601 | (344,717 | ) | 61,005 | (6,799 | ) | |||||||||||||||
Of which: Recognized in equity (Note 29) | — | (49,252 | ) | — | (70,406 | ) | — | 1,787 | ||||||||||||||||
Hedges of net investments in foreign operations | 23,531 | (20,711 | ) | — | (255,101 | ) | — | (118,453 | ) | |||||||||||||||
2,987,964 | (3,493,849 | ) | 4,126,104 | (2,310,729 | ) | 3,824,936 | (2,895,321 | ) | ||||||||||||||||
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Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Equity instruments | ||||||||||||
Auna (Note 8) | — | — | 1,814,418 | |||||||||
— | — | 1,814,418 | ||||||||||
Tangible assets: | ||||||||||||
Foreclosed assets | 265,311 | 271,574 | 274,779 | |||||||||
Assets recovered from finance leases | 13,528 | 20,785 | 7,967 | |||||||||
Other assets | 48,545 | 43,965 | — | |||||||||
327,384 | 336,324 | 2,097,164 | ||||||||||
a) | Breakdown |
Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Cepsa | 2,291,599 | 2,619,264 | 2,281,827 | |||||||||
Sovereign | 2,246,824 | — | — | |||||||||
Attijariwafa Bank Société Anonyme | 177,048 | 166,225 | 151,386 | |||||||||
Vaporeón, S.L. | 35,985 | — | — | |||||||||
Abbey companies | 3,531 | 34,103 | 35,439 | |||||||||
Unión Fenosa | — | — | 1,007,328 | |||||||||
Other companies | 251,122 | 211,890 | 271,584 | |||||||||
5,006,109 | 3,031,482 | 3,747,564 | ||||||||||
Of which: | ||||||||||||
Euros | 2,544,864 | 2,793,030 | 3,529,075 | |||||||||
Listed | 4,715,471 | 2,785,489 | 3,440,541 | |||||||||
Goodwill | 1,502,441 | 664,768 | 911,242 | |||||||||
Of which: | ||||||||||||
Cepsa | 833,241 | 650,949 | 650,949 | |||||||||
Unión Fenosa | — | — | 250,260 | |||||||||
Sovereign | 653,946 | — | — |
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b) | Changes |
Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Balance at beginning of year | 3,031,482 | 3,747,564 | 3,478,612 | |||||||||
Inclusion of entities in the Group | — | — | 35,439 | |||||||||
Acquisitions and capital increases (Note 3) | 2,618,196 | 18,470 | 14,650 | |||||||||
Of which: Sovereign | 2,299,893 | — | — | |||||||||
Disposals and capital reductions (Note 3) | (753,071 | ) | (1,168,585 | ) | (54,894 | ) | ||||||
Of which: Unión Fenosa | — | (1,083,305 | ) | — | ||||||||
Cepsa | (711,393 | ) | — | — | ||||||||
Effect of equity accounting | 426,921 | 619,157 | 449,036 | |||||||||
Dividends paid | (164,606 | ) | (181,179 | ) | (176,404 | ) | ||||||
Change in consolidation method | (84,503 | ) | (39,608 | ) | (14,054 | ) | ||||||
Exchange differences and other changes | (63,966 | ) | 27,833 | 13,311 | ||||||||
Transfer | (4,344 | ) | 7,830 | 1,868 | ||||||||
Balance at end of year | 5,006,109 | 3,031,482 | 3,747,564 | |||||||||
c) | Impairment losses |
d) | Other disclosures |
Millions | ||||
of Euros | ||||
2006 | ||||
Total assets | 91,987 | |||
Total liabilities | (78,869 | ) | ||
Minority interests | (203 | ) | ||
Net assets | 12,915 | |||
Group’s share of the net assets of associates | 3,504 | |||
Goodwill | 1,502 | |||
Total Group share | 5,006 | |||
Total income | 16,195 | |||
Total profit | 1,237 | |||
Group’s share of the profit of associates | 427 | |||
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Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Assets relating to insurance contracts covering post-employment benefit plan obligations: | ||||||||||||
Bank | 2,272,786 | 2,320,512 | 2,366,797 | |||||||||
Banesto | 274,400 | 285,573 | 297,737 | |||||||||
Other Spanish companies | 34,442 | 35,526 | 38,001 | |||||||||
Assets relating to insurance contracts covering other similar obligations: | ||||||||||||
Bank | 18,713 | 29,576 | 45,001 | |||||||||
Other Spanish companies | 4,194 | 5,178 | 6,280 | |||||||||
2,604,535 | 2,676,365 | 2,753,816 | ||||||||||
Thousands of Euros | ||||||||||||||||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||||||||||||||
Direct | Direct | Direct | ||||||||||||||||||||||||||||||||||
Insurance | Insurance | Insurance | ||||||||||||||||||||||||||||||||||
and | Total | and | Total | and | Total | |||||||||||||||||||||||||||||||
Reinsurance | Reinsurance | (Balance | Reinsurance | Reinsurance | (Balance | Reinsurance | Reinsurance | (Balance | ||||||||||||||||||||||||||||
Technical Provisions for: | Assumed | Ceded | Payable) | Assumed | Ceded | Payable) | Assumed | Ceded | Payable) | |||||||||||||||||||||||||||
Unearned premiums and unexpired risks | 172,226 | (78,340 | ) | 93,886 | 119,114 | (39,376 | ) | 79,738 | 68,620 | (13,840 | ) | 54,780 | ||||||||||||||||||||||||
Life insurance: | ||||||||||||||||||||||||||||||||||||
Unearned premiums and unexpired risks | 119,867 | (11,031 | ) | 108,836 | 113,381 | (31,615 | ) | 81,766 | 79,477 | (17,344 | ) | 62,133 | ||||||||||||||||||||||||
Mathematical provisions | 3,049,875 | (10,496 | ) | 3,039,379 | 28,523,561 | (2,200,524 | ) | 26,323,037 | 28,795,411 | (2,959,745 | ) | 25,835,666 | ||||||||||||||||||||||||
Claims outstanding | 162,484 | (37,362 | ) | 125,122 | 350,865 | (15,798 | ) | 335,067 | 241,135 | (15,286 | ) | 225,849 | ||||||||||||||||||||||||
Bonuses and rebates | 11,414 | (5,399 | ) | 6,015 | 579,895 | (5,246 | ) | 574,649 | 486,302 | (263 | ) | 486,039 | ||||||||||||||||||||||||
Equalization | — | — | — | 25 | — | 25 | 25 | — | 25 | |||||||||||||||||||||||||||
Life insurance policies where the investment risk is borne by the policyholders | 7,175,926 | (118,993 | ) | 7,056,933 | 14,855,872 | (94,732 | ) | 14,761,140 | 12,570,446 | (38,947 | ) | 12,531,499 | ||||||||||||||||||||||||
Other technical provisions | 12,466 | (252 | ) | 12,214 | 129,587 | (410 | ) | 129,177 | 103,360 | (379 | ) | 102,981 | ||||||||||||||||||||||||
10,704,258 | (261,873 | ) | 10,442,385 | 44,672,300 | (2,387,701 | ) | 42,284,599 | 42,344,776 | (3,045,804 | ) | 39,298,972 | |||||||||||||||||||||||||
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a) | Changes | ||
The changes in “Tangible assets” in the consolidated balance sheets were as follows: |
Thousands of Euros | ||||||||||||||||
Property, | Other Assets | |||||||||||||||
Plant and | Leased out under | |||||||||||||||
Equipment | an Operating | |||||||||||||||
for Own Use | Investment Property | Lease | Total | |||||||||||||
Cost- | ||||||||||||||||
Balances at January 1, 2004 | 7,538,280 | 633,860 | 918,816 | 9,090,956 | ||||||||||||
Additions/Derecognitions (net) due to change in the scope of consolidation | 1,525,304 | 1,707,680 | 5,339,416 | 8,572,400 | ||||||||||||
Additions/Disposals (net) | 565,715 | (192,699 | ) | (831,531 | ) | (458,515 | ) | |||||||||
Exchange differences (net) | (87,910 | ) | — | (27,923 | ) | (115,833 | ) | |||||||||
Balances at December 31, 2004 | 9,541,389 | 2,148,841 | 5,398,778 | 17,089,008 | ||||||||||||
Additions/Disposals (net) | 315,027 | (1,480,536 | ) (*) | 441,163 | (724,346 | ) | ||||||||||
Exchange differences (net) | 561,772 | 49,393 | 133,883 | 745,048 | ||||||||||||
Balances at December 31, 2005 | 10,418,188 | 717,698 | 5,973,824 | 17,109,710 | ||||||||||||
Additions/Derecognitions (net) due to change in the scope of consolidation | (3,938 | ) | (557,549 | ) | 180,492 | (380,995 | ) | |||||||||
Additions/Disposals (net) | (358,066 | ) | 240,900 | 366,485 | 249,319 | |||||||||||
Transfers and other changes | (32,271 | ) | — | — | (32,271 | ) | ||||||||||
Exchange differences | (182,605 | ) | (55 | ) | 97,526 | (85,134 | ) | |||||||||
Balances at December 31, 2006 | 9,841,308 | 400,994 | 6,618,327 | 16,860,629 | ||||||||||||
Accumulated depreciation: | ||||||||||||||||
Balances at January 1, 2004 | (3,142,055 | ) | (72,792 | ) | (429,432 | ) | (3,644,279 | ) | ||||||||
Additions/Derecognitions (net) due to change in the scope of consolidation | (1,096,929 | ) | (386 | ) | (1,750,180 | ) | (2,847,495 | ) | ||||||||
Disposals | 56,451 | 30,819 | 458,615 | 545,885 | ||||||||||||
Charge for the year | (421,143 | ) | (648 | ) | (66,113 | ) | (487,904 | ) | ||||||||
Exchange differences and other items | 31,208 | 9,989 | 397 | 41,594 | ||||||||||||
Balances at December 31, 2004 | (4,572,468 | ) | (33,018 | ) | (1,786,713 | ) | (6,392,199 | ) | ||||||||
Disposals | 224,135 | 1,588 | 57,969 | 283,692 | ||||||||||||
Charge for the year | (608,252 | ) | (2,007 | ) | (9,592 | ) | (619,851 | ) | ||||||||
Exchange differences and other items | (243,519 | ) | (5,745 | ) | (44,714 | ) | (293,978 | ) | ||||||||
Balances at December 31, 2005 | (5,200,104 | ) | (39,182 | ) | (1,783,050 | ) | (7,022,336 | ) | ||||||||
Additions/Derecognitions (net) due to change in the scope of consolidation | 8,421 | 24,743 | (35,748 | ) | (2,584 | ) | ||||||||||
Disposals | 1,174,842 | 1,314 | 274,008 | 1,450,164 | ||||||||||||
Transfers and other changes | 9,904 | — | (508,549 | ) | (498,645 | ) | ||||||||||
Charge for the year | (620,415 | ) | (2,876 | ) | (7,526 | ) | (630,817 | ) | ||||||||
Exchange differences | 81,301 | 2 | (33,805 | ) | 47,498 | |||||||||||
Balances at December 31, 2006 | (4,546,051 | ) | (15,999 | ) | (2,094,670 | ) | (6,656,720 | ) | ||||||||
Impairment losses: | ||||||||||||||||
Balances at January 1, 2004 | (35,201 | ) | — | — | (35,201 | ) | ||||||||||
Impairment charge for the year | 491 | — | — | 491 | ||||||||||||
Additions/Derecognitions (net) due to change in the scope of consolidation | — | — | (67,927 | ) | (67,927 | ) | ||||||||||
Exchange differences | (8,979 | ) | — | — | (8,979 | ) | ||||||||||
Balances at December 31, 2004 | (43,689 | ) | — | (67,927 | ) | (111,616 | ) | |||||||||
Impairment charge for the year | (12,485 | ) | (2,564 | ) | (63 | ) | (15,112 | ) | ||||||||
Exchange differences | 43,022 | (8,504 | ) | (1,957 | ) | 32,561 | ||||||||||
Balances at December 31, 2005 | (13,152 | ) | (11,068 | ) | (69,947 | ) | (94,167 | ) | ||||||||
Additions/Derecognitions (net) due to change in the scope of consolidation | 755 | — | — | 755 | ||||||||||||
Net impairment charge | (7,062 | ) | 634 | — | (6,428 | ) | ||||||||||
Exchange differences and other changes | 8,379 | (14 | ) | (1,438 | ) | 6,927 | ||||||||||
Balances at December 31, 2006 | (11,080 | ) | (10,448 | ) | (71,385 | ) | (92,913 | ) | ||||||||
Tangible assets, net | ||||||||||||||||
Balances at December 31, 2004 | 4,925,231 | 2,115,823 | 3,544,139 | 10,585,193 | ||||||||||||
Balances at December 31, 2005 | 5,204,931 | 667,449 | 4,120,827 | 9,993,207 | ||||||||||||
Balances at December 31, 2006 | 5,284,177 | 374,547 | 4,452,272 | 10,110,996 |
(*) | Mainly Abbey. |
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Table of Contents
b) | Property, plant and equipment for own use | |
The detail, by class of asset, of the balance of “Property, plant and equipment for own use” in the consolidated balance sheets is as follows: |
Millions of Euros | ||||||||||||||||
Accumulated | Impairment | Net | ||||||||||||||
Cost | Depreciation | Losses | Balance | |||||||||||||
Land and buildings | 3,521 | (727 | ) | (42 | ) | 2,752 | ||||||||||
IT equipment and fixtures | 2,329 | (1,788 | ) | — | 541 | |||||||||||
Furniture and vehicles | 3,300 | (1,936 | ) | (2 | ) | 1,362 | ||||||||||
Construction in progress and other items | 391 | (121 | ) | — | 270 | |||||||||||
Balances at December 31, 2004 | 9,541 | (4,572 | ) | (44 | ) | 4,925 | ||||||||||
Land and buildings | 3,835 | (851 | ) | (13 | ) | 2,971 | ||||||||||
IT equipment and fixtures | 2,619 | (1,957 | ) | — | 662 | |||||||||||
Furniture and vehicles | 3,786 | (2,275 | ) | — | 1,511 | |||||||||||
Construction in progress and other items | 178 | (117 | ) | — | 61 | |||||||||||
Balances at December 31, 2005 | 10,418 | (5,200 | ) | (13 | ) | 5,205 | ||||||||||
Land and buildings | 3,704 | (848 | ) | (11 | ) | 2,845 | ||||||||||
IT equipment and fixtures | 2,059 | (1,495 | ) | — | 564 | |||||||||||
Furniture and vehicles | 3,838 | (2,114 | ) | — | 1,724 | |||||||||||
Construction in progress and other items | 240 | (89 | ) | — | 151 | |||||||||||
Balances at December 31, 2006 | 9,841 | (4,546 | ) | (11 | ) | 5,284 | ||||||||||
– | Approximately€5,272 million (December 31, 2005:€5,171 million; December 31, 2004:€6,585 million) relating to property, plant and equipment owned by Group entities and branches located abroad. | ||
– | Approximately€183 million (December 31, 2005:€83 million; December 31, 2004:€41 million) relating to property, plant and equipment being acquired under finance leases by the consolidated entities (Note 2-l discloses additional information on these items). |
c) | Investment property |
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Table of Contents
a) | Goodwill | ||
The breakdown of “Goodwill,” based on the companies giving rise thereto (Note 3-c), is as follows: |
Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Abbey (UK) | 8,920,188 | 8,740,560 | 10,199,111 | |||||||||
Totta Group (Portugal) | 1,640,746 | 1,639,560 | 1,639,510 | |||||||||
CC Holding (AKB Germany) | 824,483 | 824,483 | 824,483 | |||||||||
Banco Santander Chile | 717,957 | 908,879 | 723,520 | |||||||||
Grupo Financiero Santander Serfin (Mexico) | 560,327 | 633,638 | 523,641 | |||||||||
Meridional Group (Brazil) | 458,202 | 469,372 | 352,785 | |||||||||
Drive Group | 412,986 | — | — | |||||||||
Banesto | 373,562 | 380,008 | 379,943 | |||||||||
Santander Consumer Bank (Norway) | 116,568 | 120,262 | 121,228 | |||||||||
Finconsumo (Italy) | 105,921 | 105,921 | 105,921 | |||||||||
Interbanco, S.A. | 89,743 | — | — | |||||||||
Bansander Leasing, Corp. (Island Finance) | 80,873 | — | — | |||||||||
Banco Santander International | 42,905 | 47,899 | 41,485 | |||||||||
Unifin | 37,490 | — | — | |||||||||
PTF (Poland) | 22,471 | 22,303 | 69,326 | |||||||||
Other companies | 108,313 | 125,360 | 109,588 | |||||||||
14,512,735 | 14,018,245 | 15,090,541 | ||||||||||
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Millions of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Balance at beginning of year | 14,018 | 15,090 | 4,788 | |||||||||
Additions (Note 3) | 650 | 62 | 10,559 | |||||||||
Of which: | ||||||||||||
Drive Group | 422 | — | — | |||||||||
Santander Financial Services Inc. (Island Finance) | 96 | — | — | |||||||||
Interbanco, S.A. | 90 | — | — | |||||||||
Unifin | 37 | — | — | |||||||||
Santander BanCorp | — | 11 | — | |||||||||
Abbey | — | — | 10,264 | |||||||||
Santander Consumer Bank AS (by Bankia) | — | 45 | — | |||||||||
Santander Consumer Bank AS (by Elcon) | — | — | 120 | |||||||||
PTF | — | — | 59 | |||||||||
Finconsumo | — | — | 55 | |||||||||
Definitive assessment of acquisitions (transfer to other intangible assets) | — | (1,856 | ) | — | ||||||||
Of which: | ||||||||||||
Abbey | — | (1,753 | ) | — | ||||||||
Santander Consumer Bank AS (by Elcon) | — | (28 | ) | — | ||||||||
Santander Consumer Bank AS (by Bankia) | — | (22 | ) | — | ||||||||
PTF | — | (52 | ) | — | ||||||||
Impairment losses | (13 | ) | — | (138 | ) | |||||||
Of which: | ||||||||||||
Cambios Sol, S.A. | (7 | ) | — | — | ||||||||
Santander Financial Services Inc. (Island Finance) | (6 | ) | — | — | ||||||||
Banco de Venezuela | — | — | (72 | ) | ||||||||
Admón. Fondo Pensiones y Cesantías, S.A. | — | — | (61 | ) | ||||||||
Disposals | (76 | ) | (2 | ) | — | |||||||
Of which: | ||||||||||||
Banco Santander Chile | (67 | ) | — | — | ||||||||
Exchange differences and other items | (66 | ) | 724 | (119 | ) | |||||||
Balance at end of year | 14,513 | 14,018 | 15,090 | |||||||||
b) | Other intangible assets | |
The breakdown of the balance of “Other intangible assets” is as follows: |
Estimated | Thousands of Euros | |||||||||||||||
Useful Life | 2006 | 2005 | 2004 | |||||||||||||
With indefinite useful life: | ||||||||||||||||
Brand name | — | 487,177 | 459,680 | — | ||||||||||||
Of which: Abbey | — | 469,099 | 459,680 | — | ||||||||||||
With finite useful life: | ||||||||||||||||
Customer deposits (Abbey) | 10 years | 1,283,693 | 1,257,843 | — | ||||||||||||
Credit cards (Abbey) | 5 years | 35,741 | 35,021 | — | ||||||||||||
IT developments | 3 years | 1,309,678 | 1,207,606 | 815,949 | ||||||||||||
Other assets | — | 323,026 | 163,199 | 58,837 | ||||||||||||
Accumulated amortization | (980,530 | ) | (704,345 | ) | (394,132 | ) | ||||||||||
Impairment losses | (14,679 | ) | (207,978 | ) | (67,921 | ) | ||||||||||
2,444,106 | 2,211,026 | 412,733 | ||||||||||||||
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Millions of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Balance at beginning of year | 2,211 | 413 | 397 | |||||||||
Additions/Disposals (net) | 757 | 403 | 370 | |||||||||
Exchange differences and other changes (net) | (4 | ) | 67 | (8 | ) | |||||||
Impairment losses | — | (131 | ) | — | ||||||||
Transfers from “Goodwill” | — | 1,856 | — | |||||||||
Amortization | (520 | ) | (397 | ) | (346 | ) | ||||||
Balance at end of year | 2,444 | 2,211 | 413 | |||||||||
Thousands of Euros | ||||||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||||||
2006 | 2005 | 2004 | 2006 | 2005 | 2004 | |||||||||||||||||||
Prepayments (*) | 521,246 | 1,792,886 | 1,625,349 | — | — | — | ||||||||||||||||||
Accrued expenses | — | — | — | (2,197,921 | ) | (2,012,861 | ) | (3,463,095 | ) | |||||||||||||||
Other | 1,060,597 | 1,176,333 | 1,404,379 | (801,159 | ) | (1,035,872 | ) | (918,939 | ) | |||||||||||||||
1,581,843 | 2,969,219 | 3,029,728 | (2,999,080 | ) | (3,048,733 | ) | (4,382,034 | ) | ||||||||||||||||
(*) | Of the amount relating to 2005,€1,160 million relate to Abbey’s insurance business. |
Thousands of Euros | ||||||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||||||
2006 | 2005 | 2004 | 2006 | 2005 | 2004 | |||||||||||||||||||
Transactions in transit | 163,655 | 122,316 | 38,142 | (311,283 | ) | (469,211 | ) | (12,197 | ) | |||||||||||||||
Other | 1,755,687 | 1,764,752 | 3,284,368 | (3,147,457 | ) | (1,043,697 | ) | (4,105,965 | ) | |||||||||||||||
1,919,342 | 1,887,068 | 3,322,510 | (3,458,740 | ) | (1,512,908 | ) | (4,118,162 | ) | ||||||||||||||||
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Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Classification: | ||||||||||||
Financial assets held for trading | 39,690,713 | 31,962,919 | 25,224,743 | |||||||||
Financial liabilities at amortized cost | 73,345,224 | 116,659,488 | 58,525,596 | |||||||||
Of which: | ||||||||||||
Deposits from central banks | 16,529,557 | 22,431,194 | 8,067,860 | |||||||||
Deposits from credit institutions | 56,815,667 | 94,228,294 | 50,457,736 | |||||||||
113,035,937 | 148,622,407 | 83,750,339 | ||||||||||
Type: | ||||||||||||
Reciprocal accounts | 411,314 | 190,885 | 39,162 | |||||||||
Time deposits | 63,589,635 | 47,224,471 | 42,459,721 | |||||||||
Other demand accounts | 2,225,037 | 7,383,695 | 4,191,073 | |||||||||
Repurchase agreements | 45,417,839 | 91,399,196 | 33,920,297 | |||||||||
Central bank credit account drawdowns | 1,348,815 | 2,369,406 | 3,107,895 | |||||||||
Other financial liabilities associated with transferred financial assets | 8,445 | 7,170 | — | |||||||||
Hybrid financial liabilities | 34,852 | 47,584 | 32,191 | |||||||||
113,035,937 | 148,622,407 | 83,750,339 | ||||||||||
Currency: | ||||||||||||
Euro | 43,828,306 | 79,664,528 | 35,007,335 | |||||||||
Pound sterling | 24,543,241 | 26,488,413 | 18,199,276 | |||||||||
US dollar | 27,883,219 | 20,307,158 | 15,516,012 | |||||||||
Other currencies | 16,781,171 | 22,162,308 | 15,027,716 | |||||||||
113,035,937 | 148,622,407 | 83,750,339 | ||||||||||
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Table of Contents
21. | Customer deposits |
Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Classification: | ||||||||||||
Financial liabilities held for trading | 16,572,444 | 14,038,543 | 20,541,225 | |||||||||
Other financial liabilities at fair value through profit or loss | 273,079 | — | — | |||||||||
Financial liabilities at amortized cost | 314,377,078 | 291,726,737 | 262,670,391 | |||||||||
331,222,601 | 305,765,280 | 283,211,616 | ||||||||||
Geographical area | ||||||||||||
Spain | 120,485,991 | 107,117,818 | 102,249,913 | |||||||||
European Union (excluding Spain) | 136,730,342 | 133,274,597 | 135,209,492 | |||||||||
United States and Puerto Rico | 7,512,963 | 7,578,598 | 6,037,483 | |||||||||
Other OECD countries | 79,117 | 106,151 | 74,859 | |||||||||
Latin America | 64,984,913 | 56,395,157 | 38,499,807 | |||||||||
Rest of the world | 1,429,275 | 1,292,959 | 1,140,062 | |||||||||
331,222,601 | 305,765,280 | 283,211,616 | ||||||||||
Type: | ||||||||||||
Demand deposits | ||||||||||||
Current accounts | 89,151,030 | 80,631,188 | 67,714,687 | |||||||||
Savings accounts | 93,717,633 | 90,471,827 | 78,849,072 | |||||||||
Other demand deposits | 2,025,095 | 1,747,720 | 3,720,956 | |||||||||
Time deposits- | ||||||||||||
Fixed-term deposits | 86,345,788 | 77,166,817 | 80,052,445 | |||||||||
Home-purchase savings accounts | 324,262 | 269,706 | 289,779 | |||||||||
Discount deposits | 7,132,341 | 16,128,577 | 10,163,257 | |||||||||
Funds received under financial asset transfers | — | 1 | — | |||||||||
Hybrid financial liabilities | 4,994,535 | 4,141,071 | 1,873,863 | |||||||||
Other financial liabilities associated with transferred financial assets | — | 20,346 | — | |||||||||
Other time deposits | 470,140 | 351,620 | 498,961 | |||||||||
Notice deposits | 45,849 | 33,713 | 24,911 | |||||||||
Repurchase agreements | 47,015,928 | 34,802,694 | 40,023,685 | |||||||||
331,222,601 | 305,765,280 | 283,211,616 | ||||||||||
a) | Breakdown | ||
The breakdown, by classification and type, of the balances of “Marketable debt securities” is as follows: |
Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Classification: | ||||||||||||
Financial liabilities held for trading | 17,522,108 | 19,821,087 | 11,791,579 | |||||||||
Other financial liabilities at fair value through profit or loss | 12,138,249 | 11,809,874 | 11,243,800 | |||||||||
Financial liabilities at amortized cost | 174,409,033 | 117,209,385 | �� | 90,803,224 | ||||||||
204,069,390 | 148,840,346 | 113,838,603 | ||||||||||
Type: | ||||||||||||
Bonds and debentures outstanding | 168,661,356 | 123,566,864 | 83,020,963 | |||||||||
Notes and other securities | 35,408,034 | 25,273,482 | 30,817,640 | |||||||||
204,069,390 | 148,840,346 | 113,838,603 | ||||||||||
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b) | Bonds and debentures outstanding | |
The breakdown, by currency of issue, of the balance of this account is as follows: |
December 31, 2006 | ||||||||||||||||||||
Outstanding | ||||||||||||||||||||
Issue Amount | ||||||||||||||||||||
in Foreign | Annual | |||||||||||||||||||
Millions of Euros | Currency | Interest | ||||||||||||||||||
Currency of Issue | 2006 | 2005 | 2004 | (Millions) | Rate (%) | |||||||||||||||
Euro | 112,622 | 78,499 | 52,819 | 112,622 | 3.82 | |||||||||||||||
US dollar | 30,001 | 20,429 | 14,372 | 39,511 | 5.30 | |||||||||||||||
Pound sterling | 21,128 | 19,274 | 10,798 | 14,187 | 5.21 | |||||||||||||||
Chilean peso | 1,725 | 1,701 | 2,142 | 1,207,719 | 5.09 | |||||||||||||||
Other currencies | 3,185 | 3,664 | 2,890 | — | — | |||||||||||||||
Balance at end of year | 168,661 | 123,567 | 83,021 | |||||||||||||||||
F-76
Table of Contents
Millions of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Balance at beginning of year | 123,567 | 83,021 | 30,355 | |||||||||
Net inclusion of entities in the Group | 1,895 | — | 39,658 | |||||||||
Issues | 76,956 | 52,670 | 19,477 | |||||||||
Of which: | ||||||||||||
Banco Santander Central Hispano, S.A.- | ||||||||||||
Non-convertible debentures February and December — floating rate | 4,374 | — | 3,500 | |||||||||
Mortgage bonds — fixed rate | 7,500 | 7,000 | 2,000 | |||||||||
Banesto- | ||||||||||||
Mortgage bonds — fixed rate | 3,000 | 4,000 | 3,750 | |||||||||
Bonds | 5,547 | 3,750 | 3,000 | |||||||||
Santander International Debt, S.A., Sole-Shareholder Company: | ||||||||||||
Bonds — floating rate | 11,709 | 10,169 | 3,891 | |||||||||
Abbey- | ||||||||||||
Holmes Financing Series 10 | 5,851 | — | — | |||||||||
Holmes Master Issuer Limited | 5,153 | — | — | |||||||||
Holmes Financing Series 9 | — | 5,540 | — | |||||||||
Bonds in pounds sterling | 6,608 | 3,729 | — | |||||||||
Bonds in other currencies | 7,284 | 9,156 | — | |||||||||
Santander US Debt, S.A., Sole-Shareholder Company:- | ||||||||||||
Debentures — floating rate | 3,785 | 5,086 | — | |||||||||
CC-Bank AG- | ||||||||||||
Asset-backed bonds | 1,769 | 1,668 | — | |||||||||
Banco Santander Totta, S.A.- | ||||||||||||
Asset-backed bonds | 3,808 | 736 | — | |||||||||
FTA Santander Consumer Spain Auto 06- | ||||||||||||
Asset-backed bonds | 1,350 | — | — | |||||||||
Redemptions | (30,510 | ) | (14,269 | ) | (5,894 | ) | ||||||
Of which: | ||||||||||||
Banco Santander Central Hispano, S.A. | (3,038 | ) | (1,000 | ) | (1,744 | ) | ||||||
Banesto | (2,037 | ) | (2,000 | ) | (1,000 | ) | ||||||
Finconsumo | (179 | ) | (102 | ) | (300 | ) | ||||||
Abbey | (21,210 | ) | (7,503 | ) | — | |||||||
Exchange differences | (1,557 | ) | 958 | (270 | ) | |||||||
Other changes | (1,690 | ) | 1,187 | (305 | ) | |||||||
Balance at end of year | 168,661 | 123,567 | 83,021 | |||||||||
c) | Notes and other securities | |
These notes were basically issued by Banco Santander Central Hispano, S.A., Abbey National North America LLC, Abbey National Treasury Services, plc, Santander Central Hispano Finance (Delaware), Inc., Banco Santander, S.A., Institución de Banca Múltiple, Grupo Financiero Santander, Santander Consumer Finance, S.A. and Banco Santander Totta, S.A. |
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a) | Breakdown | ||
The detail, by currency of issue, of the balance of “Subordinated liabilities” is as follows: |
December 31, 2006 | ||||||||||||||||||||
Outstanding | ||||||||||||||||||||
Issue Amount | Annual | |||||||||||||||||||
Thousands of Euros | in Foreign | Interest Rate | ||||||||||||||||||
Currency of Issue | 2006 | 2005 | 2004 | Currency (Millions) | (%) | |||||||||||||||
Euro | 16,309,049 | 14,706,164 | 13,407,374 | 16,309 | 4.72 | |||||||||||||||
US dollar | 6,898,455 | 7,843,846 | 9,145,510 | 9,085 | 7.18 | |||||||||||||||
Pound sterling | 5,631,867 | 5,761,408 | 4,509,605 | 3,782 | 6.92 | |||||||||||||||
Other currencies | 1,583,450 | 452,038 | 407,683 | — | ||||||||||||||||
Balance at end of year | 30,422,821 | 28,763,456 | 27,470,172 | |||||||||||||||||
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b) | Changes | |
The changes in the balance of “Subordinated liabilities” were as follows: |
Millions of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Balance at beginning of year | 28,763 | 27,470 | 12,510 | |||||||||
Net inclusion of entities in the Group | (459 | ) | — | 10,622 | ||||||||
Of which: | ||||||||||||
Scottish Mutual Assurance, plc | (292 | ) | — | — | ||||||||
Issues | 5,881 | 2,507 | 5,284 | |||||||||
Of which: | ||||||||||||
Santander Consumer Finance, S.A.- | ||||||||||||
September 2006 | 500 | — | — | |||||||||
Banco do Estado de São Paulo, S.A. (Banespa)- | ||||||||||||
July 2016 | 728 | — | — | |||||||||
September 2016 | 267 | — | — | |||||||||
Perpetual | — | 420 | — | |||||||||
Abbey- | ||||||||||||
April 2015 | — | 501 | — | |||||||||
April 2015 | — | 292 | — | |||||||||
Santander Central Hispano Issuances, Ltd.- | ||||||||||||
March 2016 | 1,000 | — | — | |||||||||
May 2018 | 500 | — | — | |||||||||
June 2016 | 987 | — | — | |||||||||
July 2017 | 997 | — | — | |||||||||
September 2019 | — | — | 500 | |||||||||
September 2014 | — | — | 500 | |||||||||
Banesto- | ||||||||||||
March 2016 – floating rate | — | — | 500 | |||||||||
Santander Perpetual, S.A., Sole-Shareholder Company- | ||||||||||||
Perpetual | — | — | 750 | |||||||||
Santander Finance Capital, S.A.- | ||||||||||||
2004 preference shares | — | — | 1,830 | |||||||||
2005 preference shares | — | 1,000 | — | |||||||||
Redemptions | (2,265 | ) | (2,410 | ) | (465 | ) | ||||||
Of which: | ||||||||||||
Abbey | (763 | ) | (551 | ) | — | |||||||
Santander Central Hispano Issuances, Ltd. | (1,369 | ) | (1,189 | ) | (193 | ) | ||||||
Exchange differences | (1,093 | ) | 659 | (369 | ) | |||||||
Other changes | (404 | ) | 537 | (112 | ) | |||||||
Balance at end of year | 30,423 | 28,763 | 27,470 | |||||||||
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c) | Other information | ||
For the purposes of payment priority preference shares are junior to all general creditors and to subordinated deposits. The payment of dividends on these shares, which have no voting rights, is conditional upon the obtainment of sufficient distributable profit and upon the limits imposed by Spanish banking regulations on equity. | |||
The other issues are subordinated and, therefore, rank junior to all general creditors of the issuers. The issues launched by Santander Central Hispano Issuances, Ltd., Santander Central Hispano Financial Services, Ltd., Santander Issuances, S.A., Santander Perpetual, S.A., Sole-Shareholder Company, Santander Finance Capital S.A.U. and Santander Finance Preferred S.A.U. are guaranteed by the Bank or by restricted deposits arranged by the Bank for this purpose. | |||
At December 31, 2006, none of these issues was convertible into Bank shares or granted privileges or rights which, in certain circumstances, make them convertible into shares. Abbey has a GBP 200 million subordinated debt issue which is convertible, at Abbey’s option, into preference shares of Abbey, at a price of GBP 1 per share. Banco Santander, S.A. Institución de Banca Múltiple has two USD 150 million issues of unguaranteed subordinated preference debentures that are voluntarily convertible into ordinary shares of Banco Santander, S.A. Institución de Banca Múltiple, Grupo Financiero Santander. |
Thousands of Euros | ||||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||
Other | Other | Other | Other | Other | Other | |||||||||||||||||||
Financial | Financial | Financial | Financial | Financial | Financial | |||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||
Declared dividends payable | — | — | — | (581,400 | ) | — | (519,107 | ) | ||||||||||||||||
Trade receivables (payables) | 104,281 | (3,070,870 | ) | 808,401 | (2,907,828 | ) | 488,978 | (1,257,047 | ) | |||||||||||||||
Clearing houses | 760,839 | (544,004 | ) | 913,953 | (408,700 | ) | 856,962 | (221,296 | ) | |||||||||||||||
Public agency revenue collection accounts | — | (2,031,137 | ) | — | (1,758,574 | ) | — | (1,549,948 | ) | |||||||||||||||
Factoring accounts payable | — | (284,331 | ) | — | (169,627 | ) | — | (148,409 | ) | |||||||||||||||
Bonds | 3,478,722 | (41,447 | ) | 2,639,426 | (15,988 | ) | 1,990,397 | (18,735 | ) | |||||||||||||||
Unsettled financial transactions | 6,548,625 | (1,978,120 | ) | 3,653,275 | (1,369,389 | ) | 931,941 | (1,166,132 | ) | |||||||||||||||
Other financial assets (liabilities) | 2,182,878 | (4,798,756 | ) | 1,614,388 | (4,081,071 | ) | 727,256 | (982,099 | ) | |||||||||||||||
13,075,345 | (12,748,665 | ) | 9,629,443 | (11,292,577 | ) | 4,995,534 | (5,862,773 | ) | ||||||||||||||||
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Table of Contents
a) | Breakdown | ||
The breakdown of the balance of “Provisions” is as follows: |
Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Provisions for pensions and similar obligations | 14,014,305 | 14,172,961 | 13,441,357 | |||||||||
Provisions for contingent liabilities and commitments (Note 2): | 598,735 | 487,048 | 360,594 | |||||||||
Of which: country risk | 57,216 | 11,529 | 8,096 | |||||||||
Other provisions | 4,613,473 | 5,162,981 | 4,221,973 | |||||||||
Total provisions | 19,226,513 | 19,822,990 | 18,023,924 |
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Table of Contents
b) | Changes | ||
The changes in “Provisions” were as follows: |
Millions of Euros | ||||||||||||||||||||||||||||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||||||||||||||||||||||||||
Contingent | Contingent | Contingent | ||||||||||||||||||||||||||||||||||||||||||||||
Liabilities and | Other | Liabilities and | Other | Liabilities and | Other | |||||||||||||||||||||||||||||||||||||||||||
Pensions | Commitments | Provisions | Total | Pensions | Commitments | Provisions | Total | Pensions | Commitments | Provisions | Total | |||||||||||||||||||||||||||||||||||||
Balances at beginning of year | 14,173 | 487 | 5,163 | 19,823 | 13,441 | 361 | 4,222 | 18,024 | 11,297 | 291 | 3,211 | 14,799 | ||||||||||||||||||||||||||||||||||||
Net inclusion of entities in the Group | — | — | 1 | 1 | (1 | ) | — | — | (1 | ) | 1,734 | — | 1,138 | 2,872 | ||||||||||||||||||||||||||||||||||
Additions charged to income: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense and similar charges (Note 39) | 735 | — | — | 735 | 641 | — | — | 641 | 650 | — | — | 650 | ||||||||||||||||||||||||||||||||||||
Personnel expenses (Note 49) | 223 | — | — | 223 | 246 | — | — | 246 | 96 | — | — | 96 | ||||||||||||||||||||||||||||||||||||
Extraordinary charges | 984 | 96 | (1 | ) | 1,079 | 776 | 20 | 1,018 | 1,814 | 929 | 4 | 175 | 1,108 | |||||||||||||||||||||||||||||||||||
Other additions arising from insurance contracts linked to pensions | (6 | ) | — | — | (6 | ) | (10 | ) | — | — | (10 | ) | (46 | ) | — | — | (46 | ) | ||||||||||||||||||||||||||||||
Payments to pensioners and early retirees with a charge to internal provisions | (1,422 | ) | — | — | (1,422 | ) | (1,258 | ) | — | — | (1,258 | ) | (1,076 | ) | — | — | (1,076 | ) | ||||||||||||||||||||||||||||||
Insurance premiums paid | (2 | ) | — | — | (2 | ) | (8 | ) | — | — | (8 | ) | (4 | ) | — | — | (4 | ) | ||||||||||||||||||||||||||||||
Payments to external funds | (743 | ) | — | — | (743 | ) | (212 | ) | — | — | (212 | ) | (37 | ) | — | — | (37 | ) | ||||||||||||||||||||||||||||||
Amount used | — | — | (982 | ) | (982 | ) | — | (9 | ) | (560 | ) | (569 | ) | — | — | (570 | ) | (570 | ) | |||||||||||||||||||||||||||||
Transfers, exchange differences and other changes | 72 | 16 | 433 | 521 | 558 | 115 | 483 | 1,156 | (102 | ) | 66 | 268 | 232 | |||||||||||||||||||||||||||||||||||
Balances at end of year | 14,014 | 599 | 4,614 | 19,227 | 14,173 | 487 | 5,163 | 19,823 | 13,441 | 361 | 4,222 | 18,024 | ||||||||||||||||||||||||||||||||||||
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Table of Contents
c) | Provisions for pensions and similar obligations | ||
The breakdown of the balance of “Provisions for pensions and similar obligations” is as follows: |
Millions of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Provisions for post-employment plans — Spanish entities | 5,647 | 5,657 | 5,685 | |||||||||
Provisions for other similar obligations — Spanish entities | 4,527 | 4,269 | 4,099 | |||||||||
Of which: early retirements | 4,481 | 4,215 | 4,051 | |||||||||
Provisions for post-employment plans — Abbey | 1,642 | 1,788 | 1,728 | |||||||||
Provisions for post-employment plans and other similar obligations — other foreign subsidiaries | 2,198 | 2,459 | 1,929 | |||||||||
Provisions for pensions and similar obligations | 14,014 | 14,173 | 13,441 | |||||||||
i. Spanish entities — Post-employment plans and other similar obligations |
1. | Valuation method: projected unit credit method, which sees each year of service as giving rise to an additional unit of benefit entitlement and measures each unit separately. | ||
2. | Actuarial assumptions used: unbiased and mutually compatible. Specifically, the most significant actuarial assumptions used in the calculations were as follows: |
Post-Employment Plans | Other Similar Obligations | |||||||||||||||||||||||
2006 | 2005 | 2004 | 2006 | 2005 | 2004 | |||||||||||||||||||
Annual discount rate | 4.0 | % | 4.0 | % | 4.0 | % | 4.0 | % | 4.0 | % | 4.0 | % | ||||||||||||
Mortality tables | GRM/F-95 | GRM/F-95 | GRM/F-95 | GRM/F-95 | GRM/F-95 | GRM/F-95 | ||||||||||||||||||
(PERM/F-2000 | (PERM/F-2000 | (PERM/F-2000 | (PERM/F-2000 | (PERM/F-2000 | (PERM/F-2000 | |||||||||||||||||||
in the case of | in the case of | in the case of | in the case of | in the case of | in the case of | |||||||||||||||||||
Banesto) | Banesto) | Banesto) | Banesto) | Banesto) | Banesto) | |||||||||||||||||||
Cumulative annual CPI growth | 1.5 | % | 1.5 | % | 1.5 | % | 1.5 | % | 1.5 | % | 1.5 | % | ||||||||||||
Annual salary increase rate | 2.50% (2.9% in the | 2.50% (2.9% in the | 2.50% (2.9% in the | n/a | n/a | n/a | ||||||||||||||||||
case of Banesto) | case of Banesto) | case of Banesto) | ||||||||||||||||||||||
Annual social security pension increase rate | 1.5 | % | 1.5 | % | 1.5 | % | n/a | n/a | n/a | |||||||||||||||
Annual benefit increase rate | n/a | n/a | n/a | 0% to 1.5% | 0% to 1.5% | 0% to 1.5% |
3. | The estimated retirement age of each employee is the first at which the employee is entitled to retire or the agreed-upon age, as appropriate. |
F-83
Table of Contents
The fair value of insurance contracts was determined as the present value of the related payment obligations, taking into account the following assumptions: |
Post-Employment Plans | Other Similar Obligations | |||||||||||||||||||||||
2006 | 2005 | 2004 | 2006 | 2005 | 2004 | |||||||||||||||||||
Expected rate of return on plan assets | 4.0 | % | 4.0 | % | 4.0 | % | — | — | — | |||||||||||||||
Expected rate of return on reimbursement rights | 4.0 | % | 4.0 | % | 4.0 | % | 4.0 | % | 4.0 | % | 4.0 | % |
Millions of Euros | ||||||||||||||||||||||||
Post-Employment Plans | Other Similar Obligations | |||||||||||||||||||||||
2006 | 2005 | 2004 | 2006 | 2005 | 2004 | |||||||||||||||||||
Present value of the obligations: | ||||||||||||||||||||||||
To current employees | 1,215 | 1,207 | 1,180 | — | — | — | ||||||||||||||||||
Vested obligations to retired employees | 4,958 | 4,942 | 5,005 | — | — | — | ||||||||||||||||||
To early retirees | — | — | — | 4,481 | 4,215 | 4,051 | ||||||||||||||||||
Long-service bonuses and other obligations | — | — | — | 46 | 54 | 48 | ||||||||||||||||||
Other | 164 | 225 | 248 | — | — | — | ||||||||||||||||||
6,337 | 6,374 | 6,433 | 4,527 | 4,269 | 4,099 | |||||||||||||||||||
Less: | ||||||||||||||||||||||||
Fair value of plan assets | 203 | 211 | 212 | — | — | — | ||||||||||||||||||
Unrecognized actuarial (gains)/losses | 482 | 506 | 536 | — | — | — | ||||||||||||||||||
Unrecognized past service cost | 5 | — | — | — | — | — | ||||||||||||||||||
Provisions — Provisions for pensions | 5,647 | 5,657 | 5,685 | 4,527 | 4,269 | 4,099 | ||||||||||||||||||
Of which: | ||||||||||||||||||||||||
Internal provisions for pensions | 3,065 | 3,015 | 2,982 | 4,504 | 4,235 | 4,048 | ||||||||||||||||||
Insurance contracts linked to pensions (Note 14) | 2,582 | 2,642 | 2,703 | 23 | 34 | 51 | ||||||||||||||||||
Millions of Euros | ||||||||||||||||||||||||
Post-Employment Plans | Other Similar Obligations | |||||||||||||||||||||||
2006 | 2005 | 2004 | 2006 | 2005 | 2004 | |||||||||||||||||||
Current service cost | 55 | 54 | 47 | 3 | 6 | 1 | ||||||||||||||||||
Interest cost | 239 | 255 | 296 | 156 | 150 | 138 | ||||||||||||||||||
Expected return on plan assets | (8 | ) | (9 | ) | (9 | ) | — | — | — | |||||||||||||||
Expected return on insurance contracts linked to pensions | (103 | ) | (105 | ) | (106 | ) | (1 | ) | (2 | ) | (3 | ) | ||||||||||||
Extraordinary charges- | ||||||||||||||||||||||||
Actuarial (gains)/losses recognized in the year | 8 | 13 | 21 | 16 | 14 | 37 | ||||||||||||||||||
Past service cost | 151 | 35 | 51 | — | — | 10 | ||||||||||||||||||
Early retirement cost | (24 | ) | (13 | ) | (111 | ) | 799 | 671 | 886 | |||||||||||||||
Other | (21 | ) | (38 | ) | (16 | ) | (10 | ) | (2 | ) | (55 | ) | ||||||||||||
Total | 297 | 192 | 173 | 963 | 837 | 1,014 | ||||||||||||||||||
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Table of Contents
Millions of Euros | ||||||||||||||||||||||||
Post-Employment Plans | Other Similar Obligations | |||||||||||||||||||||||
2006 | 2005 | 2004 | 2006 | 2005 | 2004 | |||||||||||||||||||
Present value of the obligations at beginning of year | 6,374 | 6,433 | 6,529 | 4,269 | 4,099 | 3,671 | ||||||||||||||||||
Net inclusion of entities in the Group | — | — | — | — | — | — | ||||||||||||||||||
Current service cost | 55 | 54 | 47 | 3 | 6 | 1 | ||||||||||||||||||
Interest cost | 239 | 255 | 296 | 156 | 150 | 138 | ||||||||||||||||||
Early retirement cost | (24 | ) | (13 | ) | (111 | ) | 799 | 671 | 886 | |||||||||||||||
Effect of curtailment/settlement | (21 | ) | (38 | ) | (16 | ) | (10 | ) | (2 | ) | (55 | ) | ||||||||||||
Benefits paid | (415 | ) | (324 | ) | (319 | ) | (708 | ) | (673 | ) | (589 | ) | ||||||||||||
Past service cost | 156 | 35 | 51 | — | — | 10 | ||||||||||||||||||
Actuarial (gains)/losses | (25 | ) | (26 | ) | 3 | 16 | 14 | 37 | ||||||||||||||||
Other | (2 | ) | (2 | ) | (47 | ) | 2 | 4 | — | |||||||||||||||
Present value of the obligations at end of year | 6,337 | 6,374 | 6,433 | 4,527 | 4,269 | 4,099 | ||||||||||||||||||
Millions of Euros | ||||||||||||
Post-Employment Plans | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Fair value of plan assets at beginning of year | 211 | 212 | 220 | |||||||||
Expected return on plan assets | 8 | 9 | 9 | |||||||||
Actuarial gains/(losses) | (4 | ) | 1 | (1 | ) | |||||||
Contributions | 2 | 8 | — | |||||||||
Benefits paid | (14 | ) | (19 | ) | (16 | ) | ||||||
Fair value of plan assets at end of year | 203 | 211 | 212 | |||||||||
Millions of Euros | ||||||||||||||||||||||||
Post-Employment Plans | Other Similar Obligations | |||||||||||||||||||||||
2006 | 2005 | 2004 | 2006 | 2005 | 2004 | |||||||||||||||||||
Fair value of insurance contracts linked to pensions at beginning of year | 2,642 | 2,703 | 2,790 | 34 | 51 | 76 | ||||||||||||||||||
Expected return on insurance contracts (Note 38) | 103 | 105 | 106 | 1 | 2 | 3 | ||||||||||||||||||
Actuarial gains/(losses) | (6 | ) | (10 | ) | (46 | ) | — | — | — | |||||||||||||||
Premiums paid | 11 | 12 | 22 | — | — | — | ||||||||||||||||||
Benefits paid | (168 | ) | (168 | ) | (169 | ) | (12 | ) | (19 | ) | (28 | ) | ||||||||||||
Fair value of insurance contracts linked to pensions at beginning of year | 2,582 | 2,642 | 2,703 | 23 | 34 | 51 | ||||||||||||||||||
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Millions | ||||
of Euros | ||||
2007 | 1,041 | |||
2008 | 993 | |||
2009 | 940 | |||
2010 | 883 | |||
2011 | 824 | |||
2012 to 2016 | 3,223 | |||
7,904 | ||||
1. | Valuation method: projected unit credit method, which sees each year of service as giving rise to an additional unit of benefit entitlement and measures each unit separately. | ||
2. | Actuarial assumptions used: unbiased and mutually compatible. Specifically, the most significant actuarial assumptions used in the calculations were as follows: |
2006 | 2005 | 2004 | ||||||||||
Annual discount rate | 5.20 | % | 4.85 | % | 5.40 | % | ||||||
Mortality tables | PA92MC C2006 | PA92MC C2005 | PA92/C14/C04 | |||||||||
Cumulative annual CPI growth | 3.0 | % | 2.8 | % | 2.8 | % | ||||||
Annual salary increase rate | 4.0 | % | 4.3 | % | 4.3 | % | ||||||
Annual pension increase rate | 3.0 | % | 2.8 | % | 2.8 | % |
Millions of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Present value of the obligations | 6,350 | 6,337 | 5,232 | |||||||||
Less: | ||||||||||||
Fair value of plan assets | 4,810 | 4,326 | 3,504 | |||||||||
Unrecognized actuarial (gains)/losses | (102 | ) | 223 | — | ||||||||
Unrecognized past service cost | — | — | — | |||||||||
Provisions — Provisions for pensions | 1,642 | 1,788 | 1,728 | |||||||||
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Millions of Euros | ||||||||
2006 | 2005 | |||||||
Current service cost | 119 | 131 | ||||||
Interest cost | 309 | 294 | ||||||
Expected return on plan assets | (263 | ) | (240 | ) | ||||
Extraordinary charges: | ||||||||
Actuarial gains/losses recognized in the year | — | — | ||||||
Past service cost | — | — | ||||||
Early retirement cost | 3 | — | ||||||
Total | 168 | 185 | ||||||
Millions of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Present value of the obligations at beginning of year | 6,337 | 5,232 | — | |||||||||
Net inclusion of entities in the Group | — | — | 5,232 | |||||||||
Current service cost | 119 | 131 | — | |||||||||
Interest cost | 309 | 294 | — | |||||||||
Early retirement cost | 3 | — | — | |||||||||
Benefits paid | (178 | ) | (102 | ) | — | |||||||
Actuarial (gains)/losses | (342 | ) | 570 | — | ||||||||
Exchange differences and other items | 102 | 212 | — | |||||||||
Present value of the obligations at end of year | 6,350 | 6,337 | 5,232 | |||||||||
Millions of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Fair value of plan assets at beginning of year | 4,326 | 3,504 | — | |||||||||
Net inclusion of entities in the Group | — | — | 3,504 | |||||||||
Expected return on plan assets | 263 | 240 | — | |||||||||
Actuarial gains/losses | (13 | ) | 347 | — | ||||||||
Contributions | 303 | 238 | — | |||||||||
Benefits paid | (178 | ) | (102 | ) | — | |||||||
Exchange differences | 109 | 99 | — | |||||||||
Fair value of plan assets at end of year | 4,810 | 4,326 | 3,504 | |||||||||
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2006 | 2005 | 2004 | ||||||||||
Equity instruments | 46 | % | 51 | % | 51 | % | ||||||
Debt instruments | 51 | % | 48 | % | 47 | % | ||||||
Other | 3 | % | 1 | % | 2 | % |
Millions | ||||
of Euros | ||||
2007 | 179 | |||
2008 | 192 | |||
2009 | 206 | |||
2010 | 222 | |||
2011 | 234 | |||
2012 to 2016 | 1,394 | |||
2,427 | ||||
Millions of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Present value of the obligations | 6,198 | 5,481 | 4,092 | |||||||||
Less: | ||||||||||||
Fair value of plan assets | 3,917 | 2,523 | 1,962 | |||||||||
Unrecognized actuarial (gains)/losses | 517 | 760 | 315 | |||||||||
Unrecognized past service cost | — | 2 | — | |||||||||
Provisions — Provisions for pensions | 1,764 | 2,196 | 1,815 | |||||||||
Of which: | ||||||||||||
Internal provisions for pensions | 2,198 | 2,459 | 1,929 | |||||||||
Net assets for pensions | (224 | ) | (55 | ) | (10 | ) | ||||||
Unrecognized net assets for pensions | (210 | ) | (208 | ) | (104 | ) |
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Millions of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Current service cost | 46 | 54 | 48 | |||||||||
Interest cost | 574 | 413 | 380 | |||||||||
Expected return on plan assets | (271 | ) | (222 | ) | (156 | ) | ||||||
Extraordinary charges: | ||||||||||||
Actuarial gains/losses recognized in the year | 93 | 35 | 44 | |||||||||
Past service cost | 29 | — | 11 | |||||||||
Early retirement cost | 72 | 62 | 53 | |||||||||
Other | (132 | ) | — | (2 | ) | |||||||
Total | 411 | 342 | 378 | |||||||||
Millions of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Present value of the obligations at beginning of year | 5,481 | 4,092 | 3,855 | |||||||||
Current service cost | 46 | 54 | 47 | |||||||||
Interest cost | 574 | 413 | 380 | |||||||||
Early retirement cost | 72 | 62 | 53 | |||||||||
Effect of curtailment/settlement | (132 | ) | — | (2 | ) | |||||||
Benefits paid | (513 | ) | (423 | ) | (306 | ) | ||||||
Past service cost | 27 | 2 | 11 | |||||||||
Actuarial (gains)/losses | 72 | 455 | 28 | |||||||||
Exchange differences and other items | 571 | 826 | 26 | |||||||||
Present value of the obligations at end of year | 6,198 | 5,481 | 4,092 | |||||||||
Millions of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Fair value of plan assets at beginning of year | 2,523 | 1,962 | 1,698 | |||||||||
Expected return on plan assets | 271 | 222 | 156 | |||||||||
Actuarial gains/(losses) | 12 | 9 | 98 | |||||||||
Contributions | 461 | 168 | 151 | |||||||||
Benefits paid | (199 | ) | (165 | ) | (136 | ) | ||||||
Exchange differences and other items | 849 | 327 | (5 | ) | ||||||||
Fair value of plan assets at end of year | 3,917 | 2,523 | 1,962 |
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2006 | 2005 | 2004 | ||||||||||
Equity instruments | 27 | % | 28 | % | 25 | % | ||||||
Debt instruments | 61 | % | 64 | % | 61 | % | ||||||
Properties | 3 | % | 4 | % | 6 | % | ||||||
Other | 8 | % | 4 | % | 7 | % |
Millions | ||||
of Euros | ||||
2007 | 406 | |||
2008 | 420 | |||
2009 | 434 | |||
2010 | 449 | |||
2011 | 464 | |||
2012 to 2016 | 2,563 | |||
4,736 | ||||
d) | Other provisions | |
The balance of “Provisions — Other provisions,” which includes, inter alia, provisions for restructuring costs and tax and legal litigation, was estimated using prudent calculation procedures in keeping with the uncertainty inherent in the obligations covered. The definitive date of the outflow of resources embodying economic benefits for the Group depends on each obligation; in certain cases, these obligations have no fixed settlement period and, in other cases, are based on litigation in progress. | ||
The breakdown of the balance of “Provisions — Other provisions” is as follows: |
Millions of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Provisions for contingencies and commitments in operating units: | ||||||||||||
Recognized by Spanish companies | 892 | 937 | 929 | |||||||||
Of which: | ||||||||||||
Bank | 400 | 376 | 483 | |||||||||
Banesto | 249 | 331 | 349 | |||||||||
Recognized by other EU companies | 1,230 | 1,876 | 1,597 | |||||||||
Of which: Abbey | 931 | 1,458 | 1,138 | |||||||||
Recognized by other companies | 2,492 | 2,350 | 1,696 | |||||||||
Of which: | ||||||||||||
Brazil | 1,795 | 1,318 | 1,056 | |||||||||
Mexico | 193 | 233 | 143 | |||||||||
4,614 | 5,163 | 4,222 | ||||||||||
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– | The “Mandado de Segurança” filed by Banespa claiming its right to pay Brazilian income tax at a rate of 8%. On June 15, 2005, an unfavorable judgment was handed down against Banespa at first instance, which was appealed against at the Federal Regional Court, together with the application for the preliminary effects to remain in force. A decision has not yet been handed down by the Court. | ||
– | The “Mandado de Segurança” filed by Banespa claiming its right to consider deductible the Brazilian income tax in the calculation of the related corporation tax. This action was declared unwarranted and an appeal was filed at the Federal Regional Court, requesting to have the claimability of the tax debt stayed and obtaining permission to deposit with the courts the amounts in question. A decision has not yet been handed down by the Court. | ||
– | A claim was filed against Abbey National Treasury Services plc by tax authorities abroad in relation to the refund of certain tax credits and other associated amounts. The legal advisers of Abbey National Treasury Services plc considered that the grounds to contest this claim were well-founded, proof of which is that a favorable judgment was handed down at first instance in September 2006, although the judgment was appealed against by the tax authorities in January 2007. However, in December 2006 an unfavorable judgment for another taxpayer was handed down on another proceeding which might affect this case. |
– | Casa de Bolsa Santander Serfin, S.A. de C.V. (Casa de Bolsa): In 1997 Casa de Bolsa Santander Serfin, S.A. de C.V. was sued for an alleged breach of various stock brokerage contracts. On July 6, 1999, Civil Court number thirty-one of the Federal District handed down a judgment ordering Casa de Bolsa to return to the plaintiff 2,401,588 shares of México 1 and 11,219,730 shares of México 4 at their market value and to pay MXP 15 million, plus interest calculated at the average percentage borrowing cost (C.P.P.) multiplied by four. | ||
After numerous appeals were filed concerning the method used for calculating this interest, a final judgment was handed down ruling that the interest should not be capitalized. The estimated total indemnity payable, including the principal amount of the deposit, the uncapitalized interest and the value of the shares that must be returned, amounts to USD 26.7 million. | |||
– | Misselling: claims associated with the sale by Abbey of certain financial products to its customers. | ||
The provisions recorded by Abbey in this connection were calculated on the basis of the best estimate of the number of claims that would be received, of the percentage of claims that would be upheld and of the related amounts. | |||
– | LANETRO, S.A.: claim (ordinary lawsuit no. 558/2002) filed by LANETRO, S.A. against Banco Santander Central Hispano, S.A. at Madrid Court of First Instance no. 34, requesting that the Bank comply with the obligation to subscribe to€30.05 million of a capital increase at the plaintiff. | ||
On December 16, 2003, a judgment was handed down dismissing the plaintiff’s request. The subsequent appeal filed by LANETRO was upheld by a decision of the Madrid Provincial Appellate Court on October 27, 2006. | |||
The Bank has prepared a cassation appeal against this decision. |
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– | Galesa de Promociones, S.A.: small claims proceeding at Elche Court of First Instance no. 4 (case no. 419/1994), in connection with the claim filed by Galesa de Promociones, S.A. (Galesa) requesting the Court to annul a previous legal foreclosure proceeding brought by the Bank against the plaintiff in 1992, which culminated in the foreclosure of certain properties that were subsequently sold by auction. | |
The judgments handed down at first and second instance were in the Bank’s favor. The cassation appeal filed by Galesa at the Supreme Court was upheld by virtue of a decision on November 24, 2004 which ordered the reversal of the legal foreclosure proceeding to before the date on which the auctions were held. On June 8, 2006, Galesa filed a claim for the enforcement of the decision handed down by the Supreme Court, requesting that the Bank be ordered to pay€56 million, the estimated value of the properties, plus a further€33 million for loss of profit. The Bank challenged this claim on the grounds that the Supreme Court decision could not be enforced –since no order had been pronounced against the Bank, but rather a proceeding had merely been annulled– and it also argued that the damages requested would have to be ruled upon by an express court decision, which had not been pronounced. | ||
The Elche Court of First Instance, by virtue of an order dated September 18, 2006, found in favor of the Bank, and referred the plaintiff to the appropriate ordinary proceeding for the valuation of the aforementioned damages. Galesa filed an appeal for reconsideration, which was dismissed by a resolution on November 11, 2006. Galesa has announced its intention to lodge an appeal against this resolution at the Alicante Provincial Appellate Court. This appeal, which has not yet been filed, will be duly contested by the Bank at the appropriate time. |
– | Declaratory large claims action brought at Madrid Court of First Instance No. 19 (case No. 87/2001) in connection with a claim filed by Inversión Hogar, S.A. against the Bank. This claim sought the termination of a settlement agreement entered into between the Bank and the plaintiff on December 11, 1992. On May 19, 2006, a judgment was handed down at first instance, whereby the agreement was declared to be terminated and the Bank was ordered to pay€1.8 million, plus the related legal interest since February 1997, to return a property that was given in payment under the aforementioned agreement, to pay an additional€72.9 million relating to the replacement value of the assets foreclosed, and subsequently sold, by the Bank, and to pay all the related court costs. The Bank and Inversión Hogar, S.A. filed appeals against the judgment. Inversión Hogar, S.A. sought provisional enforcement of the judgment, which was contested by the Bank. On March 2, 2007, a decision was handed down upholding the Bank’s objection to the enforcement of the judgment. |
– | BTOB Factory Ventures S.A. (BTOB): the dispute between Consalvi International Inc. (Consalvi) and the Bank arising from the “Framework Agreement” entered into between BTOB and Consalvi International Inc. on October 2, 2000. On that same date, the Bank subscribed to this agreement in its capacity as shareholder of BTOB, and assumed certain of the commitments stipulated therein. | |
Consalvi requested that the Bank honor its obligation to acquire from it 16,811 shares of BTOB at a price of approximately USD 67 million. Since the negotiations held to seek a solution to this matter proved unsuccessful, a request for arbitration was filed against the Bank in New York, as provided for in the agreement. | ||
The arbitration conducted in 2005 at the International Centre for Dispute Resolution of the American Arbitration Association culminated in an arbitral award on September 1, 2005, which ruled that the Bank had not fulfilled its contractual obligations and ordered it to pay USD 68 million (€57 million), plus interest. | ||
On November 4, 2005 the Bank filed a claim at the New York Supreme Court requesting that the arbitral award be declared null and void. Consalvi challenged the jurisdiction of the state courts to hear this case and requested that the federal courts should decide whether or not the arbitral award should be declared null and void. The parties submitted written pleadings on both the merits of the case and the jurisdiction of the courts. | ||
On June 22, 2006 the parties reached an out-of-court settlement whereby the litigation was definitively finalized and the related provisions were used and released. |
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Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Balance at beginning of year | 1,308,847 | 2,124,222 | 3,908,084 | |||||||||
Inclusion of companies in the Group | — | — | 877,477 | |||||||||
Redemptions | (472,925 | ) | (944,968 | ) | (2,624,283 | ) | ||||||
Of which: | ||||||||||||
Totta & Açores Financing, Limited | (118,483 | ) | — | — | ||||||||
Abbey National, plc | (354,442 | ) | — | — | ||||||||
BSCH Finance, Ltd. | — | (754,774 | ) | (2,057,390 | ) | |||||||
BCH Capital, Ltd. | — | (190,194 | ) | — | ||||||||
Exchange differences and other changes | (167,594 | ) | 129,593 | (37,056 | ) | |||||||
Balance at end of year | 668,328 | 1,308,847 | 2,124,222 | |||||||||
Millions | ||||||||||||||||||||||||
2006 | 2005 | Annual | ||||||||||||||||||||||
Equivalent | Foreign | Equivalent | Foreign | Interest | Redemption | |||||||||||||||||||
Issuer and Currency of Issue | Euro Value | Currency | Euro Value | Currency | Rate (%) | Option (1) | ||||||||||||||||||
Banesto Holdings Ltd. (US dollars) | 59 | 77 | 66 | 77 | 10.50 | % | 06/30/12 | |||||||||||||||||
Totta Açores Financing Limited (US dollars) | — | — | 127 | 150 | 8.88 | % | 10/11/06 | |||||||||||||||||
Pinto Totta International Finance Limited (US dollars) | 95 | 125 | 212 | 250 | 7.77 | %(2) | 08/01/07 | |||||||||||||||||
Abbey (US dollars) | — | — | 381 | 450 | 7.38 | % | 11/09/06 | |||||||||||||||||
Abbey (pounds sterling) | 484 | 325 | 474 | 325 | 8.63% to 10.38% | No option | ||||||||||||||||||
Valuation adjustments | 30 | — | 49 | — | — | — | ||||||||||||||||||
Balance at end of year | 668 | 1,309 | ||||||||||||||||||||||
(1) | From these dates, the issuer can redeem the shares, subject to prior authorization by the national supervisor. | |
(2) | Return until August 1, 2007. 6-month US dollar Libor + 2.75% from this date. |
a) | Consolidated Tax Group |
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The other Group banks and companies file income tax returns in accordance with the tax regulations applicable in each country. | ||
b) | Years open for review by the tax authorities | |
At December 31, 2006, the consolidated tax group had the years from 2003 to 2006 open for review in relation to the main taxes applicable to it. | ||
The other consolidated entities have the corresponding years open for review, pursuant to their respective tax regulations. | ||
In 2006 there were no significant developments in connection with the tax disputes at the different instances, which were pending resolution at December 31, 2005. | ||
The tax audit of 2001 and 2002 for the main taxes applicable to the consolidated tax group was completed in March 2007. Most of the tax assessments issued were signed on a contested basis. | ||
Because of the possible different interpretations which can be made of the tax regulations, the outcome of the tax audits of the years reviewed and of the open years might give rise to contingent tax liabilities which cannot be objectively quantified. However, the Group’s tax advisers consider that the possibility of such contingent liabilities becoming actual liabilities is remote, and that in any event the tax charge which might arise therefrom would not materially affect the consolidated financial statements of the Group. | ||
c) | Reconciliation | |
The reconciliation of the corporation tax expense calculated at the statutory tax rate to the income tax expense recognized is as follows: |
Millions of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Consolidated profit before tax | ||||||||||||
From continuing operations | 9,150 | 7,800 | 4,387 | |||||||||
From discontinued operations | 1,685 | 341 | 206 | |||||||||
10,835 | 8,141 | 4,593 | ||||||||||
Corporation tax at 35% | 3,792 | 2,849 | 1,608 | |||||||||
Decreases due to permanent differences | (1,022 | ) | (981 | ) | (676 | ) | ||||||
Of which: | ||||||||||||
Due to effect of different tax rates | (1,364 | ) | (627 | ) | (398 | ) | ||||||
Due to effect on deferred taxes of change in Spanish tax rate | 491 | — | — | |||||||||
Income tax of Group companies, per local books | 2,770 | 1,868 | 932 | |||||||||
Net increases (decreases) due to other permanent differences | (568 | ) | (539 | ) | (383 | ) | ||||||
Other, net | 388 | 62 | 48 | |||||||||
Current income tax | 2,590 | 1,391 | 597 | |||||||||
Of which: | ||||||||||||
Continuing operations | 2,294 | 1,275 | 526 | |||||||||
Discontinued operations | 296 | 116 | 71 | |||||||||
Of which: | ||||||||||||
Current tax | 2,003 | 837 | 409 | |||||||||
Deferred taxes | 587 | 554 | 188 | |||||||||
Taxes paid in the year | 949 | 1,036 | 585 |
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Millions of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Consolidated tax group | 4,212 | 3,281 | 1,770 | |||||||||
Other Spanish entities | 1,518 | 389 | 287 | |||||||||
Foreign entities | 5,105 | 4,471 | 2,536 | |||||||||
10,835 | 8,141 | 4,593 | ||||||||||
Income tax | 2,590 | 1,391 | 597 | |||||||||
Effective tax rate | 23.90 | % | 17.09 | % | 13.00 | % |
d) | Tax recognized in equity | |
In addition to the income tax recognized in the consolidated income statement, the Group recognized the following amounts in consolidated equity: |
Millions of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Tax charged to equity | (418 | ) | (438 | ) | (477 | ) | ||||||
Measurement of available-for-sale fixed-income securities | (276 | ) | (184 | ) | (256 | ) | ||||||
Measurement of available-for-sale equity securities | (99 | ) | (230 | ) | (221 | ) | ||||||
Measurement of cash flow hedges | (43 | ) | (24 | ) | — | |||||||
Tax credited to equity | — | — | 1 | |||||||||
Measurement of cash flow hedges | — | — | 1 | |||||||||
Total | (418 | ) | (438 | ) | (476 | ) | ||||||
e) | Deferred taxes | |
The balance of “Tax assets” in the consolidated balance sheets includes debit balances with the tax authorities relating to deferred tax assets. The balance of “Tax liabilities” includes the liability for the Group’s various deferred tax liabilities. |
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Millions of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Deferred tax assets | 9,156 | 8,909 | 8,342 | |||||||||
Of which: | ||||||||||||
Banespa | 1,577 | 1,201 | 806 | |||||||||
Abbey | 1,517 | 1,390 | 1,196 | |||||||||
Early retirements | 1,482 | 1,286 | 1,274 | |||||||||
Other pensions | 966 | 1,225 | 1,256 | |||||||||
Deferred tax liabilities | 3,778 | 2,767 | 2,871 | |||||||||
Of which: | ||||||||||||
Abbey | 799 | 957 | 796 | |||||||||
Banespa | 149 | 33 | 117 | |||||||||
Banco Santander (Mexico) | 159 | 6 | 13 | |||||||||
Santander Consumer Bank Aktiengesellschaft | 104 | 83 | 59 | |||||||||
Valuation adjustments | 425 | 560 | 500 |
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Millions of Euros | ||||||||||||||||||||||||
Foreign | ||||||||||||||||||||||||
Currency | Charge/Credit | |||||||||||||||||||||||
Balance | to Asset | |||||||||||||||||||||||
Balances at | Translation | and Liability | Acquisitions | Balances at | ||||||||||||||||||||
December 31, | (Charge)/Credit | Differences and | Revaluation | for the Year | December 31, | |||||||||||||||||||
2005 | to Income | Other Items | Reserve | (Net) | 2006 | |||||||||||||||||||
Deferred tax assets | 8,909 | 148 | 225 | (22 | ) | (104 | ) | 9,156 | ||||||||||||||||
Deferred tax liabilities | (2,767 | ) | (735 | ) | (252 | ) | 112 | (136 | ) | (3,778 | ) | |||||||||||||
Total | 6,142 | (587 | ) | (27 | ) | 90 | (240 | ) | 5,378 | |||||||||||||||
f) | Other information | ||
In conformity with the Listing Rules Instrument 2005 published by the UK Financial Services Authority, it is hereby stated that shareholders of the Bank resident in the United Kingdom will be entitled to a tax credit in respect of the withholdings the Bank is required to make from the dividends to be paid to them. The shareholders of the Bank resident in the United Kingdom who hold their ownership interest in the Bank through Grupo Santander Nominee Service will be informed directly of the amount thus withheld and of any other data they may require to complete their tax returns in the United Kingdom. The other shareholders of the Bank resident in the United Kingdom should contact their bank or securities broker. |
a) | Breakdown | ||
The detail, by Group company, of the balance of “Equity – Minority interests” is as follows: |
Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Grupo Financiero Santander Serfin, S.A. de C.V. (Note 3) | 657,013 | 609,728 | 345,293 | |||||||||
Banesto | 303,889 | 767,833 | 671,994 | |||||||||
Banco Santander Chile | 234,726 | 146,192 | 111,002 | |||||||||
Brazil Group | 45,161 | 44,275 | 35,406 | |||||||||
Santander BanCorp | 31,311 | 29,539 | 33,107 | |||||||||
Other companies | 298,837 | 720,990 | 498,150 | |||||||||
1,570,937 | 2,318,557 | 1,694,952 | ||||||||||
Profit for the year attributed to minority interests | 649,806 | 529,666 | 390,364 | |||||||||
Of which: | ||||||||||||
Banesto Group | 260,591 | 149,143 | 100,554 | |||||||||
Grupo Financiero Santander Serfin, S.A. de C.V. | 166,103 | 139,885 | 124,922 | |||||||||
Banco Santander Chile | 84,640 | 58,153 | 45,097 | |||||||||
Somaen-Dos, S.L. | 77,177 | 138,919 | 86,435 | |||||||||
Brazil Group | 10,568 | 11,559 | 12,686 | |||||||||
Santander BanCorp | 3,053 | 6,680 | 7,036 | |||||||||
2,220,743 | 2,848,223 | 2,085,316 | ||||||||||
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b) | Changes | ||
The changes in the balance of “Minority interests” are summarized as follows: |
Millions of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Balance at beginning of year | 2,848 | 2,085 | 1,961 | |||||||||
(Net) inclusion of companies in the Group and changes in scope of consolidation | (1,050 | ) | 34 | — | ||||||||
Change in proportion of ownership interest | 72 | (1 | ) | (64 | ) | |||||||
Valuation adjustments | 15 | 49 | (18 | ) | ||||||||
Dividends paid to minority interests | (160 | ) | (137 | ) | (161 | ) | ||||||
Changes in share capital | (29 | ) | (25 | ) | 32 | |||||||
Exchange differences and other items | (125 | ) | 313 | (55 | ) | |||||||
Profit for the year attributed to minority interests | 650 | 530 | 390 | |||||||||
Balance at end of year | 2,221 | 2,848 | 2,085 | |||||||||
a) | Available-for-sale financial assets | ||
This item includes the net amount of unrealized changes in the fair value of assets classified as available-for-sale financial assets. | |||
The changes in this item were as follows: |
Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Balance at beginning of year | 1,941,690 | 1,936,818 | 2,048,689 | |||||||||
Revaluation gains | 1,663,713 | 911,814 | 925,454 | |||||||||
Income tax | (144,772 | ) | (23,468 | ) | (215,770 | ) | ||||||
Amounts transferred to income statement | (1,177,308 | ) | (883,474 | ) | (821,555 | ) | ||||||
Balance at end of year | 2,283,323 | 1,941,690 | 1,936,818 | |||||||||
Of which: | ||||||||||||
Fixed-income | 594,719 | 407,084 | 546,464 | |||||||||
Equities | 1,688,604 | 1,534,606 | 1,390,354 |
b) | Cash flow hedges | ||
This item includes the net amount of changes in the value of financial derivatives designated as hedging instruments in cash flow hedges, for the portion of these changes considered as effective hedges (Note 11). |
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c) | Hedges of net investments in foreign operations and Exchange differences | ||
“Hedges of net investments in foreign operations” include 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 (Note 11). | |||
“Exchange differences” include 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 (Note 2-a). | |||
The changes in these two items were as follows: |
Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Balance at beginning of year | 1,065,000 | (157,467 | ) | — | ||||||||
Revaluation gains (losses) | (529,982 | ) | 1,388,998 | (160,853 | ) | |||||||
Amounts transferred to income statement | 3,164 | (166,531 | ) | 3,386 | ||||||||
Balance at end of year | 538,182 | 1,065,000 | (157,467 | ) | ||||||||
Of which: | ||||||||||||
Arising on consolidation: | ||||||||||||
Subsidiaries (Note 25): | 549,211 | 1,061,515 | (154,185 | ) | ||||||||
Brazil Group | 456,412 | 544,228 | 10,839 | |||||||||
Chile Group | (40,677 | ) | 178,260 | (10,796 | ) | |||||||
Mexico Group | (217,746 | ) | 87,093 | (65,256 | ) | |||||||
Abbey | 490,771 | 264,769 | (79,155 | ) | ||||||||
Other | (139,549 | ) | (12,835 | ) | (9,817 | ) | ||||||
Associates (Note 13) | (11,029 | ) | 3,485 | (3,282 | ) |
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Thousands of Euros | ||||||||||||||||||||||||||||||||||||
Reserves of | Profit | |||||||||||||||||||||||||||||||||||
Entities | (Loss) | |||||||||||||||||||||||||||||||||||
Accounted | Other | Attributed | Dividends | |||||||||||||||||||||||||||||||||
Share | Share | Accumulated | for Using the | Equity | Treasury | to the | and | |||||||||||||||||||||||||||||
Capital | Premium | Reserves | Equity Method | Instruments | Shares | Group | Remuneration | Total | ||||||||||||||||||||||||||||
Balances at January 1, 2004 | 2,384,201 | 8,720,722 | 7,631,559 | 602,807 | 58,567 | (39,122 | ) | — | (739,101 | ) | 18,619,633 | |||||||||||||||||||||||||
Consolidated profit for the year | — | — | — | — | — | — | 3,605,870 | — | 3,605,870 | |||||||||||||||||||||||||||
Dividends/Remuneration | — | — | (1,444,387 | ) | — | — | — | — | (571,561 | ) | (2,015,948 | ) | ||||||||||||||||||||||||
Issues (reductions) | 742,947 | 11,797,995 | (1,472 | ) | — | — | — | — | — | 12,539,470 | ||||||||||||||||||||||||||
Purchase and sale of own equity instruments | — | — | (39,845 | ) | — | — | (87,378 | ) | — | — | (127,223 | ) | ||||||||||||||||||||||||
Payments with equity instruments | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Transfers | — | (148,589 | ) | 139,840 | 8,749 | — | — | — | — | — | ||||||||||||||||||||||||||
Other | — | — | (29,063 | ) | 9,639 | 35,000 | — | — | — | 15,576 | ||||||||||||||||||||||||||
Balances at December 31, 2004 | 3,127,148 | 20,370,128 | 6,256,632 | 621,195 | 93,567 | (126,500 | ) | 3,605,870 | (1,310,662 | ) | 32,637,378 | |||||||||||||||||||||||||
Consolidated profit for the year | — | — | — | — | — | — | 6,220,104 | — | 6,220,104 | |||||||||||||||||||||||||||
Appropriation of profit for the year | — | — | 3,279,608 | 326,262 | — | — | (3,605,870 | ) | — | — | ||||||||||||||||||||||||||
Dividends/Remuneration | — | — | (1,721,691 | ) | (115,582 | ) | — | — | — | (433,537 | ) | (2,270,810 | ) | |||||||||||||||||||||||
Issues (reductions) | — | — | (2,531 | ) | — | — | — | — | — | (2,531 | ) | |||||||||||||||||||||||||
Purchase and sale of own equity instruments | — | — | 26,421 | — | — | 73,432 | — | — | 99,853 | |||||||||||||||||||||||||||
Payments with equity instruments | — | — | — | — | 19,167 | — | — | — | 19,167 | |||||||||||||||||||||||||||
Transfers | — | — | 267,052 | (243,462 | ) | (23,590 | ) | — | — | — | — | |||||||||||||||||||||||||
Other | — | — | (5,351 | ) | 15,236 | (11,666 | ) | — | — | — | (1,781 | ) | ||||||||||||||||||||||||
Balances at December 31, 2005 | 3,127,148 | 20,370,128 | 8,100,140 | 603,649 | 77,478 | (53,068 | ) | 6,220,104 | (1,744,199 | ) | 36,701,380 | |||||||||||||||||||||||||
Consolidated profit for the year | — | — | — | — | — | — | 7,595,947 | — | 7,595,947 | |||||||||||||||||||||||||||
Appropriation of profit for the year | — | — | 5,828,922 | 391,182 | — | — | (6,220,104 | ) | — | — | ||||||||||||||||||||||||||
Dividends/Remuneration | — | — | (2,495,742 | ) | (109,173 | ) | — | — | — | 406,981 | (2,197,934 | ) | ||||||||||||||||||||||||
Issues (reductions) | — | — | (4,163 | ) | — | — | — | — | — | (4,163 | ) | |||||||||||||||||||||||||
Purchase and sale of own equity instruments | — | — | 9,627 | — | — | (73,733 | ) | — | — | (64,106 | ) | |||||||||||||||||||||||||
Payments with equity instruments | — | — | — | — | 19,167 | — | — | — | 19,167 | |||||||||||||||||||||||||||
Transfers | — | — | 79,346 | (44,369 | ) | (34,977 | ) | — | — | — | — | |||||||||||||||||||||||||
Other | — | — | (26,460 | ) | (43,479 | ) | 450 | — | — | — | (69,489 | ) | ||||||||||||||||||||||||
Balances at December 31, 2006 | 3,127,148 | 20,370,128 | 11,491,670 | 797,810 | 62,118 | (126,801 | ) | 7,595,947 | (1,337,218 | ) | 41,980,802 | |||||||||||||||||||||||||
Parent | 3,127,148 | 20,370,128 | 6,600,033 | — | 45,973 | (21,640 | ) | 3,256,190 | (1,337,218 | ) | 32,040,614 | |||||||||||||||||||||||||
Subsidiaries | — | — | 4,839,892 | — | 16,145 | (105,161 | ) | 3,836,817 | — | 8,587,693 | ||||||||||||||||||||||||||
Jointly controlled entities | — | — | 51,745 | — | — | — | 76,323 | — | 128,068 | |||||||||||||||||||||||||||
Associates | — | — | — | 797,810 | — | — | 426,617 | — | 1,224,427 |
a) | Changes | ||
The changes in the Bank’s share capital were as follows: |
Share Capital | ||||||||
Number of | Par Value | |||||||
Shares | (Euros) | |||||||
Number of shares and par value of share capital at December 31, 2003 | 4,768,402,943 | 2,384,201,472 | ||||||
Capital increases: | ||||||||
Acquisition of Abbey shares (Note 3-c) | 1,485,893,636 | 742,946,818 | ||||||
Number of shares and par value of share capital at December 31, 2004, 2005 and 2006 | 6,254,296,579 | 3,127,148,290 |
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The Bank’s shares are listed on the computerized trading system of the Spanish stock exchanges and on the New York, London, Milan, Lisbon, Buenos Aires and Mexico stock exchanges, and all shares have the same features and rights. At December 31, 2006, the only shareholders with an ownership interest in the Bank’s share capital of over 3% were Chase Nominees Ltd. (with a 9.87% holding), State Street Bank & Trust (with a 5.35% holding) and EC Nominees Ltd. (with a 4.93% holding). | |||
b) | Other considerations | ||
At December 31, 2006, the additional share capital authorized by the shareholders at the Annual General Meeting of the Bank amounted to€1,939 million. | |||
The shareholders at the Annual General Meeting on June 17, 2006 resolved to increase capital by€375 million, and fully empowered the Board of Directors, for a period of one year, to set and establish the terms and conditions for this capital increase in all matters not already provided for by the Annual General Meeting. In exercising these powers, the Board of Directors must determine whether the capital increase is to be performed through the issuance of new shares or by increasing the par value of the shares outstanding. | |||
Also, the shareholders at the aforementioned Annual General Meeting authorized the Bank’s Board of Directors to issue fixed-income securities for up to a maximum amount of€35,000 million or the equivalent amount in another currency, by any lawful means. The shareholders at the Annual General Meeting on June 21, 2003 authorized the Board of Directors to issue fixed-income securities convertible into new shares and/or exchangeable for outstanding shares for up to€4,000 million over a five-year period, and empowered the Bank’s Board of Directors to increase capital by the required amount to cater for the requests for conversion. | |||
At December 31, 2006, the shares of the following companies were listed on official stock markets: Banco Río de la Plata, S.A.; Banco de Venezuela, S.A.; Banco Santander Colombia, S.A.; Santander BanCorp (Puerto Rico); Grupo Financiero Santander Serfin, S.A. de C.V.; Banco Santander Chile; Cartera Mobiliaria, S.A., S.I.C.A.V.; Ajalvir S.I.C.A.V., S.A.; Santander Chile Holding, S.A.; Inmuebles B de V 1985 C.A.; Banespa; Banesto; Portada, S.A. and Capital Variable S.I.C.A.V., S.A. | |||
The number of Bank shares owned by third parties and managed by Group management companies (mainly portfolio, collective investment undertaking and pension fund managers) was 42,435,424, which represented 0.68% of the Bank’s share capital. In addition, the number of Bank shares owned by third parties and received as security was 17,829,400 (equal to 0.285% of the Bank’s share capital). | |||
At December 31, 2006, the capital increases in progress at Group companies and the additional capital authorized by their shareholders at the respective Annual General Meetings were not material at Group level. |
a) | Definitions | ||
The balance of “Shareholders’ equity – Reserves – Accumulated reserves” includes the net amount of the accumulated profit or loss recognized in previous years through the consolidated income statement that, in the distribution of profit, was appropriated to equity, and the own equity instrument issuance expenses and the differences between the selling price of treasury shares and the cost of acquisition thereof. |
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The balance of “Shareholders’ equity – Reserves of entities accounted for using the equity method” includes the net amount of the accumulated profit or loss generated in previous years by entities accounted for using the equity method, recognized through the consolidated income statement. | |||
b) | Breakdown | ||
The breakdown of the balances of these reserve accounts is as follows: |
Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Accumulated reserves: | ||||||||||||
Restricted reserves- | ||||||||||||
Legal reserve | 625,430 | 625,430 | 625,430 | |||||||||
Reserve for treasury shares | 378,700 | 173,103 | 229,672 | |||||||||
Revaluation reserve Royal Decree-Law 7/1996 | 42,666 | 42,666 | 42,666 | |||||||||
Reserve for retired capital | 10,610 | — | — | |||||||||
Voluntary reserves (*) | 3,711,534 | 3,791,677 | 3,646,801 | |||||||||
Consolidation reserves attributed to the Bank | 1,831,093 | 992,066 | 260,333 | |||||||||
Reserves at subsidiaries | 4,891,637 | 2,475,198 | 1,451,730 | |||||||||
11,491,670 | 8,100,140 | 6,256,632 | ||||||||||
Reserves of entities accounted for using the equity method: | ||||||||||||
Associates | 797,810 | 603,649 | 621,195 | |||||||||
Of which: | ||||||||||||
Cepsa | 662,172 | 469,763 | 342,318 | |||||||||
Unión Fenosa | — | — | 151,092 | |||||||||
Attijariwafa Bank | 111,701 | 102,692 | 99,816 | |||||||||
12,289,480 | 8,703,789 | 6,877,827 | ||||||||||
(*) | They include the reserves stipulated by Article 81 of the Consolidated Spanish Companies Law for an amount equal to the loans granted by Group companies to third parties for the acquisition of treasury shares. |
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Millions of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Banco Español de Crédito, S.A. (Banesto) (Consolidated Group) | 2,312 | 1,809 | 1,404 | |||||||||
Banco Santander Serfin, S.A. (Consolidated Group) | 1,336 | 998 | 760 | |||||||||
Banespa (Consolidated Group) | 976 | 927 | 678 | |||||||||
Banco Santander Totta, S.A. (Consolidated Group) | 784 | 642 | 554 | |||||||||
Abbey Group | 742 | — | — | |||||||||
Banco Santander Chile (Consolidated Group) | 473 | 215 | 203 | |||||||||
Banco de Venezuela, S.A.C.A. (Consolidated Group) | 402 | 272 | 195 | |||||||||
Grupo Santander Consumer Finance, S.A. | 304 | 302 | 292 | |||||||||
Cartera Mobiliaria, S.A., S.I.C.A.V. | 281 | 241 | 230 | |||||||||
Santander Central Hispano Investment, S.A. | 167 | 129 | 129 | |||||||||
Banco Santander International (United States) | 156 | 138 | 124 | |||||||||
Banco Santander (Suisse), S.A. | 110 | 90 | 59 | |||||||||
Banco Santander de Negocios Portugal, S.A. | 63 | 44 | 119 | |||||||||
Banco Río de la Plata, S.A. | (587 | ) | (379 | ) | (377 | ) | ||||||
Exchange differences | (3,167 | ) | (3,167 | ) | (3,167 | ) | ||||||
Consolidation adjustments and other companies | 540 | 214 | 249 | |||||||||
Total | 4,892 | 2,475 | 1,452 | |||||||||
Of which: restricted | 740 | 556 | 444 | |||||||||
a) | Other equity instruments | ||
“Other equity instruments” includes the equity component of compound financial instruments, the increase in equity due to personnel remuneration, and other items not recognized in other “Shareholders’ equity” items. | |||
b) | Treasury shares | ||
The balance of “Shareholders’ equity – Treasury shares” includes the amount of equity instruments held by all the Group entities. | |||
Transactions involving own equity instruments, including their issuance and cancellation, are recognized directly in equity, and no profit or loss may be recognized on these transactions. The costs of any transaction involving own equity instruments are deducted directly from equity, net of any related tax effect. | |||
The shareholders at the Bank’s Annual General Meeting on June 17, 2006 set the maximum number of Bank shares that the Bank and/or any Group subsidiary are authorized to acquire at 5% of the fully paid share capital amount, at a minimum share price which cannot be lower than par value and a maximum share price of up to 3% higher than the quoted price on the computerized trading system of the Spanish stock exchanges at the date of acquisition. | |||
The Bank shares owned by the consolidated companies accounted for 0.12% of issued capital (0.15% including derivatives on own equity instruments) at December 31, 2006 (December 31, 2005: 0.08%; December 31, 2004: 0.2%). | |||
The average purchase price of the Bank’s shares in 2006 was€11.98 per share and the average selling price was€11.90 per share (2005:€9.71 and€9.77 per share, respectively; 2004:€9.0 and€8.8 per share, respectively). |
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a) | Contingent liabilities | ||
“Contingent liabilities” includes all transactions under which an entity guarantees the obligations of a third party and which result from financial guarantees granted by the entity or from other types of contract. The breakdown is as follows: |
Millions of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Bank guarantees and other indemnities provided | 52,697 | 44,251 | 28,534 | |||||||||
Credit derivatives sold | 478 | 180 | — | |||||||||
Irrevocable documentary credits | 5,029 | 3,767 | 2,978 | |||||||||
Other financial guarantees | 1 | 2 | — | |||||||||
58,205 | 48,200 | 31,512 | ||||||||||
b) | Contingent commitments | ||
“Contingent commitments” includes those irrevocable commitments that could give rise to the recognition of financial assets. |
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Millions of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Drawable by third parties | 91,690 | 77,678 | 63,111 | |||||||||
Financial asset forward purchase commitments | 1,449 | 991 | 1,072 | |||||||||
Regular way financial asset purchase contracts | 3,202 | 9,886 | 3,661 | |||||||||
Securities subscribed but not paid | 83 | 196 | 122 | |||||||||
Securities placement and underwriting commitments | 3 | 16 | 9 | |||||||||
Documents delivered to clearing houses | 6,013 | 6,030 | 5,646 | |||||||||
Other contingent commitments | 809 | 1,466 | 1,240 | |||||||||
103,249 | 96,263 | 74,861 | ||||||||||
a) | Notional amounts of trading and hedging derivatives | ||
The breakdown of the notional and/or contractual amounts of the trading and hedging derivatives held by the Group at December 31, 2006, 2005 and 2004 is as follows: |
Millions of Euros | ||||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||
Notional | Market | Notional | Market | Notional | Market | |||||||||||||||||||
Amount | Value | Amount | Value | Amount | Value | |||||||||||||||||||
Trading derivatives: | ||||||||||||||||||||||||
Interest rate risk- | ||||||||||||||||||||||||
Forward rate agreements | 116,858 | (267 | ) | 16,332 | 3 | 25,332 | 5 | |||||||||||||||||
Interest rate swaps | 1,466,880 | 761 | 1,156,681 | (2,019 | ) | 849,037 | (1,933 | ) | ||||||||||||||||
Options and futures | 825,795 | (780 | ) | 419,628 | 345 | 281,661 | 52 | |||||||||||||||||
Foreign currency risk- | ||||||||||||||||||||||||
Foreign currency purchases and sales | 81,612 | (142 | ) | 63,203 | 108 | 31,005 | (161 | ) | ||||||||||||||||
Foreign currency options | 62,852 | (464 | ) | 39,091 | (223 | ) | 12,556 | (371 | ) | |||||||||||||||
Currency swaps | 56,096 | (366 | ) | 45,458 | (154 | ) | 16,018 | 1 | ||||||||||||||||
Securities and commodities derivatives | 138,628 | (2,496 | ) | 90,547 | 341 | 50,585 | (1,755 | ) | ||||||||||||||||
2,748,721 | (3,754 | ) | 1,830,940 | (1,599 | ) | 1,266,194 | (4,162 | ) | ||||||||||||||||
Hedging derivatives: | ||||||||||||||||||||||||
Interest rate risk- | ||||||||||||||||||||||||
Forward rate agreements | 1 | — | 737 | (3 | ) | 3 | — | |||||||||||||||||
Interest rate swaps | 103,564 | 547 | 89,713 | 1,630 | 110,748 | 1,293 | ||||||||||||||||||
Futures and options | 9,793 | (66 | ) | 106,341 | (28 | ) | 50,999 | (5 | ) | |||||||||||||||
Foreign currency risk- | ||||||||||||||||||||||||
Foreign currency purchases and sales | 1,745 | 3 | 6,856 | (25 | ) | 30,894 | — | |||||||||||||||||
Foreign currency options | 15,266 | 6 | 110 | — | 20 | — | ||||||||||||||||||
Currency swaps | 26,371 | (989 | ) | 20,563 | 248 | 48,446 | (357 | ) | ||||||||||||||||
Securities and commodities derivatives | 622 | (8 | ) | 2,307 | (7 | ) | 53,890 | (1 | ) | |||||||||||||||
157,363 | (506 | ) | 226,627 | 1,815 | 295,000 | 930 | ||||||||||||||||||
Total | 2,906,084 | (4,259 | ) | 2,057,567 | 216 | 1,561,194 | (3,232 | ) | ||||||||||||||||
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Millions of Euros | ||||||||
2006 | 2005 | |||||||
Credit derivatives | 709 | 242 | ||||||
Securities derivatives | 2,148 | 1,573 | ||||||
Fixed-income derivatives | 9 | 67 | ||||||
Currency derivatives | 7,498 | 7,386 | ||||||
Interest rate derivatives | 18,084 | 19,319 | ||||||
Commodities derivatives | 4 | — | ||||||
Collateral received | (1,562 | ) | (2,496 | ) | ||||
Total | 26,890 | 26,091 | ||||||
Millions of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Fair value hedges | (474 | ) | 2,046 | 994 | ||||||||
Cash flow hedges | (35 | ) | 24 | 54 | ||||||||
Hedges of net investments in foreign operations | 3 | (255 | ) | (118 | ) | |||||||
(506 | ) | 1,815 | 930 | |||||||||
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b) | Off-balance-sheet funds under management | ||
The detail of off-balance-sheet funds managed by the Group is as follows: |
Millions of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Investment funds | 119,838 | 109,480 | 97,838 | |||||||||
Pension funds | 29,450 | 28,619 | 21,679 | |||||||||
Assets under management | 17,836 | 14,746 | 8,998 | |||||||||
167,124 | 152,845 | 128,515 | ||||||||||
a) | Description of divestments |
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b) | Profit and net cash flows from discontinued operations | ||
The detail of the profit generated by discontinued operations is set forth below. | |||
The comparative figures for 2005 and 2004 were restated in order to include the operations classified as discontinued in 2006. |
Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Net interest income | (82,955 | ) | (174,324 | ) | 37,256 | |||||||
Share of results of entities accounted for using the equity method | 123 | 9 | (25 | ) | ||||||||
Net fee and commission income | 21,928 | 59,710 | 43,743 | |||||||||
Insurance activity income | 333,339 | 588,841 | — | |||||||||
Gains/Losses on financial assets and liabilities | 18,738 | 4,211 | 1,336 | |||||||||
Exchange differences | 11 | (153 | ) | (418 | ) | |||||||
Gross income | 291,184 | 478,294 | 81,892 | |||||||||
Sales and income from the provision of non-financial services | 762,041 | 845,989 | 729,691 | |||||||||
Cost of sales | (455,817 | ) | (576,135 | ) | (500,188 | ) | ||||||
Other operating income (Net) | (4,193 | ) | (13,570 | ) | (1,110 | ) | ||||||
Personnel expenses | (95,962 | ) | (144,206 | ) | (31,942 | ) | ||||||
Other general administrative expenses | (83,071 | ) | (208,665 | ) | (29,324 | ) | ||||||
Depreciation and amortization | (3,511 | ) | (3,876 | ) | (5,523 | ) | ||||||
Net operating income | 410,671 | 377,831 | 243,496 | |||||||||
Other gains (Net) | (32,611 | ) | (36,560 | ) | (37,743 | ) | ||||||
Profit before tax | 378,060 | 341,271 | 205,753 | |||||||||
Income tax | (113,016 | ) | (116,438 | ) | (70,968 | ) | ||||||
Profit from divestments | 1,307,033 | — | — | |||||||||
Income tax | (182,703 | ) | — | — | ||||||||
Profit from discontinued operations | 1,389,374 | 224,833 | 134,785 | |||||||||
Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Cash and cash equivalents at beginning of year | 78,771 | 76,672 | 58,494 | |||||||||
Cash flows from operating activities | 165,376 | (2,075,981 | ) | (63,728 | ) | |||||||
Cash flows from investing activities | (64,141 | ) | 1,630,448 | 16,689 | ||||||||
Cash flows from financing activities | (112,472 | ) | 447,632 | 65,217 | ||||||||
Cash and cash equivalents at end of year | 67,534 | 78,771 | 76,672 | |||||||||
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c) | Consideration received | |
The breakdown of the assets and liabilities associated with discontinued operations is as follows: |
Millions | ||||
of Euros | ||||
2006 | ||||
ASSETS: | ||||
Cash and balances with central banks | 68 | |||
Financial assets held for trading | 1,495 | |||
Of which: Abbey Insurance | 1,482 | |||
Other financial assets at fair value through profit or loss | 35,837 | |||
Of which: Abbey Insurance | 35,812 | |||
Available-for-sale financial assets | 6 | |||
Loans and receivables | 1,461 | |||
Of which: Abbey Insurance | 1,105 | |||
Non-current assets held for sale | 8 | |||
Investments | 10 | |||
Reinsurance assets | 2,361 | |||
Of which: Abbey Insurance | 2,361 | |||
Tangible assets | 726 | |||
Intangible assets | 31 | |||
Tax assets | 89 | |||
Prepayments and accrued income | 1,135 | |||
Of which: Abbey | 1,134 | |||
Other assets | 2,910 | |||
Of which: Urbis | 2,904 | |||
LIABILITIES: | ||||
Other financial liabilities at fair value through profit or loss | (845 | ) | ||
Financial liabilities at amortized cost | (4,355 | ) | ||
Of which: Urbis | (2,707 | ) | ||
Liabilities under insurance contracts | (34,355 | ) | ||
Of which: Abbey Insurance | (34,355 | ) | ||
Provisions | (57 | ) | ||
Tax liabilities | (147 | ) | ||
Accrued expenses and deferred income | (16 | ) | ||
Other liabilities | (6 | ) | ||
Net asset value | 6,356 | |||
Goodwill | 46 | |||
Minority interests | (464 | ) | ||
Net amount | 5,938 | |||
Profit from divestments | 1,307 | |||
Consideration received | 7,245 | |||
Of which: in cash | 7,245 | |||
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d) | Earnings per share relating to discontinued operations | |
The earnings per share relating to discontinued operations were as follows: |
2006 | 2005 | 2004 | ||||||||||
Basic earnings per share (euros) | 0.1886 | 0.0232 | 0.0162 | |||||||||
Diluted earnings per share (euros) | 0.1875 | 0.0232 | 0.0161 |
Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Balances with the Bank of Spain and other central banks | 616,125 | 404,506 | 235,777 | |||||||||
Due from credit institutions | 2,363,797 | 2,396,805 | 1,092,889 | |||||||||
Debt instruments | 4,573,059 | 4,337,914 | 3,756,255 | |||||||||
Loans and advances to customers | 26,501,282 | 21,403,561 | 10,421,235 | |||||||||
Insurance contracts linked to pensions (Note 25) | 103,821 | 106,617 | 108,570 | |||||||||
Other interest | 2,682,812 | 4,449,463 | 1,829,624 | |||||||||
Total | 36,840,896 | 33,098,866 | 17,444,350 | |||||||||
Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Deposits from the Bank of Spain and other central banks | 300,374 | 485,725 | 246,066 | |||||||||
Deposits from credit institutions | 3,297,332 | 3,106,892 | 1,893,641 | |||||||||
Customer deposits | 11,083,439 | 9,382,865 | 3,725,517 | |||||||||
Marketable debt securities | 5,828,925 | 4,262,401 | 1,840,311 | |||||||||
Subordinated liabilities (Note 23) | 1,693,737 | 1,568,471 | 740,871 | |||||||||
Pension funds (Note 25) | 735,110 | 640,545 | 649,846 | |||||||||
Equity having the substance of a financial liability | 85,229 | 118,389 | 151,952 | |||||||||
Other interest | 1,732,987 | 3,199,675 | 1,023,680 | |||||||||
Total | 24,757,133 | 22,764,963 | 10,271,884 | |||||||||
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Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Equity instruments classified as: | ||||||||||||
Financial assets held for trading | 258,164 | 175,543 | 113,262 | |||||||||
Available-for-sale financial assets | 145,874 | 160,033 | 275,776 | |||||||||
Of which: relating to San Paolo IMI S.p.A. | 90,037 | 74,281 | 61,627 | |||||||||
404,038 | 335,576 | 389,038 | ||||||||||
Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Cepsa | 370,169 | 476,191 | 296,197 | |||||||||
Unión Fenosa | — | 78,597 | 88,114 | |||||||||
Técnicas Reunidas | — | 11,287 | 15,067 | |||||||||
Alcaidesa Holding, S.A. | — | — | 14,695 | |||||||||
UCI | — | 19,850 | 13,754 | |||||||||
Attijariwafa | 24,230 | 16,707 | 10,533 | |||||||||
Sovereign | 9,199 | — | — | |||||||||
Other companies | 23,323 | 16,525 | 10,676 | |||||||||
426,921 | 619,157 | 449,036 | ||||||||||
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Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Collection and payment services: | ||||||||||||
Bills | 247,129 | 233,503 | 299,761 | |||||||||
Demand accounts | 554,882 | 544,629 | 446,109 | |||||||||
Cards | 1,291,327 | 1,153,252 | 919,598 | |||||||||
Cheques | 455,194 | 270,867 | 146,892 | |||||||||
Orders | 213,982 | 214,184 | 195,886 | |||||||||
2,762,514 | 2,416,435 | 2,008,246 | ||||||||||
Marketing of non-banking financial products: | ||||||||||||
Investment funds | 1,685,459 | 1,498,757 | 1,192,003 | |||||||||
Pension funds | 402,045 | 409,671 | 354,705 | |||||||||
Insurance | 1,207,905 | 924,121 | 523,961 | |||||||||
3,295,409 | 2,832,549 | 2,070,669 | ||||||||||
Securities services: | ||||||||||||
Securities underwriting and placement | 113,712 | 71,562 | 38,189 | |||||||||
Securities trading | 350,801 | 258,364 | 205,254 | |||||||||
Administration and custody | 263,529 | 274,444 | 233,718 | |||||||||
Asset management | 76,613 | 58,574 | 71,551 | |||||||||
804,655 | 662,944 | 548,712 | ||||||||||
Other: | ||||||||||||
Foreign exchange | 70,680 | 59,968 | 39,427 | |||||||||
Financial guarantees | 306,853 | 254,608 | 255,087 | |||||||||
Commitment fees | 106,412 | 58,380 | 53,947 | |||||||||
Other fees and commissions | 1,189,043 | 1,137,210 | 676,529 | |||||||||
1,672,988 | 1,510,166 | 1,024,990 | ||||||||||
8,535,566 | 7,422,094 | 5,652,617 | ||||||||||
Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Fees and commissions assigned to third parties | 798,034 | 653,362 | 535,293 | |||||||||
Of which: Cards | 627,610 | 533,333 | 361,134 | |||||||||
Brokerage fees on lending and deposit transactions | 98,589 | 134,372 | 121,640 | |||||||||
Other fees and commissions | 415,679 | 378,048 | 268,452 | |||||||||
1,312,302 | 1,165,782 | 925,385 | ||||||||||
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�� | ||||||||||||||||||||||||||||||||||||
Thousands of Euros | ||||||||||||||||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||||||||||||||
Life | Non-Life | Total | Life | Non-Life | Total | Life | Non-Life | Total | ||||||||||||||||||||||||||||
Net premiums collected | 4,388,208 | 283,903 | 4,672,111 | 2,080,922 | 199,280 | 2,280,202 | 1,997,244 | 213,022 | 2,210,266 | |||||||||||||||||||||||||||
Claims paid and other insurance- related expenses | (2,007,093 | ) | (160,507 | ) | (2,167,600 | ) | (1,418,954 | ) | (99,032 | ) | (1,517,986 | ) | (928,635 | ) | (75,134 | ) | (1,003,769 | ) | ||||||||||||||||||
Reinsurance income | 48,545 | 56,927 | 105,472 | 52,712 | 35,740 | 88,452 | 6,835 | 7,578 | 14,413 | |||||||||||||||||||||||||||
Net charges to liabilities under insurance contracts | (2,884,229 | ) | (145,880 | ) | (3,030,109 | ) | (1,151,936 | ) | (135,373 | ) | (1,287,309 | ) | (1,351,477 | ) | (146,215 | ) | (1,497,692 | ) | ||||||||||||||||||
Finance income | 910,112 | 26,828 | 936,940 | 735,870 | 58,525 | 794,395 | 462,533 | 32,414 | 494,947 | |||||||||||||||||||||||||||
Finance charges | (216,671 | ) | (2,292 | ) | (218,963 | ) | (130,509 | ) | (568 | ) | (131,077 | ) | (56,475 | ) | (316 | ) | (56,791 | ) | ||||||||||||||||||
238,872 | 58,979 | 297,851 | 168,105 | 58,572 | 226,677 | 130,025 | 31,349 | 161,374 | ||||||||||||||||||||||||||||
Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Fixed-income | 80,967 | 798,301 | 437,446 | |||||||||
Equities | 1,929,370 | 683,887 | 484,012 | |||||||||
Of which: | ||||||||||||
Financial assets and liabilities held for trading | 1,554,709 | 338,030 | 365,175 | |||||||||
Available-for-sale financial assets | 374,661 | 345,857 | 118,837 | |||||||||
Of which due to the sale of: | ||||||||||||
Bolsas y Mercados Españoles | 106,197 | — | — | |||||||||
Shinsei | — | 49,332 | — | |||||||||
Commerzbank | — | 24,424 | — | |||||||||
Sacyr-Vallehermoso | — | — | 46,815 | |||||||||
Financial derivatives and other | 72,504 | 2,824 | (182,862 | ) | ||||||||
2,082,841 | 1,485,012 | 738,596 | ||||||||||
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Thousands of Euros | ||||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||
Sales/ | Cost of | Sales/ | Cost of | Sales/ | Cost of | |||||||||||||||||||
Line of Business | Income | Sales | Income | Sales | Income | Sales | ||||||||||||||||||
Property | 45,875 | (17,531 | ) | 80,464 | (55,789 | ) | 15,184 | (641 | ) | |||||||||||||||
Rail transport | 240,411 | (190,236 | ) | 285,207 | (233,085 | ) | — | — | ||||||||||||||||
Other | 448,316 | (407,922 | ) | 199,854 | (120,473 | ) | 283,583 | (179,818 | ) | |||||||||||||||
734,602 | (615,689 | ) | 565,525 | (409,347 | ) | 298,767 | (180,459 | ) | ||||||||||||||||
Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Exploitation of investment property and operating leases | 3,507 | 4,345 | 3,192 | |||||||||
Commissions on financial instruments offsetting related direct costs | 176,536 | 154,187 | 118,839 | |||||||||
Other | 144,222 | 97,697 | 79,114 | |||||||||
324,265 | 256,229 | 201,145 | ||||||||||
a) | Breakdown | ||
The breakdown of “Personnel expenses” is as follows: |
Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Wages and salaries | 4,419,900 | 4,076,080 | 3,039,631 | |||||||||
Social security costs | 681,979 | 646,058 | 566,692 | |||||||||
Charges to defined benefit pension provisions (Note 25) | 222,878 | 245,554 | 95,799 | |||||||||
Contributions to defined contribution pension funds | 36,794 | 20,192 | 18,475 | |||||||||
Share-based payment costs | 19,167 | 19,167 | — | |||||||||
Of which: | ||||||||||||
Granted to the Bank’s directors | 641 | 641 | — | |||||||||
Other personnel expenses | 664,729 | 668,689 | 575,574 | |||||||||
6,045,447 | 5,675,740 | 4,296,171 | ||||||||||
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b) | Headcount | |
The average number of employees in the Group, by professional category, was as follows: |
Average Number | ||||||||
of Employees (**) | ||||||||
2006 | 2005 | |||||||
The Bank: | ||||||||
Senior executives (*) | 81 | 81 | ||||||
Other line personnel | 15,729 | 15,731 | ||||||
Clerical staff | 4,231 | 4,595 | ||||||
General services personnel | 45 | 49 | ||||||
20,086 | 20,456 | |||||||
Banesto | 10,188 | 10,560 | ||||||
Rest of Spain | 4,996 | 3,789 | ||||||
Abbey | 17,461 | 19,904 | ||||||
Other companies | 75,608 | 69,858 | ||||||
128,339 | 124,567 | |||||||
(*) Categories of Deputy Assistant General Manager and above, including senior management. | ||
(**) Excluding personnel assigned to discontinued operations. |
Functional Breakdown by Gender | ||||||||||||||||||||||||
Executives | Other Line Personnel | Clerical Staff | ||||||||||||||||||||||
Men | Women | Men | Women | Men | Women | |||||||||||||||||||
Continental Europe | 85 | % | 15 | % | 61 | % | 39 | % | 62 | % | 38 | % | ||||||||||||
United Kingdom | 80 | % | 20 | % | 44 | % | 56 | % | 24 | % | 76 | % | ||||||||||||
Latin America | 72 | % | 28 | % | 60 | % | 40 | % | 44 | % | 56 | % | ||||||||||||
Total | 79 | % | 21 | % | 59 | % | 41 | % | 44 | % | 56 | % | ||||||||||||
c) | Share-based payments |
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Euros | Date of | Date of | ||||||||||||||||||||||||||
Number of | Exercise | Year | Employee | Number of | Commencement | Expiry of | ||||||||||||||||||||||
Shares | Price | Granted | Group | Persons | of Exercise Period | Exercise Period | ||||||||||||||||||||||
Plans outstanding at January 1, 2004 | 25,739,966 | 9. | 38 | |||||||||||||||||||||||||
Options exercised | (1,934,406 | ) | (2. | 83) | ||||||||||||||||||||||||
Of which: | ||||||||||||||||||||||||||||
Plan Four | (36,000 | ) | 7. | 84 | ||||||||||||||||||||||||
Managers Plan 99 | (1,139,488 | ) | 2. | 29 | ||||||||||||||||||||||||
Additional Managers Plan 99 | (55,668 | ) | 2. | 41 | ||||||||||||||||||||||||
Young Executives Plan | (563,250 | ) | 2. | 29 | ||||||||||||||||||||||||
European Branches Plan | (140,000 | ) | 8. | 23 | ||||||||||||||||||||||||
Options cancelled or not exercised | (2,678,810 | ) | — | |||||||||||||||||||||||||
Plans outstanding at December 31, 2004 | 21,126,750 | 9. | 94 | |||||||||||||||||||||||||
Of which: | ||||||||||||||||||||||||||||
Plan Four | 228,000 | 7. | 84 | 1998 | Managers | 5 | 01/09/03 | 12/30/05 | ||||||||||||||||||||
Investment Bank Plan | 4,503,750 | 10. | 25 | 2000 | Managers | 56 | 06/16/03 | 06/15/05 | ||||||||||||||||||||
Young Executives Plan | 364,000 | 2. | 29 | 2000 | Managers | 111 | 07/01/03 | 06/30/05 | ||||||||||||||||||||
Managers Plan 2000 | 13,341,000 | 10. | 545 | 2000 | Managers | 970 | 12/30/03 | 12/29/05 | ||||||||||||||||||||
European Branches Plan | 2,690,000 | 7. | 60 (*) | 2002 and 2003 | Managers | 27 | 07/01/05 | 07/15/05 | ||||||||||||||||||||
Plans outstanding at January 1, 2005 | 21,126,750 | 9. | 94 | |||||||||||||||||||||||||
Options granted (Plan I06) | 99,900,000 | 9. | 09 (**) | Managers | 2,601 | 01/15/08 | 01/15/09 | |||||||||||||||||||||
Options exercised | (15,606,000 | ) | (9. | 83) | ||||||||||||||||||||||||
Of which: | ||||||||||||||||||||||||||||
Plan Four | (228,000 | ) | 7. | 84 | ||||||||||||||||||||||||
Investment Bank Plan | — | — | ||||||||||||||||||||||||||
Young Executives Plan | (329,000 | ) | 2. | 29 | ||||||||||||||||||||||||
Managers Plan 2000 | (12,389,000 | ) | 10. | 545 | ||||||||||||||||||||||||
European Branches Plan | (2,660,000 | ) | 7. | 60 (*) | ||||||||||||||||||||||||
Options cancelled or not exercised | (5,520,750 | ) | — | |||||||||||||||||||||||||
Plans outstanding at December 31, 2005 | 99,900,000 | 9. | 09 | Managers | 2,601 | 01/15/08 | 01/15/09 | |||||||||||||||||||||
Options exercised | — | — | ||||||||||||||||||||||||||
Options cancelled, net (Plan I06) | (3,648,610 | ) | 9. | 09 | Managers | (44 | ) | 01/15/08 | 01/15/09 | |||||||||||||||||||
Plans outstanding at December 31, 2006 | 96,251,390 | 9. | 09 | Managers | 2,557 | 01/15/08 | 01/15/09 | |||||||||||||||||||||
(*) | The average exercise price ranges from€5.65 to€10.15 per share. | |
(**) | The exercise price of the options under Plan I06 is€9.09 per share, which is the weighted average of the daily average market price of the Bank shares on the continuous market in the first 15 trading days of January 2005. This was the criterion established in the resolution approving Plan I06 adopted at the Annual General Meeting held on June 18, 2005. The documentation on the aforementioned resolution stated correctly the method to be used to set the exercise price but, by mistake, an amount of€9.07 per share was mentioned rather than the correct amount of€9.09 per share. |
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Pounds | Date of | Date of | ||||||||||||||||||||||||||
Number of | Sterling (*) | Year | Employee | Number of | Commencement | Expiry of | ||||||||||||||||||||||
Shares | Exercise Price | Granted | Group | Persons | of Exercise Period | Exercise Period | ||||||||||||||||||||||
Plans outstanding at December 31, 2004 | 17,675,567 | 3.58 | ||||||||||||||||||||||||||
Of which: | ||||||||||||||||||||||||||||
Executive Options | 358,844 | 4.16 | ||||||||||||||||||||||||||
Employee Options | 56,550 | 5.90 | ||||||||||||||||||||||||||
Sharesave | 17,260,173 | 3.56 | ||||||||||||||||||||||||||
Plans outstanding at January 1, 2005 | 17,675,567 | 3.58 | ||||||||||||||||||||||||||
Options exercised | (1,769,216 | ) | 4.45 | |||||||||||||||||||||||||
Of which: | ||||||||||||||||||||||||||||
Executive Options | (89,305 | ) | 4.43 | |||||||||||||||||||||||||
Employee Options | (2,550 | ) | 5.90 | |||||||||||||||||||||||||
Sharesave | (1,677,361 | ) | 4.45 | |||||||||||||||||||||||||
Options cancelled or not exercised | (1,783,670 | ) | — | |||||||||||||||||||||||||
Plans outstanding at December 31, 2005 | 14,122,681 | 3.41 | ||||||||||||||||||||||||||
Of which: | ||||||||||||||||||||||||||||
Executive Options | 269,539 | 4.07 | ||||||||||||||||||||||||||
Employee Options | 54,000 | 5.90 | ||||||||||||||||||||||||||
Sharesave | 13,799,142 | 3.38 | ||||||||||||||||||||||||||
Plans outstanding at January 1, 2006 | 14,122,681 | 3.41 | ||||||||||||||||||||||||||
Options granted (MTIP) | 2,825,123 | 7.50 | 2005 and 2006 | Managers | 174 | First half of 2008 | First half of 2008 | |||||||||||||||||||||
Options exercised | (5,214,171 | ) | 3.41 | |||||||||||||||||||||||||
Of which: | ||||||||||||||||||||||||||||
Executive Options | (87,659 | ) | 4.07 | |||||||||||||||||||||||||
Employee Options | (33,000 | ) | 5.90 | |||||||||||||||||||||||||
Sharesave | (5,093,512 | ) | 3.38 | |||||||||||||||||||||||||
Options cancelled (net) or not exercised | (1,379,401 | ) | — | |||||||||||||||||||||||||
Plans outstanding at December 31, 2006 | 10,354,232 | 4.32 | ||||||||||||||||||||||||||
Of which: | ||||||||||||||||||||||||||||
Executive Options | 178,026 | 4.11 | 2003-2004 | Managers | 13 | 03/26/06 | 03/24/13 | |||||||||||||||||||||
Employee Options | — | — | — | — | — | — | — | |||||||||||||||||||||
Sharesave | 7,638,791 | 3.32 | 1998-2004 | Employees | 4,512 (**) | 04/01/06 | 09/01/11 | |||||||||||||||||||||
MTIP | 2,537,415 | 7.39 | 2005 and 2006 | Managers | 170 | First half of 2008 | First half of 2008 |
(*) | At December 31, 2006, 2005 and 2004 the euro/pound sterling exchange rate was€1.4892/GBP 1,€1.4592/GBP 1 and€1.4183/GBP 1, respectively. | |
(**) | Number of accounts/contracts. A single employee may have more than one account/contract. |
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2006 | 2005 | 2004 | ||||
Risk-free interest rate | 4.5% to 5% | 4.5% to 4.6% | 4.4% to 4.6% | |||
Dividend increase, based solely on the average increase since 1989 | 10% | 10% | 10% | |||
Volatility of underlying shares based on historical volatility over 5 years | 17.70% to 19.85% | 16.96% to 17.58% | 18.0% to 21.54% | |||
Expected life of options granted under: | ||||||
Employee Sharesave Plan (*) | 3.5 to 7 years | 3.5 to 7 years | 3.5 to 7 years | |||
Executive Share Option Plan | 10 years | 10 years | 10 years | |||
Employee Share Option Plan | 10 years | 10 years | 10 years | |||
Medium-Term Incentive Plan | 3 years | 3 years | 3 years |
a) | Breakdown | ||
The breakdown of the balance of “Other general administrative expenses” is as follows: |
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Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Property, fixtures and supplies | 980,836 | 887,103 | 539,645 | |||||||||
Other administrative expenses | 847,117 | 832,787 | 456,591 | |||||||||
Technology and systems | 421,901 | 422,613 | 326,362 | |||||||||
Advertising | 482,165 | 397,153 | 292,964 | |||||||||
Communications | 351,784 | 394,869 | 231,372 | |||||||||
Technical reports | 263,918 | 275,303 | 200,768 | |||||||||
Per diems and travel expenses | 243,990 | 216,127 | 155,172 | |||||||||
Taxes other than income tax | 231,498 | 183,320 | 124,773 | |||||||||
Surveillance and cash courier services | 190,864 | 159,490 | 138,271 | |||||||||
Insurance premiums | 35,897 | 28,611 | 28,396 | |||||||||
4,049,970 | 3,797,376 | 2,494,314 | ||||||||||
b) | Other information | ||
The balance of “Technical reports” includes the fees paid by the various Group companies (detailed in the accompanying Exhibits) to their respective auditors, the detail being as follows: |
Millions of Euros | ||||||||||||
2006 | 2005 | 2004 (*) | ||||||||||
Audit of the annual financial statements of the companies audited by the Deloitte worldwide organization | 15.6 | 15.8 | 15.9 | |||||||||
Of which: | ||||||||||||
Abbey | 4.1 | 4.9 | 6.5 | |||||||||
Audit of the Bank’s individual and consolidated financial statements | 1.0 | 1.0 | 1.0 | |||||||||
Fees for audits performed by other firms | 0.1 | 0.1 | 0.6 | |||||||||
15.7 | 15.9 | 16.5 |
(*) Includes the fees incurred by the Abbey Group in 2004. |
1. | Due diligence review and other corporate transaction services:€3.3 million (2005:€0.6 million; 2004:€0.4 million). Additionally, the Group’s auditors provided other non-attest services to various Group companies for€5.5 million in 2006,€4.5 million in 2005 and€7.4 million in 2004. | ||
The services commissioned from the Group’s auditors meet the independence requirements stipulated by Law 44/2002, of November 22, on Financial System Reform Measures and by the Sarbanes-Oxley Act of 2002, and they did not involve the performance of any work that is incompatible with the audit function. | |||
2. | Services provided by audit firms other than Deloitte:€14.6 million (2005:€21.4 million; 2004:€29.8 million). |
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Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Contribution to Deposit Guarantee Fund | 180,217 | 171,991 | 140,650 | |||||||||
Other | 263,400 | 173,778 | 122,469 | |||||||||
443,617 | 345,769 | 263,119 | ||||||||||
52. | Other gains and Other losses |
“Other gains” and “Other losses” include the income and expenses arising from non-ordinary activities not included in other items. The breakdown of the net balance of these two items is as follows: |
Thousands of Euros | ||||||||||||
Net Balance | 2006 | 2005 | 2004 | |||||||||
On disposal of tangible assets (Note 16) | 89,024 | 80,630 | 169,748 | |||||||||
On disposal of investments | 271,961 | 1,298,935 | 30,891 | |||||||||
Of which: | ||||||||||||
Unión Fenosa (Note 3-c) | — | 1,156,648 | — | |||||||||
Sale of ADRs (Chile) (Note 3-c) | 269,768 | — | — | |||||||||
Other | 1,047,678 | 1,135,649 | 713,971 | |||||||||
Of which: gains obtained on the disposal of (Note 8): | ||||||||||||
Antena 3 | 294,287 | — | — | |||||||||
San Paolo | 704,936 | — | — | |||||||||
The Royal Bank of Scotland Group plc | — | 717,394 | 472,227 | |||||||||
Auna | — | 354,838 | — | |||||||||
Vodafone | — | — | 241,771 | |||||||||
Shinsei | — | — | 117,559 | |||||||||
Net gains | 1,408,663 | 2,515,214 | 914,610 | |||||||||
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December 31, 2006 | ||||||||||||||||||||||||||||||||
Millions of Euros | ||||||||||||||||||||||||||||||||
Within 1 | 1 to 3 | 3 to 12 | 1 to 5 | After 5 | Average Interest | |||||||||||||||||||||||||||
Demand | Month | Months | Months | Years | Years | Total | Rate | |||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Cash and balances with central banks | 9,725 | 3,281 | — | 1 | — | 828 | 13,835 | 3.99 | % | |||||||||||||||||||||||
Available-for-sale financial assets: | ||||||||||||||||||||||||||||||||
Debt instruments | 26 | 2,260 | 2,501 | 3,771 | 9,599 | 14,570 | 32,727 | 5.96 | % | |||||||||||||||||||||||
Loans and receivables: | ||||||||||||||||||||||||||||||||
Loans and advances to credit institutions | 5,668 | 20,073 | 6,459 | 6,118 | 4,002 | 3,041 | 45,361 | 3.85 | % | |||||||||||||||||||||||
Loans and advances to customers | 10,291 | 19,607 | 30,625 | 56,311 | 112,644 | 255,312 | 484,790 | 5.86 | % | |||||||||||||||||||||||
Debt instruments | 565 | — | — | — | — | 57 | 622 | 3.02 | % | |||||||||||||||||||||||
Other financial assets | 7,330 | 2,356 | 184 | 693 | 1,411 | 1,101 | 13,075 | — | ||||||||||||||||||||||||
33,605 | 47,577 | 39,769 | 66,894 | 127,656 | 274,909 | 590,410 | 5.66 | % | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Financial liabilities at amortized cost: | ||||||||||||||||||||||||||||||||
Deposits from central banks | 2 | 14,366 | 1,657 | 503 | 2 | — | 16,530 | 5.25 | % | |||||||||||||||||||||||
Deposits from credit institutions | 6,445 | 21,646 | 9,981 | 11,680 | 5,446 | 1,618 | 56,816 | 4.07 | % | |||||||||||||||||||||||
Customer deposits | 198,606 | 54,331 | 24,976 | 22,199 | 12,594 | 1,671 | 314,377 | 3.90 | % | |||||||||||||||||||||||
Marketable debt securities | 2,288 | 14,079 | 16,489 | 14,701 | 37,170 | 89,682 | 174,409 | 3.91 | % | |||||||||||||||||||||||
Subordinated liabilities | 253 | — | 234 | 108 | 5,577 | 24,250 | 30,422 | 5.74 | % | |||||||||||||||||||||||
Other financial liabilities | 6,797 | 1,653 | 1,161 | 2,378 | 266 | 494 | 12,749 | N/A | ||||||||||||||||||||||||
214,391 | 106,075 | 54,498 | 51,569 | 61,055 | 117,715 | 605,303 | 4.05 | % | ||||||||||||||||||||||||
Difference (assets less liabilities) | (180,786 | ) | (58,498 | ) | (14,729 | ) | 15,325 | 66,601 | 157,194 | (14,893 | ) | |||||||||||||||||||||
December 31, 2005 | ||||||||||||||||||||||||||||||||
Millions of Euros | ||||||||||||||||||||||||||||||||
Within 1 | 1 to 3 | 3 to 12 | 1 to 5 | After 5 | Average Interest | |||||||||||||||||||||||||||
Demand | Month | Months | Months | Years | Years | Total | Rate | |||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Cash and balances with central banks | 7,232 | 4,701 | 4,152 | 1 | — | — | 16,086 | 2.62 | % | |||||||||||||||||||||||
Available-for-sale financial assets: | ||||||||||||||||||||||||||||||||
Debt instruments | 77 | 1,769 | 4,239 | 4,553 | 41,930 | 15,486 | 68,054 | 3.58 | % | |||||||||||||||||||||||
Loans and receivables: | ||||||||||||||||||||||||||||||||
Loans and advances to credit institutions | 4,102 | 20,681 | 9,121 | 7,070 | 5,247 | 845 | 47,066 | 2.93 | % | |||||||||||||||||||||||
Loans and advances to customers | 11,131 | 14,728 | 24,026 | 43,508 | 85,929 | 223,596 | 402,918 | 5.84 | % | |||||||||||||||||||||||
Debt instruments | — | — | — | 17 | 46 | 108 | 171 | 2.49 | % | |||||||||||||||||||||||
Other financial assets | 4,656 | 2,988 | 29 | 567 | 393 | 996 | 9,629 | N/A | ||||||||||||||||||||||||
27,198 | 44,867 | 41,567 | 55,716 | 133,545 | 241,031 | 543,924 | 5.10 | % | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Financial liabilities at amortized cost: | ||||||||||||||||||||||||||||||||
Deposits from central banks | 396 | 18,262 | 3,773 | — | — | — | 22,431 | 2.42 | % | |||||||||||||||||||||||
Deposits from credit institutions | 3,709 | 50,254 | 20,781 | 11,593 | 6,195 | 1,696 | 94,228 | 2.91 | % | |||||||||||||||||||||||
Customer deposits | 166,531 | 42,322 | 39,397 | 25,199 | 16,742 | 1,537 | 291,728 | 3.59 | % | |||||||||||||||||||||||
Marketable debt securities | — | 7,128 | 13,613 | 9,124 | 46,826 | 40,518 | 117,209 | 3.91 | % | |||||||||||||||||||||||
Subordinated liabilities | — | 48 | 175 | 1,437 | 4,240 | 22,863 | 28,763 | (Note 23 | ) | |||||||||||||||||||||||
Other financial liabilities | 7,815 | 971 | 396 | 1,184 | 893 | 34 | 11,293 | N/A | ||||||||||||||||||||||||
178,451 | 118,985 | 78,135 | 48,537 | 74,896 | 66,648 | 565,652 | 3.54 | % | ||||||||||||||||||||||||
Difference (assets less liabilities) | (151,253 | ) | (74,118 | ) | (36,568 | ) | 7,179 | 58,649 | 174,383 | (21,728 | ) | |||||||||||||||||||||
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Equivalent Value in Millions of Euros | ||||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||
Cash and balances with central banks | 10,042 | — | 11,749 | — | 5,721 | — | ||||||||||||||||||
Financial assets and liabilities held for trading | 139,783 | 106,075 | 128,973 | 95,225 | 96,612 | 80,592 | ||||||||||||||||||
Other financial instruments at fair value | 10,414 | 12,140 | 45,534 | 11,810 | 42,176 | 11,244 | ||||||||||||||||||
Available-for-sale financial assets | 18,530 | — | 16,814 | — | 16,754 | — | ||||||||||||||||||
Loans and receivables | 248,977 | — | 221,041 | — | 194,005 | — | ||||||||||||||||||
Investments | 2,461 | — | 238 | — | 218 | — | ||||||||||||||||||
Tangible assets | 4,696 | — | 4,745 | — | 6,125 | — | ||||||||||||||||||
Intangible assets | 13,626 | — | 12,910 | — | 12,325 | — | ||||||||||||||||||
Financial liabilities at amortized cost | — | 309,610 | — | 279,575 | — | 231,058 | ||||||||||||||||||
Liabilities under insurance contracts | — | 2,157 | — | 38,247 | — | 37,501 | ||||||||||||||||||
Other | 7,793 | 20,598 | 11,741 | 18,919 | 13,141 | 16,432 | ||||||||||||||||||
456,322 | 450,580 | 453,745 | 443,776 | 387,077 | 376,827 | |||||||||||||||||||
Millions of Euros | ||||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||
Carrying | Carrying | Carrying | ||||||||||||||||||||||
Assets | Amount | Fair Value | Amount | Fair Value | Amount | Fair Value | ||||||||||||||||||
Loans and receivables: | ||||||||||||||||||||||||
Loans and advances to credit institutions | 45,361 | 45,359 | 47,066 | 46,560 | 38,978 | 38,941 | ||||||||||||||||||
Money market operations through Counterparties | 200 | 200 | — | — | 3,908 | 3,908 | ||||||||||||||||||
Loans and advances to customers | 484,790 | 487,533 | 402,918 | 404,950 | 346,551 | 347,086 | ||||||||||||||||||
Debt instruments | 622 | 622 | 171 | 171 | — | — | ||||||||||||||||||
Other financial assets | 13,076 | 13,076 | 9,629 | 9,629 | 4,996 | 4,996 | ||||||||||||||||||
544,049 | 546,790 | 459,784 | 461,310 | 394,433 | 394,931 | |||||||||||||||||||
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Millions of Euros | ||||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||
Carrying | Carrying | Carrying | ||||||||||||||||||||||
Liabilities | Amount | Fair Value | Amount | Fair Value | Amount | Fair Value | ||||||||||||||||||
Financial liabilities at amortized cost: | ||||||||||||||||||||||||
Deposits from central banks | 16,530 | 16,528 | 22,431 | 22,431 | 8,068 | 8,068 | ||||||||||||||||||
Deposits from credit institutions | 56,816 | 56,826 | 94,228 | 94,221 | 50,458 | 50,458 | ||||||||||||||||||
Money market operations through counterparties | — | — | — | — | 2,499 | 2,499 | ||||||||||||||||||
Customer deposits (*) | 314,377 | 314,320 | 291,727 | 291,727 | 262,670 | 263,006 | ||||||||||||||||||
Marketable debt securities | 174,409 | 174,878 | 117,209 | 117,117 | 90,803 | 93,493 | ||||||||||||||||||
Subordinated liabilities | 30,423 | 31,822 | 28,763 | 29,278 | 27,470 | 28,203 | ||||||||||||||||||
Other financial liabilities | 12,748 | 12,752 | 11,293 | 11,293 | 5,863 | 5,863 | ||||||||||||||||||
605,303 | 607,126 | 565,651 | 566,067 | 447,831 | 451,590 | |||||||||||||||||||
(*) For these purposes, the fair value of customer demand deposits is taken to be the same as their carrying amount. |
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Millions of Euros | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial | Financial | Financial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Management | Management | Management | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Summarized) | Continental | and Equity | Continental | and Equity | Continental | and Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet | Europe | Abbey | Latin America | Stakes | Total | Europe | Abbey | Latin America | Stakes | Total | Europe | Abbey | Latin America | Stakes | Total | |||||||||||||||||||||||||||||||||||||||||||||
Loans and advances to customers | 271,687 | 190,512 | 60,172 | 975 | 523,346 | 210,299 | 171,796 | 52,919 | 815 | 435,829 | 177,772 | 156,790 | 34,593 | 196 | 369,351 | |||||||||||||||||||||||||||||||||||||||||||||
Financial assets held for trading (excluding loans and advances) | 33,831 | 61,507 | 27,846 | 2,028 | 125,212 | 26,315 | 64,014 | 25,844 | 1,276 | 117,449 | 14,657 | 51,060 | 14,463 | 1,190 | 81,370 | |||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale financial assets | 13,126 | 23 | 17,943 | 7,606 | 38,698 | 12,604 | 18 | 16,308 | 45,015 | 73,945 | 12,008 | 14 | 13,924 | 18,576 | 44,522 | |||||||||||||||||||||||||||||||||||||||||||||
Loans and advances to credit institutions | 67,061 | 18,185 | 20,310 | 22,957 | 128,513 | 69,622 | 13,070 | 24,436 | 15,718 | 122,846 | 71,819 | 21,240 | 21,245 | 9,955 | 124,259 | |||||||||||||||||||||||||||||||||||||||||||||
Non-current assets | 4,558 | 5,059 | 1,695 | 1,243 | 12,555 | 4,219 | 5,197 | 1,392 | 1,396 | 12,204 | 3,932 | 5,164 | 1,163 | 738 | 10,997 | |||||||||||||||||||||||||||||||||||||||||||||
Other asset accounts | 18,583 | 8,691 | 16,842 | 126,028 | 170,144 | 15,709 | 47,420 | 17,194 | 94,342 | 174,665 | 22,105 | 39,903 | 10,078 | 81,795 | 153,881 | |||||||||||||||||||||||||||||||||||||||||||||
Total assets/liabilities | 408,846 | 283,977 | 144,809 | 160,836 | 998,468 | 338,767 | 301,515 | 138,093 | 158,562 | 936,937 | 302,293 | 274,171 | 95,466 | 112,450 | 784,380 | |||||||||||||||||||||||||||||||||||||||||||||
Customer deposits | 140,231 | 115,194 | 75,301 | 497 | 331,223 | 127,356 | 110,776 | 65,706 | 1,927 | 305,765 | 122,635 | 113,353 | 45,718 | 1,505 | 283,211 | |||||||||||||||||||||||||||||||||||||||||||||
Marketable debt securities | 47,632 | 72,857 | 5,258 | 78,321 | 204,069 | 27,011 | 62,462 | 6,213 | 53,154 | 148,840 | 21,595 | 52,333 | 5,201 | 34,709 | 113,838 | |||||||||||||||||||||||||||||||||||||||||||||
Subordinated liabilities | 2,362 | 9,430 | 2,383 | 16,248 | 30,423 | 2,241 | 11,428 | 1,130 | 13,964 | 28,763 | 2,120 | 10,622 | 709 | 14,018 | 27,469 | |||||||||||||||||||||||||||||||||||||||||||||
Liabilities under insurance contracts | 8,547 | 71 | 2,086 | — | 10,704 | 6,414 | 36,521 | 1,737 | — | 44,672 | 4,844 | 36,446 | 1,054 | — | 42,344 | |||||||||||||||||||||||||||||||||||||||||||||
Deposits from credit institutions | 89,016 | 51,020 | 32,403 | 8,935 | 181,374 | 90,341 | 40,761 | 42,208 | 38,384 | 211,695 | 78,942 | 27,162 | 27,975 | 15,549 | 149,628 | |||||||||||||||||||||||||||||||||||||||||||||
Other liability accounts | 103,090 | 32,076 | 19,529 | 21,137 | 175,833 | 70,527 | 37,259 | 13,033 | 18,907 | 139,726 | 59,926 | 31,990 | 9,026 | 16,327 | 117,269 | |||||||||||||||||||||||||||||||||||||||||||||
Equity | 17,967 | 3,328 | 7,847 | 35,700 | 64,842 | 14,878 | 2,307 | 8,066 | 32,224 | 57,475 | 12,231 | 2,265 | 5,783 | 30,342 | 50,621 | |||||||||||||||||||||||||||||||||||||||||||||
Off-balance-sheet customer funds | 102,465 | 8,307 | 56,352 | — | 167,124 | 97,141 | 5,999 | 49,705 | — | 152,846 | 89,567 | 5,059 | 33,889 | — | 128,515 | |||||||||||||||||||||||||||||||||||||||||||||
Total funds under management | 511,311 | 292,284 | 201,160 | 160,836 | 1,165,592 | 435,908 | 307,514 | 187,799 | 158,562 | 1,089,783 | 391,860 | 279,230 | 129,355 | 112,450 | 912,895 | |||||||||||||||||||||||||||||||||||||||||||||
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Millions of Euros | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial | Financial | Financial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Management | Management | Management | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Continental | Latin | and Equity | Continental | Latin | and Equity | Continental | Latin | and Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Summarized) Income Statement | Europe | Abbey | America | Stakes | Total | Europe | Abbey | America | Stakes | Total | Europe | Abbey | America | Stakes | Total | |||||||||||||||||||||||||||||||||||||||||||||
NET INTEREST INCOME | 6,206 | 2,108 | 5,280 | (1,106 | ) | 12,488 | 5,366 | 2,083 | 3,960 | (740 | ) | 10,669 | 4,770 | — | 3,314 | (522 | ) | 7,562 | ||||||||||||||||||||||||||||||||||||||||||
Share of results of entities accounted for using the equity method | 6 | 3 | 7 | 411 | 427 | 26 | 2 | 7 | 584 | 619 | 33 | — | 4 | 412 | 449 | |||||||||||||||||||||||||||||||||||||||||||||
Net fee and commission income | 3,653 | 1,025 | 2,556 | (11 | ) | 7,223 | 3,291 | 947 | 2,037 | (19 | ) | 6,256 | 3,143 | — | 1,597 | (13 | ) | 4,727 | ||||||||||||||||||||||||||||||||||||||||||
Insurance activity income | 137 | — | 165 | (4 | ) | 298 | 115 | — | 109 | 2 | 227 | 87 | — | 78 | (4 | ) | 161 | |||||||||||||||||||||||||||||||||||||||||||
Gains/losses on financial assets and liabilities and Exchange differences | 708 | 423 | 634 | 414 | 2,179 | 505 | 345 | 759 | (47 | ) | 1,562 | 404 | — | 457 | 239 | 1,100 | ||||||||||||||||||||||||||||||||||||||||||||
GROSS INCOME | 10,710 | 3,559 | 8,642 | (296 | ) | 22,615 | 9,303 | 3,377 | 6,872 | (219 | ) | 19,333 | 8,437 | — | 5,450 | 112 | 13,999 | |||||||||||||||||||||||||||||||||||||||||||
Sales and income from the provision of non-financial services (net of expenses) and Other operating income/expense | 39 | 42 | (120 | ) | (31 | ) | (70 | ) | 55 | 36 | (90 | ) | (25 | ) | (25 | ) | 1 | — | (48 | ) | (18 | ) | (65 | ) | ||||||||||||||||||||||||||||||||||||
General administrative expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Personnel expenses | (2,685 | ) | (1,062 | ) | (2,052 | ) | (205 | ) | (6,004 | ) | (2,510 | ) | (1,119 | ) | (1,807 | ) | (183 | ) | (5,619 | ) | (2,502 | ) | — | (1,526 | ) | (193 | ) | (4,221 | ) | |||||||||||||||||||||||||||||||
Other administrative expenses | (1,272 | ) | (815 | ) | (1,774 | ) | (160 | ) | (4,021 | ) | (1,154 | ) | (888 | ) | (1,551 | ) | (171 | ) | (3,763 | ) | (1,097 | ) | — | (1,246 | ) | (105 | ) | (2,448 | ) | |||||||||||||||||||||||||||||||
Depreciation and amortization | (522 | ) | (105 | ) | (309 | ) | (215 | ) | (1,151 | ) | (490 | ) | (117 | ) | (336 | ) | (74 | ) | (1,017 | ) | (512 | ) | — | (284 | ) | (38 | ) | (834 | ) | |||||||||||||||||||||||||||||||
NET OPERATING INCOME | 6,270 | 1,619 | 4,387 | (907 | ) | 11,369 | 5,204 | 1,289 | 3,088 | (672 | ) | 8,909 | 4,327 | — | 2,346 | (242 | ) | 6,431 | ||||||||||||||||||||||||||||||||||||||||||
Net impairment losses | (1,355 | ) | (387 | ) | (886 | ) | 78 | (2,550 | ) | (977 | ) | (318 | ) | (433 | ) | (74 | ) | (1,802 | ) | (1,265 | ) | — | (401 | ) | (181 | ) | (1,847 | ) | ||||||||||||||||||||||||||||||||
Other gains/losses | (244 | ) | — | (226 | ) | 801 | 331 | (18 | ) | 76 | (219 | ) | 853 | 692 | (7 | ) | — | (111 | ) | (79 | ) | (197 | ) | |||||||||||||||||||||||||||||||||||||
PROFIT/(LOSS) BEFORE TAX | 4,671 | 1,232 | 3,275 | (28 | ) | 9,150 | 4,209 | 1,047 | 2,436 | 107 | 7,799 | 3,055 | — | 1,834 | (502 | ) | 4,387 | |||||||||||||||||||||||||||||||||||||||||||
PROFIT FROM ORDINARY ACTIVITIES | 3,268 | 889 | 2,566 | 133 | 6,856 | 3,020 | 725 | 1,982 | 798 | 6,525 | 2,170 | — | 1,629 | 62 | 3,861 | |||||||||||||||||||||||||||||||||||||||||||||
Profit from discontinued operations | 1,147 | 114 | 9 | 119 | 1,389 | 110 | 86 | 28 | — | 225 | 102 | 32 | 1 | 135 | ||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATED PROFIT FOR THE YEAR | 4,416 | 1,003 | 2,575 | 252 | 8,246 | 3,130 | 811 | 2,010 | 798 | 6,750 | 2,272 | — | 1,661 | 63 | 3,996 | |||||||||||||||||||||||||||||||||||||||||||||
PROFIT ATTRIBUTED TO THE GROUP | 4,144 | 1,003 | 2,287 | 162 | 7,596 | 2,980 | 811 | 1,779 | 650 | 6,220 | 2,159 | — | 1,470 | (23 | ) | 3,606 |
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Millions of Euros | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial | Financial | Financial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Global | Asset | Management | Global | Asset | Management | Global | Asset | Management | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Summarized) Income | Retail | Wholesale | Management | and Equity | Retail | Wholesale | Management | and Equity | Retail | Wholesale | Management | and Equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Statement | Banking | Banking | and Insurance | Stakes | Total | Banking | Banking | and Insurance | Stakes | Total | Banking | Banking | and Insurance | Stakes | Total | |||||||||||||||||||||||||||||||||||||||||||||
NET INTEREST INCOME | 12,372 | 1,167 | 55 | (1,106 | ) | 12,488 | 10,639 | 724 | 46 | (740 | ) | 10,669 | 7,391 | 677 | 16 | (522 | ) | 7,562 | ||||||||||||||||||||||||||||||||||||||||||
Share of results of entities accounted for using the equity method | 16 | — | — | 411 | 427 | 35 | — | — | 584 | 619 | 42 | — | (5 | ) | 412 | 449 | ||||||||||||||||||||||||||||||||||||||||||||
Net fee and commission income | 5,936 | 618 | 680 | (11 | ) | 7,223 | 5,169 | 488 | 618 | (19 | ) | 6,256 | 3,932 | 392 | 416 | (13 | ) | 4,727 | ||||||||||||||||||||||||||||||||||||||||||
Insurance activity income | — | — | 302 | (4 | ) | 298 | — | — | 224 | 2 | 227 | — | — | 165 | (4 | ) | 161 | |||||||||||||||||||||||||||||||||||||||||||
Gains/losses on financial assets and liabilities and Exchange differences | 1,051 | 685 | 29 | 414 | 2,179 | 928 | 654 | 27 | (47 | ) | 1,562 | 323 | 528 | 10 | 239 | 1,100 | ||||||||||||||||||||||||||||||||||||||||||||
GROSS INCOME | 19,375 | 2,470 | 1,066 | (296 | ) | 22,615 | 16,771 | 1,866 | 915 | (219 | ) | 19,333 | 11,688 | 1,597 | 602 | 112 | 13,999 | |||||||||||||||||||||||||||||||||||||||||||
Sales and income from the provision of non-financial services (net of expenses) and Other operating income/expense | (10 | ) | (31 | ) | 2 | (31 | ) | (70 | ) | 24 | (24 | ) | — | (25 | ) | (25 | ) | (24 | ) | (24 | ) | 1 | (18 | ) | (65 | ) | ||||||||||||||||||||||||||||||||||
General administrative expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Personnel expenses | (5,145 | ) | (432 | ) | (222 | ) | (205 | ) | (6,004 | ) | (4,896 | ) | (351 | ) | (189 | ) | (183 | ) | (5,619 | ) | (3,587 | ) | (299 | ) | (142 | ) | (193 | ) | (4,221 | ) | ||||||||||||||||||||||||||||||
Other administrative expenses | (3,445 | ) | (243 | ) | (173 | ) | (160 | ) | (4,021 | ) | (3,208 | ) | (219 | ) | (165 | ) | (171 | ) | (3,763 | ) | (2,062 | ) | (187 | ) | (94 | ) | (105 | ) | (2,448 | ) | ||||||||||||||||||||||||||||||
Depreciation and amortization | (848 | ) | (65 | ) | (23 | ) | (215 | ) | (1,151 | ) | (867 | ) | (58 | ) | (18 | ) | (74 | ) | (1,017 | ) | (731 | ) | (50 | ) | (15 | ) | (38 | ) | (834 | ) | ||||||||||||||||||||||||||||||
NET OPERATING INCOME | 9,927 | 1,699 | 650 | (907 | ) | 11,369 | 7,824 | 1,214 | 543 | (672 | ) | 8,909 | 5,284 | 1,037 | 352 | (242 | ) | 6,431 | ||||||||||||||||||||||||||||||||||||||||||
Net impairment losses | (2,330 | ) | (298 | ) | — | 78 | (2,550 | ) | (1,659 | ) | (69 | ) | — | (74 | ) | (1,802 | ) | (1,506 | ) | (162 | ) | 2 | (181 | ) | (1,847 | ) | ||||||||||||||||||||||||||||||||||
Other gains/losses | (417 | ) | (49 | ) | (5 | ) | 801 | 331 | (176 | ) | 12 | 3 | 853 | 692 | (115 | ) | 3 | (6 | ) | (79 | ) | (197 | ) | |||||||||||||||||||||||||||||||||||||
PROFIT/(LOSS)BEFORE TAX | 7,180 | 1,353 | 645 | (28 | ) | 9,150 | 5,989 | 1,157 | 546 | 107 | 7,799 | 3,663 | 878 | 348 | (502 | ) | 4,387 | |||||||||||||||||||||||||||||||||||||||||||
Other aggregates: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | 673,426 | 148,539 | 15,667 | 160,836 | 998,468 | 624,040 | 145,163 | 9,172 | 158,562 | 936,937 | 531,345 | 133,627 | 6,959 | 112,449 | 784,378 | |||||||||||||||||||||||||||||||||||||||||||||
Loans and advances to customers | 477,392 | 44,809 | 171 | 974 | 523,346 | 404,656 | 30,163 | 194 | 816 | 435,829 | 344,544 | 24,134 | 477 | 196 | 369,351 | |||||||||||||||||||||||||||||||||||||||||||||
Customer deposits | 296,074 | 34,653 | — | 496 | 331,223 | 268,226 | 35,592 | 21 | 1,927 | 305,765 | 244,397 | 37,273 | 36 | 1,505 | 283,211 |
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Millions of Euros | ||||||||||||||||||||||||||||||||
2006 | 2005 | |||||||||||||||||||||||||||||||
Associates | Associates | |||||||||||||||||||||||||||||||
and Jointly | Members of | Other | and Jointly | Members of | Other | |||||||||||||||||||||||||||
Controlled | the Board of | General | Related | Controlled | the Board of | General | Related | |||||||||||||||||||||||||
Entities | Directors | Managers | Parties | Entities | Directors | Managers | Parties | |||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Loans and advances to credit institutions | 2,051 | — | — | 97 | 1,864 | — | — | 958 | ||||||||||||||||||||||||
Loans and advances to customers | 246 | 1 | 10 | 3,198 | 215 | 2 | 8 | 100 | ||||||||||||||||||||||||
Debt instruments | 103 | — | — | 51 | — | — | — | — | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Deposits from credit institutions | (115 | ) | — | — | (4 | ) | (64 | ) | — | — | (979 | ) | ||||||||||||||||||||
Customer deposits | (249 | ) | (63 | ) | (8 | ) | (133 | ) | (25 | ) | (98 | ) | (7 | ) | (68 | ) | ||||||||||||||||
Marketable debt securities | (201 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||
Income statement: | ||||||||||||||||||||||||||||||||
Interest and similar income | 80 | — | — | 35 | 19 | — | — | 29 | ||||||||||||||||||||||||
Interest expense and similar charges | (25 | ) | (2 | ) | — | (3 | ) | (1 | ) | (3 | ) | — | (12 | ) | ||||||||||||||||||
Gains/losses on financial assets and liabilities | — | — | — | 22 | — | — | — | — | ||||||||||||||||||||||||
Fee and commission income | 30 | 1 | — | 36 | 10 | 1 | — | 1 | ||||||||||||||||||||||||
Fee and commission expense | (12 | ) | — | — | — | (1 | ) | — | — | — | ||||||||||||||||||||||
Other: | ||||||||||||||||||||||||||||||||
Contingent liabilities | 40 | — | 2 | 1,333 | 96 | — | — | 45 | ||||||||||||||||||||||||
Contingent commitments | 467 | — | 1 | 2 | 117 | — | — | 477 | ||||||||||||||||||||||||
Derivative financial instruments | 6,427 | — | — | 245 | — | — | — | — |
1. | Independence of the risk function with respect to the business. The head of the Group’s Risks Division, Mr. Matías Rodríguez Inciarte, as third vice chairman of the Group and chairman of the Risk Committee, reports directly to the Executive Committee and the Board. |
2. | At the same time, while maintaining the aforementioned principle of independence, the commitment to effective and efficient service to business, providing the support required to achieve the commercial objectives without impairing the quality of risk through the identification of value creating business opportunities. Accordingly, the organizational structure is adapted to the commercial structure seeking cooperation between business and risk managers. |
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3. | Executive capacity of the risk function supported by knowledge of and proximity to customers, in parallel with the business manager, and by decisions taken collectively through the related Risk Committees. |
4. | Support to senior management in the definition of the risk philosophy and risk tolerance level based on the business strategy. |
5. | Support to financial management in the measurement of risk of the various business activities, the measurement of return on risk-adjusted capital and the creation of value in the Group’s businesses. |
6. | Global scope, without detriment to specialization by risk type or customer segment. |
7. | Collective decisions (even at branch level) which ensure different opinions are taken into account and avoid jeopardizing results through decisions taken individually. |
8. | Medium-low risk profile as a target, emphasizing its low volatility or predictability, which entails a culture consistent with a series of policies and procedures, including most notably: |
a. | Strong emphasis on risk monitoring to prevent loan impairment sufficiently in advance. |
b. | Diversification of risk, limiting risk concentration on customers, groups, sectors, products or geographical locations. |
c. | Avoidance of exposure to companies with insufficient credit ratings or scorings, even when this might entail a risk premium proportionate to the internal rating. |
1. | Internal ratings and scorings, based on qualitative and quantitative weighting of risk, which, by assessing the various risk components by customer and transaction, make it possible to estimate, firstly, probability of default and, subsequently, inherent loss, based on LGD estimates. |
2. | Economic capital, as a homogeneous measure of the risk assumed and a basis for the measurement of the management performed. |
3. | Return on risk-adjusted capital (RORAC), which is used both as a transaction pricing tool (bottom-up) and in the analysis of portfolios and units (top-down). |
4. | Value at Risk, which is used for controlling market risk and setting the market risk limits for the various trading portfolios. |
5. | Stress testing to supplement market and credit risk analyses in order to assess the impact of alternative scenarios, even on provisions and capital. |
a) | Organization of the risk function |
1. | To propose to the Board the risk policy for the Group, which will include in particular: |
a. | The various types of risk (operational, technological, financial, legal and reputational, inter alia) facing the Group, including in the financial or economic risks, contingent liabilities and other off-balance-sheet items; |
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b. | The information and internal control systems to be used to control and manage the aforementioned risks; |
c. | The level of risk deemed acceptable by the Group; |
d. | The measures envisaged to mitigate the impact of the identified risks in the event that they materialize. |
2. | To conduct systematic reviews of the Group’s exposure to its main customers, economic activity sectors, geographical areas and types of risk. |
3. | To ascertain and authorize, where appropriate, the management tools, improvement initiatives, project development and any other significant risk control actions, specifically including the characteristics and behaviour of the internal risk models and the result of their internal valuation. |
4. | To assess and implement the indications issued by the supervisory authorities in the performance of its functions. |
5. | To ensure that the Group’s actions are consistent with the level of risk tolerance established and to empower lower-ranking Committees or executives to assume risks. |
6. | To resolve transactions outside the powers delegated to lower-ranking bodies and the overall limits for pre-classified risk categories in favor of economic groups or in relation to exposure by type of risk. |
The activities of the Risk Committee encompass all the types of risk: credit, market, operational, liquidity, reputational, and other risks. |
Although Banesto has been granted autonomous risk management powers in the Santander Group, the Executive Committee ensures that its risk management policy is consistent with the Group’s policies. |
The Risks Division reports directly to the third Vice-Chairman and the Chairman of the Risk Committee. The Group’s Risk Division is divided into two General Directorates: |
– | Risks | ||
– | Internal Control and Integral Assessment of Risk |
Risk is responsible for the executive functions of credit and financial risk management and is adapted, by customer type, activity and geographical area, to the structure of the business (global view/local view). |
Internal Control and Integral Assessment of Risk has the responsibilities and functions characteristic of an independent unit. In keeping with the New Basel Capital Accord (BIS II), it is entrusted with the control and assessment of risk in its various dimensions, with the explicit task of ensuring the validation and monitoring of the internal risk models and of the internal models for calculation of the Group’s capital, and it is responsible for compliance with the requirements established in Pillars 1, 2 and 3 of Basel II for the Group as a whole. |
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b) | Global risk profile analysis |
The detail, by type of risk and business unit, of the Group’s risk profile at December 31, 2006, taking into account all its activities and measured in terms of use of economic capital, is shown in the tables below: |
Credit risk | 52 | % | ||
Market risk on equities | 13 | % | ||
Other market risks | 8 | % | ||
Structural interest risk | 8 | % | ||
Business risk | 8 | % | ||
Operational risk | 6 | % | ||
Other risks | 5 | % |
Latin America | 31 | % | ||
Financial Management and Holdings | 23 | % | ||
Santander Network in Spain | 12 | % | ||
Abbey | 8 | % | ||
Wholesale Banking in Spain | 7 | % | ||
Banesto | 6 | % | ||
Santander Consumer | 4 | % | ||
Portugal | 4 | % | ||
Other | 5 | % |
c) | Credit risk |
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Santander Group - Gross Credit Risk Exposure (a) | ||||||||||||||||||||||||||||||||||||
Sovereign | Private | |||||||||||||||||||||||||||||||||||
Fixed- | Fixed- | Credit | ||||||||||||||||||||||||||||||||||
Customer | Income | Income | Institutions | Drawable | Derivatives | |||||||||||||||||||||||||||||||
Drawdowns | Drawable by | (Excl. | (Excl. | Drawdowns | by Credit | and Repos | ||||||||||||||||||||||||||||||
(b) | Customers | Trad.) | Trad.) | (c) | Institutions | (REC) (d) | Total | % | ||||||||||||||||||||||||||||
Spain | 257,464 | 57,053 | 10,253 | 5,263 | 12,622 | 948 | 14,907 | 358,510 | 48.1 | % | ||||||||||||||||||||||||||
Parent bank | 155,136 | 39,368 | 2,228 | 1,681 | 7,742 | 476 | 9,657 | 216,288 | 29.0 | % | ||||||||||||||||||||||||||
Banesto | 72,027 | 11,067 | 7,378 | 1,761 | 2,593 | 135 | 5,185 | 100,145 | 13.4 | % | ||||||||||||||||||||||||||
Other | 30,302 | 6,618 | 647 | 1,821 | 2,287 | 337 | 65 | 42,077 | 5.6 | % | ||||||||||||||||||||||||||
Other European countries | 231,470 | 11,579 | 772 | 1,093 | 4,170 | 1 | 13,325 | 262,410 | 35.2 | % | ||||||||||||||||||||||||||
Germany | 15,547 | 1,668 | — | 41 | 284 | — | 5 | 17,545 | 2.4 | % | ||||||||||||||||||||||||||
Portugal | 22,949 | 5,785 | 664 | 114 | 1,472 | 1 | 1,810 | 32,794 | 4.4 | % | ||||||||||||||||||||||||||
UK | 164,513 | 2,702 | — | 875 | 1,036 | — | 11,389 | 180,515 | 24.2 | % | ||||||||||||||||||||||||||
Other | 28,462 | 1,425 | 108 | 62 | 1,378 | — | 121 | 31,556 | 4.2 | % | ||||||||||||||||||||||||||
Latin America | 61,542 | 21,027 | 13,890 | 2,128 | 12,555 | 763 | 5,124 | 117,029 | 15.7 | % | ||||||||||||||||||||||||||
Brazil | 16,440 | 4,002 | 5,420 | 597 | 2,904 | — | 1,677 | 31,041 | 4.2 | % | ||||||||||||||||||||||||||
Chile | 15,890 | 3,239 | 149 | 513 | 1,453 | 1 | 1,899 | 23,145 | 3.1 | % | ||||||||||||||||||||||||||
Mexico | 15,438 | 10,613 | 6,672 | — | 4,299 | 762 | 1,133 | 38,916 | 5.2 | % | ||||||||||||||||||||||||||
Puerto Rico | 6,882 | 1,355 | 259 | 818 | 134 | — | 332 | 9,779 | 1.3 | % | ||||||||||||||||||||||||||
Venezuela | 3,171 | 1,283 | 794 | 199 | 2,915 | — | — | 8,362 | 1.1 | % | ||||||||||||||||||||||||||
Other | 3,721 | 535 | 596 | 1 | 850 | — | 83 | 5,787 | 0.8 | % | ||||||||||||||||||||||||||
Rest of the world | 3,774 | 319 | 217 | 1,116 | 2,315 | — | 54 | 7,795 | 1.0 | % | ||||||||||||||||||||||||||
Total Group | 554,250 | 89,978 | 25,132 | 9,601 | 31,661 | 1,712 | 33,409 | 745,744 | 100 | % | ||||||||||||||||||||||||||
%/total | 74.3 | % | 12.1 | % | 3.4 | % | 1.3 | % | 4.2 | % | 0.2 | % | 4.5 | % | 100.0 | % | ||||||||||||||||||||
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Segmentation of Credit Risk Exposure | ||||||||||||||||||||
Average | Average | |||||||||||||||||||
EAD | % | PD | LGD | EL | ||||||||||||||||
Sovereign | 37,163 | 5.4 | % | 1.10 | % | 22.0 | % | 0.24 | % | |||||||||||
Counterparty | 80,863 | 11.8 | % | 0.22 | % | 33.4 | % | 0.07 | % | |||||||||||
Public sector | 4,434 | 0.6 | % | 0.64 | % | 20.6 | % | 0.13 | % | |||||||||||
Corporate | 97,816 | 14.3 | % | 0.76 | % | 30.4 | % | 0.23 | % | |||||||||||
SMEs | 131,313 | 19.2 | % | 2.33 | % | 32.0 | % | 0.75 | % | |||||||||||
Mortgages | 248,964 | 36.3 | % | 0.80 | % | 13.8 | % | 0.11 | % | |||||||||||
Consumer loans | 72,975 | 10.7 | % | 5.51 | % | 34.9 | % | 1.92 | % | |||||||||||
Cards | 10,605 | 1.5 | % | 5.27 | % | 43.0 | % | 2.26 | % | |||||||||||
Other | 982 | 0.1 | % | 4.09 | % | 61.8 | % | 2.52 | % | |||||||||||
Memorandum item — customers | 567,089 | 82.8 | % | 1.84 | % | 30.22 | % | 0.56 | % | |||||||||||
Total | 685,115 | 100.0 | % | 1.61 | % | 30.0 | % | 0.48 | % | |||||||||||
Assessment | Analysis | |||||
Management | Tool | Approach | ||||
Sovereign, Financial Institutions and Global Corporations | Centralized — Group | Rating | Automatic assessment + analyst adjustment | |||
Local Corporations | Centralized — Entity | Rating | Automatic assessment + analyst adjustment | |||
Individualized Enterprises and Private Institutions | Decentralized | Rating | Automatic assessment + analyst adjustment | |||
Microenterprises and Businesses | Decentralized | Scoring | Automatic assessment | |||
Individuals | Decentralized | Scoring | Automatic assessment |
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§ | Trading: this item includes financial services for customers, trading operations and short-term positioning in fixed-income, equity and foreign currency products. |
§ | Balance sheet management: interest rate risk and liquidity risk arising as a result of the maturity and repricing gaps of all assets and liabilities. This item also includes the active management of the credit risk inherent in the Group’s balance sheet. |
§ | Structural risks: |
o | Structural foreign currency risk/hedges of results: foreign currency risk arising from the currency in which investments in consolidable and non-consolidable companies are made (structural exchange rate). This item also includes the positions taken to hedge the foreign currency risk on future results generated in currencies other than the euro (hedges of results). |
o | Structural equities risk: this item includes equity investments in non-consolidated financial and non-financial companies that give rise to equities risk. |
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– | Contractual liquidity gap: all the on- and off-balance-sheet items are analyzed, provided that they generate cash flows, and placed at the point of contractual maturity. For assets and liabilities without contractual maturities, an internal analysis model is used based on a statistical study of the time series of the products, and the so-called stable or instable balance for liquidity purposes is determined. |
– | Operational liquidity gap: this is a scenario in normal liquidity profile conditions, since the cash flows of the on-balance-sheet items are placed in the point of probable liquidity rather than in the point of contractual maturity. In this analysis the definition of behaviour scenario (renewal of liabilities, discounts in portfolio disposals, renewal of assets, etc.) is the fundamental point. |
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(c) | Structural foreign currency risk / Hedges of results / Structural equities risk |
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57. Transition to the EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
Following is a detail of how the transition from the former accounting principles (Bank of Spain Circular 4/1991) to the International Financial Reporting Standards adopted by the European Union (“EU-IFRS”) required to be applied under Bank of Spain’s Circular 4/2004 has affected the main accounting aggregates previously reported by the Group. | ||
Following is a reconciliation of the balances in the consolidated balance sheet and consolidated income statement, the definitions being as follows: |
– | Closing balances: the balances in the Group’s consolidated financial statements prepared in accordance with the former accounting principles and standards. | ||
– | Reclassifications: changes arising from the new presentation format of the financial statements. | ||
– | Adjustments: changes arising from the measurement bases and accounting policies modified by the new standards. | ||
– | Opening balances: the balances resulting from considering the effect of the adjustments and reclassifications on the closing balances. | ||
– | Ref.: reference to the comment explaining the nature of the most significant adjustments. |
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a) | Consolidated balance sheet: reconciliation at January 1, 2004 — Assets, liabilities and equity |
Millions of Euros | ||||||||||||||||||||
Closing | Effects of Changes | Opening | ||||||||||||||||||
Balances | Reclassific. | Adjustments | Balances | Ref. | ||||||||||||||||
Cash and balances with central banks | 8,907 | 9 | — | 8,916 | ||||||||||||||||
Government debt securities | 31,109 | (31,109 | ) | — | — | |||||||||||||||
Financial assets held for trading | — | 22,008 | 460 | 22,468 | (ii) | |||||||||||||||
Due from credit institutions | 37,618 | (37,618 | ) | — | — | |||||||||||||||
Debentures and other fixed-income securities | 44,277 | (44,277 | ) | — | — | |||||||||||||||
Other financial assets at fair value through profit or loss | — | 2,514 | — | 2,514 | ||||||||||||||||
Available-for-sale financial assets | — | 67,543 | 3,223 | 70,766 | (iii) | |||||||||||||||
Loans and receivables | — | 222,209 | 3,812 | 226,021 | (i), (iv), (vii) | |||||||||||||||
Loans and credits | 172,504 | (172,504 | ) | — | — | |||||||||||||||
Hedging derivatives | — | 318 | 75 | 393 | ||||||||||||||||
Non-current assets held for sale | — | 1,722 | — | 1,722 | ||||||||||||||||
Common stocks and other equity securities | 10,064 | (10,064 | ) | — | — | |||||||||||||||
Investments | 4,266 | (935 | ) | 148 | 3,479 | |||||||||||||||
Investments in Group companies | 1,068 | (1,068 | ) | — | — | |||||||||||||||
Insurance contracts linked to pensions | — | 2,866 | — | 2,866 | ||||||||||||||||
Reinsurance assets | — | 51 | — | 51 | ||||||||||||||||
Tangible assets | 4,584 | 983 | (156 | ) | 5,411 | |||||||||||||||
Intangible assets | — | 6,598 | (1,413 | ) | 5,185 | (vi) | ||||||||||||||
Intangible assets (former standards) | 474 | (474 | ) | — | — | |||||||||||||||
Consolidation goodwill | 7,385 | (7,385 | ) | — | — | |||||||||||||||
Tax assets | — | 4,643 | 2,588 | 7,231 | (viii) | |||||||||||||||
Prepayments and accrued income | 6,919 | (2,061 | ) | (50 | ) | 4,808 | ||||||||||||||
Other assets | 17,984 | (13,156 | ) | (185 | ) | 4,643 | ||||||||||||||
Treasury stock | 10 | (10 | ) | — | — | |||||||||||||||
Accumulated losses at consolidated companies | 4,622 | (4,622 | ) | — | — | |||||||||||||||
Total assets | 351,791 | 6,181 | 8,502 | 366,474 | ||||||||||||||||
Financial assets held for trading | — | 9,014 | 1,025 | 10,039 | (ii) | |||||||||||||||
Financial liabilities at amortized cost | — | 293,460 | 3,803 | 297,263 | (vii) | |||||||||||||||
Due from credit institutions | 75,580 | (75,580 | ) | — | — | |||||||||||||||
Customer deposits | 159,336 | (159,336 | ) | — | — | |||||||||||||||
Marketable debt securities | 44,441 | (44,441 | ) | — | — | |||||||||||||||
Subordinated liabilities | 11,221 | (11,221 | ) | — | — | |||||||||||||||
Hedging derivatives | — | 534 | 8 | 542 | ||||||||||||||||
Liabilities associated with non-current assets held for sale | — | — | — | — | ||||||||||||||||
Liabilities under insurance contracts | — | 7,461 | 2 | 7,463 | ||||||||||||||||
Provisions | 12,728 | 1,182 | 889 | 14,799 | (v) | |||||||||||||||
Tax liabilities | — | 889 | 1,327 | 2,216 | (viii) | |||||||||||||||
Accrued expenses and deferred income | 7,540 | (2,773 | ) | (29 | ) | 4,738 | ||||||||||||||
Other liabilities | 10,429 | (7,409 | ) | (138 | ) | 2,882 | ||||||||||||||
Equity having the substance of a financial liability | — | 3,908 | — | 3,908 | ||||||||||||||||
Minority interests | 5,440 | (3,501 | ) | 22 | 1,961 | |||||||||||||||
Valuation adjustments | — | — | 2,043 | 2,043 | ||||||||||||||||
Negative consolidation difference | 14 | (14 | ) | — | — | |||||||||||||||
Shareholders’ equity | 25,062 | (5,992 | ) | (450 | ) | 18,620 | ||||||||||||||
Total liabilities and equity | 351,791 | 6,181 | 8,502 | 366,474 | ||||||||||||||||
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Millions of Euros | ||||||||||||||||||||
Closing | Effects of Changes | Opening | ||||||||||||||||||
Balances | Reclassific. | Adjustments | Balances | Ref. | ||||||||||||||||
Cash and balances with central banks | 8,787 | 14 | — | 8,801 | ||||||||||||||||
Government debt securities | 16,123 | (16,123 | ) | — | — | |||||||||||||||
Financial assets held for trading | — | 111,420 | 336 | 111,756 | (ii) | |||||||||||||||
Due from credit institutions | 49,570 | (49,570 | ) | — | — | |||||||||||||||
Debentures and other fixed-income securities | 82,839 | (82,839 | ) | — | — | |||||||||||||||
Other financial assets at fair value through profit or loss | — | 45,759 | — | 45,759 | ||||||||||||||||
Available-for-sale financial assets | — | 42,100 | 2,421 | 44,521 | (iii) | |||||||||||||||
Loans and receivables | — | 387,413 | 7,019 | 394,432 | (i), (iv), (vii) | |||||||||||||||
Loans and credits | 335,208 | (335,208 | ) | — | — | |||||||||||||||
Hedging derivatives | — | 2,882 | 943 | 3,825 | (ii) | |||||||||||||||
Non-current assets held for sale | — | 2,074 | 23 | 2,097 | ||||||||||||||||
Common stocks and other equity securities | 13,164 | (13,164 | ) | — | — | |||||||||||||||
Investments | 2,697 | 844 | 207 | 3,748 | ||||||||||||||||
Investments in Group companies | 5,046 | (5,046 | ) | — | — | |||||||||||||||
Insurance contracts linked to pensions | — | 2,754 | — | 2,754 | ||||||||||||||||
Reinsurance assets | — | 3,046 | — | 3,046 | ||||||||||||||||
Tangible assets | 8,213 | 2,617 | (245 | ) | 10,585 | |||||||||||||||
Intangible assets | — | 16,541 | (1,038 | ) | 15,503 | (vi) | ||||||||||||||
Intangible assets (former standards) | 463 | (463 | ) | — | — | |||||||||||||||
Consolidation goodwill | 16,964 | (16,964 | ) | — | — | |||||||||||||||
Tax assets | — | 7,075 | 2,649 | 9,724 | (vii) | |||||||||||||||
Prepayments and accrued income | 7,758 | (4,749 | ) | 21 | 3,030 | |||||||||||||||
Other assets | 23,755 | (18,699 | ) | (151 | ) | 4,905 | ||||||||||||||
Treasury stock | 104 | (104 | ) | — | — | |||||||||||||||
Accumulated losses at consolidated companies | 4,707 | (4,707 | ) | — | — | |||||||||||||||
Total assets | 575,398 | 76,903 | 12,185 | 664,486 | ||||||||||||||||
Financial assets held for trading | — | 90,791 | 735 | 91,526 | (ii) | |||||||||||||||
Other financial liabilities at fair value through profit or loss | — | 11,244 | — | 11,244 | ||||||||||||||||
Financial liabilities at amortized cost | — | 440,160 | 7,672 | 447,832 | (vii) | |||||||||||||||
Due from credit institutions | 84,814 | (84,814 | ) | — | — | |||||||||||||||
Customer deposits | 293,845 | (293,845 | ) | — | — | |||||||||||||||
Marketable debt securities | 84,007 | (84,007 | ) | — | — | |||||||||||||||
Subordinated liabilities | 20,194 | (20,194 | ) | — | — | |||||||||||||||
Hedging derivatives | — | 3,133 | (238 | ) | 2,895 | |||||||||||||||
Liabilities under insurance contracts | — | 42,344 | 1 | 42,345 | ||||||||||||||||
Provisions | 15,345 | 1,810 | 869 | 18,024 | (v) | |||||||||||||||
Tax liabilities | — | 2,210 | 1,286 | 3,496 | (viii) | |||||||||||||||
Accrued expenses and deferred income | 10,827 | (6,416 | ) | (29 | ) | 4,382 | ||||||||||||||
Other liabilities | 18,577 | (14,536 | ) | 77 | 4,118 | |||||||||||||||
Equity having the substance of a financial liability | — | 2,136 | (12 | ) | 2,124 | |||||||||||||||
Minority interests | 8,539 | (6,448 | ) | (6 | ) | 2,085 | ||||||||||||||
Valuation adjustments | — | (30 | ) | 1,808 | 1,778 | (iii) | ||||||||||||||
Negative consolidation difference | 11 | (11 | ) | — | — | |||||||||||||||
Consolidated profit for the year | 3,668 | (3,668 | ) | — | — | |||||||||||||||
Share capital | 3,127 | — | — | 3,127 | ||||||||||||||||
Share premium | 20,370 | — | — | 20,370 | ||||||||||||||||
Reserves and other equity instruments | 5,681 | 1,716 | (425 | ) | 6,972 | |||||||||||||||
Treasury shares | — | (104 | ) | (23 | ) | (127 | ) | |||||||||||||
Profit attributed to the Group | — | 3,136 | 470 | 3,606 | ||||||||||||||||
Dividends and remuneration | — | (1,311 | ) | — | (1,311 | ) | ||||||||||||||
Revaluation reserves | 43 | (43 | ) | — | — | |||||||||||||||
Reserves at consolidated companies | 6,350 | (6,350 | ) | — | — | |||||||||||||||
Total liabilities and equity | 575,398 | 76,903 | 12,185 | 664,486 | ||||||||||||||||
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c) | Consolidated income statement for 2004 |
Millions of Euros | ||||||||||||||||||||
Closing | Effects of Changes | Opening | ||||||||||||||||||
Balances | Reclassific. | Adjustments | Balance | Ref. | ||||||||||||||||
Interest and similar income | 18,104 | (244 | ) | (399 | ) | 17,461 | (i) | |||||||||||||
Interest expense and similar charges | (10,116 | ) | (184 | ) | 25 | (10,275 | ) | |||||||||||||
Income from equity instruments | — | 400 | (11 | ) | 389 | |||||||||||||||
Income from equity securities | 647 | (647 | ) | — | — | |||||||||||||||
Share of results of entities accounted for using the equity method | — | 587 | (138 | ) | 449 | |||||||||||||||
Net profit from companies accounted for using the equity method | 540 | (540 | ) | — | — | |||||||||||||||
Fee and commission income | 5,777 | (68 | ) | (13 | ) | 5,696 | ||||||||||||||
Fee and commission expense | (1,167 | ) | 240 | — | (927 | ) | ||||||||||||||
Insurance activity income | — | 165 | (4 | ) | 161 | |||||||||||||||
Gains/losses on financial assets and liabilities (net) | 953 | (331 | ) | 118 | 740 | |||||||||||||||
Exchange differences (net) | — | 265 | 96 | 361 | ||||||||||||||||
Sales and income from the provision of non-financial services | — | 1,058 | (30 | ) | 1,028 | |||||||||||||||
Cost of sales | — | (681 | ) | — | (681 | ) | ||||||||||||||
Other operating income | 90 | (5 | ) | 116 | 201 | |||||||||||||||
Personnel expenses | (4,135 | ) | (192 | ) | 2 | (4,325 | ) | |||||||||||||
Other general administrative expenses | (2,600 | ) | 111 | (26 | ) | (2,515 | ) | |||||||||||||
Depreciation and amortization | — | (906 | ) | 67 | (839 | ) | ||||||||||||||
Depreciation, amortization and write-down of tangible and intangible assets | (735 | ) | 735 | — | — | |||||||||||||||
Other operating expenses | (272 | ) | 8 | — | (264 | ) | ||||||||||||||
Impairment losses (net) | — | (1,764 | ) | (79 | ) | (1,843 | ) | |||||||||||||
Amortization of consolidation goodwill | (619 | ) | 138 | 481 | — | (vi) | ||||||||||||||
Write-offs and credit loss provisions | (1,648 | ) | 1,648 | — | — | |||||||||||||||
Provisions (net) | — | (1,149 | ) | 8 | (1,141 | ) | ||||||||||||||
Finance income from non-financial activities | — | 20 | — | 20 | ||||||||||||||||
Finance expenses of non-financial activities | — | (37 | ) | (37 | ) | |||||||||||||||
Gains on Group transactions | 509 | (509 | ) | — | — | |||||||||||||||
Losses on Group transactions | (43 | ) | 43 | — | — | |||||||||||||||
Other gains | — | 1,501 | (13 | ) | 1,488 | |||||||||||||||
Extraordinary income | 1,027 | (1,027 | ) | — | — | |||||||||||||||
Other losses | — | (634 | ) | 68 | (566 | ) | ||||||||||||||
Extraordinary loss | (1,877 | ) | 1,877 | — | — | |||||||||||||||
Profit before tax | 4,435 | (122 | ) | 268 | 4,581 | |||||||||||||||
Income tax | (311 | ) | (493 | ) | 207 | (597 | ) | |||||||||||||
Other taxes | (456 | ) | 456 | — | — | |||||||||||||||
Profit from continuing operations | 3,668 | (159 | ) | 475 | 3,984 | |||||||||||||||
Profit from discontinued operations | — | 12 | — | 12 | ||||||||||||||||
Consolidated profit for the year | 3,668 | (147 | ) | 475 | 3,996 | |||||||||||||||
Profit attributed to minority interests | (532 | ) | 147 | (5 | ) | (390 | ) | |||||||||||||
Profit attributed to the Group | 3,136 | — | 470 | 3,606 | ||||||||||||||||
d) | Salient adjustments |
i. | Financial fees and commissions |
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1. | Cumulative exchange differences: cumulative exchange differences of all foreign operations were definitively charged to reserves at January 1, 2004. |
2. | Derecognition of financial instruments: financial assets and liabilities derecognized at December 31, 2003 under previous GAAP were not recognized in the opening balance sheet. |
3. | Non-current assets held for sale: the allowances recorded for foreclosed assets existing at January 1, 2004 and still held at the reporting date reduced the value of these assets. |
4. | Business combinations: the accounting treatment of business combinations discussed in Note 2-b is not applicable to business combinations performed prior to January 1, 2004. |
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Note 58.1. | Recent Pronouncements: | |
Note 58.1.A. | U.S. GAAP Recent Pronouncements | |
Note 58.1.B. | IFRS Recent Pronouncements | |
Note 58.2. | Significant valuation and income recognition principles under the EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 and U.S. GAAP | |
Note 58.3. | Net Income and Stockholders’ Equity reconciliations between the EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 and U.S. GAAP | |
Note 58.4. | Significant presentation differences between the EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 and U.S. GAAP | |
Note 58.5. | Consolidated financial statements | |
Note 58.6. | Preference Shares and Preferred Securities | |
Note 58.7. | Business combinations: Goodwill and Other assets and liabilities | |
Note 58.8. | Earnings per Share |
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1. | In December 2004, the FASB issued SFAS No. 123 (Revised 2004), “Share-Based Payment” (SFAS 123-R), which replaces the existing SFAS 123 and supersedes Accounting Principles Board Opinion (“APB”) 25 “Accounting for Stock Issued to Employees”. This statement eliminates the option to apply the intrinsic value measurement provisions of APB No. 25 to stock compensation awards issued to employees. SFAS 123-R requires companies to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. That cost will be recognized over the period during which an employee is required to provide services in exchange for the award the requisite service period (usually the vesting period). SFAS 123-R is effective for interim and annual reporting periods beginning after June 15, 2005, however early adoption is permitted. SFAS 123-R establishes 2 methods for the accounting change: the Modified Prospective Application and the Modified Retrospective Application. The Bank adopted SFAS 123-R on January 1, 2005 by using the modified prospective approach, which requires recognizing expense for options granted prior to the adoption date equal to the fair value at the grant date of the unvested amounts over their remaining vesting period. See Note 59.8. |
2. | In May 2005, the FASB issued SFAS No. 154, “Accounting Changes and Error Corrections” which replaces Accounting Principles Board Opinions No. 20 “Accounting Changes” and SFAS No. 3, “Reporting Accounting Changes in Interim Financial Statements-An Amendment of APB Opinion No. 28”. This statement provides guidance on the accounting for and reporting of accounting changes and error corrections. It establishes retrospective application, or the latest practicable date, as the required method for reporting a change in accounting principle and the reporting of a correction of an error. Because of its similarities with IFRS’s IAS 8, SFAS 154 will reduce differences between U.S. GAAP and the EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 in the accounting and reporting of accounting changes and corrections of errors. The Group adopted SFAS 154 with effect from January 1, 2006 and did not have a material impact on the Group’s financial position or results of operations. |
3. | In June 2005, the FASB issued SFAS 133 Implementation Issue No. B38, “Embedded Derivatives: Evaluation of Net Settlement With Respect to the Settlement of a Debt Instrument Through Exercise of an Embedded Put Option or Call Option” (“DIG Issue 38”). DIG Issue 38 clarifies that in applying paragraph 12(c) of SFAS 133 to a put option or call option (including a prepayment option) embedded in a debt instrument, the potential settlement of the debtor’s obligation to the creditor that would occur upon exercise of the put option or call option does not meet the net settlement criterion in paragraph 9(a) of SFAS 133. The application of paragraph 12(c) is relevant when an embedded put option or call option is not considered to be clearly and closely related to the debt host under paragraph 12(a) and related paragraph 13 or 61(d). DIG Issue 38 is effective for fiscal years beginning after December 15, 2005. The adoption of DIG Issue 38 did not have a material impact on the Group’s financial position or results of operations. |
4. | In June 2005, the FASB issued SFAS 133 Implementation Issue No. B39, “Embedded Derivatives: Application of Paragraph 13(b) to Call Options That Are Exercisable Only by the Debtor” (“DIG Issue 39”). DIG Issue 39 describes the circumstances in which an embedded call option (including a prepayment option) that can accelerate the settlement of a hybrid instrument containing a debt host contract would not be subject to the conditions in paragraph 13(b) of SFAS 133. DIG Issue B39 is effective for fiscal years beginning after December 15, 2005. The adoption of DIG Issue B39 did not have a material impact on the Group’s financial position or results of operations. |
5. | In February 2006, the FASB issued SFAS 155 “Accounting for Certain Hybrid Financial Instruments — an amendment of FASB Statements No. 133 and 140”. SFAS 155 amends SFAS 133, “Accounting for Derivative Instruments and Hedging Activities”, and SFAS 140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities” and resolves issues addressed in SFAS 133 Implementation Issue No. D1, “Application of Statement 133 to Beneficial Interests in Securitized Financial Assets” as follows: |
Ø | It permits fair value remeasurement for any hybrid financial instrument that contains an embedded derivative that otherwise would require bifurcation; |
Ø | It clarifies which interest-only strips and principal-only strips are not subject to the requirements of Statement 133; |
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Ø | It establishes a requirement to evaluate interests in securitized financial assets to identify interests that are freestanding derivatives or that are hybrid financial instruments that contain an embedded derivative requiring bifurcation; |
Ø | It clarifies that concentrations of credit risk in the form of subordination are not embedded derivatives; and |
Ø | It amends SFAS 140 to eliminate the prohibition on a qualifying special purpose entity from holding a derivative financial instrument that pertains to a beneficial interest other than another derivative financial instrument. |
SFAS 155 is effective for all financial instruments acquired or issued after the first fiscal year beginning after September 15, 2006. With effect from January 1, 2005, the Santander Group has taken the fair value option under U.S. GAAP for certain debt securities in issue that are considered hybrid financial instruments, and has elected to initially and subsequently measure those hybrid financial instruments in their entirety at fair value for purposes of U.S. GAAP in order to align the accounting under the EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 and U.S. GAAP. |
6. | In September 2006, the FASB issued SFAS No. 158, “Employer’s Accounting for Defined Benefit Pensions and Other Postretirement Benefits” (SFAS No. 158). In accordance with SFAS No. 158, effective December 31, 2006, entities must record the funded status of each of its defined benefit pension and postretirement plans (other than a multiemployer plan) on its balance sheet with the corresponding offset, net of taxes, recorded in Accumulated Other Changes in Equity From Non-owner Sources within Stockholders’ Equity. SFAS 158 also requires an employer to measure the funded status of a plan as of the date of its year-end statement of financial position, with limited exceptions. SFAS 158 requires an employer that is a business entity and sponsors one or more single-employer defined benefit plans to (1) recognize the funded status of a benefit plan — measured as the difference between plan assets at fair value (with limited exceptions) and the benefit obligation — in its statement of financial position. For a pension plan, the benefit obligation is the projected benefit obligation; for any other postretirement benefit plan, such as a retiree health care plan, the benefit obligation is the accumulated postretirement benefit obligation, (2) recognize as a component of other comprehensive income, net of tax, the gains or losses and prior service costs or credits that arise during the period but are not recognized as components of net periodic benefit cost pursuant to SFAS 87, or SFAS 106 ‘‘Employers’ Accounting for Postretirement Benefits Other Than Pensions’’. Amounts recognized in accumulated other comprehensive income, including the gains or losses, prior service costs or credits, and the transition asset or obligation remaining from the initial application of SFAS 87 and SFAS 106, are adjusted as they are subsequently recognized as components of net periodic benefit cost pursuant to the recognition and amortization provisions of those Statements, (3) measure defined benefit plan assets and obligations as of the date of the employer’s fiscal year-end statement of financial position (with limited exceptions) and (4) disclose in the notes to financial statements additional information about certain effects on net periodic benefit cost for the next fiscal year that arise from delayed recognition of the gains or losses, prior service costs or credits, and transition asset or obligation. Santander adopted SFAS 158 from December 31, 2006. The impact of adoption is disclosed in Note 58.3. |
7. | In September 2006, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 108 “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements”. SAB 108 states that registrants should use both a balance sheet (iron curtain approach) and income statement (roll-over approach) approaches when quantifying and evaluating the materiality of a misstatement in the financial statements. SAB 108 provides transition guidance for correcting errors existing in prior years and is effective for annual financial statements covering the first fiscal year ending after November 15, 2006. The adoption of SAB 108 did not have a material impact on the Group’s financial position or results of operations. |
8. | In June 2006, the Emerging Issues Task Force, reached a final consensus on EITF 05-1 “Conversion of an Instrument that Became Convertible upon the Issuer’s Exercise of a Call Option”. EITF 05-1 addresses whether the conversion of such a debt instrument into issuer shares should be accounted for akin to a conversion (no gain or loss recorded) or an extinguishment. The Task Force concluded that the call option and the resulting equity securities issued should be accounted for akin to a conversion provided that the debt instrument, at issuance, contains a substantive conversion feature. Additionally, the issuance of equity securities to settle an instrument that, as of its issuance date, does not contain a substantive conversion feature should be accounted for as a debt extinguishment. EITF 05-1 applies to all conversions within the scope of this Issue that result from the exercise of call options and is effective in interim or annual reporting periods beginning after June 28, 2006. The adoption of EITF 05-1 did not have a material impact on the Group’s financial position or results of operations. |
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1. | In March 2006, the FASB issued SFAS 156 “Accounting for Servicing of Financial Assets — an amendment of FASB Statement No. 140”. SFAS 156 amends SFAS 140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities”, with respect to the accounting for separately recognized servicing assets and servicing liabilities. SFAS 156 requires a company to recognize a servicing asset or servicing liability each time it undertakes an obligation to service a financial asset by entering into a servicing contract principally in a transfer of the servicer’s financial assets that either meets the requirements for sale accounting, or is to a qualifying special-purpose entity in a guaranteed mortgage securitization in which the transferor retains all of the resulting securities and classifies them as either available-for-sale securities or trading securities in accordance with SFAS 115, Accounting for Certain Investments in Debt and Equity Securities. SFAS 156 requires all separately recognized servicing assets and servicing liabilities to be initially measured at fair value, if practicable, and permits a company to choose to subsequently measure each class of separately recognized servicing assets and servicing liabilities using either a specified amortization method or a specified fair value measurement method. At its initial adoption, SFAS 156 permits a one-time reclassification of available-for-sale securities to trading securities by companies with recognized servicing rights, without calling into question the treatment of other available-for-sale securities under SFAS 115, provided that the available-for-sale securities are identified in some manner as offsetting the company’s exposure to changes in fair value of servicing assets or servicing liabilities that a servicer elects to subsequently measure at fair value. SFAS 156 is applicable to all transactions entered into in fiscal years that begin after September 15, 2006. The adoption of this statement is not expected to have a material impact on the Group’s financial position or results of operations. |
2. | In September 2005, the American Institute of Certified Public Accountants (“AICPA”) issued Statement of Position (“SOP”) 05-1 “Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection With Modifications or Exchanges of Insurance Contracts”. SOP 05-1 provides guidance on accounting by insurance enterprises for deferred acquisition costs on internal replacements of insurance and investment contracts other than those specifically described in SFAS 97 “Accounting and Reporting by Insurance Enterprises for Certain Long-Duration Contracts and for Realized Gains and Losses from the Sale of Investments”. SOP 05-1 is effective for internal replacements occurring in fiscal years beginning after December 15, 2006. The Santander Group does not expect the adoption of SOP 05-1 to have a material impact on the Group’s financial position or results of operations. |
3. | On July 13, 2006, the FASB issued FIN 48 “Accounting for Uncertainty in Income Taxes,” which attempts to set out a consistent framework for preparers to use to determine the appropriate level of tax reserves to maintain for “uncertain tax positions.” This interpretation of FASB Statement No. 109 uses a two-step approach wherein a tax benefit is recognized if a position is more likely than not to be sustained. The amount of the benefit is then measured to be the highest tax benefit which is greater than fifty percent likely to be realized. FIN 48 also sets out disclosure requirements to enhance transparency of an entity’s tax reserves. The Company is still evaluating the impact of the adoption of FIN 48. |
4. | On July 13, 2006, the FASB issued a Staff Position, “Accounting for a Change or Projected Change in the Timing of Cash Flows Relating to Income Taxes Generated by a Leverage Lease Transaction” (FSP 13-2), which provides guidance regarding changes or projected changes in the timing of cash flows relating to income taxes generated by a leveraged lease transaction. Leveraged leases can provide significant tax benefits to the lessor. Since changes in the timing and/or amount of these tax benefits may have a material effect on the cash flows of a lease transaction, a lessor, in accordance with FSP 13-2, will be required to perform a recalculation of a leveraged lease when there is a change or projected change in the timing of the realization of tax benefits generated by that lease. The Group is currently assessing the potential impact of FSP 13-2. |
5. | The FASB issued FASB Staff Position FIN 46(R)-6, “Determining the Variability to Be Considered in Applying FASB Interpretation No. 46(R)” (FSP FIN 46(R)-6) in April 2006. FSP FIN 46(R)-6 addresses the application of FIN 46(R), “Consolidation of Variable Interest Entities,” in determining whether certain contracts or arrangements with a variable interest entity (VIE) are variable interests by requiring companies to base such evaluations on an analysis of the VIE’s purpose and design, rather than its legal form or accounting classification. FSP FIN 46(R)-6 is required to be applied for all reporting periods beginning after June 15, 2006. While the Company is still evaluating the impact of the FSP, the adoption of the FSP is not expected to result in material differences from Santander’s existing accounting policies regarding the consolidation of VIEs. |
6. | In September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements” (SFAS No. 157). This Standard defines fair value, establishes a consistent framework for measuring fair value and expands disclosure requirements about fair value measurements. In addition, SFAS No. 157 disallows the use of block discounts and supersedes the guidance in EITF 02-3, which prohibited the recognition of day-1 gains on certain derivative trades when determining the fair value of instruments traded in an active market. With the adoption of this Standard, these changes will be reflected as a cumulative effect adjustment to the opening balance of retained earnings. The Standard also requires reflecting its own credit standing when measuring the fair value of debt it has issued, including derivatives, prospectively from the date of adoption. SFAS No. 157 is effective for fiscal year beginning January 1, 2008, with earlier adoption permitted for the Company’s fiscal year beginning January 1, 2007. Santander is currently evaluating the potential impact of adopting this Standard. |
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7. | In February 2007, the FASB issued SFAS 159 ‘‘The Fair Value Option for Financial Assets and Financial Liabilities-Including an amendment of FASB Statement No. 115’’. The fair value option established by SFAS 159 permits all entities to choose to measure eligible items at fair value at specified election dates. Eligible items include a financial asset and financial liability, a firm commitment involving financial instruments that would not otherwise be recognized at fair value, a written loan commitment, certain rights and obligations under an insurance contract, and certain rights and obligations under a warranty. A business entity shall report unrealized gains and losses on items for which the fair value option has been elected in earnings at each subsequent reporting date. In accordance with SFAS 159, the fair value option (1) can be applied instrument by instrument, with a few exceptions, such as investments otherwise accounted for by the equity method, (2) is irrevocable (unless a new election date occurs), and (3) has to be applied to entire instruments and not to portions of it. SFAS 159 is effective from an entity’s first year beginning after November 15, 2007. Early adoption is permitted as of the beginning of the year that begins on or before November 15, 2007, provided the entity also elects to apply the provisions of SFAS 157,‘‘Fair Value Measurements’’. This statement reduces accounting differences between U.S.GAAP and the EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004. Santander is currently evaluating the potential impact of adopting this Standard. |
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1. | IFRS 7 “Financial instruments disclosures”: This new standard adds certain new disclosures about financial instruments to those currently required by IAS 32 Financial Instruments: Disclosure and Presentation and replaces the disclosures now required by IAS 30 Disclosures in the Financial Statements of Banks and Similar Financial Institutions. Puts all of those financial instruments disclosures together in a new standard on Financial Instruments: Disclosures. The remaining parts of IAS 32 deal only with financial instruments presentation matters. |
2. | Amendment to IAS 1 “Presentation of Financial Statements — Capital disclosures”: This amendment to IAS 1 Presentation of Financial Statements requires entities to disclose information that enables readers to evaluate the entity’s objectives, policies and processes for managing capital. The disclosures are based on information provided internally to key management personnel. |
3. | IFRIC 7 “Applying the Restatement approach under IAS 29 Financial Reporting in Hyperinflationary Economies”: IFRIC 7 requires entities to apply IAS 29 Financial Reporting in Hyper-inflationary Economies in the reporting period in which an entity first identifies the existence of hyperinflation in the economy of its functional currency as if the economy had always been hyperinflationary. |
4. | IFRIC 8 “Scope of IFRS 2”: Clarifies that IFRS 2 Share-based Payment will apply to any arrangement when equity instruments are granted or liabilities (based on a value of an entity’s equity instrument) are incurred by an entity, when the identifiable consideration appears to be less than the fair value of the instruments given. It presumes that such cases are an indication that other consideration (i.e., unidentifiable goods or services) has been or will be received. The unidentifiable goods or services concerned are to be measured at the grant date as the difference between the fair value of the share-based payment (equity given or liability incurred) and the fair value of any identifiable goods or services received. | ||
For cash-settled transactions, the liability is to be remeasured at each reporting date until is settled, in accordance with IFRS 2. |
5. | IFRIC 9 “Reassessment of Embedded Derivatives”: IFRIC 9 concludes that an entity must assess whether an embedded derivative is required to be separated from the host contract and accounted for as a derivative when the entity first becomes a party to the contract. Subsequent reassessment is prohibited unless there is a change in the terms of the contract that significantly modifies the cash flows that otherwise would be required under the contract, in which case reassessment is required. |
1. | IFRS 8 “Operating Segments”: On November 30, 2006, the IASB issued IFRS 8 which requires segment analysis reported by an entity to be based on information used by management. The Group currently discloses this information in Note 54. IFRS 8 is effective for periods beginning on or after January 1, 2009. |
2. | IFRIC 10 “Interim Financial Reporting and Impairment”: IFRIC 10 addresses an inconsistency between IAS 34 Interim Financial Reporting and the impairment requirements relating to goodwill in IAS 36 Impairment of Assets and equity instruments classified as available for sale in IAS 39 Financial instruments: Recognition and Measurement. The Interpretation states that the specific requirements of IAS 36 and IAS 39 take precedence over the general requirements of IAS 34 and, therefore, any impairment loss recognized for these assets in an interim period may not be reversed in subsequent periods. IFRIC 10 is effective for periods beginning on or after November 1, 2006. |
3. | IFRIC 11 “IFRS 2 — Group and Treasury Share Transactions”: requires that treasury share transactions are treated as equity-settled, and share-based payments involving equity instruments of the parent should be treated as cash-settled. This is consistent with the Group’s current practice. IFRIC 11 is effective for periods beginning on or after March 1, 2007. |
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The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 | U.S. GAAP | |
Business combinations, goodwill and intangible assets (See Notes 2.b.v and 2.m) | ||
Business combinations performed on or after January 1, 2004 whereby the Group obtains control over an entity are recognized for accounting purposes as follows: - - The Group measures the cost of the business combination, defined as the fair value of the assets given, the liabilities incurred and the equity instruments issued, if any, by the entity. - - The fair values of the assets, liabilities and contingent liabilities of the acquiree, including any intangible assets which might have not been recognized by the acquiree, are estimated and recognized in the consolidated balance sheet. - - Any positive difference between the net fair value of the assets, liabilities and contingent liabilities of the acquiree and the business combination cost is recognized in “Other Gains” in the consolidated income statement. Any excess of the cost of the investments in the consolidated entities and entities accounted for using the equity method over the corresponding underlying carrying amounts acquired, adjusted at the date of first time consolidation, is allocated to: - - specific assets and liabilities of the companies acquired, - - to specific intangible assets, by recognizing it explicitly in the consolidated balance sheet provided that their fair value at the date of acquisition can be measured reliably, and - - the remaining amount is recognized as goodwill, which is allocated to one or more specific cash-generating units. The cash generating units represent the Group’s geographical and/or business segments. At the end of each reporting period goodwill is reviewed for impairment at a cash-generating-unit level and any impairment is written down with a charge to “Impairment Losses — Goodwill” in the consolidated income statement. An impairment loss recognized for goodwill is not reversed in a subsequent period. In the first adoption of the EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004, we have used the goodwill existing at January 1, 2004, recalculated from euros to local currency as of the date it arose. | As stated in SFAS 141 all business combinations must be accounted for using the purchase method. Under this method, the valuation is based on fair values of the net assets as of the time of the acquisition. The differences between the fair value of the net assets and the consideration paid represent goodwill. Income of the acquired company is reflected only from the acquisition date onwards. Intangible Assets must be identified and recognized as assets apart from goodwill. According to SFAS 142 Goodwill and Intangible Assets with indefinite useful lives are subject to an impairment test at least annually, at a reporting unit level, and should be written-off to the extent that it is judged to be impaired. Impairment losses cannot be reversed. | |
Consolidation procedures (See Note 2.b) | ||
i. Subsidiaries “Subsidiaries” are defined as entities over which the Bank has the capacity to exercise management control; this capacity is, in general but not exclusively, presumed to exist when the Parent owns directly or indirectly half or more of the voting power of the investee or, even if this percentage is lower or zero, when, as in the case of agreements with shareholders of the investee, the Bank is granted control. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. (continues in following page) | Generally, consolidation is required for, and limited to, all investments of greater than 50% of the outstanding voting rights, except when control does not rest with the majority owner. To determine whether certain entities should be included or not in the company’s Consolidated Financial Statements, U.S. GAAP defines in FIN 46-R “Variable Interest Entity” (VIE). A VIE is an entity which fulfills one of the following criteria: (1) It has equity that is insufficient to permit the entity to finance its activities without additional subordinated financial support from other parties. (2) The equity investor cannot make significant decisions about the entity’s operations, or although it could, it doesn’t absorb the expected losses or receive the expected returns of the entity. (3) The equity investors have voting rights that are not proportionate to their economic interests and substantially all the activities of the entity involved are conducted on behalf of an investor with a disproportionately small voting interest. |
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The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 | U.S. GAAP | |
A VIE is consolidated by its primary beneficiary, which is the party involved with the VIE that has a majority of the expected losses or a majority of the expected residual returns or both. | ||
The financial statements of the subsidiaries are fully consolidated with those of the Bank. Accordingly, all balances and transactions between consolidated entities are eliminated on consolidation. ii. Joint ventures are deemed to be ventures that are not subsidiaries but which are jointly controlled by two or more unrelated entities. The financial statements of investees classified as joint ventures are proportionately consolidated with those of the Bank. iii. Associates Investments in associates are accounted for using the equity method. In the case of transactions with an associate, the related profits or losses are eliminated to the extent of the Group’s interest in the associate. | U.S. GAAP considers only one method of consolidation, which fully consolidates the financial statements of companies controlled by the parent company after eliminating all intercompany transactions and recognizing minority interest. The Proportional consolidation method is not allowed under U.S. GAAP. Joint ventures are accounted for by the equity valuation method. The Equity valuation method is used to account for certain equity investments when the investor has significant influence over the investee (generally an investment of between 20% and 50% in the outstanding voting rights) but does not control the investee. Under the equity method, an investor adjusts the carrying amount of an investment for its share of the earnings or losses of the investee subsequent to the date of investment and reports the recognized earnings or losses in income. Dividends received from an investee reduce the carrying amount of the investment. | |
Post-employment benefits (See Notes 2.v and 2.w) | ||
The Group recognizes under “Provisions — Provisions for Pensions and Similar Obligations” the present value of its defined benefit pension obligations, net of the fair value of the plan assets and of the net unrecognized cumulative actuarial gains or losses disclosed in the valuation of these obligations, which are deferred using a corridor approach, and net of the past service cost, which is deferred over time. “Plan assets” are defined as those that will be directly used to settle obligations and that meet specific conditions. “Actuarial gains and losses” are deemed to be those arising from differences between previous actuarial assumptions and what has actually occurred in the plan and from changes in the actuarial assumptions used. The Group uses, on a plan-by-plan basis, the corridor method and recognizes in the consolidated income statement the amount resulting from dividing by five the net amount of the cumulative actuarial gains and/or losses not recognized at the beginning of each year which exceeds 10% of the present value of the obligations or 10% of the fair value of the plan assets at the beginning of the year, whichever amount is higher. The past service cost — which arises from changes to current post-employment benefits or from the introduction of new benefits - is recognized on a straight-line basis in the consolidated income statement over the period from the time the new commitments arise to the date on which the employee has an irrevocable right to receive the new benefits. (continues in following page) | Under U.S. GAAP, the Group applies the provisions of SFAS No. 87, “Employers’ Accounting for Pensions”, SFAS No. 88, “Employers’ Accounting for Settlements and Curtailment of Defined Benefit Pension Plans and for Termination Benefits,” and SFAS No. 106, “Employers Accounting for Postretirement Benefits Other Than Pensions”, as applicable. Furthermore, the Group provides the required disclosures in accordance to SFAS No. 132(R) “Employers’ Disclosures about Pensions and Other Postretirement Benefits an amendment of FASB Statements No. 87, 88, and 106”. These Standards do not significantly differ from the provisions followed and applied in our primary financial statements under IFRS; IAS 19 “Employee Benefits”. Additionally, on September 29, 2006, the FASB issued SFAS No. 158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans, an amendment of FASB Statements No. 87, 88, 106, and 132(R)” (SFAS 158), which requires the recognition of a plan’s over-funded or under-funded status as an asset or liability with an offsetting adjustment to Accumulated Other Comprehensive Income (OCI). Companies must recognize as a component of OCI, net of tax, the gains or losses and prior service costs or credits that arise during the period but are not recognized as components of net periodic benefit cost pursuant to SFAS No. 87, Employers’ Accounting for Pensions, or No. 106, Employers’ Accounting for Postretirement Benefits Other Than Pensions. Amounts recognized in Accumulated Other Comprehensive Income, including the gains or losses, prior service costs or credits, and the transition asset or obligation remaining from the initial application of Statements 87 and 106, are adjusted as they are subsequently recognized as components of net periodic benefit cost pursuant to the recognition and amortization provisions of those Statements. This part of the statement is effective as of December 31, 2006. See Note 58.3 for details. Additionally, SFAS 158 requires companies to measure defined benefit plan assets and obligations as of the date of the employer’s fiscal year-end statement of financial position (with limited exceptions) and it is effective for fiscal years ending after December 31, 2008. A liability and a loss in net income are registered for early retirement plans when the employees accept the offer and the amount can be reasonably estimated. |
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The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 | U.S. GAAP | |
“Other Long-Term Employee Benefits”, defined as commitments to early retirees -taken to be those who have ceased to render services at the entity but who, without being legally retired, continue to have economic rights vis-à-vis the entity until they acquire the legal status of retiree-, long-service bonuses, commitments for death of spouse or disability before retirement that depend on the employee’s length of service at the entity and other similar items, are treated for accounting purposes, where applicable, as established above for defined benefit post-employment plans, except that all past service costs and actuarial gains and losses are recognized immediately. | ||
Financial instruments (See Notes 2.c and 2.g) | ||
Financial assets are included for measurement purposes in one of the following categories: -Financial assets held for trading(at fair value through profit or loss): this category includes the financial assets acquired for the purpose of generating a profit in the near term from fluctuations in their prices and financial derivatives that are not designated as hedging instruments. -Other financial assets at fair value through profit or loss: this category includes hybrid financial assets not held for trading that are measured entirely at fair value and financial assets not held for trading that are managed jointly with “liabilities under insurance contracts” measured at fair value or with derivative financial instruments whose purpose and effect is to significantly reduce exposure to variations in fair value, or that are managed jointly with financial liabilities and derivatives for the purpose of significantly reducing overall exposure to interest rate risk. -Available-for-sale financial assets: this category includes debt instruments not classified as “held-to-maturity investments” or as “financial assets at fair value through profit or loss”, and equity instruments issued by entities other than subsidiaries, associates and jointly controlled entities, provided that such instruments have not been classified as “financial assets held for trading” or as “other financial assets at fair value through profit or loss”. -Loans and receivables: this category includes financing granted to third parties, based on their nature, irrespective of the type of borrower and the form of financing, including finance lease transactions in which the consolidated entities act as lessors. The consolidated entities generally intend to hold the loans and credits granted by them until their final maturity and, therefore, they are presented in the consolidated balance sheet at their amortized cost (which includes the required adjustments to reflect estimated impairment losses). - The statistical percentages obtained from historical trends as determined by the Bank of Spain guidance (Circular) are applied, being the amounts determined within the range of possible estimated losses calculated internally. -Held-to-maturity investments: this category includes debt instruments with fixed maturity and with fixed or determinable payments. As a general rule, the carrying amount of impaired financial instruments is adjusted with a charge to the consolidated income statement for the period in which the impairment becomes evident, and the reversal of previously recognized impairment losses, if any, is recognized in the consolidated income statement for the year in which the impairment ceases to exist or is reduced. (continues in following page) | Investments in equity securities with readily determinable market values and all debt securities are classified as trading securities, available-for-sale securities, or held to maturity securities in accordance with SFAS 115. Trading assets are stated at market value, and differences between market value and book value are reported in the statement of income. Debt and equity securities classified as available-for-sale represent securities not classified as either held to maturity or trading securities. They are initially recognized at fair value including direct and incremental transaction costs. They are subsequently held at fair value. Unrealized gains and losses on available-for-sale securities arising from changes in fair value are included in “Other comprehensive income” as a separate component of equity until sale when the cumulative gain or loss is transferred to the income statement. Foreign exchange differences on available-for-sale securities denominated in foreign currency are also excluded from earnings and recorded as part of the same separate component of equity. Securities classified as available-for-sale are required to be reviewed on an individual basis to identify whether their fair values have declined to a level below amortized cost and, if so, whether the decline is other-than-temporary. Provision is reflected in earnings as a realized loss for any impairment that is considered to be other-than-temporary. If it is probable that an investor will be unable to collect all amounts due according to the contractual terms of a debt security, an other-than-temporary impairment is considered to have occurred. Recognition of other-than-temporary impairment may be required as a result of a decline in a security’s value due to deterioration in the issuer’s creditworthiness, an increase in market interest rates or a change in foreign exchange rates since acquisition. Other circumstances in which a decline in the fair value of a debt security may be other-than-temporary include situations where the security will be disposed of before it matures or the investment is not realizable. - The loan loss allowance should represent the best and most probable estimate of the possible scenarios, being the amounts determined within the range of possible estimated losses calculated internally. If an impairment loss is recognized, the cost basis of the individual security is written down to fair value as a new cost basis. The new cost basis is not changed for subsequent recoveries in fair value. Held-to-maturity securities are stated at amortized cost. Under SFAS 155, financial assets and financial liabilities may be measured at fair value through the income statement where they contain substantive embedded derivatives that would otherwise require bifurcation under SFAS 133. (continues in following page) |
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The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 | U.S. GAAP | |
Preference Securities and Preference Shares (See Notes 58.5 and 58.6) | ||
Following the EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 consolidation rules, special purpose entities used to issue preference shares are consolidated. Preference securities are classified as financial liabilities, and presented as “Subordinated Debt” or as “Equity Having The Substance of a Financial Liability” if they are shares. Preference securities and shares denominated in a foreign currency are retranslated at each balance sheet date. The dividends on preference securities and shares are recognized in the income statement as interest expense on an amortized cost basis using the effective interest method. | As a consequence of FIN 46-R special purpose entities, of which the Group is no longer the primary beneficiary, used to issue preference shares are excluded from the consolidation. In our balance sheet its value is replaced by the subordinated deposits in the Bank that act as a guarantee of the securities. All the other preference shares are classified in equity if they are not mandatorily redeemable and do not have redemption features that are not solely within the control of the issuer. The dividends on preference securities and shares are accounted for as an appropriation of profit. | |
Securitized assets (See Notes 2.e, 58.3.g, 58.5 and 59.1) | ||
The accounting treatment of transfers of financial assets depends on the extent to which the risks and rewards associated with the transferred assets are transferred to third parties: 1. If the Group transfers substantially all the risks and rewards to third parties the transferred financial asset is derecognized and any right or obligation retained or created in the transfer is recognized simultaneously. 2. If the Group retains substantially all the rights and rewards associated with the transferred financial asset, the transferred financial asset is not derecognized and continues to be measured by the same criteria used before the transfer. However: a. An associated financial liability is recognized for an amount equal to the consideration received. b. The income from the transferred financial asset not derecognized and any expense incurred on the new financial liability are recognized in the consolidated income statement. | U.S. GAAP SFAS 140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities”, requires that after a transfer of financial assets an entity recognizes the financial and servicing assets it controls and the liabilities it has incurred, derecognizes financial assets when control has been surrendered, and derecognizes liabilities when extinguished. The statement contains rules for distinguishing transfers of financial assets that are sales from transfers that are secured borrowings. Mortgage securitization vehicles are considered “qualifying special purpose entities” under U.S. GAAP and fall outside the scope of FIN 46R. These securitizations are treated as sales and, where appropriate, a servicing asset and an interest-only security are recognized. The servicing asset is amortized over the periods in which the benefits are expected to be received and the interest-only security is accounted for as an available-for-sale security. Evaluation for impairment is conducted in accordance with EITF 99-20. | |
(continues in following page) | (continues in following page) |
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The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 | U.S. GAAP | |
3. If the Group neither transfers nor retains substantially all the risks and rewards associated with the transferred financial asset, the following distinction must be made: a. If the transferor does not retain control, the transferred financial asset is derecognized and any right or obligation retained or created in the transfer is recognized. b. If the transferor retains control, it continues to recognize the transferred financial asset for an amount equal to its exposure to changes in value and recognizes a financial liability associated with the transferred financial asset. The net carrying amount of the transferred asset and the associated liability shall be the amortized cost of the rights and obligations retained, if the transferred asset is measured at amortized cost, or the fair value of the rights and obligations retained, if the transferred asset is measured at fair value. | ||
Derivative instruments and hedging activities (See Notes 2.d.v and 58.3.f) | ||
All derivatives are recognized either as assets or liabilities on the balance sheet and measured at their fair value. The accounting for changes in the fair value of a derivative (that is, gains and losses) depends on the intended use of the derivative and the resulting designation as Trading or Hedging (of Cash Flow, of Fair Value or of a foreign currency investment exposure). - Effectiveness testing: the EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 allows prospective and retrospective effectiveness testing. - Macro hedging is permitted - Portfolio hedging is permitted | Accounting for derivatives under U.S. GAAP is similar to that of the EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004. There are however differences in their detailed application. - Effectiveness testing: retrospective testing may not be required for short cut and match terms. - Macro hedging is not allowed - Portfolio hedging requires that the individual items respond in a “generally proportionate manner” to the overall change in fair value of the aggregate portfolio. |
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Thousands of Euros | ||||||||||||||
Increase (decrease) | ||||||||||||||
NET INCOME | 2006 | 2005 | 2004 | |||||||||||
Net income in accordance with the EU-IFRS(*) | 8,245,753 | 6,749,770 | 3,996,234 | |||||||||||
Less: Net income attributable to minority interest under the EU-IFRS (*)(**) | (649,806 | ) | (529,666 | ) | (390,364 | ) | ||||||||
Net income attributable to the Group in accordance with the EU-IFRS(*) | 7,595,947 | 6,220,104 | 3,605,870 | |||||||||||
Of which: | ||||||||||||||
Continuing operations | 6,417,920 | 6,075,069 | 3,525,822 | |||||||||||
Discontinued operations | 1,178,027 | 145,035 | 80,048 | |||||||||||
Adjustments to conform to U.S. GAAP: | ||||||||||||||
• Allowances for credit losses | (a) | (226,365 | ) | (302,033 | ) | 509,042 | ||||||||
• Investment securities | (b) | 161,268 | 82,052 | (271,098 | ) | |||||||||
• Goodwill and business combinations | (d) | (170,325 | ) | 69,675 | 138,200 | |||||||||
• Intangible assets | (d) | — | (50,661 | ) | 1,051 | |||||||||
• Premises and equipment | (e) | 9,507 | 7,669 | 9,502 | ||||||||||
• Hedge accounting: derivative instruments | (f) | (550,276 | ) | 342,382 | (458,790 | ) | ||||||||
• Securitization | (g) | 174,237 | 72,961 | — | ||||||||||
• Pension liabilities and other post-employment benefits | (h) | 412,085 | — | — | ||||||||||
• Income taxes | (i) | 8,493 | (123,689 | ) | 407,089 | |||||||||
Total adjustments: | (181,376 | ) | 98,356 | 334,996 | ||||||||||
Net income attributable to the Group in accordance with U.S. GAAP | 7,414,571 | 6,318,460 | 3,940,866 | |||||||||||
Of which: | ||||||||||||||
Continuing operations | 6,395,747 | 6,173,425 | 3,860,818 | |||||||||||
Discontinued operations | 1,018,824 | 145,035 | 80,048 |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
(**) | Under the EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 equity and net income includes the equity and net income corresponding to the shareholders of both the Parent and the minority interests. Under U.S. GAAP, shareholder’s equity and net income is made up only of the portion attributed to equity holders of the Parent. Therefore, an adjustment to reconcile to U.S. GAAP is recorded in order to exclude the Minority Interests portion of shareholder’s equity and net income. |
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�� | ||||||||||||||
Thousands of Euros | ||||||||||||||
Increase (decrease) | ||||||||||||||
STOCKHOLDERS’ EQUITY | 2006 | 2005 | 2004 | |||||||||||
Total Equity in accordance with the EU-IFRS(*) | 47,072,302 | 42,626,699 | 36,500,258 | |||||||||||
Less: Minority Interest under the EU-IFRS (*)(**) | (2,220,743 | ) | (2,848,223 | ) | (2,085,316 | ) | ||||||||
Stockholders’ Equity in accordance with the EU-IFRS(*) | 44,851,559 | 39,778,476 | 34,414,942 | |||||||||||
Adjustments to conform to U.S. GAAP: | ||||||||||||||
• Allowances for credit losses | (a) | 628,385 | 854,750 | 1,156,783 | ||||||||||
• Loans granted to purchase parent company shares | (c) | (25,875 | ) | (120,035 | ) | (148,940 | ) | |||||||
• Investment securities | (b) | — | — | 75,248 | ||||||||||
• Goodwill and business combinations | (d) | 3,113,896 | 2,972,556 | 3,067,360 | ||||||||||
• Intangible assets | (d) | — | — | 50,661 | ||||||||||
• Premises and equipment | (e) | (253,473 | ) | (262,980 | ) | (270,649 | ) | |||||||
• Hedge accounting: derivative instruments | (f) | (155,288 | ) | 395,350 | 52,968 | |||||||||
• Securitization | (g) | 640,357 | 494,674 | 525,264 | ||||||||||
• Pension liabilities and other post-employment benefits | (h) | 105,612 | — | — | ||||||||||
• Taxes | (i) | (201,633 | ) | (328,456 | ) | (252,014 | ) | |||||||
Total adjustments: | 3,851,981 | 4,005,859 | 4,256,681 | |||||||||||
Stockholders’ Equity in accordance with U.S. GAAP | 48,703,540 | 43,784,335 | 38,671,623 |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
(**) | Under the EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 equity and net income includes the equity and net income corresponding to the shareholders of both the Parent and the minority interests. Under U.S. GAAP, shareholder’s equity and net income is made up only of the portion attributed to equity holders of the Parent. Therefore, an adjustment to reconcile to U.S. GAAP is recorded in order to exclude the Minority Interests portion of shareholder’s equity and net income. |
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Thousands of Euros | ||||||||||||
Increase (decrease) | ||||||||||||
CHANGES IN EQUITY FROM NON-OWNER SOURCES | 2006 | 2005 | 2004 | |||||||||
Accumulated Other Comprehensive Income, net of tax: | ||||||||||||
• Unrealized gains (losses) on securities | 2,163,558 | 1,954,932 | 2,037,390 | |||||||||
• Net gains (losses) on derivative instruments | 49,252 | 70,406 | 339,066 | |||||||||
• Foreign currency translation adjustment | (6,747,605 | ) | (6,245,939 | ) | (7,358,272 | ) | ||||||
• Pension liabilities and other post-employment benefits | (214,531 | ) | — | — | ||||||||
Total Accumulated Other Comprehensive Income | (4,749,326 | ) | (4,220,601 | ) | (4,981,816 | ) | ||||||
COMPREHENSIVE INCOME | ||||||||||||
Net income attributable to the Group in accordance with U.S. GAAP | 7,414,571 | 6,318,460 | 3,940,866 | |||||||||
Other Comprehensive Income, net of tax: | ||||||||||||
• Unrealized gains (losses) on securities | 208,626 | (82,458 | ) | (569,590 | ) | |||||||
• Net gains (losses) on derivative instruments | (21,154 | ) | (268,660 | ) | 353,212 | |||||||
• Foreign currency translation adjustment | (501,666 | ) | 1,112,333 | (121,532 | ) | |||||||
• Pension liabilities and other post-employment benefits | (214,531 | ) | — | — | ||||||||
Other Comprehensive Income (see Note 58.3.j) | (528,725 | ) | 761,215 | (337,910 | ) | |||||||
Comprehensive Income in accordance with U.S. GAAP | 6,885,846 | 7,070,675 | 3,602,956 |
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o | Arriving at an appropriate allowance involves a high degree of management judgment and results in a range of estimated losses. | ||
o | Institutions should maintain prudent, conservative, but not excessive, loan loss allowances that fall within an acceptable range of estimated losses. Consistent with GAAP, an institution should record its best estimate within the estimated range of credit losses, including when the best estimate is at the high end of the range. | ||
o | When determining the level for the allowance, management should always ensure that the overall allowance appropriately reflects a margin for the imprecision inherent in most estimates of inherent credit losses (footnote omitted). | ||
o | Simply because a portion of the allowance is designated as “unallocated,” it is not thereby inconsistent with GAAP. The important consideration is whether the allowance reflects an estimate of probable losses, determined in accordance with GAAP, and is appropriately supported. | ||
o | Allowance estimates should be based on a comprehensive, well-documented, and consistently applied analysis of the loan portfolio. |
“Whether the amount of loss can be reasonably estimated (the condition in paragraph8(b)) will normally depend on, among other things, the experience of the enterprise, information about the ability of individual debtors to pay, and appraisal of the receivables in light of the current economic environment. In the case of an enterprise that has no experience of its own, reference to the experience of other enterprises in the same business may be appropriate. |
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Thousands of Euros | 2006 | 2005 | 2004 | |||||||||
Value of interest-only strip at inception(1) | 798,213 | 621,626 | — | |||||||||
Acquisition of Abbey | — | — | 525,264 | |||||||||
Increase/(decrease) in value of interest only strip (recorded in Other Comprehensive Income, see Note 58.3.j) | (157,856 | ) | (126,952 | ) | — | |||||||
Value of interest-only strip at December 31(1) | 640,357 | 494,674 | 525,264 |
(1) | The valuation of the interest-only strip asset is based on a key assumption of a discount rate of 9.4% (8.4% in 2005). Interest-only strip assets purchased in Abbey’s business combination are valued at purchase price. |
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Millions of Euros | 2006 | 2005 | 2004 | |||||||||
Defined Benefit Obligation (see Note 25) | 23,412 | 22,461 | 19,856 | |||||||||
Commitments arising from employees retired early (Note 25.c) | (4,481 | ) | (4,215 | ) | (4,051 | ) | ||||||
Other commitments | (264 | ) | (330 | ) | (63 | ) | ||||||
Annuity contracts, total accrued commitments and other | (1,973 | ) | (2,547 | ) | (3,077 | ) | ||||||
Projected Benefit Obligation under U.S. GAAP | 16,694 | 15,369 | 12,665 |
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Thousands of Euros | ||||
Registered liability under the EU-IFRS(*) | 14,014,305 | |||
Funds from employees taking early retirement | (4,480,456 | ) | ||
Annuity contracts | (651,147 | ) | ||
Other commitments | (263,576 | ) | ||
Assets pledged | 7,767,908 | |||
Plan Assets | (11,494,773 | ) | ||
Liability under U.S. GAAP (before SFAS 158 adjustment) | 4,892,261 | |||
Effect of adopting SFAS 158 | 306,473 | |||
Liability under U.S. GAAP (after SFAS 158 adjustment) | 5,198,734 | |||
Minimum | ||||||||||||
ABO | Plan Assets | Liability | ||||||||||
Spanish entities | 5,181,632 | 3,761,875 | 1,419,757 | |||||||||
Abbey | 5,690,246 | 4,810,127 | 880,119 | |||||||||
Other foreign subsidiaries | 4,845,977 | 2,922,771 | 1,923,206 | |||||||||
TOTAL | 15,717,855 | 11,494,773 | 4,223,082 | |||||||||
Registered liability (before FAS 158) in excess over Minimum Liability as per SFAS 87 | 669,179 |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
Before | After | |||||||||||
Application of | Application of | |||||||||||
Thousands of Euros | Statement 158 | Adjustments | Statement 158 | |||||||||
Tax assets — Deferred | 257,206 | 91,942 | 349,148 | |||||||||
Total assets | 841,847,616 | 91,942 | 841,939,558 | |||||||||
Provisions — Provisions for pensions and similar obligations | 4,892,261 | 306,473 | 5,198,734 | |||||||||
Total liabilities | 792,929,545 | 306,473 | 793,236,018 | |||||||||
Accumulated other comprehensive income | (4,534,795 | ) | (214,531 | ) | (4,749,326 | ) | ||||||
Total shareholders’ equity | 48,918,071 | (214,531 | ) | 48,703,540 | ||||||||
Total liabilities and shareholders’ equity | 841,847,016 | 91,942 | 841,939,558 |
Thousands of Euros | ||||
Prior service cost | 332 | |||
Net actuarial losses | 22,856 | |||
Total | 23,188 | |||
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Other | Effect on | |||||||||||
Profit and | Comprehensive | Stockholders’ | ||||||||||
Thousands of Euros | Loss | Income | Equity | |||||||||
Effect of adopting SFAS 158— Actuarial losses & Prior service cost | — | (306,473 | ) | (306,473 | ) | |||||||
Total effect of adopting SFAS 158 | — | (306,473 | ) | (306,473 | ) | |||||||
Effect of special termination benefits- Reversal of early retirement plans not individually accepted | 412,085 | — | 412,085 | |||||||||
Total effect of special termination benefits | 412,085 | — | 412,085 | |||||||||
TOTAL BEFORE TAXES | 412,085 | (306,473 | ) | 105,612 | ||||||||
Taxes | (123,626 | ) | 91,942 | (31,684 | ) | |||||||
TOTAL AFTER TAXES | 288,459 | (214,531 | ) | 73,928 | ||||||||
Income and expenses recognized directly in equity are accounted for as temporary differences.
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Thousands of Euros | ||||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||
Deferred | Deferred | Deferred | Deferred | Deferred | Deferred | |||||||||||||||||||
Tax | Tax | Tax | Tax | Tax | Tax | |||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||
Tax effect of EU-IFRS(*) to U.S. GAAP reconciliation adjustments: | ||||||||||||||||||||||||
Legal restatements of assets(considered as deemed cost upon first time adoption of the EU-IFRS(*)) | 74,735 | — | 77,346 | — | 79,315 | — | ||||||||||||||||||
Effect of net unrealized gains on derivative instruments | 66,679 | — | — | 138,373 | — | 18,539 | ||||||||||||||||||
Loan allowances | — | 219,935 | — | 299,162 | — | 404,874 | ||||||||||||||||||
Pension Liabilities and other post-employment benefits | (36,964 | ) | — | — | — | — | — | |||||||||||||||||
Securitization | — | 55,079 | — | (17,743 | ) | — | — | |||||||||||||||||
Other items | — | 32,467 | 13,990 | — | 92,084 | — | ||||||||||||||||||
Effect on deferred taxes of change in Spanish tax rate | (25,488 | ) | (26,886 | ) | — | — | — | — | ||||||||||||||||
Total | 78,962 | 280,595 | 91,336 | 419,792 | 171,399 | 423,413 |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
Pension | ||||||||||||||||||||
liabilities | ||||||||||||||||||||
Net Gains | Unrealized | and other | ||||||||||||||||||
Foreign | (Losses) on | Gains | post- | Other | ||||||||||||||||
Currency | Derivative | (Losses) on | employment | Comprehensive | ||||||||||||||||
Thousands of Euros | Items | Instruments | Securities | benefits | Income (Loss) | |||||||||||||||
Balance as of December 31, 2003 | (7,236,740 | ) | (14,146 | ) | 2,606,980 | — | (4,643,906 | ) | ||||||||||||
Changes in 2004 | (121,532 | ) | 353,212 | (569,590 | ) | — | (337,910 | ) | ||||||||||||
Balance as of December 31, 2004 | (7,358,272 | ) | 339,066 | 2,037,390 | — | (4,981,816 | ) | |||||||||||||
Changes in 2005 | 1,112,333 | (268,660 | ) | (82,458 | ) | — | 761,215 | |||||||||||||
Balance as of December 31, 2005 | (6,245,939 | ) | 70,406 | 1,954,932 | — | (4,220,601 | ) | |||||||||||||
Changes in 2006 | (501,666 | ) | (21,154 | ) | 208,626 | (214,531 | ) | (528,725 | ) | |||||||||||
Balance as of December 31, 2006 | (6,747,605 | ) | 49,252 | 2,163,558 | (214,531 | ) | (4,749,326 | ) |
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2006 | 2005 | 2004 | ||||||||||||||||||||||||||||||||||
Before Tax | Tax expense or | Net of tax | Before Tax | Tax expense or | Net of tax | Before Tax | Tax expense or | Net of tax | ||||||||||||||||||||||||||||
Thousands of Euros | amount | benefit | amount | amount | benefit | amount | amount | benefit | amount | |||||||||||||||||||||||||||
Foreign currency translation adjustments | (501,666 | ) | — | (501,666 | ) | 1,112,333 | — | 1,112,333 | (121,532 | ) | — | (121,532 | ) | |||||||||||||||||||||||
Net Gains on Derivatives | 9,087 | (30,241 | ) | (21,154 | ) | (427,569 | ) | 158,909 | (268,660 | ) | 543,403 | (190,191 | ) | 353,212 | ||||||||||||||||||||||
Pension liabilities and other post-employment benefits | (306,473 | ) | 91,942 | (214,531 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||
Unrealized gains on securities: | ||||||||||||||||||||||||||||||||||||
Total holding gains arising during the period | 1,632,809 | (487,179 | ) | 1,145,630 | 1,114,565 | (68,898 | ) | 1,045,667 | 1,175,894 | (684,630 | ) | 491,264 | ||||||||||||||||||||||||
Less: reclassification adjustment for gains included in net income | (1,338,576 | ) | 401,572 | (937,004 | ) | (1,173,555 | ) | 45,430 | (1,128,125 | ) | (1,632,083 | ) | 571,229 | (1,060,854 | ) | |||||||||||||||||||||
Net unrealized gains(losses) | 294,233 | (85,607 | ) | 208,626 | (58,990 | ) | (23,468 | ) | (82,458 | ) | (456,189 | ) | (113,401 | ) | (569,590 | ) | ||||||||||||||||||||
Other Comprehensive Income (Loss) | (504,819 | ) | (23,906 | ) | (528,725 | ) | 625,774 | 135,441 | 761,215 | (34,318 | ) | (303,592 | ) | (337,910 | ) |
a. | The captions “Loans and advances to credit institutions”, “Cash and balances with central banks”and “Loans and advances to customers” (see Notes 6 and 10) include securities purchased under agreements to resell to financial institutions and other customers, respectively. Under U.S. GAAP, securities purchased under agreements to resell are presented as a separate item. | ||
b. | The assets classified under the main category of“Other financial assets at fair value through profit or loss”,are reclassified in the U.S. GAAP balance sheet to financial assets held for trading — Banks, Loans, Debt Securities or Equity Securities, according to their nature, as such designation doesn’t exist. | ||
c. | The caption “Insurance contracts linked to pensions” is presented netted with pension liabilities in the “Pension Allowance” caption of the U.S. GAAP balance sheet. | ||
d. | Preference shares are included in“Equity having the substance of a financial liability”or“Subordinated debt”in our EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 balance sheet, while in the U.S. GAAP balance sheet they are included in “Minority interest” or “Long-term debt” depending on which entity act as issuer (operative or special purpose entity respectively). See Note 58.5 for further explanation. | ||
e. | Assets acquired through foreclosure and waiting disposition, net of the related allowances, are included under “Non-current assets held for sale: Tangible assets” in the balance sheet (see Note 12). Under U.S. GAAP, such assets are presented under “Other assets”. | ||
f. | The “Total other assets”caption on the asset side of the U.S. GAAP balance sheet includes the followings captions of the EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 Balance Sheet: “Intangible assets”, “Other assets” and “Prepayments and accrued income”. | ||
g. | Deposits from credit institutions (see Note 20) and from customers (see Note 21), both including securities sold under agreements to repurchase and other short-term borrowings, are presented as separate items in the balance sheet. Under U.S. GAAP, such funds are presented under “Deposits” classified by nature, except securities sold under agreements to repurchase and other short-term borrowings, which are presented under the caption “Short-term debt”. |
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h. | The liability captions “Debt securities” and “Subordinated debt” disclosed in the balance sheet (Notes 22 and 23 respectively) are presented under the caption “Long term debt” under U.S. GAAP, except the item “Promissory Notes” which is included under the “Short term debt” caption. | ||
i. | The following captions on the liability side of the EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 balance sheet are presented under the caption “Other liabilities-Others” on the U.S. GAAP balance sheet: “Other liabilities”, “Accrued expenses and Deferred Income” and “Provisions”. | ||
j. | The caption “Pension allowance” on the U.S. GAAP balance sheet is reported net of the amounts of pension commitments covered by contracts taken out with insurance companies; these amounts are presented on the EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 balance sheet under the caption “Insurance contracts linked to pensions”. | ||
k. | Under the EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 stock borrowed and lent are accounted for as off-balance sheet commitments. Under U.S. GAAP these transactions are grossed up on the balance sheet and included as an asset (“Available-for-sale Investment securities”)and as liabilities that represent the obligation to return the securities received (“stock borrowing liabilities” under the“Other liabilities”caption). |
a. | The breakdown of interest income and interest expense under the EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 and U.S. GAAP is determined by the classification of the assets and liabilities that generate such income and expenses. However, net interest income in our statement of income includes the interest cost assigned to the pension plan, which are classified as a part of “Salaries and employee benefits” in the U.S. GAAP statement of income. | ||
b. | Income and expenses of Insurance business in our statement of income is included under the “Insurance activity income” caption, while in the U.S. GAAP statements the revenue is classified under the “Interest Income” or “Non-Interest income” captions and the expenses under the “Interest expense”or “Non-interest Expense” captions. | ||
c. | Commissions and fees received and paid by the Group are presented as separate items in our statement of income. Under U.S. GAAP, such commissions and fees are presented net and detailed by activity (together with insurance activity, see Note b) above). | ||
d. | “Gains/losses on financial assets and liabilities (net)” includes gains and losses from investment securities and from derivatives. Under U.S. GAAP, such gains and losses are disclosed separately under“Gains (losses) from investment securities” and“Gains (losses) from foreign exchange, derivatives and other, net”. | ||
e. | Occupancy and maintenance expenses of premises and equipment are included under the caption“Other general administrative expenses”. Under U.S. GAAP, such expenses are included as a part of“Occupancy expenses of premises, depreciation and maintenance, net”. | ||
f. | Amortization of intangible assets is included as a part of “Depreciation and amortization”. Under U.S. GAAP, such amortization is included under“Non-interest expense - - Amortization of intangible assets”. | ||
g. | “Impairment losses”and“Provisions (net)”are excluded from the subtotals “Other operating expenses” and “Net operating income”, according to the formats prescribed by the Bank of Spain Circular and the CNMV Circular. Under IFRS, impairment losses and provision expenses are to be recorded as components of the subtotals “Net operating income” and “Other operating expenses”. |
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Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Assets | ||||||||||||
Cash and due from banks | 12,092,021 | 12,778,288 | 8,262,456 | |||||||||
Interest earning deposits in other banks | 18,744,258 | 21,656,497 | 16,260,049 | |||||||||
Securities purchased under agreements to resell | 29,553,485 | 30,118,812 | 28,221,773 | |||||||||
Trading account assets | 185,793,404 | 203,070,126 | 157,515,031 | |||||||||
Banks | 14,813,223 | 12,707,521 | 19,402,241 | |||||||||
Loans | 38,555,526 | 32,911,193 | 22,799,136 | |||||||||
Derivatives | 34,984,291 | 27,629,194 | 21,081,213 | |||||||||
Debt securities | 81,237,212 | 91,441,181 | 75,502,587 | |||||||||
Equity securities | 16,203,152 | 38,381,037 | 18,729,854 | |||||||||
Investment securities | 39,320,069 | 102,824,478 | 73,608,624 | |||||||||
Available-for-sale | 39,320,069 | 102,824,478 | 73,608,624 | |||||||||
Net Loans and leases | 461,231,697 | 380,047,994 | 326,827,400 | |||||||||
Loans and leases, net of unearned income | 469,395,141 | 387,657,920 | 333,672,615 | |||||||||
Less-Allowance for loan losses | (8,163,444 | ) | (7,609,926 | ) | (6,845,215 | ) | ||||||
Premises and equipment, net | 8,941,963 | 8,912,411 | 9,627,478 | |||||||||
Investment in affiliated companies | 5,006,109 | 3,031,482 | 3,747,564 | |||||||||
Other assets | 76,828,415 | 78,724,301 | 77,163,052 | |||||||||
Intangible Assets | 2,444,106 | 2,211,026 | 412,733 | |||||||||
Goodwill in consolidation | 14,512,735 | 14,018,245 | 15,090,541 | |||||||||
Accrual Accounts | 1,581,843 | 2,969,219 | 3,006,164 | |||||||||
Hedge derivatives | 2,987,964 | 4,126,104 | 3,824,936 | |||||||||
Others | 55,301,767 | 55,399,707 | 54,828,678 | |||||||||
Total assets | 837,511,421 | 841,164,389 | 701,233,427 | |||||||||
Liabilities | ||||||||||||
Deposits | 353,855,908 | 329,944,371 | 311,879,381 | |||||||||
Non interest deposits | 4,256,369 | 9,159,404 | 7,917,020 | |||||||||
Interest bearing | 349,599,539 | 320,784,967 | 303,962,361 | |||||||||
Demand deposits | 91,633,288 | 82,603,507 | 113,481,111 | |||||||||
Savings deposits | 93,717,633 | 90,471,827 | 78,849,072 | |||||||||
Time deposits | 164,248,618 | 147,709,633 | 101,439,108 | |||||||||
Certificates of deposit | — | — | 10,193,070 | |||||||||
Short-term debt | 127,819,292 | 151,359,866 | 86,584,340 | |||||||||
Long-term debt | 176,369,886 | 131,059,159 | 104,817,622 | |||||||||
Other liabilities | 131,554,301 | 184,946,750 | 160,249,349 | |||||||||
Taxes Payable | 4,539,051 | 3,867,795 | 3,496,212 | |||||||||
Accounts Payable | 6,405,232 | 5,202,654 | 2,508,725 | |||||||||
Accrual Accounts | 2,999,080 | 3,048,733 | 4,305,825 | |||||||||
Pension Allowance | 11,409,770 | 11,496,596 | 10,687,541 | |||||||||
Stock borrowing liabilities | 28,808,637 | 31,538,809 | 28,139,089 | |||||||||
Derivatives | 42,231,967 | 28,708,336 | 29,087,299 | |||||||||
Liabilities under insurance contracts | 10,704,258 | 44,672,300 | 42,344,776 | |||||||||
Other Provisions | 5,212,208 | 5,650,029 | 4,577,300 | |||||||||
Short securities positions | 11,473,062 | 17,415,800 | 8,712,120 | |||||||||
Others | 7,771,036 | 33,345,698 | 26,390,462 | |||||||||
Total liabilities | 789,599,387 | 797,310,146 | 663,530,692 | |||||||||
Minority interest | 3,060,475 | 4,075,767 | 3,287,793 | |||||||||
Stockholders’ equity | ||||||||||||
Capital stock | 3,127,148 | 3,127,148 | 3,127,148 | |||||||||
Additional paid-in-capital | 20,370,128 | 20,370,128 | 20,370,128 | |||||||||
Other additional capital | (1,442,379 | ) | (1,797,267 | ) | (1,437,162 | ) | ||||||
Current year earnings | 7,595,947 | 6,220,104 | 3,605,870 | |||||||||
Other reserves | 15,200,715 | 11,858,363 | 8,748,958 | |||||||||
Total stockholders’ equity | 44,851,559 | 39,778,476 | 34,414,942 | |||||||||
Total liabilities and Stockholders’ equity | 837,511,421 | 841,164,389 | 701,233,427 |
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Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Interest income: | ||||||||||||
Interest and fees on loans and leases | 27,467,792 | 26,223,462 | 11,000,093 | |||||||||
Interest on deposits in other banks | 3,793,454 | 5,189,789 | 2,066,299 | |||||||||
Interest on securities purchased under agreements to resell | 1,349,838 | 1,123,269 | 760,268 | |||||||||
Interest on investment securities | 5,466,969 | 5,452,841 | 4,298,332 | |||||||||
Dividends | 164,606 | 176,319 | 176,404 | |||||||||
Total interest income | 38,242,659 | 38,165,680 | 18,301,396 | |||||||||
Interest expenses: | ||||||||||||
Interest on deposits | (13,110,588 | ) | (13,648,652 | ) | (5,430,827 | ) | ||||||
Interest on short-term borrowings | (4,483,245 | ) | (4,240,167 | ) | (2,373,045 | ) | ||||||
Interest on long-term debt | (6,562,678 | ) | (4,314,932 | ) | (1,909,694 | ) | ||||||
Total interest expense | (24,156,511 | ) | (22,203,751 | ) | (9,713,566 | ) | ||||||
Net interest income | 14,086,148 | 15,961,929 | 8,587,830 | |||||||||
Provision for credit losses | (2,467,135 | ) | (1,615,195 | ) | (1,585,869 | ) | ||||||
Net interest income after provision for credit losses | 11,619,013 | 14,346,734 | 7,001,961 | |||||||||
Non-interest income: | ||||||||||||
Commissions and fees from fiduciary activities | 2,087,504 | 1,955,911 | 1,583,185 | |||||||||
Commissions and fees from securities activities, net | 777,687 | 640,137 | 509,782 | |||||||||
Fees and commissions from insurance activities | 5,985,488 | 4,406,201 | 2,748,984 | |||||||||
Other Fees and commissions, net | 3,150,168 | 2,735,749 | 2,108,624 | |||||||||
Gains (losses) from: | ||||||||||||
Affiliated companies’ securities | 534,276 | 1,741,850 | 303,523 | |||||||||
Investment securities | 3,546,930 | 2,558,182 | 1,821,971 | |||||||||
Foreign exchange, derivatives and other, net | (2,975,399 | ) | 114,550 | 128,909 | ||||||||
Sale of premises | 89,024 | (85,914 | ) | (189,984 | ) | |||||||
Other income | 3,982,841 | 1,789,712 | 1,686,202 | |||||||||
Total noninterest income | 17,178,519 | 15,856,378 | 10,701,196 | |||||||||
Non interest expense: | ||||||||||||
Salaries and employee benefits | (7,660,946 | ) | (6,999,555 | ) | (5,533,934 | ) | ||||||
Occupancy expense of premises, depreciation and maintenance, net | (1,503,766 | ) | (1,420,126 | ) | (965,182 | ) | ||||||
General and administrative expenses | (3,177,021 | ) | (2,990,714 | ) | (2,019,004 | ) | ||||||
Impairment of goodwill | — | — | (138,200 | ) | ||||||||
Impairment / amortization of intangible assets | (519,953 | ) | (398,852 | ) | (348,119 | ) | ||||||
Provisions for specific allowances | (94,352 | ) | (1,029,147 | ) | (391,376 | ) | ||||||
Payments to Deposit Guarantee Fund | (180,217 | ) | (173,696 | ) | (141,617 | ) | ||||||
Insurance claims | (5,197,709 | ) | (7,785,434 | ) | (2,501,461 | ) | ||||||
Other expenses | (1,224,044 | ) | (1,531,802 | ) | (1,274,122 | ) | ||||||
Total non-interest expense | (19,558,008 | ) | (22,329,326 | ) | (13,313,015 | ) | ||||||
Income before income taxes | 9,239,524 | 7,873,786 | 4,390,142 | |||||||||
Income tax expense | (2,293,638 | ) | (1,274,738 | ) | (525,824 | ) | ||||||
Net consolidated income for the year | 6,945,886 | 6,599,048 | 3,864,318 | |||||||||
Net income attributed to minority interest | 527,966 | 523,979 | 338,496 | |||||||||
Income from discontinued operation, net of taxes | 1,178,027 | 145,035 | 80,048 | |||||||||
NET INCOME ATTRIBUTED TO THE GROUP | 7,595,947 | 6,220,104 | 3,605,870 | |||||||||
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Thousands of shares | ||||||||||||
NUMBER OF REGISTERED SHARES | 2006 | 2005 | 2004 | |||||||||
Balance at beginning of the year | 6,254,296 | 6,254,296 | 4,768,402 | |||||||||
Capital increases for the acquisition of Abbey National PLC (November 2004, Note 59.9) | — | — | 1,485,894 | |||||||||
Balance at end of the year | 6,254,296 | 6,254,296 | 6,254,296 | |||||||||
Par value per share at year-end (Euro): | 0.50 | 0.50 | 0.50 |
Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Capital stock | ||||||||||||
Balance at beginning of the year | 3,127,148 | 3,127,148 | 2,384,201 | |||||||||
Capital increases for the acquisition of Abbey National PLC (November 2004, Note 59.9) | — | — | 742,947 | |||||||||
Balance at year-end | 3,127,148 | 3,127,148 | 3,127,148 | |||||||||
Retained earnings and other reserves | ||||||||||||
Balance at beginning of the year | 33,574,232 | 29,510,230 | 16,235,432 | |||||||||
Net income attributable to the Group for the year | 7,595,947 | 6,220,104 | 3,605,870 | |||||||||
Dividends | (2,197,934 | ) | (2,270,810 | ) | (2,015,948 | ) | ||||||
Decrease/ (increase) in Treasury stock | (64,106 | ) | 99,853 | (127,223 | ) | |||||||
Paid-in capital | — | — | 11,797,995 | |||||||||
Other variations, net | (54,485 | ) | 14,855 | 14,104 | ||||||||
Balance at year-end | 38,853,654 | 33,574,232 | 29,510,230 | |||||||||
Valuation Adjustments | ||||||||||||
Balance at beginning of the year | 3,077,096 | 1,777,564 | 2,043,360 | |||||||||
Net Income Recognized Directly In Equity | (206,339 | ) | 1,299,532 | (265,796 | ) | |||||||
Balance at year-end | 2,870,757 | 3,077,096 | 1,777,564 | |||||||||
Stockholders’ Equity balance at year-end | 44,851,559 | 39,778,476 | 34,414,942 |
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2006 | 2005 | 2004 | ||||||||||
(Thousands of Euros) | ||||||||||||
Assets | ||||||||||||
Cash and due from banks | 40,677,959 | 49,895,502 | 36,481,668 | |||||||||
Trading account assets | 35,657,947 | 24,060,091 | 13,494,422 | |||||||||
Investment securities | 10,149,175 | 49,942,815 | 19,251,480 | |||||||||
Net Loans and leases | 141,139,269 | 107,596,398 | 94,585,607 | |||||||||
Investment in affiliated companies | 39,339,174 | 34,682,610 | 34,017,195 | |||||||||
Premises and equipment, net | 1,503,788 | 1,551,633 | 1,608,168 | |||||||||
Other assets | 16,208,699 | 13,972,259 | 13,029,526 | |||||||||
Total assets | 284,676,011 | 281,701,308 | 212,468,066 | |||||||||
Liabilities | ||||||||||||
Deposits | 153,757,709 | 133,530,241 | 106,840,594 | |||||||||
Short-term debt | 16,823,769 | 54,544,358 | 24,702,126 | |||||||||
Long-term debt | 43,272,302 | 36,974,185 | 33,996,367 | |||||||||
Other liabilities | 40,452,656 | 27,631,055 | 18,089,348 | |||||||||
Total liabilities | 254,306,436 | 252,679,839 | 183,628,435 | |||||||||
Stockholders’ equity | ||||||||||||
Capital stock | 3,127,148 | 3,127,148 | 3,127,148 | |||||||||
Retained earnings and other reserves | 27,242,427 | 25,894,321 | 25,712,483 | |||||||||
Total stockholders’ equity | 30,369,575 | 29,021,469 | 28,839,631 | |||||||||
Total liabilities and Stockholders’ equity | 284,676,011 | 281,701,308 | 212,468,066 |
2006 | 2005 | 2004 | ||||||||||
(Thousands of Euros) | ||||||||||||
Interest income | ||||||||||||
Interest from earning assets | 8,380,873 | 8,181,987 | 5,658,361 | |||||||||
Dividends from affiliated companies | 3,630,403 | 1,900,353 | 1,478,910 | |||||||||
12,011,276 | 10,082,340 | 7,137,271 | ||||||||||
Interest expense | (6,877,205 | ) | (6,852,627 | ) | (4,397,945 | ) | ||||||
Net interest income | 5,134,071 | 3,229,713 | 2,739,326 | |||||||||
Provision for credit losses | (506,281 | ) | (126,450 | ) | (619,372 | ) | ||||||
Net interest income after provision for credit losses | 4,627,790 | 3,103,263 | 2,119,954 | |||||||||
Non-interest income: | 1,968,709 | 2,552,860 | 2,355,913 | |||||||||
Non interest expense: | (3,337,769 | ) | (3,050,492 | ) | (2,609,673 | ) | ||||||
Income before income taxes | 3,258,730 | 2,605,631 | 1,866,194 | |||||||||
Income tax expense | (2,540 | ) | (622 | ) | 69,798 | |||||||
Net income | 3,256,190 | 2,605,009 | 1,935,992 |
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2006 | 2005 | 2004 | ||||||||||
(Thousands of Euros) | ||||||||||||
Preference shares | 668,328 | 1,308,847 | 2,124,222 | |||||||||
Preferred securities | 6,836,570 | 6,772,768 | 5,292,016 | |||||||||
Total at year-end | 7,504,898 | 8,081,615 | 7,416,238 |
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Outstanding at December 31, 2006 | ||||||||||||||||
Amount in | ||||||||||||||||
Preference Shares | currency | |||||||||||||||
Issuer/Date of issue | Currency | (million) | Interest rate | Redemption Option (3) | ||||||||||||
Banesto Holding, Ltd, (1) December 1992 | U.S. Dollar | 77.3 | 10.50 | % | June 30, 2012 | |||||||||||
Pinto Totta International Finance, Limited (1), 1997 | U.S. Dollar | 125 | 7.77 | % (4) | August 1, 2007 | |||||||||||
Abbey National Plc (2), October 1995 | Pounds Sterling | 100 | 10.375 | % | No option | |||||||||||
Abbey National Plc (2), February 1996 | Pounds Sterling | 100 | 10.375 | % | No option | |||||||||||
Abbey National Plc (2), June 1997 | Pounds Sterling | 125 | 8.625 | % | No option |
Outstanding at December 31, 2006 | ||||||||||
Amount in | ||||||||||
Preferred Securities | currency | |||||||||
Issuer/Date of issue | Currency | (million) | Interest rate | Maturity date | ||||||
Banesto Group | ||||||||||
Banesto Preferentes, S.A. (1) December 2003 | Euro | 131.14 | Euribor (3M) + 0.2% | Perpetuity | ||||||
Banco Español de Crédito (2), October 2004 | Euro | 125 | Eur CMS 10 + 0.125% | Perpetuity | ||||||
Banco Español de Crédito (2), November 2004 | Euro | 200 | 5.5% | Perpetuity | ||||||
Santander Finance Capital, S.A. (Unipersonal) (1) | ||||||||||
October 2003 | Euro | 450 | Euribor (3M) + 0.1% | Perpetuity | ||||||
February 2004 | Euro | 400 | Euribor (3M) + 0.1% | Perpetuity | ||||||
July 2004 | Euro | 750 | Euribor (3M) + 0.1% | Perpetuity | ||||||
September 2004 | Euro | 680 | Euribor (3M) + 0.1% | Perpetuity | ||||||
April 2005 | Euro | 1,000 | Euribor (3M) + 0.1% | Perpetuity | ||||||
Santander Finance Preferred, S.A. (Unipersonal) (1) | ||||||||||
March 2004 | U.S. Dollar | 190 | 6.41% | Perpetuity | ||||||
September 2004 | Euro | 300 | Eur CMS 10 +0.05% subject to a maximum distribution of 8% per annum | Perpetuity | ||||||
October 2004 | Euro | 200 | 5.75% | Perpetuity | ||||||
November 2006 | U.S. Dollar | 500 | 6.80% | Perpetuity | ||||||
Abbey Group | ||||||||||
Abbey National Capital Trust I (1), February 2000 | U.S. Dollar | 1,000 | Fixed to 8.963% until June 30, 2030, and from this date, 2.825% + Libor USD (3M) | Perpetuity | ||||||
Abbey National Plc (1), February 2001 | Pounds Sterling | 300 | 7.037% (5) | Perpetuity | ||||||
Abbey National Plc (1), August 2002 | Pounds Sterling | 175 | Fixed to 6.984% until February 9, 2018, and thereafter, at a rate reset semi-annually of 1.86% per annum + Libor GBP (6M) | Perpetuity | ||||||
Abbey National Plc (1), August 2002 | U.S. Dollar | 500 | 7.375% | Perpetuity | ||||||
Santander PR Capital Trust I | ||||||||||
February 2006 | U.S. Dollar | 125 | 6.750% | July 2036 |
(1) | Under U.S. GAAP, these entities have been designated “Variable Interest Entities” (VIEs) and they are not consolidated. Therefore, their issues have been excluded from the consolidated financial statements of the Group. Since that time the Group recognized the subordinated deposits related to these issues and their interests. See Note 58.4, where these issues have been classified as “Long Term Debt” and their dividends, as “Interest on Long-Term Debt”, respectively. Refer to Note 58.2 for more information. | |
(2) | Preference shares issued by Banesto and Abbey have been classified in Minority interest in the Balance Sheet prepared in accordance with the presentation guidelines for bank holding companies set forth in Regulation S-X. See Notes 58.5 and 58.2. | |
(3) | From these date the issuer can redeem the shares, subject to prior authorization by the national supervisor. | |
(4) | Return until August 1, 2007. 6-month dollars Libor +2.75% from this date. | |
(5) | From February 14, 2026, this issue will bear interest at a rate, reset every five years, of 3.75% per annum above the gross redemption yield on a five-year specified United Kingdom government security. |
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SANTANDER FINANCE CAPITAL, S.A. | Thousands of Euros | |||||||||||
(UNIPERSONAL) | 2006 | 2005 | 2004 | |||||||||
Assets: | ||||||||||||
Cash | 35,066 | 20,077 | 6,947 | |||||||||
Loans and credits | 46 | — | — | |||||||||
Deposits with Parent Bank | 3,214,769 | 3,214,769 | 2,235,269 | |||||||||
Start-up expenses | 34,458 | 47,268 | 38,793 | |||||||||
Accrual accounts | 19,967 | 15,099 | 8,551 | |||||||||
Total Assets | 3,304,306 | 3,297,213 | 2,289,560 | |||||||||
Liabilities and stockholders’ equity: | ||||||||||||
LIABILITIES: | ||||||||||||
SHORT-TERM DEBT | ||||||||||||
Public entities | 21 | 571 | 2,099 | |||||||||
Accrual accounts | 23,965 | 13,205 | 7,495 | |||||||||
Non-commercial debts | 34 | 3,237 | — | |||||||||
Total Short-term Liabilities | 24,020 | 17,013 | 9,594 | |||||||||
LONG-TERM DEBT | ||||||||||||
Debts with Group companies | 64 | 5 | 5 | |||||||||
Provisions for taxes | — | 12 | — | |||||||||
Preferred securities | 3,280,000 | 3,280,000 | 2,280,000 | |||||||||
Total Long-term Liabilities | 3,280,064 | 3,280,017 | 2,280,005 | |||||||||
Total Liabilities | 3,304,084 | 3,297,030 | 2,289,599 | |||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||||
Capital stock | 151 | 151 | 60 | |||||||||
Retained earnings | 32 | (99 | ) | 9 | ||||||||
Net income | 39 | 131 | (108 | ) | ||||||||
Total Stockholders’ Equity | 222 | 183 | (39 | ) | ||||||||
Total Liabilities and Stockholders’ Equity | 3,304,306 | 3,297,213 | 2,289,560 |
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Thousands of Euros | ||||||||||||
SANTANDER FINANCE CAPITAL, S.A. (UNIPERSONAL) | 2006 | 2005 | 2004 | |||||||||
Interest income | 113,237 | 86,299 | 39,726 | |||||||||
Interest expenses | (100,320 | ) | (74,425 | ) | (35,001 | ) | ||||||
Operating expenses | (12,857 | ) | (11,731 | ) | (4,833 | ) | ||||||
Corporate income tax | (21 | ) | (12 | ) | — | |||||||
Net income / (loss) | 39 | 131 | (108 | ) | ||||||||
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Total | ||||||||||||||||||||
Retained | Stockholders’ | |||||||||||||||||||
Capital stock | Earnings | Net income | Equity | |||||||||||||||||
Common | ||||||||||||||||||||
Changes in Stockholders’ Equity | Shares | Thousands of Euros | ||||||||||||||||||
Balance at January 1, 2005 | 602 | 60 | 9 | (108 | ) | (39 | ) | |||||||||||||
2004 Income allocation | — | — | (108 | ) | 108 | — | ||||||||||||||
2005 Capital increase | 903 | 91 | — | — | 91 | |||||||||||||||
Net income 2005 | — | — | — | 131 | 131 | |||||||||||||||
Balance at December 31, 2005 | 1,505 | 151 | (99 | ) | 131 | 183 | ||||||||||||||
2005 Income allocation | — | — | 131 | (131 | ) | — | ||||||||||||||
Net income 2006 | — | — | — | 39 | 39 | |||||||||||||||
Balance at December 31, 2006 | 1,505 | 151 | 32 | 39 | 222 | |||||||||||||||
Thousands of | ||||||||
Issue Date | Euros | |||||||
Series I | 10/3/2003 | 450,000 | ||||||
Series II | 02/18/2004 | 400,000 | ||||||
Series III | 07/30/2004 | 750,000 | ||||||
Series IV | 09/30/2004 | 680,000 | ||||||
Series V | 04/12/2005 | 1,000,000 | ||||||
Total | 3,280,000 |
- | On October 3, 2003, Santander Finance Capital, S.A. (Unipersonal) issued 18,000,000 preference securities, at€25 par value. | ||
- | On February 18, 2004, Santander Finance Capital, S.A. (Unipersonal) issued 16,000,000 preference securities, at€25 par value. | ||
- | On July 30, 2004, Santander Finance Capital, S.A. (Unipersonal) issued 30,000,000 preference securities, at€25 par value. | ||
- | On September 30, 2004, Santander Finance Capital, S.A. (Unipersonal) issued 27,200,000 preference securities, at€25 par value. | ||
- | On April 12, 2005, Santander Finance Capital, S.A. (Unipersonal) issued 40,000,000 preference securities, at€25 par value. | ||
- | These issues are perpetual and can be redeemable at the option of the issuer, subject to the consent of the Bank of Spain, in whole or in part, at any time after five years from the issue date. | ||
- | All the issues of Santander Finance Capital, S.A. (Unipersonal) are guaranteed by Banco Santander Central Hispano, S.A. |
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Thousands of Euros | ||||||||||||
SANTANDER FINANCE PREFERRED, S.A. (UNIPERSONAL) | 2006 | 2005 | 2004 | |||||||||
Assets: | ||||||||||||
Cash | 6,399 | 3,761 | 1,377 | |||||||||
Deposits with Parent Bank | 1,003,976 | 648,718 | 627,627 | |||||||||
Deferred expenses | 13,583 | 8,376 | 10,557 | |||||||||
Start-up expenses | 3 | 3 | 2 | |||||||||
Accrual accounts | 9,678 | 6,120 | 6,807 | |||||||||
Total Assets | 1,033,639 | 666,978 | 646,370 | |||||||||
Liabilities and stockholders’ equity: | ||||||||||||
LIABILITIES: | ||||||||||||
SHORT-TERM DEBT | ||||||||||||
Public entities | 57 | 65 | 188 | |||||||||
Accrual accounts | 8,883 | 5,646 | 6,333 | |||||||||
Non-commercial debts | 30 | 45 | 18 | |||||||||
Total Short-term Liabilities | 8,970 | 5,756 | 6,539 | |||||||||
LONG-TERM DEBT | ||||||||||||
Deferred income | 580 | — | 276 | |||||||||
Debts with group companies | 4 | — | — | |||||||||
Provisions for taxes | — | 4 | 2 | |||||||||
Preferred securities | 1,023,918 | 661,058 | 639,490 | |||||||||
Total Long-term Liabilities | 1,024,502 | 661,062 | 639,768 | |||||||||
Total Liabilities | 1,033,472 | 666,818 | 646,307 | |||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||||
Capital stock | 151 | 151 | 60 | |||||||||
Retained earnings | 9 | 3 | — | |||||||||
Net income | 7 | 6 | 3 | |||||||||
Total Stockholders’ Equity | 167 | 160 | 63 | |||||||||
Total Liabilities and Stockholders’ Equity | 1,033,639 | 666,978 | 646,370 | |||||||||
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Thousands of Euros | ||||||||||||
SANTANDER FINANCE PREFERRED, S.A. (UNIPERSONAL) | 2006 | 2005 | 2004 | |||||||||
Interest income | 38,335 | 35,345 | 14,634 | |||||||||
Interest expenses and similar expenses | (38,231 | ) | (35,167 | ) | (14,603 | ) | ||||||
Operating expenses | (93 | ) | (168 | ) | (26 | ) | ||||||
Corporate income tax | (4 | ) | (4 | ) | (2 | ) | ||||||
Net income / (loss) | 7 | 6 | 3 | |||||||||
Total | ||||||||||||||||||||
Retained | Stockholders’ | |||||||||||||||||||
Capital stock | Earnings | Net income | Equity | |||||||||||||||||
Common | ||||||||||||||||||||
Changes in Stockholders’ Equity | Shares | Thousands of Euros | ||||||||||||||||||
Balance at January 1, 2005 | 602 | 60 | — | 3 | 63 | |||||||||||||||
2004 Income allocation | — | — | 3 | (3 | ) | — | ||||||||||||||
2005 Capital increase | 903 | 91 | — | — | 91 | |||||||||||||||
Net income 2005 | — | — | — | 6 | 6 | |||||||||||||||
Balance at December 31, 2005 | 1,505 | 151 | 3 | 6 | 160 | |||||||||||||||
2004 Income allocation | — | — | 6 | (6 | ) | — | ||||||||||||||
Net income 2005 | — | — | — | 7 | 7 | |||||||||||||||
Balance at December 31, 2006 | 1,505 | 151 | 9 | 7 | 167 |
Thousands of | ||||||||
Issue Date | Euros at 12/31/06 | |||||||
Series 1- $190,000 | 03/11/2004 | 144,267 | ||||||
Series 2-€300,000 | 09/30/2004 | 300,000 | ||||||
Series 3-€200,000 | 10/08/2004 | 200,000 | ||||||
Series 4- $500,000 | 11/21/2006 | 379,652 | ||||||
1,023,918 |
- | On March 11, 2004, Santander Finance Preferred, S.A. (Unipersonal) issued 7,600,000 preferred securities, at $25 par value. | ||
- | On September 30, 2004, Santander Finance Preferred, S.A. (Unipersonal) issued 300,000 preferred securities, at€1,000 par value. |
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- | On October 8, 2004, Santander Finance Preferred, S.A. (Unipersonal) issued 200,000 preferred securities, at€1,000 par value. | ||
- | On November 21, 2006 Santander Finance Preferred, S.A. (Unipersonal) issued 20,000,000 preferred securities, at€25,000 par value. | ||
- | These issues are perpetual and can be redeemable at the option of the issuer, subject to the consent of the Bank of Spain, in whole or in part, at any time after five years from the issue date. | ||
- | All the issues of Santander Finance Preferred, S.A. (Unipersonal) are guaranteed by Banco Santander Central Hispano, S.A. |
U.S. GAAP | EU-IFRS(*) | Difference | ||||||||||
Purchase/merger of/with Banco Central Hispano | 1,983,009 | — | 1,983,009 | |||||||||
Acquisition of Banesto | 2,024,831 | 373,562 | 1,651,269 | |||||||||
Purchase of Abbey | 7,927,566 | 8,920,188 | (992,622 | ) | ||||||||
Others | 5,691,225 | 5,218,985 | 472,240 | |||||||||
Total | 17,626,631 | 14,512,735 | 3,113,896 | |||||||||
Of which: | ||||||||||||
Goodwill | 17,119,896 | 14,512,735 | 2,607,161 | |||||||||
Other assets and liabilities arisen in the business combinations reconciling adjustments to U.S. GAAP | 506,735 | — | 506,735 | |||||||||
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
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Thousands of Euros | U.S. GAAP | EU-IFRS(*) | Difference | |||||||||
2004 Year end balance | 15,973,862 | 15,090,541 | 883,321 | |||||||||
Acquisitions & sales | 60,094 | 60,113 | (19 | ) | ||||||||
Reclassifications | 218,109 | (1,856,227 | ) | 2,074,336 | ||||||||
Exchange differences | 613,684 | 723,818 | (110,134 | ) | ||||||||
2005 Year end balance | 16,865,749 | 14,018,245 | 2,847,504 | |||||||||
Acquisitions & sales | 392,186 | 574,166 | (181,981 | ) | ||||||||
Exchange differences | (125,228 | ) | (66,865 | ) | (58,363 | ) | ||||||
Impairment | (12,811 | ) | (12,811 | ) | — | |||||||
2006 Year end balance | 17,119,896 | 14,512,735 | 2,607,161 |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
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Additions & | Definitive | |||||||||||||||||||||||
Sales, net | assessment | |||||||||||||||||||||||
Estimated | December 31, | of exchange | of | Amortization | December 31, | |||||||||||||||||||
Thousands of Euros | Useful Life | 2004 | differences | acquisitions | & Impairments | 2005 | ||||||||||||||||||
With indefinite useful life: | ||||||||||||||||||||||||
Brand name (Abbey) | 566,000 | — | (106,320 | ) | — | 459,680 | ||||||||||||||||||
With finite useful life: | ||||||||||||||||||||||||
Customer deposits (Abbey) | 10 years | 1,451,000 | — | (193,157 | ) | — | 1,257,843 | |||||||||||||||||
Credit cards (Abbey) | 5 years | 33,000 | — | 2,021 | — | 35,021 | ||||||||||||||||||
Distribution channels (Abbey) | 25,692 | — | (25,692 | ) | — | — | ||||||||||||||||||
IT developments | 3 years | 815,949 | 391,657 | — | — | 1,207,606 | ||||||||||||||||||
Other assets | 77,724 | (19,564 | ) | 105,039 | — | 163,199 | ||||||||||||||||||
Accumulated amortization | (394,132 | ) | 88,639 | — | (398,852 | ) | (704,345 | ) | ||||||||||||||||
Impairment losses | (67,921 | ) | (9,080 | ) | — | (130,977 | ) | (207,978 | ) | |||||||||||||||
Subtotal | 2,507,312 | 451,652 | (218,109 | ) | (529,829 | ) | 2,211,026 | |||||||||||||||||
Present value of future profits (Abbey) | 642,308 | 18,511 | 569,520 | — | 1,230,339 | |||||||||||||||||||
Total | 3,149,620 | 470,163 | 351,411 | (529,829 | ) | 3,441,365 |
Additions & | ||||||||||||||||||||||||
Sales, net | ||||||||||||||||||||||||
of | Amortization | |||||||||||||||||||||||
Estimated | December | exchange | & | Impairments | December 31, | |||||||||||||||||||
Thousands of Euros | Useful Life | 31, 2005 | differences | Impairments | Applications | 2006 | ||||||||||||||||||
With indefinite useful life: | ||||||||||||||||||||||||
Brand name (Abbey) | 459,680 | 9,419 | — | — | 469,099 | |||||||||||||||||||
Other brand names | — | 18,078 | — | — | 18,078 | |||||||||||||||||||
With finite useful life: | ||||||||||||||||||||||||
Customer deposits (Abbey) | 10 years | 1,257,843 | 25,850 | — | — | 1,283,693 | ||||||||||||||||||
Credit cards (Abbey) | 5 years | 35,021 | 720 | — | — | 35,741 | ||||||||||||||||||
IT developments | 3 years | 1,207,606 | 295,371 | — | (193,299 | ) | 1,309,678 | |||||||||||||||||
Other assets | 163,199 | 159,827 | — | — | 323,026 | |||||||||||||||||||
Accumulated amortization | (704,345 | ) | 243,768 | (519,953 | ) | — | (980,530 | ) | ||||||||||||||||
Impairment losses | (207,978 | ) | — | — | 193,299 | (14,679 | ) | |||||||||||||||||
Subtotal | 2,211,026 | 753,033 | (519,953 | ) | — | 2,444,106 | ||||||||||||||||||
Present value of future profits (Abbey) | 1,230,339 | (1,230,339 | ) | — | — | — | ||||||||||||||||||
Total | 3,441,365 | (477,306 | ) | (519,953 | ) | — | 2,444,106 |
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Millions of Euros, except per share data | ||||||||||||||||||||||||
EU-IFRS(*) | U.S.GAAP | |||||||||||||||||||||||
2006 | 2005 | 2004 | 2006 | 2005 | 2004 | |||||||||||||||||||
NUMERATOR FOR BASIC AND DILUTED CALCULATION: | ||||||||||||||||||||||||
Net income from continuing operations attributable to the Group | 6,418 | 6,075 | 3,526 | 6,396 | 6,173 | 3,861 | ||||||||||||||||||
Net income from discontinued operations attributable to the Group | 1,178 | 145 | 80 | 1,019 | 145 | 80 | ||||||||||||||||||
Net income available to common stockholders for basic EPS | 7,596 | 6,220 | 3,606 | 7,415 | 6,318 | 3,941 | ||||||||||||||||||
Effect of dilutive securities | — | — | — | — | — | — | ||||||||||||||||||
Net income available to common stockholders for diluted EPS | 7,596 | 6,220 | 3,606 | 7,415 | 6,318 | 3,941 | ||||||||||||||||||
DENOMINATOR FOR BASIC AND DILUTED CALCULATION: | ||||||||||||||||||||||||
Basic calculation weighted-average shares | 6,248 | 6,241 | 4,950 | 6,248 | 6,241 | 4,950 | ||||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||||
Convertible bonds | — | — | — | — | — | — | ||||||||||||||||||
Stock options plans | 34 | 23 | 9 | 34 | 23 | 9 | ||||||||||||||||||
Weighted-average shares for diluted calculation | 6,282 | 6,264 | 4,959 | 6,282 | 6,264 | 4,959 | ||||||||||||||||||
EARNINGS PER SHARE RATIOS: | ||||||||||||||||||||||||
Basic earnings per share | ||||||||||||||||||||||||
Income from continuing operations | 1.027 | 0.973 | 0.712 | 1.024 | 0.989 | 0.780 | ||||||||||||||||||
Income from discontinued operations | 0.189 | 0.023 | 0.016 | 0.163 | 0.023 | 0.016 | ||||||||||||||||||
Net income | 1.216 | 0.997 | 0.728 | 1.187 | 1.012 | 0.796 | ||||||||||||||||||
Diluted earnings per share | ||||||||||||||||||||||||
Income from continuing operations | 1.022 | 0.970 | 0.711 | 1.018 | 0.986 | 0.779 | ||||||||||||||||||
Income from discontinued operations | 0.188 | 0.023 | 0.016 | 0.162 | 0.023 | 0.016 | ||||||||||||||||||
Net income | 1.209 | 0.993 | 0.727 | 1.180 | 1.009 | 0.795 | ||||||||||||||||||
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
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Note 59.1. | Securitization | |
Note 59.2. | Allowance for Credit Losses | |
Note 59.3. | Investment Securities | |
Note 59.4. | Derivative Financial Instruments | |
Note 59.5. | Short Term Borrowings | |
Note 59.6. | Guarantees | |
Note 59.7. | Additional disclosures about fair value | |
Note 59.8. | Stock Option Plans | |
Note 59.9. | Acquisition of Abbey | |
Note 59.10. | Acquisition of Drive Consumer U.S.A. Inc. | |
Note 59.11. | Additional subsequent events |
EU-IFRS(*) | U.S. GAAP | |||||||||||||||||||||||
Thousands of Euros | 2006 | 2005 | 2004 | 2006 | 2005 | 2004 | ||||||||||||||||||
Accounted for as a sale | 4,901,712 | 6,065,484 | 8,254,325 | 27,467,108 | 27,533,454 | 26,939,525 | ||||||||||||||||||
Mortgage loans | 2,980,911 | 2,897,250 | 3,946,942 | 25,546,307 | 24,365,220 | 22,632,142 | ||||||||||||||||||
Of which Abbey | — | — | — | 22,565,396 | 21,467,970 | 18,685,200 | ||||||||||||||||||
Other securitized assets | 1,920,801 | 3,168,234 | 4,307,383 | 1,920,801 | 3,168,234 | 4,307,383 | ||||||||||||||||||
Continued recognition of the assets | 59,425,910 | 46,523,076 | 36,410,366 | 36,860,514 | 25,055,106 | 17,725,166 | ||||||||||||||||||
Mortgage loans | 36,363,009 | 33,085,261 | 26,245,840 | 13,797,613 | 11,617,291 | 7,560,640 | ||||||||||||||||||
Of which Abbey | 22,565,396 | 21,467,970 | 18,685,200 | — | — | — | ||||||||||||||||||
Other securitized assets | 23,062,901 | 13,437,815 | 10,164,526 | 23,062,901 | 13,437,815 | 10,164,526 | ||||||||||||||||||
TOTAL | 64,327,622 | 52,588,560 | 44,664,691 | 64,327,622 | 52,588,560 | 44,664,691 |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
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F-192
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Gross assets | Non-recourse | |||||||||||
Closing date of | securitized | finance | ||||||||||
Securitization company | Securitization | Millions of Euros | ||||||||||
Holmes Financing (No.1) plc | July 26, 2000 | 1,346 | 1,346 | |||||||||
Holmes Financing (No.2) plc | November 29, 2000 | 497 | 497 | |||||||||
Holmes Financing (No.6) plc | November 7, 2002 | 2,676 | 3,093 | |||||||||
Holmes Financing (No.7) plc | March 26, 2003 | 1,270 | 1,510 | |||||||||
Holmes Financing (No. 8) plc | April 1, 2004 | 2,983 | 4,304 | |||||||||
Holmes Financing (No. 9) plc | December 8, 2005 | 4,138 | 4,138 | |||||||||
Holmes Financing (No. 10) plc | August 8, 2006 | 5,093 | 5,851 | |||||||||
Holmes Master Issuer plc | November 28, 2006 | 4,561 | 5,153 | |||||||||
Retained interest in Holmes Trustees Limited | 20,828 | – | ||||||||||
43,392 | 25,892 | |||||||||||
- | Financial assets transferred to it that are passive in nature (loans). | ||
- | Passive derivative financial instruments that pertain to beneficial interests (other than another derivative financial instrument) issued or sold to parties other than the transferor, its affiliates, or its agents. | ||
- | Financial assets (for example, guarantees or rights to collateral) that would reimburse it if others were to fail to adequately service financial assets transferred to it or to timely pay obligations due to it and that it entered into when it was established, when assets were transferred to it, or when beneficial interests (other than derivative financial instruments) were issued by the SPE. All the guarantees relating to the transferred loans are transferred to the securitization funds. | ||
- | Servicing rights related to financial assets that it holds. | ||
- | Temporarily, non-financial assets obtained in connection with the collection of financial assets that it holds. | ||
- | Cash collected from assets that it holds and investments purchased with that cash pending distribution to holders of beneficial interests that are appropriate for that purpose (that is, money-market or other relatively risk-free instruments without options and with maturities no later than the expected distribution date). |
F-193
Table of Contents
Thousands of Euros | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Impaired loans requiring no reserve | 766,255 | 974,418 | 613,680 | |||||||||
Impaired loans requiring valuation allowance | 3,865,005 | 3,407,355 | 3,618,153 | |||||||||
Total impaired loans | 4,631,260 | 4,381,773 | 4,231,833 | |||||||||
Valuation allowance on impaired loans | 2,922,495 | 3,130,929 | 2,995,621 | |||||||||
Year ended December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
(Thousands of Euros) | ||||||||||||
Interest owed on non-accruing assets | ||||||||||||
Domestic | 49,537 | 38,751 | 36,273 | |||||||||
International | 218,216 | 273,834 | 184,090 | |||||||||
Total | 267,753 | 312,585 | 220,363 | |||||||||
Interest received on non-accruing assets | ||||||||||||
Domestic | 86,370 | 79,183 | 83,535 | |||||||||
International | 70,435 | 77,602 | 105,273 | |||||||||
Total | 156,805 | 156,785 | 188,808 |
F-194
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December 31, 2006 | December 31, 2005 | December 31, 2004 | ||||||||||||||||||||||||||||||||||||||||||||||
Gross | Gross | Gross | Gross | Gross | Gross | |||||||||||||||||||||||||||||||||||||||||||
(U.S. GAAP presentation) | Amortized | unrealized | unrealized | Fair | Amortized | unrealized | unrealized | Fair | Amortized | unrealized | unrealized | Fair | ||||||||||||||||||||||||||||||||||||
Thousands of Euros | cost | gains | losses (2) | Value (1) | cost | gains | losses (2) | Value (1) | cost | gains | losses | Value (1) | ||||||||||||||||||||||||||||||||||||
Available-for-sale securities | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
United States- | ||||||||||||||||||||||||||||||||||||||||||||||||
US Treasury and other US Government Agencies | 768,440 | 11 | 15,703 | 752,748 | 651,424 | — | 13,933 | 637,491 | 1,382,532 | 18,912 | 3,849 | 1,397,595 | ||||||||||||||||||||||||||||||||||||
States and political subdivisions | 41,648 | — | 589 | 41,059 | 90,881 | — | 390 | 90,491 | 308,530 | 432 | — | 308,962 | ||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | 322,163 | — | 9,750 | 312,413 | 655,442 | — | 13,323 | 642,119 | 274,154 | — | 5,330 | 268,824 | ||||||||||||||||||||||||||||||||||||
Corporate debt securities | — | — | — | — | — | — | — | — | 125,669 | 1 | 111 | 125,559 | ||||||||||||||||||||||||||||||||||||
Other securities | 995,121 | — | 260 | 994,861 | 1,402,838 | — | 376 | 1,402,462 | 296,489 | 69 | 404 | 296,154 | ||||||||||||||||||||||||||||||||||||
Spanish Government | 7,745,231 | 123,738 | 2,011 | 7,866,958 | 12,787,831 | 291,095 | 43,531 | 13,035,395 | 11,418,052 | 308,323 | — | 11,726,375 | ||||||||||||||||||||||||||||||||||||
Other Spanish public authorities | 20,653 | 1,695 | — | 22,348 | 17,615 | — | — | 17,615 | 17,768 | — | — | 17,768 | ||||||||||||||||||||||||||||||||||||
Securities of other foreign Governments | 8,268,849 | 695,215 | 9,269 | 8,954,795 | 43,254,927 | 391,236 | 26,469 | 43,619,694 | 7,815,031 | 581,363 | 162,185 | 8,234,209 | ||||||||||||||||||||||||||||||||||||
Other Corporate debt securities | 490,852 | 1,087 | 527 | 491,412 | 1,367,372 | 78 | 856 | 1,366,594 | 1,979,628 | 9,122 | 3,733 | 1,985,017 | ||||||||||||||||||||||||||||||||||||
Other Mortgage-backed securities | 1,665,206 | 29,127 | 357 | 1,693,976 | 2,465,580 | 1,895 | 30,142 | 2,437,333 | 6,607,348 | 1,444 | 3 | 6,608,789 | ||||||||||||||||||||||||||||||||||||
Other debt securities | 12,159,113 | 62,103 | 2,562 | 12,218,654 | 4,939,894 | 36,487 | 351 | 4,976,030 | 5,675,066 | 59,947 | 1,778 | 5,733,235 | ||||||||||||||||||||||||||||||||||||
32,477,276 | 912,976 | 41,028 | 33,349,224 | 67,633,804 | 720,791 | 129,371 | 68,225,224 | 35,900,267 | 979,613 | 177,393 | 36,702,487 | |||||||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||||||||||||||||||
Spanish securities | 1,877,175 | 208,599 | — | 2,085,774 | 1,548,863 | 804,337 | — | 2,353,200 | 682,022 | 657,558 | — | 1,339,580 | ||||||||||||||||||||||||||||||||||||
International securities | 2,398,862 | 1,486,209 | — | 3,885,071 | 2,576,992 | 960,726 | — | 3,537,718 | 5,524,865 | 954,391 | — | 6,479,256 | ||||||||||||||||||||||||||||||||||||
of which: United States: | 144,956 | — | — | 144,956 | 57,476 | — | — | 57,476 | 26,838 | — | — | 26,838 | ||||||||||||||||||||||||||||||||||||
4,276,037 | 1,694,808 | — | 5,970,845 | 4,125,855 | 1,765,063 | — | 5,890,918 | 6,206,887 | 1,611,949 | — | 7,818,836 | |||||||||||||||||||||||||||||||||||||
(1) | Fair values are determined based on year-end quoted market prices for listed securities and on management’s estimate for unlisted securities. | |
(2) | Gross unrealized losses under the EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 are higher than those under U.S. GAAP, due to the “Other than Temporary Adjustment” included in reconciliation to U.S.GAAP (see Notes 58.2 and 58.3.b). |
F-195
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AVAILABLE-FOR-SALE | Thousands of Euros | |||||||||||
Classification by maturity | 2006 | |||||||||||
Fair | Amortized | |||||||||||
Yield | Value | Value | ||||||||||
Debt securities: | ||||||||||||
Due in one year or less | 4.13 | % | 9,123,795 | 8,813,207 | ||||||||
Due after one year through five years | 6.54 | % | 9,599,023 | 9,288,321 | ||||||||
Due after five years through ten years. | 5.33 | % | 7,188,845 | 7,045,469 | ||||||||
Due after ten years | 7.10 | % | 7,437,561 | 7,330,279 | ||||||||
33,349,224 | 32,477,276 | |||||||||||
TRADING PORTFOLIO | |||||||||||||
(U.S. GAAP presentation) Thousands of Euros | 2006 | 2005 | 2004 | ||||||||||
Fair value | Fair value | Fair Value | |||||||||||
Trading Portfolio Debt Securities: | |||||||||||||
United States: | |||||||||||||
U.S. Treasury and other U.S. Government agencies | 320,498 | 237,079 | — | ||||||||||
States and Political subdivisions | 9,159 | 4,676 | 382,439 | ||||||||||
Mortgage-backed securities | 12,594 | — | — | ||||||||||
Corporate debt securities | 462,219 | 2,425,250 | — | ||||||||||
Other Securities | 3,925,028 | 862,072 | 5,463,250 | ||||||||||
Spanish Government | 4,730,026 | 6,559,938 | 5,715,922 | ||||||||||
Other Spanish Public authorities | 156,969 | 103,713 | 199,689 | ||||||||||
Securities of other foreign Governments | 12,082,006 | 29,373,007 | 35,245,080 | ||||||||||
Other Corporate debt securities | 1,691,454 | 14,569,752 | 33,091 | ||||||||||
Other Mortgage-backed securities | 557,402 | 78,179 | 18,268 | ||||||||||
Other debt securities | 57,289,857 | 37,227,515 | 28,444,848 | ||||||||||
Total debt securities | 81,237,212 | 91,441,181 | 75,502,587 | ||||||||||
Trading Equity Securities | |||||||||||||
Spanish Securities | 5,226,339 | 5,291,082 | 2,892,144 | ||||||||||
International Securities | 10,976,813 | 33,089,955 | 15,837,710 | ||||||||||
Of which United States | 459,966 | 190,235 | 255,213 | ||||||||||
Total equity securities | 16,203,152 | 38,381,037 | 18,729,854 | ||||||||||
TRADING PORTFOLIO | Thousands of Euros | |||||||||||
Classification by maturity | 2006 | |||||||||||
Book | Fair | |||||||||||
Yield | Value | Value | ||||||||||
Debt securities: | ||||||||||||
Due in one year or less | 6.18 | % | 31,691,880 | 31,691,880 | ||||||||
Due after one year through five years | 5.57 | % | 31,231,701 | 31,231,701 | ||||||||
Due after five years through ten years. | 4.75 | % | 11,652,795 | 11,652,795 | ||||||||
Due after ten years | 4.98 | % | 6,660,836 | 6,660,836 | ||||||||
81,237,212 | 81,237,212 | |||||||||||
F-196
Table of Contents
a. | The hedge relationship must be documented at inception. At that moment the objective and the hedge strategy must be assessed (all the documentation requirements are similar to those required by SFAS 133). | ||
b. | The hedge relationship should be highly effective during the entire estimated term to compensate the changes in the value or in the cash flows attributable to the identified risk, and in accordance with the hedging strategy documented at inception. | ||
c. | Forecasted transactions may be hedged only if it is highly probable that they will occur and when they are subject to any risk that could have an effect on cash flows that could affect the net income. | ||
d. | To qualify as highly effective, the hedge relationship should meet, both at the inception and in any moment, the following requirements: |
a) | Prospectively: it should be expected that the changes in the fair value or in the cash flows of the hedged financial instruments will almost be offset by the changes in the fair value or in the cash flows of the hedging instruments. | ||
b) | Retrospectively: The offsetting effects should be within 80% and 125% of the changes in the hedged item. | ||
c) | All the values should be reliably calculated. | ||
d) | Effectiveness should be tested quarterly and at least, each time that the financial statements are prepared. |
F-197
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F-198
Table of Contents
December 31, | December 31, | December 31, | ||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||
Notional | Notional | Notional | ||||||||||||||||||||||
Millions of Euros | Amount | Fair Value | Amount | Fair Value | Amount | Fair Value | ||||||||||||||||||
• Trading | 2,748,721.0 | (3,753.7 | ) | 1,830,939.6 | (1,598.9 | ) | 1,266,194.1 | (4,162.5 | ) | |||||||||||||||
• Hedging | 157,363.1 | (505.9 | ) | 226,627.4 | 1,815.4 | 295,000.2 | 929.6 | |||||||||||||||||
Fair Value Hedges | 131,214.4 | (474.3 | ) | 204,820.6 | 2,046.6 | 232,563.0 | 993.9 | |||||||||||||||||
Cash Flow Hedges | 9,472.8 | (34.4 | ) | 9,777.2 | 23.9 | 61,501.9 | 54.2 | |||||||||||||||||
Hedges of the foreign currency of a net investment in a foreign subsidiary | 16,675.9 | 2.8 | 12,029.7 | (255.1 | ) | 935.2 | (118.5 | ) | ||||||||||||||||
2,906,084.1 | (4,259.6 | ) | 2,057,567.0 | 216.5 | 1,561,194.3 | (3,232.9 | ) | |||||||||||||||||
December 31, | December 31, | December 31, | ||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||
Notional | Notional | Notional | ||||||||||||||||||||||
Millions of Euros | Amount | Fair Value | Amount | Fair Value | Amount | Fair Value | ||||||||||||||||||
• Trading | 2,820,182.0 | (3,525.9 | ) | 1,880,611.3 | (1,446.7 | ) | 1,462,950.7 | (3,529.4 | ) | |||||||||||||||
• Hedging | 85,902.1 | (733.7 | ) | 176,955.6 | 1,663.1 | 98,243.6 | 296.5 | |||||||||||||||||
Fair Value Hedges | 59,753.4 | (702.1 | ) | 155,148.8 | 1,894.4 | 35,806.4 | 355.3 | |||||||||||||||||
Cash Flow Hedges | 9,472.8 | (34.4 | ) | 9,777.2 | 23.9 | 61,501.9 | 59.6 | |||||||||||||||||
Hedges of the foreign currency of a net investment in a foreign subsidiary | 16,675.9 | 2.8 | 12,029.7 | (255.1 | ) | 935.2 | (118.5 | ) | ||||||||||||||||
2,906,084.1 | (4,259.6 | ) | 2,057,567.0 | 216.5 | 1,561,194.3 | (3,232.9 | ) | |||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||
Thousands of Euros | Amount | Rate | Amount | Rate | Amount | Rate | ||||||||||||||||||
Securities sold under agreements to repurchase: | ||||||||||||||||||||||||
At December 31 | 92,433,767 | 4.39 | % | 126,201,890 | 3.55 | % | 67,856,642 | 1.55 | % | |||||||||||||||
Average during year | 101,682,243 | 3.74 | % | 91,458,502 | 3.65 | % | 62,726,813 | 3.24 | % | |||||||||||||||
Maximum month-end balance | 129,816,503 | 129,563,533 | 69,575,864 | |||||||||||||||||||||
Other short-term borrowings: | ||||||||||||||||||||||||
At December 31 | 35,385,525 | 2.50 | % | 25,157,976 | 2.34 | % | 18,727,698 | 2.66 | % | |||||||||||||||
Average during year | 25,501,630 | 2.66 | % | 21,249,880 | 4.23 | % | 14,975,003 | 2.26 | % | |||||||||||||||
Maximum month-end balance | 35,385,525 | 26,688,044 | 18,752,237 | |||||||||||||||||||||
Total short-term borrowings at year-end | 127,819,292 | 3.87 | % | 151,359,866 | 3.35 | % | 86,584,340 | 1.79 | % | |||||||||||||||
F-199
Table of Contents
Maximum potential amount of future payments | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Guarantees disclosures | (Thousands of Euros) | |||||||||||
Contingent liabilities: | ||||||||||||
Assets earmarked for third-party obligations | 4 | 24 | 24 | |||||||||
Guarantees and other sureties | 53,175,928 | 44,432,649 | 28,533,973 | |||||||||
Guaranties promises | 8,258,151 | 100,898 | 84,857 | |||||||||
Performance guarantees | 29,857,748 | 25,428,337 | 21,360,156 | |||||||||
Financial standby letters of credit | 14,522,186 | 18,642,647 | 7,005,328 | |||||||||
Doubtful guarantees | 59,157 | 79,529 | 83,632 | |||||||||
Credit Default Swaps | 478,250 | 180,000 | – | |||||||||
Other | 436 | 1,238 | – | |||||||||
Other contingent exposures | 5,593,377 | 4,020,902 | 3,279,885 | |||||||||
Documentary Credits | 5,029,484 | 3,767,022 | 2,977,594 | |||||||||
Other contingent liabilities | 563,731 | 252,541 | 301,727 | |||||||||
Doubtful contingent liabilities | 162 | 1,339 | 564 | |||||||||
Total Contingent Liabilities | 58,769,309 | 48,453,575 | 31,813,882 | |||||||||
Commitments | ||||||||||||
Loan commitments drawable by third parties | 91,690,396 | 77,678,333 | 63,110,699 | |||||||||
Other commitments | 11,559,034 | 18,584,929 | 11,749,833 | |||||||||
Securities placement commitments | 3,463 | 16,399 | 9,358 | |||||||||
Securities subscribed and pending payment | 83,368 | 195,610 | 122,308 | |||||||||
Compensation room delivered bills | 11,472,203 | 18,372,920 | 11,618,167 | |||||||||
Total Commitments | 103,249,430 | 96,263,262 | 74,860,532 | |||||||||
F-200
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Thousands of Euros | December 31, | |||||||||||
2006 | 2005 | 2004 | ||||||||||
Cepsa | 4,766,317 | 3,337,438 | 2,564,603 | |||||||||
Attijariwafa | 579,295 | 319,369 | 243,715 | |||||||||
Unión Fenosa (1) | ¯ | ¯ | 1,298,289 | |||||||||
Sovereign | 2,267,762 | ¯ | ¯ |
(1) | During 2005 the Bank sold its stake in this company, see Note 3. Carrying values of these investments are presented in Note 13. |
Thousands of Euros, except per share data | 2004 | |||
U.S. GAAP reported net income | 3,940,866 | |||
Add: APB 25 Expense | 985 | |||
Subtract: FAS 123 Expense | (2,580 | ) | ||
Adjusted proforma net income | 3,939,271 | |||
Reported basic earnings per share | 0.80 | |||
Change in net income | 0.00 | |||
Adjusted proforma basic earnings per share | 0.80 | |||
Reported diluted earnings per share | 0.79 | |||
Change in net income | 0.00 | |||
Adjusted proforma diluted earnings per share | 0.79 |
F-201
Table of Contents
• | On July 26, 2004, the boards of Banco Santander and Abbey announced that they had reached an agreement on the terms of the acquisition by Banco Santander of Abbey, which was implemented by means of a scheme of arrangement under section 425 of the U.K. Companies Act. | ||
The acquisition terms stated that Abbey’s shareholders would receive 1 new Banco Santander share for every 1 Abbey share; additionally, Abbey would pay a special dividend of 25 pence plus 6 pence for a dividend differential, totaling 31 pence in cash per Abbey share to Abbey’s shareholders. | |||
A scheme of arrangement is a U.K. legal arrangement between a company and its shareholders. It requires approval of the shareholders both at a Court Meeting and at a separate Extraordinary General Meeting (EGM). Shareholders vote on whether to approve the Scheme at the Court Meeting and then on certain resolutions required to implement it at the EGM. Once approved by shareholders, the Scheme will only become effective if sanctioned by the Court. A scheme of arrangement is a normal process for dealing with acquisitions of public companies in the UK, particularly when they involve a large number of retail shareholders (approximately 1.8 million in Abbey’s case). | |||
A scheme of arrangement only becomes effective if (a) a majority in number of the shareholders present and voting at the Court Meeting (in person or by proxy) vote in favor and (b) such majority holds 75 per cent or more in value of the shares present and voting at the Court Meeting (in person or by proxy). In determining (a) all shareholders count equally regardless of how many shares they hold. In addition it is also necessary for the resolution at the EGM to be approved by shareholders holding not less than 75 per cent of the votes cast at the meeting (whether in person or by proxy). If the resolutions are passed by the requisite majorities and the Scheme is sanctioned by the Court and the acquisition completed, the Scheme will be binding on all shareholders, including those who voted against the Scheme. If the resolutions are not passed by the requisite majorities, then the Scheme and the acquisition will not go ahead. |
• | On September 15, 2004, the European Commission granted clearance, under the Merger Regulation, to the acquisition of the UK bank Abbey National Plc by Banco Santander Central Hispano S.A, as the acquisition raised no competition concerns since the two banks operate mostly in different countries. | ||
• | On October 15, 2004, the Board of Abbey announced that Abbey’s shareholders had voted to approve the Scheme to implement the Acquisition of Abbey by Banco Santander at the Court Meeting and the Abbey EGM held on October 14, 2004. | ||
• | On October 21, 2004, Banco Santander Extraordinary General Shareholders’ Meeting approved the capital increase needed to carry out the deal. | ||
• | On November 5, 2004 the Bank of Spain and the UK’s Financial Services Authority approved the acquisition. | ||
• | On November 8, 2004 the Court sanctioned the Scheme. | ||
• | On November 11, 2004 the Court confirmed the reduction of capital of Abbey associated with the Scheme. | ||
• | On November 12, 2004 the Scheme was implemented and Abbey became a subsidiary of Santander. Banco Santander issued 1,485,893,636 new shares of€0.5 par value, with additional paid-in capital of€7.94 each, increasing its stockholders equity by€12,540,942 thousand (see Notes 3 and 31). | ||
• | On December 14, 2004, Abbey paid a special dividend to all shareholders who were on its share register at 4.30pm on November 12, 2004. The special dividend was 25 pence per share plus 6 pence for dividend differential, totaling 31 pence in cash for each Abbey share held. |
F-202
Table of Contents
• | The acquisition price: The purchase was made through the exchange of shares. To accomplish it the Bank issued 1,485,893,636 new ordinary shares. Under previous Spanish GAAP the value of the each of the shares issued was€8.44 (the quotation on October 20, 2004), while under U.S. GAAP the value was€8.03 (the quotation in days around the announcement of the offer, mid July), the difference amounting€609,216 thousand. | ||
• | Differences arising from the EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 reconciliation to U.S. GAAP. |
Initial | Final | Estimated | ||||||||||||||
(Thousands of Euros) | calculation (*) | Differences | calculation (*) | useful life | ||||||||||||
Trademarks & trade names | 566,000 | (116,385 | ) | 449,615 | Indefinite | |||||||||||
Core deposits | 1,451,000 | (220,626 | ) | 1,230,374 | 10 years | |||||||||||
Credit card relationship | 33,000 | 1,256 | 34,256 | 5 years | ||||||||||||
Distribution channels | 25,692 | (25,692 | ) | — | ||||||||||||
Deferred tax liability | (717,500 | ) | 717,500 | — | ||||||||||||
Total Intangible assets: | 1,358,192 | 356,053 | 1,714,245 |
(*) | Amounts valued at acquisition exchange rate |
F-203
Table of Contents
Thousands of | ||||
Euros | ||||
Abbey Group Balance Sheet | 2004 | |||
Assets | ||||
Cash and due from banks | 2,825,359 | |||
Interest earning deposits in other banks | 5,791,725 | |||
Securities purchased under agreements to resell | 25,039,507 | |||
Investment securities | 36,764,492 | |||
Loans and leases, net of unearned income | 140,428,769 | |||
Less-Allowance for credit losses | (1,016,314 | ) | ||
Net Loans and leases | 139,412,455 | |||
Premises and equipment, net | 3,439,183 | |||
Investment in affiliated companies | 4,088,495 | |||
Other assets | 4,770,939 | |||
Total assets | 222,132,155 | |||
Liabilities | ||||
Deposits | ||||
Non interest deposits | 5,031,938 | |||
Interest bearing | ||||
Demand deposits | 52,446,326 | |||
Savings deposits | 11,475,781 | |||
Time deposits | 57,114,682 | |||
Total deposits | 126,068,727 | |||
Short-term debt | 55,387,384 | |||
Long-term debt | 27,353,346 | |||
Taxes Payable | 1,116,568 | |||
Accounts Payable | 120,867 | |||
Accrual Accounts | 3,592,055 | |||
Pension Allowance | 1,206,704 | |||
Other Provisions | 919,236 | |||
Others | 3,239,197 | |||
Other liabilities | 10,194,627 | |||
Total liabilities | 219,004,084 | |||
Minority interest | 791,334 | |||
Stockholders’ equity | ||||
Capital stock | 211,317 | |||
Other reserves | 2,125,420 | |||
Total stockholders’ equity | 2,336,737 | |||
Total liabilities and Stockholders’ equity | 222,132,155 | |||
F-204
Table of Contents
Thousands of Euros, except per share data | 2004 | |||
U.S. GAAP reported net income | 3,940,866 | |||
Adjustment to include Abbey net income | (96,447 | ) | ||
Adjusted net income | 3,844,419 | |||
Reported basic earnings per share | 0.80 | |||
Change in net income | (0.02 | ) | ||
Adjusted basic earnings per share | 0.78 | |||
Reported diluted earnings per share | 0.79 | |||
Change in net income | (0.01 | ) | ||
Adjusted diluted earnings per share | 0.78 | |||
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Thousands of | ||||
Euros | ||||
Drive Group Balance Sheet | 2006 | |||
Assets | ||||
Interest earning deposits in other banks | 129,736 | |||
Loans and leases, net of unearned income | 2,230,256 | |||
Less-Allowance for credit losses | (110,365 | ) | ||
Net Loans and leases | 2,119,891 | |||
Premises and equipment, net | 3,093 | |||
Other assets | 19,491 | |||
Total assets | 2,272,211 | |||
Liabilities | ||||
Deposits | ||||
Interest bearing | ||||
Time deposits | 272,188 | |||
Total deposits | 272,188 | |||
Long-term debt | 1,894,308 | |||
Taxes Payable | 3,043 | |||
Accounts Payable | 15,132 | |||
Accrual Accounts | 8,631 | |||
Others | 501 | |||
Other liabilities | 27,307 | |||
Total liabilities | 2,193,803 | |||
Minority interest | ||||
Stockholders’ equity | ||||
Capital stock | 63,456 | |||
Other reserves | 14,952 | |||
Total stockholders’ equity | 78,408 | |||
Total liabilities and Stockholders’ equity | 2,272,211 | |||
Thousands of Euros, except per share data | 2006 | 2005 | ||||||
U.S. GAAP reported net income from continuous operations | 6,395,747 | 6,173,425 | ||||||
Adjustment to include Drive net income | 110,137 | 74,816 | ||||||
Adjusted net income | 6,505,884 | 6,248,241 | ||||||
Reported basic earnings per share | 1.024 | 0.989 | ||||||
Change in net income | 0.016 | 0.011 | ||||||
Adjusted basic earnings per share | 1.040 | 1.000 | ||||||
Reported diluted earnings per share | 1.018 | 0.986 | ||||||
Change in net income | 0.022 | 0.014 | ||||||
Adjusted diluted earnings per share | 1.040 | 1.000 | ||||||
• | Business Unit Latin America (excluding wholesale clients outside Brazil) including, notably, the Banco Real franchise in Brazil; | ||
• | Banca Antonveneta in Italy; and | ||
• | Interbank and DMC Consumer Finance, a specialized consumer finance business in the Netherlands. |
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F-207
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Millions of Euros (a) | ||||||||||||||||||||||
% of Ownership Held by the | Amount of | |||||||||||||||||||||
Bank | % of Voting | Capital and | Profit (Loss) | Ownership | ||||||||||||||||||
Company | Location | Direct | Indirect | Rights (k) | Line of Business | Reserves | for the Year | Interest | ||||||||||||||
A N (123) plc | United Kingdom | — | 100.00% | 100.00% | HOLDING COMPANY | 1,524 | 15 | 1,260 | ||||||||||||||
Abbey Business Services (India) Private Limited (d) | India | — | 100.00% | 100.00% | HOLDING COMPANY | — | — | — | ||||||||||||||
Abbey Card Services Limited | United Kingdom | 100.00% | — | 100.00% | FINANCIAL SERVICES | 149 | (5 | ) | 149 | |||||||||||||
Abbey Covered Bonds (Holdings) Limited | United Kingdom | — | (b) | — | FINANCE | — | — | — | ||||||||||||||
Abbey Covered Bonds (LM) Limited | United Kingdom | — | (b) | — | FINANCE | — | — | — | ||||||||||||||
Abbey Covered Bonds LLP | United Kingdom | — | (b) | — | FINANCE | 3 | 40 | — | ||||||||||||||
Abbey National (America) Holdings Inc. | United States | — | 100.00% | 100.00% | HOLDING COMPANY | 34 | — | 34 | ||||||||||||||
Abbey National (America) Holdings Limited | United Kingdom | — | 100.00% | 100.00% | HOLDING COMPANY | 34 | — | 35 | ||||||||||||||
Abbey National (Gibraltar) Limited | Gibraltar | — | 100.00% | 100.00% | SECURITIES COMPANY | 7 | — | 7 | ||||||||||||||
Abbey National (Holdings) Limited | United Kingdom | — | 100.00% | 100.00% | HOLDING COMPANY | 28 | — | 24 | ||||||||||||||
Abbey National Alpha Investments (d) | United Kingdom | — | 100.00% | 100.00% | FINANCE | 67 | — | 67 | ||||||||||||||
Abbey National American Investments Limited | United Kingdom | — | 100.00% | 100.00% | FINANCE | 396 | 13 | 377 | ||||||||||||||
Abbey National Asset Managers Limited | United Kingdom | — | 100.00% | 100.00% | FUND AND PORTFOLIO MANAGER | 12 | 2 | 12 | ||||||||||||||
Abbey National Baker Street Investments | United Kingdom | — | 100.00% | 100.00% | FINANCE | 184 | — | 183 | ||||||||||||||
Abbey National Beta Investments Limited | United Kingdom | — | 100.00% | 100.00% | FINANCE | 153 | 5 | 126 | ||||||||||||||
Abbey National Business Asset Leasing Limited | United Kingdom | — | 100.00% | 100.00% | LEASING | — | — | — | ||||||||||||||
Abbey National Business Cashflow Finance Limited | United Kingdom | — | 100.00% | 100.00% | FACTORING | 9 | — | 6 | ||||||||||||||
Abbey National Business Equipment Leasing Limited | United Kingdom | — | 100.00% | 100.00% | LEASING | — | — | 8 | ||||||||||||||
Abbey National Business Leasing Limited | United Kingdom | — | 100.00% | 100.00% | ADVISORY SERVICES | — | — | — | ||||||||||||||
Abbey National Business Office Equipment Leasing Limited | United Kingdom | — | 100.00% | 100.00% | LEASING | 7 | — | — | ||||||||||||||
Abbey National Business Sales Aid Leasing Limited | United Kingdom | — | 100.00% | 100.00% | LEASING | 1 | — | — | ||||||||||||||
Abbey National Business Vendor Plan Leasing Limited | United Kingdom | — | 100.00% | 100.00% | LEASING | — | — | — | ||||||||||||||
Abbey National Capital LP I | United States | — | (b) | — | FINANCE | — | — | — | ||||||||||||||
Abbey National Charitable Trust Limited | United Kingdom | — | 100.00% | 100.00% | CHARITABLE SERVICES | — | — | — | ||||||||||||||
Abbey National Credit and Payment Services Limited | United Kingdom | — | 100.00% | 100.00% | SERVICES | — | — | — | ||||||||||||||
Abbey National Employment Services Inc. | United States | — | 100.00% | 100.00% | EMPLOYMENT SERVICES | — | — | — | ||||||||||||||
Abbey National Financial and Investment Services (Jersey) Limited | Jersey | — | 100.00% | 100.00% | HOLDING COMPANY | — | — | — | ||||||||||||||
Abbey National Financial Investments 3 B.V. | Netherlands | — | 100.00% | 100.00% | FINANCE | 3 | — | 1 | ||||||||||||||
Abbey National Financial Investments 4 B.V. | Netherlands | — | 100.00% | 100.00% | FINANCE | 372 | 17 | 372 | ||||||||||||||
Abbey National Financial Investments No.2 Limited | Jersey | — | 100.00% | 100.00% | FINANCE | — | — | — | ||||||||||||||
Abbey National Funded Unapproved Retirement Benefits Scheme Trustees Limited (d) | United Kingdom | — | 100.00% | 100.00% | ASSET MANAGEMENT COMPANY | — | — | — | ||||||||||||||
Abbey National Funding plc | United Kingdom | — | 100.00% | 100.00% | FINANCE | — | — | — | ||||||||||||||
Abbey National General Insurance Services Limited | United Kingdom | — | 100.00% | 100.00% | ADVISORY SERVICES | (56 | ) | — | — | |||||||||||||
Abbey National Gibraltar (1986) Limited | United Kingdom | — | 100.00% | 100.00% | FINANCE | 8 | — | 7 | ||||||||||||||
Abbey National Global Investments | United Kingdom | — | 100.00% | 100.00% | FINANCE | — | — | — | ||||||||||||||
Abbey National GP (Jersey) Limited | Jersey | — | 100.00% | 100.00% | FINANCE | — | — | — | ||||||||||||||
Abbey National Graphics Services Limited | United Kingdom | — | 100.00% | 100.00% | MARKETING | — | — | — | ||||||||||||||
Abbey National Group Pension Schemes Trustees Limited (d) | United Kingdom | — | 100.00% | 100.00% | ASSET MANAGEMENT COMPANY | — | — | — | ||||||||||||||
Abbey National Guarantee Company | United Kingdom | — | 100.00% | 100.00% | LEASING | 5 | — | 4 | ||||||||||||||
Abbey National Homes Limited | United Kingdom | — | 100.00% | 100.00% | FINANCE | (53 | ) | — | — | |||||||||||||
Abbey National Independent Investments Limited (d) | United Kingdom | — | 100.00% | 100.00% | FINANCE | — | — | — | ||||||||||||||
Abbey National International Limited | Jersey | — | 100.00% | 100.00% | BANKING | 267 | 33 | 222 | ||||||||||||||
Abbey National Investments | United Kingdom | — | 100.00% | 100.00% | FINANCE | 170 | 6 | 158 | ||||||||||||||
Abbey National Investments Holdings Limited | United Kingdom | — | 100.00% | 100.00% | HOLDING COMPANY | (6 | ) | (5 | ) | — | ||||||||||||
Abbey National Jersey International Limited | Jersey | — | 100.00% | 100.00% | HOLDING COMPANY | 311 | 3 | 276 | ||||||||||||||
Abbey National June Leasing (5) Limited (h) | United Kingdom | — | 100.00% | 100.00% | LEASING | 1 | — | — | ||||||||||||||
Abbey National March Leasing (4) Limited | United Kingdom | — | 100.00% | 100.00% | LEASING | (25 | ) | (2 | ) | — | ||||||||||||
Abbey National Mortgage Finance plc | United Kingdom | — | 100.00% | 100.00% | MORTGAGE LOAN COMPANY | — | — | — | ||||||||||||||
Abbey National Nominees Limited | United Kingdom | — | 100.00% | 100.00% | SECURITIES COMPANY | — | — | — | ||||||||||||||
Abbey National North America Corporation | United States | — | 100.00% | 100.00% | FINANCE | 2 | — | — | ||||||||||||||
Abbey National North America Holdings Limited | United Kingdom | — | 100.00% | 100.00% | HOLDING COMPANY | — | — | — | ||||||||||||||
Abbey National North America LLC | United States | — | 100.00% | 100.00% | FINANCE | — | — | — | ||||||||||||||
Abbey National Offshore Holdings Limited | Jersey | — | 100.00% | 100.00% | HOLDING COMPANY | 280 | — | 288 | ||||||||||||||
Abbey National PEP & ISA Managers Limited | United Kingdom | — | 100.00% | 100.00% | FUND AND PORTFOLIO MANAGER | 79 | 14 | 55 | ||||||||||||||
Abbey National Personal Finance Limited | United Kingdom | — | 100.00% | 100.00% | ADVISORY SERVICES | — | — | — | ||||||||||||||
Abbey National Personal Pensions Trustee Limited | United Kingdom | — | 100.00% | 100.00% | ASSET MANAGEMENT COMPANY | — | — | — | ||||||||||||||
Abbey National plc | United Kingdom | 100.00% | — | 100.00% | BANKING | 4,508 | (190 | ) | 12,614 | |||||||||||||
Abbey National PLP (UK) Limited | United Kingdom | — | 100.00% | 100.00% | FINANCE | — | — | — | ||||||||||||||
Abbey National Properties (2) Limited | United Kingdom | — | 100.00% | 100.00% | LEASING | (3 | ) | — | — | |||||||||||||
Abbey National Property Developments Limited | United Kingdom | — | 100.00% | 100.00% | PROPERTY | — | — | — | ||||||||||||||
Abbey National Property Investments | United Kingdom | — | 100.00% | 100.00% | FINANCE | 399 | 29 | 206 | ||||||||||||||
Abbey National Property Services Limited | United Kingdom | — | 100.00% | 100.00% | PROPERTY | (19 | ) | — | — | |||||||||||||
Abbey National Secretariat Services (Jersey) Limited | Jersey | — | 100.00% | 100.00% | SERVICES | — | — | — | ||||||||||||||
Abbey National Secretariat Services Limited | United Kingdom | — | 100.00% | 100.00% | FUND AND PORTFOLIO MANAGER | — | — | — | ||||||||||||||
Abbey National Securities Inc. | United States | — | 100.00% | 100.00% | SECURITIES COMPANY | 36 | 2 | 34 | ||||||||||||||
Abbey National September Leasing (3) Limited (f) | United Kingdom | — | 100.00% | 100.00% | LEASING | (34 | ) | 12 | — | |||||||||||||
Abbey National September Leasing (7) Limited (h) | United Kingdom | — | 100.00% | 100.00% | LEASING | — | — | — | ||||||||||||||
Abbey National Shelf Co. (4) Limited | United Kingdom | — | 100.00% | 100.00% | INACTIVE | — | — | — | ||||||||||||||
Abbey National Sterling Capital plc | United Kingdom | — | 100.00% | 100.00% | FINANCE | 4 | — | — |
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Millions of Euros (a) | ||||||||||||||||||||||
% of Ownership Held by the | Amount of | |||||||||||||||||||||
Bank | % of Voting | Capital and | Profit (Loss) | Ownership | ||||||||||||||||||
Company | Location | Direct | Indirect | Rights (k) | Line of Business | Reserves | for the Year | Interest | ||||||||||||||
Abbey National Treasury International (IOM) Limited | Isle of Man | — | 100.00% | 100.00% | BANKING | 11 | 1 | 9 | ||||||||||||||
Abbey National Treasury Investments | United Kingdom | — | 100.00% | 100.00% | FINANCE | 326 | 35 | 274 | ||||||||||||||
Abbey National Treasury Services (Australia) Holdings Limited | United Kingdom | — | 100.00% | 100.00% | HOLDING COMPANY | — | — | — | ||||||||||||||
Abbey National Treasury Services (Trains Holdings) Limited | United Kingdom | — | 100.00% | 100.00% | HOLDING COMPANY | 222 | (7 | ) | 223 | |||||||||||||
Abbey National Treasury Services (Transport Holdings) Limited | United Kingdom | — | 100.00% | 100.00% | HOLDING COMPANY | — | — | 12 | ||||||||||||||
Abbey National Treasury Services Investments Limited | United Kingdom | — | 100.00% | 100.00% | FINANCE | 1,143 | 40 | 1,117 | ||||||||||||||
Abbey National Treasury Services Overseas Holdings | United Kingdom | — | 100.00% | 100.00% | HOLDING COMPANY | 1,461 | 160 | 1,516 | ||||||||||||||
Abbey National Treasury Services plc | United Kingdom | — | 100.00% | 100.00% | BANKING | 3,794 | 95 | 4,243 | ||||||||||||||
Abbey National UK Investments | United Kingdom | — | 100.00% | 100.00% | FINANCE | 1,095 | 38 | 903 | ||||||||||||||
Abbey National Unit Trust Managers Limited | United Kingdom | — | 100.00% | 100.00% | FUND AND PORTFOLIO MANAGER | 51 | 22 | 22 | ||||||||||||||
Abbey National Wrap Managers Limited | United Kingdom | — | 100.00% | 100.00% | FUND AND PORTFOLIO MANAGER | 9 | (5 | ) | 4 | |||||||||||||
Abbey Stockbrokers (Nominees) Limited | United Kingdom | — | 100.00% | 100.00% | SECURITIES COMPANY | — | — | — | ||||||||||||||
Abbey Stockbrokers Limited | United Kingdom | — | 100.00% | 100.00% | SECURITIES COMPANY | 8 | — | 8 | ||||||||||||||
Administración de Bancos Latinoamericanos Santander, S.L. | Spain | 24.11% | 75.89% | 100.00% | HOLDING COMPANY | 291 | 38 | 401 | ||||||||||||||
Administradora de Fondos de Pensiones y Cesantías Santander, S.A. | Colombia | — | 99.99% | 100.00% | PENSION FUND MANAGER | 30 | 11 | 92 | ||||||||||||||
AEH Purchasing, Ltd. | Ireland | — | (b) | — | FINANCE | — | — | — | ||||||||||||||
Afinidad AFAP, S.A. | Uruguay | — | 100.00% | 100.00% | FUND MANAGEMENT COMPANY | 2 | 2 | 11 | ||||||||||||||
Afisa, S.A. | Chile | — | 99.98% | 99.99% | FUND MANAGEMENT COMPANY | 7 | 1 | 3 | ||||||||||||||
Afore Santander, S.A. de C.V. | Mexico | — | 74.93% | 100.00% | PENSION FUND MANAGER | 44 | 21 | 2 | ||||||||||||||
AFP Bansander, S.A. | Chile | — | 99.50% | 100.00% | PENSION FUND MANAGER | 90 | 27 | 78 | ||||||||||||||
Agrícola Tabaibal, S.A. | Spain | — | 65.57% | 100.00% | AGRICULTURE AND LIVESTOCK | — | (1 | ) | — | |||||||||||||
Agropecuaria Tapirapé, S.A. | Brazil | — | 97.06% | 99.07% | AGRICULTURE AND LIVESTOCK | 2 | — | — | ||||||||||||||
AKB Marketing Services Sp. Z.o.o. | Poland | — | 100.00% | 100.00% | MARKETING | 1 | 3 | — | ||||||||||||||
Alcaidesa Holding, S.A. (consolidated) | Spain | — | 44.17% | 50.01% | PROPERTY | 21 | 25 | 28 | ||||||||||||||
Alce Tenedora, S.L. | Spain | 99.99% | 0.01% | 100.00% | HOLDING COMPANY | — | — | — | ||||||||||||||
Aljarafe Golf, S.A. | Spain | — | 70.37% | 89.41% | PROPERTY | 12 | 2 | — | ||||||||||||||
Aljardi SGPS, Lda. | Portugal | — | 100.00% | 100.00% | HOLDING COMPANY | 1,160 | 500 | 1,148 | ||||||||||||||
Almacenadora Serfin, S.A. De C.V. | Mexico | — | 73.90% | 98.64% | WAREHOUSING | 1 | — | 2 | ||||||||||||||
Almacenadora Somex, S.A. De C.V. | Mexico | — | 72.84% | 97.24% | WAREHOUSING | 7 | 1 | 1 | ||||||||||||||
Altair Finance, plc | Ireland | — | (b) | — | SECURITIZATION | 1 | — | — | ||||||||||||||
Altamira Funding LLC | United States | — | (b) | — | FINANCE | — | — | — | ||||||||||||||
Altec, S.A. | Chile | — | 100.00% | 100.00% | IT SERVICES | 6 | — | 21 | ||||||||||||||
América Latina Tecnología de México, S.A. De C.V. | Mexico | 100.00% | — | 100.00% | IT SERVICES | 78 | (2 | ) | 67 | |||||||||||||
AN Structured Issues Limited | Jersey | — | 100.00% | 100.00% | FINANCE | — | — | — | ||||||||||||||
Andaluza de Inversiones, S.A. | Spain | — | 100.00% | 100.00% | HOLDING COMPANY | 29 | 1 | 27 | ||||||||||||||
Anderson Instalación Fotovoltáica, S.L. | Spain | — | 100.00% | 100.00% | ELECTRICITY | — | — | — | ||||||||||||||
ANDSH Limited | United Kingdom | — | 100.00% | 100.00% | FINANCE | 3 | — | 3 | ||||||||||||||
ANFP (US) LLC | United States | — | 100.00% | 100.00% | FINANCE | — | — | — | ||||||||||||||
ANIFA Limited | United Kingdom | — | 100.00% | 100.00% | FINANCE | — | — | — | ||||||||||||||
ANITCO Limited | United Kingdom | — | 100.00% | 100.00% | HOLDING COMPANY | — | — | — | ||||||||||||||
Aparcamientos y Construcciones, S.A. | Spain | — | 88.42% | 100.00% | PROPERTY | 2 | — | 2 | ||||||||||||||
Arend Instalación Fotovoltáica, S.L. | Spain | — | 100.00% | 100.00% | ELECTRICITY | — | — | — | ||||||||||||||
Argenline, S.A. | Uruguay | — | 100.00% | 100.00% | FINANCE | — | — | — | ||||||||||||||
Asesora de Titulización, S.A., S.G.F.T. | Spain | 70.00% | 29.55% | 100.00% | SECURITIZATION | 2 | — | 2 | ||||||||||||||
Aurum, S.A. | Chile | 1.00% | 99.00% | 100.00% | HOLDING COMPANY | (9 | ) | — | 63 | |||||||||||||
Ausant Holding GMBH | Austria | — | 99.92% | 100.00% | HOLDING COMPANY | 11 | — | 12 | ||||||||||||||
Ausant Merchant Participations GMBH | Austria | — | 99.93% | 100.00% | HOLDING COMPANY | 345 | 8 | — | ||||||||||||||
Aviación Regional Cántabra, A.I.E. | Spain | 73.58% | — | 74.00% | AVIATION | 30 | (3 | ) | 22 | |||||||||||||
B.R.S. Investment S.A. | Argentina | — | 100.00% | 100.00% | HOLDING COMPANY | 20 | 2 | 237 | ||||||||||||||
B2C Escaparate, S.L. | Spain | — | 88.42% | 100.00% | TECHNOLOGY | (1 | ) | — | 13 | |||||||||||||
Baker Street Risk and Insurance (Guernsey) Limited (e) | Guernsey | — | 100.00% | 100.00% | INSURANCE BROKER | 11 | — | 3 | ||||||||||||||
Banco Alicantino de Comercio, S.A. | Spain | — | 88.42% | 100.00% | BANKING | 9 | — | 8 | ||||||||||||||
Banco Banif, S.A. | Spain | 100.00% | — | 100.00% | BANKING | 176 | 39 | 84 | ||||||||||||||
Banco Caracas, N.V. | Dutch Antilles | — | 100.00% | 100.00% | BANKING | 6 | (4 | ) | 3 | |||||||||||||
Banco de Albacete, S.A. | Spain | 100.00% | — | 100.00% | BANKING | 11 | — | 9 | ||||||||||||||
Banco de Asunción, S.A. | Paraguay | — | 99.33% | 99.33% | BANKING | 2 | (1 | ) | 35 | |||||||||||||
Banco de Venezuela, S.A., Banco Universal (j) | Venezuela | 96.78% | 1.64% | 98.42% | BANKING | 417 | 160 | 124 | ||||||||||||||
Banco Español de Cr��dito, S.A. | Spain | 87.33% | 1.09% | 88.43% | BANKING | 2,970 | 1,487 | 1,261 | ||||||||||||||
Banco Madesant — Sociedade Unipessoal, S.A. | Portugal | — | 100.00% | 100.00% | BANKING | 1,325 | 62 | 1,159 | ||||||||||||||
Banco Río de la Plata S.A. | Argentina | 8.23% | 91.07% | 99.30% | BANKING | 265 | 57 | 1,664 | ||||||||||||||
Banco Santander (Panamá), S.A. | Panama | — | 100.00% | 100.00% | BANKING | 8 | 1 | 62 | ||||||||||||||
Banco Santander (Suisse), S.A. | Switzerland | — | 99.96% | 99.96% | BANKING | 124 | 28 | 15 | ||||||||||||||
Banco Santander Bahamas International, Ltd. | Bahamas | — | 100.00% | 100.00% | BANKING | 1,139 | (11 | ) | 785 | |||||||||||||
Banco Santander Banespa, S.A. | Brazil | — | 97.97% | 97.97% | BANKING | 2,626 | 227 | 3,127 | ||||||||||||||
Banco Santander Chile | Chile | — | 76.73% | 76.91% | BANKING | 1,370 | 408 | 1,207 | ||||||||||||||
Banco Santander Colombia, S.A. | Colombia | — | 97.64% | 97.64% | BANKING | 133 | 1 | 443 | ||||||||||||||
Banco Santander de Negocios Portugal, S.A. | Portugal | — | 99.85% | 100.00% | BANKING | 72 | 35 | 28 | ||||||||||||||
Banco Santander International | United States | 95.90% | 4.10% | 100.00% | BANKING | 147 | 21 | 74 | ||||||||||||||
Banco Santander Puerto Rico | Puerto Rico | — | 90.77% | 100.00% | BANKING | 430 | 28 | 342 | ||||||||||||||
Banco Santander Totta, S.A. | Portugal | — | 99.71% | 99.86% | BANKING | 1,453 | 336 | 2,342 | ||||||||||||||
Banco Santander, S.A. | Uruguay | 90.93% | 9.07% | 100.00% | BANKING | 31 | 11 | 50 | ||||||||||||||
Banco Santander, S.A., Institución de Banca Múltiple, Grupo Financiero Santander | Mexico | — | 74.91% | 99.99% | BANKING | 2,883 | 646 | 1,265 | ||||||||||||||
Banco Totta de Angola, SARL | Angola | — | 99.70% | 99.98% | BANKING | 44 | 12 | 19 | ||||||||||||||
Banespa, S.A. Serviços Técnicos, Administrativos e de Corretagem de Seguros | Brazil | — | 97.97% | 100.00% | INSURANCE BROKER | 16 | 8 | 34 | ||||||||||||||
Banespa, S.A. Corretora de Cambio e Titulos | Brazil | — | 97.97% | 100.00% | SECURITIES COMPANY | 16 | 12 | 9 | ||||||||||||||
Banesto Banca Privada Gestión, S.A. S.G.I.I.C. | Spain | — | 88.42% | 100.00% | FUND MANAGEMENT COMPANY | 2 | — | 2 |
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Millions of Euros (a) | ||||||||||||||||||||||
% of Ownership Held by the | Amount of | |||||||||||||||||||||
Bank | % of Voting | Capital and | Profit (Loss) | Ownership | ||||||||||||||||||
Company | Location | Direct | Indirect | Rights (k) | Line of Business | Reserves | for the Year | Interest | ||||||||||||||
Banesto Banco de Emisiones, S.A. | Spain | — | 88.42% | 100.00% | BANKING | 99 | 1 | 86 | ||||||||||||||
Banesto Bolsa, S.A., Sdad. Valores y Bolsa | Spain | — | 88.42% | 100.00% | SECURITIES COMPANY | 86 | 11 | 31 | ||||||||||||||
Banesto Delaware, Ltd. | United States | — | 88.42% | 100.00% | FINANCE | — | — | — | ||||||||||||||
Banesto e-Business, S.A. | Spain | — | 88.42% | 100.00% | SECURITIES INVESTMENT | — | — | — | ||||||||||||||
Banesto Factoring, S.A. Establecimiento Financiero de Crédito | Spain | — | 88.42% | 100.00% | FACTORING | 88 | (4 | ) | 81 | |||||||||||||
Banesto Finance, Ltd. | Cayman Islands | — | 88.42% | 100.00% | FINANCE | — | — | — | ||||||||||||||
Banesto Financial Products, Plc | Ireland | — | 88.41% | 99.99% | FINANCE | — | — | — | ||||||||||||||
Banesto Issuances, Ltd. | Cayman Islands | — | 88.42% | 100.00% | FINANCE | 1 | — | — | ||||||||||||||
Banesto Renting, S.A. | Spain | — | 88.42% | 100.00% | FINANCE | 8 | 2 | 2 | ||||||||||||||
Banesto Securities, Inc. | United States | — | 88.42% | 100.00% | FINANCE | 2 | — | 2 | ||||||||||||||
Banesto Servicios y Tecnología Aplicada, S.A. | Spain | — | 88.42% | 100.00% | SERVICES | 4 | — | 4 | ||||||||||||||
Banesto, S.A. | Spain | — | 88.42% | 100.00% | FINANCE | — | — | — | ||||||||||||||
Banif Gestión, S.A., S.G.I.I.C. | Spain | — | 97.69% | 100.00% | FUND MANAGEMENT COMPANY | 8 | 1 | 2 | ||||||||||||||
Banif Inmobiliario, S.A. | Spain | — | 100.00% | 100.00% | PROPERTY | — | — | — | ||||||||||||||
Bansa Santander, S.A. | Chile | — | 99.99% | 100.00% | PROPERTY | 5 | (3 | ) | 24 | |||||||||||||
Bansalease, S.A., E.F.C. | Spain | 100.00% | — | 100.00% | LEASING | 82 | 8 | 57 | ||||||||||||||
Bansamex, S.A. | Spain | 50.00% | — | 50.00% | CARDS | 2 | — | 1 | ||||||||||||||
Bansander, S.A. | Spain | 100.00% | — | 100.00% | SECURITIES INVESTMENT | — | — | — | ||||||||||||||
Beta Cero, S.A. | Spain | — | 77.81% | 88.00% | FINANCE | — | — | — | ||||||||||||||
Bitalbond, B.V. (l) | Netherlands | 100.00% | — | 100.00% | HOLDING COMPANY | — | — | — | ||||||||||||||
Brasil Foreign Diversified Payment Rights Finance Company | Brazil | — | (b) | — | FINANCE | — | — | — | ||||||||||||||
Brettwood Limited | Jersey | — | 100.00% | 100.00% | SERVICES | — | — | — | ||||||||||||||
Brorsen Instalación Fotovoltáica, S.L. | Spain | — | 100.00% | 100.00% | ELECTRICITY | — | — | — | ||||||||||||||
BST International Bank, Inc. | Puerto Rico | — | 99.71% | 100.00% | BANKING | 268 | 9 | 4 | ||||||||||||||
Buhal Leasing, Ltd. | United Kingdom | 100.00% | — | 100.00% | LEASING | 2 | — | 2 | ||||||||||||||
CA Premier Banking Limited | United Kingdom | — | 100.00% | 100.00% | BANKING | 6 | — | 6 | ||||||||||||||
Cabel, S.A. (in liquidation) | Belgium | 86.99% | 9.99% | 96.99% | HOLDING COMPANY | — | — | — | ||||||||||||||
Caetra Iberia, S.L. | Spain | — | 100.00% | 100.00% | HOLDING COMPANY | 3 | — | 3 | ||||||||||||||
Cambios Sol, S.A. | Spain | — | 88.42% | 100.00% | CURRENCY TRADING | — | — | 5 | ||||||||||||||
Canfy, S.L. | Spain | 89.00% | 11.00% | 100.00% | HOLDING COMPANY | 87 | — | 80 | ||||||||||||||
Cántabra de Inversiones, S.A. | Spain | 100.00% | — | 100.00% | HOLDING COMPANY | 260 | (56 | ) | 218 | |||||||||||||
Cántabro Catalana de Inversiones, S.A. | Spain | 100.00% | — | 100.00% | HOLDING COMPANY | 168 | 24 | 140 | ||||||||||||||
Capital Riesgo Global, SCR de Régimen Simplificado, S.A. | Spain | 87.09% | 12.91% | 100.00% | VENTURE CAPITAL COMPANY | 995 | 94 | 947 | ||||||||||||||
Capital Variable SICAV, S.A. | Spain | — | 95.53% | 97.79% | OPEN-END INVESTMENT COMPANY | 7 | — | 7 | ||||||||||||||
Carfax Insurance Limited | Guernsey | — | 100.00% | 100.00% | INSURANCE BROKER | 86 | 5 | 30 | ||||||||||||||
Carpe Diem Salud, S.L. | Spain | 100.00% | — | 100.00% | SECURITIES INVESTMENT | — | — | — | ||||||||||||||
Cartera Mobiliaria, S.A., SICAV | Spain | — | 72.49% | 88.51% | SECURITIES INVESTMENT | 575 | 23 | 192 | ||||||||||||||
Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander | Mexico | — | 74.89% | 99.96% | SECURITIES COMPANY | 44 | 13 | 32 | ||||||||||||||
Casiopea Instalación Fotovoltáica, S.L. | Spain | — | 100.00% | 100.00% | ELECTRICITY | — | — | — | ||||||||||||||
Cater Allen Holdings Limited | United Kingdom | — | 100.00% | 100.00% | HOLDING COMPANY | 143 | 76 | 128 | ||||||||||||||
Cater Allen International Limited | United Kingdom | — | 100.00% | 100.00% | SECURITIES COMPANY | 400 | 43 | 176 | ||||||||||||||
Cater Allen Limited | United Kingdom | — | 100.00% | 100.00% | BANKING | 239 | 23 | 170 | ||||||||||||||
Cater Allen Lloyd’s Holdings Limited | United Kingdom | — | 100.00% | 100.00% | HOLDING COMPANY | (14 | ) | — | — | |||||||||||||
Cater Allen Nominees (Jersey) Limited | Jersey | — | 100.00% | 100.00% | HOLDING COMPANY | — | — | — | ||||||||||||||
Cater Allen Pensions Limited | United Kingdom | — | 100.00% | 100.00% | PENSION FUND MANAGER | — | — | — | ||||||||||||||
Cater Allen Registrars Limited | Jersey | — | 100.00% | 100.00% | HOLDING COMPANY | — | — | — | ||||||||||||||
Cater Allen Syndicate Management Limited | United Kingdom | — | 100.00% | 100.00% | ADVISORY SERVICES | 3 | — | — | ||||||||||||||
Cater Allen Trust Company (Jersey) Limited | Jersey | — | 100.00% | 100.00% | ASSET MANAGEMENT COMPANY | — | — | — | ||||||||||||||
Cater Tyndall Limited | United Kingdom | — | 100.00% | 100.00% | HOLDING COMPANY | 18 | 16 | 135 | ||||||||||||||
Catmoll, S.L. | Spain | 100.00% | — | 100.00% | CONCESSION HOLDER | 8 | 1 | 6 | ||||||||||||||
Catu Instalación Fotovoltáica, S.L. | Spain | — | 100.00% | 100.00% | ELECTRICITY | — | — | — | ||||||||||||||
Caveiro Instalación Fotovoltáica, S.L. | Spain | — | 100.00% | 100.00% | ELECTRICITY | — | — | — | ||||||||||||||
Central Inmobiliaria de Santiago, S.A. de C.V. | Mexico | 100.00% | — | 100.00% | PROPERTY MANAGEMENT | 39 | (2 | ) | 43 | |||||||||||||
Centro de Equipamientos Zona Oeste, S.A. | Spain | 93.62% | 6.38% | 100.00% | PROPERTY | 16 | (37 | ) | 43 | |||||||||||||
Certidesa, S.L. | Spain | — | 100.00% | 100.00% | LEASE OF AIRCRAFT | 10 | (3 | ) | 10 | |||||||||||||
Chiron Instalación Fotovoltáica, S.L. | Spain | — | 100.00% | 100.00% | ELECTRICITY | — | — | — | ||||||||||||||
Ciudad Financiera, S.A. | Spain | 99.94% | 0.06% | 100.00% | SERVICES | 1 | — | 1 | ||||||||||||||
Clínica Sear, S.A. | Spain | — | 44.67% | 50.58% | HEALTH | 6 | — | 1 | ||||||||||||||
Club Zaudin Golf, S.A. | Spain | — | 66.91% | 95.09% | SERVICES | 15 | — | 12 | ||||||||||||||
Consultoría Tributaria, Financiera y Contable, S.A. | Spain | 100.00% | — | 100.00% | ADVISORY SERVICES | — | — | — | ||||||||||||||
Corpoban, S.A. | Spain | — | 88.42% | 100.00% | SECURITIES INVESTMENT | 70 | 1 | 60 | ||||||||||||||
Corporación Industrial y Financiera de Banesto, S.A. | Spain | — | 88.32% | 99.89% | SECURITIES INVESTMENT | 396 | 5 | 354 | ||||||||||||||
Costa Canaria de Veneguera, S.A. | Spain | — | 65.57% | 74.20% | PROPERTY | 15 | (1 | ) | 10 | |||||||||||||
Covista Integrated Business Infrastructure Limited | United Kingdom | — | 100.00% | 100.00% | PROPERTY | — | — | — | ||||||||||||||
Credisol, S.A. | Uruguay | — | 100.00% | 100.00% | CARDS | — | — | 7 | ||||||||||||||
Crefisa, Inc. | Puerto Rico | 100.00% | — | 100.00% | FINANCE | 31 | (2 | ) | 19 | |||||||||||||
Crinaria, S.A. | Spain | — | 88.37% | 100.00% | HOSPITALITY | 7 | — | 7 | ||||||||||||||
C-Sprint Limited | Jersey | — | (b) | — | FINANCE | — | — | — | ||||||||||||||
Darep Limited | Ireland | 100.00% | — | 100.00% | REINSURANCE | 4 | — | 4 | ||||||||||||||
DCAR GP LLC | United States | — | 90.00% | 100.00% | INACTIVE | — | — | — | ||||||||||||||
DCAR Receivables LP | United States | — | 90.00% | 100.00% | INACTIVE | — | — | — | ||||||||||||||
Debt Management and Recovery Services Limited | United Kingdom | — | 100.00% | 100.00% | COLLECTION AND PAYMENT SERVICES | — | — | — | ||||||||||||||
Depósitos Portuarios, S.A. | Spain | — | 88.33% | 100.00% | SERVICES | — | — | — | ||||||||||||||
Deposoltenegolf, S.A. | Spain | — | 88.42% | 100.00% | SPORTS OPERATIONS | 23 | — | 8 | ||||||||||||||
Desarrollo Informático, S.A. | Spain | — | 88.42% | 100.00% | IT | 6 | (4 | ) | — | |||||||||||||
DF 123 Limited | United Kingdom | — | 100.00% | 100.00% | LEASING | — | — | — | ||||||||||||||
Digital Procurement Holdings, N.V. | Netherlands | — | 83.39% | 100.00% | HOLDING COMPANY | 5 | — | 1 | ||||||||||||||
Diners Club Spain, S.A. | Spain | 90.00% | — | 90.00% | CARDS | 9 | 3 | 7 | ||||||||||||||
Diseño e Integración de Soluciones, S.A. | Spain | — | 88.42% | 100.00% | IT | 2 | — | 1 | ||||||||||||||
Drive ABS GP LLC | United States | — | 90.00% | 100.00% | INACTIVE | — | — | — |
F-210
Table of Contents
Millions of Euros (a) | ||||||||||||||||||||||
% of Ownership Held by the | Amount of | |||||||||||||||||||||
Bank | % of Voting | Capital and | Profit (Loss) | Ownership | ||||||||||||||||||
Company | Location | Direct | Indirect | Rights (k) | Line of Business | Reserves | for the Year | Interest | ||||||||||||||
Drive ABS LP | United States | — | 90.00% | 100.00% | INACTIVE | 36 | — | 8 | ||||||||||||||
Drive Auto Receivables LLC | United States | — | 90.00% | 100.00% | AUXILIARY | — | — | — | ||||||||||||||
Drive Auto Receivables Trust 2003-1 | United States | — | (b) | — | SECURITIZATION | — | — | — | ||||||||||||||
Drive Auto Receivables Trust 2003-2 | United States | — | (b) | — | SECURITIZATION | — | — | — | ||||||||||||||
Drive Auto Receivables Trust 2004-1 | United States | — | (b) | — | SECURITIZATION | — | — | — | ||||||||||||||
Drive Auto Receivables Trust 2005-1 | United States | — | (b) | — | SECURITIZATION | — | — | — | ||||||||||||||
Drive Auto Receivables Trust 2005-2 | United States | — | (b) | — | SECURITIZATION | — | — | — | ||||||||||||||
Drive Auto Receivables Trust 2005-3 | United States | — | (b) | — | SECURITIZATION | — | — | — | ||||||||||||||
Drive Auto Receivables Trust 2006-1 | United States | — | (b) | — | SECURITIZATION | — | — | — | ||||||||||||||
Drive Auto Receivables Trust 2006-2 | United States | — | (b) | — | SECURITIZATION | — | — | — | ||||||||||||||
Drive BOS GP LLC | United States | — | 90.00% | 100.00% | INACTIVE | — | — | — | ||||||||||||||
Drive BOS LP LLC | United States | — | 90.00% | 100.00% | INACTIVE | 35 | (8 | ) | 2 | |||||||||||||
Drive Consumer USA, Inc. | United States | 90.00% | — | 90.00% | FINANCE | 37 | 114 | 492 | ||||||||||||||
Drive Health & Welfare Benefit Plan | United States | 90.00% | — | 90.00% | SERVICES | — | — | — | ||||||||||||||
Drive One LLC | United States | — | 90.00% | 100.00% | INACTIVE | — | — | — | ||||||||||||||
Drive Receivables Corp. 10 | United States | — | 90.00% | 100.00% | SECURITIZATION | — | — | — | ||||||||||||||
Drive Receivables Corp. 11 | United States | — | 90.00% | 100.00% | SECURITIZATION | — | — | — | ||||||||||||||
Drive Receivables Corp. 12 | United States | — | 90.00% | 100.00% | SECURITIZATION | — | — | — | ||||||||||||||
Drive Receivables Corp. 6 | United States | — | 90.00% | 100.00% | SECURITIZATION | — | — | — | ||||||||||||||
Drive Receivables Corp. 7 | United States | — | 90.00% | 100.00% | SECURITIZATION | — | — | — | ||||||||||||||
Drive Receivables Corp. 8 | United States | — | 90.00% | 100.00% | SECURITIZATION | — | — | — | ||||||||||||||
Drive Receivables Corp. 9 | United States | — | 90.00% | 100.00% | SECURITIZATION | — | — | — | ||||||||||||||
Drive Residual Holdings GP LLC | United States | — | 90.00% | 100.00% | HOLDING COMPANY | — | — | — | ||||||||||||||
Drive Residual Holdings LP | United States | — | 90.00% | 100.00% | AUXILIARY | — | — | — | ||||||||||||||
Drive Servicing LLC | United States | — | 90.00% | 100.00% | INACTIVE | (11 | ) | — | — | |||||||||||||
Drive Trademark Holdings LP | United States | — | 90.00% | 100.00% | AUXILIARY | — | — | — | ||||||||||||||
Drive VFC GP LLC | United States | — | 90.00% | 100.00% | INACTIVE | 25 | 4 | — | ||||||||||||||
Drive VFC LP | United States | — | 90.00% | 100.00% | INACTIVE | — | — | — | ||||||||||||||
Drive Warehouse GP LLC | United States | — | 90.00% | 100.00% | HOLDING COMPANY | — | — | — | ||||||||||||||
Drive Warehouse LP | United States | — | 90.00% | 100.00% | AUXILIARY | — | — | — | ||||||||||||||
Duchess Parade Investments Limited | United Kingdom | — | 100.00% | 100.00% | LEASING | 2 | — | 1 | ||||||||||||||
Dudebasa, S.A. | Spain | — | 88.42% | 100.00% | FINANCE | 37 | 3 | 21 | ||||||||||||||
Duncan Lawrie Pension Consultants Limited | United Kingdom | — | 100.00% | 100.00% | ASSET MANAGEMENT COMPANY | 1 | — | 1 | ||||||||||||||
Efearvi, S.A. | Spain | — | 88.33% | 100.00% | PROPERTY | — | — | — | ||||||||||||||
Efectividad en Medios de Pago, S.A. de C.V. | Mexico | 98.61% | 1.39% | 100.00% | FINANCE | 25 | — | 13 | ||||||||||||||
Elerco, S.A. | Spain | — | 88.32% | 100.00% | LEASE | 243 | 20 | 123 | ||||||||||||||
Fábricas Agrupadas de Muñecas de Onil, S.A. (consolidated) (g) | Spain | — | 83.46% | 100.00% | TOY MANUFACTURE | 17 | 4 | 80 | ||||||||||||||
FC Factor S.r.l. | Italy | — | 100.00% | 100.00% | FINANCE | 2 | — | 1 | ||||||||||||||
FFB — Participaçoes e Serviços, Sociedade Unipessoal, S.A. | Portugal | — | 100.00% | 100.00% | HOLDING COMPANY | 3,482 | 104 | 1,020 | ||||||||||||||
Fideicomiso 100740 SLPT | Mexico | — | 74.91% | 100.00% | FINANCE | 38 | 1 | 28 | ||||||||||||||
Fideicomiso GFSSLPT Banca Serfín, S.A. | Mexico | — | 74.91% | 100.00% | FINANCE | 46 | 1 | 29 | ||||||||||||||
Fideicomiso Super Letras Hipotecarias Clase I | Argentina | — | (b) | — | SECURITIZATION | 2 | — | — | ||||||||||||||
Fideicomiso Super Letras Hipotecarias Clase II | Argentina | — | (b) | — | SECURITIZATION | 4 | — | — | ||||||||||||||
Finlay Instalación Fotovoltáica, S.L. | Spain | — | 100.00% | 100.00% | ELECTRICITY | — | — | — | ||||||||||||||
First National Motor Business Limited | United Kingdom | — | 100.00% | 100.00% | LEASING | — | — | — | ||||||||||||||
First National Motor Contracts Limited | United Kingdom | — | 100.00% | 100.00% | LEASING | (1 | ) | — | — | |||||||||||||
First National Motor Facilities Limited | United Kingdom | — | 100.00% | 100.00% | LEASING | — | — | — | ||||||||||||||
First National Motor Finance Limited | United Kingdom | — | 100.00% | 100.00% | ADVISORY SERVICES | — | — | — | ||||||||||||||
First National Motor Leasing Limited | United Kingdom | — | 100.00% | 100.00% | LEASING | — | — | — | ||||||||||||||
First National Motor plc | United Kingdom | — | 100.00% | 100.00% | LEASING | (79 | ) | 25 | — | |||||||||||||
Fomento e Inversiones, S.A. | Spain | 100.00% | — | 100.00% | SECURITIES INVESTMENT | 17 | 33 | 17 | ||||||||||||||
Fondo de Titulización de Activos Santander 1 | Spain | — | (b) | — | SECURITIZATION | — | — | — | ||||||||||||||
Fondo de Titulización de Activos Santander Empresas 1 | Spain | — | (b) | — | SECURITIZATION | — | — | — | ||||||||||||||
Fondo de Titulización de Activos Santander Público 1 | Spain | — | (b) | — | SECURITIZATION | — | — | — | ||||||||||||||
Fondos Santander, S.A. Administradora de Fondos de Inversión | Uruguay | — | 100.00% | 100.00% | FUND MANAGEMENT COMPANY | — | — | 1 | ||||||||||||||
Formación Integral, S.A. | Spain | — | 88.42% | 100.00% | TRAINING | 1 | — | 1 | ||||||||||||||
Fortensky Trading, Ltd. | Ireland | — | 100.00% | 100.00% | FINANCE | — | — | — | ||||||||||||||
Freixo Instalación Fotovoltáica, S.L. | Spain | — | 100.00% | 100.00% | ELECTRICITY | — | — | — | ||||||||||||||
Friedrichstrasse, S.L. | Spain | — | 99.99% | 99.99% | PROPERTY | — | — | — | ||||||||||||||
FTA Santander Consumer Spain Auto 06 | Spain | — | (b) | — | SECURITIZATION | — | (10 | ) | — | |||||||||||||
FTPYME Banesto 2 Fondo de Titulización de Activos | Spain | — | (b) | — | SECURITIZATION | — | — | — | ||||||||||||||
FTPYME Santander 2 Fondo de Titulización de Activos | Spain | — | (b) | — | SECURITIZATION | — | — | — | ||||||||||||||
GACC SECURITIZATION AIB International Financial Service | Ireland | — | (b) | — | SECURITIZATION | — | — | — | ||||||||||||||
Gale Instalación Fotovoltáica, S.L. | Spain | — | 100.00% | 100.00% | ELECTRICITY | — | — | — | ||||||||||||||
Galliano Instalación Fotovoltáica, S.L. | Spain | — | 100.00% | 100.00% | ELECTRICITY | — | — | — | ||||||||||||||
Gedinver e Inmuebles, S.A. | Spain | — | 88.42% | 100.00% | FINANCE | 5 | — | 5 | ||||||||||||||
Geoban, S.A. | Spain | — | 94.10% | 100.00% | SERVICES | 2 | (1 | ) | 3 | |||||||||||||
Gesban Servicios Administrativos Globales, S.L. | Spain | 99.99% | 0.01% | 100.00% | SERVICES | 1 | — | 1 | ||||||||||||||
Gescoban Soluciones, S.A. | Spain | — | 88.42% | 100.00% | FINANCE | 2 | — | 1 | ||||||||||||||
Gestión de Actividades Tecnológicas, S.A. | Spain | 99.98% | 0.02% | 100.00% | SECURITIES INVESTMENT | (20 | ) | — | — | |||||||||||||
Gestión de Instalaciones Fotovoltáicas, S.L. (Sole-shareholder company) | Spain | — | 100.00% | 100.00% | ELECTRICITY | — | — | — | ||||||||||||||
Gestión Industrial Hispamer, S.A. | Spain | 100.00% | 0.01% | 100.00% | SECURITIES INVESTMENT | (45 | ) | 8 | — | |||||||||||||
Gestión Santander, S.A. de C.V., Sociedad Operadora de Sociedades de Inversión, Grupo Financiero Santander | Mexico | — | 74.92% | 100.00% | FINANCE | 3 | 13 | 1 | ||||||||||||||
Giclas Instalación Fotovoltáica, S.L. | Spain | — | 100.00% | 100.00% | ELECTRICITY | — | — | — | ||||||||||||||
Gire, S.A. (c) | Argentina | — | 57.92% | 58.33% | PAYMENT SYSTEMS | 5 | 2 | 2 | ||||||||||||||
Golden Bar (SECURITIZATION) S.r.l. | Italy | — | (b) | — | SECURITIZATION | — | — | — | ||||||||||||||
Grupo Empresarial Santander, S.L. | Spain | 99.11% | 0.89% | 100.00% | HOLDING COMPANY | 2,964 | 836 | 4,005 | ||||||||||||||
Grupo Eurociber, S.A. | Spain | — | 88.42% | 100.00% | SERVICES | — | — | 5 | ||||||||||||||
Grupo Financiero Santander, S.A. de C.V. | Mexico | 74.70% | 0.21% | 74.92% | HOLDING COMPANY | 2,966 | 681 | 1,528 | ||||||||||||||
Grupo Golf del Sur, S.A. | Spain | — | 88.42% | 100.00% | PROPERTY | 9 | — | 8 | ||||||||||||||
Grupo Inmobiliario La Corporación Banesto, S.A. | Spain | — | 88.31% | 100.00% | SECURITIES INVESTMENT | 10 | 1 | 22 |
F-211
Table of Contents
Millions of Euros (a) | ||||||||||||||||||||||
% of Ownership Held by the | Amount of | |||||||||||||||||||||
Bank | % of Voting | Capital and | Profit (Loss) | Ownership | ||||||||||||||||||
Company | Location | Direct | Indirect | Rights (k) | Line of Business | Reserves | for the Year | Interest | ||||||||||||||
Grupo Santander Perú, S.A. | Peru | — | 100.00% | 100.00% | HOLDING COMPANY | 21 | 82 | 341 | ||||||||||||||
Guaranty Car, S.A. | Spain | — | 100.00% | 100.00% | AUTOMOTIVE | 1 | 1 | — | ||||||||||||||
H.B.F. Aluguer e Comercio de Viaturas, S.A. | Portugal | — | 100.00% | 100.00% | RENTAL LEASE | — | — | — | ||||||||||||||
H.B.F. Auto-Renting, S.A. | Spain | — | 100.00% | 100.00% | RENTAL LEASE | 10 | 2 | 2 | ||||||||||||||
Hipotebansa EFC, S.A. | Spain | 100.00% | — | 100.00% | MORTGAGE LOAN COMPANY | 45 | 5 | 36 | ||||||||||||||
Hipototta No. 1 FTC | Portugal | — | (b) | — | SECURITIZATION | (3 | ) | — | — | |||||||||||||
Hipototta No. 1 plc | Ireland | — | (b) | — | SECURITIZATION | (3 | ) | — | — | |||||||||||||
Hipototta No. 2 FTC | Portugal | — | (b) | — | SECURITIZATION | (2 | ) | (1 | ) | — | ||||||||||||
Hipototta No. 2 plc | Ireland | — | (b) | — | SECURITIZATION | (2 | ) | (1 | ) | — | ||||||||||||
Hipototta No. 3 FTC | Portugal | — | (b) | — | SECURITIZATION | (9 | ) | (2 | ) | — | ||||||||||||
Hipototta No. 3 plc | Ireland | — | (b) | — | SECURITIZATION | (9 | ) | (2 | ) | — | ||||||||||||
Hipototta No. 4 FTC | Portugal | — | (b) | — | SECURITIZATION | (7 | ) | (1 | ) | — | ||||||||||||
Hipototta No. 4 plc | Ireland | — | (b) | — | SECURITIZATION | (7 | ) | (1 | ) | — | ||||||||||||
Hispamer Renting, S.A. | Spain | — | 100.00% | 100.00% | RENTAL LEASE | 7 | 1 | 1 | ||||||||||||||
Holbah II, Ltd. | Bahamas | — | 100.00% | 100.00% | HOLDING COMPANY | 914 | 66 | 1,148 | ||||||||||||||
Holbah, Ltd. | Bahamas | — | 100.00% | 100.00% | HOLDING COMPANY | 177 | 27 | 268 | ||||||||||||||
Holmes Financing (No.1) plc | United Kingdom | — | (b) | — | FINANCE | 1 | — | — | ||||||||||||||
Holmes Financing (No.10) plc | United Kingdom | — | (b) | — | FINANCE | — | (1 | ) | — | |||||||||||||
Holmes Financing (No.2) plc | United Kingdom | — | (b) | — | FINANCE | — | — | — | ||||||||||||||
Holmes Financing (No.3) plc | United Kingdom | — | (b) | — | FINANCE | — | — | — | ||||||||||||||
Holmes Financing (No.4) plc | United Kingdom | — | (b) | — | FINANCE | — | — | — | ||||||||||||||
Holmes Financing (No.5) plc | United Kingdom | — | (b) | — | FINANCE | — | — | — | ||||||||||||||
Holmes Financing (No.6) plc | United Kingdom | — | (b) | — | FINANCE | 1 | — | — | ||||||||||||||
Holmes Financing (No.7) plc | United Kingdom | — | (b) | — | FINANCE | — | — | — | ||||||||||||||
Holmes Financing (No.8) plc | United Kingdom | — | (b) | — | FINANCE | — | (1 | ) | — | |||||||||||||
Holmes Financing (No.9) plc | United Kingdom | — | (b) | — | FINANCE | — | — | — | ||||||||||||||
Holmes Funding Limited | United Kingdom | — | (b) | — | FINANCE | (25 | ) | 88 | — | |||||||||||||
Holmes Holdings Limited | United Kingdom | — | (b) | — | HOLDING COMPANY | — | — | — | ||||||||||||||
Holmes Master Issuer plc | United Kingdom | — | (b) | — | FINANCE | — | — | — | ||||||||||||||
Holmes Trustees Limited | United Kingdom | — | (b) | — | FINANCE | — | — | — | ||||||||||||||
Holneth Merchant, B.V. (l) | Netherlands | — | 100.00% | 100.00% | HOLDING COMPANY | (9 | ) | — | — | |||||||||||||
Holneth, B.V. | Netherlands | — | 100.00% | 100.00% | HOLDING COMPANY | 203 | 93 | 9 | ||||||||||||||
Holsant, B.V. (l) | Netherlands | — | 100.00% | 100.00% | HOLDING COMPANY | 11 | 6 | — | ||||||||||||||
HSH Delaware L.P. (m) | United States | — | 69.75% | — | HOLDING COMPANY | — | — | — | ||||||||||||||
Hualle, S.A. | Spain | — | 88.42% | 100.00% | SECURITIES INVESTMENT | 6 | 15 | 4 | ||||||||||||||
Ibérica de Compras Corporativas, S.L. | Spain | 75.66% | 7.73% | 84.04% | e-COMMERCE | 2 | 1 | 2 | ||||||||||||||
IEM (Holland) Aircraft Lease B.V. | Netherlands | — | 100.00% | 100.00% | LEASING | — | — | — | ||||||||||||||
IEM 757 Leasing I B.V. | Netherlands | — | 100.00% | 100.00% | LEASING | — | — | — | ||||||||||||||
IEM Airfinance B.V. | Netherlands | — | 100.00% | 100.00% | LEASING | (2 | ) | — | — | |||||||||||||
IEM Lease Aircraft B.V. | Netherlands | — | 100.00% | 100.00% | LEASING | — | — | — | ||||||||||||||
Ingeniería de Software Bancario, S.L. | Spain | 49.00% | 45.10% | 100.00% | IT SERVICES | 91 | (9 | ) | 72 | |||||||||||||
Inmobiliaria Laukariz, S.A. | Spain | — | 88.42% | 100.00% | PROPERTY | 6 | — | 1 | ||||||||||||||
Inmobiliaria Lerma y Amazonas, S.A. De C.V. | Mexico | — | 74.89% | 100.00% | PROPERTY MANAGEMENT | 20 | (1 | ) | 13 | |||||||||||||
Inmuebles B de V 1985 C.A. | Venezuela | — | 35.63% | 100.00% | RENTAL OF PREMISES | — | — | — | ||||||||||||||
Inscape Investments Limited | United Kingdom | — | 100.00% | 100.00% | FINANCE | 34 | 9 | 34 | ||||||||||||||
Instituto Santander Serfin, A.C. | Mexico | — | 74.91% | 100.00% | NOT-FOR-PROFIT INSTITUTE | 2 | — | — | ||||||||||||||
Insurance Funding Solutions Limited | United Kingdom | — | 100.00% | 100.00% | FINANCE | (46 | ) | 8 | — | |||||||||||||
Integrated Securities Services, S.A. | Spain | — | 60.00% | 60.00% | HOLDING COMPANY | 1 | — | — | ||||||||||||||
Integritas (Canada) Trustee Corporation Ltd. | Canada | 100.00% | — | 100.00% | ASSET MANAGEMENT COMPANY | — | — | — | ||||||||||||||
Integritas New Zealand Ltd. | New Zealand | — | 100.00% | 100.00% | ASSET MANAGEMENT COMPANY | — | — | — | ||||||||||||||
Integritas Trust, S.A. | Switzerland | — | 100.00% | 100.00% | ASSET MANAGEMENT COMPANY | 1 | — | — | ||||||||||||||
Interbanco, S.A. | Portugal | — | 50.00% | 50.00% | BANKING | 68 | 12 | 125 | ||||||||||||||
Internacional Compañía Seguros de Vida, S.A. | Argentina | — | 59.20% | 59.20% | INSURANCE | 19 | 8 | 10 | ||||||||||||||
Inversiones Fadiver, S.A. (g) | Spain | — | 83.46% | 83.46% | HOLDING COMPANY | 12 | 4 | 18 | ||||||||||||||
Inversiones Marítimas del Mediterráneo, S.A. | Spain | 100.00% | — | 100.00% | HOLDING COMPANY | 3 | 1 | — | ||||||||||||||
Inversiones Tesoreras SICAV, S.A. | Spain | — | 76.32% | 76.32% | OPEN-END INVESTMENT COMPANY | 11 | — | 8 | ||||||||||||||
Inversiones Turísticas, S.A. | Spain | — | 88.42% | 100.00% | HOSPITALITY | 33 | 1 | 30 | ||||||||||||||
Isban DE GmbH | Germany | — | 100.00% | 100.00% | SERVICES | — | 2 | — | ||||||||||||||
Isban U.K., Ltd. | United Kingdom | — | 94.10% | 100.00% | IT SERVICES | — | 2 | — | ||||||||||||||
ISBANP-Engenheria e Software Bancário, S.A. | Portugal | — | 96.97% | 100.00% | IT SERVICES | 1 | — | — | ||||||||||||||
Island Insurance Corporation | Puerto Rico | — | 90.77% | 100.00% | INSURANCE | 4 | — | 4 | ||||||||||||||
IT Car — Aluguer e Comércio de Automóveis, S.A. | Portugal | — | 50.00% | 100.00% | AUTOMOTIVE | 2 | 1 | 1 | ||||||||||||||
Itasant Sociedade Gestora de Participaçoes Sociais Sociedade Unipessoal, Lda. | Portugal | — | 100.00% | 100.00% | HOLDING COMPANY | 316 | (14 | ) | 92 | |||||||||||||
James Hay Administration Company Limited | United Kingdom | — | 99.99% | 99.99% | FUND AND PORTFOLIO MANAGER | 5 | 8 | 13 | ||||||||||||||
James Hay Holdings Limited | United Kingdom | — | 100.00% | 100.00% | HOLDING COMPANY | (16 | ) | 6 | — | |||||||||||||
James Hay Insurance Company Limited | Jersey | — | 100.00% | 100.00% | INSURANCE BROKER | 8 | 10 | 18 | ||||||||||||||
James Hay Pension Trustees Limited | United Kingdom | — | 100.00% | 100.00% | ASSET MANAGEMENT COMPANY | 3 | 1 | 3 | ||||||||||||||
J.C. Flowers II-A L.P. (m) | Canada | — | 68.58% | — | HOLDING COMPANY | — | — | — | ||||||||||||||
Kitila Instalación Fotovoltáica, S.L. | Spain | — | 100.00% | 100.00% | ELECTRICITY | — | — | — | ||||||||||||||
Kojima Instalación Fotovoltáica, S.L. | Spain | — | 100.00% | 100.00% | ELECTRICITY | — | — | — | ||||||||||||||
Kowal Instalación Fotovoltáica, S.L. | Spain | — | 100.00% | 100.00% | ELECTRICITY | — | — | — | ||||||||||||||
La Unión Resinera Española, S.A. (consolidated) | Spain | 74.87% | 21.26% | 96.22% | CHEMICALS | 49 | — | 28 | ||||||||||||||
Laparanza, S.A. (c) | Spain | 61.59% | — | 61.59% | AGRICULTURE AND LIVESTOCK | 27 | — | 16 | ||||||||||||||
Larix Chile Inversiones, Ltd. | Chile | — | 88.42% | 100.00% | PROPERTY | — | — | — | ||||||||||||||
Larix Limited | Isle of Man | — | 88.42% | 100.00% | PROPERTY | 2 | — | 1 | ||||||||||||||
Latinoenvíos, S.A. | Spain | 100.00% | — | 100.00% | TRANSFER OF FUNDS FOR IMMIGRANTS | — | — | 1 |
F-212
Table of Contents
Millions of Euros (a) | ||||||||||||||||||||||
% of Ownership Held by the | Amount of | |||||||||||||||||||||
Bank | % of Voting | Capital and | Profit (Loss) | Ownership | ||||||||||||||||||
Company | Location | Direct | Indirect | Rights (k) | Line of Business | Reserves | for the Year | Interest | ||||||||||||||
Layos Instalación Fotovoltáica, S.L. | Spain | — | 100.00% | 100.00% | ELECTRICITY | — | — | — | ||||||||||||||
Linvest, S.A. | Argentina | — | 99.94% | 100.00% | FINANCIAL SERVICES | — | — | — | ||||||||||||||
Lion Consulting, S.A. | Argentina | — | 99.90% | 100.00% | ADVISORY SERVICES | — | — | — | ||||||||||||||
Lovas Instalación Fotovoltáica, S.L. | Spain | — | 100.00% | 100.00% | ELECTRICITY | — | — | — | ||||||||||||||
Luresa Inmobiliaria, S.A. | Spain | — | 96.13% | 100.00% | PROPERTY | 18 | 1 | 9 | ||||||||||||||
Luri 1, S.A. | Spain | — | 5.58% | 100.00% | PROPERTY | 101 | 2 | 6 | ||||||||||||||
Luri 2, S.A. | Spain | — | 4.81% | 100.00% | PROPERTY | 100 | 1 | 5 | ||||||||||||||
MAC No. 1 Limited (i) | United Kingdom | — | (b) | — | MORTGAGE LOAN COMPANY | — | — | — | ||||||||||||||
Macame, S.A. | Spain | 90.09% | 9.91% | 100.00% | HOLDING COMPANY | 56 | 334 | — | ||||||||||||||
Madeisisa — SGPS Sociedade Unipessoal, Lda. | Portugal | — | 99.71% | 100.00% | HOLDING COMPANY | 8 | — | 3 | ||||||||||||||
Marylebone Road CBO 2 Limited | Cayman Islands | — | (b) | — | FINANCE | — | — | — | ||||||||||||||
Marylebone Road CBO 3 BV | Netherlands | — | (b) | — | FINANCE | — | — | — | ||||||||||||||
Mata Alta, S.L. | Spain | — | 61.59% | 100.00% | PROPERTY | — | — | — | ||||||||||||||
Mercado de Dinero, S.A. | Spain | — | 88.42% | 100.00% | SECURITIES INVESTMENT | — | — | — | ||||||||||||||
Merciver, S.L. | Spain | — | 88.42% | 100.00% | SHIPPING COMPANY | — | — | — | ||||||||||||||
Moneda y Crédito, S.L. | Spain | 50.00% | — | 100.00% | ADVERTISING | — | — | — | ||||||||||||||
Mortimer Instalación Fotovoltáica, S.L. | Spain | — | 100.00% | 100.00% | ELECTRICITY | — | — | — | ||||||||||||||
Mosiler, S.A. | Uruguay | — | 100.00% | 100.00% | SERVICES | — | — | — | ||||||||||||||
Multifinance Corporation Limited | Malta | — | 49.50% | 99.00% | HOLDING COMPANY | — | — | — | ||||||||||||||
Multinegocios, S.A. | Chile | — | (b) | — | ADVISORY SERVICES | — | — | — | ||||||||||||||
Multi-Rent, Aluguer e Comércio de Automóveis, S.A. | Portugal | — | 60.00% | 100.00% | VEHICLE HIRE | — | (2 | ) | 17 | |||||||||||||
Multiservicios de Negocios Limitada | Chile | — | (b) | — | FINANCIAL SERVICES | — | — | — | ||||||||||||||
N&P (B.E.S.) Loans Limited | United Kingdom | — | 100.00% | 100.00% | LEASING | 162 | 11 | 144 | ||||||||||||||
Naviera Mirambel, S.L. | Spain | — | 100.00% | 100.00% | FINANCE | — | — | — | ||||||||||||||
New Investment for Trains 1 PLC | United Kingdom | — | 100.00% | 100.00% | FINANCE | — | — | — | ||||||||||||||
NIB Special Investors IV-A LP (c) | Canada | — | 99.50% | — | HOLDING COMPANY | 50 | — | 49 | ||||||||||||||
NIB Special Investors IV-B LP (c) | Canada | — | 95.80% | — | HOLDING COMPANY | 31 | — | 29 | ||||||||||||||
Ninfea Instalación Fotovoltáica, S.L. | Spain | — | 100.00% | 100.00% | ELECTRICITY | — | — | — | ||||||||||||||
Nisa Santander, S.A. | Spain | 99.99% | 0.01% | 100.00% | INACTIVE | — | — | — | ||||||||||||||
Norbest A.S. | Norway | 100.00% | — | 100.00% | SECURITIES INVESTMENT | 240 | 3 | 240 | ||||||||||||||
Nova Bostwick (Portugal) Fabrica de Portas Metalicas, Ltd. (c) | Portugal | — | 99.71% | 100.00% | DOOR MANUFACTURE | — | — | — | ||||||||||||||
NW Services CO | United States | — | 83.39% | 100.00% | e-COMMERCE | — | — | — | ||||||||||||||
Oil-Dor, S.A. | Spain | — | 88.31% | 99.99% | FINANCE | 143 | 3 | 108 | ||||||||||||||
Open Bank Santander Consumer, S.A. | Spain | — | 100.00% | 100.00% | BANKING | 33 | 8 | 47 | ||||||||||||||
Operadora de Derivados Serfin, S.A. De C.V. | Mexico | — | 74.90% | 100.00% | FINANCE | — | — | — | ||||||||||||||
Optimal Alternative Investments, S.G.I.I.C., S.A. | Spain | — | 100.00% | 100.00% | FUND MANAGEMENT COMPANY | 2 | — | 2 | ||||||||||||||
Optimal Investment Services, S.A. | Switzerland | — | 100.00% | 100.00% | FUND MANAGEMENT COMPANY | 19 | 12 | 5 | ||||||||||||||
Orígenes AFJP, S.A. | Argentina | — | 59.20% | 59.20% | PENSION FUND MANAGER | 46 | 6 | 177 | ||||||||||||||
Orígenes Seguros de Retiro, S.A. | Argentina | — | 59.20% | 59.20% | INSURANCE | 34 | 7 | 34 | ||||||||||||||
Pan American Bank, Ltd. | Bahamas | — | 100.00% | 100.00% | BANKING | 2 | — | 23 | ||||||||||||||
Pandora Instalación Fotovoltáica, S.L. | Spain | — | 100.00% | 100.00% | ELECTRICITY | — | — | — | ||||||||||||||
Parasant, S.A. | Switzerland | 100.00% | — | 100.00% | HOLDING COMPANY | 1,150 | — | 1,121 | ||||||||||||||
Patagon Euro, S.L. | Spain | 100.00% | — | 100.00% | HOLDING COMPANY | 685 | (13 | ) | 587 | |||||||||||||
PECOH Limited | United Kingdom | — | (b) | — | FINANCE | — | — | — | ||||||||||||||
Peninsular, S.A.R.L. | France | 100.00% | — | 100.00% | HOLDING COMPANY | 1 | — | 9 | ||||||||||||||
Pereda Gestión, S.A. | Spain | 99.99% | 0.01% | 100.00% | HOLDING COMPANY | 29 | 3 | 4 | ||||||||||||||
Pingham International, S.A. | Uruguay | — | 100.00% | 100.00% | SERVICES | — | — | — | ||||||||||||||
Plus Lease GmbH | Germany | — | 100.00% | 100.00% | FINANCE | — | — | — | ||||||||||||||
Polskie Towarzystwo Finansowe S.A. | Poland | — | 100.00% | 100.00% | SERVICES | 3 | 1 | 35 | ||||||||||||||
Polyfinances Holding Limited | Malta | — | 50.00% | 100.00% | HOLDING COMPANY | — | — | — | ||||||||||||||
Polyfinances, S.A. | Luxembourg | — | 50.00% | 100.00% | HOLDING COMPANY | 1 | — | 1 | ||||||||||||||
Portada, S.A. | Chile | — | 96.16% | 96.17% | FINANCE | 6 | — | 5 | ||||||||||||||
Portal Universia Argentina, S.A. | Argentina | — | 94.59% | 94.59% | INTERNET | 1 | — | — | ||||||||||||||
Portal Universia Portugal, Prestaçao de Serviços de Informática, S.A. | Portugal | — | 100.00% | 100.00% | INTERNET | 1 | (1 | ) | — | |||||||||||||
Portal Universia, S.A. | Spain | — | 67.77% | 67.77% | INTERNET | 6 | (1 | ) | 4 | |||||||||||||
Porterbrook Leasing Company Limited | United Kingdom | — | 100.00% | 100.00% | LEASING | 621 | 118 | 458 | ||||||||||||||
Porterbrook Leasing Company MEBO Limited | United Kingdom | — | 100.00% | 100.00% | HOLDING COMPANY | 164 | 1 | 741 | ||||||||||||||
Porterbrook Limited | United Kingdom | — | 100.00% | 100.00% | HOLDING COMPANY | 411 | (14 | ) | 445 | |||||||||||||
Porterbrook Maintenance Limited | United Kingdom | — | 100.00% | 100.00% | MAINTENANCE SERVICES | 162 | 5 | — | ||||||||||||||
Préstamos de Consumo, S.A. | Argentina | — | 99.97% | 100.00% | FINANCE | — | — | 8 | ||||||||||||||
Procura Digital Chile, S.A. | Chile | — | 83.39% | 100.00% | e-COMMERCE | — | — | — | ||||||||||||||
Procura Digital de Venezuela, S.A. | Venezuela | — | 83.39% | 100.00% | e-COMMERCE | 1 | — | 2 | ||||||||||||||
Procura Digital Ltda. | Brazil | — | 83.39% | 100.00% | e-COMMERCE | (2 | ) | 3 | — | |||||||||||||
Procura Digital SRL de C.V. | Mexico | — | 83.39% | 100.00% | e-COMMERCE | 1 | 1 | 1 | ||||||||||||||
Produban Servicios Informáticos Generales, S.L. | Spain | 98.00% | 2.00% | 100.00% | HOLDING COMPANY | 1 | (12 | ) | 1 | |||||||||||||
Programa Hogar Montigalá, S.A. | Spain | — | 88.32% | 100.00% | PROPERTY | 7 | — | 7 | ||||||||||||||
Promoción de Servicios Integrales, S.A. de C.V. | Mexico | — | 100.00% | 100.00% | SERVICES | — | — | — | ||||||||||||||
Promociones y Servicios Santiago, S.A. de C.V. | Mexico | — | 100.00% | 100.00% | SERVICES | — | — | — | ||||||||||||||
Promotora AFR de Venezuela, S.A. | Venezuela | — | 98.40% | 99.98% | ADVISORY SERVICES | — | — | 4 | ||||||||||||||
Promotora Herlosacantos, S.A. (c) | Spain | — | 50.00% | 50.00% | PROPERTY | — | — | — | ||||||||||||||
Proyecto Europa, S.A. | Spain | — | 88.42% | 100.00% | ADVISORY SERVICES | — | — | — | ||||||||||||||
Río Compañía de Seguros, S.A. | Argentina | — | 99.91% | 100.00% | INSURANCE | 8 | 3 | 5 | ||||||||||||||
Río Trust, S.A. | Argentina | — | 99.97% | 100.00% | FINANCIAL SERVICES | — | — | — | ||||||||||||||
Riobank International (Uruguay) SAIFE | Uruguay | — | 100.00% | 100.00% | BANKING | 20 | — | 17 | ||||||||||||||
Rue Villot 26, S.L. | Spain | — | 99.99% | 99.99% | PROPERTY | 22 | — | 26 | ||||||||||||||
S C Servicios y Cobranzas S.A. | Colombia | — | 97.76% | 100.00% | COLLECTION AND PAYMENT SERVICES | — | — | 1 | ||||||||||||||
SAG International Finance Company Limited | Ireland | — | 60.00% | 100.00% | FINANCE | 2 | 2 | 1 | ||||||||||||||
Sánchez Ramade Santander Financiera, S.L. | Spain | — | 50.00% | 50.00% | FINANCIAL SERVICES | — | — | — | ||||||||||||||
Sandywick Limited | Jersey | — | 100.00% | 100.00% | ASSET MANAGEMENT COMPANY | 2 | — | — |
F-213
Table of Contents
Millions of Euros (a) | ||||||||||||||||||||||
% of Ownership Held by the | Amount of | |||||||||||||||||||||
Bank | % of Voting | Capital and | Profit (Loss) | Ownership | ||||||||||||||||||
Company | Location | Direct | Indirect | Rights (k) | Line of Business | Reserves | for the Year | Interest | ||||||||||||||
Saninv Gestao e Investimentos, S.A. | Portugal | — | 100.00% | 100.00% | FINANCE | 161 | (47 | ) | 119 | |||||||||||||
Santana Credit E.F.C., S.A. | Spain | — | 100.00% | 100.00% | FINANCE | 7 | 1 | 5 | ||||||||||||||
Santander AM Holding, S.L. | Spain | 100.00% | — | 100.00% | HOLDING COMPANY | 97 | 25 | 6 | ||||||||||||||
Santander Asset Management Chile S.A. | Chile | 0.01% | 99.82% | 100.00% | HOLDING COMPANY | — | — | 9 | ||||||||||||||
Santander Asset Management Ireland, Ltd. | Ireland | — | 100.00% | 100.00% | FUND MANAGEMENT COMPANY | 17 | — | — | ||||||||||||||
Santander Asset Management Luxembourg, S.A. | Luxembourg | — | 97.68% | 100.00% | FUND MANAGEMENT COMPANY | 1 | — | — | ||||||||||||||
Santander Asset Management Corporation | Puerto Rico | — | 90.77% | 100.00% | SECURITIES COMPANY | (3 | ) | 5 | 2 | |||||||||||||
Santander Asset Management UK Holdings Limited (d) | United Kingdom | — | 100.00% | 100.00% | HOLDING COMPANY | 200 | — | 200 | ||||||||||||||
Santander BanCorp | Puerto Rico | — | 90.77% | 91.50% | HOLDING COMPANY | 505 | 33 | 206 | ||||||||||||||
Santander Banespa, Cia. de Arrendamiento Mercantil | Brazil | — | 98.06% | 100.00% | LEASING | — | — | — | ||||||||||||||
Santander Banespa Administradora de Consorcios, Ltda. | Brazil | — | 97.97% | 100.00% | FINANCE | 1 | — | 1 | ||||||||||||||
Santander Banespa Asset Management DTVM, Ltda. | Brazil | — | 97.97% | 100.00% | SECURITIES INVESTMENT | 25 | 4 | 20 | ||||||||||||||
Santander Banespa Seguros, S.A. | Brazil | — | 99.38% | 100.00% | INSURANCE | 12 | 6 | 13 | ||||||||||||||
Santander Bank and Trust, Ltd. | Bahamas | — | 100.00% | 100.00% | BANKING | 1,470 | 204 | 1,205 | ||||||||||||||
Santander Benelux, S.A., N.V. | Belgium | 100.00% | — | 100.00% | BANKING | 937 | 20 | 925 | ||||||||||||||
Santander Brasil Arrendamento Mercantil, S.A. | Brazil | — | 97.97% | 100.00% | LEASING | 172 | 5 | 115 | ||||||||||||||
Santander Brasil Investimentos e Serviços, S.A. | Brazil | — | 100.00% | 100.00% | SERVICES | 13 | 1 | 22 | ||||||||||||||
Santander Brasil Participaçoes e Emprendimentos, S.A. | Brazil | — | 97.97% | 100.00% | SERVICES | 43 | 7 | 90 | ||||||||||||||
Santander Brasil S.A., Corretora de Cambio e Valores Mobiliarios | Brazil | — | 97.97% | 100.00% | SECURITIES COMPANY | 35 | 5 | 18 | ||||||||||||||
Santander Capital Desarrollo, SGECR, S.A. | Spain | 100.00% | — | 100.00% | VENTURE CAPITAL COMPANY | 1 | — | — | ||||||||||||||
Santander Capitalizaçao, S.A. | Brazil | — | 99.38% | 100.00% | FUND MANAGEMENT COMPANY | 4 | 17 | 5 | ||||||||||||||
Santander Carteras, S.G.C., S.A. | Spain | — | 100.00% | 100.00% | FUND MANAGEMENT COMPANY | 16 | 2 | 8 | ||||||||||||||
Santander Central Hispano Finance (Delaware), Inc. | United States | 100.00% | — | 100.00% | FINANCE | 1 | — | — | ||||||||||||||
Santander Central Hispano Finance, B.V. | Netherlands | 100.00% | — | 100.00% | FINANCE | 1 | — | — | ||||||||||||||
Santander Central Hispano Financial Services, Ltd. | Cayman Islands | 100.00% | — | 100.00% | FINANCE | 1 | — | — | ||||||||||||||
Santander Central Hispano International Ltd. | Cayman Islands | 100.00% | — | 100.00% | FINANCE | 3 | — | — | ||||||||||||||
Santander Central Hispano Issuances, Ltd. | Cayman Islands | 100.00% | — | 100.00% | FINANCE | 3 | (1 | ) | — | |||||||||||||
Santander Chile Holding, S.A. | Chile | 22.11% | 77.39% | 99.51% | HOLDING COMPANY | 476 | 154 | 290 | ||||||||||||||
Santander Commercial Paper, S.A. | Spain | 100.00% | — | 100.00% | HOLDING COMPANY | — | — | — | ||||||||||||||
Santander Companhia Securitizadora de Créditos Financeiros | Brazil | — | 97.97% | 100.00% | COLLECTION MANAGEMENT | 38 | 6 | 73 | ||||||||||||||
Santander Consumer (UK) plc | United Kingdom | — | 100.00% | 100.00% | ADVISORY SERVICES | 67 | (7 | ) | 71 | |||||||||||||
Santander Consumer autoboerse de AG | Germany | — | 100.00% | 100.00% | INTERNET | 1 | 1 | 1 | ||||||||||||||
Santander Consumer Bank A.S. | Norway | — | 100.00% | 100.00% | FINANCE | 249 | 34 | 340 | ||||||||||||||
Santander Consumer Bank AG | Germany | — | 100.00% | 100.00% | BANKING | 872 | 368 | 884 | ||||||||||||||
Santander Consumer Bank S.p.A. | Italy | — | 100.00% | 100.00% | FINANCE | 181 | 21 | 240 | ||||||||||||||
Santander Consumer Debit GmbH | Germany | — | 100.00% | 100.00% | SERVICES | — | 12 | — | ||||||||||||||
Santander Consumer Finance a.s. | Czech Republic | — | 100.00% | 100.00% | LEASING | 32 | 4 | 33 | ||||||||||||||
Santander Consumer Finance B.V. | Netherlands | — | 100.00% | 100.00% | FINANCE | 31 | 3 | 32 | ||||||||||||||
Santander Consumer Finance Correduría de Seguros, S.A. | Spain | — | 100.00% | 100.00% | INSURANCE BROKER | 1 | 2 | — | ||||||||||||||
Santander Consumer Finance Media S.r.l. | Italy | — | 65.00% | 65.00% | FINANCE | 7 | — | 5 | ||||||||||||||
Santander Consumer Finance Oy | Finland | — | 100.00% | 100.00% | FINANCE | 3 | — | 3 | ||||||||||||||
Santander Consumer Finance Zrt. | Hungary | — | 100.00% | 100.00% | FINANCE | 9 | 1 | 4 | ||||||||||||||
Santander Consumer Finance, Germany GmbH | Germany | — | 100.00% | 100.00% | HOLDING COMPANY | 2,726 | (1 | ) | 2,726 | |||||||||||||
Santander Consumer Finance, S.A. | Spain | 63.19% | 36.81% | 100.00% | BANKING | 3,552 | 762 | 2,338 | ||||||||||||||
Santander Consumer Holding GmbH | Germany | — | 100.00% | 100.00% | HOLDING COMPANY | 1,313 | 183 | 1,827 | ||||||||||||||
Santander Consumer Iber-Rent, S.L. | Spain | — | 60.00% | 60.00% | AUTOMOTIVE | 54 | 2 | 18 | ||||||||||||||
Santander Consumer Leasing Austria GmbH | Austria | — | 100.00% | 100.00% | LEASING | — | — | — | ||||||||||||||
Santander Consumer Leasing GmbH | Germany | — | 100.00% | 100.00% | LEASING | 6 | 10 | 6 | ||||||||||||||
Santander Consumer Spólka Akcyjna | Poland | — | 100.00% | 100.00% | BANKING | 137 | 18 | 121 | ||||||||||||||
Santander Consumer, EFC, S.A. | Spain | — | 100.00% | 100.00% | FINANCE | 229 | 84 | 168 | ||||||||||||||
Santander de Desarrollos Inmobiliarios, S.A. | Spain | 98.39% | 1.61% | 100.00% | PROPERTY | — | — | — | ||||||||||||||
Santander de Leasing, S.A., E.F.C. | Spain | 70.00% | 30.00% | 100.00% | LEASING | 38 | 3 | 35 | ||||||||||||||
Santander de Renting, S.A. | Spain | 100.00% | — | 100.00% | RENTAL LEASE | 21 | 3 | 18 | ||||||||||||||
Santander de Titulización S.G.F.T., S.A. | Spain | 81.00% | 19.00% | 100.00% | SECURITIZATION | 1 | 4 | 1 | ||||||||||||||
Santander Distribuidora de Títulos e Valores Mobiliarios, Ltda. | Brazil | — | 97.97% | 100.00% | SECURITIES COMPANY | 4 | — | 5 | ||||||||||||||
Santander Factoring y Confirming, S.A., E.F.C. | Spain | 100.00% | — | 100.00% | FACTORING | 92 | 20 | 76 | ||||||||||||||
Santander Factoring, S.A. | Chile | — | 99.50% | 100.00% | FACTORING | 21 | — | 6 | ||||||||||||||
Santander Financial Products, Ltd. | Ireland | — | 100.00% | 100.00% | FINANCE | 172 | 6 | 162 | ||||||||||||||
Santander Financial Services, Inc. | Puerto Rico | — | 90.77% | 100.00% | LEASING | 104 | (1 | ) | 94 | |||||||||||||
Santander Gestâo de Activos — Sociedade Gestora de Fundos de Investimento Mobiliário, S.A. | Portugal | — | 99.85% | 100.00% | FUND MANAGEMENT COMPANY | 18 | 8 | 7 | ||||||||||||||
Santander Gestâo de Activos, SGPS, S.A. | Portugal | — | 99.85% | 100.00% | HOLDING COMPANY | 16 | 16 | 7 | ||||||||||||||
Santander Gestión de Activos, S.A., S.G.I.I.C. | Spain | 28.30% | 69.38% | 100.00% | FUND MANAGEMENT COMPANY | 81 | 72 | 33 | ||||||||||||||
Santander Gestión de Recaudación y Cobranzas, Ltda. | Chile | — | 98.96% | 99.45% | FINANCE | 2 | 1 | 2 | ||||||||||||||
Santander Global Services, S.A. | Uruguay | — | 100.00% | 100.00% | SERVICES | 1 | — | — | ||||||||||||||
Santander Global Sport, S.A. | Spain | 100.00% | — | 100.00% | PROPERTY | 3 | — | 3 | ||||||||||||||
Santander Hipotecario 1 Fondo de Titulización de Activos | Spain | — | (b) | — | SECURITIZATION | — | — | — | ||||||||||||||
Santander Holanda B.V. | Netherlands | 100.00% | — | 100.00% | HOLDING COMPANY | 10 | 2 | — | ||||||||||||||
Santander Holding Gestión, S.L. | Spain | — | 100.00% | 100.00% | HOLDING COMPANY | (79 | ) | — | — | |||||||||||||
Santander Holding Internacional, S.A. | Spain | 99.95% | 0.05% | 100.00% | HOLDING COMPANY | 28 | — | — | ||||||||||||||
Santander Insurance Agency, Inc. | Puerto Rico | — | 90.77% | 100.00% | INSURANCE BROKER | 2 | 5 | 3 | ||||||||||||||
Santander Insurance Holding, S.L. | Spain | 99.99% | 0.01% | 100.00% | HOLDING COMPANY | 198 | (6 | ) | 192 | |||||||||||||
Santander Insurance Services UK Limited (d) | United Kingdom | — | (b) | — | ASSET MANAGEMENT COMPANY | — | — | — | ||||||||||||||
Santander International Bank | Puerto Rico | — | 90.77% | 100.00% | BANKING | 26 | — | 1 | ||||||||||||||
Santander International Debt, S.A. | Spain | 100.00% | — | 100.00% | HOLDING COMPANY | — | — | — | ||||||||||||||
Santander Inversiones Limitada | Chile | — | 99.99% | 99.99% | HOLDING COMPANY | 604 | 38 | 575 | ||||||||||||||
Santander Investment Bank, Ltd. | Bahamas | — | 100.00% | 100.00% | BANKING | 90 | 9 | 191 | ||||||||||||||
Santander Investment Bolsa, S.V., S.A. | Spain | — | 100.00% | 100.00% | SECURITIES COMPANY | 148 | 63 | 104 | ||||||||||||||
Santander Investment Chile, Limitada | Chile | — | 99.99% | 99.99% | FINANCE | 125 | 37 | 130 |
F-214
Table of Contents
Millions of Euros (a) | ||||||||||||||||||||||
% of Ownership Held by the | Amount of | |||||||||||||||||||||
Bank | % of Voting | Capital and | Profit (Loss) | Ownership | ||||||||||||||||||
Company | Location | Direct | Indirect | Rights (k) | Line of Business | Reserves | for the Year | Interest | ||||||||||||||
Santander Investment Colombia S.A. | Colombia | — | 99.86% | 99.86% | HOLDING COMPANY | 3 | — | 44 | ||||||||||||||
Santander Investment Gerente FCI, S.A. | Argentina | — | 99.34% | 100.00% | FUND MANAGEMENT COMPANY | 4 | 2 | — | ||||||||||||||
Santander Investment I, S.A. | Spain | 100.00% | — | 100.00% | HOLDING COMPANY | (1,603 | ) | (1 | ) | — | ||||||||||||
Santander Investment Inmobiliaria Colombia, Ltda. | Colombia | — | 99.86% | 100.00% | PROPERTY MANAGEMENT | 2 | — | — | ||||||||||||||
Santander Investment Limited | Bahamas | — | 100.00% | 100.00% | SECURITIES COMPANY | (11 | ) | (20 | ) | — | ||||||||||||
Santander Investment Securities Inc. | United States | — | 100.00% | 100.00% | SECURITIES COMPANY | 48 | 15 | 295 | ||||||||||||||
Santander Investment Trust Colombia S.A., Sociedad Fiduciaria | Colombia | — | 99.99% | 100.00% | FUND MANAGEMENT COMPANY | 7 | 1 | 6 | ||||||||||||||
Santander Investment Valores Colombia S.A., Comisionista de Bolsa Comercial | Colombia | — | 97.76% | 100.00% | SECURITIES COMPANY | 2 | — | 1 | ||||||||||||||
Santander Investment, S.A. | Spain | 100.00% | — | 100.00% | BANKING | 201 | 156 | 14 | ||||||||||||||
Santander Investment, S.A., Corredores de Bolsa | Chile | — | 99.99% | 100.00% | SECURITIES COMPANY | 16 | 3 | 13 | ||||||||||||||
Santander IP UK Limited | United Kingdom | — | 100.00% | 100.00% | SECURITIES COMPANY | — | — | — | ||||||||||||||
Santander Issuances, S.A. | Spain | 100.00% | — | 100.00% | HOLDING COMPANY | — | — | — | ||||||||||||||
Santander Merchant Bank, Ltd. | Bahamas | — | 100.00% | 100.00% | BANKING | 4 | 1 | 56 | ||||||||||||||
Santander Merchant, S.A. | Argentina | — | 99.97% | 99.97% | HOLDING COMPANY | 1 | 1 | 19 | ||||||||||||||
Santander Mortgage Corp. | Puerto Rico | — | 90.77% | 100.00% | FINANCE | 22 | — | 17 | ||||||||||||||
Santander Multimedios, S.A. | Chile | — | 99.99% | 100.00% | INTERNET | 1 | — | 1 | ||||||||||||||
Santander Overseas Bank, Inc. | Puerto Rico | — | 100.00% | 100.00% | BANKING | 364 | 21 | 210 | ||||||||||||||
Santander Pensiones, S.A., E.G.F.P. | Spain | 21.20% | 76.49% | 100.00% | PENSION FUND MANAGER | 66 | 11 | 50 | ||||||||||||||
Santander Pensôes — Sociedade Gestora de Fundos de Pensôes, S.A. | Portugal | — | 99.85% | 100.00% | PENSION FUND MANAGER | 3 | 1 | 1 | ||||||||||||||
Santander Perpetual S.A. Unipersonal | Spain | 100.00% | — | 100.00% | HOLDING COMPANY | — | — | — | ||||||||||||||
Santander PR Capital Trust I | United States | — | 90.77% | 100.00% | FINANCE | (3 | ) | 6 | 3 | |||||||||||||
Santander Private Advisors, Ltd. | United States | 100.00% | — | 100.00% | HOLDING COMPANY | — | — | — | ||||||||||||||
Santander Private Equity, S.A., S.G.E.C.R. | Spain | 90.00% | 9.97% | 100.00% | VENTURE CAPITAL COMPANY | 4 | — | 4 | ||||||||||||||
Santander Professional Services, S.A. | Spain | — | 100.00% | 100.00% | SPORTS OPERATIONS | — | — | — | ||||||||||||||
Santander Real Estate, S.G.I.I.C., S.A. | Spain | — | 99.07% | 100.00% | FUND MANAGEMENT COMPANY | 32 | 24 | 6 | ||||||||||||||
Santander S.A. Agente de Valores | Chile | — | 76.95% | 100.00% | SECURITIES COMPANY | 179 | 21 | 21 | ||||||||||||||
Santander Santiago Corredora de Seguros, Ltda. | Chile | — | 76.73% | 100.00% | INSURANCE BROKER | 26 | 10 | 1 | ||||||||||||||
Santander Santiago, S.A., Administradora General de Fondos | Chile | — | 76.74% | 100.00% | FUND MANAGEMENT COMPANY | 72 | 19 | 8 | ||||||||||||||
Santander Santiago, S.A., Sociedad Securitizadora | Chile | — | 76.81% | 100.00% | SECURITIZATION | 1 | — | — | ||||||||||||||
Santander Securities Corporation | Puerto Rico | — | 90.77% | 100.00% | SECURITIES COMPANY | 24 | 6 | 17 | ||||||||||||||
Santander Seguros de Vida, S.A. | Chile | — | 100.00% | 100.00% | INSURANCE | 59 | 24 | 10 | ||||||||||||||
Santander Seguros Generales S.A. | Chile | 99.50% | 0.50% | 100.00% | INSURANCE | 11 | — | 12 | ||||||||||||||
Santander Seguros y Reaseguros, Compañía Aseguradora, S.A. | Spain | 60.99% | 34.49% | 100.00% | INSURANCE | 225 | 62 | 182 | ||||||||||||||
Santander Seguros, S.A. | Brazil | — | 99.38% | 99.38% | INSURANCE | 83 | 37 | 100 | ||||||||||||||
Santander Seguros, S.A. | Uruguay | — | 100.00% | 100.00% | INSURANCE | 2 | — | 1 | ||||||||||||||
Santander Servicios de Recaudación y Pagos Limitada | Chile | — | 76.73% | 100.00% | SERVICES | 1 | — | 1 | ||||||||||||||
Santander Sociedad de Bolsa, S.A. | Argentina | — | 99.34% | 100.00% | SECURITIES COMPANY | 5 | 2 | 3 | ||||||||||||||
Santander Totta Seguros, Companhia de Seguros de Vida, S.A. | Portugal | — | 99.85% | 100.00% | INSURANCE | 72 | 11 | 22 | ||||||||||||||
Santander Totta, SGPS, S.A. | Portugal | — | 99.85% | 99.85% | HOLDING COMPANY | 2,646 | 214 | 3,321 | ||||||||||||||
Santander Trade Services, Ltd. | Hong Kong | — | 100.00% | 100.00% | ADVISORY SERVICES | 6 | 3 | 33 | ||||||||||||||
Santander US Debt, S.A.U. | Spain | 100.00% | — | 100.00% | FINANCE | — | — | — | ||||||||||||||
Santander Venezuela Sociedad Administradora de Entidades de Inversión Colectiva, C.A. | Venezuela | — | 90.00% | 100.00% | FUND MANAGEMENT COMPANY | — | — | — | ||||||||||||||
Santiago Corredores de Bolsa, Ltda. | Chile | — | 76.73% | 100.00% | SECURITIES COMPANY | 25 | 1 | 16 | ||||||||||||||
Santiago Leasing, S.A. | Chile | — | 76.84% | 100.00% | LEASING | 39 | 2 | 50 | ||||||||||||||
Santusa Holding, S.L. | Spain | 69.64% | 30.36% | 100.00% | HOLDING COMPANY | 10,426 | 760 | 9,158 | ||||||||||||||
Sarum Trustees Limited | United Kingdom | — | 100.00% | 100.00% | ASSET MANAGEMENT COMPANY | — | — | — | ||||||||||||||
Scottish Mutual Pensions Limited | United Kingdom | — | 100.00% | 100.00% | INSURANCE | 34 | 1 | 107 | ||||||||||||||
Seguros Santander, S.A., Grupo Financiero Santander | Mexico | — | 74.92% | 100.00% | INSURANCE | 27 | 10 | 28 | ||||||||||||||
Sercoban, Administración de Empresas, S.L. | Spain | — | 100.00% | 100.00% | FINANCIAL SERVICES | — | — | — | ||||||||||||||
Sercopyme, S.A. | Spain | 100.00% | — | 100.00% | SERVICES | 20 | (2 | ) | 18 | |||||||||||||
Serfin International Bank and Trust, Ltd. | Cayman Islands | — | 99.71% | 100.00% | BANKING | 28 | 1 | 24 | ||||||||||||||
Servicio de Alarmas Controladas por Ordenador, S.A. | Spain | 99.99% | 0.01% | 100.00% | SECURITY | 2 | — | 1 | ||||||||||||||
Servicios Administrativos y Financieros, Ltda. | Chile | — | (b) | — | ADVISORY SERVICES | — | — | — | ||||||||||||||
Servicios Corporativos Seguros Serfin, S.A. De C.V. | Mexico | — | 73.42% | 98.00% | SERVICES | — | — | — | ||||||||||||||
Servicios de Cobranza, Recuperación y Seguimiento, S.A. De C.V. | Mexico | — | 100.00% | 100.00% | SERVICES | 1 | — | 2 | ||||||||||||||
Servicios de Cobranzas Fiscalex Ltda. | Chile | — | (b) | — | SERVICES | — | — | — | ||||||||||||||
Servicios Universia Venezuela S.U.V., S.A. | Venezuela | — | 61.45% | 61.45% | INTERNET | 1 | — | — | ||||||||||||||
Sheppards Moneybrokers Limited | United Kingdom | — | 100.00% | 100.00% | ADVISORY SERVICES | 23 | — | 19 | ||||||||||||||
Sinvest Inversiones y Asesorías Limitada | Chile | — | 99.99% | 100.00% | FINANCE | 49 | 5 | 2 | ||||||||||||||
Sistema 4B, S.A. | Spain | 51.65% | 12.91% | 66.25% | CARDS | 13 | 9 | 10 | ||||||||||||||
Sociedad Integral de Valoraciones Automatizadas, S.A. | Spain | — | 100.00% | 100.00% | APPRAISALS | 1 | 3 | 1 | ||||||||||||||
Societe de Gestion de Leopard Fund, S.A. | Luxembourg | — | 100.00% | 100.00% | FUND MANAGEMENT COMPANY | — | — | — | ||||||||||||||
Sodepro, S.A. | Spain | — | 88.42% | 100.00% | FINANCE | 15 | — | 12 | ||||||||||||||
Solarlaser Limited | United Kingdom | — | 100.00% | 100.00% | PROPERTY | 72 | 2 | 59 | ||||||||||||||
Suleyado 2003, S.L. | Spain | — | 100.00% | 100.00% | HOLDING COMPANY | 7 | — | 7 | ||||||||||||||
Suzuki Servicios Financieros, S.L. | Spain | — | 51.00% | 51.00% | FINANCE | — | — | — | ||||||||||||||
Swesant Merchant S.A. | Switzerland | — | 100.00% | 100.00% | HOLDING COMPANY | 1 | — | 383 | ||||||||||||||
Swesant, S.A. | Switzerland | — | 100.00% | 100.00% | HOLDING COMPANY | 163 | 60 | — | ||||||||||||||
Symbios Capital, B.V. (l) | Netherlands | — | 100.00% | 100.00% | VENTURE CAPITAL COMPANY | 22 | — | 23 | ||||||||||||||
Talorcan plc | United Kingdom | — | 100.00% | 100.00% | FINANCE | 3 | — | 2 | ||||||||||||||
Taxagest Sociedade Gestora de Participaçoes Sociais, S.A. | Portugal | — | 99.85% | 100.00% | HOLDING COMPANY | 47 | 4 | — | ||||||||||||||
Taylor Instalación Fotovoltáica, S.L. | Spain | — | 100.00% | 100.00% | ELECTRICITY | — | — | — | ||||||||||||||
Teatinos Siglo XXI, S.A. | Chile | 50.00% | 50.00% | 100.00% | HOLDING COMPANY | 291 | 150 | 404 | ||||||||||||||
Teylada, S.A. | Spain | 11.11% | 88.89% | 100.00% | SECURITIES INVESTMENT | — | — | — | ||||||||||||||
The HSH AIV 4 Trust (m) | United States | — | 69.75% | — | HOLDING COMPANY | — | — | — | ||||||||||||||
The Inscape Investment Fund (Jersey) Limited | Jersey | — | 100.00% | 100.00% | FINANCE | — | — | — | ||||||||||||||
The National & Provincial Building Society Pension Fund Trustees Limited | United Kingdom | — | (b) | — | ASSET MANAGEMENT COMPANY | — | — | — |
F-215
Table of Contents
Millions of Euros (a) | ||||||||||||||||||||||
% of Ownership Held by the | Amount of | |||||||||||||||||||||
Bank | % of Voting | Capital and | Profit (Loss) | Ownership | ||||||||||||||||||
Company | Location | Direct | Indirect | Rights (k) | Line of Business | Reserves | for the Year | Interest | ||||||||||||||
The WF Company Limited | United Kingdom | — | 100.00% | 100.00% | ADVISORY SERVICES | 1 | — | — | ||||||||||||||
Títulos de Renta Fija, S.A. | Spain | 100.00% | — | 100.00% | SECURITIES INVESTMENT | — | — | — | ||||||||||||||
Tornquist Asesores de Seguros , S.A. | Argentina | — | 99.93% | 99.99% | ADVISORY SERVICES | — | — | — | ||||||||||||||
Totta & Açores Finance Ireland, Limited | Ireland | — | 99.71% | 100.00% | FINANCE | 1 | 1 | 1 | ||||||||||||||
Totta & Açores Inc. Newark | United States | — | 99.71% | 100.00% | BANKING | 1 | — | 1 | ||||||||||||||
Totta (Ireland), PLC | Ireland | — | 99.71% | 100.00% | FINANCE | 354 | 82 | 341 | ||||||||||||||
Totta Crédito Especializado, Instituiçao Financeira de Crédito, S.A. (IFIC) | Portugal | — | 99.83% | 100.00% | LEASING | 116 | 17 | 42 | ||||||||||||||
Totta Urbe — Empresa de Administraçâo e Construçôes, S.A. | Portugal | — | 99.71% | 100.00% | PROPERTY | 105 | — | 148 | ||||||||||||||
UNIFIN S.p.A. | Italy | — | 70.00% | 70.00% | FINANCE | 13 | 5 | 44 | ||||||||||||||
Universia Brasil, S.A. | Brazil | — | 100.00% | 100.00% | INTERNET | 3 | (2 | ) | 1 | |||||||||||||
Universia Chile, S.A. | Chile | — | 92.82% | 92.82% | INTERNET | 2 | (1 | ) | 1 | |||||||||||||
Universia Colombia, S.A. | Colombia | — | 99.88% | 99.89% | INTERNET | 1 | (1 | ) | — | |||||||||||||
Universia Holding, S.L. | Spain | 99.87% | 0.13% | 100.00% | HOLDING COMPANY | 25 | (13 | ) | 13 | |||||||||||||
Universia México, S.A. De C.V. | Mexico | — | 100.00% | 100.00% | INTERNET | 1 | (1 | ) | — | |||||||||||||
Universia Perú, S.A. | Peru | — | 100.00% | 100.00% | INTERNET | 1 | (1 | ) | 1 | |||||||||||||
Universia Puerto Rico, Inc. | Puerto Rico | — | 100.00% | 100.00% | INTERNET | 1 | (1 | ) | — | |||||||||||||
Valores Santander Casa de Bolsa, C.A. | Venezuela | — | 90.00% | 90.00% | SECURITIES COMPANY | 9 | 2 | 8 | ||||||||||||||
Vargas Instalación Fotovoltáica, S.L. | Spain | — | 100.00% | 100.00% | ELECTRICITY | — | — | — | ||||||||||||||
Vendcare Finance Limited | United Kingdom | — | 100.00% | 100.00% | LEASING | — | — | — | ||||||||||||||
Vesubio Instalación Fotovoltáica, S.L. | Spain | — | 100.00% | 100.00% | ELECTRICITY | — | — | — | ||||||||||||||
Virtual Payments, S.L. | Spain | — | 88.42% | 100.00% | TECHNOLOGY | — | — | 1 | ||||||||||||||
Vista Capital de Expansión, S.A. SGECR | Spain | — | 50.00% | 50.00% | VENTURE CAPITAL COMPANY | — | 1 | — | ||||||||||||||
Vista Desarrollo, S.A. SCR | Spain | 100.00% | — | 100.00% | VENTURE CAPITAL COMPANY | 182 | 64 | 133 | ||||||||||||||
W.N.P.H. Gestao e Investimentos Sociedade Unipessoal, S.A. | Portugal | — | 100.00% | 100.00% | SECURITIES INVESTMENT | 32 | 1 | — | ||||||||||||||
Wallcesa, S.A. | Spain | 100.00% | — | 100.00% | SECURITIES INVESTMENT | 11 | 15 | 11 | ||||||||||||||
Wex Point España, S.L. | Spain | — | 88.42% | 100.00% | SERVICES | 8 | — | 2 | ||||||||||||||
Whitefoord & Foden Limited | United Kingdom | — | 100.00% | 100.00% | ADVISORY SERVICES | — | — | — | ||||||||||||||
Whitewick Limited | Jersey | — | 100.00% | 100.00% | HOLDING COMPANY | — | — | — | ||||||||||||||
WIM Servicios Corporativos, S.A. de C.V. | Mexico | — | 100.00% | 100.00% | TEMPORARY EMPLOYMENT AGENCY | — | — | — | ||||||||||||||
Wirtanen Instalación Fotovoltáica, S.L. | Spain | — | 100.00% | 100.00% | ELECTRICITY | — | — | — |
F-216
Table of Contents
% of Ownership Held | % of | Millions of Euros (a) | ||||||||||||||||||||
by the Bank | Voting | Capital and | Profit (Loss) | |||||||||||||||||||
Company | Location | Direct | Indirect | Rights (f) | Line of Business | Assets | Reserves | for the Year | ||||||||||||||
ABS Line Multimedia, S.L. | Spain | — | 47.50% | 47.50% | INTERNET | — | — | — | ||||||||||||||
AC Camerfirma, S.A. | Spain | — | 19.06% | 21.56% | TECHNOLOGY | 1 | 1 | — | ||||||||||||||
Accordfin España, E.F.C., S.A. | Spain | — | 49.00% | 49.00% | FINANCE | 329 | 16 | 5 | ||||||||||||||
Administrador Financiero de Transantiago | Chile | — | 15.35% | 20.00% | PAYMENT SYSTEMS | 94 | 9 | (1 | ) | |||||||||||||
Advent España, S.A. | Spain | — | 22.08% | 25.00% | FINANCE | — | — | — | ||||||||||||||
Affirmative Insurance Holdings Inc. (b) | United States | — | 5.46% | — | INSURANCE | 461 | 154 | 16 | ||||||||||||||
AGM Contacta, S.L. | Spain | — | 44.25% | 44.25% | TELECOMMUNICATIONS | 13 | 17 | 2 | ||||||||||||||
Aguas de Fuensanta, S.A. | Spain | — | 37.19% | 47.34% | FOOD | 31 | 9 | — | ||||||||||||||
Alcaidesa Golf, S.L. | Spain | — | 44.17% | 44.17% | SPORTS OPERATIONS | 7 | 7 | (1 | ) | |||||||||||||
Alcaidesa Inmobiliaria, S.A. | Spain | — | 44.17% | 44.17% | PROPERTY | 109 | 67 | 2 | ||||||||||||||
Alcaidesa Servicios, S.A. | Spain | — | 44.17% | 44.17% | SERVICES | 1 | 1 | — | ||||||||||||||
Allfunds Bank, S.A. | Spain | — | 50.00% | 50.00% | BANKING | 91 | 39 | 16 | ||||||||||||||
Anekis, S.A. | Spain | 24.75% | 24.75% | 49.51% | ADVERTISING | 2 | 2 | — | ||||||||||||||
Arena Communications Network, S.L. (b) | Spain | 20.00% | — | 20.00% | ADVERTISING | 18 | — | — | ||||||||||||||
Asajanet Servicios Agropecuarios, S.L. | Spain | 30.00% | — | 30.00% | INTERNET | 1 | 1 | — | ||||||||||||||
Attijari Factoring Maroc, S.A. (b) | Morocco | — | 25.00% | 25.00% | FACTORING | 26 | 3 | — | ||||||||||||||
Attijari International Bank Société Anonymé (b) | Morocco | 50.00% | — | 50.00% | BANKING | 54 | 4 | — | ||||||||||||||
Attijariwafa Bank Société Anonyme (b) | Morocco | — | 14.55% | 14.55% | BANKING | 10,845 | 1,022 | 112 | ||||||||||||||
Banco BPI, S.A. (consolidated) (b) | Portugal | — | 5.85% | 5.87% | BANKING | 30,159 | 1,237 | 251 | ||||||||||||||
Banco Internacional da Guiné-Bissau, S.A. (d) | Guinea-Bissau | — | 48.86% | 49.00% | BANKING | 12 | (30 | ) | (1 | ) | ||||||||||||
Base Central — Rede Serviços Imobiliarios, S.A. | Portugal | — | 49.80% | 49.80% | PROPERTY | 1 | 2 | (1 | ) | |||||||||||||
Benim — Sociedade Imobiliária, S.A. (b) | Portugal | — | 24.93% | 25.00% | PROPERTY | 12 | 8 | — | ||||||||||||||
Bolsas y Mercados Españoles, Sociedad Holding de Mercados y Sistemas Financieros, S.A. (consolidated) (b) | Spain | 1.30% | 5.57% | 7.29% | FINANCIAL SERVICES | 3,215 | 360 | 94 | ||||||||||||||
Cantabria Capital, SGECR, S.A. | Spain | 50.00% | — | 50.00% | VENTURE CAPITAL MANAGEMENT | — | — | — | ||||||||||||||
Carnes Estelles, S.A. | Spain | — | 18.93% | 21.41% | FOOD | 28 | 8 | — | ||||||||||||||
Cartera del Norte, S.A. | Spain | — | 31.91% | 36.09% | FINANCE | 1 | 1 | — | ||||||||||||||
Centradia Group, Ltd. (b) | United Kingdom | 30.45% | — | 30.45% | ADVISORY SERVICES | — | 1 | — | ||||||||||||||
Centro de Compensación Automatizado, S.A. | Chile | — | 25.32% | 33.00% | PAYMENT SYSTEMS | 1 | 1 | — | ||||||||||||||
Centro para el Desarrollo, Investigación y Aplicación de Nuevas Tecnologías, S.A. | Spain | — | 43.33% | 49.00% | TECHNOLOGY | 1 | 1 | — | ||||||||||||||
Companhia Energética de São Paulo | Brazil | — | 9.04% | 9.22% | ENERGY | 6,926 | 2,582 | (70 | ) | |||||||||||||
Compañía Concesionaria del Túnel de Soller, S.A. | Spain | — | 28.91% | 32.70% | CONSTRUCTION | 66 | 17 | — | ||||||||||||||
Compañía Española de Petróleos, S.A. (consolidated) (b) | Spain | 27.92% | 2.07% | 29.99% | OIL REFINING | 8,475 | 3,692 | 829 | ||||||||||||||
Comprarcasa Servicios Inmobiliarios, S.A. | Spain | — | 47.50% | 47.50% | PROPERTY | 1 | 2 | — | ||||||||||||||
Consorcio Credicard, C.A. | Venezuela | — | 32.80% | 33.33% | CARDS | 45 | 10 | 7 | ||||||||||||||
Consorcio Mexicano de Aseguradores de Crédito, S.A. | Spain | 40.25% | — | 40.25% | CREDIT INSURANCE | 4 | 4 | — | ||||||||||||||
Consultores de Recursos de Marketing, S.L. | Spain | 0.01% | 22.57% | 22.58% | MARKET RESEARCH | 8 | 3 | — | ||||||||||||||
Corporación Suiche 7B, C.A. | Venezuela | — | 31.75% | 32.26% | CARDS | 5 | 3 | 1 | ||||||||||||||
Cuzco Motor, S.A. | Spain | — | 24.50% | 24.50% | AUTOMOTIVE | 6 | 5 | 1 | ||||||||||||||
Dispega, S.L. | Spain | — | 33.17% | 33.17% | AUTOMOTIVE | — | — | — | ||||||||||||||
Ensafeca Holding Empresarial, S.L. | Spain | — | 31.82% | 31.82% | HOLDING COMPANY | 23 | 23 | — | ||||||||||||||
Espais Promocat, S.L. | Spain | — | 44.17% | 50.00% | PROPERTY | 28 | 2 | — | ||||||||||||||
Estrella Servi-Rent, S.A. | Spain | — | 49.00% | 49.00% | AUTOMOTIVE | — | — | — | ||||||||||||||
FC2Egestión, S.L. | Spain | — | 50.00% | 50.00% | ENVIRONMENTAL MANAGEMENT | — | — | — | ||||||||||||||
Fer Automoción, S.L. | Spain | — | 33.17% | 33.17% | AUTOMOTIVE | 1 | 1 | — | ||||||||||||||
Fertota, S.A. | Spain | — | 33.17% | 33.17% | AUTOMOTIVE | 1 | 1 | — | ||||||||||||||
Ferwagen, S.L. | Spain | — | 33.17% | 33.17% | AUTOMOTIVE | 2 | 2 | — | ||||||||||||||
Fidelización de Consumidores, S.A. | Spain | — | 39.60% | 39.60% | HOLDING COMPANY | — | — | — | ||||||||||||||
Fondo de Titulización de Activos UCI 11 | Spain | — | (h) | — | SECURITIZATION | — | — | — | ||||||||||||||
Fondo de Titulización de Activos UCI 14 | Spain | — | (h) | — | SECURITIZATION | — | — | — | ||||||||||||||
Fondo de Titulización de Activos UCI 15 | Spain | — | (h) | — | SECURITIZATION | — | — | — | ||||||||||||||
Fondo de Titulización Hipotecaria UCI 10 | Spain | — | (h) | — | SECURITIZATION | — | — | — | ||||||||||||||
Fondo de Titulización Hipotecaria UCI 12 | Spain | — | (h) | — | SECURITIZATION | — | — | — | ||||||||||||||
Fondo de Titulización Hipotecaria UCI 16 | Spain | — | (h) | — | SECURITIZATION | — | — | — | ||||||||||||||
Forision Zweite Vermögensverwaltung S.à.r.l (i) | Luxembourg | — | 24.12% | — | HOLDING COMPANY | — | — | — | ||||||||||||||
Grupo Alimentario de Exclusivas, S.A. | Spain | — | 35.78% | 40.46% | FOOD | 4 | — | — | ||||||||||||||
Grupo Fernández Alvariño, S.L. | Spain | — | 33.17% | 33.17% | AUTOMOTIVE | 6 | 6 | — | ||||||||||||||
Grupo Ferrovial, S.A. (b) | Spain | 2.09% | 1.02% | 3.25% | CONSTRUCTION | 21,412 | 2,637 | 388 | ||||||||||||||
Grupo Financiero Galicia, S.A. (consolidated) (b) | Argentina | — | 6.67% | 6.67% | BANKING | 7,139 | 423 | 30 | ||||||||||||||
Grupo Konecta Maroc S.A.R.L. à associé unique | Morocco | — | 44.25% | 44.25% | TELEMARKETING | — | — | — | ||||||||||||||
Grupo Conecta Net, S.L. | Spain | — | 44.25% | 44.25% | HOLDING COMPANY | 13 | 3 | -1 | ||||||||||||||
Habitat Elpi, S.L. | Spain | — | 44.17% | 50.00% | PROPERTY | 4 | 4 | — | ||||||||||||||
Hipoteca Internet, S.L. | Spain | — | 50.00% | 50.00% | SERVICES | — | — | — | ||||||||||||||
HLC — Centrais de Cogeraçao, S.A. (c) | Portugal | — | 24.45% | 24.49% | ELECTRICITY | 2 | -2 | -2 | ||||||||||||||
Hyunfer Automoción, S.L. | Spain | — | 33.17% | 33.17% | AUTOMOTIVE | — | — | — | ||||||||||||||
Iberian Peninsula Proyect, S.L. | Spain | — | 24.50% | 24.50% | AUTOMOTIVE | 11 | 11 | — | ||||||||||||||
Imperial Holding, SCA (i) | Luxembourg | — | 34.87% | 34.87% | HOLDING COMPANY | — | — | — | ||||||||||||||
Inmobiliaria Sitio de Baldeazores, S.A. | Spain | — | 44.17% | 50.00% | PROPERTY | 13 | 2 | — | ||||||||||||||
Intereuropa Bank, R.T. (consolidated) (b) | Hungary | — | 9.99% | 9.99% | BANKING | 962 | 53 | 10 | ||||||||||||||
Kassadesing 2005, S.L. | Spain | — | 44.17% | 50.00% | PROPERTY | 29 | 8 | — | ||||||||||||||
Konecta Activos Inmobiliarios, S.L. | Spain | — | 45.62% | 45.62% | PROPERTY | — | — | — | ||||||||||||||
Konecta Advertising, S.L. | Spain | — | 22.57% | 22.57% | ADVERTISING | — | — | — | ||||||||||||||
Konecta BTO Contactcenter, S.A. | Spain | — | 44.25% | 44.25% | MARKETING | 3 | 3 | — |
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% of Ownership Held | % of | Millions of Euros (a) | ||||||||||||||||||||
by the Bank | Voting | Capital and | Profit (Loss) | |||||||||||||||||||
Company | Location | Direct | Indirect | Rights (f) | Line of Business | Assets | Reserves | for the Year | ||||||||||||||
Konecta Canarias, S.A. | Spain | — | 44.25% | 44.25% | MARKETING | 5 | 2 | 3 | ||||||||||||||
Konecta Centro Especial de Empleo Madrid, S.L. | Spain | — | 44.25% | 44.25% | TELEMARKETING | — | — | — | ||||||||||||||
Konecta Centro Especial de Empleo Sevilla, S.L. | Spain | — | 44.25% | 44.25% | TELEMARKETING | — | — | — | ||||||||||||||
Konecta Centro Especial de Empleo, S.A. | Spain | — | 44.25% | 44.25% | MARKET RESEARCH | 3 | 1 | 2 | ||||||||||||||
Konecta Chile, S.A. | Chile | — | 44.25% | 44.25% | SERVICES | — | — | — | ||||||||||||||
Konecta Field Marketing, S.A.U. | Spain | — | 44.25% | 44.25% | HOLDING COMPANY | 1 | — | — | ||||||||||||||
Konecta Legal and Collections, S.A. | Spain | — | 44.25% | 44.25% | TEMPORARY EMPLOYMENT AGENCY | — | — | — | ||||||||||||||
Konecta Portugal, Lda. | Portugal | — | 44.25% | 44.25% | MARKETING | — | — | — | ||||||||||||||
Konecta Selección, S.L. | Spain | — | 44.25% | 44.25% | SERVICES | — | — | — | ||||||||||||||
Konecta Servicios Administrativos y Tecnológicos, S.L. | Spain | — | 44.25% | 44.25% | EVENT ORGANIZATION | — | — | — | ||||||||||||||
Konecta Servicios de Empleo ETT, S.A. | Spain | — | 44.25% | 44.25% | TEMPORARY EMPLOYMENT AGENCY | 1 | — | — | ||||||||||||||
Konecta Servicios Integrales de Marketing, S.L. | Spain | — | 44.25% | 44.25% | HOLDING COMPANY | — | — | — | ||||||||||||||
Konecta Telegestión, S.L. | Spain | — | 44.25% | 44.25% | TELEMARKETING | 1 | 1 | — | ||||||||||||||
Konectanet Andalucia, S.L. | Spain | — | 44.25% | 44.25% | SERVICES | — | — | — | ||||||||||||||
Konectanet Comercialización, S.L. | Spain | — | 44.22% | 44.22% | MARKETING | — | — | — | ||||||||||||||
Layna Auto, S.L. | Spain | — | 49.00% | 49.00% | AUTOMOTIVE | 5 | 5 | — | ||||||||||||||
Layna Inversiones Galicia, S.L. | Spain | — | 49.00% | 49.00% | HOLDING COMPANY | 10 | 8 | — | ||||||||||||||
Layna Inversiones, S.L. | Spain | — | 49.00% | 49.00% | HOLDING COMPANY | 39 | 38 | 1 | ||||||||||||||
Layna Patrimonial, S.L. | Spain | — | 49.00% | 49.00% | PROPERTY | 7 | 6 | — | ||||||||||||||
Maxamcorp Holding, S.L. | Spain | — | 22.62% | 22.62% | HOLDING COMPANY | 152 | 133 | 20 | ||||||||||||||
Medimobiliario Ediçoes Period. e Multimedia, S.A | Portugal | — | 29.38% | 29.38% | PROPERTY | — | — | — | ||||||||||||||
Norchem Holdings é Negocios, S.A. | Brazil | — | 21.31% | 21.75% | HOLDING COMPANY | 78 | 20 | 6 | ||||||||||||||
Norchem Participaçoes e Consultoría, S.A. | Brazil | — | 48.99% | 50.00% | CONSULTING | 19 | 13 | 2 | ||||||||||||||
Omega Financial Services GmbH | Germany | — | 50.00% | 50.00% | HOLDING COMPANY | 1 | — | 1 | ||||||||||||||
Operadora de Activos Alfa, S.A. de C.V. | Mexico | — | 49.80% | 49.80% | FINANCE | 3 | 2 | 1 | ||||||||||||||
Operadora de Activos Beta, S.A. de C.V. | Mexico | — | 49.99% | 49.99% | FINANCE | 3 | 2 | 1 | ||||||||||||||
Oportunity Center, S.L. | Spain | — | 44.25% | 44.25% | SERVICES | — | — | — | ||||||||||||||
Petroquímica União, S.A. (consolidated) (b) | Brazil | — | 4.95% | 2.02% | CHEMICALS | 560 | 234 | 29 | ||||||||||||||
Plus Auto Rent, S.L. | Spain | — | 33.17% | 33.17% | AUTOMOTIVE | — | — | — | ||||||||||||||
Premiun Fer, S.A. | Spain | — | 33.17% | 33.17% | AUTOMOTIVE | — | — | — | ||||||||||||||
Prodesur Mediterráneo, S.L. | Spain | — | 44.17% | 50.00% | PROPERTY | 27 | 11 | — | ||||||||||||||
Programa Multi Sponsor PMS, S.A. (b) | Spain | 24.75% | 24.75% | 49.51% | ADVERTISING | 4 | 4 | — | ||||||||||||||
Promofon, S.A.U. | Spain | — | 22.57% | 22.57% | MARKET RESEARCH | 6 | 6 | — | ||||||||||||||
PSA Finance PLC | United Kingdom | — | 50.00% | 50.00% | LEASING | 16 | 12 | 6 | ||||||||||||||
Puntoform, S.L. | Spain | — | 44.25% | 44.25% | TRAINING | — | — | — | ||||||||||||||
Q’Auto, S.A. | Spain | — | 24.50% | 24.50% | AUTOMOTIVE | 3 | 3 | — | ||||||||||||||
Quer Motor, S.A. | Spain | — | 24.50% | 24.50% | AUTOMOTIVE | 2 | 2 | — | ||||||||||||||
Querauto, S.A. | Spain | — | 24.50% | 24.50% | AUTOMOTIVE | 1 | 1 | — | ||||||||||||||
Querdiler, S.L. | Spain | — | 24.50% | 24.50% | AUTOMOTIVE | — | — | — | ||||||||||||||
Quiero Televisión, S.A. | Spain | — | 31.82% | 31.82% | TELECOMMUNICATIONS | 9 | 205 | -198 | ||||||||||||||
Quisqueya 12, Inc. | Puerto Rico | — | 50.00% | 50.00% | PROPERTY | 1 | 3 | — | ||||||||||||||
R. Benet, S.A. | Spain | — | 49.00% | 49.00% | AUTOMOTIVE | 8 | 7 | — | ||||||||||||||
Recambios Quer, S.L. | Spain | — | 24.50% | 24.50% | AUTOMOTIVE | — | — | — | ||||||||||||||
Redbanc, S.A. | Chile | — | 25.32% | 33.00% | CARDS | 10 | 4 | 1 | ||||||||||||||
Reicomsa, S.A. | Spain | — | 24.50% | 24.50% | AUTOMOTIVE | 2 | 2 | — | ||||||||||||||
Reintegra, S.A. | Spain | — | 45.00% | 45.00% | HOLDING COMPANY | 2 | 2 | — | ||||||||||||||
Salvador Fernández de Automoción, S.L. | Spain | — | 33.17% | 33.17% | AUTOMOTIVE | 2 | 1 | — | ||||||||||||||
San Paolo IMI, S.p.A. (consolidated) (b) | Italy | — | 3.63% | 3.63% | BANKING | 211,157 | 11,500 | 1,983 | ||||||||||||||
Sertea, S.A. | Spain | — | 33.17% | 33.17% | AUTOMOTIVE | — | — | — | ||||||||||||||
Servicio Pan Americano de Protección, S.A. de C.V. | Mexico | — | 15.12% | 20.19% | SECURITIES COMPANY | 149 | 86 | 3 | ||||||||||||||
Servicios Financieros Enlace S.A. de C.V. | El Salvador | 21.48% | — | 21.48% | FINANCE | 2 | 1 | — | ||||||||||||||
Shinsei Bank, Ltd. (consolidated) (e) | Japan | 0.12% | 4.69% | 4.82% | BANKING | 67,711 | 6,154 | 547 | ||||||||||||||
Sociedad Interbancaria de Depósitos de Valores, S.A. | Chile | — | 22.25% | 29.00% | SECURITIES DEPOSITORY INSTITUTION | 2 | 1 | — | ||||||||||||||
Sociedad Operadora de la Cámara de Compensación de Pagos de Alto Valor, S.A. | Chile | — | 13.97% | 18.20% | SERVICES | 6 | 4 | 1 | ||||||||||||||
Sovereign Bancorp, Inc. (consolidated) (b) | United States | 24.83% | — | 24.83% | BANKING | 53,979 | 4,352 | 573 | ||||||||||||||
Técnicas de Reparación Rafer, S.L. | Spain | — | 33.17% | 33.17% | AUTOMOTIVE | — | — | — | ||||||||||||||
The HSH Coinvest (Cayman) Trust-B (i) | Cayman Islands | — | 24.20% | — | HOLDING COMPANY | — | — | — | ||||||||||||||
Tramitación Externa, S.A. | Spain | — | 25.00% | 25.00% | FINANCE | — | 1 | — | ||||||||||||||
Transbank, S.A. | Chile | — | 25.32% | 33.00% | CARDS | 156 | 6 | 1 | ||||||||||||||
Transolver Finance EFC, S.A. | Spain | — | 50.00% | 50.00% | LEASING | 215 | 27 | 2 | ||||||||||||||
Turyocio Viajes y Fidelización, S.A. | Spain | — | 32.21% | 32.21% | TRAVEL | 1 | — | — | ||||||||||||||
U.C.I., S.A. | Spain | 50.00% | — | 50.00% | MORTGAGE LOANS | 103 | 111 | 1 | ||||||||||||||
UCI Servicios Inmobiliarios y Profesionales, S.L. | Spain | — | 50.00% | 50.00% | FINANCE | — | — | — | ||||||||||||||
UFI Servizi S.r.l. | Italy | — | 16.22% | 23.17% | SERVICES | — | — | — | ||||||||||||||
Unión de Créditos Inmobiliarios, S.A., EFC | Spain | — | 50.00% | 50.00% | FINANCE | 2,011 | 138 | 48 | ||||||||||||||
Via Comercial de Automóviles, S.L. | Spain | — | 33.17% | 33.17% | AUTOMOTIVE | — | — | — |
(a) | Amounts per the books of each company generally at December 31, 2005, unless otherwise stated, since the financial statements have not yet been authorized for issue. The data on foreign companies were translated to euros at the year-end exchange rates. | |
(b) | Data from the latest approved financial statements at December 31, 2004. | |
(c) | Data from the latest approved financial statements at December 31, 2003. | |
(d) | Company in liquidation at December 31, 2005. | |
(e) | Data from the latest approved financial statements at March 31, 2005. | |
(f) | Pursuant to Article 3 of Royal Decree 1815/1991, of December 20, approving the rules for the preparation of consolidated financial statements, in order to determine voting rights, the voting rights relating to subsidiaries or to other parties acting in their own name but on behalf of certain Group companies were added to the voting rights directly held by the Parent. Accordingly, the number of votes corresponding to the Parent in relation to companies over which it exercises indirect control, is the number corresponding to each subsidiary holding a direct ownership interest in such companies. | |
(g) | Excluding the Group companies listed in Exhibit I. |
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Millions of Euros (a) | ||||||||||||||||||||||||||||||||
Profit | ||||||||||||||||||||||||||||||||
% of Ownership | (Loss) | Other | Amount of | |||||||||||||||||||||||||||||
Held by the Bank | for the | Preference | Profit | Ownership | ||||||||||||||||||||||||||||
Company | Location | Direct | Indirect | Line of Business | Capital | Reserves | Year | Dividends | (Loss) | Interest | ||||||||||||||||||||||
Abbey National Capital Trust I | United States | — | (b) | FINANCE | — | — | — | — | — | — | ||||||||||||||||||||||
Banesto Holdings, Ltd. | Guernsey | — | 88.42% | SECURITIES INVESTMENT | — | 51 | 6 | 6 | — | — | ||||||||||||||||||||||
Banesto Preferentes, S.A. | Spain | — | 88.42% | FINANCE | — | — | 4 | 4 | — | — | ||||||||||||||||||||||
Pinto Totta International Finance, Limited | Cayman Islands | — | 49.86% | FINANCE | — | — | 15 | 15 | — | — | ||||||||||||||||||||||
Santander Finance Capital, S.A. (Sole-shareholder company) | Spain | 100.00% | — | FINANCE | — | — | 90 | 90 | — | — | ||||||||||||||||||||||
Santander Finance Preferred, S.A. (Sole-shareholder company) | Spain | 100.00% | — | FINANCE | — | — | 32 | 32 | — | — | ||||||||||||||||||||||
Totta & Açores Financing, Limited | Cayman Islands | — | 99.71% | FINANCE | — | — | 20 | 20 | — | — |
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F-220
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1. | Banco Santander Banespa, S.A. (Banespa) |
a) | Number of equity instruments held by the Group | ||
The Santander Group holds 65,398,684,315 ordinary shares and 55,259,160,963 preference shares through its subsidiaries Grupo Empresarial Santander, S.L. and Santander Seguros, S.A. The shares composing the share capital of Banespa have no par value. | |||
The preference shares have no voting rights and are not convertible into ordinary shares. However, they have the following advantages: |
1. | Their dividends are 10% higher than those on ordinary shares. | ||
2. | Priority in the distribution of dividends. | ||
3. | Participation in capital increases on the same terms as ordinary shares. | ||
4. | Priority in the reimbursement of capital in the event of the dissolution of the company. |
There is no unpaid capital. | |||
b) | Capital increases in progress | ||
No approved capital increases are in progress. | |||
c) | Capital authorized by the shareholders at the Annual General Meeting | ||
The company is authorized to increase share capital, subject to approval by the Board of Directors but without the need to amend the bylaws, up to a limit of 250,000,000,000 shares (125,000,000,000 ordinary shares and 125,000,000,000 preference shares). At present the share capital consists of 123,156,120,640 shares (65,892,964,409 ordinary shares and 57,263,156,231 preference shares). | |||
d) | Rights on founder’s shares, “rights” bonds, convertible debentures and similar securities or rights | ||
There are no rights on founder’s shares, “rights” bonds, convertible debentures and similar securities or rights. | |||
e) | Specific circumstances that restrict the availability of reserves | ||
The only restriction on the availability of Banespa’s reserves relates to the legal reserve (restricted reserves), which can only be used to offset losses or increase capital. | |||
f) | Non-Group entities which hold, directly or through subsidiaries, 10% or more of equity | ||
Not applicable. | |||
g) | Listed equity instruments | ||
All the shares are listed on the São Paulo Stock Exchange (Bovespa). |
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2. | Banco Español de Crédito, S.A. (Banesto) |
a) | Number of equity instruments held by the Group | ||
The Parent and its subsidiaries hold 614,009,291 fully subscribed and paid ordinary shares of€0.79 par value each, all of which have the same voting and dividend rights. | |||
b) | Capital increases in progress | ||
No approved capital increases are in progress. | |||
c) | Capital authorized by the shareholders at the Annual General Meeting | ||
Not applicable. | |||
d) | Rights on founder’s shares, “rights” bonds, convertible debentures and similar securities or rights | ||
At December 31, 2006, no shares with these characteristics had been issued. | |||
e) | Specific circumstances that restrict the availability of reserves | ||
The legal reserve can be used to increase capital provided that the remaining reserve balance does not fall below 10% of the increased share capital amount (10% of any net profit companies may make each year must be transferred to the legal reserve until the balance of this reserve reaches at least 20% of the share capital). Pursuant to the Spanish Companies Law, a restricted reserve has been recorded for an amount equal to the carrying amount of the Banesto shares owned by subsidiaries. | |||
The revaluation reserve recorded pursuant to Royal Decree-Law 7/1996, of June 7, can be used to increase capital. | |||
f) | Non-Group entities which hold, directly or through subsidiaries, 10% or more of equity | ||
Not applicable. | |||
g) | Listed equity instruments | ||
All the shares are listed on the Spanish Stock Exchanges. |
3. | Banco Santander Totta, S.A. (Totta) |
a) | Number of equity instruments held by the Group | ||
The Group holds 574,356,881 ordinary shares through Santander Totta, SGPS and 14,593,315 ordinary shares through Taxagest Sociedade Gestora de Participaçoes Sociais, S.A., all of which have a par value of€1 each, are fully subscribed and paid and have the same voting and dividend rights. | |||
b) | Capital increases in progress | ||
No approved capital increases are in progress. | |||
c) | Capital authorized by the shareholders at the Annual General Meeting | ||
Not applicable. | |||
d) | Rights on founder’s shares, “rights” bonds, convertible debentures and similar securities or rights | ||
At December 31, 2006, no shares with these characteristics had been issued. |
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e) | Specific circumstances that restrict the availability of reserves | ||
Under Article 296 of the Companies’ Code, the legal and merger reserves can only be used to offset losses or to increase capital. | |||
Fixed asset revaluation reserves are regulated by Decree-Law 31/1998, which provides for the offset of losses or capital increases for the amounts at which the underlying asset is depreciated, amortized or sold. | |||
f) | Non-Group entities which hold, directly or through subsidiaries, 10% or more of equity | ||
Not applicable. | |||
g) | Listed equity instruments | ||
Totta’s shares are not listed. |
4. | Banco Santander Chile |
a) | Number of equity instruments held by the Group | ||
The Group holds 66,822,519,695 ordinary shares through Santander Chile Holding, S.A., 78,108,391,607 ordinary shares through Teatinos Siglo XXI, S.A. and 16,577 ordinary shares through Santander Inversiones Limitada (Chile), all of which have no par value, are fully subscribed and paid and have the same voting and dividend rights. | |||
b) | Capital increases in progress | ||
No approved capital increases are in progress. | |||
c) | Capital authorized by the shareholders at the Annual General Meeting | ||
At December 31, 2004, the bylaw-stipulated share capital amounted to CLP 719,974,175,412, which, following the index-linked adjustment at December 31, 2006, amounted to CLP 761,853,230,061. However, each year the shareholders at the Annual General Meeting must approve the balance sheet at December 31, of the previous year and, therefore, approve the share capital amount. | |||
d) | Rights on founder’s shares, “rights” bonds, convertible debentures and similar securities or rights | ||
At December 31, 2006, no shares with these characteristics had been issued. | |||
e) | Specific circumstances that restrict the availability of reserves | ||
Remittances to foreign investors in relation to investments made under the Decree-Law 600 Statute of Foreign Investment, of 1974, and the amendments thereto, require the prior authorization of the Foreign Investment Committee. | |||
f) | Non-Group entities which hold, directly or through subsidiaries, 10% or more of equity | ||
Not applicable. | |||
g) | Listed equity instruments | ||
All the shares are listed on the Chilean Stock Exchange and, through American Depositary Receipts (ADRs), on the New York Stock Exchange. |
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5. | Banco Santander, S.A., Institución de Banca Múltiple, Grupo Financiero Santander |
a) | Number of equity instruments held by the Group | ||
The Santander Group holds 50,783,217,691 series “F” ordinary shares and 9,786,609,109 series “B” ordinary shares through Grupo Financiero Santander Serfín, S.A. de C.V. The shares of these two series have identical par values, are fully subscribed and paid and have the same voting and dividend rights. | |||
b) | Capital increases in progress | ||
No approved capital increases are in progress. | |||
c) | Capital authorized by the shareholders at the Annual General Meeting | ||
Not applicable. | |||
d) | Rights on founder’s shares, “rights” bonds, convertible debentures and similar securities or rights | ||
At December 31, 2006, the entity had issued USD 300 million of unsecured preferred subordinated debentures (300,000 debentures), subscribed by Bank of America and the Bank, which are voluntarily convertible into series “B” shares. These debentures are not registered in the National Securities Register and, therefore, they cannot be subject to a public offering. | |||
e) | Specific circumstances that restrict the availability of reserves | ||
The institution is subject to a legal requirement that at least 10% of net profit for the year be transferred to a capital reserve fund until the balance of the fund reaches the paid-in share capital amount. The capital reserve fund can only be distributed to shareholders as dividends in the form of shares. | |||
f) | Non-Group entities which hold, directly or through subsidiaries, 10% or more of equity | ||
Not applicable. | |||
g) | Listed equity instruments | ||
The company does not have any equity instruments listed on the stock market. |
6. | Abbey |
a) | Number of equity instruments held by the Group | ||
The Group holds 1,485,893,636 fully subscribed and paid ordinary shares with a par value of GBP 0.10 each, all of which have the same voting and dividend rights. | |||
b) | Capital increases in progress | ||
No approved capital increases are in progress. | |||
c) | Capital authorized by the shareholders at the Annual General Meeting | ||
The company is authorized to increase share capital, subject to approval by the Board of Directors, up to a limit of GBP 175,000,000 (1,750,000,000 ordinary shares), GBP 1,000,000,000 of sterling preference shares (1,000,000,000 shares), USD 10,080,000 of US dollar preference shares (1,008,000,000 shares) and€10,000,000 of euro preference shares (1,000,000,000 shares). | |||
d) | Rights on founder’s shares, “rights” bonds, convertible debentures and similar securities or rights |
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Abbey has issued GBP 200 million of debentures (10.0625% subordinated debentures convertible into equity) exchangeable for sterling preference shares with a par value of GBP 1 each, at Abbey’s discretion. The exchange can be made at any time, provided the holders are given between 30 and 60 days’ notice. | |||
e) | Specific circumstances that restrict the availability of reserves | ||
Not applicable. | |||
f) | Non-Group entities which hold, directly or through subsidiaries, 10% or more of equity | ||
Not applicable. |
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Outstanding amount in | ||||||||||||||||||||||||||||||
Euro thousand | million | Annual | ||||||||||||||||||||||||||||
Issuer | 2006 | 2005 | 2004 | Currency | 2006 | 2005 | 2004 | Interest rate | Maturity Date | |||||||||||||||||||||
Banco Santander Central Hispano, S.A.- | ||||||||||||||||||||||||||||||
Debentures-October 1993 | 117,798 | 117,798 | 117,798 | Euro | — | — | — | 8.75% | October 2008 | |||||||||||||||||||||
Debentures- November 1993 | 173,973 | 180,304 | 180,304 | Euro | — | — | — | 8.25% | December 2008 | |||||||||||||||||||||
Debentures- March 1994 | 47,091 | 60,251 | 60,251 | Euro | — | — | — | 7.63% | September 2009 | |||||||||||||||||||||
Territorial Bonds- July 2003 | 1,992,320 | 2,000,000 | 2,000,000 | Euro | — | — | — | 4.00% | July 2013 | |||||||||||||||||||||
Territorial Bonds- December 2003 | — | — | 1,000,000 | Euro | — | — | — | Floating | June 2005 | |||||||||||||||||||||
Territorial Bonds- February 2004 | — | 1,500,000 | 1,500,000 | Euro | — | — | — | Floating | February 2006 | |||||||||||||||||||||
Territorial Bonds- March 2004 | 1,000,000 | 1,000,000 | 1,000,000 | Euro | — | — | — | Floating | March 2009 | |||||||||||||||||||||
Territorial Bonds- April 2004 | 999,760 | 1,000,000 | 1,000,000 | Euro | — | — | — | Floating | April 2007 | |||||||||||||||||||||
Mortgage backed securities- October 2002 | 2,964,749 | 3,000,000 | 3,000,000 | Euro | — | — | — | 4.00% | October 2007 | |||||||||||||||||||||
Mortgage backed securities- March 2003 | — | 1,500,000 | 1,500,000 | Euro | — | — | — | 2.75% | March 2006 | |||||||||||||||||||||
Mortgage backed securities- September 2003 | 1,976,300 | 2,000,000 | 2,000,000 | Euro | — | — | — | 4.00% | September 2010 | |||||||||||||||||||||
Mortgage backed securities- December 2003 | 1,497,600 | 1,500,000 | 1,500,000 | Euro | — | — | — | 3.75% | December 2008 | |||||||||||||||||||||
Mortgage backed securities- March 2004 | 498,140 | 500,000 | 500,000 | Euro | — | — | — | 3.25% | March 2009 | |||||||||||||||||||||
Mortgage backed securities- July 2004 | 1,484,235 | 1,500,000 | 1,500,000 | Euro | — | — | — | 4.50% | July 2016 | |||||||||||||||||||||
Mortgage backed securities — February 2005 | 1,978,028 | 2,000,000 | — | Euro | — | — | — | 3.25% | February 2012 | |||||||||||||||||||||
Mortgage backed securities — April 2005 | 987,860 | 1,000,000 | — | Euro | — | — | — | 4.00% | April 2020 | |||||||||||||||||||||
Mortgage backed securities — September 2005 | 1,480,800 | 1,500,000 | — | Euro | — | — | — | 2.50% | January 2011 | |||||||||||||||||||||
Mortgage backed securities — September 2005 | 2,467,825 | 2,500,000 | — | Euro | — | — | — | 3.13% | September 2015 | |||||||||||||||||||||
Mortgage backed securities — February 2006 | 2,990,940 | — | — | Euro | — | — | — | 3.50% | February 2014 | |||||||||||||||||||||
Mortgage backed securities — February 2006 | 1,485,045 | — | — | Euro | — | — | — | 3.88% | February 2026 | |||||||||||||||||||||
Mortgage backed securities — September 2006 | 1,492,830 | — | — | Euro | — | — | — | 3.750% | September 2011 | |||||||||||||||||||||
Mortgage backed securities — September 2006 | 1,498,170 | — | — | Euro | — | — | — | 4.125% | January 2017 | |||||||||||||||||||||
Securitisation bonds — 2004 | 3,260,484 | 1,568,566 | 1,575,651 | Euro | — | — | — | Floating | From 2037 to 2042 | |||||||||||||||||||||
Securitisation bonds — 2005 | 1,280,577 | 1,104,277 | — | Euro | — | — | — | Floating | November 2038 | |||||||||||||||||||||
Securitisation bonds — 2006 | 4,373,740 | — | — | Euro | — | — | — | From 3.87% to 8.75% | From 2035 to 2050 | |||||||||||||||||||||
Own securities held and paid-in surplus | (96,841 | ) | (395,815 | ) | — | Euro | — | — | — | — | September 2015 | |||||||||||||||||||
Santander Central Hispano International Ltd. | ||||||||||||||||||||||||||||||
January 1998 | — | — | 10,325 | Euro | — | — | — | Floating | January 2005 | |||||||||||||||||||||
Issued December 1998 | 206,583 | 206,584 | 206,508 | Euro | — | — | — | Floating | April 2008 | |||||||||||||||||||||
Issued in June 1998 | 18,076 | 18,076 | 18,072 | Euro | — | — | — | Floating | January 2013 | |||||||||||||||||||||
Issued in April 1998 | 153,388 | 153,388 | 153,390 | Euro | — | — | — | Floating | February 2008 | |||||||||||||||||||||
Issued in December 1998 | 255,646 | 255,646 | 255,647 | Euro | — | — | — | 5% | August 2007 | |||||||||||||||||||||
Issued in April 1998 | — | — | 255,647 | Euro | — | — | — | 5% | February 2008 | |||||||||||||||||||||
Issued in February 1998 | 181,512 | 181,512 | 181,512 | Euro | — | — | — | 2% | February 2008 | |||||||||||||||||||||
From December 1997 to March 1998 | 396,368 | 701,266 | 1,006,164 | Euro | — | — | — | Floating | From October 2007 to February 2007 | |||||||||||||||||||||
Issued February 1998 | 304,898 | — | — | Euro | — | — | — | 2% | February 2008 | |||||||||||||||||||||
Issued in February 2002 | 31,700 | 31,700 | 31,700 | Euro | — | — | — | Floating | January 2007 | |||||||||||||||||||||
Issued in February 2002 | — | — | 500,000 | Euro | — | — | — | Floating | February 2005 | |||||||||||||||||||||
Issued from April 1998 to May 1998 | 31,116 | 32,152 | 32,407 | Swiss Francs | 50 | 50 | 50 | 3% | From April 2008 to May 2008 |
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Outstanding amount in | ||||||||||||||||||||||||||||||
Euro thousand | million | Annual | ||||||||||||||||||||||||||||
Issuer | 2006 | 2005 | 2004 | Currency | 2006 | 2005 | 2004 | Interest rate | Maturity Date | |||||||||||||||||||||
Issued June 2000 | — | — | 367,080 | U.S. Dollar | — | — | 500 | Floating | June 2005 | |||||||||||||||||||||
Issued June 2002 | — | — | 58,733 | U.S. Dollar | — | — | 80 | Floating | June 2005 | |||||||||||||||||||||
April 2000 | — | — | 322,234 | Japanese Yens | — | — | 45,000 | 1.42% | April 2005 | |||||||||||||||||||||
March 1994 | — | 335,611 | 326,215 | Pounds Sterling | — | 230 | 230 | 7.9% | March 2019 | |||||||||||||||||||||
Banesto Group | ||||||||||||||||||||||||||||||
Euro | 14,000 | 25,000 | 25,000 | Euro | — | — | — | 4.545% | August 2007 | |||||||||||||||||||||
Euro | 4,284,535 | 163,100 | 7,200 | Euro | — | — | — | Floating | From February 2007 to June 2036 | |||||||||||||||||||||
Euro | 260,593 | 104,000 | 118,635 | Euro | — | — | — | From 4% to 6% | From February 2007 to August 2011 | |||||||||||||||||||||
Euro | — | — | 2,000,000 | Euro | — | — | — | Floating | October 2005 | |||||||||||||||||||||
Euro | 1,000,000 | 1,000,000 | 1,000,000 | Euro | — | — | — | Floating | June 2009 | |||||||||||||||||||||
Euro | — | 2,000,000 | 2,000,000 | Euro | — | — | — | Floating | October 2006 | |||||||||||||||||||||
Euro | 1,041,100 | 1,000,000 | — | Euro | — | — | — | Floating | From June 2009 to February 2010 | |||||||||||||||||||||
Euro | 1,250,000 | 1,250,000 | — | Euro | — | — | — | 2.2% | October 2007 | |||||||||||||||||||||
Euro | 1,500,000 | 1,500,000 | — | Euro | — | — | — | 2.25% | October 2008 | |||||||||||||||||||||
Issued 2006 | 39,826 | — | — | Japanese Yens | 6,250 | — | — | Floating | From November 2008 to February 2011 | |||||||||||||||||||||
Issued 2006 | 18,669 | — | — | Swiss Francs | 30 | — | — | Floating | From May 2009 to September 2016 | |||||||||||||||||||||
Issued 2006 | 74,460 | — | — | Sterling Pounds | 50 | — | — | Floating | February 2009 | |||||||||||||||||||||
Issued 2006 | 105,847 | — | — | U.S. Dollar | 139.4 | — | — | Floating | From May 2010 to December 2016 | |||||||||||||||||||||
Issued 2006 | 7,593 | — | — | U.S. Dollar | 10 | — | — | 6% | June 2011 | |||||||||||||||||||||
Mortgage backed securities 2002 | 1,000,000 | 1,000,000 | 1,000,000 | Euro | — | — | — | 5.75% | March 2017 | |||||||||||||||||||||
Mortgage backed securities 2003 | 1,500,000 | 1,500,000 | 1,500,000 | Euro | — | — | — | 4% | May 2010 | |||||||||||||||||||||
Mortgage backed securities 2004 | 2,000,000 | 2,000,000 | 2,000,000 | Euro | — | — | — | 3.75% | February 2011 | |||||||||||||||||||||
Mortgage backed securities 2004 | 1,750,000 | 1,750,000 | 1,750,000 | Euro | — | — | — | 4.25% | September 2014 | |||||||||||||||||||||
Mortgage backed securities 2005 | 4,000,000 | 4,000,000 | — | Euro | — | — | — | From 2.75% to 3.5% | From September 2012 to January 2015 | |||||||||||||||||||||
Mortgage backed securities 2006 | 3,000,000 | — | — | Euro | — | — | — | From 2.5% to 4.25% | From July 2013 to January 2016 | |||||||||||||||||||||
Securitisation bonds | 951,321 | — | — | Euro | — | — | — | Floating | December 2025 | |||||||||||||||||||||
Banco Santander Chile | ||||||||||||||||||||||||||||||
Bonds | 127,133 | 176,228 | 166,028 | Chilean Pesos | 89,672 | 143,511 | 126,134 | From 7.46% to 7.76% | Various maturities | |||||||||||||||||||||
Bonds | — | — | 1,295,918 | Chilean Pesos | — | 616,423 | 984,523 | 6.35% | Various maturities | |||||||||||||||||||||
Mortgage backed securities | 732,207 | 1,018,767 | — | Chilean Pesos | 536,249 | 734,688 | — | From 6% to 6.26% | Various maturities | |||||||||||||||||||||
Bonds September 2004 | 13,245 | — | — | Chilean Pesos | 9,309 | — | — | From 6.34% to 6.36% | Various maturities | |||||||||||||||||||||
Bonds December 2004 | 305,251 | 317,758 | — | Chilean Pesos | 213,772 | 232,019 | 205,684 | Floating | December 2009 | |||||||||||||||||||||
Bonds November 2005 | 204,787 | 182,803 | — | Chilean Pesos | 146,691 | 107,354 | — | 3% | March 2010 | |||||||||||||||||||||
Bonds May / August 2006 | 145,349 | — | — | Chilean Pesos | 102,317 | — | — | From 3.75% to 4.57% | Various maturities | |||||||||||||||||||||
Bonds December 2004 | — | — | 293,132 | U.S. Dollar | — | — | 399 | Floating | December 2009 | |||||||||||||||||||||
Banco Santander Puerto Rico- | ||||||||||||||||||||||||||||||
Debentures- February 2004 | 22,779 | 26,096 | 22,025 | U.S. Dollar | 30 | 31 | 30 | 3% | January 2010 | |||||||||||||||||||||
Debentures- May 2004 | — | 5,934 | 4,722 | U.S. Dollar | — | 7 | 6.4 | Floating | May 2011 | |||||||||||||||||||||
Debentures- May 2005 | 7,594 | 8,476 | — | U.S. Dollar | 10 | 10 | — | Floating | May 2012 | |||||||||||||||||||||
Debentures- Dec 2006 | 5,776 | — | — | U.S. Dollar | 7 | — | — | 2.5% | January 2007 | |||||||||||||||||||||
Banco Santander de Negocios Portugal S.A. | ||||||||||||||||||||||||||||||
Debentures- 1997 | — | — | 799 | Euro | — | — | — | Floating | September 2005 | |||||||||||||||||||||
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Outstanding amount in | ||||||||||||||||||||||||||||||
Euro thousand | million | Annual | ||||||||||||||||||||||||||||
Issuer | 2006 | 2005 | 2004 | Currency | 2006 | 2005 | 2004 | Interest rate | Maturity Date | |||||||||||||||||||||
Banco Río de la Plata S.A.- | ||||||||||||||||||||||||||||||
Global Program 2000 | — | — | 20,091 | U.S. Dollar | — | — | 27.37 | Floating | August 2010 | |||||||||||||||||||||
Global Program 2001 | — | — | 15,302 | U.S. Dollar | — | — | 20.84 | Floating | August 2005 | |||||||||||||||||||||
Debentures —2003 | 68,236 | 104,393 | 168,851 | U.S. Dollar | 142 | 131 | 230 | From 4% to 6% | December 2009 | |||||||||||||||||||||
Global Program 2004 | — | — | 115,911 | U.S. Dollar | — | — | 157.88 | 2.26% | June 2005 | |||||||||||||||||||||
Global Program 2004 | — | 5,146 | 7,645 | U.S. Dollar | — | 6 | 10.41 | 4% | May 2006 | |||||||||||||||||||||
Banco Santander Totta, S.A. | ||||||||||||||||||||||||||||||
Debentures- from June 1998 to October 1998 | 6,584 | 6,562 | 6,568 | Euro | — | — | — | 3.71% | July 2008 | |||||||||||||||||||||
Debentures 1999 | 3,219 | 3,261 | 3,610 | Euro | — | — | — | Floating | February 2009 | |||||||||||||||||||||
Debentures 2002 | — | 21,665 | 314,450 | Euro | — | — | — | Floating | January 2006 | |||||||||||||||||||||
Debentures 2003 | 404,694 | 574,880 | 613,316 | Euro | — | — | — | Floating | From January 2007 to December 2008 | |||||||||||||||||||||
Debentures 2004 | 389,395 | 477,258 | 487,348 | Euro | — | — | — | Floating | From November 2007 to September 2012 | |||||||||||||||||||||
Debentures 2004 | 34,054 | 9,649 | 9,854 | Euro | — | — | — | 0.7% | From June 2008 February 2012 | |||||||||||||||||||||
Debentures 2005 | 727,847 | 735,846 | — | Euro | — | — | — | Floating | From March 2007 to January 2013 | |||||||||||||||||||||
Debentures 2006 | 2,639,051 | — | — | Euro | — | — | — | Floating | From May 2008 to June 2012 | |||||||||||||||||||||
Debentures 2006 | 29,981 | — | — | Euro | — | — | — | From 0.001% to 0.5% | From January 2007 to December 2011 | |||||||||||||||||||||
Debentures 2006 | 1,138,952 | — | — | U.S. Dollar | 1,500 | — | — | 5.35% | July 2011 | |||||||||||||||||||||
Totta Crédito Especializado, Instituiçao Financeira de Crédito, S.A. (IFIC) | ||||||||||||||||||||||||||||||
Debentures 1997 and 1998 | — | — | 9,976 | Euro | — | — | — | Floating | From July 2004 to October 2005 | |||||||||||||||||||||
Banco Santander Banespa S.A. | ||||||||||||||||||||||||||||||
Eurobonds 1997 | — | — | 32,910 | U.S. Dollar | — | — | 45 | 9.34% | March 2005 | |||||||||||||||||||||
Eurobonds 1997 | — | — | 255,690 | Euro | — | — | — | 8.26% | November 2005 | |||||||||||||||||||||
Eurobonds 2004 | — | — | 109,520 | U.S. Dollar | — | — | 149 | 4.504% | July 2005 | |||||||||||||||||||||
Eurobonds 2005 | 167,696 | 166,051 | — | U.S. Dollar | 456 | 456 | — | From 3% to 17.309% | From April 2008 to August 2015 | |||||||||||||||||||||
Eurobonds 2005 | 41,588 | 44,817 | — | U.S. Dollar | 55 | 53 | — | 5% | July 2008 | |||||||||||||||||||||
Eurobonds 2006 | 8,744 | — | — | U.S. Dollar | 12 | — | — | 10% | June 2007 | |||||||||||||||||||||
Eurobonds 2006 | 119,547 | — | — | U.S. Dollar | 157 | — | — | Floating | From May 2009 to August 2024 | |||||||||||||||||||||
Eurobonds 2006 | — | — | — | Brazilian Real | — | — | — | 6% | August 2024 | |||||||||||||||||||||
Debentures 2004 | — | 85,285 | 73,416 | U.S. Dollar | — | 101 | 100 | 4.054% | July 2006 | |||||||||||||||||||||
Debentures 2005 | — | 57,180 | — | U.S. Dollar | — | 67 | — | 1.02% | From January to February 2006 | |||||||||||||||||||||
Bonds 2006 | 125,344 | — | — | U.S. Dollar | 165 | — | — | Floating | Various maturities | |||||||||||||||||||||
Mortage backed securities | 51,733 | — | — | Brazilian Real | 145 | — | — | Floating | From January 2007 to May 2008 | |||||||||||||||||||||
Banco Santander Colombia S.A. | ||||||||||||||||||||||||||||||
Debentures 2005 | 38,496 | 42,419 | — | Colombian pesos | 104 | 114 | — | Floating | February 2012 | |||||||||||||||||||||
Santander Consumer Bank S.p.A. | ||||||||||||||||||||||||||||||
Debentures | — | 172,500 | 169,598 | Euro | — | — | — | Floating | January to July 2006 | |||||||||||||||||||||
Debentures | — | 6,000 | 12,000 | Euro | — | — | — | 10.1 | April 2006 | |||||||||||||||||||||
Securitisation Bonds (Golden Bar Program) | 1,184,114 | 813,553 | 916,036 | Euro | — | — | — | Floating | From October 2020 to November 2022 | |||||||||||||||||||||
Santander BanCorp | ||||||||||||||||||||||||||||||
Debentures | — | — | 8,810 | U.S. Dollar | — | — | 12 | 2% | March 2005 | |||||||||||||||||||||
Debentures June 2004 | — | 63,575 | 46,024 | U.S. Dollar | — | 75 | 63 | 6.3% | June 2032 | |||||||||||||||||||||
Debentures October 2005 | — | 42,384 | — | U.S. Dollar | — | 50 | — | 6.1% | June 2032 | |||||||||||||||||||||
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Outstanding amount in | ||||||||||||||||||||||||||||||
Euro thousand | million | Annual | ||||||||||||||||||||||||||||
Issuer | 2006 | 2005 | 2004 | Currency | 2006 | 2005 | 2004 | Interest rate | Maturity Date | |||||||||||||||||||||
Santander Consumer Bank Aktiengesellschaft | ||||||||||||||||||||||||||||||
Bonds | — | 6,109 | 141,000 | Euro | — | — | — | 3-4% | From March to September 06 | |||||||||||||||||||||
Securitisation bonds | 1,002,114 | 1,667,978 | — | Euro | — | — | — | Floating | June 2010 | |||||||||||||||||||||
Issued 2006 | 1,768,788 | — | — | Euro | — | — | — | Floating | From July 2013 to March 2014 | |||||||||||||||||||||
Santander International Debt, S.A. | ||||||||||||||||||||||||||||||
Senior Debt 2004 | 1,500,000 | 3,500,000 | 3,500,000 | Euro | — | — | — | Floating | December 2007 | |||||||||||||||||||||
Senior Debt 2004 | — | 42,384 | 36,708 | U.S. Dollar | — | 50 | 50 | Floating | December 2006 | |||||||||||||||||||||
Senior Debt 2004 | 372,301 | 364,804 | 354,585 | Pounds Sterling | 250 | 250 | 250 | Floating | December 2007 | |||||||||||||||||||||
Senior Debt 2005 | 8,052,305 | 8,995,000 | — | Euro | — | — | — | Floating | From February 2008 to September 2035 | |||||||||||||||||||||
Senior Debt 2005 | 893,521 | 955,786 | — | Pounds Sterling | 600 | 655 | — | Floating | From September 2007 to June 2009 | |||||||||||||||||||||
Senior Debt 2005 | 196,322 | 218,579 | — | Canadian Dollar | 300 | 300 | — | Floating | September 2010 | |||||||||||||||||||||
Senior Debt 2006 | 9,919,000 | — | — | Euro | — | — | — | Floating | From April 2007 to October 2029 | |||||||||||||||||||||
Senior Debt 2006 | 1,162,404 | — | — | Pounds Sterling | 750 | — | — | Floating | From February 2009 to July 2011 | |||||||||||||||||||||
Senior Debt 2006 | 68,864 | — | — | Mexican Pesos | 1,000 | — | — | Floating | January 2007 | |||||||||||||||||||||
Senior Debt 2006 | 121,489 | — | — | U.S. Dollar | 160 | — | — | Floating | From October 2009 to August 2011 | |||||||||||||||||||||
Senior Debt 2006 | 25,468 | — | — | Czech Crowm | 700 | — | — | Floating | February 2010 | |||||||||||||||||||||
Senior Debt 2006 | 89,212 | — | — | Japanese Yens | 14,000 | — | — | Floating | From February 2008 to December 2016 | |||||||||||||||||||||
Senior Debt 2006 | 60,694 | — | — | Norwegian Kroners | 500 | — | — | Floating | July 2016 | |||||||||||||||||||||
Senior Debt 2006 | 261,763 | — | — | Canadian Dollar | 400 | — | — | Floating | November 2009 | |||||||||||||||||||||
Brasil Foreign Diversified Payment Right Finance Company | ||||||||||||||||||||||||||||||
Medium Term Notes | 303,721 | 341,138 | — | U.S. Dollar | 400 | 402 | — | 5.5% | September 2011 | |||||||||||||||||||||
Santander US Debt, S.A.U. | ||||||||||||||||||||||||||||||
Senior Debt 2005 | 4,542,458 | 5,086,039 | — | U.S. Dollar | 5,500 | 6,000 | — | Floating | From October 2007 to October 2008 | |||||||||||||||||||||
Senior Debt 2006 | 3,785,383 | — | — | U.S. Dollar | 5,000 | — | — | Floating | November 2009 | |||||||||||||||||||||
Santander Consumer Finance, S.A. | ||||||||||||||||||||||||||||||
Mortgage backed securities | 1,193,952 | — | — | Euro | — | — | — | 2.54% | March 2016 | |||||||||||||||||||||
Abbey National plc | ||||||||||||||||||||||||||||||
Securitization Bonds (Holmes Funding) | ||||||||||||||||||||||||||||||
Swiss Francs | — | 699,300 | 679,711 | Swiss Francs | — | 1,150 | 1,150 | From 4.92% to 4.82% | October 2009 | |||||||||||||||||||||
Issued 2006 | 2,329,114 | — | — | Pounds Sterling | 1,564 | — | — | Floating | July 2040 | |||||||||||||||||||||
Issued 2005 | 1,489,203 | 1,459,215 | — | Pounds Sterling | 1,000 | 1,000 | — | Floating | From January 2016 to January 2021 | |||||||||||||||||||||
2000-2004 | 372,301 | 364,804 | 354,585 | Pounds Sterling | 250 | 250 | 250 | 5.41% | July 2013 | |||||||||||||||||||||
2000-2004 | 3,392,435 | 5,533,197 | 5,555,493 | Pounds Sterling | 2,293 | 3,917 | 3,917 | Floating | From July 2010 to July 2040 | |||||||||||||||||||||
Issued 2006 | 6,717,724 | — | — | U.S. Dollar | 8,439 | — | — | Floating | Various maturities | |||||||||||||||||||||
2000-2005 | 5,155,086 | 8,330,586 | 9,872,015 | U.S. Dollar | 5,922 | �� | 9,412 | 11,262 | Floating | Various maturities | ||||||||||||||||||||
Issued 2006 | 1,957,659 | — | — | Euro | — | — | — | Floating | From July 2021 to July 2040 | |||||||||||||||||||||
Issued 2005 | 754,326 | 739,136 | — | Euro | — | 740 | — | Floating | January 2021 | |||||||||||||||||||||
Issued 2000 to 2004 | — | 1,262,221 | 1,226,863 | Euro | — | 1,400 | 1,400 | From 4.82% to 4.87% | From July 2008 to October 2008 | |||||||||||||||||||||
Issued 2000 to 2004 | 3,532,849 | 4,434,450 | 4,310,231 | Euro | — | 4,753 | 4,753 | Floating | From October 2008 to July 2040 | |||||||||||||||||||||
Securitization Bonds (Hipototta) | ||||||||||||||||||||||||||||||
Hipototta Nº1 plc | 224,694 | — | — | Euro | — | — | — | Floating | From January 2007 to September 2048 | |||||||||||||||||||||
Hipototta Nº4 plc | 2,345,112 | — | — | Euro | — | — | — | Floating | From January 2007 to September 2048 |
F-229
Table of Contents
Outstanding amount in | ||||||||||||||||||||||||||||||
Euro thousand | million | Annual | ||||||||||||||||||||||||||||
Issuer | 2006 | 2005 | 2004 | Currency | 2006 | 2005 | 2004 | Interest rate | Maturity Date | |||||||||||||||||||||
Securitization Bonds (Marylebond) | ||||||||||||||||||||||||||||||
Sythetic Collateralised Debt Obligation | 101,875 | — | — | Euro | — | — | — | Floating | November 2011 | |||||||||||||||||||||
Bonds | ||||||||||||||||||||||||||||||
Issued 2006 | 17,970 | — | — | Australian Dollar | 30 | — | — | 6.47% | December 2008 | |||||||||||||||||||||
Issued 2004 | 29,950 | — | — | Australian Dollar | 50 | — | — | Floating | January 2009 | |||||||||||||||||||||
Issued 2006 | 196,218 | — | — | Canadian Dollar | 300 | — | — | Floating | June 2008 | |||||||||||||||||||||
Issued 2004-2005 | 376,084 | 768,029 | 472,100 | Canadian Dollar | 575 | 1,050 | 775 | Floating | From June 2007 to August 2007 | |||||||||||||||||||||
Issued 2004 | 8,503 | 9,826 | 35,331 | Canadian Dollar | 13 | 13 | 58 | 4% | January 2009 | |||||||||||||||||||||
2000-2004 | — | 13,545 | 35,863 | Swiss Francs | — | 21 | 55 | Floating | November 2007 | |||||||||||||||||||||
2005 | — | 52,068 | — | Swiss Francs | — | 80 | — | Floating | Febrary 2007 | |||||||||||||||||||||
Issued from 1998 to 2004 | — | — | 521,097 | Swiss Francs | — | — | 804 | From 2.25% to 2.38% | From April 2005 to December 2009 | |||||||||||||||||||||
Issued 2006 | 18,915 | — | — | Hong Kong Dollar | 194 | — | — | Floating | From June 2008 to January 2010 | |||||||||||||||||||||
Issued 2006 | 430,177 | — | — | Hong Kong Dollar | 4,412 | — | — | 4.13% - 5.33% | From November 2007 to August 2016 | |||||||||||||||||||||
Issued 2005 | 351,494 | 395,881 | — | Hong Kong Dollar | 3,605 | 860 | — | 0.1% - 5.042% | Various maturities | |||||||||||||||||||||
Issued 2005 | 56,551 | 94,630 | — | Hong Kong Dollar | 580 | 3,593 | — | Floating | From January 2007 to May 2010 | |||||||||||||||||||||
Issued 1998-2004 | 40,951 | 128,916 | 110,501 | Hong Kong Dollar | 420 | 1,170 | 1,170 | Floating | From January 2008 to October 2011 | |||||||||||||||||||||
Issued 1998-2004 | 196,661 | 263,592 | 336,494 | Hong Kong Dollar | 2,017 | 2,358 | 3,562 | 0.1% - 6.643% | Various maturities | |||||||||||||||||||||
Issued 2002 | — | 127,780 | 121,411 | Norwegian Kroners | — | 1,000 | 1,000 | 6.52% | September 2012 | |||||||||||||||||||||
Issued 1999 | 49,427 | 51,558 | 44,920 | Singapore Dollar | 100 | 100 | 100 | 5.00% | October 2009 | |||||||||||||||||||||
Issued 2005 | 53,374 | 58,123 | — | New Zealand Dollar | 100 | 100 | — | Floating | November 2007 | |||||||||||||||||||||
Issued 2004 | — | 31,449 | 28,614 | Argentinean Pesos | — | 50 | 50 | Floating | January 2009 | |||||||||||||||||||||
1995-2001 | — | 91,303 | 114,572 | Yens | — | 12,593 | 16,000 | 0% - 3.79% | From April 2007 to September 2013 | |||||||||||||||||||||
1995-2001 | 97,210 | 125,060 | 169,710 | Yens | 16,250 | 17,133 | 23,700 | Floating | From October 2007 to December 2031 | |||||||||||||||||||||
2002 | — | 140,595 | 157,536 | Yens | — | 19,000 | 22,000 | 0.20% | December 2006 | |||||||||||||||||||||
2002 | 33,148 | 30,521 | 53,706 | Yens | 5,200 | 4,140 | 7,500 | Floating | From September 2015 to September 2032 | |||||||||||||||||||||
2003 | 36,332 | 58,054 | 330,827 | Yens | 5,200 | 7,976 | 46,200 | Floating | From April 2013 to September 2033 | |||||||||||||||||||||
2004 | 3,186 | 3,621 | 3,580 | Yens | — | 502 | 500 | Floating | July 2034 | |||||||||||||||||||||
2005 | 5,100 | 5,768 | — | Yens | 800 | 800 | — | 0.010% | April 2008 | |||||||||||||||||||||
2006 | 147,253 | — | — | Yens | 23,100 | — | — | Floating | From January 2008 to November 2011 | |||||||||||||||||||||
2006 | 135,779 | — | — | Yens | 21,300 | — | — | From 0.64% to 2.15% | From November 2009 to August 2016 | |||||||||||||||||||||
Issued from 1995 to 2001 | — | 346,525 | 172,770 | U.S. Dollar | — | 408 | 235 | Floating | December 2007 | |||||||||||||||||||||
Issued from 1995 to 2001 | 69,053 | 34,260 | 58,907 | U.S. Dollar | 91 | 40 | 80 | From 0% - 4.9% | From April 2007 to November 2007 | |||||||||||||||||||||
2002 | 11,372 | 12,372 | 18,354 | U.S. Dollar | 15 | 14 | 25 | Floating | May 2012 | |||||||||||||||||||||
2002 | — | 20,927 | 32,791 | U.S. Dollar | — | 24 | 45 | From 0% - 2% | June 2007 | |||||||||||||||||||||
2003 | 178,361 | 207,959 | 308,433 | U.S. Dollar | 235 | 244 | 420 | Floating | From October 2007 to November 2013 | |||||||||||||||||||||
2003 | 62,256 | 223,091 | 267,833 | U.S. Dollar | 82 | 263 | 365 | From 0% - 3.5% | From May 2007 to September 2008 | |||||||||||||||||||||
2004 | 705,499 | 2,442,807 | 2,046,633 | U.S. Dollar | 181 | 2,860 | 2,788 | Floating | December 2014 | |||||||||||||||||||||
2004 | 11,372 | 224,050 | 213,663 | U.S. Dollar | 15 | 263 | 291 | 3.250% | October 2007 | |||||||||||||||||||||
2005 | 1,898,965 | 2,233,209 | — | U.S. Dollar | 2,505 | 2,601 | — | Floating | May 2020 | |||||||||||||||||||||
2005 | 122,063 | 666,627 | — | U.S. Dollar | 161 | 784 | — | From 3.74% - 4.16% | June 2010 | |||||||||||||||||||||
2006 | 2,610,002 | — | — | U.S. Dollar | 3,283 | — | — | Floating | From January 2007 to January 2017 | |||||||||||||||||||||
2006 | 483,368 | — | — | U.S. Dollar | 638 | — | — | From 1 % - 5.5% | From January 2007 to December 2014 | |||||||||||||||||||||
1993-2001 | 1,400,611 | 1,191,871 | 1,441,753 | Pounds Sterling | 169 | 862 | 1,017 | From 0.01% - 5.37% | From November 2007 to June 2038 | |||||||||||||||||||||
1993-2001 | 19,360 | 61,970 | 194,801 | Pounds Sterling | 13 | 42 | 137 | Floating | From July 2007 to December 2007 |
F-230
Table of Contents
Outstanding amount in | ||||||||||||||||||||||||||||||
Euro thousand | million | Annual | ||||||||||||||||||||||||||||
Issuer | 2006 | 2005 | 2004 | Currency | 2006 | 2005 | 2004 | Interest rate | Maturity Date | |||||||||||||||||||||
2002 | 192,450 | 107,573 | 3,622 | Pounds Sterling | 300 | 74 | 3 | From 0% - 4.07% | From March 2006 to June 2012 | |||||||||||||||||||||
2002 | 40,119 | 48,417 | 46,763 | Pounds Sterling | 27 | 33 | 33 | Floating | From February 2007 to June 2007 | |||||||||||||||||||||
2003 | — | 174,329 | 1,312,862 | Pounds Sterling | — | 119 | 926 | Floating | From July 2006 to December 2009 | |||||||||||||||||||||
2003 | 134,981 | 1,122,027 | 115,268 | Pounds Sterling | 91 | 769 | 81 | From 0.1% - 9.13% | From April 2007 to November 2009 | |||||||||||||||||||||
2004 | 541,626 | 563,679 | 128,927 | Pounds Sterling | 64 | 386 | 91 | 4.62% - 9.13% | From March 2007 to November 2010 | |||||||||||||||||||||
2004 | — | 240,749 | 962,629 | Pounds Sterling | — | 165 | 679 | Floating | From January 2006 to November 2010 | |||||||||||||||||||||
2005 | 258,302 | 4,766,767 | — | Pounds Sterling | 173 | 3,267 | — | From 4.41% - 4.75% | From June 2007 To November 2007 | |||||||||||||||||||||
2005 | 1,936,550 | 1,942,491 | — | Pounds Sterling | 700 | 1,331 | — | Floating | From January 2007 To November 2015 | |||||||||||||||||||||
2006 | 4,986,821 | — | — | Pounds Sterling | 3,349 | — | — | From 0.1% - 5.53% | From January 2007 to December 2012 | |||||||||||||||||||||
2006 | 1,620,897 | — | — | Pounds Sterling | 688 | — | — | Floating | From October 2007 to September 2011 | |||||||||||||||||||||
1996-2001 | 817,766 | 1,624,070 | 1,481,166 | Euro | — | — | — | From 0% to 6.75% | From January 2007 to February 2038 | |||||||||||||||||||||
1995-2001 | 499,622 | 1,203,053 | 1,168,427 | Euro | — | — | — | Floating | From January 2007 to November 2041 | |||||||||||||||||||||
2002 | 166,353 | 127,759 | 183,670 | Euro | — | — | — | Floating | From May 2007 to February 2042 | |||||||||||||||||||||
2002 | 121,275 | 81,128 | 168,420 | Euro | — | — | — | From 0% to 6.52% | From March 2006 to September 2012 | |||||||||||||||||||||
2003 | 1,026,734 | 1,764,313 | 2,658,095 | Euro | — | — | — | Floating | From May 2008 to March 2013 | |||||||||||||||||||||
2003 | — | 96,198 | 172,800 | Euro | — | — | — | From 0% to 2.45% | From January 2006 to March 2013 | |||||||||||||||||||||
2004 | — | 29,944 | 59,880 | Euro | — | — | — | From 0% To 2% | From March 2005 to June 2007 | |||||||||||||||||||||
2004 | 1,012,805 | 1,836,746 | 1,904,714 | Euro | — | — | — | Floating | From January 2007 to May 2009 | |||||||||||||||||||||
2005 | 2,049,248 | 2,102,464 | — | Euro | — | — | — | From 1.3% - 3.375% | From February 2007 to June 2015 | |||||||||||||||||||||
2005 | 320,117 | 328,598 | — | Euro | — | — | — | Floating | From March 2007 to December 2015 | |||||||||||||||||||||
2006 | 1,594,806 | — | — | Euro | — | — | — | From 0.10% to 4.41% | From February 2007 to April 2021 | |||||||||||||||||||||
2006 | 1,649,242 | — | — | Euro | — | — | — | Floating | From January 2008 to September 2014 | |||||||||||||||||||||
AN Structured Issues Limited | ||||||||||||||||||||||||||||||
Issued 2002 | 10,000 | — | — | Euro | — | — | — | Floating | July 2007 | |||||||||||||||||||||
Issued 2001-2004 | 12,744 | — | — | Yens | 2,000 | — | — | Floating | From July 2031 to July 2034 | |||||||||||||||||||||
Abbey National Funding plc | ||||||||||||||||||||||||||||||
Issued 2002 | 1,816 | — | — | Pounds Sterling | 1 | — | — | 0.01% | August 2008 | |||||||||||||||||||||
ANDSH Limited | ||||||||||||||||||||||||||||||
Issued 1989 | 2,414 | — | — | Pounds Sterling | 2 | — | — | Floating | December 2008 | |||||||||||||||||||||
Securitization Bonds | ||||||||||||||||||||||||||||||
F.T.H. UCI 10 | 168,099 | — | — | Euro | — | — | — | 3.71% | December 2014 | |||||||||||||||||||||
F.T.H. UCI 11 | 234,708 | — | — | Euro | — | — | — | 3.00% | February 2015 | |||||||||||||||||||||
F.T.H. UCI 12 | 292,890 | — | — | Euro | — | — | — | 3.67% | December 2017 | |||||||||||||||||||||
F.T.H. UCI 14 | 553,836 | — | — | Euro | — | — | — | 3.70% | March 2019 | |||||||||||||||||||||
F.T.H. UCI 15 | 584,494 | — | — | Euro | — | — | — | 3.68% | March 2020 | |||||||||||||||||||||
F.T.H. UCI 16 | 863,242 | — | — | Euro | — | — | — | 3.700% | June 2016 | |||||||||||||||||||||
F.T.A. Santander Consumer Spain Auto 06 | 1,350,000 | — | — | Euro | — | — | — | Floating | October 2016 | |||||||||||||||||||||
Altair Finance p.l.c. | 13,124 | — | — | Euro | — | — | — | Floating | August 2014 | |||||||||||||||||||||
Grupo Drive | 1,894,777 | — | — | U.S. Dollar | 2,495 | — | — | 5.05% | April 2014 | |||||||||||||||||||||
Total Validation Adjustments | 88,736 | 1,777,945 | 590,307 | |||||||||||||||||||||||||||
TOTAL | 168,661,356 | 123,566,864 | 83,020,964 |
F-231
Table of Contents
Outstanding | ||||||||||||||||||||||
Amount in | ||||||||||||||||||||||
Euro thousand | Currency | |||||||||||||||||||||
Issuer | 2006 | 2005 | 2004 | Currency | (Million) | Annual Interest Rate | Maturity Date | |||||||||||||||
Banco Santander Central Hispano, S.A.: | ||||||||||||||||||||||
May 1991 | 298,890 | 298,890 | 298,895 | Euro | — | Floating (1) | May 2011 | |||||||||||||||
April 1995 | — | — | 51,122 | Euro | — | Floating | April 2005 | |||||||||||||||
June 1995 | 60,101 | 60,101 | 60,101 | Euro | — | 12.70% | December 2010 | |||||||||||||||
December 1995 | 75,286 | 75,286 | 80,235 | Euro | — | 10.75% | December 2010 | |||||||||||||||
March 1997 | 60,101 | 60,101 | 60,101 | Euro | — | 7.38% | December 2012 | |||||||||||||||
June 1997 | 60,101 | 60,101 | 60,101 | Euro | — | 7.65% | December 2015 | |||||||||||||||
Santander Central Hispano Issuances, Ltd.: | ||||||||||||||||||||||
April 1994 | 28,121 | 28,121 | 28,121 | Euro | — | Floating | April 2009 | |||||||||||||||
June 1998 | 151,162 | 153,388 | 153,390 | Euro | — | 5.25% | June 2008 | |||||||||||||||
July 1999 | 490,510 | 500,000 | 500,000 | Euro | — | 5% | July 2009 | |||||||||||||||
March 2000 | 439,840 | 500,000 | 500,000 | Euro | — | 6% | July 2010 | |||||||||||||||
March 2001 | 500,000 | 500,000 | 500,000 | Euro | — | Floating | March 2011 | |||||||||||||||
March 2001 | 453,542 | 500,000 | 500,000 | Euro | — | 6% | March 2011 | |||||||||||||||
September 2001 | — | 500,000 | 500,000 | Euro | — | From fixed to floating (3) & (25) | September 2011 | |||||||||||||||
April 2002 | 350,000 | 350,000 | 350,000 | Euro | — | Floating | April 2012 | |||||||||||||||
April 2002 | 643,750 | 650,000 | 650,000 | Euro | — | From fixed to floating (4) | April 2012 | |||||||||||||||
April 1990 | — | — | 146,832 | U.S. Dollar | — | Floating (2) | Perpetual | |||||||||||||||
July 1990 | — | — | 293,664 | U.S. Dollar | — | Floating (2) | Perpetual | |||||||||||||||
October 1990 | — | — | 67,543 | U.S. Dollar | — | Floating (2) | Perpetual | |||||||||||||||
April 1995 | — | — | 220,248 | U.S. Dollar | — | 7.88% | April 2005 | |||||||||||||||
May 1995 | — | — | 110,124 | U.S. Dollar | — | 7.75% | May 2005 | |||||||||||||||
June 1995 | — | — | 73,416 | U.S. Dollar | — | 7.50% | June 2005 | |||||||||||||||
July 1995 | — | — | 146,832 | U.S. Dollar | — | 6.80% | July 2005 | |||||||||||||||
August 1995 | — | — | 110,124 | U.S. Dollar | — | Floating | August 2005 | |||||||||||||||
November 1995 | 151,860 | 169,535 | 146,832 | U.S. Dollar | 200 | 7% | November 2015 | |||||||||||||||
February 1996 | — | 169,535 | 146,832 | U.S. Dollar | — | 6.50% | February 2006 | |||||||||||||||
February 1996 | 227,790 | 254,302 | 220,248 | U.S. Dollar | 300 | 6% | February 2011 | |||||||||||||||
April 1996 | — | 211,918 | 183,540 | U.S. Dollar | — | 7% | April 2006 | |||||||||||||||
May 1996 | — | 169,535 | 146,832 | U.S. Dollar | — | 7.25% | May 2006 | |||||||||||||||
July 1996 | — | 190,726 | 165,186 | U.S. Dollar | — | 7.70% | July 2006 | |||||||||||||||
October 1996 | — | 127,151 | 110,124 | U.S. Dollar | — | Floating | October 2006 | |||||||||||||||
February 1997 | 113,895 | 127,151 | 110,124 | U.S. Dollar | 150 | Floating | February 2007 | |||||||||||||||
November 1999 | 474,563 | 529,796 | 458,850 | U.S. Dollar | 625 | 8% | November 2009 | |||||||||||||||
September 2000 | 759,301 | 847,673 | 734,160 | U.S. Dollar | 1,000 | 7% | September 2010 | |||||||||||||||
May 2002 | 37,965 | 42,384 | 36,708 | U.S. Dollar | 50 | Floating | May 2012 | |||||||||||||||
May 2002 | 37,965 | 42,384 | 36,708 | U.S. Dollar | 50 | Floating | May 2012 | |||||||||||||||
June 2000 | 74,250 | 76,421 | 67,380 | Singapore Dollar | 150 | 5% | June 2010 | |||||||||||||||
November 2000 | 297,841 | 291,836 | 283,663 | Pounds sterling | — | 6% | November 2010 | |||||||||||||||
Santander Consumer Bank Aktiengelsellschaft: | ||||||||||||||||||||||
Sundry issues | 78,875 | 86,989 | 115,548 | Euro | — | From 2.83% to 9.5% | From August 2006 to January 2016 | |||||||||||||||
Banco Santander Chile: (merged with B. Santiago) | ||||||||||||||||||||||
October 1996 | — | 51,706 | 42,153 | Chilean pesos | — | Floating | October 2016 | |||||||||||||||
January 1992 — October 1999 | 44,136 | 5,379 | 6,674 | Chilean pesos | 30,908 | 7.5% — 7.75% | Various maturities | |||||||||||||||
May 1996 | 25,248 | 31,073 | 25,585 | Chilean pesos | 17,682 | 7.12% | December 2015 | |||||||||||||||
September 1996 | 19,571 | 23,761 | 19,333 | Chilean pesos | 13,706 | 6.88% | March 2016 | |||||||||||||||
September 1996 | 24,556 | 29,466 | 23,608 | Chilean pesos | 17,196 | 6.90% | March 2011 | |||||||||||||||
August 2006 | 130,979 | — | — | Chilean pesos | 91,726 | 4.4% — 4.5% | September 2026 | |||||||||||||||
November 1998 | — | — | 147,380 | U.S. Dollar | — | 6.50% | November 2005 | |||||||||||||||
July 1997 | 59,255 | 66,353 | 57,293 | U.S. Dollar | 78 | 8.47% | July 2007 | |||||||||||||||
January 2003 | 168,535 | 189,217 | 163,777 | U.S. Dollar | 222 | 8.64% | July 2012 |
F-232
Table of Contents
Outstanding | ||||||||||||||||||||||
Amount in | ||||||||||||||||||||||
Euro thousand | Currency | |||||||||||||||||||||
Issuer | 2006 | 2005 | 2004 | Currency | (Million) | Annual Interest Rate | Maturity Date | |||||||||||||||
December 2004 | 227,790 | 255,076 | 221,070 | U.S. Dollar | 300 | 5.67% | December 2014 | |||||||||||||||
Totta-Credito Especializado, IFIC, S.A (formerly McLeasing Sdad. Loc.Fin).: | ||||||||||||||||||||||
June 1997 | 4,988 | 4,988 | 4,988 | Euro | — | Floating | June 2007 | |||||||||||||||
Banco Santander Banespa, S.A.: | ||||||||||||||||||||||
September 2005 | 380,184 | 419,603 | — | U.S. Dollar | 500 | 8.70% | Perpetual | |||||||||||||||
2006 | 994,560 | — | — | Brazilian Real | 2,797 | Floating | From July 2016 to September 2016 | |||||||||||||||
Banco Santander Totta, S.A.: | ||||||||||||||||||||||
February 2001 | — | 19,924 | 27,627 | Euro | — | Floating (31) | Perpetual | |||||||||||||||
May 1995 | — | — | 41,151 | Euro | — | Floating | May 2005 | |||||||||||||||
July 1996 | — | 74,820 | 74,820 | Euro | — | Floating | July 2006 | |||||||||||||||
September 1987 | — | — | 3,596 | Euro | — | Floating (5) | September 2007 | |||||||||||||||
April 2001 | — | 16,337 | 16,312 | Euro | — | 5% (26) | April 2009 | |||||||||||||||
December 2000 | — | 13,868 | 13,797 | Euro | — | Floating (31) | Perpetual | |||||||||||||||
November 1997 | 27,764 | 28,881 | 28,290 | Euro | — | Floating | Perpetual | |||||||||||||||
December 1997 | 9,497 | 13,321 | 12,721 | Euro | — | Floating | Perpetual | |||||||||||||||
December 1998 | — | — | 12,791 | Euro | — | Floating (6) | December 2008 | |||||||||||||||
December 1999 | — | — | 22,122 | Euro | — | Floating (7) | November 2009 | |||||||||||||||
February 2001 | — | 9,961 | 1,243 | Euro | — | Floating | Perpetual | |||||||||||||||
April 2001 | — | 19,402 | 19,402 | Euro | — | 5% (26) | April 2009 | |||||||||||||||
May 2001 | 9,466 | 9,484 | 9,498 | Euro | — | Floating | May 2007 | |||||||||||||||
December 2002 | 15,050 | 15,025 | 15,050 | Euro | — | Floating | December 2008 | |||||||||||||||
December 2005 | 300,000 | 300,000 | — | Euro | — | 3.942% | December 2015 | |||||||||||||||
Banesto Group: | ||||||||||||||||||||||
October 1990 | — | — | 132,883 | U.S. Dollar | — | Floating (8) | Perpetual | |||||||||||||||
March 1997 | 113,895 | 127,151 | 110,125 | U.S. Dollar | 150 | 7.5% | March 2007 | |||||||||||||||
September 2003 | 500,000 | 500,000 | 500,000 | Euro | — | Floating | September 2013 | |||||||||||||||
March 2004 | 500,000 | 500,000 | 500,000 | Euro | — | From fixed to floating (9) | March 2016 | |||||||||||||||
Santander Central Hispano Financial Services Ltd.: | ||||||||||||||||||||||
February 1990 | — | — | 146,832 | U.S. Dollar | — | Floating (10) | Perpetual | |||||||||||||||
June 2001 | 297,841 | 291,836 | 283,665 | Pounds Sterling | 200 | From fixed to floating (11) | Perpetual | |||||||||||||||
Santander Issuances, S.A.: | ||||||||||||||||||||||
September 2004 | 500,000 | 500,000 | 500,000 | Euro | — | From fixed to floating (12) | September 2019 | |||||||||||||||
September 2004 | 500,000 | 500,000 | 500,000 | Euro | — | Floating (13) | September 2014 | |||||||||||||||
March 2006 — July 2006 | 1,550,000 | — | — | Euro | — | Floating | March 2016 — July 2017 | |||||||||||||||
May 2006 | 500,000 | — | — | Euro | — | 4.25% (27) | May 2018 | |||||||||||||||
May 2006 | 297,841 | — | — | Pounds Sterling | 200 | 5.375% (28) | May 2016 | |||||||||||||||
July 2006 | 446,761 | — | — | Pounds Sterling | 300 | 5.375% (29) | July 2017 | |||||||||||||||
June 2006 | 607,441 | — | — | U.S. Dollar | 800 | 5.8% — 5.9% | June 2016 | |||||||||||||||
June 2006 | 379,651 | — | — | U.S. Dollar | 500 | Floating | June 2016 | |||||||||||||||
Banco Santander, S.A., Institución de Banca Múltiple, Grupo Financiero Santander: | ||||||||||||||||||||||
November 2004 | 28,777 | 21,199 | 18,311 | U.S. Dollar | — | Floating (15) | November 2014 | |||||||||||||||
February 2005 | 28,659 | 42,068 | — | U.S. Dollar | — | Floating | March 2015 | |||||||||||||||
Santander Perpetual, S.A. Unipersonal: | ||||||||||||||||||||||
December 2004 | 750,000 | 750,000 | 750,000 | Euro | — | From fixed to floating (14) | Perpetual | |||||||||||||||
Abbey Group: | ||||||||||||||||||||||
December 1991 | 223,380 | 218,882 | 211,483 | Pounds Sterling | 150 | 11.5% | April 2017 | |||||||||||||||
June 1992 | — | 145,921 | 142,193 | Pounds Sterling | — | 10.75% | December 2006 | |||||||||||||||
February 1993 | 223,380 | 218,882 | 211,949 | Pounds Sterling | 150 | 10.125% | April 2023 |
F-233
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Outstanding | ||||||||||||||||||||||
Amount in | ||||||||||||||||||||||
Euro thousand | Currency | |||||||||||||||||||||
Issuer | 2006 | 2005 | 2004 | Currency | (Million) | Annual Interest Rate | Maturity Date | |||||||||||||||
October 1999 | 223,380 | 218,882 | 210,854 | Pounds Sterling | 150 | 6.5% | October 2030 | |||||||||||||||
September 2000 | 483,991 | 474,245 | 456,202 | Pounds Sterling | 325 | 7.5% | Perpetual | |||||||||||||||
September 2000 | 632,911 | 620,166 | 603,402 | Pounds Sterling | 425 | 7.5% | Perpetual | |||||||||||||||
September 2000 | 260,611 | 255,363 | 245,565 | Pounds Sterling | 175 | 7.380% | Perpetual | |||||||||||||||
September 2000 | 409,531 | 401,284 | 395,254 | Pounds Sterling | 275 | 7.13% | Perpetual | |||||||||||||||
October 1995 | 297,841 | 291,843 | 283,451 | Pounds Sterling | 200 | 10.063% | Perpetual | |||||||||||||||
April 2005 | 297,841 | 291,843 | — | Pounds Sterling | 200 | From fixed to floating (22) | April 2015 | |||||||||||||||
July 2001 (20) | — | 291,843 | 283,667 | Pounds Sterling | — | 7.25% | Perpetual | |||||||||||||||
May 1997 (20) | — | 182,397 | 177,292 | Pounds Sterling | — | 8.75% | Perpetual | |||||||||||||||
September 1994 | 95,584 | 108,142 | 107,494 | Japanese Yens | 15,000 | 5.56% | Perpetual | |||||||||||||||
February 1995 | 31,861 | 36,047 | 35,831 | Japanese Yens | 5,000 | 5.5% | Perpetual | |||||||||||||||
December 1996 | 31,861 | 36,047 | 35,831 | Japanese Yens | 5,000 | From fixed to floating (17) | Perpetual | |||||||||||||||
October 1995 | — | — | 550,566 | U.S. Dollar | — | 6.69% | October 2005 | |||||||||||||||
October 1996 | — | 423,882 | 366,586 | U.S. Dollar | — | 7.35% (30) | Perpetual | |||||||||||||||
June 1998 | 379,651 | 423,882 | 365,877 | U.S. Dollar | 500 | 6.7% | Perpetual | |||||||||||||||
October 1999 | 759,301 | 847,765 | 726,808 | U.S. Dollar | — | 7.95% | October 2029 | |||||||||||||||
August 2001 | — | 339,106 | 290,205 | U.S. Dollar | — | 7.25% (30) | Perpetual | |||||||||||||||
May 2002 | 37,965 | 42,388 | 36,578 | U.S. Dollar | 50 | Floating | May 2012 | |||||||||||||||
May 2002 | 37,965 | 42,388 | 36,576 | U.S. Dollar | 50 | Floating | May 2012 | |||||||||||||||
April 2005 | 500,000 | 501,014 | — | Euro | 500 | Floating (21) | April 2015 | |||||||||||||||
December 1998 | 511,292 | 512,328 | 509,986 | Euro | — | 5% | January 2009 | |||||||||||||||
February 1999 | 500,000 | 501,014 | 498,982 | Euro | — | 4.63% | February 2011 | |||||||||||||||
April 1999 (18) | — | — | 99,440 | Euro | — | 5.75% | Perpetual | |||||||||||||||
June 2002 | 500,000 | 501,014 | 499,373 | Euro | — | Floating | June 2012 | |||||||||||||||
September 2000 | 400,000 | 400,811 | 397,961 | Euro | — | From fixed to floating (19) | Perpetual | |||||||||||||||
Santander Consumer Finance, S.A.: | ||||||||||||||||||||||
September 2006 | 499,540 | — | — | Euro | — | Floating | September 2016 | |||||||||||||||
Santander Factoring y Confirming, S.A., E.F.C.: | ||||||||||||||||||||||
June 1999 — December 2005 | 50,040 | — | — | Euro | — | Floating (32) | Various maturities | |||||||||||||||
Santander BanCorp: | ||||||||||||||||||||||
October 2004 — October 2005 | 94,913 | — | — | U.S. Dollar | 254 | From 5% to 6% | June 2032 | |||||||||||||||
Total Valuation adjustments | 795,258 | 1,260,086 | 1,523,069 | |||||||||||||||||||
Subtotal subordinated debt | 23,586,251 | 21,990,688 | 22,178,156 | |||||||||||||||||||
Preferred securities | ||||||||||||||||||||||
Banesto Group: | ||||||||||||||||||||||
Banesto Preferentes S.A. December 2003 | 131,144 | 131,144 | 131,144 | Euro | — | Floating | Perpetual | |||||||||||||||
Banesto S.A. November 2004 | 200,000 | 200,000 | 200,000 | Euro | — | 5.5% | Perpetual | |||||||||||||||
Banesto S.A. October 2004 | 125,000 | 125,000 | 125,000 | Euro | — | From fixed to floating (23) | Perpetual | |||||||||||||||
Santander Finance Capital S.A.: | ||||||||||||||||||||||
October 2003 | 450,000 | 450,000 | 450,000 | Euro | — | Floating | Perpetual | |||||||||||||||
February 2004 | 400,000 | 400,000 | 400,000 | Euro | — | Floating | Perpetual | |||||||||||||||
July 2004 | 750,000 | 750,000 | 750,000 | Euro | — | Floating | Perpetual | |||||||||||||||
September 2004 | 680,000 | 680,000 | 680,000 | Euro | — | Floating | Perpetual | |||||||||||||||
April 2005 | 1,000,000 | 952,744 | — | Euro | — | From fixed to floating (24) | Perpetual | |||||||||||||||
Santander Finance Preferred S.A. Unipersonal: | ||||||||||||||||||||||
March 2004 | 144,267 | 161,058 | 139,491 | U.S. Dollar | — | 6.41% | Perpetual | |||||||||||||||
November 2006 | 379,651 | — | — | U.S. Dollar | 500 | 6.8% | Perpetual | |||||||||||||||
September 2004 | 300,000 | 300,000 | 300,000 | Euro | — | Floating | Perpetual | |||||||||||||||
October 2004 | 200,000 | 200,000 | 200,000 | Euro | — | 5.75% | Perpetual | |||||||||||||||
Abbey Group |
F-234
Table of Contents
Outstanding | ||||||||||||||||||||||
Amount in | ||||||||||||||||||||||
Euro thousand | Currency | |||||||||||||||||||||
Issuer | 2006 | 2005 | 2004 | Currency | (Million) | Annual Interest Rate | Maturity Date | |||||||||||||||
February 2000 | 759,302 | 847,673 | 734,160 | U.S. Dollar | 1,000 | 9.000% | Perpetual | |||||||||||||||
August 2002 | 379,651 | 423,837 | 367,080 | U.S. Dollar | 500 | 7.38% | Perpetual | |||||||||||||||
February 2001 | 446,760 | 437,764 | 425,502 | Pounds Sterling | 300 | 7.04% | Perpetual | |||||||||||||||
August 2002 | 260,038 | 255,363 | 248,209 | Pounds Sterling | 175 | 6.98% | Perpetual | |||||||||||||||
Santander PR Capital Trust I: | ||||||||||||||||||||||
February 2006 | 94,913 | — | — | Euro | — | 6.75% | July 2036 | |||||||||||||||
Total valuation adjustments | 135,844 | 458,185 | 141,430 | — | — | — | — | |||||||||||||||
Subtotal preferred securities | 6,836,570 | 6,772,768 | 5,292,016 | |||||||||||||||||||
TOTAL SUBORDINATED DEBT | 30,422,821 | 28,763,456 | 27,470,172 |
F-235
Table of Contents
F-236
Table of Contents
Year end December 31, | ||||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||
Including | Excluding | Including | Excluding | Including | Excluding | |||||||||||||||||||
interest on | interest on | interest on | interest on | interest on | interest on | |||||||||||||||||||
EU-IFRS(*) | deposits | deposits | deposits | deposits | deposits | deposits | ||||||||||||||||||
FIXED CHARGES: | ||||||||||||||||||||||||
Fixed charges | 24,021,502 | 10,910,914 | 22,111,792 | 8,463,140 | 9,622,038 | 4,191,211 | ||||||||||||||||||
EARNINGS: | ||||||||||||||||||||||||
Income from continuing operations before taxes, minority interest and extraordinary items | 8,711,558 | 8,711,558 | 7,349,807 | 7,349,807 | 4,051,646 | 4,051,646 | ||||||||||||||||||
Distributed earnings from associated companies | (262,315 | ) | (262,315 | ) | (437,978 | ) | (437,978 | ) | (272,632 | ) | (272,632 | ) | ||||||||||||
Fixed charges | 24,021,502 | 10,910,914 | 22,111,792 | 8,463,140 | 9,622,038 | 4,191,211 | ||||||||||||||||||
Total earnings for ratio calculation | 32,470,745 | 19,360,157 | 29,023,621 | 15,374,969 | 13,401,052 | 7,970,225 | ||||||||||||||||||
Ratio of earnings to fixed charges | 1.35 | 1.77 | 1.31 | 1.82 | 1.39 | 1.90 |
Year end December 31, | ||||||||||||||||||||||||||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||||||||||||||||||||||||
Including | Excluding | Including | Excluding | Including | Excluding | Including | Excluding | Including | Excluding | |||||||||||||||||||||||||||||||
interest on | interest on | interest on | interest on | interest on | interest on | interest on | interest on | interest on | interest on | |||||||||||||||||||||||||||||||
U.S. GAAP: | deposits | deposits | deposits | deposits | deposits | deposits | deposits | deposits | deposits | deposits | ||||||||||||||||||||||||||||||
FIXED CHARGES: | ||||||||||||||||||||||||||||||||||||||||
Fixed charges | 23,931,995 | 10,821,407 | 22,037,681 | 8,389,029 | 9,514,554 | 3,962,511 | 9,136,028 | 3,505,885 | 13,228,644 | 4,766,787 | ||||||||||||||||||||||||||||||
Preferred dividends | 89,507 | 89,507 | 74,111 | 74,111 | 2,869 | 2,869 | 311,317 | 311,317 | 400,665 | 400,665 | ||||||||||||||||||||||||||||||
Total fixed charges + preferred dividends | 24,021,502 | 10,910,914 | 22,111,792 | 8,463,140 | 9,517,423 | 3,965,380 | 9,447,345 | 3,817,202 | 13,629,309 | 5,167,452 | ||||||||||||||||||||||||||||||
EARNINGS: | ||||||||||||||||||||||||||||||||||||||||
Income from continuing operations before taxes, minority interest and extraordinary items | 8,680,892 | 9,617,568 | 7,571,852 | 7,571,852 | 3,809,934 | 3,809,934 | 3,140,200 | 3,140,200 | 3,106,740 | 3,106,740 | ||||||||||||||||||||||||||||||
Distributed earnings from associated companies | (262,315 | ) | (262,315 | ) | (437,978 | ) | (437,978 | ) | (174,889 | ) | (174,889 | ) | (380,922 | ) | (380,922 | ) | (189,020 | ) | (189,020 | ) | ||||||||||||||||||||
Fixed charges | 23,931,995 | 10,821,407 | 22,037,681 | 8,389,029 | 9,514,554 | 3,962,511 | 9,136,028 | 3,505,885 | 13,228,644 | 4,766,787 | ||||||||||||||||||||||||||||||
Total earnings for ratio calculation | 32,350,572 | 19,239,984 | 29,171,555 | 15,522,903 | 13,149,599 | 7,597,556 | 11,895,306 | 6,265,163 | 16,146,364 | 7,684,507 | ||||||||||||||||||||||||||||||
Ratio of earnings to fixed charges | 1.35 | 1.78 | 1.32 | 1.85 | 1.38 | 1.92 | 1.30 | 1.79 | 1.22 | 1.61 | ||||||||||||||||||||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends | 1.35 | 1.76 | 1.32 | 1.83 | 1.38 | 1.92 | 1.26 | 1.64 | 1.18 | 1.49 |
(*) | The EU-IFRS required to be applied under Bank of Spain’s Circular 4/2004 |
F-237
Table of Contents
Exhibit | ||
Number | Description | |
1.1 | By-laws (Estatutos) of Banco Santander Central Hispano, S.A., as amended. | |
1.2 | By-laws (Estatutos) of Banco Santander Central Hispano, S.A., as amended (English translation). | |
4.1* | Consortium and Shareholders’ Agreement, dated May 28, 2007 among The Royal Bank of Scotland Group plc, Banco Santander Central Hispano, S.A., Fortis N.V., Fortis SA/NV and RFS Holdings B.V. | |
8.1 | List of Subsidiaries (incorporated by reference as Exhibits I, II and III of our Financial Pages filed with this Form 20-F). | |
12.1 | Section 302 Certification by the Chief Executive Officer | |
12.2 | Section 302 Certification by the Chief Financial Officer | |
12.3 | Section 302 Certification by the Chief Accounting Officer | |
13.1 | Section 906 Certification by the Chief Executive Officer, the Chief Financial Officer and the Chief Accounting Officer | |
15.1 | Consent of Deloitte, S.L. |
* | Pursuant to a request for confidential treatment filed with the Securities and Exchange Commission, the confidential portions of this exhibit have been omitted and filed separately with the Securities and Exchange Commission. |
3 | ||||
4 | ||||
6 | ||||
17 | ||||
19 | ||||
20 | ||||
46 | ||||
47 | ||||
Variation | ||||||||||||||||||||
Q1’ 07 | Q1’ 06 | Amount | (%) | 2006 | ||||||||||||||||
Balance sheet (Million euros) | ||||||||||||||||||||
Total assets | 844,240 | 814,738 | 29,502 | 3.6 | 833,873 | |||||||||||||||
Customer loans | 530,811 | 451,397 | 79,414 | 17.6 | 523,346 | |||||||||||||||
Customer funds under management | 770,679 | 668,715 | 101,964 | 15.2 | 739,223 | |||||||||||||||
Shareholders’ equity | 42,066 | 37,295 | 4,771 | 12.8 | 40,062 | |||||||||||||||
Total managed funds | 1,024,629 | 974,882 | 49,747 | 5.1 | 1,000,996 | |||||||||||||||
Income statement (Million euros) | ||||||||||||||||||||
Net interest income (w/o dividends) | 3,460 | 2,883 | 577 | 20.0 | 12,084 | |||||||||||||||
Commercial revenue | 5,751 | 4,867 | 884 | 18.2 | 20,436 | |||||||||||||||
Gross operating income | 6,243 | 5,276 | 968 | 18.3 | 22,615 | |||||||||||||||
Net operating income | 3,275 | 2,533 | 742 | 29.3 | 11,369 | |||||||||||||||
Net profit from ordinary activity | 1,927 | 1,576 | 351 | 22.3 | 6,790 | |||||||||||||||
Attributable profit to the Group | 1,802 | 1,493 | 309 | 20.7 | 6,582 | * | ||||||||||||||
Profitability and efficiency (%) | ||||||||||||||||||||
EPS (euro) | 0.2887 | 0.2390 | 1.0534 | * | ||||||||||||||||
Diluted EPS (euro) | 0.2874 | 0.2380 | 1.0477 | * | ||||||||||||||||
ROE | 18.48 | 17.12 | 18.54 | * | ||||||||||||||||
ROA | 0.92 | 0.81 | 0.88 | * | ||||||||||||||||
RORWA | 1.61 | 1.57 | 1.60 | * | ||||||||||||||||
Efficiency ratio | 46.32 | 50.88 | 48.53 | |||||||||||||||||
Capital and NPL ratios (%) | ||||||||||||||||||||
BIS ratio | 13.22 | 12.84 | 12.49 | |||||||||||||||||
Tier I | 7.64 | 7.70 | 7.42 | |||||||||||||||||
NPL ratio | 0.82 | 0.86 | 0.78 | |||||||||||||||||
NPL coverage | 176.70 | 184.80 | 187.23 | |||||||||||||||||
Market capitalisation and shares | ||||||||||||||||||||
Shares outstanding (millions at period-end) | 6,254 | 6,254 | 6,254 | |||||||||||||||||
Share price (euros) | 13.36 | 12.05 | 14.14 | |||||||||||||||||
Market capitalisation (million euros) | 83,557 | 75,364 | 88,436 | |||||||||||||||||
Book value (euro) | 6.73 | 5.96 | 6.41 | |||||||||||||||||
Price / Book value (X) | 1.99 | 2.02 | 2.21 | |||||||||||||||||
P/E ratio (X) | 11.57 | 12.60 | 13.42 | * | ||||||||||||||||
Other data | ||||||||||||||||||||
Shareholders (number) | 2,312,076 | 2,398,089 | 2,310,846 | |||||||||||||||||
Number of employees | 134,638 | 126,530 | 129,749 | |||||||||||||||||
Continental Europe | 46,308 | 44,155 | 44,216 | |||||||||||||||||
United Kingdom (Abbey) | 16,616 | 18,622 | 17,146 | |||||||||||||||||
Latin America | 69,958 | 62,259 | 66,889 | |||||||||||||||||
Financial management and equity stakes | 1,756 | 1,494 | 1,498 | |||||||||||||||||
Number of branches | 10,978 | 10,326 | 10,852 | |||||||||||||||||
Continental Europe | 5,829 | 5,444 | 5,772 | |||||||||||||||||
United Kingdom (Abbey) | 711 | 712 | 712 | |||||||||||||||||
Latin America | 4,438 | 4,170 | 4,368 |
• | Earnings per share were EUR 0.2887 in the first quarter, 20.8% more than in the same period of 2006, and 10.3% above that in the fourth quarter (excluding capital gains). | |
• | Yet another record quarterly profit: attributable profit was 20.7% higher at EUR 1,802 million, 10.2% more than in the fourth quarter of 2006 (excluding capital gains). | |
• | All geographic areas registered notable rises in profits. Continental Europe, Abbey and Latin America increased their attributable profit by more than 20% in their respective currencies of management. | |
• | The ROE increased again (to 18.5%; + 1.4 p.p,) and the RoRWA by 4 b.p. to 1.61%. | |
• | The rise in the Group’s profit was due to a strong increase in gross operating income (+18.3%), spurred by the most recurrent revenues: net interest income (+19.6%), and fees coupled with revenues from insurance (+21.0%) | |
• | The selective rise in costs, below that of revenues, widened the “jaws” (the difference between the growth in gross operating income and in costs) to 11 p.p. and improved the efficiency ratio by 4.6 p.p. to 46.3%. | |
• | Revenue growth together with the improvement in the efficiency ratio pushed up net operating income by 29.3% over the first quarter of 2006 and 12.4% over the fourth quarter. | |
• | Loan-loss provisions were in line with the last two quarters. They were higher than in the first quarter of 2006 because of greater lending and the change in mix toward more profitable segments. | |
• | Credit risk quality continued to be excellent: the ratio of non-performing loans was 0.82% and coverage was 177%. The Group’s generic fund reached EUR 5,778 million at the end of March. | |
• | Solid capital ratios: the BIS ratio stood at 13.22% and core capital at 5.97%, above the figures at the end of 2006. | |
• | A third interim dividend of EUR 0.106904 per share charged to the profits generated in 2006 was paid on February 1, 2007. A fourth dividend of EUR 0.199913 will be paid as of May 1. The total dividend charged to 2006’s profit, which will be proposed to the AGM, is EUR 0.520625 per share, 25% more than in 2005. | |
• | Standard & Poor’s again upgraded its rating of the Group to AA and in April Moody’s upgraded the Group’s rating to Aa1, maintaining the financial strength rating. |
Long | Short | Financial | ||||||||
April 2007 | term | term | strength | Outlook | ||||||
Standard & Poor’s | AA | A1 + | Stable | |||||||
Fitch Ratings | AA | F1 + | A/B | Stable | ||||||
Moody’s | Aa1 | P1 | B | Stable | ||||||
DBRS | AA | R1 (high) | Stable |
• | Continental Europegenerated attributable profit of EUR 1,317 million, 46.7% more than in the first quarter of 2006 and accounting for 57% of the Group’s total from its operating areas (+44.4% excluding Drive). | |
This growth was due to the strong rise in revenues (+29.0%), well above the increase in costs (+11.8%). As a result, the efficiency ratio was 5 p.p. better at 35.9% and net operating income was 41.0% higher. All units did well, particularly the retail banks in Spain and wholesale business. | ||
• | In the UK,Abbeycontributed attributable profit of EUR 300 million, 22.8% higher and 13% of the total of the operating areas. Net profit from ordinary activity (i.e. excluding the net contribution in 2006 of the life assurance business that was sold) increased 40.8%. | |
The main factors behind the growth in profits and the notable improvement in efficiency and the return were the faster rise in gross operating income (+7.0% y-o-y in sterling), the 4.4% reduction in costs. | ||
• | Latin America’sattributable profit was EUR 681 million (30% of the Group’s total), 10.1% more than in the first quarter of 2006 (+20.2% excluding the exchange rate impact). | |
This growth was the result of stronger business, particularly with individual customers, SMEs and companies. Gross operating income grew at a much faster pace than costs and as a result net operating income increased 26.1% (+37.5% excluding the exchange rate) and absorbed the larger volume of provisions allocated a a result of greater lending and the change in business mix. In dollars, the currency used to manage the area, attributable profit was $892 million. |
• | Retail Banking, which generated 82% of the total gross operating income and 71% of profit before tax, continued to be the driving force of the Group’s growth. Gross operating income rose 19.6%, net operating income 31.9% and profit before tax 27.2% (to EUR 2,334 million). | |
Continental Europe’s profit before tax rose 27.2%, Abbey Retail 35.5% in euros (+32.5% in sterling) and Latin America 22.6% (+34.1% excluding the exchange rate impact). | ||
• | Global Wholesale Bankingcontributed 14% of the total gross operating income and 24% of profit before tax (+68.5% to EUR 795 million). | |
This performance was driven by a rise of 37.6% in gross operating income, particularly from customer business related to advisory activities, structured financing and trading of securities. Profit growth was strengthened by a smaller rise in costs (the efficiency ratio reached 22.2%) and lower provisions because of the release of generic provisions as a result of the proximity to the final structure of the large operations conducted in 2006. | ||
• | Asset Management and Insuranceprofit before tax was 5.7% higher (EUR 167 million in the first quarter of 2007). Total revenue generated by all the products managed by this area (mutual and pension funds and insurance) was EUR 967 million, 17% more than in the first quarter of 2006. | |
Of note among the global businesses integrated into this segment was Insurance, whose gross and net operating income and profit increased by around 40%. Asset Management was negatively affected by regulatory pressure and the consequent smaller contribution from pension business in Latin America, particularly Mexico. |
• | Solid growth in revenues: commercial revenue grew at a faster pace (+18.2%), driven by net interest income excluding dividends and net fees. | |
• | Strong improvement in efficiency: selective growth in costs in Continental Europe and Latin America, well below the rise in revenues, and the decline in costs at Abbey produced notably better efficiency ratios in all segments. The Group’s ratio was 46.3% (50.9% in the first quarter of 2006). | |
• | The 33.8% increase in loan-loss provisions, in line with forecasts, was due to the larger volume of lending and the change in business mix (reflected in a higher risk premium). Profit before tax was 24.6% higher. | |
• | The quality and sustainability of results: the Group’s performance was due to all its operating areas. Their combined net operating income rose 33.4% and profit before tax increased 33.7%. |
• | In line with accounting regulations, the results of the businesses sold in 2006 are in “net profit from discontinued operations”. This |
Average (income statement) | Period-end (balance sheet) | |||||||||||||||||||
Q1’ 07 | Q1’ 06 | 31.03.07 | 31.12.06 | 31.03.06 | ||||||||||||||||
US$ | 1.3106 | 1.2019 | 1.3318 | 1.3170 | 1.2104 | |||||||||||||||
Pound sterling | 0.6706 | 0.6860 | 0.6798 | 0.6715 | 0.6964 | |||||||||||||||
Brazilian real | 2.7613 | 2.6350 | 2.6976 | 2.8118 | 2.6459 | |||||||||||||||
New Mexican peso | 14.4384 | 12.7386 | 14.6378 | 14.2881 | 13.2327 | |||||||||||||||
Chilean peso | 708.3056 | 632.7446 | 716.2420 | 700.3148 | 637.2756 | |||||||||||||||
Venezuelan bolivar | 2,814.3645 | 2,580.7784 | 2,859.7741 | 2,827.9941 | 2,599.0919 | |||||||||||||||
Argentine peso | 4.0797 | 3.7000 | 4.1635 | 4.0679 | 3.7447 |
Variation | ||||||||||||||||
Million euros | Q1’ 07 | Q1’ 06 | Amount | (%) | ||||||||||||
Net interest income (w/o dividends) | 3,460 | 2,883 | 577 | 20.0 | ||||||||||||
Dividends | 48 | 50 | (2 | ) | (3.1 | ) | ||||||||||
Net interest income | 3,509 | 2,933 | 576 | 19.6 | ||||||||||||
Income from companies accounted for by the equity method | 60 | 131 | (70 | ) | (53.9 | ) | ||||||||||
Net fees | 2,087 | 1,738 | 350 | 20.1 | ||||||||||||
Insurance activity | 95 | 66 | 29 | 43.4 | ||||||||||||
Commercial revenue | 5,751 | 4,867 | 884 | 18.2 | ||||||||||||
Gains (losses) on financial transactions | 492 | 408 | 84 | 20.5 | ||||||||||||
Gross operating income | 6,243 | 5,276 | 968 | 18.3 | ||||||||||||
Income from non-financial services | 34 | 38 | (3 | ) | (8.8 | ) | ||||||||||
Non-financial expenses | (18 | ) | (15 | ) | (3 | ) | 19.0 | |||||||||
Other operating income | (34 | ) | (21 | ) | (13 | ) | 63.6 | |||||||||
Operating expenses | (2,950 | ) | (2,744 | ) | (206 | ) | 7.5 | |||||||||
General administrative expenses | (2,642 | ) | (2,464 | ) | (179 | ) | 7.2 | |||||||||
Personnel | (1,551 | ) | (1,483 | ) | (68 | ) | 4.6 | |||||||||
Other administrative expenses | (1,092 | ) | (981 | ) | (111 | ) | 11.3 | |||||||||
Depreciation and amortisation | (308 | ) | (280 | ) | (28 | ) | 9.8 | |||||||||
Net operating income | 3,275 | 2,533 | 742 | 29.3 | ||||||||||||
Impairment loss on assets | (683 | ) | (512 | ) | (171 | ) | 33.4 | |||||||||
Loans | (670 | ) | (501 | ) | (169 | ) | 33.8 | |||||||||
Goodwill | — | — | — | — | ||||||||||||
Other assets | (13 | ) | (11 | ) | (2 | ) | 16.3 | |||||||||
Other income | (90 | ) | (12 | ) | (78 | ) | 653.3 | |||||||||
Profit before taxes | 2,503 | 2,009 | 494 | 24.6 | ||||||||||||
Tax on profit | (576 | ) | (433 | ) | (142 | ) | 32.9 | |||||||||
Net profit from ordinary activity | 1,927 | 1,576 | 351 | 22.3 | ||||||||||||
Net profit from discontinued operations | — | 79 | (79 | ) | (100.0 | ) | ||||||||||
Net consolidated profit | 1,927 | 1,655 | 272 | 16.4 | ||||||||||||
Minority interests | 125 | 162 | (37 | ) | (22.6 | ) | ||||||||||
Attributable profit to the Group | 1,802 | 1,493 | 309 | 20.7 | ||||||||||||
Pro memoria: | ||||||||||||||||
Average total assets | 840,804 | 817,676 | 23,128 | 2.8 | ||||||||||||
Average shareholders’ equity | 39,008 | 34,899 | 4,109 | 11.8 |
2006 | 2007 | |||||||||||||||||||
Million euros | Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||
Net interest income (w/o dividends) | 2,883 | 2,921 | 3,079 | 3,200 | 3,460 | |||||||||||||||
Dividends | 50 | 187 | 98 | 69 | 48 | |||||||||||||||
Net interest income | 2,933 | 3,109 | 3,177 | 3,269 | 3,509 | |||||||||||||||
Income from companies accounted for by the equity method | 131 | 110 | 145 | 41 | 60 | |||||||||||||||
Net fees | 1,738 | 1,756 | 1,848 | 1,881 | 2,087 | |||||||||||||||
Insurance activity | 66 | 81 | 72 | 79 | 95 | |||||||||||||||
Commercial revenue | 4,867 | 5,056 | 5,242 | 5,270 | 5,751 | |||||||||||||||
Gains (losses) on financial transactions | 408 | 508 | 626 | 637 | 492 | |||||||||||||||
Gross operating income | 5,276 | 5,565 | 5,868 | 5,907 | 6,243 | |||||||||||||||
Income from non-financial services | 38 | 10 | 43 | 28 | 34 | |||||||||||||||
Non-financial expenses | (15 | ) | (17 | ) | (14 | ) | (24 | ) | (18 | ) | ||||||||||
Other operating income | (21 | ) | (19 | ) | (24 | ) | (56 | ) | (34 | ) | ||||||||||
Operating expenses | (2,744 | ) | (2,706 | ) | (2,785 | ) | (2,941 | ) | (2,950 | ) | ||||||||||
General administrative expenses | (2,464 | ) | (2,429 | ) | (2,500 | ) | (2,632 | ) | (2,642 | ) | ||||||||||
Personnel | (1,483 | ) | (1,466 | ) | (1,488 | ) | (1,567 | ) | (1,551 | ) | ||||||||||
Other administrative expenses | (981 | ) | (963 | ) | (1,012 | ) | (1,065 | ) | (1,092 | ) | ||||||||||
Depreciation and amortisation | (280 | ) | (276 | ) | (285 | ) | (310 | ) | (308 | ) | ||||||||||
Net operating income | 2,533 | 2,833 | 3,088 | 2,915 | 3,275 | |||||||||||||||
Impairment loss on assets | (512 | ) | (621 | ) | (710 | ) | (708 | ) | (683 | ) | ||||||||||
Loans | (501 | ) | (599 | ) | (692 | ) | (675 | ) | (670 | ) | ||||||||||
Goodwill | — | (5 | ) | — | (8 | ) | — | |||||||||||||
Other assets | (11 | ) | (17 | ) | (18 | ) | (25 | ) | (13 | ) | ||||||||||
Other income | (12 | ) | 23 | (26 | ) | (26 | ) | (90 | ) | |||||||||||
Profit before taxes (w/o capital gains) | 2,009 | 2,235 | 2,352 | 2,180 | 2,503 | |||||||||||||||
Tax on profit | (433 | ) | (458 | ) | (647 | ) | (448 | ) | (576 | ) | ||||||||||
Net profit from ordinary activity | 1,576 | 1,776 | 1,705 | 1,733 | 1,927 | |||||||||||||||
Net profit from discontinued operations | 79 | 115 | 135 | 25 | — | |||||||||||||||
Net consolidated profit (w/o capital gains) | 1,655 | 1,891 | 1,840 | 1,758 | 1,927 | |||||||||||||||
Minority interests | 162 | 169 | 109 | 123 | 125 | |||||||||||||||
Attributable profit to the Group (w/o capital gains) | 1,493 | 1,723 | 1,731 | 1,635 | 1,802 | |||||||||||||||
Net extraordinary gains and allowances | — | — | — | 1,014 | — | |||||||||||||||
Attributable profit to the Group | 1,493 | 1,723 | 1,731 | 2,649 | 1,802 |
Variation | ||||||||||||||||
Million euros | Q1’ 07 | Q1’ 06 | Amount | (%) | ||||||||||||
Commissions for services | 1,230 | 1,040 | 190 | 18.3 | ||||||||||||
Credit and debit cards | 181 | 164 | 17 | 10.6 | ||||||||||||
Insurance | 347 | 250 | 97 | 38.9 | ||||||||||||
Account management | 140 | 132 | 8 | 6.2 | ||||||||||||
Commercial bills | 55 | 55 | (1 | ) | (0.9 | ) | ||||||||||
Guarantees and other contingent liabilities | 87 | 72 | 15 | 20.9 | ||||||||||||
Other transactions | 420 | 367 | 52 | 14.3 | ||||||||||||
Mutual & pension funds | 525 | 510 | 15 | 2.9 | ||||||||||||
Securities services | 333 | 188 | 145 | 77.2 | ||||||||||||
Net fees | 2,087 | 1,738 | 350 | 20.1 | ||||||||||||
Insurance activity | 95 | 66 | 29 | 43.4 | ||||||||||||
Net fees and insurance business | 2,182 | 1,804 | 379 | 21.0 |
• | Drive’s results began to be consolidated in the first quarter of 2007. Its impact on the growth in gross operating income was 2.7%, 0.7% on costs and 1.4% on the Group’s attributable profit. | |
• | Comparisons between growth in gross operating income and costs are negatively affected by the average exchange-rate performance of Latin American currencies and of the dollar against the euro, and positively by sterling’s evolution. The impact as regards the euro is -4 p.p. for the Group’s total, +2-3 p.p. at Abbey and -10 p.p. in Latin America. |
Variation | ||||||||||||||||
Million euros | Q1’ 07 | Q1’ 06 | Amount | (%) | ||||||||||||
Personnel expenses | 1,551 | 1,483 | 68 | 4.6 | ||||||||||||
General expenses | 1,092 | 981 | 111 | 11.3 | ||||||||||||
Information technology | 99 | 104 | (5 | ) | (4.3 | ) | ||||||||||
Communications | 85 | 94 | (9 | ) | (9.8 | ) | ||||||||||
Advertising | 136 | 116 | 20 | 16.8 | ||||||||||||
Buildings and premises | 212 | 218 | (7 | ) | (3.1 | ) | ||||||||||
Printed and office material | 33 | 27 | 6 | 21.8 | ||||||||||||
Taxes (other than profit tax) | 73 | 56 | 17 | 29.6 | ||||||||||||
Other expenses | 454 | 365 | 89 | 24.4 | ||||||||||||
Personnel and general expenses | 2,642 | 2,464 | 179 | 7.2 | ||||||||||||
Depreciation and amortisation | 308 | 280 | 28 | 9.8 | ||||||||||||
Total operating expenses | 2,950 | 2,744 | 206 | 7.5 |
Variation | ||||||||||||||||
Million euros | Q1’ 07 | Q1’ 06 | Amount | (%) | ||||||||||||
Non performing loans | 812 | 654 | 158 | 24.2 | ||||||||||||
Country-risk | 36 | (9 | ) | 45 | — | |||||||||||
Recovery of written-off assets | (178 | ) | (144 | ) | (33 | ) | 23.2 | |||||||||
Total | 670 | 501 | 169 | 33.8 |
Variation | ||||||||||||||||||||
Million euros | 31.03.07 | 31.03.06 | Amount | (%) | 31.12.06 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash on hand and deposits at central banks | 15,001 | 12,089 | 2,912 | 24.1 | 13,835 | |||||||||||||||
Trading portfolio | 164,849 | 153,965 | 10,884 | 7.1 | 170,423 | |||||||||||||||
Debt securities | 73,040 | 75,559 | (2,518 | ) | (3.3 | ) | 76,737 | |||||||||||||
Loans and credits | 32,668 | 28,746 | 3,922 | 13.6 | 30,583 | |||||||||||||||
Equities | 11,253 | 10,676 | 577 | 5.4 | 13,491 | |||||||||||||||
Other | 47,887 | 38,984 | 8,903 | 22.8 | 49,612 | |||||||||||||||
Other financial assets at fair value | 15,625 | 47,269 | (31,644 | ) | (66.9 | ) | 15,371 | |||||||||||||
Loans and credits | 8,002 | 6,446 | 1,556 | 24.1 | 7,973 | |||||||||||||||
Other | 7,623 | 40,823 | (33,200 | ) | (81.3 | ) | 7,398 | |||||||||||||
Available-for-sale financial assets | 34,071 | 73,025 | (38,955 | ) | (53.3 | ) | 38,698 | |||||||||||||
Debt securities | 25,842 | 66,432 | (40,589 | ) | (61.1 | ) | 32,727 | |||||||||||||
Equities | 8,228 | 6,594 | 1,635 | 24.8 | 5,971 | |||||||||||||||
Loans | 561,544 | 472,658 | 88,887 | 18.8 | 544,049 | |||||||||||||||
Deposits at credit institutions | 58,057 | 46,440 | 11,617 | 25.0 | 45,361 | |||||||||||||||
Loans and credits | 490,141 | 416,205 | 73,936 | 17.8 | 484,790 | |||||||||||||||
Other | 13,346 | 10,012 | 3,334 | 33.3 | 13,897 | |||||||||||||||
Investments | 4,912 | 3,076 | 1,836 | 59.7 | 5,006 | |||||||||||||||
Intangible assets and property and equipment | 12,687 | 12,162 | 526 | 4.3 | 12,555 | |||||||||||||||
Goodwill | 14,373 | 14,025 | 349 | 2.5 | 14,513 | |||||||||||||||
Other | 21,178 | 26,470 | (5,291 | ) | (20.0 | ) | 19,423 | |||||||||||||
Total assets | 844,240 | 814,738 | 29,502 | 3.6 | 833,873 | |||||||||||||||
Liabilities and shareholders’ equity | ||||||||||||||||||||
Trading portfolio | 126,017 | 112,684 | 13,333 | 11.8 | 123,996 | |||||||||||||||
Customer deposits | 14,306 | 13,430 | 876 | 6.5 | 16,572 | |||||||||||||||
Marketable debt securities | 22,478 | 17,247 | 5,232 | 30.3 | 17,522 | |||||||||||||||
Other | 89,233 | 82,007 | 7,226 | 8.8 | 89,902 | |||||||||||||||
Other financial liabilities at fair value | 12,513 | 13,314 | (800 | ) | (6.0 | ) | 12,411 | |||||||||||||
Customer deposits | 250 | 261 | (12 | ) | (4.5 | ) | 273 | |||||||||||||
Marketable debt securities | 12,263 | 13,052 | (789 | ) | (6.0 | ) | 12,138 | |||||||||||||
Other | — | — | — | — | — | |||||||||||||||
Financial liabilities at amortized cost | 614,256 | 569,114 | 45,142 | 7.9 | 605,303 | |||||||||||||||
Due to central banks and credit institutions | 61,073 | 105,255 | (44,182 | ) | (42.0 | ) | 73,345 | |||||||||||||
Customer deposits | 312,555 | 290,563 | 21,992 | 7.6 | 314,377 | |||||||||||||||
Marketable debt securities | 187,699 | 130,401 | 57,298 | 43.9 | 174,409 | |||||||||||||||
Subordinated debt | 33,355 | 28,984 | 4,371 | 15.1 | 30,423 | |||||||||||||||
Other financial liabilities | 19,574 | 13,911 | 5,662 | 40.7 | 12,749 | |||||||||||||||
Insurance liabilities | 12,030 | 44,569 | (32,538 | ) | (73.0 | ) | 10,704 | |||||||||||||
Provisions | 17,597 | 19,535 | (1,937 | ) | (9.9 | ) | 19,227 | |||||||||||||
Other liability accounts | 14,651 | 10,800 | 3,851 | 35.7 | 14,491 | |||||||||||||||
Preferred securities | 670 | 1,293 | (623 | ) | (48.2 | ) | 668 | |||||||||||||
Minority interests | 2,055 | 2,944 | (889 | ) | (30.2 | ) | 2,221 | |||||||||||||
Equity adjustments by valuation | 2,384 | 3,191 | (807 | ) | (25.3 | ) | 2,871 | |||||||||||||
Capital stock | 3,127 | 3,127 | — | — | 3,127 | |||||||||||||||
Reserves | 40,393 | 35,279 | 5,113 | 14.5 | 32,595 | |||||||||||||||
Attributable profit to the Group | 1,802 | 1,493 | 309 | 20.7 | 7,596 | |||||||||||||||
Less: dividends | (3,256 | ) | (2,605 | ) | (651 | ) | 25.0 | (1,337 | ) | |||||||||||
Total liabilities and shareholders’ equity | 844,240 | 814,738 | 29,502 | 3.6 | 833,873 |
Variation | ||||||||||||||||||||
Million euros | 31.03.07 | 31.03.06 | Amount | (%) | 31.12.06 | |||||||||||||||
Public sector | 5,604 | 5,465 | 139 | 2.5 | 5,329 | |||||||||||||||
Other residents | 204,943 | 162,722 | 42,222 | 25.9 | 199,994 | |||||||||||||||
Commercial bills | 16,173 | 14,372 | 1,801 | 12.5 | 17,276 | |||||||||||||||
Secured loans | 114,888 | 89,385 | 25,503 | 28.5 | 110,863 | |||||||||||||||
Other loans | 73,882 | 58,964 | 14,918 | 25.3 | 71,854 | |||||||||||||||
Non-resident sector | 328,561 | 290,952 | 37,609 | 12.9 | 326,187 | |||||||||||||||
Secured loans | 192,452 | 175,682 | 16,770 | 9.5 | 191,724 | |||||||||||||||
Other loans | 136,109 | 115,270 | 20,838 | 18.1 | 134,463 | |||||||||||||||
Gross loans and credits | 539,108 | 459,139 | 79,969 | 17.4 | 531,509 | |||||||||||||||
Loan-loss allowances | 8,297 | 7,742 | 556 | 7.2 | 8,163 | |||||||||||||||
Net loans and credits | 530,811 | 451,397 | 79,414 | 17.6 | 523,346 | |||||||||||||||
Pro memoria: Doubtful loans | 4,910 | 4,362 | 549 | 12.6 | 4,613 | |||||||||||||||
Public sector | 1 | 7 | (7 | ) | (90.7 | ) | 18 | |||||||||||||
Other residents | 1,264 | 1,033 | 231 | 22.3 | 1,212 | |||||||||||||||
Non-resident sector | 3,646 | 3,321 | 324 | 9.8 | 3,383 |
Variation | ||||||||||||||||||||
Million euros | 31.03.07 | 31.03.06 | Amount | (%) | 31.12.06 | |||||||||||||||
Public sector | 16,012 | 15,121 | 891 | 5.9 | 15,266 | |||||||||||||||
Other residents | 92,958 | 83,179 | 9,779 | 11.8 | 94,750 | |||||||||||||||
Demand deposits | 52,000 | 49,120 | 2,880 | 5.9 | 55,050 | |||||||||||||||
Time deposits | 26,013 | 18,460 | 7,553 | 40.9 | 24,670 | |||||||||||||||
REPOs | 14,945 | 15,600 | (655 | ) | (4.2 | ) | 15,030 | |||||||||||||
Non-resident sector | 218,140 | 205,954 | 12,186 | 5.9 | 221,206 | |||||||||||||||
Demand deposits | 118,573 | 115,499 | 3,074 | 2.7 | 119,861 | |||||||||||||||
Time deposits | 71,171 | 71,255 | (84 | ) | (0.1 | ) | 72,258 | |||||||||||||
REPOs | 26,377 | 16,365 | 10,012 | 61.2 | 26,343 | |||||||||||||||
Public Sector | 2,021 | 2,835 | (815 | ) | (28.7 | ) | 2,744 | |||||||||||||
Customer deposits | 327,111 | 304,255 | 22,856 | 7.5 | 331,223 | |||||||||||||||
Debt securities | 222,441 | 160,700 | 61,741 | 38.4 | 204,069 | |||||||||||||||
Subordinated debt | 33,355 | 28,984 | 4,371 | 15.1 | 30,423 | |||||||||||||||
On-balance-sheet customer funds | 582,907 | 493,938 | 88,968 | 18.0 | 565,715 | |||||||||||||||
Mutual funds | 131,147 | 114,174 | 16,974 | 14.9 | 119,838 | |||||||||||||||
Pension funds | 29,996 | 29,190 | 806 | 2.8 | 29,450 | |||||||||||||||
Managed portfolios | 19,245 | 16,781 | 2,464 | 14.7 | 17,835 | |||||||||||||||
Savings-insurance policies | 7,383 | 14,632 | (7,249 | ) | (49.5 | ) | 6,385 | |||||||||||||
Other customer funds under management | 187,772 | 174,776 | 12,996 | 7.4 | 173,509 | |||||||||||||||
Customer funds under management | 770,679 | 668,715 | 101,964 | 15.2 | 739,223 |
Million euros | 31.03.07 | 31.03.06 | Var. (%) | |||||||||
Spain | 78,854 | 77,463 | 1.8 | |||||||||
Portugal | 6,160 | 5,922 | 4.0 | |||||||||
United Kingdom (Abbey) | 13,640 | 5,904 | 131.0 | |||||||||
Latin America | 32,494 | 24,885 | 30.6 | |||||||||
Total | 131,147 | 114,174 | 14.9 |
Million euros | 31.03.07 | 31.03.06 | Var. (%) | |||||||||
Spain | 9,980 | 9,047 | 10.3 | |||||||||
Portugal | 1,453 | 1,032 | 40.7 | |||||||||
Latin America | 18,564 | 19,110 | (2.9 | ) | ||||||||
Total | 29,996 | 29,190 | 2.8 |
Variation | ||||||||||||||||||||
Million euros | 31.03.07 | 31.03.06 | Amount | (%) | 31.12.06 | |||||||||||||||
Capital stock | 3,127 | 3,127 | — | — | 3,127 | |||||||||||||||
Additional paid-in surplus | 20,370 | 20,370 | — | — | 20,370 | |||||||||||||||
Reserves | 20,124 | 14,976 | 5,148 | 34.4 | 12,352 | |||||||||||||||
Treasury stock | (102 | ) | (67 | ) | (35 | ) | 52.8 | (127 | ) | |||||||||||
On-balance-sheet shareholders’ equity | 43,520 | 38,407 | 5,113 | 13.3 | 35,722 | |||||||||||||||
Attributable profit | 1,802 | 1,493 | 309 | 20.7 | 7,596 | |||||||||||||||
Interim dividend distributed | (2,006 | ) | (1,744 | ) | (262 | ) | 15.0 | (1,337 | ) | |||||||||||
Shareholders’ equity at period-end | 43,316 | 38,156 | 5,160 | 13.5 | 41,981 | |||||||||||||||
Interim dividend not distributed | (1,250 | ) | (861 | ) | (390 | ) | 45.3 | (1,919 | ) | |||||||||||
Shareholders’ equity | 42,066 | 37,295 | 4,771 | 12.8 | 40,062 | |||||||||||||||
Valuation adjustments | 2,384 | 3,191 | (807 | ) | (25.3 | ) | 2,871 | |||||||||||||
Minority interests | 2,055 | 2,944 | (889 | ) | (30.2 | ) | 2,221 | |||||||||||||
Preferred securities | 670 | 1,293 | (623 | ) | (48.2 | ) | 668 | |||||||||||||
Preferred securities in subordinated debt | 7,483 | 6,469 | 1,013 | 15.7 | 6,837 | |||||||||||||||
Shareholders’ equity and minority interests | 54,658 | 51,193 | 3,465 | 6.8 | 52,658 |
Variation | ||||||||||||||||||||
Million euros | 31.03.07 | 31.03.06 | Amount | (%) | 31.12.06 | |||||||||||||||
Computable basic capital | 36,141 | 32,909 | 3,232 | 9.8 | 35,539 | |||||||||||||||
Computable supplementary capital | 26,369 | 21,978 | 4,391 | 20.0 | 24,237 | |||||||||||||||
Computable capital | 62,510 | 54,886 | 7,623 | 13.9 | 59,776 | |||||||||||||||
Risk-weighted assets | 472,937 | 427,607 | 45,330 | 10.6 | 478,733 | |||||||||||||||
BIS ratio | 13.22 | 12.84 | 0.38 | 12.49 | ||||||||||||||||
Tier 1 | 7.64 | 7.70 | (0.06 | ) | 7.42 | |||||||||||||||
Core capital | 5.97 | 5.96 | 0.01 | 5.91 | ||||||||||||||||
Shareholders’ equity surplus | 24,675 | 20,678 | 3,997 | 19.3 | 21,478 |
Million euros | Q1’ 07 | Q1’ 06 | ||||||
Available-for-sale financial assets | (295 | ) | 481 | |||||
Other financial liabilities at fair value | — | — | ||||||
Cash flow hedges | (34 | ) | (50 | ) | ||||
Hedges of net investments in businesses abroad | 35 | 33 | ||||||
Exchange differences | (192 | ) | (349 | ) | ||||
Long-term assets for sale | — | — | ||||||
Net revenues recorded in shareholders’ equity | (487 | ) | 114 | |||||
Net consolidated profit (published) | 1,927 | 1,655 | ||||||
Adjustments for changes in accounting criteria | — | — | ||||||
Adjustments for misstatements | — | — | ||||||
Net consolidated profit | 1,927 | 1,655 | ||||||
Parent Bank | 1,315 | 1,607 | ||||||
Minority interests | 125 | 162 | ||||||
Total revenues and expenses | 1,441 | 1,769 |
Million euros | Q1’ 07 | Q1’ 06 | ||||||
1. Cash flows from operating activities | ||||||||
Consolidated profit | 1,927 | 1,655 | ||||||
Adjustments to profit | 2,472 | 1,837 | ||||||
Adjusted profit | 4,399 | 3,492 | ||||||
Net increase/decrease in operating assets | (10,030 | ) | (10,504 | ) | ||||
Net increase/decrease in operating liabilities | (18,088 | ) | (9,166 | ) | ||||
Total net cash flows from operating activities (1) | (23,719 | ) | (16,178 | ) | ||||
2. Cash flows from investing activities | ||||||||
Investments (-) | (632 | ) | (567 | ) | ||||
Divestments (+) | 338 | 218 | ||||||
Total net cash flows from investing activities (2) | (294 | ) | (349 | ) | ||||
3. Cash flows from financing activities | ||||||||
Disposal of own equity instruments | 1,827 | 1,873 | ||||||
Acquisition of own equity instruments | (1,803 | ) | (1,887 | ) | ||||
Issuance debt securities | 47,362 | 23,554 | ||||||
Redemption debt securities | (21,393 | ) | (10,230 | ) | ||||
Dividends paid | (669 | ) | (581 | ) | ||||
Others | (307 | ) | (440 | ) | ||||
Total net cash flows from financing activities (3) | 25,018 | 12,289 | ||||||
4. Effect of exchange rate changes on cash and cash equivalents (4) | 160 | 240 | ||||||
5. Net increase/decrease in cash and cash equivalents (1+2+3+4) | 1,165 | (3,998 | ) | |||||
Cash and cash equivalents at beginning of period | 13,835 | 16,086 | ||||||
Cash and cash equivalents at end of period | 15,001 | 12,088 |
Variation | ||||||||||||||||||||
Million euros | 31.03.07 | 31.03.06 | Amount | (%) | 31.12.06 | |||||||||||||||
Non-performing loans | 4,936 | 4,370 | 566 | 13.0 | 4,608 | |||||||||||||||
NPL ratio (%) | 0.82 | 0.86 | (0.04 p. | ) | 0.78 | |||||||||||||||
Loan-loss allowances | 8,722 | 8,075 | 647 | 8.0 | 8,627 | |||||||||||||||
Specific | 2,944 | 3,148 | (204 | ) | (6.5 | ) | 2,960 | |||||||||||||
General-purpose | 5,778 | 4,927 | 850 | 17.3 | 5,667 | |||||||||||||||
NPL coverage (%) | 176.70 | 184.80 | (8.10 p. | ) | 187.23 | |||||||||||||||
Credit cost (%) ** | 0.34 | 0.23 | 0.11 p. | 0.32 | ||||||||||||||||
Ordinary non-performing and doubtful loans *** | 3,469 | 3,120 | 349 | 11.2 | 3,243 | |||||||||||||||
NPL ratio (%) *** | 0.58 | 0.62 | (0.04 p. | ) | 0.55 | |||||||||||||||
NPL coverage (%) *** | 251.40 | 258.82 | (7.42 p. | ) | 266.00 |
(*) | Excluding country-risk | |
(**) | Net specific allowance / computable assets | |
(***) | Excluding mortgage guarantees |
2006 | 2007 | |||||||||||||||||||
Million euros | Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||
Balance at beginning of period | 4,342 | 4,370 | 4,489 | 4,647 | 4,608 | |||||||||||||||
+ Net additions | 509 | 569 | 718 | 841 | 1,058 | |||||||||||||||
- Write-offs | (480 | ) | (450 | ) | (560 | ) | (880 | ) | (729 | ) | ||||||||||
Balance at period-end | 4,370 | 4,489 | 4,647 | 4,608 | 4,936 |
2007 | 2006 | |||||||||||
Million euros | Avg | Latest | Avg | |||||||||
Total | 32.5 | 32.4 | 36.4 | |||||||||
Europe | 8.1 | 8.3 | 12.0 | |||||||||
USA | 2.3 | 2.1 | 2.7 | |||||||||
Latin America | 28.6 | 28.8 | 28.3 |
Million euros | Min | Avg | Max | Latest | ||||||||||||
Total trading | ||||||||||||||||
Total VaR | 28.8 | 32.5 | 36.3 | 32.4 | ||||||||||||
Diversification effect | (3.1 | ) | (10.4 | ) | (15.1 | ) | (9.5 | ) | ||||||||
Fixed income VaR | 20.0 | 26.3 | 30.7 | 25.7 | ||||||||||||
Equity VaR | 3.7 | 5.2 | 7.6 | 7.6 | ||||||||||||
Currency VaR | 7.9 | 11.6 | 14.8 | 8.6 |
March 2007 | ||||
Shareholders and trading data | ||||
Shareholders (number) | 2,312,076 | |||
Shares outstanding (number) | 6,254,296,579 | |||
Average daily turnover (no. of shares) | 79,963,729 | |||
Share liquidity* (%) | 82 | |||
Dividend per share | euros | |||
Fourth interim dividend 2005 (01.05.06) | 0.137620 | |||
First interim dividend 2006 (01.08.06) | 0.106904 | |||
Second interim dividend 2006 (01.11.06) | 0.106904 | |||
Third interim dividend 2006 (01.02.07) | 0.106904 | |||
Fourth interim dividend 2006 (01.05.07) | 0.199913 | |||
Price movements during the year | ||||
Beginning (29.12.06) | 14.14 | |||
High | 14.75 | |||
Low | 12.81 | |||
Last (30.03.07) | 13.36 | |||
Market capitalisation (millions) (30.03.07) | 83,557 | |||
Stock market indicators | ||||
Price / Book value (X) | 1.99 | |||
P/E ratio (X) | 11.57 | |||
Yield** (%) | 4.27 |
(*).- | Number of shares traded during the year / number of shares | |
(**).- | Dividend charged to 2006 / average share price |
• | The Global Customer Relation Model, which includes 121 new clients, mainly from Latin America, was expanded. This does not mean any changes in the geographic segments, but it does affect the figures for Retail Banking (from where they come) and Global Wholesale Banking (where they are incorporated). |
• | Some adjustments were made between the results of Retail Banking and Asset Management and Insurance, for two reasons: |
— | In Abbey, the distribution of revenues between Retail Banking and Asset Management and Insurance was changed in order to adapt it to the Group’s corporate criteria. This means an increase in Retail Banking and a decline in Asset Management and Insurance, but does not change Abbey’s overall total. | ||
— | The business generated by the Group’s insurance brokers is no longer reflected in Retail Banking but in Insurance. This modification is due to recent changes in regulations and the search for greater efficiency in distribution. |
• | Continental Europe. This covers all retail banking business (including Banif, the specialised private bank), wholesale banking and asset management and insurance conducted in Europe with the exception of Abbey. Given the importance of some of these units, the financial information of the Santander Branch Network, Banesto, Santander Consumer Finance (Drive included) and Portugal is also set out. |
• | United Kingdom (Abbey). This only covers all of Abbey’s business, mainly retail banking in the UK. |
• | Latin America. This embraces all the Group’s financial activities conducted via its subsidiary banks and subsidiaries. It also includes the specialised units in Santander Private Banking, as an independent and globally managed unit, and New York’s business. Because of their specific importance, the financial statements of Brazil, Mexico and Chile are also provided. |
• | Retail Banking. This covers all customer banking businesses (except those of Corporate Banking, managed through the Global Customer Relationship Model). Because of the relative importance of this business in total activity, details are provided by both geographic areas (Continental Europe, United Kingdom-Abbey and Latin America) as well as by the main countries. The results of the hedging positions in each country are also included, conducted within the sphere of each one’s Assets and Liabilities Committee. |
• | Global Wholesale Banking. This business reflects the revenues from Global Corporate Banking, Investment Banking and Markets worldwide including all treasuries managed globally, both for trading as well as distribution to customers (always after the appropriate distribution with Retail Banking customers), as well as equities business. |
• | Asset Management and Insurance. This includes the contribution of the different units to the Group for the design and management of mutual and pension funds and insurance. Except for pension fund management entities in Latin America, which have their own distribution networks, the Group uses, and remunerates through agreements, the retail networks which place these products. This means that the result recorded in this business is net (i.e. deducting the distribution cost from gross income). |
Net operating income | Attributable profit to the Group | |||||||||||||||||||||||||||||||
Variation | Variation | |||||||||||||||||||||||||||||||
Income statement (Million euros) | Q1’ 07 | Q1’ 06 | Amount | (%) | Q1’ 07 | Q1’ 06 | Amount | (%) | ||||||||||||||||||||||||
Continental Europe | 2,098 | 1,487 | 610 | 41.0 | 1,317 | 898 | 419 | 46.7 | ||||||||||||||||||||||||
o/w: Santander Branch Network | 691 | 533 | 157 | 29.5 | 460 | 334 | 126 | 37.6 | ||||||||||||||||||||||||
Banesto | 311 | 257 | 55 | 21.3 | 163 | 148 | 16 | 10.5 | ||||||||||||||||||||||||
Santander Consumer Finance | 440 | 283 | 157 | 55.5 | 166 | 126 | 40 | 31.8 | ||||||||||||||||||||||||
Portugal | 174 | 150 | 24 | 16.0 | 132 | 114 | 18 | 15.5 | ||||||||||||||||||||||||
United Kingdom (Abbey) | 476 | 384 | 92 | 24.0 | 300 | 244 | 56 | 22.8 | ||||||||||||||||||||||||
Latin America | 1,354 | 1,074 | 280 | 26.1 | 681 | 618 | 63 | 10.1 | ||||||||||||||||||||||||
o/w: Brazil | 547 | 409 | 137 | 33.5 | 225 | 198 | 27 | 13.4 | ||||||||||||||||||||||||
Mexico | 364 | 267 | 97 | 36.3 | 156 | 142 | 14 | 9.8 | ||||||||||||||||||||||||
Chile | 210 | 194 | 16 | 8.4 | 131 | 114 | 17 | 14.9 | ||||||||||||||||||||||||
Operating areas | 3,928 | 2,945 | 983 | 33.4 | 2,298 | 1,760 | 538 | 30.5 | ||||||||||||||||||||||||
Financial management and equity stakes | (653 | ) | (412 | ) | (241 | ) | 58.4 | (496 | ) | (267 | ) | (229 | ) | 85.8 | ||||||||||||||||||
Total Group | 3,275 | 2,533 | 742 | 29.3 | 1,802 | 1,493 | 309 | 20.7 |
Efficiency ratio | ROE | NPL ratio | NPL coverage | |||||||||||||||||||||||||||||
Ratios (%) | Q1’ 07 | Q1’ 06 | Q1’ 07 | Q1’ 06 | 31.03.07 | 31.03.06 | 31.03.07 | 31.03.06 | ||||||||||||||||||||||||
Continental Europe | 35.90 | 41.20 | 25.99 | 22.23 | 0.80 | 0.76 | 202.49 | 247.61 | ||||||||||||||||||||||||
o/w: Santander Branch Network | 39.09 | 43.54 | 24.22 | 20.80 | 0.56 | 0.56 | 298.79 | 299.75 | ||||||||||||||||||||||||
Banesto | 42.00 | 45.76 | 18.45 | 20.42 | 0.42 | 0.46 | 393.19 | 392.62 | ||||||||||||||||||||||||
Santander Consumer Finance | 29.65 | 35.01 | 28.87 | 30.11 | 2.66 | 2.41 | 114.43 | 124.43 | ||||||||||||||||||||||||
Portugal | 42.96 | 44.63 | 25.56 | 23.44 | 1.16 | 0.71 | 127.55 | 258.04 | ||||||||||||||||||||||||
United Kingdom (Abbey) | 50.81 | 56.83 | 31.34 | 33.43 | 0.55 | 0.64 | 81.38 | 79.32 | ||||||||||||||||||||||||
Latin America | 42.11 | 46.35 | 30.29 | 26.63 | 1.50 | 1.71 | 160.00 | 183.37 | ||||||||||||||||||||||||
o/w: Brazil | 40.62 | 46.83 | 32.01 | 28.62 | 2.62 | 2.76 | 98.77 | 126.24 | ||||||||||||||||||||||||
Mexico | 37.29 | 44.23 | 25.41 | 24.11 | 0.83 | 0.69 | 241.35 | 335.91 | ||||||||||||||||||||||||
Chile | 39.15 | 41.01 | 37.07 | 26.20 | 1.70 | 2.15 | 147.57 | 165.07 | ||||||||||||||||||||||||
Operating areas | 40.31 | 45.64 | 27.78 | 24.82 | 0.80 | 0.83 | 164.23 | 184.72 | ||||||||||||||||||||||||
Total Group | 46.32 | 50.88 | 18.48 | 17.12 | 0.82 | 0.86 | 176.70 | 184.80 |
Employees | Branches | |||||||||||||||
Operating means | 31.03.07 | 31.03.06 | 31.03.07 | 31.03.06 | ||||||||||||
Continental Europe | 46,308 | 44,155 | 5,829 | 5,444 | ||||||||||||
o/w: Santander Branch Network | 19,337 | 19,027 | 2,839 | 2,681 | ||||||||||||
Banesto | 10,831 | 10,563 | 1,892 | 1,705 | ||||||||||||
Santander Consumer Finance | 6,374 | 5,288 | 279 | 276 | ||||||||||||
Portugal | 6,172 | 6,265 | 731 | 694 | ||||||||||||
United Kingdom (Abbey) | 16,616 | 18,622 | 711 | 712 | ||||||||||||
Latin America | 69,958 | 62,259 | 4,438 | 4,170 | ||||||||||||
o/w: Brazil | 21,680 | 21,171 | 2,044 | 1,877 | ||||||||||||
Mexico | 17,283 | 14,116 | 1,038 | 1,012 | ||||||||||||
Chile | 13,331 | 11,249 | 442 | 410 | ||||||||||||
Operating areas | 132,882 | 125,036 | 10,978 | 10,326 | ||||||||||||
Financial management and equity stakes | 1,756 | 1,494 | ||||||||||||||
Total Group | 134,638 | 126,530 | 10,978 | 10,326 |
Operating business areas | Continental Europe | |||||||||||||||||||||||
Million euros | Q1’ 07 | Q1’ 06 | Var. (%) | Q1’ 07 | Q1’ 06 | Var. (%) | ||||||||||||||||||
Income statement | ||||||||||||||||||||||||
Net interest income | 3,899 | 3,174 | 22.8 | 1,856 | 1,440 | 29.0 | ||||||||||||||||||
Inc. from companies accounted by equity method | 4 | 5 | (16.9 | ) | 2 | 2 | 42.9 | |||||||||||||||||
Net fees | 2,075 | 1,741 | 19.2 | 1,115 | 855 | 30.4 | ||||||||||||||||||
Insurance activity | 96 | 66 | 45.3 | 39 | 33 | 16.8 | ||||||||||||||||||
Commercial revenue | 6,074 | 4,986 | 21.8 | 3,012 | 2,329 | 29.3 | ||||||||||||||||||
Gains (losses) on financial transactions | 624 | 535 | 16.7 | 288 | 229 | 25.7 | ||||||||||||||||||
Gross operating income | 6,698 | 5,521 | 21.3 | 3,300 | 2,558 | 29.0 | ||||||||||||||||||
Income from non-financial services (net) and other operating income | (13 | ) | 4 | — | 9 | 13 | (25.2 | ) | ||||||||||||||||
Operating expenses | (2,757 | ) | (2,579 | ) | 6.9 | (1,212 | ) | (1,083 | ) | 11.8 | ||||||||||||||
General administrative expenses | (2,516 | ) | (2,353 | ) | 6.9 | (1,076 | ) | (959 | ) | 12.2 | ||||||||||||||
Personnel | (1,503 | ) | (1,425 | ) | 5.5 | (718 | ) | (654 | ) | 9.9 | ||||||||||||||
Other administrative expenses | (1,013 | ) | (928 | ) | 9.2 | (358 | ) | (305 | ) | 17.2 | ||||||||||||||
Depreciation and amortisation | (241 | ) | (227 | ) | 6.5 | (136 | ) | (124 | ) | 9.3 | ||||||||||||||
Net operating income | 3,928 | 2,945 | 33.4 | 2,098 | 1,487 | 41.0 | ||||||||||||||||||
Net loan loss provisions | (679 | ) | (500 | ) | 35.7 | (271 | ) | (228 | ) | 18.9 | ||||||||||||||
Other income | 47 | 20 | 136.2 | 46 | 27 | 71.9 | ||||||||||||||||||
Profit before taxes | 3,297 | 2,465 | 33.7 | 1,873 | 1,286 | 45.6 | ||||||||||||||||||
Tax on profit | (880 | ) | (660 | ) | 33.3 | (529 | ) | (381 | ) | 38.8 | ||||||||||||||
Net profit from ordinary activity | 2,417 | 1,805 | 33.9 | 1,344 | 905 | 48.5 | ||||||||||||||||||
Net profit from discontinued operations | — | 79 | (100.0 | ) | — | 40 | (100.0 | ) | ||||||||||||||||
Net consolidated profit | 2,417 | 1,884 | 28.3 | 1,344 | 946 | 42.1 | ||||||||||||||||||
Minority interests | 119 | 124 | (3.9 | ) | 27 | 48 | (43.4 | ) | ||||||||||||||||
Attributable profit to the Group | 2,298 | 1,760 | 30.5 | 1,317 | 898 | 46.7 | ||||||||||||||||||
Balance sheet | ||||||||||||||||||||||||
Loans and credits* | 530,093 | 450,694 | 17.6 | 278,028 | 223,323 | 24.5 | ||||||||||||||||||
Trading portfolio (w/o loans) | 115,943 | 111,186 | 4.3 | 32,487 | 24,243 | 34.0 | ||||||||||||||||||
Available-for-sale financial assets | 24,110 | 30,491 | (20.9 | ) | 10,449 | 14,384 | (27.4 | ) | ||||||||||||||||
Due from credit institutions* | 119,633 | 107,546 | 11.2 | 73,969 | 63,549 | 16.4 | ||||||||||||||||||
Intangible assets and property and equipment | 11,331 | 11,063 | 2.4 | 4,697 | 4,655 | 0.9 | ||||||||||||||||||
Other assets | 45,216 | 77,001 | (41.3 | ) | 16,801 | 15,628 | 7.5 | |||||||||||||||||
Total assets/liabilities & shareholders’ equity | 846,327 | 787,981 | 7.4 | 416,430 | 345,782 | 20.4 | ||||||||||||||||||
Customer deposits* | 326,924 | 303,637 | 7.7 | 139,144 | 127,670 | 9.0 | ||||||||||||||||||
Marketable debt securities* | 139,710 | 98,498 | 41.8 | 52,815 | 31,112 | 69.8 | ||||||||||||||||||
Subordinated debt | 14,052 | 14,372 | (2.2 | ) | 2,386 | 2,251 | 6.0 | |||||||||||||||||
Insurance liabilities | 12,030 | 44,569 | (73.0 | ) | 9,761 | 6,820 | 43.1 | |||||||||||||||||
Due to credit institutions* | 153,839 | 163,925 | (6.2 | ) | 77,852 | 78,508 | (0.8 | ) | ||||||||||||||||
Other liabilities | 165,149 | 133,665 | 23.6 | 112,590 | 82,675 | 36.2 | ||||||||||||||||||
Shareholders’ equity | 34,623 | 29,315 | 18.1 | 21,882 | 16,748 | 30.7 | ||||||||||||||||||
Other customer funds under management | 187,966 | 173,318 | 8.5 | 112,097 | 104,191 | 7.6 | ||||||||||||||||||
Mutual funds | 131,147 | 114,174 | 14.9 | 85,014 | 83,385 | 2.0 | ||||||||||||||||||
Pension funds | 29,996 | 29,190 | 2.8 | 11,432 | 10,080 | 13.4 | ||||||||||||||||||
Managed portfolios | 19,439 | 15,322 | 26.9 | 8,267 | 6,304 | 31.2 | ||||||||||||||||||
Savings-insurance policies | 7,383 | 14,632 | (49.5 | ) | 7,383 | 4,423 | 66.9 | |||||||||||||||||
Customer funds under management | 668,652 | �� | 589,824 | 13.4 | 306,442 | 265,224 | 15.5 |
(*) | Includes all stock of concept classified in the balance sheet |
United Kingdom (Abbey) | Latin America | |||||||||||||||||||||||
Million euros | Q1’ 07 | Q1’ 06 | Var. (%) | Q1’ 07 | Q1’ 06 | Var. (%) | ||||||||||||||||||
Income statement | ||||||||||||||||||||||||
Net interest income | 572 | 509 | 12.2 | 1,471 | 1,225 | 20.1 | ||||||||||||||||||
Inc. from companies accounted by equity method | 0 | 1 | (87.8 | ) | 1 | 2 | (33.4 | ) | ||||||||||||||||
Net fees | 251 | 252 | (0.5 | ) | 709 | 634 | 11.8 | |||||||||||||||||
Insurance activity | 0 | (0 | ) | — | 57 | 33 | 72.9 | |||||||||||||||||
Commercial revenue | 823 | 763 | 7.9 | 2,239 | 1,894 | 18.2 | ||||||||||||||||||
Gains (losses) on financial transactions | 131 | 109 | 20.4 | 205 | 196 | 4.2 | ||||||||||||||||||
Gross operating income | 955 | 872 | 9.5 | 2,444 | 2,091 | 16.9 | ||||||||||||||||||
Income from non-financial services (net) and other operating income | 14 | 16 | (10.1 | ) | (36 | ) | (24 | ) | 49.0 | |||||||||||||||
Operating expenses | (492 | ) | (503 | ) | (2.2 | ) | (1,053 | ) | (993 | ) | 6.1 | |||||||||||||
General administrative expenses | (467 | ) | (476 | ) | (2.0 | ) | (973 | ) | (917 | ) | 6.1 | |||||||||||||
Personnel | (261 | ) | (272 | ) | (3.9 | ) | (523 | ) | (499 | ) | 4.9 | |||||||||||||
Other administrative expenses | (206 | ) | (204 | ) | 0.6 | (450 | ) | (418 | ) | 7.5 | ||||||||||||||
Depreciation and amortisation | (25 | ) | (27 | ) | (6.2 | ) | (80 | ) | (75 | ) | 6.5 | |||||||||||||
Net operating income | 476 | 384 | 24.0 | 1,354 | 1,074 | 26.1 | ||||||||||||||||||
Net loan loss provisions | (81 | ) | (88 | ) | (7.9 | ) | (327 | ) | (184 | ) | 77.2 | |||||||||||||
Other income | 5 | (1 | ) | — | (4 | ) | (6 | ) | (32.5 | ) | ||||||||||||||
Profit before taxes | 400 | 295 | 35.6 | 1,023 | 883 | 15.9 | ||||||||||||||||||
Tax on profit | (100 | ) | (82 | ) | 22.0 | (250 | ) | (196 | ) | 27.5 | ||||||||||||||
Net profit from ordinary activity | 300 | 213 | 40.8 | 773 | 687 | 12.5 | ||||||||||||||||||
Net profit from discontinued operations | — | 31 | (100.0 | ) | — | 7 | (100.0 | ) | ||||||||||||||||
Net consolidated profit | 300 | 244 | 22.8 | 773 | 694 | 11.3 | ||||||||||||||||||
Minority interests | — | — | — | 92 | 76 | 20.9 | ||||||||||||||||||
Attributable profit to the Group | 300 | 244 | 22.8 | 681 | 618 | 10.1 | ||||||||||||||||||
Balance sheet | ||||||||||||||||||||||||
Loans and credits* | 192,666 | 173,841 | 10.8 | 59,399 | 53,530 | 11.0 | ||||||||||||||||||
Trading portfolio (w/o loans) | 59,273 | 61,735 | (4.0 | ) | 24,183 | 25,209 | (4.1 | ) | ||||||||||||||||
Available-for-sale financial assets | 23 | 20 | 17.3 | 13,638 | 16,087 | (15.2 | ) | |||||||||||||||||
Due from credit institutions* | 22,244 | 16,575 | 34.2 | 23,420 | 27,421 | (14.6 | ) | |||||||||||||||||
Intangible assets and property and equipment | 4,945 | 5,044 | (2.0 | ) | 1,689 | 1,364 | 23.8 | |||||||||||||||||
Other assets | 7,551 | 42,529 | (82.2 | ) | 20,865 | 18,844 | 10.7 | |||||||||||||||||
Total assets/liabilities & shareholders’ equity | 286,702 | 299,744 | (4.4 | ) | 143,194 | 142,455 | 0.5 | |||||||||||||||||
Customer deposits* | 112,292 | 109,039 | 3.0 | 75,488 | 66,929 | 12.8 | ||||||||||||||||||
Marketable debt securities* | 82,528 | 61,049 | 35.2 | 4,367 | 6,337 | (31.1 | ) | |||||||||||||||||
Subordinated debt | 9,216 | 11,045 | (16.6 | ) | 2,450 | 1,077 | 127.5 | |||||||||||||||||
Insurance liabilities | 11 | 35,912 | (100.0 | ) | 2,259 | 1,837 | 23.0 | |||||||||||||||||
Due to credit institutions* | 44,871 | 43,371 | 3.5 | 31,116 | 42,047 | (26.0 | ) | |||||||||||||||||
Other liabilities | 33,839 | 36,240 | (6.6 | ) | 18,720 | 14,751 | 26.9 | |||||||||||||||||
Shareholders’ equity | 3,946 | 3,088 | 27.8 | 8,795 | 9,479 | (7.2 | ) | |||||||||||||||||
Other customer funds under management | 13,640 | 16,112 | (15.3 | ) | 62,230 | 53,014 | 17.4 | |||||||||||||||||
Mutual funds | 13,640 | 5,904 | 131.0 | 32,494 | 24,885 | 30.6 | ||||||||||||||||||
Pension funds | — | — | — | 18,564 | 19,110 | (2.9 | ) | |||||||||||||||||
Managed portfolios | — | — | — | 11,172 | 9,018 | 23.9 | ||||||||||||||||||
Savings-insurance policies | — | 10,209 | (100.0 | ) | — | — | — | |||||||||||||||||
Customer funds under management | 217,675 | 197,245 | 10.4 | 144,534 | 127,356 | 13.5 |
(*) Includes all stock of concept classified in the balance sheet |
• | Growth came from the strong rise in commercial revenues (net interest income, fees and gains on financial transactions with customers) and from selective control of costs. The “jaws” (the difference between the growth in gross operating income and costs) was 17 p.p. and the efficiency ratio was a magnificent 35.9%, 5.3 p.p. better than in the first quarter of 2006. All big units made significant improvements. |
• | Diversified growth in profits: the four large commercial units included here all registered double digit growth and the global areas also increased significantly, particularly Global Wholesale Banking. |
• | Very favourable trend: records (excluding and including Drive) were set in the first quarter in all revenue lines, net operating income and profits. Commercial revenue was 10.0% higher than in the fourth quarter of 2006, net operating income was up 22.8% and attributable profit by 51.9% (all percentages exclude Drive in 1Q07). |
Santander | Santander | |||||||||||||||||||||||||||||||
Branch Network | Banesto | Consumer Finance | Portugal | |||||||||||||||||||||||||||||
Million euros | Q1’ 07 | (%) | Q1’ 07 | (%) | Q1’ 07 | (%) | Q1’ 07 | (%) | ||||||||||||||||||||||||
Income statement | ||||||||||||||||||||||||||||||||
Net interest income | 650 | 21.1 | 349 | 18.1 | 499 | 55.2 | 174 | 6.8 | ||||||||||||||||||||||||
Inc. from companies accounted by equity method | — | — | 0 | 39.9 | 2 | 43.3 | — | — | ||||||||||||||||||||||||
Net fees | 423 | 17.9 | 154 | 7.2 | 115 | 21.6 | 96 | 1.9 | ||||||||||||||||||||||||
Insurance activity | — | — | 12 | 47.6 | — | — | 7 | 35.6 | ||||||||||||||||||||||||
Commercial revenue | 1,073 | 19.8 | 516 | 15.1 | 616 | 47.6 | 277 | 5.6 | ||||||||||||||||||||||||
Gains (losses) on financial transactions | 74 | 4.2 | 38 | 9.4 | 4 | (62.5 | ) | 31 | 135.1 | |||||||||||||||||||||||
Gross operating income | 1,147 | 18.7 | 554 | 14.7 | 620 | 44.6 | 308 | 11.9 | ||||||||||||||||||||||||
Income from non-financial services (net) and other operating income | 5 | 141.8 | (1 | ) | — | 9 | (11.2 | ) | (2 | ) | (26.5 | ) | ||||||||||||||||||||
Operating expenses | (461 | ) | 6.0 | (241 | ) | 4.7 | (189 | ) | 21.2 | (132 | ) | 7.7 | ||||||||||||||||||||
General administrative expenses | (403 | ) | 7.0 | (213 | ) | 4.3 | (174 | ) | 22.2 | (116 | ) | 7.5 | ||||||||||||||||||||
Personnel | (303 | ) | 4.9 | (161 | ) | 6.2 | (82 | ) | 24.7 | (74 | ) | 5.1 | ||||||||||||||||||||
Other administrative expenses | (100 | ) | 14.1 | (52 | ) | (1.2 | ) | (92 | ) | 20.1 | (42 | ) | 11.9 | |||||||||||||||||||
Depreciation and amortisation | (58 | ) | (0.6 | ) | (28 | ) | 8.1 | (16 | ) | 11.4 | (17 | ) | 9.2 | |||||||||||||||||||
Net operating income | 691 | 29.5 | 311 | 21.3 | 440 | 55.5 | 174 | 16.0 | ||||||||||||||||||||||||
Net loan loss provisions | (52 | ) | (20.3 | ) | (54 | ) | 21.1 | (200 | ) | 113.5 | 6 | 74.2 | ||||||||||||||||||||
Other income | (0 | ) | (98.8 | ) | 4 | (31.9 | ) | 3 | — | (11 | ) | 122.1 | ||||||||||||||||||||
Profit before taxes | 639 | 37.6 | 262 | 19.8 | 242 | 31.5 | 169 | 14.0 | ||||||||||||||||||||||||
Tax on profit | (179 | ) | 37.4 | (77 | ) | 9.7 | (72 | ) | 24.7 | (37 | ) | 8.8 | ||||||||||||||||||||
Net profit from ordinary activity | 460 | 37.7 | 185 | 24.6 | 171 | 34.5 | 132 | 15.5 | ||||||||||||||||||||||||
Net profit from discontinued operations | — | — | — | (100.0 | ) | — | — | — | — | |||||||||||||||||||||||
Net consolidated profit | 460 | 37.7 | 185 | (4.7 | ) | 171 | 34.5 | 132 | 15.5 | |||||||||||||||||||||||
Minority interests | 0 | 267.7 | 22 | (53.3 | ) | 5 | 332.3 | 0 | 11.6 | |||||||||||||||||||||||
Attributable profit to the Group | 460 | 37.6 | 163 | 10.5 | 166 | 31.8 | 132 | 15.5 | ||||||||||||||||||||||||
Balance sheet | ||||||||||||||||||||||||||||||||
Loans and credits* | 108,104 | 16.5 | 64,337 | 30.0 | 40,979 | 26.3 | 27,942 | 9.6 | ||||||||||||||||||||||||
Trading portfolio (w/o loans) | — | — | 6,445 | 42.8 | 13 | (75.3 | ) | 934 | 5.8 | |||||||||||||||||||||||
Available-for-sale financial assets | 3 | 11.5 | 6,221 | (42.3 | ) | 58 | 38.0 | 1,003 | (56.3 | ) | ||||||||||||||||||||||
Due from credit institutions* | 93 | (0.6 | ) | 21,514 | 21.7 | 6,896 | 27.3 | 8,809 | (19.6 | ) | ||||||||||||||||||||||
Intangible assets and property and equipment | 2,189 | 13.4 | 1,106 | (29.4 | ) | 686 | 43.1 | 431 | (1.8 | ) | ||||||||||||||||||||||
Other assets | 507 | (33.4 | ) | 3,034 | (46.0 | ) | 1,406 | 13.0 | 5,391 | 43.7 | ||||||||||||||||||||||
Total assets/liabilities & shareholders’ equity | 110,896 | 16.0 | 102,656 | 14.5 | 50,037 | 26.1 | 44,509 | 1.6 | ||||||||||||||||||||||||
Customer deposits* | 50,410 | 14.9 | 43,752 | 18.0 | 13,456 | (2.1 | ) | 11,380 | (2.5 | ) | ||||||||||||||||||||||
Marketable debt securities* | — | (100.0 | ) | 25,615 | 32.1 | 12,727 | 88.5 | 11,371 | 237.2 | |||||||||||||||||||||||
Subordinated debt | — | — | 1,442 | (8.8 | ) | 576 | 461.9 | 368 | (30.9 | ) | ||||||||||||||||||||||
Insurance liabilities | — | — | — | (100.0 | ) | — | — | 4,074 | 26.8 | |||||||||||||||||||||||
Due to credit institutions* | 26 | (30.5 | ) | 19,400 | 11.2 | 19,696 | 20.8 | 13,358 | (35.4 | ) | ||||||||||||||||||||||
Other liabilities | 52,810 | 17.3 | 8,735 | (6.9 | ) | 1,087 | 0.8 | 1,696 | (24.8 | ) | ||||||||||||||||||||||
Shareholders’ equity | 7,650 | 14.8 | 3,713 | 23.0 | 2,494 | 47.1 | 2,261 | 7.5 | ||||||||||||||||||||||||
Other customer funds under management | 57,134 | 2.9 | 16,227 | 1.5 | 392 | 14.4 | 11,773 | 14.7 | ||||||||||||||||||||||||
Mutual funds | 48,377 | (2.1 | ) | 12,512 | (1.1 | ) | 333 | 11.7 | 6,160 | 4.0 | ||||||||||||||||||||||
Pension funds | 6,448 | 9.5 | 1,614 | 5.7 | 60 | 32.1 | 1,453 | 40.7 | ||||||||||||||||||||||||
Managed portfolios | — | — | 832 | 50.6 | — | — | 355 | (0.2 | ) | |||||||||||||||||||||||
Savings-insurance policies | 2,308 | — | 1,269 | 0.4 | — | — | 3,806 | 28.9 | ||||||||||||||||||||||||
Customer funds under management | 107,544 | 8.2 | 87,036 | 17.6 | 27,151 | 29.6 | 34,892 | 35.1 |
• | Strong growth in lending (+21%), particularly to individuals (+37%) and SMEs (+32%). The fastest rises were registered in |
• | Bank savings (deposits, excluding repos, and mutual funds) rose 19%. Deposits grew 11% and mutual funds 39%. Our market share of bank savings is 8.7%. Pension funds increased 7% (+20% excluding the impact of the sale of the business in Peru). |
• | The market share of total banking business (loans, deposits and mutual funds) was 9.3% and 11.4% in pension funds. |
• | Net interest income, spurred by the strong growth in business, increased 30.9%. Depending on the interest rate performance of countries, spreads remained virtually flat as a whole. In general, the fall in short-term interest rates tended to reduce spreads in Brazil and Mexico, particularly the latter. This impact was offset by growth in the most profitable segments (individuals and SMEs). In addition, the portfolios of securities improved their spreads because of the lower cost of financing. |
• | The focus on strengthening the most recurrent revenues and, specifically, developing products and services that generate fees (credit cards, cash management, foreign trade, mutual funds and insurance) was reflected in the 21.6% rise in fees. Particularly striking was the growth in fees from credit cards (+38.3%) and insurance (+26.0%). |
• | Net gains on financial transactions increased 12.8% because of customer activity and the realisation of capital gains by taking advantage of market opportunities, particularly in Brazil. |
• | Gross operating income grew 27.2% and operating expenses 15.3% (average inflation of 5%). Costs grew because of the investments in technology and promotions incurred by our subsidiaries in their specific business expansion plans, including the development of installed capacity. |
• | The efficiency ratio improved by 4.2 percentage points to 42.1% and net operating income was 37.4% higher. |
• | The strong growth in lending and the change of business mix towards products and segments with a higher return, but also with a greater risk premium, produced a 91.0% rise in net loan-loss provisions, a rate that will decelerate as the year progresses. The ratio of non-performing loans was 1.50% at the end of March, 0.21 b.p. lower than a year earlier and NPL coverage was 160% (183% a year earlier). |
• | By businesses, Retail Banking’s net operating income increased 50.0% and its profit before tax 34.1%. Global Wholesale Banking and Asset Management and Insurance registered growth of 14.5% in profit before tax and 15.1%, respectively. |
• | Average short-term interest rates, for the region as a whole, declined a little between the first quarter of 2006 and the same period of 2007, although the movements varied from country to country. They dropped in Brazil (-4.5 p.p.), Mexico (-0.8 p.p.) and increased in Chile (+0.5 p.p.), Puerto Rico (+0.8 p.p.), Argentina (+0.9 p.p.), Colombia (+1.8 p.p.) and Venezuela (+0.4 p.p.). |
• | The earnings performance in euros was negatively affected by exchange rates. The dollar, the currency used to manage the area, depreciated 9.0% against the euro, on average, between the first quarter of 2006 and the same period of 2007. Latin American currencies performed differently against the dollar, but overall the movement was basically neutral. The Brazilian real strengthened and the Mexican and Chilean pesos depreciated a little. The average exchange rate of the Brazilian real depreciated against the euro from 2.64 to 2.76; the Chilean peso from 633 to 708 and the Mexican peso from 12.7 to 14.4. |
Gross operating | Net operating | Attributable profit | ||||||||||||||||||||||
income | income | to the Group | ||||||||||||||||||||||
Million euros | Q1’ 07 | Var. (%) | Q1’ 07 | Var. (%) | Q1’ 07 | Var. (%) | ||||||||||||||||||
Brazil | 961 | 19.5 | 547 | 33.5 | 225 | 13.4 | ||||||||||||||||||
Mexico | 615 | 20.0 | 364 | 36.3 | 156 | 9.8 | ||||||||||||||||||
Chile | 353 | 6.2 | 210 | 8.4 | 131 | 14.9 | ||||||||||||||||||
Puerto Rico | 82 | 18.8 | 32 | 55.4 | 10 | 35.5 | ||||||||||||||||||
Venezuela | 151 | 41.2 | 67 | 36.4 | 46 | 8.2 | ||||||||||||||||||
Colombia | 32 | (2.1 | ) | 10 | (18.5 | ) | 8 | (54.2 | ) | |||||||||||||||
Argentina | 149 | 19.0 | 80 | 25.9 | 53 | 37.2 | ||||||||||||||||||
Rest | 27 | (37.2 | ) | (2 | ) | — | 12 | (46.7 | ) | |||||||||||||||
Subtotal | 2,369 | 17.0 | 1,307 | 26.6 | 639 | 9.9 | ||||||||||||||||||
Santander Private Banking | 75 | 13.6 | 47 | 14.4 | 42 | 13.7 | ||||||||||||||||||
Total | 2,444 | 16.9 | 1,354 | 26.1 | 681 | 10.1 |
Brazil | Mexico | Chile | ||||||||||||||||||||||
Million euros | Q1’ 07 | Var. (%) | Q1’ 07 | Var. (%) | Q1’ 07 | Var. (%) | ||||||||||||||||||
Income statement | ||||||||||||||||||||||||
Net interest income | 525 | 12.5 | 457 | 33.6 | 215 | 9.2 | ||||||||||||||||||
Inc. from companies accounted by equity method | 0 | (59.8 | ) | 0 | — | (0 | ) | — | ||||||||||||||||
Net fees | 281 | 17.7 | 140 | 1.0 | 91 | 5.9 | ||||||||||||||||||
Insurance activity | 21 | 154.8 | 10 | 63.7 | 10 | 25.0 | ||||||||||||||||||
Commercial revenue | 828 | 15.8 | 607 | 24.7 | 316 | 8.5 | ||||||||||||||||||
Gains (losses) on financial transactions | 133 | 49.7 | 8 | (69.7 | ) | 38 | (9.8 | ) | ||||||||||||||||
Gross operating income | 961 | 19.5 | 615 | 20.0 | 353 | 6.2 | ||||||||||||||||||
Income from non-financial services (net) and other operating income | (2 | ) | — | (20 | ) | 13.3 | (5 | ) | 104.2 | |||||||||||||||
Operating expenses | (413 | ) | 3.7 | (231 | ) | 1.3 | (138 | ) | 1.4 | |||||||||||||||
General administrative expenses | (381 | ) | 3.2 | (212 | ) | 0.5 | (126 | ) | 2.0 | |||||||||||||||
Personnel | (192 | ) | (2.4 | ) | (111 | ) | 3.3 | (75 | ) | 1.7 | ||||||||||||||
Other administrative expenses | (190 | ) | 9.6 | (101 | ) | (2.4 | ) | (50 | ) | 2.6 | ||||||||||||||
Depreciation and amortisation | (31 | ) | 9.2 | (19 | ) | 11.2 | (13 | ) | (4.9 | ) | ||||||||||||||
Net operating income | 547 | 33.5 | 364 | 36.3 | 210 | 8.4 | ||||||||||||||||||
Net loan loss provisions | (174 | ) | 70.5 | (90 | ) | 201.4 | (31 | ) | (12.6 | ) | ||||||||||||||
Other income | (20 | ) | — | (3 | ) | (78.7 | ) | 12 | — | |||||||||||||||
Profit before taxes | 352 | 14.6 | 271 | 20.5 | 190 | 21.1 | ||||||||||||||||||
Tax on profit | (124 | ) | 16.8 | (66 | ) | 76.8 | (31 | ) | 23.0 | |||||||||||||||
Net profit from ordinary activity | 228 | 13.4 | 206 | 9.4 | 160 | 20.8 | ||||||||||||||||||
Net profit from discontinued operations | — | — | — | — | — | — | ||||||||||||||||||
Net consolidated profit | 228 | 13.4 | 206 | 9.4 | 160 | 20.8 | ||||||||||||||||||
Minority interests | 4 | 11.9 | 50 | 8.2 | 29 | 56.2 | ||||||||||||||||||
Attributable profit to the Group | 225 | 13.4 | 156 | 9.8 | 131 | 14.9 | ||||||||||||||||||
Balance sheet | ||||||||||||||||||||||||
Loans and credits* | 14,614 | 30.3 | 13,750 | 4.5 | 15,494 | 1.6 | ||||||||||||||||||
Trading portfolio (w/o loans) | 7,055 | (15.8 | ) | 13,249 | (6.3 | ) | 1,426 | 44.1 | ||||||||||||||||
Available-for-sale financial assets | 2,708 | (57.1 | ) | 6,406 | 45.6 | 711 | (41.2 | ) | ||||||||||||||||
Due from credit institutions* | 2,425 | (69.7 | ) | 5,524 | (30.0 | ) | 2,678 | (39.9 | ) | |||||||||||||||
Intangible assets and property and equipment | 664 | 75.4 | 365 | 15.8 | 301 | (5.2 | ) | |||||||||||||||||
Other assets | 10,567 | 13.4 | 5,610 | 2.7 | 1,500 | 8.8 | ||||||||||||||||||
Total assets/liabilities & shareholders’ equity | 38,034 | (12.8 | ) | 44,904 | (1.0 | ) | 22,110 | (6.3 | ) | |||||||||||||||
Customer deposits* | 18,288 | 58.3 | 22,631 | (5.0 | ) | 13,372 | 0.8 | |||||||||||||||||
Marketable debt securities* | 947 | 0.9 | 996 | (63.7 | ) | 1,467 | (8.5 | ) | ||||||||||||||||
Subordinated debt | 1,510 | 273.3 | 58 | (6.8 | ) | 690 | 13.1 | |||||||||||||||||
Insurance liabilities | 1,550 | 28.2 | 92 | 30.8 | 59 | 26.2 | ||||||||||||||||||
Due to credit institutions* | 5,592 | (71.5 | ) | 12,273 | 2.4 | 3,586 | (32.2 | ) | ||||||||||||||||
Other liabilities | 7,172 | 3.8 | 6,800 | 57.1 | 1,520 | 49.6 | ||||||||||||||||||
Shareholders’ equity | 2,975 | 1.5 | 2,054 | (13.2 | ) | 1,416 | (20.5 | ) | ||||||||||||||||
Other customer funds under management | 18,326 | 40.2 | 12,403 | 13.3 | 12,213 | 16.2 | ||||||||||||||||||
Mutual funds | 17,558 | 41.0 | 9,017 | 17.7 | 3,811 | 29.6 | ||||||||||||||||||
Pension funds | — | — | 3,386 | 3.2 | 8,402 | 11.0 | ||||||||||||||||||
Managed portfolios | 768 | 25.0 | — | — | — | — | ||||||||||||||||||
Savings-insurance policies | — | — | — | — | — | — | ||||||||||||||||||
Customer funds under management | 39,071 | 50.5 | 36,088 | (3.9 | ) | 27,742 | 6.8 |
(*) | Includes all stock of concept classified in the balance sheet |
Variation | ||||||||||||||||
Million euros | Q1’ 07 | Q1’ 06 | Amount | (%) | ||||||||||||
Income statement | ||||||||||||||||
Net interest income (w/o dividends) | (394 | ) | (256 | ) | (139 | ) | 54.2 | |||||||||
Dividends | 3 | 14 | (11 | ) | (75.7 | ) | ||||||||||
Net interest income | (391 | ) | (241 | ) | (149 | ) | 61.8 | |||||||||
Inc. from companies accounted by equity method | 56 | 126 | (70 | ) | (55.2 | ) | ||||||||||
Net fees | 12 | (4 | ) | 16 | — | |||||||||||
Insurance activity | (1 | ) | 0 | (1 | ) | — | ||||||||||
Commercial revenue | (323 | ) | (119 | ) | (204 | ) | 171.6 | |||||||||
Gains (losses) on financial transactions | (132 | ) | (126 | ) | (6 | ) | 4.5 | |||||||||
Gross operating income | (455 | ) | (245 | ) | (210 | ) | 85.6 | |||||||||
Income from non-financial services (net) and other operating income | (5 | ) | (2 | ) | (3 | ) | 124.3 | |||||||||
Operating expenses | (193 | ) | (165 | ) | (28 | ) | 17.1 | |||||||||
General administrative expenses | (126 | ) | (111 | ) | (15 | ) | 13.8 | |||||||||
Personnel | (48 | ) | (58 | ) | 10 | (18.0 | ) | |||||||||
Other administrative expenses | (79 | ) | (53 | ) | (26 | ) | 49.1 | |||||||||
Depreciation and amortisation | (67 | ) | (54 | ) | (13 | ) | 23.9 | |||||||||
Net operating income | (653 | ) | (412 | ) | (241 | ) | 58.4 | |||||||||
Net loan loss provisions | 9 | (0 | ) | 9 | — | |||||||||||
Other income | (149 | ) | (43 | ) | (107 | ) | 249.0 | |||||||||
Profit before taxes | (794 | ) | (456 | ) | (338 | ) | 74.2 | |||||||||
Tax on profit | 304 | 227 | 78 | 34.2 | ||||||||||||
Net profit from ordinary activity | (489 | ) | (229 | ) | (261 | ) | 114.0 | |||||||||
Net profit from discontinued operations | — | 0 | (0 | ) | (100.0 | ) | ||||||||||
Net consolidated profit | (489 | ) | (229 | ) | (261 | ) | 114.0 | |||||||||
Minority interests | 6 | 38 | (32 | ) | (83.5 | ) | ||||||||||
Attributable profit to the Group | (496 | ) | (267 | ) | (229 | ) | 85.8 | |||||||||
Balance sheet | ||||||||||||||||
Trading portfolio (w/o loans) | 1,181 | 1,256 | (74 | ) | (5.9 | ) | ||||||||||
Available-for-sale financial assets | 9,960 | 42,534 | (32,574 | ) | (76.6 | ) | ||||||||||
Investments | 4,839 | 2,933 | 1,906 | 65.0 | ||||||||||||
Goodwill | 14,368 | 14,012 | 356 | 2.5 | ||||||||||||
Liquidity lent to the Group | 79,294 | 53,001 | 26,293 | 49.6 | ||||||||||||
Capital assigned to Group areas | 34,505 | 29,315 | 5,190 | 17.7 | ||||||||||||
Other assets | 37,116 | 29,010 | 8,106 | 27.9 | ||||||||||||
Total assets/liabilities & shareholders’ equity | 181,263 | 172,061 | 9,202 | 5.3 | ||||||||||||
Customer deposits* | 187 | 617 | (431 | ) | (69.7 | ) | ||||||||||
Marketable debt securities* | 82,731 | 62,202 | 20,528 | 33.0 | ||||||||||||
Subordinated debt | 19,303 | 14,612 | 4,692 | 32.1 | ||||||||||||
Preferred securities | — | — | — | — | ||||||||||||
Other liabilities | 35,640 | 56,223 | (20,582 | ) | (36.6 | ) | ||||||||||
Group capital and reserves | 43,402 | 38,407 | 4,995 | 13.0 | ||||||||||||
Other customer funds under management | — | — | — | — | ||||||||||||
Mutual funds | — | — | — | — | ||||||||||||
Pension funds | — | — | — | — | ||||||||||||
Managed portfolios | — | — | — | — | ||||||||||||
Savings-insurance policies | — | — | — | — | ||||||||||||
Customer funds under management | 102,221 | 77,432 | 24,789 | 32.0 |
(*) | Includes all stock of concept classified in the balance sheet |
• | Equity Stakes: this sub segment centralises the management of equity stakes in financial and industrial companies. |
• | Financial Management: this area carries out the global functions of managing the structural exchange rate position, the structural interest rate risk of the parent bank and the liquidity risk. The latter is conducted through issues and securitisations. It also manages shareholders’ equity. |
Operating | Retail | Global | Asset Management | |||||||||||||||||||||||||||||
business areas | Banking | Wholesale Banking | and Insurance | |||||||||||||||||||||||||||||
Million euros | Q1’ 07 | (%) | Q1’ 07 | (%) | Q1’ 07 | (%) | Q1’ 07 | (%) | ||||||||||||||||||||||||
Income statement | ||||||||||||||||||||||||||||||||
Net interest income | 3,899 | 22.8 | 3,562 | 23.6 | 325 | 14.6 | 12 | 35.1 | ||||||||||||||||||||||||
Inc. from companies accounted by equity method | 4 | (16.9 | ) | 4 | (16.9 | ) | — | — | — | — | ||||||||||||||||||||||
Net fees | 2,075 | 19.2 | 1,597 | 11.7 | 325 | 108.3 | 154 | (1.7 | ) | |||||||||||||||||||||||
Insurance activity | 96 | 45.3 | 0 | — | — | — | 96 | 45.0 | ||||||||||||||||||||||||
Commercial revenue | 6,074 | 21.8 | 5,163 | 19.6 | 650 | 47.8 | 262 | 13.0 | ||||||||||||||||||||||||
Gains (losses) on financial transactions | 624 | 16.7 | 337 | 18.1 | 281 | 18.6 | 6 | (51.3 | ) | |||||||||||||||||||||||
Gross operating income | 6,698 | 21.3 | 5,499 | 19.6 | 931 | 37.6 | 268 | 9.8 | ||||||||||||||||||||||||
Income from non-financial services (net) and other operating income | (13 | ) | — | (6 | ) | — | (7 | ) | (20.6 | ) | (0 | ) | (91.7 | ) | ||||||||||||||||||
Operating expenses | (2,757 | ) | 6.9 | (2,455 | ) | 6.3 | (207 | ) | 10.9 | (95 | ) | 13.6 | ||||||||||||||||||||
General administrative expenses | (2,516 | ) | 6.9 | (2,241 | ) | 6.5 | (186 | ) | 10.0 | (88 | ) | 11.0 | ||||||||||||||||||||
Personnel | (1,503 | ) | 5.5 | (1,339 | ) | 5.1 | (116 | ) | 9.8 | (48 | ) | 5.3 | ||||||||||||||||||||
Other administrative expenses | (1,013 | ) | 9.2 | (903 | ) | 8.7 | (70 | ) | 10.3 | (41 | ) | 18.6 | ||||||||||||||||||||
Depreciation and amortisation | (241 | ) | 6.5 | (214 | ) | 4.2 | (21 | ) | 20.1 | (7 | ) | 59.2 | ||||||||||||||||||||
Net operating income | 3,928 | 33.4 | 3,038 | 31.9 | 717 | 48.9 | 172 | 8.0 | ||||||||||||||||||||||||
Net loan loss provisions | (679 | ) | 35.7 | (723 | ) | 59.4 | 44 | — | (0 | ) | — | |||||||||||||||||||||
Other income | 47 | 136.2 | 19 | — | 34 | (10.0 | ) | (5 | ) | 204.4 | ||||||||||||||||||||||
Profit before taxes | 3,297 | 33.7 | 2,334 | 27.2 | 795 | 68.5 | 167 | 5.7 | ||||||||||||||||||||||||
Business volumes | ||||||||||||||||||||||||||||||||
Total assets | 846,327 | 7.4 | 674,358 | 6.1 | 154,173 | 8.3 | 17,796 | 80.9 | ||||||||||||||||||||||||
Loans and credits | 530,093 | 17.6 | 484,443 | 16.3 | 45,508 | 33.2 | 142 | (12.0 | ) | |||||||||||||||||||||||
Customer deposits | 326,924 | 7.7 | 284,807 | 10.8 | 42,117 | (9.5 | ) | 0 | (99.3 | ) |
• | Retail Banking in Continental Europecontinued the growth trends in volume and earnings of the last two years. Net interest income rose 27.5%, net operating income 31.2% and profit before tax 27.2%. All units (Santander Branch Network, |
• | Net operating income generated byAbbey’s Retail Bankingwas 23.8% higher, thanks to the 10.7% rise in gross operating income and containment of costs, which were slightly lower. The combined effect was an improvement in the efficiency ratio of almost 5.5 p.p. (from 56.3% in Q106 to 50.8% a year later). As a result of slightly lower loan loss provisions, profit before tax was 35.5% higher (32.5% in sterling). | |
• | The good earnings performance ofRetail Banking in Latin Americawas due to strong growth in customer business, the good performance of net interest income and net fees, and control of costs which was compatible with business development. Commercial revenue increased 20.3%, net operating income 37.5% and profit before tax 22.6%. The respective increases, excluding the exchange rate impact, were 30.9%, 50.0% and 34.1%, respectively. | |
The strategy based on increasing the number of individual customers and SMEs, developing anchor products, such as payroll and credit cards, and the focus on more profitable products in all countries was generally reflected in these increases. |
Gross operating | Net operating | Profit before | ||||||||||||||||||||||
income | income | taxes | ||||||||||||||||||||||
Million euros | Q1’ 07 | Var. (%) | Q1’ 07 | Var. (%) | Q1’ 07 | Var. (%) | ||||||||||||||||||
Continental Europe | 2,637 | 21.7 | 1,596 | 31.2 | 1,279 | 27.2 | ||||||||||||||||||
o/w: Spain | 1,886 | 17.2 | 1,113 | 26.0 | 971 | 30.7 | ||||||||||||||||||
Portugal | 262 | 6.8 | 136 | 5.8 | 131 | 3.2 | ||||||||||||||||||
United Kingdom (Abbey) | 954 | 10.7 | 476 | 23.8 | 400 | 35.5 | ||||||||||||||||||
Latin America | 1,907 | 21.5 | 966 | 37.5 | 655 | 22.6 | ||||||||||||||||||
o/w: Brazil | 713 | 17.0 | 338 | 31.0 | 163 | 1.5 | ||||||||||||||||||
Mexico | 514 | 31.6 | 299 | 65.1 | 205 | 45.8 | ||||||||||||||||||
Chile | 288 | 12.4 | 165 | 18.4 | 145 | 32.5 | ||||||||||||||||||
Total Retail Banking | 5,499 | 19.6 | 3,038 | 31.9 | 2,334 | 27.2 |
• | The solid growth ofOptimalin managed assets (+32% y-o-y excluding the exchange rate) and in the performance, despite the market’s turbulence. In the Spanish market, Optimal Alternative Management participated with Santander Asset Management in the hedge funds launched in 2006: Santander Dinámico Alternativo and Banesto Dinámico Alternativo. |
Gross operating | Net operating | Profit before | ||||||||||||||||||||||
income | income | taxes | ||||||||||||||||||||||
Million euros | Q1’ 07 | Var. (%) | Q1’ 07 | Var. (%) | Q1’ 07 | Var. (%) | ||||||||||||||||||
Mutual funds | 92 | 2.1 | 54 | 1.3 | 53 | (0.5 | ) | |||||||||||||||||
Pension funds | 66 | (11.7 | ) | 30 | (31.8 | ) | 29 | (32.4 | ) | |||||||||||||||
Insurance | 110 | 39.1 | 89 | 41.1 | 84 | 38.3 | ||||||||||||||||||
Total Asset Management and Insurance | 268 | 9.8 | 172 | 8.0 | 167 | 5.7 |
• | Inreal estate funds, where we are the clear leader in Spain (market share of 46% according to Inverco), the management capacities of the investment companies for private banking customers were widened. |
• | Inventure capital funds, Santander Private Equity managed EUR 310 million at the end of March 2007. |
Investor Relations Ciudad Grupo Santander Edificio Pereda, 1st floor Avda de Cantabria, s/n 28660 Boadilla del Monte Madrid (Spain) Tel: 34 (91) 259 65 14 / 34 (91) 259 65 20 Fax: 34 (91) 257 02 45 e-mail: investor@gruposantander.com Legal Head Office: |
Paseo Pereda, 9-12. Santander (Spain) Teléfono: 34 (942) 20 61 00 Operational Head Office: Ciudad Grupo Santander. |
Avda. de Cantabria, s/n 28660 Boadilla del Monte. Madrid (Spain) |
Variation | ||||||||||||||||||||
Q1’07 | Q1’ 06 | Amount | % | 2006 | ||||||||||||||||
Balance sheet (million euros) | ||||||||||||||||||||
Total assets | 844,240 | 814,738 | 29,502 | 3.6 | 833,873 | |||||||||||||||
Customer loans | 530,811 | 451,397 | 79,414 | 17.6 | 523,346 | |||||||||||||||
Customer funds under management | 770,679 | 668,715 | 101,964 | 15.2 | 739,223 | |||||||||||||||
Shareholders’ equity | 42,066 | 37,295 | 4,771 | 12.8 | 40,062 | |||||||||||||||
Total managed funds | 1,024,629 | 974,882 | 49,747 | 5.1 | 1,000,996 | |||||||||||||||
Income statement (million euros) | ||||||||||||||||||||
Net interest income (w/o dividends) | 3,460 | 2,883 | 577 | 20.0 | 12,084 | |||||||||||||||
Commercial revenue | 5,751 | 4,867 | 884 | 18.2 | 20,436 | |||||||||||||||
Gross operating income | 6,243 | 5,276 | 968 | 18.3 | 22,615 | |||||||||||||||
Net operating income | 3,275 | 2,533 | 742 | 29.3 | 11,369 | |||||||||||||||
Net profit from ordinary activity | 1,927 | 1,576 | 351 | 22.3 | 6,790 | |||||||||||||||
Attributable profit to the Group | 1,802 | 1,493 | 309 | 20.7 | 6,582 | * | ||||||||||||||
Profitability and efficiency (%) | ||||||||||||||||||||
EPS (euro) | 0.2887 | 0.2390 | 1.0534 | * | ||||||||||||||||
Diluted EPS (euro) | 0.2874 | 0.2380 | 1.0477 | * | ||||||||||||||||
ROE | 18.48 | 17.12 | 18.54 | * | ||||||||||||||||
ROA | 0.92 | 0.81 | 0.88 | * | ||||||||||||||||
RORWA | 1.61 | 1.57 | 1.60 | * | ||||||||||||||||
Efficiency ratio | 46.32 | 50.88 | 48.53 | |||||||||||||||||
Capital and NPL ratios (%) | ||||||||||||||||||||
BIS ratio | 13.22 | 12.84 | 12.49 | |||||||||||||||||
Tier I | 7.64 | 7.70 | 7.42 | |||||||||||||||||
NPL ratio | 0.82 | 0.86 | 0.78 | |||||||||||||||||
NPL coverage | 176.70 | 184.80 | 187.23 | |||||||||||||||||
Market capitalisation and shares | ||||||||||||||||||||
Shares outstanding (millions at period-end) | 6,254 | 6,254 | 6,254 | |||||||||||||||||
Share price (euros) | 13.36 | 12.05 | 14.14 | |||||||||||||||||
Market capitalisation (million euros) | 83,557 | 75,364 | 88,436 | |||||||||||||||||
Book value (euro) | 6.73 | 5.96 | 6.41 | |||||||||||||||||
Price / Book value (X) | 1.99 | 2.02 | 2.21 | |||||||||||||||||
P/E ratio (X) | 11.57 | 12.60 | 13.42 | * | ||||||||||||||||
Other data | ||||||||||||||||||||
Shareholders (number) | 2,312,076 | 2,398,089 | 2,310,846 | |||||||||||||||||
Number of employees | 134,638 | 126,530 | 129,749 | |||||||||||||||||
Continental Europe | 46,308 | 44,155 | 44,216 | |||||||||||||||||
United Kingdom (Abbey) | 16,616 | 18,622 | 17,146 | |||||||||||||||||
Latin America | 69,958 | 62,259 | 66,889 | |||||||||||||||||
Financial management and equity stakes | 1,756 | 1,494 | 1,498 | |||||||||||||||||
Number of branches | 10,978 | 10,326 | 10,852 | |||||||||||||||||
Continental Europe | 5,829 | 5,444 | 5,772 | |||||||||||||||||
United Kingdom (Abbey) | 711 | 712 | 712 | |||||||||||||||||
Latin America | 4,438 | 4,170 | 4,368 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Net interest income (w/o dividends) | 3,460 | 2,883 | 577 | 20.0 | ||||||||||||
Dividends | 48 | 50 | (2 | ) | (3.1 | ) | ||||||||||
Net interest income | 3,509 | 2,933 | 576 | 19.6 | ||||||||||||
Income from companies accounted for by the equity method | 60 | 131 | (70 | ) | (53.9 | ) | ||||||||||
Net fees | 2,087 | 1,738 | 350 | 20.1 | ||||||||||||
Insurance activity | 95 | 66 | 29 | 43.4 | ||||||||||||
Commercial revenue | 5,751 | 4,867 | 884 | 18.2 | ||||||||||||
Gains (losses) on financial transactions | 492 | 408 | 84 | 20.5 | ||||||||||||
Gross operating income | 6,243 | 5,276 | 968 | 18.3 | ||||||||||||
Income from non-financial services | 34 | 38 | (3 | ) | (8.8 | ) | ||||||||||
Non-financial expenses | (18 | ) | (15 | ) | (3 | ) | 19.0 | |||||||||
Other operating income | (34 | ) | (21 | ) | (13 | ) | 63.6 | |||||||||
Operating expenses | (2,950 | ) | (2,744 | ) | (206 | ) | 7.5 | |||||||||
General administrative expenses | (2,642 | ) | (2,464 | ) | (179 | ) | 7.2 | |||||||||
Personnel | (1,551 | ) | (1,483 | ) | (68 | ) | 4.6 | |||||||||
Other administrative expenses | (1,092 | ) | (981 | ) | (111 | ) | 11.3 | |||||||||
Depreciation and amortisation | (308 | ) | (280 | ) | (28 | ) | 9.8 | |||||||||
Net operating income | 3,275 | 2,533 | 742 | 29.3 | ||||||||||||
Impairment loss on assets | (683 | ) | (512 | ) | (171 | ) | 33.4 | |||||||||
Loans | (670 | ) | (501 | ) | (169 | ) | 33.8 | |||||||||
Goodwill | — | — | — | — | ||||||||||||
Other assets | (13 | ) | (11 | ) | (2 | ) | 16.3 | |||||||||
Other income | (90 | ) | (12 | ) | (78 | ) | 653.3 | |||||||||
Profit before taxes | 2,503 | 2,009 | 494 | 24.6 | ||||||||||||
Tax on profit | (576 | ) | (433 | ) | (142 | ) | 32.9 | |||||||||
Net profit from ordinary activity | 1,927 | 1,576 | 351 | 22.3 | ||||||||||||
Net profit from discontinued operations | — | 79 | (79 | ) | (100.0 | ) | ||||||||||
Net consolidated profit | 1,927 | 1,655 | 272 | 16.4 | ||||||||||||
Minority interests | 125 | 162 | (37 | ) | (22.6 | ) | ||||||||||
Attributable profit to the Group | 1,802 | 1,493 | 309 | 20.7 | ||||||||||||
Pro memoria: | ||||||||||||||||
Average total assets | 840,804 | 817,676 | 23,128 | 2.8 | ||||||||||||
Average shareholders’ equity | 39,008 | 34,899 | 4,109 | 11.8 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Net interest income (w/o dividends) | 2,883 | 2,921 | 3,079 | 3,200 | 3,460 | |||||||||||||||
Dividends | 50 | 187 | 98 | 69 | 48 | |||||||||||||||
Net interest income | 2,933 | 3,109 | 3,177 | 3,269 | 3,509 | |||||||||||||||
Income from companies accounted for by the equity method | 131 | 110 | 145 | 41 | 60 | |||||||||||||||
Net fees | 1,738 | 1,756 | 1,848 | 1,881 | 2,087 | |||||||||||||||
Insurance activity | 66 | 81 | 72 | 79 | 95 | |||||||||||||||
Commercial revenue | 4,867 | 5,056 | 5,242 | 5,270 | 5,751 | |||||||||||||||
Gains (losses) on financial transactions | 408 | 508 | 626 | 637 | 492 | |||||||||||||||
Gross operating income | 5,276 | 5,565 | 5,868 | 5,907 | 6,243 | |||||||||||||||
Income from non-financial services | 38 | 10 | 43 | 28 | 34 | |||||||||||||||
Non-financial expenses | (15 | ) | (17 | ) | (14 | ) | (24 | ) | (18 | ) | ||||||||||
Other operating income | (21 | ) | (19 | ) | (24 | ) | (56 | ) | (34 | ) | ||||||||||
Operating expenses | (2,744 | ) | (2,706 | ) | (2,785 | ) | (2,941 | ) | (2,950 | ) | ||||||||||
General administrative expenses | (2,464 | ) | (2,429 | ) | (2,500 | ) | (2,632 | ) | (2,642 | ) | ||||||||||
Personnel | (1,483 | ) | (1,466 | ) | (1,488 | ) | (1,567 | ) | (1,551 | ) | ||||||||||
Other administrative expenses | (981 | ) | (963 | ) | (1,012 | ) | (1,065 | ) | (1,092 | ) | ||||||||||
Depreciation and amortisation | (280 | ) | (276 | ) | (285 | ) | (310 | ) | (308 | ) | ||||||||||
Net operating income | 2,533 | 2,833 | 3,088 | 2,915 | 3,275 | |||||||||||||||
Impairment loss on assets | (512 | ) | (621 | ) | (710 | ) | (708 | ) | (683 | ) | ||||||||||
Loans | (501 | ) | (599 | ) | (692 | ) | (675 | ) | (670 | ) | ||||||||||
Goodwill | — | (5 | ) | — | (8 | ) | — | |||||||||||||
Other assets | (11 | ) | (17 | ) | (18 | ) | (25 | ) | (13 | ) | ||||||||||
Other income | (12 | ) | 23 | (26 | ) | (26 | ) | (90 | ) | |||||||||||
Profit before taxes (w/o capital gains) | 2,009 | 2,235 | 2,352 | 2,180 | 2,503 | |||||||||||||||
Tax on profit | (433 | ) | (458 | ) | (647 | ) | (448 | ) | (576 | ) | ||||||||||
Net profit from ordinary activity | 1,576 | 1,776 | 1,705 | 1,733 | 1,927 | |||||||||||||||
Net profit from discontinued operations | 79 | 115 | 135 | 25 | — | |||||||||||||||
Net consolidated profit (w/o capital gains) | 1,655 | 1,891 | 1,840 | 1,758 | 1,927 | |||||||||||||||
Minority interests | 162 | 169 | 109 | 123 | 125 | |||||||||||||||
Attributable profit to the Group (w/o capital gains) | 1,493 | 1,723 | 1,731 | 1,635 | 1,802 | |||||||||||||||
Net extraordinary gains and allowances | — | — | — | 1,014 | — | |||||||||||||||
Attributable profit to the Group | 1,493 | 1,723 | 1,731 | 2,649 | 1,802 |
Average (income statement) | Period-end (balance sheet) | |||||||||||||||||||
Q1 ’07 | Q1 ’06 | 31.03.07 | 31.12.06 | 31.03.06 | ||||||||||||||||
US$ | 1.3106 | 1.2019 | 1.3318 | 1.3170 | 1.2104 | |||||||||||||||
Pound sterling | 0.6706 | 0.6860 | 0.6798 | 0.6715 | 0.6964 | |||||||||||||||
Brazilian real | 2.7613 | 2.6350 | 2.6976 | 2.8118 | 2.6459 | |||||||||||||||
New Mexican peso | 14.4384 | 12.7386 | 14.6378 | 14.2881 | 13.2327 | |||||||||||||||
Chilean peso | 708.3056 | 632.7446 | 716.2420 | 700.3148 | 637.2756 | |||||||||||||||
Venezuelan bolivar | 2,814.3645 | 2,580.7784 | 2,859.7741 | 2,827.9941 | 2,599.0919 | |||||||||||||||
Argentine peso | 4.0797 | 3.7000 | 4.1635 | 4.0679 | 3.7447 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Commissions for services | 1,230 | 1,040 | 190 | 18.3 | ||||||||||||
Credit and debit cards | 181 | 164 | 17 | 10.6 | ||||||||||||
Insurance | 347 | 250 | 97 | 38.9 | ||||||||||||
Account management | 140 | 132 | 8 | 6.2 | ||||||||||||
Commercial bills | 55 | 55 | (1 | ) | (0.9 | ) | ||||||||||
Guarantees and other contingent liabilities | 87 | 72 | 15 | 20.9 | ||||||||||||
Other transactions | 420 | 367 | 52 | 14.3 | ||||||||||||
Mutual & pension funds | 525 | 510 | 15 | 2.9 | ||||||||||||
Securities services | 333 | 188 | 145 | 77.2 | ||||||||||||
Net fees | 2,087 | 1,738 | 350 | 20.1 | ||||||||||||
Insurance activity | 95 | 66 | 29 | 43.4 | ||||||||||||
Net fees and insurance business | 2,182 | 1,804 | 379 | 21.0 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Personnel expenses | 1,551 | 1,483 | 68 | 4.6 | ||||||||||||
General expenses | 1,092 | 981 | 111 | 11.3 | ||||||||||||
Information technology | 99 | 104 | (5 | ) | (4.3 | ) | ||||||||||
Communications | 85 | 94 | (9 | ) | (9.8 | ) | ||||||||||
Advertising | 136 | 116 | 20 | 16.8 | ||||||||||||
Buildings and premises | 212 | 218 | (7 | ) | (3.1 | ) | ||||||||||
Printed and office material | 33 | 27 | 6 | 21.8 | ||||||||||||
Taxes (other than profit tax) | 73 | 56 | 17 | 29.6 | ||||||||||||
Other expenses | 454 | 365 | 89 | 24.4 | ||||||||||||
Personnel and general expenses | 2,642 | 2,464 | 179 | 7.2 | ||||||||||||
Depreciation and amortisation | 308 | 280 | 28 | 9.8 | ||||||||||||
Total operating expenses | 2,950 | 2,744 | 206 | 7.5 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Non performing loans | 812 | 654 | 158 | 24.2 | ||||||||||||
Country-risk | 36 | (9 | ) | 45 | — | |||||||||||
Recovery of written-off assets | (178 | ) | (144 | ) | (33 | ) | 23.2 | |||||||||
Total | 670 | 501 | 169 | 33.8 |
Variation | ||||||||||||||||||||
Assets | 31.03.07 | 31.03.06 | Amount | % | 31.12.06 | |||||||||||||||
Cash on hand and deposits at central banks | 15,001 | 12,089 | 2,912 | 24.1 | 13,835 | |||||||||||||||
Trading portfolio | 164,849 | 153,965 | 10,884 | 7.1 | 170,423 | |||||||||||||||
Debt securities | 73,040 | 75,559 | (2,518 | ) | (3.3 | ) | 76,737 | |||||||||||||
Loans and credits | 32,668 | 28,746 | 3,922 | 13.6 | 30,583 | |||||||||||||||
Equities | 11,253 | 10,676 | 577 | 5.4 | 13,491 | |||||||||||||||
Other | 47,887 | 38,984 | 8,903 | 22.8 | 49,612 | |||||||||||||||
Other financial assets at fair value | 15,625 | 47,269 | (31,644 | ) | (66.9 | ) | 15,371 | |||||||||||||
Loans and credits | 8,002 | 6,446 | 1,556 | 24.1 | 7,973 | |||||||||||||||
Other | 7,623 | 40,823 | (33,200 | ) | (81.3 | ) | 7,398 | |||||||||||||
Available-for-sale financial assets | 34,071 | 73,025 | (38,955 | ) | (53.3 | ) | 38,698 | |||||||||||||
Debt securities | 25,842 | 66,432 | (40,589 | ) | (61.1 | ) | 32,727 | |||||||||||||
Equities | 8,228 | 6,594 | 1,635 | 24.8 | 5,971 | |||||||||||||||
Loans | 561,544 | 472,658 | 88,887 | 18.8 | 544,049 | |||||||||||||||
Deposits at credit institutions | 58,057 | 46,440 | 11,617 | 25.0 | 45,361 | |||||||||||||||
Loans and credits | 490,141 | 416,205 | 73,936 | 17.8 | 484,790 | |||||||||||||||
Other | 13,346 | 10,012 | 3,334 | 33.3 | 13,897 | |||||||||||||||
Investments | 4,912 | 3,076 | 1,836 | 59.7 | 5,006 | |||||||||||||||
Intangible assets and property and equipment | 12,687 | 12,162 | 526 | 4.3 | 12,555 | |||||||||||||||
Goodwill | 14,373 | 14,025 | 349 | 2.5 | 14,513 | |||||||||||||||
Other | 21,178 | 26,470 | (5,291 | ) | (20.0 | ) | 19,423 | |||||||||||||
Total assets | 844,240 | 814,738 | 29,502 | 3.6 | 833,873 | |||||||||||||||
Liabilities and shareholders’ equity | ||||||||||||||||||||
Trading portfolio | 126,017 | 112,684 | 13,333 | 11.8 | 123,996 | |||||||||||||||
Customer deposits | 14,306 | 13,430 | 876 | 6.5 | 16,572 | |||||||||||||||
Marketable debt securities | 22,478 | 17,247 | 5,232 | 30.3 | 17,522 | |||||||||||||||
Other | 89,233 | 82,007 | 7,226 | 8.8 | 89,902 | |||||||||||||||
Other financial liabilities at fair value | 12,513 | 13,314 | (800 | ) | (6.0 | ) | 12,411 | |||||||||||||
Customer deposits | 250 | 261 | (12 | ) | (4.5 | ) | 273 | |||||||||||||
Marketable debt securities | 12,263 | 13,052 | (789 | ) | (6.0 | ) | 12,138 | |||||||||||||
Other | — | — | — | — | — | |||||||||||||||
Financial liabilities at amortized cost | 614,256 | 569,114 | 45,142 | 7.9 | 605,303 | |||||||||||||||
Due to central banks and credit institutions | 61,073 | 105,255 | (44,182 | ) | (42.0 | ) | 73,345 | |||||||||||||
Customer deposits | 312,555 | 290,563 | 21,992 | 7.6 | 314,377 | |||||||||||||||
Marketable debt securities | 187,699 | 130,401 | 57,298 | 43.9 | 174,409 | |||||||||||||||
Subordinated debt | 33,355 | 28,984 | 4,371 | 15.1 | 30,423 | |||||||||||||||
Other financial liabilities | 19,574 | 13,911 | 5,662 | 40.7 | 12,749 | |||||||||||||||
Insurance liabilities | 12,030 | 44,569 | (32,538 | ) | (73.0 | ) | 10,704 | |||||||||||||
Provisions | 17,597 | 19,535 | (1,937 | ) | (9.9 | ) | 19,227 | |||||||||||||
Other liability accounts | 14,651 | 10,800 | 3,851 | 35.7 | 14,491 | |||||||||||||||
Preferred securities | 670 | 1,293 | (623 | ) | (48.2 | ) | 668 | |||||||||||||
Minority interests | 2,055 | 2,944 | (889 | ) | (30.2 | ) | 2,221 | |||||||||||||
Equity adjustments by valuation | 2,384 | 3,191 | (807 | ) | (25.3 | ) | 2,871 | |||||||||||||
Capital stock | 3,127 | 3,127 | — | — | 3,127 | |||||||||||||||
Reserves | 40,393 | 35,279 | 5,113 | 14.5 | 32,595 | |||||||||||||||
Attributable profit to the Group | 1,802 | 1,493 | 309 | 20.7 | 7,596 | |||||||||||||||
Less: dividends | (3,256 | ) | (2,605 | ) | (651 | ) | 25.0 | (1,337 | ) | |||||||||||
Total liabilities and shareholders’ equity | 844,240 | 814,738 | 29,502 | 3.6 | 833,873 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Assets | ||||||||||||||||||||
Cash on hand and deposits at central banks | 12,089 | 15,614 | 12,263 | 13,835 | 15,001 | |||||||||||||||
Trading portfolio | 153,965 | 162,883 | 155,051 | 170,423 | 164,849 | |||||||||||||||
Debt securities | 75,559 | 79,018 | 73,420 | 76,737 | 73,040 | |||||||||||||||
Loans and credits | 28,746 | 32,409 | 27,532 | 30,583 | 32,668 | |||||||||||||||
Equities | 10,676 | 10,104 | 11,298 | 13,491 | 11,253 | |||||||||||||||
Other | 38,984 | 41,352 | 42,801 | 49,612 | 47,887 | |||||||||||||||
Other financial assets at fair value | 47,269 | 46,459 | 14,528 | 15,371 | 15,625 | |||||||||||||||
Loans and credits | 6,446 | 6,706 | 7,340 | 7,973 | 8,002 | |||||||||||||||
Other | 40,823 | 39,753 | 7,188 | 7,398 | 7,623 | |||||||||||||||
Available-for-sale financial assets | 73,025 | 37,872 | 40,777 | 38,698 | 34,071 | |||||||||||||||
Debt securities | 66,432 | 31,227 | 33,394 | 32,727 | 25,842 | |||||||||||||||
Equities | 6,594 | 6,645 | 7,383 | 5,971 | 8,228 | |||||||||||||||
Loans | 472,658 | 496,787 | 519,124 | 544,049 | 561,544 | |||||||||||||||
Deposits at credit institutions | 46,440 | 48,789 | 44,659 | 45,361 | 58,057 | |||||||||||||||
Loans and credits | 416,205 | 437,477 | 462,121 | 484,790 | 490,141 | |||||||||||||||
Other | 10,012 | 10,521 | 12,344 | 13,897 | 13,346 | |||||||||||||||
Investments | 3,076 | 5,378 | 5,371 | 5,006 | 4,912 | |||||||||||||||
Intangible assets and property and equipment | 12,162 | 12,272 | 12,816 | 12,555 | 12,687 | |||||||||||||||
Goodwill | 14,025 | 13,959 | 14,184 | 14,513 | 14,373 | |||||||||||||||
Other | 26,470 | 26,874 | 24,426 | 19,423 | 21,178 | |||||||||||||||
Total assets | 814,738 | 818,096 | 798,540 | 833,873 | 844,240 | |||||||||||||||
Liabilities and shareholders’ equity | ||||||||||||||||||||
Trading portfolio | 112,684 | 118,934 | 118,970 | 123,996 | 126,017 | |||||||||||||||
Customer deposits | 13,430 | 14,135 | 16,956 | 16,572 | 14,306 | |||||||||||||||
Marketable debt securities | 17,247 | 20,672 | 22,115 | 17,522 | 22,478 | |||||||||||||||
Other | 82,007 | 84,127 | 79,900 | 89,902 | 89,233 | |||||||||||||||
Other financial liabilities at fair value | 13,314 | 12,713 | 12,893 | 12,411 | 12,513 | |||||||||||||||
Customer deposits | 261 | 246 | 266 | 273 | 250 | |||||||||||||||
Marketable debt securities | 13,052 | 12,467 | 12,628 | 12,138 | 12,263 | |||||||||||||||
Other | — | — | — | — | — | |||||||||||||||
Financial liabilities at amortized cost | 569,114 | 568,296 | 578,224 | 605,303 | 614,256 | |||||||||||||||
Due to central banks and credit institutions | 105,255 | 91,614 | 68,056 | 73,345 | 61,073 | |||||||||||||||
Customer deposits | 290,563 | 291,400 | 308,302 | 314,377 | 312,555 | |||||||||||||||
Marketable debt securities | 130,401 | 139,183 | 155,913 | 174,409 | 187,699 | |||||||||||||||
Subordinated debt | 28,984 | 30,240 | 31,154 | 30,423 | 33,355 | |||||||||||||||
Other financial liabilities | 13,911 | 15,859 | 14,798 | 12,749 | 19,574 | |||||||||||||||
Insurance liabilities | 44,569 | 42,487 | 9,743 | 10,704 | 12,030 | |||||||||||||||
Provisions | 19,535 | 18,861 | 18,693 | 19,227 | 17,597 | |||||||||||||||
Other liability accounts | 10,800 | 11,833 | 12,599 | 14,491 | 14,651 | |||||||||||||||
Preferred securities | 1,293 | 1,257 | 1,183 | 668 | 670 | |||||||||||||||
Minority interests | 2,944 | 2,898 | 2,457 | 2,221 | 2,055 | |||||||||||||||
Equity adjustments by valuation | 3,191 | 2,406 | 3,668 | 2,871 | 2,384 | |||||||||||||||
Capital stock | 3,127 | 3,127 | 3,127 | 3,127 | 3,127 | |||||||||||||||
Reserves | 35,279 | 32,737 | 32,704 | 32,595 | 40,393 | |||||||||||||||
Attributable profit to the Group | 1,493 | 3,216 | 4,947 | 7,596 | 1,802 | |||||||||||||||
Less: dividends | (2,605 | ) | (669 | ) | (669 | ) | (1,337 | ) | (3,256 | ) | ||||||||||
Total liabilities and shareholders’ equity | 814,738 | 818,096 | 798,540 | 833,873 | 844,240 |
Variation | ||||||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | 31.12.06 | ||||||||||||||||
Public sector | 5,604 | 5,465 | 139 | 2.5 | 5,329 | |||||||||||||||
Other residents | 204,943 | 162,722 | 42,222 | 25.9 | 199,994 | |||||||||||||||
Commercial bills | 16,173 | 14,372 | 1,801 | 12.5 | 17,276 | |||||||||||||||
Secured loans | 114,888 | 89,385 | 25,503 | 28.5 | 110,863 | |||||||||||||||
Other loans | 73,882 | 58,964 | 14,918 | 25.3 | 71,854 | |||||||||||||||
Non-resident sector | 328,561 | 290,952 | 37,609 | 12.9 | 326,187 | |||||||||||||||
Secured loans | 192,452 | 175,682 | 16,770 | 9.5 | 191,724 | |||||||||||||||
Other loans | 136,109 | 115,270 | 20,838 | 18.1 | 134,463 | |||||||||||||||
Gross loans and credits | 539,108 | 459,139 | 79,969 | 17.4 | 531,509 | |||||||||||||||
Loan-loss allowances | 8,297 | 7,742 | 556 | 7.2 | 8,163 | |||||||||||||||
Net loans and credits | 530,811 | 451,397 | 79,414 | 17.6 | 523,346 | |||||||||||||||
Pro memoria: Doubtful loans | 4,910 | 4,362 | 549 | 12.6 | 4,613 | |||||||||||||||
Public sector | 1 | 7 | (7 | ) | (90.7 | ) | 18 | |||||||||||||
Other residents | 1,264 | 1,033 | 231 | 22.3 | 1,212 | |||||||||||||||
Non-resident sector | 3,646 | 3,321 | 324 | 9.8 | 3,383 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Public sector | 5,465 | 5,628 | 5,419 | 5,329 | 5,604 | |||||||||||||||
Other residents | 162,722 | 175,294 | 188,710 | 199,994 | 204,943 | |||||||||||||||
Commercial bills | 14,372 | �� | 14,911 | 16,055 | 17,276 | 16,173 | ||||||||||||||
Secured loans | 89,385 | 96,576 | 100,228 | 110,863 | 114,888 | |||||||||||||||
Other loans | 58,964 | 63,806 | 72,427 | 71,854 | 73,882 | |||||||||||||||
Non-resident sector | 290,952 | 303,520 | 311,026 | 326,187 | 328,561 | |||||||||||||||
Secured loans | 175,682 | 179,598 | 186,849 | 191,724 | 192,452 | |||||||||||||||
Other loans | 115,270 | 123,922 | 124,177 | 134,463 | 136,109 | |||||||||||||||
Gross loans and credits | 459,139 | 484,442 | 505,156 | 531,509 | 539,108 | |||||||||||||||
Loan-loss allowances | 7,742 | 7,852 | 8,163 | 8,163 | 8,297 | |||||||||||||||
Net loans and credits | 451,397 | 476,591 | 496,993 | 523,346 | 530,811 | |||||||||||||||
Pro memoria: Doubtful loans | 4,362 | 4,470 | 4,638 | 4,613 | 4,910 | |||||||||||||||
Public sector | 7 | 19 | 18 | 18 | 1 | |||||||||||||||
Other residents | 1,033 | 1,096 | 1,175 | 1,212 | 1,264 | |||||||||||||||
Non-resident sector | 3,321 | 3,355 | 3,445 | 3,383 | 3,646 |
Variation | ||||||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | 31.12.06 | ||||||||||||||||
Non-performing loans | 4,936 | 4,370 | 566 | 13.0 | 4,608 | |||||||||||||||
NPL ratio (%) | 0.82 | 0.86 | (0.04 p. | ) | 0.78 | |||||||||||||||
Loan-loss allowances | 8,722 | 8,075 | 647 | 8.0 | 8,627 | |||||||||||||||
Specific | 2,944 | 3,148 | (204 | ) | (6.5 | ) | 2,960 | |||||||||||||
General-purpose | 5,778 | 4,927 | 850 | 17.3 | 5,667 | |||||||||||||||
NPL coverage (%) | 176.70 | 184.80 | (8.10 p. | ) | 187.23 | |||||||||||||||
Credit cost (%) ** | 0.34 | 0.23 | 0.11 p. | 0.32 | ||||||||||||||||
Ordinary non-performing and doubtful loans *** | 3,469 | 3,120 | 349 | 11.2 | 3,243 | |||||||||||||||
NPL ratio (%) *** | 0.58 | 0.62 | (0.04 p. | ) | 0.55 | |||||||||||||||
NPL coverage (%) *** | 251.40 | 258.82 | (7.42 p. | ) | 266.00 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Non-performing loans | 4,370 | 4,489 | 4,647 | 4,608 | 4,936 | |||||||||||||||
NPL ratio (%) | 0.86 | 0.83 | 0.83 | 0.78 | 0.82 | |||||||||||||||
Loan-loss allowances | 8,075 | 8,335 | 8,629 | 8,627 | 8,722 | |||||||||||||||
Specific | 3,148 | 3,139 | 3,131 | 2,960 | 2,944 | |||||||||||||||
General-purpose | 4,927 | 5,197 | 5,498 | 5,667 | 5,778 | |||||||||||||||
NPL coverage (%) | 184.80 | 185.69 | 185.70 | 187.23 | 176.70 | |||||||||||||||
Credit cost (%) ** | 0.23 | 0.27 | 0.29 | 0.32 | 0.34 |
Million euros
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Balance at beginning of period | 4,342 | 4,370 | 4,489 | 4,647 | 4,608 | |||||||||||||||
+ Net additions | 509 | 569 | 718 | 841 | 1,058 | |||||||||||||||
- Write-offs | (480 | ) | (450 | ) | (560 | ) | (880 | ) | (729 | ) | ||||||||||
Balance at period-end | 4,370 | 4,489 | 4,647 | 4,608 | 4,936 |
Variation | ||||||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | 31.12.06 | ||||||||||||||||
Public sector | 16,012 | 15,121 | 891 | 5.9 | 15,266 | |||||||||||||||
Other residents | 92,958 | 83,179 | 9,779 | 11.8 | 94,750 | |||||||||||||||
Demand deposits | 52,000 | 49,120 | 2,880 | 5.9 | 55,050 | |||||||||||||||
Time deposits | 26,013 | 18,460 | 7,553 | 40.9 | 24,670 | |||||||||||||||
REPOs | 14,945 | 15,600 | (655 | ) | (4.2 | ) | 15,030 | |||||||||||||
Non-resident sector | 218,140 | 205,954 | 12,186 | 5.9 | 221,206 | |||||||||||||||
Demand deposits | 118,573 | 115,499 | 3,074 | 2.7 | 119,861 | |||||||||||||||
Time deposits | 71,171 | 71,255 | (84 | ) | (0.1 | ) | 72,258 | |||||||||||||
REPOs | 26,377 | 16,365 | 10,012 | 61.2 | 26,343 | |||||||||||||||
Public Sector | 2,021 | 2,835 | (815 | ) | (28.7 | ) | 2,744 | |||||||||||||
Customer deposits | 327,111 | 304,255 | 22,856 | 7.5 | 331,223 | |||||||||||||||
Debt securities | 222,441 | 160,700 | 61,741 | 38.4 | 204,069 | |||||||||||||||
Subordinated debt | 33,355 | 28,984 | 4,371 | 15.1 | 30,423 | |||||||||||||||
On-balance-sheet customer funds | 582,907 | 493,938 | 88,968 | 18.0 | 565,715 | |||||||||||||||
Mutual funds | 131,147 | 114,174 | 16,974 | 14.9 | 119,838 | |||||||||||||||
Pension funds | 29,996 | 29,190 | 806 | 2.8 | 29,450 | |||||||||||||||
Managed portfolios | 19,245 | 16,781 | 2,464 | 14.7 | 17,835 | |||||||||||||||
Savings-insurance policies | 7,383 | 14,632 | (7,249 | ) | (49.5 | ) | 6,385 | |||||||||||||
Other customer funds under management | 187,772 | 174,776 | 12,996 | 7.4 | 173,509 | |||||||||||||||
Customer funds under management | 770,679 | 668,715 | 101,964 | 15.2 | 739,223 |
Variation | ||||||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | 31.12.06 | ||||||||||||||||
Spain | 78,854 | 77,463 | 1,391 | 1.8 | 77,526 | |||||||||||||||
Portugal | 6,160 | 5,922 | 238 | 4.0 | 6,040 | |||||||||||||||
United Kingdom (Abbey) | 13,640 | 5,904 | 7,736 | 131.0 | 8,307 | |||||||||||||||
Latin America | 32,494 | 24,885 | 7,609 | 30.6 | 27,965 | |||||||||||||||
Total | 131,147 | 114,174 | 16,974 | 14.9 | 119,838 |
Variation | ||||||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | 31.12.06 | ||||||||||||||||
Spain | 9,980 | 9,047 | 932 | 10.3 | 9,950 | |||||||||||||||
Portugal | 1,453 | 1,032 | 420 | 40.7 | 1,448 | |||||||||||||||
Latin America | 18,564 | 19,110 | (546 | ) | (2.9 | ) | 18,052 | |||||||||||||
Total | 29,996 | 29,190 | 806 | 2.8 | 29,450 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Public sector | 15,121 | 11,156 | 13,956 | 15,266 | 16,012 | |||||||||||||||
Other residents | 83,179 | 87,421 | 93,532 | 94,750 | 92,958 | |||||||||||||||
Demand deposits | 49,120 | 52,008 | 53,706 | 55,050 | 52,000 | |||||||||||||||
Time deposits | 18,460 | 20,194 | 23,216 | 24,670 | 26,013 | |||||||||||||||
REPOs | 15,600 | 15,219 | 16,609 | 15,030 | 14,945 | |||||||||||||||
Non-resident sector | 205,954 | 207,205 | 218,036 | 221,206 | 218,140 | |||||||||||||||
Demand deposits | 115,499 | 116,192 | 117,766 | 119,861 | 118,573 | |||||||||||||||
Time deposits | 71,255 | 70,939 | 76,312 | 72,258 | 71,171 | |||||||||||||||
REPOs | 16,365 | 17,405 | 21,680 | 26,343 | 26,377 | |||||||||||||||
Public Sector | 2,835 | 2,669 | 2,278 | 2,744 | 2,021 | |||||||||||||||
Customer deposits | 304,255 | 305,782 | 325,524 | 331,223 | 327,111 | |||||||||||||||
Debt securities | 160,700 | 172,323 | 190,655 | 204,069 | 222,441 | |||||||||||||||
Subordinated debt | 28,984 | 30,240 | 31,154 | 30,423 | 33,355 | |||||||||||||||
On-balance-sheet customer funds | 493,938 | 508,344 | 547,333 | 565,715 | 582,907 | |||||||||||||||
Mutual funds | 114,174 | 113,618 | 117,102 | 119,838 | 131,147 | |||||||||||||||
Pension funds | 29,190 | 27,709 | 27,442 | 29,450 | 29,996 | |||||||||||||||
Managed portfolios | 16,781 | 17,088 | 18,009 | 17,835 | 19,245 | |||||||||||||||
Savings-insurance policies | 14,632 | 15,377 | 5,378 | 6,385 | 7,383 | |||||||||||||||
Other customer funds under management | 174,776 | 173,791 | 167,932 | 173,509 | 187,772 | |||||||||||||||
Customer funds under management | 668,715 | 682,135 | 715,265 | 739,223 | 770,679 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Spain | 77,463 | 76,677 | 78,253 | 77,526 | 78,854 | |||||||||||||||
Portugal | 5,922 | 5,940 | 6,006 | 6,040 | 6,160 | |||||||||||||||
United Kingdom (Abbey) | 5,904 | 6,638 | 6,276 | 8,307 | 13,640 | |||||||||||||||
Latin America | 24,885 | 24,363 | 26,567 | 27,965 | 32,494 | |||||||||||||||
Total | 114,174 | 113,618 | 117,102 | 119,838 | 131,147 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Spain | 9,047 | 8,887 | 9,201 | 9,950 | 9,980 | |||||||||||||||
Portugal | 1,032 | 1,373 | 1,380 | 1,448 | 1,453 | |||||||||||||||
Latin America | 19,110 | 17,449 | 16,861 | 18,052 | 18,564 | |||||||||||||||
Total | 29,190 | 27,709 | 27,442 | 29,450 | 29,996 |
Variation | ||||||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | 31.12.06 | ||||||||||||||||
Capital stock | 3,127 | 3,127 | — | — | 3,127 | |||||||||||||||
Additional paid-in surplus | 20,370 | 20,370 | — | — | 20,370 | |||||||||||||||
Reserves | 20,124 | 14,976 | 5,148 | 34.4 | 12,352 | |||||||||||||||
Treasury stock | (102 | ) | (67 | ) | (35 | ) | 52.8 | (127 | ) | |||||||||||
On-balance-sheet shareholders’ equity | 43,520 | 38,407 | 5,113 | 13.3 | 35,722 | |||||||||||||||
Attributable profit | 1,802 | 1,493 | 309 | 20.7 | 7,596 | |||||||||||||||
Interim dividend distributed | (2,006 | ) | (1,744 | ) | (262 | ) | 15.0 | (1,337 | ) | |||||||||||
Shareholders’ equity at period-end | 43,316 | 38,156 | 5,160 | 13.5 | 41,981 | |||||||||||||||
Interim dividend not distributed | (1,250 | ) | (861 | ) | (390 | ) | 45.3 | (1,919 | ) | |||||||||||
Shareholders’ equity | 42,066 | 37,295 | 4,771 | 12.8 | 40,062 | |||||||||||||||
Valuation adjustments | 2,384 | 3,191 | (807 | ) | (25.3 | ) | 2,871 | |||||||||||||
Minority interests | 2,055 | 2,944 | (889 | ) | (30.2 | ) | 2,221 | |||||||||||||
Preferred securities | 670 | 1,293 | (623 | ) | (48.2 | ) | 668 | |||||||||||||
Preferred securities in subordinated debt | 7,483 | 6,469 | 1,013 | 15.7 | 6,837 | |||||||||||||||
Shareholders’ equity and minority interests | 54,658 | 51,193 | 3,465 | 6.8 | 52,658 |
Variation | ||||||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | 31.12.06 | ||||||||||||||||
Computable basic capital | 36,141 | 32,909 | 3,232 | 9.8 | 35,539 | |||||||||||||||
Computable supplementary capital | 26,369 | 21,978 | 4,391 | 20.0 | 24,237 | |||||||||||||||
Computable capital | 62,510 | 54,886 | 7,623 | 13.9 | 59,776 | |||||||||||||||
Risk-weighted assets | 472,937 | 427,607 | 45,330 | 10.6 | 478,733 | |||||||||||||||
BIS ratio | 13.22 | 12.84 | 0.38 | 12.49 | ||||||||||||||||
Tier 1 | 7.64 | 7.70 | (0.06 | ) | 7.42 | |||||||||||||||
Core capital | 5.97 | 5.96 | 0.01 | 5.91 | ||||||||||||||||
Shareholders’ equity surplus | 24,675 | 20,678 | 3,997 | 19.3 | 21,478 |
Q1 ’07 | Q1 ’06 | |||||||
Available-for-sale financial assets | (295 | ) | 481 | |||||
Other financial liabilities at fair value | — | — | ||||||
Cash flow hedges | (34 | ) | (50 | ) | ||||
Hedges of net investments in businesses abroad | 35 | 33 | ||||||
Exchange differences | (192 | ) | (349 | ) | ||||
Long-term assets for sale | — | — | ||||||
Net revenues recorded in shareholders’ equity | (487 | ) | 114 | |||||
Net consolidated profit (published) | 1,927 | 1,655 | ||||||
Adjustments for changes in accounting criteria | — | — | ||||||
Adjustments for misstatements | — | — | ||||||
Net consolidated profit | 1,927 | 1,655 | ||||||
Parent Bank | 1,315 | 1,607 | ||||||
Minority interests | 125 | 162 | ||||||
Total revenues and expenses | 1,441 | 1,769 |
Q1 ’07 | Q1 ’06 | |||||||
1. Cash flows from operating activities | ||||||||
Consolidated profit | 1,927 | 1,655 | ||||||
Adjustments to profit | 2,472 | 1,837 | ||||||
Adjusted profit | 4,399 | 3,492 | ||||||
Net increase/decrease in operating assets | (10,030 | ) | (10,504 | ) | ||||
Net increase/decrease in operating liabilities | (18,088 | ) | (9,166 | ) | ||||
Total net cash flows from operating activities (1) | (23,719 | ) | (16,178 | ) | ||||
2. Cash flows from investing activities | ||||||||
Investments (-) | (632 | ) | (567 | ) | ||||
Divestments (+) | 338 | 218 | ||||||
Total net cash flows from investing activities (2) | (294 | ) | (349 | ) | ||||
3. Cash flows from financing activities | ||||||||
Disposal of own equity instruments | 1,827 | 1,873 | ||||||
Acquisition of own equity instruments | (1,803 | ) | (1,887 | ) | ||||
Issuance debt securities | 47,362 | 23,554 | ||||||
Redemption debt securities | (21,393 | ) | (10,230 | ) | ||||
Dividends paid | (669 | ) | (581 | ) | ||||
Others | (307 | ) | (440 | ) | ||||
Total net cash flows from financing activities (3) | 25,018 | 12,289 | ||||||
4. Effect of exchange rate changes on cash and cash equivalents (4) | 160 | 240 | ||||||
5. Net increase/decrease in cash and cash equivalents (1+2+3+4) | 1,165 | (3,998 | ) | |||||
Cash and cash equivalents at beginning of period | 13,835 | 16,086 | ||||||
Cash and cash equivalents at end of period | 15,001 | 12,088 |
Net operating income | Attributable profit to the Group | |||||||||||||||||||||||||||||||
Variation | Variation | |||||||||||||||||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||||||||||||||
Income statement (million euros) | ||||||||||||||||||||||||||||||||
Continental Europe | 2,098 | 1,487 | 610 | 41.0 | 1,317 | 898 | 419 | 46.7 | ||||||||||||||||||||||||
o/w: Santander Branch Network | 691 | 533 | 157 | 29.5 | 460 | 334 | 126 | 37.6 | ||||||||||||||||||||||||
Banesto | 311 | 257 | 55 | 21.3 | 163 | 148 | 16 | 10.5 | ||||||||||||||||||||||||
Santander Consumer Finance | 440 | 283 | 157 | 55.5 | 166 | 126 | 40 | 31.8 | ||||||||||||||||||||||||
Portugal | 174 | 150 | 24 | 16.0 | 132 | 114 | 18 | 15.5 | ||||||||||||||||||||||||
United Kingdom (Abbey) | 476 | 384 | 92 | 24.0 | 300 | 244 | 56 | 22.8 | ||||||||||||||||||||||||
Latin America | 1,354 | 1,074 | 280 | 26.1 | 681 | 618 | 63 | 10.1 | ||||||||||||||||||||||||
o/w: Brazil | 547 | 409 | 137 | 33.5 | 225 | 198 | 27 | 13.4 | ||||||||||||||||||||||||
Mexico | 364 | 267 | 97 | 36.3 | 156 | 142 | 14 | 9.8 | ||||||||||||||||||||||||
Chile | 210 | 194 | 16 | 8.4 | 131 | 114 | 17 | 14.9 | ||||||||||||||||||||||||
Operating areas | 3,928 | 2,945 | 983 | 33.4 | 2,298 | 1,760 | 538 | 30.5 | ||||||||||||||||||||||||
Financial management and equity stakes | (653 | ) | (412 | ) | (241 | ) | 58.4 | (496 | ) | (267 | ) | (229 | ) | 85.8 | ||||||||||||||||||
Total Group | 3,275 | 2,533 | 742 | 29.3 | 1,802 | 1,493 | 309 | 20.7 |
Efficiency ratio | ROE | NPL ratio | NPL coverage | |||||||||||||||||||||||||||||
Q1 ’07 | Q1 ’06 | Q1 ’07 | Q1 ’06 | 31.03.07 | 31.03.06 | 31.03.07 | 31.03.06 | |||||||||||||||||||||||||
Ratios (%) | ||||||||||||||||||||||||||||||||
Continental Europe | 35.90 | 41.20 | 25.99 | 22.23 | 0.80 | 0.76 | 202.49 | 247.61 | ||||||||||||||||||||||||
o/w: Santander Branch Network | 39.09 | 43.54 | 24.22 | 20.80 | 0.56 | 0.56 | 298.79 | 299.75 | ||||||||||||||||||||||||
Banesto | 42.00 | 45.76 | 18.45 | 20.42 | 0.42 | 0.46 | 393.19 | 392.62 | ||||||||||||||||||||||||
Santander Consumer Finance | 29.65 | 35.01 | 28.87 | 30.11 | 2.66 | 2.41 | 114.43 | 124.43 | ||||||||||||||||||||||||
Portugal | 42.96 | 44.63 | 25.56 | 23.44 | 1.16 | 0.71 | 127.55 | 258.04 | ||||||||||||||||||||||||
United Kingdom (Abbey) | 50.81 | 56.83 | 31.34 | 33.43 | 0.55 | 0.64 | 81.38 | 79.32 | ||||||||||||||||||||||||
Latin America | 42.11 | 46.35 | 30.29 | 26.63 | 1.50 | 1.71 | 160.00 | 183.37 | ||||||||||||||||||||||||
o/w: Brazil | 40.62 | 46.83 | 32.01 | 28.62 | 2.62 | 2.76 | 98.77 | 126.24 | ||||||||||||||||||||||||
Mexico | 37.29 | 44.23 | 25.41 | 24.11 | 0.83 | 0.69 | 241.35 | 335.91 | ||||||||||||||||||||||||
Chile | 39.15 | 41.01 | 37.07 | 26.20 | 1.70 | 2.15 | 147.57 | 165.07 | ||||||||||||||||||||||||
Operating areas | 40.31 | 45.64 | 27.78 | 24.82 | 0.80 | 0.83 | 164.23 | 184.72 | ||||||||||||||||||||||||
Total Group | 46.32 | 50.88 | 18.48 | 17.12 | 0.82 | 0.86 | 176.70 | 184.80 |
Employees | Branches | |||||||||||||||
31.03.07 | 31.03.06 | 31.03.07 | 31.03.06 | |||||||||||||
Operating means | ||||||||||||||||
Continental Europe | 46,308 | 44,155 | 5,829 | 5,444 | ||||||||||||
o/w: Santander Branch Network | 19,337 | 19,027 | 2,839 | 2,681 | ||||||||||||
Banesto | 10,831 | 10,563 | 1,892 | 1,705 | ||||||||||||
Santander Consumer Finance | 6,374 | 5,288 | 279 | 276 | ||||||||||||
Portugal | 6,172 | 6,265 | 731 | 694 | ||||||||||||
United Kingdom (Abbey) | 16,616 | 18,622 | 711 | 712 | ||||||||||||
Latin America | 69,958 | 62,259 | 4,438 | 4,170 | ||||||||||||
o/w: Brazil | 21,680 | 21,171 | 2,044 | 1,877 | ||||||||||||
Mexico | 17,283 | 14,116 | 1,038 | 1,012 | ||||||||||||
Chile | 13,331 | 11,249 | 442 | 410 | ||||||||||||
Operating areas | 132,882 | 125,036 | 10,978 | 10,326 | ||||||||||||
Financial management and equity stakes | 1,756 | 1,494 | ||||||||||||||
Total Group | 134,638 | 126,530 | 10,978 | 10,326 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 3,899 | 3,174 | 725 | 22.8 | ||||||||||||
Income from companies accounted for by the equity method | 4 | 5 | (1 | ) | (16.9 | ) | ||||||||||
Net fees | 2,075 | 1,741 | 334 | 19.2 | ||||||||||||
Insurance activity | 96 | 66 | 30 | 45.3 | ||||||||||||
Commercial revenue | 6,074 | 4,986 | 1,088 | 21.8 | ||||||||||||
Gains (losses) on financial transactions | 624 | 535 | 89 | 16.7 | ||||||||||||
Gross operating income | 6,698 | 5,521 | 1,178 | 21.3 | ||||||||||||
Income from non-financial services (net) and other operating income | (13 | ) | 4 | (17 | ) | — | ||||||||||
Operating expenses | (2,757 | ) | (2,579 | ) | (178 | ) | 6.9 | |||||||||
General administrative expenses | (2,516 | ) | (2,353 | ) | (163 | ) | 6.9 | |||||||||
Personnel | (1,503 | ) | (1,425 | ) | (78 | ) | 5.5 | |||||||||
Other administrative expenses | (1,013 | ) | (928 | ) | �� | (85 | ) | 9.2 | ||||||||
Depreciation and amortisation | (241 | ) | (227 | ) | (15 | ) | 6.5 | |||||||||
Net operating income | 3,928 | 2,945 | 983 | 33.4 | ||||||||||||
Net loan loss provisions | (679 | ) | (500 | ) | (178 | ) | 35.7 | |||||||||
Other income | 47 | 20 | 27 | 136.2 | ||||||||||||
Profit before taxes | 3,297 | 2,465 | 832 | 33.7 | ||||||||||||
Tax on profit | (880 | ) | (660 | ) | (220 | ) | 33.3 | |||||||||
Net profit from ordinary activity | 2,417 | 1,805 | 612 | 33.9 | ||||||||||||
Net profit from discontinued operations | — | 79 | (79 | ) | (100.0 | ) | ||||||||||
Net consolidated profit | 2,417 | 1,884 | 533 | 28.3 | ||||||||||||
Minority interests | 119 | 124 | (5 | ) | (3.9 | ) | ||||||||||
Attributable profit to the Group | 2,298 | 1,760 | 538 | 30.5 |
Variation | ||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | |||||||||||||
Balance sheet | ||||||||||||||||
Loans and credits* | 530,093 | 450,694 | 79,399 | 17.6 | ||||||||||||
Trading portfolio (w/o loans) | 115,943 | 111,186 | 4,757 | 4.3 | ||||||||||||
Available-for-sale financial assets | 24,110 | 30,491 | (6,381 | ) | (20.9 | ) | ||||||||||
Due from credit institutions* | 119,633 | 107,546 | 12,088 | 11.2 | ||||||||||||
Intangible assets and property and equipment | 11,331 | 11,063 | 268 | 2.4 | ||||||||||||
Other assets | 45,216 | 77,001 | (31,785 | ) | (41.3 | ) | ||||||||||
Total assets/liabilities & shareholders’ equity | 846,327 | 787,981 | 58,346 | 7.4 | ||||||||||||
Customer deposits* | 326,924 | 303,637 | 23,286 | 7.7 | ||||||||||||
Marketable debt securities* | 139,710 | 98,498 | 41,212 | 41.8 | ||||||||||||
Subordinated debt | 14,052 | 14,372 | (320 | ) | (2.2 | ) | ||||||||||
Insurance liabilities | 12,030 | 44,569 | (32,538 | ) | (73.0 | ) | ||||||||||
Due to credit institutions* | 153,839 | 163,925 | (10,086 | ) | (6.2 | ) | ||||||||||
Other liabilities | 165,149 | 133,665 | 31,484 | 23.6 | ||||||||||||
Shareholders’ equity | 34,623 | 29,315 | 5,308 | 18.1 | ||||||||||||
Other customer funds under management | 187,966 | 173,318 | 14,648 | 8.5 | ||||||||||||
Mutual funds | 131,147 | 114,174 | 16,974 | 14.9 | ||||||||||||
Pension funds | 29,996 | 29,190 | 806 | 2.8 | ||||||||||||
Managed portfolios | 19,439 | 15,322 | 4,117 | 26.9 | ||||||||||||
Savings-insurance policies | 7,383 | 14,632 | (7,249 | ) | (49.5 | ) | ||||||||||
Customer funds under management | 668,652 | 589,824 | 78,827 | 13.4 |
Ratios (%) and other data | ||||||||||||||||
ROE | 27.78 | 24.82 | 2.96 p. | |||||||||||||
Efficiency ratio | 40.31 | 45.64 | (5.33 p. | ) | ||||||||||||
NPL ratio | 0.80 | 0.83 | (0.03 p. | ) | ||||||||||||
NPL coverage | 164.23 | 184.72 | (20.49 p. | ) | ||||||||||||
Number of employees (direct & indirect) | 132,882 | 125,036 | 7,846 | 6.27 | ||||||||||||
Number of branches | 10,978 | 10,326 | 652 | 6.31 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 3,174 | 3,345 | 3,513 | 3,562 | 3,899 | |||||||||||||||
Income from companies accounted for by the equity method | 5 | 4 | 3 | 4 | 4 | |||||||||||||||
Net fees | 1,741 | 1,759 | 1,847 | 1,887 | 2,075 | |||||||||||||||
Insurance activity | 66 | 79 | 72 | 85 | 96 | |||||||||||||||
Commercial revenue | 4,986 | 5,187 | 5,435 | 5,538 | 6,074 | |||||||||||||||
Gains (losses) on financial transactions | 535 | 274 | 509 | 448 | 624 | |||||||||||||||
Gross operating income | 5,521 | 5,461 | 5,944 | 5,986 | 6,698 | |||||||||||||||
Income from non-financial services (net) and other operating income | 4 | (19 | ) | 6 | (29 | ) | (13 | ) | ||||||||||||
Operating expenses | (2,579 | ) | (2,569 | ) | (2,640 | ) | (2,808 | ) | (2,757 | ) | ||||||||||
General administrative expenses | (2,353 | ) | (2,334 | ) | (2,420 | ) | (2,554 | ) | (2,516 | ) | ||||||||||
Personnel | (1,425 | ) | (1,426 | ) | (1,438 | ) | (1,512 | ) | (1,503 | ) | ||||||||||
Other administrative expenses | (928 | ) | (908 | ) | (983 | ) | (1,042 | ) | (1,013 | ) | ||||||||||
Depreciation and amortisation | (227 | ) | (236 | ) | (220 | ) | (254 | ) | (241 | ) | ||||||||||
Net operating income | 2,945 | 2,873 | 3,310 | 3,149 | 3,928 | |||||||||||||||
Net loan loss provisions | (500 | ) | (699 | ) | (687 | ) | (672 | ) | (679 | ) | ||||||||||
Other income | 20 | (50 | ) | (114 | ) | (140 | ) | 47 | ||||||||||||
Profit before taxes (w/o capital gains) | 2,465 | 2,124 | 2,509 | 2,337 | 3,297 | |||||||||||||||
Tax on profit | (660 | ) | (516 | ) | (656 | ) | (635 | ) | (880 | ) | ||||||||||
Net profit from ordinary activity | 1,805 | 1,608 | 1,853 | 1,702 | 2,417 | |||||||||||||||
Net profit from discontinued operations | 79 | 104 | 55 | 27 | — | |||||||||||||||
Net consolidated profit (w/o capital gains) | 1,884 | 1,712 | 1,908 | 1,729 | 2,417 | |||||||||||||||
Minority interests | 124 | 133 | 96 | 120 | 119 | |||||||||||||||
Attributable profit to the Group (w/o capital gains) | 1,760 | 1,579 | 1,812 | 1,609 | 2,298 | |||||||||||||||
Net extraordinary gains and allowances | — | — | — | 674 | — | |||||||||||||||
Attributable profit to the Group | 1,760 | 1,579 | 1,812 | 2,283 | 2,298 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Balance sheet | ||||||||||||||||||||
Loans and credits* | 450,694 | 475,897 | 496,404 | 522,372 | 530,093 | |||||||||||||||
Trading portfolio (w/o loans) | 111,186 | 119,154 | 114,841 | 123,183 | 115,943 | |||||||||||||||
Available-for-sale financial assets | 30,491 | 29,793 | 30,990 | 31,093 | 24,110 | |||||||||||||||
Due from credit institutions* | 107,546 | 101,866 | 106,322 | 105,557 | 119,633 | |||||||||||||||
Intangible assets and property and equipment | 11,063 | 11,262 | 11,797 | 11,312 | 11,331 | |||||||||||||||
Other assets | 77,001 | 78,232 | 44,993 | 44,116 | 45,216 | |||||||||||||||
Total assets/liabilities & shareholders’ equity | 787,981 | 816,205 | 805,348 | 837,632 | 846,327 | |||||||||||||||
Customer deposits* | 303,637 | 304,698 | 324,555 | 330,727 | 326,924 | |||||||||||||||
Marketable debt securities* | 98,498 | 106,027 | 117,162 | 125,748 | 139,710 | |||||||||||||||
Subordinated debt | 14,372 | 14,390 | 14,985 | 14,176 | 14,052 | |||||||||||||||
Insurance liabilities | 44,569 | 42,487 | 9,743 | 10,704 | 12,030 | |||||||||||||||
Due to credit institutions* | 163,925 | 178,137 | 157,929 | 172,439 | 153,839 | |||||||||||||||
Other liabilities | 133,665 | 142,871 | 151,927 | 154,696 | 165,149 | |||||||||||||||
Shareholders’ equity | 29,315 | 27,595 | 29,047 | 29,143 | 34,623 | |||||||||||||||
Other customer funds under management | 173,318 | 172,554 | 166,717 | 173,509 | 187,966 | |||||||||||||||
Mutual funds | 114,174 | 113,618 | 117,102 | 119,838 | 131,147 | |||||||||||||||
Pension funds | 29,190 | 27,709 | 27,442 | 29,450 | 29,996 | |||||||||||||||
Managed portfolios | 15,322 | 15,850 | 16,795 | 17,835 | 19,439 | |||||||||||||||
Savings-insurance policies | 14,632 | 15,377 | 5,378 | 6,385 | 7,383 | |||||||||||||||
Customer funds under management | 589,824 | 597,669 | 623,420 | 644,159 | 668,652 |
Other information | ||||||||||||||||||||
NPL ratio** | 0.88 | 0.85 | 0.84 | 0.80 | 0.80 | |||||||||||||||
NPL coverage** | 175.07 | 175.01 | 175.03 | 176.49 | 164.23 | |||||||||||||||
Risk-weighted assets | 391,856 | 402,812 | 411,015 | 422,833 | 418,932 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 1,856 | 1,440 | 417 | 29.0 | ||||||||||||
Income from companies accounted for by the equity method | 2 | 2 | 1 | 42.9 | ||||||||||||
Net fees | 1,115 | 855 | 260 | 30.4 | ||||||||||||
Insurance activity | 39 | 33 | 6 | 16.8 | ||||||||||||
Commercial revenue | 3,012 | 2,329 | 683 | 29.3 | ||||||||||||
Gains (losses) on financial transactions | 288 | 229 | 59 | 25.7 | ||||||||||||
Gross operating income | 3,300 | 2,558 | 742 | 29.0 | ||||||||||||
Income from non-financial services (net) and other operating income | 9 | 13 | (3 | ) | (25.2 | ) | ||||||||||
Operating expenses | (1,212 | ) | (1,083 | ) | (128 | ) | 11.8 | |||||||||
General administrative expenses | (1,076 | ) | (959 | ) | (117 | ) | 12.2 | |||||||||
Personnel | (718 | ) | (654 | ) | (64 | ) | 9.9 | |||||||||
Other administrative expenses | (358 | ) | (305 | ) | (52 | ) | 17.2 | |||||||||
Depreciation and amortisation | (136 | ) | (124 | ) | (12 | ) | 9.3 | |||||||||
Net operating income | 2,098 | 1,487 | 610 | 41.0 | ||||||||||||
Net loan loss provisions | (271 | ) | (228 | ) | (43 | ) | 18.9 | |||||||||
Other income | 46 | 27 | 19 | 71.9 | ||||||||||||
Profit before taxes | 1,873 | 1,286 | 587 | 45.6 | ||||||||||||
Tax on profit | (529 | ) | (381 | ) | (148 | ) | 38.8 | |||||||||
Net profit from ordinary activity | 1,344 | 905 | 439 | 48.5 | ||||||||||||
Net profit from discontinued operations | — | 40 | (40 | ) | (100.0 | ) | ||||||||||
Net consolidated profit | 1,344 | 946 | 399 | 42.1 | ||||||||||||
Minority interests | 27 | 48 | (21 | ) | (43.4 | ) | ||||||||||
Attributable profit to the Group | 1,317 | 898 | 419 | 46.7 |
Variation | ||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | |||||||||||||
Balance sheet | ||||||||||||||||
Loans and credits* | 278,028 | 223,323 | 54,705 | 24.5 | ||||||||||||
Trading portfolio (w/o loans) | 32,487 | 24,243 | 8,244 | 34.0 | ||||||||||||
Available-for-sale financial assets | 10,449 | 14,384 | (3,935 | ) | (27.4 | ) | ||||||||||
Due from credit institutions* | 73,969 | 63,549 | 10,420 | 16.4 | ||||||||||||
Intangible assets and property and equipment | 4,697 | 4,655 | 42 | 0.9 | ||||||||||||
Other assets | 16,801 | 15,628 | 1,173 | 7.5 | ||||||||||||
Total assets/liabilities & shareholders’ equity | 416,430 | 345,782 | 70,649 | 20.4 | ||||||||||||
Customer deposits* | 139,144 | 127,670 | 11,475 | 9.0 | ||||||||||||
Marketable debt securities* | 52,815 | 31,112 | 21,703 | 69.8 | ||||||||||||
Subordinated debt | 2,386 | 2,251 | 136 | 6.0 | ||||||||||||
Insurance liabilities | 9,761 | 6,820 | 2,941 | 43.1 | ||||||||||||
Due to credit institutions* | 77,852 | 78,508 | (655 | ) | (0.8 | ) | ||||||||||
Other liabilities | 112,590 | 82,675 | 29,916 | 36.2 | ||||||||||||
Shareholders’ equity | 21,882 | 16,748 | 5,134 | 30.7 | ||||||||||||
Other customer funds under management | 112,097 | 104,191 | 7,905 | 7.6 | ||||||||||||
Mutual funds | 85,014 | 83,385 | 1,629 | 2.0 | ||||||||||||
Pension funds | 11,432 | 10,080 | 1,353 | 13.4 | ||||||||||||
Managed portfolios | 8,267 | 6,304 | 1,964 | 31.2 | ||||||||||||
Savings-insurance policies | 7,383 | 4,423 | 2,960 | 66.9 | ||||||||||||
Customer funds under management | 306,442 | 265,224 | 41,219 | 15.5 |
Ratios (%) and other data | ||||||||||||||||
ROE | 25.99 | 22.23 | 3.76 p. | |||||||||||||
Efficiency ratio | 35.90 | 41.20 | (5.30 p. | ) | ||||||||||||
NPL ratio | 0.80 | 0.76 | 0.04 p. | |||||||||||||
NPL coverage | 202.49 | 247.61 | (45.12 p. | ) | ||||||||||||
Number of employees (direct & indirect) | 46,308 | 44,155 | 2,153 | 4.9 | ||||||||||||
Number of branches | 5,829 | 5,444 | 385 | 7.1 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 1,440 | 1,532 | 1,613 | 1,622 | 1,856 | |||||||||||||||
Income from companies accounted for by the equity method | 2 | 0 | 2 | 2 | 2 | |||||||||||||||
Net fees | 855 | 887 | 965 | 946 | 1,115 | |||||||||||||||
Insurance activity | 33 | 35 | 34 | 35 | 39 | |||||||||||||||
Commercial revenue | 2,329 | 2,454 | 2,614 | 2,605 | 3,012 | |||||||||||||||
Gains (losses) on financial transactions | 229 | 95 | 211 | 173 | 288 | |||||||||||||||
Gross operating income | 2,558 | 2,549 | 2,825 | 2,778 | 3,300 | |||||||||||||||
Income from non-financial services (net) and other operating income | 13 | (7 | ) | 17 | 18 | 9 | ||||||||||||||
Operating expenses | (1,083 | ) | (1,101 | ) | (1,104 | ) | (1,190 | ) | (1,212 | ) | ||||||||||
General administrative expenses | (959 | ) | (969 | ) | (978 | ) | (1,050 | ) | (1,076 | ) | ||||||||||
Personnel | (654 | ) | (663 | ) | (663 | ) | (707 | ) | (718 | ) | ||||||||||
Other administrative expenses | (305 | ) | (307 | ) | (316 | ) | (344 | ) | (358 | ) | ||||||||||
Depreciation and amortisation | (124 | ) | (132 | ) | (126 | ) | (140 | ) | (136 | ) | ||||||||||
Net operating income | 1,487 | 1,440 | 1,738 | 1,605 | 2,098 | |||||||||||||||
Net loan loss provisions | (228 | ) | (379 | ) | (412 | ) | (293 | ) | (271 | ) | ||||||||||
Other income | 27 | 74 | (46 | ) | (85 | ) | 46 | |||||||||||||
Profit before taxes (w/o capital gains) | 1,286 | 1,135 | 1,279 | 1,227 | 1,873 | |||||||||||||||
Tax on profit | (381 | ) | (317 | ) | (370 | ) | (347 | ) | (529 | ) | ||||||||||
Net profit from ordinary activity | 905 | 818 | 909 | 879 | 1,344 | |||||||||||||||
Net profit from discontinued operations | 40 | 45 | 31 | 26 | — | |||||||||||||||
Net consolidated profit (w/o capital gains) | 946 | 863 | 940 | 906 | 1,344 | |||||||||||||||
Minority interests | 48 | 60 | 32 | 44 | 27 | |||||||||||||||
Attributable profit to the Group (w/o capital gains) | 898 | 803 | 908 | 862 | 1,317 | |||||||||||||||
Net extraordinary gains and allowances | — | — | — | 674 | — | |||||||||||||||
Attributable profit to the Group | 898 | 803 | 908 | 1,535 | 1,317 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Balance sheet | ||||||||||||||||||||
Loans and credits* | 223,323 | 240,044 | 256,188 | 271,687 | 278,028 | |||||||||||||||
Trading portfolio (w/o loans) | 24,243 | 31,599 | 30,300 | 33,831 | 32,487 | |||||||||||||||
Available-for-sale financial assets | 14,384 | 13,250 | 13,904 | 13,126 | 10,449 | |||||||||||||||
Due from credit institutions* | 63,549 | 64,493 | 66,128 | 67,061 | 73,969 | |||||||||||||||
Intangible assets and property and equipment | 4,655 | 4,983 | 5,241 | 4,558 | 4,697 | |||||||||||||||
Other assets | 15,628 | 16,733 | 18,613 | 18,583 | 16,801 | |||||||||||||||
Total assets/liabilities & shareholders’ equity | 345,782 | 371,102 | 390,375 | 408,846 | 416,430 | |||||||||||||||
Customer deposits* | 127,670 | 128,791 | 137,056 | 140,231 | 139,144 | |||||||||||||||
Marketable debt securities* | 31,112 | 35,066 | 42,092 | 47,632 | 52,815 | |||||||||||||||
Subordinated debt | 2,251 | 2,185 | 2,621 | 2,362 | 2,386 | |||||||||||||||
Insurance liabilities | 6,820 | 7,133 | 7,739 | 8,547 | 9,761 | |||||||||||||||
Due to credit institutions* | 78,508 | 85,141 | 82,310 | 89,016 | 77,852 | |||||||||||||||
Other liabilities | 82,675 | 96,037 | 101,102 | 103,090 | 112,590 | |||||||||||||||
Shareholders’ equity | 16,748 | 16,748 | 17,453 | 17,967 | 21,882 | |||||||||||||||
Other customer funds under management | 104,191 | 104,571 | 107,453 | 108,850 | 112,097 | |||||||||||||||
Mutual funds | 83,385 | 82,617 | 84,259 | 83,566 | 85,014 | |||||||||||||||
Pension funds | 10,080 | 10,260 | 10,581 | 11,398 | 11,432 | |||||||||||||||
Managed portfolios | 6,304 | 6,825 | 7,235 | 7,501 | 8,267 | |||||||||||||||
Savings-insurance policies | 4,423 | 4,869 | 5,378 | 6,385 | 7,383 | |||||||||||||||
Customer funds under management | 265,224 | 270,614 | 289,222 | 299,076 | 306,442 |
Other information | �� | |||||||||||||||||||
NPL ratio** | 0.84 | 0.80 | 0.81 | 0.80 | 0.80 | |||||||||||||||
NPL coverage** | 221.71 | 227.60 | 224.57 | 223.80 | 202.49 | |||||||||||||||
Risk-weighted assets | 224,261 | 243,986 | 253,120 | 258,781 | 258,788 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 650 | 537 | 113 | 21.1 | ||||||||||||
Income from companies accounted for by the equity method | — | — | — | — | ||||||||||||
Net fees | 423 | 359 | 64 | 17.9 | ||||||||||||
Insurance activity | — | — | — | — | ||||||||||||
Commercial revenue | 1,073 | 896 | 177 | 19.8 | ||||||||||||
Gains (losses) on financial transactions | 74 | 71 | 3 | 4.2 | ||||||||||||
Gross operating income | 1,147 | 967 | 180 | 18.7 | ||||||||||||
Income from non-financial services (net) and other operating income | 5 | 2 | 3 | 141.8 | ||||||||||||
Operating expenses | (461 | ) | (435 | ) | (26 | ) | 6.0 | |||||||||
General administrative expenses | (403 | ) | (377 | ) | (26 | ) | 7.0 | |||||||||
Personnel | (303 | ) | (289 | ) | (14 | ) | 4.9 | |||||||||
Other administrative expenses | (100 | ) | (88 | ) | (12 | ) | 14.1 | |||||||||
Depreciation and amortisation | (58 | ) | (58 | ) | 0 | (0.6 | ) | |||||||||
Net operating income | 691 | 533 | 157 | 29.5 | ||||||||||||
Net loan loss provisions | (52 | ) | (65 | ) | 13 | (20.3 | ) | |||||||||
Other income | (0 | ) | (4 | ) | 4 | (98.8 | ) | |||||||||
Profit before taxes | 639 | 464 | 174 | 37.6 | ||||||||||||
Tax on profit | (179 | ) | (130 | ) | (49 | ) | 37.4 | |||||||||
Net profit from ordinary activity | 460 | 334 | 126 | 37.7 | ||||||||||||
Net profit from discontinued operations | — | — | — | — | ||||||||||||
Net consolidated profit | 460 | 334 | 126 | 37.7 | ||||||||||||
Minority interests | 0 | 0 | 0 | 267.7 | ||||||||||||
Attributable profit to the Group | 460 | 334 | 126 | 37.6 |
Variation | ||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | |||||||||||||
Balance sheet | ||||||||||||||||
Loans and credits* | 108,104 | 92,777 | 15,327 | 16.5 | ||||||||||||
Trading portfolio (w/o loans) | — | — | — | — | ||||||||||||
Available-for-sale financial assets | 3 | 2 | 0 | 11.5 | ||||||||||||
Due from credit institutions* | 93 | 94 | (1 | ) | (0.6 | ) | ||||||||||
Intangible assets and property and equipment | 2,189 | 1,931 | 258 | 13.4 | ||||||||||||
Other assets | 507 | 761 | (254 | ) | (33.4 | ) | ||||||||||
Total assets/liabilities & shareholders’ equity | 110,896 | 95,565 | 15,330 | 16.0 | ||||||||||||
Customer deposits* | 50,410 | 43,860 | 6,551 | 14.9 | ||||||||||||
Marketable debt securities* | — | 1 | (1 | ) | (100.0 | ) | ||||||||||
Subordinated debt | — | — | — | — | ||||||||||||
Insurance liabilities | — | — | — | — | ||||||||||||
Due to credit institutions* | 26 | 37 | (11 | ) | (30.5 | ) | ||||||||||
Other liabilities | 52,810 | 45,004 | 7,806 | 17.3 | ||||||||||||
Shareholders’ equity | 7,650 | 6,664 | 986 | 14.8 | ||||||||||||
Other customer funds under management | 57,134 | 55,526 | 1,608 | 2.9 | ||||||||||||
Mutual funds | 48,377 | 49,431 | (1,054 | ) | (2.1 | ) | ||||||||||
Pension funds | 6,448 | 5,889 | 559 | 9.5 | ||||||||||||
Managed portfolios | — | — | — | — | ||||||||||||
Savings-insurance policies | 2,308 | 206 | 2,102 | — | ||||||||||||
Customer funds under management | 107,544 | 99,386 | 8,158 | 8.2 |
Ratios (%) and other data | ||||||||||||||||
ROE | 24.22 | 20.80 | 3.42 p. | |||||||||||||
Efficiency ratio | 39.09 | 43.54 | (4.45 p. | ) | ||||||||||||
NPL ratio | 0.56 | 0.56 | — | |||||||||||||
NPL coverage | 298.79 | 299.75 | (0.96 p. | ) | ||||||||||||
Number of employees (direct & indirect) | 19,337 | 19,027 | 310 | 1.6 | ||||||||||||
Number of branches | 2,839 | 2,681 | 158 | 5.9 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 537 | 583 | 609 | 635 | 650 | |||||||||||||||
Income from companies accounted for by the equity method | — | — | — | — | — | |||||||||||||||
Net fees | 359 | 397 | 408 | 427 | 423 | |||||||||||||||
Insurance activity | — | — | — | — | — | |||||||||||||||
Commercial revenue | 896 | 980 | 1,017 | 1,061 | 1,073 | |||||||||||||||
Gains (losses) on financial transactions | 71 | 69 | 33 | 55 | 74 | |||||||||||||||
Gross operating income | 967 | 1,048 | 1,051 | 1,116 | 1,147 | |||||||||||||||
Income from non-financial services (net) and other operating income | 2 | 4 | (1 | ) | 5 | 5 | ||||||||||||||
Operating expenses | (435 | ) | (438 | ) | (438 | ) | (453 | ) | (461 | ) | ||||||||||
General administrative expenses | (377 | ) | (380 | ) | (380 | ) | (394 | ) | (403 | ) | ||||||||||
Personnel | (289 | ) | (289 | ) | (285 | ) | (293 | ) | (303 | ) | ||||||||||
Other administrative expenses | (88 | ) | (91 | ) | (95 | ) | (102 | ) | (100 | ) | ||||||||||
Depreciation and amortisation | (58 | ) | (58 | ) | (58 | ) | (58 | ) | (58 | ) | ||||||||||
Net operating income | 533 | 615 | 612 | 669 | 691 | |||||||||||||||
Net loan loss provisions | (65 | ) | (139 | ) | (84 | ) | (50 | ) | (52 | ) | ||||||||||
Other income | (4 | ) | (7 | ) | (2 | ) | 5 | (0 | ) | |||||||||||
Profit before taxes (w/o capital gains) | 464 | 469 | 526 | 624 | 639 | |||||||||||||||
Tax on profit | (130 | ) | (130 | ) | (148 | ) | (169 | ) | (179 | ) | ||||||||||
Net profit from ordinary activity | 334 | 339 | 378 | 455 | 460 | |||||||||||||||
Net profit from discontinued operations | — | — | — | — | — | |||||||||||||||
Net consolidated profit (w/o capital gains) | 334 | 339 | 378 | 455 | 460 | |||||||||||||||
Minority interests | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Attributable profit to the Group (w/o capital gains) | 334 | 339 | 378 | 455 | 460 | |||||||||||||||
Net extraordinary gains and allowances | — | — | — | — | — | |||||||||||||||
Attributable profit to the Group | 334 | 339 | 378 | 455 | 460 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Balance sheet | ||||||||||||||||||||
Loans and credits* | 92,777 | 98,696 | 101,838 | 105,476 | 108,104 | |||||||||||||||
Trading portfolio (w/o loans) | — | — | — | — | — | |||||||||||||||
Available-for-sale financial assets | 2 | 3 | 3 | 3 | 3 | |||||||||||||||
Due from credit institutions* | 94 | 91 | 102 | 116 | 93 | |||||||||||||||
Intangible assets and property and equipment | 1,931 | 2,073 | 2,192 | 2,191 | 2,189 | |||||||||||||||
Other assets | 761 | 839 | 816 | 661 | 507 | |||||||||||||||
Total assets/liabilities & shareholders’ equity | 95,565 | 101,702 | 104,951 | 108,447 | 110,896 | |||||||||||||||
Customer deposits* | 43,860 | 45,923 | 49,651 | 51,595 | 50,410 | |||||||||||||||
Marketable debt securities* | 1 | — | — | — | — | |||||||||||||||
Subordinated debt | — | — | — | — | — | |||||||||||||||
Insurance liabilities | — | — | — | — | — | |||||||||||||||
Due to credit institutions* | 37 | 32 | 96 | 86 | 26 | |||||||||||||||
Other liabilities | 45,004 | 48,552 | 47,786 | 49,274 | 52,810 | |||||||||||||||
Shareholders’ equity | 6,664 | 7,195 | 7,418 | 7,492 | 7,650 | |||||||||||||||
Other customer funds under management | 55,526 | 54,227 | 54,862 | 55,650 | 57,134 | |||||||||||||||
Mutual funds | 49,431 | 48,025 | 48,150 | 47,623 | 48,377 | |||||||||||||||
Pension funds | 5,889 | 5,784 | 5,948 | 6,416 | 6,448 | |||||||||||||||
Managed portfolios | — | — | — | — | — | |||||||||||||||
Savings-insurance policies | 206 | 418 | 765 | 1,611 | 2,308 | |||||||||||||||
Customer funds under management | 99,386 | 100,150 | 104,513 | 107,245 | 107,544 |
(*) | Includes all stock of concept classified in the balance sheet |
Other information | ||||||||||||||||||||
NPL ratio | 0.56 | 0.55 | 0.57 | 0.57 | 0.56 | |||||||||||||||
NPL coverage | 299.75 | 313.42 | 298.84 | 295.80 | 298.79 | |||||||||||||||
Risk-weighted assets | 83,524 | 90,175 | 93,673 | 94,348 | 95,478 | |||||||||||||||
Spread | 3.10 | 3.16 | 3.26 | 3.44 | 3.47 | |||||||||||||||
Spread loans | 1.39 | 1.29 | 1.31 | 1.28 | 1.25 | |||||||||||||||
Spread deposits | 1.71 | 1.87 | 1.95 | 2.16 | 2.22 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 349 | 296 | 53 | 18.1 | ||||||||||||
Income from companies accounted for by the equity method | 0 | 0 | 0 | 39.9 | ||||||||||||
Net fees | 154 | 144 | 10 | 7.2 | ||||||||||||
Insurance activity | 12 | 8 | 4 | 47.6 | ||||||||||||
Commercial revenue | 516 | 448 | 68 | 15.1 | ||||||||||||
Gains (losses) on financial transactions | 38 | 34 | 3 | 9.4 | ||||||||||||
Gross operating income | 554 | 483 | 71 | 14.7 | ||||||||||||
Income from non-financial services (net) and other operating income | (1 | ) | 4 | (6 | ) | — | ||||||||||
Operating expenses | (241 | ) | (230 | ) | (11 | ) | 4.7 | |||||||||
General administrative expenses | (213 | ) | (204 | ) | (9 | ) | 4.3 | |||||||||
Personnel | (161 | ) | (151 | ) | (9 | ) | 6.2 | |||||||||
Other administrative expenses | (52 | ) | (53 | ) | 1 | (1.2 | ) | |||||||||
Depreciation and amortisation | (28 | ) | (26 | ) | (2 | ) | 8.1 | |||||||||
Net operating income | 311 | 257 | 55 | 21.3 | ||||||||||||
Net loan loss provisions | (54 | ) | (44 | ) | (9 | ) | 21.1 | |||||||||
Other income | 4 | 6 | (2 | ) | (31.9 | ) | ||||||||||
Profit before taxes | 262 | 218 | 43 | 19.8 | ||||||||||||
Tax on profit | (77 | ) | (70 | ) | (7 | ) | 9.7 | |||||||||
Net profit from ordinary activity | 185 | 148 | 37 | 24.6 | ||||||||||||
Net profit from discontinued operations | — | 46 | (46 | ) | (100.0 | ) | ||||||||||
Net consolidated profit | 185 | 194 | (9 | ) | (4.7 | ) | ||||||||||
Minority interests | 22 | 46 | (25 | ) | (53.3 | ) | ||||||||||
Attributable profit to the Group | 163 | 148 | 16 | 10.5 |
Variation | ||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | |||||||||||||
Balance sheet | ||||||||||||||||
Loans and credits* | 64,337 | 49,502 | 14,834 | 30.0 | ||||||||||||
Trading portfolio (w/o loans) | 6,445 | 4,513 | 1,932 | 42.8 | ||||||||||||
Available-for-sale financial assets | 6,221 | 10,788 | (4,567 | ) | (42.3 | ) | ||||||||||
Due from credit institutions* | 21,514 | 17,670 | 3,843 | 21.7 | ||||||||||||
Intangible assets and property and equipment | 1,106 | 1,565 | (459 | ) | (29.4 | ) | ||||||||||
Other assets | 3,034 | 5,622 | (2,588 | ) | (46.0 | ) | ||||||||||
Total assets/liabilities & shareholders’ equity | 102,656 | 89,661 | 12,995 | 14.5 | ||||||||||||
Customer deposits* | 43,752 | 37,076 | 6,676 | 18.0 | ||||||||||||
Marketable debt securities* | 25,615 | 19,385 | 6,229 | 32.1 | ||||||||||||
Subordinated debt | 1,442 | 1,580 | (138 | ) | (8.8 | ) | ||||||||||
Insurance liabilities | — | 1,769 | (1,769 | ) | (100.0 | ) | ||||||||||
Due to credit institutions* | 19,400 | 17,449 | 1,951 | 11.2 | ||||||||||||
Other liabilities | 8,735 | 9,382 | (647 | ) | (6.9 | ) | ||||||||||
Shareholders’ equity | 3,713 | 3,019 | 694 | 23.0 | ||||||||||||
Other customer funds under management | 16,227 | 15,991 | 236 | 1.5 | ||||||||||||
Mutual funds | 12,512 | 12,647 | (135 | ) | (1.1 | ) | ||||||||||
Pension funds | 1,614 | 1,527 | 88 | 5.7 | ||||||||||||
Managed portfolios | 832 | 552 | 279 | 50.6 | ||||||||||||
Savings-insurance policies | 1,269 | 1,265 | 5 | 0.4 | ||||||||||||
Customer funds under management | 87,036 | 74,032 | 13,003 | 17.6 |
(*) | Includes all stock of concept classified in the balance sheet |
Ratios (%) and other data | ||||||||||||||||
ROE | 18.45 | 20.42 | (1.97 p. | ) | ||||||||||||
Efficiency ratio | 42.00 | 45.76 | (3.76 p. | ) | ||||||||||||
NPL ratio | 0.42 | 0.46 | (0.04 p. | ) | ||||||||||||
NPL coverage | 393.19 | 392.62 | 0.57 p. | |||||||||||||
Number of employees (direct & indirect) | 10,831 | 10,563 | 268 | 2.5 | ||||||||||||
Number of branches | 1,892 | 1,705 | 187 | 11.0 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 296 | 299 | 313 | 327 | 349 | |||||||||||||||
Income from companies accounted for by the equity method | 0 | (0 | ) | 0 | 0 | 0 | ||||||||||||||
Net fees | 144 | 147 | 144 | 152 | 154 | |||||||||||||||
Insurance activity | 8 | 11 | 10 | 12 | 12 | |||||||||||||||
Commercial revenue | 448 | 457 | 467 | 491 | 516 | |||||||||||||||
Gains (losses) on financial transactions | 34 | 33 | 31 | 25 | 38 | |||||||||||||||
Gross operating income | 483 | 490 | 497 | 517 | 554 | |||||||||||||||
Income from non-financial services (net) and other operating income | 4 | (13 | ) | 13 | 6 | (1 | ) | |||||||||||||
Operating expenses | (230 | ) | (233 | ) | (236 | ) | (238 | ) | (241 | ) | ||||||||||
General administrative expenses | (204 | ) | (200 | ) | (206 | ) | (210 | ) | (213 | ) | ||||||||||
Personnel | (151 | ) | (156 | ) | (157 | ) | (157 | ) | (161 | ) | ||||||||||
Other administrative expenses | (53 | ) | (45 | ) | (48 | ) | (54 | ) | (52 | ) | ||||||||||
Depreciation and amortisation | (26 | ) | (33 | ) | (30 | ) | (28 | ) | (28 | ) | ||||||||||
Net operating income | 257 | 245 | 275 | 285 | 311 | |||||||||||||||
Net loan loss provisions | (44 | ) | (47 | ) | (44 | ) | (54 | ) | (54 | ) | ||||||||||
Other income | 6 | 35 | (15 | ) | (4 | ) | 4 | |||||||||||||
Profit before taxes (w/o capital gains) | 218 | 232 | 216 | 227 | 262 | |||||||||||||||
Tax on profit | (70 | ) | (67 | ) | (72 | ) | (76 | ) | (77 | ) | ||||||||||
Net profit from ordinary activity | 148 | 165 | 144 | 151 | 185 | |||||||||||||||
Net profit from discontinued operations | 46 | 46 | 31 | 27 | — | |||||||||||||||
Net consolidated profit (w/o capital gains) | 194 | 211 | 174 | 178 | 185 | |||||||||||||||
Minority interests | 46 | 57 | 28 | 41 | 22 | |||||||||||||||
Attributable profit to the Group (w/o capital gains) | 148 | 154 | 146 | 137 | 163 | |||||||||||||||
Net extraordinary gains and allowances | — | — | — | 674 | — | |||||||||||||||
Attributable profit to the Group | 148 | 154 | 146 | 811 | 163 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Balance sheet | ||||||||||||||||||||
Loans and credits* | 49,502 | 53,838 | 56,540 | 61,069 | 64,337 | |||||||||||||||
Trading portfolio (w/o loans) | 4,513 | 4,690 | 4,247 | 5,191 | 6,445 | |||||||||||||||
Available-for-sale financial assets | 10,788 | 11,061 | 11,598 | 9,339 | 6,221 | |||||||||||||||
Due from credit institutions* | 17,670 | 20,313 | 19,933 | 21,113 | 21,514 | |||||||||||||||
Intangible assets and property and equipment | 1,565 | 1,599 | 1,725 | 999 | 1,106 | |||||||||||||||
Other assets | 5,622 | 6,263 | 6,125 | 5,619 | 3,034 | |||||||||||||||
Total assets/liabilities & shareholders’ equity | 89,661 | 97,764 | 100,168 | 103,330 | 102,656 | |||||||||||||||
Customer deposits* | 37,076 | 38,357 | 41,461 | 44,264 | 43,752 | |||||||||||||||
Marketable debt securities* | 19,385 | 21,283 | 23,781 | 23,882 | 25,615 | |||||||||||||||
Subordinated debt | 1,580 | 1,566 | 1,590 | 1,414 | 1,442 | |||||||||||||||
Insurance liabilities | 1,769 | 1,606 | 1,596 | 1,230 | — | |||||||||||||||
Due to credit institutions* | 17,449 | 21,778 | 18,956 | 19,947 | 19,400 | |||||||||||||||
Other liabilities | 9,382 | 10,379 | 9,989 | 9,859 | 8,735 | |||||||||||||||
Shareholders’ equity | 3,019 | 2,794 | 2,796 | 2,734 | 3,713 | |||||||||||||||
Other customer funds under management | 15,991 | 16,434 | 16,638 | 16,886 | 16,227 | |||||||||||||||
Mutual funds | 12,647 | 13,039 | 13,042 | 12,988 | 12,512 | |||||||||||||||
Pension funds | 1,527 | 1,482 | 1,522 | 1,611 | 1,614 | |||||||||||||||
Managed portfolios | 552 | 675 | 861 | 1,004 | 832 | |||||||||||||||
Savings-insurance policies | 1,265 | 1,238 | 1,214 | 1,284 | 1,269 | |||||||||||||||
Customer funds under management | 74,032 | 77,640 | 83,471 | 86,446 | 87,036 |
(*) | Includes all stock of concept classified in the balance sheet |
Other information | ||||||||||||||||||||
NPL ratio | 0.46 | 0.45 | 0.43 | 0.42 | 0.42 | |||||||||||||||
NPL coverage | 392.62 | 393.44 | 399.94 | 396.13 | 393.19 | |||||||||||||||
Risk-weighted assets | 55,413 | 56,929 | 58,776 | 62,845 | 64,887 | |||||||||||||||
Spread (Retail Banking) | 2.92 | 3.00 | 3.13 | 3.23 | 3.35 | |||||||||||||||
Spread loans | 1.38 | 1.36 | 1.30 | 1.31 | 1.32 | |||||||||||||||
Spread deposits | 1.54 | 1.64 | 1.83 | 1.92 | 2.03 |
Variation | ||||||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | % ex-Drive | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 499 | 322 | 178 | 55.2 | 9.3 | |||||||||||||||
Income from companies accounted for by the equity method | 2 | 1 | 1 | 43.3 | 43.3 | |||||||||||||||
Net fees | 115 | 94 | 20 | 21.6 | 23.8 | |||||||||||||||
Insurance activity | — | — | — | — | — | |||||||||||||||
Commercial revenue | 616 | 417 | 199 | 47.6 | 12.7 | |||||||||||||||
Gains (losses) on financial transactions | 4 | 12 | (7 | ) | (62.5 | ) | (62.5 | ) | ||||||||||||
Gross operating income | 620 | 429 | 191 | 44.6 | 10.6 | |||||||||||||||
Income from non-financial services (net) and other operating income | 9 | 10 | (1 | ) | (11.2 | ) | (11.2 | ) | ||||||||||||
Operating expenses | (189 | ) | (156 | ) | (33 | ) | 21.2 | 8.7 | ||||||||||||
General administrative expenses | (174 | ) | (142 | ) | (32 | ) | 22.2 | 9.0 | ||||||||||||
Personnel | (82 | ) | (65 | ) | (16 | ) | 24.7 | 8.2 | ||||||||||||
Other administrative expenses | (92 | ) | (77 | ) | (15 | ) | 20.1 | 9.8 | ||||||||||||
Depreciation and amortisation | (16 | ) | (14 | ) | (2 | ) | 11.4 | 5.3 | ||||||||||||
Net operating income | 440 | 283 | 157 | 55.5 | 11.0 | |||||||||||||||
Net loan loss provisions | (200 | ) | (94 | ) | (106 | ) | 113.5 | 21.2 | ||||||||||||
Other income | 3 | (4 | ) | 7 | — | — | ||||||||||||||
Profit before taxes | 242 | 184 | 58 | 31.5 | 10.1 | |||||||||||||||
Tax on profit | (72 | ) | (57 | ) | (14 | ) | 24.7 | (4.3 | ) | |||||||||||
Net profit from ordinary activity | 171 | 127 | 44 | 34.5 | 16.6 | |||||||||||||||
Net profit from discontinued operations | — | — | — | — | — | |||||||||||||||
Net consolidated profit | 171 | 127 | 44 | 34.5 | 16.6 | |||||||||||||||
Minority interests | 5 | 1 | 4 | 332.3 | 140.1 | |||||||||||||||
Attributable profit to the Group | 166 | 126 | 40 | 31.8 | 15.5 |
Variation | ||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | |||||||||||||
Balance sheet | ||||||||||||||||
Loans and credits* | 40,979 | 32,457 | 8,522 | 26.3 | ||||||||||||
Trading portfolio (w/o loans) | 13 | 51 | (39 | ) | (75.3 | ) | ||||||||||
Available-for-sale financial assets | 58 | 42 | 16 | 38.0 | ||||||||||||
Due from credit institutions* | 6,896 | 5,415 | 1,481 | 27.3 | ||||||||||||
Intangible assets and property and equipment | 686 | 479 | 207 | 43.1 | ||||||||||||
Other assets | 1,406 | 1,244 | 161 | 13.0 | ||||||||||||
Total assets/liabilities & shareholders’ equity | 50,037 | 39,689 | 10,348 | 26.1 | ||||||||||||
Customer deposits* | 13,456 | 13,752 | (296 | ) | (2.1 | ) | ||||||||||
Marketable debt securities* | 12,727 | 6,752 | 5,975 | 88.5 | ||||||||||||
Subordinated debt | 576 | 103 | 474 | 461.9 | ||||||||||||
Insurance liabilities | — | — | — | — | ||||||||||||
Due to credit institutions* | 19,696 | 16,308 | 3,388 | 20.8 | ||||||||||||
Other liabilities | 1,087 | 1,079 | 9 | 0.8 | ||||||||||||
Shareholders’ equity | 2,494 | 1,696 | 798 | 47.1 | ||||||||||||
Other customer funds under management | 392 | 343 | 49 | 14.4 | ||||||||||||
Mutual funds | 333 | 298 | 35 | 11.7 | ||||||||||||
Pension funds | 60 | 45 | 14 | 32.1 | ||||||||||||
Managed portfolios | — | — | — | — | ||||||||||||
Savings-insurance policies | — | — | — | — | ||||||||||||
Customer funds under management | 27,151 | 20,949 | 6,202 | 29.6 |
(*) | Includes all stock of concept classified in the balance sheet |
Ratios (%) and other data | ||||||||||||||||
ROE | 28.87 | 30.11 | (1.24 p. | ) | ||||||||||||
Efficiency ratio | 29.65 | 35.01 | (5.36 p. | ) | ||||||||||||
NPL ratio | 2.66 | 2.41 | 0.25 p. | |||||||||||||
NPL coverage | 114.43 | 124.43 | (10.00 p. | ) | ||||||||||||
Number of employees (direct & indirect) | 6,374 | 5,288 | 1,086 | 20.5 | ||||||||||||
Number of branches | 279 | 276 | 3 | 1.1 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 322 | 336 | 353 | 368 | 499 | |||||||||||||||
Income from companies accounted for by the equity method | 1 | 1 | 2 | 2 | 2 | |||||||||||||||
Net fees | 94 | 96 | 102 | 100 | 115 | |||||||||||||||
Insurance activity | — | — | — | — | — | |||||||||||||||
Commercial revenue | 417 | 433 | 456 | 470 | 616 | |||||||||||||||
Gains (losses) on financial transactions | 12 | 14 | 8 | 15 | 4 | |||||||||||||||
Gross operating income | 429 | 447 | 464 | 486 | 620 | |||||||||||||||
Income from non-financial services (net) and other operating income | 10 | 5 | 7 | 8 | 9 | |||||||||||||||
Operating expenses | (156 | ) | (164 | ) | (164 | ) | (170 | ) | (189 | ) | ||||||||||
General administrative expenses | (142 | ) | (150 | ) | (149 | ) | (151 | ) | (174 | ) | ||||||||||
Personnel | (65 | ) | (67 | ) | (70 | ) | (69 | ) | (82 | ) | ||||||||||
Other administrative expenses | (77 | ) | (83 | ) | (80 | ) | (82 | ) | (92 | ) | ||||||||||
Depreciation and amortisation | (14 | ) | (14 | ) | (15 | ) | (19 | ) | (16 | ) | ||||||||||
Net operating income | 283 | 287 | 307 | 324 | 440 | |||||||||||||||
Net loan loss provisions | (94 | ) | (92 | ) | (100 | ) | (111 | ) | (200 | ) | ||||||||||
Other income | (4 | ) | 25 | (2 | ) | (13 | ) | 3 | ||||||||||||
Profit before taxes (w/o capital gains) | 184 | 220 | 205 | 199 | 242 | |||||||||||||||
Tax on profit | (57 | ) | (64 | ) | (60 | ) | (54 | ) | (72 | ) | ||||||||||
Net profit from ordinary activity | 127 | 157 | 146 | 145 | 171 | |||||||||||||||
Net profit from discontinued operations | — | — | — | — | — | |||||||||||||||
Net consolidated profit (w/o capital gains) | 127 | 157 | 146 | 145 | 171 | |||||||||||||||
Minority interests | 1 | 2 | 3 | 3 | 5 | |||||||||||||||
Attributable profit to the Group (w/o capital gains) | 126 | 155 | 143 | 142 | 166 | |||||||||||||||
Net extraordinary gains and allowances | — | — | — | — | — | |||||||||||||||
Attributable profit to the Group | 126 | 155 | 143 | 142 | 166 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Balance sheet | ||||||||||||||||||||
Loans and credits* | 32,457 | 34,477 | 35,735 | 39,461 | 40,979 | |||||||||||||||
Trading portfolio (w/o loans) | 51 | 3 | 15 | 10 | 13 | |||||||||||||||
Available-for-sale financial assets | 42 | 91 | 42 | 48 | 58 | |||||||||||||||
Due from credit institutions* | 5,415 | 5,011 | 6,135 | 5,466 | 6,896 | |||||||||||||||
Intangible assets and property and equipment | 479 | 619 | 621 | 643 | 686 | |||||||||||||||
Other assets | 1,244 | 1,221 | 1,303 | 1,288 | 1,406 | |||||||||||||||
Total assets/liabilities & shareholders’ equity | 39,689 | 41,423 | 43,851 | 46,917 | 50,037 | |||||||||||||||
Customer deposits* | 13,752 | 14,197 | 14,036 | 13,439 | 13,456 | |||||||||||||||
Marketable debt securities* | 6,752 | 5,961 | 7,126 | 10,427 | 12,727 | |||||||||||||||
Subordinated debt | 103 | 160 | 577 | 578 | 576 | |||||||||||||||
Insurance liabilities | — | — | — | — | — | |||||||||||||||
Due to credit institutions* | 16,308 | 18,286 | 19,117 | 19,526 | 19,696 | |||||||||||||||
Other liabilities | 1,079 | 1,501 | 1,463 | 1,342 | 1,087 | |||||||||||||||
Shareholders’ equity | 1,696 | 1,318 | 1,531 | 1,604 | 2,494 | |||||||||||||||
Other customer funds under management | 343 | 332 | 358 | 383 | 392 | |||||||||||||||
Mutual funds | 298 | 287 | 306 | 323 | 333 | |||||||||||||||
Pension funds | 45 | 45 | 52 | 60 | 60 | |||||||||||||||
Managed portfolios | — | — | — | — | — | |||||||||||||||
Savings-insurance policies | — | — | — | — | — | |||||||||||||||
Customer funds under management | 20,949 | 20,650 | 22,098 | 24,827 | 27,151 |
(*) | Includes all stock of concept classified in the balance sheet |
Other information | ||||||||||||||||||||
NPL ratio | 2.41 | 2.46 | 2.57 | 2.57 | 2.66 | |||||||||||||||
NPL coverage | 124.43 | 119.46 | 113.83 | 114.10 | 114.43 | |||||||||||||||
Risk-weighted assets | 28,405 | 31,810 | 31,465 | 33,713 | 32,936 | |||||||||||||||
Spread loans | 4.79 | 4.58 | 4.15 | 3.83 | 3.69 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 174 | 163 | 11 | 6.8 | ||||||||||||
Income from companies accounted for by the equity method | — | — | — | — | ||||||||||||
Net fees | 96 | 94 | 2 | 1.9 | ||||||||||||
Insurance activity | 7 | 5 | 2 | 35.6 | ||||||||||||
Commercial revenue | 277 | 262 | 15 | 5.6 | ||||||||||||
Gains (losses) on financial transactions | 31 | 13 | 18 | 135.1 | ||||||||||||
Gross operating income | 308 | 276 | 33 | 11.9 | ||||||||||||
Income from non-financial services (net) and other operating income | (2 | ) | (3 | ) | 1 | (26.5 | ) | |||||||||
Operating expenses | (132 | ) | (123 | ) | (9 | ) | 7.7 | |||||||||
General administrative expenses | (116 | ) | (108 | ) | (8 | ) | 7.5 | |||||||||
Personnel | (74 | ) | (70 | ) | (4 | ) | 5.1 | |||||||||
Other administrative expenses | (42 | ) | (37 | ) | (4 | ) | 11.9 | |||||||||
Depreciation and amortisation | (17 | ) | (15 | ) | (1 | ) | 9.2 | |||||||||
Net operating income | 174 | 150 | 24 | 16.0 | ||||||||||||
Net loan loss provisions | 6 | 3 | 3 | 74.2 | ||||||||||||
Other income | (11 | ) | (5 | ) | (6 | ) | 122.1 | |||||||||
Profit before taxes | 169 | 148 | 21 | 14.0 | ||||||||||||
Tax on profit | (37 | ) | (34 | ) | (3 | ) | 8.8 | |||||||||
Net profit from ordinary activity | 132 | 115 | 18 | 15.5 | ||||||||||||
Net profit from discontinued operations | — | — | — | — | ||||||||||||
Net consolidated profit | 132 | 115 | 18 | 15.5 | ||||||||||||
Minority interests | 0 | 0 | 0 | 11.6 | ||||||||||||
Attributable profit to the Group | 132 | 114 | 18 | 15.5 |
Variation | ||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | |||||||||||||
Balance sheet | ||||||||||||||||
Loans and credits* | 27,942 | 25,505 | 2,437 | 9.6 | ** | |||||||||||
Trading portfolio (w/o loans) | 934 | 883 | 51 | 5.8 | ||||||||||||
Available-for-sale financial assets | 1,003 | 2,292 | (1,290 | ) | (56.3 | ) | ||||||||||
Due from credit institutions* | 8,809 | 10,952 | (2,142 | ) | (19.6 | ) | ||||||||||
Intangible assets and property and equipment | 431 | 439 | (8 | ) | (1.8 | ) | ||||||||||
Other assets | 5,391 | 3,750 | 1,640 | 43.7 | ||||||||||||
Total assets/liabilities & shareholders’ equity | 44,509 | 43,820 | 689 | 1.6 | ||||||||||||
Customer deposits* | 11,380 | 11,669 | (289 | ) | (2.5 | ) | ||||||||||
Marketable debt securities* | 11,371 | 3,372 | 7,999 | 237.2 | ||||||||||||
Subordinated debt | 368 | 532 | (164 | ) | (30.9 | ) | ||||||||||
Insurance liabilities | 4,074 | 3,213 | 861 | 26.8 | ||||||||||||
Due to credit institutions* | 13,358 | 20,675 | (7,317 | ) | (35.4 | ) | ||||||||||
Other liabilities | 1,696 | 2,256 | (560 | ) | (24.8 | ) | ||||||||||
Shareholders’ equity | 2,261 | 2,104 | 158 | 7.5 | ||||||||||||
Other customer funds under management | 11,773 | 10,263 | 1,511 | 14.7 | ||||||||||||
Mutual funds | 6,160 | 5,922 | 238 | 4.0 | ||||||||||||
Pension funds | 1,453 | 1,032 | 420 | 40.7 | ||||||||||||
Managed portfolios | 355 | 355 | (1 | ) | (0.2 | ) | ||||||||||
Savings-insurance policies | 3,806 | 2,953 | 853 | 28.9 | ||||||||||||
Customer funds under management | 34,892 | 25,836 | 9,057 | 35.1 |
(*) | Includes all stock of concept classified in the balance sheet | |
(**).- | Impacted by reclassification from available-for-sale financial assets. In like-for-like terms: +6% |
Ratios (%) and other data | ||||||||||||||||
ROE | 25.56 | 23.44 | 2.12 p. | |||||||||||||
Efficiency ratio | 42.96 | 44.63 | (1.67 p. | ) | ||||||||||||
NPL ratio | 1.16 | 0.71 | 0.45 p. | |||||||||||||
NPL coverage | 127.55 | 258.04 | (130.49 p. | ) | ||||||||||||
Number of employees (direct & indirect) | 6,172 | 6,265 | (93 | ) | (1.5 | ) | ||||||||||
Number of branches | 731 | 694 | 37 | 5.3 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 163 | 172 | 167 | 158 | 174 | |||||||||||||||
Income from companies accounted for by the equity method | — | — | — | — | — | |||||||||||||||
Net fees | 94 | 96 | 91 | 85 | 96 | |||||||||||||||
Insurance activity | 5 | 4 | 5 | 4 | 7 | |||||||||||||||
Commercial revenue | 262 | 273 | 263 | 247 | 277 | |||||||||||||||
Gains (losses) on financial transactions | 13 | 3 | 7 | 34 | 31 | |||||||||||||||
Gross operating income | 276 | 276 | 270 | 281 | 308 | |||||||||||||||
Income from non-financial services (net) and other operating income | (3 | ) | (3 | ) | (3 | ) | (2 | ) | (2 | ) | ||||||||||
Operating expenses | (123 | ) | (126 | ) | (127 | ) | (146 | ) | (132 | ) | ||||||||||
General administrative expenses | (108 | ) | (110 | ) | (111 | ) | (129 | ) | (116 | ) | ||||||||||
Personnel | (70 | ) | (72 | ) | (72 | ) | (79 | ) | (74 | ) | ||||||||||
Other administrative expenses | (37 | ) | (38 | ) | (39 | ) | (50 | ) | (42 | ) | ||||||||||
Depreciation and amortisation | (15 | ) | (16 | ) | (16 | ) | (17 | ) | (17 | ) | ||||||||||
Net operating income | 150 | 148 | 140 | 133 | 174 | |||||||||||||||
Net loan loss provisions | 3 | (22 | ) | (19 | ) | (3 | ) | 6 | ||||||||||||
Other income | (5 | ) | (2 | ) | 10 | (10 | ) | (11 | ) | |||||||||||
Profit before taxes (w/o capital gains) | 148 | 124 | 131 | 119 | 169 | |||||||||||||||
Tax on profit | (34 | ) | (22 | ) | (20 | ) | (23 | ) | (37 | ) | ||||||||||
Net profit from ordinary activity | 115 | 102 | 111 | 96 | 132 | |||||||||||||||
Net profit from discontinued operations | — | — | — | — | — | |||||||||||||||
Net consolidated profit (w/o capital gains) | 115 | 102 | 111 | 96 | 132 | |||||||||||||||
Minority interests | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Attributable profit to the Group (w/o capital gains) | 114 | 102 | 111 | 96 | 132 | |||||||||||||||
Net extraordinary gains and allowances | — | — | — | — | — | |||||||||||||||
Attributable profit to the Group | 114 | 102 | 111 | 96 | 132 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Balance sheet | ||||||||||||||||||||
Loans and credits* | 25,505 | 27,768 | 27,471 | 28,366 | 27,942 | |||||||||||||||
Trading portfolio (w/o loans) | 883 | 1,157 | 1,083 | 820 | 934 | |||||||||||||||
Available-for-sale financial assets | 2,292 | 837 | 814 | 719 | 1,003 | |||||||||||||||
Due from credit institutions* | 10,952 | 11,425 | 11,065 | 9,330 | 8,809 | |||||||||||||||
Intangible assets and property and equipment | 439 | 445 | 442 | 437 | 431 | |||||||||||||||
Other assets | 3,750 | 4,586 | 4,493 | 4,632 | 5,391 | |||||||||||||||
Total assets/liabilities & shareholders’ equity | 43,820 | 46,218 | 45,368 | 44,304 | 44,509 | |||||||||||||||
Customer deposits* | 11,669 | 11,839 | 11,568 | 12,122 | 11,380 | |||||||||||||||
Marketable debt securities* | 3,372 | 5,825 | 9,316 | 8,720 | 11,371 | |||||||||||||||
Subordinated debt | 532 | 424 | 420 | 370 | 368 | |||||||||||||||
Insurance liabilities | 3,213 | 3,475 | 3,670 | 3,759 | 4,074 | |||||||||||||||
Due to credit institutions* | 20,675 | 20,931 | 16,335 | 16,028 | 13,358 | |||||||||||||||
Other liabilities | 2,256 | 2,137 | 2,404 | 1,749 | 1,696 | |||||||||||||||
Shareholders’ equity | 2,104 | 1,587 | 1,656 | 1,558 | 2,261 | |||||||||||||||
Other customer funds under management | 10,263 | 10,891 | 11,155 | 11,354 | 11,773 | |||||||||||||||
Mutual funds | 5,922 | 5,940 | 6,006 | 6,040 | 6,160 | |||||||||||||||
Pension funds | 1,032 | 1,373 | 1,380 | 1,448 | 1,453 | |||||||||||||||
Managed portfolios | 355 | 364 | 370 | 376 | 355 | |||||||||||||||
Savings-insurance policies | 2,953 | 3,214 | 3,399 | 3,490 | 3,806 | |||||||||||||||
Customer funds under management | 25,836 | 28,978 | 32,458 | 32,565 | 34,892 |
(*) | Includes all stock of concept classified in the balance sheet |
Other information | ||||||||||||||||||||
NPL ratio** | 1.57 | 1.34 | 1.38 | 1.25 | 1.16 | |||||||||||||||
NPL coverage** | 117.28 | 126.90 | 127.76 | 129.67 | 127.55 | |||||||||||||||
Risk-weighted assets | 22,891 | 23,022 | 22,959 | 22,057 | 21,689 | |||||||||||||||
Spread (Retail Banking) | 2.85 | 2.84 | 2.80 | 2.79 | 2.73 | |||||||||||||||
Spread loans | 1.66 | 1.63 | 1.56 | 1.53 | 1.46 | |||||||||||||||
Spread deposits | 1.19 | 1.21 | 1.24 | 1.26 | 1.27 |
(**).- | 2006 data were drawn up on the basis of 2007 information |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 572 | 509 | 62 | 12.2 | ||||||||||||
Income from companies accounted for by the equity method | 0 | 1 | (1 | ) | (87.8 | ) | ||||||||||
Net fees | 251 | 252 | (1 | ) | (0.5 | ) | ||||||||||
Insurance activity | 0 | (0 | ) | 0 | — | |||||||||||
Commercial revenue | 823 | 763 | 61 | 7.9 | ||||||||||||
Gains (losses) on financial transactions | 131 | 109 | 22 | 20.4 | ||||||||||||
Gross operating income | 955 | 872 | 83 | 9.5 | ||||||||||||
Income from non-financial services (net) and other operating income | 14 | 16 | (2 | ) | (10.1 | ) | ||||||||||
Operating expenses | (492 | ) | (503 | ) | 11 | (2.2 | ) | |||||||||
General administrative expenses | (467 | ) | (476 | ) | 9 | (2.0 | ) | |||||||||
Personnel | (261 | ) | (272 | ) | 10 | (3.9 | ) | |||||||||
Other administrative expenses | (206 | ) | (204 | ) | (1 | ) | 0.6 | |||||||||
Depreciation and amortisation | (25 | ) | (27 | ) | 2 | (6.2 | ) | |||||||||
Net operating income | 476 | 384 | 92 | 24.0 | ||||||||||||
Net loan loss provisions | (81 | ) | (88 | ) | 7 | (7.9 | ) | |||||||||
Other income | 5 | (1 | ) | 6 | — | |||||||||||
Profit before taxes | 400 | 295 | 105 | 35.6 | ||||||||||||
Tax on profit | (100 | ) | (82 | ) | (18 | ) | 22.0 | |||||||||
Net profit from ordinary activity | 300 | 213 | 87 | 40.8 | ||||||||||||
Net profit from discontinued operations | — | 31 | (31 | ) | (100.0 | ) | ||||||||||
Net consolidated profit | 300 | 244 | 56 | 22.8 | ||||||||||||
Minority interests | — | — | — | — | ||||||||||||
Attributable profit to the Group | 300 | 244 | 56 | 22.8 | ||||||||||||
Variation | ||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | |||||||||||||
Balance sheet | ||||||||||||||||
Loans and credits* | 192,666 | 173,841 | 18,826 | 10.8 | ||||||||||||
Trading portfolio (w/o loans) | 59,273 | 61,735 | (2,461 | ) | (4.0 | ) | ||||||||||
Available-for-sale financial assets | 23 | 20 | 3 | 17.3 | ||||||||||||
Due from credit institutions* | 22,244 | 16,575 | 5,668 | 34.2 | ||||||||||||
Intangible assets and property and equipment | 4,945 | 5,044 | (99 | ) | (2.0 | ) | ||||||||||
Other assets | 7,551 | 42,529 | (34,979 | ) | (82.2 | ) | ||||||||||
Total assets/liabilities & shareholders’ equity | 286,702 | 299,744 | (13,042 | ) | (4.4 | ) | ||||||||||
Customer deposits* | 112,292 | 109,039 | 3,252 | 3.0 | ||||||||||||
Marketable debt securities* | 82,528 | 61,049 | 21,480 | 35.2 | ||||||||||||
Subordinated debt | 9,216 | 11,045 | (1,829 | ) | (16.6 | ) | ||||||||||
Insurance liabilities | 11 | 35,912 | (35,901 | ) | (100.0 | ) | ||||||||||
Due to credit institutions* | 44,871 | 43,371 | 1,500 | 3.5 | ||||||||||||
Other liabilities | 33,839 | 36,240 | (2,401 | ) | (6.6 | ) | ||||||||||
Shareholders’ equity | 3,946 | 3,088 | 857 | 27.8 | ||||||||||||
Other customer funds under management | 13,640 | 16,112 | (2,473 | ) | (15.3 | ) | ||||||||||
Mutual funds | 13,640 | 5,904 | 7,736 | 131.0 | ||||||||||||
Pension funds | — | — | — | — | ||||||||||||
Managed portfolios | — | — | — | — | ||||||||||||
Savings-insurance policies | — | 10,209 | (10,209 | ) | (100.0 | ) | ||||||||||
Customer funds under management | 217,675 | 197,245 | 20,430 | 10.4 |
(*) | Includes all stock of concept classified in the balance sheet |
Ratios (%) and other data | ||||||||||||||||
ROE | 31.34 | 33.43 | (2.09 p. | ) | ||||||||||||
Efficiency ratio | 50.81 | 56.83 | (6.02 p. | ) | ||||||||||||
NPL ratio | 0.55 | 0.64 | (0.09 p. | ) | ||||||||||||
NPL coverage | 81.38 | 79.32 | 2.06 p. | |||||||||||||
Number of employees (direct & indirect) | 16,616 | 18,622 | (2,006 | ) | (10.8 | ) | ||||||||||
Number of branches | 711 | 712 | (1 | ) | (0.1 | ) |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 509 | 524 | 534 | 541 | 572 | |||||||||||||||
Income from companies accounted for by the equity method | 1 | 1 | 1 | 0 | 0 | |||||||||||||||
Net fees | 252 | 255 | 260 | 258 | 251 | |||||||||||||||
Insurance activity | (0 | ) | (0 | ) | 0 | 0 | 0 | |||||||||||||
Commercial revenue | 763 | 780 | 794 | 799 | 823 | |||||||||||||||
Gains (losses) on financial transactions | 109 | 74 | 117 | 123 | 131 | |||||||||||||||
Gross operating income | 872 | 854 | 912 | 922 | 955 | |||||||||||||||
Income from non-financial services (net) and other operating income | 16 | 14 | 11 | 1 | 14 | |||||||||||||||
Operating expenses | (503 | ) | (483 | ) | (496 | ) | (501 | ) | (492 | ) | ||||||||||
General administrative expenses | (476 | ) | (455 | ) | (473 | ) | (473 | ) | (467 | ) | ||||||||||
Personnel | (272 | ) | (263 | ) | (264 | ) | (263 | ) | (261 | ) | ||||||||||
Other administrative expenses | (204 | ) | (192 | ) | (209 | ) | (210 | ) | (206 | ) | ||||||||||
Depreciation and amortisation | (27 | ) | (27 | ) | (23 | ) | (28 | ) | (25 | ) | ||||||||||
Net operating income | 384 | 386 | 427 | 423 | 476 | |||||||||||||||
Net loan loss provisions | (88 | ) | (115 | ) | (103 | ) | (80 | ) | (81 | ) | ||||||||||
Other income | (1 | ) | (1 | ) | 1 | (0 | ) | 5 | ||||||||||||
Profit before taxes (w/o capital gains) | 295 | 270 | 325 | 343 | 400 | |||||||||||||||
Tax on profit | (82 | ) | (80 | ) | (97 | ) | (83 | ) | (100 | ) | ||||||||||
Net profit from ordinary activity | 213 | 189 | 227 | 260 | 300 | |||||||||||||||
Net profit from discontinued operations | 31 | 58 | 24 | 0 | — | |||||||||||||||
Net consolidated profit (w/o capital gains) | 244 | 247 | 251 | 260 | 300 | |||||||||||||||
Minority interests | — | — | — | — | — | |||||||||||||||
Attributable profit to the Group (w/o capital gains) | 244 | 247 | 251 | 260 | 300 | |||||||||||||||
Net extraordinary gains and allowances | — | — | — | — | — | |||||||||||||||
Attributable profit to the Group | 244 | 247 | 251 | 260 | 300 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Balance sheet | ||||||||||||||||||||
Loans and credits* | 173,841 | 182,597 | 183,818 | 190,512 | 192,666 | |||||||||||||||
Trading portfolio (w/o loans) | 61,735 | 62,873 | 59,899 | 61,507 | 59,273 | |||||||||||||||
Available-for-sale financial assets | 20 | 20 | 22 | 23 | 23 | |||||||||||||||
Due from credit institutions* | 16,575 | 12,586 | 17,987 | 18,185 | 22,244 | |||||||||||||||
Intangible assets and property and equipment | 5,044 | 4,999 | 5,039 | 5,059 | 4,945 | |||||||||||||||
Other assets | 42,529 | 46,303 | 9,839 | 8,691 | 7,551 | |||||||||||||||
Total assets/liabilities & shareholders’ equity | 299,744 | 309,378 | 276,604 | 283,977 | 286,702 | |||||||||||||||
Customer deposits* | 109,039 | 110,225 | 114,948 | 115,194 | 112,292 | |||||||||||||||
Marketable debt securities* | 61,049 | 64,696 | 69,176 | 72,857 | 82,528 | |||||||||||||||
Subordinated debt | 11,045 | 10,640 | 10,458 | 9,430 | 9,216 | |||||||||||||||
Insurance liabilities | 35,912 | 33,528 | 71 | 71 | 11 | |||||||||||||||
Due to credit institutions* | 43,371 | 55,599 | 45,513 | 51,020 | 44,871 | |||||||||||||||
Other liabilities | 36,240 | 32,057 | 33,198 | 32,076 | 33,839 | |||||||||||||||
Shareholders’ equity | 3,088 | 2,633 | 3,241 | 3,328 | 3,946 | |||||||||||||||
Other customer funds under management | 16,112 | 17,146 | 6,276 | 8,307 | 13,640 | |||||||||||||||
Mutual funds | 5,904 | 6,638 | 6,276 | 8,307 | 13,640 | |||||||||||||||
Pension funds | — | — | — | — | — | |||||||||||||||
Managed portfolios | — | — | — | — | — | |||||||||||||||
Savings-insurance policies | 10,209 | 10,508 | — | — | — | |||||||||||||||
Customer funds under management | 197,245 | 202,707 | 200,857 | 205,788 | 217,675 |
(*) | Includes all stock of concept classified in the balance sheet |
Other information | ||||||||||||||||||||
NPL ratio | 0.64 | 0.63 | 0.64 | 0.60 | 0.55 | |||||||||||||||
NPL coverage | 79.32 | 81.98 | 84.18 | 85.88 | 81.38 | |||||||||||||||
Risk-weighted assets | 105,323 | 100,523 | 96,344 | 97,277 | 90,473 | |||||||||||||||
Spread (Retail Banking) | 1.81 | 1.84 | 1.84 | 1.89 | 1.97 | |||||||||||||||
Spread loans | 0.72 | 0.73 | 0.70 | 0.69 | 0.69 | |||||||||||||||
Spread deposits | 1.09 | 1.11 | 1.14 | 1.20 | 1.28 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 383 | 349 | 34 | 9.7 | ||||||||||||
Income from companies accounted for by the equity method | 0 | 1 | (0 | ) | (88.1 | ) | ||||||||||
Net fees | 169 | 173 | (5 | ) | (2.7 | ) | ||||||||||
Insurance activity | 0 | (0 | ) | 0 | — | |||||||||||
Commercial revenue | 552 | 523 | 29 | 5.5 | ||||||||||||
Gains (losses) on financial transactions | 88 | 75 | 13 | 17.7 | ||||||||||||
Gross operating income | 640 | 598 | 42 | 7.0 | ||||||||||||
Income from non-financial services (net) and other operating income | 9 | 11 | (1 | ) | (12.1 | ) | ||||||||||
Operating expenses | (330 | ) | (345 | ) | 15 | (4.4 | ) | |||||||||
General administrative expenses | (313 | ) | (327 | ) | 14 | (4.2 | ) | |||||||||
Personnel | (175 | ) | (187 | ) | 11 | (6.0 | ) | |||||||||
Other administrative expenses | (138 | ) | (140 | ) | 2 | (1.7 | ) | |||||||||
Depreciation and amortisation | (17 | ) | (18 | ) | 2 | (8.3 | ) | |||||||||
Net operating income | 319 | 264 | 56 | 21.2 | ||||||||||||
Net loan loss provisions | (55 | ) | (61 | ) | 6 | (10.0 | ) | |||||||||
Other income | 3 | (0 | ) | 4 | — | |||||||||||
Profit before taxes | 268 | 203 | 66 | 32.5 | ||||||||||||
Tax on profit | (67 | ) | (56 | ) | (11 | ) | 19.3 | |||||||||
Net profit from ordinary activity | 201 | 146 | 55 | 37.7 | ||||||||||||
Net profit from discontinued operations | — | 21 | (21 | ) | (100.0 | ) | ||||||||||
Net consolidated profit | 201 | 167 | 34 | 20.1 | ||||||||||||
Minority interests | — | — | — | — | ||||||||||||
Attributable profit to the Group | 201 | 167 | 34 | 20.1 | ||||||||||||
Variation | ||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | |||||||||||||
Balance sheet | ||||||||||||||||
Loans and credits* | 130,975 | 121,063 | 9,912 | 8.2 | ||||||||||||
Trading portfolio (w/o loans) | 40,294 | 42,992 | (2,698 | ) | (6.3 | ) | ||||||||||
Available-for-sale financial assets | 16 | 14 | 2 | 14.5 | ||||||||||||
Due from credit institutions* | 15,121 | 11,543 | 3,578 | 31.0 | ||||||||||||
Intangible assets and property and equipment | 3,362 | 3,513 | (151 | ) | (4.3 | ) | ||||||||||
Other assets | 5,133 | 29,617 | (24,484 | ) | (82.7 | ) | ||||||||||
Total assets/liabilities & shareholders’ equity | 194,900 | 208,742 | (13,841 | ) | (6.6 | ) | ||||||||||
Customer deposits* | 76,336 | 75,935 | 401 | 0.5 | ||||||||||||
Marketable debt securities* | 56,103 | 42,514 | 13,588 | 32.0 | ||||||||||||
Subordinated debt | 6,265 | 7,691 | (1,427 | ) | (18.5 | ) | ||||||||||
Insurance liabilities | 7 | 25,009 | (25,002 | ) | (100.0 | ) | ||||||||||
Due to credit institutions* | 30,503 | 30,203 | 299 | 1.0 | ||||||||||||
Other liabilities | 23,004 | 25,238 | (2,234 | ) | (8.9 | ) | ||||||||||
Shareholders’ equity | 2,682 | 2,151 | 532 | 24.7 | ||||||||||||
Other customer funds under management | 9,272 | 11,221 | (1,949 | ) | (17.4 | ) | ||||||||||
Mutual funds | 9,272 | 4,111 | 5,161 | 125.5 | ||||||||||||
Pension funds | — | — | — | — | ||||||||||||
Managed portfolios | — | — | — | — | ||||||||||||
Savings-insurance policies | — | 7,109 | (7,109 | ) | (100.0 | ) | ||||||||||
Customer funds under management | 147,976 | 137,361 | 10,614 | 7.7 |
(*) | Includes all stock of concept classified in the balance sheet |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 349 | 360 | 363 | 364 | 383 | |||||||||||||||
Income from companies accounted for by the equity method | 1 | 1 | 0 | 0 | 0 | |||||||||||||||
Net fees | 173 | 176 | 177 | 174 | 169 | |||||||||||||||
Insurance activity | (0 | ) | (0 | ) | 0 | 0 | 0 | |||||||||||||
Commercial revenue | 523 | 537 | 540 | 538 | 552 | |||||||||||||||
Gains (losses) on financial transactions | 75 | 51 | 80 | 83 | 88 | |||||||||||||||
Gross operating income | 598 | 588 | 620 | 621 | 640 | |||||||||||||||
Income from non-financial services (net) and other operating income | 11 | 10 | 7 | 1 | 9 | |||||||||||||||
Operating expenses | (345 | ) | (332 | ) | (337 | ) | (337 | ) | (330 | ) | ||||||||||
General administrative expenses | (327 | ) | (313 | ) | (322 | ) | (318 | ) | (313 | ) | ||||||||||
Personnel | (187 | ) | (181 | ) | (179 | ) | (177 | ) | (175 | ) | ||||||||||
Other administrative expenses | (140 | ) | (132 | ) | (142 | ) | (141 | ) | (138 | ) | ||||||||||
Depreciation and amortisation | (18 | ) | (19 | ) | (16 | ) | (19 | ) | (17 | ) | ||||||||||
Net operating income | 264 | 265 | 290 | 285 | 319 | |||||||||||||||
Net loan loss provisions | (61 | ) | (79 | ) | (70 | ) | (54 | ) | (55 | ) | ||||||||||
Other income | (0 | ) | (1 | ) | 1 | (0 | ) | 3 | ||||||||||||
Profit before taxes (w/o capital gains) | 203 | 186 | 221 | 231 | 268 | |||||||||||||||
Tax on profit | (56 | ) | (55 | ) | (66 | ) | (56 | ) | (67 | ) | ||||||||||
Net profit from ordinary activity | 146 | 130 | 155 | 175 | 201 | |||||||||||||||
Net profit from discontinued operations | 21 | 40 | 16 | 0 | — | |||||||||||||||
Net consolidated profit (w/o capital gains) | 167 | 170 | 171 | 175 | 201 | |||||||||||||||
Minority interests | — | — | — | — | — | |||||||||||||||
Attributable profit to the Group (w/o capital gains) | 167 | 170 | 171 | 175 | 201 | |||||||||||||||
Net extraordinary gains and allowances | — | — | — | — | — | |||||||||||||||
Attributable profit to the Group | 167 | 170 | 171 | 175 | 201 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Balance sheet | ||||||||||||||||||||
Loans and credits* | 121,063 | 126,375 | 124,573 | 127,929 | 130,975 | |||||||||||||||
Trading portfolio (w/o loans) | 42,992 | 43,515 | 40,594 | 41,302 | 40,294 | |||||||||||||||
Available-for-sale financial assets | 14 | 14 | 15 | 16 | 16 | |||||||||||||||
Due from credit institutions* | 11,543 | 8,711 | 12,190 | 12,211 | 15,121 | |||||||||||||||
Intangible assets and property and equipment | 3,513 | 3,460 | 3,415 | 3,397 | 3,362 | |||||||||||||||
Other assets | 29,617 | 32,046 | 6,668 | 5,836 | 5,133 | |||||||||||||||
Total assets/liabilities & shareholders’ equity | 208,742 | 214,121 | 187,455 | 190,690 | 194,900 | |||||||||||||||
Customer deposits* | 75,935 | 76,287 | 77,900 | 77,353 | 76,336 | |||||||||||||||
Marketable debt securities* | 42,514 | 44,776 | 46,880 | 48,924 | 56,103 | |||||||||||||||
Subordinated debt | 7,691 | 7,364 | 7,087 | 6,332 | 6,265 | |||||||||||||||
Insurance liabilities | 25,009 | 23,205 | 48 | 48 | 7 | |||||||||||||||
Due to credit institutions* | 30,203 | 38,480 | 30,844 | 34,260 | 30,503 | |||||||||||||||
Other liabilities | 25,238 | 22,186 | 22,499 | 21,539 | 23,004 | |||||||||||||||
Shareholders’ equity | 2,151 | 1,823 | 2,196 | 2,235 | 2,682 | |||||||||||||||
Other customer funds under management | 11,221 | 11,866 | 4,253 | 5,578 | 9,272 | |||||||||||||||
Mutual funds | 4,111 | �� | 4,594 | 4,253 | 5,578 | 9,272 | ||||||||||||||
Pension funds | — | — | — | — | — | |||||||||||||||
Managed portfolios | — | — | — | — | — | |||||||||||||||
Savings-insurance policies | 7,109 | 7,273 | — | — | — | |||||||||||||||
Customer funds under management | 137,361 | 140,294 | 136,121 | 138,187 | 147,976 |
(*) | Includes all stock of concept classified in the balance sheet |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 1,471 | 1,225 | 246 | 20.1 | ||||||||||||
Income from companies accounted for by the equity method | 1 | 2 | (1 | ) | (33.4 | ) | ||||||||||
Net fees | 709 | 634 | 75 | 11.8 | ||||||||||||
Insurance activity | 57 | 33 | 24 | 72.9 | ||||||||||||
Commercial revenue | 2,239 | 1,894 | 345 | 18.2 | ||||||||||||
Gains (losses) on financial transactions | 205 | 196 | 8 | 4.2 | ||||||||||||
Gross operating income | 2,444 | 2,091 | 353 | 16.9 | ||||||||||||
Income from non-financial services (net) and other operating income | (36 | ) | (24 | ) | (12 | ) | 49.0 | |||||||||
Operating expenses | (1,053 | ) | (993 | ) | (61 | ) | 6.1 | |||||||||
General administrative expenses | (973 | ) | (917 | ) | (56 | ) | 6.1 | |||||||||
Personnel | (523 | ) | (499 | ) | (24 | ) | 4.9 | |||||||||
Other administrative expenses | (450 | ) | (418 | ) | (31 | ) | 7.5 | |||||||||
Depreciation and amortisation | (80 | ) | (75 | ) | (5 | ) | 6.5 | |||||||||
Net operating income | 1,354 | 1,074 | 280 | 26.1 | ||||||||||||
Net loan loss provisions | (327 | ) | (184 | ) | (142 | ) | 77.2 | |||||||||
Other income | (4 | ) | (6 | ) | 2 | (32.5 | ) | |||||||||
Profit before taxes | 1,023 | 883 | 140 | 15.9 | ||||||||||||
Tax on profit | (250 | ) | (196 | ) | (54 | ) | 27.5 | |||||||||
Net profit from ordinary activity | 773 | 687 | 86 | 12.5 | ||||||||||||
Net profit from discontinued operations | — | 7 | (7 | ) | (100.0 | ) | ||||||||||
Net consolidated profit | 773 | 694 | 79 | 11.3 | ||||||||||||
Minority interests | 92 | 76 | 16 | 20.9 | ||||||||||||
Attributable profit to the Group | 681 | 618 | 63 | 10.1 |
Variation | ||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | |||||||||||||
Balance sheet | ||||||||||||||||
Loans and credits* | 59,399 | 53,530 | 5,869 | 11.0 | ||||||||||||
Trading portfolio (w/o loans) | 24,183 | 25,209 | (1,026 | ) | (4.1 | ) | ||||||||||
Available-for-sale financial assets | 13,638 | 16,087 | (2,449 | ) | (15.2 | ) | ||||||||||
Due from credit institutions* | 23,420 | 27,421 | (4,001 | ) | (14.6 | ) | ||||||||||
Intangible assets and property and equipment | 1,689 | 1,364 | 325 | 23.8 | ||||||||||||
Other assets | 20,865 | 18,844 | 2,021 | 10.7 | ||||||||||||
Total assets/liabilities & shareholders’ equity | 143,194 | 142,455 | 739 | 0.5 | ||||||||||||
Customer deposits* | 75,488 | 66,929 | 8,559 | 12.8 | ||||||||||||
Marketable debt securities* | 4,367 | 6,337 | (1,970 | ) | (31.1 | ) | ||||||||||
Subordinated debt | 2,450 | 1,077 | �� | 1,373 | 127.5 | |||||||||||
Insurance liabilities | 2,259 | 1,837 | 422 | 23.0 | ||||||||||||
Due to credit institutions* | 31,116 | 42,047 | (10,931 | ) | (26.0 | ) | ||||||||||
Other liabilities | 18,720 | 14,751 | 3,969 | 26.9 | ||||||||||||
Shareholders’ equity | 8,795 | 9,479 | (684 | ) | (7.2 | ) | ||||||||||
Other customer funds under management | 62,230 | 53,014 | 9,216 | 17.4 | ||||||||||||
Mutual funds | 32,494 | 24,885 | 7,609 | 30.6 | ||||||||||||
Pension funds | 18,564 | 19,110 | (546 | ) | (2.9 | ) | ||||||||||
Managed portfolios | 11,172 | 9,018 | 2,153 | 23.9 | ||||||||||||
Savings-insurance policies | — | — | — | — | ||||||||||||
Customer funds under management | 144,534 | 127,356 | 17,178 | 13.5 |
(*) | Includes all stock of concept classified in the balance sheet |
Ratios (%) and other data | ||||||||||||||||
ROE | 30.29 | 26.63 | 3.66 p. | |||||||||||||
Efficiency ratio | 42.11 | 46.35 | (4.24 p. | ) | ||||||||||||
NPL ratio | 1.50 | 1.71 | (0.21 p. | ) | ||||||||||||
NPL coverage | 160.00 | 183.37 | (23.37 p. | ) | ||||||||||||
Number of employees (direct & indirect) | 69,958 | 62,259 | 7,699 | 12.4 | ||||||||||||
Number of branches | 4,438 | 4,170 | 268 | 6.4 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 1,225 | 1,290 | 1,366 | 1,399 | 1,471 | |||||||||||||||
Income from companies accounted for by the equity method | 2 | 2 | 1 | 2 | 1 | |||||||||||||||
Net fees | 634 | 617 | 622 | 682 | 709 | |||||||||||||||
Insurance activity | 33 | 44 | 38 | 50 | 57 | |||||||||||||||
Commercial revenue | 1,894 | 1,953 | 2,027 | 2,134 | 2,239 | |||||||||||||||
Gains (losses) on financial transactions | 196 | 105 | 180 | 153 | 205 | |||||||||||||||
Gross operating income | 2,091 | 2,058 | 2,207 | 2,286 | 2,444 | |||||||||||||||
Income from non-financial services (net) and other operating income | (24 | ) | (26 | ) | (21 | ) | (48 | ) | (36 | ) | ||||||||||
Operating expenses | (993 | ) | (986 | ) | (1,040 | ) | (1,117 | ) | (1,053 | ) | ||||||||||
General administrative expenses | (917 | ) | (909 | ) | (969 | ) | (1,031 | ) | (973 | ) | ||||||||||
Personnel | (499 | ) | (500 | ) | (511 | ) | (543 | ) | (523 | ) | ||||||||||
Other administrative expenses | (418 | ) | (409 | ) | (458 | ) | (489 | ) | (450 | ) | ||||||||||
Depreciation and amortisation | (75 | ) | (77 | ) | (72 | ) | (86 | ) | (80 | ) | ||||||||||
Net operating income | 1,074 | 1,047 | 1,145 | 1,121 | 1,354 | |||||||||||||||
Net loan loss provisions | (184 | ) | (205 | ) | (171 | ) | (299 | ) | (327 | ) | ||||||||||
Other income | (6 | ) | (123 | ) | (69 | ) | (55 | ) | (4 | ) | ||||||||||
Profit before taxes (w/o capital gains) | 883 | 719 | 905 | 768 | 1,023 | |||||||||||||||
Tax on profit | (196 | ) | (118 | ) | (189 | ) | (205 | ) | (250 | ) | ||||||||||
Net profit from ordinary activity | 687 | 601 | 716 | 563 | 773 | |||||||||||||||
Net profit from discontinued operations | 7 | 1 | 0 | 0 | — | |||||||||||||||
Net consolidated profit (w/o capital gains) | 694 | 602 | 717 | 563 | 773 | |||||||||||||||
Minority interests | 76 | 73 | 64 | 75 | 92 | |||||||||||||||
Attributable profit to the Group (w/o capital gains) | 618 | 529 | 652 | 487 | 681 | |||||||||||||||
Net extraordinary gains and allowances | — | — | — | — | — | |||||||||||||||
Attributable profit to the Group | 618 | 529 | 652 | 487 | 681 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Balance sheet | ||||||||||||||||||||
Loans and credits* | 53,530 | 53,256 | 56,398 | 60,172 | 59,399 | |||||||||||||||
Trading portfolio (w/o loans) | 25,209 | 24,682 | 24,641 | 27,846 | 24,183 | |||||||||||||||
Available-for-sale financial assets | 16,087 | 16,523 | 17,064 | 17,943 | 13,638 | |||||||||||||||
Due from credit institutions* | 27,421 | 24,787 | 22,207 | 20,310 | 23,420 | |||||||||||||||
Intangible assets and property and equipment | 1,364 | 1,280 | 1,517 | 1,695 | 1,689 | |||||||||||||||
Other assets | 18,844 | 15,196 | 16,541 | 16,842 | 20,865 | |||||||||||||||
Total assets/liabilities & shareholders’ equity | 142,455 | 135,725 | 138,368 | 144,809 | 143,194 | |||||||||||||||
Customer deposits* | 66,929 | 65,681 | 72,550 | 75,301 | 75,488 | |||||||||||||||
Marketable debt securities* | 6,337 | 6,264 | 5,895 | 5,258 | 4,367 | |||||||||||||||
Subordinated debt | 1,077 | 1,565 | 1,906 | 2,383 | 2,450 | |||||||||||||||
Insurance liabilities | 1,837 | 1,825 | 1,932 | 2,086 | 2,259 | |||||||||||||||
Due to credit institutions* | 42,047 | 37,397 | 30,106 | 32,403 | 31,116 | |||||||||||||||
Other liabilities | 14,751 | 14,778 | 17,626 | 19,529 | 18,720 | |||||||||||||||
Shareholders’ equity | 9,479 | 8,215 | 8,353 | 7,847 | 8,795 | |||||||||||||||
Other customer funds under management | 53,014 | 50,837 | 52,989 | 56,352 | 62,230 | |||||||||||||||
Mutual funds | 24,885 | 24,363 | 26,567 | 27,965 | 32,494 | |||||||||||||||
Pension funds | 19,110 | 17,449 | 16,861 | 18,052 | 18,564 | |||||||||||||||
Managed portfolios | 9,018 | 9,025 | 9,560 | 10,334 | 11,172 | |||||||||||||||
Savings-insurance policies | — | — | — | — | — | |||||||||||||||
Customer funds under management | 127,356 | 124,348 | 133,340 | 139,295 | 144,534 |
(*) | Includes all stock of concept classified in the balance sheet |
Other information | ||||||||||||||||||||
NPL ratio | 1.71 | 1.77 | 1.65 | 1.38 | 1.50 | |||||||||||||||
NPL coverage | 183.37 | 167.53 | 166.55 | 167.29 | 160.00 | |||||||||||||||
Risk-weighted assets | 62,272 | 58,303 | 61,551 | 66,774 | 69,672 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 1,928 | 1,472 | 456 | 31.0 | ||||||||||||
Income from companies accounted for by the equity method | 2 | 3 | (1 | ) | (27.4 | ) | ||||||||||
Net fees | 929 | 762 | 167 | 22.0 | ||||||||||||
Insurance activity | 75 | 40 | 35 | 88.5 | ||||||||||||
Commercial revenue | 2,935 | 2,277 | 658 | 28.9 | ||||||||||||
Gains (losses) on financial transactions | 268 | 236 | 32 | 13.6 | ||||||||||||
Gross operating income | 3,203 | 2,513 | 690 | 27.5 | ||||||||||||
Income from non-financial services (net) and other operating income | (48 | ) | (29 | ) | (18 | ) | 62.5 | |||||||||
Operating expenses | (1,381 | ) | (1,193 | ) | (187 | ) | 15.7 | |||||||||
General administrative expenses | (1,275 | ) | (1,103 | ) | (173 | ) | 15.7 | |||||||||
Personnel | (686 | ) | (600 | ) | (86 | ) | 14.3 | |||||||||
Other administrative expenses | (590 | ) | (503 | ) | (87 | ) | 17.3 | |||||||||
Depreciation and amortisation | (105 | ) | (91 | ) | (15 | ) | 16.1 | |||||||||
Net operating income | 1,775 | 1,290 | 484 | 37.5 | ||||||||||||
Net loan loss provisions | (428 | ) | (222 | ) | (207 | ) | 93.3 | |||||||||
Other income | (5 | ) | (7 | ) | 2 | (26.4 | ) | |||||||||
Profit before taxes | 1,341 | 1,061 | 280 | 26.3 | ||||||||||||
Tax on profit | (328 | ) | (236 | ) | (92 | ) | 39.0 | |||||||||
Net profit from ordinary activity | 1,013 | 825 | 187 | 22.7 | ||||||||||||
Net profit from discontinued operations | — | 9 | (9 | ) | (100.0 | ) | ||||||||||
Net consolidated profit | 1,013 | 834 | 178 | 21.4 | ||||||||||||
Minority interests | 120 | 91 | 29 | 31.8 | ||||||||||||
Attributable profit to the Group | 892 | 743 | 149 | 20.1 |
Variation | ||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | |||||||||||||
Balance sheet | ||||||||||||||||
Loans and credits* | 79,107 | 64,792 | 14,315 | 22.1 | ||||||||||||
Trading portfolio (w/o loans) | 32,207 | 30,513 | 1,694 | 5.6 | ||||||||||||
Available-for-sale financial assets | 18,163 | 19,472 | (1,309 | ) | (6.7 | ) | ||||||||||
Due from credit institutions* | 31,191 | 33,190 | (2,000 | ) | (6.0 | ) | ||||||||||
Intangible assets and property and equipment | 2,250 | 1,651 | 599 | 36.3 | ||||||||||||
Other assets | 27,788 | 22,809 | 4,979 | 21.8 | ||||||||||||
Total assets/liabilities & shareholders’ equity | 190,706 | 172,428 | 18,279 | 10.6 | ||||||||||||
Customer deposits* | 100,535 | 81,010 | 19,524 | 24.1 | ||||||||||||
Marketable debt securities* | 5,816 | 7,671 | (1,854 | ) | (24.2 | ) | ||||||||||
Subordinated debt | 3,263 | 1,303 | 1,959 | 150.4 | ||||||||||||
Insurance liabilities | 3,008 | 2,223 | 785 | 35.3 | ||||||||||||
Due to credit institutions* | 41,440 | 50,893 | (9,453 | ) | (18.6 | ) | ||||||||||
Other liabilities | 24,931 | 17,854 | 7,077 | 39.6 | ||||||||||||
Shareholders’ equity | 11,714 | 11,473 | 240 | 2.1 | ||||||||||||
Other customer funds under management | 82,877 | 64,168 | 18,709 | 29.2 | ||||||||||||
Mutual funds | 43,275 | 30,121 | 13,155 | 43.7 | ||||||||||||
Pension funds | 24,724 | 23,131 | 1,592 | 6.9 | ||||||||||||
Managed portfolios | 14,878 | 10,916 | 3,963 | 36.3 | ||||||||||||
Savings-insurance policies | — | — | — | — | ||||||||||||
Customer funds under management | 192,491 | 154,152 | 38,339 | 24.9 |
(*) | Includes all stock of concept classified in the balance sheet |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 1,472 | 1,617 | 1,735 | 1,794 | 1,928 | |||||||||||||||
Income from companies accounted for by the equity method | 3 | 3 | 1 | 2 | 2 | |||||||||||||||
Net fees | 762 | 775 | 792 | 875 | 929 | |||||||||||||||
Insurance activity | 40 | 55 | 48 | 64 | 75 | |||||||||||||||
Commercial revenue | 2,277 | 2,450 | 2,577 | 2,735 | 2,935 | |||||||||||||||
Gains (losses) on financial transactions | 236 | 134 | 228 | 196 | 268 | |||||||||||||||
Gross operating income | 2,513 | 2,583 | 2,805 | 2,932 | 3,203 | |||||||||||||||
Income from non-financial services (net) and other operating income | (29 | ) | (33 | ) | (27 | ) | (61 | ) | (48 | ) | ||||||||||
Operating expenses | (1,193 | ) | (1,237 | ) | (1,323 | ) | (1,431 | ) | (1,381 | ) | ||||||||||
General administrative expenses | (1,103 | ) | (1,141 | ) | (1,232 | ) | (1,322 | ) | (1,275 | ) | ||||||||||
Personnel | (600 | ) | (627 | ) | (650 | ) | (696 | ) | (686 | ) | ||||||||||
Other administrative expenses | (503 | ) | (514 | ) | (581 | ) | (626 | ) | (590 | ) | ||||||||||
Depreciation and amortisation | (91 | ) | (96 | ) | (91 | ) | (110 | ) | (105 | ) | ||||||||||
Net operating income | 1,290 | 1,314 | 1,455 | 1,439 | 1,775 | |||||||||||||||
Net loan loss provisions | (222 | ) | (256 | ) | (219 | ) | (381 | ) | (428 | ) | ||||||||||
Other income | (7 | ) | (151 | ) | (88 | ) | (70 | ) | (5 | ) | ||||||||||
Profit before taxes (w/o capital gains) | 1,061 | 907 | 1,149 | 988 | 1,341 | |||||||||||||||
Tax on profit | (236 | ) | (151 | ) | (239 | ) | (262 | ) | (328 | ) | ||||||||||
Net profit from ordinary activity | 825 | 756 | 910 | 726 | 1,013 | |||||||||||||||
Net profit from discontinued operations | 9 | 2 | 0 | 0 | — | |||||||||||||||
Net consolidated profit (w/o capital gains) | 834 | 758 | 910 | 726 | 1,013 | |||||||||||||||
Minority interests | 91 | 92 | 82 | 97 | 120 | |||||||||||||||
Attributable profit to the Group (w/o capital gains) | 743 | 666 | 828 | 629 | 892 | |||||||||||||||
Net extraordinary gains and allowances | — | — | — | — | — | |||||||||||||||
Attributable profit to the Group | 743 | 666 | 828 | 629 | 892 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Balance sheet | ||||||||||||||||||||
Loans and credits* | 64,792 | 67,705 | 71,399 | 79,247 | 79,107 | |||||||||||||||
Trading portfolio (w/o loans) | 30,513 | 31,378 | 31,196 | 36,673 | 32,207 | |||||||||||||||
Available-for-sale financial assets | 19,472 | 21,006 | 21,603 | 23,631 | 18,163 | |||||||||||||||
Due from credit institutions* | 33,190 | 31,512 | 28,115 | 26,749 | 31,191 | |||||||||||||||
Intangible assets and property and equipment | 1,651 | 1,627 | 1,921 | 2,233 | 2,250 | |||||||||||||||
Other assets | 22,809 | 19,319 | 20,941 | 22,181 | 27,788 | |||||||||||||||
Total assets/liabilities & shareholders’ equity | 172,428 | 172,548 | 175,175 | 190,713 | 190,706 | |||||||||||||||
Customer deposits* | 81,010 | 83,501 | 91,849 | 99,172 | 100,535 | |||||||||||||||
Marketable debt securities* | 7,671 | 7,964 | 7,462 | 6,925 | 5,816 | |||||||||||||||
Subordinated debt | 1,303 | 1,989 | 2,414 | 3,139 | 3,263 | |||||||||||||||
Insurance liabilities | 2,223 | 2,321 | 2,446 | 2,747 | 3,008 | |||||||||||||||
Due to credit institutions* | 50,893 | 47,543 | 38,114 | 42,675 | 41,440 | |||||||||||||||
Other liabilities | 17,854 | 18,787 | 22,315 | 25,720 | 24,931 | |||||||||||||||
Shareholders’ equity | 11,473 | 10,443 | 10,575 | 10,334 | 11,714 | |||||||||||||||
Other customer funds under management | 64,168 | 64,630 | 67,084 | 74,215 | 82,877 | |||||||||||||||
Mutual funds | 30,121 | 30,973 | 33,634 | 36,830 | 43,275 | |||||||||||||||
Pension funds | 23,131 | 22,183 | 21,346 | 23,774 | 24,724 | |||||||||||||||
Managed portfolios | 10,916 | 11,474 | 12,103 | 13,610 | 14,878 | |||||||||||||||
Savings-insurance policies | — | — | — | — | — | |||||||||||||||
Customer funds under management | 154,152 | 158,083 | 168,808 | 183,451 | 192,491 |
(*) | Includes all stock of concept classified in the balance sheet |
Gross operating income | Net operating income | Attributable profit to the Group | ||||||||||||||||||||||
Q1 ’07 | Var. (%) | Q1 ’07 | Var. (%) | Q1 ’07 | Var. (%) | |||||||||||||||||||
Brazil | 961 | 19.5 | 547 | 33.5 | 225 | 13.4 | ||||||||||||||||||
Mexico | 615 | 20.0 | 364 | 36.3 | 156 | 9.8 | ||||||||||||||||||
Chile | 353 | 6.2 | 210 | 8.4 | 131 | 14.9 | ||||||||||||||||||
Puerto Rico | 82 | 18.8 | 32 | 55.4 | 10 | 35.5 | ||||||||||||||||||
Venezuela | 151 | 41.2 | 67 | 36.4 | 46 | 8.2 | ||||||||||||||||||
Colombia | 32 | (2.1 | ) | 10 | (18.5 | ) | 8 | (54.2 | ) | |||||||||||||||
Argentina | 149 | 19.0 | 80 | 25.9 | 53 | 37.2 | ||||||||||||||||||
Rest | 27 | (37.2 | ) | (2 | ) | — | 12 | (46.7 | ) | |||||||||||||||
Subtotal | 2,369 | 17.0 | 1,307 | 26.6 | 639 | 9.9 | ||||||||||||||||||
Santander Private Banking | 75 | 13.6 | 47 | 14.4 | 42 | 13.7 | ||||||||||||||||||
Total | 2,444 | 16.9 | 1,354 | 26.1 | 681 | 10.1 |
Gross operating income | Net operating income | Attributable profit to the Group | ||||||||||||||||||||||
Q1 ’07 | Var. (%) | Q1 ’07 | Var. (%) | Q1 ’07 | Var. (%) | |||||||||||||||||||
Brazil | 1,260 | 30.3 | 717 | 45.6 | 294 | 23.7 | ||||||||||||||||||
Mexico | 805 | 30.8 | 477 | 48.6 | 204 | 19.7 | ||||||||||||||||||
Chile | 463 | 15.8 | 275 | 18.2 | 171 | 25.3 | ||||||||||||||||||
Puerto Rico | 107 | 29.6 | 43 | 69.5 | 13 | 47.8 | ||||||||||||||||||
Venezuela | 197 | 54.0 | 87 | 48.7 | 60 | 18.0 | ||||||||||||||||||
Colombia | 42 | 6.8 | 13 | (11.1 | ) | 11 | (50.1 | ) | ||||||||||||||||
Argentina | 195 | 29.8 | 104 | 37.3 | 70 | 49.6 | ||||||||||||||||||
Rest | 35 | (31.6 | ) | (3 | ) | — | 15 | (41.9 | ) | |||||||||||||||
Subtotal | 3,105 | 27.6 | 1,713 | 38.0 | 838 | 19.9 | ||||||||||||||||||
Santander Private Banking | 98 | 23.9 | 61 | 24.7 | 54 | 24.0 | ||||||||||||||||||
Total | 3,203 | 27.5 | 1,775 | 37.5 | 892 | 20.1 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 525 | 467 | 58 | 12.5 | ||||||||||||
Income from companies accounted for by the equity method | 0 | 1 | (0 | ) | (59.8 | ) | ||||||||||
Net fees | 281 | 239 | 42 | 17.7 | ||||||||||||
Insurance activity | 21 | 8 | 13 | 154.8 | ||||||||||||
Commercial revenue | 828 | 715 | 113 | 15.8 | ||||||||||||
Gains (losses) on financial transactions | 133 | 89 | 44 | 49.7 | ||||||||||||
Gross operating income | 961 | 804 | 157 | 19.5 | ||||||||||||
Income from non-financial services (net) and other operating income | (2 | ) | 3 | (5 | ) | — | ||||||||||
Operating expenses | (413 | ) | (398 | ) | (15 | ) | 3.7 | |||||||||
General administrative expenses | (381 | ) | (369 | ) | (12 | ) | 3.2 | |||||||||
Personnel | (192 | ) | (197 | ) | 5 | (2.4 | ) | |||||||||
Other administrative expenses | (190 | ) | (173 | ) | (17 | ) | 9.6 | |||||||||
Depreciation and amortisation | (31 | ) | (29 | ) | (3 | ) | 9.2 | |||||||||
Net operating income | 547 | 409 | 137 | 33.5 | ||||||||||||
Net loan loss provisions | (174 | ) | (102 | ) | (72 | ) | 70.5 | |||||||||
Other income | (20 | ) | (0 | ) | (20 | ) | — | |||||||||
Profit before taxes | 352 | 307 | 45 | 14.6 | ||||||||||||
Tax on profit | (124 | ) | (106 | ) | (18 | ) | 16.8 | |||||||||
Net profit from ordinary activity | 228 | 201 | 27 | 13.4 | ||||||||||||
Net profit from discontinued operations | — | — | — | — | ||||||||||||
Net consolidated profit | 228 | 201 | 27 | 13.4 | ||||||||||||
Minority interests | 4 | 3 | 0 | 11.9 | ||||||||||||
Attributable profit to the Group | 225 | 198 | 27 | 13.4 |
Variation | ||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | |||||||||||||
Balance sheet | ||||||||||||||||
Loans and credits* | 14,614 | 11,211 | 3,403 | 30.3 | ||||||||||||
Trading portfolio (w/o loans) | 7,055 | 8,375 | (1,320 | ) | (15.8 | ) | ||||||||||
Available-for-sale financial assets | 2,708 | 6,307 | (3,600 | ) | (57.1 | ) | ||||||||||
Due from credit institutions* | 2,425 | 8,005 | (5,580 | ) | (69.7 | ) | ||||||||||
Intangible assets and property and equipment | 664 | 379 | 285 | 75.4 | ||||||||||||
Other assets | 10,567 | 9,318 | 1,250 | 13.4 | ||||||||||||
Total assets/liabilities & shareholders’ equity | 38,034 | 43,595 | (5,562 | ) | (12.8 | ) | ||||||||||
Customer deposits* | 18,288 | 11,554 | 6,733 | 58.3 | ||||||||||||
Marketable debt securities* | 947 | 939 | 8 | 0.9 | ||||||||||||
Subordinated debt | 1,510 | 404 | 1,105 | 273.3 | ||||||||||||
Insurance liabilities | 1,550 | 1,209 | 341 | 28.2 | ||||||||||||
Due to credit institutions* | 5,592 | 19,648 | (14,056 | ) | (71.5 | ) | ||||||||||
Other liabilities | 7,172 | 6,911 | 261 | 3.8 | ||||||||||||
Shareholders’ equity | 2,975 | 2,930 | 45 | 1.5 | ||||||||||||
Other customer funds under management | 18,326 | 13,070 | 5,256 | 40.2 | ||||||||||||
Mutual funds | 17,558 | 12,456 | 5,103 | 41.0 | ||||||||||||
Pension funds | — | — | — | — | ||||||||||||
Managed portfolios | 768 | 614 | 154 | 25.0 | ||||||||||||
Savings-insurance policies | — | — | — | — | ||||||||||||
Customer funds under management | 39,071 | 25,968 | 13,103 | 50.5 |
Ratios (%) and other data | ||||||||||||||||
ROE | 32.01 | 28.62 | 3.39 | p. | ||||||||||||
Efficiency ratio | 40.62 | 46.83 | (6.21 | p.) | ||||||||||||
NPL ratio | 2.62 | 2.76 | (0.14 | p.) | ||||||||||||
NPL coverage | 98.77 | 126.24 | (27.47 | p.) | ||||||||||||
Number of employees (direct & indirect) | 21,680 | 21,171 | 509 | 2.4 | ||||||||||||
Number of branches | 2,044 | 1,877 | 167 | 8.9 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 467 | 450 | 453 | 491 | 525 | |||||||||||||||
Income from companies accounted for by the equity method | 1 | 0 | (0 | ) | 0 | 0 | ||||||||||||||
Net fees | 239 | 232 | 238 | 292 | 281 | |||||||||||||||
Insurance activity | 8 | 16 | 14 | 19 | 21 | |||||||||||||||
Commercial revenue | 715 | 699 | 705 | 802 | 828 | |||||||||||||||
Gains (losses) on financial transactions | 89 | 88 | 161 | 100 | 133 | |||||||||||||||
Gross operating income | 804 | 788 | 865 | 902 | 961 | |||||||||||||||
Income from non-financial services (net) and other operating income | 3 | 5 | 7 | (22 | ) | (2 | ) | |||||||||||||
Operating expenses | (398 | ) | (396 | ) | (413 | ) | (419 | ) | (413 | ) | ||||||||||
General administrative expenses | (369 | ) | (369 | ) | (386 | ) | (387 | ) | (381 | ) | ||||||||||
Personnel | (197 | ) | (195 | ) | (195 | ) | (199 | ) | (192 | ) | ||||||||||
Other administrative expenses | (173 | ) | (174 | ) | (192 | ) | (188 | ) | (190 | ) | ||||||||||
Depreciation and amortisation | (29 | ) | (27 | ) | (27 | ) | (33 | ) | (31 | ) | ||||||||||
Net operating income | 409 | 397 | 460 | 461 | 547 | |||||||||||||||
Net loan loss provisions | (102 | ) | (117 | ) | (78 | ) | (142 | ) | (174 | ) | ||||||||||
Other income | (0 | ) | (69 | ) | (54 | ) | (90 | ) | (20 | ) | ||||||||||
Profit before taxes (w/o capital gains) | 307 | 211 | 327 | 229 | 352 | |||||||||||||||
Tax on profit | (106 | ) | (52 | ) | (80 | ) | (75 | ) | (124 | ) | ||||||||||
Net profit from ordinary activity | 201 | 160 | 247 | 154 | 228 | |||||||||||||||
Net profit from discontinued operations | — | — | — | — | — | |||||||||||||||
Net consolidated profit (w/o capital gains) | 201 | 160 | 247 | 154 | 228 | |||||||||||||||
Minority interests | 3 | 2 | 3 | 2 | 4 | |||||||||||||||
Attributable profit to the Group (w/o capital gains) | 198 | 157 | 244 | 152 | 225 | |||||||||||||||
Net extraordinary gains and allowances | — | — | — | — | — | |||||||||||||||
Attributable profit to the Group | 198 | 157 | 244 | 152 | 225 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Balance sheet | ||||||||||||||||||||
Loans and credits* | 11,211 | 11,222 | 11,943 | 13,990 | 14,614 | |||||||||||||||
Trading portfolio (w/o loans) | 8,375 | 5,756 | 5,999 | 8,933 | 7,055 | |||||||||||||||
Available-for-sale financial assets | 6,307 | 5,851 | 5,131 | 6,356 | 2,708 | |||||||||||||||
Due from credit institutions* | 8,005 | 7,663 | 4,223 | 2,619 | 2,425 | |||||||||||||||
Intangible assets and property and equipment | 379 | 376 | 565 | 650 | 664 | |||||||||||||||
Other assets | 9,318 | 6,876 | 7,276 | 7,273 | 10,567 | |||||||||||||||
Total assets/liabilities & shareholders’ equity | 43,595 | 37,744 | 35,137 | 39,821 | 38,034 | |||||||||||||||
Customer deposits* | 11,554 | 11,244 | 15,862 | 17,282 | 18,288 | |||||||||||||||
Marketable debt securities* | 939 | 1,058 | 861 | 817 | 947 | |||||||||||||||
Subordinated debt | 404 | 936 | 1,118 | 1,430 | 1,510 | |||||||||||||||
Insurance liabilities | 1,209 | 1,207 | 1,275 | 1,407 | 1,550 | |||||||||||||||
Due to credit institutions* | 19,648 | 13,769 | 6,314 | 8,542 | 5,592 | |||||||||||||||
Other liabilities | 6,911 | 6,943 | 7,165 | 7,915 | 7,172 | |||||||||||||||
Shareholders’ equity | 2,930 | 2,588 | 2,543 | 2,428 | 2,975 | |||||||||||||||
Other customer funds under management | 13,070 | 13,376 | 14,087 | 14,674 | 18,326 | |||||||||||||||
Mutual funds | 12,456 | 12,759 | 13,453 | 13,988 | 17,558 | |||||||||||||||
Pension funds | — | — | — | — | — | |||||||||||||||
Managed portfolios | 614 | 617 | 635 | 686 | 768 | |||||||||||||||
Savings-insurance policies | — | — | — | — | — | |||||||||||||||
Customer funds under management | 25,968 | 26,613 | 31,928 | 34,203 | 39,071 |
Other information | ||||||||||||||||||||
NPL ratio | 2.76 | 3.06 | 2.82 | 2.38 | 2.62 | |||||||||||||||
NPL coverage | 126.24 | 109.28 | 106.61 | 102.78 | 98.77 | |||||||||||||||
Risk-weighted assets | 16,811 | 15,303 | 16,082 | 18,200 | 19,484 | |||||||||||||||
Spread (Retail Banking) | 21.72 | 21.25 | 20.08 | 18.87 | 19.25 | |||||||||||||||
Spread loans | 19.19 | 19.20 | 18.18 | 17.20 | 17.63 | |||||||||||||||
Spread deposits | 2.53 | 2.05 | 1.90 | 1.67 | 1.62 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 689 | 562 | 127 | 22.6 | ||||||||||||
Income from companies accounted for by the equity method | 0 | 1 | (1 | ) | (56.2 | ) | ||||||||||
Net fees | 369 | 287 | 81 | 28.3 | ||||||||||||
Insurance activity | 28 | 10 | 18 | 177.9 | ||||||||||||
Commercial revenue | 1,085 | 860 | 226 | 26.2 | ||||||||||||
Gains (losses) on financial transactions | 175 | 107 | 68 | 63.2 | ||||||||||||
Gross operating income | 1,260 | 967 | 293 | 30.3 | ||||||||||||
Income from non-financial services (net) and other operating income | (3 | ) | 4 | (6 | ) | — | ||||||||||
Operating expenses | (541 | ) | (478 | ) | (62 | ) | 13.0 | |||||||||
General administrative expenses | (500 | ) | (444 | ) | (56 | ) | 12.6 | |||||||||
Personnel | (251 | ) | (236 | ) | (15 | ) | 6.4 | |||||||||
Other administrative expenses | (248 | ) | (208 | ) | (41 | ) | 19.6 | |||||||||
Depreciation and amortisation | (41 | ) | (34 | ) | (7 | ) | 19.1 | |||||||||
Net operating income | 717 | 492 | 224 | 45.6 | ||||||||||||
Net loan loss provisions | (228 | ) | (123 | ) | (106 | ) | 85.9 | |||||||||
Other income | (27 | ) | (0 | ) | (27 | ) | — | |||||||||
Profit before taxes | 461 | 369 | 92 | 24.9 | ||||||||||||
Tax on profit | (162 | ) | (127 | ) | (35 | ) | 27.4 | |||||||||
Net profit from ordinary activity | 299 | 242 | 57 | 23.6 | ||||||||||||
Net profit from discontinued operations | — | — | — | — | ||||||||||||
Net consolidated profit | 299 | 242 | 57 | 23.6 | ||||||||||||
Minority interests | 5 | 4 | 1 | 22.0 | ||||||||||||
Attributable profit to the Group | 294 | 238 | 56 | 23.7 |
Variation | ||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | |||||||||||||
Balance sheet | ||||||||||||||||
Loans and credits* | 19,463 | 13,570 | 5,893 | 43.4 | ||||||||||||
Trading portfolio (w/o loans) | 9,396 | 10,137 | (741 | ) | (7.3 | ) | ||||||||||
Available-for-sale financial assets | 3,606 | 7,634 | (4,028 | ) | (52.8 | ) | ||||||||||
Due from credit institutions* | 3,230 | 9,690 | (6,460 | ) | (66.7 | ) | ||||||||||
Intangible assets and property and equipment | 884 | 458 | 426 | 93.0 | ||||||||||||
Other assets | 14,074 | 11,278 | 2,796 | 24.8 | ||||||||||||
Total assets/liabilities & shareholders’ equity | 50,653 | 52,768 | (2,115 | ) | (4.0 | ) | ||||||||||
Customer deposits* | 24,355 | 13,985 | 10,370 | 74.2 | ||||||||||||
Marketable debt securities* | 1,262 | 1,137 | 125 | 11.0 | ||||||||||||
Subordinated debt | 2,010 | 489 | 1,521 | 310.8 | ||||||||||||
Insurance liabilities | 2,064 | 1,463 | 601 | 41.1 | ||||||||||||
Due to credit institutions* | 7,448 | 23,782 | (16,334 | ) | (68.7 | ) | ||||||||||
Other liabilities | 9,552 | 8,365 | 1,187 | 14.2 | ||||||||||||
Shareholders’ equity | 3,962 | 3,547 | 415 | 11.7 | ||||||||||||
Other customer funds under management | 24,407 | 15,820 | 8,587 | 54.3 | ||||||||||||
Mutual funds | 23,384 | 15,077 | 8,308 | 55.1 | ||||||||||||
Pension funds | — | — | — | — | ||||||||||||
Managed portfolios | 1,023 | 743 | 279 | 37.6 | ||||||||||||
Savings-insurance policies | — | — | — | — | ||||||||||||
Customer funds under management | 52,034 | 31,431 | 20,603 | 65.5 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 562 | 566 | 576 | 629 | 689 | |||||||||||||||
Income from companies accounted for by the equity method | 1 | 1 | (0 | ) | 0 | 0 | ||||||||||||||
Net fees | 287 | 292 | 303 | 374 | 369 | |||||||||||||||
Insurance activity | 10 | 20 | 17 | 24 | 28 | |||||||||||||||
Commercial revenue | 860 | 878 | 897 | 1,028 | 1,085 | |||||||||||||||
Gains (losses) on financial transactions | 107 | 111 | 202 | 128 | 175 | |||||||||||||||
Gross operating income | 967 | 989 | 1,099 | 1,156 | 1,260 | |||||||||||||||
Income from non-financial services (net) and other operating income | 4 | 6 | 9 | (27 | ) | (3 | ) | |||||||||||||
Operating expenses | (478 | ) | (497 | ) | (525 | ) | (538 | ) | (541 | ) | ||||||||||
General administrative expenses | (444 | ) | (462 | ) | (491 | ) | (496 | ) | (500 | ) | ||||||||||
Personnel | (236 | ) | (244 | ) | (248 | ) | (256 | ) | (251 | ) | ||||||||||
Other administrative expenses | (208 | ) | (218 | ) | (244 | ) | (241 | ) | (248 | ) | ||||||||||
Depreciation and amortisation | (34 | ) | (34 | ) | (34 | ) | (42 | ) | (41 | ) | ||||||||||
Net operating income | 492 | 498 | 583 | 591 | 717 | |||||||||||||||
Net loan loss provisions | (123 | ) | (147 | ) | (100 | ) | (182 | ) | (228 | ) | ||||||||||
Other income | (0 | ) | (84 | ) | (69 | ) | (114 | ) | (27 | ) | ||||||||||
Profit before taxes (w/o capital gains) | 369 | 267 | 414 | 296 | 461 | |||||||||||||||
Tax on profit | (127 | ) | (66 | ) | (102 | ) | (97 | ) | (162 | ) | ||||||||||
Net profit from ordinary activity | 242 | 201 | 313 | 199 | 299 | |||||||||||||||
Net profit from discontinued operations | — | — | — | — | — | |||||||||||||||
Net consolidated profit (w/o capital gains) | 242 | 201 | 313 | 199 | 299 | |||||||||||||||
Minority interests | 4 | 3 | 4 | 3 | 5 | |||||||||||||||
Attributable profit to the Group (w/o capital gains) | 238 | 198 | 309 | 196 | 294 | |||||||||||||||
Net extraordinary gains and allowances | — | — | — | — | — | |||||||||||||||
Attributable profit to the Group | 238 | 198 | 309 | 196 | 294 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Balance sheet | ||||||||||||||||||||
Loans and credits* | 13,570 | 14,266 | 15,119 | 18,425 | 19,463 | |||||||||||||||
Trading portfolio (w/o loans) | 10,137 | 7,318 | 7,594 | 11,765 | 9,396 | |||||||||||||||
Available-for-sale financial assets | 7,634 | 7,438 | 6,496 | 8,370 | 3,606 | |||||||||||||||
Due from credit institutions* | 9,690 | 9,742 | 5,346 | 3,450 | 3,230 | |||||||||||||||
Intangible assets and property and equipment | 458 | 478 | 716 | 856 | 884 | |||||||||||||||
Other assets | 11,278 | 8,742 | 9,212 | 9,579 | 14,074 | |||||||||||||||
Total assets/liabilities & shareholders’ equity | 52,768 | 47,984 | 44,484 | 52,445 | 50,653 | |||||||||||||||
Customer deposits* | 13,985 | 14,294 | 20,081 | 22,760 | 24,355 | |||||||||||||||
Marketable debt securities* | 1,137 | 1,345 | 1,091 | 1,076 | 1,262 | |||||||||||||||
Subordinated debt | 489 | 1,190 | 1,415 | 1,883 | 2,010 | |||||||||||||||
Insurance liabilities | 1,463 | 1,534 | 1,614 | 1,853 | 2,064 | |||||||||||||||
Due to credit institutions* | 23,782 | 17,504 | 7,993 | 11,250 | 7,448 | |||||||||||||||
Other liabilities | 8,365 | 8,826 | 9,071 | 10,424 | 9,552 | |||||||||||||||
Shareholders’ equity | 3,547 | 3,291 | 3,219 | 3,198 | 3,962 | |||||||||||||||
Other customer funds under management | 15,820 | 17,005 | 17,835 | 19,326 | 24,407 | |||||||||||||||
Mutual funds | 15,077 | 16,220 | 17,031 | 18,423 | 23,384 | |||||||||||||||
Pension funds | — | — | — | — | — | |||||||||||||||
Managed portfolios | 743 | 784 | 803 | 903 | 1,023 | |||||||||||||||
Savings-insurance policies | — | — | — | — | — | |||||||||||||||
Customer funds under management | 31,431 | 33,833 | 40,421 | 45,045 | 52,034 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 1,451 | 1,231 | 220 | 17.8 | ||||||||||||
Income from companies accounted for by the equity method | 1 | 2 | (1 | ) | (57.9 | ) | ||||||||||
Net fees | 777 | 630 | 147 | 23.3 | ||||||||||||
Insurance activity | 58 | 22 | 37 | 167.0 | ||||||||||||
Commercial revenue | 2,287 | 1,885 | 402 | 21.3 | ||||||||||||
Gains (losses) on financial transactions | 368 | 234 | 133 | 56.9 | ||||||||||||
Gross operating income | 2,654 | 2,119 | 535 | 25.2 | ||||||||||||
Income from non-financial services (net) and other operating income | (6 | ) | 8 | (14 | ) | — | ||||||||||
Operating expenses | (1,139 | ) | (1,049 | ) | (90 | ) | 8.6 | |||||||||
General administrative expenses | (1,053 | ) | (974 | ) | (80 | ) | 8.2 | |||||||||
Personnel | (530 | ) | (518 | ) | (12 | ) | 2.3 | |||||||||
Other administrative expenses | (523 | ) | (456 | ) | (68 | ) | 14.9 | |||||||||
Depreciation and amortisation | (86 | ) | (75 | ) | (11 | ) | 14.4 | |||||||||
Net operating income | 1,510 | 1,079 | 431 | 39.9 | ||||||||||||
Net loan loss provisions | (481 | ) | (269 | ) | (212 | ) | 78.7 | |||||||||
Other income | (56 | ) | (0 | ) | (56 | ) | — | |||||||||
Profit before taxes | 972 | 810 | 162 | 20.1 | ||||||||||||
Tax on profit | (342 | ) | (279 | ) | (63 | ) | 22.4 | |||||||||
Net profit from ordinary activity | 630 | 531 | 100 | 18.8 | ||||||||||||
Net profit from discontinued operations | — | — | — | — | ||||||||||||
Net consolidated profit | 630 | 531 | 100 | 18.8 | ||||||||||||
Minority interests | 10 | 9 | 1 | 17.3 | ||||||||||||
Attributable profit to the Group | 620 | 522 | 98 | 18.8 |
Variation | ||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | |||||||||||||
Balance sheet | ||||||||||||||||
Loans and credits* | 39,422 | 29,664 | 9,758 | 32.9 | ||||||||||||
Trading portfolio (w/o loans) | 19,032 | 22,161 | (3,128 | ) | (14.1 | ) | ||||||||||
Available-for-sale financial assets | 7,304 | 16,688 | (9,384 | ) | (56.2 | ) | ||||||||||
Due from credit institutions* | 6,542 | 21,182 | (14,639 | ) | (69.1 | ) | ||||||||||
Intangible assets and property and equipment | 1,792 | 1,002 | 790 | 78.8 | ||||||||||||
Other assets | 28,506 | 24,654 | 3,852 | 15.6 | ||||||||||||
Total assets/liabilities & shareholders’ equity | 102,598 | 115,350 | (12,753 | ) | (11.1 | ) | ||||||||||
Customer deposits* | 49,332 | 30,571 | 18,760 | 61.4 | ||||||||||||
Marketable debt securities* | 2,556 | 2,486 | 70 | 2.8 | ||||||||||||
Subordinated debt | 4,072 | 1,070 | 3,002 | 280.6 | ||||||||||||
Insurance liabilities | 4,181 | 3,198 | 982 | 30.7 | ||||||||||||
Due to credit institutions* | 15,085 | 51,987 | (36,901 | ) | (71.0 | ) | ||||||||||
Other liabilities | 19,347 | 18,285 | 1,062 | 5.8 | ||||||||||||
Shareholders’ equity | 8,025 | 7,754 | 272 | 3.5 | ||||||||||||
Other customer funds under management | 49,436 | 34,582 | 14,854 | 43.0 | ||||||||||||
Mutual funds | 47,365 | 32,957 | 14,407 | 43.7 | ||||||||||||
Pension funds | — | — | — | — | ||||||||||||
Managed portfolios | 2,071 | 1,625 | 446 | 27.5 | ||||||||||||
Savings-insurance policies | — | — | — | — | ||||||||||||
Customer funds under management | 105,396 | 68,709 | 36,687 | 53.4 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 1,231 | 1,237 | 1,251 | 1,357 | 1,451 | |||||||||||||||
Income from companies accounted for by the equity method | 2 | 1 | (0 | ) | 1 | 1 | ||||||||||||||
Net fees | 630 | 638 | 658 | 807 | 777 | |||||||||||||||
Insurance activity | 22 | 44 | 38 | 53 | 58 | |||||||||||||||
Commercial revenue | 1,885 | 1,920 | 1,946 | 2,217 | 2,287 | |||||||||||||||
Gains (losses) on financial transactions | 234 | 243 | 440 | 276 | 368 | |||||||||||||||
Gross operating income | 2,119 | 2,163 | 2,387 | 2,493 | 2,654 | |||||||||||||||
Income from non-financial services (net) and other operating income | 8 | 13 | 21 | (60 | ) | (6 | ) | |||||||||||||
Operating expenses | (1,049 | ) | (1,086 | ) | (1,140 | ) | (1,160 | ) | (1,139 | ) | ||||||||||
General administrative expenses | (974 | ) | (1,011 | ) | (1,066 | ) | (1,070 | ) | (1,053 | ) | ||||||||||
Personnel | (518 | ) | (534 | ) | (537 | ) | (551 | ) | (530 | ) | ||||||||||
Other administrative expenses | (456 | ) | (477 | ) | (529 | ) | (519 | ) | (523 | ) | ||||||||||
Depreciation and amortisation | (75 | ) | (75 | ) | (74 | ) | (90 | ) | (86 | ) | ||||||||||
Net operating income | 1,079 | 1,090 | 1,267 | 1,274 | 1,510 | |||||||||||||||
Net loan loss provisions | (269 | ) | (321 | ) | (217 | ) | (392 | ) | (481 | ) | ||||||||||
Other income | (0 | ) | (185 | ) | (149 | ) | (246 | ) | (56 | ) | ||||||||||
Profit before taxes (w/o capital gains) | 810 | 585 | 900 | 636 | 972 | |||||||||||||||
Tax on profit | (279 | ) | (144 | ) | (221 | ) | (208 | ) | (342 | ) | ||||||||||
Net profit from ordinary activity | 531 | 440 | 679 | 427 | 630 | |||||||||||||||
Net profit from discontinued operations | — | — | — | — | — | |||||||||||||||
Net consolidated profit (w/o capital gains) | 531 | 440 | 679 | 427 | 630 | |||||||||||||||
Minority interests | 9 | 6 | 8 | 6 | 10 | |||||||||||||||
Attributable profit to the Group (w/o capital gains) | 522 | 434 | 671 | 421 | 620 | |||||||||||||||
Net extraordinary gains and allowances | — | — | — | — | — | |||||||||||||||
Attributable profit to the Group | 522 | 434 | 671 | 421 | 620 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Balance sheet | ||||||||||||||||||||
Loans and credits* | 29,664 | 30,858 | 32,862 | 39,337 | 39,422 | |||||||||||||||
Trading portfolio (w/o loans) | 22,161 | 15,828 | 16,506 | 25,118 | 19,032 | |||||||||||||||
Available-for-sale financial assets | 16,688 | 16,089 | 14,120 | 17,871 | 7,304 | |||||||||||||||
Due from credit institutions* | 21,182 | 21,071 | 11,620 | 7,365 | 6,542 | |||||||||||||||
Intangible assets and property and equipment | 1,002 | 1,034 | 1,556 | 1,827 | 1,792 | |||||||||||||||
Other assets | 24,654 | 18,908 | 20,022 | 20,452 | 28,506 | |||||||||||||||
Total assets/liabilities & shareholders’ equity | 115,350 | 103,789 | 96,686 | 111,969 | 102,598 | |||||||||||||||
Customer deposits* | 30,571 | 30,919 | 43,646 | 48,593 | 49,332 | |||||||||||||||
Marketable debt securities* | 2,486 | 2,909 | 2,370 | 2,297 | 2,556 | |||||||||||||||
Subordinated debt | 1,070 | 2,573 | 3,075 | 4,021 | 4,072 | |||||||||||||||
Insurance liabilities | 3,198 | 3,318 | 3,509 | 3,957 | 4,181 | |||||||||||||||
Due to credit institutions* | 51,987 | 37,862 | 17,373 | 24,019 | 15,085 | |||||||||||||||
Other liabilities | 18,285 | 19,091 | 19,715 | 22,255 | 19,347 | |||||||||||||||
Shareholders’ equity | 7,754 | 7,118 | 6,998 | 6,827 | 8,025 | |||||||||||||||
Other customer funds under management | 34,582 | 36,781 | 38,764 | 41,261 | 49,436 | |||||||||||||||
Mutual funds | 32,957 | 35,084 | 37,018 | 39,332 | 47,365 | |||||||||||||||
Pension funds | — | — | — | — | — | |||||||||||||||
Managed portfolios | 1,625 | 1,697 | 1,746 | 1,928 | 2,071 | |||||||||||||||
Savings-insurance policies | — | — | — | — | — | |||||||||||||||
Customer funds under management | 68,709 | 73,182 | 87,856 | 96,172 | 105,396 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 457 | 342 | 115 | 33.6 | ||||||||||||
Income from companies accounted for by the equity method | 0 | — | 0 | — | ||||||||||||
Net fees | 140 | 139 | 1 | 1.0 | ||||||||||||
Insurance activity | 10 | 6 | 4 | 63.7 | ||||||||||||
Commercial revenue | 607 | 487 | 120 | 24.7 | ||||||||||||
Gains (losses) on financial transactions | 8 | 26 | (18 | ) | (69.7 | ) | ||||||||||
Gross operating income | 615 | 512 | 102 | 20.0 | ||||||||||||
Income from non-financial services (net) and other operating income | (20 | ) | (17 | ) | (2 | ) | 13.3 | |||||||||
Operating expenses | (231 | ) | (228 | ) | (3 | ) | 1.3 | |||||||||
General administrative expenses | (212 | ) | (211 | ) | (1 | ) | 0.5 | |||||||||
Personnel | (111 | ) | (108 | ) | (4 | ) | 3.3 | |||||||||
Other administrative expenses | (101 | ) | (103 | ) | 2 | (2.4 | ) | |||||||||
Depreciation and amortisation | (19 | ) | (17 | ) | (2 | ) | 11.2 | |||||||||
Net operating income | 364 | 267 | 97 | 36.3 | ||||||||||||
Net loan loss provisions | (90 | ) | (30 | ) | (60 | ) | 201.4 | |||||||||
Other income | (3 | ) | (12 | ) | 9 | (78.7 | ) | |||||||||
Profit before taxes | 271 | 225 | 46 | 20.5 | ||||||||||||
Tax on profit | (66 | ) | (37 | ) | (29 | ) | 76.8 | |||||||||
Net profit from ordinary activity | 206 | 188 | 18 | 9.4 | ||||||||||||
Net profit from discontinued operations | — | — | — | — | ||||||||||||
Net consolidated profit | 206 | 188 | 18 | 9.4 | ||||||||||||
Minority interests | 50 | 46 | 4 | 8.2 | ||||||||||||
Attributable profit to the Group | 156 | 142 | 14 | 9.8 |
Variation | ||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | |||||||||||||
Balance sheet | ||||||||||||||||
Loans and credits* | 13,750 | 13,153 | 597 | 4.5 | ||||||||||||
Trading portfolio (w/o loans) | 13,249 | 14,138 | (890 | ) | (6.3 | ) | ||||||||||
Available-for-sale financial assets | 6,406 | 4,399 | 2,007 | 45.6 | ||||||||||||
Due from credit institutions* | 5,524 | 7,897 | (2,373 | ) | (30.0 | ) | ||||||||||
Intangible assets and property and equipment | 365 | 315 | 50 | 15.8 | ||||||||||||
Other assets | 5,610 | 5,464 | 146 | 2.7 | ||||||||||||
Total assets/liabilities & shareholders’ equity | 44,904 | 45,368 | (464 | ) | (1.0 | ) | ||||||||||
Customer deposits* | 22,631 | 23,818 | (1,188 | ) | (5.0 | ) | ||||||||||
Marketable debt securities* | 996 | 2,742 | (1,746 | ) | (63.7 | ) | ||||||||||
Subordinated debt | 58 | 62 | (4 | ) | (6.8 | ) | ||||||||||
Insurance liabilities | 92 | 70 | 22 | 30.8 | ||||||||||||
Due to credit institutions* | 12,273 | 11,982 | 291 | 2.4 | ||||||||||||
Other liabilities | 6,800 | 4,327 | 2,473 | 57.1 | ||||||||||||
Shareholders’ equity | 2,054 | 2,366 | (311 | ) | (13.2 | ) | ||||||||||
Other customer funds under management | 12,403 | 10,942 | 1,461 | 13.3 | ||||||||||||
Mutual funds | 9,017 | 7,662 | 1,355 | 17.7 | ||||||||||||
Pension funds | 3,386 | 3,280 | 106 | 3.2 | ||||||||||||
Managed portfolios | — | — | — | — | ||||||||||||
Savings-insurance policies | — | — | — | — | ||||||||||||
Customer funds under management | 36,088 | 37,565 | (1,477 | ) | (3.9 | ) |
Ratios (%) and other data | ||||||||||||||||
ROE | 25.41 | 24.11 | 1.30 | p. | ||||||||||||
Efficiency ratio | 37.29 | 44.23 | (6.94 | p.) | ||||||||||||
NPL ratio | 0.83 | 0.69 | 0.14 | p. | ||||||||||||
NPL coverage | 241.35 | 335.91 | (94.56 | p.) | ||||||||||||
Number of employees (direct & indirect) | 17,283 | 14,116 | 3,167 | 22.4 | ||||||||||||
Number of branches | 1,038 | 1,012 | 26 | 2.6 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 342 | 345 | 417 | 454 | 457 | |||||||||||||||
Income from companies accounted for by the equity method | — | — | — | (0 | ) | 0 | ||||||||||||||
Net fees | 139 | 129 | 124 | 145 | 140 | |||||||||||||||
Insurance activity | 6 | 7 | 6 | 5 | 10 | |||||||||||||||
Commercial revenue | 487 | 480 | 547 | 604 | 607 | |||||||||||||||
Gains (losses) on financial transactions | 26 | (7 | ) | (41 | ) | 19 | 8 | |||||||||||||
Gross operating income | 512 | 473 | 506 | 623 | 615 | |||||||||||||||
Income from non-financial services (net) and other operating income | (17 | ) | (20 | ) | (18 | ) | (18 | ) | (20 | ) | ||||||||||
Operating expenses | (228 | ) | (211 | ) | (238 | ) | (267 | ) | (231 | ) | ||||||||||
General administrative expenses | (211 | ) | (195 | ) | (220 | ) | (247 | ) | (212 | ) | ||||||||||
Personnel | (108 | ) | (100 | ) | (106 | ) | (111 | ) | (111 | ) | ||||||||||
Other administrative expenses | (103 | ) | (96 | ) | (114 | ) | (136 | ) | (101 | ) | ||||||||||
Depreciation and amortisation | (17 | ) | (16 | ) | (18 | ) | (20 | ) | (19 | ) | ||||||||||
Net operating income | 267 | 242 | 250 | 338 | 364 | |||||||||||||||
Net loan loss provisions | (30 | ) | (39 | ) | (41 | ) | (97 | ) | (90 | ) | ||||||||||
Other income | (12 | ) | (1 | ) | (5 | ) | 21 | (3 | ) | |||||||||||
Profit before taxes (w/o capital gains) | 225 | 202 | 205 | 261 | 271 | |||||||||||||||
Tax on profit | (37 | ) | (25 | ) | (52 | ) | (85 | ) | (66 | ) | ||||||||||
Net profit from ordinary activity | 188 | 177 | 153 | 176 | 206 | |||||||||||||||
Net profit from discontinued operations | — | — | — | — | — | |||||||||||||||
Net consolidated profit (w/o capital gains) | 188 | 177 | 153 | 176 | 206 | |||||||||||||||
Minority interests | 46 | 42 | 38 | 40 | 50 | |||||||||||||||
Attributable profit to the Group (w/o capital gains) | 142 | 135 | 115 | 136 | 156 | |||||||||||||||
Net extraordinary gains and allowances | — | — | — | — | — | |||||||||||||||
Attributable profit to the Group | 142 | 135 | 115 | 136 | 156 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Balance sheet | ||||||||||||||||||||
Loans and credits* | 13,153 | 12,939 | 14,073 | 15,647 | 13,750 | |||||||||||||||
Trading portfolio (w/o loans) | 14,138 | 15,844 | 15,084 | 15,084 | 13,249 | |||||||||||||||
Available-for-sale financial assets | 4,399 | 5,616 | 6,944 | 6,686 | 6,406 | |||||||||||||||
Due from credit institutions* | 7,897 | 7,241 | 9,427 | 7,844 | 5,524 | |||||||||||||||
Intangible assets and property and equipment | 315 | 291 | 320 | 368 | 365 | |||||||||||||||
Other assets | 5,464 | 4,054 | 4,981 | 4,401 | 5,610 | |||||||||||||||
Total assets/liabilities & shareholders’ equity | 45,368 | 45,985 | 50,829 | 50,032 | 44,904 | |||||||||||||||
Customer deposits* | 23,818 | 23,172 | 23,944 | 23,416 | 22,631 | |||||||||||||||
Marketable debt securities* | 2,742 | 2,580 | 2,496 | 2,215 | 996 | |||||||||||||||
Subordinated debt | 62 | 60 | 61 | 57 | 58 | |||||||||||||||
Insurance liabilities | 70 | 70 | 81 | 88 | 92 | |||||||||||||||
Due to credit institutions* | 11,982 | 13,623 | 16,343 | 15,505 | 12,273 | |||||||||||||||
Other liabilities | 4,327 | 4,280 | 5,598 | 6,507 | 6,800 | |||||||||||||||
Shareholders’ equity | 2,366 | 2,200 | 2,307 | 2,244 | 2,054 | |||||||||||||||
Other customer funds under management | 10,942 | 10,120 | 11,583 | 11,689 | 12,403 | |||||||||||||||
Mutual funds | 7,662 | 7,138 | 8,375 | 8,395 | 9,017 | |||||||||||||||
Pension funds | 3,280 | 2,982 | 3,208 | 3,295 | 3,386 | |||||||||||||||
Managed portfolios | — | — | — | — | — | |||||||||||||||
Savings-insurance policies | — | — | �� | — | — | |||||||||||||||
Customer funds under management | 37,565 | 35,931 | 38,084 | 37,377 | 36,088 |
Other information | ||||||||||||||||||||
NPL ratio | 0.69 | 0.89 | 0.90 | 0.64 | 0.83 | |||||||||||||||
NPL coverage | 335.91 | 251.48 | 240.83 | 279.19 | 241.35 | |||||||||||||||
Risk-weighted assets | 13,017 | 12,778 | 15,196 | 15,850 | 15,965 | |||||||||||||||
Spread (Retail Banking) | 11.62 | 12.21 | 13.64 | 14.20 | 14.39 | |||||||||||||||
Spread loans | 8.13 | 9.05 | 10.34 | 10.72 | 10.84 | |||||||||||||||
Spread deposits | 3.49 | 3.16 | 3.30 | 3.48 | 3.55 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 599 | 411 | 188 | 45.7 | ||||||||||||
Income from companies accounted for by the equity method | 0 | — | 0 | — | ||||||||||||
Net fees | 184 | 167 | 17 | 10.1 | ||||||||||||
Insurance activity | 13 | 7 | 6 | 78.5 | ||||||||||||
Commercial revenue | 795 | 585 | 210 | 36.0 | ||||||||||||
Gains (losses) on financial transactions | 10 | 31 | (21 | ) | (67.0 | ) | ||||||||||
Gross operating income | 805 | 616 | 190 | 30.8 | ||||||||||||
Income from non-financial services (net) and other operating income | (26 | ) | (21 | ) | (5 | ) | 23.6 | |||||||||
Operating expenses | (302 | ) | (273 | ) | (29 | ) | 10.5 | |||||||||
General administrative expenses | (278 | ) | (253 | ) | (24 | ) | 9.6 | |||||||||
Personnel | (146 | ) | (129 | ) | (16 | ) | 12.6 | |||||||||
Other administrative expenses | (132 | ) | (124 | ) | (8 | ) | 6.5 | |||||||||
Depreciation and amortisation | (24 | ) | (20 | ) | (4 | ) | 21.2 | |||||||||
Net operating income | 477 | 321 | 156 | 48.6 | ||||||||||||
Net loan loss provisions | (118 | ) | (36 | ) | (82 | ) | 228.6 | |||||||||
Other income | (3 | ) | (14 | ) | 11 | (76.7 | ) | |||||||||
Profit before taxes | 356 | 271 | 85 | 31.4 | ||||||||||||
Tax on profit | (86 | ) | (45 | ) | (41 | ) | 92.8 | |||||||||
Net profit from ordinary activity | 270 | 226 | 44 | 19.3 | ||||||||||||
Net profit from discontinued operations | — | — | — | — | ||||||||||||
Net consolidated profit | 270 | 226 | 44 | 19.3 | ||||||||||||
Minority interests | 66 | 56 | 10 | 18.0 | ||||||||||||
Attributable profit to the Group | 204 | 170 | 34 | 19.7 |
Variation | ||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | |||||||||||||
Balance sheet | ||||||||||||||||
Loans and credits* | 18,312 | 15,921 | 2,392 | 15.0 | ||||||||||||
Trading portfolio (w/o loans) | 17,644 | 17,113 | 531 | 3.1 | ||||||||||||
Available-for-sale financial assets | 8,532 | 5,325 | 3,206 | 60.2 | ||||||||||||
Due from credit institutions* | 7,357 | 9,559 | (2,202 | ) | (23.0 | ) | ||||||||||
Intangible assets and property and equipment | 487 | 382 | 105 | 27.5 | ||||||||||||
Other assets | 7,471 | 6,614 | 857 | 13.0 | ||||||||||||
Total assets/liabilities & shareholders’ equity | 59,803 | 54,913 | 4,890 | 8.9 | ||||||||||||
Customer deposits* | 30,140 | 28,830 | 1,310 | 4.5 | ||||||||||||
Marketable debt securities* | 1,327 | 3,319 | (1,992 | ) | (60.0 | ) | ||||||||||
Subordinated debt | 77 | 75 | 2 | 2.5 | ||||||||||||
Insurance liabilities | 122 | 85 | 37 | 43.9 | ||||||||||||
Due to credit institutions* | 16,345 | 14,503 | 1,842 | 12.7 | ||||||||||||
Other liabilities | 9,056 | 5,237 | 3,819 | 72.9 | ||||||||||||
Shareholders’ equity | 2,736 | 2,863 | (128 | ) | (4.5 | ) | ||||||||||
Other customer funds under management | 16,518 | 13,244 | 3,274 | 24.7 | ||||||||||||
Mutual funds | 12,009 | 9,275 | 2,734 | 29.5 | ||||||||||||
Pension funds | 4,509 | 3,970 | 539 | 13.6 | ||||||||||||
Managed portfolios | — | — | — | — | ||||||||||||
Savings-insurance policies | — | — | — | — | ||||||||||||
Customer funds under management | 48,062 | 45,469 | 2,594 | 5.7 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 411 | 432 | 529 | 580 | 599 | |||||||||||||||
Income from companies accounted for by the equity method | — | — | — | (0 | ) | 0 | ||||||||||||||
Net fees | 167 | 162 | 158 | 186 | 184 | |||||||||||||||
Insurance activity | 7 | 8 | 8 | 6 | 13 | |||||||||||||||
Commercial revenue | 585 | 603 | 694 | 772 | 795 | |||||||||||||||
Gains (losses) on financial transactions | 31 | (8 | ) | (51 | ) | 24 | 10 | |||||||||||||
Gross operating income | 616 | 595 | 644 | 796 | 805 | |||||||||||||||
Income from non-financial services (net) and other operating income | (21 | ) | (25 | ) | (22 | ) | (23 | ) | (26 | ) | ||||||||||
Operating expenses | (273 | ) | (265 | ) | (302 | ) | (341 | ) | (302 | ) | ||||||||||
General administrative expenses | (253 | ) | (246 | ) | (279 | ) | (316 | ) | (278 | ) | ||||||||||
Personnel | (129 | ) | (125 | ) | (135 | ) | (142 | ) | (146 | ) | ||||||||||
Other administrative expenses | (124 | ) | (120 | ) | (145 | ) | (174 | ) | (132 | ) | ||||||||||
Depreciation and amortisation | (20 | ) | (20 | ) | (23 | ) | (25 | ) | (24 | ) | ||||||||||
Net operating income | 321 | 304 | 319 | 431 | 477 | |||||||||||||||
Net loan loss provisions | (36 | ) | (48 | ) | (51 | ) | (123 | ) | (118 | ) | ||||||||||
Other income | (14 | ) | (1 | ) | (6 | ) | 26 | (3 | ) | |||||||||||
Profit before taxes (w/o capital gains) | 271 | 254 | 261 | 334 | 356 | |||||||||||||||
Tax on profit | (45 | ) | (32 | ) | (66 | ) | (108 | ) | (86 | ) | ||||||||||
Net profit from ordinary activity | 226 | 222 | 195 | 226 | 270 | |||||||||||||||
Net profit from discontinued operations | — | — | — | — | — | |||||||||||||||
Net consolidated profit (w/o capital gains) | 226 | 222 | 195 | 226 | 270 | |||||||||||||||
Minority interests | 56 | 53 | 48 | 52 | 66 | |||||||||||||||
Attributable profit to the Group (w/o capital gains) | 170 | 169 | 147 | 175 | 204 | |||||||||||||||
Net extraordinary gains and allowances | — | — | — | — | — | |||||||||||||||
Attributable profit to the Group | 170 | 169 | 147 | 175 | 204 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Balance sheet | ||||||||||||||||||||
Loans and credits* | 15,921 | 16,450 | 17,816 | 20,607 | 18,312 | |||||||||||||||
Trading portfolio (w/o loans) | 17,113 | 20,142 | 19,097 | 19,866 | 17,644 | |||||||||||||||
Available-for-sale financial assets | 5,325 | 7,139 | 8,791 | 8,806 | 8,532 | |||||||||||||||
Due from credit institutions* | 9,559 | 9,205 | 11,934 | 10,331 | 7,357 | |||||||||||||||
Intangible assets and property and equipment | 382 | 370 | 406 | 485 | 487 | |||||||||||||||
Other assets | 6,614 | 5,154 | 6,305 | 5,797 | 7,471 | |||||||||||||||
Total assets/liabilities & shareholders’ equity | 54,913 | 58,461 | 64,349 | 65,892 | 59,803 | |||||||||||||||
Customer deposits* | 28,830 | 29,459 | 30,313 | 30,839 | 30,140 | |||||||||||||||
Marketable debt securities* | 3,319 | 3,280 | 3,160 | 2,917 | 1,327 | |||||||||||||||
Subordinated debt | 75 | 76 | 77 | 75 | 77 | |||||||||||||||
Insurance liabilities | 85 | 89 | 102 | 116 | 122 | |||||||||||||||
Due to credit institutions* | 14,503 | 17,319 | 20,690 | 20,420 | 16,345 | |||||||||||||||
Other liabilities | 5,237 | 5,442 | 7,087 | 8,570 | 9,056 | |||||||||||||||
Shareholders’ equity | 2,863 | 2,797 | 2,921 | 2,955 | 2,736 | |||||||||||||||
Other customer funds under management | 13,244 | 12,865 | 14,664 | 15,395 | 16,518 | |||||||||||||||
Mutual funds | 9,275 | 9,074 | 10,602 | 11,056 | 12,009 | |||||||||||||||
Pension funds | 3,970 | 3,791 | 4,062 | 4,339 | 4,509 | |||||||||||||||
Managed portfolios | — | — | — | — | — | |||||||||||||||
Savings-insurance policies | — | — | — | — | — | |||||||||||||||
Customer funds under management | 45,469 | 45,679 | 48,214 | 49,226 | 48,062 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 6,596 | 4,355 | 2,241 | 51.5 | ||||||||||||
Income from companies accounted for by the equity method | 0 | — | 0 | — | ||||||||||||
Net fees | 2,025 | 1,769 | 256 | 14.5 | ||||||||||||
Insurance activity | 139 | 75 | 64 | 85.6 | ||||||||||||
Commercial revenue | 8,761 | 6,199 | 2,562 | 41.3 | ||||||||||||
Gains (losses) on financial transactions | 112 | 327 | (214 | ) | (65.7 | ) | ||||||||||
Gross operating income | 8,873 | 6,525 | 2,347 | 36.0 | ||||||||||||
Income from non-financial services (net) and other operating income | (285 | ) | (222 | ) | (63 | ) | 28.5 | |||||||||
Operating expenses | (3,328 | ) | (2,899 | ) | (430 | ) | 14.8 | |||||||||
General administrative expenses | (3,059 | ) | (2,684 | ) | (374 | ) | 13.9 | |||||||||
Personnel | (1,607 | ) | (1,372 | ) | (234 | ) | 17.1 | |||||||||
Other administrative expenses | (1,452 | ) | (1,312 | ) | (140 | ) | 10.7 | |||||||||
Depreciation and amortisation | (270 | ) | (214 | ) | (56 | ) | 26.0 | |||||||||
Net operating income | 5,259 | 3,405 | 1,854 | 54.5 | ||||||||||||
Net loan loss provisions | (1,302 | ) | (381 | ) | (921 | ) | 241.6 | |||||||||
Other income | (37 | ) | (153 | ) | 116 | (75.8 | ) | |||||||||
Profit before taxes | 3,920 | 2,870 | 1,050 | 36.6 | ||||||||||||
Tax on profit | (949 | ) | (473 | ) | (475 | ) | 100.4 | |||||||||
Net profit from ordinary activity | 2,971 | 2,397 | 575 | 24.0 | ||||||||||||
Net profit from discontinued operations | — | — | — | — | ||||||||||||
Net consolidated profit | 2,971 | 2,397 | 575 | 24.0 | ||||||||||||
Minority interests | 725 | 591 | 134 | 22.6 | ||||||||||||
Attributable profit to the Group | 2,246 | 1,805 | 441 | 24.4 |
Variation | ||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | |||||||||||||
Balance sheet | ||||||||||||||||
Loans and credits* | 201,272 | 174,052 | 27,220 | 15.6 | ||||||||||||
Trading portfolio (w/o loans) | 193,929 | 187,089 | 6,841 | 3.7 | ||||||||||||
Available-for-sale financial assets | 93,771 | 58,217 | 35,554 | 61.1 | ||||||||||||
Due from credit institutions* | 80,860 | 104,498 | (23,639 | ) | (22.6 | ) | ||||||||||
Intangible assets and property and equipment | 5,347 | 4,173 | 1,174 | 28.1 | ||||||||||||
Other assets | 82,116 | 72,307 | 9,809 | 13.6 | ||||||||||||
Total assets/liabilities & shareholders’ equity | 657,295 | 600,335 | 56,959 | 9.5 | ||||||||||||
Customer deposits* | 331,266 | 315,181 | 16,085 | 5.1 | ||||||||||||
Marketable debt securities* | 14,584 | 36,284 | (21,700 | ) | (59.8 | ) | ||||||||||
Subordinated debt | 849 | 824 | 25 | 3.0 | ||||||||||||
Insurance liabilities | 1,344 | 929 | 415 | 44.7 | ||||||||||||
Due to credit institutions* | 179,648 | 158,555 | 21,093 | 13.3 | ||||||||||||
Other liabilities | 99,535 | 57,257 | 42,277 | 73.8 | ||||||||||||
Shareholders’ equity | 30,070 | 31,305 | (1,235 | ) | (3.9 | ) | ||||||||||
Other customer funds under management | 181,552 | 144,795 | 36,757 | 25.4 | ||||||||||||
Mutual funds | 131,990 | 101,394 | 30,596 | 30.2 | ||||||||||||
Pension funds | 49,562 | 43,401 | 6,161 | 14.2 | ||||||||||||
Managed portfolios | — | — | — | — | ||||||||||||
Savings-insurance policies | — | — | — | — | ||||||||||||
Customer funds under management | 528,251 | 497,084 | 31,167 | 6.3 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 4,355 | 4,813 | 5,780 | 6,319 | 6,596 | |||||||||||||||
Income from companies accounted for by the equity method | — | — | — | (0 | ) | 0 | ||||||||||||||
Net fees | 1,769 | 1,807 | 1,725 | 2,023 | 2,025 | |||||||||||||||
Insurance activity | 75 | 91 | 87 | 68 | 139 | |||||||||||||||
Commercial revenue | 6,199 | 6,711 | 7,591 | 8,411 | 8,761 | |||||||||||||||
Gains (losses) on financial transactions | 327 | (80 | ) | (550 | ) | 258 | 112 | |||||||||||||
Gross operating income | 6,525 | 6,631 | 7,041 | 8,669 | 8,873 | |||||||||||||||
Income from non-financial services (net) and other operating income | (222 | ) | (277 | ) | (246 | ) | (256 | ) | (285 | ) | ||||||||||
Operating expenses | (2,899 | ) | (2,959 | ) | (3,307 | ) | (3,716 | ) | �� | (3,328 | ) | |||||||||
General administrative expenses | (2,684 | ) | (2,740 | ) | (3,056 | ) | (3,439 | ) | (3,059 | ) | ||||||||||
Personnel | (1,372 | ) | (1,398 | ) | (1,476 | ) | (1,545 | ) | (1,607 | ) | ||||||||||
Other administrative expenses | (1,312 | ) | (1,342 | ) | (1,580 | ) | (1,894 | ) | (1,452 | ) | ||||||||||
Depreciation and amortisation | (214 | ) | (219 | ) | (251 | ) | (277 | ) | (270 | ) | ||||||||||
Net operating income | 3,405 | 3,395 | 3,488 | 4,697 | 5,259 | |||||||||||||||
Net loan loss provisions | (381 | ) | (536 | ) | (562 | ) | (1,344 | ) | (1,302 | ) | ||||||||||
Other income | (153 | ) | (19 | ) | (65 | ) | 284 | (37 | ) | |||||||||||
Profit before taxes (w/o capital gains) | 2,870 | 2,839 | 2,861 | 3,638 | 3,920 | |||||||||||||||
Tax on profit | (473 | ) | (363 | ) | (721 | ) | (1,175 | ) | (949 | ) | ||||||||||
Net profit from ordinary activity | 2,397 | 2,477 | 2,140 | 2,463 | 2,971 | |||||||||||||||
Net profit from discontinued operations | — | — | — | — | — | |||||||||||||||
Net consolidated profit (w/o capital gains) | 2,397 | 2,477 | 2,140 | 2,463 | 2,971 | |||||||||||||||
Minority interests | 591 | 590 | 526 | 561 | 725 | |||||||||||||||
Attributable profit to the Group (w/o capital gains) | 1,805 | 1,887 | 1,614 | 1,901 | 2,246 | |||||||||||||||
Net extraordinary gains and allowances | — | — | — | — | — | |||||||||||||||
Attributable profit to the Group | 1,805 | 1,887 | 1,614 | 1,901 | 2,246 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Balance sheet | ||||||||||||||||||||
Loans and credits* | 174,052 | 185,463 | 195,797 | 223,569 | 201,272 | |||||||||||||||
Trading portfolio (w/o loans) | 187,089 | 227,090 | 209,872 | 215,522 | 193,929 | |||||||||||||||
Available-for-sale financial assets | 58,217 | 80,493 | 96,614 | 95,535 | 93,771 | |||||||||||||||
Due from credit institutions* | 104,498 | 103,785 | 131,156 | 112,081 | 80,860 | |||||||||||||||
Intangible assets and property and equipment | 4,173 | 4,175 | 4,459 | 5,265 | 5,347 | |||||||||||||||
Other assets | 72,307 | 58,113 | 69,296 | 62,889 | 82,116 | |||||||||||||||
Total assets/liabilities & shareholders’ equity | 600,335 | 659,119 | 707,193 | 714,861 | 657,295 | |||||||||||||||
Customer deposits* | 315,181 | 332,135 | 333,140 | 334,568 | 331,266 | |||||||||||||||
Marketable debt securities* | 36,284 | 36,976 | 34,727 | 31,648 | 14,584 | |||||||||||||||
Subordinated debt | 824 | 853 | 845 | 818 | 849 | |||||||||||||||
Insurance liabilities | 929 | 1,008 | 1,121 | 1,254 | 1,344 | |||||||||||||||
Due to credit institutions* | 158,555 | 195,265 | 227,380 | 221,539 | 179,648 | |||||||||||||||
Other liabilities | 57,257 | 61,352 | 77,883 | 92,973 | 99,535 | |||||||||||||||
Shareholders’ equity | 31,305 | 31,531 | 32,097 | 32,061 | 30,070 | |||||||||||||||
Other customer funds under management | 144,795 | 145,048 | 161,157 | 167,019 | 181,552 | |||||||||||||||
Mutual funds | 101,394 | 102,309 | 116,520 | 119,946 | 131,990 | |||||||||||||||
Pension funds | 43,401 | 42,738 | 44,637 | 47,072 | 49,562 | |||||||||||||||
Managed portfolios | — | — | — | — | — | |||||||||||||||
Savings-insurance policies | — | — | — | — | — | |||||||||||||||
Customer funds under management | 497,084 | 515,012 | 529,869 | 534,053 | 528,251 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 215 | 197 | 18 | 9.2 | ||||||||||||
Income from companies accounted for by the equity method | (0 | ) | 0 | (1 | ) | — | ||||||||||
Net fees | 91 | 86 | 5 | 5.9 | ||||||||||||
Insurance activity | 10 | 8 | 2 | 25.0 | ||||||||||||
Commercial revenue | 316 | 291 | 25 | 8.5 | ||||||||||||
Gains (losses) on financial transactions | 38 | 42 | (4 | ) | (9.8 | ) | ||||||||||
Gross operating income | 353 | 332 | 21 | 6.2 | ||||||||||||
Income from non-financial services (net) and other operating income | (5 | ) | (2 | ) | (3 | ) | 104.2 | |||||||||
Operating expenses | (138 | ) | (136 | ) | (2 | ) | 1.4 | |||||||||
General administrative expenses | (126 | ) | (123 | ) | (3 | ) | 2.0 | |||||||||
Personnel | (75 | ) | (74 | ) | (1 | ) | 1.7 | |||||||||
Other administrative expenses | (50 | ) | (49 | ) | (1 | ) | 2.6 | |||||||||
Depreciation and amortisation | (13 | ) | (13 | ) | 1 | (4.9 | ) | |||||||||
Net operating income | 210 | 194 | 16 | 8.4 | ||||||||||||
Net loan loss provisions | (31 | ) | (36 | ) | 4 | (12.6 | ) | |||||||||
Other income | 12 | (1 | ) | 13 | — | |||||||||||
Profit before taxes | 190 | 157 | 33 | 21.1 | ||||||||||||
Tax on profit | (31 | ) | (25 | ) | (6 | ) | 23.0 | |||||||||
Net profit from ordinary activity | 160 | 132 | 27 | 20.8 | ||||||||||||
Net profit from discontinued operations | — | — | — | — | ||||||||||||
Net consolidated profit | 160 | 132 | 27 | 20.8 | ||||||||||||
Minority interests | 29 | 19 | 10 | 56.2 | ||||||||||||
Attributable profit to the Group | 131 | 114 | 17 | 14.9 |
Variation | ||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | |||||||||||||
Balance sheet | ||||||||||||||||
Loans and credits* | 15,494 | 15,253 | 240 | 1.6 | ||||||||||||
Trading portfolio (w/o loans) | 1,426 | 990 | 436 | 44.1 | ||||||||||||
Available-for-sale financial assets | 711 | 1,210 | (499 | ) | (41.2 | ) | ||||||||||
Due from credit institutions* | 2,678 | 4,458 | (1,780 | ) | (39.9 | ) | ||||||||||
Intangible assets and property and equipment | 301 | 318 | (16 | ) | (5.2 | ) | ||||||||||
Other assets | 1,500 | 1,378 | 122 | 8.8 | ||||||||||||
Total assets/liabilities & shareholders’ equity | 22,110 | 23,606 | (1,496 | ) | (6.3 | ) | ||||||||||
Customer deposits* | 13,372 | 13,261 | 111 | 0.8 | ||||||||||||
Marketable debt securities* | 1,467 | 1,603 | (136 | ) | (8.5 | ) | ||||||||||
Subordinated debt | 690 | 610 | 80 | 13.1 | ||||||||||||
Insurance liabilities | 59 | 47 | 12 | 26.2 | ||||||||||||
Due to credit institutions* | 3,586 | 5,288 | (1,702 | ) | (32.2 | ) | ||||||||||
Other liabilities | 1,520 | 1,016 | 504 | 49.6 | ||||||||||||
Shareholders’ equity | 1,416 | 1,781 | (365 | ) | (20.5 | ) | ||||||||||
Other customer funds under management | 12,213 | 10,509 | 1,704 | 16.2 | ||||||||||||
Mutual funds | 3,811 | 2,941 | 870 | 29.6 | ||||||||||||
Pension funds | 8,402 | 7,568 | 834 | 11.0 | ||||||||||||
Managed portfolios | — | — | — | — | ||||||||||||
Savings-insurance policies | — | — | — | — | ||||||||||||
Customer funds under management | 27,742 | 25,983 | 1,759 | 6.8 |
Ratios (%) and other data | ||||||||||||||||
ROE | 37.07 | 26.20 | 10.87 | p. | ||||||||||||
Efficiency ratio | 39.15 | 41.01 | (1.86 | p.) | ||||||||||||
NPL ratio | 1.70 | 2.15 | (0.45 | p.) | ||||||||||||
NPL coverage | 147.57 | 165.07 | (17.50 | p.) | ||||||||||||
Number of employees (direct & indirect) | 13,331 | 11,249 | 2,082 | 18.5 | ||||||||||||
Number of branches | 442 | 410 | 32 | 7.8 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 197 | 264 | 256 | 194 | 215 | |||||||||||||||
Income from companies accounted for by the equity method | 0 | 0 | 0 | 0 | (0 | ) | ||||||||||||||
Net fees | 86 | 84 | 83 | 86 | 91 | |||||||||||||||
Insurance activity | 8 | 11 | 9 | 8 | 10 | |||||||||||||||
Commercial revenue | 291 | 359 | 348 | 289 | 316 | |||||||||||||||
Gains (losses) on financial transactions | 42 | 6 | 26 | 38 | 38 | |||||||||||||||
Gross operating income | 332 | 365 | 374 | 326 | 353 | |||||||||||||||
Income from non-financial services (net) and other operating income | (2 | ) | (4 | ) | (2 | ) | (3 | ) | (5 | ) | ||||||||||
Operating expenses | (136 | ) | (144 | ) | (143 | ) | (157 | ) | (138 | ) | ||||||||||
General administrative expenses | (123 | ) | (125 | ) | (134 | ) | (146 | ) | (126 | ) | ||||||||||
Personnel | (74 | ) | (80 | ) | (81 | ) | (97 | ) | (75 | ) | ||||||||||
Other administrative expenses | (49 | ) | (45 | ) | (54 | ) | (49 | ) | (50 | ) | ||||||||||
Depreciation and amortisation | (13 | ) | (19 | ) | (9 | ) | (11 | ) | (13 | ) | ||||||||||
Net operating income | 194 | 217 | 229 | 166 | 210 | |||||||||||||||
Net loan loss provisions | (36 | ) | (30 | ) | (23 | ) | (20 | ) | (31 | ) | ||||||||||
Other income | (1 | ) | (18 | ) | (29 | ) | 41 | 12 | ||||||||||||
Profit before taxes (w/o capital gains) | 157 | 169 | 177 | 186 | 190 | |||||||||||||||
Tax on profit | (25 | ) | (24 | ) | (34 | ) | (31 | ) | (31 | ) | ||||||||||
Net profit from ordinary activity | 132 | 145 | 142 | 155 | 160 | |||||||||||||||
Net profit from discontinued operations | — | — | — | — | — | |||||||||||||||
Net consolidated profit (w/o capital gains) | 132 | 145 | 142 | 155 | 160 | |||||||||||||||
Minority interests | 19 | 22 | 19 | 26 | 29 | |||||||||||||||
Attributable profit to the Group (w/o capital gains) | 114 | 123 | 123 | 129 | 131 | |||||||||||||||
Net extraordinary gains and allowances | — | — | — | — | — | |||||||||||||||
Attributable profit to the Group | 114 | 123 | 123 | 129 | 131 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Balance sheet | ||||||||||||||||||||
Loans and credits* | 15,253 | 14,902 | 15,223 | 15,107 | 15,494 | |||||||||||||||
Trading portfolio (w/o loans) | 990 | 1,076 | 1,426 | 1,507 | 1,426 | |||||||||||||||
Available-for-sale financial assets | 1,210 | 1,197 | 1,195 | 772 | 711 | |||||||||||||||
Due from credit institutions* | 4,458 | 3,656 | 3,253 | 3,151 | 2,678 | |||||||||||||||
Intangible assets and property and equipment | 318 | 286 | 303 | 319 | 301 | |||||||||||||||
Other assets | 1,378 | 1,828 | 1,749 | 2,139 | 1,500 | |||||||||||||||
Total assets/liabilities & shareholders’ equity | 23,606 | 22,945 | 23,150 | 22,995 | 22,110 | |||||||||||||||
Customer deposits* | 13,261 | 13,224 | 13,151 | 13,216 | 13,372 | |||||||||||||||
Marketable debt securities* | 1,603 | 1,618 | 1,611 | 1,536 | 1,467 | |||||||||||||||
Subordinated debt | 610 | 570 | 728 | 705 | 690 | |||||||||||||||
Insurance liabilities | 47 | 44 | 53 | 58 | 59 | |||||||||||||||
Due to credit institutions* | 5,288 | 5,177 | 4,376 | 4,158 | 3,586 | |||||||||||||||
Other liabilities | 1,016 | 916 | 1,770 | 2,019 | 1,520 | |||||||||||||||
Shareholders’ equity | 1,781 | 1,397 | 1,461 | 1,304 | 1,416 | |||||||||||||||
Other customer funds under management | 10,509 | 9,760 | 10,602 | 11,732 | 12,213 | |||||||||||||||
Mutual funds | 2,941 | 2,795 | 2,991 | 3,584 | 3,811 | |||||||||||||||
Pension funds | 7,568 | 6,965 | 7,611 | 8,148 | 8,402 | |||||||||||||||
Managed portfolios | — | — | — | — | — | |||||||||||||||
Savings-insurance policies | — | — | — | — | — | |||||||||||||||
Customer funds under management | 25,983 | 25,171 | 26,092 | 27,189 | 27,742 |
Other information | ||||||||||||||||||||
NPL ratio | 2.15 | 1.90 | 1.78 | 1.59 | 1.70 | |||||||||||||||
NPL coverage | 165.07 | 174.22 | 168.01 | 152.62 | 147.57 | |||||||||||||||
Risk-weighted assets | 14,403 | 13,232 | 14,112 | 13,873 | 14,876 | |||||||||||||||
Spread (Retail Banking) | 6.86 | 7.11 | 6.97 | 6.94 | 7.28 | |||||||||||||||
Spread loans | 5.07 | 5.07 | 4.95 | 4.91 | 5.08 | |||||||||||||||
Spread deposits | 1.79 | 2.04 | 2.02 | 2.03 | 2.20 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 281 | 236 | 45 | 19.1 | ||||||||||||
Income from companies accounted for by the equity method | (0 | ) | 0 | (1 | ) | — | ||||||||||
Net fees | 119 | 103 | 16 | 15.5 | ||||||||||||
Insurance activity | 14 | 10 | 4 | 36.4 | ||||||||||||
Commercial revenue | 414 | 350 | 64 | 18.3 | ||||||||||||
Gains (losses) on financial transactions | 49 | 50 | (1 | ) | (1.6 | ) | ||||||||||
Gross operating income | 463 | 400 | 63 | 15.8 | ||||||||||||
Income from non-financial services (net) and other operating income | (7 | ) | (3 | ) | (4 | ) | 122.7 | |||||||||
Operating expenses | (181 | ) | (164 | ) | (17 | ) | 10.5 | |||||||||
General administrative expenses | (165 | ) | (148 | ) | (17 | ) | 11.3 | |||||||||
Personnel | (99 | ) | (89 | ) | (10 | ) | 10.9 | |||||||||
Other administrative expenses | (66 | ) | (59 | ) | (7 | ) | 11.9 | |||||||||
Depreciation and amortisation | (16 | ) | (16 | ) | (1 | ) | 3.7 | |||||||||
Net operating income | 275 | 233 | 42 | 18.2 | ||||||||||||
Net loan loss provisions | (41 | ) | (43 | ) | 2 | (4.6 | ) | |||||||||
Other income | 16 | (1 | ) | 16 | — | |||||||||||
Profit before taxes | 250 | 189 | 61 | 32.1 | ||||||||||||
Tax on profit | (40 | ) | (30 | ) | (10 | ) | 34.1 | |||||||||
Net profit from ordinary activity | 210 | 159 | 50 | 31.7 | ||||||||||||
Net profit from discontinued operations | — | — | — | — | ||||||||||||
Net consolidated profit | 210 | 159 | 50 | 31.7 | ||||||||||||
Minority interests | 38 | 22 | 16 | 70.4 | ||||||||||||
Attributable profit to the Group | 171 | 137 | 35 | 25.3 |
Variation | ||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | |||||||||||||
Balance sheet | ||||||||||||||||
Loans and credits* | 20,634 | 18,462 | 2,172 | 11.8 | ||||||||||||
Trading portfolio (w/o loans) | 1,899 | 1,198 | 701 | 58.5 | ||||||||||||
Available-for-sale financial assets | 947 | 1,464 | (517 | ) | (35.3 | ) | ||||||||||
Due from credit institutions* | 3,567 | 5,396 | (1,829 | ) | (33.9 | ) | ||||||||||
Intangible assets and property and equipment | 401 | 385 | 17 | 4.3 | ||||||||||||
Other assets | 1,998 | 1,668 | 329 | 19.7 | ||||||||||||
Total assets/liabilities & shareholders’ equity | 29,446 | 28,573 | 873 | 3.1 | ||||||||||||
Customer deposits* | 17,808 | 16,051 | 1,757 | 10.9 | ||||||||||||
Marketable debt securities* | 1,954 | 1,940 | 14 | 0.7 | ||||||||||||
Subordinated debt | 919 | 738 | 180 | 24.4 | ||||||||||||
Insurance liabilities | 79 | 57 | 22 | 38.9 | ||||||||||||
Due to credit institutions* | 4,776 | 6,401 | (1,624 | ) | (25.4 | ) | ||||||||||
Other liabilities | 2,024 | 1,230 | 794 | 64.6 | ||||||||||||
Shareholders’ equity | 1,886 | 2,156 | (270 | ) | (12.5 | ) | ||||||||||
Other customer funds under management | 16,266 | 12,720 | 3,545 | 27.9 | ||||||||||||
Mutual funds | 5,076 | 3,560 | 1,516 | 42.6 | ||||||||||||
Pension funds | 11,190 | 9,160 | 2,030 | 22.2 | ||||||||||||
Managed portfolios | — | — | — | — | ||||||||||||
Savings-insurance policies | — | — | — | — | ||||||||||||
Customer funds under management | 36,947 | 31,450 | 5,497 | 17.5 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 236 | 329 | 325 | 251 | 281 | |||||||||||||||
Income from companies accounted for by the equity method | 0 | 1 | 0 | 0 | (0 | ) | ||||||||||||||
Net fees | 103 | 105 | 106 | 110 | 119 | |||||||||||||||
Insurance activity | 10 | 14 | 11 | 11 | 14 | |||||||||||||||
Commercial revenue | 350 | 449 | 442 | 372 | 414 | |||||||||||||||
Gains (losses) on financial transactions | 50 | 8 | 33 | 48 | 49 | |||||||||||||||
Gross operating income | 400 | 457 | 475 | 420 | 463 | |||||||||||||||
Income from non-financial services (net) and other operating income | (3 | ) | (5 | ) | (3 | ) | (4 | ) | (7 | ) | ||||||||||
Operating expenses | (164 | ) | (181 | ) | (182 | ) | (201 | ) | (181 | ) | ||||||||||
General administrative expenses | (148 | ) | (157 | ) | (171 | ) | (187 | ) | (165 | ) | ||||||||||
Personnel | (89 | ) | (100 | ) | (102 | ) | (124 | ) | (99 | ) | ||||||||||
Other administrative expenses | (59 | ) | (57 | ) | (68 | ) | (63 | ) | (66 | ) | ||||||||||
Depreciation and amortisation | (16 | ) | (23 | ) | (11 | ) | (14 | ) | (16 | ) | ||||||||||
Net operating income | 233 | 272 | 290 | 215 | 275 | |||||||||||||||
Net loan loss provisions | (43 | ) | (38 | ) | (30 | ) | (26 | ) | (41 | ) | ||||||||||
Other income | (1 | ) | (22 | ) | (36 | ) | 51 | 16 | ||||||||||||
Profit before taxes (w/o capital gains) | 189 | 212 | 224 | 239 | 250 | |||||||||||||||
Tax on profit | (30 | ) | (31 | ) | (43 | ) | (40 | ) | (40 | ) | ||||||||||
Net profit from ordinary activity | 159 | 181 | 181 | 199 | 210 | |||||||||||||||
Net profit from discontinued operations | — | — | — | — | — | |||||||||||||||
Net consolidated profit (w/o capital gains) | 159 | 181 | 181 | 199 | 210 | |||||||||||||||
Minority interests | 22 | 27 | 24 | 34 | 38 | |||||||||||||||
Attributable profit to the Group (w/o capital gains) | 137 | 154 | 157 | 166 | 171 | |||||||||||||||
Net extraordinary gains and allowances | — | — | — | — | — | |||||||||||||||
Attributable profit to the Group | 137 | 154 | 157 | 166 | 171 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Balance sheet | ||||||||||||||||||||
Loans and credits* | 18,462 | 18,945 | 19,272 | 19,896 | 20,634 | |||||||||||||||
Trading portfolio (w/o loans) | 1,198 | 1,368 | 1,805 | 1,985 | 1,899 | |||||||||||||||
Available-for-sale financial assets | 1,464 | 1,521 | 1,513 | 1,017 | 947 | |||||||||||||||
Due from credit institutions* | 5,396 | 4,648 | 4,119 | 4,150 | 3,567 | |||||||||||||||
Intangible assets and property and equipment | 385 | 363 | 383 | 420 | 401 | |||||||||||||||
Other assets | 1,668 | 2,324 | 2,215 | 2,816 | 1,998 | |||||||||||||||
Total assets/liabilities & shareholders’ equity | 28,573 | 29,170 | 29,307 | 30,284 | 29,446 | |||||||||||||||
Customer deposits* | 16,051 | 16,812 | 16,650 | 17,406 | 17,808 | |||||||||||||||
Marketable debt securities* | 1,940 | 2,056 | 2,039 | 2,023 | 1,954 | |||||||||||||||
Subordinated debt | 738 | 724 | 922 | 928 | 919 | |||||||||||||||
Insurance liabilities | 57 | 56 | 68 | 76 | 79 | |||||||||||||||
Due to credit institutions* | 6,401 | 6,581 | 5,539 | 5,476 | 4,776 | |||||||||||||||
Other liabilities | 1,230 | 1,164 | 2,241 | 2,659 | 2,024 | |||||||||||||||
Shareholders’ equity | 2,156 | 1,776 | 1,849 | 1,717 | 1,886 | |||||||||||||||
Other customer funds under management | 12,720 | 12,407 | 13,422 | 15,451 | 16,266 | |||||||||||||||
Mutual funds | 3,560 | 3,553 | 3,787 | 4,720 | 5,076 | |||||||||||||||
Pension funds | 9,160 | 8,854 | 9,635 | 10,731 | 11,190 | |||||||||||||||
Managed portfolios | — | — | — | — | — | |||||||||||||||
Savings-insurance policies | — | — | — | — | — | |||||||||||||||
Customer funds under management | 31,450 | 32,000 | 33,032 | 35,808 | 36,947 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 152,123 | 124,389 | 27,734 | 22.3 | ||||||||||||
Income from companies accounted for by the equity method | (168 | ) | 236 | (404 | ) | — | ||||||||||
Net fees | 64,167 | 54,134 | 10,033 | 18.5 | ||||||||||||
Insurance activity | 7,371 | 5,266 | 2,105 | 40.0 | ||||||||||||
Commercial revenue | 223,493 | 184,025 | 39,468 | 21.4 | ||||||||||||
Gains (losses) on financial transactions | 26,587 | 26,326 | 261 | 1.0 | ||||||||||||
Gross operating income | 250,080 | 210,351 | 39,729 | 18.9 | ||||||||||||
Income from non-financial services (net) and other operating income | (3,567 | ) | (1,560 | ) | (2,007 | ) | 128.6 | |||||||||
Operating expenses | (97,905 | ) | (86,275 | ) | (11,630 | ) | 13.5 | |||||||||
General administrative expenses | (89,031 | ) | (77,937 | ) | (11,094 | ) | 14.2 | |||||||||
Personnel | (53,366 | ) | (46,884 | ) | (6,482 | ) | 13.8 | |||||||||
Other administrative expenses | (35,665 | ) | (31,053 | ) | (4,612 | ) | 14.9 | |||||||||
Depreciation and amortisation | (8,874 | ) | (8,338 | ) | (536 | ) | 6.4 | |||||||||
Net operating income | 148,608 | 122,515 | 26,092 | 21.3 | ||||||||||||
Net loan loss provisions | (22,184 | ) | (22,664 | ) | 480 | (2.1 | ) | |||||||||
Other income | 8,476 | (341 | ) | 8,817 | — | |||||||||||
Profit before taxes | 134,899 | 99,510 | 35,389 | 35.6 | ||||||||||||
Tax on profit | (21,660 | ) | (15,737 | ) | (5,923 | ) | 37.6 | |||||||||
Net profit from ordinary activity | 113,238 | 83,773 | 29,465 | 35.2 | ||||||||||||
Net profit from discontinued operations | — | — | — | — | ||||||||||||
Net consolidated profit | 113,238 | 83,773 | 29,465 | 35.2 | ||||||||||||
Minority interests | 20,648 | 11,806 | 8,842 | 74.9 | ||||||||||||
Attributable profit to the Group | 92,591 | 71,967 | 20,623 | 28.7 |
Variation | ||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | |||||||||||||
Balance sheet | ||||||||||||||||
Loans and credits* | 11,097,171 | 9,720,491 | 1,376,680 | 14.2 | ||||||||||||
Trading portfolio (w/o loans) | 1,021,312 | 630,682 | 390,631 | 61.9 | ||||||||||||
Available-for-sale financial assets | 509,351 | 770,924 | (261,574 | ) | (33.9 | ) | ||||||||||
Due from credit institutions* | 1,918,147 | 2,840,775 | (922,628 | ) | (32.5 | ) | ||||||||||
Intangible assets and property and equipment | 215,860 | 202,540 | 13,320 | 6.6 | ||||||||||||
Other assets | 1,074,337 | 878,377 | 195,960 | 22.3 | ||||||||||||
Total assets/liabilities & shareholders’ equity | 15,836,178 | 15,043,789 | 792,389 | 5.3 | ||||||||||||
Customer deposits* | 9,577,402 | 8,450,860 | 1,126,542 | 13.3 | ||||||||||||
Marketable debt securities* | 1,050,837 | 1,021,467 | 29,369 | 2.9 | ||||||||||||
Subordinated debt | 494,009 | 388,742 | 105,267 | 27.1 | ||||||||||||
Insurance liabilities | 42,437 | 29,914 | 12,523 | 41.9 | ||||||||||||
Due to credit institutions* | 2,568,721 | 3,369,997 | (801,276 | ) | (23.8 | ) | ||||||||||
Other liabilities | 1,088,713 | 647,682 | 441,031 | 68.1 | ||||||||||||
Shareholders’ equity | 1,014,060 | 1,135,127 | (121,068 | ) | (10.7 | ) | ||||||||||
Other customer funds under management | 8,747,604 | 6,697,175 | 2,050,429 | 30.6 | ||||||||||||
Mutual funds | 2,729,828 | 1,874,516 | 855,312 | 45.6 | ||||||||||||
Pension funds | 6,017,776 | 4,822,659 | 1,195,117 | 24.8 | ||||||||||||
Managed portfolios | — | — | — | — | ||||||||||||
Savings-insurance policies | — | — | — | — | ||||||||||||
Customer funds under management | 19,869,852 | 16,558,245 | 3,311,607 | 20.0 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 124,389 | 173,433 | 174,761 | 132,752 | 152,123 | |||||||||||||||
Income from companies accounted for by the equity method | 236 | 303 | 160 | 56 | (168 | ) | ||||||||||||||
Net fees | 54,134 | 55,560 | 56,851 | 58,306 | 64,167 | |||||||||||||||
Insurance activity | 5,266 | 7,271 | 6,047 | 5,752 | 7,371 | |||||||||||||||
Commercial revenue | 184,025 | 236,566 | 237,820 | 196,867 | 223,493 | |||||||||||||||
Gains (losses) on financial transactions | 26,326 | 4,354 | 17,628 | 25,380 | 26,587 | |||||||||||||||
Gross operating income | 210,351 | 240,920 | 255,448 | 222,247 | 250,080 | |||||||||||||||
Income from non-financial services (net) and other operating income | (1,560 | ) | (2,387 | ) | (1,406 | ) | (2,300 | ) | (3,567 | ) | ||||||||||
Operating expenses | (86,275 | ) | (95,318 | ) | (97,894 | ) | (106,457 | ) | (97,905 | ) | ||||||||||
General administrative expenses | (77,937 | ) | (82,940 | ) | (91,868 | ) | (98,919 | ) | (89,031 | ) | ||||||||||
Personnel | (46,884 | ) | (52,807 | ) | (55,114 | ) | (65,670 | ) | (53,366 | ) | ||||||||||
Other administrative expenses | (31,053 | ) | (30,133 | ) | (36,754 | ) | (33,249 | ) | (35,665 | ) | ||||||||||
Depreciation and amortisation | (8,338 | ) | (12,378 | ) | (6,026 | ) | (7,538 | ) | (8,874 | ) | ||||||||||
Net operating income | 122,515 | 143,214 | 156,148 | 113,489 | 148,608 | |||||||||||||||
Net loan loss provisions | (22,664 | ) | (19,887 | ) | (16,207 | ) | (13,922 | ) | (22,184 | ) | ||||||||||
Other income | (341 | ) | (11,543 | ) | (19,240 | ) | 26,853 | 8,476 | ||||||||||||
Profit before taxes (w/o capital gains) | 99,510 | 111,784 | 120,701 | 126,420 | 134,899 | |||||||||||||||
Tax on profit | (15,737 | ) | (16,105 | ) | (23,174 | ) | (21,063 | ) | (21,660 | ) | ||||||||||
Net profit from ordinary activity | 83,773 | 95,679 | 97,527 | 105,357 | 113,238 | |||||||||||||||
Net profit from discontinued operations | — | — | — | — | — | |||||||||||||||
Net consolidated profit (w/o capital gains) | 83,773 | 95,679 | 97,527 | 105,357 | 113,238 | |||||||||||||||
Minority interests | 11,806 | 14,274 | 13,157 | 17,805 | 20,648 | |||||||||||||||
Attributable profit to the Group (w/o capital gains) | 71,967 | 81,405 | 84,370 | 87,552 | 92,591 | |||||||||||||||
Net extraordinary gains and allowances | — | — | — | — | — | |||||||||||||||
Attributable profit to the Group | 71,967 | 81,405 | 84,370 | 87,552 | 92,591 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Balance sheet | ||||||||||||||||||||
Loans and credits* | 9,720,491 | 10,343,232 | 10,355,960 | 10,579,663 | 11,097,171 | |||||||||||||||
Trading portfolio (w/o loans) | 630,682 | 746,980 | 970,120 | 1,055,383 | 1,021,312 | |||||||||||||||
Available-for-sale financial assets | 770,924 | 830,622 | 813,210 | 540,690 | 509,351 | |||||||||||||||
Due from credit institutions* | 2,840,775 | 2,537,369 | 2,213,081 | 2,206,583 | 1,918,147 | |||||||||||||||
Intangible assets and property and equipment | 202,540 | 198,363 | 206,015 | 223,516 | 215,860 | |||||||||||||||
Other assets | 878,377 | 1,268,976 | 1,189,998 | 1,497,650 | 1,074,337 | |||||||||||||||
Total assets/liabilities & shareholders’ equity | 15,043,789 | 15,925,543 | 15,748,383 | 16,103,486 | 15,836,178 | |||||||||||||||
Customer deposits* | 8,450,860 | 9,178,564 | 8,946,694 | 9,255,517 | 9,577,402 | |||||||||||||||
Marketable debt securities* | 1,021,467 | 1,122,708 | 1,095,719 | 1,075,655 | 1,050,837 | |||||||||||||||
Subordinated debt | 388,742 | 395,314 | 495,304 | 493,382 | 494,009 | |||||||||||||||
Insurance liabilities | 29,914 | 30,583 | 36,334 | 40,290 | 42,437 | |||||||||||||||
Due to credit institutions* | 3,369,997 | 3,593,070 | 2,976,601 | 2,911,909 | 2,568,721 | |||||||||||||||
Other liabilities | 647,682 | 635,728 | 1,204,101 | 1,413,852 | 1,088,713 | |||||||||||||||
Shareholders’ equity | 1,135,127 | 969,575 | 993,630 | 912,882 | 1,014,060 | |||||||||||||||
Other customer funds under management | 6,697,175 | 6,773,750 | 7,212,239 | 8,216,152 | 8,747,604 | |||||||||||||||
Mutual funds | 1,874,516 | 1,939,889 | 2,034,727 | 2,509,850 | 2,729,828 | |||||||||||||||
Pension funds | 4,822,659 | 4,833,861 | 5,177,512 | 5,706,302 | 6,017,776 | |||||||||||||||
Managed portfolios | — | — | — | — | — | |||||||||||||||
Savings-insurance policies | — | — | — | — | — | |||||||||||||||
Customer funds under management | 16,558,245 | 17,470,337 | 17,749,956 | 19,040,705 | 19,869,852 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income (w/o dividends) | (394 | ) | (256 | ) | (139 | ) | 54.2 | |||||||||
Dividends | 3 | 14 | (11 | ) | (75.7 | ) | ||||||||||
Net interest income | (391 | ) | (241 | ) | (149 | ) | 61.8 | |||||||||
Income from companies accounted for by the equity method | 56 | 126 | (70 | ) | (55.2 | ) | ||||||||||
Net fees | 12 | (4 | ) | 16 | — | |||||||||||
Insurance activity | (1 | ) | 0 | (1 | ) | — | ||||||||||
Commercial revenue | (323 | ) | (119 | ) | (204 | ) | 171.6 | |||||||||
Gains (losses) on financial transactions | (132 | ) | (126 | ) | (6 | ) | 4.5 | |||||||||
Gross operating income | (455 | ) | (245 | ) | (210 | ) | 85.6 | |||||||||
Income from non-financial services (net) and other operating income | (5 | ) | (2 | ) | (3 | ) | 124.3 | |||||||||
Operating expenses | (193 | ) | (165 | ) | (28 | ) | 17.1 | |||||||||
General administrative expenses | (126 | ) | (111 | ) | (15 | ) | 13.8 | |||||||||
Personnel | (48 | ) | (58 | ) | 10 | (18.0 | ) | |||||||||
Other administrative expenses | (79 | ) | (53 | ) | (26 | ) | 49.1 | |||||||||
Depreciation and amortisation | (67 | ) | (54 | ) | (13 | ) | 23.9 | |||||||||
Net operating income | (653 | ) | (412 | ) | (241 | ) | 58.4 | |||||||||
Net loan loss provisions | 9 | (0 | ) | 9 | — | |||||||||||
Other income | (149 | ) | (43 | ) | (107 | ) | 249.0 | |||||||||
Profit before taxes | (794 | ) | (456 | ) | (338 | ) | 74.2 | |||||||||
Tax on profit | 304 | 227 | 78 | 34.2 | ||||||||||||
Net profit from ordinary activity | (489 | ) | (229 | ) | (261 | ) | 114.0 | |||||||||
Net profit from discontinued operations | — | 0 | (0 | ) | (100.0 | ) | ||||||||||
Net consolidated profit | (489 | ) | (229 | ) | (261 | ) | 114.0 | |||||||||
Minority interests | 6 | 38 | (32 | ) | (83.5 | ) | ||||||||||
Attributable profit to the Group | (496 | ) | (267 | ) | (229 | ) | 85.8 |
Variation | ||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | |||||||||||||
Balance sheet | ||||||||||||||||
Trading portfolio (w/o loans) | 1,181 | 1,256 | (74 | ) | (5.9 | ) | ||||||||||
Available-for-sale financial assets | 9,960 | 42,534 | (32,574 | ) | (76.6 | ) | ||||||||||
Investments | 4,839 | 2,933 | 1,906 | 65.0 | ||||||||||||
Goodwill | 14,368 | 14,012 | 356 | 2.5 | ||||||||||||
Liquidity lent to the Group | 79,294 | 53,001 | 26,293 | 49.6 | ||||||||||||
Capital assigned to Group areas | 34,505 | 29,315 | 5,190 | 17.7 | ||||||||||||
Other assets | 37,116 | 29,010 | 8,106 | 27.9 | ||||||||||||
Total assets/liabilities & shareholders’ equity | 181,263 | 172,061 | 9,202 | 5.3 | ||||||||||||
Customer deposits* | 187 | 617 | (431 | ) | (69.7 | ) | ||||||||||
Marketable debt securities* | 82,731 | 62,202 | 20,528 | 33.0 | ||||||||||||
Subordinated debt | 19,303 | 14,612 | 4,692 | 32.1 | ||||||||||||
Preferred securities | — | — | — | — | ||||||||||||
Other liabilities | 35,640 | 56,223 | (20,582 | ) | (36.6 | ) | ||||||||||
Group capital and reserves | 43,402 | 38,407 | 4,995 | 13.0 | ||||||||||||
Other customer funds under management | — | — | — | — | ||||||||||||
Mutual funds | — | — | — | — | ||||||||||||
Pension funds | — | — | — | — | ||||||||||||
Managed portfolios | — | — | — | — | ||||||||||||
Savings-insurance policies | — | — | — | — | ||||||||||||
Customer funds under management | 102,221 | 77,432 | 24,789 | 32.0 |
Resources | ||||||||||||||||
Number of employees (direct & indirect) | 1,756 | 1,494 | 262 | 17.5 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income (w/o dividends) | (256 | ) | (349 | ) | (351 | ) | (314 | ) | (394 | ) | ||||||||||
Dividends | 14 | 112 | 16 | 21 | 3 | |||||||||||||||
Net interest income | (241 | ) | (237 | ) | (335 | ) | (293 | ) | (391 | ) | ||||||||||
Income from companies accounted for by the equity method | 126 | 107 | 141 | 37 | 56 | |||||||||||||||
Net fees | (4 | ) | (3 | ) | 1 | (6 | ) | 12 | ||||||||||||
Insurance activity | 0 | 3 | (0 | ) | (6 | ) | (1 | ) | ||||||||||||
Commercial revenue | (119 | ) | (131 | ) | (193 | ) | (268 | ) | (323 | ) | ||||||||||
Gains (losses) on financial transactions | (126 | ) | 234 | 117 | 189 | (132 | ) | |||||||||||||
Gross operating income | (245 | ) | 103 | (76 | ) | (79 | ) | (455 | ) | |||||||||||
Income from non-financial services (net) and other operating income | (2 | ) | (7 | ) | (1 | ) | (22 | ) | (5 | ) | ||||||||||
Operating expenses | (165 | ) | (136 | ) | (145 | ) | (133 | ) | (193 | ) | ||||||||||
General administrative expenses | (111 | ) | (96 | ) | (80 | ) | (78 | ) | (126 | ) | ||||||||||
Personnel | (58 | ) | (41 | ) | (50 | ) | (55 | ) | (48 | ) | ||||||||||
Other administrative expenses | (53 | ) | (55 | ) | (30 | ) | (23 | ) | (79 | ) | ||||||||||
Depreciation and amortisation | (54 | ) | (41 | ) | (64 | ) | (55 | ) | (67 | ) | ||||||||||
Net operating income | (412 | ) | (40 | ) | (221 | ) | (234 | ) | (653 | ) | ||||||||||
Net loan loss provisions | (0 | ) | 99 | (5 | ) | (3 | ) | 9 | ||||||||||||
Other income | (43 | ) | 51 | 69 | 81 | (149 | ) | |||||||||||||
Profit before taxes (w/o capital gains) | (456 | ) | 111 | (157 | ) | (156 | ) | (794 | ) | |||||||||||
Tax on profit | 227 | 58 | 9 | 187 | 304 | |||||||||||||||
Net profit from ordinary activity | (229 | ) | 168 | (148 | ) | 31 | (489 | ) | ||||||||||||
Net profit from discontinued operations | 0 | 11 | 80 | (2 | ) | — | ||||||||||||||
Net consolidated profit (w/o capital gains) | (229 | ) | 179 | (68 | ) | 29 | (489 | ) | ||||||||||||
Minority interests | 38 | 36 | 13 | 3 | 6 | |||||||||||||||
Attributable profit to the Group (w/o capital gains) | (267 | ) | 144 | (81 | ) | 26 | (496 | ) | ||||||||||||
Net extraordinary gains and allowances | — | — | — | 340 | — | |||||||||||||||
Attributable profit to the Group | (267 | ) | 144 | (81 | ) | 366 | (496 | ) |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Balance sheet | ||||||||||||||||||||
Trading portfolio (w/o loans) | 1,256 | 1,071 | 991 | 2,029 | 1,181 | |||||||||||||||
Available-for-sale financial assets | 42,534 | 8,079 | 9,787 | 7,605 | 9,960 | |||||||||||||||
Investments | 2,933 | 5,234 | 5,231 | 4,897 | 4,839 | |||||||||||||||
Goodwill | 14,012 | 13,951 | 14,176 | 14,508 | 14,368 | |||||||||||||||
Liquidity lent to the Group | 53,001 | 62,212 | 68,680 | 67,138 | 79,294 | |||||||||||||||
Capital assigned to Group areas | 29,315 | 27,595 | 29,047 | 29,120 | 34,505 | |||||||||||||||
Other assets | 29,010 | 37,520 | 34,499 | 35,539 | 37,116 | |||||||||||||||
Total assets/liabilities & shareholders’ equity | 172,061 | 155,662 | 162,412 | 160,836 | 181,263 | |||||||||||||||
Customer deposits* | 617 | 1,084 | 969 | 496 | 187 | |||||||||||||||
Marketable debt securities* | 62,202 | 66,296 | 73,493 | 78,321 | 82,731 | |||||||||||||||
Subordinated debt | 14,612 | 15,850 | 16,169 | 16,247 | 19,303 | |||||||||||||||
Preferred securities | — | — | — | — | — | |||||||||||||||
Other liabilities | 56,223 | 36,569 | 35,951 | 30,073 | 35,640 | |||||||||||||||
Group capital and reserves | 38,407 | 35,864 | 35,831 | 35,699 | 43,402 | |||||||||||||||
Other customer funds under management | — | — | — | — | — | |||||||||||||||
Mutual funds | — | — | — | — | — | |||||||||||||||
Pension funds | — | — | — | — | — | |||||||||||||||
Managed portfolios | — | — | — | — | — | |||||||||||||||
Savings-insurance policies | — | — | — | — | — | |||||||||||||||
Customer funds under management | 77,432 | 83,229 | 90,631 | 95,064 | 102,221 |
Other information | ||||||||||||||||||||
Risk-weighted assets | 35,752 | 41,609 | 45,730 | 55,900 | 54,005 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 1,256 | 1,027 | 229 | 22.3 | ||||||||||||
Income from companies accounted for by the equity method | 2 | 2 | 1 | 42.9 | ||||||||||||
Net fees | 923 | 688 | 235 | 34.1 | ||||||||||||
Insurance activity | 32 | 28 | 4 | 13.5 | ||||||||||||
Commercial revenue | 2,213 | 1,744 | 468 | 26.8 | ||||||||||||
Gains (losses) on financial transactions | 258 | 211 | 47 | 22.5 | ||||||||||||
Gross operating income | 2,471 | 1,955 | 516 | 26.4 | ||||||||||||
Income from non-financial services (net) and other operating income | 4 | 10 | (6 | ) | (59.5 | ) | ||||||||||
Operating expenses | (904 | ) | (837 | ) | (67 | ) | 8.0 | |||||||||
General administrative expenses | (801 | ) | (740 | ) | (61 | ) | 8.3 | |||||||||
Personnel | (568 | ) | (528 | ) | (41 | ) | 7.7 | |||||||||
Other administrative expenses | (233 | ) | (212 | ) | (21 | ) | 9.8 | |||||||||
Depreciation and amortisation | (103 | ) | (97 | ) | (5 | ) | 5.6 | |||||||||
Net operating income | 1,571 | 1,128 | 443 | 39.3 | ||||||||||||
Net loan loss provisions | (108 | ) | (149 | ) | 42 | (27.8 | ) | |||||||||
Other income | 45 | 34 | 11 | 33.2 | ||||||||||||
Profit before taxes | 1,508 | 1,012 | 496 | 48.9 | ||||||||||||
Tax on profit | (426 | ) | (298 | ) | (128 | ) | 43.0 | |||||||||
Net profit from ordinary activity | 1,082 | 715 | 368 | 51.4 | ||||||||||||
Net profit from discontinued operations | — | 40 | (40 | ) | (100.0 | ) | ||||||||||
Net consolidated profit | 1,082 | 755 | 327 | 43.3 | ||||||||||||
Minority interests | 22 | 46 | (24 | ) | (51.8 | ) | ||||||||||
Attributable profit to the Group | 1,060 | 709 | 351 | 49.6 |
Variation | ||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | |||||||||||||
Balance sheet | ||||||||||||||||
Loans and credits* | 212,804 | 170,661 | 42,143 | 24.7 | ||||||||||||
Trading portfolio (w/o loans) | 31,489 | 23,432 | 8,057 | 34.4 | ||||||||||||
Available-for-sale financial assets | 9,009 | 11,727 | (2,718 | ) | (23.2 | ) | ||||||||||
Due from credit institutions* | 59,358 | 44,416 | 14,941 | 33.6 | ||||||||||||
Intangible assets and property and equipment | 3,991 | 4,003 | (12 | ) | (0.3 | ) | ||||||||||
Other assets | 10,390 | 10,848 | (458 | ) | (4.2 | ) | ||||||||||
Total assets/liabilities & shareholders’ equity | 327,040 | 265,087 | 61,952 | 23.4 | ||||||||||||
Customer deposits* | 115,017 | 101,260 | 13,757 | 13.6 | ||||||||||||
Marketable debt securities* | 32,883 | 24,184 | 8,700 | 36.0 | ||||||||||||
Subordinated debt | 1,941 | 1,616 | 326 | 20.2 | ||||||||||||
Insurance liabilities | 5,686 | 3,607 | 2,080 | 57.7 | ||||||||||||
Due to credit institutions* | 46,158 | 41,723 | 4,435 | 10.6 | ||||||||||||
Other liabilities | 109,500 | 79,412 | 30,088 | 37.9 | ||||||||||||
Shareholders’ equity | 15,855 | 13,288 | 2,567 | 19.3 | ||||||||||||
Other customer funds under management | 100,323 | 93,929 | 6,395 | 6.8 | ||||||||||||
Mutual funds | 78,854 | 77,463 | 1,391 | 1.8 | ||||||||||||
Pension funds | 9,980 | 9,047 | 932 | 10.3 | ||||||||||||
Managed portfolios | 7,913 | 5,948 | 1,964 | 33.0 | ||||||||||||
Savings-insurance policies | 3,577 | 1,470 | 2,107 | 143.3 | ||||||||||||
Customer funds under management | 250,165 | 220,988 | 29,177 | 13.2 |
Ratios (%) and other data | ||||||||||||||||
ROE | 28.40 | 21.95 | 6.45 | p. | ||||||||||||
Efficiency ratio | 35.68 | 41.54 | (5.86 | p.) | ||||||||||||
NPL ratio | 0.51 | 0.56 | (0.05 | p.) | ||||||||||||
NPL coverage | 292.15 | 322.28 | (30.13 | p.) | ||||||||||||
Number of employees (direct & indirect) | 34,483 | 33,599 | 884 | 2.6 | ||||||||||||
Number of branches | 4,901 | 4,556 | 345 | 7.6 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 1,027 | 1,098 | 1,151 | 1,177 | 1,256 | |||||||||||||||
Income from companies accounted for by the equity method | 2 | 0 | 2 | 2 | 2 | |||||||||||||||
Net fees | 688 | 716 | 763 | 784 | 923 | |||||||||||||||
Insurance activity | 28 | 30 | 29 | 31 | 32 | |||||||||||||||
Commercial revenue | 1,744 | 1,844 | 1,944 | 1,994 | 2,213 | |||||||||||||||
Gains (losses) on financial transactions | 211 | 82 | 203 | 121 | 258 | |||||||||||||||
Gross operating income | 1,955 | 1,926 | 2,147 | 2,115 | 2,471 | |||||||||||||||
Income from non-financial services (net) and other operating income | 10 | (11 | ) | 15 | 12 | 4 | ||||||||||||||
Operating expenses | (837 | ) | (849 | ) | (848 | ) | (899 | ) | (904 | ) | ||||||||||
General administrative expenses | (740 | ) | (747 | ) | (751 | ) | (795 | ) | (801 | ) | ||||||||||
Personnel | (528 | ) | (536 | ) | (532 | ) | (567 | ) | (568 | ) | ||||||||||
Other administrative expenses | (212 | ) | (211 | ) | (220 | ) | (228 | ) | (233 | ) | ||||||||||
Depreciation and amortisation | (97 | ) | (103 | ) | (97 | ) | (105 | ) | (103 | ) | ||||||||||
Net operating income | 1,128 | 1,066 | 1,315 | 1,227 | 1,571 | |||||||||||||||
Net loan loss provisions | (149 | ) | (290 | ) | (301 | ) | (172 | ) | (108 | ) | ||||||||||
Other income | 34 | 80 | (53 | ) | (38 | ) | 45 | |||||||||||||
Profit before taxes (w/o capital gains) | 1,012 | 856 | 961 | 1,016 | 1,508 | |||||||||||||||
Tax on profit | (298 | ) | (244 | ) | (287 | ) | (284 | ) | (426 | ) | ||||||||||
Net profit from ordinary activity | 715 | 612 | 673 | 733 | 1,082 | |||||||||||||||
Net profit from discontinued operations | 40 | 45 | 31 | 26 | — | |||||||||||||||
Net consolidated profit (w/o capital gains) | 755 | 657 | 704 | 759 | 1,082 | |||||||||||||||
Minority interests | 46 | 58 | 29 | 42 | 22 | |||||||||||||||
Attributable profit to the Group (w/o capital gains) | 709 | 599 | 675 | 718 | 1,060 | |||||||||||||||
Net extraordinary gains and allowances | — | — | — | 674 | — | |||||||||||||||
Attributable profit to the Group | 709 | 599 | 675 | 1,391 | 1,060 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Balance sheet | ||||||||||||||||||||
Loans and credits* | 170,661 | 183,799 | 196,727 | 207,781 | 212,804 | |||||||||||||||
Trading portfolio (w/o loans) | 23,432 | 30,448 | 29,123 | 32,919 | 31,489 | |||||||||||||||
Available-for-sale financial assets | 11,727 | 12,047 | 12,718 | 12,033 | 9,009 | |||||||||||||||
Due from credit institutions* | 44,416 | 45,473 | 49,601 | 52,555 | 59,358 | |||||||||||||||
Intangible assets and property and equipment | 4,003 | 4,328 | 4,589 | 3,880 | 3,991 | |||||||||||||||
Other assets | 10,848 | 11,209 | 13,187 | 13,021 | 10,390 | |||||||||||||||
Total assets/liabilities & shareholders’ equity | 265,087 | 287,304 | 305,947 | 322,188 | 327,040 | |||||||||||||||
Customer deposits* | 101,260 | 103,024 | 111,747 | 115,537 | 115,017 | |||||||||||||||
Marketable debt securities* | 24,184 | 26,243 | 28,630 | 31,161 | 32,883 | |||||||||||||||
Subordinated debt | 1,616 | 1,602 | 2,124 | 1,913 | 1,941 | |||||||||||||||
Insurance liabilities | 3,607 | 3,658 | 4,069 | 4,788 | 5,686 | |||||||||||||||
Due to credit institutions* | 41,723 | 46,423 | 48,149 | 54,682 | 46,158 | |||||||||||||||
Other liabilities | 79,412 | 92,871 | 97,406 | 100,061 | 109,500 | |||||||||||||||
Shareholders’ equity | 13,288 | 13,484 | 13,822 | 14,046 | 15,855 | |||||||||||||||
Other customer funds under management | 93,929 | 93,680 | 96,297 | 97,496 | 100,323 | |||||||||||||||
Mutual funds | 77,463 | 76,677 | 78,253 | 77,526 | 78,854 | |||||||||||||||
Pension funds | 9,047 | 8,887 | 9,201 | 9,950 | 9,980 | |||||||||||||||
Managed portfolios | 5,948 | 6,460 | 6,864 | 7,125 | 7,913 | |||||||||||||||
Savings-insurance policies | 1,470 | 1,655 | 1,979 | 2,895 | 3,577 | |||||||||||||||
Customer funds under management | 220,988 | 224,548 | 238,798 | 246,107 | 250,165 |
Other information | ||||||||||||||||||||
NPL ratio | 0.56 | 0.54 | 0.55 | 0.53 | 0.51 | |||||||||||||||
NPL coverage | 322.28 | 330.79 | 325.24 | 328.37 | 292.15 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 3,562 | 2,881 | 681 | 23.6 | ||||||||||||
Income from companies accounted for by the equity method | 4 | 5 | (1 | ) | (16.9 | ) | ||||||||||
Net fees | 1,597 | 1,429 | 168 | 11.7 | ||||||||||||
Insurance activity | 0 | (0 | ) | 0 | — | |||||||||||
Commercial revenue | 5,163 | 4,315 | 848 | 19.6 | ||||||||||||
Gains (losses) on financial transactions | 337 | 285 | 52 | 18.1 | ||||||||||||
Gross operating income | 5,499 | 4,600 | 899 | 19.6 | ||||||||||||
Income from non-financial services (net) and other operating income | (6 | ) | 13 | (19 | ) | — | ||||||||||
Operating expenses | (2,455 | ) | (2,309 | ) | (146 | ) | 6.3 | |||||||||
General administrative expenses | (2,241 | ) | (2,104 | ) | (137 | ) | 6.5 | |||||||||
Personnel | (1,339 | ) | (1,273 | ) | (65 | ) | 5.1 | |||||||||
Other administrative expenses | (903 | ) | (830 | ) | (72 | ) | 8.7 | |||||||||
Depreciation and amortisation | (214 | ) | (205 | ) | (9 | ) | 4.2 | |||||||||
Net operating income | 3,038 | 2,304 | 734 | 31.9 | ||||||||||||
Net loan loss provisions | (723 | ) | (453 | ) | (270 | ) | 59.4 | |||||||||
Other income | 19 | (16 | ) | 34 | — | |||||||||||
Profit before taxes | 2,334 | 1,835 | 499 | 27.2 |
Variation | ||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | |||||||||||||
Business volumes | ||||||||||||||||
Total assets | 674,358 | 635,750 | 38,608 | 6.1 | ||||||||||||
Loans and credits | 484,443 | 416,371 | 68,072 | 16.3 | ||||||||||||
Customer deposits | 284,807 | 257,117 | 27,690 | 10.8 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 2,881 | 3,014 | 3,144 | 3,271 | 3,562 | |||||||||||||||
Income from companies accounted for by the equity method | 5 | 4 | 3 | 4 | 4 | |||||||||||||||
Net fees | 1,429 | 1,468 | 1,499 | 1,571 | 1,597 | |||||||||||||||
Insurance activity | (0 | ) | 0 | 0 | 0 | 0 | ||||||||||||||
Commercial revenue | 4,315 | 4,485 | 4,647 | 4,846 | 5,163 | |||||||||||||||
Gains (losses) on financial transactions | 285 | 272 | 242 | 242 | 337 | |||||||||||||||
Gross operating income | 4,600 | 4,757 | 4,889 | 5,088 | 5,499 | |||||||||||||||
Income from non-financial services (net) and other operating income | 13 | (12 | ) | 14 | (20 | ) | (6 | ) | ||||||||||||
Operating expenses | (2,309 | ) | (2,309 | ) | (2,368 | ) | (2,483 | ) | (2,455 | ) | ||||||||||
General administrative expenses | (2,104 | ) | (2,094 | ) | (2,165 | ) | (2,258 | ) | (2,241 | ) | ||||||||||
Personnel | (1,273 | ) | (1,279 | ) | (1,286 | ) | (1,329 | ) | (1,339 | ) | ||||||||||
Other administrative expenses | (830 | ) | (815 | ) | (880 | ) | (929 | ) | (903 | ) | ||||||||||
Depreciation and amortisation | (205 | ) | (215 | ) | �� | (202 | ) | (225 | ) | (214 | ) | |||||||||
Net operating income | 2,304 | 2,437 | 2,535 | 2,585 | 3,038 | |||||||||||||||
Net loan loss provisions | (453 | ) | (634 | ) | (550 | ) | (614 | ) | (723 | ) | ||||||||||
Other income | (16 | ) | (62 | ) | (67 | ) | (82 | ) | 19 | |||||||||||
Profit before taxes (ordinary) | 1,835 | 1,741 | 1,918 | 1,889 | 2,334 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Business volumes | ||||||||||||||||||||
Total assets | 635,750 | 665,031 | 647,196 | 668,960 | 674,358 | |||||||||||||||
Loans and credits | 416,371 | 439,652 | 451,730 | 474,253 | 484,443 | |||||||||||||||
Customer deposits | 257,117 | 261,454 | 277,366 | 288,532 | 284,807 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 1,703 | 1,335 | 368 | 27.5 | ||||||||||||
Income from companies accounted for by the equity method | 2 | 2 | 1 | 42.9 | ||||||||||||
Net fees | 804 | 702 | 102 | 14.6 | ||||||||||||
Insurance activity | — | — | — | — | ||||||||||||
Commercial revenue | 2,509 | 2,039 | 471 | 23.1 | ||||||||||||
Gains (losses) on financial transactions | 128 | 129 | (1 | ) | (0.9 | ) | ||||||||||
Gross operating income | 2,637 | 2,168 | 470 | 21.7 | ||||||||||||
Income from non-financial services (net) and other operating income | 10 | 13 | (3 | ) | (23.3 | ) | ||||||||||
Operating expenses | (1,051 | ) | (964 | ) | (87 | ) | 9.0 | |||||||||
General administrative expenses | (932 | ) | (849 | ) | (83 | ) | 9.8 | |||||||||
Personnel | (636 | ) | (590 | ) | (46 | ) | 7.8 | |||||||||
Other administrative expenses | (297 | ) | (260 | ) | (37 | ) | 14.2 | |||||||||
Depreciation and amortisation | (119 | ) | (115 | ) | (4 | ) | 3.7 | |||||||||
Net operating income | 1,596 | 1,217 | 379 | 31.2 | ||||||||||||
Net loan loss provisions | (314 | ) | (203 | ) | (112 | ) | 55.0 | |||||||||
Other income | (3 | ) | (9 | ) | 6 | (70.1 | ) | |||||||||
Profit before taxes | 1,279 | 1,005 | 274 | 27.2 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 1,335 | 1,407 | 1,446 | 1,510 | 1,703 | |||||||||||||||
Income from companies accounted for by the equity method | 2 | 0 | 2 | 2 | 2 | |||||||||||||||
Net fees | 702 | 742 | 768 | 789 | 804 | |||||||||||||||
Insurance activity | — | — | — | — | — | |||||||||||||||
Commercial revenue | 2,039 | 2,149 | 2,216 | 2,301 | 2,509 | |||||||||||||||
Gains (losses) on financial transactions | 129 | 113 | 72 | 119 | 128 | |||||||||||||||
Gross operating income | 2,168 | 2,262 | 2,288 | 2,420 | 2,637 | |||||||||||||||
Income from non-financial services (net) and other operating income | 13 | (7 | ) | 17 | 18 | 10 | ||||||||||||||
Operating expenses | (964 | ) | (984 | ) | (984 | ) | (1,035 | ) | (1,051 | ) | ||||||||||
General administrative expenses | (849 | ) | (862 | ) | (864 | ) | (910 | ) | (932 | ) | ||||||||||
Personnel | (590 | ) | (597 | ) | (597 | ) | (616 | ) | (636 | ) | ||||||||||
Other administrative expenses | (260 | ) | (265 | ) | (267 | ) | (294 | ) | (297 | ) | ||||||||||
Depreciation and amortisation | (115 | ) | (122 | ) | (120 | ) | (125 | ) | (119 | ) | ||||||||||
Net operating income | 1,217 | 1,271 | 1,322 | 1,403 | 1,596 | |||||||||||||||
Net loan loss provisions | (203 | ) | (318 | ) | (248 | ) | (231 | ) | (314 | ) | ||||||||||
Other income | (9 | ) | 52 | (8 | ) | (23 | ) | (3 | ) | |||||||||||
Profit before taxes (w/o capital gains) | 1,005 | 1,005 | 1,066 | 1,148 | 1,279 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 1,120 | 939 | 181 | 19.3 | ||||||||||||
Income from companies accounted for by the equity method | 2 | 2 | 1 | 42.9 | ||||||||||||
Net fees | 643 | 553 | 90 | 16.3 | ||||||||||||
Insurance activity | — | — | — | — | ||||||||||||
Commercial revenue | 1,765 | 1,494 | 272 | 18.2 | ||||||||||||
Gains (losses) on financial transactions | 120 | 115 | 5 | 4.3 | ||||||||||||
Gross operating income | 1,886 | 1,609 | 277 | 17.2 | ||||||||||||
Income from non-financial services (net) and other operating income | 5 | 11 | (6 | ) | (55.1 | ) | ||||||||||
Operating expenses | (778 | ) | (737 | ) | (41 | ) | 5.5 | |||||||||
General administrative expenses | (689 | ) | (648 | ) | (41 | ) | 6.2 | |||||||||
Personnel | (499 | ) | (473 | ) | (26 | ) | 5.5 | |||||||||
Other administrative expenses | (190 | ) | (175 | ) | (14 | ) | 8.2 | |||||||||
Depreciation and amortisation | (89 | ) | (89 | ) | (0 | ) | 0.4 | |||||||||
Net operating income | 1,113 | 883 | 230 | 26.0 | ||||||||||||
Net loan loss provisions | (148 | ) | (138 | ) | (10 | ) | 7.3 | |||||||||
Other income | 7 | (2 | ) | 9 | — | |||||||||||
Profit before taxes | 971 | 743 | 228 | 30.7 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 939 | 992 | 1,018 | 1,078 | 1,120 | |||||||||||||||
Income from companies accounted for by the equity method | 2 | 0 | 2 | 2 | 2 | |||||||||||||||
Net fees | 553 | 593 | 616 | 641 | 643 | |||||||||||||||
Insurance activity | — | — | — | — | — | |||||||||||||||
Commercial revenue | 1,494 | 1,586 | 1,636 | 1,720 | 1,765 | |||||||||||||||
Gains (losses) on financial transactions | 115 | 106 | 71 | 82 | 120 | |||||||||||||||
Gross operating income | 1,609 | 1,692 | 1,707 | 1,802 | 1,886 | |||||||||||||||
Income from non-financial services (net) and other operating income | 11 | (10 | ) | 16 | 12 | 5 | ||||||||||||||
Operating expenses | (737 | ) | (748 | ) | (745 | ) | (762 | ) | (778 | ) | ||||||||||
General administrative expenses | (648 | ) | (655 | ) | (654 | ) | (672 | ) | (689 | ) | ||||||||||
Personnel | (473 | ) | (480 | ) | (475 | ) | (485 | ) | (499 | ) | ||||||||||
Other administrative expenses | (175 | ) | (175 | ) | (179 | ) | (187 | ) | (190 | ) | ||||||||||
Depreciation and amortisation | (89 | ) | (94 | ) | (92 | ) | (90 | ) | (89 | ) | ||||||||||
Net operating income | 883 | 934 | 977 | 1,052 | 1,113 | |||||||||||||||
Net loan loss provisions | (138 | ) | (231 | ) | (158 | ) | (149 | ) | (148 | ) | ||||||||||
Other income | (2 | ) | 59 | (16 | ) | 0 | 7 | |||||||||||||
Profit before taxes (w/o capital gains) | 743 | 762 | 802 | 904 | 971 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 174 | 155 | 19 | 12.4 | ||||||||||||
Income from companies accounted for by the equity method | — | — | — | — | ||||||||||||
Net fees | 78 | 81 | (3 | ) | (3.6 | ) | ||||||||||
Insurance activity | — | — | — | — | ||||||||||||
Commercial revenue | 253 | 236 | 16 | 6.9 | ||||||||||||
Gains (losses) on financial transactions | 9 | 9 | 0 | 4.6 | ||||||||||||
Gross operating income | 262 | 245 | 17 | 6.8 | ||||||||||||
Income from non-financial services (net) and other operating income | (2 | ) | (3 | ) | 1 | (26.7 | ) | |||||||||
Operating expenses | (123 | ) | (113 | ) | (10 | ) | 8.8 | |||||||||
General administrative expenses | (107 | ) | (99 | ) | (8 | ) | 8.6 | |||||||||
Personnel | (70 | ) | (66 | ) | (3 | ) | 5.3 | |||||||||
Other administrative expenses | (37 | ) | (32 | ) | (5 | ) | 15.6 | |||||||||
Depreciation and amortisation | (16 | ) | (15 | ) | (1 | ) | 10.0 | |||||||||
Net operating income | 136 | 129 | 8 | 5.8 | ||||||||||||
Net loan loss provisions | 6 | 3 | 2 | 69.7 | ||||||||||||
Other income | (11 | ) | (5 | ) | (6 | ) | 126.4 | |||||||||
Profit before taxes | 131 | 127 | 4 | 3.2 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 155 | 163 | 161 | 158 | 174 | |||||||||||||||
Income from companies accounted for by the equity method | — | — | — | — | — | |||||||||||||||
Net fees | 81 | 77 | 76 | 76 | 78 | |||||||||||||||
Insurance activity | — | — | — | — | — | |||||||||||||||
Commercial revenue | 236 | 240 | 237 | 234 | 253 | |||||||||||||||
Gains (losses) on financial transactions | 9 | (3 | ) | 1 | 21 | 9 | ||||||||||||||
Gross operating income | 245 | 237 | 237 | 255 | 262 | |||||||||||||||
Income from non-financial services (net) and other operating income | (3 | ) | (3 | ) | (3 | ) | (2 | ) | (2 | ) | ||||||||||
Operating expenses | (113 | ) | (118 | ) | (118 | ) | (138 | ) | (123 | ) | ||||||||||
General administrative expenses | (99 | ) | (103 | ) | (102 | ) | (121 | ) | (107 | ) | ||||||||||
Personnel | (66 | ) | (67 | ) | (67 | ) | (75 | ) | (70 | ) | ||||||||||
Other administrative expenses | (32 | ) | (36 | ) | (35 | ) | (46 | ) | (37 | ) | ||||||||||
Depreciation and amortisation | (15 | ) | (15 | ) | (15 | ) | (17 | ) | (16 | ) | ||||||||||
Net operating income | 129 | 116 | 117 | 116 | 136 | |||||||||||||||
Net loan loss provisions | 3 | (22 | ) | (19 | ) | (3 | ) | 6 | ||||||||||||
Other income | (5 | ) | (4 | ) | 10 | (10 | ) | (11 | ) | |||||||||||
Profit before taxes (w/o capital gains) | 127 | 90 | 108 | 102 | 131 | |||||||||||||||
Other information | ||||||||||||||||||||
Spread | 2.85 | 2.84 | 2.80 | 2.79 | 2.73 | |||||||||||||||
Spread loans | 1.66 | 1.63 | 1.56 | 1.53 | 1.46 | |||||||||||||||
Spread deposits | 1.19 | 1.21 | 1.24 | 1.26 | 1.27 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 572 | 507 | 64 | 12.7 | ||||||||||||
Income from companies accounted for by the equity method | 0 | 1 | (1 | ) | (87.8 | ) | ||||||||||
Net fees | 251 | 246 | 5 | 2.0 | ||||||||||||
Insurance activity | 0 | (0 | ) | 0 | — | |||||||||||
Commercial revenue | 823 | 754 | 69 | 9.1 | ||||||||||||
Gains (losses) on financial transactions | 131 | 108 | 24 | 22.0 | ||||||||||||
Gross operating income | 954 | 862 | 93 | 10.7 | ||||||||||||
Income from non-financial services (net) and other operating income | 14 | 16 | (2 | ) | (9.8 | ) | ||||||||||
Operating expenses | (492 | ) | (493 | ) | 1 | (0.1 | ) | |||||||||
General administrative expenses | (467 | ) | (466 | ) | (1 | ) | 0.2 | |||||||||
Personnel | (261 | ) | (268 | ) | 7 | (2.5 | ) | |||||||||
Other administrative expenses | (206 | ) | (198 | ) | (8 | ) | 4.0 | |||||||||
Depreciation and amortisation | (25 | ) | (27 | ) | 2 | (6.2 | ) | |||||||||
Net operating income | 476 | 385 | 92 | 23.8 | ||||||||||||
Net loan loss provisions | (81 | ) | (88 | ) | 7 | (7.9 | ) | |||||||||
Other income | 5 | (1 | ) | 6 | — | |||||||||||
Profit before taxes | 400 | 295 | 105 | 35.5 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 507 | 521 | 531 | 538 | 572 | |||||||||||||||
Income from companies accounted for by the equity method | 1 | 1 | 1 | 0 | 0 | |||||||||||||||
Net fees | 246 | 248 | 252 | 249 | 251 | |||||||||||||||
Insurance activity | (0 | ) | 0 | 0 | 0 | 0 | ||||||||||||||
Commercial revenue | 754 | 769 | 784 | 787 | 823 | |||||||||||||||
Gains (losses) on financial transactions | 108 | 75 | 117 | 124 | 131 | |||||||||||||||
Gross operating income | 862 | 844 | 901 | 911 | 954 | |||||||||||||||
Income from non-financial services (net) and other operating income | 16 | 14 | 11 | 1 | 14 | |||||||||||||||
Operating expenses | (493 | ) | (472 | ) | (485 | ) | (490 | ) | (492 | ) | ||||||||||
General administrative expenses | (466 | ) | (445 | ) | (462 | ) | (462 | ) | (467 | ) | ||||||||||
Personnel | (268 | ) | (260 | ) | (260 | ) | (259 | ) | (261 | ) | ||||||||||
Other administrative expenses | (198 | ) | (185 | ) | (203 | ) | (202 | ) | (206 | ) | ||||||||||
Depreciation and amortisation | (27 | ) | (27 | ) | (23 | ) | (28 | ) | (25 | ) | ||||||||||
Net operating income | 385 | 386 | 427 | 423 | 476 | |||||||||||||||
Net loan loss provisions | (88 | ) | (115 | ) | (103 | ) | (80 | ) | (81 | ) | ||||||||||
Other income | (1 | ) | (1 | ) | 1 | (0 | ) | 5 | ||||||||||||
Profit before taxes (w/o capital gains) | 295 | 270 | 325 | 343 | 400 | |||||||||||||||
Other information | ||||||||||||||||||||
Spread | 1.81 | 1.84 | 1.84 | 1.89 | 1.97 | |||||||||||||||
Spread loans | 0.72 | 0.73 | 0.70 | 0.69 | 0.69 | |||||||||||||||
Spread deposits | 1.09 | 1.11 | 1.14 | 1.20 | 1.28 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 383 | 348 | 35 | 10.2 | ||||||||||||
Income from companies accounted for by the equity method | 0 | 1 | (0 | ) | (88.1 | ) | ||||||||||
Net fees | 169 | 169 | (0 | ) | (0.3 | ) | ||||||||||
Insurance activity | 0 | (0 | ) | 0 | — | |||||||||||
Commercial revenue | 552 | 517 | 35 | 6.7 | ||||||||||||
Gains (losses) on financial transactions | 88 | 74 | 14 | 19.2 | ||||||||||||
Gross operating income | 640 | 591 | 49 | 8.2 | ||||||||||||
Income from non-financial services (net) and other operating income | 9 | 11 | (1 | ) | (11.8 | ) | ||||||||||
Operating expenses | (330 | ) | (338 | ) | 8 | (2.4 | ) | |||||||||
General administrative expenses | (313 | ) | (320 | ) | 6 | (2.0 | ) | |||||||||
Personnel | (175 | ) | (184 | ) | 9 | (4.7 | ) | |||||||||
Other administrative expenses | (138 | ) | (136 | ) | (2 | ) | 1.7 | |||||||||
Depreciation and amortisation | (17 | ) | (18 | ) | 2 | (8.3 | ) | |||||||||
Net operating income | 319 | 264 | 55 | 21.0 | ||||||||||||
Net loan loss provisions | (55 | ) | (61 | ) | 6 | (10.0 | ) | |||||||||
Other income | 3 | (1 | ) | 4 | — | |||||||||||
Profit before taxes | 268 | 203 | 66 | 32.5 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 348 | 358 | 361 | 362 | 383 | |||||||||||||||
Income from companies accounted for by the equity method | 1 | 1 | 0 | 0 | 0 | |||||||||||||||
Net fees | 169 | 170 | 172 | 168 | 169 | |||||||||||||||
Insurance activity | (0 | ) | 0 | 0 | 0 | 0 | ||||||||||||||
Commercial revenue | 517 | 529 | 533 | 530 | 552 | |||||||||||||||
Gains (losses) on financial transactions | 74 | 51 | 80 | 84 | 88 | |||||||||||||||
Gross operating income | 591 | 581 | 613 | 614 | 640 | |||||||||||||||
Income from non-financial services (net) and other operating income | 11 | 10 | 7 | 1 | 9 | |||||||||||||||
Operating expenses | (338 | ) | (325 | ) | (330 | ) | (330 | ) | (330 | ) | ||||||||||
General administrative expenses | (320 | ) | (306 | ) | (314 | ) | (311 | ) | (313 | ) | ||||||||||
Personnel | (184 | ) | (179 | ) | (177 | ) | (175 | ) | (175 | ) | ||||||||||
Other administrative expenses | (136 | ) | (127 | ) | (138 | ) | (136 | ) | (138 | ) | ||||||||||
Depreciation and amortisation | (18 | ) | (19 | ) | (16 | ) | (19 | ) | (17 | ) | ||||||||||
Net operating income | 264 | 266 | 290 | 285 | 319 | |||||||||||||||
Net loan loss provisions | (61 | ) | (79 | ) | (70 | ) | (54 | ) | (55 | ) | ||||||||||
Other income | (1 | ) | (1 | ) | 1 | (0 | ) | 3 | ||||||||||||
Profit before taxes (w/o capital gains) | 203 | 185 | 221 | 231 | 268 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 1,288 | 1,039 | 248 | 23.9 | ||||||||||||
Income from companies accounted for by the equity method | 1 | 2 | (1 | ) | (33.4 | ) | ||||||||||
Net fees | 541 | 481 | 61 | 12.6 | ||||||||||||
Insurance activity | — | — | — | — | ||||||||||||
Commercial revenue | 1,830 | 1,522 | 308 | 20.3 | ||||||||||||
Gains (losses) on financial transactions | 77 | 48 | 29 | 60.3 | ||||||||||||
Gross operating income | 1,907 | 1,570 | 337 | 21.5 | ||||||||||||
Income from non-financial services (net) and other operating income | (30 | ) | (16 | ) | (14 | ) | 90.2 | |||||||||
Operating expenses | (911 | ) | (852 | ) | (59 | ) | 7.0 | |||||||||
General administrative expenses | (842 | ) | (789 | ) | (53 | ) | 6.8 | |||||||||
Personnel | (442 | ) | (415 | ) | (26 | ) | 6.3 | |||||||||
Other administrative expenses | (400 | ) | (373 | ) | (27 | ) | 7.3 | |||||||||
Depreciation and amortisation | (69 | ) | (63 | ) | (6 | ) | 9.5 | |||||||||
Net operating income | 966 | 703 | 264 | 37.5 | ||||||||||||
Net loan loss provisions | (327 | ) | (162 | ) | (165 | ) | 101.7 | |||||||||
Other income | 16 | (6 | ) | 22 | — | |||||||||||
Profit before taxes | 655 | 534 | 121 | 22.6 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 1,039 | 1,086 | 1,167 | 1,223 | 1,288 | |||||||||||||||
Income from companies accounted for by the equity method | 2 | 2 | 1 | 2 | 1 | |||||||||||||||
Net fees | 481 | 479 | 478 | 533 | 541 | |||||||||||||||
Insurance activity | — | — | — | — | — | |||||||||||||||
Commercial revenue | 1,522 | 1,568 | 1,646 | 1,758 | 1,830 | |||||||||||||||
Gains (losses) on financial transactions | 48 | 84 | 53 | (1 | ) | 77 | ||||||||||||||
Gross operating income | 1,570 | 1,652 | 1,699 | 1,757 | 1,907 | |||||||||||||||
Income from non-financial services (net) and other operating income | (16 | ) | (19 | ) | (13 | ) | (39 | ) | (30 | ) | ||||||||||
Operating expenses | (852 | ) | (852 | ) | (899 | ) | (959 | ) | (911 | ) | ||||||||||
General administrative expenses | (789 | ) | (786 | ) | (839 | ) | (887 | ) | (842 | ) | ||||||||||
Personnel | (415 | ) | (422 | ) | (429 | ) | (454 | ) | (442 | ) | ||||||||||
Other administrative expenses | (373 | ) | (365 | ) | (410 | ) | (433 | ) | (400 | ) | ||||||||||
Depreciation and amortisation | (63 | ) | (66 | ) | (60 | ) | (72 | ) | (69 | ) | ||||||||||
Net operating income | 703 | 781 | 787 | 759 | 966 | |||||||||||||||
Net loan loss provisions | (162 | ) | (200 | ) | (198 | ) | (303 | ) | (327 | ) | ||||||||||
Other income | (6 | ) | (114 | ) | (61 | ) | (58 | ) | 16 | |||||||||||
Profit before taxes (w/o capital gains) | 534 | 466 | 528 | 398 | 655 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 1,687 | 1,249 | 439 | 35.1 | ||||||||||||
Income from companies accounted for by the equity method | 2 | 3 | (1 | ) | (27.4 | ) | ||||||||||
Net fees | 709 | 578 | 132 | 22.8 | ||||||||||||
Insurance activity | — | — | — | — | ||||||||||||
Commercial revenue | 2,399 | 1,829 | 569 | 31.1 | ||||||||||||
Gains (losses) on financial transactions | 101 | 58 | 43 | 74.8 | ||||||||||||
Gross operating income | 2,500 | 1,887 | 613 | 32.5 | ||||||||||||
Income from non-financial services (net) and other operating income | (40 | ) | (19 | ) | (20 | ) | 107.4 | |||||||||
Operating expenses | (1,194 | ) | (1,024 | ) | (170 | ) | 16.6 | |||||||||
General administrative expenses | (1,103 | ) | (948 | ) | (156 | ) | 16.4 | |||||||||
Personnel | (579 | ) | (499 | ) | (80 | ) | 15.9 | |||||||||
Other administrative expenses | (525 | ) | (448 | ) | (76 | ) | 17.0 | |||||||||
Depreciation and amortisation | (91 | ) | (76 | ) | (15 | ) | 19.4 | |||||||||
Net operating income | 1,266 | 844 | 422 | 50.0 | ||||||||||||
Net loan loss provisions | (429 | ) | (195 | ) | (234 | ) | 119.9 | |||||||||
Other income | 21 | (7 | ) | 28 | — | |||||||||||
Profit before taxes | 858 | 642 | 216 | 33.7 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 1,249 | 1,362 | 1,482 | 1,567 | 1,687 | |||||||||||||||
Income from companies accounted for by the equity method | 3 | 3 | 1 | 2 | 2 | |||||||||||||||
Net fees | 578 | 601 | 609 | 683 | 709 | |||||||||||||||
Insurance activity | — | — | — | — | — | |||||||||||||||
Commercial revenue | 1,829 | 1,966 | 2,092 | 2,253 | 2,399 | |||||||||||||||
Gains (losses) on financial transactions | 58 | 105 | 68 | 1 | 101 | |||||||||||||||
Gross operating income | 1,887 | 2,070 | 2,160 | 2,254 | 2,500 | |||||||||||||||
Income from non-financial services (net) and other operating income | (19 | ) | (24 | ) | (17 | ) | (50 | ) | (40 | ) | ||||||||||
Operating expenses | (1,024 | ) | (1,069 | ) | (1,143 | ) | (1,229 | ) | (1,194 | ) | ||||||||||
General administrative expenses | (948 | ) | (987 | ) | (1,066 | ) | (1,137 | ) | (1,103 | ) | ||||||||||
Personnel | (499 | ) | (529 | ) | (546 | ) | (582 | ) | (579 | ) | ||||||||||
Other administrative expenses | (448 | ) | (458 | ) | (521 | ) | (554 | ) | (525 | ) | ||||||||||
Depreciation and amortisation | (76 | ) | (83 | ) | (76 | ) | (92 | ) | (91 | ) | ||||||||||
Net operating income | 844 | 977 | 1,000 | 975 | 1,266 | |||||||||||||||
Net loan loss provisions | (195 | ) | (250 | ) | (251 | ) | (386 | ) | (429 | ) | ||||||||||
Other income | (7 | ) | (140 | ) | (78 | ) | (75 | ) | 21 | |||||||||||
Profit before taxes (w/o capital gains) | 642 | 587 | 671 | 514 | 858 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 463 | 383 | 80 | 20.9 | ||||||||||||
Income from companies accounted for by the equity method | 0 | 1 | (0 | ) | (59.8 | ) | ||||||||||
Net fees | 231 | 199 | 32 | 16.0 | ||||||||||||
Insurance activity | — | — | — | — | ||||||||||||
Commercial revenue | 694 | 583 | 111 | 19.1 | ||||||||||||
Gains (losses) on financial transactions | 19 | 26 | (8 | ) | (29.0 | ) | ||||||||||
Gross operating income | 713 | 609 | 104 | 17.0 | ||||||||||||
Income from non-financial services (net) and other operating income | (2 | ) | 5 | (6 | ) | — | ||||||||||
Operating expenses | (374 | ) | (356 | ) | (18 | ) | 5.0 | |||||||||
General administrative expenses | (347 | ) | (333 | ) | (14 | ) | 4.2 | |||||||||
Personnel | (169 | ) | (170 | ) | 1 | (0.8 | ) | |||||||||
Other administrative expenses | (178 | ) | (163 | ) | (15 | ) | 9.5 | |||||||||
Depreciation and amortisation | (27 | ) | (23 | ) | (4 | ) | 15.7 | |||||||||
Net operating income | 338 | 258 | 80 | 31.0 | ||||||||||||
Net loan loss provisions | (173 | ) | (99 | ) | (74 | ) | 75.2 | |||||||||
Other income | (2 | ) | 1 | (3 | ) | — | ||||||||||
Profit before taxes | 163 | 160 | 2 | 1.5 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 383 | 368 | 372 | 417 | 463 | |||||||||||||||
Income from companies accounted for by the equity method | 1 | 0 | (0 | ) | 0 | 0 | ||||||||||||||
Net fees | 199 | 201 | 204 | 235 | 231 | |||||||||||||||
Insurance activity | — | — | — | — | — | |||||||||||||||
Commercial revenue | 583 | 570 | 575 | 652 | 694 | |||||||||||||||
Gains (losses) on financial transactions | 26 | 78 | 71 | (13 | ) | 19 | ||||||||||||||
Gross operating income | 609 | 648 | 646 | 639 | 713 | |||||||||||||||
Income from non-financial services (net) and other operating income | 5 | 6 | 9 | (20 | ) | (2 | ) | |||||||||||||
Operating expenses | (356 | ) | (352 | ) | (367 | ) | (376 | ) | (374 | ) | ||||||||||
General administrative expenses | (333 | ) | (330 | ) | (345 | ) | (348 | ) | (347 | ) | ||||||||||
Personnel | (170 | ) | (168 | ) | (165 | ) | (174 | ) | (169 | ) | ||||||||||
Other administrative expenses | (163 | ) | (162 | ) | (179 | ) | (174 | ) | (178 | ) | ||||||||||
Depreciation and amortisation | (23 | ) | (22 | ) | (22 | ) | (28 | ) | (27 | ) | ||||||||||
Net operating income | 258 | 302 | 288 | 243 | 338 | |||||||||||||||
Net loan loss provisions | (99 | ) | (122 | ) | (97 | ) | (149 | ) | (173 | ) | ||||||||||
Other income | 1 | (65 | ) | (47 | ) | (93 | ) | (2 | ) | |||||||||||
Profit before taxes (w/o capital gains) | 160 | 115 | 145 | 1 | 163 | |||||||||||||||
Other information | ||||||||||||||||||||
Spread | 21.72 | 21.25 | 20.08 | 18.87 | 19.25 | |||||||||||||||
Spread loans | 19.19 | 19.20 | 18.18 | 17.20 | 17.63 | |||||||||||||||
Spread deposits | 2.53 | 2.05 | 1.90 | 1.67 | 1.62 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 607 | 461 | 147 | 31.8 | ||||||||||||
Income from companies accounted for by the equity method | 0 | 1 | (1 | ) | (56.2 | ) | ||||||||||
Net fees | 303 | 239 | 63 | 26.5 | ||||||||||||
Insurance activity | — | — | — | — | ||||||||||||
Commercial revenue | 910 | 701 | 209 | 29.9 | ||||||||||||
Gains (losses) on financial transactions | 24 | 32 | (7 | ) | (22.6 | ) | ||||||||||
Gross operating income | 935 | 732 | 202 | 27.6 | ||||||||||||
Income from non-financial services (net) and other operating income | (2 | ) | 5 | (7 | ) | — | ||||||||||
Operating expenses | (490 | ) | (428 | ) | (62 | ) | 14.5 | |||||||||
General administrative expenses | (454 | ) | (400 | ) | (55 | ) | 13.7 | |||||||||
Personnel | (221 | ) | (204 | ) | (17 | ) | 8.2 | |||||||||
Other administrative expenses | (233 | ) | (195 | ) | (38 | ) | 19.4 | |||||||||
Depreciation and amortisation | (35 | ) | (28 | ) | (7 | ) | 26.1 | |||||||||
Net operating income | 443 | 310 | 133 | 42.8 | ||||||||||||
Net loan loss provisions | (227 | ) | (119 | ) | (108 | ) | 91.1 | |||||||||
Other income | (3 | ) | 1 | (4 | ) | — | ||||||||||
Profit before taxes | 213 | 193 | 21 | 10.7 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 461 | 463 | 473 | 535 | 607 | |||||||||||||||
Income from companies accounted for by the equity method | 1 | 1 | (0 | ) | 0 | 0 | ||||||||||||||
Net fees | 239 | 252 | 259 | 301 | 303 | |||||||||||||||
Insurance activity | — | — | — | — | — | |||||||||||||||
Commercial revenue | 701 | 715 | 732 | 836 | 910 | |||||||||||||||
Gains (losses) on financial transactions | 32 | 97 | 90 | (15 | ) | 24 | ||||||||||||||
Gross operating income | 732 | 812 | 822 | 821 | 935 | |||||||||||||||
Income from non-financial services (net) and other operating income | 5 | 7 | 11 | (25 | ) | (2 | ) | |||||||||||||
Operating expenses | (428 | ) | (442 | ) | (466 | ) | (482 | ) | (490 | ) | ||||||||||
General administrative expenses | (400 | ) | (414 | ) | (438 | ) | (446 | ) | (454 | ) | ||||||||||
Personnel | (204 | ) | (211 | ) | (211 | ) | (223 | ) | (221 | ) | ||||||||||
Other administrative expenses | (195 | ) | (203 | ) | (228 | ) | (224 | ) | (233 | ) | ||||||||||
Depreciation and amortisation | (28 | ) | (28 | ) | (28 | ) | (35 | ) | (35 | ) | ||||||||||
Net operating income | 310 | 377 | 367 | 314 | 443 | |||||||||||||||
Net loan loss provisions | (119 | ) | (153 | ) | (123 | ) | (190 | ) | (227 | ) | ||||||||||
Other income | 1 | (79 | ) | (59 | ) | (118 | ) | (3 | ) | |||||||||||
Profit before taxes (w/o capital gains) | 193 | 145 | 184 | 6 | 213 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 1,279 | 1,010 | 270 | 26.7 | ||||||||||||
Income from companies accounted for by the equity method | 1 | 2 | (1 | ) | (57.9 | ) | ||||||||||
Net fees | 638 | 525 | 113 | 21.5 | ||||||||||||
Insurance activity | — | — | — | — | ||||||||||||
Commercial revenue | 1,918 | 1,536 | 381 | 24.8 | ||||||||||||
Gains (losses) on financial transactions | 52 | 69 | (18 | ) | (25.6 | ) | ||||||||||
Gross operating income | 1,969 | 1,606 | 364 | 22.6 | ||||||||||||
Income from non-financial services (net) and other operating income | (4 | ) | 12 | (16 | ) | — | ||||||||||
Operating expenses | (1,032 | ) | (938 | ) | (94 | ) | 10.0 | |||||||||
General administrative expenses | (957 | ) | (876 | ) | (81 | ) | 9.2 | |||||||||
Personnel | (466 | ) | (448 | ) | (18 | ) | 3.9 | |||||||||
Other administrative expenses | (492 | ) | (428 | ) | (63 | ) | 14.8 | |||||||||
Depreciation and amortisation | (74 | ) | (61 | ) | (13 | ) | 21.2 | |||||||||
Net operating income | 933 | 680 | 253 | 37.3 | ||||||||||||
Net loan loss provisions | (477 | ) | (260 | ) | (217 | ) | 83.6 | |||||||||
Other income | (6 | ) | 3 | (9 | ) | — | ||||||||||
Profit before taxes | 450 | 423 | 27 | 6.4 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 1,010 | 1,012 | 1,027 | 1,153 | 1,279 | |||||||||||||||
Income from companies accounted for by the equity method | 2 | 1 | (0 | ) | 1 | 1 | ||||||||||||||
Net fees | 525 | 551 | 562 | 648 | 638 | |||||||||||||||
Insurance activity | — | — | — | — | — | |||||||||||||||
Commercial revenue | 1,536 | 1,564 | 1,589 | 1,802 | 1,918 | |||||||||||||||
Gains (losses) on financial transactions | 69 | 212 | 195 | (34 | ) | 52 | ||||||||||||||
Gross operating income | 1,606 | 1,776 | 1,784 | 1,768 | 1,969 | |||||||||||||||
Income from non-financial services (net) and other operating income | 12 | 16 | 24 | (55 | ) | (4 | ) | |||||||||||||
Operating expenses | (938 | ) | (967 | ) | (1,012 | ) | (1,039 | ) | (1,032 | ) | ||||||||||
General administrative expenses | (876 | ) | (905 | ) | (952 | ) | (962 | ) | (957 | ) | ||||||||||
Personnel | (448 | ) | (461 | ) | (457 | ) | (480 | ) | (466 | ) | ||||||||||
Other administrative expenses | (428 | ) | (444 | ) | (495 | ) | (482 | ) | (492 | ) | ||||||||||
Depreciation and amortisation | (61 | ) | (61 | ) | (60 | ) | (76 | ) | (74 | ) | ||||||||||
Net operating income | 680 | 826 | 796 | 675 | 933 | |||||||||||||||
Net loan loss provisions | (260 | ) | (335 | ) | (267 | ) | (411 | ) | (477 | ) | ||||||||||
Other income | 3 | (174 | ) | (129 | ) | (255 | ) | (6 | ) | |||||||||||
Profit before taxes (w/o capital gains) | 423 | 317 | 400 | 9 | 450 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 374 | 280 | 94 | 33.6 | ||||||||||||
Income from companies accounted for by the equity method | 0 | — | 0 | — | ||||||||||||
Net fees | 107 | 103 | 4 | 4.3 | ||||||||||||
Insurance activity | — | — | — | — | ||||||||||||
Commercial revenue | 481 | 382 | 99 | 25.8 | ||||||||||||
Gains (losses) on financial transactions | 33 | 8 | 25 | 305.0 | ||||||||||||
Gross operating income | 514 | 390 | 124 | 31.6 | ||||||||||||
Income from non-financial services (net) and other operating income | (15 | ) | (11 | ) | (4 | ) | 33.2 | |||||||||
Operating expenses | (200 | ) | (198 | ) | (2 | ) | 0.9 | |||||||||
General administrative expenses | (183 | ) | (183 | ) | 0 | (0.2 | ) | |||||||||
Personnel | (93 | ) | (91 | ) | (2 | ) | 2.0 | |||||||||
Other administrative expenses | (90 | ) | (92 | ) | 2 | (2.4 | ) | |||||||||
Depreciation and amortisation | (17 | ) | (15 | ) | (2 | ) | 14.3 | |||||||||
Net operating income | 299 | 181 | 118 | 65.1 | ||||||||||||
Net loan loss provisions | (92 | ) | (26 | ) | (65 | ) | 247.1 | |||||||||
Other income | (2 | ) | (14 | ) | 12 | (82.8 | ) | |||||||||
Profit before taxes | 205 | 141 | 64 | 45.8 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 280 | 275 | 341 | 377 | 374 | |||||||||||||||
Income from companies accounted for by the equity method | — | — | — | (0 | ) | 0 | ||||||||||||||
Net fees | 103 | 95 | 91 | 105 | 107 | |||||||||||||||
Insurance activity | — | — | — | — | — | |||||||||||||||
Commercial revenue | 382 | 370 | 432 | 482 | 481 | |||||||||||||||
Gains (losses) on financial transactions | 8 | 13 | (7 | ) | 1 | 33 | ||||||||||||||
Gross operating income | 390 | 383 | 425 | 483 | 514 | |||||||||||||||
Income from non-financial services (net) and other operating income | (11 | ) | (15 | ) | (12 | ) | (13 | ) | (15 | ) | ||||||||||
Operating expenses | (198 | ) | (184 | ) | (210 | ) | (234 | ) | (200 | ) | ||||||||||
General administrative expenses | (183 | ) | (171 | ) | (194 | ) | (216 | ) | (183 | ) | ||||||||||
Personnel | (91 | ) | (84 | ) | (89 | ) | (92 | ) | (93 | ) | ||||||||||
Other administrative expenses | (92 | ) | (87 | ) | (105 | ) | (124 | ) | (90 | ) | ||||||||||
Depreciation and amortisation | (15 | ) | (14 | ) | (16 | ) | (18 | ) | (17 | ) | ||||||||||
Net operating income | 181 | 183 | 203 | 237 | 299 | |||||||||||||||
Net loan loss provisions | (26 | ) | (36 | ) | (44 | ) | (91 | ) | (92 | ) | ||||||||||
Other income | (14 | ) | (1 | ) | (5 | ) | 21 | (2 | ) | |||||||||||
Profit before taxes (w/o capital gains) | 141 | 146 | 154 | 167 | 205 | |||||||||||||||
Other information | ||||||||||||||||||||
Spread | 11.62 | 12.21 | 13.64 | 14.20 | 14.39 | |||||||||||||||
Spread loans | 8.13 | 9.05 | 10.34 | 10.72 | 10.84 | |||||||||||||||
Spread deposits | 3.49 | 3.16 | 3.30 | 3.48 | 3.55 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 490 | 336 | 154 | 45.7 | ||||||||||||
Income from companies accounted for by the equity method | 0 | — | 0 | — | ||||||||||||
Net fees | 140 | 123 | 17 | 13.8 | ||||||||||||
Insurance activity | — | — | — | — | ||||||||||||
Commercial revenue | 630 | 459 | 171 | 37.2 | ||||||||||||
Gains (losses) on financial transactions | 44 | 10 | 34 | 341.6 | ||||||||||||
Gross operating income | 673 | 469 | 204 | 43.6 | ||||||||||||
Income from non-financial services (net) and other operating income | (19 | ) | (13 | ) | (6 | ) | 45.3 | |||||||||
Operating expenses | (262 | ) | (238 | ) | (24 | ) | 10.0 | |||||||||
General administrative expenses | (240 | ) | (220 | ) | (19 | ) | 8.8 | |||||||||
Personnel | (121 | ) | (109 | ) | (12 | ) | 11.3 | |||||||||
Other administrative expenses | (118 | ) | (111 | ) | (7 | ) | 6.5 | |||||||||
Depreciation and amortisation | (22 | ) | (18 | ) | (4 | ) | 24.6 | |||||||||
Net operating income | 393 | 218 | 174 | 80.0 | ||||||||||||
Net loan loss provisions | (121 | ) | (32 | ) | (89 | ) | 278.5 | |||||||||
Other income | (3 | ) | (17 | ) | 14 | (81.3 | ) | |||||||||
Profit before taxes | 269 | 169 | 100 | 58.9 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 336 | 345 | 432 | 481 | 490 | |||||||||||||||
Income from companies accounted for by the equity method | — | — | — | (0 | ) | 0 | ||||||||||||||
Net fees | 123 | 119 | 116 | 135 | 140 | |||||||||||||||
Insurance activity | — | — | — | — | — | |||||||||||||||
Commercial revenue | 459 | 464 | 548 | 616 | 630 | |||||||||||||||
Gains (losses) on financial transactions | 10 | 16 | (8 | ) | 2 | 44 | ||||||||||||||
Gross operating income | 469 | 480 | 539 | 618 | 673 | |||||||||||||||
Income from non-financial services (net) and other operating income | (13 | ) | (18 | ) | (15 | ) | (16 | ) | (19 | ) | ||||||||||
Operating expenses | (238 | ) | (232 | ) | (266 | ) | (299 | ) | (262 | ) | ||||||||||
General administrative expenses | (220 | ) | (214 | ) | (246 | ) | (277 | ) | (240 | ) | ||||||||||
Personnel | (109 | ) | (106 | ) | (113 | ) | (118 | ) | (121 | ) | ||||||||||
Other administrative expenses | (111 | ) | (109 | ) | (133 | ) | (158 | ) | (118 | ) | ||||||||||
Depreciation and amortisation | (18 | ) | (17 | ) | (20 | ) | (23 | ) | (22 | ) | ||||||||||
Net operating income | 218 | 230 | 258 | 303 | 393 | |||||||||||||||
Net loan loss provisions | (32 | ) | (45 | ) | (56 | ) | (115 | ) | (121 | ) | ||||||||||
Other income | (17 | ) | (2 | ) | (6 | ) | 26 | (3 | ) | |||||||||||
Profit before taxes (w/o capital gains) | 169 | 183 | 196 | 214 | 269 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 5,395 | 3,562 | 1,833 | 51.5 | ||||||||||||
Income from companies accounted for by the equity method | 0 | — | 0 | — | ||||||||||||
Net fees | 1,545 | 1,306 | 238 | 18.3 | ||||||||||||
Insurance activity | — | — | — | — | ||||||||||||
Commercial revenue | 6,940 | 4,868 | 2,072 | 42.6 | ||||||||||||
Gains (losses) on financial transactions | 479 | 104 | 375 | 359.0 | ||||||||||||
Gross operating income | 7,419 | 4,972 | 2,447 | 49.2 | ||||||||||||
Income from non-financial services (net) and other operating income | (214 | ) | (142 | ) | (72 | ) | 51.0 | |||||||||
Operating expenses | (2,881 | ) | (2,519 | ) | (362 | ) | 14.4 | |||||||||
General administrative expenses | (2,639 | ) | (2,332 | ) | (306 | ) | 13.1 | |||||||||
Personnel | (1,336 | ) | (1,155 | ) | (181 | ) | 15.7 | |||||||||
Other administrative expenses | (1,303 | ) | (1,177 | ) | (125 | ) | 10.7 | |||||||||
Depreciation and amortisation | (242 | ) | (187 | ) | (55 | ) | 29.6 | |||||||||
Net operating income | 4,324 | 2,311 | 2,013 | 87.1 | ||||||||||||
Net loan loss provisions | (1,328 | ) | (338 | ) | (990 | ) | 293.4 | |||||||||
Other income | (35 | ) | (181 | ) | 146 | (80.6 | ) | |||||||||
Profit before taxes | 2,961 | 1,792 | 1,169 | 65.2 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 3,562 | 3,841 | 4,717 | 5,244 | 5,395 | |||||||||||||||
Income from companies accounted for by the equity method | — | — | — | (0 | ) | 0 | ||||||||||||||
Net fees | 1,306 | 1,328 | 1,274 | 1,470 | 1,545 | |||||||||||||||
Insurance activity | — | — | — | — | — | |||||||||||||||
Commercial revenue | 4,868 | 5,169 | 5,991 | 6,715 | 6,940 | |||||||||||||||
Gains (losses) on financial transactions | 104 | 178 | (92 | ) | 21 | 479 | ||||||||||||||
Gross operating income | 4,972 | 5,348 | 5,899 | 6,735 | 7,419 | |||||||||||||||
Income from non-financial services (net) and other operating income | (142 | ) | (204 | ) | (166 | ) | (176 | ) | (214 | ) | ||||||||||
Operating expenses | (2,519 | ) | (2,584 | ) | (2,913 | ) | (3,262 | ) | (2,881 | ) | ||||||||||
General administrative expenses | (2,332 | ) | (2,391 | ) | (2,689 | ) | (3,013 | ) | (2,639 | ) | ||||||||||
Personnel | (1,155 | ) | (1,179 | ) | (1,239 | ) | (1,287 | ) | (1,336 | ) | ||||||||||
Other administrative expenses | (1,177 | ) | (1,212 | ) | (1,450 | ) | (1,726 | ) | (1,303 | ) | ||||||||||
Depreciation and amortisation | (187 | ) | (192 | ) | (224 | ) | (249 | ) | (242 | ) | ||||||||||
Net operating income | 2,311 | 2,560 | 2,820 | 3,298 | 4,324 | |||||||||||||||
Net loan loss provisions | (338 | ) | (501 | ) | (607 | ) | (1,248 | ) | (1,328 | ) | ||||||||||
Other income | (181 | ) | (24 | ) | (68 | ) | 280 | (35 | ) | |||||||||||
Profit before taxes (w/o capital gains) | 1,792 | 2,035 | 2,145 | 2,330 | 2,961 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 202 | 186 | 17 | 9.1 | ||||||||||||
Income from companies accounted for by the equity method | (0 | ) | 0 | (1 | ) | — | ||||||||||
Net fees | 62 | 60 | 2 | 3.4 | ||||||||||||
Insurance activity | — | — | — | — | ||||||||||||
Commercial revenue | 265 | 246 | 18 | 7.4 | ||||||||||||
Gains (losses) on financial transactions | 23 | 10 | 13 | 135.3 | ||||||||||||
Gross operating income | 288 | 256 | 32 | 12.4 | ||||||||||||
Income from non-financial services (net) and other operating income | (5 | ) | (3 | ) | (2 | ) | 94.2 | |||||||||
Operating expenses | (118 | ) | (114 | ) | (4 | ) | 3.2 | |||||||||
General administrative expenses | (107 | ) | (102 | ) | (4 | ) | 4.3 | |||||||||
Personnel | (65 | ) | (61 | ) | (4 | ) | 6.8 | |||||||||
Other administrative expenses | (41 | ) | (41 | ) | (0 | ) | 0.7 | |||||||||
Depreciation and amortisation | (11 | ) | (12 | ) | 1 | (6.4 | ) | |||||||||
Net operating income | 165 | 140 | 26 | 18.4 | ||||||||||||
Net loan loss provisions | (32 | ) | (28 | ) | (3 | ) | 11.8 | |||||||||
Other income | 12 | (2 | ) | 13 | — | |||||||||||
Profit before taxes | 145 | 110 | 36 | 32.5 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 186 | 231 | 236 | 188 | 202 | |||||||||||||||
Income from companies accounted for by the equity method | 0 | 0 | 0 | 0 | (0 | ) | ||||||||||||||
Net fees | 60 | 60 | 60 | 60 | 62 | |||||||||||||||
Insurance activity | — | — | — | — | — | |||||||||||||||
Commercial revenue | 246 | 292 | 296 | 248 | 265 | |||||||||||||||
Gains (losses) on financial transactions | 10 | (12 | ) | (12 | ) | 11 | 23 | |||||||||||||
Gross operating income | 256 | 279 | 284 | 259 | 288 | |||||||||||||||
Income from non-financial services (net) and other operating income | (3 | ) | (4 | ) | (2 | ) | (3 | ) | (5 | ) | ||||||||||
Operating expenses | (114 | ) | (123 | ) | (123 | ) | (134 | ) | (118 | ) | ||||||||||
General administrative expenses | (102 | ) | (105 | ) | (115 | ) | (125 | ) | (107 | ) | ||||||||||
Personnel | (61 | ) | (69 | ) | (70 | ) | (85 | ) | (65 | ) | ||||||||||
Other administrative expenses | (41 | ) | (37 | ) | (46 | ) | (40 | ) | (41 | ) | ||||||||||
Depreciation and amortisation | (12 | ) | (18 | ) | (7 | ) | (9 | ) | (11 | ) | ||||||||||
Net operating income | 140 | 153 | 160 | 122 | 165 | |||||||||||||||
Net loan loss provisions | (28 | ) | (34 | ) | (26 | ) | (24 | ) | (32 | ) | ||||||||||
Other income | (2 | ) | (18 | ) | (29 | ) | 40 | 12 | ||||||||||||
Profit before taxes (w/o capital gains) | 110 | 101 | 105 | 138 | 145 | |||||||||||||||
Other information | ||||||||||||||||||||
Spread | 6.86 | 7.11 | 6.97 | 6.94 | 7.28 | |||||||||||||||
Spread loans | 5.07 | 5.07 | 4.95 | 4.91 | 5.08 | |||||||||||||||
Spread deposits | 1.79 | 2.04 | 2.02 | 2.03 | 2.20 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 265 | 223 | 42 | 18.9 | ||||||||||||
Income from companies accounted for by the equity method | (0 | ) | 0 | (1 | ) | — | ||||||||||
Net fees | 82 | 73 | 9 | 12.7 | ||||||||||||
Insurance activity | — | — | — | — | ||||||||||||
Commercial revenue | 347 | 296 | 51 | 17.1 | ||||||||||||
Gains (losses) on financial transactions | 31 | 12 | 19 | 156.6 | ||||||||||||
Gross operating income | 377 | 308 | 69 | 22.5 | ||||||||||||
Income from non-financial services (net) and other operating income | (6 | ) | (3 | ) | (3 | ) | 111.8 | |||||||||
Operating expenses | (154 | ) | (137 | ) | (17 | ) | 12.5 | |||||||||
General administrative expenses | (140 | ) | (123 | ) | (17 | ) | 13.8 | |||||||||
Personnel | (86 | ) | (73 | ) | (12 | ) | 16.5 | |||||||||
Other administrative expenses | (54 | ) | (49 | ) | (5 | ) | 9.8 | |||||||||
Depreciation and amortisation | (15 | ) | (14 | ) | (0 | ) | 2.1 | |||||||||
Net operating income | 217 | 168 | 49 | 29.1 | ||||||||||||
Net loan loss provisions | (41 | ) | (34 | ) | (7 | ) | 21.9 | |||||||||
Other income | 15 | (2 | ) | 17 | — | |||||||||||
Profit before taxes | 190 | 132 | 59 | 44.5 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 223 | 289 | 300 | 242 | 265 | |||||||||||||||
Income from companies accounted for by the equity method | 0 | 1 | 0 | 0 | (0 | ) | ||||||||||||||
Net fees | 73 | 75 | 76 | 77 | 82 | |||||||||||||||
Insurance activity | — | — | — | — | — | |||||||||||||||
Commercial revenue | 296 | 365 | 376 | 320 | 347 | |||||||||||||||
Gains (losses) on financial transactions | 12 | (15 | ) | (15 | ) | 14 | 31 | |||||||||||||
Gross operating income | 308 | 350 | 362 | 334 | 377 | |||||||||||||||
Income from non-financial services (net) and other operating income | (3 | ) | (4 | ) | (3 | ) | (4 | ) | (6 | ) | ||||||||||
Operating expenses | (137 | ) | (154 | ) | (156 | ) | (171 | ) | (154 | ) | ||||||||||
General administrative expenses | (123 | ) | (132 | ) | (147 | ) | (160 | ) | (140 | ) | ||||||||||
Personnel | (73 | ) | (86 | ) | (89 | ) | (109 | ) | (86 | ) | ||||||||||
Other administrative expenses | (49 | ) | (46 | ) | (58 | ) | (51 | ) | (54 | ) | ||||||||||
Depreciation and amortisation | (14 | ) | (22 | ) | (10 | ) | (11 | ) | (15 | ) | ||||||||||
Net operating income | 168 | 191 | 203 | 158 | 217 | |||||||||||||||
Net loan loss provisions | (34 | ) | (43 | ) | (33 | ) | (31 | ) | (41 | ) | ||||||||||
Other income | (2 | ) | (22 | ) | (36 | ) | 50 | 15 | ||||||||||||
Profit before taxes (w/o capital gains) | 132 | 127 | 133 | 177 | 190 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 143,353 | 117,431 | 25,923 | 22.1 | ||||||||||||
Income from companies accounted for by the equity method | (168 | ) | 236 | (404 | ) | — | ||||||||||
Net fees | 44,236 | 38,227 | 6,009 | 15.7 | ||||||||||||
Insurance activity | — | — | — | — | ||||||||||||
Commercial revenue | 187,422 | 155,894 | 31,528 | 20.2 | ||||||||||||
Gains (losses) on financial transactions | 16,536 | 6,277 | 10,258 | 163.4 | ||||||||||||
Gross operating income | 203,958 | 162,171 | 41,787 | 25.8 | ||||||||||||
Income from non-financial services (net) and other operating income | (3,456 | ) | (1,590 | ) | (1,866 | ) | 117.4 | |||||||||
Operating expenses | (83,450 | ) | (72,230 | ) | (11,220 | ) | 15.5 | |||||||||
General administrative expenses | (75,475 | ) | (64,619 | ) | (10,856 | ) | 16.8 | |||||||||
Personnel | (46,211 | ) | (38,647 | ) | (7,564 | ) | 19.6 | |||||||||
Other administrative expenses | (29,264 | ) | (25,972 | ) | (3,292 | ) | 12.7 | |||||||||
Depreciation and amortisation | (7,975 | ) | (7,611 | ) | (364 | ) | 4.8 | |||||||||
Net operating income | 117,051 | 88,351 | 28,700 | 32.5 | ||||||||||||
Net loan loss provisions | (22,413 | ) | (17,906 | ) | (4,507 | ) | 25.2 | |||||||||
Other income | 8,182 | (1,104 | ) | 9,286 | — | |||||||||||
Profit before taxes | 102,820 | 69,340 | 33,479 | 48.3 |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 117,431 | 152,198 | 161,148 | 127,973 | 143,353 | |||||||||||||||
Income from companies accounted for by the equity method | 236 | 303 | 160 | 56 | (168 | ) | ||||||||||||||
Net fees | 38,227 | 39,794 | 41,136 | 40,955 | 44,236 | |||||||||||||||
Insurance activity | — | — | — | — | — | |||||||||||||||
Commercial revenue | 155,894 | 192,295 | 202,445 | 168,984 | 187,422 | |||||||||||||||
Gains (losses) on financial transactions | 6,277 | (7,810 | ) | (7,874 | ) | 7,499 | 16,536 | |||||||||||||
Gross operating income | 162,171 | 184,485 | 194,571 | 176,482 | 203,958 | |||||||||||||||
Income from non-financial services (net) and other operating income | (1,590 | ) | (2,366 | ) | (1,382 | ) | (2,245 | ) | (3,456 | ) | ||||||||||
Operating expenses | (72,230 | ) | (81,170 | ) | (84,074 | ) | (90,722 | ) | (83,450 | ) | ||||||||||
General administrative expenses | (64,619 | ) | (69,538 | ) | (78,807 | ) | (84,661 | ) | (75,475 | ) | ||||||||||
Personnel | (38,647 | ) | (45,293 | ) | (47,782 | ) | (57,519 | ) | (46,211 | ) | ||||||||||
Other administrative expenses | (25,972 | ) | (24,245 | ) | (31,025 | ) | (27,142 | ) | (29,264 | ) | ||||||||||
Depreciation and amortisation | (7,611 | ) | (11,632 | ) | (5,267 | ) | (6,062 | ) | (7,975 | ) | ||||||||||
Net operating income | 88,351 | 100,949 | 109,115 | 83,515 | 117,051 | |||||||||||||||
Net loan loss provisions | (17,906 | ) | (22,545 | ) | (17,971 | ) | (16,512 | ) | (22,413 | ) | ||||||||||
Other income | (1,104 | ) | (11,559 | ) | (19,377 | ) | 26,507 | 8,182 | ||||||||||||
Profit before taxes (w/o capital gains) | 69,340 | 66,845 | 71,767 | 93,509 | 102,820 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 325 | 284 | 41 | 14.6 | ||||||||||||
Income from companies accounted for by the equity method | — | — | — | — | ||||||||||||
Net fees | 325 | 156 | 169 | 108.3 | ||||||||||||
Insurance activity | — | — | — | — | ||||||||||||
Commercial revenue | 650 | 440 | 210 | 47.8 | ||||||||||||
Gains (losses) on financial transactions | 281 | 237 | 44 | 18.6 | ||||||||||||
Gross operating income | 931 | 677 | 254 | 37.6 | ||||||||||||
Income from non-financial services (net) and other operating income | (7 | ) | (9 | ) | 2 | (20.6 | ) | |||||||||
Operating expenses | (207 | ) | (187 | ) | (20 | ) | 10.9 | |||||||||
General administrative expenses | (186 | ) | (169 | ) | (17 | ) | 10.0 | |||||||||
Personnel | (116 | ) | (106 | ) | (10 | ) | 9.8 | |||||||||
Other administrative expenses | (70 | ) | (63 | ) | (7 | ) | 10.3 | |||||||||
Depreciation and amortisation | (21 | ) | (17 | ) | (3 | ) | 20.1 | |||||||||
Net operating income | 717 | 482 | 236 | 48.9 | ||||||||||||
Net loan loss provisions | 44 | (47 | ) | 91 | — | |||||||||||
Other income | 34 | 37 | (4 | ) | (10.0 | ) | ||||||||||
Profit before taxes | 795 | 472 | 323 | 68.5 | ||||||||||||
Variation | ||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | |||||||||||||
Business volumes | ||||||||||||||||
Total assets | 154,173 | 142,395 | 11,778 | 8.3 | ||||||||||||
Loans and credits | 45,508 | 34,161 | 11,346 | 33.2 | ||||||||||||
Customer deposits | 42,117 | 46,520 | (4,403 | ) | (9.5 | ) |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 284 | 320 | 358 | 279 | 325 | |||||||||||||||
Income from companies accounted for by the equity method | — | — | — | — | — | |||||||||||||||
Net fees | 156 | 143 | 196 | 151 | 325 | |||||||||||||||
Insurance activity | — | — | — | — | — | |||||||||||||||
Commercial revenue | 440 | 463 | 554 | 430 | 650 | |||||||||||||||
Gains (losses) on financial transactions | 237 | 5 | 256 | 191 | 281 | |||||||||||||||
Gross operating income | 677 | 468 | 810 | 622 | 931 | |||||||||||||||
Income from non-financial services (net) and other operating income | (9 | ) | (8 | ) | (8 | ) | (9 | ) | (7 | ) | ||||||||||
Operating expenses | (187 | ) | (178 | ) | (187 | ) | (215 | ) | (207 | ) | ||||||||||
General administrative expenses | (169 | ) | (161 | ) | (172 | ) | (196 | ) | (186 | ) | ||||||||||
Personnel | (106 | ) | (102 | ) | (107 | ) | (132 | ) | (116 | ) | ||||||||||
Other administrative expenses | (63 | ) | (60 | ) | (64 | ) | (65 | ) | �� | (70 | ) | |||||||||
Depreciation and amortisation | (17 | ) | (16 | ) | (16 | ) | (19 | ) | (21 | ) | ||||||||||
Net operating income | 482 | 282 | 615 | 398 | 717 | |||||||||||||||
Net loan loss provisions | (47 | ) | (65 | ) | (137 | ) | (58 | ) | 44 | |||||||||||
Other income | 37 | 16 | (44 | ) | (53 | ) | 34 | |||||||||||||
Profit before taxes (w/o capital gains) | 472 | 233 | 433 | 286 | 795 | |||||||||||||||
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Business volumes | ||||||||||||||||||||
Total assets | 142,395 | 140,837 | 146,675 | 153,005 | 154,173 | |||||||||||||||
Loans and credits | 34,161 | 36,087 | 44,510 | 47,948 | 45,508 | |||||||||||||||
Customer deposits | 46,520 | 43,242 | 47,188 | 42,194 | 42,117 |
Variation | ||||||||||||||||
Q1 ’07 | Q1 ’06 | Amount | % | |||||||||||||
Income statement | ||||||||||||||||
Net interest income | 12 | 9 | 3 | 35.1 | ||||||||||||
Income from companies accounted for by the equity method | — | — | — | — | ||||||||||||
Net fees | 154 | 156 | (3 | ) | (1.7 | ) | ||||||||||
Insurance activity | 96 | 66 | 30 | 45.0 | ||||||||||||
Commercial revenue | 262 | 231 | 30 | 13.0 | ||||||||||||
Gains (losses) on financial transactions | 6 | 12 | (6 | ) | (51.3 | ) | ||||||||||
Gross operating income | 268 | 244 | 24 | 9.8 | ||||||||||||
Income from non-financial services (net) and other operating income | (0 | ) | (0 | ) | 0 | (91.7 | ) | |||||||||
Operating expenses | (95 | ) | (84 | ) | (11 | ) | 13.6 | |||||||||
General administrative expenses | (88 | ) | (80 | ) | (9 | ) | 11.0 | |||||||||
Personnel | (48 | ) | (45 | ) | (2 | ) | 5.3 | |||||||||
Other administrative expenses | (41 | ) | (34 | ) | (6 | ) | 18.6 | |||||||||
Depreciation and amortisation | (7 | ) | (4 | ) | (3 | ) | 59.2 | |||||||||
Net operating income | 172 | 159 | 13 | 8.0 | ||||||||||||
Net loan loss provisions | (0 | ) | 0 | (0 | ) | — | ||||||||||
Other income | (5 | ) | (2 | ) | (4 | ) | 204.4 | |||||||||
Profit before taxes | 167 | 158 | 9 | 5.7 | ||||||||||||
Variation | ||||||||||||||||
31.03.07 | 31.03.06 | Amount | % | |||||||||||||
Business volumes | ||||||||||||||||
Total assets | 17,796 | 9,835 | 7,961 | 80.9 | ||||||||||||
Loans and credits | 142 | 162 | (19 | ) | (12.0 | ) | ||||||||||
Customer deposits | 0 | 1 | (1 | ) | (99.3 | ) |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | 9 | 11 | 11 | 12 | 12 | |||||||||||||||
Income from companies accounted for by the equity method | — | — | — | — | — | |||||||||||||||
Net fees | 156 | 149 | 152 | 165 | 154 | |||||||||||||||
Insurance activity | 66 | 79 | 72 | 85 | 96 | |||||||||||||||
Commercial revenue | 231 | 239 | 234 | 262 | 262 | |||||||||||||||
Gains (losses) on financial transactions | 12 | (3 | ) | 10 | 15 | 6 | ||||||||||||||
Gross operating income | 244 | 236 | 245 | 277 | 268 | |||||||||||||||
Income from non-financial services (net) and other operating income | (0 | ) | 0 | 0 | (1 | ) | (0 | ) | ||||||||||||
Operating expenses | (84 | ) | (83 | ) | (85 | ) | (109 | ) | (95 | ) | ||||||||||
General administrative expenses | (80 | ) | (79 | ) | (83 | ) | (99 | ) | (88 | ) | ||||||||||
Personnel | (45 | ) | (45 | ) | (45 | ) | (51 | ) | (48 | ) | ||||||||||
Other administrative expenses | (34 | ) | (34 | ) | (39 | ) | (48 | ) | (41 | ) | ||||||||||
Depreciation and amortisation | (4 | ) | (4 | ) | (2 | ) | (10 | ) | (7 | ) | ||||||||||
Net operating income | 159 | 153 | 159 | 166 | 172 | |||||||||||||||
Net loan loss provisions | 0 | (0 | ) | 0 | 0 | (0 | ) | |||||||||||||
Other income | (2 | ) | (3 | ) | (2 | ) | (5 | ) | (5 | ) | ||||||||||
Profit before taxes (w/o capital gains) | 158 | 150 | 157 | 162 | 167 | |||||||||||||||
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Business volumes | ||||||||||||||||||||
Total assets | 9,835 | 10,337 | 11,476 | 15,667 | 17,796 | |||||||||||||||
Loans and credits | 162 | 158 | 164 | 171 | 142 | |||||||||||||||
Customer deposits | 1 | 2 | 1 | 0 | 0 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Continental Europe* | 0.84 | 0.80 | 0.81 | 0.80 | 0.80 | |||||||||||||||
Santander Branch Network | 0.56 | 0.55 | 0.57 | 0.57 | 0.56 | |||||||||||||||
Banesto | 0.46 | 0.45 | 0.43 | 0.42 | 0.42 | |||||||||||||||
Santander Consumer Finance | 2.41 | 2.46 | 2.57 | 2.57 | 2.66 | |||||||||||||||
Portugal* | 1.57 | 1.34 | 1.38 | 1.25 | 1.16 | |||||||||||||||
United Kingdom (Abbey) | 0.64 | 0.63 | 0.64 | 0.60 | 0.55 | |||||||||||||||
Latin America | 1.71 | 1.77 | 1.65 | 1.38 | 1.50 | |||||||||||||||
Brazil | 2.76 | 3.06 | 2.82 | 2.38 | 2.62 | |||||||||||||||
Mexico | 0.69 | 0.89 | 0.90 | 0.64 | 0.83 | |||||||||||||||
Chile | 2.15 | 1.90 | 1.78 | 1.59 | 1.70 | |||||||||||||||
Operating Areas* | 0.88 | 0.85 | 0.84 | 0.80 | 0.80 | |||||||||||||||
Spain | 0.56 | 0.54 | 0.55 | 0.53 | 0.51 |
(**).- | 2006 data were drawn up on the basis of 2007 information |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Continental Europe* | 221.71 | 227.60 | 224.57 | 223.80 | 202.49 | |||||||||||||||
Santander Branch Network | 299.75 | 313.42 | 298.84 | 295.80 | 298.79 | |||||||||||||||
Banesto | 392.62 | 393.44 | 399.94 | 396.13 | 393.19 | |||||||||||||||
Santander Consumer Finance | 124.43 | 119.46 | 113.83 | 114.10 | 114.43 | |||||||||||||||
Portugal* | 117.28 | 126.90 | 127.76 | 129.67 | 127.55 | |||||||||||||||
United Kingdom (Abbey) | 79.32 | 81.98 | 84.18 | 85.88 | 81.38 | |||||||||||||||
Latin America | 183.37 | 167.53 | 166.55 | 167.29 | 160.00 | |||||||||||||||
Brazil | 126.24 | 109.28 | 106.61 | 102.78 | 98.77 | |||||||||||||||
Mexico | 335.91 | 251.48 | 240.83 | 279.19 | 241.35 | |||||||||||||||
Chile | 165.07 | 174.22 | 168.01 | 152.62 | 147.57 | |||||||||||||||
Operating Areas* | 175.07 | 175.01 | 175.03 | 176.49 | 164.23 | |||||||||||||||
Spain | 322.28 | 330.79 | 325.24 | 328.37 | 292.15 |
(**).- | 2006 data were drawn up on the basis of 2007 information |
Q1 ’06 | Q2 ’06 | Q3 ’06 | Q4 ’06 | Q1 ’07 | ||||||||||||||||
Santander Branch Network | ||||||||||||||||||||
Spread loans | 1.39 | 1.29 | 1.31 | 1.28 | 1.25 | |||||||||||||||
Spread deposits | 1.71 | 1.87 | 1.95 | 2.16 | 2.22 | |||||||||||||||
SUM | 3.10 | 3.16 | 3.26 | 3.44 | 3.47 | |||||||||||||||
Retail Banking Banesto | ||||||||||||||||||||
Spread loans | 1.38 | 1.36 | 1.30 | 1.31 | 1.32 | |||||||||||||||
Spread deposits | 1.54 | 1.64 | 1.83 | 1.92 | 2.03 | |||||||||||||||
SUM | 2.92 | 3.00 | 3.13 | 3.23 | 3.35 | |||||||||||||||
Santander Consumer Finance | ||||||||||||||||||||
Spread loans | 4.79 | 4.58 | 4.15 | 3.83 | 3.69 | |||||||||||||||
Retail Banking Portugal | ||||||||||||||||||||
Spread loans | 1.66 | 1.63 | 1.56 | 1.53 | 1.46 | |||||||||||||||
Spread deposits | 1.19 | 1.21 | 1.24 | 1.26 | 1.27 | |||||||||||||||
SUM | 2.85 | 2.84 | 2.80 | 2.79 | 2.73 | |||||||||||||||
Retail Banking Abbey | ||||||||||||||||||||
Spread loans | 0.72 | 0.73 | 0.70 | 0.69 | 0.69 | |||||||||||||||
Spread deposits | 1.09 | 1.11 | 1.14 | 1.20 | 1.28 | |||||||||||||||
SUM | 1.81 | 1.84 | 1.84 | 1.89 | 1.97 | |||||||||||||||
Retail Banking Brazil | ||||||||||||||||||||
Spread loans | 19.19 | 19.20 | 18.18 | 17.20 | 17.63 | |||||||||||||||
Spread deposits | 2.53 | 2.05 | 1.90 | 1.67 | 1.62 | |||||||||||||||
SUM | 21.72 | 21.25 | 20.08 | 18.87 | 19.25 | |||||||||||||||
Retail Banking Mexico | ||||||||||||||||||||
Spread loans | 8.13 | 9.05 | 10.34 | 10.72 | 10.84 | |||||||||||||||
Spread deposits | 3.49 | 3.16 | 3.30 | 3.48 | 3.55 | |||||||||||||||
SUM | 11.62 | 12.21 | 13.64 | 14.20 | 14.39 | |||||||||||||||
Retail Banking Chile | ||||||||||||||||||||
Spread loans | 5.07 | 5.07 | 4.95 | 4.91 | 5.08 | |||||||||||||||
Spread deposits | 1.79 | 2.04 | 2.02 | 2.03 | 2.20 | |||||||||||||||
SUM | 6.86 | 7.11 | 6.97 | 6.94 | 7.28 |
31.03.06 | 30.06.06 | 30.09.06 | 31.12.06 | 31.03.07 | ||||||||||||||||
Continental Europe | 224,261 | 243,986 | 253,120 | 258,781 | 258,788 | |||||||||||||||
Santander Branch Network | 83,524 | 90,175 | 93,673 | 94,348 | 95,478 | |||||||||||||||
Banesto | 55,413 | 56,929 | 58,776 | 62,845 | 64,887 | |||||||||||||||
Santander Consumer | 28,405 | 31,810 | 31,465 | 33,713 | 32,936 | |||||||||||||||
Portugal | 22,891 | 23,022 | 22,959 | 22,057 | 21,689 | |||||||||||||||
United Kingdom (Abbey) | 105,323 | 100,523 | 96,344 | 97,277 | 90,473 | |||||||||||||||
Latin America | 64,257 | 61,044 | 64,565 | 70,241 | 72,831 | |||||||||||||||
Brazil | 16,811 | 15,303 | 16,082 | 18,200 | 19,484 | |||||||||||||||
Mexico | 13,017 | 12,778 | 15,196 | 15,850 | 15,965 | |||||||||||||||
Chile | 14,403 | 13,232 | 14,112 | 13,873 | 14,876 | |||||||||||||||
Operating Areas | 393,841 | 405,552 | 414,029 | 426,299 | 422,092 | |||||||||||||||
Financial management and equity stakes | 33,767 | 38,868 | 42,716 | 52,434 | 50,846 | |||||||||||||||
Total | 427,607 | 444,420 | 456,745 | 478,733 | 472,937 |
(*) - | The risk assets by business area have been changed, with retroactive effects, in order to register in them the savings derived from the differences of criteria between Basel and the Bank of Spain, which were previously reflected on a centralised basis. |
Exhibit No. | Document | |
1 | Registration Rights Agreement dated as of November 21, 2006 among Banco Santander Central Hispano, S.A., Santander Finance Preferred, S.A. Unipersonal and Lehman Brothers Inc., as Initial Purchasers | |
3.1 | Bylaws (Estatutos) of Banco Santander Central Hispano, S.A. as amended(1) | |
3.2 | Bylaws of Banco Santander Central Hispano, S.A., as amended (English translation)(1) | |
3.3 | Articles of Association of Santander Finance Preferred, S.A. Unipersonal(2) | |
3.4 | Articles of Association of Santander Finance Preferred, S.A. Unipersonal (English translation)(2) | |
3.5 | Bylaws (Estatutos) of Santander Finance Preferred S.A. Unipersonal (*) | |
3.6 | Amendment to the Bylaws (Estatutos) of Santander Finance Preferred S.A. Unipersonal (*) | |
3.7 | Bylaws (Estatutos) of Santander Finance Preferred S.A. Unipersonal (English translation) (*) | |
3.8 | Amendment to the Bylaws (Estatutos) of Santander Finance Preferred S.A. Unipersonal (English translation) (*) | |
4.1 | Form of Global Preferred Security | |
5.1 | Opinion of Davis Polk & Wardwell with respect to the exchange Series 4 preferred securities | |
5.2 | Opinion of Natalia Butragueño with respect to the exchange Series 4 preferred securities | |
8.1 | Tax Opinion of Davis Polk & Wardwell | |
8.2 | Tax Opinion of Uría Menéndez (*) | |
10 | Payment and Guarantee Agreement between Banco Santander Central Hispano, S.A. and Santander Finance Preferred, S.A. Unipersonal dated November 21, 2006 |
Exhibit No. | Document | |
12 | Computation of Ratio of Earnings to Combined Fixed Charges (1) | |
21 | List of subsidiaries of Banco Santander Central Hispano, S.A.(1) | |
23.1 | Consent of Davis Polk & Wardwell (contained in their opinion filed as Exhibit 5.1) | |
23.2 | Consent of Natalia Butragueño (contained in her opinion filed as Exhibit 5.2) | |
23.4 | Consent of Deloitte, S.L. | |
24 | Power of Attorney (included on signature page) | |
99.1 | Form of Letter to Clients | |
99.2 | Form of Letter to Reorganization Departments | |
99.3 | Form of Customer Instructions Letter |
* | To be filed by Amendment. |
(1) | Filed as an exhibit to the Guarantor’s annual report on Form 20-F for the fiscal year ended December 31, 2006, filed on July 2, 2007 and incorporated by reference hereto. |
(2) | Filed as an exhibit to the Issuer’s Registration Statement on Form F-4 with respect to the offer to exchange 7,600,000 Series 1 Preferred Securities and incorporated by reference hereto. |
BANCO SANTANDER CENTRAL HISPANO, S.A. | ||
By: | /s/ José Antonio Álvarez | |
Name: José Antonio Álvarez | ||
Title: Chief Financial Officer |
Signature | Title | Date | ||
/s/ Emilio Botín-Sanz de Sautuola | ||||
Emilio Botín-Sanz de Sautuola | Chairman of the Board of Directors and of the Executive Committee | July 9, 2007 | ||
/s/ Fernando de Asúa | ||||
Fernando de Asúa | First Vice Chairman of the Board of Directors | July 9, 2007 | ||
/s/ Alfredo Sáenz | ||||
Alfredo Sáenz | Second Vice Chairman of the Board of Directors and Chief Executive Officer | July 9, 2007 | ||
/s/ Matías Rodríguez Inciarte | ||||
Matías Rodríguez Inciarte | Third Vice Chairman of the Board of Directors | July 9, 2007 | ||
Manuel Soto | Fourth Vice Chairman of the Board of Directors | July , 2007 |
Signature | Title | Date | ||
Assicurazioni Generali, S.p.A | Director | July , 2007 | ||
/s/ Antonio Basagoiti | ||||
Antonio Basagoiti | Director | July 9, 2007 | ||
/s/ Ana P. Botín-Sanz de Sautuola | ||||
Ana P. Botín-Sanz de Sautuola | Director | July 9, 2007 | ||
Javier Botín-Sanz de Sautuola | Director | July , 2007 | ||
Lord Burns | Director | July , 2007 | ||
/s/ Guillermo de la Dehesa | ||||
Guillermo de la Dehesa | Director | July 9, 2007 | ||
/s/ Rodrigo Echenique | ||||
Rodrigo Echenique | Director | July 9, 2007 | ||
/s/ Antonio Escámez | ||||
Antonio Escámez | Director | July 9, 2007 | ||
/s/ Francisco Luzón | ||||
Francisco Luzón | Director | July 9, 2007 | ||
/s/ Abel Matutes | ||||
Abel Matutes | Director | July 9, 2007 | ||
Mutua Madrileña Automovilista | Director | July , 2007 | ||
Luis Ángel Rojo | Director | July , 2007 | ||
Luis Alberto Salazar-Simpson | Director | July , 2007 |
Signature | Title | Date | ||
Isabel Tocino | Director | July , 2007 | ||
/s/ José Antonio Álvarez | ||||
José Antonio Álvarez | Chief Financial Officer | July 9, 2007 |
BANCO SANTANDER CENTRAL HISPANO, S.A., New York branch | ||
By: | /s/ Sheldon Fried | |
Name: Sheldon Fried | ||
Title: Vice President |
SANTANDER FINANCE PREFERRED, S.A. UNIPERSONAL | ||
By: | /s/ José Antonio Soler | |
Name: José Antonio Soler | ||
Title: Chairman of the Board of Directors |
Signature | Title | Date | ||
/s/ Jose Antonio Soler Ramos | ||||
Jose Antonio Soler Ramos | Chairman of the Board of Directors | July 9, 2007 | ||
/s/ Antonio Torío Martín | ||||
Antonio Torío Martín | Director | July 9, 2007 | ||
/s/ Javier Antón San Pablo | ||||
Javier Antón San Pablo | Director | July 9, 2007 | ||
/s/ Pablo Roig García Bernalt | ||||
Pablo Roig García Bernalt | Director | July 9, 2007 |
BANCO SANTANDER CENTRAL HISPANO, S.A., New York branch | ||
By: | /s/ Sheldon Fried | |
Name: Sheldon Fried | ||
Title: Vice President |
Exhibit No. | Document | |
1 | Registration Rights Agreement dated as of November 21, 2006 among Banco Santander Central Hispano, S.A., Santander Finance Preferred, S.A. Unipersonal and Lehman Brothers Inc., as Initial Purchasers | |
3.1 | Bylaws (Estatutos) of Banco Santander Central Hispano, S.A. as amended(1) | |
3.2 | Bylaws of Banco Santander Central Hispano, S.A., as amended (English translation)(1) | |
3.3 | Articles of Association of Santander Finance Preferred, S.A. Unipersonal(2) | |
3.4 | Articles of Association of Santander Finance Preferred, S.A. Unipersonal (English translation)(2) | |
3.5 | Bylaws (Estatutos) of Santander Finance Preferred S.A. Unipersonal (*) | |
3.6 | Amendment to the Bylaws (Estatutos) of Santander Finance Preferred S.A. Unipersonal (*) | |
3.7 | Bylaws (Estatutos) of Santander Finance Preferred S.A. Unipersonal (English translation) (*) | |
3.8 | Amendment to the Bylaws (Estatutos) of Santander Finance Preferred S.A. Unipersonal (English translation) (*) | |
4.1 | Form of Global Preferred Security | |
5.1 | Opinion of Davis Polk & Wardwell with respect to the exchange Series 4 preferred securities | |
5.2 | Opinion of Natalia Butragueño with respect to the exchange Series 4 preferred securities | |
8.1 | Tax Opinion of Davis Polk & Wardwell | |
8.2 | Tax Opinion of Uría Menéndez (*) | |
10 | Payment and Guarantee Agreement between Banco Santander Central Hispano, S.A. and Santander Finance Preferred, S.A. Unipersonal dated November 21, 2006 | |
12 | Computation of Ratio of Earnings to Combined Fixed Charges (1) | |
21 | List of subsidiaries of Banco Santander Central Hispano, S.A.(1) | |
23.1 | Consent of Davis Polk & Wardwell (contained in their opinion filed as Exhibit 5.1) | |
23.2 | Consent of Natalia Butragueño (contained in her opinion filed as Exhibit 5.2) | |
23.4 | Consent of Deloitte, S.L. | |
24 | Power of Attorney (included on signature page) | |
99.1 | Form of Letter to Clients | |
99.2 | Form of Letter to Reorganization Departments | |
99.3 | Form of Customer Instructions Letter |
* | To be filed by Amendment. |
(1) | Filed as an exhibit to the Guarantor’s annual report on Form 20-F for the fiscal year ended December 31, 2006, filed on July 2, 2007 and incorporated by reference hereto. |
(2) | Filed as an exhibit to the Issuer’s Registration Statement on Form F-4 with respect to the offer to exchange 7,600,000 Series 1 Preferred Securities and incorporated by reference hereto. |