Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Ifrs Statement [Line Items] | |
Entity Registrant Name | Banco Santander (Mexico) S.A., Institucion de Banca Multiple, Grupo Financiero Santander Mexico |
Entity Central Index Key | 1,698,287 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2017 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Series B shares | |
Ifrs Statement [Line Items] | |
Entity Common Stock, Shares Outstanding | 3,322,685,212 |
Series F shares | |
Ifrs Statement [Line Items] | |
Entity Common Stock, Shares Outstanding | 3,464,309,145 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS $ in Millions, in Millions | Dec. 31, 2017MXN ($) | Dec. 31, 2016MXN ($) |
ASSETS | ||
CASH AND BALANCES WITH THE CENTRAL BANK | $ 57,687 | $ 78,663 |
FINANCIAL ASSETS HELD FOR TRADING: | 315,570 | 342,582 |
OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS: | 51,705 | 42,340 |
AVAILABLE-FOR-SALE FINANCIAL ASSETS: | 165,742 | 154,644 |
LOANS AND RECEIVABLES | 679,300 | 675,498 |
HEDGING DERIVATIVES | 15,116 | 15,003 |
NON-CURRENT ASSETS HELD FOR SALE | 1,295 | 1,107 |
TANGIBLE ASSETS | 6,498 | 5,692 |
INTANGIBLE ASSETS: | 6,960 | 5,772 |
Goodwill | 1,734 | 1,734 |
Other intangible assets | 5,226 | 4,038 |
TAX ASSETS | 20,209 | 23,301 |
Current | 3,609 | 5,256 |
Deferred | 16,600 | 18,045 |
OTHER ASSETS | 9,109 | 6,335 |
TOTAL ASSETS | 1,329,191 | 1,350,937 |
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES HELD FOR TRADING | 239,725 | 266,828 |
OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 120,653 | 136,860 |
FINANCIAL LIABILITIES AT AMORTISED COST | 820,431 | 806,091 |
HEDGING DERIVATIVES | 11,091 | 14,287 |
PROVISIONS | 6,730 | 7,202 |
TAX LIABILITIES | 71 | 44 |
Current | 20 | 39 |
Deferred | 51 | 5 |
OTHER LIABILITIES | 15,080 | 14,398 |
TOTAL LIABILITIES | 1,213,781 | 1,245,710 |
SHAREHOLDERS' EQUITY | 116,558 | 106,768 |
Share capital | 8,086 | 8,086 |
Share premium | 16,956 | 16,956 |
Accumulated reserves | 72,838 | 65,190 |
Profit for the year attributable to the Parent | 18,678 | 16,536 |
VALUATION ADJUSTMENTS: | (1,177) | (1,596) |
Available-for-sale financial assets | (1,533) | (2,979) |
Cash flow hedges | 356 | 1,383 |
TOTAL SHAREHOLDERS' EQUITY ATTRIBUTABLE TO THE PARENT | 115,381 | 105,172 |
NON-CONTROLLING INTERESTS | 29 | 55 |
TOTAL EQUITY | 115,410 | 105,227 |
TOTAL LIABILITIES AND EQUITY | 1,329,191 | 1,350,937 |
Trading derivatives | ||
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES HELD FOR TRADING | 171,282 | 205,690 |
Short positions | ||
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES HELD FOR TRADING | 68,443 | 61,138 |
Deposits | ||
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES AT AMORTISED COST | 608,776 | 572,005 |
Deposits - Central banks | ||
LIABILITIES AND EQUITY | ||
OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 22,417 | 15,479 |
Deposits - Credit institutions | ||
LIABILITIES AND EQUITY | ||
OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 5,942 | 25,155 |
FINANCIAL LIABILITIES AT AMORTISED COST | 76,515 | 99,322 |
Deposits - Customers | ||
LIABILITIES AND EQUITY | ||
OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 81,790 | 83,891 |
FINANCIAL LIABILITIES AT AMORTISED COST | 608,776 | 572,005 |
Customer deposits - Repurchase agreements | ||
LIABILITIES AND EQUITY | ||
OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 81,790 | 83,891 |
Marketable debt securities | ||
LIABILITIES AND EQUITY | ||
OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 10,504 | 12,335 |
FINANCIAL LIABILITIES AT AMORTISED COST | 85,792 | 77,668 |
Subordinated liabilities | ||
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES AT AMORTISED COST | 35,885 | 37,576 |
Other financial liabilities | ||
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES AT AMORTISED COST | 13,463 | 19,520 |
Debt instruments. | ||
ASSETS | ||
FINANCIAL ASSETS HELD FOR TRADING: | 147,747 | 140,853 |
AVAILABLE-FOR-SALE FINANCIAL ASSETS: | 164,947 | 154,318 |
LOANS AND RECEIVABLES | 10,758 | 11,472 |
LIABILITIES AND EQUITY | ||
Available-for-sale financial assets | (1,505) | (2,953) |
Equity instruments. | ||
ASSETS | ||
FINANCIAL ASSETS HELD FOR TRADING: | 2,562 | 1,822 |
AVAILABLE-FOR-SALE FINANCIAL ASSETS: | 795 | 326 |
LIABILITIES AND EQUITY | ||
Available-for-sale financial assets | (28) | (26) |
Trading derivatives | ||
ASSETS | ||
FINANCIAL ASSETS HELD FOR TRADING: | 165,261 | 199,907 |
Loans and advances to credit institutions | ||
ASSETS | ||
OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS: | 46,087 | 37,831 |
LOANS AND RECEIVABLES | 59,122 | 82,388 |
Loans and advances to customers | ||
ASSETS | ||
OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS: | 5,618 | 4,509 |
LOANS AND RECEIVABLES | 609,420 | 581,638 |
Provision for pensions and other employment defined benefit obligations | ||
LIABILITIES AND EQUITY | ||
PROVISIONS | 3,860 | 3,972 |
Provision for taxes and other legal contingencies | ||
LIABILITIES AND EQUITY | ||
PROVISIONS | 1,072 | 1,306 |
Provisions for off-balance sheet risk | ||
LIABILITIES AND EQUITY | ||
PROVISIONS | 1,032 | 874 |
Other provisions member | ||
LIABILITIES AND EQUITY | ||
PROVISIONS | $ 766 | $ 1,050 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Ifrs Statement [Line Items] | |||
Interest income and similar income | $ 98,002 | $ 77,453 | $ 64,230 |
Interest expenses and similar charges | (42,158) | (28,323) | (21,242) |
NET INTEREST INCOME | 55,844 | 49,130 | 42,988 |
Dividend income | 150 | 94 | 104 |
Fee and commission income. | 20,316 | 18,770 | 17,137 |
Fee and commission expenses | (5,503) | (4,830) | (3,505) |
Gains/(losses) on financial assets and liabilities (net) | 3,458 | 3,760 | 2,504 |
Exchange differences (net) | 6 | 2 | 6 |
Other operating income | 669 | 486 | 472 |
Other operating expenses | (3,614) | (3,361) | (3,010) |
TOTAL INCOME | 71,326 | 64,051 | 56,696 |
Administrative expenses: | (25,437) | (22,655) | (20,780) |
Personnel expenses | (12,748) | (11,472) | (10,625) |
Other general administrative expenses | (12,689) | (11,183) | (10,155) |
Depreciation and amortization | (2,533) | (2,058) | (1,863) |
Impairment losses on financial assets (net): | (18,820) | (16,661) | (16,041) |
Provisions (net) | (437) | (881) | 258 |
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) | 6 | 20 | 7 |
Gains/(losses) on disposal of non-current assets held for sale not classified as discontinued operations (net) | 69 | 71 | 91 |
OPERATING PROFIT BEFORE TAX | 24,174 | 21,887 | 18,368 |
Income tax | (5,496) | (5,351) | (4,304) |
PROFIT FOR THE YEAR | 18,678 | 16,536 | 14,064 |
Profit attributable to the Parent | $ 18,678 | $ 16,536 | 14,051 |
Profit attributable to non-controlling interests | $ 13 | ||
Distribution of the Bank's profit and Earnings per share | |||
Basic earnings per share (in pesos per share) | $ 2.76 | $ 2.44 | $ 2.07 |
Diluted earnings per share (in pesos per share) | $ 2.75 | $ 2.44 | $ 2.07 |
Loans and receivables | |||
Ifrs Statement [Line Items] | |||
Impairment losses on financial assets (net): | $ (18,820) | $ (16,661) | $ (16,041) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
PROFIT FOR THE YEAR | $ 18,678 | $ 16,536 | $ 14,064 |
Items that will not be reclassified subsequently to the consolidated income statement: | |||
Remeasurement of defined benefit obligation for the year | 666 | 530 | (953) |
Income tax relating to items that will not be reclassified subsequently | (200) | (158) | 286 |
Total of items that will not be reclassified subsequently to the consolidated income statement | 466 | 372 | (667) |
Available-for-sale financial assets: | |||
Valuation adjustments | 1,932 | (3,505) | (196) |
Amounts reclassified to consolidated income statement | (9) | (120) | 161 |
Income tax | (477) | 1,174 | 53 |
Cash flow hedges: | |||
Valuation adjustments | (1,585) | (1,095) | (612) |
Amounts reclassified to consolidated income statement | 118 | 1,785 | 1,479 |
Income taxes | 440 | (207) | (260) |
Total of items that may be reclassified subsequently to the consolidated income statement | 419 | (1,968) | 625 |
Other comprehensive income/(loss) for the year, net of income tax | 885 | (1,596) | (42) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 19,563 | 14,940 | 14,022 |
Attributable to the Parent | $ 19,563 | $ 14,940 | 14,009 |
Attributable to non-controlling interests | $ 13 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN TOTAL EQUITY - MXN ($) $ in Millions | Total Shareholders' Equity Attributable to the Parent | Capital | Share premium | Accumulated Reserves | Parent result for the period | Other reserves | Non-Controlling interest | Total |
Equity at beginning of period at Dec. 31, 2014 | $ 100,451 | $ 8,086 | $ 16,956 | $ 62,303 | $ 13,359 | $ (253) | $ 45 | $ 100,496 |
Profit for the year | 14,051 | 14,051 | 13 | 14,064 | ||||
Other changes in equity: | ||||||||
Transfer to accumulated reserves | 13,359 | (13,359) | ||||||
Dividends declared | (6,760) | (6,760) | (6,760) | |||||
Other comprehensive income/(loss) for the year, net of income tax | (42) | (667) | 625 | (42) | ||||
Equity at end of period at Dec. 31, 2015 | 107,700 | 8,086 | 16,956 | 68,235 | 14,051 | 372 | 58 | 107,758 |
Profit for the year | 16,536 | 16,536 | 16,536 | |||||
Other changes in equity: | ||||||||
Transfer to accumulated reserves | 14,051 | (14,051) | ||||||
Dividends declared | (17,468) | (17,468) | (17,468) | |||||
Other changes in non-controlling interest | (3) | (3) | ||||||
Other comprehensive income/(loss) for the year, net of income tax | (1,596) | 372 | (1,968) | (1,596) | ||||
Equity at end of period at Dec. 31, 2016 | 105,172 | 8,086 | 16,956 | 65,190 | 16,536 | (1,596) | 55 | 105,227 |
Profit for the year | 18,678 | 18,678 | 18,678 | |||||
Other changes in equity: | ||||||||
Transfer to accumulated reserves | 16,536 | (16,536) | ||||||
Dividends declared | (8,910) | (8,910) | (8,910) | |||||
Paid interests on Subordinated Additional Tier I Capital Notes | (444) | (444) | (444) | |||||
Other changes in non-controlling interest | (26) | (26) | ||||||
Other comprehensive income/(loss) for the year, net of income tax | 885 | 466 | 419 | 885 | ||||
Equity at end of period at Dec. 31, 2017 | $ 115,381 | $ 8,086 | $ 16,956 | $ 72,838 | $ 18,678 | $ (1,177) | $ 29 | $ 115,410 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
A. CASH FLOWS FROM OPERATING ACTIVITIES: | $ (7,170) | $ 28,818 | $ 17,505 |
Profit for the year | 18,678 | 16,536 | 14,064 |
Adjustments made to obtain the cash flows from operating activities- | 7,494 | 7,129 | 5,971 |
Depreciation and amortization | 2,533 | 2,058 | 1,863 |
(Gains)/losses on disposal of non-current assets held for sale not classified as discontinued operations | (69) | (71) | (91) |
(Gains)/losses on disposal of assets not classified as non-current assets held for sale | (6) | (20) | (7) |
Income tax expense recognized in consolidated income statement | 5,496 | 5,351 | 4,304 |
Expense recognized with respect to equity-settled share-based payments | 283 | 131 | 68 |
Effect of foreign exchange rate changes on foreign currency subordinated additional Tier I Capital Notes | (479) | ||
Effect of foreign exchange rate changes on foreign currency cash deposits | (264) | (320) | (166) |
Net (increase)/decrease in operating assets- | 218 | (156,934) | (214,901) |
Financial assets held for trading | 27,007 | (15,726) | (119,272) |
Other financial assets at fair value through profit or loss | (9,365) | (13,903) | 4,064 |
Available-for-sale financial assets | (10,877) | (52,951) | (31,971) |
Loans and receivables | (3,927) | (74,811) | (67,060) |
Other operating assets | (2,620) | 457 | (662) |
Net increase/(decrease) in operating liabilities- | (29,596) | 170,895 | 213,440 |
Financial liabilities held for trading | (27,103) | 94,255 | 35,768 |
Other financial liabilities at fair value through profit or loss | (16,207) | (71,481) | 97,821 |
Financial liabilities at amortized cost | 16,747 | 130,265 | 75,398 |
Other operating liabilities | (3,033) | 17,856 | 4,453 |
Income tax paid | (4,114) | (8,902) | (1,187) |
Dividends received from equity instruments | 150 | 94 | 118 |
B. CASH FLOWS FROM INVESTING ACTIVITIES: | (4,525) | (3,092) | (2,946) |
Payments- | (4,528) | (3,097) | (2,951) |
Tangible assets | (1,816) | (1,096) | (1,190) |
Intangible assets | (2,712) | (2,001) | (1,761) |
Proceeds- | 3 | 5 | 5 |
Disposal of tangible assets | 3 | 5 | 5 |
C. CASH FLOWS FROM FINANCING ACTIVITIES: | (9,545) | (7,171) | (6,760) |
Payments- | (9,545) | (17,468) | (6,760) |
Dividends paid to owners | (8,910) | (17,468) | (6,760) |
Paid interest on Subordinated Additional Tier I Capital Notes | (635) | ||
Proceeds- | 10,297 | ||
Issue of Tier II Subordinated Capital Notes | 10,297 | ||
D. EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON FOREIGN CURRENCY CASH | 264 | 320 | 166 |
E. NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | (20,976) | 18,875 | 7,965 |
F. CASH AND CASH EQUIVALENTS AT THE BEGINNING OF YEAR | 78,663 | 59,788 | 51,823 |
G. CASH AND CASH EQUIVALENTS AT THE END OF YEAR | $ 57,687 | $ 78,663 | $ 59,788 |
Introduction, basis of presenta
Introduction, basis of presentation of the consolidated financial statements and other information | 12 Months Ended |
Dec. 31, 2017 | |
Intro, basis of presentation of the consolidated financial statements and other information | |
Introduction, basis of presentation of the consolidated financial statements and other information | BANCO SANTANDER (MÉXICO), S.A., INSTITUCIÓN DE BANCA MÚLTIPLE, GRUPO FINANCIERO SANTANDER MÉXICO AND SUBSIDIARIES Notes to the Consolidated Financial Statements as of December 31, 2016 and 2017 and for each of the in the period ended December 31, 2017 (in millions of Mexican pesos) 1. Introduction, basis of presentation of the consolidated financial statements and other information a) Introduction Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander México (hereinafter, Banco Santander (México)) together with its subsidiaries (hereinafter, the “Bank”) is a subsidiary of Grupo Financiero Santander México, S.A. de C.V. (hereinafter, “the Group”, “Parent” or “Parent company”), which holds 99.99% of its common stock and is regulated by, among others, the Credit Institutions Law (“ Ley de Instituciones de Crédito” ), the General Provisions Applicable to Credit Institutions, Regulated Multiple Purpose Finance Entities and Market Participants in Relation to Derivatives Contracts Listed on the Mexican Market issued by the Mexican National Banking and Securities Commission (hereinafter, the “CNBV”) and the Mexican Central Bank (hereinafter, “the Central Bank”, “Mexican Central Bank” or “Banco de México”). The Bank is also subject to the supervision and oversight of CNBV and the Mexican Central Bank. The Bank’s main activity is to render banking and credit services under the terms of applicable laws, which services include, among others, reception of deposits, granting of loans, trading of securities and the execution of trust contracts. Per legal requirements, the Bank has unlimited liability for the obligations assumed and losses incurred by each of its subsidiaries. The Bank conducts its business through branches and offices located throughout Mexico. The Bank is one of the largest private-sector banks in Mexico. The main offices of the Bank are located at Prolongación Paseo de la Reforma 500, Colonia Lomas de Santa Fe, Ciudad de Mexico, Mexico. The issuance of the consolidated financial statements was authorized by Héctor Blas Grisi Checa, Executive President and Chief Executive Officer (CEO) and Director of the Bank on March 23, 2018. Consequently, they do not reflect events occurring after that date. These consolidated financial statements are pending the approval of the ordinary shareholders’ meeting, where they may be modified, based on provisions set forth in Mexican General Law of Corporations ( Ley General de Sociedades Mercantiles ). b) Basis of presentation of the consolidated financial statements The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (hereinafter, IFRS) as issued by the International Accounting Standards Board (hereinafter, IASB) and interpretations issued by the IFRS Interpretations Committee. The consolidated financial statements have been prepared on a historical cost basis, except for financial assets held for trading, other financial instruments at fair value through profit or loss, derivative financial instruments and available-for-sale financial assets that have been measured at fair value at the end of each reporting period, as explained in the accounting policies below (see Note 2). Historical cost is based on the fair value of the consideration given in exchange for goods and services. The carrying values of recognized assets and liabilities that are designated as hedged items in fair value hedges that would otherwise be carried at amortized cost are adjusted to record changes in the fair values attributable to the risks that are being hedged in effective hedge relationships. The consolidated financial statements are presented in Mexican pesos. The consolidated financial statements filed for Mexican statutory purposes are prepared in accordance with accounting principles and regulations prescribed by the CNBV, as amended, which are hereinafter referred to as Mexican Banking GAAP. Mexican Banking GAAP is composed of Mexican Financial Reporting Standards (NIF), as issued by the Mexican Board of Financial Reporting Standards (CINIF), which, in turn, are supplemented and modified by specific rules mandated by the CNBV. The CNBV’s accounting rules principally relate to the recognition and measurement of impairment of loans and receivables, repurchase agreements, securities loans, consolidation of special purpose entities and foreclosed assets. The most significant differences between Mexican Banking GAAP and IFRS, as they relate to the Bank, are in regard to: a) Allowance for impairment losses. For Mexican Banking GAAP purposes, allowance for impairment losses and provisions for off-balance sheet risk are determined using prescribed formulas that are based primarily on an expected loss model. The expected loss model formulas are developed by the CNBV using information compiled from the Mexican lending market as a whole, which may differ significantly from the Bank’s credit loss experience. b) Effects of inflation. Mexican Banking GAAP requires the recognition of the comprehensive effects of inflation when an economic environment becomes inflationary, which, for purposes of Mexican Banking GAAP, is indicated by a three-year cumulative inflation rate of approximately 26 percent or more. c) Actuarial gains and losses of the pension plan. Under Mexican Banking GAAP, actuarial gains and losses of the pension plan from the year should be immediately recognized through other comprehensive income as remeasurement of defined benefit obligation and demand their subsequent recycling to profit or loss based on the average remaining life of the pension plan. IFRS require the recognition of actuarial gains and losses from the year immediately through other comprehensive income without recycling subsequently to profit or loss. d) Deferred employee profit sharing. Mexican Banking GAAP requires the recognition of the deferred compulsory employee profit sharing effect based on the temporary differences arising between book and tax value of the assets and liabilities. e) Consolidation of special purpose entities. Mexican Banking GAAP does not require the consolidation of those special purpose entities created before January 1, 2009 over which control is exercised. The notes to the consolidated financial statements contain supplementary information to that presented in the consolidated balance sheets, consolidated income statements, consolidated statements of comprehensive income, consolidated statements of changes in total equity and consolidated statements of cash flows. The notes provide, in a clear, relevant, reliable and comparable manner, narrative descriptions and breakdowns of these consolidated financial statements. Application of new and revised IFRS In the current year, the Bank has applied a number of new or revised International Accounting Standards (hereinafter, IAS), or IFRS issued by the IASB that are mandatorily effective for the accounting period beginning on January 1, 2017. · Annual Improvements to IFRS 2014 – 2016 Cycle (IFRS 12 Disclosure of Interests in Other Entities); · Amendments to IAS 12 Income Taxes - Recognition of deferred tax assets for unrealized losses; and · Amendments to IAS 7 Statement of Cash Flows - Disclosure initiative. Annual Improvements to IFRS 2014 – 2016 Cycle Standard Subject of amendment Details IFRS 12 Disclosure of interests in other entities Clarification of the scope of the Standard IFRS 12 states that an entity need not provide summarized financial information for interests in subsidiaries, associates or joint ventures that are classified, or included in a disposal group, that is classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. The amendments clarify that this is the only concession from the disclosure requirements of IFRS 12 for such interests. The amendments apply retrospectively and are effective for annual periods beginning on or after January 1, 2017. The application of this amendment has had no impact on the amounts recognized in the Bank’s consolidated financial statements. IAS 12 Income Taxes - Recognition of deferred tax assets for unrealized losses The amendments clarify the following: · Decreases below cost in the carrying amount of a fixed-rate debt instrument measured at fair value for which the tax base remains at cost give rise to a deductible temporary difference, irrespective of whether the debt instrument’s holder expects to recover the carrying amount of the debt instrument by sale or by use, or whether it is probable that the issuer will pay all the contractual cash flows; · When an entity assesses whether taxable profits will be available against which type of deductible temporary difference it can be utilized, and the tax law restricts the utilization of losses to deduction against income of a specific type (i.e. capital losses can only be set off against capital gains), an entity assesses a deductible temporary difference in combination with other deductible temporary difference of that type, but separately from other types of deductible temporary differences; · The estimate of probable future taxable profit may include the recovery of some of an entity’s assets for more than their carrying amount if there is sufficient evidence that it is probable that the entity will achieve this; and · In evaluating whether sufficient future taxable profits are available, an entity should compare the deductible temporary differences with future taxable profits excluding tax deductions resulting from the reversal of those deductible temporary differences. The application of these amendments has had no impact on the amounts recognized in the Bank’s consolidated financial statements. The accounting policy applied by the Bank is consistent with the aforementioned amendments. Amendments to IAS 7 Statement of Cash Flows - Disclosure initiative The amendments require an entity to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes. The amendments do not prescribe a specific format to disclose financing activities; however, an entity may fulfill the disclosure objective by providing a reconciliation between the opening and closing balances in the statement of financial position for liabilities arising from financing activities. The application of these amendments is disclosed in note 22.d. New and revised IFRS that are not mandatorily effective (but allow early application) for the year ending December 31, 2017 The Bank has not yet adopted the following new or revised standards, as the effective dates are subsequent to the date of these consolidated financial statements. Except as disclosed below, Management is currently analyzing the effects of adopting these new standards and has not yet quantified the potential impacts they may have on the consolidated financial statements. · Annual Improvements to IFRS 2014 – 2016 Cycle (IFRS 1 First time adoption of IFRS and IAS 28 Investments in Associates and Joint Ventures); · Amendments to IAS 40 Investment Property; · Amendments to IFRS 2 Share-based Payment; · Amendments to IFRS 10 Consolidated Financial Statements and IAS 28; · IFRS 9 Financial Instruments; · IFRS 15 Revenue from Contracts with Customers; · IFRS 16 Leases; · IFRIC 22 Foreign Currency Transactions and Advance Consideration; · Amendments to IFRS 4 Insurance Contracts; · IFRS 17 Insurance Contracts; · IFRIC 23 Uncertainty over income tax treatments; · Amendments to IAS 19 Employee Benefits; and · Annual improvements to IFRS 2015-2017 Cycle. Annual Improvements to IFRS 2014 – 2016 Cycle (Effective for annual periods beginning on or after January 1, 2018) Standard Subject of amendment Details IFRS 1 First time adoption of IFRS Deletion of short term exemptions for first time adopters The amendment deletes the short-term exemptions in IFRS 1 that relate to IFRS 7 Financial Instruments: Disclosures, IAS 19, IFRS 12 and IAS 27 Separate Financial Statements, because they are redundant and are no longer applicable. These ammendments are not applicable to the Bank, since it is not first time adopter. IAS 28 Investments in Associates and Joint Ventures Measuring an associate or joint venture at fair value The amendments clarify that the option for a venture capital organization and other similar entities to measure investments in associates and joint ventures at fair value through profit and loss is available separately for each associate or joint venture, and that election should be made at initial recognition of the associate or joint venture. In respect of the option for an entity that is not an investment entity to retain the fair value measurement applied by its associates and joint ventures that are investment entities when applying the equity method, the amendments make a similar clarification that this choice is available for each investment entity associate of investment entity joint venture. The amendments apply retrospectively. Earlier is permitted. The application of these amendments has had no impact in the amounts recognized in the Bank’s consolidated financial statements. Amendments to IAS 40 - Transfers of Investment Property (Effective for annual periods beginning on or after January 1, 2018, earlier application is permitted) The amendments reflect the principle that a change in use would involve: · An assessment of whether a property meets, or has ceased to meet, the definition of investment property; and · Supporting evidence that a change in use has occurred. The amendments also emphasize that a change in management’s intentions, alone, would not be enough to support a transfer of property. An entity must have taken observable actions to support such a change. The application of these amendments has had no impact in the amounts recognized in the Bank’s consolidated financial statements. Amendments to IFRS 2 - Classification and measurement of share-based payment transactions (Effective for annual periods beginning on or after January 1, 2018) The amendments clarify the following: · In estimating the fair value of a cash-settled share-based payment, the accounting for the effects of vesting and non-vesting conditions should follow the same approach as for equity-settled share-based payments. · Where tax law or regulation requires an entity to withhold a specified number of equity instruments equal to the monetary value of the employee’s tax obligation to meet the employee’s tax liability which is then remitted to the tax authority (typically in cash), i.e. the share-based payment arrangement has a “net settlement feature”, such an arrangement should be classified as equity-settled in its entirety, provided that the share-based payment would have been classified as equity-settled had it not included the net settlement feature. · A modification of a share-based payment that changes the transaction from cash-settled to equity-settled should be accounted for as follows: The original liability is derecognized; The equity-settled share-based payment is recognized by reference to the modification date fair value of the equity instrument granted to the extent that services have been rendered up to the modification date; and Any difference between the carrying amount of the liability at the modification date and the amount recognized in equity should be recognized in profit or loss immediately. The amendments are effective for annual reporting periods beginning on or after January 1, 2018 with earlier application permitted. Specific transition provisions apply. Management anticipates that the application of these amendments may have an immaterial impact on the Bank’s consolidated financial statements in future periods due to the Corporate Restructuring mentioned in Note 1.d. Amendments to IFRS 10 and IAS 28 - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Effective date deferred indefinitely) The amendments deal with situations where there is a sale or contribution of assets between an investor and its associate or joint venture. IAS 28 and IFRS 10 are amended, as follows: IAS 28 has been amended to reflect the following: · Gains and losses resulting from transactions involving assets that do not constitute a business between an investor and its associate or joint venture are recognized to the extent of unrelated investors’ interests in the associate or joint venture. · Gains or losses from downstream transactions involving assets that constitute a business between an investor and its associate or joint venture should be recognized in full in the investor’s financial statements. IFRS 10 has been amended to reflect the following: · Gains or losses resulting from the loss of control of a subsidiary that does not contain a business in a transaction with an associate or joint venture that is accounted for using the equity method, are recognized in the parent’s profit or loss only to the extent of the unrelated investors’ interests in that associate or joint venture. Similarly, gains and losses resulting from the remeasurement of investments retained in any former subsidiary (that has become an associate or a joint venture that is accounted for using the equity method) to fair value are recognized in the former parent’s profit or loss only to the extent of the unrelated investors’ interests in the new associate or joint venture. In December 2015, the IASB postponed the effective date of this amendment indefinitely pending the outcome of its research project on the equity method of accounting. IFRS 9 Financial instruments (Mandatory for annual periods starting on January 1, 2018) IFRS 9 establishes the recognition and measurement requirements for financial instruments and certain classes of contracts for trades involving non-financial assets. The Bank will apply these requirements in a retrospective manner, by adjusting the opening balance at January 1, 2018, without restating the comparative consolidated financial statements. The main aspects of the new standard are: (a) · Amortised cost: financial instruments under a business model whose objective is to collect principal and interest cash flows, where no significant unjustified sales exist and fair value is not a key factor in managing these financial assets. In this way, unjustified sales are those that are different from sales related with an increase in the asset’s credit risk, unanticipated funding needs (stress case scenario), even if such sales are significant in value, changes in the investment policy no longer meet the credit criteria or sales imposed by third parties, except if the regulator requires to demonstrate that the assets are liquid. Additionally, the contractual flow characteristics substantially represent a “basic financing agreement”. · Fair value with changes recognised through other comprehensive income: financial instruments held in a business model whose objective is to collect principal and interest cash flows and the sale of these assets, where fair value is a key factor in their management. Additionally, the contractual cash flow characteristics substantially represent a “basic financing agreement”. · Fair value with changes recognised through profit or loss: financial instruments included in a business model whose objective is not obtained through the above-mentioned models, where fair value is a key factor in managing these assets, and financial instruments whose contractual cash flow characteristics do not substantially represent a “basic financing agreement”. The Bank’s main activity revolves around retail and commercial banking operations, and its exposure does not focus on complex financial products. The Bank's main objective is to achieve consistent classification of financial instruments in the portfolios as established under IFRS 9. To this end, it has developed guidelines containing criteria to ensure consistent classification across all of its units. Additionally, the Bank has analysed its portfolios under these criteria, in order to assign its financial instruments to the appropriate portfolio under IFRS 9, and except as disclosed below, no significant changes have been identified. Based on this analysis, the Bank concludes that: · All of its financial assets classified as loans and advances under IAS 39 Financial Instruments: Recognition and Measurement will continue to be recognised at amortised cost under IFRS 9. · In general, debt instruments classified as available-for-sale financial assets will be measured at fair value with changes recognised through other comprehensive income or at amortised cost. As a result of the business model definition according to the assets management, a 44% of the total balance under IAS 39, has been reclassified to held to collect business model which is accounted for at amortized cost. The financial assets reclassified amount to 75,418 million pesos (nominal value). The expected impact of the reclassification mentioned above is an increase in shareholders’ equity that amounts to 2,287 million pesos (1,601 million pesos, net of deferred tax). Available-for-sale equity instruments will be classified at fair value under IFRS 9, with changes recognised through profit or loss, unless the Bank decides, for non-trading assets, to classify them at fair value with changes recognised through other comprehensive income (irrevocably). IAS 39 financial liabilities classification and measurement criteria remains substantially unchanged under IFRS 9. Nevertheless, the changes in the fair value of financial liabilities designated at fair value with changes recognised through profit or loss for the year, due to the entity credit risk, are classified under other comprehensive income. On October 12, 2017, the IASB published a clarification on the treatment of certain prepayment options in relation to the assessment of contractual cash flows of principal and interest on financial instruments. However, the Bank does not expect a significant impact in the transition period prior to the adoption of this amendment. (b) · Scope of application: The IFRS 9 impairment model applies to financial assets valued at amortised cost, debt instruments valued at fair value with changes reported in other comprehensive income, lease receivables, and commitments and guarantees given not valued at fair value. · Use of practical expedients under IFRS 9: IFRS 9 includes a number of practical expedients that may be implemented by entities to facilitate implementation. However, in order to achieve full and high quality implementation of the standard, considering industry best practices, these practical expedients will be used as a guidance: - Rebuttable presumption that the credit risk has increased significantly, when payments are more than 30 days past due: this threshold is used as an additional – but not primary - indicator of significant risk increase. Additionally, there may be cases in the Bank where its use has been rebutted as a result of studies that show a low correlation of the significant risk increase with this past due threshold. - Assets with low credit risk at the reporting date: in general, the Bank assesses the existence of significant risk increase in all its financial instruments. · Impairment estimation methodology: the portfolio of financial instruments subject to impairment is divided into three categories, based on the stage of each instrument with regard to its level of credit risk: · Stage 1: financial instruments for which no significant increase in credit risk is identified since its initial recognition. In this case, the impairment provision reflects expected credit losses arising from defaults over the following 12 months from the reporting date. · Stage 2: if there has been a significant increase in risk since the date of initial recognition but the impairment event has not materialised, the financial instrument is classified as Stage 2. In this case, the impairment provision reflects the expected losses from defaults over the life of the financial instrument. · Stage 3: a financial instrument is catalogued in this stage when shows effective signs of impairment as a result of one or more events that have already occurred resulting in a loss. In this case, the amount of the impairment provision reflects the expected losses for credit risk over the expected life of the financial instrument. Additionally, the amount relative to the impairment provision reflects expected credit risk losses through the expected life in those financial instruments purchased or originated credit impaired (POCI) The methodology required for the quantification of expected loss due to credit events will be based on an unbiased and weighted consideration of the occurrence of three possible future scenarios that could impact the collection of contractual cash flows, taking into account the time-value of money, all available information relevant to past events, and current conditions and projections of macroeconomic factors deemed relevant to the estimation of this amount (e.g. Gross Domestic Product, house pricing, unemployment rate, etc.). In estimating the parameters used for allowance for impairment losses and for provisions for off-balance sheet risk calculation such as exposure at default (EAD), probability of default (PD), loss given default (LGD) and discount rate, the Bank leveraged on its experience developing internal models for calculating parameters for regulatory and management purposes. The Bank is aware of the differences between such models and IFRS 9 requirements for impairment purposes. As a result, it has focused on adapting to such requirements to the development of its IFRS 9 allowance for impairment models. · Determination of significant increase in risk: with the purpose to determine whether a financial instrument has increased its credit risk since initial recognition, proceeding with its classification into Stage 2, the Bank considers the following criteria. Quantitative criteria Changes in the risk of a default occurring through the expected life of the financial instrument are analyzed and quantified with respect to its credit level in its initial recognition. With the purpose of determining if such changes are considered as significant, with the consequent classification into Stage 2, the Bank has defined the quantitative thresholds to consider in each of its portfolios taking into account corporate guidelines. Qualitative criteria In addition to the quantitative criteria mentioned above, the Bank considers several indicators that are aligned with those used in ordinary credit risk management (e.g.: over 30 days past due, forbearances, etc.). The Bank has defined these qualitative criteria for each of its portfolios, according to its particularities and with the policies currently in force. The use of these qualitative criteria is complemented with the use of an expert judgment. · Default definition: the definition considered for impairment provisioning purposes is consistent with that used in the development of advanced models for regulatory capital requirements calculations. · Use of present, past and future information: estimation of expected losses requires a high component of expert judgement and it must be supported by past, present and future information. Therefore, these expected loss estimates take into consideration multiple macroeconomic scenarios for which the probability is measured considering past events, current situation and future trends and macroeconomic indicators, such as Gross Domestic Product (GDP) or unemployment rate. The Bank already uses forward looking information in internal management and regulatory processes, considering several scenarios. In this sense, the Bank has leveraged its experience in the management of such information, maintaining consistency with the information used in the other processes. · Expected life of the financial instrument: with the purpose of its estimation all the contractual terms have been taken into account (e.g. prepayments, duration, purchase options, etc.), being the contractual period (including extension options) the maximum period considered to measure the expected credit losses. In the case of financial instruments with an uncertain maturity period and a component of undrawn commitment (e.g: credit cards), expected life is estimated considering the period for which the entity is exposed to credit risk and the effectiveness of management practices that mitigates such exposure. · Impairment recognition: the main change with respect to the current standard related to assets measured at fair value with changes recognised through other comprehensive income. The portion of the changes in fair value due to expected credit losses will be recorded at the current profit and loss account while the rest will be recorded in other comprehensive income. (c) Transition The criteria established by IFRS 9 for the classification, measurement and impairment of financial assets, will be applied in a retrospective way, by adjusting the opening balance at January 1, 2018, without restating the comparative consolidated financial statements. As of January 1, 2018, the impact in allowance for impairment losses and provisions for off-balance sheet risk by applying IFRS 9 is an increase in 3,256 million pesos, from 17,961 million pesos under IAS 39 model to 21,217 million pesos under IFRS 9 model. These estimates are based on assumptions, judgements and estimation techniques that will continue under validation during 2018. The main causes of this impact are the requirements to record an allowance for impairment losses for the whole life of the transaction for instruments where a significant risk increase has been identified after initial recognition, in addition to forward-looking information in the allowance for impairment losses and in the provisions for off-balance sheet. The implementation of IFRS 9 will not have an effect in the capitalization ratios of the Bank since those ratios are calculated in accordance with Mexican Banking GAAP. IFRS 9 implementation strategy and governance The Bank has established a workstream with the aim of adapting its processes to the new classification standards for financial instruments, accounting of hedges and estimating credit risk impairment. Accordingly, since 2016, the Bank has been working towards defining an objective internal model and analyzing all the changes which are needed to adapt accounting classifications and credit risk impairment estimation models in force to the previous definitions. The process was completed in 2017. Regarding the governance structure, the Bank set up a regular committee to manage the project, and a task force, which is responsible for its tasks, ensuring that the pertinent responsible teams take part in coordination with all areas. Hence, the main divisions involved in the project at the highest level, and which are thus represented in the project governance bodies, are: risks, financial accounting & management control and technology and operations. Internal audit was involved in the project, having kept regular meetings regarding the status of the project. The governance structure currently implemented complies with the requirements set out in IFRS 9. Main project stages and milestones In relation to the entry into force of this new standard, in its 2016 consolidated financial statements the Bank reported the progress and main milestones achieved to that date regarding the implementation plan for its adoption. This report includes an update on this information included in the 2016 consolidated financial statements. The work undertaken by Bank includes an assessment of the financial instruments included in the classification and measurement requirements of IFRS 9 and the development of impairment methodology for calculating expected loss allowance for impairment losses and provisions for off-balance sheet. With regard to classification and measurement, since 2016 the Bank has been carrying out an analysis of its stock of products, focusing mainly on those that could trigger a change in accounting methodology, due to the business model involved and failure to meet Solely Payments of Principal and Interest (SPPI) test requirements. Additionally, using information from 2017, the Bank has updated this analysis and reviewed any new products during the period, assessing both its asset management strategies (identifying the corresponding business model), and broadening the review of products in |
Accounting policies
Accounting policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting policies | |
Accounting policies | 2. Accounting policies The accounting policies and measurement bases applied in preparing the consolidated financial statements were as follows: a) Foreign currency transactions i. Functional currency The functional currency of all entities comprising the Bank is the Mexican Peso (hereinafter, peso or $). Therefore, all balances and transactions denominated in currencies other than the peso are deemed to be denominated in foreign currency. ii. Recognition of exchange differences The gains and losses arising on the translation of foreign currency balances to the functional currency are recognized at their net amount under Exchange differences (net) in the consolidated income statement, except for exchange differences arising on financial instruments at Fair Value Through Profit or Loss (FVTPL), which are recognized under Gains/(losses) on financial assets and liabilities (net) in the consolidated income statement without distinguishing them from other changes in fair value and for exchange differences arising on non-monetary items measured at Fair Value Through Other Comprehensive Income (FVTOCI), which are recognized under Valuation adjustments in the consolidated other comprehensive income. iii. Exposure to foreign currency risk In preparing the consolidated financial statements, transactions in currencies other than the Bank’s functional currency (foreign currencies) are recognized at the exchange rates prevailing at the dates of the transactions. Monetary items denominated in foreign currencies are retranslated to the functional currency at the rates prevailing at the consolidated balance sheet date. Non-monetary items carried at fair value in foreign currencies are retranslated to the functional currency at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured at historical cost in a foreign currency are not retranslated. The Bank performs a large number of foreign currency transactions, mainly in US dollars (USD). The transactions, assets and liabilities denominated in foreign currencies are translated to pesos based on the exchange rates published by the Central Bank. The “Fix” (48‑hour) exchange rate used was $20.6194 per one USD and $19.6629 per one USD as of December 31, 2016 and 2017, respectively. b) Basis of consolidation i. Subsidiaries The consolidated financial statements incorporate the financial statements of Banco Santander (México) and entities (including structured entities) controlled by Banco Santander (México) together with its subsidiaries. Control is achieved when the Banco Santander (México): · has power over the investee; · is exposed, or has rights, to variable returns from its involvement with the investee; and · has the ability to use its power to affect its returns. The Bank reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. When the Bank has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Bank considers all relevant facts and circumstances in assessing whether or not the Bank’s voting rights in an investee are sufficient to give it power, including: · the size of the Bank’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders; · potential voting rights held by the Bank, other vote holders or other parties; · rights arising from other contractual arrangements; and · any additional facts and circumstances that indicate that the Bank has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings. Consolidation of a subsidiary begins when the Bank obtains control over the subsidiary and ceases when the Bank loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated income statement and other comprehensive income from the date the Bank gains control until the date when the Bank ceases to control the subsidiary. On acquisition of control of a subsidiary that meets the definition of a business, its assets, liabilities and contingent liabilities are recognized at fair value at the date of acquisition. Any excess of the acquisition cost, the amount recognized for non-controlling interests of the acquiree and the fair value of the acquirer’s previous held equity interest in the acquiree over the fair values of the identifiable net assets acquired are recognized as goodwill (see Note 16). Negative differences are recognized in the consolidated income statement on the date of acquisition. The consolidated income statement and each component of other comprehensive income are attributed to the owners of the Bank and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Bank and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance (see Note 27). When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Bank’s accounting policies. The financial statements of the subsidiaries are fully consolidated with those of the Bank. All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Bank are eliminated in full on consolidation. The share of third parties of the Bank’s consolidated equity is presented under Non-controlling interests in the consolidated balance sheet (see Note 27). Their share of the profit for the year is presented under Profit attributable to non-controlling interests in the consolidated income statement. The results of subsidiaries acquired during the year are included in the consolidated income statement from the date of acquisition to year-end. Similarly, the results of subsidiaries disposed of during the year are included in the consolidated income statement from the beginning of the year to the date of disposal. A listing of the subsidiaries as of December 31, 2016 and 2017 is summarized in Note 48. ii. Investments in associates or joint ventures (jointly controlled entities) An associate is an entity over which the Bank has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control. The results and assets and liabilities of associates or joint ventures are incorporated in the consolidated financial statements using the equity method of accounting, except when the investment, or a portion thereof, is classified as held for sale, in which case it is accounted for in accordance with IFRS 5. Under the equity method, an investment in an associate or a joint venture is initially recognized in the consolidated balance sheet at cost and adjusted thereafter to recognize the Bank’s share of the consolidated income statement and other comprehensive income of the associate or joint venture. When the Bank’s share of losses of an associate or a joint venture exceeds the Bank’s interest in that associate or joint venture (which includes any long-term interests that, in substance, form part of the Bank’s net investment in the associate or joint venture), the Bank discontinues recognizing its share of further losses. Additional losses are recognized only to the extent that the Bank has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture. An investment in an associate or a joint venture is accounted for using the equity method from the date on which the investee becomes an associate or a joint venture. On acquisition of the investment in an associate or a joint venture, any excess of the cost of the investment over the Bank’s share of the net fair value of the identifiable assets and liabilities of the investee is recognized as goodwill, which is included within the carrying amount of the investment. Any excess of the Bank’s share of the net fair value of the identifiable assets and liabilities over the cost of the investment, after reassessment, is recognized immediately in the consolidated income statement in the period in which the investment is acquired. The requirements of IAS 39 are applied to determine whether it is necessary to recognize any impairment loss with respect to the Bank’s investment in an associate or a joint venture. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with IAS 36 as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized in accordance with IAS 36 to the extent that the recoverable amount of the investment subsequently increases. The Bank discontinues the use of the equity method from the date when the investment ceases to be an associate or a joint venture, or when the investment is classified as held for sale. When the Bank retains an interest in the former associate or joint venture and the retained interest is a financial asset, the Bank measures the retained interest at fair value at that date and the fair value is regarded as its fair value on initial recognition in accordance with IAS 39. The difference between the carrying amount of the associate or joint venture at the date the equity method was discontinued, and the fair value of any retained interest and any proceeds from disposing of a part interest in the associate or joint venture is included in the determination of the gain or loss on disposal of the associate or joint venture. In addition, the Bank accounts for all amounts previously recognized in other comprehensive income in relation to that associate or joint venture on the same basis as would be required if that associate or joint venture had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognized in other comprehensive income by that associate or joint venture would be reclassified to the consolidated income statement on the disposal of the related assets or liabilities, the Bank reclassifies the gain or loss from equity to the consolidated income statement (as a reclassification adjustment) when the equity method is discontinued. The Bank continues to use the equity method when an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate. There is no remeasurement to fair value upon such changes in ownership interests. When the Bank reduces its ownership interest in an associate or a joint venture but the Bank continues to use the equity method, the Bank reclassifies to the consolidated income statement the proportion of the gain or loss that had previously been recognized in other comprehensive income relating to that reduction in ownership interest if that gain or loss would be reclassified to the consolidated income statement on the disposal of the related assets or liabilities. When a Bank’s subsidiary transacts with an associate or a joint venture of the Bank, profits and losses resulting from the transactions with the associate or joint venture are recognized in the Bank’s consolidated financial statements only to the extent of interests in the associate or joint venture that are not related to the Bank. As of December 31, 2016 and 2017, the Bank did not have any associates. As of December 31, 2016 and 2017, the Bank has a commercial alliance with Elavon México in order to share revenues and expenses jointly related to the merchant services. This commercial alliance is not material to the Bank’s consolidated financial statements. iii. Structured entities When the Bank incorporates entities, or holds ownership interests therein, to enable its customers to access certain investments, or for the transfer of risks or other purposes (also called structured entities since the voting or similar power is not a key factor in deciding who controls the entity), the Bank determines, using internal criteria and procedures and taking into consideration the applicable legislation, whether control (as defined above) exists and, therefore, whether these entities should be consolidated. These structured entities include securitization special purpose vehicles (SPV) and employee benefit trusts (EBT) established for employee share-based plans, which are consolidated over which it is considered that the Bank continues to exercise control. Note 12.g contains information regarding securitized mortgage assets. Share-based payments are discussed in Note 41.b, 41.c and 41.d. iv. Business combinations Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Bank, liabilities incurred by the Bank to the former owners of the acquiree and the equity interests issued by the Bank in exchange for control of the acquiree. Acquisition-related costs are recognized in the consolidated income statement as incurred. At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at their fair value, except that: · deferred tax assets or liabilities, and assets or liabilities related to employee benefit arrangements are recognized and measured in accordance with IAS 12 and IAS 19, respectively; · liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment arrangements of the Bank entered into to replace share-based payment arrangements of the acquiree are measured in accordance with IFRS 2 at the acquisition date; and · assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 are measured in accordance with that Standard. Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed (see Note 2.m). If, after reassessment, the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree (if any), the excess is recognized immediately in the consolidated income statement as a bargain purchase gain. Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity’s net assets in the event of liquidation may be initially measured either at fair value or at the non-controlling interests’ proportionate share of the recognized amounts of the acquiree’s identifiable net assets. The choice of measurement basis is made on a transaction-by-transaction basis. Other types of non-controlling interests are measured at fair value or, when applicable, on the basis specified in another IFRS. When the consideration transferred by the Bank in a business combination includes assets or liabilities resulting from a contingent consideration arrangement, the contingent consideration is measured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments are adjustments that arise from additional information obtained during the ‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date. The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement period adjustments depends on how the contingent consideration is classified. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration that is classified as an asset or a liability is remeasured at subsequent reporting dates in accordance with IAS 39, or IAS 37 Provisions, Contingent Liabilities and Contingent Assets, as appropriate, with the corresponding gain or loss being recognized in the consolidated income statement. When a business combination is achieved in stages, the Bank’s previously held equity interest in the acquiree is remeasured to its acquisition-date fair value and the resulting gain or loss, if any, is recognized in the consolidated income statement. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are reclassified to the consolidated income statement where such treatment would be appropriate if that interest were disposed of. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Bank reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see above), or additional assets or liabilities are recognized, to reflect additional information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognized at that date. v. Changes in the Bank’s ownership interests in existing subsidiaries Changes in the Bank’s ownership interests in subsidiaries that do not result in the Bank losing control over the subsidiaries are accounted for as equity transactions, no gain or loss is recognized in the consolidated income statement and the initially recognized goodwill is not remeasured. The carrying amounts of the Bank’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in Accumulated reserves in Shareholders’ equity and attributed to owners of the Bank. When the Bank loses control of a subsidiary, a gain or loss is recognized in the consolidated income statement and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. All amounts previously recognized in Valuation adjustments in the consolidated other comprehensive income in relation to that subsidiary are accounted for as if the Bank had directly disposed of the related assets or liabilities of the subsidiary (i.e., reclassified to the consolidated income statement or transferred to another category of equity as specified/permitted by applicable IFRS). The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under IAS 39, when applicable, the cost on initial recognition of an investment in an associate or a joint venture. c) Definitions and classification of financial instruments i. Definitions A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets and financial liabilities are recognized when the Bank becomes a party to the contractual provisions of the financial instruments. An equity instrument is any agreement that evidences a residual interest in the assets of the issuing entity after deducting all of its liabilities. IAS 39 defines a derivative as a financial instrument or other contract within the scope of the Standard with all three of the following characteristics: · its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract (sometimes called the “underlying”); · it requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors; and · it is settled at a future date. Hybrid financial instruments are contracts that simultaneously include a non-derivative host contract together with a derivative, known as an embedded derivative, that is not separately transferable and has the effect that some of the cash flows of the hybrid contract vary in a way similar to a stand-alone derivative. Compound financial instruments are contracts that simultaneously create for their issuer a financial liability and an equity instrument (such as convertible bonds, which entitle their holders to convert them into equity instruments of the issuer). The following transactions are not treated for accounting purposes as financial instruments: - Pensions and similar obligations (see Note 24.c.). - Share-based payments (see Note 41.b., 41.c. and 41.d.). ii. Classification of financial assets for measurement purposes Financial assets are initially classified into the various categories used for management and measurement purposes, unless they relate to Cash and balances with central banks or Hedging derivatives, which are reported separately. Financial assets are included for measurement purposes in one of the following categories: - Financial assets held for trading (at FVTPL): 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 included in this category in order to obtain more relevant information, either because this eliminates or significantly reduces recognition or measurement inconsistencies (accounting mismatches) that would otherwise arise from measuring assets or liabilities or recognizing the gains or losses on them on different bases, or because a group of financial assets or financial assets and liabilities is managed and its performance is evaluated on a fair value basis, such as reverse repurchase agreements, in accordance with a documented risk management or investment strategy, and information about the group is provided on that basis to the Bank’s key management personnel. Financial assets may only be included in this category on the date they are acquired or originated. - Available-for-sale financial assets: This category includes debt instruments not classified as Held-to-maturity investments, Loans and receivables or Financial assets at fair value through profit or loss, and equity instruments issued by entities other than subsidiaries, associates and joint ventures, 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 the investment arising from ordinary lending activities, such as the cash amounts of loans drawn down and not yet repaid by customers or the deposits placed with other credit institutions, whatever the legal instrument and unquoted debt securities constituting part of the Bank’s business. - The Bank generally intends to hold the loans and receivables granted by it until their final maturity and, therefore, they are presented in the consolidated balance sheet at their amortized cost (net of allowance for impairment losses). - Held-to-maturity investments: This category includes debt instruments traded in an active market, with fixed maturity and with fixed or determinable payments, for which the Bank has both the intention and proven ability to hold to maturity. As of December 31, 2016 and 2017, the Bank did not hold any investment classified as held to maturity. iii. Classification of financial assets for presentation purposes Financial assets are classified by nature into the following items in the consolidated balance sheet: - Cash and balances with the Central Bank: cash balances and balances receivable including the compulsory deposits with the Central Bank. - Loans and receivables: includes the debit balances of all credit and loans granted by the Bank, other than those classified as securities, as well as finance lease receivables and other receivables and other debit balances of a financial nature in favor of the Bank, such as balances receivable from clearing houses and settlement agencies for transactions carried out on the stock exchange and other organized markets, bonds given in cash, capital calls, fees and commissions receivable for financial guarantees and debit balances arising from transactions not originating in banking transactions and services. Loans and receivables are classified in accordance with the institutional sector to which the debtor belongs, into: - Loans and advances to credit institutions: loans of any nature, including deposits provided to credit institutions. - Loans and advances to customers: includes all other loans. - Debt instruments: bonds and other debt securities that represent a debt obligation for their issuer and that bear interest. - Equity instruments: financial instruments issued by other entities, such as shares, which have the nature of equity instruments for the issuer, other than investments in subsidiaries, associates or jointly controlled entities. - Trading derivatives: includes the fair value in favor of the Bank of derivatives, which do not form part of hedge accounting relationship, including embedded derivatives separated from hybrid financial instruments. - Hedging derivatives: includes the fair value of derivatives in favor of the Bank, including embedded derivatives separated from hybrid financial instruments, designated as hedging instruments in hedge accounting. iv. Classification of financial liabilities for measurement purposes Financial liabilities are initially classified into the various categories used for management and measurement purposes, unless they relate to Hedging derivatives, which are reported separately. Financial liabilities are classified for measurement purposes into one of the following categories: - Financial liabilities held for trading (at FVTPL): this category includes financial liabilities incurred for the purpose of generating a profit in the near term from fluctuations in their prices, financial derivatives not designated as hedging instruments and financial liabilities arising from the outright sale of financial assets acquired under reverse repurchase agreements, securities loans and sales of borrowed securities (short positions). - Other financial liabilities at fair value through profit or loss: financial liabilities are included in this category when such classification provides for more relevant information regarding the financial liability, either because this eliminates or significantly reduces recognition or measurement inconsistencies (accounting mismatches) that would otherwise arise from measuring the liabilities or recognizing the gains or losses on them on different bases, or because a group of financial liabilities or financial assets and liabilities is managed and its performance is evaluated on a fair value, such as repurchase agreements, in accordance with a documented risk management or investment strategy, and information about the group is provided on that basis to the Bank’s key management personnel. Liabilities may only be included in this category on the date when they are incurred or originated. - Financial liabilities at amortized cost: this category includes financial liabilities, irrespective of their instrumentation and maturity, not included in any of the above-mentioned categories, which arise from the ordinary borrowing activities. iv. Classification of financial liabilities for presentation purposes Financial liabilities are classified by nature into the following items in the consolidated balance sheet: - Deposits: includes all repayable balances received in cash by the Bank, other than those classified as marketable securities and those having the substance of subordinated liabilities. This item also includes cash bonds and cash consignments received the amount of which may be invested without restriction. Deposits are classified based on type of depositor as follows: - Deposits from the Central Bank: deposits of any nature received from the Central Bank. - Deposits from credit institutions: deposits of any nature, including credit received and money market operations in the name of credit institutions. - Customer deposits: includes the remaining deposits. - Marketable debt securities: includes the amount of bonds and other debt represented by marketable securities, other than those having the substance of subordinated liabilities. This item includes the component considered to be a financial liability component of compound financial instruments issued by the Bank. - Trading derivatives: includes the fair value of derivatives with a liability balance, including embedded derivatives separated from the host contract, which do not form part of hedge accounting. - Short positions: includes the amount of financial liabilities arising from the outright sale or from pledging of financial assets acquired under reverse repurchase agreements, securities loans and sales of borrowed securities. - Subordinated liabilities: amount of financing received which, for the purposes of payment priority, ranks behind ordinary debt. This category also includes the financial instruments issued by the Bank, which form part of the Bank’s capital management for regulatory purposes, but do not meet the requirements for classification as equity for accounting purposes. - Other financial liabilities: includes the amount of payment obligations having the nature of financial liabilities that are not included in any of the aforementioned categories, including liabilities under financial guarantee contracts. - Hedging derivatives: includes the fair value of the Bank’s liability in respect of derivatives, including embedded derivatives separated from hybrid financial instruments, designated as qualified hedging instruments in hedge accounting. d) Measurement of financial assets and liabilities and recognition of fair value changes In general, financial assets and liabilities are initially recognized at fair value, which, in the absence of evidence to the contrary, is deemed to be the transaction price. The amount initially recognized for financial instruments not measured at FVTPL is adjusted for transaction costs. Financial assets and liabilities are subsequently measured at each period-end as follows: i. Measurement of financial assets Financial assets are measured at fair value without deducting any transaction costs that may be incurred on their disposal. Transaction costs are considered for loans and receivables, held-to-maturity investments, equity instruments whose fair value cannot be determi |
Significant events
Significant events | 12 Months Ended |
Dec. 31, 2017 | |
Significant events | |
Significant events | 3. Significant events The following is a summary of the significant corporate transactions undertaken by the Bank over the last three years: 3.1 Mexican real estate sector During the past years, the historic shortage of housing in Mexico drove the Mexican Government to actively incentivize its development. These incentives led to increased construction of subsidized housing. The lack of infrastructure, the long distances to workplaces and associated transportation costs caused increased abandonment and mortgage default of these homes. The foregoing, together with certain changes in governmental policies in the second quarter of 2012, originated a sharp decrease in the construction and sales reported by the principal Mexican homebuilders and adjustments to their growth plans and business models in order to compensate for the impacts of these changes. In April and June 2014, two of the three major Mexican real estate companies were declared bankrupt as they fulfilled the requirements provided by the Mexican Commercial Bankruptcy Law to be considered insolvent. In June and November 2015, the Mexican authorities declared concluded the bankruptcy act for these two Mexican real estate companies. In early December 2014, the remaining Mexican real estate company sent to the relevant court, a request to initiate a pre-arranged bankruptcy. In January 2015, this real estate company was declared bankrupt under the Mexican Commercial Bankruptcy Law, which was declared concluded by the Mexican authorities in February 2016. As of December 31, 2016 and 2017, the loan portfolio of the Bank with the three principal Mexican real estate companies amounted to 2,201 million pesos and 44 million pesos, respectively, which represents 0.38% and 0.01% of loans and advances to customers and 0.16% and 0.003% of the total assets of the Bank, of which 1,505 million pesos and 44 million pesos, respectively, are impaired. As of December 31, 2016 and 2017, the Bank has made the corresponding allowance for impairment losses based on the incurred loss methodology for this loan portfolio and considered that this allowance for impairment losses adequately covers all known or knowable losses that could arise from this loan portfolio. 3.2 Sale agreement for custodial business On July 24, 2015, Banco Santander (Spain) made an offer to the Bank to purchase their custodial business. This offer was accepted by the Bank. The agreed sale price was 1,191 million pesos. This offer required the Bank to transfer their custodial business; however, this obligation was subject to the following conditions: i) was valid until June 30, 2016; ii) was subject to the same conditions established in a global agreement signed by Banco Santander (Spain) consisted of the sale of the custodial businesses in Spain, Mexico and Brazil; iii) authorizations must have been obtained from the Mexican authorities to establish a special purpose entity whose purpose was the operation of the custodial business in Mexico; iv) was dependent on the global transaction, if it was terminated, the transaction would also terminate in Mexico; and v) the transaction should have been formalized through the signing of the respective contracts. On August 2016, Mexican authorities authorized Banco Santander (Spain) to establish and operate a new bank in Mexico named Banco S3. The activities of Banco S3 would be focused on the specialized business of deposits, custodial and management of securities and cash in Mexico. As mentioned in Note 1.d to the consolidated financial statements, on January 2, 2018, the Bank, as seller and Banco S3, as buyer, entered into a purchase-sale agreement of the custody business of the Bank. On February 2, 2018, Banco S3 obtained the authorization from the SHCP and the CNBV to operate as a financial institution in Mexico. 3.3 Scotiabank Inverlat loan portfolio acquisition On November 26, 2014, the Bank entered into an agreement to acquire a non-revolving consumer loans portfolio from Scotiabank Inverlat, S.A. (Scotiabank). On March 17, 2015, after having obtained applicable regulatory authorizations, the Bank signed a contract with Scotiabank to acquire the non-revolving consumer loans portfolio. This acquisition was finalized on April 2015. The acquired portfolio consists of 39,252 loans with a face value of 3,179 million pesos. The fair value of the acquired loan portfolio was 3,002 million pesos. 3.4 New auditors 2016 The Board of Directors of the Bank by meeting on July 23, 2015, agreed to appoint PricewaterhouseCoopers, S.C. (PwC), as the external auditor of the Bank to conduct the audit of the consolidated financial statements for 2016, 2017 and 2018. This decision was taken in line with corporate governance guidelines recommendations periodic rotation of the external auditor, on the proposal of the Audit Committee. 3.5 Issuance of subordinated liabilities On December 29, 2016, the Bank issued Perpetual Subordinated Non-Preferred Contingent Convertible Additional Tier 1 Capital Notes (Subordinated Additional Tier 1 Capital Notes) for an amount of 500 million USD. The Subordinated Additional Tier 1 Capital Notes are convertible in common shares “F” Series, depending on the occurrence of some trigger events (see Note 22). This issue was privately acquired in its entirety by our Parent company (see Note 22). 3.6 Auction of Bonos de Regulación Monetaria Reportables The Central Bank carried out an auction of Bonos de Regulación Monetaria Reportables (BREMS R) whose objective is to contribute to the healthy development of the Mexican Financial System as well as to make its monetary policy more efficient. On May 12, 2016, the Central Bank established in the Federal Official Gazette (DOF by its Spanish acronym) the rules of the auction for these BREMS R as an alternative for Mexican banks to comply with the compulsory deposits required by the Central Bank. BREMS R can only be acquired by Mexican banks through auctions carried out by the Central Bank as well as through repurchase agreement transactions between them or between Mexican banks as per the provisions established by the Central Bank. As of December 31, 2016 and 2017, the Bank’s position of BREMS R amounted to 7,781 and 7,783 million pesos, respectively, which were settled with resources originated from the cancelation of the compulsory deposits (see Note 9). 3.7 Acquisition of shares of Bolsa Mexicana de Valores, S.A.B. de C.V. from the Brokerage House As mentioned in Note 46, on November 22, 2017, through an assignment contract, the Bank acquired from the Brokerage House its participation held in the Trust 1576 (the Trust) as depositary of "BOLSA A" shares of Bolsa Mexicana de Valores, S.A.B. of C.V., as well as the rights and obligations derived from the Trust's contract for 14,176,749 shares and an amount of 449 million pesos. This purchase of shares has been recognized within the caption "Available for sale financial assets" in the consolidated balance sheet of the Bank. 3.8 Authorization to incorporate Inclusión Financiera, S.A. de C.V. In July 2017, the SHCP authorized the Group to incorporate a new company called Santander Inclusión Financiera, S.A. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad Regulada, Grupo Financiero Santander México (Inclusión Financiera) as a subsidiary of the Bank, which its main activity is granting credits to low income creditors. The aim of this incorporation is to achieve a social impact through a competitive offer in the sector of microcredits. As of December 31, 2017, Inclusión Financiera has started operations through the placement of credits under this scheme for an amount less than 1 million pesos. 3.9 Corporate Restructuring As indicated in Note 1.d, through the Ordinary and Extraordinary Shareholders' Meeting held on December 8, 2017, it was approved to carry out a corporate restructuring process that involves the Group, the Bank and the Brokerage House. As well as the constitution of a New Holding Company. “The Corporate Restructuring” was authorized by the SHCP through Official Letter UBVA/077/2017 dated December 13, 2017, which was effective starting January 1, 2018 from the accounting perspective, simultaneously with the corporate acts of “the Corporate Restructuring”. The purpose of “the Corporate Restructuring” is to comply with certain guidelines issued by the European Central Bank, which establish, among other matters, that the contributions from minority shareholders can only be computed in the consolidated regulatory capital of Banco Santander, S.A. (Spain), if: (i) the company in which they own shares collects deposits from the general public (a credit institution in the case of Mexico) and (ii) such company’s equity is regulated. 3.10 Approval of a new technological model On October 26, 2017 the Board of Directors approved the purchase of Isban México, S.A. de C.V. (ISBAN) with the objective of creating a new technology operating model for the Bank. The Bank will acquire the shares of ISBAN at 981 million pesos. This amount will be adjusted in accordance with the value of the shareholders' equity of ISBAN on the date that the Bank has all the regulatory authorizations to carry out this transaction. As of the date of issuance of these consolidated financial statements, the corresponding approvals have not yet been obtained from the regulatory authorities. 3.11 Merger of Santander Vivienda, S.A. of C.V. On December 21, 2016, the SHCP authorized the merger of Santander Vivienda, S.A. de C.V. (Santander Vivienda) as merging entity with Santander Hipotecario, S.A. de C.V. (Santander Hipotecario) and Santander Holding Vivienda, S.A. de C.V. (Santander Holding Vivienda) both as merged entities, which became extinct. The merger of these entities was effective on January 1, 2017. This merger was authorized by the Extraordinary General Shareholders' Meeting on December 30, 2016. |
Immaterial misstatement on cons
Immaterial misstatement on consolidated statement of cash flows from prior years | 12 Months Ended |
Dec. 31, 2017 | |
Immaterial misstatement on consolidated statement of cash flows from prior years | |
Immaterial misstatement on consolidated statement of cash flows from prior years | 4. Immaterial misstatement on consolidated statement of cash flows from prior years During 2016, the Bank identified an immaterial misstatement in its 2015 consolidated statement of cash flows. The Bank incorrectly calculated the effect of foreign exchange rate changes on foreign currency cash deposits. This change had no impact to net increase (decrease) in cash and cash equivalents in 2015 and had no impact on cash and cash equivalents as of December 31, 2015. The Bank has deemed this misstatement immaterial to its previously issued consolidated statements of cash flows taken as a whole. The following table reflects the changes in the consolidated statement of cash flow for the years ended December 31, 2015: As of December 31, 2015 As originally reported Adjustments As adjusted A. CASH FLOWS FROM OPERATING ACTIVITIES: 11,938 5,567 17,505 Adjustments made to obtain the cash flows from operating activities- 404 5,567 5,971 Effect of foreign exchange rate changes on foreign currency cash deposits (5,733) 5,567 (166) Net (increase)/decrease in operating assets- (214,901) — (214,901) Net increase/(decrease) in operating liabilities- 213,440 — 213,440 Income tax paid (1,187) — (1,187) Dividends received from equity instruments 118 — 118 B. CASH FLOWS FROM INVESTING ACTIVITIES: (2,946) — (2,946) C. CASH FLOWS FROM FINANCING ACTIVITIES: (6,760) — (6,760) D. EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON FOREIGN CURRENCY CASH DEPOSITS 5,733 (5,567) 166 E. NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 7,965 — 7,965 F. CASH AND CASH EQUIVALENTS AT THE BEGINNING OF YEAR 51,823 — 51,823 G. CASH AND CASH EQUIVALENTS AT THE END OF YEAR 59,788 — 59,788 |
Distribution of the Bank's prof
Distribution of the Bank's profit and Earnings per share | 12 Months Ended |
Dec. 31, 2017 | |
Distribution of the Bank's profit and Earnings per share | |
Distribution of the Bank's profit and Earnings per share | 5. Distribution of the Bank’s profit and Earnings per share 5.1 Distribution of the Bank’s profit The distributions of the Bank’s net profit for the years ended December 31, 2016 and 2017 approved by the Board of Directors during the annual general meetings are as follows: 2015 2016 2017 Profit of the year 14,064 16,536 18,678 Dividends declared 6,760 17,468 8,910 Dividend per share (pesos) 0.08 0.22 0.11 Date of payment 05/28/2015 and 05/26/2016 and 05/30/2017 and 12/21/2015 12/30/2016 12/27/2017 5.2 Earnings per share Acording to IAS 33 Earnings per share, the Bank should present and adjust retrospectively, the basic and diluted earnings per share, if the number of ordinary or potential ordinary shares outstanding increases as a result of a capitalisation, bonus issue or share split, or decreases as a result of a reverse share split. i. Basic earnings per share Basic earnings per share are calculated by dividing the profit attributable to the Parent by the weighted average number of shares outstanding during the year, excluding the average number of treasury shares, if any, held in the year (see Note 29.d.). Accordingly, basic earnings per share after the Merger were determined as follows: 2015 2016 2017 Profit attributable to the Parent 14,051 16,536 18,678 Weighted average number of shares outstanding 6,777,381,551 6,777,381,551 6,777,381,551 Basic earnings per share after the Merger (pesos) 2.07 2.44 2.76 ii. Diluted earnings per share In calculating diluted earnings per share, the amount of profit attributable to the Parent and the weighted average number of shares issued, net of treasury shares, are adjusted to consider all the dilutive effects inherent to potential shares (see Note 29.d.). Accordingly, diluted earnings per share after the Merger were determined as follows: 2015 2016 2017 Profit attributable to the Parent 14,051 16,536 18,678 Weighted average number of shares outstanding 6,777,381,551 6,777,381,551 6,777,381,551 Dilutive effect of rights on shares 9,612,806 9,612,806 9,612,806 Adjusted number of shares 6,786,994,357 6,786,994,357 6,786,994,357 Diluted earnings per share after the Merger (pesos) 2.07 2.44 2.75 |
Compensation of Directors, Exec
Compensation of Directors, Executive Officers and other key managment personnel | 12 Months Ended |
Dec. 31, 2017 | |
Compensation of Directors, Executive Officers and other key management personnel | |
Compensation of Directors, Executive Officers and other key management personnel | 6. Compensation of Directors, Executive Officers and other key management personnel The Bank considers as key management personnel the directors, the executive officers and the members of the audit committee, the corporate practices, nominating and compensation committee, the comprehensive risk management committee and the remuneration committee. a) Remuneration of directors Our shareholders establish the compensation of our directors at the annual shareholders’ meeting. Accordingly, only independent directors receive compensation for their duties. Under Mexican law, we are not required to disclose on an individual basis the compensation of our directors, our executive officers and the members of the audit committee, the corporate practices, nominating and compensation committee, the comprehensive risk management committee and the remuneration committee, and we do not otherwise publicly disclose such information. The aggregate compensation paid to independent directors who were members of the audit committee, the corporate practices, nominating and compensation committee, the comprehensive risk management committee, the remuneration committee and the Board of Directors of the Bank amounted to 13 million pesos during 2015, 13 million pesos during 2016 and 12 million pesos during 2017, paid as attendance fees. b) Remuneration of executive officers The aggregate amount for compensation and benefits to executive officers amounted to 282 million pesos during 2015, 401 million pesos during 2016 and 416 million pesos during 2017. The main benefits paid to the Bank’s executive officers are: Christmas bonus, vacation bonus, holidays, performance bonus, share-based payments, health care services, health insurance, life insurance and retirement fund. The criteria for granting and paying bonus compensation vary according to the activities performed by the different areas and, therefore, payment of the bonus may vary depending on the department and activities performed by each member. c) Post-employment and other long-term benefits Our executive officers may participate in the same pension and medical expenses plan that is available to the Bank’s employees, but at different contribution percentages to the ones made by the rest of the employees. The total post-employment benefits (including pension plan, medical expenses and life insurance policies) to executive officers amounted to 361 million pesos at December 31, 2015, 265 million pesos at December 31, 2016 and 265 million pesos at December 31, 2017. d) Local Program The Bank established a share-based variable compensation plan for its executive officers and other executives (Local Program). The plan is settled through equity instruments of the Parent company and is recognized as a cash-settled share-based payment transaction. Details of the plan are presented in Note 41.b. e) Corporate performance shares plan 2014 On March 28, 2014, the shareholders of Banco Santander (Spain) approved a new share-based variable compensation plan denominated “Corporate performance shares plan 2014” applicable only to a certain group of executive officers. This plan provides a variable compensation linked to the performance of the stock of Banco Santander (Spain). The Corporate performance shares plan 2014 is payable in shares of the Parent company. This plan is recognized as a cash-settled share-based payment transaction. Details of the plan are presented in Note 41.c. f) Long-term incentive plan 2015 During September 2016, the Bank began to participate in a new corporate share-based variable compensation plan denominated “Long-term incentive plan 2015” applicable only to a certain group of executive officers. This plan provides a variable compensation linked to the growth of the earnings per share ratio and of the return on tangible equity of Banco Santander (Spain). This plan will be payable in shares of the Parent company in 2019. This plan is recognized as a cash-settled share-based payment transaction. Details of the plan are presented in Note 41.d. g) Loans to executive officers The loans granted to executive officers amount to 31 million pesos and 27 million pesos as of December 31, 2016 and 2017, respectively. |
Cash and balances with the Cent
Cash and balances with the Central Bank | 12 Months Ended |
Dec. 31, 2017 | |
Cash and balances with the Central Bank | |
Cash and balances with the Central Bank | 7. Cash and balances with the Central Bank The breakdown by type of balances of Cash and balances with the Central Bank is as follows: 12/31/2016 12/31/2017 Cash 24,887 21,538 Central Bank compulsory deposits 28,094 28,094 Deposits in the Central Bank 25,666 8,034 Accrued interest 16 21 78,663 57,687 Central Bank compulsory deposits relate to a minimum balance financial institutions are required to maintain with the Central Bank based on a percentage of deposits received from third parties. Note 44.a. includes a breakdown of the remaining maturity of Cash and balances with the Central Bank. The compulsory deposits required by the Central Bank have an indefinite term. Additionally, Note 44.d. includes the fair value amounts of these assets. |
Loans and advances to credit in
Loans and advances to credit institutions | 12 Months Ended |
Dec. 31, 2017 | |
Loans and advances to credit institutions | |
Loans and advances to credit institutions | 8. Loans and advances to credit institutions The breakdown by classification, type and currency of the balances of Loans and advances to credit institutions in the consolidated balance sheets is as follows: 12/31/2016 12/31/2017 Classification: Other financial assets at fair value through profit or loss 37,831 46,087 Loans and receivables 82,388 59,122 120,219 105,209 Type: Reciprocal accounts 26,017 18,569 Time deposits 96 71 Guarantee deposits - Collateral delivered for OTC derivatives transactions (Note 32) 51,414 34,542 Reverse repurchase agreements 37,831 46,087 Call money transactions granted 1,062 — Other accounts 3,799 5,940 120,219 105,209 Currency: Peso 59,629 69,311 USD 60,496 35,229 Other currencies 94 669 120,219 105,209 As of December 31, 2016 and 2017, time deposits consist of 96 million pesos and 71 million pesos, respectively related to deposits that the Bank holds in Mexican banks that reprices every 182 days with a fixed interest rate of 1.5%. “Call money transactions granted” represent interbank loan transactions agreed for periods equal to or less than 3 business days. As of December 31, 2017, there are no call money transactions granted. As of December 31, 2016, these transactions are as follows: Interest Rate Days (average) 12/31/2016 Mexican financial institutions 3 5.75 % 1,062 As of December 31, 2016, 77 million pesos of loans and advances to credit institutions, have been pledged in connection with derivatives transactions in organized markets, and are classified as restricted assets within Loans and advances to credit institutions – Loans and receivables. As of December 31, 2016 and 2017, 51,414 million pesos and 34,542 million pesos, respectively, of loans and advances to credit institutions, have been pledged in connection with OTC derivatives transactions, and are classified as restricted assets within Loans and advances to credit institutions – Loans and receivables (see Note 32). As of December 31, 2016 and 2017, 37,849 million pesos and 46,075 million pesos, respectively, of debt securities have been received as collaterals in connection with the reverse repurchase agreement transactions within Loans and advances to credit institutions – Other financial assets at fair value through profit or loss (see Note 31). Note 44.a. includes a breakdown of the remaining maturity of Loans and advances to credit institutions. Additionally, Note 44.d. includes the fair value amounts of these assets classified as Loans and advances to credit institutions – Loans and receivables. |
Debt instruments
Debt instruments | 12 Months Ended |
Dec. 31, 2017 | |
Debt Instruments | |
Debt Instruments | 9. Debt instruments a) Breakdown The breakdown by classification, type and currency of the balances of Debt instruments is as follows: 12/31/2016 12/31/2017 Classification: Financial assets held for trading 140,853 147,747 Available-for-sale financial assets 154,318 164,947 Loans and receivables 11,472 10,758 306,643 323,452 Type: Mexican government debt securities 229,514 224,003 Of which: Collateral delivered for OTC transactions (Note 32) 2,670 2,964 Foreign government debt securities 65,286 89,585 Of which: Brazilian Government Notes 34,359 34,488 US Government Treasury Bills (T-BILLS) 30,927 55,097 Debt securities issued by financial institutions 5,612 3,975 Other debt securities 6,231 5,889 306,643 323,452 Currency: Peso 220,390 200,666 USD 36,922 61,080 Brazilian Real (BRL) 34,359 34,488 Other currencies 14,972 27,218 306,643 323,452 The breakdown of the Debt instruments classified as Held for trading is as follows: 12/31/2016 12/31/2017 Federal Treasury Securities (CETES) 7,647 9,188 United Mexican States Bonds (UMS) 48 44 Federal Mexican Government Development Bonds (BONDES) 41,684 33,291 M and M10 Mexican Government Bonds 10,286 14,069 Mexican Bank Saving Protection Bonds (BPATs) 35,595 25,092 Federal Mexican Government Development Bonds in UDIS (1) (UDIBONDS) 8,881 6,930 T-BILLS 30,927 55,038 Other debt securities 5,785 4,095 140,853 147,747 (1) “UDIs” are Unidades de inversión, a peso-equivalent unit of account indexed for Mexican inflation. UDIs are units of account created by the Central Bank on April 4, 1995, the value of which in pesos is indexed to inflation on a daily basis, as measured by the change in the Mexican National Consumer Price Index (Índice Nacional de Precios al Consumidor or INPC). Under a UDI-based loan or financial instrument, the borrower’s nominal peso principal balance is converted either at origination or upon restructuring to a UDI principal balance and interest on the loan or financial instrument is calculated on the outstanding UDI balance of the loan or financial instrument. Principal and interest payments are made by the borrower in an amount of pesos equivalent to the amount due in UDIs at the stated value of UDIs on the day of payment. As of December 31, 2017, one UDI was equal to 5.934551 pesos. As of December 31, 2016 and 2017, 2,670 million pesos and 2,964 million pesos, respectively, of debt instruments, have been pledged in connection with OTC derivatives transactions, and are classified as restricted assets within Debt instruments – Financial assets held for trading (see Note 32). As of December 31, 2016 and 2017, 20,769 million pesos and 21,555 million pesos, respectively, of Debt instruments, have been pledged in connection with securities loans transactions and are classified as restricted assets within Debt instruments – Financial assets held for trading (of which 20,617 million pesos and 21,448 million pesos, respectively in which the lender is the Central Bank). As of December 31, 2016 and 2017, 82,916 million pesos and 89,147 million pesos, respectively, of Debt instruments, have been pledged in connection with repurchase agreement and are classified as restricted assets within Debt instruments – Financial assets held for trading. The breakdown of the Debt instruments classified as Available-for-sale is as follows: 12/31/2016 12/31/2017 UMS 17,479 29,832 M, M3 and M5 Mexican Government Bonds 75,639 76,174 BPATs 15,877 13,586 UDIBONDS 4,906 5,039 T-BILLS — 59 Brazilian Government Notes 34,359 34,488 Other debt securities 6,058 5,769 154,318 164,947 Of which: Before allowance for impairment losses 154,318 164,947 Allowance for impairment losses — — 154,318 164,947 As of December 31, 2016 and 2017, 42,347 million pesos and 13,881 million pesos, respectively, of Mexican government securities (M Bonds, BPATs, UMS and other debt securities) have been pledged in connection with repurchase agreements transactions, and are classified as restricted assets within Debt instruments – Available-for-sale. The breakdown by issuer rating of Debt instruments at December 31, 2016 is as follows: Private Debt Sovereign Debt Total % AAA — 30,927 30,927 10.07 % A 3,352 200,649 204,001 66.53 % BBB 3,709 17,527 21,236 6.93 % BB 4,609 45,698 50,307 16.41 % Below B 172 — 172 0.06 % 11,842 294,801 306,643 100 % The breakdown by issuer rating of Debt instruments at December 31, 2017 is as follows: Private Debt Sovereign Debt Total % AAA — 55,097 55,097 17.03 % A 2,651 181,965 184,616 57.08 % BBB 3,685 29,876 33,561 10.38 % BB 3,528 46,650 50,178 15.51 % 9,864 313,588 323,452 100 % As of December 31, 2016 and 2017, BBB ratings balance include mainly sovereign exposures in Mexico, while ratings balance BB includes both sovereign exposures in Brazil and Mexico. The sovereign rating of Brazil was downgraded from BB to below BB, as of the date of issuance of these consolidated financial statements. The breakdown of the Debt instruments classified as Loans and receivables is as follows: 12/31/2016 12/31/2017 Special CETES 3,691 2,975 BREMS R 7,781 7,783 11,472 10,758 Type: Unquoted 11,472 10,758 Of which: Before allowance for impairment losses 11,472 10,758 Allowance for impairment losses — — 11,472 10,758 As of December 31, 2017, 7,350 million pesos, of BREMS R have been pledged in connection with repurchase agreements transactions, and are classified as restricted assets within Debt instruments – Loans and receivables. As of December 31, 2016, no BREMS R have been pledged in connection with repurchase agreements transactions. b) Changes The changes in Available-for-sale – Debt instruments, disregarding the allowance for impairment losses, were as follows: 2015 2016 2017 Beginning balance 83,029 113,525 154,318 Net additions/(disposals) 30,527 44,366 8,703 Valuation adjustments (192) (3,453) 1,935 Amounts reclassified to consolidated income statement 161 (120) (9) Balance at year-end 113,525 154,318 164,947 c) Allowance for impairment losses As of December 31, 2016 and 2017 and during 2015, 2016 and 2017, the Bank has not recognized any impairment on Debt Instruments – Available-for-sale (see Note 28). d) Other information Note 44.a. contains a breakdown of the remaining maturity periods of Available-for-sale – Debt Instruments. Additionally, Note 44.d. includes the fair value amounts of these assets classified as Debt instruments – Loans and receivables. |
Equity instruments
Equity instruments | 12 Months Ended |
Dec. 31, 2017 | |
Equity instruments | |
Equity instruments | 10. Equity instruments a) Breakdown The breakdown by classification and type of Equity instruments is as follows: 12/31/2016 12/31/2017 Classification: Financial assets held for trading 1,822 2,562 Available-for-sale financial assets 326 795 Of which: Before allowance for impairment losses 326 795 Allowance for impairment losses — — 2,148 3,357 Type: Shares of Mexican companies 2,148 3,357 Shares of foreign companies — — 2,148 3,357 As of December 31, 2016 and 2017, 3 million pesos and 7 million pesos, respectively, of equity instruments have been received as guarantees and/or collateral in connection with the securities loans transactions within Equity instruments – Financial assets held for trading (see Note 31). As of December 31, 2016, 2 million pesos of Equity instruments, have been delivered in connection with securities loans transactions and are classified as restricted assets within Equity instruments – Financial assets held for trading. As of December 31, 2017, 107 million pesos of Equity instruments, have been pledged in connection with securities loans transactions and are classified as restricted assets within Equity instruments – Financial assets held for trading. Note 44.a. contains a breakdown of the remaining maturity periods of these assets. b) Changes The changes in Available-for-sale – Equity instruments, disregarding the allowance for impairment losses, were as follows: 2015 2016 2017 Beginning balance 311 348 326 Transfer to non-current assets held for sale — — — Net additions/(disposals) 41 30 472 Valuation adjustments (4) (52) (3) Amounts reclassified to consolidated income statement — — — Balance at year-end 348 326 795 Note 28.a. includes a breakdown of the valuation adjustments recognized in the consolidated other comprehensive income under Valuation adjustments - Available-for-sale financial assets. c) Allowance for impairment losses As of December 31, 2016 and 2017 and during 2015, 2016 and 2017, the Bank has not recognized any impairment on Equity Instruments - Available-for-sale. |
Trading derivatives (assets and
Trading derivatives (assets and liabilities) and Short positions | 12 Months Ended |
Dec. 31, 2017 | |
Trading derivatives (assets and liabilities) and Short positions | |
Trading derivatives (assets and liabilities) and Short positions | 11. Trading derivatives (assets and liabilities) and Short positions a) Trading derivatives The breakdown by type of inherent risk of the fair value of the Trading derivatives arranged by the Bank is as follows (see Note 32): 12/31/2016 12/31/2017 Debit Credit Debit Credit Balance Balance Balance Balance Interest rate risk 64,589 65,719 58,895 61,027 Currency risk 134,430 139,461 105,424 109,813 Market price risk 888 510 942 442 199,907 205,690 165,261 171,282 Note 44.a. contains a breakdown of the remaining maturity periods of trading derivatives. b) Short positions Following is a breakdown of the carrying amount of Short positions: 12/31/2016 12/31/2017 Securities loans: Debt instruments 20,246 21,050 Equity instruments 129 82 20,375 21,132 Short sales: Debt instruments (*) 40,763 47,311 61,138 68,443 (*) Note 44.a. contains a breakdown of the remaining maturity periods of these liabilities. |
Loans and advances to customers
Loans and advances to customers | 12 Months Ended |
Dec. 31, 2017 | |
Loans and advances to customers | |
Loans and advances to customers | 12. Loans and advances to customers a) Detail The detail by classification of Loans and advances to customers in the consolidated balance sheets is as follows: 12/31/2016 12/31/2017 Other financial assets at fair value through profit or loss 4,509 5,618 Loans and receivables 581,638 609,420 586,147 615,038 Of which: Before allowance for impairment losses 604,030 631,967 Allowance for impairment losses (17,883) (16,929) 586,147 615,038 As of December 31, 2016 and 2017, 3,214 million pesos and 2,566 million pesos, respectively, of loans and advances to customers have been pledged in connection with derivatives traded in organized markets, and are classified as restricted assets within Loans and advances to customers (see Note 32). Note 44.a. includes a breakdown of the remaining maturity of Loans and advances to customers. Additionally, Note 44.d. includes the fair value amounts of these assets classified as Loans and advances to customers – Loans and receivables. b) Breakdown The following is a breakdown by loan type, borrower sector, geographical area of residence and interest rate formula of the Loans and advances to customers. This breakdown reflects the Bank’s exposure to credit risk in its core business, disregarding the allowance for impairment losses: 12/31/2016 12/31/2017 By loan type: Commercial, financial and industrial loans 302,364 329,098 Public sector loans 57,022 49,294 Mortgage loans 125,636 126,835 Reverse repurchase agreements 4,509 5,618 Installment loans to individuals - Revolving consumer credit card loans 49,585 52,037 Non-revolving consumer loans 47,319 50,953 Impaired loans 17,595 18,132 604,030 631,967 By borrower sector: Public sector 57,022 49,294 Individuals 233,293 241,951 Communications and transportation 21,889 31,339 Construction 34,817 29,386 Manufacturing 59,984 60,261 Services 166,344 189,846 Tourism 15,036 14,008 Other sectors 15,645 15,882 604,030 631,967 By geographical area: Mexico 604,030 631,967 604,030 631,967 By interest rate: Fixed rate 216,957 245,530 Floating rate 387,073 386,437 604,030 631,967 As of December 31, 2016 and 2017, 4,511 million pesos and 5,618 million pesos, respectively, of debt securities have been received as collaterals in connection with the reverse repurchase agreement transactions within Loans and advances to customers – Other financial assets at fair value through profit or loss (see Note 31). c) Allowance for impairment losses The changes in the allowance for impairment losses on Loans and advances to customers were as follows: 2015 2016 2017 Beginning balance (15,198) (18,749) (17,883) Impairment losses on financial assets – Loans and receivables (*) (17,766) (19,022) (20,771) Of which: Individually assessed (6,172) (5,802) (4,181) Collectively assessed (11,594) (13,220) (16,590) Others (209) (157) (8) Write-off of impaired balances against recorded allowance for impairment losses 14,424 20,045 21,733 Balance at year-end (18,749) (17,883) (16,929) Of which: By method of assessment: Individually (7,943) (6,463) (2,196) Collectively (10,806) (11,420) (14,733) By geographical location of risk: Mexico (18,749) (17,883) (16,929) By classification of assets: Loans and advances to customers (18,749) (17,883) (16,929) (*) d) Impaired loans The breakdown of the changes in the balance of the financial assets classified as Loans and receivables – Loans and advances to customers that are considered to be impaired due to credit risk is as follows: 2015 2016 2017 Beginning balance 18,430 19,742 17,595 Additions 30,006 30,431 34,180 Transfers to performing loans (14,270) (12,533) (11,910) Written-off assets (14,424) (20,045) (21,733) Balance at year - end 19,742 17,595 18,132 The breakdown of the balance of the financial assets classified as Loans and receivables – Loans and advances to customers between no past due and past due at December 31, 2016 is as follows: With Balances Past Due by With no Past Due Balances or Less than 3 Months Past More than 12 Due 3 to 6 Months 6 to 9 Months 9 to 12 Months Months Total By type of loan: Commercial, financial and industrial loans 2,658 1,322 417 758 1,687 6,842 Mortgage loans 759 1,356 1,044 708 2,911 6,778 Installment loans to individuals Of which: Revolving consumer credit card loans 786 1,166 — — — 1,952 Non-revolving consumer loans 485 1,080 423 3 32 2,023 4,688 4,924 1,884 1,469 4,630 17,595 The breakdown of the balance of the financial assets classified as Loans and receivables – Loans and advances to customers between no past due and past due at December 31, 2017 is as follows: With Balances Past Due by With no Past Due Balances or Less than 3 Months Past More than 12 Due 3 to 6 Months 6 to 9 Months 9 to 12 Months Months Total By type of loan: Commercial, financial and industrial loans 2,509 2,472 664 127 235 6,007 Mortgage loans 1,086 1,624 1,186 815 2,650 7,361 Installment loans to individuals Of which: Revolving consumer credit card loans 868 1,467 — — — 2,335 Non-revolving consumer loans 647 1,287 472 4 19 2,429 5,110 6,850 2,322 946 2,904 18,132 e) Renegotiated loans Renegotiated loans include renegotiation of performing loans and impaired loans, as contractual terms of a loan may be modified not only due to concerns about the borrower’s ability to meet contractual payments, but also for customer retention purposes and other factors not related to current or potential credit deterioration of the customer. A breakdown of renegotiated loans during the years ended December 31, 2015, 2016 and 2017 is as follows: For the Year Ended 12/31/2015 For the Year Ended 12/31/2016 For the Year Ended 12/31/2017 Performing loans Performing loans Performing loans Due to Due to Due to Concerns Concerns Concerns About About About Current or Current or Current or Potential Due to Potential Due to Potential Due to Credit Other Impaired Credit Other Impaired Credit Other Impaired Deterioration Factors Loans Total Deterioration Factors Loans Total Deterioration Factors Loans Total Commercial, financial and industrial loans 3,219 — 1,591 4,810 3,576 — 1,606 5,182 879 — 1,028 1,907 Mortgage loans — — — — — — — — 22 — 1 23 Installment loans to individuals 96 — 294 390 1,073 — 158 1,231 1,086 — 186 1,272 3,315 — 1,885 5,200 4,649 — 1,764 6,413 1,987 — 1,215 3,202 Percentage 64 % — 36 % 100 % 72 % — 28 % 100 % 62 % — 38 % 100 % Impaired loans that are renegotiated continue to be classified as impaired loans until the sustained payment criteria is reached as described in Note 2.g. The types of terms that are typically renegotiated include: (a) modifications to the contractual terms of loans, such as payment terms, interest rates and currency, or (b) modifications to the guarantees that cover the loans. The Bank has implemented renegotiation programs which include options for the borrowers to extend payment terms, reduction in scheduled installments of principal and interest repayments, consolidation of debt and other forms of loan modifications, among others. See Note 47 (c) 4.7 Recovery management for additional information regarding restructured and refinanced loan portfolios. f) Maximum exposure to credit risk and credit quality information Maximum exposure to credit risk The tables below represent the Bank’s maximum exposure to credit risk by class of financial instrument (except for hedging derivatives) and the respective collateral and other credit enhancements mitigating credit risk for these classes of financial instruments. The maximum exposure to credit risk includes the carrying amounts of financial instruments recognized on the consolidated balance sheet subject to credit risk and the nominal amounts for off-balance-sheet commitments. Where available, collaterals are presented at fair value; for other collaterals, such as real estate and other assets, best estimates of fair value are used. Other credit enhancements such as guarantees are included at their nominal amounts. Collateral or guarantees are credit enhancements in the form of an asset or third-party obligation that serve to mitigate the inherent risk of credit loss in an exposure, by either substituting the borrower default risk or improving recoveries in the event of a default. The Bank’s collaterals or guarantees are contractual and are typically classified as follows: · Financial and other collateral, which enables the Bank to recover all or part of the outstanding exposure by liquidating the collateral asset provided in cases where the borrower is unable or unwilling to fulfill its primary obligations. Cash collateral, securities (debt or equity securities), collection rights, inventory, equipment and real estate are included in this category: Cash collateral received – Cash collateral requested from financial and corporate customers to secure the payments in OTC derivative transactions. Collateralized by securities – Collateral to secure the payments in repurchase agreements and reverse repurchase agreements. Collection rights – Highly liquid and realizable guarantees, which are mainly comprised of standby letters and pledges on funds and securities. Real estate. · Guarantee collateral, which complements the borrower’s ability to fulfill its obligation under the legal contract and, as such, is provided by third parties in the form of individual guarantee by endorsement or cosigners, where individuals or companies act as guarantors of the loan transaction. Collaterals and other credit enhancements related to the commercial portfolio are subject to at least an annual review. In the case of guarantees, the guarantor’s ability to perform under the guarantee contract is reviewed through an analysis of the financial position of the borrower and the guarantor. There are cases where the Bank has attempted to seek recovery through the execution of a third-party guarantee and has been denied such recovery. Please see Note 2.g. for an explanation of how the credit ratings of guarantors affect our allowance for impairment losses. For the retail portfolio, a review of its collaterals and other credit enhancements is performed on a periodic basis depending on the history of the payment performance of the borrower. For the real estate collaterals, appraisals are obtained as of the date of origination of the loans and when the loan is classified as impaired. See Note 47 (c) 4.4 Transaction decision-making – Credit risk mitigation techniques for additional information regarding collaterals. The breakdown is as follows: 12/31/2016 Maximum Exposure Maximum to Credit Risk (1) Collaterals Other Credit Enhancements Exposure to Cash Collateral Collateralized by Credit Risk Unsecured Secured Received Securities Collection Rights (3) Real Estate (2) Guarantees Financial assets held for trading 340,760 333,360 8,400 3,182 5,218 — — — Other financial assets at fair value through profit or loss 42,340 — 42,340 — 41,091 — — — Available-for-sale financial assets 154,318 154,318 — — — — — — Loans and receivables: 693,381 307,270 386,111 — — 122,050 204,806 68,112 Of which: Loans and advances to credit institutions 82,388 82,388 — — — — — — Loans and advances to customers 599,521 213,410 386,111 — — 122,050 204,806 68,112 Commercial, financial and industrial loans 309,206 82,616 226,590 — — 96,926 76,511 65,096 Public sector loans 57,022 29,667 27,355 — — 24,971 — 3,016 Mortgage loans 132,414 1,149 131,265 — — — 126,869 — Installment loans to individuals: Revolving consumer credit card loans 51,537 51,537 — — — — — — Non-revolving consumer loans 49,342 48,441 901 — — 153 1,426 — Debt instruments 11,472 11,472 — — — — — — Guarantees and loan commitments 62,065 62,065 — — — — — — Available lines of credit cards and non-revolving consumer loans 36,256 36,256 — — — — — — 1,329,120 893,269 436,851 3,182 46,309 122,050 204,806 68,112 (1) Related to loans and receivables and available lines of credit cards and non-revolving consumer loans in the first column (Maximum Exposure to Credit Risk) that are secured by the collaterals and other credit enhancements disclosed in the table. As such, unsecured amounts are the amounts that are not covered by any collateral or other credit enhancement. The secured amounts may differ from the total collaterals and other credit enhancements as certain loans and receivables are secured by multiple credit enhancements. (2) Appraisals to support estimated fair value of the real estate collaterals are obtained at the moment of the loan origination and when the financial asset is classified as impaired. (3) Public sector loan rights are guaranteed by Mexican government entities. 12/31/2017 Maximum Exposure Maximum to Credit Risk (1) Collaterals Other Credit Enhancements Exposure to Cash Collateral Collateralized by Credit Risk Unsecured Secured Received Securities Collection Rights (3) Real Estate (2) Guarantees Financial assets held for trading 313,008 264,201 48,807 45,024 3,783 — — — Other financial assets at fair value through profit or loss 51,705 — 51,705 — 51,693 — — — Available-for-sale financial assets 164,947 164,947 — — — — — — Loans and receivables: 696,229 308,252 387,977 — — 165,696 196,146 76,030 Of which: Loans and advances to credit institutions 59,122 59,122 — — — — — — Loans and advances to customers 626,349 238,372 387,977 — — 165,696 196,146 76,030 Commercial, financial and industrial loans 335,104 107,980 227,124 — — 141,806 66,619 76,028 Public sector loans 49,294 18,963 30,331 — — 23,845 — — Mortgage loans 134,197 4,397 129,800 — — — 128,106 2 Installment loans to individuals: Revolving consumer credit card loans 54,372 54,372 — — — — — — Non-revolving consumer loans 53,382 52,660 722 — — 45 1,421 — Debt instruments 10,758 10,758 — — — — — — Guarantees and loan commitments 78,812 78,812 — — — — — — Available lines of credit 38,291 38,291 — — — — — — 1,342,992 854,503 488,489 45,024 55,476 165,696 196,146 76,030 (1) Related to loans and receivables and available lines of credit cards and non-revolving consumer loans in the first column (Maximum Exposure to Credit Risk) that are secured by the collaterals and other credit enhancements disclosed in the table. As such, unsecured amounts are the amounts that are not covered by any collateral or other credit enhancement. The secured amounts may differ from the total collaterals and other credit enhancements as certain loans and receivables are secured by multiple credit enhancements. (2) Appraisals to support estimated fair value of the real estate collaterals are obtained at the moment of the loan origination and when the financial asset is classified as impaired. (3) Public sector loan rights are guaranteed by Mexican government entities. Credit quality information For the commercial loans (except SMEs) and public sector loans, in order to achieve equivalent internal ratings in the different models available and to make them comparable with the external ratings of rating agencies, the Bank has developed a master rating scale. The equivalence is established through the PD associated with each rating. Internally calibrated PDs are compared against the default rates associated with the external ratings, which are published periodically by rating agencies. The internal rating scale and mapping with external ratings are as follows: Equivalence with Standard & Internal Rating Poor’s Moody’s 9.3 AAA Aaa 9.2 AA+ Aa1 9.0 AA Aa2 8.6 AA- Aa3 8.1 A+ A1 7.7 A A2 7.3 A- A3 6.7 BBB+ Baa1 6.1 BBB Baa2 5.6 BBB- Baa3 5.0 BB+ Ba1 4.4 BB Ba2 3.9 BB- Ba3 3.3 B+ B1 2.7 B B2 2.2 B- B3 1.6 CCC Caa1 1.0 CC Ca For commercial loans (SMEs), mortgage loans and installment loans (revolving credit card consumer loans and non-revolving consumer loans), incurred losses are calculated using statistical methods without taking internal ratings into consideration. However, based on criteria set forth by the CNBV and a combination of internal scorecards, client financial information and qualitative criteria, ratings are assigned as follows: Rating Equivalence A-1 Minimum Risk (Solid) A-2 Low Risk (Outstanding) B-1 Normal Risk (Good) B-2 Normal Risk B-3 Satisfactory C-1 Normal Risk (Adequate) C-2 Medium Risk (Weak) D High Risk (Poor) E Probable Loss Credit quality information by rating category The tables below represent the classification by rating category of the commercial loans and public sector loans and their related guarantees and loan commitments not recognized on the consolidated balance sheet: 12/31/2016 Not Rating Category 9.3 9.2 9.0 8.5 8.0 7.5 7.0 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 Rated Total Commercial loans (except SMEs) — — — — 15 4,006 17,082 6,699 54,717 61,648 57,457 10,978 3,497 1,753 1,373 116 1,949 — 204 19,817 241,311 Public sector loans — — — — — 33,730 3,765 — — 6,366 7,415 5,091 636 — — — — — — 19 57,022 — — — — 15 37,736 20,847 6,699 54,717 68,014 64,872 16,069 4,133 1,753 1,373 116 1,949 — 204 19,836 298,333 Financial instruments not recognized on the consolidated balance sheet: Guarantees 653 — — 1,959 2,063 6,449 14,063 8,996 5,986 3,834 784 310 312 — — 75 33 — — 2,324 47,841 Loan commitments — — — 31 582 124 726 210 2,922 4,560 3,978 639 9 20 — — — — — 111 13,912 653 — — 1,990 2,645 6,573 14,789 9,206 8,908 8,394 4,762 949 321 20 — 75 33 — — 2,435 61,753 653 — — 1,990 2,660 44,309 35,636 15,905 63,625 76,408 69,634 17,018 4,454 1,773 1,373 191 1,982 — 204 22,271 360,086 12/31/2017 Not Rating Category 9.3 9.2 9.0 8.5 8.0 7.5 7.0 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 Rated Total Commercial loans (except SMEs) — — — — 3,380 496 9,116 28,807 48,849 74,722 63,662 13,901 2,898 1,396 413 112 1,870 564 — 12,639 262,825 Public sector loans — — 3,504 — — 20,077 1 983 — 9,751 13,493 1,278 — — — — — — — 208 49,295 — — 3,504 — 3,380 20,573 9,117 29,790 48,849 84,473 77,155 15,179 2,898 1,396 413 112 1,870 564 — 12,847 312,120 Financial instruments not recognized on the consolidated balance sheet: Guarantees — 623 — 2,576 5,262 11,037 19,265 7,043 9,060 3,219 2,391 392 3 — — — 75 — — 2,133 63,079 Loan commitments — — — 7 491 501 597 253 2,137 5,728 4,210 862 86 25 — — 78 — — 196 15,171 — 623 — 2,583 5,753 11,538 19,862 7,296 11,197 8,947 6,601 1,254 89 25 — — 153 — — 2,329 78,250 — 623 3,504 2,583 9,133 32,111 28,979 37,086 60,046 93,420 83,756 16,433 2,987 1,421 413 112 2,023 564 — 15,176 390,370 The tables below represent the classification by rating category of the commercial loans, mortgage loans, revolving consumer credit card loans and non-revolving consumer loans and their related commitments not recognized on the consolidated balance sheet: 12/31/2016 Rating Category A-1 A-2 B-1 B-2 B-3 C-1 C-2 D E Not Rated Total Commercial loans (SMEs) 41,133 12,018 1,913 3,506 4,650 1,360 756 2,065 101 393 67,895 Mortgage loans 89,712 11,318 2,979 14,404 1,800 2,163 1,763 3,817 880 3,578 132,414 Revolving consumer credit card loans 2,855 11,997 12,304 5,835 3,329 4,804 4,617 4,499 1,297 — 51,537 Non-revolving consumer loans 2,426 5,226 7,181 16,057 5,365 2,950 4,830 1,957 2,536 814 49,342 136,126 40,559 24,377 39,802 15,144 11,277 11,966 12,338 4,814 4,785 301,188 Financial instruments not recognized on the consolidated balance sheet: Available lines of credit cards and non-revolving consumer loans 7,779 4,607 5,289 3,502 2,792 4,031 4,029 1,758 2,328 141 36,256 Guarantees 132 — — — — — — — — — 132 Loan commitments 180 — — — — — — — — — 180 8,091 4,607 5,289 3,502 2,792 4,031 4,029 1,758 2,328 141 36,568 144,217 45,166 29,666 43,304 17,936 15,308 15,995 14,096 7,142 4,926 337,756 12/31/2017 Rating Category A-1 A-2 B-1 B-2 B-3 C-1 C-2 D E Not Rated Total Commercial loans (SMEs) 47,231 11,515 1,899 1,946 4,656 1,683 874 1,968 507 — 72,279 Mortgage loans 98,015 2,999 1,174 1,634 846 17,535 3,919 3,153 1,218 3,704 134,197 Revolving consumer credit card loans 2,995 13,789 12,848 6,181 3,543 4,961 4,829 3,830 1,397 — 54,373 Non-revolving consumer loans 7,009 7,312 9,978 8,670 6,577 5,415 2,876 1,267 3,390 889 53,383 155,250 35,615 25,899 18,431 15,622 29,594 12,498 10,218 6,512 4,593 314,232 Financial instruments not recognized on the consolidated balance sheet: Available lines of credit cards and non-revolving consumer loans 7,118 5,500 5,943 3,902 3,149 4,373 4,268 1,696 2,343 — 38,292 Guarantees 282 — — — — — — — — — 282 Loan commitments 150 — — — — — — — — — 150 7,550 5,500 5,943 3,902 3,149 4,373 4,268 1,696 2,343 — 38,724 162,800 41,115 31,842 22,333 18,771 33,967 16,766 11,914 8,855 4,593 352,956 The following is a breakdown of the retail portfolios that are past due but not impaired at December 31, 2016 and 2017, classified by type of loan and by age of the oldest past due amount. Portions of the retail portfolio that are past due but not impaired as of December 31, 2016 are as follows: Balances Past Due by Current 1 to 30 Days 31 to 60 Days 61 to 90 Days Total By type of loan: Commercial loans (SMEs) 63,248 1,725 756 533 66,262 Mortgage loans 116,170 4,535 3,636 1,295 125,636 Installment loans to individuals Of which: Revolving consumer credit card loans 47,170 1,061 760 594 49,585 Non-revolving consumer loans 44,429 1,819 596 475 47,319 271,017 9,140 5,748 2,897 288,802 Portions of the retail portfolio that are past due but not impaired as of December 31, 2017 are as follows: Balances Past Due by Current 1 to 30 Days 31 to 60 Days 61 to 90 Days Total By type of loan: Commercial loans (SMEs) 68,157 1,590 771 733 71,251 Mortgage loans 116,293 4,545 4,205 1,792 126,835 Installment loans to individuals Of which: Revolving consumer credit card loans 49,253 1,145 851 788 52,037 Non-revolving consumer loans 48,129 1,520 687 616 50,952 281,832 8,800 6,514 3,929 301,075 g) Securitization Loans and advances to customers includes the securitized loans transferred to third parties on which the Bank has retained the risks and rewards, albeit partially, and which therefore, in accordance with the applicable IFRS, cannot be derecognized. Note 21 details the liabilities associated with these securitization transactions (mortgage-backed bonds). As of December 31, 2016 and 2017, the securitized loans retained on the consolidated balance sheet relate to securitized mortgage assets amount to 237 million pesos and 162 million pesos, respectively. Securitization is used as a tool for diversifying the Bank’s liquidity sources. The Bank had not performed any securitization in 2015, 2016 and 2017 and prior years. This securitization corresponds to a transaction performed by the acquired entity Santander Vivienda in 2006. The loans transferred through securitization are mortgage loans. |
Hedging derivatives
Hedging derivatives | 12 Months Ended |
Dec. 31, 2017 | |
Hedging derivatives | |
Hedging derivatives | 13. Hedging derivatives The Bank, as part of its financial risk management strategy and for reducing mismatches in the accounting treatment of its transactions, enters into interest rate and foreign currency hedging derivatives, depending on the nature of the hedged risk. In line with its objective, the Bank classifies its hedges into the following categories: Cash flow hedges: hedging the exposure to variability in cash flows associated with an asset, liability or highly probable forecast transaction. Fair value hedges: hedging the exposure to changes in the fair value of assets attributable to an identified, hedged risk. a) Breakdown The breakdown by type of hedge of the derivatives qualifying for hedge accounting is as follows: 12/31/2016 12/31/2017 Assets Liabilities Assets Liabilities Fair value hedges 93 3,727 59 6,572 Cash flow hedges 14,910 10,560 15,057 4,519 15,003 14,287 15,116 11,091 b) Quantitative information Fair value hedges As of December 31, 2016, the hedging derivative positions are as follows: Nominal (Million in Nominal Transaction Transaction (Million Pesos) Currency) Currency Hedged Item and Risk Hedged IRS 2,863 2,863 Peso Loans and receivables – Interest rate risk IRS 1,618 78 USD Loans and receivables – Interest rate risk CCS 99 8 USD Loans and receivables – Interest rate and foreign exchange risk CCS 9,614 470 Euro UMS – Interest rate and foreign exchange risk CCS 950 50 USD UMS – Interest rate and foreign exchange risk CCS 251 15 Euro PEMEX Bonds – Interest rate and foreign exchange risk CCS 602 30 Pound Sterling PEMEX Bonds – Interest rate and foreign exchange risk CCS 1,118 86 USD PEMEX Bonds – Interest rate and foreign exchange risk CCS 3,860 825 UDIS UDIBONDS – Interest rate and inflation risk As of December 31, 2017, the hedging derivative positions are as follows: Nominal (Million in Nominal Transaction Transaction (Million Pesos) Currency) Currency Hedged Item and Risk Hedged IRS 1,785 1,785 Peso Loans and receivables – Interest rate risk IRS 354 18 USD Loans and receivables – Interest rate risk CCS 52 4 USD Loans and receivables –Interest rate and foreign exchange risk CCS 17,598 840 Euro UMS – Interest rate and foreign exchange risk CCS 1,275 67 USD UMS – Interest rate and foreign exchange risk CCS 251 15 Euro PEMEX Bonds – Interest rate and foreign exchange risk CCS 73 3 Pound Sterling UMS – Interest rate and foreign exchange risk CCS 602 30 Pound Sterling PEMEX Bonds – Interest rate and foreign exchange risk CCS 969 76 USD PEMEX Bonds – Interest rate and foreign exchange risk CCS 3,860 825 UDIS UDIBONDS – Interest rate and inflation risk The fair value hedges carried out by the Bank are extended in certain cases up to the year 2031. For 2015, 2016 and 2017, the effect of valuation for the period of derivative financial instruments for fair value hedging purposes recognized in the consolidated income statement under Gains/(losses) on financial assets and liabilities (net) is 23 million pesos, (363) million pesos and (117) million pesos, respectively (see Note 38). For 2015, 2016 and 2017, the effect of valuation arising from the risk being hedged of the hedged items for fair value hedging purposes recognized in the consolidated income statement in Gains/(losses) on financial assets and liabilities (net) is (105) million pesos, 375 million pesos and 341 million pesos, respectively (see Note 38). Each of these hedging derivative instruments is presented in the consolidated balance sheet under Hedging derivatives. Cash flow hedges As of December 31, 2016, the positions in derivatives for cash flow hedging purposes are as follows: Nominal (Million in Nominal Transaction Transaction (Million Pesos) Currency) Currency Hedged Item and Risk Hedged IRS 2,050 2,050 Peso BPAGs Bonds – Interest rate risk CCS 4,713 331 USD Loans and receivables – Foreign exchange risk CCS 4,958 261 Euro Loans and receivables – Foreign exchange risk CCS 11,186 543 USD Senior Unsecured Notes – Foreign exchange risk CCS 21,546 1,045 USD Tier II Subordinated Capital Notes – Foreign exchange risk CCS 2,657 136 Euro UMS – Foreign exchange risk CCS 260 10 Pound Sterling UMS – Foreign exchange risk CCS 1,093 60 USD UMS – Foreign exchange risk Forward Fx-USD 24,433 1,491 USD Brazilian Government Notes – Foreign exchange risk As of December 31, 2017, the hedging derivative positions are as follows: Nominal (Million in Nominal Transaction Transaction (Million Pesos) Currency) Currency Hedged Item and Risk Hedged IRS 700 700 Peso BPAGs Bonds – Interest rate risk IRS 4,000 4,000 Peso Unsecured Bonds – Interest rate risk CCS 3,056 221 USD Loans and receivables – Foreign exchange risk CCS 3,055 166 Euro Loans and receivables – Foreign exchange risk CCS 778 34 Pound Sterling Loans and receivables – Foreign exchange risk CCS 10,667 543 USD Senior Unsecured Notes – Foreign exchange risk CCS 20,548 1,045 USD Tier II Subordinated Capital Notes – Foreign exchange risk CCS 2,657 136 Euro UMS – Foreign exchange risk CCS 260 10 Pound Sterling UMS – Foreign exchange risk CCS 911 50 USD UMS – Foreign exchange risk Forward Fx-BRL 15,970 2,952 BRL Brazilian Government Notes – Foreign exchange risk Forward Fx-USD 37,853 1,747 USD Brazilian Government Notes – Foreign exchange risk During November 2017, the Bank discontinued a cash flow hedge of Loans and receivables for an amount of 37 million USD (nominal value). During March 2017, the Bank discontinued a cash flow hedge of UMS for an amount of 10 million USD (nominal value). During April 2015, the Bank discontinued a cash flow hedge of Senior Unsecured Notes for an amount of 318 million USD (nominal value). This cash flow hedge began on December 2012 and February 2013, and at the date of discontinuance an amount of 64 million pesos, corresponding to the effective part of the hedging instrument, was recognized in the consolidated other comprehensive income under Valuation adjustments - Cash flow hedges, such amount will be reclassified to the consolidated income statement over the original term of the Senior Unsecured Notes, which extended through the year 2022. During April 2015, the Bank discontinued a cash flow hedge of Tier II Subordinated Capital Notes for an amount of 200 million USD (nominal value). This cash flow hedge began on April 2014 and at the date of discontinuance an amount of 44 million pesos, corresponding to the effective part of the hedging instrument, was recognized in the consolidated other comprehensive income under Valuation adjustments - Cash flow hedges, such amount will be reclassified to the consolidated income statement over the original term of the subordinated capital notes, which extended through the year 2019. During June 2014, the Bank discontinued a cash flow hedge of the Central Bank compulsory deposits for an amount of 500 million pesos (nominal value). This cash flow hedge began on February 2014 and at the date of discontinuance an amount of 12 million pesos, corresponding to the effective part of the hedging instrument, was recognized in the consolidated other comprehensive income under Valuation adjustments - Cash flow hedges, which amount will be reclassified to the consolidated income statement over the original term of the Central Bank compulsory deposits, which extended through the year 2018. As of December 31, 2016 and 2017, included in the consolidated other comprehensive income under Valuation adjustments - Cash flow hedges, are 86 million pesos and 54 million pesos (see Note 28), respectively, which refer to the accumulated unamortized gain (net of the related tax effect) of hedging derivatives for which hedge accounting was discontinued. Such balances are being reclassified based on the original terms of the forecast transactions. The term of such reclassifying extends through the year 2022. The remaining amount of the total valuation adjustment for cash flow hedges reflected in the consolidated other comprehensive income consists of accumulated unrealized gain or loss on effective cash flow hedges currently in effect. The cash flow hedges entered into by the Bank are extended in certain cases up to the year 2021 for Brazilian Government Notes, up to the year 2018 for BPAGs Bonds, up to the year 2022 for Senior Unsecured Notes, up to the year 2025 for Loans and receivables and up to the year 2026 for UMS. A reconciliation of Valuation adjustments – Cash flow hedges is as follows: 2015 2016 2017 Balance at January 1 293 900 1,383 Valuation adjustments (612) (1,095) (1,585) Amounts reclassified to consolidated income statement 1,479 1,785 118 Of which: Income from cash flow hedging derivatives swaps and discontinued cash flow hedge accounting 1,483 1,787 120 Cash flow hedges ineffectiveness (Note 38) (4) (2) (2) Income taxes (260) (207) 440 Balance at December 31 900 1,383 356 As of December 31, 2017, the breakdown of the estimated cash flows of the cash flow hedges that are expected to be reclassified from consolidated other comprehensive income to the consolidated income statement is as follows: Between 3 Months and Between 1 Year and 5 Less than 3 Months 1 Year Years More than 5 Years Total Cash flows to be received 373 1,114 1,845 19 3,351 Cash flows to be paid (354) (780) (1,564) (145) (2,843) Note 44.a. contains a breakdown of the remaining maturity periods of hedging derivatives. |
Non-current assets held for sal
Non-current assets held for sale | 12 Months Ended |
Dec. 31, 2017 | |
Non-current assets held for sale. | |
Non-current assets held for sale | 14. Non-current assets held for sale a) Breakdown As of December 31, 2016 and 2017, non-current assets held for sale consist of foreclosed assets that amounted to 1,107 million pesos and 1,295 million pesos, respectively. The total amount of foreclosed assets classified as non-current assets held for sale are intended for sale up to one year through the completion of auctions. In 2015, 2016 and 2017, the Bank recognized a gain of 91 million pesos, a gain of 71 million pesos and a gain of 69 million pesos, respectively, under Gains/(losses) on disposal of non-current assets held for sale not classified as discontinued operations (net) in the consolidated income statement. For the years ended December 31, 2015, 2016 and 2017, there were no impairment losses recognized by the Bank. b) Changes The changes in foreclosed assets in the consolidated balance sheet were as follows: Foreclosed Assets Cost: Balances at January 1, 2016 1,101 Additions 711 Disposals (705) Impairment losses — Balances at December 31, 2016 1,107 Additions 389 Disposals (201) Impairment losses — Balances at December 31, 2017 1,295 |
Tangible assets
Tangible assets | 12 Months Ended |
Dec. 31, 2017 | |
Tangible assets. | |
Tangible assets | 15. Tangible assets a) Changes The changes in Tangible assets in the consolidated balance sheet were as follows: Property, Plant and Equipment Cost: Balances at January 1, 2016 10,632 Additions 1,096 Disposals (114) Balances at December 31, 2016 11,614 Additions 1,816 Disposals (123) Balances at December 31, 2017 13,307 Accumulated depreciation: Balances at January 1, 2016 (5,085) Additions (953) Disposals 116 Balances at December 31, 2016 (5,922) Additions (1,010) Disposals 123 Balances at December 31, 2017 (6,809) Balances at December 31, 2016 5,692 Balances at December 31, 2017 6,498 As of December 31, 2017, there are no restrictions on title and no tangible assets have been pledged as security for liabilities. In the second quarter of 2012, the Bank entered into an agreement with a non-related party, Fibra Uno, S.A. de C.V. (hereinafter, Fibra Uno) regarding the sale of 220 properties (branches, offices and parking spaces) and the subsequent leaseback thereof for a term of 20 years. The corresponding lease contract, which is accounted for as an operating lease, is non-cancellable and includes an option to renew up to an additional four consecutive periods of five years each with a market rate to be determined on the date of the renewal. The lease agreement includes rent adjustments based on the INPC and does not contain volume-based or leveraged contingent rent payment clauses or purchase options, or impose any restrictions on the Bank’s ability to pay dividends, engage in debt financing transactions or enter into further lease agreements. The lease payments are recognized as Other general administrative expenses in the consolidated income statement. As of December 31, 2017, the future minimum lease payments required under the Bank’s operating leases are as follows: 12/31/2017 Other Operating Operating Lease Due Fibra Uno Leases Total 2018 276 1,393 1,669 2019 276 1,062 1,338 2020 276 828 1,104 2021 276 683 959 2022 276 518 794 2023 and thereafter 2,572 1,254 3,826 Total commitments for minimum payments under operating lease 3,952 5,738 9,690 b) Breakdown The breakdown by asset class of Tangible assets for own use in the consolidated balance sheet is as follows: Accumulated Cost Depreciation Impairment Losses Carrying Amount Buildings 7,900 (3,902) — 3,998 IT equipment and fixtures 2,036 (1,082) — 954 Furniture and vehicles 1,568 (938) — 630 Others 110 — — 110 Balances at December 31, 2016 11,614 (5,922) — 5,692 Buildings 8,057 (4,492) — 3,565 IT equipment and fixtures 2,857 (1,290) — 1,567 Furniture and vehicles 1,670 (1,027) — 643 Others 723 — — 723 Balances at December 31, 2017 13,307 (6,809) — 6,498 |
Intangible assets - Goodwill
Intangible assets - Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Intangible assets - Goodwill | |
Intangible assets - Goodwill | 16. Intangible assets – Goodwill a) Breakdown The breakdown of Goodwill based on the CGUs to which Goodwill has been allocated is as follows: 12/31/2016 12/31/2017 Santander Vivienda (See Note 3.11) 1,734 1,734 1,734 1,734 b) Changes There were no changes in Goodwill during 2016 and 2017. c) Impairment test Management performed impairment test on a single CGU basis due to the merger of Santander Vivienda, Santander Hipotecario and Santander Holding Vivienda as described in Note 3.11 The main assumptions used in the calculation of the impairment of Goodwill are as follows: Hypotheses Basis of valuation Value in use: discounted cash flows Period of projection of cash flows(1) 5 years Perpetual cash flow (2) Discount rate(6) 9.22% Of which: Cost of Equity(3) 17.4% Cost of Debt(4) 6.8% Equity Structure(5) 23% Equity / 77% Debt (1) The period of projections of cash flow are prepared using internal budgets and growth plans of Management, based on historical data, market expectations and conditions such as industry growth and inflation. (2) The perpetual cash flow has been calculated based on the following formula over the last cash flow estimated [D*(1+g)//i-g)]*(1+i)^-n, where: § D = Last estimated cash flow, § g = Perpetual growth (0%), § i = Discount rate, and § n= Number of year of last estimated cash flow. (3) The Cost of Equity has been calculated based on the following formula Rf+(ß*Pr), where: § Rf = Risk free rate (7.22%), § β = Beta (1.27), and § Pr = Equity Risk Premium (8.0%). (4) The Cost of Debt has been calculated based on the actual pretax financing cost of the Bank. (5) The Equity Structure has been calculated based on the following formula: Equity/(Total Liability+Equity). The Debt Structure has been calculated based on the following formula: Debt/(Total Liability+Equity). (6) The Discount rate has been calculated based on the following formula: (Cost of Equity*Equity Structure) + (Cost of Debt*Debt Structure). Based on the foregoing, and in accordance with the estimates, projections and measurements available to the Bank’s Management in 2015, 2016 and 2017, the Bank has not recognized any impairment losses on Goodwill. |
Intangible assets - Other intan
Intangible assets - Other intangible assets | 12 Months Ended |
Dec. 31, 2017 | |
Intangible assets - Other intangible assets | |
Intangible assets - Other intangible assets | 17. Intangible assets - Other intangible assets a) Changes The changes in Other intangible assets in the consolidated balance sheet were as follows: Intangible Assets with Finite Useful Life Cost: Balances at January 1, 2016 6,248 Additions 2,001 Disposals (30) Balances at December 31, 2016 8,219 Additions 2,712 Disposals (142) Balances at December 31, 2017 10,789 Accumulated amortization and impairment: Balances at January 1, 2016 (3,105) Additions (1,105) Disposals 29 Balances at December 31, 2016 (4,181) Additions (1,523) Disposals 141 Balances at December 31, 2017 (5,563) Balances at December 31, 2016 4,038 Balances at December 31, 2017 5,226 b) Breakdown The breakdown of Other intangible assets in the consolidated balance sheet is as follows: Estimated Accumulated Impairment Carrying Useful Life Cost Amortization Losses Amount IT developments 3 years 8,132 (4,175) — 3,957 Others 10 years 87 (6) — 81 Balances at December 31, 2016 8,219 (4,181) — 4,038 IT developments 3 years 10,702 (5,548) — 5,154 Others 10 years 87 (15) — 72 Balances at December 31, 2017 10,789 (5,563) — 5,226 As of December 31, 2016 and 2017, there are no intangible assets with restricted title or intangible assets pledged as security for liabilities. |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2017 | |
Other assets | |
Other assets | 18. Other assets The breakdown of Other assets is as follows: 12/31/2016 12/31/2017 Credit card operating balances 1,297 1,597 Insurance commission receivables 976 1,053 Prepayments 660 793 Other 3,402 5,666 6,335 9,109 |
Deposits from the Central Bank
Deposits from the Central Bank and Deposits from credit institutions | 12 Months Ended |
Dec. 31, 2017 | |
Deposits from the Central Bank and Deposits from credit institutions | |
Deposits from the Central Bank and Deposits from credit institutions | 19. Deposits from the Central Bank and Deposits from credit institutions The breakdown by classification, type and currency of the balance is as follows: 12/31/2016 12/31/2017 Classification: Other financial liabilities at fair value through profit or loss 40,634 28,359 Financial liabilities at amortized cost 99,322 76,515 139,956 104,874 Type: Reciprocal accounts 2,621 2,316 Time deposits 31,545 4,506 Overnight deposits 7,689 13,688 Repurchase agreements 40,634 28,359 Other accounts 57,397 55,848 Of which: Collateral received for OTC derivatives transactions (Note 32) 33,474 31,157 Others 23,923 24,691 Accrued interest 70 157 139,956 104,874 Currency: Peso 101,843 100,347 USD 38,113 4,470 Other currencies — 57 139,956 104,874 Note 44.a. includes a breakdown of the remaining maturity periods of Deposits from the Central Bank and Deposits from credit institutions. In addition, Note 44.d. contains the fair value amounts of these liabilities classified as Deposits from the Central Bank and Deposits from credit institutions – Financial liabilities at amortized cost. |
Customer deposits
Customer deposits | 12 Months Ended |
Dec. 31, 2017 | |
Customer deposits | |
Customer deposits | 20. Customer deposits The breakdown by classification, type and currency of the balance of Customer deposits is as follows: 12/31/2016 12/31/2017 Classification: Other financial liabilities at fair value through profit or loss 83,891 81,790 Financial liabilities at amortized cost 572,005 608,776 655,896 690,566 Type: Repurchase agreements 83,891 81,790 Demand deposits: Current accounts 403,323 422,028 Savings accounts — — Other deposits 27,696 26,230 Of which: Collateral received for OTC derivatives transactions (Note 32) 14,347 13,867 Others 13,349 12,363 Time deposits: Fixed-term deposits 140,408 159,464 Accrued interest 578 1,054 655,896 690,566 Currency: Peso 539,190 584,637 USD 116,706 105,929 Other currencies — — 655,896 690,566 As of December 31, 2016, customer deposits of 109 million pesos have been received in connection with derivatives transactions traded in organized markets (see Note 32). As of December 31, 2016 and 2017, customer deposits of 14,347 million pesos and 13,867 million pesos, respectively, have been received in connection with OTC derivatives transactions (see Note 32). Note 44.a. includes a breakdown of the remaining maturity periods of Customer deposits. In addition, Note 44.d. contains the fair value amounts of these liabilities classified as Customer deposits – Financial liabilities at amortized cost. |
Marketable debt securities
Marketable debt securities | 12 Months Ended |
Dec. 31, 2017 | |
Marketable debt securities | |
Marketable debt securities | 21. Marketable debt securities a) Breakdown The breakdown by classification, type and currency of issue of Marketable debt securities is as follows: 12/31/2016 12/31/2017 Classification: Other financial liabilities at fair value through profit or loss designated as such upon initial recognition 12,335 10,504 Financial liabilities at amortized cost 77,668 85,792 90,003 96,296 Type: Certificates of deposit (unsecured) 25,944 27,467 Senior Unsecured Notes 20,462 19,558 Structured bank bonds 12,542 10,748 Promissory notes 16,101 23,577 Unsecured bonds 14,785 14,798 Mortgage-backed bonds 169 148 90,003 96,296 Currency: Peso 67,061 68,788 USD 22,942 27,508 90,003 96,296 Note 44.a. includes a breakdown of the remaining maturity periods of Marketable debt securities. In addition, Note 44.d. contains the fair value amounts of these liabilities classified as Marketable debt securities – Financial liabilities at amortized cost. b) Changes in Marketable debt securities classified as financial liabilities at fair value through profit or loss The changes in Marketable debt securities classified as financial liabilities at fair value through profit or loss were as follows: 2016 2017 Beginning balance 12,623 12,335 Issues 1,924 2,299 Of which: Structured bank bonds 1,924 2,299 Of which: Banco Santander México, S.A. 1,924 2,299 Redemptions (2,218) (4,590) Of which: Structured bank bonds (2,218) (4,590) Of which: Banco Santander México, S.A. (2,218) (4,590) Changes in fair value 6 460 Balance at year-end 12,335 10,504 c) Changes in Marketable debt securities classified as financial liabilities at amortized cost The changes in Marketable debt securities classified as financial liabilities at amortized cost were as follows: 2016 2017 Beginning balance 74,826 77,668 Issues 2,738,139 2,251,910 Of which: Certificates of deposit (unsecured) 56,431 70,705 Structured bank bonds 15,006 6,238 Promissory notes 2,656,702 2,174,967 Unsecured bonds 10,000 — Of which: Banco Santander México, S.A. 2,738,139 2,251,910 Redemptions (2,738,883) (2,243,323) Of which: Certificates of deposit (unsecured) (53,705) (69,455) Structured bank bonds (15,398) (6,190) Promissory notes (2,664,673) (2,167,658) Unsecured bonds (5,107) (20) Of which: Banco Santander México, S.A. (2,738,856) (2,243,303) Santander Vivienda, S.A. de C.V. (27) (20) Accrued interest 69 292 Effect of changes in foreign exchange rates 3,517 (755) Balance at year-end 77,668 85,792 d) Other disclosures Issuance program In April 2007, the Board of Directors authorized an issuance program for up to 4,000,000,000 USD of different types of instruments denominated in pesos, USD, euros or UDIS, up to 30 years. In October 2010, the Board of Directors renewed this authorization. In October 2011, the Board of Directors authorized to increase the amount of issuance program up to 6,500,000,000 USD. In October 2013, the Board of Directors endorsed the total amount of issuance program, establishing that the maximum term of the issuances must be 15 years. As of December 31, 2016, the balance of the issues performed by the Bank under the aforementioned program is as follows: Amount Maturity Date Rate Certificates of deposit (unsecured) 2,500 02/17/2017 6.16 % Certificates of deposit (unsecured) 630 02/17/2017 6.16 % Certificates of deposit (unsecured) 2,000 04/27/2017 5.65 % Certificates of deposit (unsecured) 530 03/09/2017 5.65 % Certificates of deposit (unsecured) 80 04/12/2017 6.15 % Certificates of deposit (unsecured) 2,000 04/26/2017 5.65 % Certificates of deposit (unsecured) 300 04/21/2017 6.16 % Certificates of deposit (unsecured) 1,000 06/01/2017 5.65 % Certificates of deposit (unsecured) 700 06/09/2017 6.16 % Certificates of deposit (unsecured) 800 07/20/2017 5.65 % Certificates of deposit (unsecured) 50 07/25/2017 5.42 % Certificates of deposit (unsecured) 500 07/27/2017 5.65 % Certificates of deposit (unsecured) 1,000 10/06/2017 5.88 % Certificates of deposit (unsecured) 1,000 11/01/2017 5.88 % Certificates of deposit (unsecured) 45 01/02/2017 5.58 % Certificates of deposit (unsecured) 800 12/11/2017 5.88 % Certificates of deposit (unsecured) 1,100 04/12/2017 6.16 % Certificates of deposit (unsecured) 1,000 01/20/2017 6.16 % Certificates of deposit (unsecured) 300 06/28/2017 5.65 % Certificates of deposit (unsecured) 800 03/02/2017 5.65 % Certificates of deposit (unsecured) 1,730 05/26/2017 5.66 % Certificates of deposit (unsecured) 100 09/11/2017 5.64 % Certificates of deposit (unsecured) 1,000 08/15/2017 5.65 % Certificates of deposit (unsecured) 700 06/05/2017 6.13 % Certificates of deposit (unsecured) 500 02/01/2017 5.65 % Certificates of deposit (unsecured) 1,000 05/04/2017 5.65 % Certificates of deposit (unsecured) 500 02/10/2017 5.68 % Certificates of deposit (unsecured) 1,000 09/25/2017 5.88 % Certificates of deposit (unsecured) - USD 2 07/31/2017 0.65 % Certificates of deposit (unsecured) - USD 197 01/17/2017 0.20 % Certificates of deposit (unsecured) - USD 403 01/26/2017 0.20 % Certificates of deposit (unsecured) - USD 283 01/05/2017 0.35 % Certificates of deposit (unsecured) - USD 215 01/12/2017 0.35 % Certificates of deposit (unsecured) - USD 340 01/19/2017 0.20 % Certificates of deposit (unsecured) - USD 379 01/10/2017 0.35 % Certificates of deposit (unsecured) - USD 4 07/31/2017 0.95 % Certificates of deposit (unsecured) - USD 1 07/31/2017 0.75 % Certificates of deposit (unsecured) - USD 1 07/31/2017 0.90 % Certificates of deposit (unsecured) - USD 103 05/09/2017 0.65 % Certificates of deposit (unsecured) - USD 46 06/01/2017 0.50 % Certificates of deposit (unsecured) - USD 1 07/31/2017 0.70 % Certificates of deposit (unsecured) - USD 246 01/24/2017 0.20 % 25,886 Accrued interest 58 25,944 Senior Unsecured Notes 20,349 11/09/2022 4.125 % Accrued interest 113 20,462 Structured bank bonds 35 01/06/2017 10.00 % Structured bank bonds 10 01/10/2017 9.00 % Structured bank bonds 27 01/04/2017 11.59 % Structured bank bonds 17 01/13/2017 12.50 % Structured bank bonds 82 01/03/2017 4.18 % Structured bank bonds 10 01/05/2017 8.00 % Structured bank bonds 10 01/24/2017 7.00 % Structured bank bonds (*) 593 03/02/2017 Guaranteed rate subject to Euro Stoxx 50 Structured bank bonds (*) 53 03/16/2017 Guaranteed rate subject to Euro Stoxx 50 Structured bank bonds (*) 42 03/13/2017 Guaranteed rate subject to Euro Stoxx 50 Structured bank bonds (*) 12 03/24/2017 Guaranteed rate subject to Euro Stoxx 50 Structured bank bonds (*) 12 04/06/2017 Guaranteed rate subject to Euro Stoxx 50 Structured bank bonds (*) 465 06/29/2017 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 514 08/03/2017 Guaranteed rate subject to Euro SX5E Structured bank bonds (*) 441 09/06/2017 Guaranteed rate subject to Euro SX5E Structured bank bonds (*) 168 09/08/2017 Guaranteed rate subject to Euro SX7E Structured bank bonds (*) 115 11/06/2017 Guaranteed rate subject to S&P500 Structured bank bonds (*) 613 01/04/2018 Guaranteed rate subject to Euro Stoxx Oil & Gas Structured bank bonds (*) 14 01/04/2018 Guaranteed rate subject to Euro Stoxx Oil & Gas Structured bank bonds (*) 330 02/19/2018 Guaranteed rate subject to IXE Structured bank bonds (*) 581 03/02/2018 Guaranteed rate subject to FSTE 100 Structured bank bonds (*) 441 03/06/2017 Guaranteed rate subject to HSCEI, S&P 500, SX5E and NIKKEI 225 Structured bank bonds (*) 945 04/03/2018 Guaranteed rate subject to Euro Stoxx Oil & Gas Structured bank bonds (*) 25 05/09/2017 Guaranteed rate subject to Euro SX5E Structured bank bonds (*) 141 05/16/2018 Guaranteed rate subject to Euro SX5E Structured bank bonds (*) 22 05/25/2017 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 121 05/31/2018 Guaranteed rate subject to Euro SX5E Structured bank bonds (*) 82 06/29/2018 Guaranteed rate subject to Euro SX6E Structured bank bonds (*) 463 06/27/2018 2.00 % Structured bank bonds (*) 9 06/29/2018 Guaranteed rate subject to Euro SX6E Structured bank bonds (*) 970 06/29/2018 Guaranteed rate subject to Euro SX6E Structured bank bonds (*) 137 06/29/2018 Guaranteed rate subject to Euro SX6E Structured bank bonds (*) 114 07/12/2018 Guaranteed rate subject to Euro SX6E Structured bank bonds (*) 10 08/02/2018 Guaranteed rate subject to DAX Structured bank bonds (*) 122 08/10/2017 Guaranteed rate subject to IPC Structured bank bonds (*) 155 08/30/2017 Guaranteed rate subject to IPC Structured bank bonds (*) 123 08/30/2018 Guaranteed rate subject to Euro Stoxx 50 Structured bank bonds (*) 51 09/14/2017 Guaranteed rate subject to IPC Structured bank bonds (*) 153 09/14/2017 Guaranteed rate subject to IPC Structured bank bonds (*) 97 09/20/2018 Guaranteed rate subject to Euro Stoxx 50 Structured bank bonds (*) 124 09/27/2018 Guaranteed rate subject to Euro Stoxx 50 Structured bank bonds (*) 150 10/19/2018 Guaranteed rate subject to INDU Structured bank bonds (*) 503 10/26/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 43 11/09/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 203 11/09/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 63 11/09/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 823 10/23/2020 TIIE Structured bank bonds (*) 17 11/07/2019 Guaranteed rate subject to SXDP Structured bank bonds (*) 148 11/14/2019 Guaranteed rate subject to SXDP Structured bank bonds (*) 8 11/05/2020 TIIE Structured bank bonds (*) 123 11/23/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 160 12/14/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 18 12/14/2017 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 204 07/18/2017 Guaranteed rate subject to IPC Structured bank bonds (*) 10 02/14/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 157 02/23/2021 TIIE Structured bank bonds (*) 42 03/05/2018 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 42 03/05/2018 Guaranteed rate subject to NIKKEI 225 Structured bank bonds (*) 21 03/03/2021 Guaranteed rate subject to SXDP Structured bank bonds (*) 14 03/16/2021 TIIE Structured bank bonds (*) 9 03/27/2019 Guaranteed rate subject to NIKKEI 225 Structured bank bonds (*) 16 04/03/2019 Guaranteed rate subject to NIKKEI 225 Structured bank bonds (*) 5 08/02/2018 Guaranteed rate subject to DAX Structured bank bonds (*) 6 04/03/2018 Guaranteed rate subject to SXEE Structured bank bonds (*) 47 04/26/2019 Guaranteed rate subject to Euro Stoxx 50 Structured bank bonds (*) 383 04/23/2021 TIIE Structured bank bonds (*) 121 04/26/2019 Guaranteed rate subject to SX7E Structured bank bonds (*) 14 04/26/2019 Guaranteed rate subject to SX7E Structured bank bonds (*) 20 05/12/2021 TIIE Structured bank bonds (*) 19 05/23/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 150 06/06/2018 TIIE Structured bank bonds (*) 6 06/06/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 53 06/06/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 215 06/06/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 26 06/06/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 10 12/21/2017 TIIE Structured bank bonds (*) 93 09/04/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 28 10/03/2019 Guaranteed rate subject to NKY and SXE Structured bank bonds (*) 4 03/03/2021 Guaranteed rate subject to SXDP Structured bank bonds (*) 14 12/19/2019 Guaranteed rate subject to Euro Stoxx 50 Structured bank bonds (*) 10 01/10/2017 26.00 % Structured bank bonds (*) 83 01/17/2017 4.15 % 12,530 Transaction costs and accrued interest (net) 12 12,542 Promissory notes 68 01/02/2017 5.70 % Promissory notes 55 01/18/2017 5.75 % Promissory notes 13,721 01/02/2017 5.75 % Promissory notes 2,254 01/02/2017 5.75 % 16,098 Accrued interest 3 16,101 Unsecured bonds 3,000 03/16/2018 TIIE + 15 bps Unsecured bonds 1,700 03/09/2021 8.91 % Unsecured bonds 3,000 12/06/2018 TIIE + 18 bps Unsecured bonds 4,000 06/14/2021 TIIE + 38 bps Unsecured bonds 3,000 09/01/2026 7.19 % 14,700 Accrued interest 85 14,785 Mortgage-backed bonds 156 05/25/2032 5.00 % Mortgage-backed bonds 13 05/25/2032 6.40 % 169 Accrued interest — 169 (*) As of December 31, 2017, the balance of the issues performed by the Bank under the aforementioned program is as follows: Amount Maturity Date Rate Certificates of deposit (unsecured) 36 12/28/2018 7.42 % Certificates of deposit (unsecured) 11 12/27/2018 7.43 % Certificates of deposit (unsecured) 23 12/26/2018 7.42 % Certificates of deposit (unsecured) 28 12/24/2018 7.42 % Certificates of deposit (unsecured) 40 12/21/2018 7.42 % Certificates of deposit (unsecured) 28 12/20/2018 7.41 % Certificates of deposit (unsecured) 13 12/19/2018 7.41 % Certificates of deposit (unsecured) 13 12/18/2018 7.40 % Certificates of deposit (unsecured) 24 12/17/2018 7.40 % Certificates of deposit (unsecured) 28 12/14/2018 7.26 % Certificates of deposit (unsecured) 29 12/13/2018 7.25 % Certificates of deposit (unsecured) 31 12/11/2018 7.23 % Certificates of deposit (unsecured) 18 12/10/2018 7.20 % Certificates of deposit (unsecured) 20 12/07/2018 7.19 % Certificates of deposit (unsecured) 27 12/06/2018 7.19 % Certificates of deposit (unsecured) 19 12/05/2018 7.19 % Certificates of deposit (unsecured) 11 12/04/2018 7.19 % Certificates of deposit (unsecured) 8 12/03/2018 7.19 % Certificates of deposit (unsecured) 16 11/30/2018 7.42 % Certificates of deposit (unsecured) 1,200 12/06/2018 7.42 % Certificates of deposit (unsecured) 11 11/29/2018 7.43 % Certificates of deposit (unsecured) 600 11/28/2018 7.66 % Certificates of deposit (unsecured) 4 11/28/2018 7.42 % Certificates of deposit (unsecured) 300 11/28/2018 7.66 % Certificates of deposit (unsecured) 6 11/27/2018 7.42 % Certificates of deposit (unsecured) 4 11/26/2018 7.42 % Certificates of deposit (unsecured) 5 11/23/2018 7.42 % Certificates of deposit (unsecured) 7 11/22/2018 7.41 % Certificates of deposit (unsecured) 6 11/21/2018 7.41 % Certificates of deposit (unsecured) 7 11/20/2018 7.40 % Certificates of deposit (unsecured) 1 11/16/2018 7.26 % Certificates of deposit (unsecured) 6 11/15/2018 7.25 % Certificates of deposit (unsecured) 1 11/14/2018 7.23 % Certificates of deposit (unsecured) 500 11/05/2018 7.43 % Certificates of deposit (unsecured) 2,000 11/01/2018 7.67 % Certificates of deposit (unsecured) 1,200 09/17/2018 7.44 % Certificates of deposit (unsecured) 500 09/13/2018 7.43 % Certificates of deposit (unsecured) 2,000 09/13/2018 7.43 % Certificates of deposit (unsecured) 3,800 08/17/2018 7.43 % Certificates of deposit (unsecured) 100 08/16/2018 7.43 % Certificates of deposit (unsecured) 1,100 08/16/2018 7.62 % Certificates of deposit (unsecured) 50 07/27/2018 7.46 % Certificates of deposit (unsecured) 1,000 07/17/2018 7.55 % Certificates of deposit (unsecured) 1,000 06/25/2018 7.55 % Certificates of deposit (unsecured) 1,000 06/08/2018 7.59 % Certificates of deposit (unsecured) 500 05/24/2018 7.69 % Certificates of deposit (unsecured) 700 05/09/2018 7.64 % Certificates of deposit (unsecured) 750 02/23/2018 7.54 % Certificates of deposit (unsecured) 1,000 02/22/2018 7.50 % Certificates of deposit (unsecured) - USD 3 05/09/2018 0.96 % Certificates of deposit (unsecured) - USD 98 04/30/2018 0.99 % Certificates of deposit (unsecured) - USD 3,933 11/14/2018 1.62 % Certificates of deposit (unsecured) - USD 1 07/31/2018 0.40 % Certificates of deposit (unsecured) - USD 3 07/31/2018 0.99 % Certificates of deposit (unsecured) - USD 1 06/29/2018 0.40 % Certificates of deposit (unsecured) - USD 3 06/29/2018 0.98 % Certificates of deposit (unsecured) - USD 12 06/27/2018 0.98 % Certificates of deposit (unsecured) - USD 12 06/15/2018 0.98 % Certificates of deposit (unsecured) - USD 23 06/04/2018 0.98 % Certificates of deposit (unsecured) - USD 23 05/21/2018 0.98 % Certificates of deposit (unsecured) - USD 34 05/18/2018 0.98 % Certificates of deposit (unsecured) - USD 23 05/18/2018 0.98 % Certificates of deposit (unsecured) - USD 5 05/09/2018 0.96 % Certificates of deposit (unsecured) - USD 17 04/18/2018 1.05 % Certificates of deposit (unsecured) - USD 17 04/18/2018 1.05 % Certificates of deposit (unsecured) - USD 17 04/18/2018 1.05 % Certificates of deposit (unsecured) - USD 17 04/18/2018 1.05 % Certificates of deposit (unsecured) - USD 44 02/28/2018 0.65 % Certificates of deposit (unsecured) - USD 79 01/04/2018 0.85 % Certificates of deposit (unsecured) - USD 2,514 01/26/2018 1.70 % Certificates of deposit (unsecured) - USD 37 01/19/2018 0.85 % Certificates of deposit (unsecured) - USD 68 01/19/2018 0.85 % Certificates of deposit (unsecured) - USD 585 01/16/2018 1.20 % 27,350 Accrued interest 117 27,467 Senior Unsecured Notes 19,449 11/09/2022 4.125 % Accrued interest 109 19,558 Structured bank bonds 151 05/31/2018 Guaranteed rate subject to foreign exchange rate Structured bank bonds 59 01/04/2018 Guaranteed rate subject to foreign exchange rate Structured bank bonds 10 01/17/2018 Guaranteed rate subject to foreign exchange rate Structured bank bonds (*) 57 05/24/2021 TIIE Structured bank bonds (*) 18 05/12/2021 TIIE Structured bank bonds (*) 347 04/23/2021 TIIE Structured bank bonds (*) 7 03/16/2021 TIIE Structured bank bonds (*) 4 03/03/2021 Guaranteed rate subject to SXDP Structured bank bonds (*) 23 03/03/2021 Guaranteed rate subject to SXDP Structured bank bonds (*) 41 02/23/2021 TIIE Structured bank bonds (*) 167 12/14/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 128 11/23/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 66 11/09/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 212 11/09/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 45 11/09/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 8 11/05/2020 TIIE Structured bank bonds (*) 515 10/26/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 771 10/23/2020 TIIE Structured bank bonds (*) 36 12/27/2019 Guaranteed rate subject to Euro SX7E Structured bank bonds (*) 15 12/19/2019 Guaranteed rate subject to Euro STOXX 50 Structured bank bonds (*) 66 11/22/2019 Guaranteed rate subject to S&P 500 Structured bank bonds (*) 155 11/14/2019 Guaranteed rate subject to SXDP Structured bank bonds (*) 18 11/07/2019 Guaranteed rate subject to SXDP Structured bank bonds (*) 103 10/16/2019 Guaranteed rate subject to Euro STOXX 50 Structured bank bonds (*) 20 10/03/2019 Guaranteed rate subject to NKY and SXE Structured bank bonds (*) 90 09/25/2019 TIIE Structured bank bonds (*) 99 09/04/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 10 06/26/2019 TIIE Structured bank bonds (*) 58 06/06/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 27 06/06/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 219 06/06/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 7 06/06/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 21 05/23/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 15 04/26/2019 Guaranteed rate subject to Euro SX7E Structured bank bonds (*) 50 04/26/2019 Guaranteed rate subject to Euro STOXX 50 Structured bank bonds (*) 118 04/26/2019 Guaranteed rate subject to Euro SX7E Structured bank bonds (*) 18 04/03/2019 Guaranteed rate subject to NIKKEI 225 Structured bank bonds (*) 10 03/27/2019 Guaranteed rate subject to NIKKEI 225 Structured bank bonds (*) 110 02/21/2019 Guaranteed rate subject to Euro STOXX 50 Structured bank bonds (*) 11 02/14/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 19 11/16/2018 Guaranteed rate subject to S&P 500 and IPC Structured bank bonds (*) 167 10/19/2018 Guaranteed rate subject to INDU Structured bank bonds (*) 135 09/27/2018 Guaranteed rate subject to Euro STOXX 50 Structured bank bonds (*) 166 09/26/2018 Guaranteed rate subject to S&P 500 Structured bank bonds (*) 105 09/20/2018 Guaranteed rate subject to Euro STOXX 50 Structured bank bonds (*) 133 08/30/2018 Guaranteed rate subject to Euro STOXX 50 Structured bank bonds (*) 6 08/02/2018 Guaranteed rate subject to DAX Structured bank bonds (*) 11 08/02/2018 Guaranteed rate subject to DAX Structured bank bonds (*) 126 07/12/2018 Guaranteed rate subject to Euro SX6E Structured bank bonds (*) 305 06/29/2018 Guaranteed rate subject to IPC and S&P 500 Structured bank bonds (*) 10 06/29/2018 Guaranteed rate subject to IPC Structured bank bonds (*) 925 06/29/2018 Guaranteed rate subject to Euro SX6E Structured bank bonds (*) 10 06/29/2018 Guaranteed rate subject to Euro SX6E Structured bank bonds (*) 150 06/29/2018 Guaranteed rate subject to Euro SX6E Structured bank bonds (*) 467 06/27/2018 2.00 % Structured bank bonds (*) 13 06/08/2018 Guaranteed rate subject to IPC Structured bank bonds (*) 159 06/06/2018 TIIE Structured bank bonds (*) 127 05/31/2018 Guaranteed rate subject to Euro SX5E Structured bank bonds (*) 715 05/30/2018 Guaranteed rate subject to IPC Structured bank bonds (*) 10 05/25/2018 Guaranteed rate subject to IPC Structured bank bonds (*) 148 05/16/2018 Guaranteed rate subject to Euro SX5E Structured bank bonds (*) 101 05/09/2018 Guaranteed rate subject to IPC Structured bank bonds (*) 6 04/03/2018 Guaranteed rate subject to SXEE Structured bank bonds (*) 892 04/03/2018 Guaranteed rate subject to Euro STOXX Oil & Gas Structured bank bonds (*) 49 03/22/2018 Guaranteed rate subject to IPC Structured bank bonds (*) 46 03/20/2018 Guaranteed rate subject to IPC Structured bank bonds (*) 21 03/14/2018 Guaranteed rate subject to IPC Structured bank bonds (*) 90 03/12/2018 Guaranteed rate subject to IPC Structured bank bonds (*) 41 03/05/2018 Guaranteed rate subject to NIKKEI 225 Structured bank bonds (*) 41 03/05/2018 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 476 03/02/2018 Guaranteed rate subject to FSTE 100 Structured bank bonds (*) 10 02/21/2018 Guaranteed rate subject to IPC Structured bank bonds (*) 24 02/20/2018 Guaranteed rate subject to IPC Structured bank bonds (*) 310 02/19/2018 Guaranteed rate subject to IXE Structured bank bonds (*) 40 02/16/2018 Guaranteed rate subject to IPC Structured bank bonds (*) 14 01/04/2018 Guaranteed rate subject to EURO STOXX Oil & Gas Structured bank bonds (*) 572 01/04/2018 Guaranteed rate subject to EURO STOXX Oil & Gas Structured bank bonds (*) 181 05/17/2019 Guaranteed rate subject to Euro STOXX 50 10,726 Transaction costs and accrued interest (net) 22 10,748 Promissory notes 1,115 08/22/2018 7.53 % Promissory notes 499 08/10/2018 7.56 % Promissory notes 1,022 08/06/2018 7.57 % Promissory notes 511 08/03/2018 7.58 % Promissory notes 96 06/04/2018 7.38 % Promissory notes 868 06/04/2018 7.38 % Promissory notes 2,677 02/28/2018 7.38 % Promissory notes 1 01/23/2018 7.25 % Promissory notes 58 01/23/2018 7.25 % Promissory notes 60 01/02/2018 7.20 % Promissory notes 10,001 01/02/2018 7.25 % Promissory notes 6,500 01/02/2018 7.25 % 23,408 Accrued interest 169 23,577 Unsecured bonds 3,000 03/16/2018 8.91 % Unsecured bonds 3,000 09/01/2026 7.19 % Unsecured bonds 4,000 06/14/2021 TIIE + 38 bps Unsecured bonds 1,700 03/09/2021 TIIE + 15 bps Unsecured bonds 3,000 12/06/2018 TIIE + 18 bps 14,700 Accrued interest 98 14,798 Mortgage-backed bonds 133 05/25/2032 5.00 % Mortgage-backed bonds 15 05/25/2032 6.40 % 148 Accrued interest — 148 (*) |
Subordinated liabilities
Subordinated liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Subordinated liabilities | |
Subordinated liabilities | 22. Subordinated liabilities a) Breakdown The breakdown of the balance of Subordinated liabilities is as follows: 12/31/2017 Outstanding Issue Amount Annual Type Currency of Issue 12/31/2016 12/31/2017 in Foreign Currency Interest Rate (%) Tier II Subordinated Capital Notes USD 27,278 26,054 1,300,000,000 5.95 Subordinated Additional Tier I Capital Notes USD 10,298 9,831 500,000,000 8.50 Balance at year-end 37,576 35,885 Note 44.a. includes a breakdown of the remaining maturity of Subordinated liabilities. Additionally, Note 44.d. includes the fair value amounts of these liabilities. b) Changes The changes in Subordinated liabilities were as follows: 2016 2017 Beginning balance (million USD) 1,321 1,822 Issues 500 — Of which: Banco Santander México, S.A. 500 — Transaction costs and accrued interest 1 3 Balance at year-end (million USD) 1,822 1,825 Exchange rate per one USD as of December 31, 20.6194 19.6629 Balance at year-end (million pesos) 37,576 35,885 c) Other disclosures Tier II Subordinated Capital Notes On December 27, 2013, the Bank issued debt securities denominated as Tier II Subordinated Capital Notes in the amount of 1,300 million USD equivalent to 1,300,000 securities with a nominal value of 1,000 USD each with a ten-year maturity (January 30, 2024) and with an option to be prepaid in year five. The instruments were issued in accordance with Rule 144A and Regulation S of the US Securities Act of 1933, as amended, with a discount of 10 million USD. Interest will be paid semiannually, on January 30 and July 30, respectively, beginning July 30, 2014. The instruments bear interest at an initial rate of 5.95% a year during the first five years. The main features of this issue are as follows: a) If notes are not redeemed in year five, the interest rate for the second five-year period shall be based on the interest rate on US five-year Treasury Notes in effect at that moment plus the spread defined in the offering memorandum. b) Loss absorption mechanism through a write-down of the issue being the trigger event a computation of the Bank’s Basic Capital index of 4.5%. c) Partial write-down until the Bank achieves a Basic Capital index of 7.0%. d) When the Bank computes a Basic Capital index of 8.0%: Possible deferral of principal or interest or other remedies determined by the CNBV. Possible write-down due to breach of remediation. Possible early prepayment in an event of non-deductibility of interest or by the increase in the applicable withholding tax led by the consideration of the notes issued as Tier II Complementary Capital. Subordinated Additional Tier 1 Capital Notes On December 29, 2016, the Bank issued Subordinated Additional Tier 1 Capital Notes for an amount of 500 million USD. Subordinated Additional Tier 1 Capital Notes are convertible into common shares “F” Series and are callable (either fully or partially) at par in cash at the first call date (January 20, 2022) and subsequently every interest payment date. Interests are non-cumulative and fully discretionary. Some trigger events originate the cancellation of interest payment. Additional characteristics of the Subordinated Additional Tier 1 Capital Notes are as follows: · Automatically convertible into common shares when the Common Equity Tier I (CET I) or Basic Capital is equal to or below 5.125% (among other trigger events) at Conversion price (defined below). · Conversion price: The conversion price shall be, if the common shares are: i. traded on the Mexican Stock Exchange, the higher of: a. the weighted average volume of the ordinary shares closing price on the Mexican Stock Exchange for the thirty consecutive business days immediately preceding the conversion date, with each closing price for the thirty consecutive business days being converted from pesos into USD at the then prevailing exchange rate; or; b. the floor price of 20.30 pesos converted into USD at the then-prevailing exchange rate. ii. not traded on the Mexican Stock Exchange, the floor price of 20.30 pesos converted into USD at the then-prevailing exchange rate. · Subordinated Additional Tier 1 Capital Notes will accrue interest on an annual rate of 8.5% (subject to not being called in advance at the first call date or if the automatic conversion occurs), which will reset every five years considering the current five-year T-BILL interest rate plus the original credit spread. Interest payments will be recognized as a reduction of Accumulated reserves. · Fully callable in advance if the Subordinated Additional Tier 1 Capital Notes: i) fail to be considered as Fundamental Basic Capital, ii) interests are considered non-deductible for tax purposes or iii) the applicable withholding tax increases. · Any call in advance must be authorized by the Central Bank. This issue was privately acquired in its entirety by our Parent company and therefore is not registered in any securities registry. This is an issue with the same characteristics of the issuance of Perpetual Subordinated Non-Preferred Contingent Convertible Additional Tier 1 Capital Notes that our Parent company made on the same date. These Subordinated Additional Tier 1 Capital Notes are accounted for as a compound instrument with both liability and equity components (that arises from the contingent settlement provision and from the right of the holders to receive discretional interest payments, respectively). The payment of discretionary interest is recorded to Accumulated reserves. The liability component is recognized at the par value of the Subordinated Additional Tier 1 Capital Notes and is then deducted from the fair value of the compound financial instrument as a whole to arrive at the value of the equity component. A zero balance to the equity component is assigned, since there is an obligation to pay the full redemption amount and cannot avoid settlement in cash or another financial asset for the full redemption amount. In addition, an embedded derivative arises from the call option features on the Subordinated Additional Tier 1 Capital Notes within five years subsequent to the issuance date and on every interest payment date thereafter. This call option is deemed to be closely related to the Subordinated Additional Tier 1 Capital Notes and is not accounted for separately. d) Reconciliation of liabilities arising from financing activities Tier II Subordinated Capital Notes The table below details changes in the Bank’s liabilities arising from financing activities, including both cash and non-cash changes. Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be, classified in the Bank’s consolidated statement of cash flows as cash flows from financing activities. Non-cash changes Foreign January 1, 2017 Cash flows Accrued Transaction exchange 12/31/2017 Type interest costs movements Tier II Subordinated Capital Notes 27,278 (803) 825 33 (1,279) 26,054 Subordinated Additional Tier I Capital Notes 10,298 — (*) — 12 (479) 9,831 Balances at 37,576 (803) 825 45 (1,758) 35,885 (*) The Bank paid 635 million pesos related to interests on the Subordinated Additional Tier I Capital Notes, which are recognized against Accumulated reserves within shareholders’ equity. |
Other financial liabilities
Other financial liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other financial liabilities | |
Other financial liabilities | 23. Other financial liabilities The breakdown of Other financial liabilities is as follows: 12/31/2016 12/31/2017 Trade payables 1,929 1,895 Collection accounts: Tax payables 974 939 Financial transactions pending settlement 14,180 5,468 Other financial liabilities 2,437 5,161 19,520 13,463 Note 44.a. includes a breakdown of the remaining maturity periods of Other financial liabilities. In addition, Note 44.d. contains the fair value amounts of these liabilities. The breakdown of Financial transactions pending settlement is as follows: 12/31/2016 12/31/2017 M and M0 Mexican Government Bonds 6,199 1,973 CETES 718 1,456 UDIBONDS 2,400 1,146 Equity instruments 342 119 Other financial instruments 4,521 774 14,180 5,468 The breakdown of Other financial liabilities is as follows: 12/31/2016 12/31/2017 Retentions related to loans (*) 1,004 1,587 Other payable account 1,433 3,574 2,437 5,161 (*) |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2017 | |
Provisions. | |
Provisions | 24. Provisions a) Breakdown The breakdown of Provisions is as follows: 12/31/2016 12/31/2017 Provisions for pensions and similar obligations 3,972 3,860 Provisions for tax and legal matters 1,306 1,072 Provisions for off-balance-sheet risk 874 1,032 Other provisions 1,050 766 Provisions 7,202 6,730 b) Changes The changes in Provisions were as follows: 2015 2016 2017 Provisions Provisions Provisions Provisions Provisions Provisions Provisions Provisions for Pensions Provisions for Off- for Pensions for Tax and for Off- for Pensions for Tax and for Off- and Similar for Tax and Balance- Other and Similar Legal Balance- Other and Similar Legal Balance- Other Obligations Legal Matters Sheet Risk Provisions Total Obligations Matters Sheet Risk Provisions Total Obligations Matters Sheet Risk Provisions Total Balance at the beginning of year 2,863 1,220 1,359 546 5,988 4,004 1,005 952 619 6,580 3,972 1,306 874 1,050 7,202 Additions charged (credited) to net income: Interest expense and similar charges 213 — — — 213 317 — — — 317 332 — — — 332 Personnel expenses – Defined Benefit Plan 188 — — — 188 201 — — — 201 146 — — — 146 Personnel expenses – Defined Contribution Plan (Note 41) 272 — — — 272 300 — — — 300 330 — — — 330 Other (24) — — — (24) (186) — — — (186) 51 — — — 51 Actuarial (gains)/losses recognized in the year in Other comprehensive income 953 — — — 953 (530) — — — (530) (666) — — — (666) Period provisions — (33) (407) 205 (235) — 624 (78) 521 1,067 — 197 158 31 386 Contributions from the employer — — — — 542 — — — 542 225 — — — 225 Payments to pensioners and pre-retirees with a charge to internal provisions (178) — — — (178) (365) — — — (365) (191) — — — (191) Other payments (*) — (182) — (132) (314) — (323) — (90) (413) — (431) — (315) (746) Payments to Defined Contribution Plan (272) — — — (272) (300) — — — (300) (330) — — — (330) Transfers and other changes (11) — — — (11) (11) — — — (11) (9) — — — (9) Balances at the end of year 4,004 1,005 952 619 6,580 3,972 1,306 874 1,050 7,202 3,860 1,072 1,032 766 6,730 (*) c) Provisions for pensions and similar obligations Defined contribution plan The Bank sponsors a defined contribution retirement benefit plan for all qualifying employees of its subsidiaries whereby the Bank agrees to contribute pre-established cash amounts to a given investment fund, in which the employee’s benefits consist of the sum of such contributions, plus or minus the gains or losses from the management of such funds of those employees who form part of this defined contribution retirement benefit plan. The qualifying employees are those who began working for the Bank after 2006. The retirement age is 65 years. The assets of the plan are held separately from those of the Bank in funds under the control of trustees. The Bank recognized as personnel expenses in the consolidated income statement the amounts of 272 million pesos, 300 million pesos and 330 million pesos in 2015, 2016 and 2017, respectively (see Note 41), related to contributions payable to the defined contribution retirement benefit plan. Defined benefit plan According to Mexican Labor Law, the Bank is liable for severance payments for employees who are terminated by the Bank and seniority premiums, which are statutory retirement benefits. In addition, the Bank offers a defined benefit pension plan and other post-retirement benefits agreed under a collective bargaining agreement. The defined benefit plans are administered in a pension fund that is legally separated from the Bank. The trustee of the pension fund is required by law to act in the best interests of the plan participants and is responsible for setting certain policies (e.g. investment, contribution and indexation policies) of the fund. During the year, the Bank estimates and records the net periodic cost to create a provision that covers the net projected obligation from pensions, medical expenses, seniority premiums and severance payments. These estimates are related to the obligations derived from Mexican Labor Law, as well as the obligations derived from the collective bargaining agreement. Therefore, the liability is accrued at the present value of future cash flows required to settle the obligation from benefits projected to the estimated retirement date of the Bank’s employees calculated based on the projected unit credit method. The plans typically expose the Bank to actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk. Investment risk The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to high-quality corporate bond yields; if the return on plan asset is below this rate, it will create a plan deficit. Currently the plan has a relatively balanced investment in debt instruments and equity securities. Due to the long-term nature of the plan liabilities, the board of the pension fund considers it appropriate that a reasonable portion of the plan assets should be invested in equity securities to leverage the return generated by the fund. Interest risk A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan’s debt investments. Longevity risk The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability. Salary risk The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability. Provisions for defined benefit post-employment plan, which benefits include a pension and medical expenses plan, severance payments and seniority premiums, amounted to 3,951 million pesos and 3,830 million pesos as of December 31, 2016 and 2017, respectively. The investment fund of the defined benefit post-employment plan was 3,426 million pesos and 2,901 million pesos as of December 31, 2016 and 2017, respectively. Investments are well-diversified, such that the failure of any single investment would not have a material impact on the overall level of assets. Plan assets in 2016 and 2017 consist of debt and equity instruments. The Bank believes that equities offer the best returns over the long-term with an acceptable level of risk. Prior to January 1, 2006, the Bank offered a defined benefit medical expenses plan to all eligible employees (and their families) that upon retirement provided for the payment of 100% of medical expenses due to illness or accidents. Under this medical expenses plan, the Bank accrues the estimated medical expenses based upon actuarial calculations during the period of employment up to the date of retirement. Beginning on January 1, 2006, the Bank introduced a new defined contribution medical expenses plan referred to as the “Retirement Medical Coverage Plan”. All individuals employed after January 1, 2006 were automatically enrolled in this plan. Employees with more than six months of service as of January 1, 2006 were given the option of remaining under the defined benefit medical expenses plan or to be transferred to the “Retirement Medical Coverage Plan”. Under the “Retirement Medical Coverage Plan”, the Bank pays pre-established cash amounts to a given investment fund. An employee’s benefit consists of the sum of such contributions, plus or minus the gains or losses from the management of such funds. As of December 31, 2016 and 2017, approximately 1.30% and 1.00% of the Bank’s employees, respectively, were still enrolled in the defined benefit pension plan while the rest of the employees were enrolled in the defined contribution pension plan. As of December 31, 2016 and 2017, approximately 83.30% and 81% of the Bank’s employees enrolled in the defined contribution pension plan have been included in the “Retirement Medical Coverage Plan”. Employees that start working for the Bank on August 16, 2014 and later, do not have the option to be enrolled in the “Retirement Medical Coverage Plan”, because they are registered in the Mexican Institute of Social Security (IMSS) as their medical coverage. In addition, they have a medical insurance that covers its major medical expenses. The breakdown of Provisions for pensions and similar obligations is as follows: 12/31/2016 12/31/2017 Provisions for post-employment plans Of which: Defined benefit pension plan 3,951 3,830 Provisions for defined contribution pension plan 21 30 Provisions for pensions and similar obligations 3,972 3,860 The amount of the defined benefit obligations was determined using the following actuarial techniques: 1. Valuation method: projected unit credit method, which sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately. 2. Actuarial assumptions used: The most significant actuarial assumptions used in the calculations were as follows: Defined Benefit Pension Plan 12/31/2016 12/31/2017 Annual discount rate 9.0 % 9.3 % Mortality tables EMSSA 1997 EMSSA 1997 Expected return on plan assets 9.0 % 9.3 % Cumulative annual INPC growth 3.5 % 3.5 % Annual salary increase rate 4.5 % 4.5 % Annual minimum salary increase rate 3.5 % 3.5 % Medical cost trend rates 7.12 % 7.12 % The determination of the discount rate considers the term and performance of high-quality corporate bonds. 3. The estimated retirement age of each employee is the first year in which the employee is entitled to retire or the agreed-upon age, as appropriate. The funding status of the defined benefit obligations is as follows: Defined Benefit Pension Plan 12/31/2016 12/31/2017 Present value of the obligations: Pension plan 2,283 2,019 Post-employment benefits 4,440 4,000 Other 654 712 7,377 6,731 Less: Fair value of plan assets (3,426) (2,901) Provisions – Provisions for pensions 3,951 3,830 Of which: Internal provisions for pensions 3,951 3,830 The amounts recognized in the consolidated income statement in relation to the aforementioned defined benefit obligations are as follows: Defined Benefit Pension Plan 2015 2016 2017 Current service cost (Note 41) 188 201 146 Interest cost (net) 213 317 332 Other (24) (186) 51 377 332 529 The changes in the present value of the accrued defined benefit obligations were as follows: Defined Benefit Pension Plans 2016 2017 Present value of the obligations at the beginning of year 7,864 7,377 Current service cost (Note 41) 201 146 Interest cost 643 633 Benefits paid (818) (737) Actuarial (gains)/losses (512) (681) Other (1) (7) Present value of the obligations at the end of year 7,377 6,731 The duration of the defined benefit obligation is 9.35 years. The changes in the fair value of plan assets were as follows: Defined Benefit Pension Plan 2016 2017 Fair value of plan assets at the beginning of year 3,881 3,426 Actual return on plan assets 539 242 Transfer of funds to defined contribution plan (542) (225) Benefits paid (452) (542) Other — — Fair value of plan assets at the end of year 3,426 2,901 The fair value of the plan assets is determined based on quoted market prices in active markets. The Bank does not expect to make contributions to post-employment benefit plans for the year ending December 31, 2018. The major categories of plan assets as a percentage over the total plan assets are as follows: Defined Benefit Pension Plan 12/31/2016 12/31/2017 Equity instruments 27 % 29 % Cash and debt instruments 73 % 71 % The fair value measurement of the financial instruments that comprises the plan assets is categorized as Level 1 since the inputs to the fair value measurement are quoted market prices in active markets. Sensitivity analysis Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, medical cost trend rate, annual salary increase, annual INPC growth and mortality. The sensitivity analyses below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant. · If the discount rate is 50 basis points higher (lower), the defined benefit obligation would decrease by 289 million pesos (increase by 303 million pesos). · If the medical cost trend rate is 50 basis points higher (lower), the defined benefit obligation would increase by 181 million pesos (decrease by 168 million pesos). · If the annual salary growth increases (decreases) by 0.50%, the defined benefit obligation would increase by 9 million pesos (decrease by 8 million pesos). · If the annual INPC growth increases (decreases) by 0.50%, the defined benefit obligation would increase by 7 million pesos (decrease by 7 million pesos). · If the mortality increases (decreases) by two years for men and women, the defined benefit obligation would decrease by 378 million pesos (increase by 383 million pesos). The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation recognized in the consolidated balance sheet. d) Other disclosures In July 2001, the Bank entered into a collective lifetime payment insurance operation agreement for certain retirees with Principal México Compañía de Seguros, S.A. de C.V. (hereinafter, Principal). Such agreement establishes that with the payment of the single premium by the Bank, Principal commits to paying insured retirees a lifetime payment until the death of the last insured retiree. Under such agreement, the Bank’s net worth would not be affected in the future by these insured persons, since the risk was transferred to Principal. However, in order to record the Bank’s legal obligation to its retirees in the consolidated balance sheet, the Bank recognizes the projected benefit obligation of the insured retirees surrendered to Principal under Provisions - Provisions for pensions and similar obligations, and a long-term account receivable with Principal, which is recognized under Provisions - Provisions for pensions and similar obligations for the funds that it transferred thereto. The amount of the projected benefits obligation was calculated at the close of the year, based on the estimates used for labor liabilities and the remaining personnel. As of December 31, 2016 and 2017, such liability was 865 and 826 million pesos, respectively. For presentation purposes, the arrangement has not impact on net assets as the asset and liability are offset. e) Provisions for tax and legal matters The Bank is a party to various tax claims for which it has recognized total provisions of 177 million pesos and 49 million pesos as of December 31, 2016 and 2017, respectively. i. Tax-related proceedings The main tax-related proceeding concerning the Bank was as follows: · On May 8, 2013, Santander Consumo, S.A. de C.V. (Santander Consumo) filed a claim of nullity with the Metropolitan Regional Chamber of the Federal Court of Tax and Administrative Justice against the resolution contained in the notice 900 06‑03‑2013‑5228 through which a tax credit of 58 million pesos was determined by the Tax Administration Service related to ISR and its related inflation effects, surcharges and fines corresponding to fiscal year 2008. After several unsuccessful instances of the claim of nullity, Santander Consumo settled an amount of 53 million pesos to the tax authorities in 2016. The aforementioned claim has been definitively concluded. ii. Other tax issues The Bank operates a branch in Nassau, Bahamas through which it carries out tax-free operations principally involving derivative instruments. The Tax Administration Service has reviewed the operations of the Nassau branch and determined that the Bank is liable for Mexican withholding taxes. During December 2009, the Bank negotiated a settlement with the Mexican tax authorities for cumulative back withholding taxes on transactions carried out from 2004 through 2009. The Bank made settlement payments of 18 million pesos in 2016 and 5 million pesos in 2017. iii. Non-tax-related proceedings As of December 31, 2016 and 2017, as a result of its business activities, the Bank has had certain claims and lawsuits representing contingent liabilities filed against it. Notwithstanding, Management and its internal and external legal and labor advisers do not expect such proceedings to have a material effect on the consolidated financial statements in the event of an unfavorable outcome. As of December 31, 2016 and 2017, the Bank has recognized provisions for the amounts of 1,129 million pesos and 1,023 million pesos, respectively, for matters which based on the opinion of its internal and external legal advisers, Management has assessed losses to be probable. Management considers such provisions to be adequate and, based on its best estimates, does not believe that actual losses will vary materially from the recognized provisions. The total amount of payments made by the Bank arising from litigation in 2015, 2016 and 2017 is not material with respect to these consolidated financial statements. During 2016 and 2017, the amount paid by the Bank to external lawyers was 322 million pesos and 431 million pesos, respectively, for the management of all the outstanding claims. f) Provisions for off-balance-sheet risk The provisions for off-balance-sheet risk are estimated with the same methodology used for calculating the impairment of loans and receivables. Refer to Note 2.g. above for further description. The breakdown of the off-balance-sheet risks is as follows: 12/31/2016 12/31/2017 Available lines of credit cards and non-revolving consumer loans 759 838 Guarantees and loan commitments of commercial and public sector loans 115 194 874 1,032 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other liabilities | |
Other Liabilities | 25. Other liabilities The breakdown of the balance of Other liabilities is as follows: 12/31/2016 12/31/2017 Sundry creditors 3,637 3,493 Cash balances undrawn 5,988 5,167 Cash-settled share-based payments 534 784 Accrued personnel obligations 1,561 2,211 Other obligations 1,395 1,735 Credit and debit card operation balances 1,283 1,690 14,398 15,080 |
Tax matters
Tax matters | 12 Months Ended |
Dec. 31, 2017 | |
Tax matters | |
Tax matters | 26. Tax matters a) Income Tax expense The components of income tax expense for 2015, 2016 and 2017 are as follows: 2015 2016 2017 Current tax expense: Tax expense for current year 4,983 5,138 4,215 Deferred tax expense (benefit): Origination and reversal of temporary difference and usage (accrual) of tax carryforward benefits (679) 213 1,281 Total Income Tax expense 4,304 5,351 5,496 b) Income Tax reconciliation The reconciliation of the income tax expense calculated at the corporate income tax rate of 30% to the income tax expense recognized and the breakdown of the effective tax rate are as follows: 2015 2016 2017 Profit before tax 18,368 21,887 24,174 Income tax at 30% 5,510 6,566 7,252 Increase/(Decrease) due to permanent differences Of which: Due to effect of inflation (999) (982) (1,742) Due to effect of tangible assets (87) (154) (78) Due to effect of tax audit settlements (*) (31) — — Due to effect of non-deductible expenses, non-taxable income and others (89) (79) 64 Income Tax 4,304 5,351 5,496 Effective tax rate 23.43 % 24.45 % 22.74 % Current tax liability — — — Income tax 4,304 5,351 5,496 Of which: Current tax 4,983 5,138 4,215 Deferred taxes (679) 213 1,281 (*) The Bank is subject to regular reviews by the Mexican tax authorities. As of December 31, 2017, there are no tax contingencies arising because of such tax reviews requiring disclosure. c) Tax recognized in consolidated equity In addition to the income tax recognized in the consolidated income statement, the Bank recognized the following amounts in consolidated equity: 2015 2016 2017 Net tax credited/(charged) to consolidated equity: Remeasurement of defined benefit obligation 286 (158) (200) Measurement of Available-for-sale – Debt instruments 51 1,158 (478) Measurement of Available-for-sale – Equity instruments 2 16 1 Measurement of Financial derivatives (Cash flow hedges) (260) (207) 440 Paid interests on Subordinated Additional Tier I Capital Notes — — 191 79 809 (46) d) Deferred taxes Main components of the Bank’s gross deferred income tax assets and liabilities are as follows: 12/31/2016 12/31/2017 Total deferred tax assets prior to offsetting 20,881 17,184 Of which: Tangible assets and deferred charges 2,413 2,457 Provisions 1,144 1,659 Impairment losses on loans and receivables 9,313 8,337 Unrealized losses on financial instruments 3,460 — Net operating losses carryforward (*) 169 106 Capital losses carryforward(*) 2,525 2,689 Labor provisions 1,149 1,022 Fees and interest collected in advance 708 579 Foreign exchange rate derivatives — 335 Total deferred tax liabilities prior to offsetting (2,841) (635) Of which: Unrealized gains on financial instruments 68 (20) Foreign exchange rate derivatives (2,069) — Prepayments (394) (467) Labor provisions (101) — Other (345) (148) (*) As of December 31, 2017, the detail of Net operating losses carryforward is as follows: Year of origination Year of expiration Amount Deferred tax asset 2010 2020 46 14 2011 2021 192 58 2014 2024 24 7 2015 2025 87 26 2016 2026 5 1 354 106 As of December 31, 2017, the detail of Capital losses carryforward is as follows: Year of origination Year of expiration Amount Deferred tax asset 2015 2025 2,284 685 2016 2026 3,627 1,088 2017 2027 3,051 916 8,962 2,689 The Bank only recognizes deferred tax assets for temporary differences and tax credit carryforward where it is considered probable that the consolidated entities that generated them will have sufficient future taxable profits against which they can be utilized. After offsetting, deferred tax assets and liabilities are presented on the consolidated balance sheets as follows: 12/31/2016 12/31/2017 Presented as deferred tax assets ( * ) 18,045 16,600 Presented as deferred tax liabilities (5) (51) Net 18,040 16,549 (*) The change in the balance of deferred tax assets and deferred tax liabilities does not equal the deferred tax expense/(benefit). This is due to deferred taxes that are recognized directly in consolidated equity and the acquisition and disposal of entities as part of ordinary activities. The changes in the total deferred tax assets and liabilities, prior to offsetting, in the last two years were as follows: (Charge)/ Credit to Consolidated (Charge)/ Credit to Other Consolidated Comprehensive Other 01/01/2016 Income Income Movements 12/31/2016 Deferred tax assets 18,548 2,333 — — 20,881 Deferred tax liabilities (1,381) (2,546) 809 277 (2,841) 17,167 (213) 809 277 18,040 (Charge)/ Credit to Consolidated (Charge)/ Credit to Other Consolidated Comprehensive Other 01/01/2017 Income Income Movements 12/31/2017 Deferred tax assets 20,881 (3,561) (136) — 17,184 Deferred tax liabilities (2,841) 2,280 (101) 27 (635) 18,040 (1,281) (237) 27 16,549 |
Non-controlling interests
Non-controlling interests | 12 Months Ended |
Dec. 31, 2017 | |
Non-controlling interests | |
Non-controlling interests | 27. Non-controlling interests Non-controlling interests include the net amount of the equity of subsidiaries attributable to equity instruments that do not belong, directly or indirectly, to the Bank, including the portion attributed to them of profit for the year. a) Breakdown The breakdown by subsidiary of Equity - Non-controlling interests is as follows: 12/31/2016 12/31/2017 Equity as of balance-sheet date attributable to non-controlling interests: Of which: Fideicomiso GFSSLPT, Banco Santander México, S.A. 41 14 Other 14 15 55 29 Profit for the year attributable to non-controlling interests: Of which: Fideicomiso GFSSLPT, Banco Santander México, S.A. — — Other — — b) Changes The changes in Non-controlling interests are summarized as follows: 2016 2017 Beginning balance 58 55 Profit for the year attributable to non-controlling interests — — Other (3) (26) Balance at year-end 55 29 The foregoing changes are shown in the consolidated statement of changes in equity. |
Valuation adjustments
Valuation adjustments | 12 Months Ended |
Dec. 31, 2017 | |
Valuation adjustments | |
Valuation adjustments | 28. Valuation adjustments The balances of Valuation adjustments include the amounts, net of the related deferred tax effect, of the adjustments to assets and liabilities recognized temporarily in consolidated equity through the consolidated other comprehensive income. The amounts arising from subsidiaries are presented, on a line by line basis, in the appropriate items according to their nature. It should be noted that the consolidated statement of comprehensive income presents items separately according to their nature, grouping together those, which pursuant to the applicable IFRS, will not be subsequently reclassified to the consolidated income statement when the requirements established by the related IFRS are met. In addition, with respect to items that may be reclassified to the consolidated income statement, the consolidated statement of comprehensive income includes changes in Valuation adjustments as follows: a) Available-for-sale financial assets Valuation adjustments - Available-for-sale financial assets include the net amount of unrealized gains or losses in the valuation of assets classified as available-for-sale financial assets (see Notes 9 and 10). The breakdown by type of financial instrument of Valuation adjustments - Available-for-sale financial assets at December 31, 2016 and 2017 is as follows: 12/31/2016 12/31/2017 Net Net Valuation Valuation Valuation Valuation Gains/ Fair Valuation Valuation Gains/ Fair Gains Losses (Losses) Value Gains Losses (Losses) Value Debt instruments 498 (3,951) (3,453) 154,318 2,784 (849) 1,935 164,947 Equity instruments 1 (53) (52) 326 23 (26) (3) 795 At the end of each year, the Bank assesses whether there is any objective evidence that the financial instruments classified as available-for-sale (debt securities and equity instruments) are impaired. This assessment includes but is not limited to an analysis of the following information: i) the issuer’s economic and financial position, the existence of default or late payment, analysis of the issuer’s solvency, the evolution of its business, short-term projections, trends observed with respect to its earnings and, if applicable, its dividend distribution policy; ii) market-related information such as changes in the general economic situation, changes in the issuer’s sector which might affect its ability to pay; iii) changes in the fair value of the security analyzed, analysis of the origins of such changes - whether they are intrinsic or the result of the general uncertainty concerning the economy or the country - and iv) independent analysts’ reports and forecasts and other independent market information. If, after the above assessment has been carried out, the Bank considers that the presence of one or more of these factors could affect recovery of the cost of the asset, an impairment loss is recognized in the consolidated income statement for the loss in the consolidated other comprehensive income under Valuation adjustments. In addition, where the Bank does not intend and/or is not able to hold the investment for a sufficient amount of time to recover the cost, the instrument is written down and its valuation recognized temporarily under Valuation adjustments in the consolidated other comprehensive income is reclassified to the consolidated income statement. A summary of changes in the cumulative valuation adjustments recorded to Available-for-sale financial assets is as follows: Debt Equity Instruments Instruments Total Balance at January 1, 2015 (558) 12 (546) Valuation adjustments (192) (4) (196) Amounts reclassified to consolidated income statement 161 — 161 Income taxes 51 2 53 Balance at December 31, 2015 (538) 10 (528) Valuation adjustments (3,453) (52) (3,505) Amounts reclassified to consolidated income statement (120) — (120) Income taxes 1,158 16 1,174 Balance at December 31, 2016 (2,953) (26) (2,979) Valuation adjustments 1,935 (3) 1,932 Amounts reclassified to consolidated income statement (9) — (9) Income taxes (478) 1 (477) Balance at December 31, 2017 (1,505) (28) (1,533) b) Cash flow hedges Valuation adjustments - Cash flow hedges include the gains or losses attributable to hedging instruments that qualify as effective hedges. These amounts will remain under this heading until they are reclassified in the consolidated income statement in the periods in which the hedged items affect profit or loss (see Note 13). The breakdown of the accumulated gain or loss on the effective portion of the hedging to the cumulative valuation adjustment for cash flow hedges is presented as follows: 2016 2017 Accumulated (loss)/gain on cash flow hedges 1,297 302 Accumulated gain related to discontinued cash flow hedges (Note 13) 86 54 Balance at December 31, 1,383 356 |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2017 | |
Shareholders' equity | |
Shareholders' equity | 29. Shareholders’ equity a) Share capital As of December 31, 2016 and 2017, share capital, at par value, was as follows: Total Par Value Number of Shares (Millions of Pesos) 12/31/2016 12/31/2017 12/31/2016 12/31/2017 Fixed capital: Series "F" shares 67,792,912,762 67,792,912,762 6,779 6,779 Series "B" shares 13,062,491,041 13,062,491,041 1,307 1,307 80,855,403,803 80,855,403,803 8,086 8,086 Authorized unsubscribed capital: Series "F" shares 7,862,838,825 7,862,838,825 — — 7,862,838,825 7,862,838,825 — — 88,718,242,628 88,718,242,628 8,086 8,086 Share capital is comprised of fixed shares, which cannot be increased and variable shares, which may be increased without limit. Series “F” shares may only be acquired by our Parent company or, directly or indirectly, by Banco Santander, S.A. (Spain), except when such shares are transferred in guarantee or in ownership to the Mexican Bank Savings Protection Institute (hereinafter, IPAB). These shares can only be sold with the prior authorization of the Mexican Treasury Department. No authorization shall be required from such Authority and corporate bylaws will not have to be amended when the transfer of shares is either in guarantee or ownership, to the IPAB. At all times, Series “F” share capital shall represent at least 51% of share capital and Series “B” share capital can represent up to 49% of the share capital. Foreign governments may not direct or indirectly own any share capital of the Bank, except when: i) they do it temporarily as part of financial supporting or bailout; ii) they do it through official entities and iii) they do it indirectly and do not have control on the Bank, pursuant Article 13 of the Credit Institutions Law. All the aforementioned exceptions must be authorized by the CNBV. Capital reductions will incur taxation on the excess of the amount distributed against the corresponding tax value determined according to the Income Tax Law. b) Share premium Share premium includes the amount paid up by the Bank’s shareholders in capital issues in excess of the par value. The Mexican General Law of Corporations expressly permits the use of the share premium account balance to increase capital at the entities at which it is recognized and does not establish any specific restrictions as to its use. c) Accumulated reserves Accumulated reserves include the net amount of the accumulated profit recognized in previous years through the consolidated income statement that was appropriated to consolidated equity, the legal reserve, the differences between the selling price of treasury shares and its cost of acquisition thereof and the remeasurement of defined benefit obligation. Accumulated profit This includes the accumulated profit not distributed to shareholders. Dividend policy and payment of dividends Income tax must be paid in the event that payment of dividends from profits is not previously subject to income tax. Accordingly, the Bank must keep track of profits subject to each rate and maintain such accumulated profits in a Net tax profit account. In accordance with amendments to the Income Tax Law, dividends paid from profits earned in fiscal year 2014 and thereafter by Mexican companies to Mexican resident individuals or foreign residents (including foreign corporations) are subject to an additional withholding tax of 10%. International tax treaties may apply to avoid double taxation on dividends paid to overseas shareholders. Dividends paid by the Bank to Mexican resident individuals and foreign residents in 2015, 2016 and 2017 are not subject to the 10% additional withholding tax as such dividends were paid from profits obtained prior to 2014. Legal reserve The Bank is subject to the legal reserve provision whereby at least 10% of net profits each year must be allocated and transferred to a capital reserve fund until reaching the equivalent of 100% of the paid-in share capital. Regarding Bank’s subsidiaries, the legal reserve provision requires the creation of a legal reserve equal to 5% of net profits until reaching 20% of paid-in share capital. The legal reserve fund cannot be distributed to the shareholders during the existence of the aforementioned entities, except in the form of a stock dividend. As of December 31, 2016 and 2017, the Bank and its subsidiaries comply with the percentage of legal reserve required. Treasury shares Transactions involving own equity instruments are recognized directly in consolidated 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 consolidated equity, net of any related tax effect. d) Other disclosures During the Ordinary General Meeting of April 28, 2015, the following resolution was adopted: The amount of 3,534 million pesos was allocated from Accumulated reserves for the payment of dividends. This amount was paid to shareholders on May 28, 2015. The aforementioned dividend paid to shareholders was taken from the Net tax profit account. During the Ordinary and Extraordinary General Meeting of November 25, 2015, the following resolution was adopted: The amount of 3,226 million pesos was allocated from Accumulated reserves for the payment of dividends. This amount was paid to shareholders on December 21, 2015. The aforementioned dividend paid to shareholders was taken from the Net tax profit account. During the Ordinary General Meeting of April 28, 2016, the following resolution was adopted: The amount of 3,844 million pesos was allocated from Accumulated reserves for the payment of dividends. This amount was paid to shareholders on May 26, 2016. The aforementioned dividend paid to shareholders was taken from the Net tax profit account. During the Ordinary General Meeting of December 5, 2016, it was authorized to increase the capital stock by 786 million pesos through the issuance of 7,862,838,825 Series “F” shares, which par value is 0.10 pesos per share. The aforementioned shares are recognized as treasury shares which will guarantee the contingent obligation to convert into the Bank’s common shares related to the Subordinated Additional Tier 1 Capital Notes described in Note 22. During the Ordinary General Annual Meeting of December 22, 2016, the following resolution was adopted: The amount of 13,624 million pesos was allocated from Accumulated reserves for the payment of dividends. This amount was paid to shareholders on December 30, 2016. The aforementioned dividend paid to shareholders was taken from the Net tax profit account. During the Ordinary General Annual Meeting of April 28, 2017, the following resolution was adopted: The amount of 4,234 million pesos was allocated from Accumulated reserves for the payment of dividends. This amount was paid to shareholders on May 30, 2017. The aforementioned dividend paid to shareholders was taken from the Net tax profit account. During the Ordinary and Extraordinary General Meeting of December 8, 2017, the following resolutions were adopted: - The amount of 4,676 million pesos was allocated from Accumulated reserves for the payment of dividends. This amount was paid to shareholders on December 27, 2017. - It was agreed to carry out “the Corporate Restructuring”, which considers, among other corporate acts, the merger of the Group as the merged entity with the Bank as the merging entity. By official letter UBVA/077/2017 dated December 13, 2017, the SHCP authorized “the Corporate Restructuring” (see Note 1.d for a description of the corporate acts to carrie out “the Corporate Restructuring”). To carry out the Merger, the following resolutions were adopted: i. Increase the share capital of the Bank by capitalizing the Share premium in the amount of 17,574 million pesos, through the issuance of 175,746,122,497 shares, with a nominal value of 0.10 pesos, of which 147,353,683,122 shares correspond to the Series "F” and 28,392,439,375 shares correspond to the Series "B". ii. Carry out an equity concentration (reverse split) by increasing the nominal value of the Bank's shares from 0.10 pesos to 3.780782962 and decreasing the number of outstanding shares. As a result of the reverse split, 264,464,365,125 shares representing the share capital of the Bank were cancelled and 6,994,962,889 new shares representing the capital of the Bank were issued. iii. Carry out the exchange of shares, between the Bank and the Group once the Merger has been approved by the Public Registry of Commerce. The exchange of shares will be carried out by cancelling the shares representing the Group and the issuance of new shares of the Bank whose holders will be the shareholders of the extinct Group. iv. Increase the unsubscribed share capital of the Bank by 1,671 million pesos, through the cancellation of 207,968,532 treasury shares and the issuance of 650,000,000 new shares representing the Bank's share capital, which will be held as treasury shares by the Bank to guarantee the conversion of the Subordinated Additional Tier 1 Capital Notes issued by the Bank in December 2016 (see Note 22). The aforementioned resolutions were effective on January 26, 2018, once the Ordinary and Extraordinary General Meeting minute and the merger agreements between the Bank and the Group were registered in the Public Registry of Commerce. On the same date, the delivery of the Bank's shares through INDEVAL to the Bank's shareholders was completed. |
Minimum capital requirements
Minimum capital requirements | 12 Months Ended |
Dec. 31, 2017 | |
Minimum capital requirements | |
Minimum capital requirements | 30. Minimum capital requirements The Bank’s risk-weighted assets and capitalization ratios are calculated in accordance with Mexican Banking GAAP. The management of capital is performed at regulatory and economic levels. As established in the Sole Circular for Banks issued by the CNBV, the Bank must maintain a minimum net capital in relation to the market, credit and operational risks inherent to its operations, which is based on the Basel Agreements within the Mexican legislation. Such minimum capital is determined based on the sum of the capital requirements stipulated for each aforementioned type of risk. Net Capital Net capital is divided into two parts: Basic Capital and Complementary Capital. Additionally, Basic Capital is divided into two portions: Fundamental Basic Capital and Non-Fundamental Basic Capital. Basic Capital (Tier I Capital) is the sum of Fundamental Basic Capital and Non-Fundamental Basic Capital. Fundamental Basic Capital is composed mainly of shareholders’ equity plus other equity instruments, less, among other deductions: stock investments on financial institutions, organizational expenses, other intangibles assets, excess of deferred tax assets derived from tax losses that exceed the 4% of Tier I Capital and excess of deferred taxes from temporary differences that exceed the 10% of Tier I Capital. Non-Fundamental Basic Capital is composed mainly of a bank’s equity instruments, which are not included as Fundamental Basic Capital according to the current legislation. Complementary Capital (Tier II) is composed mainly of a bank’s equity instruments, which are not included as Basic Capital according to the current legislation, and the positive difference resulting from subtracting to the total permitted reserves, the total expected losses, up to an amount that does not exceed 0.6% of the assets subject to credit risk. Assets Subject to Credit Risk Deposits, securities, loans and receivables, reverse repurchase agreements, swaps, forward contracts, securities loans, options, certain derivative instruments and all other bank transactions exposed to credit risk in accordance with established regulations are classified in their respective risk groups and the weight factors stipulated for each group are applied, ranging from zero up to 150%, depending on the counterparty and scores determined by the ratings agencies accredited by the CNBV or by the Bank in the event it is an authorized institution for the use of internal models. Counterparty risk is calculated by incorporating an add-on and calculating a CVA for OTC derivatives transactions. Assets Subject to Market Risk In interest bearing transactions, the capital requirement is calculated by determining the residual term of the financial asset or financial liability and by applying the corresponding Market Risk Charge Coefficient based on the residual term and currency of the financial asset or financial liability. For those transactions, whose return is based on changes in the price of a share, basket of shares or market index, a 22.23% of General Market Risk Charge Coefficient is applied to the net position, to which additional specific market risk requirements are added for long net positions and short net positions by 8%. For foreign currency positions, a 12% Market Risk Charge Coefficient is applied on the higher of the sum of the long net position or short net position. For transactions linked to Mexican inflation and denominated in UDIS, a capital requirement is calculated by applying a Market Risk Charge Coefficient of 1.25% over the increase of the INPC (calculated as the average of the previous twelve months) to the absolute value of the total net position. For options and warrants, a Vega (variations on volatility) and Gamma (variations on the subjacent) capital requirement is calculated by applying the rules defined on Article 2 bis 109 of the Sole Circular for Banks issued by the CNBV. For transactions linked to the annual minimum salary growth, a capital requirement is calculated by applying a Market Risk Charge Coefficient of 1.25% over the increase of the annual minimum salary growth (calculated as the average of the actual month and the previous eleven months) to the absolute value of the total net position. The equivalent assets for market risk are determined by multiplying by 12.5, the sum of the capital requirements of all the transactions described above. Assets Subject to Operational Risk Since November 2016, the Bank uses the Alternative Standardized Approach under Basel II standards to calculate the assets subject to operational risk. This method consists first of dividing the business into 8 lines. For six of them, the capital requirement is calculated multiplying a “Beta” factor for the average net revenues for the 36 months prior to the month being calculated and for the two remaining (Retail and Commercial) the capital requirement is calculated by determining the average net balance for the 36 months prior to the month being calculated multiplied for a “Beta” factor and for 3.5. The equivalent assets for operational risk are determined by multiplying the capital requirement by 12.5. At the date of these consolidated financial statements, the Bank complied with these minimum capital requirements (see below). The minimum capital requirements calculated in accordance with the Mexican Banking GAAP for the Bank is as follows: 12/31/2016 12/31/2017 Computable capital: 109,237 115,321 Core capital 107,187 116,126 Supplementary capital 27,453 26,054 Deductible items (35,700) (36,671) Subordinated Additional Tier 1 Capital Notes (see Note 22.c.) 10,297 9,812 Capital requirements: 55,509 58,668 Market risk 8,642 11,039 Credit risk 43,698 44,313 Operational risk 3,169 3,316 Excess of capital requirements 53,724 56,653 Risk-weighted assets 693,964 733,346 As of December 31, 2016 and 2017, in accordance with the capitalization requirements applicable to full service banks, the Bank has the following capitalization ratios, which exceed the minimum legal capital required by the CNBV. The capital ratios included in this table are in accordance to the data published by the CNBV. 12/31/2016 12/31/2017 Net Capital / Required Capital 1.97 1.97 Minimum capital requirements Not applicable Not applicable Basic Fundamental Capital / Assets subject to Credit, Market and Operating Risk 10.30 % 10.83 % Minimum capital requirements 7.30 % 7.60 % Basic Capital / Assets subject to Credit, Market and Operating Risk 11.79 % 12.17 % Minimum capital requirements 8.80 % 9.10 % Net Capital / Assets subject to Credit Risk 20.00 % 20.82 % Minimum capital requirements Not applicable Not applicable Net Capital / Assets subject to Credit, Market and Operating Risk 15.74 % 15.73 % Minimum capital requirements 10.80 % 11.10 % |
Memorandum accounts
Memorandum accounts | 12 Months Ended |
Dec. 31, 2017 | |
Memorandum accounts | |
Memorandum accounts | 31. Memorandum accounts Memorandum items relate to balances representing rights, obligations and other legal matters that in the future may have an impact on net assets, as well as any other balances needed to reflect all transactions performed by the Bank, although they may not impact on their net assets, including contingent commitments and financial instruments received as collateral in OTC derivative transactions, reverse repurchase agreements and securities loans transactions in which the lender is the Bank. a) Contingent commitments Contingent commitments include those irrevocable commitments that could give rise to the recognition of financial assets. The breakdown is as follows: Contingent commitments 12/31/2016 12/31/2017 Available lines of credit cards and non-revolving consumer loans 140,658 136,649 Guarantees, documentary credits and loan commitments of commercial and public sector loans 61,753 78,381 Guarantees, documentary credits and loan commitments of commercial loans (SMEs) 312 432 Total 202,723 215,462 At December 31, 2016 and 2017, the Bank had recognized provisions for off-balance sheet risk of 874 million pesos and 1,032 million pesos, respectively, to cover contingent liabilities arising from available lines of credit cards and non-revolving consumer loans (see Note 24). A significant portion of the guarantees and loan commitments will expire without any payment obligation materializing for the Bank and, therefore, the aggregate balance of these commitments cannot be considered an actual future need for financing or liquidity to be provided by the Bank to third parties. Income from guarantee instruments is recognized under Fee and commission income in the consolidated income statements and is calculated by applying the rate established in the related contract to the nominal amount of the guarantee. b) Financial instruments received as collateral Financial instruments include those securities received by the Bank in which there is not transfer of the contractual rights or risk and rewards of the financial instruments that could give rise to the recognition of financial assets since the Bank received them to engage in OTC derivatives transactions, reverse repurchase agreements and securities loan transactions in which the lender is the Bank. The breakdown is as follows: Financial instruments received as collateral 12/31/2016 12/31/2017 Debt instruments received in OTC derivatives transactions 5,215 3,783 Debt instruments received in reverse repurchase agreement transactions 42,360 51,693 Equity instruments received in securities loans transactions 3 7 Total 47,578 55,483 |
Derivatives - Nominal amounts a
Derivatives - Nominal amounts and fair values of trading and hedging derivatives | 12 Months Ended |
Dec. 31, 2017 | |
Derivatives - Nominal amounts and fair values of trading and hedging derivatives | |
Derivatives - Nominal amounts and fair values of trading and hedging derivatives | 32. Derivatives - Nominal amounts and fair values of trading and hedging derivatives The breakdown of the fair value and nominal amount of trading derivative assets as of December 31, 2016 and 2017 is as follows: 12/31/2016 12/31/2017 Trading Nominal Fair Value Nominal Fair Value Futures: Foreign Currency Futures 577 50 6,263 — Interest Rate Futures 5,664 6 1,505 — Market Index Futures 481 10 — — Forwards: Foreign Currency Forwards 129,707 6,636 117,917 5,188 Foreign Exchange Spot 30,210 47 54,653 112 Equity Forwards 601 3 7,744 93 Options: Foreign Currency Options 15,824 383 104,023 2,072 Interest Rate Options 142,801 1,698 125,931 1,339 Market Index Options 10,791 874 7,644 579 Equity Options 44 1 93 3 Swaps: IRS 1,895,718 62,885 2,663,538 57,556 Equity Swap — — 1,674 267 CCS 541,363 127,314 464,667 98,052 Total Trading 2,773,781 199,907 3,555,652 165,261 As of December 31, 2016 and 2017, 199,836 million pesos and 165,246 million pesos (assets) are OTC derivatives of the total amount of the trading derivative assets, respectively. The breakdown of the fair value and nominal amount of hedging derivative assets as of December 31, 2016 and 2017 is as follows: 12/31/2016 12/31/2017 Hedging Nominal Fair Value Nominal Fair Value Cash flow hedge: IRS 1,000 2 4,000 91 CCS 32,733 14,908 31,215 12,577 Foreign Currency Forwards — — 22,061 2,389 Fair value hedge: IRS 3,357 66 2,138 59 CCS 658 27 — — Total Hedging 37,748 15,003 59,414 15,116 Total Derivatives Assets 2,811,529 214,910 3,615,066 180,377 The breakdown of the fair value and nominal amount of trading derivative liabilities as of December 31, 2016 and 2017 is as follows: 12/31/2016 12/31/2017 Trading Nominal Fair Value Nominal Fair Value Futures: Foreign Currency Futures 1,031 — — — Interest Rate Futures 47,560 28 3,500 — Market Index Futures 85 — 190 — Forwards: Foreign Currency Forwards 131,512 6,083 113,417 5,022 Foreign Exchange Spot 67,484 107 35,776 71 Interest Rate Forwards — — — — Market Index Forwards 107 4 7,742 90 Options: Foreign Currency Options 16,782 574 123,537 2,655 Interest Rate Options 140,299 1,904 117,167 1,197 Market Index Options 16,609 504 3,297 323 Equity Options 72 2 93 3 Swaps: IRS 1,866,944 63,787 2,682,892 59,830 Equity Swap — — — 26 CCS 403,720 132,697 431,644 102,065 Total Trading 2,692,205 205,690 3,519,255 171,282 As of December 31, 2016 and 2017, 205,495 million pesos and 171,222 million pesos (liabilities), respectively are OTC derivatives of the total amount of the trading portfolio. The breakdown of the fair value and nominal amount of hedging derivative liabilities as of December 31, 2016 and 2017 is as follows: 12/31/2016 12/31/2017 Hedging Nominal Fair Value Nominal Fair Value Cash flow hedge: IRS 1,050 20 700 — CCS 13,680 4,222 10,717 3,799 Foreign Currency Forwards 24,433 6,318 31,762 720 Fair value hedge: IRS 1,124 97 1 — CCS 15,836 3,630 24,680 6,572 Total Hedging 56,123 14,287 67,860 11,091 Total Derivatives Liabilities 2,748,328 219,977 3,587,115 182,373 As of December 31, 2016 and 2017, the collateral provided to engage in derivative transactions in organized markets is as follows: 12/31/2016 12/31/2017 Collateral provided: Of which: Mercado Mexicano de Derivados, S.A. de C.V. (MexDer) Cash 2,771 2,216 Chicago Mercantile Exchange Cash 334 350 Foreign financial institutions Cash 77 — 3,182 2,566 Deposits of collateral back up positions operated on the MexDer such as interest rate futures, futures based on the IPC, USD futures, listed option futures and positions operated on the Chicago Mercantile Exchange such as Standard & Poor’s futures, US Treasury Notes futures and equity options. The guarantees and/or collateral delivered for the OTC derivative transactions as of December 31, 2016 and 2017 are as follows: 12/31/2016 12/31/2017 Loans and receivables – Loans and advances to credit institutions: Of which (Note 8): Mexican financial institutions Cash 19,391 15,916 Foreign financial institutions Cash 32,023 18,626 51,414 34,542 Financial assets held for trading – Debt instruments: Of which (Note 9): Mexican financial institutions Bonds 2,670 2,822 Foreign financial institutions Bonds — 142 2,670 2,964 The guarantees and/or collateral received for the OTC derivative transactions as of December 31, 2016 and 2017 are as follows: 12/31/2016 12/31/2017 Deposits from credit institutions and Customer deposits: Of which (Notes 19 and 20): Mexican financial institutions Cash 10,106 8,425 Foreign financial institutions Cash 37,592 36,350 Other Cash 123 249 47,821 45,024 12/31/2016 12/31/2017 Memorandum accounts: Of which (Note 31): Mexican financial institutions Bonds 5,215 3,783 5,215 3,783 Upon executing transactions with OTC derivatives, the Bank agrees to deliver and/or receive collateral to cover any exposure to market risk and the credit risk of such transactions. Such collateral is contractually agreed to with each of the counterparties. Currently, debt securities, mainly government bonds, are posted as collateral for transactions with domestic financial entities. Cash deposits are used for transactions with foreign financial entities and institutional customers. The nominal and/or contractual amounts of the derivative contracts traded by the Bank do not reflect the actual risk assumed by the Bank since the net position in these financial instruments is the result of offsetting and/or combining them. The net position is used by the Bank to hedge interest rates, underlying asset prices or foreign currency risk and to assume directional exposure to risk factors limited by the Bank’s risk appetite. The results of these financial instruments are recognized in Gains/(losses) on financial assets and liabilities (net) in the consolidated income statement. If their purpose is to hedge other exposures, they increase or offset, as appropriate, the gains or losses on the hedged investments (see Note 13). The Bank manages the credit risk exposure of these contracts through setting credit lines, establishing netting arrangements with its main counterparties and by receiving assets as collateral (see Note 2.f). The cumulative credit risk exposure is measured in terms of Equivalent Credit Risk (hereinafter, ECR). ECR is composed of the current exposure of the contract (at fair value in the case of derivatives) and the Potential Future Exposure (hereinafter, PFE) which is defined as the maximum expected credit risk exposure over a specified period of time calculated at a 97.5% level of confidence and which expresses its potential future exposure. This metric is used internally for management purposes. ECR by Profiles Methodology introduces the concept of Exposure Profile per deal, where risk exposure may vary depending on the time-band considered. There is not a unique exposure figure per deal. However, many exposures figure as time-bands are affected and each time-band exposure equals the maximum exposure within the time-band. Deal risk aggregation per counterparty and per time-band requires aggregation of a Potential Future Exposure for each of the time-bands and considering the netting agreement for the Current Exposure and also, if applicable, collateral mitigation; so, there is an aggregated net exposure per counterparty as time-bands are impacted. For derivatives, where ECR is equal to the Current Exposure plus the nominal amount multiplied by the Risk Factor (PFE), the Profiles Methodology implies that PFE figure is not unique but is calculated for each of the time-bands. The Counterparty Credit Risk Area compares, on a monthly basis, the nominal amounts used to calculate the PFE against the nominal amounts recognized in the accounting records and also compares the Current Exposure amounts used for the Current Exposure of the ECR against the Current Exposure amounts also recognized in the accounting books. As of December 31, 2016 and 2017, the cumulative net credit risk exposure of the Bank was 370,463 million pesos and 385,059 million pesos, respectively. The net credit risk exposure comprises the total counterparty credit risk and issuer risk (which includes derivatives, repurchase agreements and debt securities), less any received assets as collateral for mitigating these risks. |
Interest income and similar inc
Interest income and similar income | 12 Months Ended |
Dec. 31, 2017 | |
Interest income and similar income | |
Interest income and similar income | 33. Interest income and similar income Interest income and similar income in the consolidated income statement comprises the interest accrued in the year on all financial assets with an implicit or explicit return, calculated by applying the effective interest method, irrespective of measurement at fair value, and the adjustment to interest income as a result of hedge accounting. The breakdown of the main interest income and similar income items earned in 2015, 2016 and 2017 is as follows: 2015 2016 2017 Cash and balances with the Central Bank 1,102 1,418 2,081 Loans and advances to credit institutions 2,102 2,832 4,804 Loans and advances to customers 50,227 59,264 72,263 Debt instruments 10,513 13,149 16,791 Hedging derivatives 237 703 1,895 Other interest income 49 87 168 64,230 77,453 98,002 |
Interest expenses and similar c
Interest expenses and similar charges | 12 Months Ended |
Dec. 31, 2017 | |
Interest expenses and similar charges | |
Interest expenses and similar charges | 34. Interest expenses and similar charges Interest expenses and similar charges in the consolidated income statement include the interest accrued during the year on all financial liabilities with an implicit or explicit return, calculated by applying the effective interest method, irrespective of measurement at fair value, the adjustment to interest expense as a result of hedge accounting and the net interest cost attributable to pension funds. The breakdown of the main items of interest expenses and similar charges accrued in 2015, 2016 and 2017 is as follows: 2015 2016 2017 Deposits from credit institutions 6,001 6,145 7,564 Customer deposits 9,026 14,609 24,560 Marketable debt securities 1,893 2,625 3,696 Subordinated liabilities 1,259 1,473 1,600 Hedging derivatives 463 167 129 Other interest expenses 2,600 3,304 4,609 21,242 28,323 42,158 |
Dividend income
Dividend income | 12 Months Ended |
Dec. 31, 2017 | |
Dividend income | |
Dividend income | 35. Dividend income Dividend income includes the dividends and payments on equity instruments out of profits generated by investees after the acquisition of the equity interest. The breakdown of Dividend income is as follows: 2015 2016 2017 Equity instruments classified as: Financial assets held for trading 37 16 5 Of which: NAFTRAC (Exchange-traded fund or ETF) 14 6 2 América Móvil, S.A.B, de C.V. 2 1 1 Grupo México, S.A.B. de C.V. 2 — — Wal-Mart de México, S.A.B. de C.V. 6 3 1 Fomento Económico Mexicano, S.A.B. de C.V. 1 1 — Others 12 5 1 Available-for-sale financial assets 67 78 145 Of which: Controladora Prosa, S.A. de C.V. — — 62 Trans Unión de México, S.A. 51 57 83 Dun & Bradstreet de México S.A. de C.V. — 20 — Others 16 1 — 104 94 150 |
Fee and commission income
Fee and commission income | 12 Months Ended |
Dec. 31, 2017 | |
Fee and commission income | |
Fee and commission income | 36. Fee and commission income Fee and commission income comprises the amount of all fees and commissions accruing in favor of the Bank during the year, except those that form part of the effective interest rate on financial instruments. The breakdown of Fee and commission income is as follows: 2015 2016 2017 Collection and payment services: Service charges on deposit accounts 896 951 1,046 Credit and debit cards 4,687 5,369 6,268 Checks and others 257 253 252 5,840 6,573 7,566 Marketing of nonbanking financial products: Investment funds management 1,193 1,486 1,457 Capital markets and securities activities 290 439 513 Collection and payment services 2,114 2,334 2,568 Insurance 4,104 4,272 4,341 Financial advisory services 1,373 1,222 1,341 9,074 9,753 10,220 Securities services: Administration and custody 464 528 524 464 528 524 Other: Foreign currency transactions 866 1,080 1,111 Other fees and commissions 893 836 895 1,759 1,916 2,006 17,137 18,770 20,316 |
Fee and commission expenses
Fee and commission expenses | 12 Months Ended |
Dec. 31, 2017 | |
Fee and commission expenses | |
Fee and commission expenses | 37. Fee and commission expenses Fee and commission expenses comprises the amount of all fees and commissions paid or payable by the Bank in the year, except those that form part of the effective interest rate on financial instruments. The breakdown of Fee and commission expenses is as follows: 2015 2016 2017 Credit and debit cards 1,895 2,894 3,250 Checks and others 23 26 25 Collections and transactional services 123 158 226 Fund management 25 4 2 Capital markets and securities activities 102 135 199 Financial advisory services — 16 6 Other fees and commissions 1,337 1,597 1,795 3,505 4,830 5,503 |
Gains or losses on financial as
Gains or losses on financial assets and liabilities (net) | 12 Months Ended |
Dec. 31, 2017 | |
Gains or losses on financial assets and liabilities (net) | |
Gains/(losses) on financial assets and liabilities (net) | 38. Gains/(losses) on financial assets and liabilities (net) Gains/(losses) on financial assets and liabilities (net) include the amount of the valuation adjustments of financial instruments, except those attributable to interest accrued as a result of application of the effective interest method, impairment losses and the realized gains or losses obtained from the sale and purchase thereof. The breakdown of Gains/(losses) on financial assets and liabilities (net) by type of instrument is as follows: 2015 2016 2017 Financial instruments held for trading 2,405 3,626 3,223 Of which: Debt instruments 487 784 494 Equity instruments 96 109 29 Derivatives 1,916 2,765 2,736 Others (94) (32) (36) Recognized profit from sale of available-for-sale financial instruments 177 120 9 Hedging derivatives (78) 14 226 Of which: Fair value hedge – hedged items (Note 13) (105) 375 341 Fair value hedge – hedging derivative instruments (Note 13) 23 (363) (117) Cash flow hedge inefficiency (Note 13) 4 2 2 2,504 3,760 3,458 |
Exchange differences, (net)
Exchange differences, (net) | 12 Months Ended |
Dec. 31, 2017 | |
Exchange differences (net) | |
Exchange differences (net) | 39. Exchange differences (net) Exchange differences (net) shows the gains or losses arising on the translation of monetary items in foreign currency to the functional currency as a result of changes in foreign exchange rates. |
Other operating income and othe
Other operating income and other operating expenses | 12 Months Ended |
Dec. 31, 2017 | |
Other operating income and other operating expenses | |
Other operating income and other operating expenses | 40. Other operating income and other operating expenses Other operating income and other operating expenses in the consolidated income statement include: 2015 2016 2017 Other operating income: Other operating income 472 486 669 472 486 669 Other operating expenses: IPAB fund contribution (2,238) (2,631) (2,894) Other operating expenses (772) (730) (720) (3,010) (3,361) (3,614) On January 19, 1999, the IPAB was created in order to establish a bank savings protection system in favor of depositors that perform guaranteed banking transactions, and to regulate financial support granted to full service banking institutions in order to protect the interests of depositors. IPAB’s resources come from the mandatory contributions paid by financial entities, according to the risk to which they are exposed. Such contributions are calculated based on the capitalization level of each financial group and other indicators set forth in IPAB’s bylaws issued by its Board of Directors. These contributions must be equivalent to one-twelfth of four-thousandths of the monthly average of the daily balances of funding activities of the applicable month. |
Personnel expenses
Personnel expenses | 12 Months Ended |
Dec. 31, 2017 | |
Personnel expenses | |
Personnel expenses | 41. Personnel expenses a) Breakdown The breakdown of Personnel expenses is as follows: 2015 2016 2017 Wages and salaries 5,211 5,542 6,300 Social security costs 912 1,037 1,105 Service expense related to defined contribution pension plan (Note 24) 272 300 330 Service expense related to defined benefit pension plan (Note 24) 188 201 146 Share-based payments 161 131 283 Other staff costs 1,547 1,474 1,289 Bonus and benefits granted to employees 2,334 2,787 3,295 10,625 11,472 12,748 b) Local Program The Bank’s Board of Directors approved in October 2012 a share-based cash-settled compensation plan for eligible executive officers subject to certain conditions described below. This plan was paid out annually over the first three years after the global public offering of 24.9% of the share capital of our Parent company in September 2012. Under this plan, eligible executive officers would receive a cash incentive that had to be used irrevocably to acquire shares of our Parent company at a price of 31.25 pesos per share. This incentive was linked to the achievement each year of two independent objectives related with the increase in the stock price and with the performance of the stock price against the IPC. If these objectives were fulfilled, each year one-third of the total amount of the incentive would be paid to the eligible executive officers. The achievement of each objective would determine the payment of up to 50% of the maximum amount of the incentive for each year to the plan’s eligible executive officers who continued as active officers of the Bank at the time that each of the three plan payments was due. The fair value of the plan was calculated based on the fair value of the stock price at the grant date. The total fair value of the plan to eligible executive officers was 396 million pesos equivalent to 13,309,760 shares at a price of 31.25 pesos per share. During 2015, the Bank recognized in the consolidated income statement an amount of 63 million pesos, as services rendered by the eligible executive officers. c) Corporate performance shares plan 2014 During the Shareholders’ Meeting of Banco Santander (Spain) on March 28, 2014, a new share-based payment plan was approved that is applicable only to a certain group of executive officers (known as the “identified staff” or “supervised group”). The plan is denominated “Corporate performance shares plan 2014” and provides a variable compensation linked to the performance of the stock of Banco Santander (Spain), as established in the Annual Shareholders’ Meeting of Banco Santander (Spain). This multiannual share-based cash-settled compensation plan is payable in shares of our Parent company with annual deliveries of shares to the beneficiaries during a period of three years beginning on July 1, 2015. The total number of shares that will be granted to each beneficiary was established in early 2015 depending on Banco Santander (Spain)’s performance (TSR) during 2014 against a peer group of financial institutions. A percentage of one-third of the total number of vested shares will be paid at the end of each year (June 2016, June 2017 and June 2018) based on Banco Santander (Spain)’s cumulative performance (TSR) (2014 and 2015 for the first tranche; 2014 to 2016 for the second tranche and 2014 to 2017 for the third tranche) against that of a peer group of financial institutions. According to the number of eligible executive officers and the specifications of the plan, its fair value is 49 million pesos. During 2016 and 2017, the Bank recognized 16 million pesos and 16 million pesos, respectively, in the consolidated income statement with respect to this plan. d) Long-term incentive plan 2015 During September 2016, the Bank began to participate in a new corporate share-based variable compensation plan denominated “Long-term incentive plan 2015” applicable only to a certain group of executive officers. This plan provides a variable compensation linked to the growth of the earnings per share ratio and of the return on tangible equity of Banco Santander (Spain). This share-based cash-settled compensation plan is payable in shares of our Parent company in 2019. According to the number of eligible executive officers and the specifications of the plan, its fair value is 86 million pesos. During 2016 and 2017, the Bank recognized 10 and 27 million pesos, respectively, in the consolidated income statement with respect to this plan. e) Bonus payment policies As a result of an internal policy of Banco Santander (Spain), a portion of the annual variable compensation or bonus for a certain group of executive officers (known as the “identified staff” or “supervised group”) is deferred for a period of three or five years, with one-third or one-fifth vesting each year. Both the deferred and non-deferred portions are paid equally in cash and in shares of our Parent company for the corresponding payment periods. Once delivered, beneficiaries are obligated to keep the shares for a one-year period. In 2015, 2016 and 2017, the Bank recognized in the consolidated income statement, the fair value of the benefits for an amount of 166 million pesos, 105 million pesos and 325 million pesos, respectively. The bonus of the beneficiaries for financial years 2015, 2016 and 2017 will be paid according to the following percentages, depending on the time of payment and on the group to which the beneficiary belongs (the “Immediate Payment Percentage” to identify the portion for which payment is not deferred, and the “Deferral Percentage” to identify the portion for which payment is deferred): Beneficiaries Immediate Payment (millions of Euros) Percentage Deferred Percentage Deferral period Executive officers and members of the identified staff with total variable remuneration ≥ 2.7 40 % 60 % 5 years Executives officers and members of the identified staff with total variable remuneration ≥ 1.7 (< 2.7) 50 % 50 % 5 years Other beneficiaries 60 % 40 % 3 years Taking the foregoing into account, the bonus for financial years 2015, 2016 and 2017 will be paid as follows: · Each beneficiary will receive in 2016, 2017 and 2018, depending on the group to which such beneficiary belongs, the Immediate Payment Percentage at the Initial Date applicable in each case, in halves and net of taxes (or withholdings), in cash and in shares (the “Initial Date”, meaning the specific date on which the Immediate Payment Percentage is paid). · Payment of the Deferred Percentage of the bonus applicable in each case depending on the group to which the beneficiary belongs will be deferred over a period of 3 or 5 years and will be paid in thirds or fifths, as applicable, within thirty days of the anniversaries of the Initial Date, provided that the conditions described below are met. · After deduction of any taxes (or withholdings) applicable at any time, the net amount of the deferred portion will be paid in thirds or fifths, 50% in cash and the other 50% in shares. · The beneficiaries receiving shares may not transfer them or hedge them directly or indirectly for one year as from each delivery of shares. Prior to 2017, the deferred portion originated an amount in cash equal to the dividends paid on the deferred amount in shares and interests accrued on the amount in cash from the Initial Date through the date of payment. In accordance to an internal policy of Banco Santander (Spain), from 2017 the deferred amount portion to be payable in thirds or fifths excludes the payment of dividends and interests. In 2015 and 2016, the accrual of the deferred remuneration is conditional, in addition to the beneficiary permanence in the Bank, upon none of the following circumstances existing -in the opinion of the Board of Directors following a proposal of the remuneration committee-, during the period prior to each of the deliveries: (i) poor financial performance of the Bank; (ii) breach by the beneficiary of internal regulations, including, in particular, those relating to risks; (iii) material restatement of the Bank’s financial statements, except when appropriate under a change in accounting regulations; or (iv) significant changes in the Bank’s economic capital or risk profile. In 2017, the accrual of deferred remuneration is conditioned, in addition to the beneficiary permanence in the Bank, to the non-occurrence of instances of poor financial performance from the Bank thereof or of the exposures generated by the personnel, at least the following factors must be considered: (i) significant failures in risk management committed by the Bank; (ii) the increase suffered by the entity or by a business unit of its capital needs, not foreseen at the time of generation of the exposures; (iii) regulatory sanctions or court rulings for events that could be attributable to the Bank or the personnel responsible for those. Also, the breach of internal codes of conduct of the Bank; and (iv) irregular behaviors, whether individual or collective, considering in particular negative effects derived from the marketing of inappropriate products and responsibilities of persons that made those decisions. If the foregoing requirements are met on each delivery date, the beneficiaries shall receive the cash and shares, in thirds or fifths, as applicable, within thirty days of the first, second, third and, if applicable, fourth and fifth anniversary. |
Other general administrative ex
Other general administrative expenses | 12 Months Ended |
Dec. 31, 2017 | |
Other general administrative expenses | |
Other general administrative expenses | 42. Other general administrative expenses a) Breakdown The breakdown of Other general administrative expenses is as follows: 2015 2016 2017 Maintenance, conservation and repair 968 1,073 1,227 Technology and systems 2,334 2,555 2,790 Stationery and supplies 212 197 215 Advertising and communications 722 901 968 Rents 1,836 1,839 1,963 Administrative services 502 926 936 Taxes other than income tax 1,280 1,360 1,454 Surveillance and cash courier services 611 699 894 Insurance premiums 70 82 78 Travel costs 298 215 293 Other administrative expenses 1,322 1,336 1,871 10,155 11,183 12,689 b) Other information The fees for audit and tax services to the audit of the consolidated financial statements by the respective auditors (PwC in 2016 and 2017 and Galaz, Yamazaki, Ruiz Urquiza, S.C. Member of Deloitte Touche Tohmatsu Limited in 2015) are as follows: 2015 2016 2017 Audit fees and audit-related fees (*) 40 58 72 Tax fees 2 — 1 42 58 73 (*) |
Gains_(losses) on disposal of a
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) | 12 Months Ended |
Dec. 31, 2017 | |
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) | |
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) | 43. Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) The breakdown of Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) is as follows: 2015 2016 2017 Gains: On disposal of tangible assets 7 20 6 7 20 6 |
Other disclosures
Other disclosures | 12 Months Ended |
Dec. 31, 2017 | |
Other disclosures | |
Other disclosures | 44. Other disclosures a) Remaining maturity periods The breakdown by maturity of the balances of certain items in the consolidated balance sheets as of December 31, 2016, is as follows: 12/31/2016 Less More On than 1 1 to 3 3 to 12 1 to 3 3 to 5 than 5 Demand Month Months Months Years Years Years Total Assets: Cash and balances with the Central Bank 24,887 25,382 200 100 — — 28,094 78,663 Financial assets held for trading Debt instruments — 31,784 5,697 9,197 50,667 33,703 9,805 140,853 Equity instruments 1,822 — — — — — — 1,822 Trading derivatives 100 2,357 8,947 18,608 35,245 23,864 110,786 199,907 Other Financial Assets at Fair Value through Profit or Loss - Loans and advances to credit institutions – Reverse repurchase Agreements — 37,831 — — — — — 37,831 Loans and advances to customers –Reverse repurchase agreements — 4,509 — — — — — 4,509 Available-for-sale financial assets - Debt instruments — 34,360 1,985 581 76,096 16,358 24,938 154,318 Equity instruments — — — — — — 326 326 Loans and receivables - Loans and advances to credit institutions — 82,293 — — — 95 — 82,388 Loans and advances to customers 13,700 35,639 56,535 132,051 148,389 68,852 126,472 581,638 Debt instruments — — — 904 — — 10,568 11,472 Hedging derivatives — 1 4 12 9,306 50 5,630 15,003 40,509 254,156 73,368 161,453 319,703 142,922 316,619 1,308,730 Liabilities: Financial liabilities held for trading - Trading derivatives 464 4,539 4,680 20,777 36,497 27,166 111,567 205,690 Short positions — 61,138 — — — — — 61,138 Other Financial Liabilities at Fair Value through Profit or Loss - Deposits from the Central Bank — 15,025 403 51 — — — 15,479 Deposits from credit institutions — 25,155 — — — — — 25,155 Customer deposits — 83,157 734 — — — — 83,891 Marketable debt securities — 92 1,142 2,476 6,085 2,540 — 12,335 Financial liabilities at amortized cost - Deposits from credit institutions 39,428 15,871 22,331 2,591 14,070 5,031 — 99,322 Customer deposits 418,228 101,303 28,969 15,938 2,865 2,067 2,635 572,005 Marketable debt securities — 19,493 5,506 17,447 6,014 5,700 23,508 77,668 Subordinated liabilities — 664 — — — — 36,912 37,576 Other financial liabilities 5 16,431 2,070 937 77 — — 19,520 Hedging derivatives 6,318 152 23 138 499 1,863 5,294 14,287 464,443 343,020 65,858 60,355 66,107 44,367 179,916 1,224,066 Difference (assets less liabilities) (423,934) (88,864) 7,510 101,098 253,596 98,555 136,703 84,664 The breakdown by maturity of the balances of certain items in the consolidated balance sheets as of December 31, 2017, is as follows: 12/31/2017 Less More On than 1 1 to 3 3 to 12 1 to 3 3 to 5 than 5 Demand Month Months Months Years Years Years Total Assets: Cash and balances with the Central Bank 21,539 8,054 — — — — 28,094 57,687 Financial assets held for trading Debt instruments — 67,280 2,551 15,455 23,077 32,379 7,005 147,747 Equity instruments 2,562 — — — — — — 2,562 Trading derivatives 9,118 2,738 4,223 11,273 25,527 28,714 83,668 165,261 Other Financial Assets at Fair Value through Profit or Loss - Loans and advances to credit institutions – Reverse repurchase Agreements — 46,087 — — — — — 46,087 Loans and advances to customers –Reverse repurchase agreements — 5,618 — — — — — 5,618 Available-for-sale financial assets - Debt instruments — 18,693 59 35,567 58,067 21,987 30,574 164,947 Equity instruments — — — — — — 795 795 Loans and receivables - Loans and advances to credit institutions — 59,122 — — — — — 59,122 Loans and advances to customers 13,455 33,027 52,867 143,821 164,881 76,258 125,111 609,420 Debt instruments — — — — — 1,378 9,380 10,758 Hedging derivatives 2,375 — — — 7,707 5,017 17 15,116 49,049 240,619 59,700 206,116 279,259 165,733 284,644 1,285,120 Liabilities: Financial liabilities held for trading - Trading derivatives 9,320 2,333 3,059 13,769 26,343 25,818 90,640 171,282 Short positions — 68,443 — — — — — 68,443 Other Financial Liabilities at Fair Value through Profit or Loss - Deposits from the Central Bank — 22,417 — — — — — 22,417 Deposits from credit institutions — 5,942 — — — — — 5,942 Customer deposits — 81,009 781 — — — — 81,790 Marketable debt securities — 586 1,146 4,907 3,368 497 — 10,504 Financial liabilities at amortized cost - Deposits from credit institutions 14,828 35,815 2,127 2,368 11,094 7,475 2,808 76,515 Customer deposits 422,495 102,395 39,643 38,355 3,060 1,939 889 608,776 Marketable debt securities — 20,138 7,583 29,734 47 25,141 3,149 85,792 Subordinated liabilities — 650 — — — — 35,235 35,885 Other financial liabilities 42 5,543 6,306 904 34 634 — 13,463 Hedging derivatives — — — 145 2,070 1,630 7,246 11,091 446,685 345,271 60,645 90,182 46,016 63,134 139,967 1,191,900 Difference (assets less liabilities) (397,636) (104,652) (945) 115,934 233,243 102,599 144,677 93,220 b) Undiscounted contractual maturity periods The detail of the undiscounted contractual maturities of the existing financial liabilities at amortized cost as of December 31, 2016, is as follows: 12/31/2016 Less More On than 1 1 to 3 3 to 12 1 to 3 3 to 5 than 5 Demand Month Months Months Years Years Years Total Financial liabilities at amortized cost: Deposits from credit institutions 39,428 16,047 22,718 3,399 15,511 5,410 — 102,513 Customer deposits 418,228 101,736 29,421 16,773 3,436 2,422 3,430 575,446 Marketable debt securities — 19,788 6,167 19,844 9,219 8,358 29,925 93,301 Subordinated liabilities — 852 376 1,692 4,512 4,512 52,704 64,648 Other financial liabilities 5 16,431 2,070 937 77 — — 19,520 457,661 154,854 60,752 42,645 32,755 20,702 86,059 855,428 The detail of the undiscounted contractual maturities of the existing financial liabilities at amortized cost as of December 31, 2017, is as follows: 12/31/2017 Less More On than 1 1 to 3 3 to 12 1 to 3 3 to 5 than 5 Demand Month Months Months Years Years Years Total Financial liabilities at amortized cost: Deposits from credit institutions 14,828 36,126 2,518 3,820 13,721 8,739 5,052 84,804 Customer deposits 422,495 103,171 40,737 40,802 3,770 2,286 1,325 614,586 Marketable debt securities — 20,589 8,617 33,392 3,618 28,706 4,141 99,063 Subordinated liabilities — 847 392 1,768 4,713 4,713 48,697 61,130 Other financial liabilities 42 5,543 6,306 904 34 634 — 13,463 437,365 166,276 58,570 80,686 25,856 45,078 59,215 873,046 c) Foreign currency balances The breakdown of the main foreign currency balances in the consolidated balance sheet based on the nature of the related items is as follows: Equivalent Value in Millions of Pesos 12/31/2016 12/31/2017 Assets Liabilities Assets Liabilities Cash and balances with the Central Bank 2,110 — 2,987 — Debt instruments (Note 9) 86,253 — 122,786 — Equity instruments (Note 10) — — — — Loans and advances to credit institutions (Note 8) 60,590 — 35,898 — Loans and advances to customers 92,198 — 69,879 — Other assets 456 — 561 — Marketable debt securities (Note 21) — 22,942 — 27,508 Subordinated liabilities — 37,635 — 35,926 Derivatives — 13,201 — 48,926 Deposits from credit institutions (Note 19) — 38,113 — 4,527 Customer deposits (Note 20) — 116,706 — 105,929 Other financial liabilities — 5,730 — 2,328 Provisions — 1 — — Other liabilities — 1,049 — 1,221 d) Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are required) i. Financial assets measured at other than fair value The following table sets out the fair values of financial assets not measured at fair value and analyses them by the level in the fair value hierarchy into which each fair value measurement is categorized. Except as detailed in the following table, the Bank considers the carrying amounts of financial assets recognized in the consolidated financial statements approximate their fair values. As of December 31, 2016 Total fair Total Assets Level 1 Level 2 Level 3 values carrying amount Financial assets at amortized cost: Balances with the Central Bank (Note 7) 53,776 — — 53,776 53,776 Loans and advances to credit institutions (Note 8) 51,491 — 30,896 82,387 82,388 Loans and advances to customers (Note 12) 3,214 — 602,736 605,950 581,638 Debt instruments (unlisted) (Note 9) — — 11,472 11,472 11,472 As of December 31, 2017 Total fair Total Assets Level 1 Level 2 Level 3 values carrying amount Financial assets at amortized cost: Balances with the Central Bank (Note 7) 36,148 — — 36,148 36,148 Loans and advances to credit institutions (Note 8) 34,542 — 24,580 59,122 59,122 Loans and advances to customers (Note 12) 2,587 — 636,713 639,300 609,420 Debt instruments (unlisted) (Note 9) — — 10,758 10,758 10,758 ii. Financial liabilities measured at other than fair value The following table sets out the fair values of financial liabilities not measured at fair value and analyses them by the level in the fair value hierarchy into which each fair value measurement is categorized. Except as detailed in the following table, the Bank considers the carrying amounts of financial liabilities recognized in the consolidated financial statements approximate their fair values. As of December 31, 2016 Total fair Total Liabilities Level 1 Level 2 Level 3 values carrying amount Financial liabilities at amortized cost: Deposits from credit institutions (Note 19) 33,474 62,750 2,621 98,845 99,322 Customer deposits (Note 20) 14,456 559,031 — 573,487 572,005 Marketable debt securities (Note 21) 20,245 57,082 — 77,327 77,668 Subordinated liabilities (Note 22) 36,910 — — 36,910 37,576 Other financial liabilities (Note 23) 19,520 — — 19,520 19,520 As of December 31, 2017 Total fair Total Liabilities Level 1 Level 2 Level 3 values carrying amount Financial liabilities at amortized cost: Deposits from credit institutions (Note 19) 31,157 42,988 2,316 76,461 76,515 Customer deposits (Note 20) 13,867 594,592 — 608,459 608,776 Marketable debt securities (Note 21) 20,330 66,168 — 86,498 85,792 Subordinated liabilities (Note 22) 37,434 — — 37,434 35,885 Other financial liabilities (Note 23) 13,463 — — 13,463 13,463 The methodology and inputs used to calculate the fair value for each financial asset and liability class are as follows: - Balances with the Central Bank: Their fair value has been estimated to be equal to their amortized cost given because they are mainly composed by the compulsory deposit required by the Central Bank. - Loans and receivables at amortized cost at a variable or fixed interest rate and maturing in less than one year: Their fair value has been estimated to match their book value because there are no material differences. - Loans and receivables at amortized cost with maturity greater than one year: Fair value has been obtained using the present value model that discounts future cash flows at the current date using interest rates based on directly or indirectly observable market data to calculate the discount rate, but also using certain non-observable market input, such as the credit risk associated with the loan portfolio for the allowance of future flows and current loan portfolio conditions (net commissions, operating expenses, medium-term, etc.). - Unlisted debt instruments: Their fair value has been estimated to be equal to their amortized cost given that, because they are non-negotiable financial instruments issued by the Mexican Government, this value would be considered to execute a prepayment transaction at fair value. - Financial liabilities at amortized cost at a variable or fixed interest rate and maturing in less than one year: Their fair value has been estimated to match their book value because there are no material differences. - Financial liabilities at amortized cost with maturity greater than one year: Their fair value has been obtained by using the present value model that discounts future cash flows at the current date using interest rates based on directly or indirectly observable market data to calculate the discount rate. - Marketable debt securities and subordinated liabilities: Fair value has been obtained using quoted market price, if available, or the present value model that discounts future cash flows at the current date using interest rates based on directly or indirectly observable market data to calculate the discount rate. - Other financial liabilities: Their fair value has been estimated to be equal to their amortized cost since they are mainly composed by short-term balances. e) Significant restrictions See Note 48.b for significant restrictions on the ability to access or use the assets and settle the liabilities of the Bank as of December 31, 2017. f) Restriction on accumulated reserves distribution As of December 31, 2016 and 2017, the Bank did not have any restriction on accumulated reserves distribution, except for the legal reserve as mentioned in Note 29 (10,399 million pesos in legal reserve that include 8,086 million pesos in legal reserve of the Bank on an individual basis as of December 31, 2016 and 10,683 million pesos in legal reserve that include 8,086 million pesos in legal reserve of the Bank on an individual basis as of December 31, 2017) and the remeasurement of defined benefit obligation. In addition, the Bank is restricted from distributing dividends that will result in noncompliance with minimum capitalization requirements established by the CNBV (see Note 30). |
Operating segments
Operating segments | 12 Months Ended |
Dec. 31, 2017 | |
Operating segments | |
Operating segments | 45. Operating segments The Bank has three operating segments, as described below: - Retail Banking: this segment encompasses the entire commercial banking business. The retail banking activities include products and services for SMEs such as personal loans, deposit-taking, employee payroll accounts for corporate customers, credit and debit cards and overdraft facilities. - Global Corporate Banking: this segment reflects the Global Corporate Banking business in Mexico, including all the managed treasury departments and the equities business. The global corporate banking activities include products and services for our corporate customers, such as investment banking and project finance. - Corporate Activities: this segment includes the centralized management business relating to financial and industrial investments, the financial management of the structural currency position and its structural interest rate risk position and the management of liquidity and equity through issues and securitizations and assets and liabilities management. The Bank does not have any customers that individually accounted for 10% or more of the Bank’s interest and similar income for 2015, 2016 and 2017. The 2015 consolidated income statement and other significant data are as follows: Global Retail Corporate Corporate 2015 Banking Banking Activities Total Net interest income 37,514 4,060 1,414 42,988 Dividend income — 24 80 104 Net fee and commission income 11,839 1,786 7 13,632 Gains/(losses) on financial assets and liabilities and exchange differences (net) 866 1,060 584 2,510 Other operating income/(expenses) (2,101) (466) 29 (2,538) Total income 48,118 6,464 2,114 56,696 Administrative expenses (18,647) (1,956) (177) (20,780) Depreciation and amortization (1,759) (94) (10) (1,863) Impairment losses on financial assets (net) (15,081) (960) — (16,041) Impairment losses on other assets (net) — — — — Provisions (net) 265 — (7) 258 Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) — — 7 7 Gains/(losses) on disposal of non-current assets not classified as discontinued operations (net) — — 91 91 Operating profit before tax 12,896 3,454 2,018 18,368 Income tax (4,304) Profit for the year 14,064 Profit attributable to the Parent 14,051 Profit attributable to non-controlling interest 13 Total assets 473,399 524,098 178,337 1,175,834 Total liabilities 404,431 414,004 249,641 1,068,076 The 2016 consolidated income statement and other significant data are as follows: Global Retail Corporate Corporate 2016 Banking Banking Activities Total Net interest income 42,277 4,899 1,954 49,130 Dividend income — — 94 94 Net fee and commission income 12,211 1,749 (20) 13,940 Gains/(losses) on financial assets and liabilities and exchange differences (net) 721 2,682 359 3,762 Other operating income/(expenses) (2,104) (649) (122) (2,875) Total income 53,105 8,681 2,265 64,051 Administrative expenses (19,955) (2,440) (260) (22,655) Depreciation and amortization (1,890) (158) (10) (2,058) Impairment losses on financial assets (net) (15,955) (706) — (16,661) Provisions (net) (75) (29) (777) (881) Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) — — 20 20 Gains/(losses) on disposal of non-current assets not classified as discontinued operations (net) — — 71 71 Operating profit before tax 15,230 5,348 1,309 21,887 Income tax (5,351) Profit for the year 16,536 Profit attributable to the Parent 16,536 Profit attributable to non-controlling interest — Total assets 519,589 588,596 242,752 1,350,937 Total liabilities 475,625 564,131 205,954 1,245,710 The 2017 consolidated income statement and other significant data are as follows: Global Retail Corporate Corporate 2017 Banking Banking Activities Total Net interest income 47,969 5,295 2,580 55,844 Dividend income — 5 145 150 Net fee and commission income 13,047 1,758 8 14,813 Gains/(losses) on financial assets and liabilities and exchange differences (net) 786 2,532 146 3,464 Other operating income/(expenses) (2,136) (505) (304) (2,945) Total income 59,666 9,085 2,575 71,326 Administrative expenses (22,377) (2,759) (301) (25,437) Depreciation and amortization (2,317) (204) (12) (2,533) Impairment losses on financial assets (net) (17,763) (1,057) — (18,820) Provisions (net) (98) 20 (359) (437) Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) — — 6 6 Gains/(losses) on disposal of non-current assets not classified as discontinued operations (net) — — 69 69 Operating profit before tax 17,111 5,085 1,978 24,174 Income tax (5,496) Profit for the year 18,678 Profit attributable to the Parent 18,678 Profit attributable to non-controlling interest Total assets 551,250 531,295 246,646 1,329,191 Total liabilities 521,787 521,284 170,710 1,213,781 |
Related-party transactions
Related-party transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related-party transactions | |
Related party transactions | 46. Related-party transactions Transactions with related parties The parties related to the Bank are deemed to include, in addition to its subsidiaries and jointly controlled entities, the Bank’s key management personnel (the member of its Board of Directors, executive officers and other key management personnel, together with their close family members) and the entities over which the key management personnel may exercise significant influence or control. The Bank also considers the companies that are part of the Santander Bank worldwide as related parties, given that all of them have a common parent, i.e., Banco Santander (Spain). Transactions between the Bank and its related parties are specified below. To facilitate comprehension, we have divided the information into the following categories: Ultimate Parent Company This category includes balances with Banco Santander (Spain). Santander Group Companies This category includes all the companies that are controlled by Banco Santander (Spain) around the world, and hence, it also includes the companies over which the Bank exercises any degree of control (Affiliates and special-purpose entities). The information related to directors, executive officers and other key management personnel is detailed in Note 6. Related-party transactions were made on terms equivalent to those prevailing in arm’s-length transactions. 12/31/2016 12/31/2017 Ultimate Santander Ultimate Santander Parent Group Parent Group Company Companies Company Companies ASSETS: Financial assets held for trading - Trading derivatives - Of which - Banco Santander, S.A. (Spain) 90,418 — 73,593 — Abbey National Treasury Services plc. — 2,352 — 12 Other — 2 — 2 Other financial assets at fair value through profit or loss - Loans and advances to credit to customers - Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander México — 1,283 — 2,090 Other — 1 — — Available for sale financial assets - Of which - Grupo Financiero Santander México, S.A.B. de C.V. — 233 — 248 Loans and receivables - Loans and advances to credit institutions - Of which - Banco Santander, S.A. (Spain) 281 — 997 — Banco Santander Rio, S.A. — 223 — 194 Loans and advances to customers - Of which - Santander Capital Structuring, S.A. de C.V. — — — 1,176 Produban Servicios Informáticos Generales, S.L. — 1,154 — 1,674 Key management personnel — 1,471 — 3,666 Other intangible assets - Of which - — — Isban México, S.A. de C.V. — 2,364 — 2,811 Produban Servicios Informáticos Generales, S.L. — 478 — 533 Ingeniería de Software Bancario, S.L. — 412 — 443 Santander Back-Offices Globales Mayoristas, S.A. — 74 — 74 Isban Brasil, S.A. — 11 — 11 Other assets - Of which - Santander Issuances, S.A. — 251 — — Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander México — — — 21 Abbey National Treasury Services plc — — — 76 Zurich Santander Seguros México, S.A. — 976 — 1,053 SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversión — 171 — 156 Other — 25 — 12 12/31/2016 12/31/2017 Ultimate Santander Ultimate Santander Parent Group Parent Group Company Companies Company Companies LIABILITIES AND EQUITY: Financial liabilities held for trading - Trading derivatives - Of which - Banco Santander, S.A. (Spain) 58,537 — 43,827 — Banco Santander International — 64 — 25 Abbey National Treasury Services plc. — 1,659 — 75 Other — 2 — — Short positions - Of which - Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander México — 2,646 — 5,002 Other financial liabilities at fair value through profit or loss - Customer deposits - Repurchase agreements Of which - Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander México — 22,162 — 19,333 Banco S3 México, S.A., Institución de Banca Múltiple — — — 1,651 Grupo Financiero Santander México, S.A.B. de C.V. — — — 71 Other — — — 5 Financial liabilities at amortized cost - Deposits from credit institutions - Of which - Banco Santander, S.A. (Spain) 33,209 — 32,559 — Other — 18 — 75 Subordinated liabilities - Of which - Banco Santander, S.A. (Spain) 22,661 — 21,738 — Grupo Financiero Santander México, S.A.B. de C.V. — 10,298 — 9,831 Customer deposits - Of which- Abbey National Treasury Services plc. — 683 — — Isban México, S.A. de C.V. — 653 — 515 SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversión — 18 — — Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander México — 10 — — Operadora de Carteras Gamma, S.A.P.I. de C.V. — — — 145 Grupo Financiero Santander México, S.A.B. de C.V. — 193 — 176 Santander Global Facilities, S.A. de C.V. — 426 — 620 Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — 153 — 179 Produban Servicios Informáticos Generales, S.L. — 51 — 406 Grupo Alcanza, S.A. de C.V. — 138 — — Santander Capital Structuring, S.A. de C.V. — — — 186 Other (*) — 1,072 — 234 Marketable debt securities - Of which - Banco Santander, S.A. (Spain) 1,016 — 1,182 — Other — 28 — 15 Other financial liabilities - Of which - Banco Santander, S.A. (Spain) 3 — 1,366 — Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander México — 360 — 59 Santander Investment Securities Inc. — 48 — — Santander Global Facilities, S.A. de C.V. — 45 — — Other — 43 — 66 Other liabilities - Of which - Banco Santander, S.A. (Spain) 1,733 — — — Produban Servicios Informáticos Generales, S.L. — 352 — 409 Isban México, S.A. de C.V. — 188 — 184 Santander Back-offices Globales Mayorista, S.A. — 10 — 18 Ingenieria de Software Bancario, S.L. — 19 — 75 Other — 18 — 4 (*) 2015 2016 2017 Ultimate Santander Ultimate Santander Ultimate Santander Parent Group Parent Group Parent Group Company Companies Company Companies Company Companies INCOME STATEMENT: Interest income and similar income - Of which - Banco Santander, S.A. (Spain) 5 — 5 — — — Produban Servicios Informáticos Generales, S.L. — 45 — 52 — 86 Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander México — 37 — 57 — 95 Santander Capital Structuring, S.A. de C.V. — 22 — — — — Other — 1 — 2 — 93 Interest expenses and similar charges - Of which - Banco Santander, S.A. (Spain) 1,026 — 1,275 — 1,440 — Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander México — 637 — 1,316 — 1,449 Grupo Financiero Santander México, S.A.B. de C.V. — 9 — 9 — 16 Banco S3 México, S.A., Institución de Banca Múltiple — — — — — 12 Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — — — 9 — 7 Santander Global Facilities, S.A. de C.V. — — — 11 — 28 Isban México, S.A. de C.V. — 12 — 24 — 28 Other — 10 — 9 — 35 Fee and commission income - Of which - Banco Santander, S.A. (Spain) 171 — 6 — 7 — Santander Investment Securities Inc. — 7 — — — 10 Zurich Santander Seguros México, S.A. — 3,929 — 4,165 — 4,219 SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversión — 1,363 — 1,647 — 1,585 Other — 4 — 16 — 9 Fee and commission expense- Of which - Banco Santander, S.A. (Spain) 1 — 19 — 15 — Santander Global Facilities, S.A. de C.V. — 131 — — — 15 Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — 92 — — — — Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander — — — 41 — — SAM Asset Management , S.A. de C.V., Sociedad Operadora de Fondos de Inversión — — — 52 — 66 Santander Investment Securities Inc. — — — 62 — — Other — — — 11 — — Gains/(losses) on financial assets and liabilities (net) - Of which - Banco Santander, S.A. (Spain) 813 — 24,211 — (4,346) — Abbey National Treasury Services plc. — 622 — (280) — (739) Other — (194) — (44) — 19 Other operating income Of which - Santander Global Facilities, S.A. de C.V. — 62 — 52 — 46 Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander México — 26 — — — 28 Zurich Santander Seguros México, S.A. — 2 — — — — SAM Asset Management , S.A. de C.V., Sociedad Operadora de Fondos de Inversión — 7 — — — — Other — 3 — 39 — 10 Administrative expenses - Of which - Banco Santander, S.A. (Spain) — — — — 66 — Produban Servicios Informáticos Generales, S.L. — 1,377 — 1,663 — 1,601 Isban México, S.A. de C.V. — 92 — 178 — 188 Santander Global Facilities, S.A. de C.V. — 259 — 206 — 366 Ingeniería de Software Bancario, S.L. — 110 — 151 — 165 Gesban México Servicios Administrativos Globales, S.A. de C.V. — — — 52 — 53 Santander Back-offices Globales Mayorista, S.A. — — — 26 — 61 Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander México — 58 — 54 — — Geoban, S.A. — 76 — 78 — 77 Aquanima México, S. de R.L. de C.V. — 47 — 43 — 45 Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — — — 110 — 119 Other — 131 — 49 — 34 As mentioned in Note 3, on November 22, 2017 the Bank acquired from the Brokerage House 14,176,749 shares of Bolsa Mexicana de Valores, S.A.B. de C.V. for an amount of 449 million pesos. |
Risk management
Risk management | 12 Months Ended |
Dec. 31, 2017 | |
Risk management | |
Risk management | 47. Risk management a) Cornerstones of the risk function The Bank has considered that the risk function should be based on the following cornerstones, which are in line with the Bank’s strategy and its business model and in addition take into account the regulatory and supervisory requirements, as well as the best market practices: · An advanced and comprehensive risk management policy, with a forward-looking approach that allows the Bank to maintain a medium-low risk profile, through a risk appetite defined by the Board of Directors and the identification and assessment of all risks. · Lines of defense that enable risk to be managed at source, controlled and monitored, in addition to an independent assessment. · Information and technological management processes that allow all risks to be identified, developed, managed and reported at appropriate levels · All risks are managed using advanced models and tools. · A risk culture integrated throughout the organisation, composed of a series of attitudes, values, skills and action guidelines to deal with all risks. 1. Risk map The risk map covers the main risk categories in which the Bank has its most significant current and/or potential exposures, thus facilitating the identification thereof. The risk map includes the following: · Credit risk: risk of financial loss arising from the default or credit quality deterioration of a customer or other third party, to which the Bank has either directly provided credit or for which it has assumed a contractual obligation. · Market risk: risk incurred as a result of changes in market factors that affect the value of positions in the trading book . · Liquidity risk: risk that the Bank does not have the liquid financial resources to meet its obligations when they fall due, or can only obtain them at high cost . · Structural risk: risk arising from the management of different balance sheet items, not only in the banking book but also in relation to pension activities. · Capital risks: risk of the Bank not having an adequate amount or quality of capital to meet its internal business objectives, regulatory requirements or market expectations. · Operational risk: defined as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. This definition includes legal risk. · Conduct risk: risk arising from practices, processes or behaviors which are not adequate or compliant with internal regulation, legal or supervisory requirements. · Reputational risk: risk of current or potential negative economic impact to the Bank due to damage to the perception of the Bank on the part of employees, customers, shareholders/investors and the wider community. · Model risk: risk of loss arising from inaccurate predictions, causing the Bank to make suboptimal decisions, or from a model being used inappropriately. · Strategic risk: risk of loss or damage arising from strategic decisions or their poor implementation, that impact the long term interests of our key stakeholders, or from an inability to adapt to external developments. 2. Risk governance For the proper development of the risk function, the Bank has a strong governance policy in place to ensure that the risk decisions taken are appropriate and efficient and that they are effectively controlled within the established risk appetite framework . The Chief Risk Officer (CRO) oversees this function within the bank, advises and challenges the executive line and also reports independently to the Board of Directors. 2.1 Lines of defense The Bank’s risk management and control model is based on three lines of defense. The business functions and all support funcionts that generate risk exposure comprise the first line of defense. The role of these functions is to establish a management structure for the risks that are generated as part of their activity ensuring that these remain within the approved appetite risk and the established limits. The second line of defense is composed by the risk control function, and the compliance and conduct function. The role of these functions is to provide independent oversight and challenge to the risk management activities performed by the first line of defense. These functions are responsible for ensuring that the risks are managed in accordance with the risk appetite defined by the Board of Directors and to foster a strong risk culture across the Bank. They must also provide guidance, advice and expert opinion in all key risk-related matters. Internal audit as the third line of defense. As the last layer of control, regularly assesses policies, methods and procedures to ensure they are adequate and are being implemented effectively in the management and control of all risks. The risk control, compliance and conduct and internal audit functions are sufficiently separated and independent from each other and regarding to other functions they control or supervise for the performance of their duties, and they have access to the Board of Directors and/or its committees, through their maximum responsibles. 2.2 Risk committee structure Responsibility for the control and management of risk and, in particular, for the setting of the Bank’s risk appetite, rests ultimately in the Board of Directors, which has delegated its powers to committees classed as independent control bodies or decision-making bodies. The Board of Directors is supported by the comprehensive risk management committee. In addition, the Bank’s executive risk committee pays particular attention to the management of all the Bank’s risks. The following bodies form the highest level of risk governance: Independent control bodies Comprehensive risk management committee This collegiate body is responsible for the effective risk control, ensuring that all risks are managed in accordance with the risk appetite level approved by the Board of Directors, while taking into account at all times an overall view of all the risks included in the general risk framework. This means the identification and monitoring of current and emerging risks and their impact on the Bank’s risk profile. This committee is chaired by the CRO and is composed of executives directors of the Bank. The risk function, which chairs the committee, as well as the functions of compliance and conduct, financial accounting and control, and management control are represented, among others. Decision-making bodies Executive risk committee This collegiate body is responsible for risk management pursuant to the powers delegated by the Board of Directors and, in its sphere of action and decision-making, oversees all risks. It participates in decision-making on the assumption of risks at the highest level, guarantees that these are within the limits set in the Bank’s risk appetite and reports on its activities to the Board of Directors or its committees when so required. This committee is chaired by an executive deputy chairman of the Board of Directors and comprises the CEO, executive officers and other executives of the Bank. The risk function, finance and compliance and conduct, among others, are represented. The CRO has a right to veto the decisions taken by this committe. 3. Management processes and tools 3.1 Risk appetite and limits structure Risk appetite is defined as the amount and type of risks considered reasonable to assume for implementing its business strategy, so that the Bank can mantain its ordinary activity in the eveny of unexpected circumstances. For the latter, severe scenarios are taken into account that could have a negative impact on the levels of capital, liquidity, profitability and/or the share price. The Board of Directors is the body responsible for annually setting and updating the risk appetite, for monitoring the Bank’s risk profile and ensuring consistency between both of them. The risk appetite is determined both for the Bank as a whole and for each of the main business units using a methodology adapted to the circumstances of each business unit. The Board of Directors is responsible for approving the respective risk appetite proposals. Corporate risk appetite principles The following principles govern the Bank’s risk appetite: · Responsibility of the Board of Directors and of executive officers. The Board of Directors is the maximum body responsible for setting the risk appetite and its regulation support, as well as supervising its compliance. · Enterprise Wide Risk, backtesting and challenging of the risk profile. The risk appetite must consider all significant risks to which the Bank is exposed, facilitating an aggregate vision of the risk profile through the use of quantitative metrics and qualitative indicators. · Forward-looking view. The risk appetite must consider the desirable risk profile for the current moment, as well as in the medium term, taking into account both the most plausible circumstances and the stress scenarios. · Alignment with strategic and business plans and management integration (3 year plan, annual budget, internal capital, liquidity adequacy assessment processes). The risk appetite is a benchmark in strategic and business planning and is integrated. · Coherence in the risk appetite of the various business units and common risk language throughout the Bank. · Regular review, continuous backtesting and best practices and regulatory requirements adaptation. Limits, monitoring and control structure The risk appetite is formulated every year and includes a series of metrics and limits on these metric (statements) which express in quantitative and qualitative terms the maximum risk exposure that each business unit of the Bank or the Bank as a whole is willing to assume . Fulfilling the risk appetite limits is continuously monitored. The specialized control functions report at least every quarter to the Board of Directors and its executive risk committee on the risk profile adequacy with the authorized risk appetite . Linkage of the risk appetite limits with the limits used to manage the business units and portfolios is a key element for making the risk appetite an effective risk management tool Pillars of the risk appetite The risk appetite is expressed via limits on quantitative metrics and qualitative indicators that measure the exposure or risk profile by type of risk, portfolio, segment and business line, in both current and stressed conditions. These metrics and risk appetite limits are articulated in five large areas that define the positioning that the Bank wants to adopt or maintain in the development of its business model. · The volatility in the consolidated income statement that the Bank is willing to accept. · The solvency position the Bank wants to maintain. · The minimum liquidity position the Bank wants to have. · The maximum levels of concentration that the Bank considers reasonable to admit. · Non-financial and transversal risks. 3.2 Risk identification and assessment (RIA) The Bank carries out the identification and assessment of the different risks it is exposed to involving the different lines of defense to strengthen its advanced and proactive risk management practice, establishing management standards that not only meet regulatory requirements but also reflect best practices in the market, and being also a risk culture transmission mechanism . The function includes all the risk identification and assessment processes, as well as its integration within the Bank’s risk profile, its business units and activities, thereby keeping the risk map up to date. In addition to identifying and assessing the Bank’s risk profile by risk type and business unit, RIA analyses the evolution of risks and identifies areas for improvement in each of the blocks that compose it: · Risk performance, enabling understanding of residual risk by risk type through a set of metrics and indicators calibrated using international standards. · Assessment of the control environment, measuring the degree of implementation of the target operating model, pursuant to advanced standards. · Forward-looking analysis, based on stress metrics and identification and/or assessment of the main threats to the strategic plan (Top Risks), enabling specific action plans to be put in place to mitigate potential impacts and monitoring these plans. In 2017, the function evolved along three main lines, ensuring the simplification and reinforcement of interaction among the communities of control and the completeness of the risk profile: · Update of the control environment standards based on industry performance, internal management models and regulatory requirements: i. Homogeneous conceptual architecture developed to enable consistent analysis and assessments, and to simplify dataexecution/exploitation, as well as the reporting to Management. ii. Environment control assessments simplification. iii. Greater involvement of the different stakeholders of the communities of control, particularly risk functions, corporate risk control functions and internal audit. iv. Prioritization of areas for improvement identified according to their materiality. · New technology platform to facilitate data use and process implementation: v. Manual processes automatization. vi. Real time access to information in the different business units and for all stakeholders. vii. Internal technology solution with improved data safety and enhaced user experience. viii. Information reporting module to design and produce ad hoc reports · Wider scope by risk type. 3.3 Scenario analysis The Bank conducts advanced risk management by analyzing the impact that different scenarios could trigger in the environment in which the Bank operates. These scenarios are expressed both in terms of macroeconomic variables, as well as other variables that affect management. Scenario analysis is a very robust and useful tool for Bank’s Management. It enables the assessment of Bank’s resistance to stressed environments or scenarios and puts into force a set of measures that reduce its risk profile to these scenarios. The objective is to maximize the stability of the consolidated income statement and capital and liquidity levels. The robustness and consistency of the scenario analysis exercises are based on the following pillars: · Developing and integrating mathematical models that estimate the future evolution of metrics (e.g. credit losses) based on both historic information (internal to the Bank and external from the market), as well as simulation models. · Inclusion of expert judgment and know-how of portfolios, questioning and backtesting the models results. · The backtesting of the models results against the observed data, ensuring that the results are adequate. · The governance of the whole process, covering the models, scenarios, assumptions and rationale of the results, and their impact on management. From January 1, 2018, the processes, models and scenario analysis methodology will be included in the new regulatory requirements (IFRS 9). The main uses of scenario analysis are as follows: · Regulatory uses: in which stress tests of scenarios are performed under guidelines set by the various regulators that supervise the Bank. · Internal capital (ICAAP) or internal liquidity adequacy assessment processes (ILAAP) in which, although the regulator can impose certain requirements, the Bank develops its own methodology to assess its capital and liquidity levels vis-à-vis various stress scenarios. These tools enable capital and liquidity management to be planned. · Risk appetite: this contains stressed metrics on which maximum loss levels (or minimum liquidity levels) are established that the Bank does not want to exceed. · Recurrent risk management in different processes/tests: - Budgetary and strategic planning process, in the generation of commercial policies for risk approval, in the risk analysis made by Management and in specific analyses of activities and portfolios. - Identification of potential risks (Top risks). After a systematic process to identify and assess all the risks to which the Bank is exposed, the Top risks are selected and the Bank’s risk profile is established. Each Top risk has an associated macroeconomic or particular scenario. To assess the impact of these risks on the Bank, internal scenario analysis and stress testing models and methodologies are employed. - Recovery plan performed annually to establish the available measures the Bank will have, in order to survive an extremely severe financial crisis. The plan sets out a series of financial and macroeconomic stress scenarios, with differing degrees of severity, that include particular and/or systemic events that are relevant for the Bank. b) Credit risk 1. Introduction to the treatment of credit risk Credit risk is the risk of financial loss arising from the default or credit quality deterioration of a customer or other third party, to which the Bank has either directly provided credit or for which it has assumed a contractual obligation. The Bank’s risks function is organized on the basis of three types of customers: · The individuals segment includes all physical persons, except for those with a business activity. This segment is, in turn, divided into sub-segments by income levels, which enables risk management adjusted to the type of customer. · The SMEs, commercial banking and institutions segment includes companies and physical persons with business activity. It also includes public sector activities in general and private sector non-profitable entities. · The Global Corporate Banking – consists of corporate customers, financial institutions and sovereigns, comprising a closed list that is revised annually. This list is determined on the basis of a full analysis of the company (business type, countries of operation, product types, volume of revenues it represents for the Bank, etc.). The Bank has a mainly retail profile, with more than 79% of its total risk exposure being generated by its commercial banking business. 2. Credit risk map and credit risk parameters The profile of the credit risk assumed by the Bank is characterized by retail banking operations. Certain information regarding maximum credit risk exposure is included in Note 12.f. 2.1 Credit risk map – 2016 and 2017 The following table shows the Bank’s maximum credit risk exposure by type of product of Loans and advances to customers as of December 31, 2016 and 2017, without recognizing the availability of collateral or other credit enhancements to guarantee compliance: Change December 31, 2017 vs. December 31, 2016 Millions of Credit Risk Exposure to Customers 12/31/2016 12/31/2017 Pesos % Payroll loans 27,315 29,844 2,529 9.26 % Personal loans 21,990 23,291 1,301 5.92 % Automotive 37 247 210 567.57 % Credit cards 51,537 54,372 2,835 5.50 % Mortgages 132,414 134,196 1,782 1.35 % SMEs 67,895 72,279 4,384 6.46 % Middle-market corporations 148,385 166,783 18,398 12.40 % Institutions 33,101 34,766 1,665 5.03 % Global corporate clients 121,356 116,189 (5,167) (4.26) % Guarantees and documentary credits 62,065 78,812 16,747 26.98 % 666,095 710,779 44,684 6.71 % For financial assets recognized in the consolidated balance sheet, credit risk exposure is equal to the carrying amount excluding impairment losses. The maximum exposure to credit risk on financial guarantees is the maximum for which the Bank would be liable if these guarantees were called in. 3. Credit risk from other standpoints 3.1 Credit risk from financial market operations This section covers credit risk generated in treasury activities with customers, mainly with credit institutions. Operations are developed through money market financial products with different financial institutions and through counter-party risk products which serve the Bank’s clients. The counterparty credit risk is the risk that the client in an operation could default before the definitive settlement of the cash flows of the operation. It includes the following types of operations: derivative instruments, operations with repurchase commitment, operations with deferred settlement and financing of guarantees. There are two methodologies for measuring this exposure: i. mark to market (MtM) methodology (replacement value of derivatives) plus potential future exposure (add on) and ii. the calculation of exposure using Monte Carlo simulation for products. The capital at risk or unexpected loss is also calculated, i.e. the loss which, once the expected loss has been subtracted, constitutes the economic capital, net of guarantees and recovery. After markets close, exposures are re-calculated by adjusting all operations to their new time frame, adjusting the potential future exposure and applying mitigation measures (netting, collateral, etc), so that the exposures can be controlled directly against the limits approved by Management. Risk control is performed through an integrated system and in real time, enabling the exposure limit available with any counterparty, product and maturity to be known at each moment. 3.2 Concentration risk The concentration risk control is a vital part of management. The Bank continuously tracks the degree of concentration of its credit risk portfolios using various criteria: geographical areas, economic sectors, products and groups of customers. The Board of Directors, via the risk appetite, determines the maximum levels of concentration. In line with the risk appetite, the executive risk committee establishes the risk policies and reviews the appropriate exposure levels for the adequate management of the degree of concentration of credit risk portfolios. The concentration risk is subject to CNBV regulations on “Large Exposures” as follows: a) As of December 31, 2016 and 2017, there is no financing granted to debtors or groups of individuals or entities representing a joint risk in an amount that exceeds 10% of the Bank’s Basic Capital (of the month immediately preceding the reporting date). b) As of December 31, 2016, assets and liabilities transactions with the three main debtors or groups of individuals representing a joint risk for the aggregate amount of 73,072 million pesos and represent 83.30% of the Bank’s Basic Capital. c) As of December 31, 2017, assets and liabilities transactions with the three main debtors or groups of individuals representing a joint risk for the aggregate amount of 48,729 million pesos and represent 54.6% of the Bank’s Basic Capital. 3.3 Sovereign risk and exposure to other public sector entities Sovereign risk exposure arises mainly from the Bank’s obligations to maintain certain compulsory deposits in the Central Bank, the establishment of deposits with liquidity excess and fixed-income portfolios held as part of the structural interest rate risk management strategy for the consolidated balance sheet and treasury trading books. The vast majorities of such exposures are in pesos and are funded through repurchase agreements or customer deposits denominated in pesos. 4. Credit risk cycle The risk cycle has three phases: pre-sale, sale and post-sale: · Pre-sale: this phase includes the risk planning and target setting processes, determination of the Bank’s risk appetite, approval of new products, risk analysis and credit rating process and limit setting. · Sale: this is the decision-making phase for both pre-classified and specific transactions. · Post-sale: this phase comprises the risk monitoring, measurement and control processes and the recovery process. Each of these phases is associated with specific decision models established for decision-making in line with the business objectives and credit policies defined by the Bank. The process is constantly revised, incorporating the results and conclusions of the after-sale phase to the study of risk and presale planning. 4.1 Planning Identification The identification of credit risk is a key component for the active management and an effective control of portfolios. The identification and classification of external and internal risk in each business allows corrective and mitigating measures to be adopted. Strategic Commercial Plans Strategic commercial plans (SCPs) are a basic management and control tool for the Bank’s credit portfolios. The plans are prepared jointly by the commercial and risk area, and define the commercial strategies, risk policies and measures/infrastructures required to meet the annual budget targets. These three factors are considered as a whole, ensuring a holistic view of the portfolio to be planned and allowing a map of all the Bank’s credit portfolios to be drawn up. Planning allows business targets to be set and specific action plans to be established, within the risk appetite defined by the Bank, and these targets to be met by assigning the necessary means (models, resources, systems). The comprehensive management of the SCPs means that an up-to-date view of the credit quality of the portfolios is available at all times, credit risk can be measured, internal controls carried out, in addition to regular monitoring of the planned strategies, to anticipate deviations and identify significant changes in risk and their potential impact, along with the application of corrective measures. SCPs are approved and validated by the executive risks committee. The regular monitoring, established by the governance in place, is also performed by the executive risks committee. Scenario analysis Credit risk scenario analysis enables Management to better understand the portfolio's evolution in the face of market conditions and changes in the environment. It is a key tool for assessing the sufficiency of the allowance for impairment losses made and the capital to stress scenarios. Scenario analysis is applied to all of the Bank's significant portfolios, usually over a three year horizon. The process involves the following main stages: · Definition of benchmark scenarios, both central or most likely scenarios (baseline), as well as economic scenarios that although less likely to occur can be more adverse (stress scenarios). · Determination of the value of the risk parameters and metrics (PD, LGD, etc.) for the scenarios defined. · Estimation of the expected loss associated with each of the scenarios considered and of the other salient credit risk metrics derived from the parameters obtained (non-performing loans, allowance for impairment losses, ratios, etc.). · Adaptation of the new projection methodology to the new regulatory requirements (IFRS 9), with an impact on the estimation of the expected loss associated with each of the scenarios put forward, as well as with other important credit risk metrics deriving from the parameters obtained (non-performing loans, allowance for impairment losses, etc.). · Analysis and rationale for the credit risk profile evolution at portfolio, segment, business unit and Bank level in in the face of different scenarios and compared to previous years. · Integration of management indicators to supplement the analysis of the impact caused by macroeconomic factors on risk metrics. · A series of controls and comparisons are run to ensure that the controls and backtesting are adequate, thus completing the process. The entire process takes place within a governance framework, and is thus adapted to the growing importance of this framework and to best market practices, assisting the Bank’s Management in gathering knowledge and in their decision making. 4.2 Risk analysis and credit rating process Generally speaking, risk study consists of analyzing a customer’s capacity to meet their contractual commitments with the Bank and other creditors. This entails analyzing the customer’s credit quality on a short and medium term horizon, risk operations, solvency and expected return on the basis of the risk assumed. With this objective, the Bank uses customer credit decision models in all segments in which it operates: Global Corporate Banking (sovereign, financial institutions and corporate companies), commercial banking, institutions, SMEs and individuals. The decision models applied are based on credit rating drivers. These models and drivers are monitored and controlled to calibrate and precisely adjust the decisions and ratings they assign. Depending on the segment, drivers may be : · Rating: resulting from the application of mathematical algorithms incorporating a quantitative model based on balance sheet ratios or macroeconomic variables, and a qualitative module supplemented by the analyst’s expert judgment. Used for Global Corporate Banking, commercial banking and institutions segments treated on an individual basis. · Scoring: an automatic assessment system for credit applications. It automatically assigns an individual assessment for the customer for subsequent decision making. There are two types: approval or performance and it is used in the SMEs segment treated on a standard basis. The resulting ratings are regularly reviewed, incorporating the latest available financial information and experience in the development of banking relations. The reviews are increased in the case of customers who reach certain levels previously determined in the automatic warning systems and who are classified as special watch. 4.3 Establishment of limits, pre-classifications and pre-approvals This process establishes the risk that each customer is able to assume. These limits are set jointly by the business units and the risk area and have to be approved by the executive risk committee and reflect the expected risk-return by the business unit . Different models are used according to the segment: · A pre-classification model based on a system for measuring and monitoring economic capital is used for large corporate groups. The result of pre-classification is the maximum risk level that a customer or group can assume, in terms of amount or maturity. · For commercial banking and institutions that meet certain requirements (high knowledge, rating, etc.) a more simplified preclassification model is used. · For SMEs and individuals, in specific situations where a series of requirements are met, pre-approved operations are established for customers, or pre-approved operations for potential customers (campaigns and policies to encourage the use of limits). 4.4 Transaction decision-making The sale phase is determined by the decision-making process which analyzes and resolves operations. Approval by the risk area is a prior requirement before contracting any risk operation. All decisions regarding risk must consider the risk appetite, limits and management policies defined in the planning stage, in addition to other factors relevant to the risk and profitability equilibrium. According to the segment, decision-making follows different procedures: · For Global Corporate Banking, and according to the prior limit-setting phase, two types of decision will be available: (1) automatic, provided there is capacity for the proposed transaction (in terms of amount, product, maturity and other conditions) within the limits set under the pre-classification framework, (2) approval from a risk analyst or committee (although the operation meets the amount, maturity and other conditions set in the pre-approved limit). · For commercial banking and institutions, approval is required from a risk analyst or committee (although the operation meets the amount, maturity and other conditions set in the pre-approved limit). · In terms of individual customers and SMEs with low turnover, large volumes of credit operations can be managed more easily with the use of automatic decision models for classifying the customer/transaction binomial. Credit risk mitigation techniques The Bank applies various credit risk mitigation techniques on the basis, among other factors, of the type of customer and product. Some are inherent to specific operations (for example, real estate guarantees) while others apply to a series of operations (for example, netting and collateral). The different mitigation techniques can be grouped into the following categories: Personal guarantees This type of guarantees corresponds to those that place a third party in a position of having to respond to obligations acquired by another to the Bank. It includes, for example, sureties, guarantees, stand-by letters of credit, etc. The only ones that can be recognized, for the purposes of calculating capital, are those provided by third parties that meet the minimum requirements set by the supervisor. Collateral These are assets that are subject to compliance with the guaranteed obligation. They can be provided by the customer or by a third party. The real goods or rights used for the guarantee may be financial (cash, securities de |
Consolidated Subsidiaries
Consolidated Subsidiaries | 12 Months Ended |
Dec. 31, 2017 | |
Consolidated Subsidiaries | |
Consolidated Subsidiaries | 48. Consolidated Subsidiaries a) Composition of the Bank The subsidiaries of the Bank, all of which have been included in the consolidated financial statements at 31 December 2017, are as follows: Proportion of Proportion of ownership interest voting power Name of subsidiary Principal activity held by the Bank held by the Bank Santander Consumo, S.A. de C.V., SOFOM, E.R. Credit card loans 99.99 % 100 % Santander Vivienda, S.A. de C.V., SOFOM, E.R. Mortgage loans 99.99 % 100 % Santander Inclusión Financiera, S.A. de C.V., SOFOM, E.R. Retail loans 99.99 % 100 % Centro de Capacitación Santander, A.C. Not-for-profit (Educational institute) 99.99 % 100 % Banco Santander, S.A. Fideicomiso 100740 Settlement trust 99.99 % 100 % Fideicomiso GFSSLPT, Banco Santander, S.A. Settlement trust 89.14 % 100 % Santander Servicios Corporativos, S.A. de C.V. Services 99.99 % 100 % Santander Servicios Especializados, S.A. de C.V. Services 99.99 % 100 % The total non-controlling interest as of December 31, 2017, amount to 29 million pesos. Information in respect to non-controlling interest is presented in Note 27. b) Significant restrictions The Bank has the following significant restrictions on its ability to access or use the assets and settle the liabilities of the Bank as of December 31, 2017: · Compulsory deposits with the Central Bank Compulsory deposits relate to a minimum balance financial institutions are required to maintain with the Central Bank based on a percentage of deposits received by third parties. The amount of this compulsory deposit is 28,094 million pesos (see Note 7). · Reverse repurchase agreements 51,693 million pesos of debt instruments have been received in connection with reverse repurchase agreement transactions (see Notes 8 and 12). · Repurchase agreements 13,881 million pesos of Mexican government securities (M Bonds, BPATs, UMS and other debt securities) classified as available for sale have been pledged in connection with repurchase agreements operations (see Note 9). 89,147 million pesos of debt instruments classified as held for trading have been pledged in connection with repurchase agreement transactions (see Note 9). 7,350 million pesos of BREMS R classified as loans and receivables have been pledged in connection with repurchase agreements transactions (see Note 9). · Debt instruments 2,975 million pesos of Special CETES in connection with the program of credit support and additional benefits to Mexican States and Municipalities and the support program for housing loan debtors, which can only be repurchased by the Central Bank (see Note 9). 7,783 million pesos of BREMS R that can only be acquired by Mexican banks through auctions carried out by the Central Bank as well as through repurchase agreement transactions between them or between Mexican banks as per the provisions established by the Central Bank (see Notes 3.6 and 9). · Securities loans 21,555 million pesos of Mexican government securities (CETES and UDIBONDS) have been pledged in connection with securities loans transactions (see Note 9). 7 million pesos of equity instruments have been received in connection with securities loans transactions (see Note 10). · Collaterals in derivatives transactions traded in organized markets 2,566 million pesos of loans and advances to customers have been pledged in connection with derivatives traded in organized markets (see Note 12). · Collaterals in OTC derivatives transactions 34,542 million pesos of loans and advances to credit institutions have been pledged in connection with OTC derivatives transactions (see Note 8). 2,964 million pesos of debt instruments classified as held for trading have been pledged in connection with OTC derivatives transactions (see Note 9). 45,024 million pesos of deposits from credit institutions and customer deposits have been received in connection with OTC derivatives transactions (see Note 32). 3,783 million pesos of debt instruments have been received in connection with OTC derivatives transactions (see Note 32). · Earnings distribution The Bank has restrictions on earnings distribution related to the legal reserve of 10,683 million pesos that include 8,086 million pesos in legal reserve of the Bank on an individual basis (see Note 29). In addition, the Bank is restricted from distributing dividends that will result in noncompliance with minimum capitalization requirements established by the CNBV (see Note 30). · Loans to other entities within the Bank The Bank granted a loan to Santander Consumo and Santander Vivienda, S.A. de C.V. for 45,138 million pesos and 17,271 million pesos, respectively, which were eliminated from the consolidated balance sheet for consolidation purposes. c) Financial support The Bank did not give any financial support to a consolidated structured entity during 2016 and 2017. ***** |
Accounting policies (Policies)
Accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting policies | |
Foreign currency transactions | a) Foreign currency transactions i. Functional currency The functional currency of all entities comprising the Bank is the Mexican Peso (hereinafter, peso or $). Therefore, all balances and transactions denominated in currencies other than the peso are deemed to be denominated in foreign currency. ii. Recognition of exchange differences The gains and losses arising on the translation of foreign currency balances to the functional currency are recognized at their net amount under Exchange differences (net) in the consolidated income statement, except for exchange differences arising on financial instruments at Fair Value Through Profit or Loss (FVTPL), which are recognized under Gains/(losses) on financial assets and liabilities (net) in the consolidated income statement without distinguishing them from other changes in fair value and for exchange differences arising on non-monetary items measured at Fair Value Through Other Comprehensive Income (FVTOCI), which are recognized under Valuation adjustments in the consolidated other comprehensive income. iii. Exposure to foreign currency risk In preparing the consolidated financial statements, transactions in currencies other than the Bank’s functional currency (foreign currencies) are recognized at the exchange rates prevailing at the dates of the transactions. Monetary items denominated in foreign currencies are retranslated to the functional currency at the rates prevailing at the consolidated balance sheet date. Non-monetary items carried at fair value in foreign currencies are retranslated to the functional currency at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured at historical cost in a foreign currency are not retranslated. The Bank performs a large number of foreign currency transactions, mainly in US dollars (USD). The transactions, assets and liabilities denominated in foreign currencies are translated to pesos based on the exchange rates published by the Central Bank. The “Fix” (48‑hour) exchange rate used was $20.6194 per one USD and $19.6629 per one USD as of December 31, 2016 and 2017, respectively. |
Basis of consolidation | b) Basis of consolidation i. Subsidiaries The consolidated financial statements incorporate the financial statements of Banco Santander (México) and entities (including structured entities) controlled by Banco Santander (México) together with its subsidiaries. Control is achieved when the Banco Santander (México): · has power over the investee; · is exposed, or has rights, to variable returns from its involvement with the investee; and · has the ability to use its power to affect its returns. The Bank reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. When the Bank has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Bank considers all relevant facts and circumstances in assessing whether or not the Bank’s voting rights in an investee are sufficient to give it power, including: · the size of the Bank’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders; · potential voting rights held by the Bank, other vote holders or other parties; · rights arising from other contractual arrangements; and · any additional facts and circumstances that indicate that the Bank has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings. Consolidation of a subsidiary begins when the Bank obtains control over the subsidiary and ceases when the Bank loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated income statement and other comprehensive income from the date the Bank gains control until the date when the Bank ceases to control the subsidiary. On acquisition of control of a subsidiary that meets the definition of a business, its assets, liabilities and contingent liabilities are recognized at fair value at the date of acquisition. Any excess of the acquisition cost, the amount recognized for non-controlling interests of the acquiree and the fair value of the acquirer’s previous held equity interest in the acquiree over the fair values of the identifiable net assets acquired are recognized as goodwill (see Note 16). Negative differences are recognized in the consolidated income statement on the date of acquisition. The consolidated income statement and each component of other comprehensive income are attributed to the owners of the Bank and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Bank and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance (see Note 27). When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Bank’s accounting policies. The financial statements of the subsidiaries are fully consolidated with those of the Bank. All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Bank are eliminated in full on consolidation. The share of third parties of the Bank’s consolidated equity is presented under Non-controlling interests in the consolidated balance sheet (see Note 27). Their share of the profit for the year is presented under Profit attributable to non-controlling interests in the consolidated income statement. The results of subsidiaries acquired during the year are included in the consolidated income statement from the date of acquisition to year-end. Similarly, the results of subsidiaries disposed of during the year are included in the consolidated income statement from the beginning of the year to the date of disposal. A listing of the subsidiaries as of December 31, 2016 and 2017 is summarized in Note 48. ii. Investments in associates or joint ventures (jointly controlled entities) An associate is an entity over which the Bank has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control. The results and assets and liabilities of associates or joint ventures are incorporated in the consolidated financial statements using the equity method of accounting, except when the investment, or a portion thereof, is classified as held for sale, in which case it is accounted for in accordance with IFRS 5. Under the equity method, an investment in an associate or a joint venture is initially recognized in the consolidated balance sheet at cost and adjusted thereafter to recognize the Bank’s share of the consolidated income statement and other comprehensive income of the associate or joint venture. When the Bank’s share of losses of an associate or a joint venture exceeds the Bank’s interest in that associate or joint venture (which includes any long-term interests that, in substance, form part of the Bank’s net investment in the associate or joint venture), the Bank discontinues recognizing its share of further losses. Additional losses are recognized only to the extent that the Bank has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture. An investment in an associate or a joint venture is accounted for using the equity method from the date on which the investee becomes an associate or a joint venture. On acquisition of the investment in an associate or a joint venture, any excess of the cost of the investment over the Bank’s share of the net fair value of the identifiable assets and liabilities of the investee is recognized as goodwill, which is included within the carrying amount of the investment. Any excess of the Bank’s share of the net fair value of the identifiable assets and liabilities over the cost of the investment, after reassessment, is recognized immediately in the consolidated income statement in the period in which the investment is acquired. The requirements of IAS 39 are applied to determine whether it is necessary to recognize any impairment loss with respect to the Bank’s investment in an associate or a joint venture. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with IAS 36 as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized in accordance with IAS 36 to the extent that the recoverable amount of the investment subsequently increases. The Bank discontinues the use of the equity method from the date when the investment ceases to be an associate or a joint venture, or when the investment is classified as held for sale. When the Bank retains an interest in the former associate or joint venture and the retained interest is a financial asset, the Bank measures the retained interest at fair value at that date and the fair value is regarded as its fair value on initial recognition in accordance with IAS 39. The difference between the carrying amount of the associate or joint venture at the date the equity method was discontinued, and the fair value of any retained interest and any proceeds from disposing of a part interest in the associate or joint venture is included in the determination of the gain or loss on disposal of the associate or joint venture. In addition, the Bank accounts for all amounts previously recognized in other comprehensive income in relation to that associate or joint venture on the same basis as would be required if that associate or joint venture had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognized in other comprehensive income by that associate or joint venture would be reclassified to the consolidated income statement on the disposal of the related assets or liabilities, the Bank reclassifies the gain or loss from equity to the consolidated income statement (as a reclassification adjustment) when the equity method is discontinued. The Bank continues to use the equity method when an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate. There is no remeasurement to fair value upon such changes in ownership interests. When the Bank reduces its ownership interest in an associate or a joint venture but the Bank continues to use the equity method, the Bank reclassifies to the consolidated income statement the proportion of the gain or loss that had previously been recognized in other comprehensive income relating to that reduction in ownership interest if that gain or loss would be reclassified to the consolidated income statement on the disposal of the related assets or liabilities. When a Bank’s subsidiary transacts with an associate or a joint venture of the Bank, profits and losses resulting from the transactions with the associate or joint venture are recognized in the Bank’s consolidated financial statements only to the extent of interests in the associate or joint venture that are not related to the Bank. As of December 31, 2016 and 2017, the Bank did not have any associates. As of December 31, 2016 and 2017, the Bank has a commercial alliance with Elavon México in order to share revenues and expenses jointly related to the merchant services. This commercial alliance is not material to the Bank’s consolidated financial statements. iii. Structured entities When the Bank incorporates entities, or holds ownership interests therein, to enable its customers to access certain investments, or for the transfer of risks or other purposes (also called structured entities since the voting or similar power is not a key factor in deciding who controls the entity), the Bank determines, using internal criteria and procedures and taking into consideration the applicable legislation, whether control (as defined above) exists and, therefore, whether these entities should be consolidated. These structured entities include securitization special purpose vehicles (SPV) and employee benefit trusts (EBT) established for employee share-based plans, which are consolidated over which it is considered that the Bank continues to exercise control. Note 12.g contains information regarding securitized mortgage assets. Share-based payments are discussed in Note 41.b, 41.c and 41.d. iv. Business combinations Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Bank, liabilities incurred by the Bank to the former owners of the acquiree and the equity interests issued by the Bank in exchange for control of the acquiree. Acquisition-related costs are recognized in the consolidated income statement as incurred. At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at their fair value, except that: · deferred tax assets or liabilities, and assets or liabilities related to employee benefit arrangements are recognized and measured in accordance with IAS 12 and IAS 19, respectively; · liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment arrangements of the Bank entered into to replace share-based payment arrangements of the acquiree are measured in accordance with IFRS 2 at the acquisition date; and · assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 are measured in accordance with that Standard. Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed (see Note 2.m). If, after reassessment, the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree (if any), the excess is recognized immediately in the consolidated income statement as a bargain purchase gain. Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity’s net assets in the event of liquidation may be initially measured either at fair value or at the non-controlling interests’ proportionate share of the recognized amounts of the acquiree’s identifiable net assets. The choice of measurement basis is made on a transaction-by-transaction basis. Other types of non-controlling interests are measured at fair value or, when applicable, on the basis specified in another IFRS. When the consideration transferred by the Bank in a business combination includes assets or liabilities resulting from a contingent consideration arrangement, the contingent consideration is measured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments are adjustments that arise from additional information obtained during the ‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date. The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement period adjustments depends on how the contingent consideration is classified. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration that is classified as an asset or a liability is remeasured at subsequent reporting dates in accordance with IAS 39, or IAS 37 Provisions, Contingent Liabilities and Contingent Assets, as appropriate, with the corresponding gain or loss being recognized in the consolidated income statement. When a business combination is achieved in stages, the Bank’s previously held equity interest in the acquiree is remeasured to its acquisition-date fair value and the resulting gain or loss, if any, is recognized in the consolidated income statement. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are reclassified to the consolidated income statement where such treatment would be appropriate if that interest were disposed of. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Bank reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see above), or additional assets or liabilities are recognized, to reflect additional information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognized at that date. v. Changes in the Bank’s ownership interests in existing subsidiaries Changes in the Bank’s ownership interests in subsidiaries that do not result in the Bank losing control over the subsidiaries are accounted for as equity transactions, no gain or loss is recognized in the consolidated income statement and the initially recognized goodwill is not remeasured. The carrying amounts of the Bank’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in Accumulated reserves in Shareholders’ equity and attributed to owners of the Bank. When the Bank loses control of a subsidiary, a gain or loss is recognized in the consolidated income statement and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. All amounts previously recognized in Valuation adjustments in the consolidated other comprehensive income in relation to that subsidiary are accounted for as if the Bank had directly disposed of the related assets or liabilities of the subsidiary (i.e., reclassified to the consolidated income statement or transferred to another category of equity as specified/permitted by applicable IFRS). The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under IAS 39, when applicable, the cost on initial recognition of an investment in an associate or a joint venture. |
Definitions and classification of financial instruments | c) Definitions and classification of financial instruments i. Definitions A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets and financial liabilities are recognized when the Bank becomes a party to the contractual provisions of the financial instruments. An equity instrument is any agreement that evidences a residual interest in the assets of the issuing entity after deducting all of its liabilities. IAS 39 defines a derivative as a financial instrument or other contract within the scope of the Standard with all three of the following characteristics: · its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract (sometimes called the “underlying”); · it requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors; and · it is settled at a future date. Hybrid financial instruments are contracts that simultaneously include a non-derivative host contract together with a derivative, known as an embedded derivative, that is not separately transferable and has the effect that some of the cash flows of the hybrid contract vary in a way similar to a stand-alone derivative. Compound financial instruments are contracts that simultaneously create for their issuer a financial liability and an equity instrument (such as convertible bonds, which entitle their holders to convert them into equity instruments of the issuer). The following transactions are not treated for accounting purposes as financial instruments: - Pensions and similar obligations (see Note 24.c.). - Share-based payments (see Note 41.b., 41.c. and 41.d.). ii. Classification of financial assets for measurement purposes Financial assets are initially classified into the various categories used for management and measurement purposes, unless they relate to Cash and balances with central banks or Hedging derivatives, which are reported separately. Financial assets are included for measurement purposes in one of the following categories: - Financial assets held for trading (at FVTPL): 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 included in this category in order to obtain more relevant information, either because this eliminates or significantly reduces recognition or measurement inconsistencies (accounting mismatches) that would otherwise arise from measuring assets or liabilities or recognizing the gains or losses on them on different bases, or because a group of financial assets or financial assets and liabilities is managed and its performance is evaluated on a fair value basis, such as reverse repurchase agreements, in accordance with a documented risk management or investment strategy, and information about the group is provided on that basis to the Bank’s key management personnel. Financial assets may only be included in this category on the date they are acquired or originated. - Available-for-sale financial assets: This category includes debt instruments not classified as Held-to-maturity investments, Loans and receivables or Financial assets at fair value through profit or loss, and equity instruments issued by entities other than subsidiaries, associates and joint ventures, 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 the investment arising from ordinary lending activities, such as the cash amounts of loans drawn down and not yet repaid by customers or the deposits placed with other credit institutions, whatever the legal instrument and unquoted debt securities constituting part of the Bank’s business. - The Bank generally intends to hold the loans and receivables granted by it until their final maturity and, therefore, they are presented in the consolidated balance sheet at their amortized cost (net of allowance for impairment losses). - Held-to-maturity investments: This category includes debt instruments traded in an active market, with fixed maturity and with fixed or determinable payments, for which the Bank has both the intention and proven ability to hold to maturity. As of December 31, 2016 and 2017, the Bank did not hold any investment classified as held to maturity. iii. Classification of financial assets for presentation purposes Financial assets are classified by nature into the following items in the consolidated balance sheet: - Cash and balances with the Central Bank: cash balances and balances receivable including the compulsory deposits with the Central Bank. - Loans and receivables: includes the debit balances of all credit and loans granted by the Bank, other than those classified as securities, as well as finance lease receivables and other receivables and other debit balances of a financial nature in favor of the Bank, such as balances receivable from clearing houses and settlement agencies for transactions carried out on the stock exchange and other organized markets, bonds given in cash, capital calls, fees and commissions receivable for financial guarantees and debit balances arising from transactions not originating in banking transactions and services. Loans and receivables are classified in accordance with the institutional sector to which the debtor belongs, into: - Loans and advances to credit institutions: loans of any nature, including deposits provided to credit institutions. - Loans and advances to customers: includes all other loans. - Debt instruments: bonds and other debt securities that represent a debt obligation for their issuer and that bear interest. - Equity instruments: financial instruments issued by other entities, such as shares, which have the nature of equity instruments for the issuer, other than investments in subsidiaries, associates or jointly controlled entities. - Trading derivatives: includes the fair value in favor of the Bank of derivatives, which do not form part of hedge accounting relationship, including embedded derivatives separated from hybrid financial instruments. - Hedging derivatives: includes the fair value of derivatives in favor of the Bank, including embedded derivatives separated from hybrid financial instruments, designated as hedging instruments in hedge accounting. iv. Classification of financial liabilities for measurement purposes Financial liabilities are initially classified into the various categories used for management and measurement purposes, unless they relate to Hedging derivatives, which are reported separately. Financial liabilities are classified for measurement purposes into one of the following categories: - Financial liabilities held for trading (at FVTPL): this category includes financial liabilities incurred for the purpose of generating a profit in the near term from fluctuations in their prices, financial derivatives not designated as hedging instruments and financial liabilities arising from the outright sale of financial assets acquired under reverse repurchase agreements, securities loans and sales of borrowed securities (short positions). - Other financial liabilities at fair value through profit or loss: financial liabilities are included in this category when such classification provides for more relevant information regarding the financial liability, either because this eliminates or significantly reduces recognition or measurement inconsistencies (accounting mismatches) that would otherwise arise from measuring the liabilities or recognizing the gains or losses on them on different bases, or because a group of financial liabilities or financial assets and liabilities is managed and its performance is evaluated on a fair value, such as repurchase agreements, in accordance with a documented risk management or investment strategy, and information about the group is provided on that basis to the Bank’s key management personnel. Liabilities may only be included in this category on the date when they are incurred or originated. - Financial liabilities at amortized cost: this category includes financial liabilities, irrespective of their instrumentation and maturity, not included in any of the above-mentioned categories, which arise from the ordinary borrowing activities. iv. Classification of financial liabilities for presentation purposes Financial liabilities are classified by nature into the following items in the consolidated balance sheet: - Deposits: includes all repayable balances received in cash by the Bank, other than those classified as marketable securities and those having the substance of subordinated liabilities. This item also includes cash bonds and cash consignments received the amount of which may be invested without restriction. Deposits are classified based on type of depositor as follows: - Deposits from the Central Bank: deposits of any nature received from the Central Bank. - Deposits from credit institutions: deposits of any nature, including credit received and money market operations in the name of credit institutions. - Customer deposits: includes the remaining deposits. - Marketable debt securities: includes the amount of bonds and other debt represented by marketable securities, other than those having the substance of subordinated liabilities. This item includes the component considered to be a financial liability component of compound financial instruments issued by the Bank. - Trading derivatives: includes the fair value of derivatives with a liability balance, including embedded derivatives separated from the host contract, which do not form part of hedge accounting. - Short positions: includes the amount of financial liabilities arising from the outright sale or from pledging of financial assets acquired under reverse repurchase agreements, securities loans and sales of borrowed securities. - Subordinated liabilities: amount of financing received which, for the purposes of payment priority, ranks behind ordinary debt. This category also includes the financial instruments issued by the Bank, which form part of the Bank’s capital management for regulatory purposes, but do not meet the requirements for classification as equity for accounting purposes. - Other financial liabilities: includes the amount of payment obligations having the nature of financial liabilities that are not included in any of the aforementioned categories, including liabilities under financial guarantee contracts. Hedging derivatives: includes the fair value of the Bank’s liability in respect of derivatives, including embedded derivatives separated from hybrid financial instruments, designated as qualified hedging instruments in hedge accounting. |
Measurement of financial assets and liabilities and recognition of fair value changes | d) Measurement of financial assets and liabilities and recognition of fair value changes In general, financial assets and liabilities are initially recognized at fair value, which, in the absence of evidence to the contrary, is deemed to be the transaction price. The amount initially recognized for financial instruments not measured at FVTPL is adjusted for transaction costs. Financial assets and liabilities are subsequently measured at each period-end as follows: i. Measurement of financial assets Financial assets are measured at fair value without deducting any transaction costs that may be incurred on their disposal. Transaction costs are considered for loans and receivables, held-to-maturity investments, equity instruments whose fair value cannot be determined in a sufficiently objective manner and derivative assets that have equity instruments as their underlying and are settled by delivery of those instruments. All financial assets are accounted for at the trade date. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions. The most objective and common reference for the fair value of a financial instrument is the price that would be paid for it on an active, transparent and deep market (quoted price or market price). At 31 December 2017, there were no significant investments in quoted financial instruments that had ceased to be recognized at their quoted price because their market could not be deemed to be active. Fair value under IFRS is an exit price regardless of whether that price is directly observable or estimated using another valuation technique. If there is no market price for a given financial instrument, its fair value is estimated on the basis of the price established in recent transactions involving similar instruments and, in the absence thereof, of valuation techniques commonly used by the international financial community, taking into account the specific features of the instrument to be measured and, particularly, the various types of risk associated with it. All derivatives are recognized in the consolidated balance sheet at fair value from the trade date. If the fair value is positive, they are recognized as an asset and if the fair value is negative, they are recognized as a liability. In the absence of evidence to the contrary, the fair value on the trade date is deemed to be the transaction price. The changes in the fair value of derivatives from the trade date are recognized in Gains/(losses) on financial assets and liabilities (net) in the consolidated income statement. Specifically, the fair value of derivatives traded in organized markets included in the portfolios of financial assets or liabilities held for trading is deemed to be their daily quoted price. If for exceptional reasons the quoted price cannot be determined on a given date, these financial derivatives are measured using methods similar to those used to measure over-the-counter (hereinafter, OTC) derivatives. The fair value of OTC derivatives is determined using the most appropriate valuation techniques commonly used by the financial markets based on the characteristics of each financial instrument such as present value, option pricing models and other methods. Loans and receivables and Held-to-maturity investments are measured at amortized cost using the effective interest method. Amortized cost is the acquisition cost of a financial asset or liability plus or minus, as appropriate, the principal repayments and the cumulative amortization (taken to the consolidated income statement) of the difference between the initial cost and the maturity amount. In the case of financial assets, amortized cost also includes any reduction for impairment or uncollectibility. In the case of Loans and receivables hedged in fair value hedges, the changes in the fair value of these assets related to the risk or risks being hedged are recognized. The effective interest rate is the discount rate that exactly matches the carrying amount of a financial instrument to all its estimated cash flows of all kinds over its remaining life. For fixed rate financial instruments, the effective interest rate coincides with the contractual interest rate established on the acquisition date and, where applicable, the fees and transaction costs that, because of their nature, form part of the financial return. For floating rate financial instruments, the effective interest rate coincides with the rate of return prevailing until the next benchmark interest reset date. Equity instruments whose fair value cannot be determined in a sufficiently objective manner and financial derivatives that have those instruments as their underlying and are settled by delivery of those instruments are measured at acquisition cost adjusted, where appropriate, by any related impairment loss. The amounts at which the financial assets are recognized represent, in all material respects, the Bank’s maximum exposure to credit risk at each reporting date. In addition, the Bank has received collateral and other credit enhancements to mitigate its exposure to credit risk, which consist mainly of mortgage guarantees, cash collateral, debt and equity instruments, personal guarantees, leased assets, assets acquired under reverse repurchase agreements and securities loans. The measurement of available-for-sale financial assets is described in further detail in iii. Valuation techniques. ii. Measurement of financial liabilities In general, financial liabilities are measured at amortized cost, as defined above, except for those included under Financial liabilities held for trading and Other financial liabilities at fair value through profit or loss and financial liabilities designated as hedged items (or hedging instruments) in fair value hedges, which are measured at fair value. iii. Valuation techniques The following table shows a summary of the fair values at December 31, 2016 and 2017, of the financial assets and liabilities indicated below, classified on the basis of the various measurement methods used by the Bank to determine their fair value: 12/31/2016 12/31/2017 Published Published Price Price Quotations Quotations in Active in Active Markets – Internal Markets – Internal Level 1 Models Total Level 1 Models Total ASSETS: Financial assets held for trading 139,869 202,713 342,582 147,784 167,786 315,570 Other financial assets at fair value through profit or loss — 42,340 42,340 — 51,705 51,705 Available-for-sale financial assets 139,466 15,178 154,644 164,999 743 165,742 Hedging derivatives — 15,003 15,003 — 15,116 15,116 279,335 275,234 554,569 312,783 235,350 548,133 LIABILITIES: Financial liabilities held for trading 166 266,662 266,828 620 239,105 239,725 Other financial liabilities at fair value through profit or loss — 136,860 136,860 — 120,653 120,653 Hedging derivatives — 14,287 14,287 — 11,091 11,091 166 417,809 417,975 620 370,849 371,469 The fair value of the financial instruments is determined, when possible, on the basis of a quoted price in an active market for an identical asset or liability (Level 1). This group includes government debt securities, private-sector debt securities without optional characteristics, derivatives traded in organized markets, shares and short positions. In cases where price quotations cannot be observed, Management makes its best estimate of the price that the market would set using its own internal models (valuation techniques). These internal models use data based on observable market parameters as significant inputs (Level 2) and, in very specific cases, they use significant inputs not observable in market data (Level 3). The use of observable market data assumes that markets are efficient and therefore the data that is derived therefrom is representative. The best evidence of the fair value of a financial instrument on initial recognition is the transaction price, unless the fair value of the instrument can be obtained from other market transactions performed with the same or similar instruments or can be measured by using a valuation technique in which the variables used include only observable market data, mainly interest rates. The objective of valuation techniques is to arrive at a fair value measurement that reflects the price that would be received to sell the asset or paid to transfer the liability in an orderly transaction between market participants at the measurement date. Still, other internal models use unobservable data as inputs. Examples of such unobservable inputs and assumptions are as follows: Correlation: Historical correlation between equity prices and exchange rates is assumed for valuing quanto and composite options. Dividends: The estimation for the dividend used as inputs in the internal models is based on the dividend payments expected from the issuer companies. Volatility: There is no liquid option market for certain long-term assets. For most Mexican underlying assets, the option market is for up to one year. In the case of the Mexican Stock Exchange Prices and Quotations Index (IPC), there is an option market up to three years. In these cases, Bank’s Management assumes a local volatility model using maturities for which market data exists and extrapolates the curve for unknown terms. Rate curve for estimating the interest rate index known as the 91‑day Interbank Equilibrium Interest Rate (Tasa de Interés Interbancaria de Equilibrio, or TIIE): there is no liquid market for interest rate swaps (IRS) with 91‑day payment terms. For these fair value measurements, the 28‑day IRS curve is used instead. Whenever unobservable market data is used in valuation techniques, the valuation is adjusted considering unobservable assumptions that market participants would use when pricing the asset or liability, including assumptions about risk. The Bank also adjusts the value of some assets when they have very low market trading volume, even when prices are available. Fair value measurements that incorporate significant unobservable inputs are classified as Level 3. Significant unobservable inputs are defined as inputs for which observable market data are not available and that are significant to the fair value measurement. Such inputs are developed using the best information available about assumptions that market participants would use when pricing the asset or liability. iv. Valuation of financial instruments General measurement bases The Bank has implemented a formal process for systematic valuation and management of financial instruments. The governance scheme for this process distributes responsibilities between two independent areas inside the Bank: Treasury (development, marketing and daily management of financial products and market data) and Risks (on a periodic basis, validation of pricing models and market data, computation of risk metrics, new transactions approval policies, management of market risk and implementation of fair value adjustment policies). The approval of new products follows a sequence of steps (request, development, validation, integration in corporate systems and quality assurance) before the product is brought into production. This process ensures that pricing systems have been properly reviewed and are stable before they are used. The related valuation techniques and inputs by asset class are as follows: a. Trading and available-for-sale financial assets The estimated fair value of these financial assets is determined using quoted prices or yield curves provided by a price vendor. b. Loans and advances to credit institutions and customers – reverse repurchase agreements The fair value is estimated by using the discounted cash flow (forward estimation) technique using the interest rates that are currently offered for loans and advances with terms similar to those of borrowers having a similar credit quality. c. Short positions, deposits from the Central Bank and deposits from credit institutions and customers – repurchase agreements The fair value of these financial instruments is calculated by using the discounted cash flow (forward estimation) technique based on the current incremental lending rates for similar types of deposits having similar maturities. d. Financial derivatives (assets and liabilities) The estimated fair value of futures contracts is calculated using the prices quoted on the Derivatives Exchange Markets (Mercado Mexicano de Derivados and Chicago Mercantile Exchange) of identical instruments. If there are no quoted prices on the market (either direct or indirect) for a derivative instrument, the respective fair value estimates are calculated by using one of the following models and valuation techniques: i. Non-closed formula solution In the valuation of financial instruments permitting static hedging (such as loans and receivables, deposits, forwards and swaps), the present value method (forward estimation) is used. This method consists of a) calculating the expected cash flows and b) discounting the expected cash flows at the risk interest rate through the applicable discount factor. Both steps use observable market data (yield curves, foreign exchange spot rates and so forth) which are provided by a market data supplier (price vendor). ii. Closed-formula solution The Black-Scholes model and Black model are used for the valuation of plain vanilla options, the first for foreign exchange and securities and the latter for interest rates. These models assume that the underlying price follows a lognormal distribution. The Monte Carlo method with the local volatility model is the market proxy or reference model to price a wider range of exotic equity products. The partial differential equation method with the local volatility model is particularly appropriate to price and manage callable products and products including barrier features on a single underlying. This method is quicker, more stable and more precise than the standard Monte Carlo method, but the latter is needed when the underlying is a basket. The local volatility models assume that share and index prices are lognormally distributed and volatility is a deterministic function of time and the market price. The trinomial trees method is intended for American foreign exchange products, which can be canceled at any time throughout the life of the option. It assumes deterministic interest rates and represents the evolution of the underlying foreign exchange using the Black-Scholes model. The partial differential equation solver using a mixed volatility model is used for pricing barrier products in foreign exchange. The development of a mixed volatility model was motivated by some very sensitive barrier products (double-no-touch options), which were quoted in the market with prices in between those provided by a local volatility model and a pure stochastic volatility model. The mixed volatility model is a combination of both models, which provides a price between them. e. Marketable debt securities (structured notes) The fair value of these financial instruments is calculated by using the discounted cash flow (forward estimation) technique, based on the current incremental lending rates for similar types of deposits having similar maturities, for the debt obligation component and one of the financial derivatives valuation techniques for the embedded derivative component, that depends on the payoff. Valuation adjustment for counterparty risk or default risk The Credit Valuation Adjustment (CVA) is a valuation adjustment to OTC derivatives as a result of the risk associated with the credit exposure assumed with each counterparty. The CVA is calculated taking into account expected positive exposure with each counterparty in each future period. The CVA for a specific counterparty is equal to the sum of the CVA for all the periods. The following inputs are used to calculate the CVA: · Expected positive exposure: average positive exposure to the counterparty, across all paths, all evaluated on a certain future date using a Monte Carlo method to simulate the future values of the derivatives’ portfolio. Mitigating factors such as collateral and netting agreements are taken into account. · LGD: percentage of final loss assumed in a counterparty credit event /default. · PD: Credit Default Swaps (CDS) are used to infer the probability of default. For cases where there is no market information, probabilities are inferred using a market proxy based on market information from companies in the same industry and with the same external ratings as the counterparty, to ensure best practice. · Discount factor curve. The debt valuation adjustment (DVA) is a similar valuation adjustment to the CVA but, in this case, it arises as a result of the Bank’s risk assumed by its counterparties in OTC derivatives. The CVA and DVA recognized at December 31, 2016 amounted to 557 million and 1,658 million, respectively. The CVA and DVA recognized at December 31, 2017 amounted to 370 million and 2,397 million, respectively. All financial instruments fair values are calculated on a daily basis. Set forth below are the financial instruments at fair value whose measurement was based on internal models (Level 2 and 3) at December 31, 2016 and 2017. Fair Fair Values Values Calculated Calculated Using Internal Using Internal Valuation Techniques Key Inputs Models at Models at 12/31/2016 12/31/2017 Level 2 Level 3 Total Level 2 Level 3 Total ASSETS: Financial assets held for trading: 202,541 172 202,713 167,535 251 167,786 Debt instruments 2,697 172 2,869 2,593 — 2,593 Forward Estimation (non closed formula) Interest rate yield curve Trading derivatives: Interest rate options 1,698 — 1,698 1,339 — 1,339 Black model (closed-form solution) Interest rate yield curve and implied volatility surface. Market index options: 871 — 871 581 — 581 European options 839 — 839 548 — 548 Black-Scholes model (closed-form solution) Interest rate yield curves, quoted equity prices and index levels, implied volatility surface and dividends estimation. Asian (Single underlying Quanto) 20 — 20 18 — 18 Local volatility model with partial differential equation method Interest rate yield curves, quoted equity prices and index levels, implied volatility surface, historical correlations and dividends estimation. Best of options (Basket) 12 — 12 15 — 15 Local volatility model with Monte Carlo method Interest rate yield curves, equity prices and index levels, implied volatility surface, historical correlations and dividends estimation Exchange rate options: 383 — 383 1,885 172 2,057 American forwards 6 — 6 23 — 23 Black and Scholes model with trinomial tree method Interest rate yield curves, quoted exchange rates and implied volatility surface American Barrier & Touch options — — — 39 — 39 Mixed volatility model with partial differential equation method Interest rate yield curves, quoted exchange rates and implied volatility surface European options 377 — 377 1,823 172 1,995 Black-Scholes model (closed-form solution) Interest rate yield curves, quoted exchange rates and implied volatility surface Swaps 190,199 — 190,199 155,799 23 155,822 Forward Estimation (non-closed formula) Interest rate yield curve and quoted exchange rates Index and securities futures 3 — 3 93 — 93 Forward Estimation (non-closed formula) Interest rate yield curve and quoted exchange rates Interest rate futures 6 — 6 — — — Forward Estimation (non-closed formula) Interest rate yield curve Exchange rate futures 6,684 — 6,684 5,245 56 5,301 Forward Estimation (non-closed formula) Interest rate yield curve and quoted exchange rates Other financial assets at fair value through profit or loss: 42,340 — 42,340 51,705 — 51,705 Loans and advances to credit institutions – Reverse repurchase agreements 37,831 — 37,831 46,087 — 46,087 Forward Estimation (non-closed formula) Interest rate yield curve Loans and advances to customers – Reverse repurchase agreements 4,509 — 4,509 5,618 — 5,618 Forward Estimation (non-closed formula) Interest rate yield curve Financial assets available-for-sale: 15,178 — 15,178 743 — 743 Debt instruments 15,083 — 15,083 675 — 675 Forward Estimation (non-closed formula) Interest rate yield curve Equity instruments 95 — 95 68 — 68 Other Value of shareholders’ equity Hedging derivatives: 15,003 — 15,003 15,116 — 15,116 Swaps 15,003 — 15,003 12,727 — 12,727 Forward Estimation (non-closed formula) Interest rate yield curve and quoted exchange rates Exchange rate forwards — — — 2,389 — 2,389 Forward Estimation (non-closed formula) Interest rate yield curve and quoted exchange rates 275,062 172 275,234 235,099 251 235,350 Fair Fair Values Values Calculated Calculated Using Internal Using Internal Models at Models at Valuation 12/31/2016 12/31/2017 Techniques Key Inputs Level 2 Level 3 Total Level 2 Level 3 Total LIABILITIES: Financial liabilities held for trading: 266,662 — 266,662 238,747 358 239,105 Trading derivatives: Interest rate options 1,904 — 1,904 1,197 — 1,197 Black model (closed-form solution) Interest rate yield curve and implied volatility surface. Market index options: 340 — 340 298 — 298 European 69 — 69 163 — 163 Black-Scholes model (closed-form solution) Interest rate yield curves, quoted equity prices, index levels, implied volatility surface and dividends estimation. Auto-callable 264 — 264 129 — 129 Local volatility model with partial differential equation method Interest rate yield curves, quoted equity prices and index levels, implied volatility surface, historical correlations and dividends estimation. Asian (Single underlying Quanto) 7 — 7 6 — 6 Local volatility model with partial differential equation method Interest rate yield curves, quoted equity prices and index levels, implied volatility surface, historical correlations and dividends estimation. Exchange rate options: 573 — 573 2,397 198 2,595 American forwards 116 — 116 53 — 53 Black and Scholes model with trinomial tree method Interest rate yield curves, quoted exchange rates and implied volatility surface European options 431 — 431 2,238 198 2,436 Black-Scholes model with (closed-formula solution) Interest rate yield curves, quoted exchange rates and implied volatility surface American barrier and touch options 9 — 9 47 — 47 Mixed volatility model with partial differential equation method Interest rate yield curves, quoted exchange rates and implied volatility surface American options 17 — 17 59 — 59 Black-Scholes model (closed-form solution) Interest rate yield curves, quoted exchange rates and implied volatility surface Swaps 196,485 — 196,485 161,389 — 161,389 Forward Estimation (non- closed formula solution) Interest rate yield curvescurve and quoted exchange rates Index and securities futures 4 — 4 90 — 90 Forward Estimation (non closed formula) Interest rate yield curves,curve and quoted equity and index levels exchange rates Interest rate futures 28 — 28 — — — Forward Estimation (non closed formula) Interest rate yield curve Exchange rate futures 6,190 — 6,190 4,933 160 5,093 Forward Estimation (non closed formula) Interest rate yield curve and quoted exchange rates . Short positions: Debt instruments 61,138 — 61,138 68,443 — 68,443 Forward Estimation (non- closed formula solution) Interest rate yield curve Other financial liabilities at fair value through profit or loss: 136,860 136,860 120,653 120,653 Deposits from the Central Bank – Repurchase agreements 15,479 — 15,479 22,417 — 22,417 Forward Estimation (non closed formula) Interest rate yield curve Deposits from credit institutions – Repurchase agreements 25,155 — 25,155 5,942 — 5,942 Forward Estimation (non closed formula) Interest rate yield curve Customer deposits – Repurchase agreements 83,891 — 83,891 81,790 — 81,790 Forward Estimation (non closed formula) Interest rate yield curve Marketable debt securities 12,335 — 12,335 10,504 — 10,504 Present value (non-closed formula solution) and Black-Sholes model with closed-formula solution. Interest rate yield curve, quoted equity prices and index levesl, implied volatility surface, historical correlations and dividens estimation Hedging derivatives: 14,287 — 14,287 11,091 — 11,091 Swaps 7,969 — 7,969 10,370 — 10,370 Forward Estimation (non closed formula) Interest rate yield curve and quoted exchange rates Exchange rate forwards 6,318 — 6,318 721 — 721 Forward Estimation (non closed formula) Interest rate yield curve and quoted exchange rates 417,809 — 417,809 370,491 358 370,849 Some of the financial instruments of the fair-value hierarchy have identical or similar offsetting exposures to certain inputs, but in accordance with IFRS, are presented as gross assets and liabilities in the consolidated balance sheet. The measurements derived using the valuation techniques might have been different had other methods or assumptions been used with respect to interest rate risk, credit risk and foreign currency risk spreads, or their related correlations and volatilities. Nevertheless, Bank’s Management believes that the fair value of the financial assets and liabilities recognized in the consolidated balance sheet and the gains and losses arising from these financial instruments are reasonably stated. Financial instruments categorized in Level 3 Set forth below are the Bank’s main financial instruments measured using unobservable market data as significant inputs of the internal models (Level 3): As of December 31, 2017, the financial assets held for trading categorized in Level 3 are the structure denominated as “Red Compartida” and two Cross Currency Swaps (CCS) USD/Mexican Peso (MXN) with maturity of twenty two years. - The structure denominated as “Red Compartida” is composed of foreign currency exchange (Fx) forwards and plain vanilla Fx options over USD/MXN with maturity from two to five years. For the Fx options there is a substantial risk of uncertainty in the market data used for the valuation, specifically in the long-term volatility, because the USD/MXN options market in these terms may not have the necessary market liquidity. The lack of sufficient liquidity make the Fx options to be valued using an unobservable input, thus “Red Compartida” should be categorized as Level 3. - During the last quarter of 2017, two CCS USD/MXN (Nominal USD 100 MM) were traded at twenty two years which should be considered as Level 3 due to illiquidity above twenty years of these products. As of December 31, 2016, the financial assets held for trading categorized in Level 3 (debt and equity instruments) are convertible bonds issued by Cementos Mexicanos, S.A.B. de C.V. (CEMEX). This hybrid instrument was valued using partial differential equation solver given the embedded equity option (whose underlying asset was CEMEX.CPO, the shares listed on Mexican Stock Exchange) on the debt instrument. Because the long-term implied volatility was not quoted directly in an active market or otherwise capable of estimates that were exclusively based on observable inputs and assumptions, this financial asset was classified as Level 3. The following table provides a reconciliation of the movement between opening and closing balances of Level 3 financial instruments, measured at fair value using a valuation technique with significant unobservable inputs: Assets Debt and Equity Trading Instruments derivatives Total Balance at January 1, 2015 903 — 903 Total gains/losses recognized in the consolidated income statement: Gains/(losses) on financial assets and liabilities (net) 13 — 13 Purchases 1 — 1 Sales (647) — (647) Settlements (51) — (51) Balance at December 31, 2015 219 — 219 Total gains/losses recognized in the consolidated income statement: Gains/(losses) on financial assets and liabilities (net) 73 — 73 Purchases — — — Sales (102) — (102) Settlements (18) — (18) Balance at December 31, 2016 172 — 172 Total gains/losses recognized in the consolidated income statement: Gains/(losses) on financial assets and liabilities (net) (13) 91 78 Purchases — — — Sales (143) — (143) New issuances — 160 160 Settlements (16) — (16) Balance at December 31, 2017 — 251 251 Liabilities Debt and Equity Trading Instruments derivatives Total Balance at December 31, 2016 — — — Total gains/losses recognized in the consolidated income statement: Gains/(losses) on financial assets and liabilities (net) — (9) (9) Purchases — — — Sales — — — New issuances — (349) (349) Settlements — — — Balance at December 31, 2017 — (358) (358) Unobservable inputs used in measuring fair value The table below sets out information about significant unobservable inputs used at December 31, 2017 in measuring financial instruments categorized as Level 3 in the fair value hierarchy: Significant Range of Estimates Fair value Measurement Valuation Unobservable (weighted-average) Sensitivity to Financial Instrument Fair value Technique Input for Unobservable Input Unobservable Inputs Cross Currency Swaps 23 Forward Estimation (non closed formula) Long term MXN rates Bid Offer Spread A significant increase in MXN rates would result in a lower fair value. Red Compartida (130) Black-Scholes model (closed-form solution) Long term Fx USD/MXN volatility 11%-21% (15.7%) A significant increase in volatility would result in a lower fair value. Although the Bank believes that its estimates of fair value are appropriate, the use of different inputs could lead to different measures of fair value. As of December 31, 2017, the potential impact on the consolidated income statement of changing the main inputs used for the measurement of Level 3 financial instruments for other inputs, taking the highest (most favorable input) or lowest (least favorable) value of the range deemed reasonably possible, would be as follows: Potential Impact on Consolidated Income Statement as of December 31, 2017 Most Least Favorable Favorable Input Input ASSETS: Cross Currency Swaps (16.6) LIABILITIES: Red Compartida 6.9 (41.8) Cross Currency Swaps The least favorable scenario assumed the following: - The MXN market rates (IRS TIIE and X-CCY USD/MXN) needed to valuation were moved up 6 basis points (bps) and 10 bps accordingly. The scenarios were determined by the following: 0.95 percentil over a 1 year historical period of the difference between the bid and offer quotations of these market rates divided by two. The most favorable scenario assumed the following: - The MXN market rates (IRS TIIE and X-CCY USD/MXN) needed to valuation were moved down 6 bps and 10 bps accordingly. Red Compartida The least favorable scenario assumed the following: - The volatility of the underlying asset of the long term Fx USD/MXN options at its maturity moved from 15.7% to 19.42%. The volatility used as input for the internal model (15.7%) is an extrapolation of the observable volatility surface of a shorter-term option market of the underlying, provided by the local price vendor. The scenario was based on two factors: the difference between the bid and offer quotations of these options divided by two and the 0.95% percentil of the movement price distribution. The most favorable scenario assumed the following: - The volatility of the underlying asset of the long term Fx USD/MXN options at its maturity moved from 15.7% to 15.1%. v. Sensitivity analysis As an alternative to sensitivity analysis, the Bank uses a Value at Risk (VaR) technique. A detailed explanation about VaR technique and the main assumptions incorporated therein are described in Note 47. The VaR amounts as of December 31, 2017, including all financial instruments in the trading book position of the Bank are as follows: Average High Low 12/31/2017 All financial instruments 95.06 146.43 57.61 128.61 By category: Instruments sensitive to interest rate 96.39 144.09 55.74 125.20 Instruments sensitive to equity market prices 4.64 16.83 1.36 5.07 Instruments sensitive to foreign currency exchange rates 50.83 101.46 8.16 25.34 Instruments sensitive to volatility movements 11.57 26.22 3.97 16.13 The Bank’s VaR should be interpreted in light of the limitations of the methodologies. These limitations include the following: Historical data may not provide the best estimate of the joint distribution of risk factor changes in the future and may fail to capture the risk of possible extreme adverse market movements, which have not occurred in the historical window used in the calculations. VaR using a one-day time horizon does not fully capture the market risk of positions that cannot be liquidated or hedged within one day. The Bank largely computes the VaR of the trading portfolios at the close of business and positions ma |
Derecognition of financial assets and liabilities | e) Derecognition of financial assets and liabilities 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 Bank 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 Bank 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, which is recognized for an amount equal to the consideration received and is subsequently measured at amortized cost, unless it meets the requirements for classification under Other financial liabilities at fair value through profit or loss. b. The income from the transferred financial asset not derecognized and any expense incurred on the new financial liability, without offsetting. 3. If the Bank 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 asset is measured at fair value. Accordingly, financial assets are only derecognized when the rights on the cash flows they generate have expired or when substantially all the inherent risks and rewards have been transferred to third parties. Financial liabilities are only derecognized when the obligations they generate have been extinguished, that is when the contractual obligations have been paid or cancelled, or have been expired. |
Offsetting of financial instruments | f) Offsetting of financial instruments Financial asset and liability balances are offset, i.e., reported in the consolidated balance sheet at their net amount, only if the Bank currently have a legally enforceable right to set-off the recognized amounts and intend either to settle on a net basis or to realize the asset and settle the liability simultaneously. The disclosures set out in the tables below include financial assets and financial liabilities that: · Are offset in the Bank’s consolidated balance sheet; or · Are subject to an enforceable master netting arrangement or similar agreement that covers similar financial instruments, irrespective of whether they are offset in the consolidated balance sheet. The similar agreements include derivative clearing agreements, global master repurchase agreements and global master securities lending agreements. Similar financial instruments include derivatives, repurchase agreements, reverse repurchase agreements and securities borrowing and lending agreements. Financial instruments such as loans and receivables and deposits are not disclosed in the tables below unless they are offset in the consolidated balance sheet. Derivative transactions are either transacted on an exchange or entered into under International Swaps and Derivatives Association (ISDA) master netting agreements. In general, under ISDA master netting agreements in certain circumstances (e.g. when a credit event such as a default occurs) all outstanding transactions under the agreement are terminated, the termination value is assessed and only a single net amount is due or payable in settlement of all transactions. Repurchase agreements, reverse repurchase agreements, securities borrowing and lending agreements are covered by master agreements with netting terms similar to those of ISDA master netting agreements. The ISDA and similar master netting arrangements do not meet the criteria for offsetting in the consolidated balance sheet. This is because they create for the parties to the agreement a right of set-off of recognized amounts that is enforceable only following an event of default, insolvency or bankruptcy of the Bank or the counterparties or following other predetermined events. In addition, the Bank does not intend to settle on a net basis or to realize the assets and settle the liabilities simultaneously. The Bank receives and gives collateral in the form of cash, debt and equity securities in connection with the following transactions: · Derivatives; · Repurchase agreements and reverse repurchase agreements; and · Securities lending and borrowing agreements. Such collateral is subject to standard industry terms including, when appropriate, an ISDA Credit Support Annex. This means that securities received/given as collateral can be pledged or sold during the term of the transaction but have to be returned on maturity of the transaction. The terms also give each party the right to terminate the related transactions on the counterparty’s failure to post collateral. The following financial assets are subject to offsetting, enforceable master netting arrangements and similar agreements: As at December 31, 2016 Amount not offset in the consolidated balance sheet Gross amount of Net amount of financial liabilities financial assets offset in the presented in the Gross amount of consolidated balance consolidated Impact of Master Financial instrument Cash Net financial assets sheet balance sheet Netting Agreements collateral collateral amount Derivative financial assets 214,910 — 214,910 (151,762) (5,215) (47,821) 10,112 Reverse repurchase agreements 42,340 — 42,340 — (42,360) — (20) Equity instruments (see Note 10.a) 3 — 3 — (3) — — Total 257,253 — 257,253 (151,762) (47,578) (47,821) 10,092 As at December 31, 2017 Amount not offset in the consolidated balance sheet Gross amount of Net amount of financial liabilities financial assets offset in the presented in the Gross amount of consolidated balance consolidated Impact of Master Financial Instrument Cash Net financial assets sheet balance sheet Netting Agreements collateral collateral amount Derivative financial assets 180,377 — 180,377 (116,078) (3,783) (44,971) 15,545 Reverse repurchase agreements 51,705 — 51,705 — (51,693) — 12 Equity instruments (see Note 10.a) 6 — 6 — (7) — (1) Total 232,088 — 232,088 (116,078) (55,483) (44,971) 15,556 The following financial liabilities are subject to offsetting, enforceable master netting arrangements and similar agreements: As at December 31, 2016 Amount not offset in the consolidated balance sheet Gross amount of Net amount of financial assets financial liabilities offset in the presented in the Gross amount of consolidated balance consolidated Impact of Master Financial Instrument Cash Net financial liabilities sheet balance sheet Netting Agreements collateral collateral amount Derivative financial liabilities 219,977 — 219,977 (151,762) (2,670) (51,329) 14,216 — Repurchase agreements 124,525 — 124,525 — (124,949) — (424) Short positions - Securities loans (see Note 11.b) 20,375 — 20,375 — (20,769) — (394) Short positions – Short sales (see Note 11.b) 40,613 — 40,613 — (40,637) — (24) Total 405,490 — 405,490 (151,762) (189,025) (51,329) 13,374 As at December 31, 2017 Amount not offset in the consolidated balance sheet Gross amount of Net amount of financial assets financial liabilities offset in the presented in the Gross amount of consolidated balance consolidated Impact of Master Financial instrument Cash Net financial liabilities sheet balance sheet Netting Agreements collateral collateral amount Derivative financial liabilities 182,373 — 182,373 (116,078) (2,822) (34,454) 29,019 Repurchase agreements 110,149 — 110,149 — (110,337) — (188) Short positions - Securities loans (see Note 11.b) 21,132 — 21,132 — (21,555) — (423) Short positions - Short sales (see Note 11.b) 46,233 — 46,233 — (46,221) — 12 Total 359,887 — 359,887 (116,078) (180,935) (34,454) 28,420 |
Impairment of financial assets | g) Impairment of financial assets i. Definition Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the end of each reporting period. A financial asset is considered to be impaired and therefore its carrying amount is adjusted to reflect the effect of impairment when there is objective evidence that events have occurred which: In the case of loans and advances and debt instruments, give rise to an adverse impact on the future cash flows that were estimated at the initial recognition. In the case of equity instruments, indicate that their carrying amount may not be fully recovered. The carrying amount of impaired financial assets is adjusted with a charge to the consolidated income statement during the period in which the impairment becomes evident, and the reversal, if any, of previously recognized impairment losses is recognized in the consolidated income statement during the period in which the impairment is reversed or reduced. The Bank applies the following criteria to classify loans and advances as impaired loans: Commercial, financial and industrial loans Loans with a single payment of principal and interest (non-amortizing loans), generally commercial loans for a short period of time, are considered impaired after 90 days of the maturity date. Loans with a single payment of principal at maturity and with periodic interest payments (interest-only loans) are considered impaired after 90 days principal or interest become due. Loans whose principal and interest payments have been agreed in periodic installments (amortizing loans) are considered impaired after 90 days an installment becomes due. Mortgage loans Mortgage loans are considered impaired when a payment is past due more than 90 days (see Note 2.h.). Installment loans to individuals Revolving consumer credit cards loans are considered impaired when payment is not received after 90 days it becomes due. Non-revolving consumer loans whose principal and interest payments have been agreed in periodic installments are considered impaired after 90 days an installment becomes due. If the borrower is declared bankrupt in accordance with the Mexican Commercial Bankruptcy Law. The Bank considers also as impaired loans the sum of all transactions of a customer when the loan balances of the same customer classified as impaired are more than 20% of the total outstanding amounts. Loans and advances which are not impaired due to default but for which there are reasonable doubts about their full repayment (principal and interest) according to its contractual terms are considered impaired loans. This analysis includes, among others: customers in situations involving deterioration in their creditworthiness, such as negative equity, continued losses, general delay in payments, inadequate economic or financial structure, insufficient cash flows to settle debt or inability to obtain additional financing, etc. Impaired loans, which are renegotiated will remain impaired until there is evidence of sustained payment, i.e., performance of payment by the borrower without payment delay for the total amount due and payable in terms of principal and interest during a certain period of time. With regard to uncollected accrued interest on impaired loans, the Bank creates an allowance for the total amount of the uncollected accrued interest considered to be non recoverable at the time the loans are classified as impaired loans. The entire loan balance relating to impaired assets continue to be recognized on the consolidated balance sheet, for their full amounts, until the recovery of any recognized amount is considered to be unlikely. The recovery of a loan is considered to be unlikely when there is a significant and irreversible deterioration of the borrower’s overall financial condition, resources, value of any guarantees and payment record which would lead a borrower to bankruptcy. When the recovery of a loan is considered to be unlikely, it is written off together with the corresponding allowance for impairment losses from the consolidated balance sheet without prejudice to any actions that the consolidated entities may initiate to seek collection until their contractual rights are extinguished due to the expiration of the statute-of-limitations period, forgiveness or any other cause. Loans and the related allowance for impairment losses are normally written off considering the following: Commercial, financial and industrial loans are evaluated on a case-by-case basis; as such, write-off will only take place after considering all relevant information such as the occurrence of a significant change in the borrower’s financial position, guarantees and collaterals and payment records. Within this portfolio, small and medium-sized enterprises (SMEs) loans and revolving SMEs loans are written off when the loans become 181 and 151 days past due, respectively. Mortgage loans are written off when they have been past due for 36 months. For installment loans to individuals, any portion of the balance that the Bank does not expect to collect is generally written off at 151 days past due for revolving consumer credit card loans and 181 days past due for other non-revolving consumer loans. In the event of bankruptcy or similar proceedings, write-off may occur earlier than at the periods stated above. Collections procedures may continue after write-off. ii. Financial instruments carried at amortized cost The amount of an impairment loss incurred on a financial instrument carried at amortized cost is equal to the difference between its carrying amount and the present value of its estimated future cash flows and is presented as a reduction of the balance of the corresponding asset. In estimating the future cash flows of financial instruments, the following factors are taken into account: All the amounts that are expected to be received over the remaining life of the instrument, including, where appropriate, those that 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 past due interest receivable; The various types of risk to which each instrument is subject; and The circumstances in which collections will foreseeably be made. These cash flows are subsequently discounted using the instrument’s effective interest rate (if its contractual rate is fixed) or the effective contractual rate at the discount date (if it is variable). Impairment losses resulting from insolvency of the customers (credit risk) are recognized when there is objective evidence of impairment of the customer’s ability to pay, either because it is past due or for other reasons. The Bank has certain policies, methods and procedures for covering its credit risk arising from insolvency of counterparties. These policies, methods and procedures are applied in the granting, examination and documentation of credit risk, contingent liabilities and commitments and credit risk from debt instruments, the identification of their impairment and the calculation of the amounts required to cover the related credit risk. In order to classify the customers for assessing the impairment losses resulting from credit risk, the Bank distinguishes between: a) Individually significant customers which present objective evidence of impairment, b) Individually significant customers which do not present objective evidence of impairment, and c) Non-individually significant customers. The Bank has defined as an “individually significant customer” those customers with a total current risk exposure amounting more than 8 million pesos. This threshold is reviewed annually to adapt it to the Bank’s business circumstances. Objective evidence of impairment exists when an individually significant customer is in the following situations: Classified as impaired (more than 90 days in default). Shows signs of impairment although not in default, inter alia, restructured loans, loans under special surveillance and loans with reasonable doubt about their full repayment. Objective evidence of impairment exists when a non-individually significant customer is in the following situations: Classified as impaired (more than 90 days in default). Classified as restructured loans. Once the Bank has classified its customers according to the above, loan portfolios are assessed for impairment individually and collectively in order to recognize an allowance for impairment losses arising from credit risk, as follows: Individualized analysis Credit losses individually assessed are determined by calculating the present value of expected cash flows discounted at an appropriate discount rate of those individually significant customers presenting objective evidence of impairment considering the debtor’s financial situation and any guarantees in place. The Bank takes into account all available information (external or internal), including expert judgment, to estimate the present value of expected cash flows. Collective analysis Credit losses collectively assessed are determined for those individually significant customers that do not present an objective evidence of impairment and for those customers that are not individually significant. Credit losses are estimated taking into consideration the historical impairment loss experience at the time of assessment adjusted to reflect current economic conditions and taking into account the characteristics of the counterparty and the guarantees and collateral associated with the transaction. Customers assessed collectively are grouped together considering financial instruments having similar credit risk characteristics indicative of the debtors’ ability to pay all principal and interest amounts in accordance with contractual terms. The credit risk characteristics considered for the purpose of grouping the financial assets are, inter alia, instrument type, debtor’s industry, type of guarantee or collateral, age of past due amounts and any other relevant factor for the estimation of future cash flows. Impairment losses are determined by multiplying four factors: EAD, PD, LGD and the LIP. The EAD is the amount of risk exposure at the date of default (more than 90 days of default) by the counterparty. It is estimated as the drawn amount and the undrawn risk multiplied by a credit conversion factor (hereinafter, CCF) which represents the percentage of undrawn balance that is expected to be used before default occurs. The PD is the probability of the counterparty failing to meet its principal and/or interest payment obligations. The PD has been defined as the probability that an operation accumulates more than 90 days past due. The Bank uses transition models to determine PD (from a non-default to a default status) in which loans are segmented into bucket classifications primarily based on the number of days past due and statistical analysis is applied to estimate the probability that loans will migrate through this status. These transition models are based on historical data gathered over a two-year period. The LGD is the loss arising in the event of default. It depends on the guarantees and collateral associated with the transaction. The LIP parameter is the time between the moment when the event giving rise to a certain loss occurs and when that loss is identified at an individual level. LIP analysis is performed on the basis of homogeneous risk portfolios. This parameter is only determined and used to calculate credit losses for customers, which do not present objective evidence of impairment. The methodology for determining the allowance for impairment losses also seeks to identify the amount of incurred losses as of the consolidated balance sheet date of loans and receivables that have not yet been reported as impaired, but that the Bank estimates based on its past history or other quantitative factors that the loss event has already occurred. As part of this methodology, Management also considers qualitative factors that are probable to cause estimated credit losses associated with the Bank’s loan portfolio to differ from historical loss experience, such as changes in GDP, unemployment rate, housing prices, interest rates, IPC, etc., in order to adjust this historical loss experience to reflect current economic and market conditions as of the date of the consolidated financial statements. The Bank estimates probable losses for off-balance sheet risk related to unfunded lending commitments such as available credit on lines of credit, credit cards and non-revolving consumer loans. The process to determine the provisions for off-balance sheet risk is similar to the methodology used for allowance for impairment losses for loans and receivables as described above. Allowance for impairment losses related to the loan portfolio is reported as a reduction to the carrying amount of the loans and receivables whereas the provision for unfunded lending commitments is reported separately as liabilities on the consolidated balance sheet in Provisions for off-balance sheet risk. Impairment losses related to the loan portfolio and commitments is reported in the consolidated income statement as Impairment losses on financial assets (net) – Loans and receivables and Provisions (net), respectively. |
Change in accounting estimates | h) Change in accounting estimates Allowance for impairment losses During 2015, the Bank revised its estimates for allowance for impairment losses on loans and receivables of all loan portfolios and for the provision for off-balance sheet risk with the purpose of making certain refinements to the impairment models as part of its policy to continuously enhance the existing impairment models and accounting estimates. The main refinements made to the impairment models in order to provide a greater level of precision of incurred losses are the following: Specific and objective guidelines to classify customers according to their total current risk exposure (individually significant customers – see Note 2.g.) and deterioration in creditworthiness (objective evidence of impairment – see Note 2.g.), aligning such factors with credit risk management. Finer segmentation of loans in groups with similar credit risk characteristics. More detailed historical data for the determination of certain inputs or variables (PD, LGD, LIP and CCF – see Note 2.g.) used to calculate the allowance for impairment losses and the provisions for off-balance sheet risk. Conformed definition of impaired assets with the aim of making it consistent across all the loan portfolios when determining the allowance for impairment losses (see Note 2.g.). The change in accounting estimates did not have a material impact on the net loan portfolio as of December 31, 2015, on the provision for off-balance sheet risk as of December 31, 2015 and in the profit for the year then ended. However, the change resulted in a net decrease in the allowance for impairment losses of 176 million pesos, a net decrease in the provision for off-balance sheet risk of 436 million pesos, a decrease in impaired assets of 438 million pesos and an increase in the profit for the year of 428 million pesos. Management considered that it was impracticable to estimate the effect on forthcoming periods of this change in accounting estimates due to the fact that the Bank could not reliably determine all the necessary inputs and factors to calculate this effect, such as risk exposure, PD, LGD, LIP, qualitative factors, etc. Useful lives for automated teller machines During 2016, the Bank revised its estimates for useful lives of automated teller machines (ATM) recognized within Tangible Assets in the consolidated balance sheet. The review performed by the Bank was based on the acquired observable experience and the economic benefits obtained by the use of ATMs. The Bank determined that the period over which ATMs is expected to be available for use and to generate economic benefits is 8 years instead of 4 years. The change in the aforementioned accounting estimates did not have a material impact on Tangible assets as of December 31, 2016 and in the profit for the year then ended. However, the change in the useful lives of ATMs resulted in a decrease in the depreciation charge recognized in the consolidated income statement of 2016 of 49 million pesos. Management considered that it was impracticable to estimate the effect on forthcoming periods of this change in accounting estimates due to the fact that the Bank could not reliably determine the number of ATMs that would be acquired. |
Repurchase agreements and reverse repurchase agreements | i) Repurchase agreements and Reverse repurchase agreements Purchases of financial instruments under a non-optional resale agreement are measured at fair value and recognized as assets in the consolidated balance sheet under Loans and advances to credit institutions – Reverse repurchase agreements or Loans and advances to customers – Reverse repurchase agreements. The excess of the purchase prices over the resale prices are recognized as interest income over the contract term. Sales of financial instruments under a non-optional repurchase agreement are measured at fair value and recognized as liabilities in the consolidated balance sheet under Deposits from the Central Bank – Repurchase agreements, Deposits from credit institutions – Repurchase agreements or Customer deposits – Repurchase agreements. The excess of the sales prices over the repurchase prices are recognized as interest expense over the contract term. Repurchase agreements are designated as financial instruments at FVTPL when this designation eliminates or significantly reduces an accounting mismatch or when they are managed and its performance is evaluated on a fair value basis. |
Non-current assets and Liabilities associated with non-current assets held for sale | j) Non-current assets held for sale and liabilities associated with non-current assets held for sale Non-current assets held for sale include the carrying amount of individual items, disposal groups or items forming part of a business unit earmarked for disposal (discontinued operations), whose sale in their present condition is highly likely to be completed within one year from the reporting date. Therefore, the carrying amount of these items, which may or may not be of a financial nature, will likely be recovered through the proceeds from their disposal. Specifically, property or other non-current assets (foreclosed assets) received by the Bank as total or partial settlement of their debtors’ payment obligations to them are deemed to be non-current assets held for sale, unless the Bank has decided to make continuing use of these assets. Liabilities associated with non-current assets held for sale include the balances payable arising from the assets held for sale or disposal groups and from discontinued operations. Non-current assets held for sale are measured at the lower of fair value less costs to sell and their carrying amount at the date of classification in this category. Non-current assets held for sale are not depreciated as long as they remain in this category. Impairment losses on an asset or disposal group arising from a reduction in its carrying amount to its fair value (less costs to sell) are recognized under Gains/(losses) on disposal of non-current assets held for sale not classified as discontinued operations (net) in the consolidated income statement. The gains on a non-current asset held for sale resulting from subsequent increases in fair value (less costs to sell) increase its carrying amount and are recognized in the consolidated income statement up to an amount equal to the impairment losses previously recognized. |
Tangible assets | k) Tangible assets Tangible assets include the amount of buildings, land, furniture, vehicles, computer hardware and other fixtures owned by the Bank or acquired under finance leases. Property, plant and equipment for own use Property, plant and equipment for own use are presented at acquisition cost, less the related accumulated depreciation and any estimated impairment losses (excess of carrying amount over the recoverable amount). Depreciation is calculated using the straight-line method on the basis of the acquisition cost of the assets less their residual value. The land on which the buildings and other structures stand has an indefinite life and therefore is not depreciated. The period tangible asset depreciation charge is recognized in the consolidated income statement and is calculated using the following depreciation rates (based on the average years of estimated useful life of the various assets): Average Annual Rate Buildings for own use 2% to 5% Furniture and vehicles 10% to 20% IT equipment and fixtures 25% Others 5% to 20% The Bank assesses at the reporting date whether there is any indication that a tangible asset may be impaired (i.e., its carrying amount exceeds its recoverable amount). If this is the case, the carrying amount of the tangible asset is reduced to its recoverable amount and future depreciation charges are adjusted in proportion to the revised carrying amount and to the new remaining useful life (if the useful life has to be re-estimated). Similarly, if there is an indication of a recovery in the value of a tangible asset, the Bank recognizes the reversal of the impairment loss recognized in prior periods and adjusts the future depreciation charges accordingly. In no circumstances may the reversal of an impairment loss on a tangible asset raise its carrying amount above that which it would have if no impairment losses had been recognized in prior years. The estimated useful lives of the items of property, plant and equipment for own use are reviewed at least at the end of the reporting period to identify significant changes therein. If changes are identified, the useful lives of the tangible assets are adjusted by correcting the depreciation charge to be recognized in the consolidated income statement in future years on the basis of the new useful lives. Upkeep and maintenance expenses relating to property, plant and equipment for own use are recognized as an expense in the period in which they are incurred, since they do not increase the useful lives of the assets. |
Accounting for leases | l) Accounting for leases Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. i. Operating leases In operating leases, ownership of the leased asset and substantially all the risks and rewards incidental thereto remain with the lessor. When the Bank acts as the lessor, the acquisition cost of the leased assets is presented under Tangible assets in the consolidated balance sheet. The depreciation policy for these assets is consistent with that for similar items of property, plant and equipment for own use, and income from operating leases is recognized on a straight-line basis over the term of the lease under Other operating income in the consolidated income statement. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized on a straight-line basis over the lease term. When the Bank acts as the lessee the lease expenses, including any incentives granted by the lessor, are charged on a straight-line basis over the lease term to Other general administrative expenses in the consolidated income statement. In the event that lease incentives are received to enter into operating leases, such incentives are recognized as a liability. The aggregate benefit of incentives is recognized as a reduction of rental expense on a straight-line basis. ii. Sale and leaseback transactions In sale and leaseback transactions, where the sale is at fair value and the leaseback is an operating lease, any profit or loss is recognized at the time of sale. In the case of finance leasebacks, any profit or loss is amortized over the lease term. In accordance with IAS 17, in determining whether a sale and leaseback transaction results in an operating lease or finance lease, the Bank analyzes, among other things, whether at the inception of the lease there are purchase options whose terms and conditions make it reasonably certain that they will be exercised, and to whom the gains or losses from the fluctuations in the fair value of the residual value of the related asset will accrue. |
Intangible assets | m) Intangible assets Intangible assets are identifiable non-monetary assets (separable from other assets) without physical substance which arise as a result of a legal transaction or which are developed internally by the Bank. Only assets whose cost can be estimated reliably and from which the Bank considers it probable that future economic benefits will be generated are recognized. Intangible assets are recognized initially at acquisition or development cost and are subsequently measured at cost less any accumulated amortization and any accumulated impairment losses. i. Goodwill Any excess of the cost of the investments in the Bank over the corresponding underlying carrying amounts acquired, adjusted at the acquisition date, is allocated as follows: If it is attributable to specific and identifiable 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 acquired entities’ balance sheets. If it is attributable to specific intangible assets, by recognizing such intangible assets 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 CGUs. A CGU 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. Goodwill is only recognized when it has been acquired for consideration and represents, therefore, a payment made by the acquirer in anticipation of future economic benefits from assets of the acquired entity that are not capable of being individually identified and separately recognized. At the end of each reporting period, or whenever there is any indication of impairment, goodwill is reviewed for impairment (i.e., a reduction in its recoverable amount to below its carrying amount) and if there is any impairment, the goodwill is written down with a charge to Impairment losses on other assets (net) – Goodwill in the consolidated income statement. For the purposes of the impairment analysis, goodwill is allocated to one or more CGUs expected to benefit from the synergies arising from business combinations. The CGUs represent the Bank’s smallest identifiable asset groups that generate cash flows for the Bank and that are largely independent of the flows generated from other assets or groups of assets. Each CGU or CGUs to which goodwill is allocated: is the lowest level at which the entity manages goodwill internally; and is not larger than an operating segment. The CGUs to which goodwill has been allocated are tested for impairment by including the allocated goodwill in their carrying amount. This analysis is performed at least annually as of December 31 and more frequently in cases where indicators of impairment are noted by Management. For the purpose of determining the impairment of a CGU to which a part of goodwill has been allocated, the carrying amount of that unit is compared with its recoverable amount. The recoverable amount of a CGU is equal to the higher of the fair value less costs to sell and its value in use. Value in use is calculated as the discounted value of the cash flow projections that the Bank estimates and is based on the latest budgets approved for the next five years. The principal hypotheses are a sustainable growth rate to extrapolate the cash flows indefinitely, and the discount rate used to discount the cash flows is equal to the weighted cost of capital assigned to each CGU. If the carrying amount of the CGU exceeds the related recoverable amount, the Bank recognizes an impairment loss; the resulting loss is apportioned by reducing, first, the carrying amount of the goodwill allocated to that CGU and, second, if there are still impairment losses remaining to be recognized, the carrying amount of the rest of the assets. This is done by allocating the remaining loss in proportion to the carrying amount of each of the assets in the unit. No impairment of goodwill attributable to the minority interests may be recognized. Impairment losses on goodwill are recognized under Impairment losses on other assets (net) - Goodwill and other intangible assets in the consolidated income statement. An impairment loss recognized for goodwill is not reversed in a subsequent period. ii. Other intangible assets Other intangible assets include the amount of identifiable intangible assets (such as computer software). Other intangible assets can have an indefinite useful life - when, based on an analysis of all the relevant factors, it is concluded that there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows for the Bank - or a finite useful life, in all other cases. Intangible assets with indefinite useful lives acquired separately are not amortized and are carried at cost less accumulated impairment losses. At the end of each reporting period or whenever there is any indication of impairment, the Bank reviews the remaining useful lives of the assets in order to determine whether they continue to be indefinite and, if this is not the case, to take the appropriate steps. Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis over their estimated useful lives. The estimated useful lives are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. The intangible asset amortization charge is recognized under Depreciation and amortization in the consolidated income statement. Intangible assets acquired in a business combination and recognized separately from goodwill are initially recognized at their fair value at the acquisition date (which is regarded as their cost). Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less accumulated amortization and accumulated impairment losses, on the same basis as intangible assets that are acquired separately. An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognized in the consolidated income statement when the asset is derecognized. Impairment charges are included in Impairment losses on other assets (net) – Other intangible assets in the consolidated income statement. The criteria used to recognize the impairment losses on these assets and, where applicable, the reversal of impairment losses recognized in prior years, are similar to those used for tangible assets (see Note 2.k.). |
Provisions and contingent assets and liabilities | n) Provisions and contingent assets and liabilities When preparing the consolidated financial statements of the Bank, Management distinguishes between Provisions: credit balances covering present obligations at the reporting date arising from past events which could give rise to a loss for the Bank, which is considered to be more likely than not 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 Bank. They include the present obligations of the Bank when it is not probable that an outflow of resources embodying economic benefits will be required to settle them. 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 Bank. 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 The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. The Bank’s consolidated financial statements include all the material provisions with respect to which it is considered that it is more likely than not that the obligation will have to be settled. In accordance with IFRS, contingent liabilities must not be recognized in the consolidated financial statements, but must rather be disclosed in the notes. Provisions are reviewed and adjusted at the end of each year. Provisions are also used to cater for the specific obligations for which they were originally recognized. Provisions are fully or partially reversed when such obligations cease to exist or are reduced. Provisions are classified according to the obligations covered as follows: Provisions for pensions and similar obligations: includes the amount of all the provisions made to cover post-employment benefits, including obligations to pre-retirees and similar obligations. Provisions for tax and legal matters: include the amount of the provisions recognized to cover tax and legal obligations. Provisions for off-balance sheet risk: include the amount of the provisions made to cover obligations arising as the result of those transactions in which the Bank guarantees the obligations of a third party arising as a result of financial guarantees granted or other contracts and unfunded lending commitments such as letters of credit, financial guarantees and available lines of credit cards and non-revolving consumer loans, which are irrevocable commitments that may give rise to the recognition of financial assets. Other provisions: include the amount of other provisions recognized by the Bank (see Note 24). |
Litigation and/or claims in process | o) Litigation and/or claims in process At the end of 2016 and 2017, certain litigation and claims were in process against the Bank arising from the ordinary course of their operations (see Note 24). |
Share-based payments | p) Share-based payments For share-based payment transactions, the goods or services received are measured as an equity-settled share-based payment transaction when the awards granted are the Bank’s own equity instruments. In all other circumstances, the goods or services received by the Bank are measured as a cash-settled share-based payment transaction. Equity-settled shared-based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date. The fair value determined at the grant date of the equity-settled shared-based payments is expensed on a straight-line basis over the vesting period, based on the Bank’s estimate of equity instruments that wil eventually vest, with a corresponding increase in consolidated equity. At the end of each reporting period, the Bank revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognized in the consolidated income statement such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to Accumulated reserves in consolidated equity. For cash-settled share-based payments to employees and others providing similar services, the services acquired and the liability incurred are measured at the fair value of the liability. The fair value determined at the grant date of the cash-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Bank’s estimate of equity instruments that will eventually vest, with a corresponding increase in liability. At the end of each reporting period, the Bank revises its estimate of the number of equity instruments expected to vest. Until the liability is settled, the fair value of the liability is remeasured at the end of each reporting period and at the date of settlement, with any changes in fair value recognized in the consolidated income statement for the year. The services received and the liability to pay for those services are recognized as the employees render service. Share-based payments are discussed in Note 41.b, c and d. |
Recognition of income and expenses | q) Recognition of income and expenses The most significant criteria used by the Bank to recognize its income and expenses are summarized as follows: i. Interest income, interest expenses and similar items Interest income, interest expenses and similar items are generally recognized on an accrual basis using the effective interest method. Dividends received from other companies are recognized as income when the Bank’s right to receive them arises. ii. Fee and commission income and expenses Fee and commission income and expenses are recognized in the consolidated income statement using criteria that vary according to their nature. The main criteria are as follows: - Fee and commission income and expenses relating to financial assets and financial liabilities measured at FVTPL are recognized when received or 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. iii. Non-finance income and expenses These are recognized for accounting purposes on an accrual basis. iv. Deferred collections and payments These are recognized for accounting purposes at the amount resulting from discounting the expected cash flows at market rates. v. Loan arrangement fees Loan arrangement fees that are an integral part of the effective interest rate of a financial instrument, mainly loan origination fees, are accrued and recognized in income over the term of the loan as a part of the effective interest method. |
Financial guarantees | r) Financial guarantees Financial guarantees are defined as contracts whereby an entity undertakes to make specific payments on behalf of a third party if the latter fails to do so, irrespective of the various legal forms they may have, such as guarantees, insurance policies or credit derivatives. The Bank initially recognizes the financial guarantees provided on the liability side of the consolidated balance sheet at fair value, which is generally the present value of the fees, commissions and interest receivable from these contracts over the term thereof. Financial guarantee contracts issued by the Bank and, if not designated as at FVTPL, are subsequently measured at the higher of: · the amount of the obligation under the contract, as determined in accordance with IAS 37; and · the amount initially recognized less, where appropriate, cumulative amortization recognized in accordance with the revenue recognition policies. Financial guarantees, regardless of the guarantor, instrumentation or other circumstances, are reviewed periodically to determine the credit risk to which they are exposed and, if appropriate, to consider whether a provision is required. The credit risk is determined by application of criteria similar to those established for quantifying impairment losses on financial instruments carried at amortized cost (described in Note 2.g. above). The provisions made for these transactions are recognized under Provisions for off-balance sheet risk in the consolidated balance sheet (see Note 24). These provisions are recognized and reversed with a charge or credit, respectively, to Provisions (net) in the consolidated income statement. If a specific provision is required for financial guarantees, the related unearned commissions recognized under Financial liabilities at amortized cost - Other financial liabilities in the consolidated balance sheet are reclassified to the appropriate provision. |
Post-employment benefits | s) Post-employment benefits The Bank’s post-employment obligations to its employees are deemed to be defined contribution plans when the Bank makes pre-determined contributions to a separate entity and will have no legal or effective obligation to make further contributions if the separate entity cannot pay the employee benefits relating to the service rendered in the current and prior periods. Post-employment obligations that do not meet the aforementioned conditions are classified as defined benefit plans (see Note 24.c.). Defined contribution plans The contributions made in this connection in each year are recognized under Personnel expenses in the consolidated income statement. The amounts not yet contributed at each year-end are recognized under Provisions - Provision for pensions and similar obligations on the liability side of the consolidated balance sheet. Defined benefit plans The Bank recognizes under Provisions - Provision for pensions and similar obligations on the liability side of the consolidated balance sheet (or under Other assets on the asset side, as appropriate) the present value of its defined benefit post-employment obligations, net of the fair value of the plan assets. Plan assets are defined as those that will be directly used to settle obligations and that meet the following conditions: They are not owned by the Bank, but by a legally separate third party that is not a party related to the Bank. They are only available to pay or fund post-employment benefits and they cannot be returned to the Bank unless the assets remaining in the plan are sufficient to meet all the benefit obligations of the plan and of the Bank to current and former employees, or they are returned to reimburse employee benefits already paid by the Bank. Post-employment benefits are recognized as follows: Service cost is recognized in the consolidated income statement and includes the following items: Current service cost, i.e., the increase in the present value of the obligations resulting from employee service in the current period, is recognized under Personnel expenses. The past service cost, which arises from changes to existing post-employment benefits or from the introduction of new benefits and includes the cost of reductions, is recognized under Provisions (net). Any gain or loss arising from plan settlements is recognized under Provisions (net). Net interest on the net defined benefit liability (asset), i.e., the change during the period in the net defined benefit liability (asset) that arises from the passage of time, is recognized under Interest expense and similar charges (Interest and similar income if it constitutes income) in the consolidated income statement. The remeasurement of defined benefit obligation is recognized in the consolidated other comprehensive income and includes: Actuarial gains and losses generated in the year, arising from the differences between the previous actuarial assumptions and what has actually occurred and from the effects of changes in actuarial assumptions. The return on plan assets, excluding amounts included in net interest on the net defined benefit liability (asset). Any change in the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability (asset). Further details about post-employment benefits are given in Note 24.c. |
Income tax | t) Income tax Income tax expense represents the sum of the tax currently payable and deferred tax. Current tax Income tax or ISR is recognized in profit for the year in which they are incurred. The ISR currently payable is based on taxable profit for the year. Taxable profit differs from Operating profit before tax as reported in the consolidated income statement because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Bank’s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. Deferred tax Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognized if the temporary difference arises from the initial recognition of goodwill. Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Bank is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the near future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the near future. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax assets and liabilities reflects the tax consequences that would follow from the way in which the Bank expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities Current and deferred tax for the year Current and deferred tax are recognized in the consolidated income statement, except when they relate to items that are recognized in the consolidated other comprehensive income or directly in consolidated equity, in which case, the current and deferred tax are also recognized in the consolidated other comprehensive income or directly in consolidated equity, respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination. |
Remaining maturity periods and average interest rates | u) Remaining maturity periods and average interest rates The analysis of the maturities of the balances of certain items in the consolidated balance sheet at 2016 and 2017 year-end is provided in Note 44. |
Segment reporting | v) Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker. The Chief Operating Decision Maker (CODM), who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the CEO. |
Dividend distribution | w) Dividend distribution Dividend distributions to the Bank’s shareholders are recognized as a liability in the Bank’s consolidated financial statements in the period in which the dividends are proposed by the Board of Directors and approved by the Bank’s shareholders. |
Treasury shares | x) Treasury shares Own equity instruments that are reacquired (treasury shares) are recognized at cost and deducted from equity. No gain or loss is recognized in the consolidated income statement on the purchase, sale, issue or cancellation of the Bank’s own equity instruments. Any difference between the carrying amount and the consideration, if reissued, is recognized under Accumulated reserves in consolidated equity. |
Consolidated statements of cash flows | y) Consolidated statement of cash flows The following terms are used in the consolidated statements of cash flows with the meanings specified: · Cash flows: inflows and outflows of cash and cash equivalents, which are short-term, highly liquid investments that are subject to an insignificant risk of changes in value, irrespective of the portfolio in which they are classified. The Bank classifies as cash and cash equivalents the balances recognized under Cash and balances with the Central Bank in the consolidated balance sheet. · 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. |
Consolidated income statement and other comprehensive income | z) Consolidated income statement and other comprehensive income This consolidated statement presents the income and expenses generated by the Bank as a result of its business activity in the year, and a distinction is made between the income and expenses recognized in the consolidated income statement for the year and the other income and expenses recognized directly in consolidated equity. Accordingly, this consolidated statement presents: a. Profit for the year. b. The net amount of the income and expenses recognized directly to consolidated equity under Valuation adjustments that will not be reclassified subsequently to the consolidated income statement. c. The net amount of the income and expenses recognized directly to consolidated equity under Valuation adjustments that may be reclassified subsequently to the consolidated income statement when certain conditions are met. d. The income tax incurred in respect of the items indicated in b) and c) above, except for the valuation adjustments arising from investments in associates or jointly controlled entities accounted for using the equity method, which are presented net. e. Total consolidated comprehensive income, calculated as the sum of a) to d) above, presenting separately the amount attributable to the Parent and the amount relating to non-controlling interests. The amount of the income and expenses relating to entities accounted for using the equity method recognized directly in consolidated equity is presented in this consolidated statement, irrespective of the nature of the related items, under Entities accounted for using the equity method. This consolidated statement presents the items separately by nature, grouping together items that, in accordance with the applicable IFRS, will not be reclassified subsequently to the consolidated income statement since the requirement established by the corresponding accounting standards are met. |
Consolidated statement of changes in total equity | aa) Consolidated statement of changes in total equity This consolidated statement presents all the changes in consolidated equity, including the adjustments in the opening balance on Accumulated reserves arising from changes in accounting policies and from the correction of errors. Accordingly, this consolidated statement presents a reconciliation of the carrying amount at the beginning and end of the year of all the consolidated equity items, and the changes are grouped together based on their nature into the following items: a. Adjustments in the opening balance on Accumulated reserves due to changes in accounting policies and from the correction of errors: include those in consolidated equity arising as a result of the retrospective restatement of the balances in the consolidated financial statements, distinguishing between those resulting from changes in accounting policies and those relating to the correction of errors. b. Income and expense recognized in the year: includes, in aggregate form, the total of the aforementioned items recognized in the consolidated income statement. Other changes in consolidated equity: include the remaining items recognized in consolidated equity, including, inter alia, increases and decreases in share capital, distribution of profit, transactions involving own equity instruments (treasury shares), transfers between equity items and any other increases or decreases in consolidated equity. |
Accounting policies (Tables)
Accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting policies | |
Summary of fair values of financial assets and liabilities classified on the basis of various measurement methods | 12/31/2016 12/31/2017 Published Published Price Price Quotations Quotations in Active in Active Markets – Internal Markets – Internal Level 1 Models Total Level 1 Models Total ASSETS: Financial assets held for trading 139,869 202,713 342,582 147,784 167,786 315,570 Other financial assets at fair value through profit or loss — 42,340 42,340 — 51,705 51,705 Available-for-sale financial assets 139,466 15,178 154,644 164,999 743 165,742 Hedging derivatives — 15,003 15,003 — 15,116 15,116 279,335 275,234 554,569 312,783 235,350 548,133 LIABILITIES: Financial liabilities held for trading 166 266,662 266,828 620 239,105 239,725 Other financial liabilities at fair value through profit or loss — 136,860 136,860 — 120,653 120,653 Hedging derivatives — 14,287 14,287 — 11,091 11,091 166 417,809 417,975 620 370,849 371,469 |
Schedule of financial instruments at fair value whose measurement was based on internal models (Levels 2 and 3) | Set forth below are the financial instruments at fair value whose measurement was based on internal models (Level 2 and 3) at December 31, 2016 and 2017. Fair Fair Values Values Calculated Calculated Using Internal Using Internal Valuation Techniques Key Inputs Models at Models at 12/31/2016 12/31/2017 Level 2 Level 3 Total Level 2 Level 3 Total ASSETS: Financial assets held for trading: 202,541 172 202,713 167,535 251 167,786 Debt instruments 2,697 172 2,869 2,593 — 2,593 Forward Estimation (non closed formula) Interest rate yield curve Trading derivatives: Interest rate options 1,698 — 1,698 1,339 — 1,339 Black model (closed-form solution) Interest rate yield curve and implied volatility surface. Market index options: 871 — 871 581 — 581 European options 839 — 839 548 — 548 Black-Scholes model (closed-form solution) Interest rate yield curves, quoted equity prices and index levels, implied volatility surface and dividends estimation. Asian (Single underlying Quanto) 20 — 20 18 — 18 Local volatility model with partial differential equation method Interest rate yield curves, quoted equity prices and index levels, implied volatility surface, historical correlations and dividends estimation. Best of options (Basket) 12 — 12 15 — 15 Local volatility model with Monte Carlo method Interest rate yield curves, equity prices and index levels, implied volatility surface, historical correlations and dividends estimation Exchange rate options: 383 — 383 1,885 172 2,057 American forwards 6 — 6 23 — 23 Black and Scholes model with trinomial tree method Interest rate yield curves, quoted exchange rates and implied volatility surface American Barrier & Touch options — — — 39 — 39 Mixed volatility model with partial differential equation method Interest rate yield curves, quoted exchange rates and implied volatility surface European options 377 — 377 1,823 172 1,995 Black-Scholes model (closed-form solution) Interest rate yield curves, quoted exchange rates and implied volatility surface Swaps 190,199 — 190,199 155,799 23 155,822 Forward Estimation (non-closed formula) Interest rate yield curve and quoted exchange rates Index and securities futures 3 — 3 93 — 93 Forward Estimation (non-closed formula) Interest rate yield curve and quoted exchange rates Interest rate futures 6 — 6 — — — Forward Estimation (non-closed formula) Interest rate yield curve Exchange rate futures 6,684 — 6,684 5,245 56 5,301 Forward Estimation (non-closed formula) Interest rate yield curve and quoted exchange rates Other financial assets at fair value through profit or loss: 42,340 — 42,340 51,705 — 51,705 Loans and advances to credit institutions – Reverse repurchase agreements 37,831 — 37,831 46,087 — 46,087 Forward Estimation (non-closed formula) Interest rate yield curve Loans and advances to customers – Reverse repurchase agreements 4,509 — 4,509 5,618 — 5,618 Forward Estimation (non-closed formula) Interest rate yield curve Financial assets available-for-sale: 15,178 — 15,178 743 — 743 Debt instruments 15,083 — 15,083 675 — 675 Forward Estimation (non-closed formula) Interest rate yield curve Equity instruments 95 — 95 68 — 68 Other Value of shareholders’ equity Hedging derivatives: 15,003 — 15,003 15,116 — 15,116 Swaps 15,003 — 15,003 12,727 — 12,727 Forward Estimation (non-closed formula) Interest rate yield curve and quoted exchange rates Exchange rate forwards — — — 2,389 — 2,389 Forward Estimation (non-closed formula) Interest rate yield curve and quoted exchange rates 275,062 172 275,234 235,099 251 235,350 Fair Fair Values Values Calculated Calculated Using Internal Using Internal Models at Models at Valuation 12/31/2016 12/31/2017 Techniques Key Inputs Level 2 Level 3 Total Level 2 Level 3 Total LIABILITIES: Financial liabilities held for trading: 266,662 — 266,662 238,747 358 239,105 Trading derivatives: Interest rate options 1,904 — 1,904 1,197 — 1,197 Black model (closed-form solution) Interest rate yield curve and implied volatility surface. Market index options: 340 — 340 298 — 298 European 69 — 69 163 — 163 Black-Scholes model (closed-form solution) Interest rate yield curves, quoted equity prices, index levels, implied volatility surface and dividends estimation. Auto-callable 264 — 264 129 — 129 Local volatility model with partial differential equation method Interest rate yield curves, quoted equity prices and index levels, implied volatility surface, historical correlations and dividends estimation. Asian (Single underlying Quanto) 7 — 7 6 — 6 Local volatility model with partial differential equation method Interest rate yield curves, quoted equity prices and index levels, implied volatility surface, historical correlations and dividends estimation. Exchange rate options: 573 — 573 2,397 198 2,595 American forwards 116 — 116 53 — 53 Black and Scholes model with trinomial tree method Interest rate yield curves, quoted exchange rates and implied volatility surface European options 431 — 431 2,238 198 2,436 Black-Scholes model with (closed-formula solution) Interest rate yield curves, quoted exchange rates and implied volatility surface American barrier and touch options 9 — 9 47 — 47 Mixed volatility model with partial differential equation method Interest rate yield curves, quoted exchange rates and implied volatility surface American options 17 — 17 59 — 59 Black-Scholes model (closed-form solution) Interest rate yield curves, quoted exchange rates and implied volatility surface Swaps 196,485 — 196,485 161,389 — 161,389 Forward Estimation (non- closed formula solution) Interest rate yield curvescurve and quoted exchange rates Index and securities futures 4 — 4 90 — 90 Forward Estimation (non closed formula) Interest rate yield curves,curve and quoted equity and index levels exchange rates Interest rate futures 28 — 28 — — — Forward Estimation (non closed formula) Interest rate yield curve Exchange rate futures 6,190 — 6,190 4,933 160 5,093 Forward Estimation (non closed formula) Interest rate yield curve and quoted exchange rates . Short positions: Debt instruments 61,138 — 61,138 68,443 — 68,443 Forward Estimation (non- closed formula solution) Interest rate yield curve Other financial liabilities at fair value through profit or loss: 136,860 136,860 120,653 120,653 Deposits from the Central Bank – Repurchase agreements 15,479 — 15,479 22,417 — 22,417 Forward Estimation (non closed formula) Interest rate yield curve Deposits from credit institutions – Repurchase agreements 25,155 — 25,155 5,942 — 5,942 Forward Estimation (non closed formula) Interest rate yield curve Customer deposits – Repurchase agreements 83,891 — 83,891 81,790 — 81,790 Forward Estimation (non closed formula) Interest rate yield curve Marketable debt securities 12,335 — 12,335 10,504 — 10,504 Present value (non-closed formula solution) and Black-Sholes model with closed-formula solution. Interest rate yield curve, quoted equity prices and index levesl, implied volatility surface, historical correlations and dividens estimation Hedging derivatives: 14,287 — 14,287 11,091 — 11,091 Swaps 7,969 — 7,969 10,370 — 10,370 Forward Estimation (non closed formula) Interest rate yield curve and quoted exchange rates Exchange rate forwards 6,318 — 6,318 721 — 721 Forward Estimation (non closed formula) Interest rate yield curve and quoted exchange rates 417,809 — 417,809 370,491 358 370,849 |
Schedule of changes in financial assets classified as Level 3 | Assets Debt and Equity Trading Instruments derivatives Total Balance at January 1, 2015 903 — 903 Total gains/losses recognized in the consolidated income statement: Gains/(losses) on financial assets and liabilities (net) 13 — 13 Purchases 1 — 1 Sales (647) — (647) Settlements (51) — (51) Balance at December 31, 2015 219 — 219 Total gains/losses recognized in the consolidated income statement: Gains/(losses) on financial assets and liabilities (net) 73 — 73 Purchases — — — Sales (102) — (102) Settlements (18) — (18) Balance at December 31, 2016 172 — 172 Total gains/losses recognized in the consolidated income statement: Gains/(losses) on financial assets and liabilities (net) (13) 91 78 Purchases — — — Sales (143) — (143) New issuances — 160 160 Settlements (16) — (16) Balance at December 31, 2017 — 251 251 Liabilities Debt and Equity Trading Instruments derivatives Total Balance at December 31, 2016 — — — Total gains/losses recognized in the consolidated income statement: Gains/(losses) on financial assets and liabilities (net) — (9) (9) Purchases — — — Sales — — — New issuances — (349) (349) Settlements — — — Balance at December 31, 2017 — (358) (358) |
Schedule of significant unobservable inputs used in measuring financial instruments categorized as Level 3 | The table below sets out information about significant unobservable inputs used at December 31, 2017 in measuring financial instruments categorized as Level 3 in the fair value hierarchy: Significant Range of Estimates Fair value Measurement Valuation Unobservable (weighted-average) Sensitivity to Financial Instrument Fair value Technique Input for Unobservable Input Unobservable Inputs Cross Currency Swaps 23 Forward Estimation (non closed formula) Long term MXN rates Bid Offer Spread A significant increase in MXN rates would result in a lower fair value. Red Compartida (130) Black-Scholes model (closed-form solution) Long term Fx USD/MXN volatility 11%-21% (15.7%) A significant increase in volatility would result in a lower fair value. |
Schedule of potential impact on consolidated income statement of change in main inputs used to measure level 3 financial instruments | Potential Impact on Consolidated Income Statement as of December 31, 2017 Most Least Favorable Favorable Input Input ASSETS: Cross Currency Swaps (16.6) LIABILITIES: Red Compartida 6.9 (41.8) |
Schedule of sensitivity analysis | The VaR amounts as of December 31, 2017, including all financial instruments in the trading book position of the Bank are as follows: Average High Low 12/31/2017 All financial instruments 95.06 146.43 57.61 128.61 By category: Instruments sensitive to interest rate 96.39 144.09 55.74 125.20 Instruments sensitive to equity market prices 4.64 16.83 1.36 5.07 Instruments sensitive to foreign currency exchange rates 50.83 101.46 8.16 25.34 Instruments sensitive to volatility movements 11.57 26.22 3.97 16.13 |
Schedule of financial assets are subject to offsetting | The following financial assets are subject to offsetting, enforceable master netting arrangements and similar agreements: As at December 31, 2016 Amount not offset in the consolidated balance sheet Gross amount of Net amount of financial liabilities financial assets offset in the presented in the Gross amount of consolidated balance consolidated Impact of Master Financial instrument Cash Net financial assets sheet balance sheet Netting Agreements collateral collateral amount Derivative financial assets 214,910 — 214,910 (151,762) (5,215) (47,821) 10,112 Reverse repurchase agreements 42,340 — 42,340 — (42,360) — (20) Equity instruments (see Note 10.a) 3 — 3 — (3) — — Total 257,253 — 257,253 (151,762) (47,578) (47,821) 10,092 As at December 31, 2017 Amount not offset in the consolidated balance sheet Gross amount of Net amount of financial liabilities financial assets offset in the presented in the Gross amount of consolidated balance consolidated Impact of Master Financial Instrument Cash Net financial assets sheet balance sheet Netting Agreements collateral collateral amount Derivative financial assets 180,377 — 180,377 (116,078) (3,783) (44,971) 15,545 Reverse repurchase agreements 51,705 — 51,705 — (51,693) — 12 Equity instruments (see Note 10.a) 6 — 6 — (7) — (1) Total 232,088 — 232,088 (116,078) (55,483) (44,971) 15,556 The following financial liabilities are subject to offsetting, enforceable master netting arrangements and similar agreements: As at December 31, 2016 Amount not offset in the consolidated balance sheet Gross amount of Net amount of financial assets financial liabilities offset in the presented in the Gross amount of consolidated balance consolidated Impact of Master Financial Instrument Cash Net financial liabilities sheet balance sheet Netting Agreements collateral collateral amount Derivative financial liabilities 219,977 — 219,977 (151,762) (2,670) (51,329) 14,216 — Repurchase agreements 124,525 — 124,525 — (124,949) — (424) Short positions - Securities loans (see Note 11.b) 20,375 — 20,375 — (20,769) — (394) Short positions – Short sales (see Note 11.b) 40,613 — 40,613 — (40,637) — (24) Total 405,490 — 405,490 (151,762) (189,025) (51,329) 13,374 As at December 31, 2017 Amount not offset in the consolidated balance sheet Gross amount of Net amount of financial assets financial liabilities offset in the presented in the Gross amount of consolidated balance consolidated Impact of Master Financial instrument Cash Net financial liabilities sheet balance sheet Netting Agreements collateral collateral amount Derivative financial liabilities 182,373 — 182,373 (116,078) (2,822) (34,454) 29,019 Repurchase agreements 110,149 — 110,149 — (110,337) — (188) Short positions - Securities loans (see Note 11.b) 21,132 — 21,132 — (21,555) — (423) Short positions - Short sales (see Note 11.b) 46,233 — 46,233 — (46,221) — 12 Total 359,887 — 359,887 (116,078) (180,935) (34,454) 28,420 |
Schedule of tangible asset depreciation rates | Average Annual Rate Buildings for own use 2% to 5% Furniture and vehicles 10% to 20% IT equipment and fixtures 25% Others 5% to 20% |
Immaterial misstatement on co57
Immaterial misstatement on consolidated statement of cash flows from prior years (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Immaterial misstatement on consolidated statement of cash flows from prior years | |
Schedule of changes in the consolidated statement of cash flow due to immaterial misstatement | As of December 31, 2015 As originally reported Adjustments As adjusted A. CASH FLOWS FROM OPERATING ACTIVITIES: 11,938 5,567 17,505 Adjustments made to obtain the cash flows from operating activities- 404 5,567 5,971 Effect of foreign exchange rate changes on foreign currency cash deposits (5,733) 5,567 (166) Net (increase)/decrease in operating assets- (214,901) — (214,901) Net increase/(decrease) in operating liabilities- 213,440 — 213,440 Income tax paid (1,187) — (1,187) Dividends received from equity instruments 118 — 118 B. CASH FLOWS FROM INVESTING ACTIVITIES: (2,946) — (2,946) C. CASH FLOWS FROM FINANCING ACTIVITIES: (6,760) — (6,760) D. EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON FOREIGN CURRENCY CASH DEPOSITS 5,733 (5,567) 166 E. NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 7,965 — 7,965 F. CASH AND CASH EQUIVALENTS AT THE BEGINNING OF YEAR 51,823 — 51,823 G. CASH AND CASH EQUIVALENTS AT THE END OF YEAR 59,788 — 59,788 |
Distribution of the Bank's pr58
Distribution of the Bank's profit and Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Distribution of the Bank's profit and Earnings per share | |
Schedule of distribution of the Bank's profit | 2015 2016 2017 Profit of the year 14,064 16,536 18,678 Dividends declared 6,760 17,468 8,910 Dividend per share (pesos) 0.08 0.22 0.11 Date of payment 05/28/2015 and 05/26/2016 and 05/30/2017 and 12/21/2015 12/30/2016 12/27/2017 |
Earnings per share basic and diluted | Accordingly, basic earnings per share after the Merger were determined as follows: 2015 2016 2017 Profit attributable to the Parent 14,051 16,536 18,678 Weighted average number of shares outstanding 6,777,381,551 6,777,381,551 6,777,381,551 Basic earnings per share after the Merger (pesos) 2.07 2.44 2.76 ii. Diluted earnings per share In calculating diluted earnings per share, the amount of profit attributable to the Parent and the weighted average number of shares issued, net of treasury shares, are adjusted to consider all the dilutive effects inherent to potential shares (see Note 29.d.). Accordingly, diluted earnings per share after the Merger were determined as follows: 2015 2016 2017 Profit attributable to the Parent 14,051 16,536 18,678 Weighted average number of shares outstanding 6,777,381,551 6,777,381,551 6,777,381,551 Dilutive effect of rights on shares 9,612,806 9,612,806 9,612,806 Adjusted number of shares 6,786,994,357 6,786,994,357 6,786,994,357 Diluted earnings per share after the Merger (pesos) 2.07 2.44 2.75 |
Cash and balances with the Ce59
Cash and balances with the Central Bank (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash and balances with the Central Bank | |
Schedule of breakdown by type of balances of cash and balances with the Central Bank | 12/31/2016 12/31/2017 Cash 24,887 21,538 Central Bank compulsory deposits 28,094 28,094 Deposits in the Central Bank 25,666 8,034 Accrued interest 16 21 78,663 57,687 |
Loans and advances to credit 60
Loans and advances to credit institutions (Tables) - Loans and advances to credit institutions | 12 Months Ended |
Dec. 31, 2017 | |
Financial assets | |
Schedule of financial assets | 12/31/2016 12/31/2017 Classification: Other financial assets at fair value through profit or loss 37,831 46,087 Loans and receivables 82,388 59,122 120,219 105,209 Type: Reciprocal accounts 26,017 18,569 Time deposits 96 71 Guarantee deposits - Collateral delivered for OTC derivatives transactions (Note 32) 51,414 34,542 Reverse repurchase agreements 37,831 46,087 Call money transactions granted 1,062 — Other accounts 3,799 5,940 120,219 105,209 Currency: Peso 59,629 69,311 USD 60,496 35,229 Other currencies 94 669 120,219 105,209 |
Schedule of detailed information about call money transactions granted | Interest Rate Days (average) 12/31/2016 Mexican financial institutions 3 5.75 % 1,062 |
Debt Instruments (Tables)
Debt Instruments (Tables) - Debt instruments. | 12 Months Ended |
Dec. 31, 2017 | |
Financial assets | |
Schedule of financial assets | 12/31/2016 12/31/2017 Classification: Financial assets held for trading 140,853 147,747 Available-for-sale financial assets 154,318 164,947 Loans and receivables 11,472 10,758 306,643 323,452 Type: Mexican government debt securities 229,514 224,003 Of which: Collateral delivered for OTC transactions (Note 32) 2,670 2,964 Foreign government debt securities 65,286 89,585 Of which: Brazilian Government Notes 34,359 34,488 US Government Treasury Bills (T-BILLS) 30,927 55,097 Debt securities issued by financial institutions 5,612 3,975 Other debt securities 6,231 5,889 306,643 323,452 Currency: Peso 220,390 200,666 USD 36,922 61,080 Brazilian Real (BRL) 34,359 34,488 Other currencies 14,972 27,218 306,643 323,452 |
Schedule of classification by external rating of financial assets | The breakdown by issuer rating of Debt instruments at December 31, 2016 is as follows: Private Debt Sovereign Debt Total % AAA — 30,927 30,927 10.07 % A 3,352 200,649 204,001 66.53 % BBB 3,709 17,527 21,236 6.93 % BB 4,609 45,698 50,307 16.41 % Below B 172 — 172 0.06 % 11,842 294,801 306,643 100 % The breakdown by issuer rating of Debt instruments at December 31, 2017 is as follows: Private Debt Sovereign Debt Total % AAA — 55,097 55,097 17.03 % A 2,651 181,965 184,616 57.08 % BBB 3,685 29,876 33,561 10.38 % BB 3,528 46,650 50,178 15.51 % 9,864 313,588 323,452 100 % |
Financial assets held for trading | |
Financial assets | |
Schedule of financial assets | 12/31/2016 12/31/2017 Federal Treasury Securities (CETES) 7,647 9,188 United Mexican States Bonds (UMS) 48 44 Federal Mexican Government Development Bonds (BONDES) 41,684 33,291 M and M10 Mexican Government Bonds 10,286 14,069 Mexican Bank Saving Protection Bonds (BPATs) 35,595 25,092 Federal Mexican Government Development Bonds in UDIS (1) (UDIBONDS) 8,881 6,930 T-BILLS 30,927 55,038 Other debt securities 5,785 4,095 140,853 147,747 (1) “UDIs” are Unidades de inversión, a peso-equivalent unit of account indexed for Mexican inflation. UDIs are units of account created by the Central Bank on April 4, 1995, the value of which in pesos is indexed to inflation on a daily basis, as measured by the change in the Mexican National Consumer Price Index (Índice Nacional de Precios al Consumidor or INPC). Under a UDI-based loan or financial instrument, the borrower’s nominal peso principal balance is converted either at origination or upon restructuring to a UDI principal balance and interest on the loan or financial instrument is calculated on the outstanding UDI balance of the loan or financial instrument. Principal and interest payments are made by the borrower in an amount of pesos equivalent to the amount due in UDIs at the stated value of UDIs on the day of payment. As of December 31, 2017, one UDI was equal to 5.934551 pesos. |
Financial assets available for sale | |
Financial assets | |
Schedule of financial assets | 12/31/2016 12/31/2017 UMS 17,479 29,832 M, M3 and M5 Mexican Government Bonds 75,639 76,174 BPATs 15,877 13,586 UDIBONDS 4,906 5,039 T-BILLS — 59 Brazilian Government Notes 34,359 34,488 Other debt securities 6,058 5,769 154,318 164,947 Of which: Before allowance for impairment losses 154,318 164,947 Allowance for impairment losses — — 154,318 164,947 |
Schedule of changes in financial instruments | 2015 2016 2017 Beginning balance 83,029 113,525 154,318 Net additions/(disposals) 30,527 44,366 8,703 Valuation adjustments (192) (3,453) 1,935 Amounts reclassified to consolidated income statement 161 (120) (9) Balance at year-end 113,525 154,318 164,947 |
Loans and receivables | |
Financial assets | |
Schedule of financial assets | 12/31/2016 12/31/2017 Special CETES 3,691 2,975 BREMS R 7,781 7,783 11,472 10,758 Type: Unquoted 11,472 10,758 Of which: Before allowance for impairment losses 11,472 10,758 Allowance for impairment losses — — 11,472 10,758 |
Equity instruments (Tables)
Equity instruments (Tables) - Equity instruments. | 12 Months Ended |
Dec. 31, 2017 | |
Financial assets | |
Schedule of financial assets | 12/31/2016 12/31/2017 Classification: Financial assets held for trading 1,822 2,562 Available-for-sale financial assets 326 795 Of which: Before allowance for impairment losses 326 795 Allowance for impairment losses — — 2,148 3,357 Type: Shares of Mexican companies 2,148 3,357 Shares of foreign companies — — 2,148 3,357 |
Financial assets available for sale | |
Financial assets | |
Schedule of changes in financial instruments | 2015 2016 2017 Beginning balance 311 348 326 Transfer to non-current assets held for sale — — — Net additions/(disposals) 41 30 472 Valuation adjustments (4) (52) (3) Amounts reclassified to consolidated income statement — — — Balance at year-end 348 326 795 |
Trading derivatives (assets a63
Trading derivatives (assets and liabilities) and Short positions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Trading derivatives | |
Financial instruments | |
Schedule of financial instruments | 12/31/2016 12/31/2017 Debit Credit Debit Credit Balance Balance Balance Balance Interest rate risk 64,589 65,719 58,895 61,027 Currency risk 134,430 139,461 105,424 109,813 Market price risk 888 510 942 442 199,907 205,690 165,261 171,282 |
Short positions | |
Financial instruments | |
Schedule of financial instruments | 12/31/2016 12/31/2017 Securities loans: Debt instruments 20,246 21,050 Equity instruments 129 82 20,375 21,132 Short sales: Debt instruments (*) 40,763 47,311 61,138 68,443 |
Loans And Advances To Custome64
Loans And Advances To Customers (Tables) - Loans and advances to customers | 12 Months Ended |
Dec. 31, 2017 | |
Financial assets | |
Schedule of financial assets | 12/31/2016 12/31/2017 Other financial assets at fair value through profit or loss 4,509 5,618 Loans and receivables 581,638 609,420 586,147 615,038 Of which: Before allowance for impairment losses 604,030 631,967 Allowance for impairment losses (17,883) (16,929) 586,147 615,038 |
Schedule of detail by classification of Loans and advances to customers | 12/31/2016 12/31/2017 By loan type: Commercial, financial and industrial loans 302,364 329,098 Public sector loans 57,022 49,294 Mortgage loans 125,636 126,835 Reverse repurchase agreements 4,509 5,618 Installment loans to individuals - Revolving consumer credit card loans 49,585 52,037 Non-revolving consumer loans 47,319 50,953 Impaired loans 17,595 18,132 604,030 631,967 By borrower sector: Public sector 57,022 49,294 Individuals 233,293 241,951 Communications and transportation 21,889 31,339 Construction 34,817 29,386 Manufacturing 59,984 60,261 Services 166,344 189,846 Tourism 15,036 14,008 Other sectors 15,645 15,882 604,030 631,967 By geographical area: Mexico 604,030 631,967 604,030 631,967 By interest rate: Fixed rate 216,957 245,530 Floating rate 387,073 386,437 604,030 631,967 |
Schedule of changes in the allowance for impairment losses | 2015 2016 2017 Beginning balance (15,198) (18,749) (17,883) Impairment losses on financial assets – Loans and receivables (*) (17,766) (19,022) (20,771) Of which: Individually assessed (6,172) (5,802) (4,181) Collectively assessed (11,594) (13,220) (16,590) Others (209) (157) (8) Write-off of impaired balances against recorded allowance for impairment losses 14,424 20,045 21,733 Balance at year-end (18,749) (17,883) (16,929) Of which: By method of assessment: Individually (7,943) (6,463) (2,196) Collectively (10,806) (11,420) (14,733) By geographical location of risk: Mexico (18,749) (17,883) (16,929) By classification of assets: Loans and advances to customers (18,749) (17,883) (16,929) (*) |
Schedule of changes in financial assets considered to be impaired due to credit risk. | 2015 2016 2017 Beginning balance 18,430 19,742 17,595 Additions 30,006 30,431 34,180 Transfers to performing loans (14,270) (12,533) (11,910) Written-off assets (14,424) (20,045) (21,733) Balance at year - end 19,742 17,595 18,132 |
Schedule of financial assets between no past due and past due | The breakdown of the balance of the financial assets classified as Loans and receivables – Loans and advances to customers between no past due and past due at December 31, 2016 is as follows: With Balances Past Due by With no Past Due Balances or Less than 3 Months Past More than 12 Due 3 to 6 Months 6 to 9 Months 9 to 12 Months Months Total By type of loan: Commercial, financial and industrial loans 2,658 1,322 417 758 1,687 6,842 Mortgage loans 759 1,356 1,044 708 2,911 6,778 Installment loans to individuals Of which: Revolving consumer credit card loans 786 1,166 — — — 1,952 Non-revolving consumer loans 485 1,080 423 3 32 2,023 4,688 4,924 1,884 1,469 4,630 17,595 The breakdown of the balance of the financial assets classified as Loans and receivables – Loans and advances to customers between no past due and past due at December 31, 2017 is as follows: With Balances Past Due by With no Past Due Balances or Less than 3 Months Past More than 12 Due 3 to 6 Months 6 to 9 Months 9 to 12 Months Months Total By type of loan: Commercial, financial and industrial loans 2,509 2,472 664 127 235 6,007 Mortgage loans 1,086 1,624 1,186 815 2,650 7,361 Installment loans to individuals Of which: Revolving consumer credit card loans 868 1,467 — — — 2,335 Non-revolving consumer loans 647 1,287 472 4 19 2,429 5,110 6,850 2,322 946 2,904 18,132 |
Schedule of renegotiated loans | For the Year Ended 12/31/2015 For the Year Ended 12/31/2016 For the Year Ended 12/31/2017 Performing loans Performing loans Performing loans Due to Due to Due to Concerns Concerns Concerns About About About Current or Current or Current or Potential Due to Potential Due to Potential Due to Credit Other Impaired Credit Other Impaired Credit Other Impaired Deterioration Factors Loans Total Deterioration Factors Loans Total Deterioration Factors Loans Total Commercial, financial and industrial loans 3,219 — 1,591 4,810 3,576 — 1,606 5,182 879 — 1,028 1,907 Mortgage loans — — — — — — — — 22 — 1 23 Installment loans to individuals 96 — 294 390 1,073 — 158 1,231 1,086 — 186 1,272 3,315 — 1,885 5,200 4,649 — 1,764 6,413 1,987 — 1,215 3,202 Percentage 64 % — 36 % 100 % 72 % — 28 % 100 % 62 % — 38 % 100 % |
Schedule of maximum exposure to credit risk by class of financial assets | 12/31/2016 Maximum Exposure Maximum to Credit Risk (1) Collaterals Other Credit Enhancements Exposure to Cash Collateral Collateralized by Credit Risk Unsecured Secured Received Securities Collection Rights (3) Real Estate (2) Guarantees Financial assets held for trading 340,760 333,360 8,400 3,182 5,218 — — — Other financial assets at fair value through profit or loss 42,340 — 42,340 — 41,091 — — — Available-for-sale financial assets 154,318 154,318 — — — — — — Loans and receivables: 693,381 307,270 386,111 — — 122,050 204,806 68,112 Of which: Loans and advances to credit institutions 82,388 82,388 — — — — — — Loans and advances to customers 599,521 213,410 386,111 — — 122,050 204,806 68,112 Commercial, financial and industrial loans 309,206 82,616 226,590 — — 96,926 76,511 65,096 Public sector loans 57,022 29,667 27,355 — — 24,971 — 3,016 Mortgage loans 132,414 1,149 131,265 — — — 126,869 — Installment loans to individuals: Revolving consumer credit card loans 51,537 51,537 — — — — — — Non-revolving consumer loans 49,342 48,441 901 — — 153 1,426 — Debt instruments 11,472 11,472 — — — — — — Guarantees and loan commitments 62,065 62,065 — — — — — — Available lines of credit cards and non-revolving consumer loans 36,256 36,256 — — — — — — 1,329,120 893,269 436,851 3,182 46,309 122,050 204,806 68,112 (1) Related to loans and receivables and available lines of credit cards and non-revolving consumer loans in the first column (Maximum Exposure to Credit Risk) that are secured by the collaterals and other credit enhancements disclosed in the table. As such, unsecured amounts are the amounts that are not covered by any collateral or other credit enhancement. The secured amounts may differ from the total collaterals and other credit enhancements as certain loans and receivables are secured by multiple credit enhancements. (2) Appraisals to support estimated fair value of the real estate collaterals are obtained at the moment of the loan origination and when the financial asset is classified as impaired. (3) Public sector loan rights are guaranteed by Mexican government entities. 12/31/2017 Maximum Exposure Maximum to Credit Risk (1) Collaterals Other Credit Enhancements Exposure to Cash Collateral Collateralized by Credit Risk Unsecured Secured Received Securities Collection Rights (3) Real Estate (2) Guarantees Financial assets held for trading 313,008 264,201 48,807 45,024 3,783 — — — Other financial assets at fair value through profit or loss 51,705 — 51,705 — 51,693 — — — Available-for-sale financial assets 164,947 164,947 — — — — — — Loans and receivables: 696,229 308,252 387,977 — — 165,696 196,146 76,030 Of which: Loans and advances to credit institutions 59,122 59,122 — — — — — — Loans and advances to customers 626,349 238,372 387,977 — — 165,696 196,146 76,030 Commercial, financial and industrial loans 335,104 107,980 227,124 — — 141,806 66,619 76,028 Public sector loans 49,294 18,963 30,331 — — 23,845 — — Mortgage loans 134,197 4,397 129,800 — — — 128,106 2 Installment loans to individuals: Revolving consumer credit card loans 54,372 54,372 — — — — — — Non-revolving consumer loans 53,382 52,660 722 — — 45 1,421 — Debt instruments 10,758 10,758 — — — — — — Guarantees and loan commitments 78,812 78,812 — — — — — — Available lines of credit 38,291 38,291 — — — — — — 1,342,992 854,503 488,489 45,024 55,476 165,696 196,146 76,030 (1) Related to loans and receivables and available lines of credit cards and non-revolving consumer loans in the first column (Maximum Exposure to Credit Risk) that are secured by the collaterals and other credit enhancements disclosed in the table. As such, unsecured amounts are the amounts that are not covered by any collateral or other credit enhancement. The secured amounts may differ from the total collaterals and other credit enhancements as certain loans and receivables are secured by multiple credit enhancements. (2) Appraisals to support estimated fair value of the real estate collaterals are obtained at the moment of the loan origination and when the financial asset is classified as impaired. (3) Public sector loan rights are guaranteed by Mexican government entities. |
Schedule of internal rating scale and mapping with external ratings | Equivalence with Standard & Internal Rating Poor’s Moody’s 9.3 AAA Aaa 9.2 AA+ Aa1 9.0 AA Aa2 8.6 AA- Aa3 8.1 A+ A1 7.7 A A2 7.3 A- A3 6.7 BBB+ Baa1 6.1 BBB Baa2 5.6 BBB- Baa3 5.0 BB+ Ba1 4.4 BB Ba2 3.9 BB- Ba3 3.3 B+ B1 2.7 B B2 2.2 B- B3 1.6 CCC Caa1 1.0 CC Ca |
Schedule of rating categories for commercial loans, mortgage loans, installment loans | Rating Equivalence A-1 Minimum Risk (Solid) A-2 Low Risk (Outstanding) B-1 Normal Risk (Good) B-2 Normal Risk B-3 Satisfactory C-1 Normal Risk (Adequate) C-2 Medium Risk (Weak) D High Risk (Poor) E Probable Loss |
Schedule of classification by rating category of the commercial loans and public sector loans and their related guarantees and loan commitments not recognized on the consolidated balance sheet | 12/31/2016 Not Rating Category 9.3 9.2 9.0 8.5 8.0 7.5 7.0 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 Rated Total Commercial loans (except SMEs) — — — — 15 4,006 17,082 6,699 54,717 61,648 57,457 10,978 3,497 1,753 1,373 116 1,949 — 204 19,817 241,311 Public sector loans — — — — — 33,730 3,765 — — 6,366 7,415 5,091 636 — — — — — — 19 57,022 — — — — 15 37,736 20,847 6,699 54,717 68,014 64,872 16,069 4,133 1,753 1,373 116 1,949 — 204 19,836 298,333 Financial instruments not recognized on the consolidated balance sheet: Guarantees 653 — — 1,959 2,063 6,449 14,063 8,996 5,986 3,834 784 310 312 — — 75 33 — — 2,324 47,841 Loan commitments — — — 31 582 124 726 210 2,922 4,560 3,978 639 9 20 — — — — — 111 13,912 653 — — 1,990 2,645 6,573 14,789 9,206 8,908 8,394 4,762 949 321 20 — 75 33 — — 2,435 61,753 653 — — 1,990 2,660 44,309 35,636 15,905 63,625 76,408 69,634 17,018 4,454 1,773 1,373 191 1,982 — 204 22,271 360,086 12/31/2017 Not Rating Category 9.3 9.2 9.0 8.5 8.0 7.5 7.0 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 Rated Total Commercial loans (except SMEs) — — — — 3,380 496 9,116 28,807 48,849 74,722 63,662 13,901 2,898 1,396 413 112 1,870 564 — 12,639 262,825 Public sector loans — — 3,504 — — 20,077 1 983 — 9,751 13,493 1,278 — — — — — — — 208 49,295 — — 3,504 — 3,380 20,573 9,117 29,790 48,849 84,473 77,155 15,179 2,898 1,396 413 112 1,870 564 — 12,847 312,120 Financial instruments not recognized on the consolidated balance sheet: Guarantees — 623 — 2,576 5,262 11,037 19,265 7,043 9,060 3,219 2,391 392 3 — — — 75 — — 2,133 63,079 Loan commitments — — — 7 491 501 597 253 2,137 5,728 4,210 862 86 25 — — 78 — — 196 15,171 — 623 — 2,583 5,753 11,538 19,862 7,296 11,197 8,947 6,601 1,254 89 25 — — 153 — — 2,329 78,250 — 623 3,504 2,583 9,133 32,111 28,979 37,086 60,046 93,420 83,756 16,433 2,987 1,421 413 112 2,023 564 — 15,176 390,370 |
Schedule of classification by external rating of financial assets | 12/31/2016 Rating Category A-1 A-2 B-1 B-2 B-3 C-1 C-2 D E Not Rated Total Commercial loans (SMEs) 41,133 12,018 1,913 3,506 4,650 1,360 756 2,065 101 393 67,895 Mortgage loans 89,712 11,318 2,979 14,404 1,800 2,163 1,763 3,817 880 3,578 132,414 Revolving consumer credit card loans 2,855 11,997 12,304 5,835 3,329 4,804 4,617 4,499 1,297 — 51,537 Non-revolving consumer loans 2,426 5,226 7,181 16,057 5,365 2,950 4,830 1,957 2,536 814 49,342 136,126 40,559 24,377 39,802 15,144 11,277 11,966 12,338 4,814 4,785 301,188 Financial instruments not recognized on the consolidated balance sheet: Available lines of credit cards and non-revolving consumer loans 7,779 4,607 5,289 3,502 2,792 4,031 4,029 1,758 2,328 141 36,256 Guarantees 132 — — — — — — — — — 132 Loan commitments 180 — — — — — — — — — 180 8,091 4,607 5,289 3,502 2,792 4,031 4,029 1,758 2,328 141 36,568 144,217 45,166 29,666 43,304 17,936 15,308 15,995 14,096 7,142 4,926 337,756 12/31/2017 Rating Category A-1 A-2 B-1 B-2 B-3 C-1 C-2 D E Not Rated Total Commercial loans (SMEs) 47,231 11,515 1,899 1,946 4,656 1,683 874 1,968 507 — 72,279 Mortgage loans 98,015 2,999 1,174 1,634 846 17,535 3,919 3,153 1,218 3,704 134,197 Revolving consumer credit card loans 2,995 13,789 12,848 6,181 3,543 4,961 4,829 3,830 1,397 — 54,373 Non-revolving consumer loans 7,009 7,312 9,978 8,670 6,577 5,415 2,876 1,267 3,390 889 53,383 155,250 35,615 25,899 18,431 15,622 29,594 12,498 10,218 6,512 4,593 314,232 Financial instruments not recognized on the consolidated balance sheet: Available lines of credit cards and non-revolving consumer loans 7,118 5,500 5,943 3,902 3,149 4,373 4,268 1,696 2,343 — 38,292 Guarantees 282 — — — — — — — — — 282 Loan commitments 150 — — — — — — — — — 150 7,550 5,500 5,943 3,902 3,149 4,373 4,268 1,696 2,343 — 38,724 162,800 41,115 31,842 22,333 18,771 33,967 16,766 11,914 8,855 4,593 352,956 |
Schedule of retail portfolio that are past due but not impaired | Portions of the retail portfolio that are past due but not impaired as of December 31, 2016 are as follows: Balances Past Due by Current 1 to 30 Days 31 to 60 Days 61 to 90 Days Total By type of loan: Commercial loans (SMEs) 63,248 1,725 756 533 66,262 Mortgage loans 116,170 4,535 3,636 1,295 125,636 Installment loans to individuals Of which: Revolving consumer credit card loans 47,170 1,061 760 594 49,585 Non-revolving consumer loans 44,429 1,819 596 475 47,319 271,017 9,140 5,748 2,897 288,802 Portions of the retail portfolio that are past due but not impaired as of December 31, 2017 are as follows: Balances Past Due by Current 1 to 30 Days 31 to 60 Days 61 to 90 Days Total By type of loan: Commercial loans (SMEs) 68,157 1,590 771 733 71,251 Mortgage loans 116,293 4,545 4,205 1,792 126,835 Installment loans to individuals Of which: Revolving consumer credit card loans 49,253 1,145 851 788 52,037 Non-revolving consumer loans 48,129 1,520 687 616 50,952 281,832 8,800 6,514 3,929 301,075 |
Hedging derivatives (Tables)
Hedging derivatives (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Hedging derivatives | |
Schedule of types of hedge of derivatives qualifying for hedge accounting | 12/31/2016 12/31/2017 Assets Liabilities Assets Liabilities Fair value hedges 93 3,727 59 6,572 Cash flow hedges 14,910 10,560 15,057 4,519 15,003 14,287 15,116 11,091 |
Schedule of reconciliation of valuation adjustments - Cash flow hedges | 2015 2016 2017 Balance at January 1 293 900 1,383 Valuation adjustments (612) (1,095) (1,585) Amounts reclassified to consolidated income statement 1,479 1,785 118 Of which: Income from cash flow hedging derivatives swaps and discontinued cash flow hedge accounting 1,483 1,787 120 Cash flow hedges ineffectiveness (Note 38) (4) (2) (2) Income taxes (260) (207) 440 Balance at December 31 900 1,383 356 |
Schedule of estimated cash flows of the cash flow hedges | Between 3 Months and Between 1 Year and 5 Less than 3 Months 1 Year Years More than 5 Years Total Cash flows to be received 373 1,114 1,845 19 3,351 Cash flows to be paid (354) (780) (1,564) (145) (2,843) |
Fair value hedges | |
Hedging derivatives | |
Schedule of hedging derivative positions | As of December 31, 2016, the hedging derivative positions are as follows: Nominal (Million in Nominal Transaction Transaction (Million Pesos) Currency) Currency Hedged Item and Risk Hedged IRS 2,863 2,863 Peso Loans and receivables – Interest rate risk IRS 1,618 78 USD Loans and receivables – Interest rate risk CCS 99 8 USD Loans and receivables – Interest rate and foreign exchange risk CCS 9,614 470 Euro UMS – Interest rate and foreign exchange risk CCS 950 50 USD UMS – Interest rate and foreign exchange risk CCS 251 15 Euro PEMEX Bonds – Interest rate and foreign exchange risk CCS 602 30 Pound Sterling PEMEX Bonds – Interest rate and foreign exchange risk CCS 1,118 86 USD PEMEX Bonds – Interest rate and foreign exchange risk CCS 3,860 825 UDIS UDIBONDS – Interest rate and inflation risk As of December 31, 2017, the hedging derivative positions are as follows: Nominal (Million in Nominal Transaction Transaction (Million Pesos) Currency) Currency Hedged Item and Risk Hedged IRS 1,785 1,785 Peso Loans and receivables – Interest rate risk IRS 354 18 USD Loans and receivables – Interest rate risk CCS 52 4 USD Loans and receivables –Interest rate and foreign exchange risk CCS 17,598 840 Euro UMS – Interest rate and foreign exchange risk CCS 1,275 67 USD UMS – Interest rate and foreign exchange risk CCS 251 15 Euro PEMEX Bonds – Interest rate and foreign exchange risk CCS 73 3 Pound Sterling UMS – Interest rate and foreign exchange risk CCS 602 30 Pound Sterling PEMEX Bonds – Interest rate and foreign exchange risk CCS 969 76 USD PEMEX Bonds – Interest rate and foreign exchange risk CCS 3,860 825 UDIS UDIBONDS – Interest rate and inflation risk |
Cash flow hedges | |
Hedging derivatives | |
Schedule of hedging derivative positions | As of December 31, 2016, the positions in derivatives for cash flow hedging purposes are as follows: Nominal (Million in Nominal Transaction Transaction (Million Pesos) Currency) Currency Hedged Item and Risk Hedged IRS 2,050 2,050 Peso BPAGs Bonds – Interest rate risk CCS 4,713 331 USD Loans and receivables – Foreign exchange risk CCS 4,958 261 Euro Loans and receivables – Foreign exchange risk CCS 11,186 543 USD Senior Unsecured Notes – Foreign exchange risk CCS 21,546 1,045 USD Tier II Subordinated Capital Notes – Foreign exchange risk CCS 2,657 136 Euro UMS – Foreign exchange risk CCS 260 10 Pound Sterling UMS – Foreign exchange risk CCS 1,093 60 USD UMS – Foreign exchange risk Forward Fx-USD 24,433 1,491 USD Brazilian Government Notes – Foreign exchange risk As of December 31, 2017, the hedging derivative positions are as follows: Nominal (Million in Nominal Transaction Transaction (Million Pesos) Currency) Currency Hedged Item and Risk Hedged IRS 700 700 Peso BPAGs Bonds – Interest rate risk IRS 4,000 4,000 Peso Unsecured Bonds – Interest rate risk CCS 3,056 221 USD Loans and receivables – Foreign exchange risk CCS 3,055 166 Euro Loans and receivables – Foreign exchange risk CCS 778 34 Pound Sterling Loans and receivables – Foreign exchange risk CCS 10,667 543 USD Senior Unsecured Notes – Foreign exchange risk CCS 20,548 1,045 USD Tier II Subordinated Capital Notes – Foreign exchange risk CCS 2,657 136 Euro UMS – Foreign exchange risk CCS 260 10 Pound Sterling UMS – Foreign exchange risk CCS 911 50 USD UMS – Foreign exchange risk Forward Fx-BRL 15,970 2,952 BRL Brazilian Government Notes – Foreign exchange risk Forward Fx-USD 37,853 1,747 USD Brazilian Government Notes – Foreign exchange risk |
Non-current assets held for s66
Non-current assets held for sale (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Non-current assets held for sale. | |
Schedule of changes in foreclosed assets | Foreclosed Assets Cost: Balances at January 1, 2016 1,101 Additions 711 Disposals (705) Impairment losses — Balances at December 31, 2016 1,107 Additions 389 Disposals (201) Impairment losses — Balances at December 31, 2017 1,295 |
Tangible assets (Tables)
Tangible assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tangible assets. | |
Schedule of changes in Tangible assets in the consolidated balance sheet | Property, Plant and Equipment Cost: Balances at January 1, 2016 10,632 Additions 1,096 Disposals (114) Balances at December 31, 2016 11,614 Additions 1,816 Disposals (123) Balances at December 31, 2017 13,307 Accumulated depreciation: Balances at January 1, 2016 (5,085) Additions (953) Disposals 116 Balances at December 31, 2016 (5,922) Additions (1,010) Disposals 123 Balances at December 31, 2017 (6,809) Balances at December 31, 2016 5,692 Balances at December 31, 2017 6,498 |
Schedule of future minimum lease payments required under the Bank's operating leases | 12/31/2017 Other Operating Operating Lease Due Fibra Uno Leases Total 2018 276 1,393 1,669 2019 276 1,062 1,338 2020 276 828 1,104 2021 276 683 959 2022 276 518 794 2023 and thereafter 2,572 1,254 3,826 Total commitments for minimum payments under operating lease 3,952 5,738 9,690 |
Detail by asset class of Tangible assets for own use in the consolidated balance sheet | Accumulated Cost Depreciation Impairment Losses Carrying Amount Buildings 7,900 (3,902) — 3,998 IT equipment and fixtures 2,036 (1,082) — 954 Furniture and vehicles 1,568 (938) — 630 Others 110 — — 110 Balances at December 31, 2016 11,614 (5,922) — 5,692 Buildings 8,057 (4,492) — 3,565 IT equipment and fixtures 2,857 (1,290) — 1,567 Furniture and vehicles 1,670 (1,027) — 643 Others 723 — — 723 Balances at December 31, 2017 13,307 (6,809) — 6,498 |
Intangible assets - Goodwill (T
Intangible assets - Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Intangible assets - Goodwill | |
Schedule of goodwill | 12/31/2016 12/31/2017 Santander Vivienda (See Note 3.11) 1,734 1,734 1,734 1,734 |
Schedule of assumptions used in calculation of impairment of goodwill | Hypotheses Basis of valuation Value in use: discounted cash flows Period of projection of cash flows(1) 5 years Perpetual cash flow (2) Discount rate(6) 9.22% Of which: Cost of Equity(3) 17.4% Cost of Debt(4) 6.8% Equity Structure(5) 23% Equity / 77% Debt (1) The period of projections of cash flow are prepared using internal budgets and growth plans of Management, based on historical data, market expectations and conditions such as industry growth and inflation. (2) The perpetual cash flow has been calculated based on the following formula over the last cash flow estimated [D*(1+g)//i-g)]*(1+i)^-n, where: § D = Last estimated cash flow, § g = Perpetual growth (0%), § i = Discount rate, and § n= Number of year of last estimated cash flow. (3) The Cost of Equity has been calculated based on the following formula Rf+(ß*Pr), where: § Rf = Risk free rate (7.22%), § β = Beta (1.27), and § Pr = Equity Risk Premium (8.0%). (4) The Cost of Debt has been calculated based on the actual pretax financing cost of the Bank. (5) The Equity Structure has been calculated based on the following formula: Equity/(Total Liability+Equity). The Debt Structure has been calculated based on the following formula: Debt/(Total Liability+Equity). (6) The Discount rate has been calculated based on the following formula: (Cost of Equity*Equity Structure) + (Cost of Debt*Debt Structure). |
Intangible assets - Other int69
Intangible assets - Other intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Intangible assets - Other intangible assets | |
Schedule of changes in Other intangible assets in the consolidated balance sheet | Intangible Assets with Finite Useful Life Cost: Balances at January 1, 2016 6,248 Additions 2,001 Disposals (30) Balances at December 31, 2016 8,219 Additions 2,712 Disposals (142) Balances at December 31, 2017 10,789 Accumulated amortization and impairment: Balances at January 1, 2016 (3,105) Additions (1,105) Disposals 29 Balances at December 31, 2016 (4,181) Additions (1,523) Disposals 141 Balances at December 31, 2017 (5,563) Balances at December 31, 2016 4,038 Balances at December 31, 2017 5,226 |
Schedule of Other tangible assets | Estimated Accumulated Impairment Carrying Useful Life Cost Amortization Losses Amount IT developments 3 years 8,132 (4,175) — 3,957 Others 10 years 87 (6) — 81 Balances at December 31, 2016 8,219 (4,181) — 4,038 IT developments 3 years 10,702 (5,548) — 5,154 Others 10 years 87 (15) — 72 Balances at December 31, 2017 10,789 (5,563) — 5,226 |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other assets | |
Schedule of Other assets | 12/31/2016 12/31/2017 Credit card operating balances 1,297 1,597 Insurance commission receivables 976 1,053 Prepayments 660 793 Other 3,402 5,666 6,335 9,109 |
Deposits from the Central Ban71
Deposits from the Central Bank and Deposits from credit institutions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deposits from the Central Bank and credit institutions | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2016 12/31/2017 Classification: Other financial liabilities at fair value through profit or loss 40,634 28,359 Financial liabilities at amortized cost 99,322 76,515 139,956 104,874 Type: Reciprocal accounts 2,621 2,316 Time deposits 31,545 4,506 Overnight deposits 7,689 13,688 Repurchase agreements 40,634 28,359 Other accounts 57,397 55,848 Of which: Collateral received for OTC derivatives transactions (Note 32) 33,474 31,157 Others 23,923 24,691 Accrued interest 70 157 139,956 104,874 Currency: Peso 101,843 100,347 USD 38,113 4,470 Other currencies — 57 139,956 104,874 |
Customer deposits (Tables)
Customer deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deposits - Customers | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2016 12/31/2017 Classification: Other financial liabilities at fair value through profit or loss 83,891 81,790 Financial liabilities at amortized cost 572,005 608,776 655,896 690,566 Type: Repurchase agreements 83,891 81,790 Demand deposits: Current accounts 403,323 422,028 Savings accounts — — Other deposits 27,696 26,230 Of which: Collateral received for OTC derivatives transactions (Note 32) 14,347 13,867 Others 13,349 12,363 Time deposits: Fixed-term deposits 140,408 159,464 Accrued interest 578 1,054 655,896 690,566 Currency: Peso 539,190 584,637 USD 116,706 105,929 Other currencies — — 655,896 690,566 |
Marketable debt securities (Tab
Marketable debt securities (Tables) - Marketable debt securities | 12 Months Ended |
Dec. 31, 2017 | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2016 12/31/2017 Classification: Other financial liabilities at fair value through profit or loss designated as such upon initial recognition 12,335 10,504 Financial liabilities at amortized cost 77,668 85,792 90,003 96,296 Type: Certificates of deposit (unsecured) 25,944 27,467 Senior Unsecured Notes 20,462 19,558 Structured bank bonds 12,542 10,748 Promissory notes 16,101 23,577 Unsecured bonds 14,785 14,798 Mortgage-backed bonds 169 148 90,003 96,296 Currency: Peso 67,061 68,788 USD 22,942 27,508 90,003 96,296 |
Schedule of the balance of issues under the issuance program | As of December 31, 2016, the balance of the issues performed by the Bank under the aforementioned program is as follows: Amount Maturity Date Rate Certificates of deposit (unsecured) 2,500 02/17/2017 6.16 % Certificates of deposit (unsecured) 630 02/17/2017 6.16 % Certificates of deposit (unsecured) 2,000 04/27/2017 5.65 % Certificates of deposit (unsecured) 530 03/09/2017 5.65 % Certificates of deposit (unsecured) 80 04/12/2017 6.15 % Certificates of deposit (unsecured) 2,000 04/26/2017 5.65 % Certificates of deposit (unsecured) 300 04/21/2017 6.16 % Certificates of deposit (unsecured) 1,000 06/01/2017 5.65 % Certificates of deposit (unsecured) 700 06/09/2017 6.16 % Certificates of deposit (unsecured) 800 07/20/2017 5.65 % Certificates of deposit (unsecured) 50 07/25/2017 5.42 % Certificates of deposit (unsecured) 500 07/27/2017 5.65 % Certificates of deposit (unsecured) 1,000 10/06/2017 5.88 % Certificates of deposit (unsecured) 1,000 11/01/2017 5.88 % Certificates of deposit (unsecured) 45 01/02/2017 5.58 % Certificates of deposit (unsecured) 800 12/11/2017 5.88 % Certificates of deposit (unsecured) 1,100 04/12/2017 6.16 % Certificates of deposit (unsecured) 1,000 01/20/2017 6.16 % Certificates of deposit (unsecured) 300 06/28/2017 5.65 % Certificates of deposit (unsecured) 800 03/02/2017 5.65 % Certificates of deposit (unsecured) 1,730 05/26/2017 5.66 % Certificates of deposit (unsecured) 100 09/11/2017 5.64 % Certificates of deposit (unsecured) 1,000 08/15/2017 5.65 % Certificates of deposit (unsecured) 700 06/05/2017 6.13 % Certificates of deposit (unsecured) 500 02/01/2017 5.65 % Certificates of deposit (unsecured) 1,000 05/04/2017 5.65 % Certificates of deposit (unsecured) 500 02/10/2017 5.68 % Certificates of deposit (unsecured) 1,000 09/25/2017 5.88 % Certificates of deposit (unsecured) - USD 2 07/31/2017 0.65 % Certificates of deposit (unsecured) - USD 197 01/17/2017 0.20 % Certificates of deposit (unsecured) - USD 403 01/26/2017 0.20 % Certificates of deposit (unsecured) - USD 283 01/05/2017 0.35 % Certificates of deposit (unsecured) - USD 215 01/12/2017 0.35 % Certificates of deposit (unsecured) - USD 340 01/19/2017 0.20 % Certificates of deposit (unsecured) - USD 379 01/10/2017 0.35 % Certificates of deposit (unsecured) - USD 4 07/31/2017 0.95 % Certificates of deposit (unsecured) - USD 1 07/31/2017 0.75 % Certificates of deposit (unsecured) - USD 1 07/31/2017 0.90 % Certificates of deposit (unsecured) - USD 103 05/09/2017 0.65 % Certificates of deposit (unsecured) - USD 46 06/01/2017 0.50 % Certificates of deposit (unsecured) - USD 1 07/31/2017 0.70 % Certificates of deposit (unsecured) - USD 246 01/24/2017 0.20 % 25,886 Accrued interest 58 25,944 Senior Unsecured Notes 20,349 11/09/2022 4.125 % Accrued interest 113 20,462 Structured bank bonds 35 01/06/2017 10.00 % Structured bank bonds 10 01/10/2017 9.00 % Structured bank bonds 27 01/04/2017 11.59 % Structured bank bonds 17 01/13/2017 12.50 % Structured bank bonds 82 01/03/2017 4.18 % Structured bank bonds 10 01/05/2017 8.00 % Structured bank bonds 10 01/24/2017 7.00 % Structured bank bonds (*) 593 03/02/2017 Guaranteed rate subject to Euro Stoxx 50 Structured bank bonds (*) 53 03/16/2017 Guaranteed rate subject to Euro Stoxx 50 Structured bank bonds (*) 42 03/13/2017 Guaranteed rate subject to Euro Stoxx 50 Structured bank bonds (*) 12 03/24/2017 Guaranteed rate subject to Euro Stoxx 50 Structured bank bonds (*) 12 04/06/2017 Guaranteed rate subject to Euro Stoxx 50 Structured bank bonds (*) 465 06/29/2017 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 514 08/03/2017 Guaranteed rate subject to Euro SX5E Structured bank bonds (*) 441 09/06/2017 Guaranteed rate subject to Euro SX5E Structured bank bonds (*) 168 09/08/2017 Guaranteed rate subject to Euro SX7E Structured bank bonds (*) 115 11/06/2017 Guaranteed rate subject to S&P500 Structured bank bonds (*) 613 01/04/2018 Guaranteed rate subject to Euro Stoxx Oil & Gas Structured bank bonds (*) 14 01/04/2018 Guaranteed rate subject to Euro Stoxx Oil & Gas Structured bank bonds (*) 330 02/19/2018 Guaranteed rate subject to IXE Structured bank bonds (*) 581 03/02/2018 Guaranteed rate subject to FSTE 100 Structured bank bonds (*) 441 03/06/2017 Guaranteed rate subject to HSCEI, S&P 500, SX5E and NIKKEI 225 Structured bank bonds (*) 945 04/03/2018 Guaranteed rate subject to Euro Stoxx Oil & Gas Structured bank bonds (*) 25 05/09/2017 Guaranteed rate subject to Euro SX5E Structured bank bonds (*) 141 05/16/2018 Guaranteed rate subject to Euro SX5E Structured bank bonds (*) 22 05/25/2017 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 121 05/31/2018 Guaranteed rate subject to Euro SX5E Structured bank bonds (*) 82 06/29/2018 Guaranteed rate subject to Euro SX6E Structured bank bonds (*) 463 06/27/2018 2.00 % Structured bank bonds (*) 9 06/29/2018 Guaranteed rate subject to Euro SX6E Structured bank bonds (*) 970 06/29/2018 Guaranteed rate subject to Euro SX6E Structured bank bonds (*) 137 06/29/2018 Guaranteed rate subject to Euro SX6E Structured bank bonds (*) 114 07/12/2018 Guaranteed rate subject to Euro SX6E Structured bank bonds (*) 10 08/02/2018 Guaranteed rate subject to DAX Structured bank bonds (*) 122 08/10/2017 Guaranteed rate subject to IPC Structured bank bonds (*) 155 08/30/2017 Guaranteed rate subject to IPC Structured bank bonds (*) 123 08/30/2018 Guaranteed rate subject to Euro Stoxx 50 Structured bank bonds (*) 51 09/14/2017 Guaranteed rate subject to IPC Structured bank bonds (*) 153 09/14/2017 Guaranteed rate subject to IPC Structured bank bonds (*) 97 09/20/2018 Guaranteed rate subject to Euro Stoxx 50 Structured bank bonds (*) 124 09/27/2018 Guaranteed rate subject to Euro Stoxx 50 Structured bank bonds (*) 150 10/19/2018 Guaranteed rate subject to INDU Structured bank bonds (*) 503 10/26/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 43 11/09/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 203 11/09/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 63 11/09/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 823 10/23/2020 TIIE Structured bank bonds (*) 17 11/07/2019 Guaranteed rate subject to SXDP Structured bank bonds (*) 148 11/14/2019 Guaranteed rate subject to SXDP Structured bank bonds (*) 8 11/05/2020 TIIE Structured bank bonds (*) 123 11/23/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 160 12/14/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 18 12/14/2017 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 204 07/18/2017 Guaranteed rate subject to IPC Structured bank bonds (*) 10 02/14/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 157 02/23/2021 TIIE Structured bank bonds (*) 42 03/05/2018 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 42 03/05/2018 Guaranteed rate subject to NIKKEI 225 Structured bank bonds (*) 21 03/03/2021 Guaranteed rate subject to SXDP Structured bank bonds (*) 14 03/16/2021 TIIE Structured bank bonds (*) 9 03/27/2019 Guaranteed rate subject to NIKKEI 225 Structured bank bonds (*) 16 04/03/2019 Guaranteed rate subject to NIKKEI 225 Structured bank bonds (*) 5 08/02/2018 Guaranteed rate subject to DAX Structured bank bonds (*) 6 04/03/2018 Guaranteed rate subject to SXEE Structured bank bonds (*) 47 04/26/2019 Guaranteed rate subject to Euro Stoxx 50 Structured bank bonds (*) 383 04/23/2021 TIIE Structured bank bonds (*) 121 04/26/2019 Guaranteed rate subject to SX7E Structured bank bonds (*) 14 04/26/2019 Guaranteed rate subject to SX7E Structured bank bonds (*) 20 05/12/2021 TIIE Structured bank bonds (*) 19 05/23/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 150 06/06/2018 TIIE Structured bank bonds (*) 6 06/06/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 53 06/06/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 215 06/06/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 26 06/06/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 10 12/21/2017 TIIE Structured bank bonds (*) 93 09/04/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 28 10/03/2019 Guaranteed rate subject to NKY and SXE Structured bank bonds (*) 4 03/03/2021 Guaranteed rate subject to SXDP Structured bank bonds (*) 14 12/19/2019 Guaranteed rate subject to Euro Stoxx 50 Structured bank bonds (*) 10 01/10/2017 26.00 % Structured bank bonds (*) 83 01/17/2017 4.15 % 12,530 Transaction costs and accrued interest (net) 12 12,542 Promissory notes 68 01/02/2017 5.70 % Promissory notes 55 01/18/2017 5.75 % Promissory notes 13,721 01/02/2017 5.75 % Promissory notes 2,254 01/02/2017 5.75 % 16,098 Accrued interest 3 16,101 Unsecured bonds 3,000 03/16/2018 TIIE + 15 bps Unsecured bonds 1,700 03/09/2021 8.91 % Unsecured bonds 3,000 12/06/2018 TIIE + 18 bps Unsecured bonds 4,000 06/14/2021 TIIE + 38 bps Unsecured bonds 3,000 09/01/2026 7.19 % 14,700 Accrued interest 85 14,785 Mortgage-backed bonds 156 05/25/2032 5.00 % Mortgage-backed bonds 13 05/25/2032 6.40 % 169 Accrued interest — 169 (*) As of December 31, 2017, the balance of the issues performed by the Bank under the aforementioned program is as follows: Amount Maturity Date Rate Certificates of deposit (unsecured) 36 12/28/2018 7.42 % Certificates of deposit (unsecured) 11 12/27/2018 7.43 % Certificates of deposit (unsecured) 23 12/26/2018 7.42 % Certificates of deposit (unsecured) 28 12/24/2018 7.42 % Certificates of deposit (unsecured) 40 12/21/2018 7.42 % Certificates of deposit (unsecured) 28 12/20/2018 7.41 % Certificates of deposit (unsecured) 13 12/19/2018 7.41 % Certificates of deposit (unsecured) 13 12/18/2018 7.40 % Certificates of deposit (unsecured) 24 12/17/2018 7.40 % Certificates of deposit (unsecured) 28 12/14/2018 7.26 % Certificates of deposit (unsecured) 29 12/13/2018 7.25 % Certificates of deposit (unsecured) 31 12/11/2018 7.23 % Certificates of deposit (unsecured) 18 12/10/2018 7.20 % Certificates of deposit (unsecured) 20 12/07/2018 7.19 % Certificates of deposit (unsecured) 27 12/06/2018 7.19 % Certificates of deposit (unsecured) 19 12/05/2018 7.19 % Certificates of deposit (unsecured) 11 12/04/2018 7.19 % Certificates of deposit (unsecured) 8 12/03/2018 7.19 % Certificates of deposit (unsecured) 16 11/30/2018 7.42 % Certificates of deposit (unsecured) 1,200 12/06/2018 7.42 % Certificates of deposit (unsecured) 11 11/29/2018 7.43 % Certificates of deposit (unsecured) 600 11/28/2018 7.66 % Certificates of deposit (unsecured) 4 11/28/2018 7.42 % Certificates of deposit (unsecured) 300 11/28/2018 7.66 % Certificates of deposit (unsecured) 6 11/27/2018 7.42 % Certificates of deposit (unsecured) 4 11/26/2018 7.42 % Certificates of deposit (unsecured) 5 11/23/2018 7.42 % Certificates of deposit (unsecured) 7 11/22/2018 7.41 % Certificates of deposit (unsecured) 6 11/21/2018 7.41 % Certificates of deposit (unsecured) 7 11/20/2018 7.40 % Certificates of deposit (unsecured) 1 11/16/2018 7.26 % Certificates of deposit (unsecured) 6 11/15/2018 7.25 % Certificates of deposit (unsecured) 1 11/14/2018 7.23 % Certificates of deposit (unsecured) 500 11/05/2018 7.43 % Certificates of deposit (unsecured) 2,000 11/01/2018 7.67 % Certificates of deposit (unsecured) 1,200 09/17/2018 7.44 % Certificates of deposit (unsecured) 500 09/13/2018 7.43 % Certificates of deposit (unsecured) 2,000 09/13/2018 7.43 % Certificates of deposit (unsecured) 3,800 08/17/2018 7.43 % Certificates of deposit (unsecured) 100 08/16/2018 7.43 % Certificates of deposit (unsecured) 1,100 08/16/2018 7.62 % Certificates of deposit (unsecured) 50 07/27/2018 7.46 % Certificates of deposit (unsecured) 1,000 07/17/2018 7.55 % Certificates of deposit (unsecured) 1,000 06/25/2018 7.55 % Certificates of deposit (unsecured) 1,000 06/08/2018 7.59 % Certificates of deposit (unsecured) 500 05/24/2018 7.69 % Certificates of deposit (unsecured) 700 05/09/2018 7.64 % Certificates of deposit (unsecured) 750 02/23/2018 7.54 % Certificates of deposit (unsecured) 1,000 02/22/2018 7.50 % Certificates of deposit (unsecured) - USD 3 05/09/2018 0.96 % Certificates of deposit (unsecured) - USD 98 04/30/2018 0.99 % Certificates of deposit (unsecured) - USD 3,933 11/14/2018 1.62 % Certificates of deposit (unsecured) - USD 1 07/31/2018 0.40 % Certificates of deposit (unsecured) - USD 3 07/31/2018 0.99 % Certificates of deposit (unsecured) - USD 1 06/29/2018 0.40 % Certificates of deposit (unsecured) - USD 3 06/29/2018 0.98 % Certificates of deposit (unsecured) - USD 12 06/27/2018 0.98 % Certificates of deposit (unsecured) - USD 12 06/15/2018 0.98 % Certificates of deposit (unsecured) - USD 23 06/04/2018 0.98 % Certificates of deposit (unsecured) - USD 23 05/21/2018 0.98 % Certificates of deposit (unsecured) - USD 34 05/18/2018 0.98 % Certificates of deposit (unsecured) - USD 23 05/18/2018 0.98 % Certificates of deposit (unsecured) - USD 5 05/09/2018 0.96 % Certificates of deposit (unsecured) - USD 17 04/18/2018 1.05 % Certificates of deposit (unsecured) - USD 17 04/18/2018 1.05 % Certificates of deposit (unsecured) - USD 17 04/18/2018 1.05 % Certificates of deposit (unsecured) - USD 17 04/18/2018 1.05 % Certificates of deposit (unsecured) - USD 44 02/28/2018 0.65 % Certificates of deposit (unsecured) - USD 79 01/04/2018 0.85 % Certificates of deposit (unsecured) - USD 2,514 01/26/2018 1.70 % Certificates of deposit (unsecured) - USD 37 01/19/2018 0.85 % Certificates of deposit (unsecured) - USD 68 01/19/2018 0.85 % Certificates of deposit (unsecured) - USD 585 01/16/2018 1.20 % 27,350 Accrued interest 117 27,467 Senior Unsecured Notes 19,449 11/09/2022 4.125 % Accrued interest 109 19,558 Structured bank bonds 151 05/31/2018 Guaranteed rate subject to foreign exchange rate Structured bank bonds 59 01/04/2018 Guaranteed rate subject to foreign exchange rate Structured bank bonds 10 01/17/2018 Guaranteed rate subject to foreign exchange rate Structured bank bonds (*) 57 05/24/2021 TIIE Structured bank bonds (*) 18 05/12/2021 TIIE Structured bank bonds (*) 347 04/23/2021 TIIE Structured bank bonds (*) 7 03/16/2021 TIIE Structured bank bonds (*) 4 03/03/2021 Guaranteed rate subject to SXDP Structured bank bonds (*) 23 03/03/2021 Guaranteed rate subject to SXDP Structured bank bonds (*) 41 02/23/2021 TIIE Structured bank bonds (*) 167 12/14/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 128 11/23/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 66 11/09/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 212 11/09/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 45 11/09/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 8 11/05/2020 TIIE Structured bank bonds (*) 515 10/26/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 771 10/23/2020 TIIE Structured bank bonds (*) 36 12/27/2019 Guaranteed rate subject to Euro SX7E Structured bank bonds (*) 15 12/19/2019 Guaranteed rate subject to Euro STOXX 50 Structured bank bonds (*) 66 11/22/2019 Guaranteed rate subject to S&P 500 Structured bank bonds (*) 155 11/14/2019 Guaranteed rate subject to SXDP Structured bank bonds (*) 18 11/07/2019 Guaranteed rate subject to SXDP Structured bank bonds (*) 103 10/16/2019 Guaranteed rate subject to Euro STOXX 50 Structured bank bonds (*) 20 10/03/2019 Guaranteed rate subject to NKY and SXE Structured bank bonds (*) 90 09/25/2019 TIIE Structured bank bonds (*) 99 09/04/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 10 06/26/2019 TIIE Structured bank bonds (*) 58 06/06/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 27 06/06/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 219 06/06/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 7 06/06/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 21 05/23/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 15 04/26/2019 Guaranteed rate subject to Euro SX7E Structured bank bonds (*) 50 04/26/2019 Guaranteed rate subject to Euro STOXX 50 Structured bank bonds (*) 118 04/26/2019 Guaranteed rate subject to Euro SX7E Structured bank bonds (*) 18 04/03/2019 Guaranteed rate subject to NIKKEI 225 Structured bank bonds (*) 10 03/27/2019 Guaranteed rate subject to NIKKEI 225 Structured bank bonds (*) 110 02/21/2019 Guaranteed rate subject to Euro STOXX 50 Structured bank bonds (*) 11 02/14/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 19 11/16/2018 Guaranteed rate subject to S&P 500 and IPC Structured bank bonds (*) 167 10/19/2018 Guaranteed rate subject to INDU Structured bank bonds (*) 135 09/27/2018 Guaranteed rate subject to Euro STOXX 50 Structured bank bonds (*) 166 09/26/2018 Guaranteed rate subject to S&P 500 Structured bank bonds (*) 105 09/20/2018 Guaranteed rate subject to Euro STOXX 50 Structured bank bonds (*) 133 08/30/2018 Guaranteed rate subject to Euro STOXX 50 Structured bank bonds (*) 6 08/02/2018 Guaranteed rate subject to DAX Structured bank bonds (*) 11 08/02/2018 Guaranteed rate subject to DAX Structured bank bonds (*) 126 07/12/2018 Guaranteed rate subject to Euro SX6E Structured bank bonds (*) 305 06/29/2018 Guaranteed rate subject to IPC and S&P 500 Structured bank bonds (*) 10 06/29/2018 Guaranteed rate subject to IPC Structured bank bonds (*) 925 06/29/2018 Guaranteed rate subject to Euro SX6E Structured bank bonds (*) 10 06/29/2018 Guaranteed rate subject to Euro SX6E Structured bank bonds (*) 150 06/29/2018 Guaranteed rate subject to Euro SX6E Structured bank bonds (*) 467 06/27/2018 2.00 % Structured bank bonds (*) 13 06/08/2018 Guaranteed rate subject to IPC Structured bank bonds (*) 159 06/06/2018 TIIE Structured bank bonds (*) 127 05/31/2018 Guaranteed rate subject to Euro SX5E Structured bank bonds (*) 715 05/30/2018 Guaranteed rate subject to IPC Structured bank bonds (*) 10 05/25/2018 Guaranteed rate subject to IPC Structured bank bonds (*) 148 05/16/2018 Guaranteed rate subject to Euro SX5E Structured bank bonds (*) 101 05/09/2018 Guaranteed rate subject to IPC Structured bank bonds (*) 6 04/03/2018 Guaranteed rate subject to SXEE Structured bank bonds (*) 892 04/03/2018 Guaranteed rate subject to Euro STOXX Oil & Gas Structured bank bonds (*) 49 03/22/2018 Guaranteed rate subject to IPC Structured bank bonds (*) 46 03/20/2018 Guaranteed rate subject to IPC Structured bank bonds (*) 21 03/14/2018 Guaranteed rate subject to IPC Structured bank bonds (*) 90 03/12/2018 Guaranteed rate subject to IPC Structured bank bonds (*) 41 03/05/2018 Guaranteed rate subject to NIKKEI 225 Structured bank bonds (*) 41 03/05/2018 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 476 03/02/2018 Guaranteed rate subject to FSTE 100 Structured bank bonds (*) 10 02/21/2018 Guaranteed rate subject to IPC Structured bank bonds (*) 24 02/20/2018 Guaranteed rate subject to IPC Structured bank bonds (*) 310 02/19/2018 Guaranteed rate subject to IXE Structured bank bonds (*) 40 02/16/2018 Guaranteed rate subject to IPC Structured bank bonds (*) 14 01/04/2018 Guaranteed rate subject to EURO STOXX Oil & Gas Structured bank bonds (*) 572 01/04/2018 Guaranteed rate subject to EURO STOXX Oil & Gas Structured bank bonds (*) 181 05/17/2019 Guaranteed rate subject to Euro STOXX 50 10,726 Transaction costs and accrued interest (net) 22 10,748 Promissory notes 1,115 08/22/2018 7.53 % Promissory notes 499 08/10/2018 7.56 % Promissory notes 1,022 08/06/2018 7.57 % Promissory notes 511 08/03/2018 7.58 % Promissory notes 96 06/04/2018 7.38 % Promissory notes 868 06/04/2018 7.38 % Promissory notes 2,677 02/28/2018 7.38 % Promissory notes 1 01/23/2018 7.25 % Promissory notes 58 01/23/2018 7.25 % Promissory notes 60 01/02/2018 7.20 % Promissory notes 10,001 01/02/2018 7.25 % Promissory notes 6,500 01/02/2018 7.25 % 23,408 Accrued interest 169 23,577 Unsecured bonds 3,000 03/16/2018 8.91 % Unsecured bonds 3,000 09/01/2026 7.19 % Unsecured bonds 4,000 06/14/2021 TIIE + 38 bps Unsecured bonds 1,700 03/09/2021 TIIE + 15 bps Unsecured bonds 3,000 12/06/2018 TIIE + 18 bps 14,700 Accrued interest 98 14,798 Mortgage-backed bonds 133 05/25/2032 5.00 % Mortgage-backed bonds 15 05/25/2032 6.40 % 148 Accrued interest — 148 (*) |
Financial liabilities at fair value through profit or loss, category | |
Financial liabilities | |
Schedule of changes in financial instruments | 2016 2017 Beginning balance 12,623 12,335 Issues 1,924 2,299 Of which: Structured bank bonds 1,924 2,299 Of which: Banco Santander México, S.A. 1,924 2,299 Redemptions (2,218) (4,590) Of which: Structured bank bonds (2,218) (4,590) Of which: Banco Santander México, S.A. (2,218) (4,590) Changes in fair value 6 460 Balance at year-end 12,335 10,504 |
Financial liabilities at amortized cost | |
Financial liabilities | |
Schedule of changes in financial instruments | 2016 2017 Beginning balance 74,826 77,668 Issues 2,738,139 2,251,910 Of which: Certificates of deposit (unsecured) 56,431 70,705 Structured bank bonds 15,006 6,238 Promissory notes 2,656,702 2,174,967 Unsecured bonds 10,000 — Of which: Banco Santander México, S.A. 2,738,139 2,251,910 Redemptions (2,738,883) (2,243,323) Of which: Certificates of deposit (unsecured) (53,705) (69,455) Structured bank bonds (15,398) (6,190) Promissory notes (2,664,673) (2,167,658) Unsecured bonds (5,107) (20) Of which: Banco Santander México, S.A. (2,738,856) (2,243,303) Santander Vivienda, S.A. de C.V. (27) (20) Accrued interest 69 292 Effect of changes in foreign exchange rates 3,517 (755) Balance at year-end 77,668 85,792 |
Subordinated liabilities (Table
Subordinated liabilities (Tables) - Subordinated liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2017 Outstanding Issue Amount Annual Type Currency of Issue 12/31/2016 12/31/2017 in Foreign Currency Interest Rate (%) Tier II Subordinated Capital Notes USD 27,278 26,054 1,300,000,000 5.95 Subordinated Additional Tier I Capital Notes USD 10,298 9,831 500,000,000 8.50 Balance at year-end 37,576 35,885 |
Schedule of subordinated liabilities | 2016 2017 Beginning balance (million USD) 1,321 1,822 Issues 500 — Of which: Banco Santander México, S.A. 500 — Transaction costs and accrued interest 1 3 Balance at year-end (million USD) 1,822 1,825 Exchange rate per one USD as of December 31, 20.6194 19.6629 Balance at year-end (million pesos) 37,576 35,885 |
Schedule of changes in financial instruments arising from financing activities | Non-cash changes Foreign January 1, 2017 Cash flows Accrued Transaction exchange 12/31/2017 Type interest costs movements Tier II Subordinated Capital Notes 27,278 (803) 825 33 (1,279) 26,054 Subordinated Additional Tier I Capital Notes 10,298 — (*) — 12 (479) 9,831 Balances at 37,576 (803) 825 45 (1,758) 35,885 (*) The Bank paid 635 million pesos related to interests on the Subordinated Additional Tier I Capital Notes, which are recognized against Accumulated reserves within shareholders’ equity. |
Other financial liabilities (Ta
Other financial liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other financial liabilities | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2016 12/31/2017 Trade payables 1,929 1,895 Collection accounts: Tax payables 974 939 Financial transactions pending settlement 14,180 5,468 Other financial liabilities 2,437 5,161 19,520 13,463 |
Other financial liabilities - Financial transactions pending settlement | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2016 12/31/2017 M and M0 Mexican Government Bonds 6,199 1,973 CETES 718 1,456 UDIBONDS 2,400 1,146 Equity instruments 342 119 Other financial instruments 4,521 774 14,180 5,468 |
Other financial liabilities - Other miscellaneous financial liabilities | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2016 12/31/2017 Retentions related to loans (*) 1,004 1,587 Other payable account 1,433 3,574 2,437 5,161 (*) |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Provisions [abstract] | |
Schedule of details of provisions in the consolidated balance sheet | 12/31/2016 12/31/2017 Provisions for pensions and similar obligations 3,972 3,860 Provisions for tax and legal matters 1,306 1,072 Provisions for off-balance-sheet risk 874 1,032 Other provisions 1,050 766 Provisions 7,202 6,730 |
Schedule of changes in provisions | 2015 2016 2017 Provisions Provisions Provisions Provisions Provisions Provisions Provisions Provisions for Pensions Provisions for Off- for Pensions for Tax and for Off- for Pensions for Tax and for Off- and Similar for Tax and Balance- Other and Similar Legal Balance- Other and Similar Legal Balance- Other Obligations Legal Matters Sheet Risk Provisions Total Obligations Matters Sheet Risk Provisions Total Obligations Matters Sheet Risk Provisions Total Balance at the beginning of year 2,863 1,220 1,359 546 5,988 4,004 1,005 952 619 6,580 3,972 1,306 874 1,050 7,202 Additions charged (credited) to net income: Interest expense and similar charges 213 — — — 213 317 — — — 317 332 — — — 332 Personnel expenses – Defined Benefit Plan 188 — — — 188 201 — — — 201 146 — — — 146 Personnel expenses – Defined Contribution Plan (Note 41) 272 — — — 272 300 — — — 300 330 — — — 330 Other (24) — — — (24) (186) — — — (186) 51 — — — 51 Actuarial (gains)/losses recognized in the year in Other comprehensive income 953 — — — 953 (530) — — — (530) (666) — — — (666) Period provisions — (33) (407) 205 (235) — 624 (78) 521 1,067 — 197 158 31 386 Contributions from the employer — — — — 542 — — — 542 225 — — — 225 Payments to pensioners and pre-retirees with a charge to internal provisions (178) — — — (178) (365) — — — (365) (191) — — — (191) Other payments (*) — (182) — (132) (314) — (323) — (90) (413) — (431) — (315) (746) Payments to Defined Contribution Plan (272) — — — (272) (300) — — — (300) (330) — — — (330) Transfers and other changes (11) — — — (11) (11) — — — (11) (9) — — — (9) Balances at the end of year 4,004 1,005 952 619 6,580 3,972 1,306 874 1,050 7,202 3,860 1,072 1,032 766 6,730 (*) |
Schedule of Provision for pensions and similar obligations | 12/31/2016 12/31/2017 Provisions for post-employment plans Of which: Defined benefit pension plan 3,951 3,830 Provisions for defined contribution pension plan 21 30 Provisions for pensions and similar obligations 3,972 3,860 |
Schedule of actuarial assumptions used to calculate defined benefit obligations | Defined Benefit Pension Plan 12/31/2016 12/31/2017 Annual discount rate 9.0 % 9.3 % Mortality tables EMSSA 1997 EMSSA 1997 Expected return on plan assets 9.0 % 9.3 % Cumulative annual INPC growth 3.5 % 3.5 % Annual salary increase rate 4.5 % 4.5 % Annual minimum salary increase rate 3.5 % 3.5 % Medical cost trend rates 7.12 % 7.12 % |
Schedule of funding status of the defined benefit obligations | Defined Benefit Pension Plan 12/31/2016 12/31/2017 Present value of the obligations: Pension plan 2,283 2,019 Post-employment benefits 4,440 4,000 Other 654 712 7,377 6,731 Less: Fair value of plan assets (3,426) (2,901) Provisions – Provisions for pensions 3,951 3,830 Of which: Internal provisions for pensions 3,951 3,830 |
Schedule of defined benefit obligation recognised in consolidated income statement | Defined Benefit Pension Plan 2015 2016 2017 Current service cost (Note 41) 188 201 146 Interest cost (net) 213 317 332 Other (24) (186) 51 377 332 529 |
Schedule of changes in the present value of the accrued defined benefit obligations | Defined Benefit Pension Plans 2016 2017 Present value of the obligations at the beginning of year 7,864 7,377 Current service cost (Note 41) 201 146 Interest cost 643 633 Benefits paid (818) (737) Actuarial (gains)/losses (512) (681) Other (1) (7) Present value of the obligations at the end of year 7,377 6,731 |
Schedule of changes in fair value of plan assets | Defined Benefit Pension Plan 2016 2017 Fair value of plan assets at the beginning of year 3,881 3,426 Actual return on plan assets 539 242 Transfer of funds to defined contribution plan (542) (225) Benefits paid (452) (542) Other — — Fair value of plan assets at the end of year 3,426 2,901 |
Schedule of categories of plan assets as a percentage of total plan assets | Defined Benefit Pension Plan 12/31/2016 12/31/2017 Equity instruments 27 % 29 % Cash and debt instruments 73 % 71 % |
Schedule of off-balance-sheet risks | 12/31/2016 12/31/2017 Available lines of credit cards and non-revolving consumer loans 759 838 Guarantees and loan commitments of commercial and public sector loans 115 194 874 1,032 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other liabilities | |
Schedule of other liabilities | 12/31/2016 12/31/2017 Sundry creditors 3,637 3,493 Cash balances undrawn 5,988 5,167 Cash-settled share-based payments 534 784 Accrued personnel obligations 1,561 2,211 Other obligations 1,395 1,735 Credit and debit card operation balances 1,283 1,690 14,398 15,080 |
Tax matters (Tables)
Tax matters (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tax matters | |
Schedule of income tax expense | 2015 2016 2017 Current tax expense: Tax expense for current year 4,983 5,138 4,215 Deferred tax expense (benefit): Origination and reversal of temporary difference and usage (accrual) of tax carryforward benefits (679) 213 1,281 Total Income Tax expense 4,304 5,351 5,496 |
Schedule of income tax reconciliation | 2015 2016 2017 Profit before tax 18,368 21,887 24,174 Income tax at 30% 5,510 6,566 7,252 Increase/(Decrease) due to permanent differences Of which: Due to effect of inflation (999) (982) (1,742) Due to effect of tangible assets (87) (154) (78) Due to effect of tax audit settlements (*) (31) — — Due to effect of non-deductible expenses, non-taxable income and others (89) (79) 64 Income Tax 4,304 5,351 5,496 Effective tax rate 23.43 % 24.45 % 22.74 % Current tax liability — — — Income tax 4,304 5,351 5,496 Of which: Current tax 4,983 5,138 4,215 Deferred taxes (679) 213 1,281 (*) |
Schedule of tax recognized in equity | 2015 2016 2017 Net tax credited/(charged) to consolidated equity: Remeasurement of defined benefit obligation 286 (158) (200) Measurement of Available-for-sale – Debt instruments 51 1,158 (478) Measurement of Available-for-sale – Equity instruments 2 16 1 Measurement of Financial derivatives (Cash flow hedges) (260) (207) 440 Paid interests on Subordinated Additional Tier I Capital Notes — — 191 79 809 (46) |
Schedule of deferred tax assets and liabilities | 12/31/2016 12/31/2017 Total deferred tax assets prior to offsetting 20,881 17,184 Of which: Tangible assets and deferred charges 2,413 2,457 Provisions 1,144 1,659 Impairment losses on loans and receivables 9,313 8,337 Unrealized losses on financial instruments 3,460 — Net operating losses carryforward (*) 169 106 Capital losses carryforward(*) 2,525 2,689 Labor provisions 1,149 1,022 Fees and interest collected in advance 708 579 Foreign exchange rate derivatives — 335 Total deferred tax liabilities prior to offsetting (2,841) (635) Of which: Unrealized gains on financial instruments 68 (20) Foreign exchange rate derivatives (2,069) — Prepayments (394) (467) Labor provisions (101) — Other (345) (148) (*) |
Schedule of net operating losses carryforward | As of December 31, 2017, the detail of Net operating losses carryforward is as follows: Year of origination Year of expiration Amount Deferred tax asset 2010 2020 46 14 2011 2021 192 58 2014 2024 24 7 2015 2025 87 26 2016 2026 5 1 354 106 |
Schedule of capital losses carryforward | As of December 31, 2017, the detail of Capital losses carryforward is as follows: Year of origination Year of expiration Amount Deferred tax asset 2015 2025 2,284 685 2016 2026 3,627 1,088 2017 2027 3,051 916 8,962 2,689 |
Schedule of of deferred tax assets and liabilities | 12/31/2016 12/31/2017 Presented as deferred tax assets ( * ) 18,045 16,600 Presented as deferred tax liabilities (5) (51) Net 18,040 16,549 (*) |
Schedule of changes in deferred tax assets and liabilities | (Charge)/ Credit to Consolidated (Charge)/ Credit to Other Consolidated Comprehensive Other 01/01/2016 Income Income Movements 12/31/2016 Deferred tax assets 18,548 2,333 — — 20,881 Deferred tax liabilities (1,381) (2,546) 809 277 (2,841) 17,167 (213) 809 277 18,040 (Charge)/ Credit to Consolidated (Charge)/ Credit to Other Consolidated Comprehensive Other 01/01/2017 Income Income Movements 12/31/2017 Deferred tax assets 20,881 (3,561) (136) — 17,184 Deferred tax liabilities (2,841) 2,280 (101) 27 (635) 18,040 (1,281) (237) 27 16,549 |
Non-controlling interests (Tabl
Non-controlling interests (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Non-controlling interests | |
Schedule of subsidiary of Equity - Non-controlling interests | 12/31/2016 12/31/2017 Equity as of balance-sheet date attributable to non-controlling interests: Of which: Fideicomiso GFSSLPT, Banco Santander México, S.A. 41 14 Other 14 15 55 29 Profit for the year attributable to non-controlling interests: Of which: Fideicomiso GFSSLPT, Banco Santander México, S.A. — — Other — — |
Schedule of changes in Non-controlling interests | 2016 2017 Beginning balance 58 55 Profit for the year attributable to non-controlling interests — — Other (3) (26) Balance at year-end 55 29 |
Valuation adjustments (Tables)
Valuation adjustments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Valuation adjustments | |
Schedule of breakdown by type of financial instrument of Valuation adjustments - Available-for-sale financial assets | 12/31/2016 12/31/2017 Net Net Valuation Valuation Valuation Valuation Gains/ Fair Valuation Valuation Gains/ Fair Gains Losses (Losses) Value Gains Losses (Losses) Value Debt instruments 498 (3,951) (3,453) 154,318 2,784 (849) 1,935 164,947 Equity instruments 1 (53) (52) 326 23 (26) (3) 795 |
Schedule of changes in the cumulative valuation adjustments recorded to Available-for-sale financial assets | Debt Equity Instruments Instruments Total Balance at January 1, 2015 (558) 12 (546) Valuation adjustments (192) (4) (196) Amounts reclassified to consolidated income statement 161 — 161 Income taxes 51 2 53 Balance at December 31, 2015 (538) 10 (528) Valuation adjustments (3,453) (52) (3,505) Amounts reclassified to consolidated income statement (120) — (120) Income taxes 1,158 16 1,174 Balance at December 31, 2016 (2,953) (26) (2,979) Valuation adjustments 1,935 (3) 1,932 Amounts reclassified to consolidated income statement (9) — (9) Income taxes (478) 1 (477) Balance at December 31, 2017 (1,505) (28) (1,533) |
Schedule of breakdown of the accumulated gain or loss on the effective portion of the hedging to the cumulative valuation adjustment for cash flow hedges | 2016 2017 Accumulated (loss)/gain on cash flow hedges 1,297 302 Accumulated gain related to discontinued cash flow hedges (Note 13) 86 54 Balance at December 31, 1,383 356 |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Shareholders' equity | |
Share capital | Total Par Value Number of Shares (Millions of Pesos) 12/31/2016 12/31/2017 12/31/2016 12/31/2017 Fixed capital: Series "F" shares 67,792,912,762 67,792,912,762 6,779 6,779 Series "B" shares 13,062,491,041 13,062,491,041 1,307 1,307 80,855,403,803 80,855,403,803 8,086 8,086 Authorized unsubscribed capital: Series "F" shares 7,862,838,825 7,862,838,825 — — 7,862,838,825 7,862,838,825 — — 88,718,242,628 88,718,242,628 8,086 8,086 |
Minimum capital requirements (T
Minimum capital requirements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum capital requirements | |
Schedule of minimum capital requirements calculated in accordance with the Mexican Banking GAAP for the Bank | 12/31/2016 12/31/2017 Computable capital: 109,237 115,321 Core capital 107,187 116,126 Supplementary capital 27,453 26,054 Deductible items (35,700) (36,671) Subordinated Additional Tier 1 Capital Notes (see Note 22.c.) 10,297 9,812 Capital requirements: 55,509 58,668 Market risk 8,642 11,039 Credit risk 43,698 44,313 Operational risk 3,169 3,316 Excess of capital requirements 53,724 56,653 Risk-weighted assets 693,964 733,346 |
Schedule of capital ratios in accordance to the data published by the CNBV | 12/31/2016 12/31/2017 Net Capital / Required Capital 1.97 1.97 Minimum capital requirements Not applicable Not applicable Basic Fundamental Capital / Assets subject to Credit, Market and Operating Risk 10.30 % 10.83 % Minimum capital requirements 7.30 % 7.60 % Basic Capital / Assets subject to Credit, Market and Operating Risk 11.79 % 12.17 % Minimum capital requirements 8.80 % 9.10 % Net Capital / Assets subject to Credit Risk 20.00 % 20.82 % Minimum capital requirements Not applicable Not applicable Net Capital / Assets subject to Credit, Market and Operating Risk 15.74 % 15.73 % Minimum capital requirements 10.80 % 11.10 % |
Memorandum accounts (Tables)
Memorandum accounts (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Memorandum accounts | |
Schedule of contingent commitments | Contingent commitments 12/31/2016 12/31/2017 Available lines of credit cards and non-revolving consumer loans 140,658 136,649 Guarantees, documentary credits and loan commitments of commercial and public sector loans 61,753 78,381 Guarantees, documentary credits and loan commitments of commercial loans (SMEs) 312 432 Total 202,723 215,462 |
Schedule of of financial instruments received as collateral | Financial instruments received as collateral 12/31/2016 12/31/2017 Debt instruments received in OTC derivatives transactions 5,215 3,783 Debt instruments received in reverse repurchase agreement transactions 42,360 51,693 Equity instruments received in securities loans transactions 3 7 Total 47,578 55,483 |
Derivatives - Nominal amounts84
Derivatives - Nominal amounts and fair values of trading and hedging derivatives (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial liabilities held for trading | |
Financial instruments | |
Schedule of breakdown of the fair value and nominal amount of trading derivatives | 12/31/2016 12/31/2017 Trading Nominal Fair Value Nominal Fair Value Futures: Foreign Currency Futures 1,031 — — — Interest Rate Futures 47,560 28 3,500 — Market Index Futures 85 — 190 — Forwards: Foreign Currency Forwards 131,512 6,083 113,417 5,022 Foreign Exchange Spot 67,484 107 35,776 71 Interest Rate Forwards — — — — Market Index Forwards 107 4 7,742 90 Options: Foreign Currency Options 16,782 574 123,537 2,655 Interest Rate Options 140,299 1,904 117,167 1,197 Market Index Options 16,609 504 3,297 323 Equity Options 72 2 93 3 Swaps: IRS 1,866,944 63,787 2,682,892 59,830 Equity Swap — — — 26 CCS 403,720 132,697 431,644 102,065 Total Trading 2,692,205 205,690 3,519,255 171,282 |
Hedging derivatives | |
Financial instruments | |
Schedule of breakdown of the fair value and nominal amount of trading derivatives | 12/31/2016 12/31/2017 Hedging Nominal Fair Value Nominal Fair Value Cash flow hedge: IRS 1,050 20 700 — CCS 13,680 4,222 10,717 3,799 Foreign Currency Forwards 24,433 6,318 31,762 720 Fair value hedge: IRS 1,124 97 1 — CCS 15,836 3,630 24,680 6,572 Total Hedging 56,123 14,287 67,860 11,091 Total Derivatives Liabilities 2,748,328 219,977 3,587,115 182,373 |
Financial assets held for trading | |
Financial instruments | |
Schedule of breakdown of the fair value and nominal amount of trading derivatives | 12/31/2016 12/31/2017 Trading Nominal Fair Value Nominal Fair Value Futures: Foreign Currency Futures 577 50 6,263 — Interest Rate Futures 5,664 6 1,505 — Market Index Futures 481 10 — — Forwards: Foreign Currency Forwards 129,707 6,636 117,917 5,188 Foreign Exchange Spot 30,210 47 54,653 112 Equity Forwards 601 3 7,744 93 Options: Foreign Currency Options 15,824 383 104,023 2,072 Interest Rate Options 142,801 1,698 125,931 1,339 Market Index Options 10,791 874 7,644 579 Equity Options 44 1 93 3 Swaps: IRS 1,895,718 62,885 2,663,538 57,556 Equity Swap — — 1,674 267 CCS 541,363 127,314 464,667 98,052 Total Trading 2,773,781 199,907 3,555,652 165,261 |
Hedging derivatives | |
Financial instruments | |
Schedule of breakdown of the fair value and nominal amount of trading derivatives | 12/31/2016 12/31/2017 Hedging Nominal Fair Value Nominal Fair Value Cash flow hedge: IRS 1,000 2 4,000 91 CCS 32,733 14,908 31,215 12,577 Foreign Currency Forwards — — 22,061 2,389 Fair value hedge: IRS 3,357 66 2,138 59 CCS 658 27 — — Total Hedging 37,748 15,003 59,414 15,116 Total Derivatives Assets 2,811,529 214,910 3,615,066 180,377 |
Financial instruments in connection with derivative transactions in organized markets | |
Financial instruments | |
Schedule of collateral provided/delivered | 12/31/2016 12/31/2017 Collateral provided: Of which: Mercado Mexicano de Derivados, S.A. de C.V. (MexDer) Cash 2,771 2,216 Chicago Mercantile Exchange Cash 334 350 Foreign financial institutions Cash 77 — 3,182 2,566 |
Financial instrument in connection with OTC derivative transactions | |
Financial instruments | |
Schedule of collateral provided/delivered | 12/31/2016 12/31/2017 Loans and receivables – Loans and advances to credit institutions: Of which (Note 8): Mexican financial institutions Cash 19,391 15,916 Foreign financial institutions Cash 32,023 18,626 51,414 34,542 Financial assets held for trading – Debt instruments: Of which (Note 9): Mexican financial institutions Bonds 2,670 2,822 Foreign financial institutions Bonds — 142 2,670 2,964 |
Schedule of collateral received | 12/31/2016 12/31/2017 Deposits from credit institutions and Customer deposits: Of which (Notes 19 and 20): Mexican financial institutions Cash 10,106 8,425 Foreign financial institutions Cash 37,592 36,350 Other Cash 123 249 47,821 45,024 12/31/2016 12/31/2017 Memorandum accounts: Of which (Note 31): Mexican financial institutions Bonds 5,215 3,783 5,215 3,783 |
Interest income and similar i85
Interest income and similar income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Interest income and similar income | |
Schedule of the main interest income and similar income items | 2015 2016 2017 Cash and balances with the Central Bank 1,102 1,418 2,081 Loans and advances to credit institutions 2,102 2,832 4,804 Loans and advances to customers 50,227 59,264 72,263 Debt instruments 10,513 13,149 16,791 Hedging derivatives 237 703 1,895 Other interest income 49 87 168 64,230 77,453 98,002 |
Interest expenses and similar86
Interest expenses and similar charges (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Interest expenses and similar charges | |
Schedule of the main items of interest expenses and similar charges | 2015 2016 2017 Deposits from credit institutions 6,001 6,145 7,564 Customer deposits 9,026 14,609 24,560 Marketable debt securities 1,893 2,625 3,696 Subordinated liabilities 1,259 1,473 1,600 Hedging derivatives 463 167 129 Other interest expenses 2,600 3,304 4,609 21,242 28,323 42,158 |
Dividend income (Tables)
Dividend income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Dividend income | |
Schedule of Dividend income | 2015 2016 2017 Equity instruments classified as: Financial assets held for trading 37 16 5 Of which: NAFTRAC (Exchange-traded fund or ETF) 14 6 2 América Móvil, S.A.B, de C.V. 2 1 1 Grupo México, S.A.B. de C.V. 2 — — Wal-Mart de México, S.A.B. de C.V. 6 3 1 Fomento Económico Mexicano, S.A.B. de C.V. 1 1 — Others 12 5 1 Available-for-sale financial assets 67 78 145 Of which: Controladora Prosa, S.A. de C.V. — — 62 Trans Unión de México, S.A. 51 57 83 Dun & Bradstreet de México S.A. de C.V. — 20 — Others 16 1 — 104 94 150 |
Fee and commission income (Tabl
Fee and commission income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fee and commission income | |
Schedule of fee and commission income | 2015 2016 2017 Collection and payment services: Service charges on deposit accounts 896 951 1,046 Credit and debit cards 4,687 5,369 6,268 Checks and others 257 253 252 5,840 6,573 7,566 Marketing of nonbanking financial products: Investment funds management 1,193 1,486 1,457 Capital markets and securities activities 290 439 513 Collection and payment services 2,114 2,334 2,568 Insurance 4,104 4,272 4,341 Financial advisory services 1,373 1,222 1,341 9,074 9,753 10,220 Securities services: Administration and custody 464 528 524 464 528 524 Other: Foreign currency transactions 866 1,080 1,111 Other fees and commissions 893 836 895 1,759 1,916 2,006 17,137 18,770 20,316 |
Fee and commission expenses (Ta
Fee and commission expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fee and commission expenses | |
Schedule of fee and commission expense | 2015 2016 2017 Credit and debit cards 1,895 2,894 3,250 Checks and others 23 26 25 Collections and transactional services 123 158 226 Fund management 25 4 2 Capital markets and securities activities 102 135 199 Financial advisory services — 16 6 Other fees and commissions 1,337 1,597 1,795 3,505 4,830 5,503 |
Gains or losses on financial 90
Gains or losses on financial assets and liabilities (net) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Gains or losses on financial assets and liabilities (net) | |
Summary of Gains/(losses) on financial assets and liabilities (net) | 2015 2016 2017 Financial instruments held for trading 2,405 3,626 3,223 Of which: Debt instruments 487 784 494 Equity instruments 96 109 29 Derivatives 1,916 2,765 2,736 Others (94) (32) (36) Recognized profit from sale of available-for-sale financial instruments 177 120 9 Hedging derivatives (78) 14 226 Of which: Fair value hedge – hedged items (Note 13) (105) 375 341 Fair value hedge – hedging derivative instruments (Note 13) 23 (363) (117) Cash flow hedge inefficiency (Note 13) 4 2 2 2,504 3,760 3,458 |
Other operating income and ot91
Other operating income and other operating expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other operating income and other operating expenses | |
Schedule of other operating income and other operating expenses | 2015 2016 2017 Other operating income: Other operating income 472 486 669 472 486 669 Other operating expenses: IPAB fund contribution (2,238) (2,631) (2,894) Other operating expenses (772) (730) (720) (3,010) (3,361) (3,614) |
Personnel expenses (Tables)
Personnel expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Personnel expenses | |
Schedule of detail of personnel expenses | 2015 2016 2017 Wages and salaries 5,211 5,542 6,300 Social security costs 912 1,037 1,105 Service expense related to defined contribution pension plan (Note 24) 272 300 330 Service expense related to defined benefit pension plan (Note 24) 188 201 146 Share-based payments 161 131 283 Other staff costs 1,547 1,474 1,289 Bonus and benefits granted to employees 2,334 2,787 3,295 10,625 11,472 12,748 |
Schedule of bonus payment percentages and deferral periods | Beneficiaries Immediate Payment (millions of Euros) Percentage Deferred Percentage Deferral period Executive officers and members of the identified staff with total variable remuneration ≥ 2.7 40 % 60 % 5 years Executives officers and members of the identified staff with total variable remuneration ≥ 1.7 (< 2.7) 50 % 50 % 5 years Other beneficiaries 60 % 40 % 3 years |
Other general administrative 93
Other general administrative expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other general administrative expenses | |
Schedule of Other general administrative expenses | 2015 2016 2017 Maintenance, conservation and repair 968 1,073 1,227 Technology and systems 2,334 2,555 2,790 Stationery and supplies 212 197 215 Advertising and communications 722 901 968 Rents 1,836 1,839 1,963 Administrative services 502 926 936 Taxes other than income tax 1,280 1,360 1,454 Surveillance and cash courier services 611 699 894 Insurance premiums 70 82 78 Travel costs 298 215 293 Other administrative expenses 1,322 1,336 1,871 10,155 11,183 12,689 |
Schedule of audit and tax services | 2015 2016 2017 Audit fees and audit-related fees (*) 40 58 72 Tax fees 2 — 1 42 58 73 (*) |
Gains_(losses) on disposal of94
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) | |
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) | 2015 2016 2017 Gains: On disposal of tangible assets 7 20 6 7 20 6 |
Other disclosures (Tables)
Other disclosures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other disclosures | |
The breakdown by maturity of the balances of certain items in the consolidated balance sheets | The breakdown by maturity of the balances of certain items in the consolidated balance sheets as of December 31, 2016, is as follows: 12/31/2016 Less More On than 1 1 to 3 3 to 12 1 to 3 3 to 5 than 5 Demand Month Months Months Years Years Years Total Assets: Cash and balances with the Central Bank 24,887 25,382 200 100 — — 28,094 78,663 Financial assets held for trading Debt instruments — 31,784 5,697 9,197 50,667 33,703 9,805 140,853 Equity instruments 1,822 — — — — — — 1,822 Trading derivatives 100 2,357 8,947 18,608 35,245 23,864 110,786 199,907 Other Financial Assets at Fair Value through Profit or Loss - Loans and advances to credit institutions – Reverse repurchase Agreements — 37,831 — — — — — 37,831 Loans and advances to customers –Reverse repurchase agreements — 4,509 — — — — — 4,509 Available-for-sale financial assets - Debt instruments — 34,360 1,985 581 76,096 16,358 24,938 154,318 Equity instruments — — — — — — 326 326 Loans and receivables - Loans and advances to credit institutions — 82,293 — — — 95 — 82,388 Loans and advances to customers 13,700 35,639 56,535 132,051 148,389 68,852 126,472 581,638 Debt instruments — — — 904 — — 10,568 11,472 Hedging derivatives — 1 4 12 9,306 50 5,630 15,003 40,509 254,156 73,368 161,453 319,703 142,922 316,619 1,308,730 Liabilities: Financial liabilities held for trading - Trading derivatives 464 4,539 4,680 20,777 36,497 27,166 111,567 205,690 Short positions — 61,138 — — — — — 61,138 Other Financial Liabilities at Fair Value through Profit or Loss - Deposits from the Central Bank — 15,025 403 51 — — — 15,479 Deposits from credit institutions — 25,155 — — — — — 25,155 Customer deposits — 83,157 734 — — — — 83,891 Marketable debt securities — 92 1,142 2,476 6,085 2,540 — 12,335 Financial liabilities at amortized cost - Deposits from credit institutions 39,428 15,871 22,331 2,591 14,070 5,031 — 99,322 Customer deposits 418,228 101,303 28,969 15,938 2,865 2,067 2,635 572,005 Marketable debt securities — 19,493 5,506 17,447 6,014 5,700 23,508 77,668 Subordinated liabilities — 664 — — — — 36,912 37,576 Other financial liabilities 5 16,431 2,070 937 77 — — 19,520 Hedging derivatives 6,318 152 23 138 499 1,863 5,294 14,287 464,443 343,020 65,858 60,355 66,107 44,367 179,916 1,224,066 Difference (assets less liabilities) (423,934) (88,864) 7,510 101,098 253,596 98,555 136,703 84,664 The breakdown by maturity of the balances of certain items in the consolidated balance sheets as of December 31, 2017, is as follows: 12/31/2017 Less More On than 1 1 to 3 3 to 12 1 to 3 3 to 5 than 5 Demand Month Months Months Years Years Years Total Assets: Cash and balances with the Central Bank 21,539 8,054 — — — — 28,094 57,687 Financial assets held for trading Debt instruments — 67,280 2,551 15,455 23,077 32,379 7,005 147,747 Equity instruments 2,562 — — — — — — 2,562 Trading derivatives 9,118 2,738 4,223 11,273 25,527 28,714 83,668 165,261 Other Financial Assets at Fair Value through Profit or Loss - Loans and advances to credit institutions – Reverse repurchase Agreements — 46,087 — — — — — 46,087 Loans and advances to customers –Reverse repurchase agreements — 5,618 — — — — — 5,618 Available-for-sale financial assets - Debt instruments — 18,693 59 35,567 58,067 21,987 30,574 164,947 Equity instruments — — — — — — 795 795 Loans and receivables - Loans and advances to credit institutions — 59,122 — — — — — 59,122 Loans and advances to customers 13,455 33,027 52,867 143,821 164,881 76,258 125,111 609,420 Debt instruments — — — — — 1,378 9,380 10,758 Hedging derivatives 2,375 — — — 7,707 5,017 17 15,116 49,049 240,619 59,700 206,116 279,259 165,733 284,644 1,285,120 Liabilities: Financial liabilities held for trading - Trading derivatives 9,320 2,333 3,059 13,769 26,343 25,818 90,640 171,282 Short positions — 68,443 — — — — — 68,443 Other Financial Liabilities at Fair Value through Profit or Loss - Deposits from the Central Bank — 22,417 — — — — — 22,417 Deposits from credit institutions — 5,942 — — — — — 5,942 Customer deposits — 81,009 781 — — — — 81,790 Marketable debt securities — 586 1,146 4,907 3,368 497 — 10,504 Financial liabilities at amortized cost - Deposits from credit institutions 14,828 35,815 2,127 2,368 11,094 7,475 2,808 76,515 Customer deposits 422,495 102,395 39,643 38,355 3,060 1,939 889 608,776 Marketable debt securities — 20,138 7,583 29,734 47 25,141 3,149 85,792 Subordinated liabilities — 650 — — — — 35,235 35,885 Other financial liabilities 42 5,543 6,306 904 34 634 — 13,463 Hedging derivatives — — — 145 2,070 1,630 7,246 11,091 446,685 345,271 60,645 90,182 46,016 63,134 139,967 1,191,900 Difference (assets less liabilities) (397,636) (104,652) (945) 115,934 233,243 102,599 144,677 93,220 |
The detail of the undiscounted contractual maturities of the existing financial liabilities at amortized cost | The detail of the undiscounted contractual maturities of the existing financial liabilities at amortized cost as of December 31, 2016, is as follows: 12/31/2016 Less More On than 1 1 to 3 3 to 12 1 to 3 3 to 5 than 5 Demand Month Months Months Years Years Years Total Financial liabilities at amortized cost: Deposits from credit institutions 39,428 16,047 22,718 3,399 15,511 5,410 — 102,513 Customer deposits 418,228 101,736 29,421 16,773 3,436 2,422 3,430 575,446 Marketable debt securities — 19,788 6,167 19,844 9,219 8,358 29,925 93,301 Subordinated liabilities — 852 376 1,692 4,512 4,512 52,704 64,648 Other financial liabilities 5 16,431 2,070 937 77 — — 19,520 457,661 154,854 60,752 42,645 32,755 20,702 86,059 855,428 The detail of the undiscounted contractual maturities of the existing financial liabilities at amortized cost as of December 31, 2017, is as follows: 12/31/2017 Less More On than 1 1 to 3 3 to 12 1 to 3 3 to 5 than 5 Demand Month Months Months Years Years Years Total Financial liabilities at amortized cost: Deposits from credit institutions 14,828 36,126 2,518 3,820 13,721 8,739 5,052 84,804 Customer deposits 422,495 103,171 40,737 40,802 3,770 2,286 1,325 614,586 Marketable debt securities — 20,589 8,617 33,392 3,618 28,706 4,141 99,063 Subordinated liabilities — 847 392 1,768 4,713 4,713 48,697 61,130 Other financial liabilities 42 5,543 6,306 904 34 634 — 13,463 437,365 166,276 58,570 80,686 25,856 45,078 59,215 873,046 |
The breakdown of the main foreign currency balances in the consolidated balance sheet based on the nature of the related items | Equivalent Value in Millions of Pesos 12/31/2016 12/31/2017 Assets Liabilities Assets Liabilities Cash and balances with the Central Bank 2,110 — 2,987 — Debt instruments (Note 9) 86,253 — 122,786 — Equity instruments (Note 10) — — — — Loans and advances to credit institutions (Note 8) 60,590 — 35,898 — Loans and advances to customers 92,198 — 69,879 — Other assets 456 — 561 — Marketable debt securities (Note 21) — 22,942 — 27,508 Subordinated liabilities — 37,635 — 35,926 Derivatives — 13,201 — 48,926 Deposits from credit institutions (Note 19) — 38,113 — 4,527 Customer deposits (Note 20) — 116,706 — 105,929 Other financial liabilities — 5,730 — 2,328 Provisions — 1 — — Other liabilities — 1,049 — 1,221 |
Schedule of Financial assets measured at other than fair value | As of December 31, 2016 Total fair Total Assets Level 1 Level 2 Level 3 values carrying amount Financial assets at amortized cost: Balances with the Central Bank (Note 7) 53,776 — — 53,776 53,776 Loans and advances to credit institutions (Note 8) 51,491 — 30,896 82,387 82,388 Loans and advances to customers (Note 12) 3,214 — 602,736 605,950 581,638 Debt instruments (unlisted) (Note 9) — — 11,472 11,472 11,472 As of December 31, 2017 Total fair Total Assets Level 1 Level 2 Level 3 values carrying amount Financial assets at amortized cost: Balances with the Central Bank (Note 7) 36,148 — — 36,148 36,148 Loans and advances to credit institutions (Note 8) 34,542 — 24,580 59,122 59,122 Loans and advances to customers (Note 12) 2,587 — 636,713 639,300 609,420 Debt instruments (unlisted) (Note 9) — — 10,758 10,758 10,758 |
Schedule of Financial liabilities measured at other than fair value | As of December 31, 2016 Total fair Total Liabilities Level 1 Level 2 Level 3 values carrying amount Financial liabilities at amortized cost: Deposits from credit institutions (Note 19) 33,474 62,750 2,621 98,845 99,322 Customer deposits (Note 20) 14,456 559,031 — 573,487 572,005 Marketable debt securities (Note 21) 20,245 57,082 — 77,327 77,668 Subordinated liabilities (Note 22) 36,910 — — 36,910 37,576 Other financial liabilities (Note 23) 19,520 — — 19,520 19,520 As of December 31, 2017 Total fair Total Liabilities Level 1 Level 2 Level 3 values carrying amount Financial liabilities at amortized cost: Deposits from credit institutions (Note 19) 31,157 42,988 2,316 76,461 76,515 Customer deposits (Note 20) 13,867 594,592 — 608,459 608,776 Marketable debt securities (Note 21) 20,330 66,168 — 86,498 85,792 Subordinated liabilities (Note 22) 37,434 — — 37,434 35,885 Other financial liabilities (Note 23) 13,463 — — 13,463 13,463 |
Operating segments (Tables)
Operating segments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Operating segments | |
Schedule of consolidated income statement and other significant data | The 2015 consolidated income statement and other significant data are as follows: Global Retail Corporate Corporate 2015 Banking Banking Activities Total Net interest income 37,514 4,060 1,414 42,988 Dividend income — 24 80 104 Net fee and commission income 11,839 1,786 7 13,632 Gains/(losses) on financial assets and liabilities and exchange differences (net) 866 1,060 584 2,510 Other operating income/(expenses) (2,101) (466) 29 (2,538) Total income 48,118 6,464 2,114 56,696 Administrative expenses (18,647) (1,956) (177) (20,780) Depreciation and amortization (1,759) (94) (10) (1,863) Impairment losses on financial assets (net) (15,081) (960) — (16,041) Impairment losses on other assets (net) — — — — Provisions (net) 265 — (7) 258 Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) — — 7 7 Gains/(losses) on disposal of non-current assets not classified as discontinued operations (net) — — 91 91 Operating profit before tax 12,896 3,454 2,018 18,368 Income tax (4,304) Profit for the year 14,064 Profit attributable to the Parent 14,051 Profit attributable to non-controlling interest 13 Total assets 473,399 524,098 178,337 1,175,834 Total liabilities 404,431 414,004 249,641 1,068,076 The 2016 consolidated income statement and other significant data are as follows: Global Retail Corporate Corporate 2016 Banking Banking Activities Total Net interest income 42,277 4,899 1,954 49,130 Dividend income — — 94 94 Net fee and commission income 12,211 1,749 (20) 13,940 Gains/(losses) on financial assets and liabilities and exchange differences (net) 721 2,682 359 3,762 Other operating income/(expenses) (2,104) (649) (122) (2,875) Total income 53,105 8,681 2,265 64,051 Administrative expenses (19,955) (2,440) (260) (22,655) Depreciation and amortization (1,890) (158) (10) (2,058) Impairment losses on financial assets (net) (15,955) (706) — (16,661) Provisions (net) (75) (29) (777) (881) Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) — — 20 20 Gains/(losses) on disposal of non-current assets not classified as discontinued operations (net) — — 71 71 Operating profit before tax 15,230 5,348 1,309 21,887 Income tax (5,351) Profit for the year 16,536 Profit attributable to the Parent 16,536 Profit attributable to non-controlling interest — Total assets 519,589 588,596 242,752 1,350,937 Total liabilities 475,625 564,131 205,954 1,245,710 The 2017 consolidated income statement and other significant data are as follows: Global Retail Corporate Corporate 2017 Banking Banking Activities Total Net interest income 47,969 5,295 2,580 55,844 Dividend income — 5 145 150 Net fee and commission income 13,047 1,758 8 14,813 Gains/(losses) on financial assets and liabilities and exchange differences (net) 786 2,532 146 3,464 Other operating income/(expenses) (2,136) (505) (304) (2,945) Total income 59,666 9,085 2,575 71,326 Administrative expenses (22,377) (2,759) (301) (25,437) Depreciation and amortization (2,317) (204) (12) (2,533) Impairment losses on financial assets (net) (17,763) (1,057) — (18,820) Provisions (net) (98) 20 (359) (437) Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) — — 6 6 Gains/(losses) on disposal of non-current assets not classified as discontinued operations (net) — — 69 69 Operating profit before tax 17,111 5,085 1,978 24,174 Income tax (5,496) Profit for the year 18,678 Profit attributable to the Parent 18,678 Profit attributable to non-controlling interest Total assets 551,250 531,295 246,646 1,329,191 Total liabilities 521,787 521,284 170,710 1,213,781 |
Related-party transactions (Tab
Related-party transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related-party transactions | |
Schedule of related party transactions | 12/31/2016 12/31/2017 Ultimate Santander Ultimate Santander Parent Group Parent Group Company Companies Company Companies ASSETS: Financial assets held for trading - Trading derivatives - Of which - Banco Santander, S.A. (Spain) 90,418 — 73,593 — Abbey National Treasury Services plc. — 2,352 — 12 Other — 2 — 2 Other financial assets at fair value through profit or loss - Loans and advances to credit to customers - Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander México — 1,283 — 2,090 Other — 1 — — Available for sale financial assets - Of which - Grupo Financiero Santander México, S.A.B. de C.V. — 233 — 248 Loans and receivables - Loans and advances to credit institutions - Of which - Banco Santander, S.A. (Spain) 281 — 997 — Banco Santander Rio, S.A. — 223 — 194 Loans and advances to customers - Of which - Santander Capital Structuring, S.A. de C.V. — — — 1,176 Produban Servicios Informáticos Generales, S.L. — 1,154 — 1,674 Key management personnel — 1,471 — 3,666 Other intangible assets - Of which - — — Isban México, S.A. de C.V. — 2,364 — 2,811 Produban Servicios Informáticos Generales, S.L. — 478 — 533 Ingeniería de Software Bancario, S.L. — 412 — 443 Santander Back-Offices Globales Mayoristas, S.A. — 74 — 74 Isban Brasil, S.A. — 11 — 11 Other assets - Of which - Santander Issuances, S.A. — 251 — — Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander México — — — 21 Abbey National Treasury Services plc — — — 76 Zurich Santander Seguros México, S.A. — 976 — 1,053 SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversión — 171 — 156 Other — 25 — 12 12/31/2016 12/31/2017 Ultimate Santander Ultimate Santander Parent Group Parent Group Company Companies Company Companies LIABILITIES AND EQUITY: Financial liabilities held for trading - Trading derivatives - Of which - Banco Santander, S.A. (Spain) 58,537 — 43,827 — Banco Santander International — 64 — 25 Abbey National Treasury Services plc. — 1,659 — 75 Other — 2 — — Short positions - Of which - Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander México — 2,646 — 5,002 Other financial liabilities at fair value through profit or loss - Customer deposits - Repurchase agreements Of which - Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander México — 22,162 — 19,333 Banco S3 México, S.A., Institución de Banca Múltiple — — — 1,651 Grupo Financiero Santander México, S.A.B. de C.V. — — — 71 Other — — — 5 Financial liabilities at amortized cost - Deposits from credit institutions - Of which - Banco Santander, S.A. (Spain) 33,209 — 32,559 — Other — 18 — 75 Subordinated liabilities - Of which - Banco Santander, S.A. (Spain) 22,661 — 21,738 — Grupo Financiero Santander México, S.A.B. de C.V. — 10,298 — 9,831 Customer deposits - Of which- Abbey National Treasury Services plc. — 683 — — Isban México, S.A. de C.V. — 653 — 515 SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversión — 18 — — Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander México — 10 — — Operadora de Carteras Gamma, S.A.P.I. de C.V. — — — 145 Grupo Financiero Santander México, S.A.B. de C.V. — 193 — 176 Santander Global Facilities, S.A. de C.V. — 426 — 620 Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — 153 — 179 Produban Servicios Informáticos Generales, S.L. — 51 — 406 Grupo Alcanza, S.A. de C.V. — 138 — — Santander Capital Structuring, S.A. de C.V. — — — 186 Other (*) — 1,072 — 234 Marketable debt securities - Of which - Banco Santander, S.A. (Spain) 1,016 — 1,182 — Other — 28 — 15 Other financial liabilities - Of which - Banco Santander, S.A. (Spain) 3 — 1,366 — Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander México — 360 — 59 Santander Investment Securities Inc. — 48 — — Santander Global Facilities, S.A. de C.V. — 45 — — Other — 43 — 66 Other liabilities - Of which - Banco Santander, S.A. (Spain) 1,733 — — — Produban Servicios Informáticos Generales, S.L. — 352 — 409 Isban México, S.A. de C.V. — 188 — 184 Santander Back-offices Globales Mayorista, S.A. — 10 — 18 Ingenieria de Software Bancario, S.L. — 19 — 75 Other — 18 — 4 (*) 2015 2016 2017 Ultimate Santander Ultimate Santander Ultimate Santander Parent Group Parent Group Parent Group Company Companies Company Companies Company Companies INCOME STATEMENT: Interest income and similar income - Of which - Banco Santander, S.A. (Spain) 5 — 5 — — — Produban Servicios Informáticos Generales, S.L. — 45 — 52 — 86 Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander México — 37 — 57 — 95 Santander Capital Structuring, S.A. de C.V. — 22 — — — — Other — 1 — 2 — 93 Interest expenses and similar charges - Of which - Banco Santander, S.A. (Spain) 1,026 — 1,275 — 1,440 — Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander México — 637 — 1,316 — 1,449 Grupo Financiero Santander México, S.A.B. de C.V. — 9 — 9 — 16 Banco S3 México, S.A., Institución de Banca Múltiple — — — — — 12 Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — — — 9 — 7 Santander Global Facilities, S.A. de C.V. — — — 11 — 28 Isban México, S.A. de C.V. — 12 — 24 — 28 Other — 10 — 9 — 35 Fee and commission income - Of which - Banco Santander, S.A. (Spain) 171 — 6 — 7 — Santander Investment Securities Inc. — 7 — — — 10 Zurich Santander Seguros México, S.A. — 3,929 — 4,165 — 4,219 SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversión — 1,363 — 1,647 — 1,585 Other — 4 — 16 — 9 Fee and commission expense- Of which - Banco Santander, S.A. (Spain) 1 — 19 — 15 — Santander Global Facilities, S.A. de C.V. — 131 — — — 15 Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — 92 — — — — Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander — — — 41 — — SAM Asset Management , S.A. de C.V., Sociedad Operadora de Fondos de Inversión — — — 52 — 66 Santander Investment Securities Inc. — — — 62 — — Other — — — 11 — — Gains/(losses) on financial assets and liabilities (net) - Of which - Banco Santander, S.A. (Spain) 813 — 24,211 — (4,346) — Abbey National Treasury Services plc. — 622 — (280) — (739) Other — (194) — (44) — 19 Other operating income Of which - Santander Global Facilities, S.A. de C.V. — 62 — 52 — 46 Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander México — 26 — — — 28 Zurich Santander Seguros México, S.A. — 2 — — — — SAM Asset Management , S.A. de C.V., Sociedad Operadora de Fondos de Inversión — 7 — — — — Other — 3 — 39 — 10 Administrative expenses - Of which - Banco Santander, S.A. (Spain) — — — — 66 — Produban Servicios Informáticos Generales, S.L. — 1,377 — 1,663 — 1,601 Isban México, S.A. de C.V. — 92 — 178 — 188 Santander Global Facilities, S.A. de C.V. — 259 — 206 — 366 Ingeniería de Software Bancario, S.L. — 110 — 151 — 165 Gesban México Servicios Administrativos Globales, S.A. de C.V. — — — 52 — 53 Santander Back-offices Globales Mayorista, S.A. — — — 26 — 61 Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander México — 58 — 54 — — Geoban, S.A. — 76 — 78 — 77 Aquanima México, S. de R.L. de C.V. — 47 — 43 — 45 Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — — — 110 — 119 Other — 131 — 49 — 34 |
Risk management (Tables)
Risk management (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Risk management | |
Schedule of maximum credit risk exposure by type of product of Loans and advances to customers | Change December 31, 2017 vs. December 31, 2016 Millions of Credit Risk Exposure to Customers 12/31/2016 12/31/2017 Pesos % Payroll loans 27,315 29,844 2,529 9.26 % Personal loans 21,990 23,291 1,301 5.92 % Automotive 37 247 210 567.57 % Credit cards 51,537 54,372 2,835 5.50 % Mortgages 132,414 134,196 1,782 1.35 % SMEs 67,895 72,279 4,384 6.46 % Middle-market corporations 148,385 166,783 18,398 12.40 % Institutions 33,101 34,766 1,665 5.03 % Global corporate clients 121,356 116,189 (5,167) (4.26) % Guarantees and documentary credits 62,065 78,812 16,747 26.98 % 666,095 710,779 44,684 6.71 % |
Schedule of distribution of interest rate risk by maturity | The table below shows the distribution of interest rate risk by maturity as of December 31, 2015. The reported amounts include estimated interest on fixed and variable rate instruments. Interest on variable rate instruments is determined using the rate in effect as of the balance sheet date for the first scheduled interest payment and amounts are determined based on the contractual spread for each period thereafter. (Millions of pesos): Total 0 - 1 Months 1 - 3 Months 3 - 6 Months 6 - 12 Months 1 - 3 Years 3 - 5 Years > 5 Years Not Sensitive Money Market 101,554 47,337 — 1 10 37 36 9 54,124 Loans 603,402 287,578 50,898 42,918 24,782 75,456 35,830 93,113 (7,173) Trade Finance — — — — — — — — Intragroup 127 — — — — — — — 127 Securities 370,279 29,778 11,311 4,971 3,061 54,743 11,938 16,862 237,615 Permanent 5,310 — — — — — — — 5,310 Other Assets 55,407 — — — — — — — 55,407 Total Balance Sheet Assets 1,136,079 364,693 62,209 47,890 27,853 130,236 47,804 109,984 345,410 Money Market (251,123) (24,661) (17,503) — — — — — (208,959) Deposits (467,936) (213,996) (7,887) (1,951) (22,852) (221,250) — — — Trade Finance (518) — — — — — — — (518) Intragroup — — — — — — — — — Long-Term Funding (162,331) (57,480) (395) (737) (1,801) (7,890) (26,924) (27,078) (40,026) Equity (98,424) — — — — — — — (98,424) Other Liabilities (75,886) — — — — — — — (75,886) Total Balance Sheet Liabilities (1,056,218) (296,137) (25,785) (2,688) (24,653) (229,140) (26,924) (27,078) (423,813) Total Balance Sheet Gap 79,861 68,556 36,424 45,202 — 3,200 (98,904) 20,880 82,906 (78,403) Total Off-Balance Sheet Gap (9,233) 14,184 (896) (5,505) (638) (1,990) 1,797 (3,916) (12,269) Total Structural Gap 82,741 35,527 39,696 2,561 (100,894) 22,678 78,991 (90,673) Accumulated Gap 82,741 118,268 157,965 160,526 59,632 82,310 161,301 70,627 The interest rate risk in the balance sheet management portfolios, measured in terms of sensitivity of the NIM at one year to a parallel increase of 100 basis points in the yield curve, remained stable throughout 2016 under 1,100 million pesos, mainly due to the short-term repricing of the credit portfolio. At the end of December 2016, the risk consumption measured in terms of 100 basis points sensitivity of the MVE stood under 3,700 million pesos. The table below shows the distribution of interest rate risk by maturity as of December 31, 2016. The reported amounts include estimated interest on fixed and variable rate instruments. Interest on variable rate instruments is determined using the rate in effect as of the balance sheet date for the first scheduled interest payment and amounts are determined based on the contractual spread for each period thereafter. (Millions of pesos): Total 0 - 1 Months 1 - 3 Months 3 - 6 Months 6 - 12 Months 1 - 3 Years 3 - 5 Years > 5 Years Not Sensitive Money Market 146,736 38,460 203 104 11 44 32 — 107,882 Loans 647,729 349,076 45,789 42,250 36,673 82,230 37,336 67,475 (13,100) Trade Finance — — — — — — — — — Intragroup 343 — — — — — — — 343 Securities 356,407 46,103 11,459 5,643 2,428 84,499 7,459 25,513 173,303 Permanent 5,535 — — — — — — — 5,535 Other Assets 84,864 — — — — — — — 84,864 Total Balance Sheet Assets 1,241,614 433,639 57,451 47,997 39,112 166,773 44,827 92,988 358,827 Money Market (205,188) (44,538) (22,754) (2,364) — — — — (135,532) Deposits (551,067) (239,723) (12,275) (2,824) (31,574) (264,671) — — — Trade Finance (308) — — — — — — — (308) Intragroup — — — — — — — — — Long-Term Funding (179,255) (62,846) (1,061) (4,070) (2,678) (35,274) (7,255) (36,420) (29,651) Equity (105,283) — — — — — — — (105,283) Other Liabilities (114,846) — — — — — — — (114,846) Total Balance Sheet Liabilities (1,155,947) (347,107) (36,090) (9,258) (34,252) (299,945) (7,255) (36,420) (385,620) Total Balance Sheet Gap 85,667 86,532 21,361 38,739 4,860 (133,172) 37,572 56,568 (26,793) Total Off-Balance Sheet Gap (6,638) 9,323 4,698 (5,031) (1,266) 5,995 (3,781) (11,111) (5,464) Total Structural Gap 95,854 26,058 33,708 3,594 (127,178) 33,791 45,457 (32,255) Accumulated Gap 95,854 121,912 155,620 159,214 32,036 65,827 111,284 79,028 The interest rate risk in the balance sheet management portfolios, measured in terms of sensitivity of the net interest margin (NIM) at one year to a parallel increase of 100 basis points in the yield curve, remained stable throughout 2017 under 900 million pesos, mainly due to the short-term repricing of the credit portfolio. At the end of December 2017, the risk consumption measured in terms of 100 basis points sensitivity of the MVE stood under 3,000 million pesos. The table below shows the distribution of interest rate risk by maturity as of December 31, 2017. The reported amounts include estimated interest on fixed and variable rate instruments. Interest on variable rate instruments is determined using the rate in effect as of the balance sheet date for the first scheduled interest payment and amounts are determined based on the contractual spread for each period thereafter. (Millions of pesos): Total 0 - 1 Months 1 - 3 Months 3 - 6 Months 6 - 12 Months 1 - 3 Years 3 - 5 Years > 5 Years Not Sensitive Money Market 80,851 41,236 — 11 11 41 10 — 39,543 Loans 697,027 357,785 62,290 27,359 28,877 99,802 45,376 75,518 20 Trade Finance — — — — — — — — — Intragroup (72) — — — — — — — (72) Securities 346,672 23,391 16,893 39,293 1,845 63,697 14,855 31,081 155,618 Permanent 472 — — — — — — — 472 Other Assets 185,908 — — — — — — — 185,908 Total Balance Sheet Assets 1,310,858 422,412 79,183 66,663 30,733 163,540 60,241 106,599 381,489 Money Market (113,294) (20,523) (791) — — — — — (91,981) Deposits (597,248) (567,359) (15,954) (9,378) (4,535) (22) — — — Trade Finance — — — — — — — — — Intragroup — — — — — — — — — Long-Term Funding (184,681) (62,590) (6,173) (5,922) (6,396) (36,660) (35,173) (2,869) (28,898) Equity (116,134) — — — — — — — (116,134) Other Liabilities (198,480) — — — — — — — (198,480) Total Balance Sheet Liabilities (1,209,837) (650,472) (22,918) (15,300) (10,931) (36,682) (35,173) (2,869) (435,493) Total Balance Sheet Gap 101,021 (228,060) 56,265 51,363 19,802 126,858 25,068 103,730 (54,004) Total Off-Balance Sheet Gap (561) 31,675 2,142 (2,719) (606) (35) (6,798) (24,220) — Total Structural Gap (196,385) 58,407 48,644 19,196 126,823 18,270 79,510 (54,004) Accumulated Gap (196,385) (137,978) (89,334) (70,138) 56,685 74,955 154,465 100,461 |
Schedule of distribution of liquidity risk by maturity | The table below shows the distribution of the liquidity risk by maturity as of December 31, 2015. The reported amounts include cash flows from interest on fixed and variable rate instruments. The interest on variable rate instruments is determined using the forward interest rates for each period presented. (Millions of pesos): Total 0 - 1 Months 1 - 3 Months 3 - 6 Months 6 - 12 Months 1 - 3 Years 3 - 5 Years > 5 Years Not Sensitive Money Market 101,555 75,574 — 1 10 37 36 9 25,888 Loans 670,748 93,701 61,645 51,329 66,744 168,012 88,055 148,435 (7,173) Trade Finance — — — — — — — — — Intragroup 127 — — — — — — — 127 Securities 355,313 323,750 1 1 1 6,031 — — 25,529 Permanent 5,310 — — — — — — — 5,310 Other Assets 55,407 — — — — — — — 55,407 Total Balance Sheet Assets 1,188,460 493,025 61,646 51,331 66,755 174,080 88,091 148,444 105,088 Money Market (251,504) (229,432) (519) (3,714) (12,572) (2,539) (1,348) — (1,380) Deposits (467,936) (154,085) (48,524) (86) (16,381) (248,860) — — — Trade Finance (518) — — — — — — — (518) Intragroup — — — — — — — — — Long-Term Funding (163,148) (27,491) (7,943) (13,383) (17,693) (40,129) (29,220) (27,289) — Equity (98,424) — — — — — — — (98,424) Other Liabilities (75,886) — — — — — — — (75,886) Total Balance Sheet Liabilities (1,057,416) (411,008) (56,986) (17,183) (46,646) (291,528) (30,568) (27,289) (176,208) Total Balance Sheet Gap 131,044 82,017 4,660 34,148 20,109 (117,448) 57,523 121,155 (71,120) Total Off-Balance Sheet Gap (5,398) 966 449 (451) (1,323) (623) 2,147 (3,980) (2,583) Total Structural Gap 82,983 5,110 33,696 18,786 (118,072) 59,669 117,176 (73,702) Accumulated Gap 82,983 88,094 121,790 140,576 22,504 82,173 199,349 125,647 The table below shows the distribution of the liquidity risk by maturity as of December 31, 2016. The reported amounts include cash flows from interest on fixed and variable rate instruments. The interest on variable rate instruments is determined using the forward interest rates for each period presented. (Millions of pesos): Total 0 - 1 Months 1 - 3 Months 3 - 6 Months 6 - 12 Months 1 - 3 Years 3 - 5 Years > 5 Years Not Sensitive Money Market 146,748 105,566 203 104 11 44 32 — 40,788 Loans 726,450 101,397 66,892 62,277 89,069 197,379 86,306 136,230 (13,100) Trade Finance — — — — — — — — — Intragroup 343 — — — — — — — 343 Securities 330,254 290,900 — 1 1 11,511 — — 27,841 Permanent 5,535 — — — — — — — 5,535 Other Assets 85,864 — — — — — — — 84,864 Total Balance Sheet Assets 1,295,194 497,863 67,095 62,382 89,081 208,934 86,338 136,230 146,271 Money Market (205,899) (174,477) (4,406) (842) (19,379) (1,276) (2,947) — (2,572) Deposits (551,068) (178,389) (57,904) (152) (21,348) (293,275) — — — Trade Finance (308) — — — — — — — (308) Intragroup - — — — — — — — — Long-Term Funding (183,446) (18,762) (9,763) (17,956) (16,861) (68,710) (14,747) (36,647) — Equity (105,283) — — — — — — — (105,283) Other Liabilities (114,846) — — — — — — — (114,846) Total Balance Sheet Liabilities (1,160,850) (371,628) (72,073) (18,950) (57,588) (363,261) (17,694) (36,647) (223,009) Total Balance Sheet Gap 134,344 126,235 (4,978) 43,432 31,493 (154,327) 68,644 99,583 (76,738) Total Off-Balance Sheet Gap 3,474 178,907 4,463 744 (2,149) 7,714 (3,086) 1,324 (184,443) Total Structural Gap 305,142 (515) 44,175 29,343 (146,612) 65,558 100,907 (261,180) Accumulated Gap 305,142 304,627 348,802 378,146 231,533 297,092 397,999 136,819 The table below shows the distribution of the liquidity risk by maturity as of December 31, 2017. The reported amounts include cash flows from interest on fixed and variable rate instruments. The interest on variable rate instruments is determined using the forward interest rates for each period presented. (Millions of pesos): Total 0 - 1 Months 1 - 3 Months 3 - 6 Months 6 - 12 Months 1 - 3 Years 3 - 5 Years > 5 Years Not Sensitive Money Market 80,851 41,236 — 11 11 41 10 — 39,543 Loans 774,862 53,125 64,611 68,058 101,213 234,382 106,830 146,624 20 Trade Finance — — — — — — — — — Intragroup (72) — — — — — — — (72) Securities 372,029 330,590 123 192 381 1,523 2,855 11,441 24,924 Permanent 11,652 — — — — — — — 11,652 Other Assets 174,727 — — — — — — — 174,727 Total Balance Sheet Assets 1,414,049 424,951 64,734 68,261 101,605 235,946 109,695 158,065 250,794 Money Market (113,294) (20,523) (791) — — — — — (91,981) Deposits (607,532) (239,107) (19,463) (14,194) (12,780) (21,136) (11,777) (289,075) — Trade Finance — — — — — — — — — Intragroup — — — — — — — — — Long-Term Funding (191,378) (4,292) (11,334) (11,619) (31,917) (50,504) (49,477) (3,250) (28,985) Equity (116,134) — — — — — — — (116,134) Other Liabilities (198,480) — — — — — — — (198,480) Total Balance Sheet Liabilities (1,226,818) (263,922) (31,588) (25,813) (44,697) (71,640) (61,254) (292,325) (435,580) Total Balance Sheet Gap 187,231 161,029 33,146 42,448 56,908 164,306 48,441 (134,260) (184,786) Total Off-Balance Sheet Gap 15,009 (8,956) 596 117 599 7,423 4,090 (864) 12,005 Total Structural Gap 152,073 33,742 42,565 57,507 171,729 52,531 (135,124) (172,781) Accumulated Gap 152,073 185,815 228,380 285,887 457,616 510,147 375,023 202,242 |
Consolidated Subsidiaries (Tabl
Consolidated Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Consolidated Subsidiaries | |
Schedule of composition of the Bank | The subsidiaries of the Bank, all of which have been included in the consolidated financial statements at 31 December 2017, are as follows: Proportion of Proportion of ownership interest voting power Name of subsidiary Principal activity held by the Bank held by the Bank Santander Consumo, S.A. de C.V., SOFOM, E.R. Credit card loans 99.99 % 100 % Santander Vivienda, S.A. de C.V., SOFOM, E.R. Mortgage loans 99.99 % 100 % Santander Inclusión Financiera, S.A. de C.V., SOFOM, E.R. Retail loans 99.99 % 100 % Centro de Capacitación Santander, A.C. Not-for-profit (Educational institute) 99.99 % 100 % Banco Santander, S.A. Fideicomiso 100740 Settlement trust 99.99 % 100 % Fideicomiso GFSSLPT, Banco Santander, S.A. Settlement trust 89.14 % 100 % Santander Servicios Corporativos, S.A. de C.V. Services 99.99 % 100 % Santander Servicios Especializados, S.A. de C.V. Services 99.99 % 100 % |
Introduction, basis of prese100
Introduction, basis of presentation of the consolidated financial statements and other information (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Statement | |
Minimum three-year cumulative inflation rate for classifying economy as inflationary | 26.00% |
Total Shareholders' Equity Attributable to the Parent | |
Statement | |
Ownership interest (as a percent) | 99.99% |
Introduction, basis of prese101
Introduction, basis of presentation of the consolidated financial statements and other information - New IFRS (Details) - MXN ($) $ in Millions | Jan. 01, 2018 | Dec. 31, 2017 |
New IFRS | ||
Impairment provision | $ 17,961 | |
IFRS 9 | ||
New IFRS | ||
Financial assets reclassified to held to collect business model (as a percent) | 44.00% | |
Amount of financial assets reclassified to held to collect business model | $ 75,418 | |
Increase in shareholder's equity due to reclassification | $ 2,287 | |
Increase in shareholder's equity net of deferred tax | 1,601 | |
Increase in provision for impairment of financial assets | 3,256 | |
Impairment provision | $ 21,217 |
Introduction, basis of prese102
Introduction, basis of presentation of the consolidated financial statements and other information - Events after the reporting period (Details) $ in Millions | Jan. 26, 2018MXN ($) | Jan. 25, 2018MXN ($) | Jan. 02, 2018MXN ($) | Dec. 31, 2017MXN ($) | Dec. 31, 2016MXN ($) | Jul. 24, 2015MXN ($) |
Events after the reporting period | ||||||
Share premium. | $ 16,956 | $ 16,956 | ||||
Sale price subject to conditions | $ 1,191 | |||||
Disposals of assets | Custody business | ||||||
Events after the reporting period | ||||||
Sale price subject to conditions | $ 850 | |||||
Percentage of total consideration paid | 90.00% | |||||
Percentage of total consideration paid in next year | 10.00% | |||||
Consideration payable period | 1 year | |||||
Corporate restructuring and mergers | Merger | ||||||
Events after the reporting period | ||||||
Merger exchange factor | 1 | |||||
Share premium. | $ 17,574 | |||||
Corporate restructuring and mergers | Merger | Brokerage House | ||||||
Events after the reporting period | ||||||
Sale price | 1,175 | |||||
Grupo Mexico, S.A.B. de C.V. | Corporate restructuring and mergers | Merger | ||||||
Events after the reporting period | ||||||
Cash dividend approved | $ 1,950 | |||||
Dividend paid | $ 1,822 | |||||
New Financial Group | Corporate restructuring and mergers | Merger | ||||||
Events after the reporting period | ||||||
Proportion of ownership interest in subsidiary | 74.96% | |||||
New Financial Group | Corporate restructuring and mergers | Merger | Brokerage House | ||||||
Events after the reporting period | ||||||
Proportion of ownership interest in subsidiary | 99.99% |
Accounting policies - Foreign c
Accounting policies - Foreign currency transactions (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2017MXN ($)$ / $ | Dec. 31, 2016$ / $ | |
Accounting policies | ||
Exchange rate | $ / $ | 19.6629 | 20.6194 |
Gain loss recognized in change in ownership that do not result in loss of control | $ | $ 0 |
Accounting policies - FV of fin
Accounting policies - FV of financial assets and liabilities (Details) $ in Millions, in Millions | Dec. 31, 2017MXV ( ) | Dec. 31, 2017MXN ($) | Dec. 31, 2016MXV ( ) | Dec. 31, 2016MXN ($) |
Financial instruments | ||||
Financial assets | $ | $ 1,285,120 | $ 1,308,730 | ||
Financial liabilities | $ | 1,191,900 | 1,224,066 | ||
Fair value | ||||
Financial instruments | ||||
Financial assets | 548,133 | 554,569 | ||
Financial liabilities | 371,469 | 417,975 | ||
Level 1 | Fair value | ||||
Financial instruments | ||||
Financial assets | 312,783 | 279,335 | ||
Financial liabilities | 620 | 166 | ||
Level 2 and 3 | Fair value | ||||
Financial instruments | ||||
Financial assets | 235,350 | 235,350 | 275,234 | 275,234 |
Financial liabilities | 370,849 | 370,849 | 417,809 | 417,809 |
Financial assets held for trading | Fair value | ||||
Financial instruments | ||||
Financial assets | 315,570 | 342,582 | ||
Financial assets held for trading | Level 1 | Fair value | ||||
Financial instruments | ||||
Financial assets | 147,784 | 139,869 | ||
Financial assets held for trading | Level 2 and 3 | Fair value | ||||
Financial instruments | ||||
Financial assets | 167,786 | 167,786 | 202,713 | 202,713 |
Financial assets designated at fair value through profit or loss | Fair value | ||||
Financial instruments | ||||
Financial assets | 51,705 | 42,340 | ||
Financial assets designated at fair value through profit or loss | Level 2 and 3 | Fair value | ||||
Financial instruments | ||||
Financial assets | 51,705 | 51,705 | 42,340 | 42,340 |
Financial assets available for sale | Fair value | ||||
Financial instruments | ||||
Financial assets | 165,742 | 154,644 | ||
Financial assets available for sale | Level 1 | Fair value | ||||
Financial instruments | ||||
Financial assets | 164,999 | 139,466 | ||
Financial assets available for sale | Level 2 and 3 | Fair value | ||||
Financial instruments | ||||
Financial assets | 743 | 743 | 15,178 | 15,178 |
Hedging derivatives | Fair value | ||||
Financial instruments | ||||
Financial assets | 15,116 | 15,003 | ||
Hedging derivatives | Level 2 and 3 | Fair value | ||||
Financial instruments | ||||
Financial assets | 15,116 | 15,116 | 15,003 | 15,003 |
Financial liabilities held for trading | Fair value | ||||
Financial instruments | ||||
Financial liabilities | 239,725 | 266,828 | ||
Financial liabilities held for trading | Level 1 | Fair value | ||||
Financial instruments | ||||
Financial liabilities | 620 | 166 | ||
Financial liabilities held for trading | Level 2 and 3 | Fair value | ||||
Financial instruments | ||||
Financial liabilities | 239,105 | 239,105 | 266,662 | 266,662 |
Financial liabilities designated at fair value through profit or loss | Fair value | ||||
Financial instruments | ||||
Financial liabilities | 120,653 | 136,860 | ||
Financial liabilities designated at fair value through profit or loss | Level 2 and 3 | Fair value | ||||
Financial instruments | ||||
Financial liabilities | 120,653 | 120,653 | 136,860 | 136,860 |
Hedging derivatives | Fair value | ||||
Financial instruments | ||||
Financial liabilities | 11,091 | 14,287 | ||
Hedging derivatives | Level 2 and 3 | Fair value | ||||
Financial instruments | ||||
Financial liabilities | 11,091 | $ 11,091 | 14,287 | $ 14,287 |
Accounting policies - Valuation
Accounting policies - Valuation adjustment (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2017MXN ($)item | Dec. 31, 2016MXN ($) | |
Accounting policies | ||
Volatility term other than benchmark stock index significant unobservable inputs assets | 1 year | |
Volatility term for benchmark stock index significant unobservable inputs assets | 3 years | |
Interbank equilibrium interest rate curve term | 91 days | |
Interest rate swaps curve term significant unobservable inputs assets | 28 days | |
Number of independent areas implementing process for valuation and management of financial instruments | item | 2 | |
Amount of CVA | $ 370 | $ 557 |
Amount of DVA | $ 2,397 | $ 1,658 |
Accounting policies - Levels 2
Accounting policies - Levels 2 and 3 FV Assets (Details) $ in Millions, in Millions | Dec. 31, 2017MXV ( ) | Dec. 31, 2017MXN ($) | Dec. 31, 2016MXV ( ) | Dec. 31, 2016MXN ($) | Dec. 31, 2015MXN ($) | Dec. 31, 2014MXN ($) |
Financial instruments | ||||||
Financial assets | $ 1,285,120 | $ 1,308,730 | ||||
Fair value | ||||||
Financial instruments | ||||||
Financial assets | | 548,133 | 554,569 | ||||
Level 2 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 235,099 | 275,062 | ||||
Level 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 251 | 172 | $ 219 | $ 903 | ||
Level 2 and 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 235,350 | 235,350 | 275,234 | 275,234 | ||
Financial assets held for trading | Fair value | ||||||
Financial instruments | ||||||
Financial assets | | 315,570 | 342,582 | ||||
Financial assets held for trading | Level 2 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 167,535 | 202,541 | ||||
Financial assets held for trading | Level 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 251 | 172 | ||||
Financial assets held for trading | Level 2 and 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 167,786 | 167,786 | 202,713 | 202,713 | ||
Financial assets designated at fair value through profit or loss | Fair value | ||||||
Financial instruments | ||||||
Financial assets | | 51,705 | 42,340 | ||||
Financial assets designated at fair value through profit or loss | Level 2 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 51,705 | 42,340 | ||||
Financial assets designated at fair value through profit or loss | Level 2 and 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 51,705 | 51,705 | 42,340 | 42,340 | ||
Financial assets available for sale | Fair value | ||||||
Financial instruments | ||||||
Financial assets | | 165,742 | 154,644 | ||||
Financial assets available for sale | Level 2 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 743 | 15,178 | ||||
Financial assets available for sale | Level 2 and 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 743 | 743 | 15,178 | 15,178 | ||
Hedging derivatives | Fair value | ||||||
Financial instruments | ||||||
Financial assets | | 15,116 | 15,003 | ||||
Hedging derivatives | Level 2 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 15,116 | 15,003 | ||||
Hedging derivatives | Level 2 and 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 15,116 | 15,116 | 15,003 | 15,003 | ||
Debt instruments. | ||||||
Financial instruments | ||||||
Financial assets | 323,452 | 306,643 | ||||
Debt instruments. | Financial assets held for trading | Level 2 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 2,593 | 2,697 | ||||
Debt instruments. | Financial assets held for trading | Level 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 172 | |||||
Debt instruments. | Financial assets held for trading | Level 2 and 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 2,593 | 2,869 | ||||
Debt instruments. | Financial assets available for sale | Level 2 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 675 | 15,083 | ||||
Debt instruments. | Financial assets available for sale | Level 2 and 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 675 | 15,083 | ||||
Equity instruments. | ||||||
Financial instruments | ||||||
Financial assets | 3,357 | 2,148 | ||||
Equity instruments. | Financial assets available for sale | Level 2 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 68 | 95 | ||||
Equity instruments. | Financial assets available for sale | Level 2 and 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 68 | 95 | ||||
Trading derivatives | Level 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 251 | |||||
Interest rate options | Financial assets held for trading | Level 2 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 1,339 | 1,698 | ||||
Interest rate options | Financial assets held for trading | Level 2 and 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 1,339 | 1,698 | ||||
Market index options | Financial assets held for trading | Level 2 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 581 | 871 | ||||
Market index options | Financial assets held for trading | Level 2 and 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 581 | 871 | ||||
Market index options, European options | Financial assets held for trading | Level 2 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 548 | 839 | ||||
Market index options, European options | Financial assets held for trading | Level 2 and 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 548 | 839 | ||||
Asian (Single underlying Quanto) | Financial assets held for trading | Level 2 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 18 | 20 | ||||
Asian (Single underlying Quanto) | Financial assets held for trading | Level 2 and 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 18 | 20 | ||||
Best of options (Basket) | Financial assets held for trading | Level 2 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 15 | 12 | ||||
Best of options (Basket) | Financial assets held for trading | Level 2 and 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 15 | 12 | ||||
Exchange rate options | Financial assets held for trading | Level 2 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 1,885 | 383 | ||||
Exchange rate options | Financial assets held for trading | Level 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 172 | |||||
Exchange rate options | Financial assets held for trading | Level 2 and 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 2,057 | 383 | ||||
American forwards | Financial assets held for trading | Level 2 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 23 | 6 | ||||
American forwards | Financial assets held for trading | Level 2 and 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 23 | 6 | ||||
Exchange rate options, European options | Financial assets held for trading | Level 2 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 1,823 | 377 | ||||
Exchange rate options, European options | Financial assets held for trading | Level 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 172 | |||||
Exchange rate options, European options | Financial assets held for trading | Level 2 and 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 1,995 | 377 | ||||
American Barrier and Touch options | Financial assets held for trading | Level 2 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 39 | |||||
American Barrier and Touch options | Financial assets held for trading | Level 2 and 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 39 | |||||
Swaps | Financial assets held for trading | Level 2 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 155,799 | 190,199 | ||||
Swaps | Financial assets held for trading | Level 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 23 | |||||
Swaps | Financial assets held for trading | Level 2 and 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 155,822 | 190,199 | ||||
Swaps | Hedging derivatives | Level 2 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 12,727 | 15,003 | ||||
Swaps | Hedging derivatives | Level 2 and 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 12,727 | 15,003 | ||||
Index and securities futures | Financial assets held for trading | Level 2 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 93 | 3 | ||||
Index and securities futures | Financial assets held for trading | Level 2 and 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 93 | 3 | ||||
Interest rate futures | Financial assets held for trading | Level 2 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 6 | |||||
Interest rate futures | Financial assets held for trading | Level 2 and 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 6 | |||||
Exchange rate futures | Financial assets held for trading | Level 2 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 5,245 | 6,684 | ||||
Exchange rate futures | Financial assets held for trading | Level 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 56 | |||||
Exchange rate futures | Financial assets held for trading | Level 2 and 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 5,301 | 6,684 | ||||
Exchange rate forwards | Hedging derivatives | Level 2 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 2,389 | |||||
Exchange rate forwards | Hedging derivatives | Level 2 and 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 2,389 | |||||
Loans and advances to credit institutions | ||||||
Financial instruments | ||||||
Financial assets | 105,209 | 120,219 | ||||
Loans and advances to credit institutions | Financial assets designated at fair value through profit or loss | Level 2 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 46,087 | 37,831 | ||||
Loans and advances to credit institutions | Financial assets designated at fair value through profit or loss | Level 2 and 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 46,087 | 37,831 | ||||
Loans and advances to customers | ||||||
Financial instruments | ||||||
Financial assets | 615,038 | 586,147 | ||||
Loans and advances to customers | Financial assets designated at fair value through profit or loss | Level 2 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | 5,618 | 4,509 | ||||
Loans and advances to customers | Financial assets designated at fair value through profit or loss | Level 2 and 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | $ 5,618 | 4,509 | ||||
Debt and equity instruments | Level 3 | Fair value | ||||||
Financial instruments | ||||||
Financial assets | $ 172 | $ 219 | $ 903 |
Accounting policies - Levels107
Accounting policies - Levels 2 and 3 FV Liabilities (Details) $ in Millions, in Millions | Dec. 31, 2017MXV ( ) | Dec. 31, 2017MXN ($) | Dec. 31, 2016MXV ( ) | Dec. 31, 2016MXN ($) | Dec. 31, 2015MXN ($) |
Financial instruments | |||||
Financial liabilities | $ 1,191,900 | $ 1,224,066 | |||
Fair value | |||||
Financial instruments | |||||
Financial liabilities | | 371,469 | 417,975 | |||
Level 2 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 370,491 | 417,809 | |||
Level 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 358 | ||||
Level 2 and 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 370,849 | 370,849 | 417,809 | 417,809 | |
Financial liabilities held for trading | Fair value | |||||
Financial instruments | |||||
Financial liabilities | | 239,725 | 266,828 | |||
Financial liabilities held for trading | Level 2 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 238,747 | 266,662 | |||
Financial liabilities held for trading | Level 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 358 | ||||
Financial liabilities held for trading | Level 2 and 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 239,105 | 239,105 | 266,662 | 266,662 | |
Financial liabilities designated at fair value through profit or loss | Fair value | |||||
Financial instruments | |||||
Financial liabilities | | 120,653 | 136,860 | |||
Financial liabilities designated at fair value through profit or loss | Level 2 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 120,653 | 136,860 | |||
Financial liabilities designated at fair value through profit or loss | Level 2 and 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 120,653 | 120,653 | 136,860 | 136,860 | |
Hedging derivatives | Fair value | |||||
Financial instruments | |||||
Financial liabilities | | 11,091 | 14,287 | |||
Hedging derivatives | Level 2 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 11,091 | 14,287 | |||
Hedging derivatives | Level 2 and 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 11,091 | 11,091 | 14,287 | 14,287 | |
Interest rate options | Financial liabilities held for trading | Level 2 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 1,197 | 1,904 | |||
Interest rate options | Financial liabilities held for trading | Level 2 and 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 1,197 | 1,904 | |||
Market index options | Financial liabilities held for trading | Level 2 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 298 | 340 | |||
Market index options | Financial liabilities held for trading | Level 2 and 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 298 | 340 | |||
Market index options, European options | Financial liabilities held for trading | Level 2 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 163 | 69 | |||
Market index options, European options | Financial liabilities held for trading | Level 2 and 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 163 | 69 | |||
Auto callable | Financial liabilities held for trading | Level 2 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 129 | 264 | |||
Auto callable | Financial liabilities held for trading | Level 2 and 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 129 | 264 | |||
Asian (Single underlying Quanto) | Financial liabilities held for trading | Level 2 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 6 | 7 | |||
Asian (Single underlying Quanto) | Financial liabilities held for trading | Level 2 and 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 6 | 7 | |||
Exchange rate options | Financial liabilities held for trading | Level 2 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 2,397 | 573 | |||
Exchange rate options | Financial liabilities held for trading | Level 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 198 | ||||
Exchange rate options | Financial liabilities held for trading | Level 2 and 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 2,595 | 573 | |||
American forwards | Financial liabilities held for trading | Level 2 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 53 | 116 | |||
American forwards | Financial liabilities held for trading | Level 2 and 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 53 | 116 | |||
Exchange rate options, European options | Financial liabilities held for trading | Level 2 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 2,238 | 431 | |||
Exchange rate options, European options | Financial liabilities held for trading | Level 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 198 | ||||
Exchange rate options, European options | Financial liabilities held for trading | Level 2 and 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 2,436 | 431 | |||
American Barrier and Touch options | Financial liabilities held for trading | Level 2 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 47 | 9 | |||
American Barrier and Touch options | Financial liabilities held for trading | Level 2 and 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 47 | 9 | |||
American options | Financial liabilities held for trading | Level 2 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 59 | 17 | |||
American options | Financial liabilities held for trading | Level 2 and 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 59 | 17 | |||
Swaps | Financial liabilities held for trading | Level 2 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 161,389 | 196,485 | |||
Swaps | Financial liabilities held for trading | Level 2 and 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 161,389 | 196,485 | |||
Swaps | Hedging derivatives | Level 2 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 10,370 | 7,969 | |||
Swaps | Hedging derivatives | Level 2 and 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 10,370 | 7,969 | |||
Index and securities futures | Financial liabilities held for trading | Level 2 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 90 | 4 | |||
Index and securities futures | Financial liabilities held for trading | Level 2 and 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 90 | 4 | |||
Interest rate futures | Financial liabilities held for trading | Level 2 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 28 | ||||
Interest rate futures | Financial liabilities held for trading | Level 2 and 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 28 | ||||
Exchange rate futures | Financial liabilities held for trading | Level 2 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 4,933 | 6,190 | |||
Exchange rate futures | Financial liabilities held for trading | Level 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 160 | ||||
Exchange rate futures | Financial liabilities held for trading | Level 2 and 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 5,093 | 6,190 | |||
Short positions | Financial liabilities held for trading | Level 2 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 68,443 | 61,138 | |||
Short positions | Financial liabilities held for trading | Level 2 and 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 68,443 | 61,138 | |||
Deposits - Central banks | Financial liabilities designated at fair value through profit or loss | Level 2 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 22,417 | 15,479 | |||
Deposits - Central banks | Financial liabilities designated at fair value through profit or loss | Level 2 and 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 22,417 | 15,479 | |||
Deposits - Customers | |||||
Financial instruments | |||||
Financial liabilities | 690,566 | 655,896 | |||
Deposits - Credit institutions | Financial liabilities designated at fair value through profit or loss | Level 2 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 5,942 | 25,155 | |||
Deposits - Credit institutions | Financial liabilities designated at fair value through profit or loss | Level 2 and 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 5,942 | 25,155 | |||
Customer deposits - Repurchase agreements | Financial liabilities designated at fair value through profit or loss | Level 2 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 81,790 | 83,891 | |||
Customer deposits - Repurchase agreements | Financial liabilities designated at fair value through profit or loss | Level 2 and 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 81,790 | 83,891 | |||
Marketable debt securities | |||||
Financial instruments | |||||
Financial liabilities | 96,296 | 90,003 | |||
Marketable debt securities | Financial liabilities designated at fair value through profit or loss | |||||
Financial instruments | |||||
Financial liabilities | 10,504 | 12,335 | $ 12,623 | ||
Marketable debt securities | Financial liabilities designated at fair value through profit or loss | Level 2 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 10,504 | 12,335 | |||
Marketable debt securities | Financial liabilities designated at fair value through profit or loss | Level 2 and 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 10,504 | 12,335 | |||
Exchange rate forwards | Hedging derivatives | Level 2 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | 721 | 6,318 | |||
Exchange rate forwards | Hedging derivatives | Level 2 and 3 | Fair value | |||||
Financial instruments | |||||
Financial liabilities | $ 721 | $ 6,318 |
Accounting policies - Changes i
Accounting policies - Changes in Level 3 (Details) $ in Millions, in Millions | 12 Months Ended | |||
Dec. 31, 2017MXV ( ) | Dec. 31, 2017MXN ($) | Dec. 31, 2016MXN ($) | Dec. 31, 2015MXN ($) | |
Changes in financial instruments, Assets | ||||
Financial assets at beginning of period | $ 1,308,730 | |||
Financial assets at end of period | 1,285,120 | $ 1,308,730 | ||
Changes in financial instruments, Liabilities | ||||
Financial liabilities at beginning of period | (1,224,066) | |||
Financial liabilities at end of period | (1,191,900) | (1,224,066) | ||
Fair value | ||||
Changes in financial instruments, Assets | ||||
Financial assets at beginning of period | | 554,569 | |||
Financial assets at end of period | | 548,133 | |||
Changes in financial instruments, Liabilities | ||||
Financial liabilities at beginning of period | | (417,975) | |||
Financial liabilities at end of period | | (371,469) | |||
Level 3 | Fair value | ||||
Changes in financial instruments, Assets | ||||
Financial assets at beginning of period | 172 | 219 | $ 903 | |
Gains/(losses) on financial assets and liabilities (net) | 78 | 73 | 13 | |
Purchases | 1 | |||
Sales | (143) | (102) | (647) | |
New issuances | 160 | |||
Settlements | (16) | (18) | (51) | |
Financial assets at end of period | 251 | 172 | 219 | |
Changes in financial instruments, Liabilities | ||||
Gains/(losses) on financial assets and liabilities (net) | (9) | |||
New issuances | (349) | |||
Financial liabilities at end of period | (358) | |||
Level 3 | Fair value | Debt and equity instruments | ||||
Changes in financial instruments, Assets | ||||
Financial assets at beginning of period | 172 | 219 | 903 | |
Gains/(losses) on financial assets and liabilities (net) | (13) | 73 | 13 | |
Purchases | 1 | |||
Sales | (143) | (102) | (647) | |
Settlements | (16) | (18) | (51) | |
Financial assets at end of period | $ 172 | $ 219 | ||
Level 3 | Fair value | Trading derivatives | ||||
Changes in financial instruments, Assets | ||||
Gains/(losses) on financial assets and liabilities (net) | 91 | |||
New issuances | 160 | |||
Financial assets at end of period | 251 | |||
Changes in financial instruments, Liabilities | ||||
Gains/(losses) on financial assets and liabilities (net) | (9) | |||
New issuances | (349) | |||
Financial liabilities at end of period | $ (358) |
Accounting policies - Levels 3
Accounting policies - Levels 3 Change in Assumptions (Details) $ in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017USD ($)item | Dec. 31, 2017MXN ($)item | Dec. 31, 2017MXN ($) | Dec. 31, 2016MXN ($) | |
Financial instruments | ||||
Financial assets | $ 1,285,120 | $ 1,308,730 | ||
Financial liabilities | (1,191,900) | (1,224,066) | ||
Debt instruments. | ||||
Financial instruments | ||||
Financial assets | 323,452 | $ 306,643 | ||
Minimum | Black-Scholes model | Red Compartida | ||||
Financial instruments | ||||
Long term Fx volatility (as a percent) | 11.00% | |||
Minimum | Interest rate swaps | Forward Estimation | ||||
Financial instruments | ||||
Bid offer spread (as a percent) | 0.02% | |||
Minimum | Currency swaps | Forward Estimation | ||||
Financial instruments | ||||
Bid offer spread (as a percent) | 0.03% | |||
Maximum | Black-Scholes model | Red Compartida | ||||
Financial instruments | ||||
Long term Fx volatility (as a percent) | 21.00% | |||
Maximum | Interest rate swaps | Forward Estimation | ||||
Financial instruments | ||||
Bid offer spread (as a percent) | 0.06% | |||
Maximum | Currency swaps | Forward Estimation | ||||
Financial instruments | ||||
Bid offer spread (as a percent) | 0.10% | |||
Weighted average | Black-Scholes model | Red Compartida | ||||
Financial instruments | ||||
Long term Fx volatility (as a percent) | 15.70% | |||
Weighted average | Interest rate swaps | Forward Estimation | ||||
Financial instruments | ||||
Bid offer spread (as a percent) | 0.03% | |||
Weighted average | Currency swaps | Forward Estimation | ||||
Financial instruments | ||||
Bid offer spread (as a percent) | 0.04% | |||
Level 3 | Red Compartida | ||||
Financial instruments | ||||
Financial liabilities | (130) | |||
Potential impact on consolidated income statement - Most favorable input | $ 6.9 | |||
Potential impact on consolidated income statement - Least favorable input | (41.8) | |||
Level 3 | Cross Currency Swaps | ||||
Financial instruments | ||||
Financial assets | $ 23 | |||
Potential impact on consolidated income statement - Most favorable input | 16.6 | |||
Potential impact on consolidated income statement - Least favorable input | $ (16.6) | |||
Number of financial instruments | item | 2 | |||
Notional amount | $ 100 | |||
Maturity period | 22 years | |||
Maximum liquidity period | 20 years | |||
Level 3 | Minimum | Foreign Currency Exchange Forwards and Plain Vanilla Fx Option [Member] | ||||
Financial instruments | ||||
Maturity period | 2 years | |||
Level 3 | Maximum | Foreign Currency Exchange Forwards and Plain Vanilla Fx Option [Member] | ||||
Financial instruments | ||||
Maturity period | 5 years | |||
Most Favorable Input, Potential Impact | Black-Scholes model | Red Compartida | ||||
Financial instruments | ||||
Long term Fx volatility (as a percent) | 15.10% | |||
Most Favorable Input, Potential Impact | Interest rate swaps | Forward Estimation | ||||
Financial instruments | ||||
Bid offer spread (as a percent) | (0.06%) | |||
Most Favorable Input, Potential Impact | Currency swaps | Forward Estimation | ||||
Financial instruments | ||||
Bid offer spread (as a percent) | (0.10%) | |||
Least Favorable Input, Potential Impact | Black-Scholes model | Red Compartida | ||||
Financial instruments | ||||
Long term Fx volatility (as a percent) | 19.42% | |||
Number of factors | item | 2 | |||
Denominator used in estimating volatility | item | 2 | |||
Percentile of movement price distribution | 0.95% | |||
Least Favorable Input, Potential Impact | Cross Currency Swaps | Forward Estimation | ||||
Financial instruments | ||||
Denominator used in estimating volatility | item | 2 | |||
Difference between bid and offer quotations over designated period of time (as a percent) | 0.95% | |||
Historical period | 1 year | |||
Least Favorable Input, Potential Impact | Interest rate swaps | Forward Estimation | ||||
Financial instruments | ||||
Bid offer spread (as a percent) | 0.06% | |||
Least Favorable Input, Potential Impact | Currency swaps | Forward Estimation | ||||
Financial instruments | ||||
Bid offer spread (as a percent) | 0.10% |
Accounting policies - Value at
Accounting policies - Value at risk technique (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017MXN ($)D | |
Financial instruments | |
All financial instruments | $ 128,610 |
Instruments sensitive to interest rate | 125,200 |
Instruments sensitive to equity market prices | 5,070 |
Instruments sensitive to foreign currency exchange rates | 25,340 |
Instruments sensitive to volatility movements | $ 16,130 |
Time horizon used in measuring VaR | 1 day |
Confidence level (as a percent) | 99.00% |
Number of business days used for measuring loss in excess of VaR | D | 100 |
Minimum | |
Financial instruments | |
All financial instruments | $ 57,610 |
Instruments sensitive to interest rate | 55,740 |
Instruments sensitive to equity market prices | 1,360 |
Instruments sensitive to foreign currency exchange rates | 8,160 |
Instruments sensitive to volatility movements | $ 3,970 |
Percentage of hedge effectiveness | 80.00% |
Maximum | |
Financial instruments | |
All financial instruments | $ 146,430 |
Instruments sensitive to interest rate | 144,090 |
Instruments sensitive to equity market prices | 16,830 |
Instruments sensitive to foreign currency exchange rates | 101,460 |
Instruments sensitive to volatility movements | $ 26,220 |
Percentage of hedge effectiveness | 125.00% |
Weighted average | |
Financial instruments | |
All financial instruments | $ 95,060 |
Instruments sensitive to interest rate | 96,390 |
Instruments sensitive to equity market prices | 4,640 |
Instruments sensitive to foreign currency exchange rates | 50,830 |
Instruments sensitive to volatility movements | $ 11,570 |
Accounting policies - Offsettin
Accounting policies - Offsetting of financial assets (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets offset in the consolidated balance sheets | ||
Gross amount of financial assets | $ 232,088 | $ 257,253 |
Net amount of financial assets presented in the balance sheet | 232,088 | 257,253 |
Impact of Master Netting Agreements | (116,078) | (151,762) |
Financial instrument collateral | (55,483) | (47,578) |
Cash collateral | (44,971) | (47,821) |
Net amount | 15,556 | 10,092 |
Trading derivatives | ||
Financial assets offset in the consolidated balance sheets | ||
Gross amount of financial assets | 180,377 | 214,910 |
Net amount of financial assets presented in the balance sheet | 180,377 | 214,910 |
Impact of Master Netting Agreements | (116,078) | (151,762) |
Financial instrument collateral | (3,783) | (5,215) |
Cash collateral | (44,971) | (47,821) |
Net amount | 15,545 | 10,112 |
Reverse repurchase agreements | ||
Financial assets offset in the consolidated balance sheets | ||
Gross amount of financial assets | 51,705 | 42,340 |
Net amount of financial assets presented in the balance sheet | 51,705 | 42,340 |
Financial instrument collateral | (51,693) | (42,360) |
Net amount | 12 | (20) |
Equity instruments. | ||
Financial assets offset in the consolidated balance sheets | ||
Gross amount of financial assets | 6 | 3 |
Net amount of financial assets presented in the balance sheet | 6 | 3 |
Financial instrument collateral | (7) | $ (3) |
Net amount | $ (1) |
Accounting policies - Offset112
Accounting policies - Offsetting of financial liabilities (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial liabilities offset in the consolidated balance sheets | ||
Gross amount of financial liabilities | $ 359,887 | $ 405,490 |
Net amount of financial liabilities presented in the balance sheet | 359,887 | 405,490 |
Impact of Master Netting Agreements | (116,078) | (151,762) |
Financial instrument collateral | (180,935) | (189,025) |
Cash collateral | (34,454) | (51,329) |
Net amount | 28,420 | 13,374 |
Trading derivatives | ||
Financial liabilities offset in the consolidated balance sheets | ||
Gross amount of financial liabilities | 182,373 | 219,977 |
Net amount of financial liabilities presented in the balance sheet | 182,373 | 219,977 |
Impact of Master Netting Agreements | (116,078) | (151,762) |
Financial instrument collateral | (2,822) | (2,670) |
Cash collateral | (34,454) | (51,329) |
Net amount | 29,019 | 14,216 |
Repurchase agreements | ||
Financial liabilities offset in the consolidated balance sheets | ||
Gross amount of financial liabilities | 110,149 | 124,525 |
Net amount of financial liabilities presented in the balance sheet | 110,149 | 124,525 |
Financial instrument collateral | (110,337) | (124,949) |
Net amount | (188) | (424) |
Short positions - Securities loans | ||
Financial liabilities offset in the consolidated balance sheets | ||
Gross amount of financial liabilities | 21,132 | 20,375 |
Net amount of financial liabilities presented in the balance sheet | 21,132 | 20,375 |
Financial instrument collateral | (21,555) | (20,769) |
Net amount | (423) | (394) |
Short positions - Short sales | ||
Financial liabilities offset in the consolidated balance sheets | ||
Gross amount of financial liabilities | 46,233 | 40,613 |
Net amount of financial liabilities presented in the balance sheet | 46,233 | 40,613 |
Financial instrument collateral | (46,221) | (40,637) |
Net amount | $ 12 | $ (24) |
Accounting policies - Impairmen
Accounting policies - Impairment of financial assets (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Impairment of financial assets | ||
Impairment threshold period | 90 days | |
Threshold percentage for classifying sum of all transactions of customer as impaired | 20.00% | |
Maximum exposure to credit risk | $ 1,342,992 | $ 1,329,120 |
Historical data used for transition models | 2 years | |
Individually significant customers | ||
Impairment of financial assets | ||
Impairment threshold period | 90 days | |
Maximum exposure to credit risk | $ 8 | |
Individually insignificant customers | ||
Impairment of financial assets | ||
Impairment threshold period | 90 days | |
Commercial, financial and industrial loans | ||
Impairment of financial assets | ||
Impairment threshold period | 90 days | |
Small and medium size enterprises loans | ||
Impairment of financial assets | ||
Impairment threshold period | 181 days | |
Revolving SMEs loans | ||
Impairment of financial assets | ||
Impairment threshold period | 151 days | |
Mortgages | ||
Impairment of financial assets | ||
Impairment threshold period | 90 days | |
Loan write off threshold period | 36 months | |
Installment loans to individuals - Revolving consumer credit cards loans | ||
Impairment of financial assets | ||
Impairment threshold period | 90 days | |
Loan write off threshold period | 151 days | |
Installment loans to individuals - Non-revolving consumer loans | ||
Impairment of financial assets | ||
Impairment threshold period | 90 days | |
Loan write off threshold period | 181 days |
Accounting policies - Change in
Accounting policies - Change in accounting estimates (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Change in accounting estimates | ||
Decrease in accounting estimates | $ (428) | |
Allowance for impairment losses | ||
Change in accounting estimates | ||
Decrease in accounting estimates | 176 | |
Provisions for off-balance sheet risk | ||
Change in accounting estimates | ||
Decrease in accounting estimates | 436 | |
Impaired loans | ||
Change in accounting estimates | ||
Decrease in accounting estimates | $ 438 | |
Useful lives | ATMs | ||
Change in accounting estimates | ||
Useful lives | 8 years | 4 years |
Decrease in depreciation charge recognized | $ 49 |
Accounting policies - Tangible
Accounting policies - Tangible assets (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Tangible assets | ||
Impairment loss | $ 0 | |
Period of projection of cash flows | 5 years | |
Buildings | Minimum | ||
Tangible assets | ||
Average annual rate (as a percent) | 2.00% | |
Buildings | Maximum | ||
Tangible assets | ||
Average annual rate (as a percent) | 5.00% | |
Furniture and vehicles | Minimum | ||
Tangible assets | ||
Average annual rate (as a percent) | 10.00% | |
Furniture and vehicles | Maximum | ||
Tangible assets | ||
Average annual rate (as a percent) | 20.00% | |
IT equipment and fixtures | ||
Tangible assets | ||
Average annual rate (as a percent) | 25.00% | |
Others | Minimum | ||
Tangible assets | ||
Average annual rate (as a percent) | 5.00% | |
Others | Maximum | ||
Tangible assets | ||
Average annual rate (as a percent) | 20.00% |
Significant events - Mexican re
Significant events - Mexican real estate sector (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014company | Nov. 30, 2015company | Dec. 31, 2017MXN ($)company | Dec. 31, 2016MXN ($)company | |
Three principal Mexican real estate companies | ||||
Disclosure of major customers | ||||
Number of major real estate companies | company | 3 | 3 | ||
Percentage of entity's loans and advances to customers | 0.01% | 0.38% | ||
Percentage of entity's total assets | 0.003% | 0.16% | ||
MEXICO | ||||
Disclosure of major customers | ||||
Number of major real estate companies that declared bankruptcy | company | 2 | |||
Number of major real estate companies | company | 3 | |||
Number of major real estate companies for which authorities declared bankruptcy concluded | company | 2 | |||
Gross carrying amount | ||||
Disclosure of major customers | ||||
Loans and advances to customers. | $ | $ 631,967 | $ 604,030 | ||
Gross carrying amount | Three principal Mexican real estate companies | ||||
Disclosure of major customers | ||||
Loans and advances to customers. | $ | 44 | 2,201 | ||
Gross carrying amount | Three principal Mexican real estate companies | Impaired loans | ||||
Disclosure of major customers | ||||
Loans and advances to customers. | $ | 44 | 1,505 | ||
Gross carrying amount | MEXICO | ||||
Disclosure of major customers | ||||
Loans and advances to customers. | $ | $ 631,967 | $ 604,030 |
Significant events - Sale agree
Significant events - Sale agreement (Details) $ in Millions | Jul. 24, 2015MXN ($) |
Significant events | |
Sale price subject to conditions | $ 1,191 |
Significant events - Loan portf
Significant events - Loan portfolio acquisition (Details) - Scotiabank Inverlat loan portfolio $ in Millions | 1 Months Ended |
Apr. 30, 2015MXN ($)loan | |
Acquisition | |
Number of loans acquired | loan | 39,252 |
Face value of assets acquired | $ 3,179 |
Fair value of assets acquired | $ 3,002 |
Significant events - Issuance o
Significant events - Issuance of subordinated liabilities (Details) $ in Millions, $ in Millions | Dec. 29, 2016USD ($) | Dec. 31, 2016MXN ($) |
Disclosure of detailed information about financial instruments [line items] | ||
Proceeds from issue of subordinated liabilities | $ 10,297 | |
Subordinated Additional Tier 1 Capital Notes | ||
Disclosure of detailed information about financial instruments [line items] | ||
Proceeds from issue of subordinated liabilities | $ 500 |
Significant events - Compulsory
Significant events - Compulsory deposits (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets | ||
Loans and receivables | $ 679,300 | $ 675,498 |
Debt instruments. | ||
Financial assets | ||
Loans and receivables | 10,758 | 11,472 |
Brems R | ||
Financial assets | ||
Loans and receivables | $ 7,783 | $ 7,781 |
Significant events - Acquisitio
Significant events - Acquisition (Details) - MXN ($) $ in Millions | Nov. 22, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 26, 2017 |
Acquisition | |||||
Payment for available-for-sale financial assets | $ (10,877) | $ (52,951) | $ (31,971) | ||
ISBAN | |||||
Acquisition | |||||
Amount paid for shares acquired | $ 981 | ||||
Bolsa Mexicana de Valores, S.A.B. de C.V. | |||||
Acquisition | |||||
Number of shares purchased | 14,176,749 | ||||
Payment for available-for-sale financial assets | $ 449 | ||||
Inclusion Financiera | |||||
Acquisition | |||||
Maximum threshold for placement of credits | $ 1 |
Immaterial misstatement on c122
Immaterial misstatement on consolidated statement of cash flows from prior years (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in consolidated statement of cash flows | |||
CASH FLOWS FROM OPERATING ACTIVITIES | $ (7,170) | $ 28,818 | $ 17,505 |
Adjustments made to obtain the cash flows from operating activities- | 7,494 | 7,129 | 5,971 |
Effect of foreign exchange rate changes on foreign currency cash deposits | (264) | (320) | (166) |
Adjustments For Decrease Increase In Operating Assets | 218 | (156,934) | (214,901) |
Adjustments For Increase Decrease In Operating Liabilities | (29,596) | 170,895 | 213,440 |
Income tax paid | (4,114) | (8,902) | (1,187) |
Dividends received, classified as operating activities | 150 | 94 | 118 |
Cash flows from (used in) investing activities | (4,525) | (3,092) | (2,946) |
Cash flows from (used in) financing activities | (9,545) | (7,171) | (6,760) |
Effect of exchange rate changes on cash and cash equivalents | 264 | 320 | 166 |
E. NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | (20,976) | 18,875 | 7,965 |
F. CASH AND CASH EQUIVALENTS AT THE BEGINNING OF YEAR | 78,663 | 59,788 | 51,823 |
G. CASH AND CASH EQUIVALENTS AT THE END OF YEAR | $ 57,687 | 78,663 | 59,788 |
As originally reported | |||
Changes in consolidated statement of cash flows | |||
CASH FLOWS FROM OPERATING ACTIVITIES | 11,938 | ||
Adjustments made to obtain the cash flows from operating activities- | 404 | ||
Effect of foreign exchange rate changes on foreign currency cash deposits | (5,733) | ||
Adjustments For Decrease Increase In Operating Assets | (214,901) | ||
Adjustments For Increase Decrease In Operating Liabilities | 213,440 | ||
Income tax paid | (1,187) | ||
Dividends received, classified as operating activities | 118 | ||
Cash flows from (used in) investing activities | (2,946) | ||
Cash flows from (used in) financing activities | (6,760) | ||
Effect of exchange rate changes on cash and cash equivalents | 5,733 | ||
E. NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 7,965 | ||
F. CASH AND CASH EQUIVALENTS AT THE BEGINNING OF YEAR | $ 59,788 | 51,823 | |
G. CASH AND CASH EQUIVALENTS AT THE END OF YEAR | 59,788 | ||
Adjustments | |||
Changes in consolidated statement of cash flows | |||
CASH FLOWS FROM OPERATING ACTIVITIES | 5,567 | ||
Adjustments made to obtain the cash flows from operating activities- | 5,567 | ||
Effect of foreign exchange rate changes on foreign currency cash deposits | 5,567 | ||
Effect of exchange rate changes on cash and cash equivalents | $ (5,567) |
Distribution of the Bank's p123
Distribution of the Bank's profit and Earnings per share (Details) - MXN ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Distribution of the Bank's profit and Earnings per share | |||
Profit for the year | $ 18,678 | $ 16,536 | $ 14,064 |
Dividends declared | $ 8,910 | $ 17,468 | $ 6,760 |
Dividend per share (in pesos per share) | $ 0.11 | $ 0.22 | $ 0.08 |
Distribution of the Bank's p124
Distribution of the Bank's profit and Earnings per share - EPS Basic (Details) - MXN ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Basic earnings per share | |||
Profit attributable to the Parent | $ 18,678 | $ 16,536 | $ 14,051 |
Weighted average number of shares outstanding | 6,777,381,551 | 6,777,381,551 | 6,777,381,551 |
Basic earnings per share after the Merger (in pesos per share) | $ 2.76 | $ 2.44 | $ 2.07 |
Distribution of the Bank's p125
Distribution of the Bank's profit and Earnings per share - EPS Diluted (Details) - MXN ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Diluted earnings per share | |||
Profit attributable to the Parent | $ 18,678 | $ 16,536 | $ 14,051 |
Profit (net of non-controlling interests) | $ 18,678 | $ 16,536 | $ 14,051 |
Weighted average number of shares outstanding | 6,777,381,551 | 6,777,381,551 | 6,777,381,551 |
Dilutive effect of rights on shares | 9,612,806 | 9,612,806 | 9,612,806 |
Adjusted number of shares | 6,786,994,357 | 6,786,994,357 | 6,786,994,357 |
Diluted earnings per share after the Merger (in pesos per share) | $ 2.75 | $ 2.44 | $ 2.07 |
Compensation of Directors, E126
Compensation of Directors, Executive Officers and other key managment personnel (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current executive directors | |||
Compensation | |||
Compensation and benefits | $ 12 | $ 13 | $ 13 |
Executive officers | |||
Compensation | |||
Compensation | 416 | 401 | 282 |
Post-employment benefits | 265 | 265 | $ 361 |
Loans receivable | $ 27 | $ 31 |
Cash and balances with the C127
Cash and balances with the Central Bank (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and balances with the Central Bank | ||
Cash | $ 21,538 | $ 24,887 |
Central Bank compulsory deposits | 28,094 | 28,094 |
Deposits in the Central Bank | 8,034 | 25,666 |
Accrued interest | 21 | 16 |
Cash and balances with the Central Bank | $ 57,687 | $ 78,663 |
Loans and advances to credit128
Loans and advances to credit institutions - Classification (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets | ||
Other financial assets at fair value through profit or loss | $ 51,705 | $ 42,340 |
Loans and receivables. | 679,300 | 675,498 |
Total financial assets | 1,285,120 | 1,308,730 |
Loans and advances to credit institutions | ||
Financial assets | ||
Other financial assets at fair value through profit or loss | 46,087 | 37,831 |
Loans and receivables. | 59,122 | 82,388 |
Total financial assets | $ 105,209 | $ 120,219 |
Loans and advances to credit129
Loans and advances to credit institutions - Type (Details) - MXN ($) $ in Millions | 24 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2017 | |
Financial assets | ||
Total financial assets | $ 1,308,730 | $ 1,285,120 |
Loans and advances to credit institutions | ||
Financial assets | ||
Reciprocal accounts | 26,017 | 18,569 |
Time deposits | 96 | 71 |
Guarantee deposits - Collateral delivered for OTC derivatives transactions (Note 32) | 51,414 | 34,542 |
Reverse repurchase agreements | 37,831 | 46,087 |
Call money transactions granted | 1,062 | |
Other accounts | 3,799 | 5,940 |
Total financial assets | 120,219 | 105,209 |
Loans and advances to credit institutions | Mexican peso | ||
Financial assets | ||
Total financial assets | 59,629 | 69,311 |
Loans and advances to credit institutions | USD | ||
Financial assets | ||
Total financial assets | 60,496 | 35,229 |
Loans and advances to credit institutions | Other currencies | ||
Financial assets | ||
Total financial assets | 94 | 669 |
Loans and advances to credit institutions | Mexico. | ||
Financial assets | ||
Time deposits | 96 | 71 |
Call money transactions granted | $ 1,062 | $ 0 |
Time deposits repricing number of days | 182 days | |
Loans and advances to credit institutions | Mexico. | Fixed interest rate | ||
Financial assets | ||
Borrowings, interest rate | 1.50% |
Loans and advances to credit130
Loans and advances to credit institutions - Call money transactions (Details) - Loans and advances to credit institutions - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Financial assets | ||
Call money transactions granted | $ 1,062 | |
Mexico. | ||
Financial assets | ||
Call money transactions granted | $ 0 | $ 1,062 |
Mexico. | Floating interest rate | ||
Financial assets | ||
Borrowings, interest rate | 5.75% | |
Mexico. | Maximum | ||
Financial assets | ||
Call money transactions granted number of days | 3 days | 3 days |
Loans and advances to credit131
Loans and advances to credit institutions - Restricted assets (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets | ||
Financial instruments received as collateral | $ 55,483 | $ 47,578 |
Financial instruments in connection with derivative transactions in organized markets | ||
Financial assets | ||
Financial assets pledged as collateral | 2,566 | 3,182 |
Financial instruments in connection with derivative transactions in organized markets | Loans and advances to credit institutions | Loans and receivables | ||
Financial assets | ||
Financial assets pledged as collateral | 77 | |
Financial instrument in connection with OTC derivative transactions | Loans and advances to credit institutions | Loans and receivables | ||
Financial assets | ||
Financial assets pledged as collateral | 34,542 | 51,414 |
Financial instruments in connection with repurchase agreement transactions | Loans and advances to credit institutions | Financial assets at fair value through profit or loss, category | ||
Financial assets | ||
Financial instruments received as collateral | $ 46,075 | $ 37,849 |
Debt Instruments - Summary (Det
Debt Instruments - Summary (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets | ||
Financial assets held for trading | $ 315,570 | $ 342,582 |
Available-for-sale financial assets | 165,742 | 154,644 |
Loans and receivables | 679,300 | 675,498 |
Financial assets | 1,285,120 | 1,308,730 |
Debt instruments. | ||
Financial assets | ||
Financial assets held for trading | 147,747 | 140,853 |
Available-for-sale financial assets | 164,947 | 154,318 |
Loans and receivables | 10,758 | 11,472 |
Financial assets | $ 323,452 | $ 306,643 |
Debt Instruments - Type and cur
Debt Instruments - Type and currency (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets | ||
Financial assets | $ 1,285,120 | $ 1,308,730 |
Debt instruments. | ||
Financial assets | ||
Financial assets | 323,452 | 306,643 |
Debt instruments. | Mexican peso | ||
Financial assets | ||
Financial assets | 200,666 | 220,390 |
Debt instruments. | USD | ||
Financial assets | ||
Financial assets | 61,080 | 36,922 |
Debt instruments. | Brazilian real | ||
Financial assets | ||
Financial assets | 34,488 | 34,359 |
Debt instruments. | Other currencies | ||
Financial assets | ||
Financial assets | 27,218 | 14,972 |
Issued by financial institutions | ||
Financial assets | ||
Financial assets | 3,975 | 5,612 |
Other debt securities | ||
Financial assets | ||
Financial assets | 5,889 | 6,231 |
Mexico. | Debt instruments, Government debt securities | ||
Financial assets | ||
Financial assets | 224,003 | 229,514 |
Financial assets pledged as collateral | 2,964 | 2,670 |
Foreign | Debt instruments, Government debt securities | ||
Financial assets | ||
Financial assets | 89,585 | 65,286 |
BRAZIL | Debt instruments, Government debt securities | ||
Financial assets | ||
Financial assets | 34,488 | 34,359 |
UNITED STATES | Debt instruments, Government debt securities | ||
Financial assets | ||
Financial assets | $ 55,097 | $ 30,927 |
Debt Instruments - Held for tra
Debt Instruments - Held for trading (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2017MXN ($) | Dec. 31, 2016MXN ($) | |
Financial assets | ||
Financial assets at fair value through profit or loss, classified as held for trading | $ 315,570 | $ 342,582 |
Debt instruments. | ||
Financial assets | ||
Financial assets at fair value through profit or loss, classified as held for trading | 147,747 | 140,853 |
Debt instruments, Government debt securities | UNITED STATES | ||
Financial assets | ||
Financial assets at fair value through profit or loss, classified as held for trading | 55,038 | 30,927 |
Federal Treasury Securities (CETES) | ||
Financial assets | ||
Financial assets at fair value through profit or loss, classified as held for trading | 9,188 | 7,647 |
United Mexican States Bonds (UMS) | ||
Financial assets | ||
Financial assets at fair value through profit or loss, classified as held for trading | 44 | 48 |
Federal Mexican Government Development Bonds (BONDS) | ||
Financial assets | ||
Financial assets at fair value through profit or loss, classified as held for trading | 33,291 | 41,684 |
M and M10 Mexican Government Bonds | ||
Financial assets | ||
Financial assets at fair value through profit or loss, classified as held for trading | 14,069 | 10,286 |
Mexican Bank Saving Protection Bonds (BPATs) | ||
Financial assets | ||
Financial assets at fair value through profit or loss, classified as held for trading | 25,092 | 35,595 |
Federal Mexican Government Development Bonds in UDIS (UDIBONDS) | ||
Financial assets | ||
Financial assets at fair value through profit or loss, classified as held for trading | $ 6,930 | 8,881 |
UDI equivalent (in pesos) | 5.934551 | |
Debt securities, Other than government debt securities | ||
Financial assets | ||
Financial assets at fair value through profit or loss, classified as held for trading | $ 4,095 | $ 5,785 |
Debt Instruments - Held for 135
Debt Instruments - Held for trading - Restricted assets (Details) - Financial assets held for trading - Debt instruments. - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial instrument in connection with OTC derivative transactions | ||
Financial assets | ||
Financial assets pledged as collateral | $ 2,964 | $ 2,670 |
Financial instruments in connection with securities loans transactions | ||
Financial assets | ||
Financial assets pledged as collateral | 21,555 | 20,769 |
Financial instruments in connection with securities loans transactions | Central Bank, Lender | ||
Financial assets | ||
Financial assets pledged as collateral | 21,448 | 20,617 |
Financial instruments in connection with repurchase agreement transactions | ||
Financial assets | ||
Financial assets pledged as collateral | $ 89,147 | $ 82,916 |
Debt Instruments - Available-fo
Debt Instruments - Available-for-sale (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financial assets | ||||
Financial assets available-for-sale | $ 165,742 | $ 154,644 | ||
Debt instruments. | ||||
Financial assets | ||||
Financial assets available-for-sale | 164,947 | 154,318 | ||
Debt instruments. | Gross carrying amount | ||||
Financial assets | ||||
Financial assets available-for-sale | 164,947 | 154,318 | $ 113,525 | $ 83,029 |
Debt securities, Other than government debt securities | ||||
Financial assets | ||||
Financial assets available-for-sale | 5,769 | 6,058 | ||
Mexico. | United Mexican States Bonds (UMS) | ||||
Financial assets | ||||
Financial assets available-for-sale | 29,832 | 17,479 | ||
Mexico. | M, M3 and M5 Mexican Government Bonds | ||||
Financial assets | ||||
Financial assets available-for-sale | 76,174 | 75,639 | ||
Mexico. | Mexican Bank Saving Protection Bonds (BPATs) | ||||
Financial assets | ||||
Financial assets available-for-sale | 13,586 | 15,877 | ||
Mexico. | Federal Mexican Government Development Bonds in UDIS (UDIBONDS) | ||||
Financial assets | ||||
Financial assets available-for-sale | 5,039 | 4,906 | ||
UNITED STATES | Debt instruments, Government debt securities | ||||
Financial assets | ||||
Financial assets available-for-sale | 59 | |||
BRAZIL | Debt instruments, Government debt securities | ||||
Financial assets | ||||
Financial assets available-for-sale | $ 34,488 | $ 34,359 |
Debt Instruments - Available137
Debt Instruments - Available-for-sale - Restricted assets (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial instruments in connection with repurchase agreement transactions | Financial assets available for sale | Debt instruments. | ||
Financial assets | ||
Financial assets pledged as collateral for liabilities or contingent liabilities | $ 13,881 | $ 42,347 |
Debt Instruments - Issuer ratin
Debt Instruments - Issuer rating (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets | ||
Financial assets | $ 1,285,120 | $ 1,308,730 |
Debt instruments. | ||
Financial assets | ||
Financial assets | $ 323,452 | $ 306,643 |
Financial assets (as a percent) | 100.00% | 100.00% |
Private Debt | ||
Financial assets | ||
Financial assets | $ 9,864 | $ 11,842 |
Sovereign Debt | ||
Financial assets | ||
Financial assets | 313,588 | 294,801 |
AAA | Debt instruments. | ||
Financial assets | ||
Financial assets | $ 55,097 | $ 30,927 |
Financial assets (as a percent) | 17.03% | 10.07% |
AAA | Sovereign Debt | ||
Financial assets | ||
Financial assets | $ 55,097 | $ 30,927 |
A | Debt instruments. | ||
Financial assets | ||
Financial assets | $ 184,616 | $ 204,001 |
Financial assets (as a percent) | 57.08% | 66.53% |
A | Private Debt | ||
Financial assets | ||
Financial assets | $ 2,651 | $ 3,352 |
A | Sovereign Debt | ||
Financial assets | ||
Financial assets | 181,965 | 200,649 |
BBB | Debt instruments. | ||
Financial assets | ||
Financial assets | $ 33,561 | $ 21,236 |
Financial assets (as a percent) | 10.38% | 6.93% |
BBB | Private Debt | ||
Financial assets | ||
Financial assets | $ 3,685 | $ 3,709 |
BBB | Sovereign Debt | ||
Financial assets | ||
Financial assets | 29,876 | 17,527 |
BB | Debt instruments. | ||
Financial assets | ||
Financial assets | $ 50,178 | $ 50,307 |
Financial assets (as a percent) | 15.51% | 16.41% |
BB | Private Debt | ||
Financial assets | ||
Financial assets | $ 3,528 | $ 4,609 |
BB | Sovereign Debt | ||
Financial assets | ||
Financial assets | $ 46,650 | 45,698 |
Below B | Debt instruments. | ||
Financial assets | ||
Financial assets | $ 172 | |
Financial assets (as a percent) | 0.06% | |
Below B | Private Debt | ||
Financial assets | ||
Financial assets | $ 172 |
Debt Instruments - Loans and re
Debt Instruments - Loans and receivables (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets | ||
Loans and receivables. | $ 679,300 | $ 675,498 |
Debt instruments. | ||
Financial assets | ||
Loans and receivables. | 10,758 | 11,472 |
Special CETES | ||
Financial assets | ||
Loans and receivables. | 2,975 | 3,691 |
BREMS R | ||
Financial assets | ||
Loans and receivables. | 7,783 | 7,781 |
Unquoted debt instruments | ||
Financial assets | ||
Loans and receivables. | 10,758 | 11,472 |
Unquoted debt instruments | Gross carrying amount | ||
Financial assets | ||
Loans and receivables. | $ 10,758 | $ 11,472 |
Debt Instruments - Loans and140
Debt Instruments - Loans and receivables - Restricted assets (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Loans and receivables | Financial instruments in connection with repurchase agreement transactions | BREMS R | ||
Financial assets | ||
Financial assets pledged as collateral for liabilities or contingent liabilities | $ 7,350 | $ 0 |
Debt Instruments - Available141
Debt Instruments - Available-for-sale disregarding the allowance for impairment losses (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financial assets | |||
Beginning balance | $ 154,644 | ||
Valuation adjustments | 1,932 | $ (3,505) | $ (196) |
Amounts reclassified to consolidated income statement | (9) | (120) | 161 |
Balance at year-end | 165,742 | 154,644 | |
Debt instruments. | |||
Financial assets | |||
Beginning balance | 154,318 | ||
Valuation adjustments | 1,935 | (3,453) | (192) |
Amounts reclassified to consolidated income statement | (9) | (120) | 161 |
Balance at year-end | 164,947 | 154,318 | |
Gross carrying amount | Debt instruments. | |||
Financial assets | |||
Beginning balance | 154,318 | 113,525 | 83,029 |
Net additions/(disposals) | 8,703 | 44,366 | 30,527 |
Valuation adjustments | 1,935 | (3,453) | (192) |
Amounts reclassified to consolidated income statement | (9) | (120) | 161 |
Balance at year-end | $ 164,947 | $ 154,318 | $ 113,525 |
Debt Instruments - Repurchase a
Debt Instruments - Repurchase agreements and impairment Losses (Details) - MXN ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financial assets | ||||
Allowance for impairment losses | $ 16,929 | $ 17,883 | $ 18,749 | $ 15,198 |
Impairment loss on financial assets | 18,820 | 16,661 | 16,041 | |
Financial assets available for sale | Debt instruments. | ||||
Financial assets | ||||
Allowance for impairment losses | $ 0 | 0 | ||
Impairment loss on financial assets | $ 0 | $ 0 | $ 0 |
Equity instruments - Detail by
Equity instruments - Detail by classification and type (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financial instruments | ||||
Financial assets held for trading | $ 315,570 | $ 342,582 | ||
Available-for-sale financial assets | 165,742 | 154,644 | ||
Total financial assets | 1,285,120 | 1,308,730 | ||
Equity instruments. | ||||
Financial instruments | ||||
Financial assets held for trading | 2,562 | 1,822 | ||
Available-for-sale financial assets | 795 | 326 | $ 348 | $ 311 |
Total financial assets | 3,357 | 2,148 | ||
Equity instruments. | Mexico. | ||||
Financial instruments | ||||
Total financial assets | 3,357 | 2,148 | ||
Gross carrying amount | Equity instruments. | ||||
Financial instruments | ||||
Available-for-sale financial assets | $ 795 | $ 326 |
Equity instruments - Collateral
Equity instruments - Collateral (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial instruments | ||
Financial instruments received as collateral | $ 55,483 | $ 47,578 |
Financial instruments in connection with securities loans transactions | Equity instruments. | ||
Financial instruments | ||
Financial instruments received as collateral | 7 | 3 |
Financial assets held for trading | Financial instruments in connection with securities loans transactions | Equity instruments. | ||
Financial instruments | ||
Financial instruments received as collateral | 7 | 3 |
Financial assets pledged as collateral | $ 107 | $ 2 |
Equity instruments - Changes in
Equity instruments - Changes in Available-for-sale instruments (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financial instruments | |||
Beginning balance | $ 154,644 | ||
Valuation adjustments | 1,932 | $ (3,505) | $ (196) |
Amounts reclassified to consolidated income statement | (9) | (120) | 161 |
Balance at year-end | 165,742 | 154,644 | |
Equity instruments. | |||
Financial instruments | |||
Beginning balance | 326 | 348 | 311 |
Net additions/(disposals) | 472 | 30 | 41 |
Valuation adjustments | (3) | (52) | (4) |
Balance at year-end | $ 795 | $ 326 | $ 348 |
Trading derivatives (assets 146
Trading derivatives (assets and liabilities) and Short positions - Trading derivatives (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial instruments | ||
Financial assets at fair value through profit or loss, classified as held for trading | $ 315,570 | $ 342,582 |
Financial liabilities at fair value through profit or loss that meet definition of held for trading | 239,725 | 266,828 |
Trading derivatives | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss that meet definition of held for trading | 171,282 | 205,690 |
Trading derivatives | Interest rate risk | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss that meet definition of held for trading | 61,027 | 65,719 |
Trading derivatives | Currency risk - Foreign exchange risk | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss that meet definition of held for trading | 109,813 | 139,461 |
Trading derivatives | Price risk | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss that meet definition of held for trading | 442 | 510 |
Trading derivatives | ||
Financial instruments | ||
Financial assets at fair value through profit or loss, classified as held for trading | 165,261 | 199,907 |
Trading derivatives | Interest rate risk | ||
Financial instruments | ||
Financial assets at fair value through profit or loss, classified as held for trading | 58,895 | 64,589 |
Trading derivatives | Currency risk - Foreign exchange risk | ||
Financial instruments | ||
Financial assets at fair value through profit or loss, classified as held for trading | 105,424 | 134,430 |
Trading derivatives | Price risk | ||
Financial instruments | ||
Financial assets at fair value through profit or loss, classified as held for trading | $ 942 | $ 888 |
Trading derivatives (assets 147
Trading derivatives (assets and liabilities) and Short positions - Short positions (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Financial instruments | ||
Financial liabilities held for trading | $ 239,725 | $ 266,828 |
Short positions | ||
Financial instruments | ||
Financial liabilities held for trading | 68,443 | 61,138 |
Short positions - Securities loans | ||
Financial instruments | ||
Financial liabilities held for trading | 21,132 | 20,375 |
Short positions, Securities loans - Debt instruments | ||
Financial instruments | ||
Financial liabilities held for trading | 21,050 | 20,246 |
Short positions, Securities loans - Equity instruments | ||
Financial instruments | ||
Financial liabilities held for trading | 82 | 129 |
Short positions, Short sales - Debt instruments | ||
Financial instruments | ||
Financial liabilities held for trading | 47,311 | 40,763 |
Financial liabilities held for trading arising from sale of financial assets acquired under reverse repurchase agreements | $ 46,233 | $ 40,613 |
Loans and advances to custom148
Loans and advances to customers - Summary (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial instruments | ||
Other financial assets at fair value through profit or loss | $ 51,705 | $ 42,340 |
Loans and receivables | 679,300 | 675,498 |
Total financial assets | 1,285,120 | 1,308,730 |
Loans and advances to customers | ||
Financial instruments | ||
Other financial assets at fair value through profit or loss | 5,618 | 4,509 |
Loans and receivables | 609,420 | 581,638 |
Total financial assets | 615,038 | 586,147 |
Collateral provided | 2,566 | 3,214 |
Gross carrying amount | Loans and advances to customers | ||
Financial instruments | ||
Total financial assets | 631,967 | 604,030 |
Allowance for impairment losses | Loans and advances to customers | ||
Financial instruments | ||
Total financial assets | $ 16,929 | $ 17,883 |
Loans and advances to custom149
Loans and advances to customers - Breakdown of loans (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial instruments | ||
Financial instruments received as collateral | $ 55,483 | $ 47,578 |
Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 631,967 | 604,030 |
Fixed interest rate | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 245,530 | 216,957 |
Floating interest rate | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 386,437 | 387,073 |
MEXICO | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 631,967 | 604,030 |
Public sector | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 49,294 | 57,022 |
Individuals | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 241,951 | 233,293 |
Communications and transportation | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 31,339 | 21,889 |
Construction | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 29,386 | 34,817 |
Manufacturing | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 60,261 | 59,984 |
Services | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 189,846 | 166,344 |
Tourism | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 14,008 | 15,036 |
Other sectors | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 15,882 | 15,645 |
Commercial, financial and industrial loans | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 329,098 | 302,364 |
Public sector loans | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 49,294 | 57,022 |
Mortgages | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 126,835 | 125,636 |
Reverse repurchase agreements | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 5,618 | 4,509 |
Installment loans to individuals - Revolving consumer credit cards loans | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 52,037 | 49,585 |
Installment loans to individuals - Non-revolving consumer loans | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 50,953 | 47,319 |
Impaired loans | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 18,132 | 17,595 |
Reverse repurchase agreement transactions | Debt instruments. | Financial assets at fair value through profit or loss, category | ||
Financial instruments | ||
Financial instruments received as collateral | $ 5,618 | $ 4,511 |
Loans and advances to custom150
Loans and advances to customers - Allowance for impairment losses (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of reconciliation of changes in loss allowance of financial instruments | |||
Beginning balance | $ (17,883) | $ (18,749) | $ (15,198) |
Impairment losses on financial assets - Loans and receivables (*) | (20,771) | (19,022) | (17,766) |
Others | (8) | (157) | (209) |
Write-off of impaired balances against recorded allowance for impairment losses | 21,733 | 20,045 | 14,424 |
Balance at end of year | (16,929) | (17,883) | (18,749) |
Recoveries of loans previously charged-off and recovery expenses | 1,951 | 2,361 | 1,725 |
Individually assessed | |||
Disclosure of reconciliation of changes in loss allowance of financial instruments | |||
Beginning balance | (6,463) | (7,943) | |
Impairment losses on financial assets - Loans and receivables (*) | (4,181) | (5,802) | (6,172) |
Balance at end of year | (2,196) | (6,463) | (7,943) |
Collectively assessed | |||
Disclosure of reconciliation of changes in loss allowance of financial instruments | |||
Beginning balance | (11,420) | (10,806) | |
Impairment losses on financial assets - Loans and receivables (*) | (16,590) | (13,220) | (11,594) |
Balance at end of year | (14,733) | (11,420) | (10,806) |
MEXICO | |||
Disclosure of reconciliation of changes in loss allowance of financial instruments | |||
Beginning balance | (17,883) | (18,749) | |
Balance at end of year | (16,929) | (17,883) | (18,749) |
Loans and receivables | |||
Disclosure of reconciliation of changes in loss allowance of financial instruments | |||
Beginning balance | (17,883) | (18,749) | |
Balance at end of year | $ (16,929) | $ (17,883) | $ (18,749) |
Loans and advances to custom151
Loans and advances to customers - Impaired loans (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loans and receivables | Impaired loans | |||
Financial assets | |||
Beginning balance | $ 17,595 | ||
Balance at year-end | 18,132 | $ 17,595 | |
Gross carrying amount | |||
Financial assets | |||
Beginning balance | 604,030 | ||
Balance at year-end | 631,967 | 604,030 | |
Gross carrying amount | Loans and receivables | Impaired loans | |||
Financial assets | |||
Beginning balance | 17,595 | 19,742 | $ 18,430 |
Additions | 34,180 | 30,431 | 30,006 |
Transfers to performing loans | (11,910) | (12,533) | (14,270) |
Written-off assets | (21,733) | (20,045) | (14,424) |
Balance at year-end | $ 18,132 | $ 17,595 | $ 19,742 |
Loans and advances to custom152
Loans and advances to customers - Impaired loans between no past due and past due (Details) - Loans and receivables - Impaired loans - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets | ||
Loans and advances to customers | $ 18,132 | $ 17,595 |
Less than 3 Months | ||
Financial assets | ||
Loans and advances to customers | 5,110 | 4,688 |
6 months | ||
Financial assets | ||
Loans and advances to customers | 6,850 | 4,924 |
6 to 9 Months | ||
Financial assets | ||
Loans and advances to customers | 2,322 | 1,884 |
9 to 12 Months | ||
Financial assets | ||
Loans and advances to customers | 946 | 1,469 |
More than 12 Months | ||
Financial assets | ||
Loans and advances to customers | 2,904 | 4,630 |
Commercial, financial and industrial loans | ||
Financial assets | ||
Loans and advances to customers | 6,007 | 6,842 |
Commercial, financial and industrial loans | Less than 3 Months | ||
Financial assets | ||
Loans and advances to customers | 2,509 | 2,658 |
Commercial, financial and industrial loans | 6 months | ||
Financial assets | ||
Loans and advances to customers | 2,472 | 1,322 |
Commercial, financial and industrial loans | 6 to 9 Months | ||
Financial assets | ||
Loans and advances to customers | 664 | 417 |
Commercial, financial and industrial loans | 9 to 12 Months | ||
Financial assets | ||
Loans and advances to customers | 127 | 758 |
Commercial, financial and industrial loans | More than 12 Months | ||
Financial assets | ||
Loans and advances to customers | 235 | 1,687 |
Mortgages | ||
Financial assets | ||
Loans and advances to customers | 7,361 | 6,778 |
Mortgages | Less than 3 Months | ||
Financial assets | ||
Loans and advances to customers | 1,086 | 759 |
Mortgages | 6 months | ||
Financial assets | ||
Loans and advances to customers | 1,624 | 1,356 |
Mortgages | 6 to 9 Months | ||
Financial assets | ||
Loans and advances to customers | 1,186 | 1,044 |
Mortgages | 9 to 12 Months | ||
Financial assets | ||
Loans and advances to customers | 815 | 708 |
Mortgages | More than 12 Months | ||
Financial assets | ||
Loans and advances to customers | 2,650 | 2,911 |
Installment loans to individuals - Revolving consumer credit cards loans | ||
Financial assets | ||
Loans and advances to customers | 2,335 | 1,952 |
Installment loans to individuals - Revolving consumer credit cards loans | Less than 3 Months | ||
Financial assets | ||
Loans and advances to customers | 868 | 786 |
Installment loans to individuals - Revolving consumer credit cards loans | 6 months | ||
Financial assets | ||
Loans and advances to customers | 1,467 | 1,166 |
Installment loans to individuals - Non-revolving consumer loans | ||
Financial assets | ||
Loans and advances to customers | 2,429 | 2,023 |
Installment loans to individuals - Non-revolving consumer loans | Less than 3 Months | ||
Financial assets | ||
Loans and advances to customers | 647 | 485 |
Installment loans to individuals - Non-revolving consumer loans | 6 months | ||
Financial assets | ||
Loans and advances to customers | 1,287 | 1,080 |
Installment loans to individuals - Non-revolving consumer loans | 6 to 9 Months | ||
Financial assets | ||
Loans and advances to customers | 472 | 423 |
Installment loans to individuals - Non-revolving consumer loans | 9 to 12 Months | ||
Financial assets | ||
Loans and advances to customers | 4 | 3 |
Installment loans to individuals - Non-revolving consumer loans | More than 12 Months | ||
Financial assets | ||
Loans and advances to customers | $ 19 | $ 32 |
Loans and advances to custom153
Loans and advances to customers - Renegotiated loans (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financial instruments | |||
Renegotiated loan amount | $ 3,202 | $ 6,413 | $ 5,200 |
Percentage of renegotiated loans | 100.00% | 100.00% | 100.00% |
Impaired loans | |||
Financial instruments | |||
Renegotiated loan amount | $ 1,215 | $ 1,764 | $ 1,885 |
Percentage of renegotiated loans | 38.00% | 28.00% | 36.00% |
Due to Concerns About Current or Potential Credit Deterioration | Performing loans | |||
Financial instruments | |||
Renegotiated loan amount | $ 1,987 | $ 4,649 | $ 3,315 |
Percentage of renegotiated loans | 62.00% | 72.00% | 64.00% |
Commercial, financial and industrial loans | |||
Financial instruments | |||
Renegotiated loan amount | $ 1,907 | $ 5,182 | $ 4,810 |
Commercial, financial and industrial loans | Impaired loans | |||
Financial instruments | |||
Renegotiated loan amount | 1,028 | 1,606 | 1,591 |
Commercial, financial and industrial loans | Due to Concerns About Current or Potential Credit Deterioration | Performing loans | |||
Financial instruments | |||
Renegotiated loan amount | 879 | 3,576 | 3,219 |
Mortgages | |||
Financial instruments | |||
Renegotiated loan amount | 23 | ||
Mortgages | Impaired loans | |||
Financial instruments | |||
Renegotiated loan amount | 1 | ||
Mortgages | Due to Concerns About Current or Potential Credit Deterioration | Performing loans | |||
Financial instruments | |||
Renegotiated loan amount | 22 | ||
Installment loans to individuals | |||
Financial instruments | |||
Renegotiated loan amount | 1,272 | 1,231 | 390 |
Installment loans to individuals | Impaired loans | |||
Financial instruments | |||
Renegotiated loan amount | 186 | 158 | 294 |
Installment loans to individuals | Due to Concerns About Current or Potential Credit Deterioration | Performing loans | |||
Financial instruments | |||
Renegotiated loan amount | $ 1,086 | $ 1,073 | $ 96 |
Loans and advances to custom154
Loans and advances to customers - Maximum exposure to credit risk (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial instruments | ||
Maximum Exposure to Credit Risk | $ 1,342,992 | $ 1,329,120 |
Maximum Exposure to Credit Risk, unsecured | 854,503 | 893,269 |
Maximum Exposure to Credit Risk, secured | 488,489 | 436,851 |
Cash Collateral Received | 45,024 | 3,182 |
Collateralized by Securities | 55,476 | 46,309 |
Collection Rights | ||
Financial instruments | ||
Other Credit Enhancements | 165,696 | 122,050 |
Real Estate | ||
Financial instruments | ||
Other Credit Enhancements | 196,146 | 204,806 |
Guarantees | ||
Financial instruments | ||
Other Credit Enhancements | 76,030 | 68,112 |
Guarantees and loan commitments | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 78,812 | 62,065 |
Maximum Exposure to Credit Risk, unsecured | 78,812 | 62,065 |
Available lines of credit cards and non-revolving consumer loans | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 36,256 | |
Maximum Exposure to Credit Risk, unsecured | 36,256 | |
Available lines of credit | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 38,291 | |
Maximum Exposure to Credit Risk, unsecured | 38,291 | |
Financial assets held for trading | Financial assets, category | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 313,008 | 340,760 |
Maximum Exposure to Credit Risk, unsecured | 264,201 | 333,360 |
Maximum Exposure to Credit Risk, secured | 48,807 | 8,400 |
Cash Collateral Received | 45,024 | 3,182 |
Collateralized by Securities | 3,783 | 5,218 |
Financial assets designated at fair value through profit or loss | Financial assets, category | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 51,705 | 42,340 |
Maximum Exposure to Credit Risk, secured | 51,705 | 42,340 |
Collateralized by Securities | 51,693 | 41,091 |
Financial assets available for sale | Financial assets, category | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 164,947 | 154,318 |
Maximum Exposure to Credit Risk, unsecured | 164,947 | 154,318 |
Loans and receivables | Financial assets, category | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 696,229 | 693,381 |
Maximum Exposure to Credit Risk, unsecured | 308,252 | 307,270 |
Maximum Exposure to Credit Risk, secured | 387,977 | 386,111 |
Loans and receivables | Financial assets, category | Collection Rights | ||
Financial instruments | ||
Other Credit Enhancements | 165,696 | 122,050 |
Loans and receivables | Financial assets, category | Real Estate | ||
Financial instruments | ||
Other Credit Enhancements | 196,146 | 204,806 |
Loans and receivables | Financial assets, category | Guarantees | ||
Financial instruments | ||
Other Credit Enhancements | 76,030 | 68,112 |
Loans and receivables | Financial assets, category | Loans and advances to credit institutions | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 59,122 | 82,388 |
Maximum Exposure to Credit Risk, unsecured | 59,122 | 82,388 |
Loans and receivables | Financial assets, category | Loans and advances to customers | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 626,349 | 599,521 |
Maximum Exposure to Credit Risk, unsecured | 238,372 | 213,410 |
Maximum Exposure to Credit Risk, secured | 387,977 | 386,111 |
Loans and receivables | Financial assets, category | Loans and advances to customers | Collection Rights | ||
Financial instruments | ||
Other Credit Enhancements | 165,696 | 122,050 |
Loans and receivables | Financial assets, category | Loans and advances to customers | Real Estate | ||
Financial instruments | ||
Other Credit Enhancements | 196,146 | 204,806 |
Loans and receivables | Financial assets, category | Loans and advances to customers | Guarantees | ||
Financial instruments | ||
Other Credit Enhancements | 76,030 | 68,112 |
Loans and receivables | Financial assets, category | Commercial, financial and industrial loans | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 335,104 | 309,206 |
Maximum Exposure to Credit Risk, unsecured | 107,980 | 82,616 |
Maximum Exposure to Credit Risk, secured | 227,124 | 226,590 |
Loans and receivables | Financial assets, category | Commercial, financial and industrial loans | Collection Rights | ||
Financial instruments | ||
Other Credit Enhancements | 141,806 | 96,926 |
Loans and receivables | Financial assets, category | Commercial, financial and industrial loans | Real Estate | ||
Financial instruments | ||
Other Credit Enhancements | 66,619 | 76,511 |
Loans and receivables | Financial assets, category | Commercial, financial and industrial loans | Guarantees | ||
Financial instruments | ||
Other Credit Enhancements | 76,028 | 65,096 |
Loans and receivables | Financial assets, category | Public sector loans | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 49,294 | 57,022 |
Maximum Exposure to Credit Risk, unsecured | 18,963 | 29,667 |
Maximum Exposure to Credit Risk, secured | 30,331 | 27,355 |
Loans and receivables | Financial assets, category | Public sector loans | Collection Rights | ||
Financial instruments | ||
Other Credit Enhancements | 23,845 | 24,971 |
Loans and receivables | Financial assets, category | Public sector loans | Guarantees | ||
Financial instruments | ||
Other Credit Enhancements | 3,016 | |
Loans and receivables | Financial assets, category | Mortgages | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 134,197 | 132,414 |
Maximum Exposure to Credit Risk, unsecured | 4,397 | 1,149 |
Maximum Exposure to Credit Risk, secured | 129,800 | 131,265 |
Loans and receivables | Financial assets, category | Mortgages | Real Estate | ||
Financial instruments | ||
Other Credit Enhancements | 128,106 | 126,869 |
Loans and receivables | Financial assets, category | Mortgages | Guarantees | ||
Financial instruments | ||
Other Credit Enhancements | 2 | |
Loans and receivables | Financial assets, category | Revolving consumer credit card loans | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 54,372 | 51,537 |
Maximum Exposure to Credit Risk, unsecured | 54,372 | 51,537 |
Loans and receivables | Financial assets, category | Installment loans to individuals - Non-revolving consumer loans | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 53,382 | 49,342 |
Maximum Exposure to Credit Risk, unsecured | 52,660 | 48,441 |
Maximum Exposure to Credit Risk, secured | 722 | 901 |
Loans and receivables | Financial assets, category | Installment loans to individuals - Non-revolving consumer loans | Collection Rights | ||
Financial instruments | ||
Other Credit Enhancements | 45 | 153 |
Loans and receivables | Financial assets, category | Installment loans to individuals - Non-revolving consumer loans | Real Estate | ||
Financial instruments | ||
Other Credit Enhancements | 1,421 | 1,426 |
Loans and receivables | Financial assets, category | Debt instruments. | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 10,758 | 11,472 |
Maximum Exposure to Credit Risk, unsecured | $ 10,758 | $ 11,472 |
Loans and advances to custom155
Loans and advances to customers - Internal rating (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Internal credit grades | ||
Credit quality information by rating category | ||
Credit quality | $ 390,370 | $ 360,086 |
Rating category, 9.3 | ||
Credit quality information by rating category | ||
Credit quality | 653 | |
Rating category, 9.2 | ||
Credit quality information by rating category | ||
Credit quality | 623 | |
Rating category, 9.0 | ||
Credit quality information by rating category | ||
Credit quality | 3,504 | |
Rating category, 8.5 | ||
Credit quality information by rating category | ||
Credit quality | 2,583 | 1,990 |
Rating category, 8.0 | ||
Credit quality information by rating category | ||
Credit quality | 9,133 | 2,660 |
Rating category, 7.5 | ||
Credit quality information by rating category | ||
Credit quality | 32,111 | 44,309 |
Rating category, 7.0 | ||
Credit quality information by rating category | ||
Credit quality | 28,979 | 35,636 |
Rating category, 6.5 | ||
Credit quality information by rating category | ||
Credit quality | 37,086 | 15,905 |
Rating category, 6.0 | ||
Credit quality information by rating category | ||
Credit quality | 60,046 | 63,625 |
Rating category, 5.5 | ||
Credit quality information by rating category | ||
Credit quality | 93,420 | 76,408 |
Rating category, 5.0 | ||
Credit quality information by rating category | ||
Credit quality | 83,756 | 69,634 |
Rating category, 4.5 | ||
Credit quality information by rating category | ||
Credit quality | 16,433 | 17,018 |
Rating category, 4.0 | ||
Credit quality information by rating category | ||
Credit quality | 2,987 | 4,454 |
Rating category, 3.5 | ||
Credit quality information by rating category | ||
Credit quality | 1,421 | 1,773 |
Rating category, 3.0 | ||
Credit quality information by rating category | ||
Credit quality | 413 | 1,373 |
Rating category, 2.5 | ||
Credit quality information by rating category | ||
Credit quality | 112 | 191 |
Rating category, 2.0 | ||
Credit quality information by rating category | ||
Credit quality | 2,023 | 1,982 |
Rating category, 1.5 | ||
Credit quality information by rating category | ||
Credit quality | 564 | |
Rating category, 1.0 | ||
Credit quality information by rating category | ||
Credit quality | 204 | |
Not rated | ||
Credit quality information by rating category | ||
Credit quality | 15,176 | 22,271 |
Loans and advances to customers | Internal credit grades | ||
Credit quality information by rating category | ||
Credit quality | 312,120 | 298,333 |
Loans and advances to customers | Rating category, 9.0 | ||
Credit quality information by rating category | ||
Credit quality | 3,504 | |
Loans and advances to customers | Rating category, 8.0 | ||
Credit quality information by rating category | ||
Credit quality | 3,380 | 15 |
Loans and advances to customers | Rating category, 7.5 | ||
Credit quality information by rating category | ||
Credit quality | 20,573 | 37,736 |
Loans and advances to customers | Rating category, 7.0 | ||
Credit quality information by rating category | ||
Credit quality | 9,117 | 20,847 |
Loans and advances to customers | Rating category, 6.5 | ||
Credit quality information by rating category | ||
Credit quality | 29,790 | 6,699 |
Loans and advances to customers | Rating category, 6.0 | ||
Credit quality information by rating category | ||
Credit quality | 48,849 | 54,717 |
Loans and advances to customers | Rating category, 5.5 | ||
Credit quality information by rating category | ||
Credit quality | 84,473 | 68,014 |
Loans and advances to customers | Rating category, 5.0 | ||
Credit quality information by rating category | ||
Credit quality | 77,155 | 64,872 |
Loans and advances to customers | Rating category, 4.5 | ||
Credit quality information by rating category | ||
Credit quality | 15,179 | 16,069 |
Loans and advances to customers | Rating category, 4.0 | ||
Credit quality information by rating category | ||
Credit quality | 2,898 | 4,133 |
Loans and advances to customers | Rating category, 3.5 | ||
Credit quality information by rating category | ||
Credit quality | 1,396 | 1,753 |
Loans and advances to customers | Rating category, 3.0 | ||
Credit quality information by rating category | ||
Credit quality | 413 | 1,373 |
Loans and advances to customers | Rating category, 2.5 | ||
Credit quality information by rating category | ||
Credit quality | 112 | 116 |
Loans and advances to customers | Rating category, 2.0 | ||
Credit quality information by rating category | ||
Credit quality | 1,870 | 1,949 |
Loans and advances to customers | Rating category, 1.5 | ||
Credit quality information by rating category | ||
Credit quality | 564 | |
Loans and advances to customers | Rating category, 1.0 | ||
Credit quality information by rating category | ||
Credit quality | 204 | |
Loans and advances to customers | Not rated | ||
Credit quality information by rating category | ||
Credit quality | 12,847 | 19,836 |
Commercial loans (except SMEs) | Internal credit grades | ||
Credit quality information by rating category | ||
Credit quality | 262,825 | 241,311 |
Commercial loans (except SMEs) | Rating category, 8.0 | ||
Credit quality information by rating category | ||
Credit quality | 3,380 | 15 |
Commercial loans (except SMEs) | Rating category, 7.5 | ||
Credit quality information by rating category | ||
Credit quality | 496 | 4,006 |
Commercial loans (except SMEs) | Rating category, 7.0 | ||
Credit quality information by rating category | ||
Credit quality | 9,116 | 17,082 |
Commercial loans (except SMEs) | Rating category, 6.5 | ||
Credit quality information by rating category | ||
Credit quality | 28,807 | 6,699 |
Commercial loans (except SMEs) | Rating category, 6.0 | ||
Credit quality information by rating category | ||
Credit quality | 48,849 | 54,717 |
Commercial loans (except SMEs) | Rating category, 5.5 | ||
Credit quality information by rating category | ||
Credit quality | 74,722 | 61,648 |
Commercial loans (except SMEs) | Rating category, 5.0 | ||
Credit quality information by rating category | ||
Credit quality | 63,662 | 57,457 |
Commercial loans (except SMEs) | Rating category, 4.5 | ||
Credit quality information by rating category | ||
Credit quality | 13,901 | 10,978 |
Commercial loans (except SMEs) | Rating category, 4.0 | ||
Credit quality information by rating category | ||
Credit quality | 2,898 | 3,497 |
Commercial loans (except SMEs) | Rating category, 3.5 | ||
Credit quality information by rating category | ||
Credit quality | 1,396 | 1,753 |
Commercial loans (except SMEs) | Rating category, 3.0 | ||
Credit quality information by rating category | ||
Credit quality | 413 | 1,373 |
Commercial loans (except SMEs) | Rating category, 2.5 | ||
Credit quality information by rating category | ||
Credit quality | 112 | 116 |
Commercial loans (except SMEs) | Rating category, 2.0 | ||
Credit quality information by rating category | ||
Credit quality | 1,870 | 1,949 |
Commercial loans (except SMEs) | Rating category, 1.5 | ||
Credit quality information by rating category | ||
Credit quality | 564 | |
Commercial loans (except SMEs) | Rating category, 1.0 | ||
Credit quality information by rating category | ||
Credit quality | 204 | |
Commercial loans (except SMEs) | Not rated | ||
Credit quality information by rating category | ||
Credit quality | 12,639 | 19,817 |
Public sector loans | Internal credit grades | ||
Credit quality information by rating category | ||
Credit quality | 49,295 | 57,022 |
Public sector loans | Rating category, 9.0 | ||
Credit quality information by rating category | ||
Credit quality | 3,504 | |
Public sector loans | Rating category, 7.5 | ||
Credit quality information by rating category | ||
Credit quality | 20,077 | 33,730 |
Public sector loans | Rating category, 7.0 | ||
Credit quality information by rating category | ||
Credit quality | 1 | 3,765 |
Public sector loans | Rating category, 6.5 | ||
Credit quality information by rating category | ||
Credit quality | 983 | |
Public sector loans | Rating category, 5.5 | ||
Credit quality information by rating category | ||
Credit quality | 9,751 | 6,366 |
Public sector loans | Rating category, 5.0 | ||
Credit quality information by rating category | ||
Credit quality | 13,493 | 7,415 |
Public sector loans | Rating category, 4.5 | ||
Credit quality information by rating category | ||
Credit quality | 1,278 | 5,091 |
Public sector loans | Rating category, 4.0 | ||
Credit quality information by rating category | ||
Credit quality | 636 | |
Public sector loans | Not rated | ||
Credit quality information by rating category | ||
Credit quality | 208 | 19 |
Financial instruments not recognized on consolidated balance sheet | Internal credit grades | ||
Credit quality information by rating category | ||
Credit quality | 78,250 | 61,753 |
Financial instruments not recognized on consolidated balance sheet | Rating category, 9.3 | ||
Credit quality information by rating category | ||
Credit quality | 653 | |
Financial instruments not recognized on consolidated balance sheet | Rating category, 9.2 | ||
Credit quality information by rating category | ||
Credit quality | 623 | |
Financial instruments not recognized on consolidated balance sheet | Rating category, 8.5 | ||
Credit quality information by rating category | ||
Credit quality | 2,583 | 1,990 |
Financial instruments not recognized on consolidated balance sheet | Rating category, 8.0 | ||
Credit quality information by rating category | ||
Credit quality | 5,753 | 2,645 |
Financial instruments not recognized on consolidated balance sheet | Rating category, 7.5 | ||
Credit quality information by rating category | ||
Credit quality | 11,538 | 6,573 |
Financial instruments not recognized on consolidated balance sheet | Rating category, 7.0 | ||
Credit quality information by rating category | ||
Credit quality | 19,862 | 14,789 |
Financial instruments not recognized on consolidated balance sheet | Rating category, 6.5 | ||
Credit quality information by rating category | ||
Credit quality | 7,296 | 9,206 |
Financial instruments not recognized on consolidated balance sheet | Rating category, 6.0 | ||
Credit quality information by rating category | ||
Credit quality | 11,197 | 8,908 |
Financial instruments not recognized on consolidated balance sheet | Rating category, 5.5 | ||
Credit quality information by rating category | ||
Credit quality | 8,947 | 8,394 |
Financial instruments not recognized on consolidated balance sheet | Rating category, 5.0 | ||
Credit quality information by rating category | ||
Credit quality | 6,601 | 4,762 |
Financial instruments not recognized on consolidated balance sheet | Rating category, 4.5 | ||
Credit quality information by rating category | ||
Credit quality | 1,254 | 949 |
Financial instruments not recognized on consolidated balance sheet | Rating category, 4.0 | ||
Credit quality information by rating category | ||
Credit quality | 89 | 321 |
Financial instruments not recognized on consolidated balance sheet | Rating category, 3.5 | ||
Credit quality information by rating category | ||
Credit quality | 25 | 20 |
Financial instruments not recognized on consolidated balance sheet | Rating category, 2.5 | ||
Credit quality information by rating category | ||
Credit quality | 75 | |
Financial instruments not recognized on consolidated balance sheet | Rating category, 2.0 | ||
Credit quality information by rating category | ||
Credit quality | 153 | 33 |
Financial instruments not recognized on consolidated balance sheet | Not rated | ||
Credit quality information by rating category | ||
Credit quality | 2,329 | 2,435 |
Guarantees | Internal credit grades | ||
Credit quality information by rating category | ||
Credit quality | 63,079 | 47,841 |
Guarantees | Rating category, 9.3 | ||
Credit quality information by rating category | ||
Credit quality | 653 | |
Guarantees | Rating category, 9.2 | ||
Credit quality information by rating category | ||
Credit quality | 623 | |
Guarantees | Rating category, 8.5 | ||
Credit quality information by rating category | ||
Credit quality | 2,576 | 1,959 |
Guarantees | Rating category, 8.0 | ||
Credit quality information by rating category | ||
Credit quality | 5,262 | 2,063 |
Guarantees | Rating category, 7.5 | ||
Credit quality information by rating category | ||
Credit quality | 11,037 | 6,449 |
Guarantees | Rating category, 7.0 | ||
Credit quality information by rating category | ||
Credit quality | 19,265 | 14,063 |
Guarantees | Rating category, 6.5 | ||
Credit quality information by rating category | ||
Credit quality | 7,043 | 8,996 |
Guarantees | Rating category, 6.0 | ||
Credit quality information by rating category | ||
Credit quality | 9,060 | 5,986 |
Guarantees | Rating category, 5.5 | ||
Credit quality information by rating category | ||
Credit quality | 3,219 | 3,834 |
Guarantees | Rating category, 5.0 | ||
Credit quality information by rating category | ||
Credit quality | 2,391 | 784 |
Guarantees | Rating category, 4.5 | ||
Credit quality information by rating category | ||
Credit quality | 392 | 310 |
Guarantees | Rating category, 4.0 | ||
Credit quality information by rating category | ||
Credit quality | 3 | 312 |
Guarantees | Rating category, 2.5 | ||
Credit quality information by rating category | ||
Credit quality | 75 | |
Guarantees | Rating category, 2.0 | ||
Credit quality information by rating category | ||
Credit quality | 75 | 33 |
Guarantees | Not rated | ||
Credit quality information by rating category | ||
Credit quality | 2,133 | 2,324 |
Loan commitments | Internal credit grades | ||
Credit quality information by rating category | ||
Credit quality | 15,171 | 13,912 |
Loan commitments | Rating category, 8.5 | ||
Credit quality information by rating category | ||
Credit quality | 7 | 31 |
Loan commitments | Rating category, 8.0 | ||
Credit quality information by rating category | ||
Credit quality | 491 | 582 |
Loan commitments | Rating category, 7.5 | ||
Credit quality information by rating category | ||
Credit quality | 501 | 124 |
Loan commitments | Rating category, 7.0 | ||
Credit quality information by rating category | ||
Credit quality | 597 | 726 |
Loan commitments | Rating category, 6.5 | ||
Credit quality information by rating category | ||
Credit quality | 253 | 210 |
Loan commitments | Rating category, 6.0 | ||
Credit quality information by rating category | ||
Credit quality | 2,137 | 2,922 |
Loan commitments | Rating category, 5.5 | ||
Credit quality information by rating category | ||
Credit quality | 5,728 | 4,560 |
Loan commitments | Rating category, 5.0 | ||
Credit quality information by rating category | ||
Credit quality | 4,210 | 3,978 |
Loan commitments | Rating category, 4.5 | ||
Credit quality information by rating category | ||
Credit quality | 862 | 639 |
Loan commitments | Rating category, 4.0 | ||
Credit quality information by rating category | ||
Credit quality | 86 | 9 |
Loan commitments | Rating category, 3.5 | ||
Credit quality information by rating category | ||
Credit quality | 25 | 20 |
Loan commitments | Rating category, 2.0 | ||
Credit quality information by rating category | ||
Credit quality | 78 | |
Loan commitments | Not rated | ||
Credit quality information by rating category | ||
Credit quality | $ 196 | $ 111 |
Loans and advances to custom156
Loans and advances to customers - External rating (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
External credit grades | ||
Credit grades | ||
Credit quality | $ 352,956 | $ 337,756 |
A1 | ||
Credit grades | ||
Credit quality | 162,800 | 144,217 |
A2 | ||
Credit grades | ||
Credit quality | 41,115 | 45,166 |
B1 | ||
Credit grades | ||
Credit quality | 31,842 | 29,666 |
B2 | ||
Credit grades | ||
Credit quality | 22,333 | 43,304 |
B3 | ||
Credit grades | ||
Credit quality | 18,771 | 17,936 |
C1 | ||
Credit grades | ||
Credit quality | 33,967 | 15,308 |
C2 | ||
Credit grades | ||
Credit quality | 16,766 | 15,995 |
D | ||
Credit grades | ||
Credit quality | 11,914 | 14,096 |
E | ||
Credit grades | ||
Credit quality | 8,855 | 7,142 |
Not rated | ||
Credit grades | ||
Credit quality | 4,593 | 4,926 |
Loans and advances to customers | External credit grades | ||
Credit grades | ||
Credit quality | 314,232 | 301,188 |
Loans and advances to customers | A-1 | ||
Credit grades | ||
Credit quality | 155,250 | 136,126 |
Loans and advances to customers | A-2 | ||
Credit grades | ||
Credit quality | 35,615 | 40,559 |
Loans and advances to customers | B-1 | ||
Credit grades | ||
Credit quality | 25,899 | 24,377 |
Loans and advances to customers | B-2 | ||
Credit grades | ||
Credit quality | 18,431 | 39,802 |
Loans and advances to customers | B-3 | ||
Credit grades | ||
Credit quality | 15,622 | 15,144 |
Loans and advances to customers | C-1 | ||
Credit grades | ||
Credit quality | 29,594 | 11,277 |
Loans and advances to customers | C-2 | ||
Credit grades | ||
Credit quality | 12,498 | 11,966 |
Loans and advances to customers | D | ||
Credit grades | ||
Credit quality | 10,218 | 12,338 |
Loans and advances to customers | E | ||
Credit grades | ||
Credit quality | 6,512 | 4,814 |
Loans and advances to customers | Not rated | ||
Credit grades | ||
Credit quality | 4,593 | 4,785 |
Commercial loans (SMEs) | External credit grades | ||
Credit grades | ||
Credit quality | 72,279 | 67,895 |
Commercial loans (SMEs) | A-1 | ||
Credit grades | ||
Credit quality | 47,231 | 41,133 |
Commercial loans (SMEs) | A-2 | ||
Credit grades | ||
Credit quality | 11,515 | 12,018 |
Commercial loans (SMEs) | B-1 | ||
Credit grades | ||
Credit quality | 1,899 | 1,913 |
Commercial loans (SMEs) | B-2 | ||
Credit grades | ||
Credit quality | 1,946 | 3,506 |
Commercial loans (SMEs) | B-3 | ||
Credit grades | ||
Credit quality | 4,656 | 4,650 |
Commercial loans (SMEs) | C-1 | ||
Credit grades | ||
Credit quality | 1,683 | 1,360 |
Commercial loans (SMEs) | C-2 | ||
Credit grades | ||
Credit quality | 874 | 756 |
Commercial loans (SMEs) | D | ||
Credit grades | ||
Credit quality | 1,968 | 2,065 |
Commercial loans (SMEs) | E | ||
Credit grades | ||
Credit quality | 507 | 101 |
Commercial loans (SMEs) | Not rated | ||
Credit grades | ||
Credit quality | 393 | |
Mortgages | External credit grades | ||
Credit grades | ||
Credit quality | 134,197 | 132,414 |
Mortgages | A-1 | ||
Credit grades | ||
Credit quality | 98,015 | 89,712 |
Mortgages | A-2 | ||
Credit grades | ||
Credit quality | 2,999 | 11,318 |
Mortgages | B-1 | ||
Credit grades | ||
Credit quality | 1,174 | 2,979 |
Mortgages | B-2 | ||
Credit grades | ||
Credit quality | 1,634 | 14,404 |
Mortgages | B-3 | ||
Credit grades | ||
Credit quality | 846 | 1,800 |
Mortgages | C-1 | ||
Credit grades | ||
Credit quality | 17,535 | 2,163 |
Mortgages | C-2 | ||
Credit grades | ||
Credit quality | 3,919 | 1,763 |
Mortgages | D | ||
Credit grades | ||
Credit quality | 3,153 | 3,817 |
Mortgages | E | ||
Credit grades | ||
Credit quality | 1,218 | 880 |
Mortgages | Not rated | ||
Credit grades | ||
Credit quality | 3,704 | 3,578 |
Installment loans to individuals - Revolving consumer credit cards loans | External credit grades | ||
Credit grades | ||
Credit quality | 54,373 | 51,537 |
Installment loans to individuals - Revolving consumer credit cards loans | A-1 | ||
Credit grades | ||
Credit quality | 2,995 | 2,855 |
Installment loans to individuals - Revolving consumer credit cards loans | A-2 | ||
Credit grades | ||
Credit quality | 13,789 | 11,997 |
Installment loans to individuals - Revolving consumer credit cards loans | B-1 | ||
Credit grades | ||
Credit quality | 12,848 | 12,304 |
Installment loans to individuals - Revolving consumer credit cards loans | B-2 | ||
Credit grades | ||
Credit quality | 6,181 | 5,835 |
Installment loans to individuals - Revolving consumer credit cards loans | B-3 | ||
Credit grades | ||
Credit quality | 3,543 | 3,329 |
Installment loans to individuals - Revolving consumer credit cards loans | C-1 | ||
Credit grades | ||
Credit quality | 4,961 | 4,804 |
Installment loans to individuals - Revolving consumer credit cards loans | C-2 | ||
Credit grades | ||
Credit quality | 4,829 | 4,617 |
Installment loans to individuals - Revolving consumer credit cards loans | D | ||
Credit grades | ||
Credit quality | 3,830 | 4,499 |
Installment loans to individuals - Revolving consumer credit cards loans | E | ||
Credit grades | ||
Credit quality | 1,397 | 1,297 |
Installment loans to individuals - Non-revolving consumer loans | External credit grades | ||
Credit grades | ||
Credit quality | 53,383 | 49,342 |
Installment loans to individuals - Non-revolving consumer loans | A-1 | ||
Credit grades | ||
Credit quality | 7,009 | 2,426 |
Installment loans to individuals - Non-revolving consumer loans | A-2 | ||
Credit grades | ||
Credit quality | 7,312 | 5,226 |
Installment loans to individuals - Non-revolving consumer loans | B-1 | ||
Credit grades | ||
Credit quality | 9,978 | 7,181 |
Installment loans to individuals - Non-revolving consumer loans | B-2 | ||
Credit grades | ||
Credit quality | 8,670 | 16,057 |
Installment loans to individuals - Non-revolving consumer loans | B-3 | ||
Credit grades | ||
Credit quality | 6,577 | 5,365 |
Installment loans to individuals - Non-revolving consumer loans | C-1 | ||
Credit grades | ||
Credit quality | 5,415 | 2,950 |
Installment loans to individuals - Non-revolving consumer loans | C-2 | ||
Credit grades | ||
Credit quality | 2,876 | 4,830 |
Installment loans to individuals - Non-revolving consumer loans | D | ||
Credit grades | ||
Credit quality | 1,267 | 1,957 |
Installment loans to individuals - Non-revolving consumer loans | E | ||
Credit grades | ||
Credit quality | 3,390 | 2,536 |
Installment loans to individuals - Non-revolving consumer loans | Not rated | ||
Credit grades | ||
Credit quality | 889 | 814 |
Financial instruments not recognized on consolidated balance sheet | External credit grades | ||
Credit grades | ||
Credit quality | 38,724 | 36,568 |
Financial instruments not recognized on consolidated balance sheet | A-1 | ||
Credit grades | ||
Credit quality | 7,550 | 8,091 |
Financial instruments not recognized on consolidated balance sheet | A-2 | ||
Credit grades | ||
Credit quality | 5,500 | 4,607 |
Financial instruments not recognized on consolidated balance sheet | B-1 | ||
Credit grades | ||
Credit quality | 5,943 | 5,289 |
Financial instruments not recognized on consolidated balance sheet | B-2 | ||
Credit grades | ||
Credit quality | 3,902 | 3,502 |
Financial instruments not recognized on consolidated balance sheet | B-3 | ||
Credit grades | ||
Credit quality | 3,149 | 2,792 |
Financial instruments not recognized on consolidated balance sheet | C-1 | ||
Credit grades | ||
Credit quality | 4,373 | 4,031 |
Financial instruments not recognized on consolidated balance sheet | C-2 | ||
Credit grades | ||
Credit quality | 4,268 | 4,029 |
Financial instruments not recognized on consolidated balance sheet | D | ||
Credit grades | ||
Credit quality | 1,696 | 1,758 |
Financial instruments not recognized on consolidated balance sheet | E | ||
Credit grades | ||
Credit quality | 2,343 | 2,328 |
Financial instruments not recognized on consolidated balance sheet | Not rated | ||
Credit grades | ||
Credit quality | 141 | |
Available lines of credit cards and non-revolving consumer loans | External credit grades | ||
Credit grades | ||
Credit quality | 38,292 | 36,256 |
Available lines of credit cards and non-revolving consumer loans | A-1 | ||
Credit grades | ||
Credit quality | 7,118 | 7,779 |
Available lines of credit cards and non-revolving consumer loans | A-2 | ||
Credit grades | ||
Credit quality | 5,500 | 4,607 |
Available lines of credit cards and non-revolving consumer loans | B-1 | ||
Credit grades | ||
Credit quality | 5,943 | 5,289 |
Available lines of credit cards and non-revolving consumer loans | B-2 | ||
Credit grades | ||
Credit quality | 3,902 | 3,502 |
Available lines of credit cards and non-revolving consumer loans | B-3 | ||
Credit grades | ||
Credit quality | 3,149 | 2,792 |
Available lines of credit cards and non-revolving consumer loans | C-1 | ||
Credit grades | ||
Credit quality | 4,373 | 4,031 |
Available lines of credit cards and non-revolving consumer loans | C-2 | ||
Credit grades | ||
Credit quality | 4,268 | 4,029 |
Available lines of credit cards and non-revolving consumer loans | D | ||
Credit grades | ||
Credit quality | 1,696 | 1,758 |
Available lines of credit cards and non-revolving consumer loans | E | ||
Credit grades | ||
Credit quality | 2,343 | 2,328 |
Available lines of credit cards and non-revolving consumer loans | Not rated | ||
Credit grades | ||
Credit quality | 141 | |
Guarantees | External credit grades | ||
Credit grades | ||
Credit quality | 282 | 132 |
Guarantees | A-1 | ||
Credit grades | ||
Credit quality | 282 | 132 |
Loan commitments | External credit grades | ||
Credit grades | ||
Credit quality | 150 | 180 |
Loan commitments | A-1 | ||
Credit grades | ||
Credit quality | $ 150 | $ 180 |
Loans and advances to custom157
Loans and advances to customers - Past due but not impaired (Details) - Loans past due but not impaired - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets past due but not impaired | ||
Loans and advances to customers | $ 301,075 | $ 288,802 |
Current | ||
Financial assets past due but not impaired | ||
Loans and advances to customers | 281,832 | 271,017 |
1 to 30 Days | ||
Financial assets past due but not impaired | ||
Loans and advances to customers | 8,800 | 9,140 |
31 to 60 Days | ||
Financial assets past due but not impaired | ||
Loans and advances to customers | 6,514 | 5,748 |
61 to 90 Days | ||
Financial assets past due but not impaired | ||
Loans and advances to customers | 3,929 | 2,897 |
Commercial loans (SMEs) | ||
Financial assets past due but not impaired | ||
Loans and advances to customers | 71,251 | 66,262 |
Commercial loans (SMEs) | Current | ||
Financial assets past due but not impaired | ||
Loans and advances to customers | 68,157 | 63,248 |
Commercial loans (SMEs) | 1 to 30 Days | ||
Financial assets past due but not impaired | ||
Loans and advances to customers | 1,590 | 1,725 |
Commercial loans (SMEs) | 31 to 60 Days | ||
Financial assets past due but not impaired | ||
Loans and advances to customers | 771 | 756 |
Commercial loans (SMEs) | 61 to 90 Days | ||
Financial assets past due but not impaired | ||
Loans and advances to customers | 733 | 533 |
Mortgages | ||
Financial assets past due but not impaired | ||
Loans and advances to customers | 126,835 | 125,636 |
Mortgages | Current | ||
Financial assets past due but not impaired | ||
Loans and advances to customers | 116,293 | 116,170 |
Mortgages | 1 to 30 Days | ||
Financial assets past due but not impaired | ||
Loans and advances to customers | 4,545 | 4,535 |
Mortgages | 31 to 60 Days | ||
Financial assets past due but not impaired | ||
Loans and advances to customers | 4,205 | 3,636 |
Mortgages | 61 to 90 Days | ||
Financial assets past due but not impaired | ||
Loans and advances to customers | 1,792 | 1,295 |
Installment loans to individuals - Revolving consumer credit cards loans | ||
Financial assets past due but not impaired | ||
Loans and advances to customers | 52,037 | 49,585 |
Installment loans to individuals - Revolving consumer credit cards loans | Current | ||
Financial assets past due but not impaired | ||
Loans and advances to customers | 49,253 | 47,170 |
Installment loans to individuals - Revolving consumer credit cards loans | 1 to 30 Days | ||
Financial assets past due but not impaired | ||
Loans and advances to customers | 1,145 | 1,061 |
Installment loans to individuals - Revolving consumer credit cards loans | 31 to 60 Days | ||
Financial assets past due but not impaired | ||
Loans and advances to customers | 851 | 760 |
Installment loans to individuals - Revolving consumer credit cards loans | 61 to 90 Days | ||
Financial assets past due but not impaired | ||
Loans and advances to customers | 788 | 594 |
Installment loans to individuals - Non-revolving consumer loans | ||
Financial assets past due but not impaired | ||
Loans and advances to customers | 50,952 | 47,319 |
Installment loans to individuals - Non-revolving consumer loans | Current | ||
Financial assets past due but not impaired | ||
Loans and advances to customers | 48,129 | 44,429 |
Installment loans to individuals - Non-revolving consumer loans | 1 to 30 Days | ||
Financial assets past due but not impaired | ||
Loans and advances to customers | 1,520 | 1,819 |
Installment loans to individuals - Non-revolving consumer loans | 31 to 60 Days | ||
Financial assets past due but not impaired | ||
Loans and advances to customers | 687 | 596 |
Installment loans to individuals - Non-revolving consumer loans | 61 to 90 Days | ||
Financial assets past due but not impaired | ||
Loans and advances to customers | $ 616 | $ 475 |
Loans and advances to custom158
Loans and advances to customers - Securitization (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Securitized loans | ||
Financial instruments | ||
Loans and advances to customers | $ 162 | $ 237 |
Hedging derivatives - By type (
Hedging derivatives - By type (Details) $ in Millions, in Millions | Dec. 31, 2017MXV ( ) | Dec. 31, 2017MXN ($) | Dec. 31, 2016MXV ( ) | Dec. 31, 2016MXN ($) |
Hedging derivatives | ||||
Fair value of hedging derivative assets | 15,116 | $ 15,116 | 15,003 | $ 15,003 |
Hedging derivatives | 11,091 | 11,091 | 14,287 | 14,287 |
Fair value hedges | ||||
Hedging derivatives | ||||
Fair value of hedging derivative assets | 59 | 93 | ||
Hedging derivatives | 6,572 | 3,727 | ||
Cash flow hedges | ||||
Hedging derivatives | ||||
Fair value of hedging derivative assets | 15,057 | 14,910 | ||
Hedging derivatives | $ 4,519 | $ 10,560 |
Hedging derivatives - Fair valu
Hedging derivatives - Fair value hedges (Details) € in Millions, £ in Millions, $ in Millions, $ in Millions, in Millions | 12 Months Ended | ||||||||||||
Dec. 31, 2017MXN ($) | Dec. 31, 2016MXN ($) | Dec. 31, 2015MXN ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2017EUR (€) | Dec. 31, 2017MXV ( ) | Dec. 31, 2017USD ($) | Dec. 31, 2017MXN ($) | Dec. 31, 2016GBP (£) | Dec. 31, 2016EUR (€) | Dec. 31, 2016MXV ( ) | Dec. 31, 2016USD ($) | Dec. 31, 2016MXN ($) | |
Hedging derivatives | |||||||||||||
Gains/(losses) on financial assets and liabilities (net) - derivative financial instrument for fair value hedging | $ (117) | $ (363) | $ 23 | ||||||||||
Gains/(losses) on financial assets and liabilities (net) - hedged items for fair value hedging | $ 341 | $ 375 | $ (105) | ||||||||||
Fair value hedges | Interest rate risk | Loans and receivables | Mexican peso | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | $ 1,785 | $ 2,863 | |||||||||||
Fair value hedges | Interest rate risk | Loans and receivables | USD | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | $ 18 | 354 | $ 78 | 1,618 | |||||||||
Fair value hedges | Interest rate and foreign exchange risk | Loans and receivables | USD | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | 4 | 52 | 8 | 99 | |||||||||
Fair value hedges | Interest rate and foreign exchange risk | UMS | USD | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | 67 | 1,275 | 50 | 950 | |||||||||
Fair value hedges | Interest rate and foreign exchange risk | UMS | Euro | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | € 840 | 17,598 | € 470 | 9,614 | |||||||||
Fair value hedges | Interest rate and foreign exchange risk | UMS | Pound sterling | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | £ 3 | 73 | |||||||||||
Fair value hedges | Interest rate and foreign exchange risk | PEMEX Bonds | USD | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | $ 86 | 1,118 | |||||||||||
Fair value hedges | Interest rate and foreign exchange risk | PEMEX Bonds | Euro | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | € 15 | 251 | € 15 | 251 | |||||||||
Fair value hedges | Interest rate and foreign exchange risk | PEMEX Bonds | Pound sterling | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | £ 30 | 602 | |||||||||||
Fair value hedges | Interest rate and foreign exchange risk | PEMEX Bonds, One | Pound sterling | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | £ 30 | 602 | |||||||||||
Fair value hedges | Interest rate and foreign exchange risk | PEMEX Bonds, Two | USD | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | $ 76 | 969 | |||||||||||
Fair value hedges | Interest rate and inflation risk | UDIBONDS | UDIS | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | 825 | $ 3,860 | 825 | $ 3,860 |
Hedging derivatives - Cash flow
Hedging derivatives - Cash flow hedges (Details) € in Millions, £ in Millions, R$ in Millions, $ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||||||||||||||
Apr. 30, 2015MXN ($) | Jun. 30, 2014MXN ($) | Dec. 31, 2017MXN ($) | Dec. 31, 2016MXN ($) | Dec. 31, 2015MXN ($) | Dec. 31, 2017BRL (R$) | Dec. 31, 2017GBP (£) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2017MXN ($) | Nov. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016GBP (£) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2016MXN ($) | Apr. 30, 2015USD ($) | |
Hedging derivatives | |||||||||||||||||
Valuation adjustments | $ (1,585) | $ (1,095) | $ (612) | ||||||||||||||
Other comprehensive income under Valuation adjustments - Cash flow hedges | $ 54 | $ 86 | |||||||||||||||
Cash flow hedges | |||||||||||||||||
Hedging derivatives | |||||||||||||||||
Valuation adjustments | $ (1,585) | $ (1,095) | $ (612) | ||||||||||||||
Other comprehensive income under Valuation adjustments - Cash flow hedges | 54 | 86 | |||||||||||||||
Cash flow hedges | Loans and receivables | |||||||||||||||||
Hedging derivatives | |||||||||||||||||
Discontinued hedge | $ 37 | ||||||||||||||||
Cash flow hedges | Senior Unsecured Notes | |||||||||||||||||
Hedging derivatives | |||||||||||||||||
Nominal Value | $ 318 | ||||||||||||||||
Valuation adjustments | $ 64 | ||||||||||||||||
Cash flow hedges | Tier II Subordinated Capital Notes | |||||||||||||||||
Hedging derivatives | |||||||||||||||||
Nominal Value | $ 200 | ||||||||||||||||
Valuation adjustments | $ 44 | ||||||||||||||||
Cash flow hedges | UMS | |||||||||||||||||
Hedging derivatives | |||||||||||||||||
Discontinued hedge | $ 10 | ||||||||||||||||
Cash flow hedges | Central Bank compulsory deposits | |||||||||||||||||
Hedging derivatives | |||||||||||||||||
Nominal Value | $ 500 | ||||||||||||||||
Valuation adjustments | $ 12 | ||||||||||||||||
Cash flow hedges | Interest rate risk | BPAGs Bonds | Mexican peso | |||||||||||||||||
Hedging derivatives | |||||||||||||||||
Nominal Value | 700 | 2,050 | |||||||||||||||
Cash flow hedges | Interest rate risk | Unsecured bonds | Mexican peso | |||||||||||||||||
Hedging derivatives | |||||||||||||||||
Nominal Value | 4,000 | ||||||||||||||||
Cash flow hedges | Currency risk - Foreign exchange risk | Loans and receivables | USD | |||||||||||||||||
Hedging derivatives | |||||||||||||||||
Nominal Value | $ 221 | 3,056 | $ 331 | 4,713 | |||||||||||||
Cash flow hedges | Currency risk - Foreign exchange risk | Loans and receivables | Euro | |||||||||||||||||
Hedging derivatives | |||||||||||||||||
Nominal Value | € 166 | 3,055 | € 261 | 4,958 | |||||||||||||
Cash flow hedges | Currency risk - Foreign exchange risk | Loans and receivables | Pound sterling | |||||||||||||||||
Hedging derivatives | |||||||||||||||||
Nominal Value | £ 34 | 778 | |||||||||||||||
Cash flow hedges | Currency risk - Foreign exchange risk | Senior Unsecured Notes | USD | |||||||||||||||||
Hedging derivatives | |||||||||||||||||
Nominal Value | 543 | 10,667 | 543 | 11,186 | |||||||||||||
Cash flow hedges | Currency risk - Foreign exchange risk | Tier II Subordinated Capital Notes | USD | |||||||||||||||||
Hedging derivatives | |||||||||||||||||
Nominal Value | 1,045 | 20,548 | 1,045 | 21,546 | |||||||||||||
Cash flow hedges | Currency risk - Foreign exchange risk | UMS | USD | |||||||||||||||||
Hedging derivatives | |||||||||||||||||
Nominal Value | 50 | 911 | 60 | 1,093 | |||||||||||||
Cash flow hedges | Currency risk - Foreign exchange risk | UMS | Euro | |||||||||||||||||
Hedging derivatives | |||||||||||||||||
Nominal Value | € 136 | 2,657 | € 136 | 2,657 | |||||||||||||
Cash flow hedges | Currency risk - Foreign exchange risk | UMS | Pound sterling | |||||||||||||||||
Hedging derivatives | |||||||||||||||||
Nominal Value | £ 10 | 260 | £ 10 | 260 | |||||||||||||
Cash flow hedges | Currency risk - Foreign exchange risk | Brazilian Government Notes | USD | |||||||||||||||||
Hedging derivatives | |||||||||||||||||
Nominal Value | $ 1,747 | 37,853 | $ 1,491 | $ 24,433 | |||||||||||||
Cash flow hedges | Currency risk - Foreign exchange risk | Brazilian Government Notes | Brazilian real | |||||||||||||||||
Hedging derivatives | |||||||||||||||||
Nominal Value | R$ 2952 | $ 15,970 |
Hedging derivatives - Reconcili
Hedging derivatives - Reconciliation of valuation adjustments (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Hedging derivatives | |||
Balance at January 1 | $ 1,383 | ||
Valuation adjustments | (1,585) | $ (1,095) | $ (612) |
Amounts reclassified to consolidated income statement | 118 | 1,785 | 1,479 |
Cash flow hedges ineffectiveness | (2) | (2) | (4) |
Income taxes | 440 | (207) | (260) |
Balance at December 31 | 356 | 1,383 | |
Cash flow hedges | |||
Hedging derivatives | |||
Balance at January 1 | 1,383 | 900 | 293 |
Valuation adjustments | (1,585) | (1,095) | (612) |
Amounts reclassified to consolidated income statement | 118 | 1,785 | 1,479 |
Income from cash flow hedging derivatives swaps and discontinued cash flow hedge accounting | 120 | 1,787 | 1,483 |
Cash flow hedges ineffectiveness | (2) | (2) | (4) |
Income taxes | 440 | (207) | (260) |
Balance at December 31 | 356 | $ 1,383 | $ 900 |
Cash flows to be received | 3,351 | ||
Cash flows to be paid | (2,843) | ||
Cash flow hedges | Less than 3 Months | |||
Hedging derivatives | |||
Cash flows to be received | 373 | ||
Cash flows to be paid | (354) | ||
Cash flow hedges | 3 to 12 months | |||
Hedging derivatives | |||
Cash flows to be received | 1,114 | ||
Cash flows to be paid | (780) | ||
Cash flow hedges | Between one and five years | |||
Hedging derivatives | |||
Cash flows to be received | 1,845 | ||
Cash flows to be paid | (1,564) | ||
Cash flow hedges | More than 5 years/2023 and thereafter | |||
Hedging derivatives | |||
Cash flows to be received | 19 | ||
Cash flows to be paid | $ (145) |
Non-current assets held for 163
Non-current assets held for sale - Breakdown (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Non-current assets held for sale. | |||
Non-current assets held for sale | $ 1,295 | $ 1,107 | $ 1,101 |
Gains/(losses) on disposal of non-current assets held for sale not classified as discontinued operations (net) | $ 69 | $ 71 | $ 91 |
Non-current assets held for 164
Non-current assets held for sale - Change in foreclosed assets (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Non-current assets held for sale. | ||
Balances at beginning of year | $ 1,107 | $ 1,101 |
Additions | 389 | 711 |
Disposals | (201) | (705) |
Balances at end of year | $ 1,295 | $ 1,107 |
Tangible assets - Changes in th
Tangible assets - Changes in the consolidated balance sheet (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in Tangible assets | ||
Balances at the beginning of the year | $ 5,692 | |
Balances at the end of the year | 6,498 | $ 5,692 |
Tangible assets pledged as security for liabilities | 0 | |
Gross carrying amount | ||
Changes in Tangible assets | ||
Balances at the beginning of the year | 11,614 | 10,632 |
Additions | 1,816 | 1,096 |
Disposals | (123) | (114) |
Balances at the end of the year | 13,307 | 11,614 |
Accumulated depreciation and amortization | ||
Changes in Tangible assets | ||
Balances at the beginning of the year | (5,922) | (5,085) |
Additions | (1,010) | (953) |
Disposals | 123 | 116 |
Balances at the end of the year | $ (6,809) | $ (5,922) |
Tangible assets - Sale of prope
Tangible assets - Sale of properties and future minimum lease payments required under operating leases (Details) $ in Millions | 3 Months Ended | |
Jun. 30, 2012periodproperty | Dec. 31, 2017MXN ($) | |
Future minimum lease payments required under the Bank's operating leases | ||
Total commitments for minimum payments under operating lease | $ 9,690 | |
2,018 | ||
Future minimum lease payments required under the Bank's operating leases | ||
Total commitments for minimum payments under operating lease | 1,669 | |
2,019 | ||
Future minimum lease payments required under the Bank's operating leases | ||
Total commitments for minimum payments under operating lease | 1,338 | |
2,020 | ||
Future minimum lease payments required under the Bank's operating leases | ||
Total commitments for minimum payments under operating lease | 1,104 | |
2,021 | ||
Future minimum lease payments required under the Bank's operating leases | ||
Total commitments for minimum payments under operating lease | 959 | |
2,022 | ||
Future minimum lease payments required under the Bank's operating leases | ||
Total commitments for minimum payments under operating lease | 794 | |
More than 5 years/2023 and thereafter | ||
Future minimum lease payments required under the Bank's operating leases | ||
Total commitments for minimum payments under operating lease | 3,826 | |
Fibra Uno | ||
Tangible assets | ||
Number of properties sold | property | 220 | |
Term of operating lease | 20 years | |
Term of renewal periods | 5 years | |
Future minimum lease payments required under the Bank's operating leases | ||
Total commitments for minimum payments under operating lease | 3,952 | |
Fibra Uno | Maximum | ||
Tangible assets | ||
Number of additional renewal periods | period | 4 | |
Fibra Uno | 2018 | ||
Future minimum lease payments required under the Bank's operating leases | ||
Total commitments for minimum payments under operating lease | 276 | |
Fibra Uno | 2019 | ||
Future minimum lease payments required under the Bank's operating leases | ||
Total commitments for minimum payments under operating lease | 276 | |
Fibra Uno | 2020 | ||
Future minimum lease payments required under the Bank's operating leases | ||
Total commitments for minimum payments under operating lease | 276 | |
Fibra Uno | 2021 | ||
Future minimum lease payments required under the Bank's operating leases | ||
Total commitments for minimum payments under operating lease | 276 | |
Fibra Uno | 2022 | ||
Future minimum lease payments required under the Bank's operating leases | ||
Total commitments for minimum payments under operating lease | 276 | |
Fibra Uno | More than 5 years/2023 and thereafter | ||
Future minimum lease payments required under the Bank's operating leases | ||
Total commitments for minimum payments under operating lease | 2,572 | |
Other Operating Leases | ||
Future minimum lease payments required under the Bank's operating leases | ||
Total commitments for minimum payments under operating lease | 5,738 | |
Other Operating Leases | 2018 | ||
Future minimum lease payments required under the Bank's operating leases | ||
Total commitments for minimum payments under operating lease | 1,393 | |
Other Operating Leases | 2019 | ||
Future minimum lease payments required under the Bank's operating leases | ||
Total commitments for minimum payments under operating lease | 1,062 | |
Other Operating Leases | 2020 | ||
Future minimum lease payments required under the Bank's operating leases | ||
Total commitments for minimum payments under operating lease | 828 | |
Other Operating Leases | 2021 | ||
Future minimum lease payments required under the Bank's operating leases | ||
Total commitments for minimum payments under operating lease | 683 | |
Other Operating Leases | 2022 | ||
Future minimum lease payments required under the Bank's operating leases | ||
Total commitments for minimum payments under operating lease | 518 | |
Other Operating Leases | More than 5 years/2023 and thereafter | ||
Future minimum lease payments required under the Bank's operating leases | ||
Total commitments for minimum payments under operating lease | $ 1,254 |
Tangible assets - Breakdown by
Tangible assets - Breakdown by asset class of Tangible assets for own use (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Tangible assets for own use | |||
Tangible assets | $ 6,498 | $ 5,692 | |
Gross carrying amount | |||
Tangible assets for own use | |||
Tangible assets | 13,307 | 11,614 | $ 10,632 |
Accumulated depreciation and amortization | |||
Tangible assets for own use | |||
Tangible assets | (6,809) | (5,922) | $ (5,085) |
Buildings | |||
Tangible assets for own use | |||
Tangible assets | 3,565 | 3,998 | |
Buildings | Gross carrying amount | |||
Tangible assets for own use | |||
Tangible assets | 8,057 | 7,900 | |
Buildings | Accumulated depreciation and amortization | |||
Tangible assets for own use | |||
Tangible assets | (4,492) | (3,902) | |
IT equipment and fixtures | |||
Tangible assets for own use | |||
Tangible assets | 1,567 | 954 | |
IT equipment and fixtures | Gross carrying amount | |||
Tangible assets for own use | |||
Tangible assets | 2,857 | 2,036 | |
IT equipment and fixtures | Accumulated depreciation and amortization | |||
Tangible assets for own use | |||
Tangible assets | (1,290) | (1,082) | |
Furniture and vehicles | |||
Tangible assets for own use | |||
Tangible assets | 643 | 630 | |
Furniture and vehicles | Gross carrying amount | |||
Tangible assets for own use | |||
Tangible assets | 1,670 | 1,568 | |
Furniture and vehicles | Accumulated depreciation and amortization | |||
Tangible assets for own use | |||
Tangible assets | (1,027) | (938) | |
Others | |||
Tangible assets for own use | |||
Tangible assets | 723 | 110 | |
Others | Gross carrying amount | |||
Tangible assets for own use | |||
Tangible assets | $ 723 | $ 110 |
Intangible assets - Goodwill -
Intangible assets - Goodwill - Breakdown based on CGUs to which Goodwill has been allocated and Changes (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill | ||
Goodwill | $ 1,734 | $ 1,734 |
Changes in goodwill | 0 | 0 |
Santander Vivienda | ||
Goodwill | ||
Goodwill | $ 1,734 | $ 1,734 |
Intangible assets - Goodwill169
Intangible assets - Goodwill - Assumptions used in the calculation of impairment (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill | |
Period of projection of cash flows | 5 years |
Merger of Santander Vivienda, Santander Hipotecario and Santander Holding Vivienda | |
Goodwill | |
Period of projection of cash flows | 5 years |
Discount rate (as a percent) | 9.22% |
Cost of Equity (as a percent) | 17.40% |
Cost of Debt (as a percent) | 6.80% |
Equity Structure, Equity (as a percent) | 23.00% |
Equity Structure, Debt (as a percent) | 77.00% |
Nominal perpetual growth rate (as a percent) | 0.00% |
Risk free rate (as a percent) | 7.22% |
Beta | 1.27 |
Equity Risk Premium (as a percent) | 8.00% |
Intangible assets - Other in170
Intangible assets - Other intangible assets - Changes (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in Other intangible assets | ||
Balances at beginning of the year | $ 4,038 | |
Balances at end of the year | 5,226 | $ 4,038 |
Gross carrying amount | ||
Changes in Other intangible assets | ||
Balances at beginning of the year | 8,219 | 6,248 |
Additions | 2,712 | 2,001 |
Disposals | (142) | (30) |
Balances at end of the year | 10,789 | 8,219 |
Accumulated depreciation, amortisation and impairment | ||
Changes in Other intangible assets | ||
Balances at beginning of the year | (4,181) | (3,105) |
Additions | (1,523) | (1,105) |
Disposals | 141 | 29 |
Balances at end of the year | $ (5,563) | $ (4,181) |
Intangible assets - Other in171
Intangible assets - Other intangible assets - Breakdown (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Intangible assets - Other intangible assets | |||
Other intangible assets | $ 5,226 | $ 4,038 | |
Intangible assets with restricted title or pledged as security for liabilities | 0 | 0 | |
Gross carrying amount | |||
Intangible assets - Other intangible assets | |||
Other intangible assets | 10,789 | 8,219 | $ 6,248 |
Accumulated depreciation and amortization | |||
Intangible assets - Other intangible assets | |||
Other intangible assets | $ (5,563) | $ (4,181) | |
IT developments | |||
Intangible assets - Other intangible assets | |||
Estimated useful life | 3 years | 3 years | |
Other intangible assets | $ 5,154 | $ 3,957 | |
IT developments | Gross carrying amount | |||
Intangible assets - Other intangible assets | |||
Other intangible assets | 10,702 | 8,132 | |
IT developments | Accumulated depreciation and amortization | |||
Intangible assets - Other intangible assets | |||
Other intangible assets | $ (5,548) | $ (4,175) | |
Other intangibles | |||
Intangible assets - Other intangible assets | |||
Estimated useful life | 10 years | 10 years | |
Other intangible assets | $ 72 | $ 81 | |
Other intangibles | Gross carrying amount | |||
Intangible assets - Other intangible assets | |||
Other intangible assets | 87 | 87 | |
Other intangibles | Accumulated depreciation and amortization | |||
Intangible assets - Other intangible assets | |||
Other intangible assets | $ (15) | $ (6) |
Other assets (Details)
Other assets (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other assets | ||
Credit card operating balances | $ 1,597 | $ 1,297 |
Insurance commission receivables | 1,053 | 976 |
Prepayments | 793 | 660 |
Other | 5,666 | 3,402 |
Other assets, Total | $ 9,109 | $ 6,335 |
Deposits from the Central Ba173
Deposits from the Central Bank and Deposits from credit institutions - Classification (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deposits | ||
Other financial liabilities at fair value through profit or loss | $ 120,653 | $ 136,860 |
Financial liabilities at amortized cost | 820,431 | 806,091 |
Total financial liabilities | 1,191,900 | 1,224,066 |
Deposits from the Central Bank and credit institutions | ||
Deposits | ||
Other financial liabilities at fair value through profit or loss | 28,359 | 40,634 |
Financial liabilities at amortized cost | 76,515 | 99,322 |
Total financial liabilities | $ 104,874 | $ 139,956 |
Deposits from the Central Ba174
Deposits from the Central Bank and Deposits from credit institutions - By type and currency (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Type: | ||
Financial instruments received as collateral | $ 55,483 | $ 47,578 |
Cash collateral received | 45,024 | 3,182 |
Total financial liabilities | 1,191,900 | 1,224,066 |
Deposits from the Central Bank and credit institutions | ||
Type: | ||
Reciprocal accounts | 2,316 | 2,621 |
Time deposits | 4,506 | 31,545 |
Overnight deposits | 13,688 | 7,689 |
Repurchase agreements | 28,359 | 40,634 |
Other accounts | 55,848 | 57,397 |
Cash collateral received | 31,157 | 33,474 |
Others | 24,691 | 23,923 |
Accrued interest | 157 | 70 |
Total financial liabilities | 104,874 | 139,956 |
Mexican peso | Deposits from the Central Bank and credit institutions | ||
Type: | ||
Total financial liabilities | 100,347 | 101,843 |
USD | Deposits from the Central Bank and credit institutions | ||
Type: | ||
Total financial liabilities | 4,470 | $ 38,113 |
Other currencies | Deposits from the Central Bank and credit institutions | ||
Type: | ||
Total financial liabilities | $ 57 |
Customer deposits - Classificat
Customer deposits - Classification (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Customer deposits | ||
Other financial liabilities at fair value through profit or loss | $ 120,653 | $ 136,860 |
Financial liabilities at amortized cost | 820,431 | 806,091 |
Total financial liabilities | 1,191,900 | 1,224,066 |
Deposits | ||
Customer deposits | ||
Financial liabilities at amortized cost | 608,776 | 572,005 |
Deposits - Customers | ||
Customer deposits | ||
Other financial liabilities at fair value through profit or loss | 81,790 | 83,891 |
Financial liabilities at amortized cost | 608,776 | 572,005 |
Total financial liabilities | $ 690,566 | $ 655,896 |
Customer deposits - By type and
Customer deposits - By type and currency (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Demand deposits | ||
Cash collateral received | $ 45,024 | $ 3,182 |
Time deposits: | ||
Total financial liabilities | 1,191,900 | 1,224,066 |
Deposits - Customers | ||
Type: | ||
Repurchase agreements | 81,790 | 83,891 |
Demand deposits | ||
Current accounts | 422,028 | 403,323 |
Other deposits | 26,230 | 27,696 |
Cash collateral received | 13,867 | 14,347 |
Others | 12,363 | 13,349 |
Time deposits: | ||
Fixed-term deposits | 159,464 | 140,408 |
Accrued interest | 1,054 | 578 |
Total financial liabilities | 690,566 | 655,896 |
Deposits - Customers | Mexican peso | ||
Time deposits: | ||
Total financial liabilities | 584,637 | 539,190 |
Deposits - Customers | USD | ||
Time deposits: | ||
Total financial liabilities | 105,929 | 116,706 |
Financial instrument in connection with OTC derivative transactions | Deposits | ||
Demand deposits | ||
Cash collateral received | 45,024 | 47,821 |
Financial instrument in connection with OTC derivative transactions | Deposits - Customers | ||
Demand deposits | ||
Cash collateral received | $ 13,867 | 14,347 |
Financial instruments in connection with derivative transactions in organized markets | Deposits - Customers | ||
Demand deposits | ||
Cash collateral received | $ 109 |
Marketable debt securities - Br
Marketable debt securities - Breakdown (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Marketable debt securities | ||
Financial liabilities designated at fair value through profit or loss | $ 120,653 | $ 136,860 |
Financial liabilities at amortized cost | 820,431 | 806,091 |
Total financial liabilities | 1,191,900 | 1,224,066 |
Marketable debt securities | ||
Marketable debt securities | ||
Financial liabilities designated at fair value through profit or loss | 10,504 | 12,335 |
Financial liabilities at amortized cost | 85,792 | 77,668 |
Total financial liabilities | 96,296 | 90,003 |
Marketable debt securities | Mexican peso | ||
Marketable debt securities | ||
Total financial liabilities | 68,788 | 67,061 |
Marketable debt securities | USD | ||
Marketable debt securities | ||
Total financial liabilities | 27,508 | 22,942 |
Certificates of deposit (unsecured) | ||
Marketable debt securities | ||
Total financial liabilities | 27,467 | 25,944 |
Senior Unsecured Notes | ||
Marketable debt securities | ||
Total financial liabilities | 19,558 | 20,462 |
Structured bank bonds | ||
Marketable debt securities | ||
Total financial liabilities | 10,748 | 12,542 |
Promissory notes | ||
Marketable debt securities | ||
Total financial liabilities | 23,577 | 16,101 |
Unsecured bonds | ||
Marketable debt securities | ||
Total financial liabilities | 14,798 | 14,785 |
Mortgage-backed bonds | ||
Marketable debt securities | ||
Total financial liabilities | $ 148 | $ 169 |
Marketable debt securities - Ch
Marketable debt securities - Changes in financial liabilities at fair value (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | $ 1,224,066 | |
Financial liabilities at end of period | 1,191,900 | $ 1,224,066 |
Marketable debt securities | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 90,003 | |
Financial liabilities at end of period | 96,296 | 90,003 |
Marketable debt securities | Financial liabilities designated at fair value through profit or loss | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 12,335 | 12,623 |
Issues | 2,299 | 1,924 |
Redemptions | (4,590) | (2,218) |
Changes in fair value recognized in profit or loss | 460 | 6 |
Financial liabilities at end of period | 10,504 | 12,335 |
Structured bank bonds | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 12,542 | |
Financial liabilities at end of period | 10,748 | 12,542 |
Structured bank bonds | Financial liabilities designated at fair value through profit or loss | ||
Changes in financial instruments, Liabilities | ||
Issues | 2,299 | 1,924 |
Redemptions | (4,590) | (2,218) |
Banco Santander Mexico, S.A. | Marketable debt securities | Financial liabilities designated at fair value through profit or loss | ||
Changes in financial instruments, Liabilities | ||
Issues | 2,299 | 1,924 |
Redemptions | $ (4,590) | $ (2,218) |
Marketable debt securities -179
Marketable debt securities - Changes in financial liabilities at amortized cost (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | $ 1,224,066 | |
Financial liabilities at end of period | 1,191,900 | $ 1,224,066 |
Marketable debt securities | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 90,003 | |
Financial liabilities at end of period | 96,296 | 90,003 |
Marketable debt securities | Financial liabilities at amortized cost | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 77,668 | 74,826 |
Issues | 2,251,910 | 2,738,139 |
Redemptions | (2,243,323) | (2,738,883) |
Accrued interest | 292 | 69 |
Effect of changes in foreign exchange rates | (755) | 3,517 |
Financial liabilities at end of period | 85,792 | 77,668 |
Certificates of deposit (unsecured) | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 25,944 | |
Financial liabilities at end of period | 27,467 | 25,944 |
Certificates of deposit (unsecured) | Financial liabilities at amortized cost | ||
Changes in financial instruments, Liabilities | ||
Issues | 70,705 | 56,431 |
Redemptions | (69,455) | (53,705) |
Structured bank bonds | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 12,542 | |
Financial liabilities at end of period | 10,748 | 12,542 |
Structured bank bonds | Financial liabilities at amortized cost | ||
Changes in financial instruments, Liabilities | ||
Issues | 6,238 | 15,006 |
Redemptions | (6,190) | (15,398) |
Promissory notes | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 16,101 | |
Financial liabilities at end of period | 23,577 | 16,101 |
Promissory notes | Financial liabilities at amortized cost | ||
Changes in financial instruments, Liabilities | ||
Issues | 2,174,967 | 2,656,702 |
Redemptions | (2,167,658) | (2,664,673) |
Unsecured bonds | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 14,785 | |
Financial liabilities at end of period | 14,798 | 14,785 |
Unsecured bonds | Financial liabilities at amortized cost | ||
Changes in financial instruments, Liabilities | ||
Issues | 10,000 | |
Redemptions | (20) | (5,107) |
Banco Santander Mexico, S.A. | Marketable debt securities | Financial liabilities at amortized cost | ||
Changes in financial instruments, Liabilities | ||
Issues | 2,251,910 | 2,738,139 |
Redemptions | (2,243,303) | (2,738,856) |
Santander Vivienda, S.A. de C.V. | Marketable debt securities | Financial liabilities at amortized cost | ||
Changes in financial instruments, Liabilities | ||
Redemptions | $ (20) | $ (27) |
Marketable debt securities - Ot
Marketable debt securities - Other disclosures (Details) - Marketable debt securities - Maximum - USD ($) | 1 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2011 | Apr. 30, 2007 | |
Financial liabilities | |||
Authorized issuances | $ 6,500,000,000 | $ 4,000,000,000 | |
Authorized issuance period | 15 years | 30 years |
Marketable debt securities - Ce
Marketable debt securities - Certificates of deposit (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial liabilities | ||
Financial liabilities | $ 27,350 | |
Total financial liabilities | 1,191,900 | $ 1,224,066 |
Marketable debt securities | ||
Financial liabilities | ||
Total financial liabilities | $ 96,296 | 90,003 |
Rate (as a percent) | 7.25% | |
Certificates of deposit (unsecured) | ||
Financial liabilities | ||
Financial liabilities | 25,886 | |
Accrued interest | $ 117 | 58 |
Total financial liabilities | 27,467 | 25,944 |
Certificate of deposit December 28, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 36 | |
Rate (as a percent) | 7.42% | |
Certificate of deposit December 27, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 11 | |
Rate (as a percent) | 7.43% | |
Certificate of deposit December 26, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 23 | |
Rate (as a percent) | 7.42% | |
Certificate of deposit December 24, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 28 | |
Rate (as a percent) | 7.42% | |
Certificate of deposit December 21, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 40 | |
Rate (as a percent) | 7.42% | |
Certificate of deposit December 20, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 28 | |
Rate (as a percent) | 7.41% | |
Certificate of deposit December 19, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 13 | |
Rate (as a percent) | 7.41% | |
Certificate of deposit December 18, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 13 | |
Rate (as a percent) | 7.40% | |
Certificate of deposit December 17, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 24 | |
Rate (as a percent) | 7.40% | |
Certificate of deposit December 14, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 28 | |
Rate (as a percent) | 7.26% | |
Certificate of deposit December 13, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 29 | |
Rate (as a percent) | 7.25% | |
Certificate of deposit December 11, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 31 | |
Rate (as a percent) | 7.23% | |
Certificate of deposit December 10, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 18 | |
Rate (as a percent) | 7.20% | |
Certificate of deposit December 7, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 20 | |
Rate (as a percent) | 7.19% | |
Certificate of deposit December 6, 2018 - One | ||
Financial liabilities | ||
Financial liabilities | $ 27 | |
Rate (as a percent) | 7.19% | |
Certificate of deposit December 5, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 19 | |
Rate (as a percent) | 7.19% | |
Certificate of deposit December 4, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 11 | |
Rate (as a percent) | 7.19% | |
Certificate of deposit December 3, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 8 | |
Rate (as a percent) | 7.19% | |
Certificate of deposit November 30, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 16 | |
Rate (as a percent) | 7.42% | |
Certificate of deposit December 6, 2018 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 1,200 | |
Rate (as a percent) | 7.42% | |
Certificate of deposit November 29, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 11 | |
Rate (as a percent) | 7.43% | |
Certificate of deposit November 28, 2018 - One | ||
Financial liabilities | ||
Financial liabilities | $ 600 | |
Rate (as a percent) | 7.66% | |
Certificate of deposit November 28, 2018 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 4 | |
Rate (as a percent) | 7.42% | |
Certificate of deposit November 28, 2018 - Three | ||
Financial liabilities | ||
Financial liabilities | $ 300 | |
Rate (as a percent) | 7.66% | |
Certificate of deposit November 27, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 6 | |
Rate (as a percent) | 7.42% | |
Certificate of deposit November 26, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 4 | |
Rate (as a percent) | 7.42% | |
Certificate of deposit November 23, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 5 | |
Rate (as a percent) | 7.42% | |
Certificate of deposit November 22, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 7 | |
Rate (as a percent) | 7.41% | |
Certificate of deposit November 21, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 6 | |
Rate (as a percent) | 7.41% | |
Certificate of deposit November 20, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 7 | |
Rate (as a percent) | 7.40% | |
Certificate of deposit November 16, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 1 | |
Rate (as a percent) | 7.26% | |
Certificate of deposit November 15, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 6 | |
Rate (as a percent) | 7.25% | |
Certificate of deposit November 14, 2018 - One | ||
Financial liabilities | ||
Financial liabilities | $ 1 | |
Rate (as a percent) | 7.23% | |
Certificate of deposit November 5, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 500 | |
Rate (as a percent) | 7.43% | |
Certificate of deposit November 1, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 2,000 | |
Rate (as a percent) | 7.67% | |
Certificate of deposit September 17, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 1,200 | |
Rate (as a percent) | 7.44% | |
Certificate of deposit September 13, 2018 - One | ||
Financial liabilities | ||
Financial liabilities | $ 500 | |
Rate (as a percent) | 7.43% | |
Certificate of deposit September 13, 18 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 2,000 | |
Rate (as a percent) | 7.43% | |
Certificate of deposit August 17, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 3,800 | |
Rate (as a percent) | 7.43% | |
Certificate of deposit August 16, 2018 - One | ||
Financial liabilities | ||
Financial liabilities | $ 100 | |
Rate (as a percent) | 7.43% | |
Certificate of deposit August 16, 2018 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 1,100 | |
Rate (as a percent) | 7.62% | |
Certificate of deposit July 27, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 50 | |
Rate (as a percent) | 7.46% | |
Certificate of deposit July 17, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Rate (as a percent) | 7.55% | |
Certificate of deposit June 25, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Rate (as a percent) | 7.55% | |
Certificate of deposit June 8, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Rate (as a percent) | 7.59% | |
Certificate of deposit May 24, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 500 | |
Rate (as a percent) | 7.69% | |
Certificate of deposit May 9, 2018 - One | ||
Financial liabilities | ||
Financial liabilities | $ 700 | |
Rate (as a percent) | 7.64% | |
Certificate of deposit February 23, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 750 | |
Rate (as a percent) | 7.54% | |
Certificate of deposit February 22, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Rate (as a percent) | 7.50% | |
Certificate of deposit May 9, 2018 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 3 | |
Rate (as a percent) | 0.96% | |
Certificate of deposit April 30, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 98 | |
Rate (as a percent) | 0.99% | |
Certificate of deposit November 14, 2018 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 3,933 | |
Rate (as a percent) | 1.62% | |
Certificate of deposit July 31, 2018 - One | ||
Financial liabilities | ||
Financial liabilities | $ 1 | |
Rate (as a percent) | 0.40% | |
Certificate of deposit July 31, 2018 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 3 | |
Rate (as a percent) | 0.99% | |
Certificate of deposit June 29, 2018 - One | ||
Financial liabilities | ||
Financial liabilities | $ 1 | |
Rate (as a percent) | 0.40% | |
Certificate of deposit June 29, 2018 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 3 | |
Rate (as a percent) | 0.98% | |
Certificate of deposit June 27, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 12 | |
Rate (as a percent) | 0.98% | |
Certificate of deposit June 15, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 12 | |
Rate (as a percent) | 0.98% | |
Certificate of deposit June 4, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 23 | |
Rate (as a percent) | 0.98% | |
Certificate of deposit May 21, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 23 | |
Rate (as a percent) | 0.98% | |
Certificate of deposit May 18, 2018 - One | ||
Financial liabilities | ||
Financial liabilities | $ 34 | |
Rate (as a percent) | 0.98% | |
Certificate of deposit May 18, 2018- Two | ||
Financial liabilities | ||
Financial liabilities | $ 23 | |
Rate (as a percent) | 0.98% | |
Certificate of deposit May 9, 2018 - Three | ||
Financial liabilities | ||
Financial liabilities | $ 5 | |
Rate (as a percent) | 0.96% | |
Certificate of deposit April 18, 2018 - One | ||
Financial liabilities | ||
Financial liabilities | $ 17 | |
Rate (as a percent) | 1.05% | |
Certificate of deposit April 18, 2018 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 17 | |
Rate (as a percent) | 1.05% | |
Certificate of deposit April 18, 2018 - Three | ||
Financial liabilities | ||
Financial liabilities | $ 17 | |
Rate (as a percent) | 1.05% | |
Certificate of deposit April 18, 2018 - Four | ||
Financial liabilities | ||
Financial liabilities | $ 17 | |
Rate (as a percent) | 1.05% | |
Certificate of deposit February 28, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 44 | |
Rate (as a percent) | 0.65% | |
Certificate of deposit January 4, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 79 | |
Rate (as a percent) | 0.85% | |
Certificate of deposit January 26, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 2,514 | |
Rate (as a percent) | 1.70% | |
Certificate of deposit January 19, 2018 - One | ||
Financial liabilities | ||
Financial liabilities | $ 37 | |
Rate (as a percent) | 0.85% | |
Certificate of deposit January 19, 2018 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 68 | |
Rate (as a percent) | 0.85% | |
Certificate of deposit January 16, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 585 | |
Rate (as a percent) | 1.20% | |
Certificates of deposit February 17, 2017 - One | ||
Financial liabilities | ||
Financial liabilities | $ 2,500 | |
Rate (as a percent) | 6.16% | |
Certificates of deposit February 17, 2017 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 630 | |
Rate (as a percent) | 6.16% | |
Certificates of deposit April 27, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 2,000 | |
Rate (as a percent) | 5.65% | |
Certificates of deposit March 9, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 530 | |
Rate (as a percent) | 5.65% | |
Certificates of deposit April 12, 2017 - One | ||
Financial liabilities | ||
Financial liabilities | $ 80 | |
Rate (as a percent) | 6.15% | |
Certificates of deposit April 26, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 2,000 | |
Rate (as a percent) | 5.65% | |
Certificates of deposit April 21, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 300 | |
Rate (as a percent) | 6.16% | |
Certificates of deposit June 1, 2017 - One | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Rate (as a percent) | 5.65% | |
Certificates of deposit June 9, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 700 | |
Rate (as a percent) | 6.16% | |
Certificates of deposit July 20, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 800 | |
Rate (as a percent) | 5.65% | |
Certificates of deposit July 25, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 50 | |
Rate (as a percent) | 5.42% | |
Certificates of deposit July 27, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 500 | |
Rate (as a percent) | 5.65% | |
Certificates of deposit October 6, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Rate (as a percent) | 5.88% | |
Certificates of deposit November 1, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Rate (as a percent) | 5.88% | |
Certificates of deposit January 2, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 45 | |
Rate (as a percent) | 5.58% | |
Certificates of deposit December 11, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 800 | |
Rate (as a percent) | 5.88% | |
Certificates of deposit April 12, 2017 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 1,100 | |
Rate (as a percent) | 6.16% | |
Certificates of deposit January 20, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Rate (as a percent) | 6.16% | |
Certificates of deposit June 28, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 300 | |
Rate (as a percent) | 5.65% | |
Certificates of deposit March 2, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 800 | |
Rate (as a percent) | 5.65% | |
Certificates of deposit May 26, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 1,730 | |
Rate (as a percent) | 5.66% | |
Certificates of deposit September 11, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 100 | |
Rate (as a percent) | 5.64% | |
Certificates of deposit August 15, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Rate (as a percent) | 5.65% | |
Certificates of deposit June 5, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 700 | |
Rate (as a percent) | 6.13% | |
Certificates of deposit February 1, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 500 | |
Rate (as a percent) | 5.65% | |
Certificates of deposit May 4, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Rate (as a percent) | 5.65% | |
Certificates of deposit February 10, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 500 | |
Rate (as a percent) | 5.68% | |
Certificates of deposit September 25, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Rate (as a percent) | 5.88% | |
Certificates of deposit July 31, 2017 - One | ||
Financial liabilities | ||
Financial liabilities | $ 2 | |
Rate (as a percent) | 0.65% | |
Certificates of deposit January 17, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 197 | |
Rate (as a percent) | 0.20% | |
Certificates of deposit January 26, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 403 | |
Rate (as a percent) | 0.20% | |
Certificates of deposit January 5, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 283 | |
Rate (as a percent) | 0.35% | |
Certificates of deposit January 12, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 215 | |
Rate (as a percent) | 0.35% | |
Certificates of deposit January 19, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 340 | |
Rate (as a percent) | 0.20% | |
Certificates of deposit January 10, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 379 | |
Rate (as a percent) | 0.35% | |
Certificates of deposit July 31, 2017 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 4 | |
Rate (as a percent) | 0.95% | |
Certificates of deposit July 31, 2017 - Three | ||
Financial liabilities | ||
Financial liabilities | $ 1 | |
Rate (as a percent) | 0.75% | |
Certificates of deposit July 31, 2017 - Four | ||
Financial liabilities | ||
Financial liabilities | $ 1 | |
Rate (as a percent) | 0.90% | |
Certificates of deposit May 9, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 103 | |
Rate (as a percent) | 0.65% | |
Certificates of deposit June 1, 2017 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 46 | |
Rate (as a percent) | 0.50% | |
Certificates of deposit July 31, 2017 - Five | ||
Financial liabilities | ||
Financial liabilities | $ 1 | |
Rate (as a percent) | 0.70% | |
Certificates of deposit January 24, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 246 | |
Rate (as a percent) | 0.20% |
Marketable debt securities - Se
Marketable debt securities - Senior Unsecured Notes (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial liabilities | ||
Financial liabilities | $ 27,350 | |
Total financial liabilities | 1,191,900 | $ 1,224,066 |
Marketable debt securities | ||
Financial liabilities | ||
Total financial liabilities | $ 96,296 | 90,003 |
Rate (as a percent) | 7.25% | |
Senior Unsecured Notes | ||
Financial liabilities | ||
Financial liabilities | $ 19,449 | 20,349 |
Accrued interest | 109 | 113 |
Total financial liabilities | $ 19,558 | $ 20,462 |
Rate (as a percent) | 4.125% | 4.125% |
Marketable debt securities - St
Marketable debt securities - Structured bank bonds (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial liabilities | ||
Financial liabilities | $ 27,350 | |
Total financial liabilities | 1,191,900 | $ 1,224,066 |
Marketable debt securities | ||
Financial liabilities | ||
Total financial liabilities | $ 96,296 | 90,003 |
Rate (as a percent) | 7.25% | |
Structured bank bonds | ||
Financial liabilities | ||
Financial liabilities | $ 10,726 | 12,530 |
Accrued interest | 22 | 12 |
Total financial liabilities | 10,748 | 12,542 |
Structured bank bonds May 31, 2018 - Two | ||
Financial liabilities | ||
Financial liabilities | 151 | |
Structured bank bonds January 4, 2018 - Three | ||
Financial liabilities | ||
Financial liabilities | 59 | |
Structured bank bonds January 17, 2018 | ||
Financial liabilities | ||
Financial liabilities | 10 | |
Structured bank bonds May 24, 2021 | ||
Financial liabilities | ||
Financial liabilities | 57 | |
Structured bank bonds May 12, 2021 | ||
Financial liabilities | ||
Financial liabilities | 18 | 20 |
Structured bank bonds April 23, 2021 - One | ||
Financial liabilities | ||
Financial liabilities | 347 | 383 |
Structured bank bonds March 16, 2021 | ||
Financial liabilities | ||
Financial liabilities | 7 | 14 |
Structured bank bonds March 3, 2021 - One | ||
Financial liabilities | ||
Financial liabilities | 4 | 21 |
Structured bank bonds March 3, 2021 - Two | ||
Financial liabilities | ||
Financial liabilities | 23 | 4 |
Structured bank bonds February 23, 2021 | ||
Financial liabilities | ||
Financial liabilities | 41 | 157 |
Structured bank bonds December 14, 2020 | ||
Financial liabilities | ||
Financial liabilities | 167 | 160 |
Structured bank bonds November 23, 2020 | ||
Financial liabilities | ||
Financial liabilities | 128 | 123 |
Structured bank bonds November 9, 2020 - Three | ||
Financial liabilities | ||
Financial liabilities | 66 | 63 |
Structured bank bonds November 9, 2020 - Two | ||
Financial liabilities | ||
Financial liabilities | 212 | 203 |
Structured bank bonds November 9, 2020 - One | ||
Financial liabilities | ||
Financial liabilities | 45 | 43 |
Structured bank bonds November 5, 2020 | ||
Financial liabilities | ||
Financial liabilities | 8 | 8 |
Structured bank bonds October 26, 2020 | ||
Financial liabilities | ||
Financial liabilities | 515 | 503 |
Structured bank bonds October 23, 2020 | ||
Financial liabilities | ||
Financial liabilities | 771 | 823 |
Structured bank bonds December 27, 2019 | ||
Financial liabilities | ||
Financial liabilities | 36 | |
Structured bank bonds December 19, 2019 | ||
Financial liabilities | ||
Financial liabilities | 15 | 14 |
Structured bank bonds November 22, 2019 | ||
Financial liabilities | ||
Financial liabilities | 66 | |
Structured bank bonds November 14, 2019 | ||
Financial liabilities | ||
Financial liabilities | 155 | 148 |
Structured bank bonds November 7, 2019 | ||
Financial liabilities | ||
Financial liabilities | 18 | 17 |
Structured bank bonds October 16, 2019 | ||
Financial liabilities | ||
Financial liabilities | 103 | |
Structured bank bonds October 3, 2019 | ||
Financial liabilities | ||
Financial liabilities | 20 | 28 |
Structured bank bonds September 25, 2019 | ||
Financial liabilities | ||
Financial liabilities | 90 | |
Structured bank bonds September 4, 2019 | ||
Financial liabilities | ||
Financial liabilities | 99 | 93 |
Structured bank bonds June 26, 2019 | ||
Financial liabilities | ||
Financial liabilities | 10 | |
Structured bank bonds June 6, 2019 - Two | ||
Financial liabilities | ||
Financial liabilities | 58 | 53 |
Structured bank bonds June 6, 2019 - Four | ||
Financial liabilities | ||
Financial liabilities | 27 | 26 |
Structured bank bonds June 6, 2019 - Three | ||
Financial liabilities | ||
Financial liabilities | 219 | 215 |
Structured bank bonds June 6, 2019 - One | ||
Financial liabilities | ||
Financial liabilities | 7 | 6 |
Structured bank bonds May 23, 2019 | ||
Financial liabilities | ||
Financial liabilities | 21 | 19 |
Structured bank bonds April 26, 2019 - Two | ||
Financial liabilities | ||
Financial liabilities | 15 | 14 |
Structured bank bonds April 26, 2019 - Three | ||
Financial liabilities | ||
Financial liabilities | 50 | 47 |
Structured bank bonds April 26, 2019 - One | ||
Financial liabilities | ||
Financial liabilities | 118 | 121 |
Structured bank bonds April 3, 2019 | ||
Financial liabilities | ||
Financial liabilities | 18 | 16 |
Structured bank bonds March 27, 2019 | ||
Financial liabilities | ||
Financial liabilities | 10 | 9 |
Structured bank bonds February 21, 2019 | ||
Financial liabilities | ||
Financial liabilities | 110 | |
Structured bank bonds February 14, 2019 | ||
Financial liabilities | ||
Financial liabilities | 11 | 10 |
Structured bank bonds November 16, 2018 | ||
Financial liabilities | ||
Financial liabilities | 19 | |
Structured bank bonds October 19, 2018 | ||
Financial liabilities | ||
Financial liabilities | 167 | 150 |
Structured bank bonds September 27, 2018 | ||
Financial liabilities | ||
Financial liabilities | 135 | 124 |
Structured bank bonds September 26, 2018 | ||
Financial liabilities | ||
Financial liabilities | 166 | |
Structured bank bonds September 20, 2018 | ||
Financial liabilities | ||
Financial liabilities | 105 | 97 |
Structured bank bonds August 30, 2018 | ||
Financial liabilities | ||
Financial liabilities | 133 | 123 |
Structured bank bonds August 2, 2018 - Two | ||
Financial liabilities | ||
Financial liabilities | 6 | 5 |
Structured bank bonds August 2, 2018 - One | ||
Financial liabilities | ||
Financial liabilities | 11 | 10 |
Structured bank bonds July 12, 2018 | ||
Financial liabilities | ||
Financial liabilities | 126 | 114 |
Structured bank bonds June 29, 2018 - Five | ||
Financial liabilities | ||
Financial liabilities | 305 | |
Structured bank bonds June 29, 2018 - Six | ||
Financial liabilities | ||
Financial liabilities | 10 | |
Structured bank bonds June 29, 2018 - Three | ||
Financial liabilities | ||
Financial liabilities | 925 | 970 |
Structured bank bonds June 29, 2018 - Two | ||
Financial liabilities | ||
Financial liabilities | 10 | 9 |
Structured bank bonds June 29, 2018 - Four | ||
Financial liabilities | ||
Financial liabilities | 150 | 137 |
Structured bank bonds June 27, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 467 | $ 463 |
Rate (as a percent) | 2.00% | 2.00% |
Structured bank bonds June 8, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 13 | |
Structured bank bonds June 6, 2018 | ||
Financial liabilities | ||
Financial liabilities | 159 | $ 150 |
Structured bank bonds May 31, 2018 - One | ||
Financial liabilities | ||
Financial liabilities | 127 | 121 |
Structured bank bonds May 30, 2018 | ||
Financial liabilities | ||
Financial liabilities | 715 | |
Structured bank bonds May 25, 2018 | ||
Financial liabilities | ||
Financial liabilities | 10 | |
Structured bank bonds May 16, 2018 | ||
Financial liabilities | ||
Financial liabilities | 148 | 141 |
Structured bank bonds May 9, 2018 | ||
Financial liabilities | ||
Financial liabilities | 101 | |
Structured bank bonds April 3, 2018 - Two | ||
Financial liabilities | ||
Financial liabilities | 6 | 6 |
Structured bank bonds April 3, 2018 - One | ||
Financial liabilities | ||
Financial liabilities | 892 | 945 |
Structured bank bonds March 22, 2018 | ||
Financial liabilities | ||
Financial liabilities | 49 | |
Structured bank bonds March 20, 2018 | ||
Financial liabilities | ||
Financial liabilities | 46 | |
Structured bank bonds March 14, 2018 | ||
Financial liabilities | ||
Financial liabilities | 21 | |
Structured bank bonds March 12, 2018 | ||
Financial liabilities | ||
Financial liabilities | 90 | |
Structured bank bonds March 5, 2018 - Two | ||
Financial liabilities | ||
Financial liabilities | 41 | 42 |
Structured bank bonds March 5, 2018 - One | ||
Financial liabilities | ||
Financial liabilities | 41 | 42 |
Structured bank bonds March 2, 2018 | ||
Financial liabilities | ||
Financial liabilities | 476 | 581 |
Structured bank bonds February 21, 2018 | ||
Financial liabilities | ||
Financial liabilities | 10 | |
Structured bank bonds February 20, 2018 | ||
Financial liabilities | ||
Financial liabilities | 24 | |
Structured bank bonds February 19, 2018 | ||
Financial liabilities | ||
Financial liabilities | 310 | 330 |
Structured bank bonds February 16, 2018 | ||
Financial liabilities | ||
Financial liabilities | 40 | |
Structured bank bonds January 4, 2018 - Two | ||
Financial liabilities | ||
Financial liabilities | 14 | 14 |
Structured bank bonds January 4, 2018 - One | ||
Financial liabilities | ||
Financial liabilities | 572 | 613 |
Structured bank bonds May 17, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 181 | |
Structured bank bonds January 6, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 35 | |
Rate (as a percent) | 10.00% | |
Structured bank bonds January 10, 2017 - One | ||
Financial liabilities | ||
Financial liabilities | $ 10 | |
Rate (as a percent) | 9.00% | |
Structured bank bonds January 4, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 27 | |
Rate (as a percent) | 11.59% | |
Structured bank bonds January 13, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 17 | |
Rate (as a percent) | 12.50% | |
Structured bank bonds January 3, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 82 | |
Rate (as a percent) | 4.18% | |
Structured bank bonds January 5, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 10 | |
Rate (as a percent) | 8.00% | |
Structured bank bonds January 24, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 10 | |
Rate (as a percent) | 7.00% | |
Structured bank bonds March 2, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 593 | |
Structured bank bonds March 16, 2017 | ||
Financial liabilities | ||
Financial liabilities | 53 | |
Structured bank bonds March 13, 2017 | ||
Financial liabilities | ||
Financial liabilities | 42 | |
Structured bank bonds March 24, 2017 | ||
Financial liabilities | ||
Financial liabilities | 12 | |
Structured bank bonds April 6, 2017 | ||
Financial liabilities | ||
Financial liabilities | 12 | |
Structured bank bonds June 29, 2017 | ||
Financial liabilities | ||
Financial liabilities | 465 | |
Structured bank bonds August 3, 2017 | ||
Financial liabilities | ||
Financial liabilities | 514 | |
Structured bank bonds September 6, 2017 | ||
Financial liabilities | ||
Financial liabilities | 441 | |
Structured bank bonds September 8, 2017 | ||
Financial liabilities | ||
Financial liabilities | 168 | |
Structured bank bonds November 6, 2017 | ||
Financial liabilities | ||
Financial liabilities | 115 | |
Structured bank bonds March 6, 2017 | ||
Financial liabilities | ||
Financial liabilities | 441 | |
Structured bank bonds May 9, 2017 | ||
Financial liabilities | ||
Financial liabilities | 25 | |
Structured bank bonds May 25, 2017 | ||
Financial liabilities | ||
Financial liabilities | 22 | |
Structured bank bonds June 29, 2018 - One | ||
Financial liabilities | ||
Financial liabilities | 82 | |
Structured bank bonds August 10, 2017 | ||
Financial liabilities | ||
Financial liabilities | 122 | |
Structured bank bonds August 30, 2017 | ||
Financial liabilities | ||
Financial liabilities | 155 | |
Structured bank bonds September 14, 2017 - One | ||
Financial liabilities | ||
Financial liabilities | 51 | |
Structured bank bonds September 14, 2017 - Two | ||
Financial liabilities | ||
Financial liabilities | 153 | |
Structured bank bonds December 14, 2017 | ||
Financial liabilities | ||
Financial liabilities | 18 | |
Structured bank bonds July 18, 2017 | ||
Financial liabilities | ||
Financial liabilities | 204 | |
Structured bank bonds December 21, 2017 | ||
Financial liabilities | ||
Financial liabilities | 10 | |
Structured bank bonds January 10, 2017 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 10 | |
Rate (as a percent) | 26.00% | |
Structured bank bonds January 17, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 83 | |
Rate (as a percent) | 4.15% |
Marketable debt securities - Pr
Marketable debt securities - Promissory notes (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial liabilities | ||
Financial liabilities | $ 27,350 | |
Total financial liabilities | 1,191,900 | $ 1,224,066 |
Marketable debt securities | ||
Financial liabilities | ||
Total financial liabilities | $ 96,296 | 90,003 |
Rate (as a percent) | 7.25% | |
Promissory notes | ||
Financial liabilities | ||
Financial liabilities | $ 23,408 | 16,098 |
Accrued interest | 169 | 3 |
Total financial liabilities | 23,577 | 16,101 |
Promissory notes August 22, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 1,115 | |
Rate (as a percent) | 7.53% | |
Promissory notes August 10, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 499 | |
Rate (as a percent) | 7.56% | |
Promissory notes August 6, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 1,022 | |
Rate (as a percent) | 7.57% | |
Promissory notes August 3, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 511 | |
Rate (as a percent) | 7.58% | |
Promissory notes June 4, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 96 | |
Rate (as a percent) | 7.38% | |
Promissory notes June 4, 2018 - one | ||
Financial liabilities | ||
Financial liabilities | $ 868 | |
Rate (as a percent) | 7.38% | |
Promissory notes February 28, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 2,677 | |
Rate (as a percent) | 7.38% | |
Promissory notes January 23, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 1 | |
Rate (as a percent) | 7.25% | |
Promissory notes January 23, 2018 - One | ||
Financial liabilities | ||
Financial liabilities | $ 58 | |
Rate (as a percent) | 7.25% | |
Promissory notes January 2, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 60 | |
Rate (as a percent) | 7.20% | |
Promissory notes January 2, 2018 - One | ||
Financial liabilities | ||
Financial liabilities | $ 10,001 | |
Rate (as a percent) | 7.25% | |
Promissory notes January 2, 2018 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 6,500 | |
Promissory notes January 2, 2017 - One | ||
Financial liabilities | ||
Financial liabilities | $ 68 | |
Rate (as a percent) | 5.70% | |
Promissory notes January 18, 2017 | ||
Financial liabilities | ||
Financial liabilities | $ 55 | |
Rate (as a percent) | 5.75% | |
Promissory notes January 2, 2017 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 13,721 | |
Rate (as a percent) | 5.75% | |
Promissory notes January 2, 2017 - Three | ||
Financial liabilities | ||
Financial liabilities | $ 2,254 | |
Rate (as a percent) | 5.75% |
Marketable debt securities - Un
Marketable debt securities - Unsecured bonds (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial liabilities | ||
Financial liabilities | $ 27,350 | |
Total financial liabilities | 1,191,900 | $ 1,224,066 |
Marketable debt securities | ||
Financial liabilities | ||
Total financial liabilities | $ 96,296 | 90,003 |
Rate (as a percent) | 7.25% | |
Unsecured bonds | ||
Financial liabilities | ||
Financial liabilities | $ 14,700 | 14,700 |
Accrued interest | 98 | 85 |
Total financial liabilities | 14,798 | 14,785 |
Unsecured bonds March 16, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 3,000 | $ 3,000 |
Rate (as a percent) | 8.91% | |
Unsecured bonds March 16, 2018 | TIIE | ||
Financial liabilities | ||
Spread on rate (as a percent) | 0.15% | |
Unsecured bonds September 1, 2026 | ||
Financial liabilities | ||
Financial liabilities | $ 3,000 | $ 3,000 |
Rate (as a percent) | 7.19% | 7.19% |
Unsecured bonds June 14, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 4,000 | $ 4,000 |
Unsecured bonds June 14, 2021 | TIIE | ||
Financial liabilities | ||
Spread on rate (as a percent) | 0.38% | 0.38% |
Unsecured bonds March 9, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 1,700 | $ 1,700 |
Rate (as a percent) | 8.91% | |
Unsecured bonds March 9, 2021 | TIIE | ||
Financial liabilities | ||
Spread on rate (as a percent) | 0.15% | |
Unsecured bonds December 6, 2018 | ||
Financial liabilities | ||
Financial liabilities | $ 3,000 | $ 3,000 |
Unsecured bonds December 6, 2018 | TIIE | ||
Financial liabilities | ||
Spread on rate (as a percent) | 0.18% | 0.18% |
Marketable debt securities - Mo
Marketable debt securities - Mortgage-backed bonds (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial liabilities | ||
Financial liabilities | $ 27,350 | |
Total financial liabilities | 1,191,900 | $ 1,224,066 |
Marketable debt securities | ||
Financial liabilities | ||
Total financial liabilities | $ 96,296 | 90,003 |
Rate (as a percent) | 7.25% | |
Mortgage-backed bonds | ||
Financial liabilities | ||
Financial liabilities | $ 148 | 169 |
Total financial liabilities | 148 | 169 |
Mortgage-backed bonds May 25, 2032 - One | ||
Financial liabilities | ||
Financial liabilities | $ 133 | $ 156 |
Rate (as a percent) | 5.00% | 5.00% |
Mortgage-backed bonds May 25, 2032 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 15 | $ 13 |
Rate (as a percent) | 6.40% | 6.40% |
Subordinated Liabilities - Acti
Subordinated Liabilities - Activity (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017USD ($) | Dec. 31, 2017MXN ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016MXN ($) | Dec. 31, 2015USD ($) | |
Financial liabilities | |||||
Outstanding issue amount | $ 1,191,900 | $ 1,224,066 | |||
Subordinated liabilities | Financial liabilities at amortized cost | |||||
Financial liabilities | |||||
Outstanding issue amount | $ 1,825,000,000 | 35,885 | $ 1,822,000,000 | 37,576 | $ 1,321,000,000 |
Tier II Subordinated Capital Notes | Financial liabilities at amortized cost | |||||
Financial liabilities | |||||
Outstanding issue amount | $ 1,300,000,000 | 26,054 | 27,278 | ||
Annual interest rate (as percent) | 5.95% | ||||
Subordinated Additional Tier I Capital Notes | Financial liabilities at amortized cost | |||||
Financial liabilities | |||||
Outstanding issue amount | $ 500,000,000 | $ 9,831 | $ 10,298 | ||
Annual interest rate (as percent) | 8.50% |
Subordinated Liabilities - Chan
Subordinated Liabilities - Changes (Details) $ in Millions | Dec. 29, 2016USD ($) | Dec. 27, 2013USD ($) | Dec. 31, 2017USD ($)$ / $ | Dec. 31, 2017MXN ($)$ / $ | Dec. 31, 2016USD ($)$ / $ | Dec. 31, 2016MXN ($)$ / $ |
Financial liabilities | ||||||
Financial liabilities at beginning of period | $ 1,224,066 | |||||
Exchange rate per one USD as of December 31, | $ / $ | 19.6629 | 19.6629 | 20.6194 | 20.6194 | ||
Financial liabilities at end of period | $ 1,191,900 | $ 1,224,066 | ||||
Subordinated liabilities | Financial liabilities at amortized cost | ||||||
Financial liabilities | ||||||
Financial liabilities at beginning of period | $ 1,822,000,000 | $ 37,576 | $ 1,321,000,000 | |||
Issues | 500,000,000 | |||||
Transaction costs and accrued interest | $ 3,000,000 | $ 1,000,000 | ||||
Exchange rate per one USD as of December 31, | $ / $ | 19.6629 | 19.6629 | 20.6194 | 20.6194 | ||
Financial liabilities at end of period | $ 1,825,000,000 | $ 35,885 | $ 1,822,000,000 | $ 37,576 | ||
Subordinated liabilities | Banco Santander Mexico S.A. | Financial liabilities at amortized cost | ||||||
Financial liabilities | ||||||
Issues | $ 500,000,000 | |||||
Tier II Subordinated Capital Notes | Financial liabilities at amortized cost | ||||||
Financial liabilities | ||||||
Financial liabilities at beginning of period | 27,278 | |||||
Issues | $ 1,300,000,000 | |||||
Financial liabilities at end of period | 1,300,000,000 | 26,054 | 27,278 | |||
Subordinated Additional Tier I Capital Notes | Financial liabilities at amortized cost | ||||||
Financial liabilities | ||||||
Financial liabilities at beginning of period | 10,298 | |||||
Issues | $ 500,000,000 | |||||
Financial liabilities at end of period | $ 500,000,000 | $ 9,831 | $ 10,298 |
Subordinated Liabilities - Othe
Subordinated Liabilities - Other (Details) - Financial liabilities at amortized cost $ / shares in Units, $ in Millions | Dec. 29, 2016USD ($) | Dec. 27, 2013USD ($)$ / sharesshares | Dec. 31, 2016USD ($) | Dec. 29, 2016$ / shares |
Subordinated liabilities | ||||
Financial liabilities | ||||
Amount of debt securities issued | $ 500 | |||
Tier II Subordinated Capital Notes | ||||
Financial liabilities | ||||
Amount of debt securities issued | $ 1,300 | |||
Number of debt securities issued | shares | 1,300,000 | |||
Nominal value (in dollars per share) | $ / shares | $ 1,000 | |||
Maturity period of debt instruments issued | 10 years | |||
Prepaid maturity period | 5 years | |||
Discount | $ 10 | |||
Interest rate (as a percent) | 5.95% | |||
Initial interest rate term | 5 years | |||
Second interest rate term | 5 years | |||
Basic capital index after loss absorption mechanism through write down of issue | 4.5 | |||
Basic capital index after partial write down | 7 | |||
Basic capital index | 8 | |||
Subordinated Additional Tier I Capital Notes | ||||
Financial liabilities | ||||
Amount of debt securities issued | $ 500 | |||
Interest rate (as a percent) | 8.50% | |||
Initial interest rate term | 5 years | |||
Basic capital index for automatic conversion | 5.125% | |||
Number of consecutive business days | 30 days | |||
Floor price | $ / shares | $ 20.30 |
Subordinated Liabilities - C190
Subordinated Liabilities - Changes arising from financing activities (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017USD ($) | Dec. 31, 2017MXN ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016MXN ($) | Dec. 31, 2015MXN ($) | |
Financial liabilities | |||||
Financial liabilities at beginning of period | $ 1,224,066 | ||||
Cash flows | 9,545 | $ 7,171 | $ 6,760 | ||
Financial liabilities at end of period | 1,191,900 | 1,224,066 | |||
Subordinated liabilities | Financial liabilities at amortized cost | |||||
Financial liabilities | |||||
Financial liabilities at beginning of period | $ 1,822,000,000 | 37,576 | $ 1,321,000,000 | ||
Cash flows | (803) | ||||
Accrued interest | 825 | ||||
Transaction costs | 45 | ||||
Foreign exchange movements | (1,758) | ||||
Financial liabilities at end of period | 1,825,000,000 | 35,885 | $ 1,822,000,000 | 37,576 | |
Tier II Subordinated Capital Notes | Financial liabilities at amortized cost | |||||
Financial liabilities | |||||
Financial liabilities at beginning of period | 27,278 | ||||
Cash flows | (803) | ||||
Accrued interest | 825 | ||||
Transaction costs | 33 | ||||
Foreign exchange movements | (1,279) | ||||
Financial liabilities at end of period | 1,300,000,000 | 26,054 | 27,278 | ||
Subordinated Additional Tier I Capital Notes | Financial liabilities at amortized cost | |||||
Financial liabilities | |||||
Financial liabilities at beginning of period | 10,298 | ||||
Transaction costs | 12 | ||||
Foreign exchange movements | (479) | ||||
Financial liabilities at end of period | $ 500,000,000 | 9,831 | $ 10,298 | ||
Payment of interest | $ 635 |
Other financial liabilities - B
Other financial liabilities - Breakdown and Unsettled (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other financial liabilities | ||
Total other financial liabilities | $ 820,431 | $ 806,091 |
Other financial liabilities | ||
Other financial liabilities | ||
Trade payables | 1,895 | 1,929 |
Tax payables | 939 | 974 |
Financial transactions pending settlement | 5,468 | 14,180 |
Other financial liabilities | 5,161 | 2,437 |
Total other financial liabilities | 13,463 | 19,520 |
M and M0 Mexican Government Bonds | Other financial liabilities | ||
Other financial liabilities | ||
Financial transactions pending settlement | 1,973 | 6,199 |
CETES | Other financial liabilities | ||
Other financial liabilities | ||
Financial transactions pending settlement | 1,456 | 718 |
UDIBONDS | Other financial liabilities | ||
Other financial liabilities | ||
Financial transactions pending settlement | 1,146 | 2,400 |
Equity instruments | Other financial liabilities | ||
Other financial liabilities | ||
Financial transactions pending settlement | 119 | 342 |
Other financial instruments | Other financial liabilities | ||
Other financial liabilities | ||
Financial transactions pending settlement | $ 774 | $ 4,521 |
Other financial liabilities - O
Other financial liabilities - Other (Details) - Other financial liabilities - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial liabilities | ||
Retentions related to loans | $ 1,587 | $ 1,004 |
Other payable account | 3,574 | 1,433 |
Other financial liabilities | $ 5,161 | $ 2,437 |
Provisions - Summary (Details)
Provisions - Summary (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Provisions | ||||
Provisions | $ 6,730 | $ 7,202 | $ 6,580 | $ 5,988 |
Provision for pensions and other employment defined benefit obligations | ||||
Provisions | ||||
Provisions | 3,860 | 3,972 | 4,004 | 2,863 |
Provision for taxes and other legal contingencies | ||||
Provisions | ||||
Provisions | 1,072 | 1,306 | 1,005 | 1,220 |
Provisions for off-balance sheet risk | ||||
Provisions | ||||
Provisions | 1,032 | 874 | 952 | 1,359 |
Other provisions member | ||||
Provisions | ||||
Provisions | $ 766 | $ 1,050 | $ 619 | $ 546 |
Provisions - Changes (Details)
Provisions - Changes (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Provisions | |||
Balances at beginning of year | $ 7,202 | $ 6,580 | $ 5,988 |
Additions charged (credited) to net income: | |||
Interest expense and similar charges | 332 | 317 | 213 |
Personnel expenses - Defined Benefit Plan | 146 | 201 | 188 |
Personnel expenses - Defined Contribution Plan | 330 | 300 | 272 |
Other | 51 | (186) | (24) |
Actuarial (gains)/losses recognized in the year in Other comprehensive income | (666) | (530) | 953 |
Period provisions | 386 | 1,067 | (235) |
Contributions from the employer | 225 | 542 | |
Payments to pensioners and pre-retirees with a charge to internal provisions | (191) | (365) | (178) |
Other payments | (746) | (413) | (314) |
Payments to Defined Contribution Plan | (330) | (300) | (272) |
Transfer, exchange differences and other changes | (9) | (11) | (11) |
Balances at end of year | 6,730 | 7,202 | 6,580 |
Provision for pensions and other employment defined benefit obligations | |||
Provisions | |||
Balances at beginning of year | 3,972 | 4,004 | 2,863 |
Additions charged (credited) to net income: | |||
Interest expense and similar charges | 332 | 317 | 213 |
Personnel expenses - Defined Benefit Plan | 146 | 201 | 188 |
Personnel expenses - Defined Contribution Plan | 330 | 300 | 272 |
Other | 51 | (186) | (24) |
Actuarial (gains)/losses recognized in the year in Other comprehensive income | (666) | (530) | 953 |
Contributions from the employer | 225 | 542 | |
Payments to pensioners and pre-retirees with a charge to internal provisions | (191) | (365) | (178) |
Payments to Defined Contribution Plan | (330) | (300) | (272) |
Transfer, exchange differences and other changes | (9) | (11) | (11) |
Balances at end of year | 3,860 | 3,972 | 4,004 |
Provision for taxes and other legal contingencies | |||
Provisions | |||
Balances at beginning of year | 1,306 | 1,005 | 1,220 |
Additions charged (credited) to net income: | |||
Period provisions | 197 | 624 | (33) |
Other payments | (431) | (323) | (182) |
Balances at end of year | 1,072 | 1,306 | 1,005 |
Provisions for off-balance sheet risk | |||
Provisions | |||
Balances at beginning of year | 874 | 952 | 1,359 |
Additions charged (credited) to net income: | |||
Period provisions | 158 | (78) | (407) |
Balances at end of year | 1,032 | 874 | 952 |
Other provisions member | |||
Provisions | |||
Balances at beginning of year | 1,050 | 619 | 546 |
Additions charged (credited) to net income: | |||
Period provisions | 31 | 521 | 205 |
Other payments | (315) | (90) | (132) |
Balances at end of year | $ 766 | $ 1,050 | $ 619 |
Provisions - Provisions for pen
Provisions - Provisions for pensions and similar obligations - Plans (Details) - MXN ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2006 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Benefits | |||||
Personnel expenses - Defined Contribution Plan | $ 330 | $ 300 | $ 272 | ||
Provisions | 6,730 | 7,202 | 6,580 | $ 5,988 | |
Defined benefit plans | |||||
Employee Benefits | |||||
Plan assets | $ 2,901 | $ 3,426 | |||
Percentage of employees enrolled under defined pension plan | 1.00% | 1.30% | |||
Provisions | $ 3,830 | $ 3,951 | |||
Defined medical benefit plan | |||||
Employee Benefits | |||||
Percentage of payment of medical expenses | 100.00% | ||||
Minimum period worked employees eligible for option of plan | 6 months | ||||
Provision for pensions and other employment defined benefit obligations | |||||
Employee Benefits | |||||
Provisions | $ 3,860 | 3,972 | 4,004 | $ 2,863 | |
Defined benefit plans | |||||
Employee Benefits | |||||
Provisions | $ 3,830 | 3,951 | |||
Defined contribution plan | |||||
Employee Benefits | |||||
Retirement age of employees | 65 years | ||||
Personnel expenses - Defined Contribution Plan | $ 330 | $ 300 | $ 272 | ||
Percentage of employees enrolled under defined contribution plan included in medical coverage plan | 81.00% | 83.30% | |||
Provisions | $ 30 | $ 21 |
Provisions - Provisions for 196
Provisions - Provisions for pensions and similar obligations - Actuarial assumptions (Details) - Defined benefit plans | Dec. 31, 2017 | Dec. 31, 2016 |
Actuarial assumptions | ||
Annual discount rate | 9.30% | 9.00% |
Expected return on plan assets | 9.30% | 9.00% |
Cumulative annual INPC growth | 3.50% | 3.50% |
Annual salary increase rate | 4.50% | 4.50% |
Annual minimum salary increase rate | 3.50% | 3.50% |
Medical cost trend rates | 7.12% | 7.12% |
Provisions - Funding status (De
Provisions - Funding status (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Defined benefit plans | ||
Defined benefit obligations | ||
Present value of the obligations | $ 6,731 | $ 7,377 |
Less: Fair value of plan assets | (2,901) | (3,426) |
Provisions - Provisions for pensions | 3,830 | 3,951 |
Of which: Internal provisions for pensions | 3,830 | 3,951 |
Pension plan | ||
Defined benefit obligations | ||
Present value of the obligations | 2,019 | 2,283 |
Post-employment benefits | ||
Defined benefit obligations | ||
Present value of the obligations | 4,000 | 4,440 |
Other | ||
Defined benefit obligations | ||
Present value of the obligations | $ 712 | $ 654 |
Provisions - Amounts recognized
Provisions - Amounts recognized (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Amounts recognized in the consolidated income statements in relation to the aforementioned defined benefit obligations | |||
Current service cost | $ 146 | $ 201 | $ 188 |
Defined benefit plans | |||
Amounts recognized in the consolidated income statements in relation to the aforementioned defined benefit obligations | |||
Current service cost | 146 | 201 | 188 |
Interest cost (net) | 332 | 317 | 213 |
Other | 51 | (186) | (24) |
Total defined benefit expenses recognized in the consolidated income statements | $ 529 | $ 332 | $ 377 |
Provisions - Present Value of O
Provisions - Present Value of Obligations (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017MXN ($)Y | Dec. 31, 2016MXN ($) | Dec. 31, 2015MXN ($) | |
Defined benefit obligations | |||
Current service cost | $ 146 | $ 201 | $ 188 |
Duration of defined benefit obligation | Y | 9.35 | ||
Present value of defined benefit obligation | |||
Defined benefit obligations | |||
Present value of the obligations at beginning of year | $ 7,377 | 7,864 | |
Current service cost | 146 | 201 | |
Interest cost | 633 | 643 | |
Benefits paid | (737) | (818) | |
Actuarial (gains)/losses | (681) | (512) | |
Other | (7) | (1) | |
Present value of the obligations at end of year | $ 6,731 | $ 7,377 | $ 7,864 |
Provisions - Fair value of plan
Provisions - Fair value of plan asset and Plan asset allocation (Details) - Defined benefit plans - Plan Assets - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair value of plan assets | ||
Fair value of plan assets at beginning of year | $ 3,426 | $ 3,881 |
Actual return on plan assets | 242 | 539 |
Transfer of funds to defined contribution plan | (225) | (542) |
Benefits paid | (542) | (452) |
Fair value of plan assets at end of year | $ 2,901 | $ 3,426 |
Equity instruments. | ||
Plan assets | ||
Plan assets as a percentage of total plan assets | 29.00% | 27.00% |
Cash and debt instruments | ||
Plan assets | ||
Plan assets as a percentage of total plan assets | 71.00% | 73.00% |
Provisions - Sensitivity analys
Provisions - Sensitivity analysis (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017MXN ($) | |
Main actuarial assumptions | |
Disclosure of net defined benefit liability (asset) [line items] | |
Increase in actuarial assumption (as a percent) | 0.50% |
Decrease in actuarial assumption (as a percent) | 0.50% |
Increase or decrease on obligations if decrease in actuarial assumption | $ 289 |
Increase or decrease on obligations if increase in actuarial assumption | $ 303 |
Medical benefits | |
Disclosure of net defined benefit liability (asset) [line items] | |
Increase in actuarial assumption (as a percent) | 0.50% |
Decrease in actuarial assumption (as a percent) | 0.50% |
Increase or decrease on obligations if decrease in actuarial assumption | $ 168 |
Increase or decrease on obligations if increase in actuarial assumption | $ 181 |
Annual salary growth | |
Disclosure of net defined benefit liability (asset) [line items] | |
Increase in actuarial assumption (as a percent) | 0.50% |
Decrease in actuarial assumption (as a percent) | 0.50% |
Increase or decrease on obligations if decrease in actuarial assumption | $ 8 |
Increase or decrease on obligations if increase in actuarial assumption | $ 9 |
Annual INPC growth | |
Disclosure of net defined benefit liability (asset) [line items] | |
Increase in actuarial assumption (as a percent) | 0.50% |
Decrease in actuarial assumption (as a percent) | 0.50% |
Increase or decrease on obligations if decrease in actuarial assumption | $ 7 |
Increase or decrease on obligations if increase in actuarial assumption | 7 |
Mortality | |
Disclosure of net defined benefit liability (asset) [line items] | |
Increase or decrease on obligations if decrease in actuarial assumption | 378 |
Increase or decrease on obligations if increase in actuarial assumption | $ 383 |
Increase in mortality (years) | 2 years |
Decrease in mortality (years) | 2 years |
Provisions - Other disclosures
Provisions - Other disclosures (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Provision for lifetime payment | ||
Provisions | ||
Provision for projected benefit obligation | $ 826 | $ 865 |
Provisions - Provision for tax
Provisions - Provision for tax and legal matters (Details) - MXN ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | May 31, 2013 | |
Provisions | |||||
Provisions | $ 6,730 | $ 7,202 | $ 6,580 | $ 5,988 | |
Other payments | 746 | 413 | 314 | ||
Amount paid to external lawyers | 431 | 322 | |||
Provision for taxes and other legal contingencies | |||||
Provisions | |||||
Provisions | 1,072 | 1,306 | 1,005 | $ 1,220 | |
Other payments | 431 | 323 | 182 | ||
Provision for various tax claims | |||||
Provisions | |||||
Provisions | 49 | 177 | |||
Tax-related proceedings, Claim of nullity | |||||
Provisions | |||||
Proposed settlement amount | $ 58 | ||||
Other payments | 53 | ||||
Other tax issues, Derivative transactions | |||||
Provisions | |||||
Other payments | 5 | 18 | $ 19 | ||
Non-tax-related proceedings | |||||
Provisions | |||||
Provisions | $ 1,023 | $ 1,129 |
Provisions - Provision for off-
Provisions - Provision for off-balance-sheet risk (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Provisions | ||||
Provisions | $ 6,730 | $ 7,202 | $ 6,580 | $ 5,988 |
Provisions for off-balance sheet risk | ||||
Provisions | ||||
Provisions | 1,032 | 874 | $ 952 | $ 1,359 |
Available lines of credit cards and non-revolving consumer loans | Provisions for off-balance sheet risk | ||||
Provisions | ||||
Provisions | 838 | 759 | ||
Guarantees and loan commitments | Provisions for off-balance sheet risk | ||||
Provisions | ||||
Provisions | $ 194 | $ 115 |
Other liabilities (Details)
Other liabilities (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other liabilities | ||
Sundry creditors | $ 3,493 | $ 3,637 |
Cash balances undrawn | 5,167 | 5,988 |
Cash-settled share-based payments | 784 | 534 |
Accrued personnel obligations | 2,211 | 1,561 |
Other obligations | 1,735 | 1,395 |
Credit and debit card operation balances | 1,690 | 1,283 |
Other liabilities | $ 15,080 | $ 14,398 |
Tax matters - Income Tax expens
Tax matters - Income Tax expense (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current tax expense | |||
Tax expense for current year | $ 4,215 | $ 5,138 | $ 4,983 |
Deferred tax expense (benefit) | |||
Origination and reversal of temporary difference and usage (accrual) of tax carryforward benefits | 1,281 | 213 | (679) |
Total Income Tax | $ 5,496 | $ 5,351 | $ 4,304 |
Tax matters - Income Tax reconc
Tax matters - Income Tax reconciliation (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated profit (loss) before tax | |||
Standard tax rate (as a percent) | 30.00% | ||
Profit before tax | $ 24,174 | $ 21,887 | $ 18,368 |
Income tax at applicable rate | 7,252 | 6,566 | 5,510 |
Due to effect of inflation | (1,742) | (982) | (999) |
Due to effect of tangible assets | (78) | (154) | (87) |
Due to effect of tax audit settlements | (31) | ||
Due to effect of non-deductible expenses, non-taxable income and others | 64 | (79) | (89) |
Total Income Tax | $ 5,496 | $ 5,351 | $ 4,304 |
Effective tax rate (as a percent) | 22.74% | 24.45% | 23.43% |
Current taxes | $ 4,215 | $ 5,138 | $ 4,983 |
Deferred taxes | $ 1,281 | $ 213 | $ (679) |
Tax matters - Tax recognized in
Tax matters - Tax recognized in consolidated equity (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net tax credited/(charged) to consolidated equity | |||
Remeasurement of defined benefit obligation | $ (200) | $ (158) | $ 286 |
Measurement of Available-for-sale | (477) | 1,174 | 53 |
Measurement of Financial derivatives (Cash flow hedge) | 440 | (207) | (260) |
Paid interests on Subordinated Additional Tier I Capital Notes | 191 | ||
Tax recognized in consolidated equity | (46) | 809 | 79 |
Debt instruments. | |||
Net tax credited/(charged) to consolidated equity | |||
Measurement of Available-for-sale | (478) | 1,158 | 51 |
Equity instruments. | |||
Net tax credited/(charged) to consolidated equity | |||
Measurement of Available-for-sale | $ 1 | $ 16 | $ 2 |
Tax matters - Deferred taxes (D
Tax matters - Deferred taxes (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | |
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | $ 20,881 | $ 18,548 | $ 17,184 |
Net deferred tax liabilities | 5 | 51 | |
Deferred tax liabilities | $ (2,841) | $ (1,381) | (635) |
Deferred tax asset recovery period | 10 years | 10 years | |
Valuation of tangible and intangible assets | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | $ 2,413 | 2,457 | |
Non-deductible provisions | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 1,144 | 1,659 | |
Impairment losses on loans and receivables | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 9,313 | 8,337 | |
Unrealized gains (losses) on financial instruments | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 3,460 | ||
Deferred tax liabilities | 68 | (20) | |
Net operating losses carryforward | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 169 | 106 | |
Capital losses carryforward | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 2,525 | 2,689 | |
Labor provisions | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 1,149 | 1,022 | |
Deferred tax liabilities | (101) | ||
Fees and interest collected in advance | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 708 | 579 | |
Foreign exchange rate derivatives | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 335 | ||
Deferred tax liabilities | (2,069) | ||
Prepayments | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax liabilities | (394) | (467) | |
Other | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax liabilities | $ (345) | $ (148) |
Tax matters - Net operating and
Tax matters - Net operating and Capital losses carryforward (Details) $ in Millions | Dec. 31, 2017MXN ($) |
Net operating losses carryforward | |
Detail of deferred tax assets and liabilities | |
Loss amount | $ 354 |
Deferred tax assets | 106 |
Capital losses carryforward | |
Detail of deferred tax assets and liabilities | |
Loss amount | 8,962 |
Deferred tax assets | 2,689 |
2020 | Net operating losses carryforward | |
Detail of deferred tax assets and liabilities | |
Loss amount | 46 |
Deferred tax assets | 14 |
2021 | Net operating losses carryforward | |
Detail of deferred tax assets and liabilities | |
Loss amount | 192 |
Deferred tax assets | 58 |
2024 | Net operating losses carryforward | |
Detail of deferred tax assets and liabilities | |
Loss amount | 24 |
Deferred tax assets | 7 |
2025 | Net operating losses carryforward | |
Detail of deferred tax assets and liabilities | |
Loss amount | 87 |
Deferred tax assets | 26 |
2025 | Capital losses carryforward | |
Detail of deferred tax assets and liabilities | |
Loss amount | 2,284 |
Deferred tax assets | 685 |
2026 | Net operating losses carryforward | |
Detail of deferred tax assets and liabilities | |
Loss amount | 5 |
Deferred tax assets | 1 |
2026 | Capital losses carryforward | |
Detail of deferred tax assets and liabilities | |
Loss amount | 3,627 |
Deferred tax assets | 1,088 |
2027 | Capital losses carryforward | |
Detail of deferred tax assets and liabilities | |
Loss amount | 3,051 |
Deferred tax assets | $ 916 |
Tax matters - Net deferred tax
Tax matters - Net deferred tax assets and liabilities (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Tax matters | |||
Presented as deferred tax assets | $ 16,600 | $ 18,045 | |
Presented as deferred tax liabilities | (51) | (5) | |
Net | $ 16,549 | $ 18,040 | $ 17,167 |
Tax matters - Changes in Tax as
Tax matters - Changes in Tax assets and liabilities (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in deferred tax assets and liabilities | |||
Deferred tax assets - Balances at the beginning of the period | $ 20,881 | $ 18,548 | |
Deferred tax assets - (Charge)/Credit to Consolidated Income | (3,561) | 2,333 | |
Deferred tax assets - (Charge) Credit to Consolidated Other Comprehensive Income | (136) | ||
Deferred tax assets - Balances at the end of the period | 17,184 | 20,881 | $ 18,548 |
Deferred tax liabilities - Balances at the beginning of the period | (2,841) | (1,381) | |
Deferred tax liabilities - (Charge)/Credit to Consolidated Income | 2,280 | (2,546) | |
Deferred tax liabilities - (Charge) Credit to Consolidated Other Comprehensive Income | (101) | 809 | |
Deferred tax liabilities - Other Movements | 27 | 277 | |
Deferred tax liabilities - Balances at the end of the period | (635) | (2,841) | (1,381) |
Balances at the beginning of the period | 18,040 | 17,167 | |
(Charge)/Credit to Consolidated income | (1,281) | (213) | 679 |
(Charge) Credit to Consolidated Other Comprehensive Income | (237) | 809 | |
Other Movements | 27 | 277 | |
Balances at the end of the period | $ 16,549 | $ 18,040 | $ 17,167 |
Non-controlling interests - NCI
Non-controlling interests - NCI Components (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Subsidiaries | |||
Non-controlling interest | $ 58 | $ 29 | $ 55 |
Profit attributable to non-controlling interests | $ 13 | ||
Fideicomiso GFSSLPT, Banco Santander Mexico, S.A. | |||
Subsidiaries | |||
Non-controlling interest | 14 | 41 | |
Other | |||
Subsidiaries | |||
Non-controlling interest | $ 15 | $ 14 |
Non-controlling interests - Cha
Non-controlling interests - Changes in NCI (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Non-controlling interests | |||
Balance at beginning of period | $ 55 | $ 58 | |
Profit attributable to non-controlling interests | $ 13 | ||
Other | (26) | (3) | |
Balance at end of period | $ 29 | $ 55 | $ 58 |
Valuation adjustments - Breakdo
Valuation adjustments - Breakdown by type - Available-for-sale (Details) - MXN ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financial instruments | ||||
Net Valuation Gains (Losses) | $ 1,932 | $ (3,505) | $ (196) | |
Financial assets available-for-sale | 165,742 | 154,644 | ||
Debt instruments. | ||||
Financial instruments | ||||
Valuation Gains | 2,784 | 498 | ||
Valuation Losses | (849) | (3,951) | ||
Net Valuation Gains (Losses) | 1,935 | (3,453) | (192) | |
Financial assets available-for-sale | 164,947 | 154,318 | ||
Equity instruments. | ||||
Financial instruments | ||||
Valuation Gains | 23 | 1 | ||
Valuation Losses | (26) | (53) | ||
Net Valuation Gains (Losses) | (3) | (52) | (4) | |
Financial assets available-for-sale | $ 795 | $ 326 | $ 348 | $ 311 |
Valuation adjustments - Changes
Valuation adjustments - Changes - Available-for-sale (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financial instruments | |||
Balance at beginning of year | $ (2,979) | $ (528) | $ (546) |
Valuation adjustments | 1,932 | (3,505) | (196) |
Amounts reclassified to consolidated income statement | (9) | (120) | 161 |
Income tax | (477) | 1,174 | 53 |
Balance at end of year | (1,533) | (2,979) | (528) |
Debt instruments. | |||
Financial instruments | |||
Balance at beginning of year | (2,953) | (538) | (558) |
Valuation adjustments | 1,935 | (3,453) | (192) |
Amounts reclassified to consolidated income statement | (9) | (120) | 161 |
Income tax | (478) | 1,158 | 51 |
Balance at end of year | (1,505) | (2,953) | (538) |
Equity instruments. | |||
Financial instruments | |||
Balance at beginning of year | (26) | 10 | 12 |
Valuation adjustments | (3) | (52) | (4) |
Income tax | 1 | 16 | 2 |
Balance at end of year | $ (28) | $ (26) | $ 10 |
Valuation adjustments - Cash fl
Valuation adjustments - Cash flow hedges (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Valuation adjustments | ||
Accumulated (loss)/gain on cash flow hedges | $ 302 | $ 1,297 |
Accumulated gain related to discontinued cash flow hedges | 54 | 86 |
Valuation adjustments - cash flow hedges | $ 356 | $ 1,383 |
Shareholders' equity - Share ca
Shareholders' equity - Share capital (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share capital | |||
Number of shares authorised | 88,718,242,628 | 88,718,242,628 | |
Total Par Value | $ 8,086 | $ 8,086 | |
Additional withholding tax percentage | 10.00% | 10.00% | 10.00% |
Annual provision to legal reserve (as a percent) | 10.00% | ||
Percentage of share capital, reserve fund | 100.00% | ||
Profit or loss recognised from treasury shares | $ 0 | ||
Fixed capital | |||
Share capital | |||
Number of shares authorised | 80,855,403,803 | 80,855,403,803 | |
Total Par Value | $ 8,086 | $ 8,086 | |
Fixed capital: Series "F" shares | |||
Share capital | |||
Number of shares authorised | 67,792,912,762 | 67,792,912,762 | |
Total Par Value | $ 6,779 | $ 6,779 | |
Fixed capital: Series "B" shares | |||
Share capital | |||
Number of shares authorised | 13,062,491,041 | 13,062,491,041 | |
Total Par Value | $ 1,307 | $ 1,307 | |
Authorized unsubscribed capital | |||
Share capital | |||
Number of shares authorised | 7,862,838,825 | 7,862,838,825 | |
Authorized unsubscribed capital: Series "F" shares | |||
Share capital | |||
Number of shares authorised | 7,862,838,825 | 7,862,838,825 | |
Series F shares | |||
Share capital | |||
Share capital (as a percent) | 51.00% | ||
Series B shares | |||
Share capital | |||
Share capital (as a percent) | 49.00% | ||
Subsidiaries | |||
Share capital | |||
Annual provision to legal reserve (as a percent) | 5.00% | ||
Percentage of share capital, reserve fund | 20.00% |
Shareholders' equity - Meetings
Shareholders' equity - Meetings (Details) - MXN ($) $ / shares in Units, $ in Millions | Jan. 26, 2018 | Dec. 27, 2017 | May 30, 2017 | Dec. 30, 2016 | Dec. 05, 2016 | May 26, 2016 | Dec. 21, 2015 | May 28, 2015 | Dec. 31, 2017 | Dec. 31, 2016 |
Other capital disclosures | ||||||||||
Accumulated reserves for the payment of dividends | $ 4,676 | $ 4,234 | $ 13,624 | $ 3,844 | $ 3,226 | $ 3,534 | ||||
Share premium | $ 16,956 | $ 16,956 | ||||||||
Merger | Corporate restructuring and mergers | ||||||||||
Other capital disclosures | ||||||||||
Number of shares issued | 175,746,122,497 | |||||||||
Par value | $ 0.10 | |||||||||
Share premium | $ 17,574 | |||||||||
Nominal value after reverse split | $ 3.780782962 | |||||||||
Number of shares cancelled due to reverse split | 264,464,365,125 | |||||||||
Number of shares issue due to reverse split | 6,994,962,889 | |||||||||
Increase in unsubscribed share capital | $ 1,671 | |||||||||
Number of treasury shares cancelled | 207,968,532 | |||||||||
Shares issued and held as treasury shares | 650,000,000 | |||||||||
Fixed capital: Series "F" shares | ||||||||||
Other capital disclosures | ||||||||||
Increase in capital stock | $ 786 | |||||||||
Number of shares issued | 7,862,838,825 | |||||||||
Par value | $ 0.10 | |||||||||
Fixed capital: Series "F" shares | Merger | Corporate restructuring and mergers | ||||||||||
Other capital disclosures | ||||||||||
Number of shares issued | 147,353,683,122 | |||||||||
Fixed capital: Series "B" shares | Merger | Corporate restructuring and mergers | ||||||||||
Other capital disclosures | ||||||||||
Number of shares issued | 28,392,439,375 |
Minimum capital requirements -
Minimum capital requirements - General (Details) | 12 Months Ended |
Dec. 31, 2017item | |
Net Capital | |
Number of net capital parts | 2 |
Number of basic capital portions | 2 |
Percent of Tier I Capital used in calculation of capital deduction for excess of deferred tax assets derived from tax losses | 4.00% |
Percent of Tier I Capital used in calculation of capital deduction for excess of deferred tax assets from temporary differences | 10.00% |
Percentage of assets subject to credit risk | 0.60% |
Assets Subject to Market Risk | |
General Market Risk Charge Coefficient | 22.23% |
Market Risk Charge Coefficient for long net positions and short net positions | 8.00% |
Market Risk Charge Coefficient for foreign currency positions | 12.00% |
Market Risk Charge Coefficient for transactions linked to Mexican inflation and denominated in UDIs | 1.25% |
Previous period used for calculating average consumer price index | 12 months |
Market Risk Charge Coefficient for transactions linked to annual minimum salary growth | 1.25% |
Previous period used for calculating annual minimum salary growth | 11 months |
Equivalent assets factor, Market risk | 12.5 |
Assets Subject to Operational Risk | |
Number of business lines | 8 |
Equivalent assets factor, Operational risk | 12.5 |
Six Business Lines | |
Assets Subject to Operational Risk | |
Number of business lines | 6 |
Revenue period prior to month being calculated | 36 months |
Two Business Lines | |
Assets Subject to Operational Risk | |
Number of business lines | 2 |
Average net balance period prior to month being calculated | 36 months |
Factor applied in calculation for operational risk | 3.5 |
Minimum | |
Assets Subject to Credit Risk | |
Weight factor | 0.00% |
Maximum | |
Assets Subject to Credit Risk | |
Weight factor | 150.00% |
Minimum capital requirements221
Minimum capital requirements - Mexican Banking GAAP (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Capital requirements | ||
Computable capital | $ 115,321 | $ 109,237 |
Core capital | 116,126 | 107,187 |
Supplementary capital | 26,054 | 27,453 |
Deductible items | (36,671) | (35,700) |
Subordinated Additional Tier 1 Capital Notes | 9,812 | 10,297 |
Capital requirements | 58,668 | 55,509 |
Excess of capital requirements | 56,653 | 53,724 |
Risk-weighted assets | 733,346 | 693,964 |
Capital requirements, Market risk | ||
Capital requirements | ||
Capital requirements | 11,039 | 8,642 |
Capital requirements, Credit risk | ||
Capital requirements | ||
Capital requirements | 44,313 | 43,698 |
Capital requirements, Operational risk | ||
Capital requirements | ||
Capital requirements | $ 3,316 | $ 3,169 |
Minimum capital requirements222
Minimum capital requirements - Capital ratios (Details) | Dec. 31, 2017 | Dec. 31, 2016 |
Minimum capital requirements | ||
Net Capital / Required Capital | 1.97 | 1.97 |
Basic Fundamental Capital / Assets subject to Credit, Market and Operating Risk | 10.83% | 10.30% |
Basic Fundamental Capital / Assets subject to Credit, Market and Operating Risk - Minimum capital requirements | 7.60% | 7.30% |
Basic Capital / Assets subject to Credit, Market and Operating Risk | 12.17% | 11.79% |
Basic Capital / Assets subject to Credit, Market and Operating Risk - Minimum capital requirements | 9.10% | 8.80% |
Net Capital / Assets subject to Credit Risk | 20.82% | 20.00% |
Net Capital / Assets subject to Credit, Market and Operating Risk | 15.73% | 15.74% |
Net Capital / Assets subject to Credit, Market and Operating Risk - Minimum capital requirements | 11.10% | 10.80% |
Memorandum accounts - Contingen
Memorandum accounts - Contingent commitments (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Contingent commitments | ||||
Contingent commitments | $ 215,462 | $ 202,723 | ||
Provisions | 6,730 | 7,202 | $ 6,580 | $ 5,988 |
Provisions for off-balance sheet risk | ||||
Contingent commitments | ||||
Provisions | 1,032 | 874 | $ 952 | $ 1,359 |
Available lines of credit cards and non-revolving consumer loans | ||||
Contingent commitments | ||||
Contingent commitments | 136,649 | 140,658 | ||
Guarantees, documentary credits and loan commitments of commercial and public sector loans | ||||
Contingent commitments | ||||
Contingent commitments | 78,381 | 61,753 | ||
Guarantees, documentary credits and loan commitments of commercial loans (SMEs) | ||||
Contingent commitments | ||||
Contingent commitments | $ 432 | $ 312 |
Memorandum accounts - Financial
Memorandum accounts - Financial instruments received as collateral (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial instruments | ||
Financial instruments received as collateral | $ 55,483 | $ 47,578 |
Financial instrument in connection with OTC derivative transactions | Debt instruments. | ||
Financial instruments | ||
Financial instruments received as collateral | 3,783 | 5,215 |
Financial instruments in connection with repurchase agreement transactions | Debt instruments. | ||
Financial instruments | ||
Financial instruments received as collateral | 51,693 | 42,360 |
Financial instruments in connection with securities loans transactions | Equity instruments. | ||
Financial instruments | ||
Financial instruments received as collateral | $ 7 | $ 3 |
Derivatives - Nominal amount225
Derivatives - Nominal amounts and fair values of trading and hedging derivatives - Trading assets (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Trading derivatives | ||
Financial assets | ||
Nominal amount of trading derivative assets | $ 3,555,652 | $ 2,773,781 |
Fair value of trading derivatives | 165,261 | 199,907 |
Trading derivatives | OTC transactions | ||
Financial assets | ||
Fair value of trading derivatives | 165,246 | 199,836 |
Currency risk - Foreign exchange risk | Futures | ||
Financial assets | ||
Nominal amount of trading derivative assets | 6,263 | 577 |
Fair value of trading derivatives | 50 | |
Currency risk - Foreign exchange risk | Forward rate agreements | ||
Financial assets | ||
Nominal amount of trading derivative assets | 117,917 | 129,707 |
Fair value of trading derivatives | 5,188 | 6,636 |
Currency risk - Foreign exchange risk | Forwards: Spot | ||
Financial assets | ||
Nominal amount of trading derivative assets | 54,653 | 30,210 |
Fair value of trading derivatives | 112 | 47 |
Currency risk - Foreign exchange risk | Options | ||
Financial assets | ||
Nominal amount of trading derivative assets | 104,023 | 15,824 |
Fair value of trading derivatives | 2,072 | 383 |
Currency risk - Foreign exchange risk | Currency swaps | ||
Financial assets | ||
Nominal amount of trading derivative assets | 464,667 | 541,363 |
Fair value of trading derivatives | 98,052 | 127,314 |
Interest rate risk | Futures | ||
Financial assets | ||
Nominal amount of trading derivative assets | 1,505 | 5,664 |
Fair value of trading derivatives | 6 | |
Interest rate risk | Options | ||
Financial assets | ||
Nominal amount of trading derivative assets | 125,931 | 142,801 |
Fair value of trading derivatives | 1,339 | 1,698 |
Interest rate risk | Interest rate swaps | ||
Financial assets | ||
Nominal amount of trading derivative assets | 2,663,538 | 1,895,718 |
Fair value of trading derivatives | 57,556 | 62,885 |
Market Index | Futures | ||
Financial assets | ||
Nominal amount of trading derivative assets | 481 | |
Fair value of trading derivatives | 10 | |
Market Index | Options | ||
Financial assets | ||
Nominal amount of trading derivative assets | 7,644 | 10,791 |
Fair value of trading derivatives | 579 | 874 |
Equity price risk | Forward rate agreements | ||
Financial assets | ||
Nominal amount of trading derivative assets | 7,744 | 601 |
Fair value of trading derivatives | 93 | 3 |
Equity price risk | Options | ||
Financial assets | ||
Nominal amount of trading derivative assets | 93 | 44 |
Fair value of trading derivatives | 3 | $ 1 |
Equity price risk | Equity swap | ||
Financial assets | ||
Nominal amount of trading derivative assets | 1,674 | |
Fair value of trading derivatives | $ 267 |
Derivatives - Nominal amount226
Derivatives - Nominal amounts and fair values of trading and hedging derivatives - Hedging assets (Details) $ in Millions, in Millions | Dec. 31, 2017MXV ( ) | Dec. 31, 2017MXN ($) | Dec. 31, 2016MXV ( ) | Dec. 31, 2016MXN ($) |
Financial assets | ||||
Nominal amount of hedging derivative assets | 59,414 | 37,748 | ||
Fair value of hedging derivative assets | 15,116 | $ 15,116 | 15,003 | $ 15,003 |
Cash flow hedges | ||||
Financial assets | ||||
Fair value of hedging derivative assets | $ | 15,057 | 14,910 | ||
Fair value hedges | ||||
Financial assets | ||||
Fair value of hedging derivative assets | $ | $ 59 | $ 93 | ||
Trading derivatives | ||||
Financial assets | ||||
Total Derivative Assets, Nominal | 3,615,066 | 2,811,529 | ||
Total Derivative Assets, Fair Value | 180,377 | 214,910 | ||
Interest rate swaps | Cash flow hedges | Interest rate risk | ||||
Financial assets | ||||
Nominal amount of hedging derivative assets | 4,000 | 1,000 | ||
Fair value of hedging derivative assets | 91 | 2 | ||
Interest rate swaps | Fair value hedges | Interest rate risk | ||||
Financial assets | ||||
Nominal amount of hedging derivative assets | 2,138 | 3,357 | ||
Fair value of hedging derivative assets | 59 | 66 | ||
Currency swaps | Cash flow hedges | Currency risk - Foreign exchange risk | ||||
Financial assets | ||||
Nominal amount of hedging derivative assets | 31,215 | 32,733 | ||
Fair value of hedging derivative assets | 12,577 | 14,908 | ||
Currency swaps | Fair value hedges | Currency risk - Foreign exchange risk | ||||
Financial assets | ||||
Nominal amount of hedging derivative assets | 658 | |||
Fair value of hedging derivative assets | 27 | |||
Forward rate agreements | Cash flow hedges | Currency risk - Foreign exchange risk | ||||
Financial assets | ||||
Nominal amount of hedging derivative assets | 22,061 | |||
Fair value of hedging derivative assets | 2,389 |
Derivatives - Nominal amount227
Derivatives - Nominal amounts and fair values of trading and hedging derivatives - Trading liabilities (Details) - MXV ( ) in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
OTC transactions | ||
Financial liabilities | ||
Fair value of trading derivative liabilities | 171,222 | 205,495 |
Trading derivatives | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 3,519,255 | 2,692,205 |
Fair value of trading derivative liabilities | 171,282 | 205,690 |
Currency risk - Foreign exchange risk | Futures | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 1,031 | |
Currency risk - Foreign exchange risk | Forward rate agreements | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 113,417 | 131,512 |
Fair value of trading derivative liabilities | 5,022 | 6,083 |
Currency risk - Foreign exchange risk | Forwards: Spot | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 35,776 | 67,484 |
Fair value of trading derivative liabilities | 71 | 107 |
Currency risk - Foreign exchange risk | Options | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 123,537 | 16,782 |
Fair value of trading derivative liabilities | 2,655 | 574 |
Currency risk - Foreign exchange risk | Currency swaps | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 431,644 | 403,720 |
Fair value of trading derivative liabilities | 102,065 | 132,697 |
Interest rate risk | Futures | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 3,500 | 47,560 |
Fair value of trading derivative liabilities | 28 | |
Interest rate risk | Options | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 117,167 | 140,299 |
Fair value of trading derivative liabilities | 1,197 | 1,904 |
Interest rate risk | Interest rate swaps | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 2,682,892 | 1,866,944 |
Fair value of trading derivative liabilities | 59,830 | 63,787 |
Market Index | Futures | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 190 | 85 |
Market Index | Forward rate agreements | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 7,742 | 107 |
Fair value of trading derivative liabilities | 90 | 4 |
Market Index | Options | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 3,297 | 16,609 |
Fair value of trading derivative liabilities | 323 | 504 |
Equity price risk | Options | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 93 | 72 |
Fair value of trading derivative liabilities | 3 | 2 |
Equity price risk | Equity swap | ||
Financial liabilities | ||
Fair value of trading derivative liabilities | 26 |
Derivatives - Nominal amount228
Derivatives - Nominal amounts and fair values of trading and hedging derivatives - Hedging liabilities (Details) $ in Millions, in Millions | Dec. 31, 2017MXV ( ) | Dec. 31, 2017MXN ($) | Dec. 31, 2016MXV ( ) | Dec. 31, 2016MXN ($) |
Financial liabilities | ||||
Nominal amount of hedging derivative liabilities | 67,860 | 56,123 | ||
Fair value of hedging derivative liabilities | 11,091 | $ 11,091 | 14,287 | $ 14,287 |
Cash flow hedges | ||||
Financial liabilities | ||||
Fair value of hedging derivative liabilities | $ | 4,519 | 10,560 | ||
Fair value hedges | ||||
Financial liabilities | ||||
Fair value of hedging derivative liabilities | $ | $ 6,572 | $ 3,727 | ||
Trading derivatives | ||||
Financial liabilities | ||||
Total Derivative Liabilities, Nominal | 3,587,115 | 2,748,328 | ||
Total Derivative Liabilities, Fair Value | 182,373 | 219,977 | ||
Forward rate agreements | Cash flow hedges | Currency risk - Foreign exchange risk | ||||
Financial liabilities | ||||
Nominal amount of hedging derivative liabilities | 31,762 | 24,433 | ||
Fair value of hedging derivative liabilities | 720 | 6,318 | ||
Interest rate swaps | Cash flow hedges | Interest rate risk | ||||
Financial liabilities | ||||
Nominal amount of hedging derivative liabilities | 700 | 1,050 | ||
Fair value of hedging derivative liabilities | 20 | |||
Interest rate swaps | Fair value hedges | Interest rate risk | ||||
Financial liabilities | ||||
Nominal amount of hedging derivative liabilities | 1 | 1,124 | ||
Fair value of hedging derivative liabilities | 97 | |||
Currency swaps | Cash flow hedges | Currency risk - Foreign exchange risk | ||||
Financial liabilities | ||||
Nominal amount of hedging derivative liabilities | 10,717 | 13,680 | ||
Fair value of hedging derivative liabilities | 3,799 | 4,222 | ||
Currency swaps | Fair value hedges | Currency risk - Foreign exchange risk | ||||
Financial liabilities | ||||
Nominal amount of hedging derivative liabilities | 24,680 | 15,836 | ||
Fair value of hedging derivative liabilities | 6,572 | 3,630 |
Derivatives - Nominal amount229
Derivatives - Nominal amounts and fair values of trading and hedging derivatives - Collateral provided (Details) - Financial instruments in connection with derivative transactions in organized markets - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial instruments | ||
Collateral provided | $ 2,566 | $ 3,182 |
Cash | Mercado Mexicano de Derivados, S.A. de C.V. (MexDer) | ||
Financial instruments | ||
Collateral provided | 2,216 | 2,771 |
Cash | Chicago Mercantile Exchange | ||
Financial instruments | ||
Collateral provided | $ 350 | 334 |
Cash | Foreign financial Institutions | ||
Financial instruments | ||
Collateral provided | $ 77 |
Derivatives - Nominal amount230
Derivatives - Nominal amounts and fair values of trading and hedging derivatives - Collateral delivered (Details) - Financial instrument in connection with OTC derivative transactions - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Loans and receivables | Loans and advances to credit institutions | ||
Financial instruments | ||
Collateral provided | $ 34,542 | $ 51,414 |
Financial assets held for trading | Debt instruments. | ||
Financial instruments | ||
Collateral provided | 2,964 | 2,670 |
Mexican financial institutions | Loans and receivables | Loans and advances to credit institutions | ||
Financial instruments | ||
Collateral provided | 15,916 | 19,391 |
Mexican financial institutions | Financial assets held for trading | Debt instruments. | ||
Financial instruments | ||
Collateral provided | 2,822 | 2,670 |
Foreign financial Institutions | Loans and receivables | Loans and advances to credit institutions | ||
Financial instruments | ||
Collateral provided | 18,626 | $ 32,023 |
Foreign financial Institutions | Financial assets held for trading | Debt instruments. | ||
Financial instruments | ||
Collateral provided | $ 142 |
Derivatives - Nominal amount231
Derivatives - Nominal amounts and fair values of trading and hedging derivatives - Collateral received (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial instruments | ||
Cash collateral received | $ 45,024 | $ 3,182 |
Financial instrument in connection with OTC derivative transactions | Deposits | ||
Financial instruments | ||
Cash collateral received | 45,024 | 47,821 |
Financial instrument in connection with OTC derivative transactions | Mexican financial institutions | Deposits | ||
Financial instruments | ||
Cash collateral received | 8,425 | 10,106 |
Financial instrument in connection with OTC derivative transactions | Foreign financial Institutions | Deposits | ||
Financial instruments | ||
Cash collateral received | 36,350 | 37,592 |
Financial instrument in connection with OTC derivative transactions | Other | Deposits | ||
Financial instruments | ||
Cash collateral received | $ 249 | $ 123 |
Derivatives - Nominal amount232
Derivatives - Nominal amounts and fair values of trading and hedging derivatives - Memorandum accounts (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Financial instruments | ||
Financial instruments received as collateral | $ 55,483 | $ 47,578 |
Percentage of level of confidence | 97.50% | |
Cumulative net credit risk exposure | $ 385,059 | 370,463 |
Financial instrument in connection with OTC derivative transactions | Debt instruments. | ||
Financial instruments | ||
Financial instruments received as collateral | 3,783 | 5,215 |
Financial instrument in connection with OTC derivative transactions | Mexican financial institutions | Debt instruments. | ||
Financial instruments | ||
Financial instruments received as collateral | $ 3,783 | $ 5,215 |
Interest income and similar 233
Interest income and similar income (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest income and similar income | |||
Cash and balances with the Central Bank | $ 2,081 | $ 1,418 | $ 1,102 |
Loans and advances to credit institutions | 4,804 | 2,832 | 2,102 |
Loans and advances to customers | 72,263 | 59,264 | 50,227 |
Debt instruments | 16,791 | 13,149 | 10,513 |
Hedging derivatives | 1,895 | 703 | 237 |
Other interest income | 168 | 87 | 49 |
Total interest income and similar income | $ 98,002 | $ 77,453 | $ 64,230 |
Interest expenses and simila234
Interest expenses and similar charges (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest expenses and similar charges | |||
Deposits from credit institutions | $ 7,564 | $ 6,145 | $ 6,001 |
Customer deposits | 24,560 | 14,609 | 9,026 |
Marketable debt securities | 3,696 | 2,625 | 1,893 |
Subordinated liabilities | 1,600 | 1,473 | 1,259 |
Hedging derivatives | 129 | 167 | 463 |
Other interest expenses | 4,609 | 3,304 | 2,600 |
Total interest expenses and similar charges | $ 42,158 | $ 28,323 | $ 21,242 |
Dividend income (Details)
Dividend income (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Dividend income | |||
Dividend income | $ 150 | $ 94 | $ 104 |
Financial assets held for trading | |||
Dividend income | |||
Dividend income | 5 | 16 | 37 |
Financial assets available for sale | |||
Dividend income | |||
Dividend income | 145 | 78 | 67 |
NAFTRAC (Exchange-traded fund or ETF) | Financial assets held for trading | |||
Dividend income | |||
Dividend income | 2 | 6 | 14 |
America Movil, S.A.B, de C.V. | Financial assets held for trading | |||
Dividend income | |||
Dividend income | 1 | 1 | 2 |
Grupo Mexico, S.A.B. de C.V. | Financial assets held for trading | |||
Dividend income | |||
Dividend income | 2 | ||
Wal-Mart de Mexico, S.A.B. de C.V. | Financial assets held for trading | |||
Dividend income | |||
Dividend income | 1 | 3 | 6 |
Fomento Economico Mexicano, S.A.B. de C.V. | Financial assets held for trading | |||
Dividend income | |||
Dividend income | 1 | 1 | |
Controladora Prosa, S.A. de C.V. | Financial assets available for sale | |||
Dividend income | |||
Dividend income | 62 | ||
Trans Union de Mexico, S.A. | Financial assets available for sale | |||
Dividend income | |||
Dividend income | 83 | 57 | 51 |
Dun and Bradstreet de Mexico S.A. de C.V. | Financial assets available for sale | |||
Dividend income | |||
Dividend income | 20 | ||
Others | Financial assets held for trading | |||
Dividend income | |||
Dividend income | $ 1 | 5 | 12 |
Others | Financial assets available for sale | |||
Dividend income | |||
Dividend income | $ 1 | $ 16 |
Fee and commission income (Deta
Fee and commission income (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Collection and payment services: | |||
Service charges on deposit accounts | $ 1,046 | $ 951 | $ 896 |
Credit and debit cards | 6,268 | 5,369 | 4,687 |
Checks and others | 252 | 253 | 257 |
Total collection and payment services | 7,566 | 6,573 | 5,840 |
Marketing of non-banking financial products: | |||
Investment funds management | 1,457 | 1,486 | 1,193 |
Capital markets and securities activities | 513 | 439 | 290 |
Collection and payment services | 2,568 | 2,334 | 2,114 |
Insurance | 4,341 | 4,272 | 4,104 |
Financial advisory services | 1,341 | 1,222 | 1,373 |
Total marketing of nonbanking financial products | 10,220 | 9,753 | 9,074 |
Securities services: | |||
Administration and custody | 524 | 528 | 464 |
Total securities services | 524 | 528 | 464 |
Other: | |||
Foreign currency transactions | 1,111 | 1,080 | 866 |
Other fees and commissions | 895 | 836 | 893 |
Total other | 2,006 | 1,916 | 1,759 |
Total fee and commission income | $ 20,316 | $ 18,770 | $ 17,137 |
Fee and commission expenses (De
Fee and commission expenses (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fee and commission expenses | |||
Credit and debit cards | $ 3,250 | $ 2,894 | $ 1,895 |
Checks and others | 25 | 26 | 23 |
Collections and transactional services | 226 | 158 | 123 |
Fund management | 2 | 4 | 25 |
Capital markets and securities activities | 199 | 135 | 102 |
Financial advisory services | 6 | 16 | |
Other fees and commissions | 1,795 | 1,597 | 1,337 |
Total fee and commission expenses | $ 5,503 | $ 4,830 | $ 3,505 |
Gains or losses on financial238
Gains or losses on financial assets and liabilities (net) (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financial instruments | |||
Gains/losses on financial assets and liabilities held for trading, net | $ 3,223 | $ 3,626 | $ 2,405 |
Recognized profit from sale of available-for-sale financial instruments | 9 | 120 | 177 |
Hedging derivatives | 226 | 14 | (78) |
Fair value hedge - hedged items (Note 13) | 341 | 375 | (105) |
Fair value hedge - hedging derivative instruments (Note 13) | (117) | (363) | 23 |
Cash flow hedge inefficiency (Note 13) | 2 | 2 | 4 |
Total | 3,458 | 3,760 | 2,504 |
Debt instruments. | |||
Financial instruments | |||
Gains/losses on financial assets and liabilities held for trading, net | 494 | 784 | 487 |
Equity instruments. | |||
Financial instruments | |||
Gains/losses on financial assets and liabilities held for trading, net | 29 | 109 | 96 |
Trading derivatives | |||
Financial instruments | |||
Gains/losses on financial assets and liabilities held for trading, net | 2,736 | 2,765 | 1,916 |
Other financial instruments | |||
Financial instruments | |||
Gains/losses on financial assets and liabilities held for trading, net | $ (36) | $ (32) | $ (94) |
Other operating income and o239
Other operating income and other operating expenses (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other operating income: | |||
Other operating income | $ 669 | $ 486 | $ 472 |
Other operating income | 669 | 486 | 472 |
Other operating expenses: | |||
IPAB fund contribution | (2,894) | (2,631) | (2,238) |
Other operating expense | (720) | (730) | (772) |
Other operating expense | $ (3,614) | $ (3,361) | $ (3,010) |
Mandatory contributions paid by financial entity (as a percent) | 0.0333% |
Personnel expenses - Breakdown
Personnel expenses - Breakdown (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Personnel expenses | |||
Wages and salaries | $ 6,300 | $ 5,542 | $ 5,211 |
Social security costs | 1,105 | 1,037 | 912 |
Service expense related to defined contribution pension plan | 330 | 300 | 272 |
Service expense related to defined benefit pension plan | 146 | 201 | 188 |
Share-based payments | 283 | 131 | 161 |
Other staff costs | 1,289 | 1,474 | 1,547 |
Bonus and benefits granted to employees | 3,295 | 2,787 | 2,334 |
Total employee benefits expense | $ 12,748 | $ 11,472 | $ 10,625 |
Personnel expenses - Local Prog
Personnel expenses - Local Program (Details) - Local Program $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2012MXN ($)item$ / shares | Sep. 30, 2012 | Dec. 31, 2015MXN ($) | |
Share-based payment arrangement | |||
Compensation plan deferral period | 3 years | ||
Percentage of global public offering | 24.90% | ||
Share price | $ / shares | $ 31.25 | ||
Number of independent objectives linked to achievement incentive | 2 | ||
Percentage of incentive to be paid annually | 33.00% | ||
Maximum percentage of incentive to be paid annually, based upon achievement of each objective | 50.00% | ||
Number of plan payments | 3 | ||
Fair value of compensation plan | $ | $ 396 | ||
Number of shares granted in compensation arrangement | 13,309,760 | ||
Cash-settled expense for services rendered by eligible executive officers | $ | $ 63 |
Personnel expenses - Corporate
Personnel expenses - Corporate performance shares plan 2014 (Details) - Corporate Performance Shares Plan 2014 - MXN ($) $ in Millions | Jul. 01, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2016 |
Share-based payment arrangement | |||||||
Variable remuneration/Deferral period | 3 years | ||||||
Total number of vested shares paid annually (as a percent) | 33.00% | 33.00% | 33.00% | 33.00% | |||
Fair value of share-based compensation plan | $ 49 | ||||||
Equity-settled expense recognized in consolidated income statement | $ 16 | $ 16 | |||||
Forecast | |||||||
Share-based payment arrangement | |||||||
Total number of vested shares paid annually (as a percent) | 33.00% |
Personnel expenses - Long-term
Personnel expenses - Long-term incentive plan 2015 (Details) - Long Term Incentive Plan 2015 - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based payment arrangement | ||
Fair value of share-based compensation plan | $ 86 | |
Equity-settled expense recognized in consolidated income statement | $ 27 | $ 10 |
Personnel expenses - Bonus paym
Personnel expenses - Bonus payment policies (Details) - Bonus Plan - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based payment arrangement | |||
Shares obligation retention period | 1 year | ||
Equity-settled expense recognized in consolidated income statement | $ 325 | $ 105 | $ 166 |
Number of days following the anniversaries of the initial date in which the deferred bonus will be paid | 30 days | ||
Percentage paid in cash | 50.00% | ||
Percentage paid in shares | 50.00% | ||
Executive officers and members of the identified staff whose total variable remuneration is greater than or equal to 2.7 | |||
Share-based payment arrangement | |||
Variable remuneration/Deferral period | 5 years | ||
Immediate Payment Percentage | 40.00% | ||
Deferred Percentage | 60.00% | ||
Executive officers and members of the identified staff whose total variable remuneration is greater than 1.7 and less than 2.6 | |||
Share-based payment arrangement | |||
Variable remuneration/Deferral period | 5 years | ||
Immediate Payment Percentage | 50.00% | ||
Deferred Percentage | 50.00% | ||
Other Beneficiaries | |||
Share-based payment arrangement | |||
Variable remuneration/Deferral period | 3 years | ||
Immediate Payment Percentage | 60.00% | ||
Deferred Percentage | 40.00% | ||
Minimum | |||
Share-based payment arrangement | |||
Variable remuneration/Deferral period | 3 years | ||
Annual vesting percentage | 33.00% | ||
Minimum | Executive officers and members of the identified staff whose total variable remuneration is greater than or equal to 2.7 | |||
Share-based payment arrangement | |||
Variable remuneration | $ 2.7 | ||
Minimum | Executive officers and members of the identified staff whose total variable remuneration is greater than 1.7 and less than 2.6 | |||
Share-based payment arrangement | |||
Variable remuneration | $ 1.7 | ||
Maximum | |||
Share-based payment arrangement | |||
Variable remuneration/Deferral period | 5 years | ||
Annual vesting percentage | 20.00% | ||
Maximum | Executive officers and members of the identified staff whose total variable remuneration is greater than 1.7 and less than 2.6 | |||
Share-based payment arrangement | |||
Variable remuneration | $ 2.7 |
Other general administrative245
Other general administrative expenses (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other general administrative expenses | |||
Maintenance, conservation and repair | $ 1,227 | $ 1,073 | $ 968 |
Technology and systems | 2,790 | 2,555 | 2,334 |
Stationery and supplies | 215 | 197 | 212 |
Advertising and communications | 968 | 901 | 722 |
Rents | 1,963 | 1,839 | 1,836 |
Administrative services | 936 | 926 | 502 |
Taxes other than income tax | 1,454 | 1,360 | 1,280 |
Surveillance and cash courier services | 894 | 699 | 611 |
Insurance premiums | 78 | 82 | 70 |
Travel costs | 293 | 215 | 298 |
Other administrative expenses | 1,871 | 1,336 | 1,322 |
Total | 12,689 | 11,183 | 10,155 |
Audit and tax services | |||
Audit fees and audit-related fees | 72 | 58 | 40 |
Tax fees | 1 | 2 | |
Total | 73 | 58 | $ 42 |
Audit-related fees | $ 14 | $ 8 |
Gains_(losses) on disposal o246
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) | |||
Gains of disposal of tangible assets | $ 6 | $ 20 | $ 7 |
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) | $ 6 | $ 20 | $ 7 |
Other disclosures - Remaining m
Other disclosures - Remaining maturity periods (Details) $ in Millions, in Millions | Dec. 31, 2017MXV ( ) | Dec. 31, 2017MXN ($) | Dec. 31, 2016MXV ( ) | Dec. 31, 2016MXN ($) | Dec. 31, 2015MXN ($) | Dec. 31, 2014MXN ($) |
ASSETS | ||||||
Cash and balances with the Central Bank | $ 57,687 | $ 78,663 | ||||
Financial assets held for trading | 315,570 | 342,582 | ||||
Other financial assets at fair value through profit or loss | 51,705 | 42,340 | ||||
Available-for-sale financial assets | 165,742 | 154,644 | ||||
Loans and receivables | 679,300 | 675,498 | ||||
Fair value of hedging derivative assets | 15,116 | 15,116 | 15,003 | 15,003 | ||
Total financial assets | 1,285,120 | 1,308,730 | ||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities held for trading | 239,725 | 266,828 | ||||
Financial liabilities designated at fair value through profit or loss | 120,653 | 136,860 | ||||
Financial liabilities at amortized cost | 820,431 | 806,091 | ||||
Hedging derivatives | 11,091 | 11,091 | 14,287 | 14,287 | ||
Total financial liabilities | 1,191,900 | 1,224,066 | ||||
Difference (assets less liabilities) | 93,220 | 84,664 | ||||
On demand | ||||||
ASSETS | ||||||
Cash and balances with the Central Bank | 21,539 | 24,887 | ||||
Fair value of hedging derivative assets | 2,375 | |||||
Total financial assets | 49,049 | 40,509 | ||||
LIABILITIES AND EQUITY | ||||||
Hedging derivatives | 6,318 | |||||
Total financial liabilities | 446,685 | 464,443 | ||||
Difference (assets less liabilities) | (397,636) | (423,934) | ||||
1 month | ||||||
ASSETS | ||||||
Cash and balances with the Central Bank | 8,054 | 25,382 | ||||
Fair value of hedging derivative assets | 1 | |||||
Total financial assets | 240,619 | 254,156 | ||||
LIABILITIES AND EQUITY | ||||||
Hedging derivatives | 152 | |||||
Total financial liabilities | 345,271 | 343,020 | ||||
Difference (assets less liabilities) | (104,652) | (88,864) | ||||
3 months | ||||||
ASSETS | ||||||
Cash and balances with the Central Bank | 200 | |||||
Fair value of hedging derivative assets | 4 | |||||
Total financial assets | 59,700 | 73,368 | ||||
LIABILITIES AND EQUITY | ||||||
Hedging derivatives | 23 | |||||
Total financial liabilities | 60,645 | 65,858 | ||||
Difference (assets less liabilities) | (945) | 7,510 | ||||
3 to 12 months | ||||||
ASSETS | ||||||
Cash and balances with the Central Bank | 100 | |||||
Fair value of hedging derivative assets | 12 | |||||
Total financial assets | 206,116 | 161,453 | ||||
LIABILITIES AND EQUITY | ||||||
Hedging derivatives | 145 | 138 | ||||
Total financial liabilities | 90,182 | 60,355 | ||||
Difference (assets less liabilities) | 115,934 | 101,098 | ||||
1 to 3 years | ||||||
ASSETS | ||||||
Fair value of hedging derivative assets | 7,707 | 9,306 | ||||
Total financial assets | 279,259 | 319,703 | ||||
LIABILITIES AND EQUITY | ||||||
Hedging derivatives | 2,070 | 499 | ||||
Total financial liabilities | 46,016 | 66,107 | ||||
Difference (assets less liabilities) | 233,243 | 253,596 | ||||
3 to 5 years | ||||||
ASSETS | ||||||
Fair value of hedging derivative assets | 5,017 | 50 | ||||
Total financial assets | 165,733 | 142,922 | ||||
LIABILITIES AND EQUITY | ||||||
Hedging derivatives | 1,630 | 1,863 | ||||
Total financial liabilities | 63,134 | 44,367 | ||||
Difference (assets less liabilities) | 102,599 | 98,555 | ||||
More than 5 years/2023 and thereafter | ||||||
ASSETS | ||||||
Cash and balances with the Central Bank | 28,094 | 28,094 | ||||
Fair value of hedging derivative assets | 17 | 5,630 | ||||
Total financial assets | 284,644 | 316,619 | ||||
LIABILITIES AND EQUITY | ||||||
Hedging derivatives | 7,246 | 5,294 | ||||
Total financial liabilities | 139,967 | 179,916 | ||||
Difference (assets less liabilities) | 144,677 | 136,703 | ||||
Debt instruments. | ||||||
ASSETS | ||||||
Financial assets held for trading | 147,747 | 140,853 | ||||
Available-for-sale financial assets | 164,947 | 154,318 | ||||
Loans and receivables | 10,758 | 11,472 | ||||
Total financial assets | 323,452 | 306,643 | ||||
Debt instruments. | 1 month | ||||||
ASSETS | ||||||
Financial assets held for trading | 67,280 | 31,784 | ||||
Available-for-sale financial assets | 18,693 | 34,360 | ||||
Debt instruments. | 3 months | ||||||
ASSETS | ||||||
Financial assets held for trading | 2,551 | 5,697 | ||||
Available-for-sale financial assets | 59 | 1,985 | ||||
Debt instruments. | 3 to 12 months | ||||||
ASSETS | ||||||
Financial assets held for trading | 15,455 | 9,197 | ||||
Available-for-sale financial assets | 35,567 | 581 | ||||
Loans and receivables | 904 | |||||
Debt instruments. | 1 to 3 years | ||||||
ASSETS | ||||||
Financial assets held for trading | 23,077 | 50,667 | ||||
Available-for-sale financial assets | 58,067 | 76,096 | ||||
Debt instruments. | 3 to 5 years | ||||||
ASSETS | ||||||
Financial assets held for trading | 32,379 | 33,703 | ||||
Available-for-sale financial assets | 21,987 | 16,358 | ||||
Loans and receivables | 1,378 | |||||
Debt instruments. | More than 5 years/2023 and thereafter | ||||||
ASSETS | ||||||
Financial assets held for trading | 7,005 | 9,805 | ||||
Available-for-sale financial assets | 30,574 | 24,938 | ||||
Loans and receivables | 9,380 | 10,568 | ||||
Equity instruments. | ||||||
ASSETS | ||||||
Financial assets held for trading | 2,562 | 1,822 | ||||
Available-for-sale financial assets | 795 | 326 | $ 348 | $ 311 | ||
Total financial assets | 3,357 | 2,148 | ||||
Equity instruments. | On demand | ||||||
ASSETS | ||||||
Financial assets held for trading | 2,562 | 1,822 | ||||
Equity instruments. | More than 5 years/2023 and thereafter | ||||||
ASSETS | ||||||
Available-for-sale financial assets | 795 | 326 | ||||
Trading derivatives | ||||||
ASSETS | ||||||
Financial assets held for trading | 165,261 | 199,907 | ||||
Trading derivatives | On demand | ||||||
ASSETS | ||||||
Financial assets held for trading | 9,118 | 100 | ||||
Trading derivatives | 1 month | ||||||
ASSETS | ||||||
Financial assets held for trading | 2,738 | 2,357 | ||||
Trading derivatives | 3 months | ||||||
ASSETS | ||||||
Financial assets held for trading | 4,223 | 8,947 | ||||
Trading derivatives | 3 to 12 months | ||||||
ASSETS | ||||||
Financial assets held for trading | 11,273 | 18,608 | ||||
Trading derivatives | 1 to 3 years | ||||||
ASSETS | ||||||
Financial assets held for trading | 25,527 | 35,245 | ||||
Trading derivatives | 3 to 5 years | ||||||
ASSETS | ||||||
Financial assets held for trading | 28,714 | 23,864 | ||||
Trading derivatives | More than 5 years/2023 and thereafter | ||||||
ASSETS | ||||||
Financial assets held for trading | 83,668 | 110,786 | ||||
Loans and advances to credit institutions | ||||||
ASSETS | ||||||
Other financial assets at fair value through profit or loss | 46,087 | 37,831 | ||||
Loans and receivables | 59,122 | 82,388 | ||||
Total financial assets | 105,209 | 120,219 | ||||
Loans and advances to credit institutions | 1 month | ||||||
ASSETS | ||||||
Other financial assets at fair value through profit or loss | 46,087 | 37,831 | ||||
Loans and receivables | 59,122 | 82,293 | ||||
Loans and advances to credit institutions | 3 to 5 years | ||||||
ASSETS | ||||||
Loans and receivables | 95 | |||||
Loans and advances to customers | ||||||
ASSETS | ||||||
Other financial assets at fair value through profit or loss | 5,618 | 4,509 | ||||
Loans and receivables | 609,420 | 581,638 | ||||
Total financial assets | 615,038 | 586,147 | ||||
Loans and advances to customers | On demand | ||||||
ASSETS | ||||||
Loans and receivables | 13,455 | 13,700 | ||||
Loans and advances to customers | 1 month | ||||||
ASSETS | ||||||
Other financial assets at fair value through profit or loss | 5,618 | 4,509 | ||||
Loans and receivables | 33,027 | 35,639 | ||||
Loans and advances to customers | 3 months | ||||||
ASSETS | ||||||
Loans and receivables | 52,867 | 56,535 | ||||
Loans and advances to customers | 3 to 12 months | ||||||
ASSETS | ||||||
Loans and receivables | 143,821 | 132,051 | ||||
Loans and advances to customers | 1 to 3 years | ||||||
ASSETS | ||||||
Loans and receivables | 164,881 | 148,389 | ||||
Loans and advances to customers | 3 to 5 years | ||||||
ASSETS | ||||||
Loans and receivables | 76,258 | 68,852 | ||||
Loans and advances to customers | More than 5 years/2023 and thereafter | ||||||
ASSETS | ||||||
Loans and receivables | 125,111 | 126,472 | ||||
Trading derivatives | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities held for trading | 171,282 | 205,690 | ||||
Trading derivatives | On demand | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities held for trading | 9,320 | 464 | ||||
Trading derivatives | 1 month | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities held for trading | 2,333 | 4,539 | ||||
Trading derivatives | 3 months | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities held for trading | 3,059 | 4,680 | ||||
Trading derivatives | 3 to 12 months | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities held for trading | 13,769 | 20,777 | ||||
Trading derivatives | 1 to 3 years | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities held for trading | 26,343 | 36,497 | ||||
Trading derivatives | 3 to 5 years | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities held for trading | 25,818 | 27,166 | ||||
Trading derivatives | More than 5 years/2023 and thereafter | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities held for trading | 90,640 | 111,567 | ||||
Short positions | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities held for trading | 68,443 | 61,138 | ||||
Short positions | 1 month | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities held for trading | 68,443 | 61,138 | ||||
Deposits | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities at amortized cost | 608,776 | 572,005 | ||||
Deposits - Central banks | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities designated at fair value through profit or loss | 22,417 | 15,479 | ||||
Deposits - Central banks | 1 month | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities designated at fair value through profit or loss | 22,417 | 15,025 | ||||
Deposits - Central banks | 3 months | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities designated at fair value through profit or loss | 403 | |||||
Deposits - Central banks | 3 to 12 months | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities designated at fair value through profit or loss | 51 | |||||
Deposits - Credit institutions | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities designated at fair value through profit or loss | 5,942 | 25,155 | ||||
Financial liabilities at amortized cost | 76,515 | 99,322 | ||||
Deposits - Credit institutions | On demand | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities at amortized cost | 14,828 | 39,428 | ||||
Deposits - Credit institutions | 1 month | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities designated at fair value through profit or loss | 5,942 | 25,155 | ||||
Financial liabilities at amortized cost | 35,815 | 15,871 | ||||
Deposits - Credit institutions | 3 months | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities at amortized cost | 2,127 | 22,331 | ||||
Deposits - Credit institutions | 3 to 12 months | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities at amortized cost | 2,368 | 2,591 | ||||
Deposits - Credit institutions | 1 to 3 years | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities at amortized cost | 11,094 | 14,070 | ||||
Deposits - Credit institutions | 3 to 5 years | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities at amortized cost | 7,475 | 5,031 | ||||
Deposits - Credit institutions | More than 5 years/2023 and thereafter | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities at amortized cost | 2,808 | |||||
Deposits - Customers | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities designated at fair value through profit or loss | 81,790 | 83,891 | ||||
Financial liabilities at amortized cost | 608,776 | 572,005 | ||||
Total financial liabilities | 690,566 | 655,896 | ||||
Deposits - Customers | On demand | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities at amortized cost | 422,495 | 418,228 | ||||
Deposits - Customers | 1 month | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities designated at fair value through profit or loss | 81,009 | |||||
Financial liabilities at amortized cost | 102,395 | 101,303 | ||||
Deposits - Customers | 3 months | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities designated at fair value through profit or loss | 781 | |||||
Financial liabilities at amortized cost | 39,643 | 28,969 | ||||
Deposits - Customers | 3 to 12 months | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities at amortized cost | 38,355 | 15,938 | ||||
Deposits - Customers | 1 to 3 years | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities at amortized cost | 3,060 | 2,865 | ||||
Deposits - Customers | 3 to 5 years | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities at amortized cost | 1,939 | 2,067 | ||||
Deposits - Customers | More than 5 years/2023 and thereafter | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities at amortized cost | 889 | 2,635 | ||||
Customer deposits - Repurchase agreements | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities designated at fair value through profit or loss | 81,790 | 83,891 | ||||
Customer deposits - Repurchase agreements | 1 month | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities designated at fair value through profit or loss | 83,157 | |||||
Customer deposits - Repurchase agreements | 3 months | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities designated at fair value through profit or loss | 734 | |||||
Marketable debt securities | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities designated at fair value through profit or loss | 10,504 | 12,335 | ||||
Financial liabilities at amortized cost | 85,792 | 77,668 | ||||
Total financial liabilities | 96,296 | 90,003 | ||||
Marketable debt securities | 1 month | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities designated at fair value through profit or loss | 586 | 92 | ||||
Financial liabilities at amortized cost | 20,138 | 19,493 | ||||
Marketable debt securities | 3 months | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities designated at fair value through profit or loss | 1,146 | 1,142 | ||||
Financial liabilities at amortized cost | 7,583 | 5,506 | ||||
Marketable debt securities | 3 to 12 months | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities designated at fair value through profit or loss | 4,907 | 2,476 | ||||
Financial liabilities at amortized cost | 29,734 | 17,447 | ||||
Marketable debt securities | 1 to 3 years | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities designated at fair value through profit or loss | 3,368 | 6,085 | ||||
Financial liabilities at amortized cost | 47 | 6,014 | ||||
Marketable debt securities | 3 to 5 years | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities designated at fair value through profit or loss | 497 | 2,540 | ||||
Financial liabilities at amortized cost | 25,141 | 5,700 | ||||
Marketable debt securities | More than 5 years/2023 and thereafter | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities at amortized cost | 3,149 | 23,508 | ||||
Subordinated liabilities | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities at amortized cost | 35,885 | 37,576 | ||||
Subordinated liabilities | 1 month | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities at amortized cost | 650 | 664 | ||||
Subordinated liabilities | More than 5 years/2023 and thereafter | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities at amortized cost | 35,235 | 36,912 | ||||
Other financial liabilities | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities at amortized cost | 13,463 | 19,520 | ||||
Other financial liabilities | On demand | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities at amortized cost | 42 | 5 | ||||
Other financial liabilities | 1 month | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities at amortized cost | 5,543 | 16,431 | ||||
Other financial liabilities | 3 months | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities at amortized cost | 6,306 | 2,070 | ||||
Other financial liabilities | 3 to 12 months | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities at amortized cost | 904 | 937 | ||||
Other financial liabilities | 1 to 3 years | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities at amortized cost | 34 | $ 77 | ||||
Other financial liabilities | 3 to 5 years | ||||||
LIABILITIES AND EQUITY | ||||||
Financial liabilities at amortized cost | $ 634 |
Other disclosures - Undiscounte
Other disclosures - Undiscounted contractual maturity periods (Details) - Financial liabilities at amortized cost - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | $ 873,046 | $ 855,428 |
On demand | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 437,365 | 457,661 |
1 month | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 166,276 | 154,854 |
3 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 58,570 | 60,752 |
3 to 12 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 80,686 | 42,645 |
1 to 3 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 25,856 | 32,755 |
3 to 5 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 45,078 | 20,702 |
More than 5 years/2023 and thereafter | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 59,215 | 86,059 |
Deposits - Credit institutions | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 84,804 | 102,513 |
Deposits - Credit institutions | On demand | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 14,828 | 39,428 |
Deposits - Credit institutions | 1 month | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 36,126 | 16,047 |
Deposits - Credit institutions | 3 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 2,518 | 22,718 |
Deposits - Credit institutions | 3 to 12 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 3,820 | 3,399 |
Deposits - Credit institutions | 1 to 3 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 13,721 | 15,511 |
Deposits - Credit institutions | 3 to 5 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 8,739 | 5,410 |
Deposits - Credit institutions | More than 5 years/2023 and thereafter | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 5,052 | |
Deposits - Customers | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 614,586 | 575,446 |
Deposits - Customers | On demand | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 422,495 | 418,228 |
Deposits - Customers | 1 month | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 103,171 | 101,736 |
Deposits - Customers | 3 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 40,737 | 29,421 |
Deposits - Customers | 3 to 12 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 40,802 | 16,773 |
Deposits - Customers | 1 to 3 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 3,770 | 3,436 |
Deposits - Customers | 3 to 5 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 2,286 | 2,422 |
Deposits - Customers | More than 5 years/2023 and thereafter | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 1,325 | 3,430 |
Marketable debt securities | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 99,063 | 93,301 |
Marketable debt securities | 1 month | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 20,589 | 19,788 |
Marketable debt securities | 3 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 8,617 | 6,167 |
Marketable debt securities | 3 to 12 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 33,392 | 19,844 |
Marketable debt securities | 1 to 3 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 3,618 | 9,219 |
Marketable debt securities | 3 to 5 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 28,706 | 8,358 |
Marketable debt securities | More than 5 years/2023 and thereafter | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 4,141 | 29,925 |
Subordinated liabilities | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 61,130 | 64,648 |
Subordinated liabilities | 1 month | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 847 | 852 |
Subordinated liabilities | 3 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 392 | 376 |
Subordinated liabilities | 3 to 12 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 1,768 | 1,692 |
Subordinated liabilities | 1 to 3 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 4,713 | 4,512 |
Subordinated liabilities | 3 to 5 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 4,713 | 4,512 |
Subordinated liabilities | More than 5 years/2023 and thereafter | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 48,697 | 52,704 |
Other financial liabilities | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 13,463 | 19,520 |
Other financial liabilities | On demand | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 42 | 5 |
Other financial liabilities | 1 month | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 5,543 | 16,431 |
Other financial liabilities | 3 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 6,306 | 2,070 |
Other financial liabilities | 3 to 12 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 904 | 937 |
Other financial liabilities | 1 to 3 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 34 | $ 77 |
Other financial liabilities | 3 to 5 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | $ 634 |
Other disclosures - Foreign cur
Other disclosures - Foreign currency balances (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Foreign currency balances | |||
Assets. | $ 1,329,191 | $ 1,350,937 | $ 1,175,834 |
Liabilities | 1,213,781 | 1,245,710 | $ 1,068,076 |
Marketable debt securities | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 27,508 | 22,942 | |
Subordinated liabilities | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 35,926 | 37,635 | |
Trading derivatives | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 48,926 | 13,201 | |
Deposits - Credit institutions | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 4,527 | 38,113 | |
Deposits - Customers | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 105,929 | 116,706 | |
Other financial liabilities | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 2,328 | 5,730 | |
Provisions | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 1 | ||
Other Liabilities | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 1,221 | 1,049 | |
Cash and balances with the Central Bank | Foreign currency | |||
Foreign currency balances | |||
Assets. | 2,987 | 2,110 | |
Debt instruments. | Foreign currency | |||
Foreign currency balances | |||
Assets. | 122,786 | 86,253 | |
Loans and advances to credit institutions | Foreign currency | |||
Foreign currency balances | |||
Assets. | 35,898 | 60,590 | |
Loans and advances to customers | Foreign currency | |||
Foreign currency balances | |||
Assets. | 69,879 | 92,198 | |
Other Assets. | Foreign currency | |||
Foreign currency balances | |||
Assets. | $ 561 | $ 456 |
Other disclosures - Fair value
Other disclosures - Fair value of assets not measured in fair value (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets | ||
Financial assets | $ 1,285,120 | $ 1,308,730 |
Loans and advances to credit institutions | ||
Financial assets | ||
Financial assets | 105,209 | 120,219 |
Loans and advances to customers | ||
Financial assets | ||
Financial assets | 615,038 | 586,147 |
Debt instruments. | ||
Financial assets | ||
Financial assets | 323,452 | 306,643 |
Financial assets at amortised cost, category | Balances with the Central Bank | ||
Financial assets | ||
Financial assets | 36,148 | 53,776 |
Financial assets at amortised cost, category | Loans and advances to credit institutions | ||
Financial assets | ||
Financial assets | 59,122 | 82,388 |
Financial assets at amortised cost, category | Loans and advances to customers | ||
Financial assets | ||
Financial assets | 609,420 | 581,638 |
Financial assets at amortised cost, category | Debt instruments. | ||
Financial assets | ||
Financial assets | 10,758 | 11,472 |
Not measured at fair value in statement of financial position but for which fair value is disclosed | Financial assets at amortised cost, category | Balances with the Central Bank | ||
Financial assets | ||
Financial assets | 36,148 | 53,776 |
Not measured at fair value in statement of financial position but for which fair value is disclosed | Financial assets at amortised cost, category | Loans and advances to credit institutions | ||
Financial assets | ||
Financial assets | 59,122 | 82,387 |
Not measured at fair value in statement of financial position but for which fair value is disclosed | Financial assets at amortised cost, category | Loans and advances to customers | ||
Financial assets | ||
Financial assets | 639,300 | 605,950 |
Not measured at fair value in statement of financial position but for which fair value is disclosed | Financial assets at amortised cost, category | Debt instruments. | ||
Financial assets | ||
Financial assets | 10,758 | 11,472 |
Level 1 | Not measured at fair value in statement of financial position but for which fair value is disclosed | Financial assets at amortised cost, category | Balances with the Central Bank | ||
Financial assets | ||
Financial assets | 36,148 | 53,776 |
Level 1 | Not measured at fair value in statement of financial position but for which fair value is disclosed | Financial assets at amortised cost, category | Loans and advances to credit institutions | ||
Financial assets | ||
Financial assets | 34,542 | 51,491 |
Level 1 | Not measured at fair value in statement of financial position but for which fair value is disclosed | Financial assets at amortised cost, category | Loans and advances to customers | ||
Financial assets | ||
Financial assets | 2,587 | 3,214 |
Level 3 | Not measured at fair value in statement of financial position but for which fair value is disclosed | Financial assets at amortised cost, category | Loans and advances to credit institutions | ||
Financial assets | ||
Financial assets | 24,580 | 30,896 |
Level 3 | Not measured at fair value in statement of financial position but for which fair value is disclosed | Financial assets at amortised cost, category | Loans and advances to customers | ||
Financial assets | ||
Financial assets | 636,713 | 602,736 |
Level 3 | Not measured at fair value in statement of financial position but for which fair value is disclosed | Financial assets at amortised cost, category | Debt instruments. | ||
Financial assets | ||
Financial assets | $ 10,758 | $ 11,472 |
Other disclosures - Fair val251
Other disclosures - Fair value of liabilities not measured in fair value (Details) $ in Millions, $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2017MXN ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016MXN ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015MXN ($) |
Financial liabilities | ||||||
Financial liabilities | $ 1,191,900 | $ 1,224,066 | ||||
Deposits - Customers | ||||||
Financial liabilities | ||||||
Financial liabilities | 690,566 | 655,896 | ||||
Marketable debt securities | ||||||
Financial liabilities | ||||||
Financial liabilities | 96,296 | 90,003 | ||||
Financial liabilities at amortized cost | Deposits - Credit institutions | ||||||
Financial liabilities | ||||||
Financial liabilities | 76,515 | 99,322 | ||||
Financial liabilities at amortized cost | Deposits - Customers | ||||||
Financial liabilities | ||||||
Financial liabilities | 608,776 | 572,005 | ||||
Financial liabilities at amortized cost | Marketable debt securities | ||||||
Financial liabilities | ||||||
Financial liabilities | 85,792 | 77,668 | $ 74,826 | |||
Financial liabilities at amortized cost | Subordinated liabilities | ||||||
Financial liabilities | ||||||
Financial liabilities | $ 1,825 | 35,885 | $ 1,822 | 37,576 | $ 1,321 | |
Financial liabilities at amortized cost | Other financial liabilities | ||||||
Financial liabilities | ||||||
Financial liabilities | 13,463 | 19,520 | ||||
Not measured at fair value in statement of financial position but for which fair value is disclosed | Financial liabilities at amortized cost | Deposits - Credit institutions | ||||||
Financial liabilities | ||||||
Financial liabilities | 76,461 | 98,845 | ||||
Not measured at fair value in statement of financial position but for which fair value is disclosed | Financial liabilities at amortized cost | Deposits - Customers | ||||||
Financial liabilities | ||||||
Financial liabilities | 608,459 | 573,487 | ||||
Not measured at fair value in statement of financial position but for which fair value is disclosed | Financial liabilities at amortized cost | Marketable debt securities | ||||||
Financial liabilities | ||||||
Financial liabilities | 86,498 | 77,327 | ||||
Not measured at fair value in statement of financial position but for which fair value is disclosed | Financial liabilities at amortized cost | Subordinated liabilities | ||||||
Financial liabilities | ||||||
Financial liabilities | 37,434 | 36,910 | ||||
Not measured at fair value in statement of financial position but for which fair value is disclosed | Financial liabilities at amortized cost | Other financial liabilities | ||||||
Financial liabilities | ||||||
Financial liabilities | 13,463 | 19,520 | ||||
Level 1 | Not measured at fair value in statement of financial position but for which fair value is disclosed | Financial liabilities at amortized cost | Deposits - Credit institutions | ||||||
Financial liabilities | ||||||
Financial liabilities | 31,157 | 33,474 | ||||
Level 1 | Not measured at fair value in statement of financial position but for which fair value is disclosed | Financial liabilities at amortized cost | Deposits - Customers | ||||||
Financial liabilities | ||||||
Financial liabilities | 13,867 | 14,456 | ||||
Level 1 | Not measured at fair value in statement of financial position but for which fair value is disclosed | Financial liabilities at amortized cost | Marketable debt securities | ||||||
Financial liabilities | ||||||
Financial liabilities | 20,330 | 20,245 | ||||
Level 1 | Not measured at fair value in statement of financial position but for which fair value is disclosed | Financial liabilities at amortized cost | Subordinated liabilities | ||||||
Financial liabilities | ||||||
Financial liabilities | 37,434 | 36,910 | ||||
Level 1 | Not measured at fair value in statement of financial position but for which fair value is disclosed | Financial liabilities at amortized cost | Other financial liabilities | ||||||
Financial liabilities | ||||||
Financial liabilities | 13,463 | 19,520 | ||||
Level 2 | Not measured at fair value in statement of financial position but for which fair value is disclosed | Financial liabilities at amortized cost | Deposits - Credit institutions | ||||||
Financial liabilities | ||||||
Financial liabilities | 42,988 | 62,750 | ||||
Level 2 | Not measured at fair value in statement of financial position but for which fair value is disclosed | Financial liabilities at amortized cost | Deposits - Customers | ||||||
Financial liabilities | ||||||
Financial liabilities | 594,592 | 559,031 | ||||
Level 2 | Not measured at fair value in statement of financial position but for which fair value is disclosed | Financial liabilities at amortized cost | Marketable debt securities | ||||||
Financial liabilities | ||||||
Financial liabilities | 66,168 | 57,082 | ||||
Level 3 | Not measured at fair value in statement of financial position but for which fair value is disclosed | Financial liabilities at amortized cost | Deposits - Credit institutions | ||||||
Financial liabilities | ||||||
Financial liabilities | $ 2,316 | $ 2,621 |
Other disclosures - Restriction
Other disclosures - Restrictions (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other disclosures | ||
Legal reserve | $ 10,683 | $ 10,399 |
Statutory reserve on individual basis | $ 8,086 | $ 8,086 |
Operating Segment (Details)
Operating Segment (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017MXN ($) | Dec. 31, 2016MXN ($)segment | Dec. 31, 2015MXN ($)segment | Dec. 31, 2014segment | |
Operating segments | ||||
Number of segments | segment | 3 | 3 | 3 | |
Income statement and other significant data | ||||
Net interest income | $ 55,844 | $ 49,130 | $ 42,988 | |
Dividend income | 150 | 94 | 104 | |
Net fee and commission income (expense) | 14,813 | 13,940 | 13,632 | |
Gains/(losses) on financial assets and liabilities and exchange differences (net) | 3,464 | 3,762 | 2,510 | |
Other operating income (expenses) | (2,945) | (2,875) | (2,538) | |
TOTAL INCOME | 71,326 | 64,051 | 56,696 | |
Administrative expenses | (25,437) | (22,655) | (20,780) | |
Depreciation and amortization | (2,533) | (2,058) | (1,863) | |
Impairment losses on financial assets (net) | (18,820) | (16,661) | (16,041) | |
Provisions (net) | (437) | (881) | 258 | |
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) | 6 | 20 | 7 | |
Gains/(losses) on disposal of non-current assets not classified as discontinued operations | 69 | 71 | 91 | |
OPERATING PROFIT BEFORE TAX | 24,174 | 21,887 | 18,368 | |
Tax income | (5,496) | (5,351) | (4,304) | |
PROFIT FOR THE YEAR | 18,678 | 16,536 | 14,064 | |
Profit attributable to the Parent | 18,678 | 16,536 | 14,051 | |
Profit attributable to non-controlling interests | 13 | |||
Total assets | 1,329,191 | 1,350,937 | 1,175,834 | |
Total liabilities | 1,213,781 | 1,245,710 | 1,068,076 | |
Retail Banking | ||||
Income statement and other significant data | ||||
Net interest income | 47,969 | 42,277 | 37,514 | |
Net fee and commission income (expense) | 13,047 | 12,211 | 11,839 | |
Gains/(losses) on financial assets and liabilities and exchange differences (net) | 786 | 721 | 866 | |
Other operating income (expenses) | (2,136) | (2,104) | (2,101) | |
TOTAL INCOME | 59,666 | 53,105 | 48,118 | |
Administrative expenses | (22,377) | (19,955) | (18,647) | |
Depreciation and amortization | (2,317) | (1,890) | (1,759) | |
Impairment losses on financial assets (net) | (17,763) | (15,955) | (15,081) | |
Provisions (net) | (98) | (75) | 265 | |
OPERATING PROFIT BEFORE TAX | 17,111 | 15,230 | 12,896 | |
Total assets | 551,250 | 519,589 | 473,399 | |
Total liabilities | 521,787 | 475,625 | 404,431 | |
Global Corporate Banking | ||||
Income statement and other significant data | ||||
Net interest income | 5,295 | 4,899 | 4,060 | |
Dividend income | 5 | 24 | ||
Net fee and commission income (expense) | 1,758 | 1,749 | 1,786 | |
Gains/(losses) on financial assets and liabilities and exchange differences (net) | 2,532 | 2,682 | 1,060 | |
Other operating income (expenses) | (505) | (649) | (466) | |
TOTAL INCOME | 9,085 | 8,681 | 6,464 | |
Administrative expenses | (2,759) | (2,440) | (1,956) | |
Depreciation and amortization | (204) | (158) | (94) | |
Impairment losses on financial assets (net) | (1,057) | (706) | (960) | |
Provisions (net) | 20 | (29) | ||
OPERATING PROFIT BEFORE TAX | 5,085 | 5,348 | 3,454 | |
Total assets | 531,295 | 588,596 | 524,098 | |
Total liabilities | 521,284 | 564,131 | 414,004 | |
Corporate Activities | ||||
Income statement and other significant data | ||||
Net interest income | 2,580 | 1,954 | 1,414 | |
Dividend income | 145 | 94 | 80 | |
Net fee and commission income (expense) | 8 | (20) | 7 | |
Gains/(losses) on financial assets and liabilities and exchange differences (net) | 146 | 359 | 584 | |
Other operating income (expenses) | (304) | (122) | 29 | |
TOTAL INCOME | 2,575 | 2,265 | 2,114 | |
Administrative expenses | (301) | (260) | (177) | |
Depreciation and amortization | (12) | (10) | (10) | |
Provisions (net) | (359) | (777) | (7) | |
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) | 6 | 20 | 7 | |
Gains/(losses) on disposal of non-current assets not classified as discontinued operations | 69 | 71 | 91 | |
OPERATING PROFIT BEFORE TAX | 1,978 | 1,309 | 2,018 | |
Total assets | 246,646 | 242,752 | 178,337 | |
Total liabilities | $ 170,710 | $ 205,954 | $ 249,641 |
Related parties - Assets (Detai
Related parties - Assets (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Santander Issuances, S.A. | ||
Related parties | ||
Other assets | $ 251 | |
Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander Mexico | ||
Related parties | ||
Other assets | $ 21 | |
Abbey National Treasury Services plc | ||
Related parties | ||
Other assets | 76 | |
Grupo Financiero Santander Mexico, S.A.B. de C.V. | ||
Related parties | ||
Available for sale financial assets | 248 | 233 |
Isban Mexico, S.A. de C.V. | ||
Related parties | ||
Other intangible assets | 2,811 | 2,364 |
Produban Servicios Informaticos Generales, S.L. | ||
Related parties | ||
Other intangible assets | 533 | 478 |
Ingenieria de Software Bancario, S.L. | ||
Related parties | ||
Other intangible assets | 443 | 412 |
Santander Back-Offices Globales Mayoristas, S.A. | ||
Related parties | ||
Other intangible assets | 74 | 74 |
Isban Brasil S.A. | ||
Related parties | ||
Other intangible assets | 11 | 11 |
Zurich Santander Seguros Mexico, S.A. | ||
Related parties | ||
Other assets | 1,053 | 976 |
SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversion | ||
Related parties | ||
Other assets | 156 | 171 |
Other related parties | ||
Related parties | ||
Other assets | 12 | 25 |
Trading derivatives | Banco Santander, S.A. (Spain) | ||
Related parties | ||
Financial assets held for trading | 73,593 | 90,418 |
Trading derivatives | Abbey National Treasury Services plc | ||
Related parties | ||
Financial assets held for trading | 12 | 2,352 |
Trading derivatives | Other related parties | ||
Related parties | ||
Financial assets held for trading | 2 | 2 |
Loans and advances to credit institutions | Banco Santander, S.A. (Spain) | ||
Related parties | ||
Loans and receivables | 997 | 281 |
Loans and advances to credit institutions | Other related parties | ||
Related parties | ||
Other financial assets at fair value through profit or loss | 1 | |
Loans and advances to customers | Santander Capital Structuring S.A. de C.V. | ||
Related parties | ||
Loans and receivables | 1,176 | |
Loans and advances to customers | Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander Mexico | ||
Related parties | ||
Other financial assets at fair value through profit or loss | 2,090 | 1,283 |
Loans and advances to customers | Banco Santander Rio, S.A. | ||
Related parties | ||
Loans and receivables | 194 | 223 |
Loans and advances to customers | Produban Servicios Informaticos Generales, S.L. | ||
Related parties | ||
Loans and receivables | 1,674 | 1,154 |
Loans and advances to customers | Key management personnel | ||
Related parties | ||
Loans and receivables | $ 3,666 | $ 1,471 |
Related parties - Liabilities (
Related parties - Liabilities (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Banco Santander, S.A. (Spain) | ||
Related parties | ||
Other liabilities | $ 1,733 | |
Isban Mexico, S.A. de C.V. | ||
Related parties | ||
Other liabilities | $ 184 | 188 |
Produban Servicios Informaticos Generales, S.L. | ||
Related parties | ||
Other liabilities | 409 | 352 |
Santander Back-Offices Globales Mayoristas, S.A. | ||
Related parties | ||
Other liabilities | 18 | 10 |
Ingenieria de Software Bancario, S.L. | ||
Related parties | ||
Other liabilities | 75 | 19 |
Other related parties | ||
Related parties | ||
Other liabilities | 4 | 18 |
Trading derivatives | Banco Santander, S.A. (Spain) | ||
Related parties | ||
Financial liabilities held for trading | 43,827 | 58,537 |
Trading derivatives | Banco Santander International | ||
Related parties | ||
Financial liabilities held for trading | 25 | 64 |
Trading derivatives | Abbey National Treasury Services plc | ||
Related parties | ||
Financial liabilities held for trading | 75 | 1,659 |
Trading derivatives | Other related parties | ||
Related parties | ||
Financial liabilities held for trading | 2 | |
Short positions | Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander Mexico | ||
Related parties | ||
Financial liabilities held for trading | 5,002 | 2,646 |
Short positions | Other related parties | ||
Related parties | ||
Financial liabilities held for trading | 5 | |
Customer deposits - Repurchase agreements | Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander Mexico | ||
Related parties | ||
Other financial liabilities at fair value through profit or loss | 19,333 | 22,162 |
Customer deposits - Repurchase agreements | Banco S3 Mexico, SA, Institucion de Banca Multiple | ||
Related parties | ||
Other financial liabilities at fair value through profit or loss | 1,651 | |
Customer deposits - Repurchase agreements | Grupo Financiero Santander Mexico, S.A.B. de C.V. | ||
Related parties | ||
Other financial liabilities at fair value through profit or loss | 71 | |
Deposits - Credit institutions | Banco Santander, S.A. (Spain) | ||
Related parties | ||
Financial liabilities at amortised cost | 32,559 | 33,209 |
Deposits - Credit institutions | Operadora de Carteras Gamma, S.A.P.I. de C.V. | ||
Related parties | ||
Financial liabilities at amortised cost | 145 | |
Deposits - Credit institutions | Other related parties | ||
Related parties | ||
Financial liabilities at amortised cost | 18 | |
Deposits - Customers | SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversion | ||
Related parties | ||
Financial liabilities at amortised cost | 683 | |
Deposits - Customers | Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander Mexico | ||
Related parties | ||
Financial liabilities at amortised cost | 515 | 653 |
Deposits - Customers | Grupo Financiero Santander Mexico, S.A.B. de C.V. | ||
Related parties | ||
Financial liabilities at amortised cost | 176 | 193 |
Deposits - Customers | Santander Global Facilities, S.A. de C.V. | ||
Related parties | ||
Financial liabilities at amortised cost | 620 | 426 |
Deposits - Customers | Servicios de Cobranza, Recuperacion y Seguimiento, S.A. de C.V. | ||
Related parties | ||
Financial liabilities at amortised cost | 179 | 153 |
Deposits - Customers | Produban Servicios Informaticos Generales, S.L. | ||
Related parties | ||
Financial liabilities at amortised cost | 406 | 51 |
Deposits - Customers | Grupo Alcanza | ||
Related parties | ||
Financial liabilities at amortised cost | 138 | |
Deposits - Customers | Santander Capital Structuring S.A. de C.V. | ||
Related parties | ||
Financial liabilities at amortised cost | 186 | |
Deposits - Customers | Other related parties | ||
Related parties | ||
Financial liabilities at amortised cost | 234 | 1,072 |
Deposits - Customers | Key management personnel | ||
Related parties | ||
Financial liabilities at amortised cost | 52 | 822 |
Marketable debt securities | Banco Santander, S.A. (Spain) | ||
Related parties | ||
Financial liabilities at amortised cost | 1,182 | 1,016 |
Marketable debt securities | Other related parties | ||
Related parties | ||
Financial liabilities at amortised cost | 15 | 28 |
Other financial liabilities | Banco Santander, S.A. (Spain) | ||
Related parties | ||
Financial liabilities at amortised cost | 1,366 | 3 |
Other financial liabilities | Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander Mexico | ||
Related parties | ||
Financial liabilities at amortised cost | 59 | 360 |
Other financial liabilities | Santander Investment Securities Inc. | ||
Related parties | ||
Financial liabilities at amortised cost | 48 | |
Other financial liabilities | Santander Global Facilities, S.A. de C.V. | ||
Related parties | ||
Financial liabilities at amortised cost | 45 | |
Other financial liabilities | Other related parties | ||
Related parties | ||
Financial liabilities at amortised cost | $ 66 | $ 43 |
Related parties - Income Statem
Related parties - Income Statement (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Banco Santander, S.A. (Spain) | |||
Related parties | |||
Interest income and similar income | $ 5 | $ 5 | |
Interest expenses and similar charges | $ 1,440 | 1,275 | 1,026 |
Fee and commission income | 7 | 6 | 171 |
Fee and commission expense | 15 | 19 | 1 |
Gains/(losses) on financial assets and liabilities (net) | (4,346) | 24,211 | 813 |
Administrative expenses | 66 | ||
Abbey National Treasury Services plc | |||
Related parties | |||
Gains/(losses) on financial assets and liabilities (net) | (739) | (280) | 622 |
Produban Servicios Informaticos Generales, S.L. | |||
Related parties | |||
Interest income and similar income | 86 | 52 | 45 |
Administrative expenses | 1,601 | 1,663 | 1,377 |
Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander Mexico | |||
Related parties | |||
Interest income and similar income | 95 | 57 | 37 |
Interest expenses and similar charges | 1,449 | 1,316 | 637 |
Fee and commission expense | 41 | ||
Other operating income | 28 | 26 | |
Administrative expenses | 54 | 58 | |
Grupo Financiero Santander Mexico, S.A.B. de C.V. | |||
Related parties | |||
Interest expenses and similar charges | 16 | 9 | 9 |
Banco S3 Mexico, SA, Institucion de Banca Multiple | |||
Related parties | |||
Interest expenses and similar charges | 12 | ||
Santander Investment Securities Inc. | |||
Related parties | |||
Fee and commission income | 10 | 7 | |
Fee and commission expense | 62 | ||
Zurich Santander Seguros Mexico, S.A. | |||
Related parties | |||
Fee and commission income | 4,219 | 4,165 | 3,929 |
Other operating income | 2 | ||
Santander Capital Structuring S.A. de C.V. | |||
Related parties | |||
Interest income and similar income | 22 | ||
Isban Mexico, S.A. de C.V. | |||
Related parties | |||
Interest expenses and similar charges | 28 | 24 | 12 |
Administrative expenses | 188 | 178 | 92 |
Santander Global Facilities, S.A. de C.V. | |||
Related parties | |||
Interest expenses and similar charges | 28 | 11 | |
Fee and commission expense | 15 | 131 | |
Other operating income | 46 | 52 | 62 |
Administrative expenses | 366 | 206 | 259 |
Ingenieria de Software Bancario, S.L. | |||
Related parties | |||
Administrative expenses | 165 | 151 | 110 |
Geoban, S.A. | |||
Related parties | |||
Administrative expenses | 77 | 78 | 76 |
Aquanima Mexico, S. de R.L. de C.V. | |||
Related parties | |||
Administrative expenses | 45 | 43 | 47 |
Gesban Mexico Servicios Administrativos Globales, S.A. de C.V. | |||
Related parties | |||
Administrative expenses | 53 | 52 | |
Santander Back-Offices Globales Mayoristas, S.A. | |||
Related parties | |||
Administrative expenses | 61 | 26 | |
Servicios de Cobranza, Recuperacion y Seguimiento, S.A. de C.V. | |||
Related parties | |||
Interest expenses and similar charges | 7 | 9 | |
Fee and commission expense | 92 | ||
Administrative expenses | 119 | 110 | |
SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversion | |||
Related parties | |||
Fee and commission income | 1,585 | 1,647 | 1,363 |
Fee and commission expense | 66 | 52 | |
Other operating income | 7 | ||
Other related parties | |||
Related parties | |||
Interest income and similar income | 93 | 2 | 1 |
Interest expenses and similar charges | 35 | 9 | 10 |
Fee and commission income | 9 | 16 | 4 |
Fee and commission expense | 11 | ||
Gains/(losses) on financial assets and liabilities (net) | 19 | (44) | (194) |
Other operating income | 10 | 39 | 3 |
Administrative expenses | $ 34 | $ 49 | $ 131 |
Related parties - Acquisition (
Related parties - Acquisition (Details) - MXN ($) $ in Millions | Nov. 22, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Acquisition | ||||
Payment for available-for-sale financial assets | $ (10,877) | $ (52,951) | $ (31,971) | |
Bolsa Mexicana de Valores, S.A.B. de C.V. | ||||
Acquisition | ||||
Number of shares purchased | 14,176,749 | |||
Payment for available-for-sale financial assets | $ 449 |
Risk management - Risk Governan
Risk management - Risk Governance (Details) | 12 Months Ended |
Dec. 31, 2017item | |
Risk management | |
Risk management and control model, number of lines of defense | 3 |
Risk appetite, number of pillars | 5 |
Number of main lines for which function evolved | 3 |
Risk management - Introduction
Risk management - Introduction to Credit Risk (Details) - Credit risk | 12 Months Ended |
Dec. 31, 2017customer | |
Credit risk | |
Types of customers, number | 3 |
Commercial banking | |
Credit risk | |
Total risk exposure (as a percent) | 79.00% |
Risk management - Credit risk m
Risk management - Credit risk map (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Credit risk | ||
Maximum credit risk exposure by type of product of Loans and advances to customers | $ 710,779 | $ 666,095 |
Change vs. prior year | $ 44,684 | |
Change vs. prior year, percent | 6.71% | |
Payroll loans | ||
Credit risk | ||
Maximum credit risk exposure by type of product of Loans and advances to customers | $ 29,844 | 27,315 |
Change vs. prior year | $ 2,529 | |
Change vs. prior year, percent | 9.26% | |
Personal loans | ||
Credit risk | ||
Maximum credit risk exposure by type of product of Loans and advances to customers | $ 23,291 | 21,990 |
Change vs. prior year | $ 1,301 | |
Change vs. prior year, percent | 5.92% | |
Automotive | ||
Credit risk | ||
Maximum credit risk exposure by type of product of Loans and advances to customers | $ 247 | 37 |
Change vs. prior year | $ 210 | |
Change vs. prior year, percent | 567.57% | |
Credit cards | ||
Credit risk | ||
Maximum credit risk exposure by type of product of Loans and advances to customers | $ 54,372 | 51,537 |
Change vs. prior year | $ 2,835 | |
Change vs. prior year, percent | 5.50% | |
Mortgages | ||
Credit risk | ||
Maximum credit risk exposure by type of product of Loans and advances to customers | $ 134,196 | 132,414 |
Change vs. prior year | $ 1,782 | |
Change vs. prior year, percent | 1.35% | |
SMEs | ||
Credit risk | ||
Maximum credit risk exposure by type of product of Loans and advances to customers | $ 72,279 | 67,895 |
Change vs. prior year | $ 4,384 | |
Change vs. prior year, percent | 6.46% | |
Middle-market corporations | ||
Credit risk | ||
Maximum credit risk exposure by type of product of Loans and advances to customers | $ 166,783 | 148,385 |
Change vs. prior year | $ 18,398 | |
Change vs. prior year, percent | 12.40% | |
Loans and advances to credit institutions | ||
Credit risk | ||
Maximum credit risk exposure by type of product of Loans and advances to customers | $ 34,766 | 33,101 |
Change vs. prior year | $ 1,665 | |
Change vs. prior year, percent | 5.03% | |
Global corporate clients | ||
Credit risk | ||
Maximum credit risk exposure by type of product of Loans and advances to customers | $ 116,189 | 121,356 |
Change vs. prior year | $ (5,167) | |
Change vs. prior year, percent | (4.26%) | |
Guarantees and documentary credits | ||
Credit risk | ||
Maximum credit risk exposure by type of product of Loans and advances to customers | $ 78,812 | $ 62,065 |
Change vs. prior year | $ 16,747 | |
Change vs. prior year, percent | 26.98% |
Risk management - Concentration
Risk management - Concentration risk (Details) - Credit risk $ in Millions | 12 Months Ended | |
Dec. 31, 2017MXN ($)customeritem | Dec. 31, 2016MXN ($)customer | |
Concentration of risk | ||
Number of methods used to measure exposure to risk | item | 2 | |
Financing granted in excess of Basic Capital threshold | $ 0 | $ 0 |
Bank Capital, threshold percentage | 10.00% | 10.00% |
Number of main debtors representing a joint risk | customer | 3 | 3 |
Concentration of credit risk | $ 48,729 | $ 73,072 |
Concentration risk, percentage of Basic Capital | 54.60% | 83.30% |
Risk management - Credit risk c
Risk management - Credit risk cycle (Details) | 12 Months Ended |
Dec. 31, 2017item | |
Cycle, scenario analysis, and other information | |
Number of factors | 3 |
Number of types of scoring | 2 |
Credit risk | |
Cycle, scenario analysis, and other information | |
Credit risk cycle, number of phases | 3 |
Scenario analysis, horizon | 3 years |
Number of types of decisions | 2 |
Number of phases in recovery management | 4 |
Risk management - Trading Marke
Risk management - Trading Market Risk (Details) - item | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Methodologies | |||
Time frame from reference date | 2 years | ||
Trading market risk | |||
Methodologies | |||
Confidence level, percent | 99.00% | 99.00% | 99.00% |
Time frame, historical simulation | 1 day | ||
Number of figures calculated daily for VaR | 2 | ||
Trading market risk | Minimum | |||
Methodologies | |||
Time frame from reference date | 520 days |
Risk management - Trading Ma264
Risk management - Trading Market Risk - VaR Risks and Results (Details) - MXN ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Main market risk metric | ||||||||||
Total VaR | $ 128,610 | $ 128,610 | ||||||||
Minimum | ||||||||||
Main market risk metric | ||||||||||
Total VaR | 57,610 | 57,610 | ||||||||
Weighted average | ||||||||||
Main market risk metric | ||||||||||
Total VaR | 95,060 | 95,060 | ||||||||
Maximum | ||||||||||
Main market risk metric | ||||||||||
Total VaR | 146,430 | 146,430 | ||||||||
Trading market risk | ||||||||||
Main market risk metric | ||||||||||
Total VaR | 129,000 | $ 132,000 | $ 70,000 | 129,000 | $ 132,000 | $ 70,000 | ||||
Risk assumption profile, limit | 245,000 | 230,000 | 192,000 | |||||||
Trading market risk | Minimum | ||||||||||
Main market risk metric | ||||||||||
Average daily Total VaR | 58,000 | 48,000 | 52,000 | |||||||
Trading market risk | Weighted average | ||||||||||
Main market risk metric | ||||||||||
Average daily Total VaR | 93,000 | $ 97,000 | 79,000 | $ 73,000 | 71,000 | $ 71,000 | 95,000 | 77,000 | 71,000 | $ 86,000 |
Increase (decrease) in Total VaR | 18,000 | 6,000 | (15,000) | |||||||
Trading market risk | Maximum | ||||||||||
Main market risk metric | ||||||||||
Average daily Total VaR | $ 138,000 | $ 189,000 | $ 105,000 | |||||||
Interest rate risk | Weighted average | ||||||||||
Main market risk metric | ||||||||||
Average daily Total VaR | 96,000 | 71,000 | 68,000 | 88,000 | ||||||
Equity price risk | Weighted average | ||||||||||
Main market risk metric | ||||||||||
Average daily Total VaR | 5,000 | 4,000 | 17,000 | 18,000 | ||||||
Currency risk - Foreign exchange risk | Weighted average | ||||||||||
Main market risk metric | ||||||||||
Average daily Total VaR | $ 51,000 | $ 17,000 | $ 10,000 | $ 14,000 |
Risk management - Calibration a
Risk management - Calibration and test measures (Details) - Trading market risk - item | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Calibration and test measures | |||
Types of backtesting, number | 3 | ||
Number of exceptions to VaR | 0 | 1 | 0 |
Confidence level, percent | 99.00% | 99.00% | 99.00% |
Number of VaE breaks | 12 | 5 |
Risk management - Structural In
Risk management - Structural Interest Rate Risk (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017MXN ($)item | Dec. 31, 2016MXN ($) | Dec. 31, 2015MXN ($) | Dec. 31, 2014MXN ($) | |
Structural interest rate risk | ||||
Total Balance Sheet Assets | $ 1,329,191 | $ 1,350,937 | $ 1,175,834 | |
Liabilities | (1,213,781) | (1,245,710) | (1,068,076) | |
Equity | (115,410) | (105,227) | (107,758) | $ (100,496) |
Total Balance Sheet Liabilities | $ (1,329,191) | (1,350,937) | ||
Period over which change in expected interest income is measured | 12 months | |||
Number of margins calculated | item | 2 | |||
Total Shareholders' Equity Attributable to the Parent | ||||
Structural interest rate risk | ||||
Equity | $ (115,381) | (105,172) | (107,700) | $ (100,451) |
Interest rate risk | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 1,310,858 | 1,241,614 | 1,136,079 | |
Total Balance Sheet Liabilities | (1,209,837) | (1,155,947) | (1,056,218) | |
Total Balance Sheet Gap | 101,021 | 85,667 | 79,861 | |
Total Off-Balance Sheet Gap | (561) | (6,638) | (9,233) | |
Interest rate risk | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 422,412 | 433,639 | 364,693 | |
Total Balance Sheet Liabilities | (650,472) | (347,107) | (296,137) | |
Total Balance Sheet Gap | (228,060) | 86,532 | 68,556 | |
Total Off-Balance Sheet Gap | 31,675 | 9,323 | 14,184 | |
Total Structural Gap | (196,385) | 95,854 | 82,741 | |
Accumulated Gap | (196,385) | 95,854 | 82,741 | |
Interest rate risk | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 79,183 | 57,451 | 62,209 | |
Total Balance Sheet Liabilities | (22,918) | (36,090) | (25,785) | |
Total Balance Sheet Gap | 56,265 | 21,361 | 36,424 | |
Total Off-Balance Sheet Gap | 2,142 | 4,698 | (896) | |
Total Structural Gap | 58,407 | 26,058 | 35,527 | |
Accumulated Gap | (137,978) | 121,912 | 118,268 | |
Interest rate risk | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 66,663 | 47,997 | 47,890 | |
Total Balance Sheet Liabilities | (15,300) | (9,258) | (2,688) | |
Total Balance Sheet Gap | 51,363 | 38,739 | 45,202 | |
Total Off-Balance Sheet Gap | (2,719) | (5,031) | (5,505) | |
Total Structural Gap | 48,644 | 33,708 | 39,696 | |
Accumulated Gap | (89,334) | 155,620 | 157,965 | |
Interest rate risk | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 30,733 | 39,112 | 27,853 | |
Total Balance Sheet Liabilities | (10,931) | (34,252) | (24,653) | |
Total Balance Sheet Gap | 19,802 | 4,860 | 3,200 | |
Total Off-Balance Sheet Gap | (606) | (1,266) | (638) | |
Total Structural Gap | 19,196 | 3,594 | 2,561 | |
Accumulated Gap | (70,138) | 159,214 | 160,526 | |
Interest rate risk | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 163,540 | 166,773 | 130,236 | |
Total Balance Sheet Liabilities | (36,682) | (299,945) | (229,140) | |
Total Balance Sheet Gap | 126,858 | (133,172) | (98,904) | |
Total Off-Balance Sheet Gap | (35) | 5,995 | (1,990) | |
Total Structural Gap | 126,823 | (127,178) | (100,894) | |
Accumulated Gap | 56,685 | 32,036 | 59,632 | |
Interest rate risk | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 60,241 | 44,827 | 47,804 | |
Total Balance Sheet Liabilities | (35,173) | (7,255) | (26,924) | |
Total Balance Sheet Gap | 25,068 | 37,572 | 20,880 | |
Total Off-Balance Sheet Gap | (6,798) | (3,781) | 1,797 | |
Total Structural Gap | 18,270 | 33,791 | 22,678 | |
Accumulated Gap | 74,955 | 65,827 | 82,310 | |
Interest rate risk | More than 5 years/2023 and thereafter | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 106,599 | 92,988 | 109,984 | |
Total Balance Sheet Liabilities | (2,869) | (36,420) | (27,078) | |
Total Balance Sheet Gap | 103,730 | 56,568 | 82,906 | |
Total Off-Balance Sheet Gap | (24,220) | (11,111) | (3,916) | |
Total Structural Gap | 79,510 | 45,457 | 78,991 | |
Accumulated Gap | 154,465 | 111,284 | 161,301 | |
Interest rate risk | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 381,489 | 358,827 | 345,410 | |
Total Balance Sheet Liabilities | (435,493) | (385,620) | (423,813) | |
Total Balance Sheet Gap | (54,004) | (26,793) | (78,403) | |
Total Off-Balance Sheet Gap | (5,464) | (12,269) | ||
Total Structural Gap | (54,004) | (32,255) | (90,673) | |
Accumulated Gap | 100,461 | 79,028 | 70,627 | |
Interest rate risk | Total Shareholders' Equity Attributable to the Parent | ||||
Structural interest rate risk | ||||
Equity | (116,134) | (105,283) | (98,424) | |
Interest rate risk | Total Shareholders' Equity Attributable to the Parent | Not Sensitive | ||||
Structural interest rate risk | ||||
Equity | (116,134) | (105,283) | (98,424) | |
Interest rate risk | Money Market | ||||
Structural interest rate risk | ||||
Liabilities | (113,294) | (205,188) | (251,123) | |
Interest rate risk | Money Market | 1 month | ||||
Structural interest rate risk | ||||
Liabilities | (20,523) | (44,538) | (24,661) | |
Interest rate risk | Money Market | 3 months | ||||
Structural interest rate risk | ||||
Liabilities | (791) | (22,754) | (17,503) | |
Interest rate risk | Money Market | 6 months | ||||
Structural interest rate risk | ||||
Liabilities | (2,364) | |||
Interest rate risk | Money Market | Not Sensitive | ||||
Structural interest rate risk | ||||
Liabilities | (91,981) | (135,532) | (208,959) | |
Interest rate risk | Deposits | ||||
Structural interest rate risk | ||||
Liabilities | (597,248) | (551,067) | (467,936) | |
Interest rate risk | Deposits | 1 month | ||||
Structural interest rate risk | ||||
Liabilities | (567,359) | (239,723) | (213,996) | |
Interest rate risk | Deposits | 3 months | ||||
Structural interest rate risk | ||||
Liabilities | (15,954) | (12,275) | (7,887) | |
Interest rate risk | Deposits | 6 months | ||||
Structural interest rate risk | ||||
Liabilities | (9,378) | (2,824) | (1,951) | |
Interest rate risk | Deposits | 6 - 12 months | ||||
Structural interest rate risk | ||||
Liabilities | (4,535) | (31,574) | (22,852) | |
Interest rate risk | Deposits | 1 to 3 years | ||||
Structural interest rate risk | ||||
Liabilities | (22) | (264,671) | (221,250) | |
Interest rate risk | Trade finance | ||||
Structural interest rate risk | ||||
Liabilities | (308) | (518) | ||
Interest rate risk | Trade finance | Not Sensitive | ||||
Structural interest rate risk | ||||
Liabilities | (308) | (518) | ||
Interest rate risk | Long-Term Funding | ||||
Structural interest rate risk | ||||
Liabilities | (184,681) | (179,255) | (162,331) | |
Interest rate risk | Long-Term Funding | 1 month | ||||
Structural interest rate risk | ||||
Liabilities | (62,590) | (62,846) | (57,480) | |
Interest rate risk | Long-Term Funding | 3 months | ||||
Structural interest rate risk | ||||
Liabilities | (6,173) | (1,061) | (395) | |
Interest rate risk | Long-Term Funding | 6 months | ||||
Structural interest rate risk | ||||
Liabilities | (5,922) | (4,070) | (737) | |
Interest rate risk | Long-Term Funding | 6 - 12 months | ||||
Structural interest rate risk | ||||
Liabilities | (6,396) | (2,678) | (1,801) | |
Interest rate risk | Long-Term Funding | 1 to 3 years | ||||
Structural interest rate risk | ||||
Liabilities | (36,660) | (35,274) | (7,890) | |
Interest rate risk | Long-Term Funding | 3 to 5 years | ||||
Structural interest rate risk | ||||
Liabilities | (35,173) | (7,255) | (26,924) | |
Interest rate risk | Long-Term Funding | More than 5 years/2023 and thereafter | ||||
Structural interest rate risk | ||||
Liabilities | (2,869) | (36,420) | (27,078) | |
Interest rate risk | Long-Term Funding | Not Sensitive | ||||
Structural interest rate risk | ||||
Liabilities | (28,898) | (29,651) | (40,026) | |
Interest rate risk | Other Liabilities | ||||
Structural interest rate risk | ||||
Liabilities | (198,480) | (114,846) | (75,886) | |
Interest rate risk | Other Liabilities | Not Sensitive | ||||
Structural interest rate risk | ||||
Liabilities | (198,480) | (114,846) | (75,886) | |
Interest rate risk | Money Market | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 80,851 | 146,736 | 101,554 | |
Interest rate risk | Money Market | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 41,236 | 38,460 | 47,337 | |
Interest rate risk | Money Market | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 203 | |||
Interest rate risk | Money Market | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 11 | 104 | 1 | |
Interest rate risk | Money Market | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 11 | 11 | 10 | |
Interest rate risk | Money Market | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 41 | 44 | 37 | |
Interest rate risk | Money Market | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 10 | 32 | 36 | |
Interest rate risk | Money Market | More than 5 years/2023 and thereafter | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 9 | |||
Interest rate risk | Money Market | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 39,543 | 107,882 | 54,124 | |
Interest rate risk | Loans and advances | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 697,027 | 647,729 | 603,402 | |
Interest rate risk | Loans and advances | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 357,785 | 349,076 | 287,578 | |
Interest rate risk | Loans and advances | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 62,290 | 45,789 | 50,898 | |
Interest rate risk | Loans and advances | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 27,359 | 42,250 | 42,918 | |
Interest rate risk | Loans and advances | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 28,877 | 36,673 | 24,782 | |
Interest rate risk | Loans and advances | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 99,802 | 82,230 | 75,456 | |
Interest rate risk | Loans and advances | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 45,376 | 37,336 | 35,830 | |
Interest rate risk | Loans and advances | More than 5 years/2023 and thereafter | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 75,518 | 67,475 | 93,113 | |
Interest rate risk | Loans and advances | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 20 | (13,100) | (7,173) | |
Interest rate risk | Intragroup | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | (72) | 343 | 127 | |
Interest rate risk | Intragroup | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | (72) | 343 | 127 | |
Interest rate risk | Securities | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 346,672 | 356,407 | 370,279 | |
Interest rate risk | Securities | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 23,391 | 46,103 | 29,778 | |
Interest rate risk | Securities | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 16,893 | 11,459 | 11,311 | |
Interest rate risk | Securities | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 39,293 | 5,643 | 4,971 | |
Interest rate risk | Securities | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 1,845 | 2,428 | 3,061 | |
Interest rate risk | Securities | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 63,697 | 84,499 | 54,743 | |
Interest rate risk | Securities | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 14,855 | 7,459 | 11,938 | |
Interest rate risk | Securities | More than 5 years/2023 and thereafter | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 31,081 | 25,513 | 16,862 | |
Interest rate risk | Securities | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 155,618 | 173,303 | 237,615 | |
Interest rate risk | Permanent | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 472 | 5,535 | 5,310 | |
Interest rate risk | Permanent | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 472 | 5,535 | 5,310 | |
Interest rate risk | Other Assets. | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 185,908 | 84,864 | 55,407 | |
Interest rate risk | Other Assets. | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | $ 185,908 | $ 84,864 | $ 55,407 | |
Net interest income risk | ||||
Structural interest rate risk | ||||
Period covered by sensitivity analysis | 1 year | 1 year | 1 year | |
Percentage of reasonably possible increase in risk assumption | 1.00% | 1.00% | 1.00% | |
Increase (decrease) in risk consumption due to reasonably possible increase in risk assumption | $ 900 | $ 1,100 | $ 1,247 | |
Market value of equity | ||||
Structural interest rate risk | ||||
Percentage of reasonably possible increase in risk assumption | 1.00% | 1.00% | 1.00% | |
Increase (decrease) in risk consumption due to reasonably possible increase in risk assumption | $ 3,000 | $ 3,700 | $ 3,389 |
Risk management - Structural Li
Risk management - Structural Liquidity Position (Details) - Liquidity risk - MXN ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Liquidity management | |||
Customer deposits as a percent of liabilities | 50.20% | ||
Customer deposits as a percent of loans and advances to customers | 99.90% | ||
Percent increase in loans and advances to customers | 4.80% | ||
Loans and advances to customers, percentage of total assets | 45.90% | 43.10% | |
LTD ratio, percentage | 101.70% | 101.10% | |
Structural surplus | $ 216,138 | ||
Retail funding | |||
Liquidity management | |||
Diversified wholesale funding as a percentage to total net funding | 16.00% |
Risk management - Funding and L
Risk management - Funding and Liquidity Risk (Details) - MXN ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Structural interest rate risk | ||||
Total Balance Sheet Assets | $ 1,329,191 | $ 1,350,937 | $ 1,175,834 | |
Liabilities | (1,213,781) | (1,245,710) | (1,068,076) | |
Equity | (115,410) | (105,227) | (107,758) | $ (100,496) |
Total Balance Sheet Liabilities | (1,329,191) | (1,350,937) | ||
Total Shareholders' Equity Attributable to the Parent | ||||
Structural interest rate risk | ||||
Equity | (115,381) | (105,172) | (107,700) | $ (100,451) |
Liquidity risk | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 1,414,049 | 1,295,194 | 1,188,460 | |
Total Balance Sheet Liabilities | (1,226,818) | (1,160,850) | (1,057,416) | |
Total Balance Sheet Gap | 187,231 | 134,344 | 131,044 | |
Total Off-Balance Sheet Gap | 15,009 | 3,474 | (5,398) | |
Liquidity risk | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 424,951 | 497,863 | 493,025 | |
Total Balance Sheet Liabilities | (263,922) | (371,628) | (411,008) | |
Total Balance Sheet Gap | 161,029 | 126,235 | 82,017 | |
Total Off-Balance Sheet Gap | (8,956) | 178,907 | 966 | |
Total Structural Gap | 152,073 | 305,142 | 82,983 | |
Accumulated Gap | 152,073 | 305,142 | 82,983 | |
Liquidity risk | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 64,734 | 67,095 | 61,646 | |
Total Balance Sheet Liabilities | (31,588) | (72,073) | (56,986) | |
Total Balance Sheet Gap | 33,146 | (4,978) | 4,660 | |
Total Off-Balance Sheet Gap | 596 | 4,463 | 449 | |
Total Structural Gap | 33,742 | (515) | 5,110 | |
Accumulated Gap | 185,815 | 304,627 | 88,094 | |
Liquidity risk | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 68,261 | 62,382 | 51,331 | |
Total Balance Sheet Liabilities | (25,813) | (18,950) | (17,183) | |
Total Balance Sheet Gap | 42,448 | 43,432 | 34,148 | |
Total Off-Balance Sheet Gap | 117 | 744 | (451) | |
Total Structural Gap | 42,565 | 44,175 | 33,696 | |
Accumulated Gap | 228,380 | 348,802 | 121,790 | |
Liquidity risk | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 101,605 | 89,081 | 66,755 | |
Total Balance Sheet Liabilities | (44,697) | (57,588) | (46,646) | |
Total Balance Sheet Gap | 56,908 | 31,493 | 20,109 | |
Total Off-Balance Sheet Gap | 599 | (2,149) | (1,323) | |
Total Structural Gap | 57,507 | 29,343 | 18,786 | |
Accumulated Gap | 285,887 | 378,146 | 140,576 | |
Liquidity risk | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 235,946 | 208,934 | 174,080 | |
Total Balance Sheet Liabilities | (71,640) | (363,261) | (291,528) | |
Total Balance Sheet Gap | 164,306 | (154,327) | (117,448) | |
Total Off-Balance Sheet Gap | 7,423 | 7,714 | (623) | |
Total Structural Gap | 171,729 | (146,612) | (118,072) | |
Accumulated Gap | 457,616 | 231,533 | 22,504 | |
Liquidity risk | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 109,695 | 86,338 | 88,091 | |
Total Balance Sheet Liabilities | (61,254) | (17,694) | (30,568) | |
Total Balance Sheet Gap | 48,441 | 68,644 | 57,523 | |
Total Off-Balance Sheet Gap | 4,090 | (3,086) | 2,147 | |
Total Structural Gap | 52,531 | 65,558 | 59,669 | |
Accumulated Gap | 510,147 | 297,092 | 82,173 | |
Liquidity risk | More than 5 years/2023 and thereafter | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 158,065 | 136,230 | 148,444 | |
Total Balance Sheet Liabilities | (292,325) | (36,647) | (27,289) | |
Total Balance Sheet Gap | (134,260) | 99,583 | 121,155 | |
Total Off-Balance Sheet Gap | (864) | 1,324 | (3,980) | |
Total Structural Gap | (135,124) | 100,907 | 117,176 | |
Accumulated Gap | 375,023 | 397,999 | 199,349 | |
Liquidity risk | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 250,794 | 146,271 | 105,088 | |
Total Balance Sheet Liabilities | (435,580) | (223,009) | (176,208) | |
Total Balance Sheet Gap | (184,786) | (76,738) | (71,120) | |
Total Off-Balance Sheet Gap | 12,005 | (184,443) | (2,583) | |
Total Structural Gap | (172,781) | (261,180) | (73,702) | |
Accumulated Gap | 202,242 | 136,819 | 125,647 | |
Liquidity risk | Total Shareholders' Equity Attributable to the Parent | ||||
Structural interest rate risk | ||||
Equity | (116,134) | (105,283) | (98,424) | |
Liquidity risk | Total Shareholders' Equity Attributable to the Parent | Not Sensitive | ||||
Structural interest rate risk | ||||
Equity | (116,134) | (105,283) | (98,424) | |
Liquidity risk | Money Market | ||||
Structural interest rate risk | ||||
Liabilities | (113,294) | (205,899) | (251,504) | |
Liquidity risk | Money Market | 1 month | ||||
Structural interest rate risk | ||||
Liabilities | (20,523) | (174,477) | (229,432) | |
Liquidity risk | Money Market | 3 months | ||||
Structural interest rate risk | ||||
Liabilities | (791) | (4,406) | (519) | |
Liquidity risk | Money Market | 6 months | ||||
Structural interest rate risk | ||||
Liabilities | (842) | (3,714) | ||
Liquidity risk | Money Market | 6 - 12 months | ||||
Structural interest rate risk | ||||
Liabilities | (19,379) | (12,572) | ||
Liquidity risk | Money Market | 1 to 3 years | ||||
Structural interest rate risk | ||||
Liabilities | (1,276) | (2,539) | ||
Liquidity risk | Money Market | 3 to 5 years | ||||
Structural interest rate risk | ||||
Liabilities | (2,947) | (1,348) | ||
Liquidity risk | Money Market | Not Sensitive | ||||
Structural interest rate risk | ||||
Liabilities | (91,981) | (2,572) | (1,380) | |
Liquidity risk | Deposits | ||||
Structural interest rate risk | ||||
Liabilities | (607,532) | (551,068) | (467,936) | |
Liquidity risk | Deposits | 1 month | ||||
Structural interest rate risk | ||||
Liabilities | (239,107) | (178,389) | (154,085) | |
Liquidity risk | Deposits | 3 months | ||||
Structural interest rate risk | ||||
Liabilities | (19,463) | (57,904) | (48,524) | |
Liquidity risk | Deposits | 6 months | ||||
Structural interest rate risk | ||||
Liabilities | (14,194) | (152) | (86) | |
Liquidity risk | Deposits | 6 - 12 months | ||||
Structural interest rate risk | ||||
Liabilities | (12,780) | (21,348) | (16,381) | |
Liquidity risk | Deposits | 1 to 3 years | ||||
Structural interest rate risk | ||||
Liabilities | (21,136) | (293,275) | (248,860) | |
Liquidity risk | Deposits | 3 to 5 years | ||||
Structural interest rate risk | ||||
Liabilities | (11,777) | |||
Liquidity risk | Deposits | More than 5 years/2023 and thereafter | ||||
Structural interest rate risk | ||||
Liabilities | (289,075) | |||
Liquidity risk | Trade finance | ||||
Structural interest rate risk | ||||
Liabilities | (308) | (518) | ||
Liquidity risk | Trade finance | Not Sensitive | ||||
Structural interest rate risk | ||||
Liabilities | (308) | (518) | ||
Liquidity risk | Long-Term Funding | ||||
Structural interest rate risk | ||||
Liabilities | (191,378) | (183,446) | (163,148) | |
Liquidity risk | Long-Term Funding | 1 month | ||||
Structural interest rate risk | ||||
Liabilities | (4,292) | (18,762) | (27,491) | |
Liquidity risk | Long-Term Funding | 3 months | ||||
Structural interest rate risk | ||||
Liabilities | (11,334) | (9,763) | (7,943) | |
Liquidity risk | Long-Term Funding | 6 months | ||||
Structural interest rate risk | ||||
Liabilities | (11,619) | (17,956) | (13,383) | |
Liquidity risk | Long-Term Funding | 6 - 12 months | ||||
Structural interest rate risk | ||||
Liabilities | (31,917) | (16,861) | (17,693) | |
Liquidity risk | Long-Term Funding | 1 to 3 years | ||||
Structural interest rate risk | ||||
Liabilities | (50,504) | (68,710) | (40,129) | |
Liquidity risk | Long-Term Funding | 3 to 5 years | ||||
Structural interest rate risk | ||||
Liabilities | (49,477) | (14,747) | (29,220) | |
Liquidity risk | Long-Term Funding | More than 5 years/2023 and thereafter | ||||
Structural interest rate risk | ||||
Liabilities | (3,250) | (36,647) | (27,289) | |
Liquidity risk | Long-Term Funding | Not Sensitive | ||||
Structural interest rate risk | ||||
Liabilities | (28,985) | |||
Liquidity risk | Other Liabilities | ||||
Structural interest rate risk | ||||
Liabilities | (198,480) | (114,846) | (75,886) | |
Liquidity risk | Other Liabilities | Not Sensitive | ||||
Structural interest rate risk | ||||
Liabilities | (198,480) | (114,846) | (75,886) | |
Liquidity risk | Money Market | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 80,851 | 146,748 | 101,555 | |
Liquidity risk | Money Market | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 41,236 | 105,566 | 75,574 | |
Liquidity risk | Money Market | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 203 | |||
Liquidity risk | Money Market | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 11 | 104 | 1 | |
Liquidity risk | Money Market | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 11 | 11 | 10 | |
Liquidity risk | Money Market | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 41 | 44 | 37 | |
Liquidity risk | Money Market | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 10 | 32 | 36 | |
Liquidity risk | Money Market | More than 5 years/2023 and thereafter | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 9 | |||
Liquidity risk | Money Market | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 39,543 | 40,788 | 25,888 | |
Liquidity risk | Loans and advances | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 774,862 | 726,450 | 670,748 | |
Liquidity risk | Loans and advances | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 53,125 | 101,397 | 93,701 | |
Liquidity risk | Loans and advances | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 64,611 | 66,892 | 61,645 | |
Liquidity risk | Loans and advances | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 68,058 | 62,277 | 51,329 | |
Liquidity risk | Loans and advances | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 101,213 | 89,069 | 66,744 | |
Liquidity risk | Loans and advances | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 234,382 | 197,379 | 168,012 | |
Liquidity risk | Loans and advances | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 106,830 | 86,306 | 88,055 | |
Liquidity risk | Loans and advances | More than 5 years/2023 and thereafter | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 146,624 | 136,230 | 148,435 | |
Liquidity risk | Loans and advances | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 20 | (13,100) | (7,173) | |
Liquidity risk | Intragroup | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | (72) | 343 | 127 | |
Liquidity risk | Intragroup | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | (72) | 343 | 127 | |
Liquidity risk | Securities | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 372,029 | 330,254 | 355,313 | |
Liquidity risk | Securities | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 330,590 | 290,900 | 323,750 | |
Liquidity risk | Securities | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 123 | 1 | ||
Liquidity risk | Securities | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 192 | 1 | 1 | |
Liquidity risk | Securities | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 381 | 1 | 1 | |
Liquidity risk | Securities | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 1,523 | 11,511 | 6,031 | |
Liquidity risk | Securities | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 2,855 | |||
Liquidity risk | Securities | More than 5 years/2023 and thereafter | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 11,441 | |||
Liquidity risk | Securities | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 24,924 | 27,841 | 25,529 | |
Liquidity risk | Permanent | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 11,652 | 5,535 | 5,310 | |
Liquidity risk | Permanent | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 11,652 | 5,535 | 5,310 | |
Liquidity risk | Other Assets. | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 174,727 | 85,864 | 55,407 | |
Liquidity risk | Other Assets. | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | $ 174,727 | $ 84,864 | $ 55,407 |
Risk management - Regulatory Ra
Risk management - Regulatory Ratios (Details) - item | Apr. 29, 2016 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Risk management | ||||
Risk management and control model, number of lines of defense | 3 | |||
Leverage ratio, baseline reference effect percentage | 3.00% | |||
Leverage ratio | 7.03% | |||
Capital preservation supplement, Projected period | 4 years | |||
Capital preservation supplement target | 1.20% | |||
Capital preservation supplement, Percent of requirement achieved | 50.00% | 50.00% | ||
Liquidity risk | ||||
Risk management | ||||
Available liquid assets, period | 30 days | |||
Risk management and control model, number of lines of defense | 3 | |||
Liquidity risk | Weighted average | ||||
Risk management | ||||
Liquidity coverage ratio, percentage | 176.14% |
Consolidated Subsidiaries - Com
Consolidated Subsidiaries - Composition of the Bank (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Subsidiaries | |||
Non-controlling interest | $ 29 | $ 55 | $ 58 |
Santander Consumo, S.A. de C.V. | |||
Subsidiaries | |||
Proportion of ownership interest held by the Bank | 99.99% | ||
Proportion of voting power held by the Bank | 100.00% | ||
Santander Vivienda, S.A. de C.V. | |||
Subsidiaries | |||
Proportion of ownership interest held by the Bank | 99.99% | ||
Proportion of voting power held by the Bank | 100.00% | ||
Santander Inclusion Financiera, S.A. de C.V., SOFOM, E.R. | |||
Subsidiaries | |||
Proportion of ownership interest held by the Bank | 99.99% | ||
Proportion of voting power held by the Bank | 100.00% | ||
Centro de Capacitacion Santander, A.C. | |||
Subsidiaries | |||
Proportion of ownership interest held by the Bank | 99.99% | ||
Proportion of voting power held by the Bank | 100.00% | ||
Banco Santander, S.A. Fideicomiso 100740 | |||
Subsidiaries | |||
Proportion of ownership interest held by the Bank | 99.99% | ||
Proportion of voting power held by the Bank | 100.00% | ||
Fideicomiso GFSSLPT, Banco Santander, S.A. | |||
Subsidiaries | |||
Proportion of ownership interest held by the Bank | 89.14% | ||
Proportion of voting power held by the Bank | 100.00% | ||
Santander Servicios Corporativos, S.A. de C.V. | |||
Subsidiaries | |||
Proportion of ownership interest held by the Bank | 99.99% | ||
Proportion of voting power held by the Bank | 100.00% | ||
Santander Servicios Especializados, S.A. de C.V. | |||
Subsidiaries | |||
Proportion of ownership interest held by the Bank | 99.99% | ||
Proportion of voting power held by the Bank | 100.00% |
Consolidated Subsidiaries - Sig
Consolidated Subsidiaries - Significant restrictions (Details) $ in Millions | Dec. 31, 2017MXN ($) |
Santander Consumo, S.A. de C.V. | |
Financial instruments | |
Assets to which significant restrictions apply | $ 45,138 |
Santander Vivienda, S.A. de C.V. | |
Financial instruments | |
Assets to which significant restrictions apply | 17,271 |
Statutory reserve | |
Financial instruments | |
Liabilities to which significant restrictions apply | 10,683 |
Statutory reserve on individual basis | |
Financial instruments | |
Liabilities to which significant restrictions apply | 8,086 |
Deposits with Central Bank | |
Financial instruments | |
Assets to which significant restrictions apply | 28,094 |
Special CETES | |
Financial instruments | |
Assets to which significant restrictions apply | 2,975 |
BREMS R | |
Financial instruments | |
Assets to which significant restrictions apply | 7,783 |
Financial instruments in connection with securities loans transactions | Mexican government securities | |
Financial instruments | |
Assets to which significant restrictions apply | 21,555 |
Financial instruments in connection with securities loans transactions | Equity instruments. | |
Financial instruments | |
Liabilities to which significant restrictions apply | 7 |
Financial instrument in connection with OTC derivative transactions | Deposits - Customers | |
Financial instruments | |
Liabilities to which significant restrictions apply | 45,024 |
Financial instrument in connection with OTC derivative transactions | Debt instruments. | |
Financial instruments | |
Liabilities to which significant restrictions apply | 3,783 |
Financial instrument in connection with OTC derivative transactions | Loans and advances to credit institutions | |
Financial instruments | |
Assets to which significant restrictions apply | 34,542 |
Financial instruments in connection with repurchase agreement transactions | Debt instruments. | |
Financial instruments | |
Assets to which significant restrictions apply | 51,693 |
Financial instruments in connection with repurchase agreement transactions | Mexican government securities | |
Financial instruments | |
Assets to which significant restrictions apply | 13,881 |
Financial instruments in connection with derivative transactions in organized markets | Loans and advances to customers | |
Financial instruments | |
Assets to which significant restrictions apply | 2,566 |
Financial assets held for trading | Financial instrument in connection with OTC derivative transactions | Debt instruments. | |
Financial instruments | |
Assets to which significant restrictions apply | 2,964 |
Financial assets held for trading | Financial instruments in connection with repurchase agreement transactions | Debt instruments. | |
Financial instruments | |
Assets to which significant restrictions apply | 89,147 |
Loans and receivables | Financial instruments in connection with repurchase agreement transactions | BREMS R | |
Financial instruments | |
Assets to which significant restrictions apply | $ 7,350 |