Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Statement | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Registrant Name | Banco Santander Mexico S.A., Institucion de Banca Multiple, Grupo Financiero Santander Mexico |
Entity Incorporation, State or Country Code | O5 |
Document Period End Date | Dec. 31, 2019 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Central Index Key | 0001698287 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Series B shares | |
Statement | |
Entity Common Stock, Shares Outstanding | 3,322,685,212 |
Series F shares | |
Statement | |
Entity Common Stock, Shares Outstanding | 3,464,309,145 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
CASH AND BALANCES WITH THE CENTRAL BANK | $ 65,207 | $ 55,310 |
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS: | 268,127 | 267,524 |
OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS: | 79,927 | 107,425 |
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME: | 236,980 | 155,789 |
FINANCIAL ASSETS AT AMORTIZED COST: | 747,823 | 766,225 |
HEDGING DERIVATIVES | 9,256 | 9,285 |
NON-CURRENT ASSETS HELD FOR SALE | 935 | 1,277 |
TANGIBLE ASSETS | 10,542 | 8,714 |
RIGHT-OF-USE ASSETS | 5,611 | |
INTANGIBLE ASSETS: | 8,832 | 8,044 |
Goodwill | 1,734 | 1,734 |
Other intangible assets | 7,098 | 6,310 |
TAX ASSETS | 23,135 | 21,968 |
Current | 5,734 | 4,394 |
Deferred | 17,401 | 17,574 |
OTHER ASSETS | 11,173 | 7,163 |
TOTAL ASSETS | 1,467,548 | 1,408,724 |
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 153,600 | 182,646 |
OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 273,725 | 178,265 |
FINANCIAL LIABILITIES AT AMORTISED COST: | 864,266 | 890,284 |
HEDGING DERIVATIVES | 7,523 | 8,393 |
PROVISIONS | 9,104 | 6,800 |
LEASE LIABILITIES | 5,919 | |
TAX LIABILITIES | 322 | 194 |
Current | 217 | 107 |
Deferred | 105 | 87 |
OTHER LIABILITIES | 18,291 | 18,855 |
TOTAL LIABILITIES | 1,332,750 | 1,285,437 |
SHAREHOLDERS' EQUITY | 132,715 | 124,240 |
Share capital | 25,660 | 25,660 |
Accumulated reserves | 86,674 | 79,227 |
Profit for the year attributable to the Parent | 20,381 | 19,353 |
VALUATION ADJUSTMENTS: | 2,043 | (985) |
Financial assets at fair value through other comprehensive income | 2,319 | (695) |
Cash flow hedges | (276) | (290) |
TOTAL SHAREHOLDERS' EQUITY ATTRIBUTABLE TO THE PARENT | 134,758 | 123,255 |
NON-CONTROLLING INTERESTS | 40 | 32 |
TOTAL EQUITY | 134,798 | 123,287 |
TOTAL LIABILITIES AND EQUITY | 1,467,548 | 1,408,724 |
Provision for pensions and other employment defined benefit obligations | ||
LIABILITIES AND EQUITY | ||
PROVISIONS | 6,406 | 4,370 |
Provision for taxes and other legal contingencies | ||
LIABILITIES AND EQUITY | ||
PROVISIONS | 1,558 | 1,516 |
Provisions for off-balance sheet risk | ||
LIABILITIES AND EQUITY | ||
PROVISIONS | 1,075 | 852 |
Other provisions member | ||
LIABILITIES AND EQUITY | ||
PROVISIONS | 65 | 62 |
Trading derivative liabilities | ||
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 144,481 | 153,727 |
Short positions | ||
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 9,119 | 28,919 |
Deposits - Central banks | ||
LIABILITIES AND EQUITY | ||
OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 111,574 | 30,995 |
Deposits - Credit institutions | ||
LIABILITIES AND EQUITY | ||
OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 29,689 | 13,801 |
FINANCIAL LIABILITIES AT AMORTISED COST: | 72,969 | 94,849 |
Deposits - Customers | ||
LIABILITIES AND EQUITY | ||
OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 129,216 | 128,719 |
FINANCIAL LIABILITIES AT AMORTISED COST: | 630,055 | 646,089 |
Customer deposits - Repurchase agreements | ||
LIABILITIES AND EQUITY | ||
OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 129,216 | 128,719 |
Debt instruments | ||
LIABILITIES AND EQUITY | ||
OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 3,246 | 4,750 |
FINANCIAL LIABILITIES AT AMORTISED COST: | 111,211 | 98,312 |
PROVISIONS | 9,104 | 6,800 |
Subordinated liabilities | ||
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES AT AMORTISED COST: | 34,267 | 37,228 |
Other financial liabilities | ||
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES AT AMORTISED COST: | 15,764 | 13,806 |
Loans and advances - Credit institutions | ||
ASSETS | ||
OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS: | 54,138 | 98,332 |
FINANCIAL ASSETS AT AMORTIZED COST: | 36,895 | 47,034 |
Loans and advances - Customers | ||
ASSETS | ||
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS: | 9,093 | |
OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS: | 25,789 | 9,093 |
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME: | 2,875 | 771 |
FINANCIAL ASSETS AT AMORTIZED COST: | 699,671 | 666,772 |
Debt instruments. | ||
ASSETS | ||
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS: | 110,613 | 110,222 |
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME: | 233,463 | 154,483 |
FINANCIAL ASSETS AT AMORTIZED COST: | 11,257 | 52,419 |
Equity instruments. | ||
ASSETS | ||
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS: | 5,767 | 2,349 |
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME: | 642 | 535 |
Trading derivative assets | ||
ASSETS | ||
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS: | $ 151,747 | $ 154,953 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS $ in Millions | 12 Months Ended |
Dec. 31, 2017MXN ($)$ / shares | |
Statement | |
Interest income | $ 98,002 |
Interest expenses and similar charges | (42,158) |
NET INTEREST INCOME | 55,844 |
Dividend income | 150 |
Fee and commission income. | 20,316 |
Fee and commission expenses | (5,503) |
Gains/(losses) on financial assets and liabilities (net) | 3,458 |
Exchange differences (net) | 6 |
Other operating income | 669 |
Other expense, by function | (3,614) |
TOTAL INCOME | 71,326 |
Administrative expenses: | (25,437) |
Personnel expenses | (12,748) |
Other general administrative expenses | (12,689) |
Depreciation and amortization | (2,533) |
Impairment losses on financial assets (net) | (18,820) |
Provisions (net) | (437) |
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) | 6 |
Gains/(losses) on disposal of non-current assets held for sale not classified as discontinued operations (net) | 69 |
OPERATING PROFIT BEFORE TAX | 24,174 |
Income tax | (5,496) |
PROFIT FOR THE YEAR | 18,678 |
Profit attributable to the Parent | $ 18,678 |
EARNINGS PER SHARE (pesos) | |
Basic earnings per share (in pesos per share) | $ / shares | $ 2.76 |
Diluted earnings per share (in pesos per share) | $ / shares | $ 2.75 |
Loans and receivables | |
Statement | |
Impairment losses on financial assets (net) | $ (18,820) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Profit for the year | $ 20,381 | $ 19,356 | $ 18,678 |
Items that will not be reclassified subsequently to the consolidated income statement: | |||
Remeasurement of defined benefit obligation for the year | (1,673) | 260 | 666 |
Changes in the fair value of equity instruments at fair value through other comprehensive income | 107 | (13) | |
Changes in the fair value attributable to change in the credit risk of financial liabilities designated at fair value through profit or loss | 26 | (35) | |
Income tax | 462 | (64) | (200) |
Total of items that will not be reclassified subsequently to the consolidated income statement | (1,078) | 148 | 466 |
Financial assets at fair value through other comprehensive income: | |||
Valuation adjustments, FVTOCI | 4,108 | (1,226) | |
Amounts reclassified to consolidated income statement, FVTOCI | (189) | 69 | |
Impairment of debt instruments accounted at fair value through other comprehensive income | 2 | ||
Income tax, FVTOCI | (980) | 371 | |
Available-for-sale financial assets: | |||
Valuation adjustments, AFS | 1,932 | ||
Amounts reclassified to consolidated income statement, AFS | (9) | ||
Income tax, AFS | (477) | ||
Cash flow hedges: | |||
Valuation adjustments, cash flow hedge | 29 | (882) | (1,585) |
Amounts reclassified to consolidated income statement, Cash flow hedge | (9) | (40) | 118 |
Income tax, Cash flow hedge | (6) | 276 | 440 |
Total of items that may be reclassified subsequently to the consolidated income statement | 2,953 | (1,430) | 419 |
Other comprehensive income/(loss) for the year, net of income tax | 1,875 | (1,282) | 885 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 22,256 | 18,074 | 19,563 |
Attributable to the Parent | $ 22,256 | 18,071 | $ 19,563 |
Attributable to non-controlling interests | $ 3 |
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, 2016 | $ 105,172 | $ 8,086 | $ 16,956 | $ 65,190 | $ 16,536 | $ (1,596) | $ 55 | $ 105,227 |
Profit attributable to the Parent | 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 |
Initial adoption of IFRS 9 | (665) | (2,279) | 1,614 | (665) | ||||
Balances, restated | 114,716 | 8,086 | 16,956 | 70,559 | 18,678 | 437 | 29 | 114,745 |
Profit attributable to the Parent | 19,353 | 19,353 | 19,353 | |||||
Other changes in equity: | ||||||||
Transfer to accumulated reserves | 18,678 | (18,678) | ||||||
Dividends declared | (9,228) | (9,228) | (9,228) | |||||
Recognition of equity-settled share-based payments | 40 | 40 | 40 | |||||
Treasury shares | (434) | (434) | (434) | |||||
Paid interests on Subordinated Additional Tier I Capital Notes | (591) | (591) | (591) | |||||
Profit attributable to non-controlling interests | 3 | 3 | ||||||
Other comprehensive income/(loss) for the year, net of income tax | (1,282) | 157 | (1,439) | (1,282) | ||||
Effect on sale of the Custody business, net of income tax | 506 | 506 | 506 | |||||
Effect on acquisition of subsidiary | (225) | (225) | (225) | |||||
Changes in equity from Corporate Restructuring | ||||||||
Amounts recognized from merger of entities | 83 | 83 | 83 | |||||
Capitalization of share premium and accumulated reserves | 17,574 | $ (16,956) | (618) | |||||
Recognition of equity-settled share-based payments | 336 | 319 | 17 | 336 | ||||
Effect on sale of the Brokerage House, net of income tax | (19) | (19) | (19) | |||||
Equity at end of period at Dec. 31, 2018 | 123,255 | 25,660 | 79,227 | 19,353 | (985) | 32 | 123,287 | |
Profit attributable to the Parent | 20,381 | 20,381 | 20,381 | |||||
Other changes in equity: | ||||||||
Transfer to accumulated reserves | 19,353 | (19,353) | ||||||
Dividends declared | (10,293) | (10,293) | (10,293) | |||||
Treasury shares | 217 | 217 | 217 | |||||
Paid interests on Subordinated Additional Tier I Capital Notes | (595) | (595) | (595) | |||||
Other changes in non-controlling interest | 8 | 8 | ||||||
Other comprehensive income/(loss) for the year, net of income tax | 1,875 | (1,153) | 3,028 | 1,875 | ||||
Changes in equity from Corporate Restructuring | ||||||||
Recognition of equity-settled share-based payments | (82) | (82) | (82) | |||||
Equity at end of period at Dec. 31, 2019 | $ 134,758 | $ 25,660 | $ 86,674 | $ 20,381 | $ 2,043 | $ 40 | $ 134,798 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement | |||
A. CASH FLOWS FROM OPERATING ACTIVITIES: | $ 34,470 | $ 15,554 | $ (7,170) |
Profit for the year | 20,381 | 19,356 | 18,678 |
Adjustments made to obtain the cash flows from operating activities- | 13,238 | 8,148 | 7,494 |
Depreciation and amortization | 5,222 | 2,973 | 2,533 |
Impairment losses on other assets (net) | 370 | 5 | |
(Gains)/losses on disposal of non-current assets held for sale not classified as discontinued operations | (42) | (38) | (69) |
(Gains)/losses on disposal of assets not classified as non-current assets held for sale | (16) | (7) | (6) |
Income tax expense recognized in consolidated income statement | 6,909 | 5,458 | 5,496 |
Expense recognized with respect to equity-settled share-based payments | 237 | 401 | 283 |
Effect of foreign exchange rate changes on Subordinated Additional Tier I Capital Notes | 394 | 6 | (479) |
Effect of foreign exchange rate changes on cash deposits | 164 | (650) | (264) |
Net (increase)/decrease in operating assets- | (36,074) | (80,396) | 218 |
Financial assets at fair value through profit or loss | (647) | ||
Financial assets held for trading | 48,013 | 27,007 | |
Other financial assets at fair value through profit or loss | 27,498 | (55,720) | (9,365) |
Remeasurement of debt instruments reclassified to financial assets at amortized cost | 2,287 | ||
Financial assets at fair value through other comprehensive income | (82,536) | ||
Available-for-sale financial assets | (67,730) | (10,877) | |
Financial assets at amortized cost | 18,116 | ||
Loans and receivables | (13,996) | (3,927) | |
Other operating assets | 1,495 | 6,750 | (2,620) |
Net increase/(decrease) in operating liabilities- | 44,943 | 75,238 | (29,596) |
Financial liabilities held for trading | (73,336) | ||
Financial liabilities at fair value through profit or loss | (29,046) | (10,846) | |
Other financial liabilities at fair value through profit or loss | 95,460 | 11,379 | 30,026 |
Financial liabilities at amortized cost | (22,630) | 69,498 | 16,747 |
Other operating liabilities | 1,159 | 5,207 | (3,033) |
Income tax paid | (8,253) | (7,002) | (4,114) |
Dividends received from equity instruments | 235 | 210 | 150 |
B. CASH FLOWS FROM INVESTING ACTIVITIES: | (12,002) | (5,349) | (4,525) |
Payments- | (12,002) | (7,291) | (4,528) |
Tangible assets | (8,766) | (3,307) | (1,816) |
Intangible assets | (3,236) | (2,964) | (2,712) |
Acquisition of subsidiary | (1,020) | ||
Proceeds- | 1,942 | 3 | |
Disposal of tangible assets | 3 | 3 | |
Sale of Brokerage House | 1,175 | ||
Sale of Custody business | 764 | ||
C. CASH FLOWS FROM FINANCING ACTIVITIES: | (12,407) | (13,232) | (9,545) |
Payments- | (12,407) | (36,513) | (9,545) |
Dividends paid to owners | (10,293) | (11,050) | (8,910) |
Paid interest on Subordinated Additional Tier I Capital Notes | (808) | (804) | (635) |
Purchase of own shares (treasury shares) | (218) | (437) | |
Early settlement of Tier II Subordinated Capital Notes | (24,222) | ||
Interest from lease liability | 729 | ||
Lease liabilities | (1,817) | ||
Proceeds- | 23,281 | ||
D. EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON FOREIGN CURRENCY CASH | (164) | 650 | 264 |
E. NET INCREASE/(DECREASE) IN CASH AND BALANCES WITH THE CENTRAL BANK | 9,897 | (2,377) | (20,976) |
F. CASH AND BALANCES WITH THE CENTRAL BANK AT THE BEGINNING OF YEAR | 55,310 | 57,687 | 78,663 |
G. CASH AND BALANCES WITH THE CENTRAL BANK AT THE END OF YEAR | $ 65,207 | 55,310 | $ 57,687 |
Tier II Subordinated Capital Notes | |||
Statement | |||
Issue of subordinated notes | $ 23,281 |
Introduction, basis of presenta
Introduction, basis of presentation of the consolidated financial statements and other information | 12 Months Ended |
Dec. 31, 2019 | |
Intro, basis of presentation of the consolidated financial statements and other information | |
Introduction, basis of presentation of the consolidated financial statements and other information | 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 is a subsidiary of Banco Santander, S.A. in Spain (hereinafter, Banco Santander (Spain) or “Ultimate Parent”) and holds 91.65% (see Note 3.9) 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 by its Spanish acronym) 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 shares of the Bank are listed on the New York Stock Exchange as American Depositary Shares. The Bank is subject to the supervision and oversight of the United States Securities and Exchange Commission. 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 and by the Board of Directors on February 26, 2020. These consolidated financial statements are pending the approval of the ordinary shareholders’ meeting, where they may be modified, based on provisions set forth in the Mexican Corporations Law (Ley General de Sociedades Mercantiles). b) Basis of presentation 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 at fair value through profit or loss, other financial instruments at fair value through profit or loss, (including trading financial derivative instruments), financial assets at fair value through other comprehensive income and hedging financial derivative instruments 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. As used in these consolidated financial statements, the term “billion” means one thousand million (1,000,000,000). 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 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 from the Bank’s expected credit loss model. In some cases, CNBV can approve the use of internal models to determine the allowance for impairment losses under Mexican Banking GAAP as an alternative to the regulatory expected loss model. 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 IFRS require the recognition of actuarial gains and losses from the year immediately through other comprehensive income without recycling to profit or loss. Under Mexican Banking GAAP there is an option to recognize actuarial gains and losses from the year, immediately 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, or to profit or loss of the period in which are determined. 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. f) Impairment losses of non-current assets held for sale For Mexican Banking GAAP impairment losses from non-current assets held for sale are determined based on formulas prescribed by the CNBV. g) Leases Mexican Banking GAAP classifies leases into two types: · Operating leases if the lease does not transfer substantially all the risk and rewards incidental to ownership, the lease payments should be recognized as an expense in the income statement over the lease term on a straight-line basis, unless another systematic basis is more representative of the time pattern of the user's benefit. · Financial leases if the lease transfer substantially all the risk and rewards incidental to ownership, at commencement of the lease term, finance leases should be recorded as an asset (decreased by depreciation) and a liability (decreased by payments). h) Fair value measurements of financial instruments For Mexican Banking GAAP, the fair value measurement of financial derivative instruments non-listed in recognized markets does not consider the counterparty credit risk (Credit Value Adjustment) and the entity’s own credit risk (Debit Value Adjustment). Fair value measurement of financial liabilities at fair value through profit or loss does not consider also entity’s own credit risk for Mexican Banking GAAP. 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. Adoption of new and revised IFRS In the current year, the Bank has applied new or amended International Accounting Standards (hereinafter, IAS), or IFRS issued by the IASB that are mandatorily effective for the accounting period beginning on January 1, 2019. · Annual Improvements to IFRS 2015 – 2017 Cycle · Amendments to IFRS 9 Financial Instruments – Prepayment Features with Negative Compensation · Amendments to IAS 28 Investments in Associates and Joint Ventures · Amendments to IAS 19 Employee Benefits · IFRS 16 Leases · IFRIC 23 Uncertainty over Income Tax Treatments Annual Improvements to IFRS 2015 – 2017 Cycle Standard Subject of amendment Details IFRS 3 Business Combinations IFRS 11 Joint Arrangements Remeasurement of previously held interest The amendments to IFRS 3 clarify that when an entity obtains control of a business that is a joint operation, it remeasures previously held interests in that business. The amendments to IFRS 11 clarify that when an entity obtains joint control of a business that is a joint operation, the entity does not remeasure previously held interests in that business. IAS 12 Income Taxes Income tax consequences of dividends The amendments clarify that the requirements in the former paragraph 52B (to recognize the income tax consequences of dividends where the transactions or events that generated distributable profits are recognized) apply to all income tax consequences of dividends by moving the paragraph away from paragraph 52A that only deals with situations where there are different tax rates for distributed and undistributed profits. IAS 23 Borrowing Costs Borrowing costs eligible for capitalization The amendments clarify that if any specific borrowing remains outstanding after the related asset is ready for its intended use or sale, that borrowing becomes part of the funds that an entity borrows generally when calculating the capitalization rate on general borrowings. The adoption of these amendments did not have an impact in the amounts recognized in the Bank’s consolidated financial statements. Amendments to IFRS 9 Financial Instruments - Prepayment Features with Negative Compensation The amendments to IFRS 9 clarify that for the purpose of assessing whether a prepayment feature meets the Solely Payments of Principal and Interest (SPPI) condition, the party exercising the option may pay or receive reasonable compensation for the prepayment irrespective of the reason for prepayment. In other words, prepayment features with negative compensation do not automatically fail SPPI. The adoption of these amendments did not have an impact in the amounts recognized in the Bank’s consolidated financial statements. Amendments to IAS 28 Investments in Associates and Joint Ventures The amendments to IAS 28 relate to Long-term Interests in Associates and Joint Ventures are as follows: · Paragraph 14A has been added to clarify that an entity applies IFRS 9 including its impairment requirements, to long-term interests in an associate or joint venture that form part of the net investment in the associate or joint venture but to which the equity method is not applied. · Paragraph 41 has been deleted because the IASB felt that it merely reiterated requirements in IFRS 9 and had created confusion about the accounting for long-term interests. The adoption of these amendments did not have an impact in the amounts recognized in the Bank’s consolidated financial statements. Amendments to IAS 19 Employee Benefits The amendments clarify the accounting for defined benefit plan amendments, curtailments and settlements. Entities must: · calculate the current service cost and net interest for the remainder of the reporting period after a plan amendment, curtailment or settlement by using the updated assumptions from the date of the change; · recognize any reduction in a surplus immediately in profit or loss, either as part of past service cost or as a gain or loss on settlement. In other words, a reduction in a surplus must be recognized in profit or loss even if that surplus was not previously recognized because of the impact of the asset ceiling; and · separately recognize any changes in the asset ceiling through other comprehensive income. The adoption of these amendments did not have an impact in the amounts recognized in the Bank’s consolidated financial statements. IFRS 16 Leases This Standard establishes the principles for the recognition, measurement, presentation and disclosure of the lease arrangements, in order to ensure that both lessee and lessor provide relevant information that faithfully represents these transactions. In addition, the Standard introduces a single, on-balance sheet lease accounting model for lessees. A lessee recognizes a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. There are recognition exemptions for short-term leases and leases of low-value items. Lessor accounting remains similar to the current Standard – i.e., lessors continue to classify leases as finance or operating leases. IFRS 16 replaces existing leases guidance, including IAS 17 Leases , IFRIC 4 Determining whether an Arrangement contains a Lease , SIC 15 Operating Leases – Incentives and SIC 27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease . Transition The Bank applied IFRS 16 initially recognition on January 1, 2019, using the modified retrospective approach where the asset for right-of-use and the leases liability are the same on transition date. Therefore, there was not a cumulative effect of adopting IFRS 16 recognized as an adjustment to the opening balance of Accumulated reserves as of January 1, 2019. The Bank decided to apply the available practical expedients on adoption allowed by the Standard of not evaluating in the first adoption if the contracts are or contain a lease (under the new definition), and therefore, IFRS 16 will only apply to those contracts that were previously identified as lease contracts. The Bank carried out a multidisciplinary project with the objective of adapting its processes to the new Standard of accounting of the lease contracts. Thus, the Bank had worked during 2018 in the analysis and identification of the contracts affected by the Standard, as well as the definition of the main technical criteria that affects the accounting of the lease contracts. With respect to the structure of the project´s governance, the Bank had created a working group to manage and follow up a periodic meeting of the direction of the project and designated a team in charge that assures the involvement of every responsible individual within each teamwork (see Note 2.l). IFRIC 23 Uncertainty over Income Tax Treatments The interpretation explains how to recognize and measure deferred and current income tax assets and liabilities where there is uncertainty over a tax treatment. In particular, it discusses: · how to determine the appropriate unit of account, and that each uncertain tax treatment should be considered separately or together as a group, depending on which approach better predicts the resolution of the uncertainty, · that the entity should assume a tax authority will examine the uncertain tax treatments and have full knowledge of all related information, that is detection risk should be ignored, · that the entity should reflect the effect of the uncertainty in its income tax accounting when it is not probable that the tax authorities will accept the treatment, · that the impact of the uncertainty should be measured using either the most likely amount or the expected value method, depending on which method better predicts the resolution of the uncertainty, and, · that the judgments and estimates made must be reassessed whenever circumstances have changed or there is new information that affects the judgments. The adoption of the aforementioned Interpretation did not have any material effects on the Bank’s consolidated financial statements. New and revised IFRS that are not mandatorily effective (but allow early adoption) for the year ending December 31, 2019 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. Amendments to IFRS 3 Business Combinations (Effective for annual periods beginning on or after January 1, 2020, early adoption is permitted) The amendments to IFRS 3 improve the definition of a business. The amended definition emphasizes that the output of a business is to provide goods and services to customers, whereas the previous definition focused on returns in the form of dividends, lower costs or other economic benefits to investors and others. Management does not anticipate any material impact from the adoption of this amendment. Amendments to IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors (Effective for annual periods beginning on or after January 1, 2020, early adoption is permitted) The amendments to IAS 1 and IAS 8 use a consistent definition of materiality throughout IFRS and the Conceptual Framework for Financial Reporting, clarify the explanation of the definition of material and incorporate some of the guidance in IAS 1 about immaterial information. The amended definition is: “Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.” The amendment clarifies that the reference to obscuring information addresses situations in which the effect is similar to omitting or misstating that information. It also states that an entity assesses materiality in the context of the financial statements as a whole. The amendment also clarifies the meaning of “primary users of general purpose financial statements” to whom those financial statements are directed, by defining them as “existing and potential investors, lenders and other creditors” that must rely on general purpose financial statements for much of the financial information they need. Management does not anticipate any material impact from the adoption of this amendment. Amendments to IFRS 9 Financial Instruments, IAS 39 Financial Instruments: Recognition and Measurement and IFRS 7 Financial Instruments: Disclosures (Effective for annual periods beginning on or after January 1, 2020) The amendments provide targeted relief for financial instruments qualifying for hedge accounting in the lead up to interbank offered rates (IBORs) reform. As a result of these uncertainties, significant accounting judgment is involved in determining whether certain hedge accounting relationships that hedge the variability of foreign exchange and interest rate risk due to expected changes in IBORs continue to qualify for hedge accounting as of December 31, 2019. IBOR continues to be used as a reference rate in financial markets and is used in the valuation of instruments with maturities that exceed the expected end date for IBOR. Therefore, the Bank believes the current market structure supports the continuation of hedge accounting. Amendments to References to Conceptual Framework in IFRS Standards (Effective for annual periods beginning on or after January 1, 2020) The IASB has issued a revised Conceptual Framework which will be used in standard-setting decisions with immediate effect. The main changes include: - increasing the prominence of stewardship in the objective of financial reporting; - reinstating prudence as a component of neutrality; - defining a reporting entity, which may be a legal entity, or a portion of an entity; - revising the definitions of an asset and a liability; - removing the probability threshold for recognition and adding guidance on derecognition; - adding guidance on different measurement basis; and - stating that profit or loss is the primary performance indicator and that, in principle, income and expenses in other comprehensive income should be recycled where this enhances the relevance or faithful representation of the financial statements. Management does not anticipate any material impact from the adoption of these amendments. IFRS 17 Insurance contracts (Effective for annual periods beginning on or after January 1, 2021, earlier adoption is permitted) IFRS 17 establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts within the scope of the Standard. The objective of IFRS 17 is to ensure that an entity provides relevant information that faithfully represents those contracts. This information gives a basis for users of financial statements to assess the effect that insurance contracts have on the entity’s financial position, financial performance and cash flows. This Standard measures insurance contracts either under the general model or a simplified version of this called the Premium Allocation Approach. The general model is defined such that at initial recognition an entity shall measure a group of contracts at the total of (a) the amount of fulfilment cash flows (FCF), which comprise probability-weighted estimates of future cash flows, an adjustment to reflect the time value of money (TVM) and the financial risks associated with those future cash flows and a risk adjustment for non-financial risk; and (b) the contractual service margin (CSM). On subsequent measurement, the carrying amount of a group of insurance contracts at the end of each reporting period shall be the sum of the liability for remaining coverage and the liability for incurred claims. The liability for remaining coverage comprises the FCF related to future services and the CSM of the group at that date. The liability for incurred claims is measured as the FCF related to past services allocated to the group at that date. An entity may simplify the measurement of the liability for remaining coverage of a group of insurance contracts using the premium allocation approach on the condition that, at initial recognition, the entity reasonably expects that doing so would produce a reasonable approximation of the general model, or the coverage period of each contract in the group is one year or less. This Standard is not applicable as there is no insurance entity as subsidiary of the Bank nor any contracts within the scope of this Standard. c) Critical accounting estimates IFRS requires that Management make certain estimates and utilize certain assumptions to determine the valuation of items included in the consolidated financial statements and to make required disclosures. Although the actual results may differ, Management believes that the estimates and assumptions utilized were appropriate under the circumstances. The critical accounting estimates applied in the preparation of these consolidated financial statements and related footnote disclosures are as follows: Fair value measurement of certain financial instruments (see Note 2.d.iii and Note 45.d). 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, liquid and deep market (quoted price or market price). 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. In estimating the fair value of an asset or a liability, the Bank takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these consolidated financial statements for certain financial instruments is determined on such a basis, except for share-based payment transactions that are within the scope of IFRS 2 Share-based Payment , leasing transactions that are within the scope of IAS 17 and measurements that have some similarities to fair value but are not fair value, such as value in use in IAS 36 Impairment of Assets . When there is no market price available for an identical instrument, the Bank measures fair value using other valuation techniques that are commonly used by the financial markets that maximize the use of relevant observable inputs and minimize the use of unobservable inputs as explained in Note 2.d. The availability of observable prices or inputs varies by product and market, and may change over time. The level of Management judgment required in establishing fair value of financial instruments for which there is a quoted price in an active market is minimal. Similarly, there is little subjectivity or judgment required for instruments valued using valuation models that are standard across the industry and where all parameter inputs are quoted in active markets. The level of subjectivity and degree of Management judgment required are more significant for those instruments valued using specialized and sophisticated models and those where some or all of the parameter inputs are not observable. In making appropriate valuation adjustments, the Bank follows methodologies that consider factors such as liquidity and credit risk (both counterparty credit risk in relation to financial assets and its own credit risk in relation to financial liabilities, which are at fair value through profit or loss). Fair value estimates used in disclosures (see Note 2.d.iii and Note 45.d). For financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 according to IFRS 13 Fair Value Measurement based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows: · Level 1: inputs that are quoted market prices (unadjusted) in active markets for identical instruments; · Level 2: inputs other than quoted prices included within Level 1 that are observable either directly (i.e., as prices) or indirectly (i.e., derived from prices). This category includes instruments valued using: quoted market prices in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are considered less than active; or other valuation techniques in which all significant inputs are directly or indirectly observable from market data; and · Level 3: inputs that are unobservable. This category includes all instruments for which the valuation technique includes inputs not based on observable data and the unobservable inputs have a significant effect on the instrument’s valuation. This category includes instruments that are valued based on quoted prices for similar instruments for which significant unobservable adjustments or assumptions are required to reflect differences between the instruments. This disclosure is provided in Note 2.d.iii. For financial instruments measured at amortized cost (which include balances with the Central Bank, loans and advances, debt instruments, deposits and short-term and long-term debt issued), the Bank discloses the fair value. This disclosure is provided in Note 45.d; generally, there is no trading activity in these instruments and the fair value determination therefore requires significant Management judgment. - Allowance for impairment losses and provisions for off-balance sheet risk (see Note 2.g, Note 8.c, Note 9.c, Note 11.c and Note 24.f). From January 1, 2018, the Bank assesses on a forward-looking basis the expected credit losses associated with its financial assets carried at amortized cost and at fair value through other comprehensive income. The impairment methodology applied depends on whether there has been a significant increase in credit risk. The Bank considers a financial asset to have experienced a significant increase in credit risk, since initial recognition, taking into account different quantitative, qualitative or backstop criteria. If it is determined that a significant change in credit risk has occurred, the expected credit losses (ECL) are re-evaluated and the credit losses are quantified. The Bank uses the concept of expected credit loss methodology according to IFRS 9 to quantify the credit losses as further discussed in Note 2.g. The accounting estimates and judgments related to the allowance for impairment losses and provisions for off-balance sheet risk are a critical accounting estimate for the Bank because the underlying assumptions used to assess the impairment can change from period to period and may significantly affect the Bank’s operating results, particularly in circumstances of economic and financial uncertainty. Further, the statistical models incorporate numerous estimates and judgments (for example, Probability of Default, Loss Given Default and segmentation of loans in groups with similar credit risk characteristics, etc.). As such, the actual amount of the future cash flows and their timing may differ from the estimates used by Management and consequently may cause actual credit losses to differ from the recognized allowance for impairment losses or provisions for off-balance sheet risk. - The recognition and measurement of deferred tax assets (see Note 26.d). As discussed in Note 2.w, deferred tax assets and liabilities include temporary differences, which are identified as the amounts expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities and their related tax bases, tax losses and tax credit carryforwards. These amounts are measured at the tax rates that are expected to apply in the period when the asset is realized or the liability is settled. In determining the amount of deferred tax assets, the Bank uses current expectations and estimates on projections of future events and trends, which may affect the consolidated financial statements, including a review of the eligible carryforward periods, available tax planning opportunities and other relevant considerations. The Bank believes that the accounting estimate related to the deferred tax assets is a critical accounting estimate because it requires significant Management judgment and the underlying assumptions used in the estimate can change from period to period (for example, future projected operating performance of the Bank). - Goodwill and business combinations (see Note 16). Goodwill and intangible assets include the cost of acquired subsidiaries in excess of the fair value of the tangible net assets recognized in connection with acquisitions as well as acquired intangible assets. Accounting for goodwill and acquired intangible assets requires Management’s estimates regarding: (1) the fair value of the acquired intangible assets and the initial amount of goodwill to be recognized, (2) the amortization period (for identified intangible assets other than those with indefinite lives or goodwill) and (3) the recoverability of the carrying value of acquired intangible assets. The useful lives of acquired intangible assets are estimated based on the period over which the assets are expected to contribute directly or indirectly to the future cash flows of the Bank. To determine the initial amount of goodwill to be recognized on an acquisition, the Bank determines the fair value of the consideration and the fair value of the net assets acquired. The Bank uses internal analysis, generall |
Accounting policies
Accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
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. Foreign currency 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 in terms of historical cost in a foreign currency are not retranslated. The Bank performs a large number of foreign currency transactions, mainly in United States 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 $19.6512 per one USD and $18.8642 per one USD as of December 31, 2018 and 2019, respectively. iii. Recognition of exchange differences The exchange differences 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 other comprehensive income. 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 one of the following: · 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, the results 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. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with the Bank’s accounting policies. The financial statements of the subsidiaries are fully consolidated with those of the Bank. Accordingly, all intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between the members of the Bank are eliminated on consolidation. Non-controlling interests in subsidiaries are identified separately from the Bank’s equity therein. Those interests of non-controlling shareholders that are present ownership interests entitling their holders to a proportionate share of net assets upon liquidation may initially be measured at fair value or at the non-controlling interests’ proportionate share of the fair value of the acquiree’s identifiable net assets. The choice of measurement is made on an acquisition-by-acquisition basis. Other non-controlling interests are initially measured at fair value. Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests’ share of subsequent changes in consolidated equity. 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). 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. On acquisition of control of a subsidiary that meets the definition of a business, its assets, liabilities and contingent liabilities are recognized at their acquisition date fair value. 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 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 for which control is lost 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, 2018 and 2019 is summarized in Note 49. ii. Investments in associates and joint ventures (jointly controlled entities) An associate is an entity over which the Bank has significant influence and that is neither a subsidiary nor an interest in a joint venture. 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 Non-current Assets Held for Sale and Discontinued Operations . 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 36 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 IFRS 9. 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 associate or joint venture is disposed of. 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. The Bank applies IFRS 9, including the impairment requirements, to long-term interests in an associate or joint venture to which the equity method is not applied and which form part of the net investment in the investee. Furthermore, in applying IFRS 9 to long-term interests, the Bank does not take into account adjustments to their carrying amount required by IAS 28 (i.e. adjustments to the carrying amount of long-term interests arising from the allocation of losses of the investee or assessment of impairment in accordance with IAS 28). As of December 31, 2018 and 2019, the Bank did not have any associates. As of December 31, 2018 and 2019, the Bank has a commercial alliance with Elavon 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. On February 21, 2020, the Bank announced an agreement to acquire 49% of the shares representing the capital stock of Elavon (see Note 1.d.i). 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 as it is considered that the Bank exercise control over these structured entities. Note 11.g contains information regarding securitized mortgage assets. Share-based payments are discussed in Note 42.b, 42.c and 42.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. 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. When the consideration transferred by the Bank in a business combination includes 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 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. Other contingent consideration is remeasured to fair value at subsequent reporting dates with changes in fair value recognized in the consolidated income statement. When a business combination is achieved in stages, the Bank’s previously held interests in the acquired entity are 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 new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognized at that date. v. Business combinations under common control A common control transaction is a transfer of net assets or an exchange of equity interests between entities under the control of the same parent. A common-control transaction has no effect on the Ultimate Parent’s consolidated financial statements. The net assets are derecognized by the transferring entity and recognized by the receiving entity at their historical carrying amounts. Any difference between the consideration paid or received and the carrying amounts of the net assets is recognized in Shareholders’ equity within Accumulated reserves. vi. 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 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 IFRS 9, 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 a contract that evidences a residual interest in the assets of the issuing entity after deducting all of its liabilities. A financial derivative is 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 financial 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 financial 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: - Investments in associates and joint ventures (see Note 49) - Rights and obligations under employee benefit plans (see Note 24.c). - Contracts and obligations relating to employee remuneration based on own equity instruments. 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 have to be presented as Non-current assets held for sale or they relate to Cash and balances with the Central Bank or Hedging financial derivatives, which are reported separately. The classification criteria depends on the Bank’s business model for managing the financial assets and the contractual terms of its cash flows. The Bank reclassifies financial assets when, and only when, its business model for managing those financial assets changes. The business model reflects how the Bank manages the financial assets in order to generate cash flows. That is, whether the Bank’s objective is solely to collect the contractual cash flows from the financial assets or is to collect both the contractual cash flows and cash flows arising from the sale of financial assets. In determining the appropriate business models for a group of financial assets and assessing the SPPI requirements, the Bank takes into account the following factors: - How key management personnel are assessed and reported on the performance of the business model and the financial assets held in the business model. - The risks that affect the performance of the business model (and the financial assets held in the business model) and, specifically, the way in which these risks are managed. - How business managers are remunerated. - The evaluation of the past experience on how the cash flows of financial assets were collected. - The frequency and volume of sales in previous years, as well as expectations of future sales. - How certain contractual features are considered (i.e., interest rate reset frequency, prepayment commissions, among others) that significantly affect future cash flows. - The assessment of a compensation, paid or received on early termination that could result in cash flows that are not SPPI. Where the business model is to hold financial assets to collect contractual cash flows or to collect both the contractual cash flows and cash flows arising from the sale of financial assets, the Bank assesses whether the financial assets’ cash flows represent SPPI. In making this assessment (the “SPPI test”), the Bank considers whether the contractual cash flows are consistent with a basic lending arrangement. Depending on these factors, the financial asset can be measured at amortized cost, at FVTOCI, or at FVTPL. IFRS 9 also establishes an option to designate a financial instrument at FVTPL, under certain conditions. Where the contractual terms of the cash flows introduce exposures to risk or volatility that are inconsistent with a basic lending arrangement, the related financial assets are classified and measured at FVTPL. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are SPPI. Until December 31, 2017, the Bank applied IAS 39 under which the following categories existed for measurement purposes that are not applicable under IFRS 9: - Financial assets held for trading: This category included the financial assets acquired for the purpose of generating a profit in the near term from fluctuations in their prices and financial derivatives that were not designated as hedging instruments. - Other financial assets at fair value through profit or loss: This category included hybrid financial assets not held for trading that were measured entirely at fair value and financial assets not held for trading that were 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 were acquired or originated. - Available-for-sale financial assets: This category included 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 included 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. - Held-to-maturity investments: This category included debt instruments traded in an active market, with fixed maturity and with fixed or determinable payments, for which the Bank had both the intention and proven ability to hold 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 advances to credit institutions: loans of any nature, including deposits and money market transactions, provided to credit institutions. - Loans and advances to customers: includes the debit balances of all loans granted to customers by the Bank. - 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 financial derivatives, which do not form part of hedge accounting, including embedded derivatives separated from hybrid financial instruments. - Hedging derivatives: includes the fair value of financial 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 financial derivatives, which are reported separately. IAS 39 financial liabilities classification and measurement criteria remains substantially unchanged under IFRS 9. Nevertheless, in most cases, the changes in the fair value of financial liabilities designated at fair value with changes recognized through profit or loss for the year, due to the Bank’s credit risk, are classified under other comprehensive income. Financial liabilities are classified for measurement purposes into one of the following categories: - Financial liabilities at fair value through profit or loss: 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 (“reverse repos”), 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 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 basis, 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 orig |
Significant events
Significant events | 12 Months Ended |
Dec. 31, 2019 | |
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 Sale of the Custody business On July 24, 2015, Banco Santander (Spain) made an offer to the Bank to purchase their custody business. This offer was accepted by the Bank. The agreed sale price on that date was 1,191 million pesos. This offer required the Bank to transfer their custody 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 custody businesses in Spain, Mexico and Brazil; iii) authorizations must have been obtained from the Mexican authorities to establish a special purpose entity whose objective was the operation of the custody 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 22, 2016, Mexican authorities authorized Banco Santander (Spain) to establish and operate a new bank in Mexico named Banco S3 México, S.A., Institución de Banca Múltiple (Banco S3). The activities of Banco S3 would be focused on the specialized business of deposits, custody and management of securities and cash in Mexico. On February 2, 2018, the Mexican Ministry of Finance and Public Credit (Secretaría de Hacienda y Crédito Público or SHCP by its Spanish acronym) and the CNBV authorized Banco S3 to operate as a financial institution in Mexico. 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. The agreed sale price was 850 million pesos, of which 90% of the total amount was paid on February 9, 2018 and the remaining 10% would be paid one year after January 2, 2018. It was agreed by both parties, that the remaining 10% of the sale price could be adjusted contingent on the successful transfer of customers from the Bank to Banco S3. Later during October 2018, the agreed sale price was adjusted by 128 million pesos due to the low transfer rate of clients from the Bank to Banco S3 being the final sale price agreed of 722 million pesos. This transaction was considered executed between entities under common control, therefore the effect from the sale of the custody business was an increase of 506 million pesos in Accumulated reserves within Shareholders’ equity in the consolidated balance sheet. 3.2 Acquisition of shares of Bolsa Mexicana de Valores, S.A.B. de C.V. On November 22, 2017, through an assignment contract, the Bank acquired from Casa de Bolsa Santander México, S.A. de C.V., Grupo Financiero Santander México (hereinafter, “the Brokerage House”) its participation held in the Trust 1576 as depositary of 14,176,749 shares of Bolsa Mexicana de Valores, S.A.B. of C.V. (BOLSA A), as well as the rights and obligations derived from the Trust's contract, for an amount of 449 million pesos. 3.3 Authorization to incorporate Santander Inclusión Financiera, S.A. de C.V. On October 5, 2017, the SHCP authorized the incorporation of 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. 3.4 Corporate Restructuring Through the Ordinary and Extraordinary Shareholders' Meeting held on December 8, 2017, it was approved to carry out a “Corporate Restructuring” process that involved Grupo Financiero Santander México, S.A.B. de C.V. (hereinafter, “the Former 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. 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. The process of the Corporate Restructuring considered the following: Merger of companies On January 1, 2018, as part of the Corporate Restructuring, the Former Group was merged, as the merged entity, with the Bank, as the merging entity that subsists, the latter assuming all rights and obligations of the merged entity (the “Merger”). The Merger was carried out in accordance with the merger procedures provided in the Mexican Corporation Law, as well as specifically in the Financial Group Regulations Law and the Credit Institutions Law. The Merger consisted in carrying out the corporate acts necessary for the Bank to merge the Former Group, which ceased to exist and therefore its shares were deregistered from the National Registry of Securities of Mexico (Registro Nacional de Valores or RNV by its acronym in Spanish). As a result the shareholders of the Former Group received one share of the Bank for each share they owned of the Former Group. Accordingly, the shareholders that previously participated in the Former Group's share capital, now participate in the Bank’s share capital. To ensure that the exchange factor between the Former Group and the Bank's shares is equivalent to one, various corporate actions were approved at the Shareholders' Meeting of the Former Group on December 8, 2017, including a decree and payment of a cash dividend to the shareholders of the Former Group for an amount up to 1,950 million pesos and an equity concentration (reverse split) of the Bank's shares. The final amount of the dividend to make equivalent the book value of the shares of the Former Group with those of the Bank amounted to 1,822 million pesos, which was paid on January 25, 2018. Prior to the Merger, the Former Group was a “foreign private issuer” and its Series B shares were listed on the Bolsa Mexicana de Valores and its American Depositary Shares (ADS) representing the Former Group’s Series B shares were listed on the New York Stock Exchange (NYSE). Following the Merger, the Bank became the “foreign private issuer” and its Series B shares are listed on the Bolsa Mexicana de Valores and its ADS representing the Bank’s Series B shares are listed on the NYSE. On January 26, 2018, the merger agreements were registered in the Public Registry of Commerce; on the same date, the delivery of the Bank's shares through S.D. INDEVAL Institución para el Depósito de Valores, S.A. de C.V. (Institution for the Deposit of Securities or INDEVAL) to the Bank's shareholders was completed. The merger was accounted at the existing carrying amounts of the Bank and the Former Group given that this transaction is considered under common control. The total assets and total liabilities of the Former Group merged by the Bank amounted to 117 million pesos and 175 million pesos, respectively. Constitution of a new holding company Immediately after the Merger was fully effective, a new holding company called Grupo Financiero Santander México, S.A. de C.V. (hereinafter, the “New Financial Group”) was created, which was authorized to be organized as a financial group by resolution issued by the SHCP. As part of the constitution, Banco Santander, S.A. (Spain), as owner, contributed of all the shares representing the capital stock of the Bank. Consequently, the New Financial Group owns 74.96% of the shares representing the share capital of the Bank and 99.99% of the shares representing the share capital of the Brokerage House. Transfer of ownership of shares of the Brokerage House As part of the Merger, the Brokerage House became a direct subsidiary of the Bank due to the transfer of ownership of shares of the merged entity. However, according to Article 89 of the Credit Institutions Law, commercial banks in Mexico cannot hold ownership interest in broker-dealers. The aforementioned acquisition act is exclusively instrumental for the achievement of the Corporate Restructuring. Therefore, the Bank, as the merging entity of the Former Group, agreed to dispose of the shares of the Brokerage House simultaneously as the Merger was effective. The sale of shares representing the share capital of the Brokerage House is considered as part of the Corporate Restructuring. The sale price has been agreed between the Bank and the New Financial Group for an amount of 1,175 million pesos. The sale of shares representing the share capital of the Brokerage House originated a charge of 19 million pesos (net of income tax) to Accumulated reserves within Shareholders’ equity in the consolidated balance sheet given that this transaction is considered executed by entities under common control. Share-based payment transactions As a result of the Corporate Restructuring detailed above, the share-based payment transactions of the Bank will be settled through its own equity instruments starting January 1, 2018. The Bank changed from a cash-settled transaction to an equity-settled transaction. Consequently, it was derecognized the liability regarding those cash-settled transactions and it was recognized in Accumulated reserves within Shareholders’ equity an amount of 319 million pesos related to the equity-settled share-based payment. 3.5 Acquisition of Isban México, S.A. de C.V. On October 26, 2017, the Board of Directors approved the acquisition of Isban México, S.A. de C.V. (ISBAN) with the objective of creating a new technology operating model for the Bank. The CNBV authorized on September 14, 2018, the acquisition by the Bank of all the shares representing the capital stock of ISBAN. On October 11, 2018, the Bank acquired from Banco Santander, S.A. (Spain) for 1,077 million pesos, all the shares representing the capital stock of ISBAN. This acquisition originated a charge of 225 million pesos in Accumulated reserves within Shareholders’ equity in the consolidated balance sheet given that this transaction was considered executed by entities under common control. On October 15, 2018, the Board of Directors of ISBAN approved the change of its corporate name from ISBAN to Santander Tecnología México, S.A. de C.V. (Santander Tecnología México). The carrying amount of the assets acquired and liabilities assumed at the date of the acquisition were as follows: Carrying amount Assets: Cash 715 Tangible assets 457 Other assets 318 1,490 Liabilities: Other liabilities (638) Net assets acquired 852 Acquisition cost (1,077) Effect on acquisition (225) 3.6 Early settlement of Tier II Subordinated Capital Notes - Expiration of cash tender offer On September 26, 2018, the Bank completed a cash tender offer (Tender Offer) for any and all of its outstanding 5.95% Tier II Subordinated Capital Notes issued on December 27, 2013 with a ten-year maturity (January 30, 2024). The amount effectively tendered was USD 1,222,907,000 which represented 94.07% of such 5.95% Tier II Subordinated Capital Notes. On January 30, 2019, the Bank exercised its call option and amortized the remaining USD 77,093,000.00. 3.7 Issue of Tier II Subordinated Capital Notes due 2028 On October 1, 2018, the Bank issued 5.95% Tier II Subordinated Capital Notes due 2028 for a total of USD 1,300 million, meeting the capital requirements under Basel III criteria for complementary capital/Tier II. Banco Santander (Spain) purchased USD 975 million, or 75%, of these Subordinated Notes. The Tier II Subordinated Capital Notes due 2028 were offered in the United States of America through a private placement to qualified institutional buyers, in accordance with Rule 144A under the U.S. Securities Act of 1933, as amended (Securities Act), and outside the United States of America, in accordance with Regulation S under the Securities Act. 3.8 Change of corporate name On October 10, 2018, a modification in the Bank’s corporate name was duly approved such that, from that date, the Bank is named Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México. The modification consisted of eliminating the parentheses that were around the word “México”. 3.9 Exchange Offers On August 18, 2019, Banco Santander (Spain) announced the commencement of its exchange offers to acquire all the issued and outstanding Series B shares and ADSs of Banco Santander México in exchange for 0.337 of Banco Santander (Spain)´s ordinary share for each Banco Santander México´s Series B share and 1.685 Banco Santander (Spain)´s ADS for each Banco Santander México’s ADS. The exchange offers comprised a United States exchange offer and a concurrent Mexican exchange offer. The United States exchange offer was made pursuant to an offer to exchange/prospectus filed with the United States Securities and Exchange Commission on August 8, 2019, and was open to all United States holders of Banco Santander México´s Series B shares and all holders of Banco Santander México’s ADSs, wherever located. The Mexican exchange offer was made pursuant to a Mexican information statement and placement prospectus and was open to holders of Banco Santander México´s Series B shares. On September 6, 2019, Banco Santander (Spain) informed the expiration of the acceptance period of the exchange offers made for all the issued and outstanding Series B shares and ADSs of Banco Santander México. Share-based payment transactions As a result of the exchange offers detailed above, the share-based payment transactions for those executive officers that concurred to the exchange offers changed from an equity-settled transaction to a cash-settled transaction. Consequently, 122 million pesos were reclassified from Accumulated reserves within Shareholders’ equity to Other liabilities in the consolidated balance sheet. |
Distribution of the Bank's prof
Distribution of the Bank's profit and Earnings per share | 12 Months Ended |
Dec. 31, 2019 | |
Distribution of the Bank?s profit and Earnings per share | |
Distribution of the Bank?s profit and Earnings per share | 4. Distribution of the Bank’s profit and Earnings per share 4.1 Distribution of the Bank’s profit The distributions of the Bank’s profit for the years ended December 31, 2017, 2018 and 2019 approved by the Board of Directors during the annual general meetings are as follows: 2017 2018 2019 Profit of the year 18,678 19,356 20,381 Dividends declared 8,910 9,228 10,293 Dividend per share (pesos) 1.31 1.36 1.52 Date of payment 05/30/2017 and 06/29/2018 and 05/28/2019 and 12/27/2017 12/28/2018 12/27/2019 As mentioned in Notes 3.4 and 29.d, the Former Group declared a dividend of 1,822 million pesos in December 2018 to make equivalent the book value of the shares of the Former Group with those of the Bank, which was paid on January 25, 2018 by the Bank. 4.2 Earnings per share According 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 shares outstanding increases as a result of a capitalization, 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: 2017 2018 2019 Profit attributable to the Parent 18,678 19,353 20,381 Profit attributable to the Parent (net of non-controlling interest) 18,678 19,353 20,381 Weighted average number of shares outstanding 6,777,381,551 6,776,220,369 6,775,455,458 Basic earnings per share (pesos) 2.76 2.86 3.01 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, excluding the average number 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: 2017 2018 2019 Profit attributable to the Parent 18,678 19,353 20,381 Profit attributable to the Parent (net of non-controlling interest) 18,678 19,353 20,381 Weighted average number of shares outstanding 6,777,381,551 6,776,220,369 6,775,455,458 Dilutive effect of rights on shares 9,612,806 10,773,988 11,538,899 Adjusted number of shares 6,786,994,357 6,786,994,357 6,786,994,357 Diluted earnings per share (pesos) 2.75 2.85 3.00 |
Compensation of directors, exec
Compensation of directors, executive officers and other key management personnel | 12 Months Ended |
Dec. 31, 2019 | |
Compensation of directors, executive officers and other key management personnel | |
Compensation of directors, executive officers and other key management personnel | 5. 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. During 2019, the Director of operations and the Director of information technologies decided to step down. Other than the aforementioned personnel change, there were no significant changes in the Bank’s main key personnel from December 31, 2019 to the date on which these consolidated financial statements were authorized for issue. 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 12 million pesos during 2017, 15 million pesos during 2018 and 21 million pesos during 2019, paid as attendance fees. b) Remuneration of executive officers The aggregate amount for compensation and benefits to executive officers amounted to 416 million pesos during 2017, 496 million pesos during 2018 and 456 million pesos during 2019. The main benefits paid to the Bank’s executive officers are: salary, Christmas bonus, vacation bonus, holidays, performance bonus and share-based payments. 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 265 million pesos as of December 31, 2017, 331 million pesos as of December 31, 2018 and 472 million pesos as of December 31, 2019. d) Corporate performance shares plan 2014 On March 28, 2014, the shareholders of Banco Santander (Spain) approved a share-based variable compensation plan denominated “Corporate performance shares plan 2014” applicable only to a certain group of executive officers. This plan provided a variable compensation linked to the performance of the stock of Banco Santander (Spain). Details of the plan are presented in Note 42.b. e) Long-term incentive plan 2015 Since September 2016, the Bank began to participate in a corporate share-based variable compensation plan denominated “Long-term incentive plan 2015” applicable only to a certain group of executive officers. This plan provided a variable compensation linked to the growth of the earnings per share ratio and of the return on tangible equity of Banco Santander (Spain). Details of the plan are presented in Note 42.c. f) Loans to executive officers The loans granted to executive officers amount to 48 million pesos and 102 million pesos as of December 31, 2018 and 2019, respectively. |
Cash and balances with the Cent
Cash and balances with the Central Bank | 12 Months Ended |
Dec. 31, 2019 | |
Cash and balances with the Central Bank | |
Cash and balances with the Central Bank | 6. Cash and balances with the Central Bank The breakdown by type of balances of Cash and balances with the Central Bank is as follows: 12/31/2018 12/31/2019 Cash 25,080 25,793 Central Bank compulsory deposits 28,094 28,094 Deposits in the Central Bank 2,110 11,292 Accrued interest 26 28 55,310 65,207 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 45.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 45.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, 2019 | |
Loans and advances to credit institutions | |
Loans and advances to credit institutions | 7. 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: 12/31/2018 12/31/2019 Classification: Other financial assets at fair value through profit or loss 98,332 54,138 Financial assets at amortized cost 47,034 36,895 91,033 Type: Reciprocal accounts 15,310 14,597 Time deposits 51 29 Guarantee deposits - Collateral delivered for OTC financial derivatives transactions (Note 32) 29,508 14,300 Reverse repurchase agreements 98,332 54,138 Other accounts 2,165 7,969 91,033 Currency: Peso 73,268 USD 43,986 17,429 Other currencies 971 336 91,033 As of December 31, 2018 and 2019, time deposits consist of 51 million pesos and 29 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%. As of December 31, 2018 and 2019, 29,508 million pesos and 14,300 million pesos, respectively, of loans and advances to credit institutions, have been pledged in connection with OTC financial derivatives transactions, and are classified as restricted assets within Loans and advances to credit institutions – Financial assets at amortized cost (see Note 32). As of December 31, 2018 and 2019, 98,458 million pesos and 54,097 million pesos, respectively, of debt instruments have been received as collaterals in connection with 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 45.a includes a breakdown of the remaining maturity of Loans and advances to credit institutions. Additionally, Note 45.d includes the fair value amounts of these assets classified as Loans and advances to credit institutions – Financial assets at amortized cost. |
Debt instruments
Debt instruments | 12 Months Ended |
Dec. 31, 2019 | |
Debt Instruments | |
Debt Instruments | 8. Debt instruments a) Breakdown The breakdown by classification, type and currency of the balances of Debt instruments is as follows: 12/31/2018 12/31/2019 Classification: Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets at amortized cost 52,419 11,257 Type: Mexican government debt securities Of which: Collateral delivered for OTC financial derivatives transactions (Note 32) 4,769 4,472 Foreign government debt securities 54,297 69,113 Of which: Brazilian Government Notes 31,210 30,225 US Government Treasury Bills (T-BILLS) 23,087 34,506 US Government Treasury Notes (T-NOTES) — 4,382 Debt securities issued by financial institutions 5,998 2,270 Other debt securities 3,282 10,463 Currency: Peso USD 27,749 47,897 Brazilian Real (BRL) 31,210 30,225 Other currencies 30,913 34,079 The breakdown of the Debt instruments classified as at fair value through profit or loss is as follows: 12/31/2018 12/31/2019 Federal Treasury Securities (CETES) 14,270 25,348 United Mexican States Bonds (UMS) 40 30 Federal Mexican Government Development Bonds (BONDES) 20,910 29,708 M and M10 Mexican Government Bonds 27,783 11,601 Mexican Bank Saving Protection Bonds (BPATS) 29,208 13,750 Federal Mexican Government Development Bonds in UDIS (1) (UDIBONDS) 10,524 4,619 T-BILLS 1,473 10,928 T-NOTES — 4,382 Other debt securities 6,014 10,247 110,222 110,613 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, 2018 and 2019, one UDI was equal to 6.22663 pesos and 6.39901 pesos, respectively. As of December 31, 2018 and 2019, 4,769 million pesos and 4,472 million pesos, respectively, of debt instruments, have been pledged in connection with OTC financial derivatives transactions, and are classified as restricted assets within Debt instruments - Financial assets at fair value through profit or loss (see Note 32). As of December 31, 2018 and 2019, 27,592 million pesos (27,301 million pesos in which the lender was the Central Bank) and 8,678 million pesos (as of December 31, 2019 there were no transactions with the Central Bank), respectively, of Debt instruments, have been pledged in connection with securities loan transactions and are classified as restricted assets within Debt instruments - Financial assets at fair value through profit or loss. As of December 31, 2018 and 2019, 74,548 million pesos and 92,764 million pesos, respectively, of Debt instruments, have been pledged in connection with repurchase agreement transactions and are classified as restricted assets within Debt instruments - Financial assets at fair value through profit or loss. The breakdown of the Debt instruments classified as Financial assets at fair value through other comprehensive income is as follows: 12/31/2018 12/31/2019 CETES 17,146 — UMS 34,688 43,058 M, M3 and M5 Mexican Government Bonds 29,919 117,974 BPATS 11,509 11,499 UDIBONDS 5,131 4,643 T-BILLS 21,614 23,578 Brazilian Government Notes 31,210 30,225 Other debt securities 3,266 2,486 154,483 233,463 As of December 31, 2018 and 2019, 18,463 million pesos and 96,681 million pesos, respectively, of Mexican government securities (M Bonds, BPATS, UMS and other debt securities) have been pledged in connection with repurchase agreement transactions, and are classified as restricted assets within Debt instruments - Financial assets at fair value through other comprehensive income. The following is a breakdown of the gross carrying amount of the Financial assets at fair value through other comprehensive income as of December 31, 2019: Fair value Stage 1 Stage 2 Subtotal Stage 3 Total Financial assets at fair value through other comprehensive income Of which: Mexican government debt instruments 177,174 — 177,174 — 177,174 Foreign government debt instruments 53,803 — 53,803 — 53,803 Other fixed-income interest debt instruments 2,486 — 2,486 — 2,486 233,463 — 233,463 — 233,463 During 2019, there were no transfers between stages related to the fair value (neither the corresponding allowance for impairment losses) of the financial assets at fair value through other comprehensive income, which are classified within Stage 1. The breakdown by issuer rating of Debt instruments at December 31, 2018 is as follows: Private Debt Sovereign Debt Total % AAA — 23,087 23,087 7.28 % A 3,189 184,195 187,384 59.09 % BBB 847 34,728 35,575 11.22 % BB 5,013 34,624 39,637 12.50 % Below B — 31,210 31,210 9.84 % Below BBB 231 — 231 0.07 % 9,280 307,844 317,124 100 % The breakdown by issuer rating of Debt instruments at December 31, 2019 is as follows: Private Debt Sovereign Debt Total % AAA — 38,888 38,888 10.94 % A 12,480 226,928 239,408 67.38 % BBB — 43,088 43,088 12.13 % BB — 3,471 3,471 0.98 % Below B — 30,225 30,225 8.51 % Below BBB 253 — 253 0.07 % 12,733 342,600 355,333 100 % As of December 31, 2018 and 2019, BBB ratings balance includes mainly sovereign exposures in Mexico. As of December 31, 2018 and 2019, BB ratings balance includes mainly sovereign exposures in Mexico. During January 2019, the rating agency Fitch downgraded the credit rating of Petróleos Mexicanos (PEMEX - Mexican state oil company) to BBB- from BBB+. Additionally, on June 6, 2019, Fitch assigned a new credit rating of BB+ to PEMEX, down from BBB-, downgrading PEMEX Bonds to junk. The breakdown of the Debt instruments classified as Financial assets at amortized cost is as follows: 12/31/2018 12/31/2019 Special CETES 3,208 3,471 BREMS R 7,785 7,786 M, M3 and M5 Mexican Government Bonds 41,426 — 52,419 11,257 Type: Unquoted 3,208 3,471 Quoted 49,211 7,786 As of December 31, 2018 and 2019, 6,622 million pesos and 4,999 million pesos, respectively, of BREMS R have been pledged in connection with repurchase agreement transactions and are classified as restricted assets within Debt instruments - Financial assets at amortized cost. As of December 31, 2018, 1,672 million pesos of Mexican Government Bonds had been pledged in connection with repurchase agreement transactions and were classified as restricted assets within Debt instruments - Financial assets at amortized cost. As of December 31, 2019, there were no Mexican Government Bonds pledged in connection with repurchase agreement transactions and are classified as restricted assets within Debt instruments - Financial assets at amortized cost. As of December 31, 2018, 535 million pesos of Mexican Government Bonds have been pledged in connection with securities loan transactions and were classified as restricted assets within Debt instruments - Financial assets at amortized cost. As of December 31, 2019, there were no Mexican Government Bonds pledged in connection with securities loan transactions and are classified as restricted assets within Debt instruments - Financial assets at amortized cost. The following is a breakdown of the gross carrying amount of the Financial assets at amortized cost as of December 31, 2019: Gross carrying amount Stage 1 Stage 2 Subtotal Stage 3 Total Financial assets at amortized cost Of which: Mexican government debt instruments 11,257 — 11,257 — 11,257 During 2019, there were no transfers between stages related to the gross carrying amount of the Financial assets at amortized cost, which are classified within Stage 1. b) Changes The changes in Financial assets at fair value through other comprehensive income - Debt instruments, were as follows: 2017 2018 2019 Beginning balance 154,318 Reclassification from Available-for-sale to Amortized cost — (73,131) — Beginning balance as restated 154,318 91,816 Net additions/(disposals) 8,703 63,824 75,061 Valuation adjustments 1,935 (1,226) 4,108 Amounts reclassified to consolidated income statement (9) 69 (189) Balance at year-end 164,947 154,483 233,463 c) Allowance for impairment losses The following is a breakdown of the allowance for loan losses of Financial assets at fair value through other comprehensive income and at amortized cost as of December 31, 2019: Allowance for impairment losses Stage 1 Stage 2 Stage 3 Total Written-off financial assets Financial assets at fair value through other comprehensive income 23 — — 23 — Of which: Mexican government debt instruments 22 — — 22 — Other fixed-income interest debt instruments 1 — — 1 — Financial assets at amortized cost — — — — — 23 — — 23 — The following is a breakdown of the allowance for loan losses of Financial assets at fair value through other comprehensive income and at amortized cost as of December 31, 2018: Allowance for impairment losses Stage 1 Stage 2 Stage 3 Total Written-off financial assets Financial assets at fair value through other comprehensive income 20 — — 20 — Of which: Mexican government debt instruments 19 — — 19 — Other fixed-income interest debt instruments 1 — — 1 — Financial assets at amortized cost — — — — — 20 — — 20 — The change in the allowance for impairment losses of Financial assets at fair value through other comprehensive income during 2018 and 2019, amounts to 2 million pesos and 3 million pesos, respectively. There were no allowance for impairment losses recognized during 2018 and 2019, related to Financial assets at amortized cost. d) Other information Note 45.a contains a breakdown of the remaining maturity periods of Financial assets at fair value through other comprehensive income - Debt Instruments. Additionally, Note 45.d includes the fair value amounts of these assets classified as Debt instruments - Financial assets at amortized cost. |
Equity instruments
Equity instruments | 12 Months Ended |
Dec. 31, 2019 | |
Equity instruments | |
Equity instruments | 9. Equity instruments a) Breakdown The breakdown by classification and type of Equity instruments is as follows: 12/31/2018 12/31/2019 Classification: Financial assets at fair value through profit or loss 2,349 5,767 Financial assets at fair value through other comprehensive income 535 642 2,884 6,409 Type: Shares of Mexican companies 2,884 6,409 Shares of foreign companies — — 2,884 6,409 As of December 31, 2018 and 2019, 333 million pesos and 14 million pesos, respectively, of equity instruments have been received as guarantees and/or collateral in connection with the securities loan transactions within Equity instruments - Financial assets at fair value through profit or loss (see Note 31). As of December 31, 2018, 959 million pesos of equity instruments, have been pledged in connection with securities loan transactions and are classified as restricted assets within Equity instruments - Financial assets at fair value through profit or loss. As of December 31, 2019 there were no equity instruments pledged in connection with securities loan transactions. Note 45.a contains a breakdown of the remaining maturity periods of these assets. b) Changes The changes in Financial assets at fair value through other comprehensive income - Equity instruments, were as follows: 2017 2018 2019 Beginning balance as of January 1 326 795 535 Recognition of own equity instruments held for future equity-settled share-based payments (Note 3.4) — (247) — Transfer to non-current assets held for sale — — — Net additions/(disposals) 472 — — Valuation adjustments (3) (13) 107 Amounts reclassified to consolidated income statement — — — Balance at year-end 795 535 642 Note 28.a includes a breakdown of the valuation adjustments recognized in other comprehensive income under Valuation adjustments - Financial assets at fair value through other comprehensive income. c) Allowance for impairment losses As of December 31, 2018 and 2019 and during 2017, 2018 and 2019, the Bank has not recognized any impairment on equity instruments. |
Trading derivatives (assets and
Trading derivatives (assets and liabilities) and Short positions | 12 Months Ended |
Dec. 31, 2019 | |
Trading derivatives (assets and liabilities) and Short positions | |
Trading derivatives (assets and liabilities) and Short positions | 10. Trading derivatives (assets and liabilities) and Short positions a) Trading derivatives The breakdown by type of inherent risk of the fair value of Trading derivatives arranged by the Bank is as follows (see Note 32): 12/31/2018 12/31/2019 Debit Credit Debit Credit Balance Balance Balance Balance Interest rate risk 71,269 71,578 80,499 76,639 Currency risk 82,619 80,986 71,026 67,623 Market price risk 1,065 1,163 222 219 154,953 153,727 151,747 144,481 Note 45.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: 12/31/2018 12/31/2019 Securities loans: Debt instruments 27,279 8,280 Equity instruments 960 — 28,239 8,280 Short sales: Debt instruments 680 839 28,919 9,119 Until 2018, the Bank presented pledged financial assets acquired under reverse repurchase agreements as Financial liabilities at fair value through profit or loss – Short positions. During 2019, the Bank decided to present the sale of financial assets acquired under reverse repurchase agreements and pledged in repurchase agreement transactions as Other financial liabilities at fair value through profit or loss (Deposits from credit institutions – Repurchase agreements and Customer deposits – Repurchase agreements) (see note 2.ae). Note 45.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, 2019 | |
Loans and advances to customers | |
Loans and advances to customers | 11. 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: 12/31/2018 12/31/2019 Other financial assets at fair value through profit or loss 9,093 25,789 Financial assets at fair value through other comprehensive income 771 2,875 Financial assets at amortized cost Of which: Before allowance for impairment losses 750,305 Allowance for impairment losses (21,516) (21,970) As of December 31, 2018 and 2019, 3,689 million pesos and 5,153 million pesos, respectively, of Loans and advances to customers have been pledged in connection with financial derivatives traded in organized markets, and are classified as restricted assets within Loans and advances to customers – Other financial assets at fair value through profit or loss (see Note 32). Note 45.a includes a breakdown of the remaining maturity of Loans and advances to customers. Additionally, Note 45.d includes the fair value amounts of these assets classified as Loans and advances to customers – Financial assets at amortized cost. 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: 12/31/2018 12/31/2019 By loan type: Commercial, financial and industrial loans 365,438 373,943 Public sector loans 59,547 70,450 Mortgage loans 137,404 147,810 Reverse repurchase agreements 9,093 25,789 Installment loans to individuals - Revolving consumer credit card loans 54,511 57,760 Non-revolving consumer loans 53,730 56,601 Impaired loans 18,429 17,952 698,152 750,305 By borrower sector: Public sector 59,547 70,450 Individuals 257,132 274,053 Communications and transportation 33,373 35,773 Construction 45,333 47,872 Manufacturing 65,273 63,652 Services 185,382 122,970 Tourism 21,870 25,244 Other sectors 30,242 110,291 698,152 750,305 By geographical area: Mexico 698,152 750,305 698,152 750,305 By interest rate: Fixed rate 255,571 270,930 Floating rate 442,581 479,375 698,152 750,305 As of December 31, 2018 and 2019, 9,103 million pesos and 8,115 million pesos, respectively, of debt instruments have been received as collaterals in connection with reverse repurchase agreement transactions within Loans and advances to customers - Other financial assets at fair value through profit or loss (see Note 31). c) Valuation adjustments for impairment of financial assets The following is a breakdown of the gross carrying amount of Financial assets at fair value through other comprehensive income and Financial assets at amortized cost as of December 31, 2019: Fair value/Gross carrying amount Stage 1 Stage 2 Subtotal Stage 3 (*) Total Financial assets at fair value through other comprehensive income 2,880 — 2,880 — 2,880 Of which: Commercial, financial and industrial loans 2,880 — 2,880 — 2,880 Financial assets at amortized cost 676,508 27,176 703,684 17,952 721,636 Of which: Commercial, financial and industrial loans 371,063 5,815 376,878 Public sector loans 70,450 — 70,450 — 70,450 Mortgage loans 7,738 8,399 156,209 Installment loans to individuals - 7,040 3,738 118,099 Revolving consumer credit card loans 54,292 3,468 57,760 1,717 59,477 Non-revolving consumer loans 53,029 3,572 56,601 2,021 58,622 (*) As of December 31, 2019 there were no POCI financial assets. The following is a breakdown of the transfers of Financial assets at amortized cost between stages as of December 31, 2019: Gross carrying amount Stage 1 Stage 2 Stage 3 Total As of January 1, 2019 643,475 26,382 18,429 688,286 Transfers: Transfer from Stage 1 to Stage 2 (84,239) 84,239 — — Transfer from Stage 1 to Stage 3 (2,244) — 2,244 — Transfer from Stage 2 to Stage 3 — 28,017 — Transfer from Stage 2 to Stage 1 54,716 — — Transfer from Stage 3 to Stage 2 — 4,403 (4,403) — Transfer from Stage 3 to Stage 1 2,628 — (2,628) — Remaining in same stage (*) 2,090 1,576 Financial assets derecognized during the period other than write-offs (554,689) (7,215) (3,828) (565,732) Originated financial assets 853,967 — — 853,967 Write-offs — — (21,333) Other movements (148) 10 (122) (260) As of December 31, 2019 676,508 27,176 17,952 721,636 (*) Includes mainly payments of principal and accrued interest. · The change in the gross carrying amount of financial instruments that were transferred from Stage 1 to Stage 2 amounting 84,239 million pesos, resulted in an additional allowance for impairment losses of 12,754 million pesos. The main driver of the change is the increase in the Lifetime PD used to determine the allowance for impairment losses of these instruments. · The change in the gross carrying amount of financial instruments that were transferred from Stage 2 to Stage 3 amounting 28,017 million pesos, result in additional allowance for impairment losses of 4,321 million pesos. The change is not significant because Lifetime PD is used to determine the allowance for impairment losses for both stages. · The change in the gross carrying amount of financial instruments that were transferred from Stage 2 to Stage 1 amounting 54,716 million pesos, result in a decrease in the allowance for impairment losses of 7,418 million pesos. The main driver of the change is the use of a twelve-month PD instead of a PD forward-looking PD. · The gross carrying amount of financial instruments originated in 2019 that amounts to 853,967 million pesos, results in an increase in the allowance for impairment losses of 4,295 million pesos. d) Allowance for impairment losses The changes in the allowance for impairment losses on Loans and advances to customers were as follows: 2017 2018 2019 Beginning balance as of January 1 (as originally presented) (17,883) (16,929) (21,516) Adjustments on initial adoption of IFRS 9 — (3,270) — Beginning balance as of January 1 (restated) (17,883) (20,199) (21,516) Impairment losses on financial assets - Financial assets at amortized cost (*) (20,771) (20,947) (21,673) Impairment losses on financial assets - Financial assets at fair value through other comprehensive income — (2) (5) Write-off of impaired loans applied against the allowance for impairment losses 21,733 19,678 21,154 Others (8) (46) 70 Balance at year-end (16,929) (21,516) (21,970) Of which: By geographical location of risk: Mexico (*) The following is a breakdown of the allowance for impairment losses and the written-off financial assets as of December 31, 2019: Allowance for impairment losses Stage 1 Stage 2 Stage 3 Total Written-off financial assets Financial assets at fair value through other comprehensive income 5 — — 5 — Of which: Commercial, financial and industrial loans 5 — — 5 — Financial assets at amortized cost 7,249 5,466 9,250 21,965 21,154 Of which: Commercial, financial and industrial loans 2,022 1,787 4,326 8,135 6,038 Public sector loans 8 — — 8 — Mortgage loans 623 660 2,033 3,316 1,775 Installment to individuals - 4,596 3,019 2,891 10,506 13,341 Revolving consumer credit card loans 2,330 1,598 1,352 5,280 7,536 Non-revolving consumer loans 2,266 1,421 1,539 5,226 5,805 The contractual amount outstanding of financial assets written-off during 2019, that are still subject to enforcement activities, amounts to 17,327 million pesos. The following is a breakdown of the transfers of the allowance for impairment losses of Financial assets between stages as of December 31, 2019: Allowance for impairment losses Stage 1 Stage 2 Stage 3 Total Beginning balance as of January 1 7,035 5,309 9,172 21,516 As of January 1, 2019 Transfers: Transfer from Stage 1 to Stage 2 (4,369) 17,123 — 12,754 Transfer from Stage 1 to Stage 3 (131) — 393 262 Transfer from Stage 2 to Stage 3 — 4,321 Transfer from Stage 2 to Stage 1 2,484 (9,902) — (7,418) Transfer from Stage 3 to Stage 2 — 659 (1,429) (770) Transfer from Stage 3 to Stage 1 140 — (474) (334) Financial assets derecognized during the period other than write-offs (2,089) (1,092) (1,449) (4,630) Contracts remaining at the same stage (481) 6,180 2,328 8,027 Write-offs — — Originated financial assets 4,295 — — 4,295 Foreign exchange and other movements 370 (264) 4,995 5,101 As of December 31, 2019 7,254 5,466 9,250 21,970 e) Impaired loans The breakdown of the changes in the balance of the financial assets classified as Financial assets at amortized cost – Loans and advances to customers that are considered to be impaired due to credit risk is as follows: 2017 2018 2019 Beginning balance 17,595 18,132 18,429 Additions 34,180 32,461 31,418 Transfers to performing loans Written-off loans (21,733) (19,678) (21,154) Balance at year - end 18,132 18,429 17,952 The breakdown between no past due and past due as of December 31, 2018 of the balance of the financial assets classified as Financial assets at amortized cost – Loans and advances to customers that are considered to be impaired 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 2,138 1,531 112 880 1,877 6,538 Mortgage loans 2,098 1,447 844 662 3,294 8,345 Installment loans to individuals Of which: Revolving consumer credit card loans 530 1,186 — — — 1,716 Non-revolving consumer loans 484 1,345 — — 1 1,830 5,250 5,509 956 1,542 5,172 18,429 The breakdown between no past due and past due as of December 31, 2019 of the balance of the financial assets classified as Financial assets at amortized cost - Loans and advances to customers, that are considered to be impaired, 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 1,427 1,640 404 291 2,053 5,815 Mortgage loans 3,701 1,142 703 498 2,355 8,399 Installment loans to individuals Of which: Revolving consumer credit card loans 536 1,181 — — — 1,717 Non-revolving consumer loans 527 1,492 1 — 1 2,021 6,191 5,455 1,108 789 4,409 17,952 f) 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, 2017, 2018 and 2019 is as follows: For the Year Ended 12/31/2017 For the Year Ended 12/31/2018 For the Year Ended 12/31/2019 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 879 — 1,028 1,907 1,318 — 3,011 4,329 1,215 — 2,318 3,533 Mortgage loans 22 — 1 23 603 — 530 1,133 369 — 293 662 Installment loans to individuals 1,086 — 186 1,272 1,147 — 205 1,352 850 — 306 1,156 1,987 — 1,215 3,202 3,068 — 3,746 6,814 2,434 — 2,917 5,351 Percentage 62 % — 38 % 100 % 57 % — 70 % 100 % 45 % — 55 % 100 % Impaired loans that are renegotiated continue to be classified as impaired loans until the sustained payment criteria and other considerations are 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. The net modification effect from financial assets whose cash flows were modified during the period as part of the Bank’s renegotiation programs was deemed to be immaterial. See Note 48(b) 3.6 Recovery and collections management for additional information regarding renegotiated loans. g) 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 financial 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 collateral 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 instruments), 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 financial derivatives transactions. Collateralized by securities - collateral to secure the payments in repurchase agreements and reverse repurchase agreements transactions. Collection rights - highly liquid and realizable guarantees, which are mainly comprised of standby letters and pledges on funds and securities. Real estate. · Guarantees, 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 48(b) 3.4 Transaction decision-making for additional information regarding credit risk mitigation techniques. The breakdown is as follows: 12/31/2018 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 at fair value through profit or loss 265,175 218,651 46,524 42,480 4,044 — — — Other financial assets at fair value through profit or loss 107,425 — 107,425 — 107,560 — — — Financial assets at fair value through other comprehensive income 155,256 155,256 — — — — — — Financial assets at amortized cost: 787,739 348,767 438,972 — — 124,725 222,490 11,945 Of which: Loans and advances to credit institutions 47,034 47,034 — — — — — — Loans and advances to customers 688,286 249,314 438,972 — — 124,725 222,490 11,945 Commercial, financial and industrial loans 371,203 96,967 274,236 — — 102,905 97,167 11,945 Public sector loans 59,547 21,385 38,162 — — 21,794 — — Mortgage loans 145,749 20,226 125,523 — — — 123,353 — Installment loans to individuals: Revolving consumer credit card loans 56,227 56,227 — — — — — — Non-revolving consumer loans 55,560 54,509 1,051 — — 26 1,970 — Debt instruments 52,419 52,419 — — — — — — Guarantees and loan commitments 94,267 94,267 — — — — — — Available lines of credit cards and non-revolving consumer loans — — — — — — — 1,409,862 816,941 592,921 42,480 111,604 124,725 222,490 11,945 (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 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. (3) Public sector loan rights are guaranteed by Mexican government entities. 12/31/2019 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 at fair value through profit or loss 262,360 239,865 22,495 16,759 5,736 — — — Other financial assets at fair value through profit or loss 79,927 — 79,927 — 76,592 — — — Financial assets at fair value through other comprehensive income 236,343 236,343 — — — — — — Financial assets at amortized cost: 769,788 316,232 — — 69,732 148,360 8,118 Of which: Loans and advances to credit institutions 36,895 36,895 — — — — — — Loans and advances to customers 721,636 268,080 — — 69,732 148,360 8,118 Commercial, financial and industrial loans 376,878 106,672 270,206 — — 45,058 25,308 8,118 Public sector loans 70,450 26,867 43,583 — — 24,646 — — Mortgage loans 156,209 19,077 — — — 120,461 — Revolving consumer credit card loans 59,477 59,477 — — — — — — Non-revolving consumer loans 58,622 55,987 2,635 — — 28 2,591 — Debt instruments 11,257 11,257 — — — — — — Guarantees and loan commitments 80,169 80,169 — — — — — — 1,428,587 872,609 555,978 16,759 82,328 69,732 148,360 8,118 (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 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. (3) Public sector loan rights are guaranteed by Mexican government entities. Credit quality information For 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 Aa1 AA+ 9.0 Aa2 AA 8.6 Aa3 AA- 8.1 A1 A+ 7.7 A2 A 7.3 A3 A- 6.7 Baa1 BBB+ 6.1 Baa2 BBB 5.6 Baa3 BBB- 5.0 Ba1 BB+ 4.4 Ba2 BB 3.9 Ba3 BB- 3.3 B1 B+ 2.7 B2 B 2.2 B3 B- 1.6 Caa1 CCC 1.0 Ca CC For commercial loans (SMEs), mortgage loans and installment loans to individuals (revolving credit card consumer loans and non-revolving consumer loans), expected credit 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 commercial loans (except SMEs) and public sector loans and their related guarantees and loan commitments not recognized on the consolidated balance sheet: 12/31/2018 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) — — — — — 2,012 17,068 25,236 54,471 85,467 73,559 15,383 4,814 833 1,158 246 218 — 2,140 12,098 294,703 Public sector loans — — 5,200 — — 23,195 179 — 6,049 9,278 14,190 1,456 — — — — — — — — 59,547 — — 5,200 — — 25,207 17,247 25,236 60,520 94,745 87,749 16,839 4,814 833 1,158 246 218 — 2,140 12,098 354,250 Financial instruments not recognized on the consolidated balance sheet: Guarantees 622 — — 2,840 12,897 8,313 26,172 4,551 10,822 3,936 2,040 1,299 3 — — — 75 — — 2,586 76,156 Loan commitments — — — 203 366 237 239 113 2,290 7,798 5,273 756 63 3 5 — 19 — — 485 17,850 622 — — 3,043 13,263 8,550 26,411 4,664 13,112 11,734 7,313 2,055 66 3 5 — 94 — — 3,071 94,006 622 — 5,200 3,043 13,263 33,757 43,658 29,900 73,632 106,479 95,062 18,894 4,880 836 1,163 246 312 — 2,140 15,169 448,256 12/31/2019 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) — — — — — 2,004 21,925 33,028 32,090 75,766 94,840 21,098 5,734 1,112 1,453 235 301 — 1,477 12,144 303,207 Public sector loans — — 4,506 — — — 26,566 2,055 5,491 13,684 16,297 1,285 — — — — — — — 566 70,450 — — 4,506 — — 2,004 48,491 35,083 37,581 89,450 111,137 22,383 5,734 1,112 1,453 235 301 — 1,477 12,710 373,657 Financial instruments not recognized on the consolidated balance sheet: Guarantees 597 — — 4,009 15,457 4,347 8,290 12,566 5,848 3,780 2,082 167 — — — — 75 — — 913 58,131 Loan commitments — — — 57 139 301 20 228 3,472 6,119 5,877 1,443 76 — — — — — — 363 18,095 597 — — 4,066 15,596 4,648 8,310 12,794 9,320 9,899 7,959 1,610 76 — — — 75 — — 1,276 76,226 597 — 4,506 4,066 15,596 6,652 56,801 47,877 46,901 99,349 119,096 23,993 5,810 1,112 1,453 235 376 — 1,477 13,986 449,883 The tables below represent the classification by rating category of commercial loans (SMEs), mortgage loans, revolving consumer credit card loans and non-revolving consumer loans and their related commitments not recognized on the consolidated balance sheet: 12/31/2018 Rating Category A-1 A-2 B-1 B-2 B-3 C-1 C-2 D E Not Rated Total Commercial loans (SMEs) 57,411 7,716 1,843 2,276 4,176 1,308 538 1,673 332 — 77,273 Mortgage loans 107,435 4,623 3,576 9,504 2,712 5,731 3,655 3,525 889 4,099 145,749 Revolving consumer credit card loans 2,896 15,463 15,052 5,743 2,858 4,694 4,580 3,584 1,357 — 56,227 Non-revolving consumer loans 9,180 6,953 11,815 8,092 7,111 5,068 2,534 1,064 2,862 881 55,560 176,922 34,755 32,286 25,615 16,857 16,801 11,307 9,846 5,440 4,980 334,809 Financial instruments not recognized on the consolidated balance sheet: Available lines of credit cards and non-revolving consumer loans 6,365 5,240 5,743 3,460 2,601 3,603 3,676 1,600 1,907 — 34,195 Guarantees 85 — — — — — — — — — 85 Loan commitments 174 — — — — — — — — — 174 6,624 5,240 5,743 3,460 2,601 3,603 3,676 1,600 1,907 — 34,454 183,546 39,995 38,029 29,075 19,458 20,404 14,983 11,446 7,347 4,980 369,263 12/31/2019 Rating Category A-1 A-2 B-1 B-2 B-3 C-1 C-2 D E Not Rated Total Commercial loans (SMEs) 50,253 6,730 2,553 2,575 9,046 2,068 723 1,941 674 — 76,563 Mortgage loans 117,983 3,384 1,685 14,161 1,114 4,936 3,465 4,507 694 211 152,140 Revolving consumer credit card loans 3,165 17,396 16,396 5,842 2,945 4,791 4,227 3,332 1,383 — 59,477 Non-revolving consumer loans 9,511 6,886 14,618 8,756 7,076 4,110 2,483 1,148 3,067 — 57,655 180,912 34,396 35,252 31,334 20,181 15,905 10,898 10,928 5,818 211 345,835 Financial instruments not recognized on the consolidated balance sheet: Available lines of credit cards and non-revolving consumer loans 6,914 7,786 8,113 4,565 3,425 4,743 4,533 1,921 2,468 — 44,468 Guarantees 37 — — — — — — — — — 37 Loan commitments 183 — — — — — — — — — 183 7,134 7,786 8,113 4,565 3,425 4,743 4,533 1,921 2,468 — 44,688 188,046 42,182 43,365 35,899 23,606 20,648 15,431 12,849 8,286 211 390,523 h) 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, 2018 the securitized loans retained on the consolidated balance sheet relate to securitized mortgage assets amount to 133 million pesos. As of December 31, 2019 there were no securization on loans retained. Securitization is used as a tool for diversifying the Bank’s liquidity sources. The Bank had not performed any securitization in 2017, 2018 and 2019 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, 2019 | |
Hedging derivatives | |
Hedging derivatives | 12. 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 financial 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 or liabilities attributable to an identified hedged risk. a) Breakdown The breakdown by type of hedge of the financial derivatives qualifying for hedge accounting is as follows: 12/31/2018 12/31/2019 Assets Liabilities Assets Liabilities Fair value hedges 202 5,136 925 5,306 Cash flow hedges 9,083 3,257 8,331 2,217 9,285 8,393 9,256 7,523 b) Quantitative information Fair value hedges As of December 31, 2018, the hedging financial derivative positions are as follows: Nominal (Million in Nominal Transaction Transaction (Million Pesos) Currency) Currency Hedged Item and Risk Hedged IRS 1,797 1,797 Peso Loans - Interest rate risk IRS 236 12 USD Loans - Interest rate risk IRS 7,583 7,583 Peso Promissory notes - Interest rate risk CCS 40 3 USD Loans - Interest rate and foreign exchange risk CCS 22,842 1,069 Euro UMS - Interest rate and foreign exchange risk CCS 1,275 67 USD UMS - Interest rate and foreign exchange risk CCS 1,492 58 Pound Sterling UMS - Interest rate and foreign exchange risk CCS 473 39 USD PEMEX Bonds - Interest rate and foreign exchange risk CCS 3,859 825 UDIS UDIBONDS - Interest rate and inflation risk As of December 31, 2019, the hedging financial derivative positions are as follows: Nominal (Million in Nominal Transaction Transaction (Million Pesos) Currency) Currency Hedged Item and Risk Hedged IRS 3,900 3,900 Peso Loans - Interest rate risk IRS 114 6 USD Loans - Interest rate risk IRS 6,422 6,422 Peso Promissory notes - Interest rate risk IRS 47,046 47,046 Peso M Bonds - Interest rate risk CCS 313 13 USD Loans - Interest rate and foreign exchange risk CCS 25,256 1,181 Euro UMS - Interest rate and foreign exchange risk CCS 5,394 280 USD UMS - Interest rate and foreign exchange risk CCS 1,492 58 Pound Sterling UMS - Interest rate and foreign exchange risk CCS 3,287 703 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 2017, 2018 and 2019, the effect of valuation for the period of financial derivative instruments for fair value hedging purposes recognized in the consolidated income statement under Gains/(losses) on financial assets and liabilities (net) is (117) million pesos, 474 million pesos and (667) million pesos, respectively (see Note 39). For 2017, 2018 and 2019, 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 341 million pesos, (606) million pesos and 731 million pesos, respectively (see Note 39). Each of these hedging financial derivative instruments is presented in the consolidated balance sheet under Hedging derivatives. Cash flow hedges As of December 31, 2018, the positions in financial 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 4,000 4,000 Peso Unsecured notes - Interest rate risk CCS 2,948 150 USD Unsecured notes - Foreign exchange risk CCS 2,707 193 USD Loans - Foreign exchange risk CCS 1,994 113 Euro Loans - Foreign exchange risk CCS 777 34 Pound Sterling Loans - Foreign exchange risk CCS 10,661 543 USD Senior Unsecured 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 CCS 983 50 USD Borrowing from banks - Foreign exchange risk Forward Fx-BRL 35,645 6,493 BRL Brazilian Government Notes - Foreign exchange risk Forward Fx-USD 38,015 1,814 USD Brazilian Government Notes - Foreign exchange risk As of December 31, 2019, the positions in financial 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 11,311 11,311 Peso Unsecured notes - Interest rate risk CCS 2,830 150 USD Unsecured notes - Foreign exchange risk CCS 2,358 166 USD Loans - Foreign exchange risk CCS 1,854 104 Euro Loans - Foreign exchange risk CCS 777 34 Pound Sterling Loans - Foreign exchange risk CCS 10,234 543 USD Senior Unsecured 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 32,372 6,919 BRL Brazilian Government Notes - Foreign exchange risk Forward Fx-USD 37,743 1,726 USD Brazilian Government Notes - Foreign exchange risk During October 2018, the Bank discontinued a cash flow hedge of Tier II Subordinated Capital Notes for an amount of 1,045 million USD (nominal value). During November 2017, the Bank discontinued a cash flow hedge of Loans and advances to customers 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). As of December 31, 2018 and 2019, included in other comprehensive income under Valuation adjustments - Cash flow hedges, are 25 million pesos and 17 million pesos (see Note 28), respectively, which refer to the accumulated unamortized gain (net of the related deferred tax effect) of hedging financial 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 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 2019 for the borrowing from banks, up to the year 2020 for Unsecured Notes, up to the year 2021 for Brazilian Government Notes, up to the year 2022 for Senior Unsecured Notes, up to the year 2025 for Loans and advances to customers and up to the year 2026 for UMS. A reconciliation of Valuation adjustments – Cash flow hedges is as follows: 2017 2018 2019 Balance at January 1 1,383 356 (290) Valuation adjustments (1,585) (882) 29 Amounts recycled to consolidated income statement 118 (40) (9) Of which: Income from cash flow hedging financial derivatives and discontinued cash flow hedge accounting 120 (42) (11) Cash flow hedges ineffectiveness (Note 39) (2) 2 2 Income taxes 440 276 (6) Balance at December 31 356 (290) (276) As of December 31, 2019, the breakdown of the estimated cash flows of the cash flow hedges that are expected to be reclassified from 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 18 583 1,345 15 1,961 Cash flows to be paid (258) (774) (1,297) (26) (2,355) Note 45.a contains a breakdown of the remaining maturity periods of hedging financial derivatives. |
Non-current assets held for sal
Non-current assets held for sale | 12 Months Ended |
Dec. 31, 2019 | |
Non-current assets held for sale | |
Non-current assets held for sale | 13. Non-current assets held for sale a) Breakdown As of December 31, 2018 and 2019, non-current assets held for sale consist of foreclosed assets that amounted to 1,277 million pesos and 935 million pesos, respectively. In 2017, 2018 and 2019, the Bank recognized a gain of 69 million pesos, a gain of 38 million pesos and a gain of 42 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 year ended December 31, 2017, there was no impairment losses recognized by the Bank. For the year ended December 31, 2018, the Bank recognized an impairment loss of 5 million pesos under Impairment losses on other assets (net) in the consolidated income statement. As of December 31, 2019, the Bank recognized an impairment loss of 370 million pesos associated to assets with a promise of future sale under Impairment losses on other assets (net) in the consolidated income statement. b) Changes The changes in foreclosed assets in the consolidated balance sheet were as follows: Foreclosed Assets Cost: Balances at January 1, 2018 1,295 Additions 213 Disposals (226) Impairment losses (5) Balances at December 31, 2018 1,277 Additions 146 Disposals (118) Impairment losses (370) Balances at December 31, 2019 935 |
Tangible assets
Tangible assets | 12 Months Ended |
Dec. 31, 2019 | |
Tangible assets | |
Tangible assets | 14. 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, 2018 13,307 Additions 2,857 Assets acquired from Santander Tecnología México 815 Disposals (151) Balances at December 31, 2018 16,828 Additions 3,208 Disposals (207) Balances at December 31, 2019 19,829 Accumulated depreciation: Balances at January 1, 2018 (6,809) Additions (1,091) Assets acquired from Santander Tecnología México (358) Disposals 144 Balances at December 31, 2018 (8,114) Additions (1,378) Disposals 205 Balances at December 31, 2019 (9,287) Balances at December 31, 2018 8,714 Balances at December 31, 2019 10,542 As of December 31, 2019, there are no restrictions on title and no tangible assets have been pledged as collateral for liabilities. b) Breakdown by asset class Accumulated Cost Depreciation Carrying Amount Buildings 9,780 (5,179) 4,601 IT equipment and fixtures 3,715 (1,620) 2,095 Furniture and vehicles 2,241 (1,315) 926 Others 1,092 — 1,092 Balances at December 31, 2018 16,828 (8,114) 8,714 Buildings 11,724 (5,826) 5,898 IT equipment and fixtures 4,776 (2,000) 2,776 Furniture and vehicles 2,627 (1,461) 1,166 Others 702 — 702 Balances at December 31, 2019 19,829 (9,287) 10,542 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Leases | 15. Leases a) Right-of-use assets Lease information with the Bank as lessee is as follows: Branch IT Furniture offices equipment and vehicles Total Balances at January 1, 2019 6,691 12 31 6,734 Remeasurement in the right-of-use asset (684) — — (684) Additions in right-of-use assets 957 — — 957 Depreciation (1,381) (3) (12) (1,396) Balances at December 31, 2019 5,583 9 19 5,611 b) Lease liabilities Following is an analysis of activity in lease liabilities as of December 31, 2019: Amount Balances at January 1, 2019 6,734 Interest expense 729 New contracts 957 Remeasurement on leases liabilities (684) Payments (1,817) Balances at December 31, 2019 5,919 The following table sets out a maturity analysis of lease payments: December 31, 2019 Maturity analysis - contractual undiscounted cash flows Less than one year 1,722 One to three years 2,765 Three to five years 1,536 More than five years 2,371 Total undiscounted lease liabilities at December 31, 2019 8,394 Lease liabilities at December 31, 2019 5,919 Current 1,374 Long-term 4,545 c) Leaseback 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, 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. Because this was a sale and operating leaseback under IAS 17, at the date of initial application of IFRS 16 the Bank accounts for the leaseback in the same way as it accounts for its leases of other operating lease contracts. d) Additional information: Amounts recognized in the consolidated income statement December 31, 2019 Interest on lease liabilities Expense relating to short-term leases Expense relating to leases of low-value assets that are not shown above as short-term leases — Expense relating to variable lease payments not included in lease liabilities — |
Intangible assets - Goodwill
Intangible assets - Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Intangible assets - Goodwill | |
Intangible assets - Goodwill | 16. Intangible assets – Goodwill As of December 31, 2018 and 2019, Goodwill amounted to 1,734 million pesos. a) Impairment test 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) 10 years Perpetual cash flow (2) Discount rate(6) 8.7% Of which: Cost of Equity(3) 12.7% Cost of Debt(4) 8.0% Equity Structure(5) 13% Equity / 87% 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 (7.11%), · β = Beta (0.869), and · Pr = Equity Risk Premium (6.38%). (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 2017, 2018 and 2019, the Bank has not recognized any impairment losses on Goodwill. |
Intangible assets - Other intan
Intangible assets - Other intangible assets | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 10,789 Additions 2,964 Disposals — Balances at December 31, 2018 13,753 Additions 3,236 Disposals — Balances at December 31, 2019 16,989 Accumulated amortization and impairment: Balances at January 1, 2018 (5,563) Additions (1,880) Disposals — Balances at December 31, 2018 (7,443) Additions (2,448) Disposals — Balances at December 31, 2019 (9,891) Balances at December 31, 2018 6,310 Balances at December 31, 2019 7,098 b) Breakdown The breakdown of Other intangible assets in the consolidated balance sheet is as follows: Estimated Accumulated Carrying Useful Life Cost Amortization Amount IT developments 3 years 13,666 (7,420) 6,246 Others 10 years 87 (23) 64 Balances at December 31, 2018 13,753 (7,443) 6,310 IT developments 3 years 16,903 (9,858) 7,045 Others 10 years 86 (33) 53 Balances at December 31, 2019 16,989 (9,891) 7,098 As of December 31, 2018 and 2019, 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, 2019 | |
Other assets | |
Other assets | 18. Other assets The breakdown of Other assets is as follows: 12/31/2018 12/31/2019 Credit card operating balances 2,192 2,577 Insurance commission receivables 1,108 1,278 Prepayments 630 695 Other 3,233 6,623 7,163 11,173 The following is a breakdown by maturity of Other assets which are measured at amortized cost as of December 31, 2019: Current More than 30 days less than 60 More than 60 days less than 90 More than 90 days Total Other assets Credit card operating balances 1,161 209 96 1,111 2,577 Insurance commission receivables 1 21 45 1,211 1,278 Prepaid expenses 599 38 57 1 695 Other 5,539 220 46 1,748 7,553 Expected credit loss rate Gross carrying amount 7,300 488 244 4,071 12,103 Lifetime expected credit losses (335) (51) (45) (499) (930) Balances at December 31, 2019 6,965 437 199 3,572 11,173 |
Deposits from the Central Bank
Deposits from the Central Bank and Deposits from credit institutions | 12 Months Ended |
Dec. 31, 2019 | |
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 Deposits from the Central Bank and Deposits from credit institutions is as follows: 12/31/2018 12/31/2019 Classification: Other financial liabilities at fair value through profit or loss 44,796 141,263 Financial liabilities at amortized cost 94,849 72,969 139,645 214,232 Type: Reciprocal accounts 3,999 7,272 Time deposits 10,125 8,914 Overnight deposits 23,359 26,710 Repurchase agreements 44,796 141,263 Other accounts 57,315 29,961 Of which: Collateral received for OTC financial derivatives transactions (Note 32) 32,606 8,960 Others 24,709 21,001 Accrued interest 51 112 139,645 214,232 Currency: Peso 125,839 195,604 USD 13,791 18,565 Other currencies 15 63 139,645 214,232 As of December 31, 2019, the Bank decided to present the sale of financial assets acquired under reverse repurchase agreements and pledged in repurchase agreement transactions as Other financial liabilities at fair value through profit or loss (Deposits from credit institutions – Repurchase agreements and Customer deposits – Repurchase agreements) (see note 2.ae). Note 45.a includes a breakdown of the remaining maturity periods of Deposits from the Central Bank and Deposits from credit institutions. In addition, Note 45.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, 2019 | |
Customer deposits | |
Customer deposits | 20. Customer deposits The breakdown by classification, type and currency of the balance of Customer deposits is as follows: 12/31/2018 12/31/2019 Classification: Other financial liabilities at fair value through profit or loss Financial liabilities at amortized cost Type: Repurchase agreements Demand deposits: Current accounts Other deposits 25,904 24,010 Of which: Collateral received for OTC financial derivatives transactions (Note 32) 9,874 7,799 Others 16,030 16,211 Time deposits: Fixed-term deposits Accrued interest 1,320 1,714 Currency: Peso 677,634 USD 81,631 Other currencies 153 6 As of December 31, 2019, the Bank decided to present the sale of financial assets acquired under reverse repurchase agreements and pledged in repurchase agreement transactions as Other financial liabilities at fair value through profit or loss (Deposits from credit institutions – Repurchase agreements and Customer deposits – Repurchase agreements) (see note 2.ae). As of December 31, 2018 and 2019, customer deposits of 9,874 million pesos and 7,799 million pesos, respectively, have been received in connection with OTC financial derivatives transactions (see Note 32). Note 45.a includes a breakdown of the remaining maturity periods of Customer deposits. In addition, Note 45.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, 2019 | |
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: 12/31/2018 12/31/2019 Classification: Other financial liabilities at fair value through profit or loss 4,750 3,246 Financial liabilities at amortized cost 98,312 103,062 114,457 Type: Certificates of deposit (unsecured) 22,433 37,823 Senior Unsecured Notes 19,590 18,849 Structured bank bonds 5,376 4,797 Promissory notes 35,831 23,314 Unsecured bonds 19,717 29,674 Mortgage-backed bonds 115 — Currency: Peso 76,075 89,233 USD 26,987 25,224 Note 45.a includes a breakdown of the remaining maturity periods of Marketable debt securities. In addition, Note 45.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: 2018 2019 Beginning balance 10,504 4,750 Issues 1,243 983 Of which: Structured bank bonds 1,243 983 Of which: Banco Santander México 1,243 983 Redemptions (6,715) (2,914) Of which: Structured bank bonds (6,715) (2,914) Of which: Banco Santander México (6,715) (2,914) Changes in fair value (282) 427 Balance at year-end 4,750 3,246 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: 2018 2019 Beginning balance 85,792 98,312 Issues 2,458,603 1,668,170 Of which: Certificates of deposit (unsecured) 54,486 42,195 Structured bank bonds 10,710 24,728 Promissory notes 2,382,790 1,591,247 Unsecured bonds 10,617 10,000 Of which: Banco Santander México 2,458,603 1,668,170 Redemptions (2,446,455) (1,654,767) Of which: Certificates of deposit (unsecured) (59,578) (26,883) Structured bank bonds (10,294) (23,765) Promissory notes (2,370,551) Unsecured bonds (6,000) — Mortgage backed bonds (32) (115) Of which: Banco Santander México (2,446,422) (1,654,652) Santander Vivienda (32) (115) Accrued interest (31) 609 Effect of changes in foreign exchange rates 403 (1,113) Balance at year-end 98,312 111,211 d) Other disclosures Issuance program In April 2007, the Board of Directors authorized an issuance program for up to USD 4,000 million 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 USD 6,500 million. 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. In February 2017 the CNBV authorized an issuance of structured bank bonds, up to USD 10,000 million with the maximum term of 15 years. In August 2019, the CNBV authorized an issuance program of structured bank bonds, up to USD 20,000 million, with a maturity period of 15 years. As of December 31, 2018, the balance of the issues performed by the Bank under the aforementioned program is as follows: Amount Maturity Date Rate Certificates of deposit (unsecured) 8 01/02/2019 8.14 % Certificates of deposit (unsecured) 15 01/03/2019 8.14 % Certificates of deposit (unsecured) 28 01/04/2019 8.14 % Certificates of deposit (unsecured) 28 01/07/2019 8.15 % Certificates of deposit (unsecured) 23 01/08/2019 8.14 % Certificates of deposit (unsecured) 26 01/09/2019 8.16 % Certificates of deposit (unsecured) 21 01/10/2019 8.16 % Certificates of deposit (unsecured) 16 01/11/2019 8.15 % Certificates of deposit (unsecured) 22 01/14/2019 8.15 % Certificates of deposit (unsecured) 19 01/15/2019 8.15 % Certificates of deposit (unsecured) 12 01/16/2019 8.17 % Certificates of deposit (unsecured) 20 01/17/2019 8.17 % Certificates of deposit (unsecured) 1,050 01/17/2019 8.12 % Certificates of deposit (unsecured) 20 01/18/2019 8.18 % Certificates of deposit (unsecured) 23 01/21/2019 8.36 % Certificates of deposit (unsecured) 21 01/22/2019 8.38 % Certificates of deposit (unsecured) 16 01/23/2019 8.38 % Certificates of deposit (unsecured) 28 01/24/2019 8.38 % Certificates of deposit (unsecured) 19 01/25/2019 8.39 % Certificates of deposit (unsecured) 34 01/28/2019 8.40 % Certificates of deposit (unsecured) 24 01/29/2019 8.13 % Certificates of deposit (unsecured) 39 01/30/2019 8.14 % Certificates of deposit (unsecured) 65 01/31/2019 8.14 % Certificates of deposit (unsecured) 1,000 02/08/2019 8.12 % Certificates of deposit (unsecured) 60 02/11/2019 8.38 % Certificates of deposit (unsecured) 900 02/15/2019 8.12 % Certificates of deposit (unsecured) 1,000 02/08/2019 8.38 % Certificates of deposit (unsecured) 700 02/25/2019 8.12 % Certificates of deposit (unsecured) 1,500 03/15/2019 8.12 % Certificates of deposit (unsecured) 1,500 03/26/2019 8.44 % Certificates of deposit (unsecured) 550 02/01/2019 8.34 % Certificates of deposit (unsecured) 1,000 05/16/2019 8.12 % Certificates of deposit (unsecured) 800 06/13/2019 8.12 % Certificates of deposit (unsecured) 9 06/20/2019 8.89 % Certificates of deposit (unsecured) 12 06/21/2019 8.89 % Certificates of deposit (unsecured) 26 06/24/2019 8.90 % Certificates of deposit (unsecured) 8 06/25/2019 8.89 % Certificates of deposit (unsecured) 23 06/26/2019 8.91 % Certificates of deposit (unsecured) 40 06/27/2019 8.91 % Certificates of deposit (unsecured) 40 06/28/2019 8.90 % Certificates of deposit (unsecured) 80 07/01/2019 8.90 % Certificates of deposit (unsecured) 23 07/02/2019 8.90 % Certificates of deposit (unsecured) 36 07/03/2019 8.92 % Certificates of deposit (unsecured) 43 07/04/2019 8.92 % Certificates of deposit (unsecured) 1,200 07/04/2019 8.12 % Certificates of deposit (unsecured) 43 07/05/2019 8.93 % Certificates of deposit (unsecured) 51 07/08/2019 9.11 % Certificates of deposit (unsecured) 57 07/09/2019 9.13 % Certificates of deposit (unsecured) 66 07/10/2019 9.13 % Certificates of deposit (unsecured) 48 07/11/2019 9.13 % Certificates of deposit (unsecured) 36 07/12/2019 9.14 % Certificates of deposit (unsecured) 52 07/15/2019 9.15 % Certificates of deposit (unsecured) 41 07/16/2019 8.88 % Certificates of deposit (unsecured) 33 07/17/2019 8.88 % Certificates of deposit (unsecured) 43 07/18/2019 8.89 % Certificates of deposit (unsecured) 46 07/19/2019 8.89 % Certificates of deposit (unsecured) 1,000 07/19/2019 8.12 % Certificates of deposit (unsecured) 39 07/22/2019 8.90 % Certificates of deposit (unsecured) 28 07/23/2019 8.89 % Certificates of deposit (unsecured) 41 07/24/2019 8.91 % Certificates of deposit (unsecured) 500 07/24/2019 8.12 % Certificates of deposit (unsecured) 40 07/25/2019 8.91 % Certificates of deposit (unsecured) 34 07/26/2019 8.90 % Certificates of deposit (unsecured) 43 07/29/2019 8.90 % Certificates of deposit (unsecured) 50 07/25/2019 8.36 % Certificates of deposit (unsecured) 66 07/30/2019 8.90 % Certificates of deposit (unsecured) 92 07/31/2019 8.92 % Certificates of deposit (unsecured) 32 08/01/2019 8.92 % Certificates of deposit (unsecured) 200 08/01/2019 8.40 % Certificates of deposit (unsecured) 18 08/02/2019 8.93 % Certificates of deposit (unsecured) 32 08/05/2019 9.11 % Certificates of deposit (unsecured) 20 08/06/2019 9.13 % Certificates of deposit (unsecured) 52 08/07/2019 9.13 % Certificates of deposit (unsecured) 71 08/08/2019 9.13 % Certificates of deposit (unsecured) 2,000 06/13/2019 8.12 % Certificates of deposit (unsecured) 1 08/13/2019 8.88 % Certificates of deposit (unsecured) 350 08/22/2019 8.39 % Certificates of deposit (unsecured) 600 08/28/2019 8.12 % Certificates of deposit (unsecured) 1,700 09/02/2019 8.12 % Certificates of deposit (unsecured) 500 09/25/2019 8.40 % Certificates of deposit (unsecured) 600 09/27/2019 8.41 % Certificates of deposit (unsecured)-USD 1 01/04/2019 0.98 % Certificates of deposit (unsecured)-USD 2 05/03/2019 0.98 % Certificates of deposit (unsecured)-USD 1,100 11/08/2019 8.12 % Certificates of deposit (unsecured)-USD 112 01/04/2019 2.00 % Certificates of deposit (unsecured)-USD 13 03/04/2019 1.50 % Certificates of deposit (unsecured)-USD 13 05/16/2019 1.51 % Certificates of deposit (unsecured)-USD 22 09/30/2019 1.70 % Certificates of deposit (unsecured)-USD 33 11/20/2019 1.75 % Certificates of deposit (unsecured)-USD 1 11/20/2019 1.75 % Certificates of deposit (unsecured)-USD 12 11/20/2019 1.75 % Certificates of deposit (unsecured)-USD 12 11/20/2019 1.75 % Certificates of deposit (unsecured)-USD 12 11/29/2019 1.75 % Certificates of deposit (unsecured)-USD 22 12/17/2019 1.75 % Certificates of deposit (unsecured)-USD 105 12/24/2019 1.75 % Certificates of deposit (unsecured)-USD 4 05/16/2019 1.65 % Certificates of deposit (unsecured)-USD 4 05/16/2019 1.65 % Certificates of deposit (unsecured)-USD 4 05/16/2019 1.65 % Certificates of deposit (unsecured)-USD 4 05/16/2019 1.65 % Certificates of deposit (unsecured)-USD 58 12/24/2019 1.85 % Certificates of deposit (unsecured)-USD 77 12/24/2019 1.75 % 22,363 Accrued interest 70 22,433 Senior Unsecured Notes 19,482 11/09/2022 4.125 % Accrued interest 108 19,590 Structured bank bonds 16 02/20/2020 Guaranteed rate subject to foreign exchange rate Structured bank bonds 139 10/15/2019 9.54 % Structured bank bonds 13 01/04/2019 0.25 % Structured bank bonds 32 01/14/2019 0.25 % Structured bank bonds 27 01/18/2019 0.25 % Structured bank bonds 10 01/09/2019 11.00 % Structured bank bonds 16 01/25/2019 0.25 % Structured bank bonds 40 01/08/2019 Guaranteed rate subject to foreign exchange rate Structured bank bonds 24 01/10/2019 12.00 % Structured bank bonds 25 01/10/2019 12.00 % Structured bank bonds 60 01/10/2019 Guaranteed rate subject to foreign exchange rate Structured bank bonds 39 01/03/2019 6.34 % Structured bank bonds 70 01/03/2019 12.23 % Structured bank bonds 10 01/18/2019 12.00 % Structured bank bonds 59 01/11/2019 5.81 % Structured bank bonds 25 02/01/2019 0.25 % Structured bank bonds 15 02/05/2019 11.00 % Structured bank bonds (*) 43 11/09/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 201 11/09/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 742 10/23/2020 TIIE Structured bank bonds (*) 430 10/26/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 19 11/07/2019 Guaranteed rate subject to SXDP Structured bank bonds (*) 8 11/05/2020 TIIE Structured bank bonds (*) 163 11/14/2019 Guaranteed rate subject to SXDP Structured bank bonds (*) 118 11/23/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 154 12/14/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 11 02/14/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 40 02/23/2021 TIIE Structured bank bonds (*) 23 03/03/2021 Guaranteed rate subject to SXDP Structured bank bonds (*) 5 03/16/2021 TIIE Structured bank bonds (*) 20 05/23/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 11 03/27/2019 Guaranteed rate subject to NIKKEI 225 Structured bank bonds (*) 18 04/03/2019 Guaranteed rate subject to NIKKEI 225 Structured bank bonds (*) 111 04/26/2019 Guaranteed rate subject to SX7E Structured bank bonds (*) 49 04/26/2019 Guaranteed rate subject to Euro STOXX 50 Structured bank bonds (*) 6 04/26/2019 Guaranteed rate subject to SX7E Structured bank bonds (*) 17 05/12/2021 TIIE Structured bank bonds (*) 1 06/06/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 27 06/06/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 212 06/06/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 57 06/06/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 287 04/23/2021 TIIE Structured bank bonds (*) 99 09/04/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 14 12/19/2019 Guaranteed rate subject to Euro STOXX 50 Structured bank bonds (*) 21 10/03/2019 Guaranteed rate subject to NKY and SXE Structured bank bonds (*) 5 03/03/2021 Guaranteed rate subject to SXDP Structured bank bonds (*) 10 06/26/2019 TIIE Structured bank bonds (*) 55 05/24/2021 TIIE Structured bank bonds (*) 91 09/25/2019 TIIE Structured bank bonds (*) 94 10/16/2019 Guaranteed rate subject to Euro STOXX 50 Structured bank bonds (*) 117 02/21/2019 Guaranteed rate subject to Euro STOXX 50 Structured bank bonds (*) 37 12/27/2019 Guaranteed rate subject to SX7E Structured bank bonds (*) 15 02/20/2020 Guaranteed rate subject to Euro SX5E Structured bank bonds (*) 19 03/05/2019 Guaranteed rate subject to NIKKEI 225 Structured bank bonds (*) 55 03/01/2019 Guaranteed rate subject to IPC Structured bank bonds (*) 29 03/27/2019 Guaranteed rate subject to IPC Structured bank bonds (*) 263 06/02/2020 Guaranteed rate subject to Euro SX5E Structured bank bonds (*) 527 03/25/2019 Guaranteed rate subject to IPC Structured bank bonds (*) 68 11/22/2019 Guaranteed rate subject to S&P 500 Structured bank bonds (*) 15 06/27/2019 Guaranteed rate subject to IPC Structured bank bonds (*) 117 06/24/2019 Guaranteed rate subject to IPC Structured bank bonds (*) 120 05/29/2019 Guaranteed rate subject to S&P 500 and IPC Structured bank bonds (*) 10 07/11/2019 Guaranteed rate subject to IPC Structured bank bonds (*) 10 07/30/2019 Guaranteed rate subject to IPC Structured bank bonds (*) 10 07/30/2019 Guaranteed rate subject to IPC Structured bank bonds (*) 177 05/17/2019 Guaranteed rate subject to Euro STOXX 50 5,371 Transaction costs and accrued interest (net) 5 5,376 Promissory notes 1,385 08/08/2019 8.33 % Promissory notes 461 08/21/2019 8.38 % Promissory notes 1,291 08/20/2019 8.38 % Promissory notes 646 09/06/2019 8.35 % Promissory notes 830 09/17/2019 8.39 % Promissory notes 861 04/09/2019 8.22 % Promissory notes 2,109 05/31/2019 8.66 % Promissory notes 3,500 01/03/2019 8.25 % Promissory notes 3,500 01/03/2019 8.25 % Promissory notes 2,990 01/07/2019 8.25 % Promissory notes 2,990 01/07/2019 8.25 % Promissory notes 2,519 01/07/2019 8.25 % Promissory notes 3,477 01/24/2019 8.67 % Promissory notes 3,477 01/24/2019 8.67 % Promissory notes 3,047 01/24/2019 8.67 % Promissory notes 2,500 01/30/2019 8.25 % Promissory notes 65 01/07/2019 8.20 % 35,648 Accrued interest 183 35,831 Unsecured bonds 1,700 03/09/2021 8.91 % Unsecured bonds 4,000 06/14/2021 TIIE + 38 basis points Unsecured bonds 3,000 09/01/2026 7.19 % Unsecured bonds 6,484 02/10/2020 London Inter-Bank Offered Rate (LIBOR) + 20 basis points Unsecured bonds 4,461 05/06/2022 TIIE + 15 basis points 19,645 Accrued interest 72 19,717 Mortgage-backed bonds 100 05/25/2032 5.00 % Mortgage-backed bonds 15 05/25/2032 6.40 % 115 Accrued interest — 115 (*) As of December 31, 2019, the balance of the issues performed by the Bank under the aforementioned program is as follows: Amount Maturity Date Rate Certificates of deposit (unsecured) 1,000 12/16/2020 7.74 % Certificates of deposit (unsecured) 500 12/16/2020 7.59 % Certificates of deposit (unsecured) 300 12/11/2020 7.60 % Certificates of deposit (unsecured) 700 12/11/2020 7.75 % Certificates of deposit (unsecured) 1,100 11/09/2020 7.78 % Certificates of deposit (unsecured) 500 09/24/2020 7.47 % Certificates of deposit (unsecured) 1,000 11/20/2020 7.72 % Certificates of deposit (unsecured) 2,000 10/26/2020 7.59 % Certificates of deposit (unsecured) 2,500 10/08/2020 7.79 % Certificates of deposit (unsecured) 250 09/30/2020 7.58 % Certificates of deposit (unsecured) 200 09/15/2020 7.60 % Certificates of deposit (unsecured) 1,150 09/11/2020 7.60 % Certificates of deposit (unsecured) 2,000 09/02/2020 7.76 % Certificates of deposit (unsecured) 1,300 08/27/2020 7.64 % Certificates of deposit (unsecured) 2,000 07/09/2020 7.59 % Certificates of deposit (unsecured) 500 09/25/2020 7.72 % Certificates of deposit (unsecured) 1,000 07/20/2020 7.89 % Certificates of deposit (unsecured) 1,600 07/03/2020 7.94 % Certificates of deposit (unsecured) 1,000 06/30/2020 7.74 % Certificates of deposit (unsecured) 1,000 06/18/2020 7.81 % Certificates of deposit (unsecured) 4,000 06/05/2020 7.74 % Certificates of deposit (unsecured) 1,500 06/04/2020 7.59 % Certificates of deposit (unsecured) 2,500 05/06/2020 7.76 % Certificates of deposit (unsecured) 900 04/08/2020 7.95 % Certificates of deposit (unsecured) 1,500 03/24/2020 7.59 % Certificates of deposit (unsecured) 300 03/12/2020 7.75 % Certificates of deposit (unsecured) 400 02/14/2020 7.59 % Certificates of deposit (unsecured) 1,000 02/11/2020 7.59 % Certificates of deposit (unsecured) 125 02/10/2020 7.77 % Certificates of deposit (unsecured) 400 02/07/2020 7.77 % Certificates of deposit (unsecured) 300 02/13/2020 7.75 % Certificates of deposit (unsecured) 50 01/22/2020 7.54 % Certificates of deposit (unsecured) 1,100 01/10/2020 7.59 % Certificates of deposit (unsecured) 400 01/10/2020 7.77 % Certificates of deposit (unsecured) 1,550 01/08/2020 7.78 % Certificates of deposit (unsecured)-USD 13 03/03/2020 1.75 % Certificates of deposit (unsecured)-USD 13 05/15/2020 1.75 % 37,650 Accrued interest 172 37,823 Senior Unsecured Notes 18,744 11/09/2022 4.125 % Accrued interest 105 18,849 Structured bank bonds (*) 7 03/17/2022 TIIE Structured bank bonds (*) 54 03/17/2022 TIIE Structured bank bonds (*) 56 03/26/2021 9.50 % Structured bank bonds (*) 6 03/17/2022 TIIE Structured bank bonds (*) 159 03/08/2021 9.50 % Structured bank bonds (*) 2 03/17/2022 TIIE Structured bank bonds (*) 46 02/23/2021 TIIE Structured bank bonds (*) 30 05/24/2021 TIIE Structured bank bonds (*) 6 03/16/2021 TIIE Structured bank bonds (*) 212 11/09/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 294 04/23/2021 TIIE Structured bank bonds (*) 156 01/28/2021 10.00 % Structured bank bonds (*) 441 10/26/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 773 10/23/2020 TIIE Structured bank bonds (*) 9 11/05/2020 TIIE Structured bank bonds (*) 114 06/26/2020 Guaranteed rate subject to IPC Structured bank bonds (*) 276 06/02/2020 Guaranteed rate subject to Euro STOXX 50 Structured bank bonds (*) 121 03/25/2020 TIIE Structured bank bonds (*) 137 03/23/2020 TIIE Structured bank bonds (*) 13 02/20/2020 Guaranteed rate subject to Euro STOXX 50 Structured bank bonds (*) 19 05/12/2021 TIIE Structured bank bonds (*) 5 03/03/2021 Guaranteed rate subject to SXDP Structured bank bonds (*) 24 03/03/2021 Guaranteed rate subject to SXDP Structured bank bonds (*) 180 12/14/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 115 11/23/2020 Guaranteed rate subject to SXDP Structured bank bonds 66 09/25/2020 2.50 % Structured bank bonds 20 09/18/2020 2.50 % Structured bank bonds 196 06/26/2020 4.00 % Structured bank bonds 30 06/15/2020 Guaranteed rate subject to foreign exchange rate Structured bank bonds 19 03/27/2020 5.00 % Structured bank bonds 50 03/27/2020 5.00 % Structured bank bonds 11 02/20/2020 Guaranteed rate subject to foreign exchange rate Structured bank bonds 81 09/01/2020 2.50 % Structured bank bonds 25 09/30/2020 2.50 % Structured bank bonds 40 01/29/2020 12.00 % Structured bank bonds 25 01/27/2020 12.00 % Structured bank bonds 24 01/24/2020 10.00 % Structured bank bonds 500 01/21/2020 12.00 % Structured bank bonds 105 01/17/2020 13.00 % Structured bank bonds 15 01/16/2020 11.69 % Structured bank bonds 114 01/16/2020 12.23 % Structured bank bonds 19 01/16/2020 13.00 % Structured bank bonds 10 01/16/2020 11.61 % Structured bank bonds 27 01/14/2020 12.00 % Structured bank bonds 12 01/10/2020 14.50 % Structured bank bonds 40 01/07/2020 10.48 % Structured bank bonds 57 01/03/2020 3.17 % Structured bank bonds 57 01/03/2020 3.02 % 4,797 Transaction costs and accrued interest (net) - 4,797 Promissory notes 500 11/30/2020 7.25 % Promissory notes 2,000 10/05/2020 7.23 % Promissory notes 1,500 04/15/2020 8.42 % Promissory notes 1,500 04/13/2020 8.42 % Promissory notes 1,000 03/20/2020 8.45 % Promissory notes 921 03/19/2020 8.45 % Promissory notes 500 03/17/2020 8.45 % Promissory notes 500 03/09/2020 8.55 % Promissory notes 200 02/17/2020 7.00 % Promissory notes 2,700 01/17/2020 7.25 % Promissory notes 70 01/06/2020 7.25 % Promissory notes 11,500 01/03/2020 7.25 % 22,891 Accrued interest 423 23,314 Unsecured bonds 7,150 03/30/2026 8.95 % Unsecured bonds 3,000 09/01/2026 7.19 % Unsecured bonds 2,850 04/04/2022 TIIE + 10 basis points Unsecured bonds 4,461 05/06/2022 TIIE + 15 basis points Unsecured bonds 4,000 06/14/2021 TIIE + 38 basis points Unsecured bonds 1,700 03/09/2021 8.91 % Unsecured bonds 6,224 02/10/2020 LIBOR + 20 basis points 29,385 Accrued interest 289 29,674 (*) |
Subordinated liabilities
Subordinated liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Subordinated liabilities | |
Subordinated liabilities | 22. Subordinated liabilities a) Breakdown The breakdown of the balance of Subordinated liabilities is as follows: 12/31/2019 Outstanding Issue Amount Annual Type Currency of Issue 12/31/2018 12/31/2019 in Foreign Currency Interest Rate (%) Tier II Subordinated Capital Notes USD 1,546 — — — Subordinated Additional Tier I Capital Notes USD 9,809 9,420 500,000,000 8.50 Tier II Subordinated Capital Notes USD 25,873 24,847 1,300,000,000 5.95 Balance at year-end 37,228 34,267 Note 45.a includes a breakdown of the remaining maturity of Subordinated liabilities. Additionally, Note 45.d includes the fair value amounts of these liabilities. b) Changes The changes in Subordinated liabilities were as follows: 2018 2019 Beginning balance (million USD) 1,825 1,894 Issues 1,300 — Redemptions (1,223) (77) Transaction costs and accrued interest (8) (1) Balance at year-end (million USD) 1,894 1,816 Exchange rate per one USD at December 31 Balance at year-end (million pesos) 37,228 34,267 c) Other disclosures 2013 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 USD 1,300 million equivalent to 1,300,000 securities with a nominal value of USD 1,000 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 USD 10 million. 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% per year during the first five years. As mentioned in Note 3.6, 94.07% of existing holders tendered the cash offer announced by the Bank for the Tier II Subordinated Capital Notes. The main features of this issue were 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. 2016 Subordinated Additional Tier I Capital Notes On December 29, 2016, the Bank issued Subordinated Additional Tier I Capital Notes for an amount of USD 500 million. Subordinated Additional Tier I Capital Notes are convertible into common Series F shares 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 I 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 I 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 US Government Treasury Bills 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 I 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. These Subordinated Additional Tier I 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 I 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 I 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 I Capital Notes and is not accounted for separately. 2018 Tier II Subordinated Notes On October 1, 2018, the Bank issued debt securities denominated as Tier II Subordinated Notes in the amount of USD 1,300 million equivalent to 1,300,000 securities with a nominal value of USD 1,000 each with a ten-year maturity (October 30, 2028) 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. Interest will be paid semiannually, on April 1 and October 1, respectively, beginning April 30, 2019. The instruments bear interest at an initial rate of 5.95% per year during the first five years. The main features of this issue are as follows: e) 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. f) 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%. g) Partial write-down until the Bank achieves a Basic Capital index of 7.0%. h) 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. With the proceeds obtained from the issue of these Tier II Subordinated Notes, the Bank redeemed in advance USD 1,223 million of the Tier II Subordinated Capital Notes issued on December 27, 2013 (see Note 3.9). d) Reconciliation of liabilities arising from financing activities 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, 2018 Cash flows Accrued Transaction exchange December 31, 2018 Type interest costs movements Tier II Subordinated Capital Notes 26,054 (24,481) 826 151 (1,004) 1,546 Subordinated Additional Tier I Capital Notes 9,831 — (*) — (16) (6) 9,809 Tier II Subordinated Capital Notes — 24,249 375 (48) 1,297 25,873 Balances at 35,885 (232) 1,201 87 287 37,228 (*) As of December 31, 2018, the Bank paid 804 million pesos related to interests on the Subordinated Additional Tier I Capital Notes, which were recognized against Accumulated reserves within Shareholders’ equity. Non-cash changes Foreign Beginning balance Cash flows Accrued Transaction exchange December 31, 2019 Type interest costs movements Tier II Subordinated Capital Notes 1,546 (1,521) 6 7 (38) — Subordinated Additional Tier I Capital Notes 9,809 — (*) — 4 (393) 9,420 Tier II Subordinated Capital Notes 25,873 (1,513) 1,495 7 (1,015) 24,847 Balances at 37,228 (3,034) 1,501 18 (1,446) 34,267 (*) As of December 31, 2019, the Bank paid 808 million pesos related to interests on the Subordinated Additional Tier I Capital Notes, which were recognized against Accumulated reserves within Shareholders’ equity. |
Other financial liabilities
Other financial liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other financial liabilities | |
Other financial liabilities | 23. Other financial liabilities The breakdown of Other financial liabilities is as follows: 12/31/2018 12/31/2019 Trade payables 2,277 1,451 Collection accounts: Tax payables 1,187 1,160 Financial transactions pending settlement 5,061 9,267 Other financial liabilities 5,281 3,886 13,806 15,764 Note 45.a includes a breakdown of the remaining maturity periods of Other financial liabilities. In addition, Note 45.d contains the fair value amounts of these liabilities. The breakdown of Financial transactions pending settlement is as follows: 12/31/2018 12/31/2019 Mexican government securities 4,827 8,059 BPATS 201 1,003 Equity instruments 1 205 Other financial instruments 32 — 5,061 9,267 The breakdown of Other financial liabilities is as follows: 12/31/2018 12/31/2019 Retentions related to loans (*) 1,000 1,524 Other payable account 4,281 2,362 5,281 3,886 (*) |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2019 | |
Provisions. | |
Provisions | 24. Provisions a) Breakdown The breakdown of Provisions is as follows: 12/31/2018 12/31/2019 Provisions for pensions and similar obligations 4,370 6,406 Provisions for tax and legal matters 1,516 1,558 Provisions for off-balance sheet risk 852 1,075 Other provisions 62 65 Provisions 6,800 9,104 b) Changes The changes in Provisions were as follows: 2017 2018 2019 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 (as originally presented) 3,972 1,306 874 1,050 7,202 3,860 1,072 1,032 766 6,730 4,370 1,516 852 62 6,800 Adjustments on initial adoption of IFRS 9 — — — — — — — (32) — (32) — — — — — Beginning balance as of January 1 (restated) 3,972 1,306 874 1,050 7,202 3,860 1,072 1,000 766 6,698 4,370 1,516 852 62 6,800 Additions charged (credited) to net income: Interest expense and similar charges 332 — — — 332 359 — — — 359 415 — — — 415 Personnel expenses – Defined Benefit Plan 146 — — — 146 157 — — — 157 147 — — — 147 Personnel expenses – Defined Contribution Plan (Note 42) 330 — — — 330 373 — — — 373 410 — — — 410 Other 51 — — — 51 129 — — — 129 257 — — — 257 Actuarial (gains)/losses recognized in the year in other comprehensive income (666) — — — (666) (260) — — — (260) 1,673 — — — 1,673 Period provisions — 197 158 31 386 — 576 (148) 5 433 — 353 223 5 581 Contributions from the employer 225 — — — 225 246 — — — 246 118 — — — 118 Payments to pensioners and pre-retirees with a charge to internal provisions (191) — — — (191) (234) — — — (234) (348) — — — (348) Other payments (*) — (431) — (315) (746) — (284) — (284) — — — — Payments to Defined Contribution Plan (330) — — — (330) (347) — — — (347) (636) (311) — — (947) Recognition of pension obligations from acquisition of SANTEC — — — — — 95 — — — 95 — — — — — Transfers and other changes (9) — — — (9) (8) 152 — (709) (565) — — — (2) (2) Balances at the end of year 3,860 1,072 1,032 766 6,730 4,370 1,516 852 62 6,800 6,406 1,558 1,075 65 9,104 (*) 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 Administrative expenses - Personnel expenses in the consolidated income statement the amounts of 330 million pesos, 373 million pesos and 226 million pesos in 2017, 2018 and 2019, respectively (see Note 42), 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 Mexican government 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 4,322 million pesos and 6,328 million pesos as of December 31, 2018 and 2019, respectively. The investment fund of the defined benefit post-employment plan was 2,196 million pesos and 2,068 million pesos as of December 31, 2018 and 2019, 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 2017 and 2018 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, 2018 and 2019, approximately 1% and 0.8% 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, 2018 and 2019, approximately 62% and 83% 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: 12/31/2018 12/31/2019 Provisions for post-employment plans Of which: Defined benefit pension plan 4,322 6,328 Provisions for defined contribution pension plan 48 78 Provisions for pensions and similar obligations 4,370 6,406 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 12/31/2018 12/31/2019 Annual discount rate 9.5 % 7.3 % Mortality tables EMSSA 1997 and 2009 EMSSA 1997 and 2009 Expected return on plan assets 9.5 % 7.3 % Cumulative annual INPC growth 3.5 % 3.5 % Annual salary increase rate 4.5 % 4.5 % Annual minimum salary increase rate 3.5 % 4.0 % Medical cost trend rates 5.0 % 5.0 % The determination of the discount rate considers the term and performance of Mexican government 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 12/31/2018 12/31/2019 Present value of the obligations: Pension plan 2,032 2,567 Post-employment benefits 3,644 5,127 Long-term benefits 842 702 6,518 8,396 Less: Fair value of plan assets (2,196) (2,068) Provisions – Provisions for pensions 4,322 6,328 Of which: Internal provisions for pensions 4,322 6,328 The amounts recognized in the consolidated income statement in relation to the aforementioned defined benefit obligations are as follows: Defined Benefit Pension Plan 2017 2018 2019 Current service cost (Note 42) 146 157 147 Interest cost (net) 332 359 415 Other 51 129 257 529 645 819 The changes in the present value of the accrued defined benefit obligations were as follows: Defined Benefit Pension Plans 2018 2019 Present value of the obligations at the beginning of year 6,731 6,518 Current service cost (Note 42) 157 147 Interest cost 592 585 Benefits paid (735) (983) Actuarial (gains)/losses (321) 2,129 Recognition of defined benefit obligations from acquisition of Santander Tecnología México 95 — Other (1) — Present value of the obligations at the end of year 6,518 8,396 The duration of the defined benefit obligation is 10.79 years. The changes in the fair value of plan assets were as follows: Defined Benefit Pension Plan 2018 2019 Fair value of plan assets at the beginning of year 2,901 2,196 Actual return on plan assets 43 347 Transfer of funds to defined contribution plan (246) (346) Benefits paid (502) (129) Fair value of plan assets at the end of year 2,196 2,068 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, 2020. The major categories of plan assets as a percentage over the total plan assets are as follows: Defined Benefit Pension Plan 12/31/2018 12/31/2019 Equity instruments 33 % 34 % Cash and debt instruments 67 % 66 % 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 383 million pesos (increase by 421 million pesos). · If the medical cost trend rate is 50 basis points higher (lower), the defined benefit obligation would increase by 247 million pesos (decrease by 227 million pesos). · If the annual salary growth increases (decreases) by 0.50%, the defined benefit obligation would increase by 13 million pesos (decrease by 13 million pesos). · If the annual INPC growth increases (decreases) by 0.50%, the defined benefit obligation would increase by 8 million pesos (decrease by 8 million pesos). · If the mortality increases (decreases) by two years for men and women, the defined benefit obligation would decrease by 90 million pesos (increase by 87 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. (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 also 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, 2018 and 2019, such liability was 826 and 746 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 i. Tax-related proceedings The Bank is a party to various tax claims for which it has recognized total provisions of 50 million pesos and 67 million pesos as of December 31, 2018 and 2019, respectively. ii. Other tax issues The Bank operated until December 31, 2018 a branch in Nassau, Bahamas through which it carries out tax-free operations principally involving financial derivative instruments. The Mexican 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 Administration Service for cumulative back withholding taxes on transactions carried out from 2004 through 2009. The Bank made settlement payments of 5 million pesos in 2017 and 1 million pesos in 2018. iii. Non-tax-related proceedings As of December 31, 2018 and 2019, 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, 2018 and 2019, the Bank has recognized provisions for the amounts of 1,466 million pesos and 1,491 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 2017, 2018 and 2019 is not material with respect to these consolidated financial statements. During 2018 and 2019, the amount paid by the Bank to external lawyers was 284 million pesos and 294 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: 12/31/2018 12/31/2019 Available lines of credit cards and non-revolving consumer loans 718 965 Guarantees and loan commitments of commercial and public sector loans 134 110 852 1,075 As of December 31, 2019, the breakdown of the Provisions for off-balance sheet risks by stages is as follows: Provision for off-balance sheet risk Stage 1 Stage 2 Stage 3 Total Available lines of credit cards and non-revolving consumer loans 859 91 15 965 Guarantees, documentary credits and loan commitments of commercial loans of small and medium-sized enterprises (SMEs) 57 53 — 110 Total 916 144 15 1,075 As of December 31, 2019, the transfers between stages of the Provisions for off-balance sheet risks is as follows: Provision for off-balance sheet risk Stage 1 Stage 2 Stage 3 Total As of January 1, 2019: 705 131 16 852 Financial assets derecognized during the period other than write-offs — — — — Write-offs — — — — Originated financial assets — — — — Foreign exchange and other movements 211 13 (1) 223 As of December 31, 2019 916 144 15 1,075 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other liabilities | |
Other Liabilities | 25. Other liabilities The breakdown of Other liabilities is as follows: 12/31/2018 12/31/2019 Sundry creditors 6,788 9,025 Cash balances undrawn 3,894 155 Accrued personnel obligations 3,735 4,388 Other obligations 2,337 2,288 Credit and debit card operation balances 2,101 2,435 18,855 18,291 |
Tax matters
Tax matters | 12 Months Ended |
Dec. 31, 2019 | |
Tax matters | |
Tax matters | 26. Tax matters a) Income tax The components of Income tax for 2017, 2018 and 2019 are as follows: 2017 2018 2019 Current income tax expense: Tax expense for current year 4,215 5,615 7,099 Deferred income tax expense (benefit): Origination and reversal of temporary difference and usage (accrual) of tax carryforward benefits 1,281 (157) (190) Total Income tax 5,496 5,458 6,909 b) Income tax reconciliation The reconciliation of the income tax calculated at the corporate income tax rate of 30% to the income tax recognized and the breakdown of the effective tax rate are as follows: 2017 2018 2019 Profit before tax 24,174 24,814 27,290 Income tax at 30% 7,252 7,444 8,187 Increase/(Decrease) due to permanent differences Of which: Due to effect of inflation (1,742) (1,542) (890) Due to effect of tangible assets (78) (76) 19 Due to effect of non-deductible expenses, non-taxable income and others 64 (368) (407) Income Tax 5,496 5,458 6,909 Effective tax rate 22.74 % 22.00 % 25.32 % Current tax liability — — — Income tax 5,496 5,458 6,909 Of which: Current 4,215 5,615 7,099 Deferred 1,281 (157) (190) The Bank is subject to regular reviews by the Mexican Tax Administration Service. As of December 31, 2019, 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: 2017 2018 2019 Net tax credited/(charged) to consolidated equity: Remeasurement of defined benefit obligation (200) (64) 462 Measurement of Available-for-sale - Debt instruments (478) — — Measurement of Available-for-sale - Equity instruments 1 — — Measurement of Financial assets at fair value through other comprehensive income - Debt instruments — 371 (980) Measurement of financial derivatives (Cash flow hedges) 440 276 (6) Paid interests on Subordinated Additional Tier I Capital Notes 191 254 255 Income tax from sale of the Custody business — 255 — (46) 1,092 (269) d) Deferred tax assets and liabilities Main components of the Bank’s gross deferred tax assets and liabilities are as follows: 12/31/2018 12/31/2019 Total deferred tax assets prior to offsetting 20,791 20,757 Of which: Tangible assets and deferred charges 1,984 2,050 Provisions 2,295 2,268 Impairment losses on financial assets at amortized cost 10,057 10,010 Capital losses carryforward(*) 2,683 2,708 Labor provisions 1,135 1,435 Fees and interest collected in advance 1,060 995 Foreign exchange rate financial derivatives 1,577 1,291 Total deferred tax liabilities prior to offsetting (3,304) (3,461) Of which: Unrealized gains on financial instruments (2,729) (2,816) Prepayments (355) (347) Other (220) (298) (*) As of December 31, 2019, the detail of capital losses carryforward is as follows: Year of origination Year of expiration Amount Deferred tax asset 2016 2026 140 43 2017 2027 3,025 907 2018 2028 3,297 989 2019 2029 2,562 769 9,024 2,708 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 sheet as follows: 12/31/2018 12/31/2019 Presented as deferred tax assets ( * ) 17,574 17,401 Presented as deferred tax liabilities (87) (105) Net 17,487 17,296 (*) The change in the balance of deferred tax assets and deferred tax liabilities does not equal the deferred income 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 01/01/2018 Income Income Movements 12/31/2018 Deferred tax assets 17,184 2,882 725 — 20,791 Deferred tax liabilities (635) (2,725) 14 42 (3,304) 16,549 157 739 42 17,487 (Charge)/ Credit to Consolidated (Charge)/ Credit to Other Consolidated Comprehensive Other 01/01/2019 Income Income Movements 12/31/2019 Deferred tax assets 20,791 881 (915) — 20,757 Deferred tax liabilities (3,304) (691) 462 72 (3,461) 17,487 190 (453) 72 17,296 |
Non-controlling interests
Non-controlling interests | 12 Months Ended |
Dec. 31, 2019 | |
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: 12/31/2018 12/31/2019 Equity as of balance-sheet date attributable to non-controlling interests: Of which: Fideicomiso GFSSLPT, Banco Santander México, S.A. 17 27 Other 15 13 32 40 Profit for the year attributable to non-controlling interests: Of which: Fideicomiso GFSSLPT, Banco Santander México, S.A. 3 — b) Changes The changes in Non-controlling interests are summarized as follows: 2018 2019 Beginning balance 29 32 Profit for the year attributable to non-controlling interests 3 — Other — 8 Balance at year-end 32 40 The foregoing changes are shown in the consolidated statement of changes in equity. |
Valuation adjustments
Valuation adjustments | 12 Months Ended |
Dec. 31, 2019 | |
Valuation adjustments | |
Valuation adjustments | 28. Valuation adjustments The balance of Valuation adjustments include the amounts, net of the related deferred income tax effect, of the adjustments to assets and liabilities recognized temporarily in consolidated equity through 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) Financial assets at fair value through other comprehensive income Valuation adjustments - Financial assets at fair value through other comprehensive income include the net amount of unrealized gains or losses in the valuation of financial assets at fair value through other comprehensive income (see Notes 8 and 9). The breakdown by type of financial instrument of Valuation adjustments - Financial assets at fair value through other comprehensive income at December 31, 2018 and 2019 are as follows: 12/31/2018 12/31/2019 Net Net Valuation Valuation Valuation Valuation Gains/ Fair Valuation Valuation Gains/ Fair Gains Losses (Losses) Value Gains Losses (Losses) Value Debt instruments 930 (2,156) (1,226) 154,483 4,266 (158) 4,108 233,463 Loans and advances to customers — — — 771 — — — 2,875 Equity instruments — (13) (13) 535 111 (4) 107 642 A summary of changes in the cumulative valuation adjustments recorded to Financial assets at fair value through other comprehensive income is as follows: Debt Equity Instruments Instruments Total Balance at January 1, 2018 109 (28) 81 Recognition of valuation adjustment of own equity instruments held for future equity-settled share-based payments (Note 3.4) — 17 17 Valuation adjustments (1,226) (13) (1,239) Amounts reclassified to consolidated income statement 69 — 69 Allowance for impairment losses 2 — 2 Income taxes 371 4 375 Balance at December 31, 2018 (675) (20) (695) Valuation adjustments 4,108 107 4,215 Amounts reclassified to consolidated income statement (189) — (189) Allowance for impairment losses — — — Income taxes (980) (32) (1,012) Balance at December 31, 2019 2,264 55 2,319 b) Cash flow hedges Valuation adjustments - Cash flow hedges include the gains or losses attributable to hedging financial derivative 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 the consolidated income statement (see Note 12). 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: 2018 2019 Accumulated (loss)/gain on cash flow hedges (315) (293) Accumulated gain related to discontinued cash flow hedges (Note 12) 25 17 Balance at December 31, (290) (276) |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2019 | |
Shareholders' equity | |
Shareholders' equity | 29. Shareholders’ equity a) Share capital As of December 31, 2018 and 2019, Share capital, at par value, was as follows: Total Par Value Number of shares (Millions of Pesos) 12/31/2018 12/31/2019 12/31/2018 12/31/2019 Fixed capital: Series F shares 3,464,309,145 13,098 13,098 Series B shares 12,562 12,562 6,786,994,357 6,786,994,357 25,660 25,660 Authorized unsubscribed capital: Series F shares 331,811,068 331,811,068 — — Series B shares 318,188,932 318,188,932 — — 650,000,000 650,000,000 — — 7,436,994,357 7,436,994,357 25,660 25,660 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 SHCP. 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. As mentioned in Note 3.9, Banco Santander (Spain) increased its participation in the Bank; after this transaction, the shareholders’ structure is as follow: Prior to exchange offer After exchange offer Banco Santander (Spain) Minority shareholders 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 Corporation Law 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, the remeasurement of defined benefit obligation and the recognition of equity-settled share-based payments. 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 2017, 2018 and 2019 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, 2018 and 2019, 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 income tax effect. d) Other disclosures 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 a Corporate Restructuring process, which considers, among other corporate actions, the merger of the Former Group, as the merged entity, with the Bank, as the merging entity. (see Note 3.4). 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 per share, of which 147,353,683,122 shares correspond to the Series F and 28,392,439,375 shares correspond to the Series B. ii. Perform an equity concentration (reverse split) by increasing the nominal value of the Bank's shares from 0.10 pesos per share 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 share capital of the Bank were issued. iii. Complete the exchange of shares, between the Bank and the Former Group once the Merger has been registered in the Public Registry of Commerce. The exchange of shares will be carried out by cancelling the shares representing the Former Group and the issuance of new shares of the Bank whose holders will be the shareholders of the Former 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 I Capital Notes issued by the Bank in December 2016 (see Note 22). Additionally, a decree and payment of a cash dividend to the shareholders of the Former Group for an amount up to 1,950 million pesos was approved to equal to one the book value of the shares of the Former Group with those of the Bank. The final amount of the dividend to make equivalent to one the book value of the shares of the Former Group with those of the Bank amounted to 1,822 million pesos, which was paid on January 25, 2018. 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. The transactions performed as part of the Corporate Restructuring process, after IFRS 9 implementation, were as follows: Profit Total Shareholders’ Share Share Accumulated Attributable Valuation Equity Attributable Non-Controlling Total Capital Premium Reserves to the Parent Adjustments to the Parent Interests Equity As of January 1, 2018 8,086 16,956 72,838 18,678 (1,177) 115,381 29 115,410 Amounts recognized from merger of entities — — 83 — — 83 — 83 Capitalization of share premium and accumulated reserves 17,574 (16,956) (618) — — — — — Recognition of equity-settled share-based payments — — 319 — 17 336 — 336 Effect on sale of the Brokerage House, net of income tax — — (19) — — (19) — (19) As of January 1, 2018 after Corporate Restructuring 25,660 — 72,603 18,678 (1,160) 115,781 29 115,810 During the Ordinary General Annual Meeting of February 21, 2018, it was decided to approve the creation of a fund to repurchase own shares that amounts to 12,800 million pesos. Based on the aforementioned approval, during the period ended December 31, 2018, the Bank acquired 5,671,453 own shares that amounted to 145 million pesos. During the Ordinary and Extraordinary General Annual Meeting of April 30, 2018, it was decided to allocate 4,279 million pesos from Accumulated reserves for the payment of dividends, which were paid to shareholders on June 29, 2018. In Ordinary General Meeting of December 3, 2018, it was decided to allocate 4,949 million pesos from Accumulated reserves for the payment of dividends, which were paid to shareholders on December 28, 2018. During the Ordinary General Annual Meeting of April 29, 2019, the following resolution was adopted: - It was decided to ratify the fund to repurchase own shares that amounts to 12,800 million pesos. - The amount of 4,843 million pesos was allocated from Accumulated reserves for the payment of dividends. This amount was paid to shareholders on May 28, 2019. During the Ordinary General Meeting of November 28, 2019, it was decided to allocate 5,450 million pesos from Accumulated reserves for the payment of dividends, which were paid to shareholders on December 27, 2019. |
Minimum capital requirements
Minimum capital requirements | 12 Months Ended |
Dec. 31, 2019 | |
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 (Circular Única de Bancos) 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 of Tier I Capital and excess of deferred income 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 advances, reverse repurchase agreements, swaps, forward contracts, securities loans, options, certain financial 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 financial 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: 12/31/2018 12/31/2019 Computable capital: 121,454 125,083 Core capital 125,621 138,371 Supplementary capital 27,419 24,847 Deductible items (41,395) (47,555) Subordinated Additional Tier I Capital Notes (see Note 21.c) 9,809 9,420 Capital requirements: 61,054 61,127 Market risk 14,280 13,988 Credit risk 42,732 42,922 Operational risk 4,042 4,217 Excess of capital requirements 60,400 63,956 Risk-weighted assets 763,170 764,093 As of December 31, 2018 and 2019, 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. 12/31/2018 12/31/2019 Net Capital / Required Capital 1.99 2.05 Minimum capital requirements Not applicable Not applicable Basic Fundamental Capital / Assets subject to Credit, Market and Operating Risk 11.04 % 11.89 % Minimum capital requirements 7.90 % 8.20 % Basic Capital / Assets subject to Credit, Market and Operating Risk 12.32 % 13.12 % Minimum capital requirements 9.40 % 9.70 % Net Capital / Assets subject to Credit Risk 22.74 % 23.31 % Minimum capital requirements Not applicable Not applicable Net Capital / Assets subject to Credit, Market and Operating Risk 15.91 % 16.37 % Minimum capital requirements 11.40 % 11.70 % |
Memorandum accounts
Memorandum accounts | 12 Months Ended |
Dec. 31, 2019 | |
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 financial derivatives transactions, reverse repurchase agreements and securities loan 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 12/31/2018 12/31/2019 Available lines of credit cards and non-revolving consumer loans 144,006 136,405 Guarantees, documentary credits and loan commitments of commercial and public sector loans 94,014 79,950 Guarantees, documentary credits and loan commitments of commercial loans (SMEs) 253 219 Total 238,273 216,574 At December 31, 2018 and 2019, the Bank had recognized provisions for off-balance sheet risk of 852 million pesos and 1,075 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. As of December 31, 2019, the breakdown of the carrying amount of the contingent commitments by stages is as follows: Carrying amount Stage 1 Stage 2 Stage 3 Total Available lines of credit cards and non-revolving consumer loans 135,974 312 119 136,405 Guarantees, documentary credits and loan commitments of commercial and public sector loans 79,572 378 — 79,950 Guarantees, documentary credits and loan commitments of commercial loans (SMEs) 219 — — 219 Total 215,765 690 119 216,574 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 financial 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 12/31/2018 12/31/2019 Debt instruments received in OTC financial derivatives transactions 4,044 5,736 Debt instruments received in reverse repurchase agreement transactions 107,560 76,592 Equity instruments received in securities loan transactions 333 14 Total 111,937 82,342 |
Derivatives - Nominal amounts a
Derivatives - Nominal amounts and fair values of trading and hedging derivatives | 12 Months Ended |
Dec. 31, 2019 | |
Derivatives - Nominal amounts and fair values of trading and hedging derivatives | |
Derivatives - Nominal amounts and fair values of trading and hedging derivatives | 32. Financial derivatives - Nominal amounts and fair values of trading and hedging financial derivatives The breakdown of the fair value and nominal amount of trading financial derivatives asset as of December 31, 2018 and 2019 is as follows: 12/31/2018 12/31/2019 Trading Nominal Fair Value Nominal Fair Value Futures: Foreign Currency Futures 2,537 — — — Interest Rate Futures — — — — Market Index Futures 426 — 4,144 — Forwards: Foreign Currency Forwards 237,777 7,127 209,085 8,769 Foreign Exchange (Spot) 62,701 80 18,630 32 Interest Rate Forwards — — — — Equity Forwards 11,770 936 341 — Options: Foreign Currency Options 87,711 1,236 50,940 1,052 Interest Rate Options 132,484 1,450 111,940 421 Market Index Options 2,950 67 1,828 212 Equity Options 148 3 43 — Swaps: IRS 2,803,464 69,819 3,353,662 80,078 Equity Swaps 1,008 59 628 10 CCS 435,698 74,176 442,402 61,173 Total Trading 3,778,674 154,953 4,193,643 151,747 As of December 31, 2018 and 2019, 154,953 million pesos and 151,747 million pesos (assets) are OTC financial derivatives of the total amount of the trading financial derivatives asset, respectively. The breakdown of the fair value and nominal amount of hedging financial derivatives asset as of December 31, 2018 and 2019 is as follows: 12/31/2018 12/31/2019 Hedging Nominal Fair Value Nominal Fair Value Cash flow hedge: IRS 4,000 111 — — CCS 13,609 4,798 11,177 3,843 Foreign Currency Forwards 59,619 4,174 59,417 4,488 Fair value hedge: IRS 8,416 157 53,882 719 CCS 1,492 45 3,868 206 Total Hedging 87,136 9,285 128,344 9,256 Total Financial Derivatives Asset 164,238 161,003 The breakdown of the fair value and nominal amount of trading financial derivatives liability as of December 31, 2018 and 2019 is as follows: 12/31/2018 12/31/2019 Trading Nominal Fair Value Nominal Fair Value Futures: Foreign Currency Futures 5,735 — 14,202 — Interest Rate Futures — — — — Market Index Futures 462 — 79 — Forwards: Foreign Currency Forwards 237,127 5,988 199,493 6,551 Foreign Exchange (Spot) 41,423 110 36,973 73 Market Index Forwards 11,768 839 651 6 Options: Foreign Currency Options 87,616 1,504 57,808 1,606 Interest Rate Options 142,477 971 140,813 474 Market Index Options 4,141 303 1,122 201 Equity Options 117 5 — — Swaps: IRS 2,795,454 70,607 3,296,209 76,165 Equity Swaps — 16 — 12 CCS 395,656 73,384 385,855 59,393 Total Trading 3,721,976 153,727 4,133,205 144,481 As of December 31, 2018 and 2019, 153,727 million pesos and 144,481 million pesos (liabilities), respectively are OTC financial derivatives of the total amount of the trading portfolio. The breakdown of the fair value and nominal amount of hedging financial derivatives liability as of December 31, 2018 and 2019 is as follows: 12/31/2018 12/31/2019 Hedging Nominal Fair Value Nominal Fair Value Cash flow hedge: IRS — — 11,311 118 CCS 10,289 2,912 10,704 1,690 Foreign Currency Forwards 14,041 345 10,698 409 Fair value hedge: IRS 1,200 14 3,600 246 CCS 28,489 5,122 31,874 5,060 Total Hedging 54,019 8,393 68,187 7,523 Total Financial Derivatives Liability 3,775,995 162,120 4,201,392 152,004 As of December 31, 2018 and 2019, the collateral provided to engage in financial derivatives transactions in organized markets is as follows: 12/31/2018 12/31/2019 Collateral provided: Of which: Mercado Mexicano de Derivados, S.A. de C.V. (MexDer) Cash 2,093 3,865 Chicago Mercantile Exchange Cash 1,297 1,286 Foreign financial institutions Cash 299 2 3,689 5,153 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, positions operated on the Chicago Mercantile Exchange such as Standard & Poor’s futures, US Treasury Notes futures and equity options and positions operated through foreign financial institutions. The guarantees and/or collateral delivered for the OTC financial derivatives transactions as of December 31, 2018 and 2019 are as follows: 12/31/2018 12/31/2019 Financial assets at amortized cost - Loans and advances to credit institutions: Of which (Note 7): Mexican financial institutions Cash 20,597 7,536 Foreign financial institutions Cash 8,911 6,764 29,508 14,300 Financial assets at fair value through profit or loss - Debt instruments: Of which (Note 8): Mexican financial institutions Bonds 4,438 3,121 Foreign financial institutions (*) Bonds 1,796 1,351 6,234 4,472 (*) As of December 31, 2018, and 2019, includes 1,465 million pesos and 1,318 million pesos, respectively, of debt instruments received as collateral (registered in memorandum accounts), which were delivered in OTC financial derivatives transactions as collateral. The guarantees and/or collateral received for the OTC financial derivatives transactions as of December 31, 2018 and 2019 are as follows: 12/31/2018 12/31/2019 Deposits from credit institutions and Customer deposits: Of which (Notes 19 and 20): Mexican financial institutions Cash 5,288 5,174 Foreign financial institutions Cash 37,192 11,527 Other Cash — 58 42,480 16,759 12/31/2018 12/31/2019 Memorandum accounts: Of which (Note 31): Mexican financial institutions Bonds 4,044 5,736 4,044 5,736 Upon executing transactions with OTC financial 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 instruments, 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 financial derivatives 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 12). 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 financial 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 financial 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, 2018 and 2019, the cumulative net credit risk exposure of the Bank was 390,324 million pesos and 390,324 million pesos, respectively. The net credit risk exposure comprises the total counterparty credit risk and issuer risk (which includes financial derivatives, repurchase agreements and debt securities), less any received assets as collateral for mitigating these risks. |
Interest income
Interest income | 12 Months Ended |
Dec. 31, 2019 | |
Interest income | |
Interest income | 33. Interest income Interest income in the consolidated income statement comprises the interest accrued in the year on all financial assets with an implicit or explicit return (except for those at fair value through profit or loss starting January 1, 2018), 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 items earned in 2017, 2018 and 2019 is as follows: 2017 2018 2019 Cash and balances with the Central Bank 2,081 2,361 2,456 Loans and advances to credit institutions 4,804 2,178 2,839 Loans and advances to customers 89,894 Debt instruments 9,925 Hedging financial derivatives 1,895 2,858 3,541 Other interest income 168 125 191 |
Interest income from financial
Interest income from financial assets at fair value through profit or loss | 12 Months Ended |
Dec. 31, 2019 | |
Interest income from financial assets at fair value through profit or loss | |
Interest income from financial assets at fair value through profit or loss | 34. Interest income from financial assets at fair value through profit or loss Interest income from financial assets at fair value through profit or loss in the consolidated income statement comprises the interest accrued in the year on financial assets at fair value through profit or loss with an implicit or explicit return, calculated by applying the effective interest method. The breakdown of the main interest income from financial assets at fair value through profit or loss items earned in 2018 and 2019 is as follows: 2017 2018 2019 Loans and advances to credit institutions — 5,981 6,306 Loans and advances to customers — 518 1,742 Debt instruments — 7,550 7,336 — 14,049 15,384 |
Interest expenses and similar c
Interest expenses and similar charges | 12 Months Ended |
Dec. 31, 2019 | |
Interest expenses and similar charges | |
Interest expenses and similar charges | 35. 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 2017, 2018 and 2019 is as follows: 2017 2018 2019 Deposits from credit institutions 7,564 7,420 9,041 Customer deposits 24,560 31,913 35,036 Marketable debt securities 3,696 4,244 5,398 Subordinated liabilities 1,600 1,610 1,597 Hedging financial derivatives 129 108 222 Other interest expenses 4,609 6,294 6,780 42,158 51,589 58,074 |
Dividend income
Dividend income | 12 Months Ended |
Dec. 31, 2019 | |
Dividend income | |
Dividend income | 36. 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: 2017 2018 2019 Equity instruments classified as: Financial assets held for trading 5 — — Of which: NAFTRAC (Exchange-traded fund or ETF) 2 — — América Móvil, S.A.B, de C.V. 1 — — Wal-Mart de México, S.A.B. de C.V. 1 — — Others 1 — — Financial assets at fair value through profit or loss — 33 44 Of which: NAFTRAC (Exchange-traded fund or ETF) — 18 36 Grupo Cementos de Chihuahua, S.A.B. de C.V. — 11 7 América Móvil, S.A.B, de C.V. — 1 — Grupo México, S.A.B. de C.V. — 1 — Wal-Mart de México, S.A.B. de C.V. — 1 1 Others — 1 — Available-for-sale financial assets 145 — — Of which: Controladora Prosa, S.A. de C.V. 62 — — Trans Unión de México, S.A. 83 — — Financial assets at fair value through other comprehensive income — 177 191 Of which: Controladora Prosa, S.A. de C.V. — 50 54 Trans Unión de México, S.A. — 88 93 Bolsa Mexicana de Valores, S.A.B. de C.V. — 21 25 Dun & Bradstreet de México, S.A. de C.V. — 17 18 Others — 1 1 150 210 235 |
Fee and commission income
Fee and commission income | 12 Months Ended |
Dec. 31, 2019 | |
Fee and commission income | |
Fee and commission income | 37. 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: 2017 2018 2019 Collection and payment services: Service charges on deposit accounts 1,046 1,217 1,438 Credit and debit cards 6,268 7,398 8,757 Checks and others 252 240 243 7,566 8,855 10,438 Marketing of nonbanking financial products: Investment funds management 1,457 1,569 1,568 Capital markets and securities activities 513 738 558 Collection and payment services 2,568 2,832 2,923 Insurance 4,341 4,575 5,038 Financial advisory services 1,341 1,212 1,207 10,220 10,926 11,294 Securities services: Administration and custody 524 368 347 524 368 347 Other: Foreign currency transactions 1,111 1,255 1,287 Other fees and commissions 895 892 952 2,006 2,147 2,239 20,316 22,296 24,318 |
Fee and commission expenses
Fee and commission expenses | 12 Months Ended |
Dec. 31, 2019 | |
Fee and commission expenses | |
Fee and commission expenses | 38. 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: 2017 2018 2019 Credit and debit cards 3,250 3,680 4,095 Checks and others 25 26 31 Collections and transactional services 226 287 312 Fund management 2 1 1 Capital markets and securities activities 199 189 238 Financial advisory services 6 13 6 Correspondent services 465 614 723 Other fees and commissions 1,330 1,764 2,488 5,503 6,574 7,894 |
Gains_(losses) on financial ass
Gains/(losses) on financial assets and liabilities (net) | 12 Months Ended |
Dec. 31, 2019 | |
Gains or losses on financial assets and liabilities (net) | |
Gains/(losses) on financial assets and liabilities (net) | 39. 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: 2017 2018 2019 Financial instruments held for trading 3,223 — — Of which: Debt instruments 494 — — Equity instruments 29 — — Derivatives 2,736 — — Others (36) — — Financial instruments at fair value through profit or loss — 1,687 2,709 Of which: Debt instruments — 166 260 Equity instruments — 35 71 Derivatives — 1,482 2,459 Others — 4 (81) Recognized profit from sale of available-for-sale financial instruments 9 (69) 85 Hedging derivatives 226 (134) 60 Of which: Fair value hedge - hedged items (Note 12) 341 (606) 731 Fair value hedge - hedging derivative instruments (Note 12) (117) 474 (667) Cash flow hedge inefficiency (Note 12) 2 (2) (4) 3,458 1,484 2,854 |
Exchange differences, (net)
Exchange differences, (net) | 12 Months Ended |
Dec. 31, 2019 | |
Exchange differences (net) | |
Exchange differences (net) | 40. 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, 2019 | |
Other operating income and other operating expenses | |
Other operating income and other operating expenses | 41. Other operating income and other operating expenses Other operating income and other operating expenses in the consolidated income statement include: 2017 2018 2019 Other operating income: Other operating income 669 748 1,553 669 748 1,553 Other operating expenses: IPAB fund contribution (2,894) (3,134) (3,353) Other operating expenses (720) (1,259) (1,792) (3,614) (4,393) (5,145) 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, 2019 | |
Personnel expenses | |
Personnel expenses | 42. Personnel expenses a) Breakdown The breakdown of Personnel expenses is as follows: 2017 2018 2019 Wages and salaries 6,300 7,274 7,740 Social security costs 1,105 1,283 1,443 Service expense related to defined contribution pension plan (Note 24) 330 373 410 Service expense related to defined benefit pension plan (Note 24) 146 157 147 Share-based payments 283 161 226 Bonus and benefits granted to employees 3,295 3,691 4,017 Other staff costs 1,289 1,415 1,445 b) Corporate performance shares plan 2014 During the Shareholders’ Meeting of Banco Santander (Spain) on March 28, 2014, a share-based payment plan was approved that is applicable only to a certain group of executive officers (known as the “Identified Staff”). The plan was denominated “Corporate performance shares plan 2014” and provided 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 compensation plan was payable in shares of the Former Group with annual deliveries of shares to the beneficiaries during a period of three years beginning on July 1, 2015. The total number of shares granted to each beneficiary was established in early 2015 which depended on Banco Santander (Spain)’s performance (Total Shareholders Return or TSR) during 2014 against a peer group of financial institutions. A percentage of one-third of the total number of vested shares would 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. Since the conditions of this share-based variable compensation plan were not achieved, the Bank derecognized the original liability as part of the Corporate Restructuring mentioned in Note 3.5. The fair value of the Corporate performance shares plan 2014 amounted to 36 million pesos as of December 31, 2017. During 2017, the Bank recognized 16 million pesos in the consolidated income statement with respect to this plan. c) Long-term incentive plan 2015 Since September 2016, the Bank began to participate in a corporate share-based variable compensation plan denominated “Long-term incentive plan 2015” applicable to the Identified Staff. This plan provided a variable compensation linked to the growth of the earnings per share ratio and of the return on tangible equity of Banco Santander (Spain). As a result of the Corporate Restructuring mentioned in Note 3.5, the Long term incentive plan 2015 of the Bank will be settled through its own equity instruments starting January 1, 2018. Accordingly the Long term incentive plan 2015 changed from a cash-settled transaction to an equity-settled transaction. The initial fair value of the Long-term incentive plan 2015 amounted to 86 million pesos. As of December 31, 2019, the fair value of the Long-term incentive plan 2015 is 5 million pesos. During 2017, 2018 and 2019, the Bank recognized 27 million pesos, 16 million pesos and 5 million pesos, respectively, in the consolidated income statement with respect to this plan. d) Bonus payment policies As a result of an internal policy of Banco Santander (Spain), a portion of the annual variable remuneration plan for the Identified Staff 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 the Bank for the corresponding payment periods. Once delivered, beneficiaries are obligated to keep the shares for a one-year period. In 2017, 2018 and 2019, the Bank recognized the bonus of the Identified Staff in the consolidated income statement for an amount of 325 million pesos, 184 million pesos and 226 million pesos, respectively. The bonus of the Identified Staff for financial years 2017, 2018 and 2019 are 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 “Deferred Percentage” to identify the portion for which payment is deferred): Beneficiaries Immediate Payment (millions of Euros) Percentage Deferred Percentage Deferred period Members of the Identified Staff with total variable remuneration ≥ 2.7 40 % 60 % 5 years 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 2017, 2018 and 2019 of the Identified Staff are paid as follows: · Each beneficiary will receive in 2017, 2018 and 2019, 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 income tax (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 income 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 of the Bank. · The beneficiaries receiving shares of the Bank may not transfer them or hedge them directly or indirectly for one year as from each delivery of shares. Up to December 31, 2016, the beneficiaries were be paid an amount in cash equal to the dividends paid on the deferred amount in shares and the interest on the amount accrued in cash. In accordance to an internal policy of Banco Santander (Spain), since 2017 the deferred amount portion to be payable in thirds or fifths excludes the payment of dividends and interests. In 2017, 2018 and 2019, the accrual of deferred remuneration is conditioned, in addition to the permanence of the beneficiary in the Bank, to no assumptions in which there is a poor performance of the Bank as a whole or of a specific division or area of the Bank or of the exposures generated by the personnel, and at least the following factors must be considered: (i) significant failures in risk management committed by the Bank, or by a business unit or risk control unit; (ii) the increase suffered by the Bank 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 the negative effects derived from the marketing of inappropriate products and the responsibilities of persons or bodies that made those decisions. If the abovementioned requirements are met on each delivery date, the bonus 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, 2019 | |
Other general administrative expenses | |
Other general administrative expenses | 43. Other general administrative expenses a) Breakdown The breakdown of Other general administrative expenses is as follows: 2017 2018 2019 Maintenance, conservation and repair 1,227 646 738 Information technology and systems 2,790 4,820 3,851 Stationery and supplies 215 227 150 Advertising and communications 968 890 965 Rents 1,963 1,120 653 Administrative services 936 503 1,737 Taxes other than income tax 1,454 1,820 2,037 Surveillance and cash courier services 894 979 1,248 Insurance premiums 78 75 95 Travel costs 293 364 325 Other administrative expenses 1,871 2,851 2,031 12,689 14,295 13,830 b) Other information The fees for audit and tax services to the audit of the consolidated financial statements by the respective auditors are as follows: 2017 2018 2019 Audit fees and audit-related fees (*) 72 88 103 Tax fees 1 1 — 73 89 103 (*) |
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, 2019 | |
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) | 44. 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: 2017 2018 2019 Gains: On disposal of tangible assets 6 7 16 6 7 16 |
Other disclosures
Other disclosures | 12 Months Ended |
Dec. 31, 2019 | |
Other disclosures | |
Other disclosures | 45. 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, 2018, is as follows: 12/31/2018 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 25,080 2,136 — — — — 28,094 55,310 Financial assets at fair value through profit or loss Debt instruments 17,102 3,200 27,649 26,266 18,605 17,400 110,222 Equity instruments 2,349 — — — — — — 2,349 Trading derivatives 466 599 6,268 9,782 25,090 36,633 76,115 154,953 Other financial assets at fair value through profit or loss Loans and advances to credit institutions - Reverse repurchase agreements — 98,332 — — — — — 98,332 Loans and advances to customers - Reverse repurchase agreements — 9,093 — — — — — 9,093 Financial assets at fair value through other comprehensive income Loans and advances to customers — 7 13 58 155 155 383 771 Debt instruments — 48,280 1,961 3,304 60,140 10,716 30,082 154,483 Equity instruments — — — — — — 535 535 Financial assets at amortized cost Loans and advances to credit institutions — 47,034 — — — — — 47,034 Loans and advances to customers 9,257 42,431 68,276 139,392 180,792 88,697 137,927 666,772 Debt instruments — — — 41,426 — 1,485 9,508 52,419 Hedging derivatives — 2,332 — 186 2,046 4,677 44 9,285 37,152 267,346 79,718 221,797 294,489 160,968 300,088 1,361,558 Liabilities: Financial liabilities at fair value through profit or loss Trading derivatives 220 1,978 4,796 13,137 24,660 35,900 73,036 153,727 Short positions — 28,919 — — — — — 28,919 Other financial liabilities at fair value through profit or loss Deposits from the Central Bank — 30,995 — — — — — 30,995 Deposits from credit institutions — 13,801 — — — — — 13,801 Customer deposits — 128,719 — — — — — 128,719 Marketable debt securities — 3,191 182 1,063 314 — — 4,750 Financial liabilities at amortized cost Deposits from credit institutions 17,644 46,869 5,776 6,347 11,219 4,488 2,506 94,849 Customer deposits 443,660 115,779 33,999 44,727 3,685 3,565 674 646,089 Marketable debt securities — 30,249 7,375 21,437 12,200 23,936 3,115 98,312 Subordinated liabilities 413 36,815 37,228 Other financial liabilities 12 7,376 3,638 1,944 834 2 — 13,806 Hedging derivatives — 39 39 416 1,460 2,350 4,089 8,393 461,536 408,328 89,071 54,372 70,241 120,235 Difference (assets less liabilities) 23,913 132,726 240,117 90,727 179,853 101,970 The breakdown by maturity of the balances of certain items in the consolidated balance sheets as of December 31, 2019, is as follows: 12/31/2019 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 25,793 11,320 — — — — 28,094 65,207 Financial assets at fair value through profit or loss Debt instruments — 6,917 40,045 26,379 15,864 2,935 110,613 Equity instruments 5,767 — — — — — — 5,767 Trading derivatives 394 3,552 3,220 10,682 28,308 34,350 71,241 151,747 Other financial assets at fair value through profit or loss Loans and advances to credit institutions - Reverse repurchase agreements — 54,138 — — — — — 54,138 Loans and advances to customers - Reverse repurchase agreements — 25,789 — — — — — 25,789 Financial assets at fair value through other comprehensive income Loans and advances to customers — 71 71 713 571 1,449 — 2,875 Debt instruments — 31,817 — 4,713 59,836 54,636 82,461 233,463 Equity instruments — — — — — — 642 642 Financial assets at amortized cost Loans and advances to credit institutions — 36,895 — — — — — 36,895 Loans and advances to customers 8,930 72,144 67,861 127,842 196,079 81,576 145,239 699,671 Debt instruments — — — — 1,607 — 9,650 11,257 Hedging derivatives — 1,906 192 304 5,658 758 438 9,256 40,884 244,549 89,817 184,299 1,407,320 Liabilities: Financial liabilities at fair value through profit or loss Trading derivatives 395 3,183 3,457 11,185 25,521 36,303 64,437 144,481 Short positions — 8,280 47 — — — 792 9,119 Other financial liabilities at fair value through profit or loss Deposits from the Central Bank — 111,574 — — — — — 111,574 Deposits from credit institutions — 29,689 — — — — — 29,689 Customer deposits — 128,634 582 — — — — 129,216 Marketable debt securities — — 263 2,119 864 — — 3,246 Financial liabilities at amortized cost Deposits from credit institutions 28,338 22,934 8,580 1,134 10,374 57 1,552 72,969 Customer deposits 424,563 106,523 54,805 3,858 3,032 762 630,055 Marketable debt securities — 19,412 36,430 31,755 — 10,150 111,211 Subordinated liabilities — — 365 — — — 33,902 34,267 Other financial liabilities 49 9,722 1,079 4,765 149 — — 15,764 Hedging derivatives — 1 8 897 488 1,885 4,244 7,523 453,345 439,952 64,357 73,009 41,277 1,299,114 Difference (assets less liabilities) (412,461) (195,403) 25,460 72,964 147,356 224,861 108,206 b) Undiscounted contractual maturity periods The detail of the undiscounted contractual maturities of the existing financial liabilities at amortized cost as of December 31, 2018, is as follows: 12/31/2018 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 17,644 47,340 6,320 8,176 13,969 5,545 4,966 103,960 Customer deposits 443,660 116,799 35,325 48,013 4,858 4,205 1,081 653,941 Marketable debt securities — 30,795 8,512 25,493 17,446 27,551 4,156 113,953 Subordinated liabilities — 616 407 1,831 4,882 4,882 50,625 63,243 Other financial liabilities 12 7,376 3,638 1,944 834 2 — 13,806 461,316 202,926 54,202 85,457 41,989 42,185 60,828 948,903 The detail of the undiscounted contractual maturities of the existing financial liabilities at amortized cost as of December 31, 2019, is as follows: 12/31/2019 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 28,338 23,211 8,991 2,142 12,218 305 3,106 78,311 Customer deposits 38,195 59,092 5,015 3,616 1,233 639,395 Marketable debt securities — 20,071 15,096 42,001 37,716 1,444 13,759 130,087 Subordinated liabilities — 188 376 1,694 4,514 4,514 46,646 57,932 Other financial liabilities 49 9,722 1,079 4,765 149 — — 15,764 160,873 63,737 109,694 59,612 9,879 64,744 921,489 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 12/31/2018 12/31/2019 Assets Liabilities Assets Liabilities Cash and balances with the Central Bank 3,637 — 4,254 — Debt instruments (Note 8) 89,872 — — Loans and advances to credit institutions (Note 7) 44,957 — 17,765 — Loans and advances to customers 70,957 — 68,653 — Other assets 628 — 2,701 — Marketable debt securities (Note 21) — 26,987 — Subordinated liabilities — 37,268 — Derivatives — 27,924 — Deposits from credit institutions (Note 19) — 13,806 — Customer deposits (Note 20) — — Other financial liabilities — 2,752 — 1,306 Other liabilities — 1,501 — 1,942 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, 2018: Total fair Total Assets Level 1 Level 2 Level 3 values carrying amount Financial assets at amortized cost: Balances with the Central Bank (Note 6) 30,230 — — 30,230 30,230 Loans and advances to credit institutions (Note 7) — 28,839 18,163 47,002 47,034 Loans and advances to customers (Note 11) — 6,339 635,342 641,681 666,772 Debt instruments (unlisted) (Note 8) 40,063 11,030 — 51,093 52,419 As of December 31, 2019: Total fair Total Assets Level 1 Level 2 Level 3 values carrying amount Financial assets at amortized cost: Balances with the Central Bank (Note 6) — — 39,417 39,414 Loans and advances to credit institutions (Note 7) — 15,146 36,762 36,895 Loans and advances to customers (Note 11) — 2,892 727,334 730,226 699,671 Debt instruments (unlisted) (Note 8) — — 11,257 11,257 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, 2018: Total fair Total Liabilities Level 1 Level 2 Level 3 values carrying amount Financial liabilities at amortized cost: Deposits from credit institutions (Note 19) — 89,298 3,999 93,297 94,849 Customer deposits (Note 20) — — 646,089 Marketable debt securities (Note 21) — — 98,053 98,312 Subordinated liabilities (Note 22) — — 37,609 37,228 Other financial liabilities (Note 23) — — 13,804 13,806 As of December 31, 2019: Total fair Total Liabilities Level 1 Level 2 Level 3 values carrying amount Financial liabilities at amortized cost: Deposits from credit institutions (Note 19) — 65,382 7,272 72,654 72,969 Customer deposits (Note 20) — — 630,055 Marketable debt securities (Note 21) — — 111,211 Subordinated liabilities (Note 22) — — 36,555 34,267 Other financial liabilities (Note 23) 15,760 — — 15,760 15,764 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 deposits required by the Central Bank. - Loans and advances 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 advances 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 49.b for significant restrictions on the ability to access or use the assets and settle the liabilities of the Bank as of December 31, 2019. f) Restriction on accumulated reserves distribution As of December 31, 2018 and 2019, the Bank did not have any restriction on accumulated reserves distribution, except for the legal reserve as mentioned in Note 29 (11,080 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, 2018 and 12,971 million pesos in legal reserve that include 9,616 million pesos in legal reserve of the Bank on an individual basis as of December 31, 2019), the remeasurement of defined benefit obligation and the recognition of equity-settled share-based payments. In addition, the Bank is restricted from distributing dividends that will result in non-compliance with minimum capitalization requirements established by the CNBV (see Note 30). |
Operating segments
Operating segments | 12 Months Ended |
Dec. 31, 2019 | |
Operating segments | |
Operating segments | 46. 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. - Corporate and Investment Banking: this segment reflects the Global Corporate and Investment Banking business in Mexico, including all the managed treasury departments and the equities business. The global corporate and investment 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 2017, 2018 and 2019. The 2017 consolidated income statement and other significant data are as follows: Corporate Retail and Investment 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 531,295 Total liabilities 521,284 The 2018 consolidated income statement and other significant data are as follows: Corporate Retail and Investment Corporate 2018 Banking Banking Activities Total Net interest income 54,005 6,121 1,871 61,997 Dividend income — 34 176 210 Net fee and commission income 14,181 1,700 (159) 15,722 Gains/(losses) on financial assets and liabilities and exchange differences (net) 1,086 689 (291) 1,484 Other operating income/(expenses) (2,561) (672) (412) (3,645) Total income 66,711 7,872 1,185 75,768 Administrative expenses (24,574) (3,530) (545) (28,649) Depreciation and amortization (2,769) (200) (4) (2,973) Impairment losses on financial assets not at fair value through profit or loss (net) (17,813) (997) — (18,810) Impairment losses on other assets (net) — — (5) (5) Provisions (net) 178 10 (750) (562) 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) — — 38 38 Operating profit before tax 21,733 3,155 (74) 24,814 Income tax (5,458) Profit for the year 19,356 Profit attributable to the Parent 19,353 Profit attributable to non-controlling interest 3 Total assets 599,270 547,006 262,448 1,408,724 Total liabilities 567,829 486,372 231,236 1,285,437 The 2019 consolidated income statement and other significant data are as follows: Global Retail Corporate Corporate 2019 Banking Banking Activities Total Net interest income 59,008 6,638 510 66,156 Dividend income — 44 191 235 Net fee and commission income 15,014 1,596 (186) 16,424 Gains/(losses) on financial assets and liabilities and exchange differences (net) 1,155 1,417 282 2,854 Other operating income/(expenses) (2,389) (690) (513) (3,592) Total income 72,788 9,005 284 82,077 Administrative expenses (25,064) (3,604) (590) (29,258) Depreciation and amortization (4,827) (381) (14) (5,222) Impairment losses on financial assets not at fair value through profit or loss (net) (18,986) (234) — (19,220) Impairment losses on other assets (net) (370) — — (370) Provisions (net) (165) (1) (609) (775) Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) — — 16 16 Gains/(losses) on disposal of non-current assets not classified as discontinued operations (net) — — 42 42 Operating profit before tax 23,376 4,785 (871) 27,290 Income tax (6,909) Profit for the year 20,381 Profit attributable to the Parent 20,381 Profit attributable to non-controlling interest — Total assets Total liabilities |
Related-party transactions
Related-party transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related-party transactions | |
Related party transactions | 47. Related-party transactions Transactions with related parties The parties related to the Bank are deemed to include, in addition to its subsidiaries, associates 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 Banco Santander (Spain). Transactions between the Bank and its related parties were made on terms equivalent to those that prevail in arm’s-length transactions and 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. The information related to directors, executive officers and other key management personnel is detailed in Note 5. 12/31/2018 12/31/2019 Ultimate Santander Ultimate Santander Parent Group Parent Group Company Companies Company Companies ASSETS: Financial assets at fair value through profit or loss - Trading derivatives - Of which - Banco Santander, S.A. (Spain) 69,178 — 60,737 — Banco Santander (Chile) — — — 138 Other — 9 — — Other financial assets at fair value through profit or loss - Loans and advances to credit institutions - Of which - Banco Santander, S.A. (Spain) 13,127 — — — Loans and advances to customers - Of which - Casa de Bolsa Santander, S.A. de C.V. — 2,178 — 1,915 Financial assets at amortized cost - Loans and advances to credit institutions - Of which - Banco Santander, S.A. (Spain) 3,472 — 11,334 — Loans and advances to customers - Of which - Santander Capital Structuring, S.A. de C.V. — 1,296 — 2,204 Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informáticos Generales, S.L.) — 1,745 — 1,687 Key management personnel — 2,430 — 2,992 Other intangible assets - Of which - Santander Tecnología México, S.A. de C.V. (formerly Isban México, S.A. de C.V.) — 3,403 — 4,120 Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informáticos Generales, S.L.) — 864 — 809 Santander Back-Offices Globales Mayoristas, S.A. — 78 — 78 Santander Brasil Tecnologia, S.A (formerly Isban Brasil, S.A.) — 11 — 11 Other assets - Of which - Santander Digital Assets, SL — — — 53 Zurich Santander Seguros México, S.A. — 1,108 — 1,278 SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversión — 153 — 163 Other — 63 — 65 12/31/2018 12/31/2019 Ultimate Santander Ultimate Santander Parent Group Parent Group Company Companies Company Companies LIABILITIES AND EQUITY: Financial liabilities at fair value through profit or loss - Trading derivatives - Of which - Banco Santander, S.A. (Spain) 37,082 — 51,998 — Banco Santander International — 3 — — Other — 2 — — 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. — 9,270 — 5,010 Other — 17 — 18 Financial liabilities at amortized cost - Deposits from credit institutions - Of which - Banco Santander, S.A. (Spain) 34,525 — 10,598 — Banco Santander (Brazil) — — — 213 Other — 87 — 84 Subordinated liabilities - Of which - Banco Santander, S.A. (Spain) 28,109 — 26,987 — Customer deposits - Of which- Operadora de Carteras Gamma, S.A.P.I. de C.V. — 153 — 73 Grupo Financiero Santander México, S.A. de C.V. — — — 18 Santander Global Facilities, S.A. de C.V. — 335 — 411 Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — 49 — 35 Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informáticos Generales, S.L.) — 377 — 445 Santander Capital Structuring, S.A. de C.V. — 379 — 217 Other(*) — 1,350 — 1,057 Marketable debt securities - Of which - Banco Santander, S.A. (Spain) 969 — 930 — Other — 11 — 29 Other financial liabilities - Of which - Banco Santander, S.A. (Spain) 686 — 656 — Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander México — 37 — 90 Santander Global Facilities, S.A. de C.V. — 408 — 493 Other — 56 — 61 Other liabilities - Of which - Banco S3 México, S.A., Institución de Banca Múltiple — 43 — 58 Santander Back-offices Globales Mayorista, S.A. — — — 16 Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informáticos Generales, S.L.) — 128 — 972 Other — 4 — 11 (*) 2017 2018 2019 Ultimate Santander Ultimate Santander Ultimate Santander Parent Group Parent Group Parent Group Company Companies Company Companies Company Companies INCOME STATEMENT: Interest income - Of which - Banco Santander, S.A. (Spain) — — 144 — 22 — Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informáticos Generales, S.L.) — 86 — 107 — 112 Casa de Bolsa Santander, S.A. de C.V. — 95 — 127 — 91 Santander Capital Structuring, S.A. de C.V. — — — 120 — 164 Other — 93 — 1 — 1 Interest expenses and similar charges - Of which - Banco Santander, S.A. (Spain) 1,440 — 1,765 — 1,536 — Casa de Bolsa Santander, S.A. de C.V. — 1,449 — 1,824 — 669 Grupo Financiero Santander México, S.A. de C.V. — 16 — — — — Banco S3 México, S.A., Institución de Banca Múltiple — 12 — 44 — 37 Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — 7 — 7 — — Santander Global Facilities, S.A. de C.V. — 28 — 32 — 38 Santander Tecnología México, S.A. de C.V. (formerly Isban México, S.A. de C.V.) — 28 — — — — Other — 35 — 45 — 39 Fee and commission income - Of which - Banco Santander, S.A. (Spain) 7 — 6 — 12 — Santander Investment Securities Inc. — 10 — 6 — — Casa de Bolsa Santander, S.A. de C.V. — — — 292 — 115 Zurich Santander Seguros México, S.A. — 4,219 — 4,645 — 4,986 SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversión — 1,585 — 1,564 — 1,567 Other — 9 — — — 39 Fee and commission expense- Of which - Banco Santander, S.A. (Spain) 15 — 2 — 2 — Santander Global Facilities, S.A. de C.V. — 15 — — — 161 Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — — — 60 — 105 Casa de Bolsa Santander, S.A. de C.V. — — — — — 31 SAM Asset Management , S.A. de C.V., Sociedad Operadora de Fondos de Inversión — 66 — 16 — 14 Other — — — 8 — — Gains/(losses) on financial assets and liabilities (net) - Of which - Banco Santander, S.A. (Spain) (4,346) — 2,145 — (19,135) — Banco Santander (Chile) — — — — — 134 Abbey National Treasury Services plc. — (739) — 56 — — Other — 19 — 19 — 12 Other operating income Of which - Santander Global Facilities, S.A. de C.V. — 46 — 44 — 37 Santander Digital Assets, S.L. — — — — — 62 Casa de Bolsa Santander, S.A. de C.V. — 28 — 113 — 53 Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informáticos Generales, S.L.) — — — 62 — 69 Other — 10 — 29 — 44 Administrative expenses - Of which - Banco Santander, S.A. (Spain) 66 — 335 — 398 — Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informáticos Generales, S.L.) — 1,601 — 1,804 — 2,147 Santander Tecnología México, S.A. de C.V. (formerly Isban México, S.A. de C.V.) — 188 — — — — Santander Global Facilities, S.A. de C.V. — 366 — 517 — 368 Ingeniería de Software Bancario, S.L. — 165 — — — — Gesban México Servicios Administrativos Globales, S.A. de C.V. — 53 — 54 — 59 Santander Back-offices Globales Mayorista, S.A. — 61 — 47 — 49 Universia México, S.A. de C.V. — — — — — 22 Casa de Bolsa Santander, S.A. de C.V. — — — 88 — — Geoban, S.A. — 77 — 75 — 60 Aquanima México, S. de R.L. de C.V. — 45 — 53 — 71 Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — 119 — 7 — — Other — 34 — 34 — 30 See Note 3 for significant transactions with related parties. |
Risk management
Risk management | 12 Months Ended |
Dec. 31, 2019 | |
Risk management | |
Risk management | 48. Risk management a) Cornerstones of the risk function The risk management and control model is based on the principles set down below: · Advanced 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. · Risk culture that applies to all employees throughout the Bank. · Clearly defined three lines of defense that enable the Bank to identify, manage, control, monitor and challenge all risks. · Autonomous model with robust governance based on a clear structure that separates the risk management and the risk control functions. · Information and data management processes that allow all risks to be identified, assessed, managed and reported at appropriate levels · Risks are managed by the business units that generate them. These principles are aligned with the Bank’s strategy and its business model, taking into account the requirements of regulators and supervisors, as well as the best market practices. The Board of Directors is responsible for approving the general risk control and management policy, including tax risks. 1. Main risks of the Bank’s financial instruments The main risk categories in which the Bank has its most significant current and/or potential exposures, thus facilitating the identification thereof, 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. o Trading risk o Structural risk · Liquidity risk: risk of the Bank does not have the liquid financial assets necessary to meet its obligations at maturity, or can only obtain them at high cost. · 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. In addition, the Bank considers the following risks: · Operational risk: is defined as the risk of loss due to the inadequacy or failure of internal processes, people and systems or due to external events. This definition includes legal risk. · Compliance and conduct risk: is that which arises from practices, processes or behaviors that are not adequate or that do not comply with internal regulations, legality or supervisory requirements. · Reputational risk: is defined as the risk of a current or potential negative economic impact due to a reduction in the perception of the Bank by employees, customers, shareholders/investors and society in general. · Model risk: is the risk of loss arising from inaccurate predictions, that may lead the Bank to make sub-optimal decisions, or from the inappropriate use of a model. · Strategic risk: the risk of loss or damage arising from strategic decisions or their poor implementation, which affect the long term interests of our main stakeholders, or from an inability to adapt to the changing environment. 2. Risk governance The Bank has a strong governance framework, which pursues the effective control of the risk profile, within the risk appetite defined by the Board of Directors. This governance framework is underpinned by the distribution of roles among the three lines of defense, a robust structure of committees and a strong relationship between Banco Santander (Spain) and the Bank . 2.1 Lines of defense The Bank follows a three lines of defense control model: · The first line of defense is all business functions and business support functions that originate risks and have primary responsibility in the management of those risks. The role of these functions is to establish a management structure for the risks generated as part of their activity ensuring that these remain within approved risk limits. · The second line of defense is risk control and compliance and conduct function. The role of these functions is to provide independent oversight and challenge to the risk management activities of the first line of defense. · The third line of defense: Internal Audit function. This function controls and regularly checks that the policies and procedures are adequate and effectively implemented in the management and control of all risks. The risk control, compliance and conduct and internal audit functions are appropriately separated and independent from each other, as well as from other functions they control or supervise, and have direct access to the Board of Directors and/or its committees. 2.2 Risk committee structure Ultimately, the Board of Directors is responsible for risk management and control and, in particular, for approving and periodically reviewing the Bank's risk culture and risk appetite framework. Except for specific topics detailed in its bylaws, the Board of Directors has the capacity to delegate its faculties to other committees. This is the case of the risk supervision, regulation and compliance committee and the Bank’s executive risk committee, which has specific risk related responsibilities. The Chief Risk Officer leads the risk function within the Bank, advises and challenges the executive line and reports independently to the risk supervision, regulation and compliance committee and to the Board of Directors. Other bodies that form the highest level of risk governance, with authorities delegated by the Board of Directors, are the executive risk committee and the risk control committee, detailed below : Comprehensive risk management committee To control and ensure that risks are managed in accordance with the risk appetite approved by the Board of Directors, providing a comprehensive overview of all risks. This includes identifying and monitoring both current and potential risks, as well as evaluating their potential impact on the Bank’s risk profile. This committee is chaired by the Chief Risk Officer (CRO). Additionally, each risk factor has its own fora, committees and meetings to manage the risks under their control. Among others, they have the following responsibilities: - Advice the CRO and the Comprehensive risk management committee that risks are managed in line with the Bank’s risk appetite. - Carrying out complete and regular monitoring of each risk factor. - Oversee the measures adopted to comply with the expectations of the supervisors and internal and external auditors. Executive risk committee This committee is responsible for managing all risks, within the powers delegated by the Board of Directors. The committee makes decisions on risks assumed at the highest level, ensuring that they are within the established risk appetite limits for the Bank. This committee is chaired by the CEO and it is composed with nominated executive officers and other Bank’s senior management. The Risk, Finance and Compliance and Conduct functions, among others, are represented. The CRO has a veto right on the committee’s decisions. 3. Management processes and tools 3.1 Risk appetite and structure of limits The Bank defines the risk appetite as the amount and type of risks that are considered prudent to assume for implementing the business strategy in the event of unexpected circumstances. Severe scenarios that could have a negative impact on the levels of capital, liquidity, profitability and/or the share price are taken into account. The risk appetite is set by the Board of Directors for the Bank. Every main business unit sets its own risk appetite according to the adaptation of the Bank’s methodology and its own circumstances. The Board of Directors is responsible for approving the respective risk appetite proposals. The Bank shares a common risk appetite model. It sets out the requirements for processes, metrics, governance bodies, controls and standards for implementation across the Bank, cascading down to lower level management policies and limits. The Bank shares a common risk appetite model. It sets out the requirements for processes, metrics, governance bodies, controls and standards for implementation across the bank, cascading down management policies and limits to lower levels. Risk appetite principles The following principles govern the Bank’s risk appetite: · Responsibility of the Board of Directors and of senior management. · Holistic risk view (Enterprise Wide Risk), risk profile back-testing and challenge. The risk appetite must consider all significant risks and facilitate an aggregate view 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 short and medium term, taking into account both the most plausible circumstances and adverse/stress scenarios. · Embedding and alignment with strategic and business plans. The risk appetite is an integral part of the strategic and business planning, and is embedded in the daily management through the transfer of the aggregated limits to those set at portfolio level, business unit or business line, as well as through the key risk appetite processes. · Coherence across the various business units and a common risk language throughout the Bank. The risk appetite of each business unit of the Bank must be coherent with that across the Bank. · Periodic review, back-testing and adoption of best practices and regulatory requirements. Monitoring and control mechanisms are established to ensure the risk profile is maintained, and the necessary corrective and mitigating actions are taken in the event of non-compliance . Limits, monitoring and control structure The risk appetite is formulated annually and includes a series of metrics and limits to establish in quantitative and qualitative terms the maximum risk exposure that every business unit and the Bank as a whole is willing to assume. Compliance with risk appetite limits is regularly monitored. Specialized control functions report the risk profile adequacy to the Board of Directors and its committees, on quarterly basis. Limit breaches and non-compliance with the risk appetite are reported to the relevant governance bodies. An analysis of the causes, an estimation of the duration of the breach and corrective actions proposals are also submitted. Linkage between the risk appetite limits and those of 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 and, segment and business line, under both current and stressed conditions. These metrics and risk appetite limits are articulated in five axes that define the positioning that the Bank wants to adopt or maintain in the deployment of its business model, described as follows: · The volatility in the consolidated income statement that the Bank is willing to accept. · The solvency position that the Bank wants to maintain. · The minimum liquidity position that the Bank wants to have. · The maximum levels of concentration that the Bank considers reasonable to admit. · Non-financial 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, establishing management standards that not only meet regulatory requirements but also reflect best practices in the market, and reinforce the risk culture. The RIA exercise analyses the evolution of risks and identifies areas of improvement: · Risk performance, enabling the understanding of residual risk by risk type through a set of metrics and indicators calibrated using international standards. · Control environment assessment, measuring the degree of implementation of the target operating model, as part of the advanced risk management of the Bank. · 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. Based on the periodic RIA exercise, the Bank’s risk profile as of December 31, 2019 remains as solid medium-low. 3.3 Scenario analysis The Bank analyses the impact triggered by different scenarios in the environment, in which the Bank operates. These scenarios are expressed both in terms of macroeconomic variables, as well as other variables that impact the Bank’s risk profile. Scenario analysis is a very robust and useful tool for management at all levels. It enables the Bank to assess its resilience in stressed environments or scenarios, and identifies measures to reduce exposure under these scenarios. The objective is to reinforce the stability of income, capital and liquidity. The robustness and consistency of the scenario analysis exercises are based on the following pillars: · Development and integration of models that estimate the future performance of metrics (for example, credit losses), based on both historic information (internal to the Bank and external from the market), and simulation models. · Inclusion of expert judgment and portfolio manager’s know-how. · Challenge and back-testing of model results to ensure they are adequate. · Robust governance of the whole process, covering models, scenarios, assumptions and rationale for the results, and their impact on management. Scenario analysis forms an integral part of several key processes of the Bank: · Regulatory uses: stress test scenarios using the guidelines set by the various regulators that supervise the Bank. · Internal capital adequacy assessment (ICAAP) or liquidity assessment (ILAAP) in which, while the regulators can impose certain requirements, the Bank develops its own methodology to assess its capital and liquidity levels under different stress scenarios to support planning and adequately managing the Bank's capital and liquidity. · Risk appetite. Contains stressed metrics on which maximum levels of losses (minimum liquidity levels) are established that the Bank does not want to exceed. These exercises are related to those for capital and liquidity, although they have different frequencies and present different granularity levels. · Recurrent risk management in different processes/exercises: - Budgetary and strategic planning process, in the development of business policies for risk approval, in the risk analysis made by Management and in specific analysis regarding the profile of activities or portfolios. - Identification of Top risks on the basis of, a systematic process to identify and assess all the risks to which the Bank is exposed to. Top risks are selected and a macroeconomic or idiosyncratic scenario is associated with each one, to assess their impact on the Bank. - Recovery plan performed annually to establish the available tools the Bank will have, to survive in the event of an extremely severe financial crisis. The plan sets out a series of financial and macroeconomic stress scenarios, with differing degrees of severity, which include idiosyncratic and/or systemic events. - IFRS 9 from January 1, 2018, the processes, models and scenario analysis methodology are included in the new regulatory provision requirements. 3.4 Risk Reporting Framework (RRF) The reporting model has strengthened by consolidating the overall view of all risks, based on complete, precise and recurring information that allows the Management to assess the risk profile and decide accordingly. The risk reporting taxonomy, contains three types of reports received by the Management on a monthly basis: the Bank’s risk report, the risk reports of each business unit and the reports of each of the risk factors identified in the Bank’s risk map. b) Credit risk 1. Credit risk treatment 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. There are different limit models depending on the segment: · Large corporate groups: The Bank uses a pre-classification model based on a system for measuring and monitoring economic capital. The result is the level of risk that the Bank is willing to assume with a customer/group, in terms of Capital at Risk, nominal CAP and maximum periods according to the type of transaction (in the case of financial entities, limits are managed through Equivalent Credit Risk). It includes the actual and expected risk with a customer based on its usual operations, always within the limits defined in the risk appetite and established credit policies. · Corporates and institutions that meet certain requirements (deep knowledge, rating, etc.): The Bank uses a more simplified pre-classification model through an internal limit that establishes a reference of the level of risk to be assumed with the customer. The criteria will include, among others, repayment capacity, debt in the system and the banking pool distribution. In both cases, transactions over certain thresholds or with specific characteristics might require the approval of an analyst or committee. · For individual customers and SMEs with low turnover, large volumes of credit transactions can be managed more easily with the use of automatic decision models for classifying the customer/ transaction binomial. In specific situations where a series of requirements are met, pre-approved transactions are granted to customers or potential customers (campaigns). 2. Other credit risk aspects 2.1 Credit risk by activity in the financial markets This section covers credit risk generated in treasury activities with customers, mainly with credit institutions. Transactions are undertaken through money market financial products with different financial institutions and through counterparty risk products which serve the Bank’s customer’s needs. Counterparty credit risk is the risk that the client in an transaction could default before the definitive settlement of the cash flows of the transaction. It includes the following types of transactions: financial derivative instruments, transactions with repurchase agreement, stock lending, 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 financial derivatives) plus potential future exposure (add-on) and (ii) the calculation of exposure using Monte Carlo simulation for some 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 recoveries. After markets close, exposures are re-calculated by adjusting all transactions 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 any time. 2.2 Concentration risk Concentration risk control is a vital part of management. The Bank continuously monitors 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 framework, determines the maximum levels of concentration. In line with these maximum levels and limits, the executive risk committee establishes the risk policies and reviews the appropriate exposure levels for the adequate management of the degree of concentration in the Bank’s credit risk portfolios. The concentration risk is subject to CNBV regulations on “Large Exposures” as follows: a) As of December 31, 2018 and 2019, 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, 2018, assets and liabilities transactions with the three main debtors or groups of individuals representing a joint risk for the aggregate amount of 33,160 million pesos and represent 35.30% of the Bank’s Basic Capital. c) As of December 31, 2019, assets and liabilities transactions with the three main debtors or groups of individuals representing a joint risk for the aggregate amount of 40,935 million pesos and represent 40.84% of the Bank’s Basic Capital. 2.3 Sovereign risk and exposure to other public sector entities Sovereign risk is that related to transactions with the Central Bank (including the regulatory cash reserve requirement – compulsory deposits), issuer risk from public debt portfolio and that related to transactions with public institutions with the following features: their funds only come from the state’s budgeted income and the activities are of a non-commercial nature. 3. Credit risk management The credit risk management process consists of identifying, analyzing, controlling and deciding on the credit risk incurred by the Bank's operations. It considers a holistic view of the credit risk cycle including transaction, customer and portfolio view. Both business units and risk areas, together with the Management participate in the management process. The identification of credit risk is a key component for the active management and effective control of portfolios. The identification and classification of external and internal risks in each business unit allows corrective and mitigating measures to be adopted. 3.1 Planning Identification Planning allows to set business targets and define specific action plans, within the risk appetite established by the Bank. These targets are met by assigning the necessary means (models, resources, systems). Strategic Commercial Plans Strategic commercial plans (SCPs) are a basic management and control tool for the Bank’s credit portfolios. The SCPs are prepared jointly by the commercial and risks areas, 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. SCP management integration provides at all times an updated view on the credit portfolios quality, allows to measure credit risk, perform internal controls and periodic monitoring of planned strategies, anticipate deviations and identify significant changes in risk and its potential impact, as well as the application of corrective actions. The SCPs approval corresponds to the executive risk committee. The periodic monitoring of SCPs is also carried out by the executive risk committee. The process pursues the SCPs alignment with the capital objectives of the Bank. Scenario analysis Credit risk scenario analysis enables Management to better understand the portfolio evolution in the face of market conditions and changes in the environment. It is a key tool for assessing the sufficiency of capital provisions for 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, either central or most plausible scenarios (baseline), as well as less likely and more adverse economic scenarios (stress scenarios). · Determination of risk parameters value (PD, LGD, etc.) for the scenarios defined. These parameters are established using internally developed statistical-econometric models, based on default and historical losses, in relation to historical data for macroeconomic variables taking into consideration a complete economic cycle. · Adaptation of the projection methodology to IFRS 9, with an impact on the estimation of the expected loss in each of the IFRS 9 stages, 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, provisions for off-balance sheet risk, etc.). · Analysis and rationale for the credit risk profile evolution at portfolio, segment, business unit and Bank levels in 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. · Likewise, the process is completed with a set of controls and back-testing that ensure the adequacy of metrics and calculations. The entire process takes place within a governance framework, and is adapted to the growing importance of this framework as well as market best practices, assisting the Management in gathering knowledge for decision making. 3.2 Assessment of the risk and credit rating process The connection between the credit risk appetite of the Bank and management of the credit portfolios is implemented through the SCPs, which define the portfolio and new originations limits in order to anticipate the portfolio risk profile. The transposition and cascading down of the Bank’s risk appetite framework credit risk metrics, strengthens the existing control over credit portfolios. The Bank has processes that determine the risk that each customer is able to assume. These limits are set jointly by the business units and risks areas and have to be approved by the executive risk committee (or committees in which it has delegated such authority) and reflect the expected results of the business units in terms of risk-return. In order to assign a rating that reflects the credit quality of the customer, the Bank uses valuation and parameter estimation models in each of the segments where it operates: Corporate and Investment Banking (sovereigns, financial institutions and large corporates), commercial banking, institutions, SMEs and individuals. The decision models applied are based on credit rating drivers which are monitored and controlled in order 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 the Corporate and Investment Banking, commercial banking institutions and SMEs (treated on an individual basis) segments. · Scoring: an automatic assessment system for credit applications. It automatically assigns an individual grade to the customer for subsequent decision making. Parameter estimation models are obtained through econometric statistical models, internally developed, based on historical loss and default of the portfolios for which they are developed and used to calculate the economic and regulatory capital of each portfolio. Periodic model monitoring and evaluation is carried out, assessing among others, the adequacy of its use, its predictive capacity, correct performance, and level of granularity. In the same way, the existence and compliance of the policies corresponding to each and every segment is verified (these policies enable the execution of business plans defined under the approved risk appetite). The resulting ratings are regularly reviewed, incorporating the latest available financial information and experience in the development of banking relations. The depth and frequency of the reviews are increased in the case of customers who require a more detailed monitoring or through automatic warnings in the systems . 3.3 Limits, pre-classifications and pre-approvals definition There are different limit models depending on the segment: · Large corporate groups: The Bank uses a pre-classification model based on a system for measuring and monitoring economic capital. The result is the level of risk that the Bank is willing to assume with a customer/group, in terms of Capital at Risk, nominal CAP, and maximum periods according to the type of transaction (in the case of financial entities, limits are managed through Equivalent Credit Risk). It includes the actual and expected risk with a customer based on its usual operations, always within the limits defined in the risk appetite and established credit policies. · Corporates and institutions that meet certain requirements (deep knowledge, rating, etc.): The Bank uses a more simplified pre-classification model through an internal limit that establishes a reference of the level of risk to be assumed with the customer. The criteria will include, among others, repayment capacity, debt in the system and the banking pool distribution. In both cases, transactions over certain thresholds or with specific characteristics might require the approval of an analyst or committee. · For individual customers and SMEs with low turnover, large volumes of credit transactions can be managed more easily with the use of automatic decision models for classifying the customer/ transaction binomial. In specific situations where a series of requirements are met, pre-approved transactions are granted to customers or potential customers (campaigns). 3.4 Transaction decision-making From a risk admission point of view, the concession criteria are linked to the payment capacity of the borrower to comply, in time and form, with the total of the assumed financial obligations - this does not imply an impediment to requiring a higher level of real or personal guarantees. The payment capacity will be evaluated based on the funds or net cash flows from the customer´s businesses or usual sources of income, without depending on guarantors or assets given as collateral. Such guarantors or assets should always be considered, when evaluating the approval of the transaction, as a second and exceptional way of recovery in case the first has failed. A guarantee is defined as a reinforcement measure added to a credit transaction for the purpose of mitigating the loss due to a breach of the payment obligation. Mitigation techniques implementation follows the minimum requirements established in the guarantee management policy: legal certainty (possibility of legally requiring the settlement of guarantees at all times), the lack of substantial positive correlation between the counterparty and the value of the collateral, the correct documentation of all guarantees, the availability of documentation for the methodologies used for each mitigation technique and appropriate monitoring, traceability and regular control of the goods/assets used for the guarantee. The Bank applies several credit risk mitigation techniques on the basis, among other factors, of the type of customer and product. Some are inherent to specific transactions (e.g. real estate guarantees) while others apply to a series of transactions (e.g. financial derivatives netting and collateral). The different mitigation techniques can be grouped into the following categories: · Personal guarantees · Guarantees from credit derivatives · Real guarantees Effective guarantees are those real and personal guarantees for which its effectiveness as a credit risk mitigant is proved and whose valuation complies with the established policies and procedures. The analysis of the effectiveness of the guarantees must take into account, among others, the necessary time for the execution and ability to enforce the guarantees . 3.5 Monitoring / Anticipation Monitoring business performance on a regular basis, and comparing performance against agreed plans is a key risk management activity. All customers must be monitored on an ongoing and holistic manner that enables the earliest possible detection of any incidents that may arise impacting the customer’s credit rating. Monitoring is carried out through an ongoing review of all customers, assigning a monitoring classification, establishing pre-defined actions associated to each classification and executing specific measures (pre-defined or ad-hoc) to correct any deviations that could have a negative impact for the Bank. In this monitoring, the consideration of forecasts and transactions characteristics throughout its life, is assured. It also takes into consideration any variations that may |
Consolidated Subsidiaries
Consolidated Subsidiaries | 12 Months Ended |
Dec. 31, 2019 | |
Consolidated Subsidiaries | |
Consolidated Subsidiaries | 49. Consolidated Subsidiaries a) Composition of the Bank The subsidiaries of the Bank, all of which have been included in the consolidated financial statements as of December 31, 2019, 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., Sociedad Financiera de Objeto Múltiple, E.R. Credit card loans 99.99 % 100 % Santander Vivienda, S.A. de C.V., Sociedad Financiera de Objeto Múltiple, E.R. Mortgage loans 99.99 % 100 % Santander Inclusión Financiera, S.A. de C.V., Sociedad Financiera de Objeto Múltiple, E.R. Retail loans 99.99 % 100 % Centro de Capacitación Santander, A.C. Not-for-profit (Educational institute) 99.99 % 100 % Fideicomiso 100740 Banco Santander, S.A. 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 % Santander Tecnología México, S.A. de C.V. (formerly ISBAN México, S.A. de C.V.) Technology services 99.99 % 100 % The total non-controlling interest as of December 31, 2019, amount to 40 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, 2019: · 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 6). · Reverse repurchase agreements 79,927 million pesos of debt instruments have been received as collateral in connection with reverse repurchase agreement transactions (see Notes 7 and 11). · Repurchase agreements 96,681 million pesos of Mexican government securities (M Bonds, BPATs, UMS and other debt securities) classified as financial assets at fair value through other comprehensive income have been pledged in connection with repurchase agreements transactions (see Note 8). 92,764 million pesos of debt instruments classified as financial assets at fair value through profit or loss have been pledged in connection with repurchase agreement transactions (see Note 8). 4,999 million pesos of BREMS R classified as financial assets at amortized cost have been pledged in connection with repurchase agreements transactions (see Note 8). · Debt instruments 3,471 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 8). 7,786 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 3.4 and 8). There were not Mexican Government Bonds pledged in connection with repurchase agreements transactions (see Note 8). There were not Mexican Government Bonds pledged in connection with securities loan transactions (see Note 8). · Securities loans 8,678 million pesos of Mexican government securities (CETES and UDIBONDS) have been pledged in connection with securities loan transactions (see Note 8). There were no equity instruments pledged in connection with securities loans transactions (see Note 9). 14 million pesos of equity instruments have been received in connection with securities loan transactions (see Note 9). · Collaterals in financial derivatives transactions traded in organized markets 5,153 million pesos of loans and advances to customers have been pledged in connection with financial derivatives traded in organized markets (see Note 11). · Collaterals in OTC financial derivatives transactions 14,300 million pesos of loans and advances to credit institutions have been pledged in connection with OTC financial derivatives transactions (see Note 7). 4,472 million pesos of debt instruments classified as financial assets at fair value through profit or loss have been pledged in connection with OTC financial derivatives transactions (see Note 8). 16,759 million pesos of deposits from credit institutions and customer deposits have been received in connection with OTC financial derivatives transactions (see Note 32). 5,736 million pesos of debt instruments have been received in connection with OTC financial derivatives transactions (see Note 32). · Earnings distribution The Bank has restrictions on earnings distribution related to the legal reserve of 11,080 million pesos that include 8,086 million pesos in legal reserve of the Bank on an individual basis (see Note 45). 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 for 43,800 million pesos and 32,686 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 2018 and 2019. ***** |
Accounting policies (Policies)
Accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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. Foreign currency 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 in terms of historical cost in a foreign currency are not retranslated. The Bank performs a large number of foreign currency transactions, mainly in United States 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 $19.6512 per one USD and $18.8642 per one USD as of December 31, 2018 and 2019, respectively. iii. Recognition of exchange differences The exchange differences 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 other comprehensive income. |
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 one of the following: · 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, the results 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. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with the Bank’s accounting policies. The financial statements of the subsidiaries are fully consolidated with those of the Bank. Accordingly, all intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between the members of the Bank are eliminated on consolidation. Non-controlling interests in subsidiaries are identified separately from the Bank’s equity therein. Those interests of non-controlling shareholders that are present ownership interests entitling their holders to a proportionate share of net assets upon liquidation may initially be measured at fair value or at the non-controlling interests’ proportionate share of the fair value of the acquiree’s identifiable net assets. The choice of measurement is made on an acquisition-by-acquisition basis. Other non-controlling interests are initially measured at fair value. Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests’ share of subsequent changes in consolidated equity. 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). 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. On acquisition of control of a subsidiary that meets the definition of a business, its assets, liabilities and contingent liabilities are recognized at their acquisition date fair value. 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 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 for which control is lost 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, 2018 and 2019 is summarized in Note 49. ii. Investments in associates and joint ventures (jointly controlled entities) An associate is an entity over which the Bank has significant influence and that is neither a subsidiary nor an interest in a joint venture. 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 Non-current Assets Held for Sale and Discontinued Operations . 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 36 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 IFRS 9. 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 associate or joint venture is disposed of. 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. The Bank applies IFRS 9, including the impairment requirements, to long-term interests in an associate or joint venture to which the equity method is not applied and which form part of the net investment in the investee. Furthermore, in applying IFRS 9 to long-term interests, the Bank does not take into account adjustments to their carrying amount required by IAS 28 (i.e. adjustments to the carrying amount of long-term interests arising from the allocation of losses of the investee or assessment of impairment in accordance with IAS 28). As of December 31, 2018 and 2019, the Bank did not have any associates. As of December 31, 2018 and 2019, the Bank has a commercial alliance with Elavon 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. On February 21, 2020, the Bank announced an agreement to acquire 49% of the shares representing the capital stock of Elavon (see Note 1.d.i). 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 as it is considered that the Bank exercise control over these structured entities. Note 11.g contains information regarding securitized mortgage assets. Share-based payments are discussed in Note 42.b, 42.c and 42.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. 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. When the consideration transferred by the Bank in a business combination includes 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 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. Other contingent consideration is remeasured to fair value at subsequent reporting dates with changes in fair value recognized in the consolidated income statement. When a business combination is achieved in stages, the Bank’s previously held interests in the acquired entity are 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 new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognized at that date. v. Business combinations under common control A common control transaction is a transfer of net assets or an exchange of equity interests between entities under the control of the same parent. A common-control transaction has no effect on the Ultimate Parent’s consolidated financial statements. The net assets are derecognized by the transferring entity and recognized by the receiving entity at their historical carrying amounts. Any difference between the consideration paid or received and the carrying amounts of the net assets is recognized in Shareholders’ equity within Accumulated reserves. vi. 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 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 IFRS 9, 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 a contract that evidences a residual interest in the assets of the issuing entity after deducting all of its liabilities. A financial derivative is 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 financial 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 financial 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: - Investments in associates and joint ventures (see Note 49) - Rights and obligations under employee benefit plans (see Note 24.c). - Contracts and obligations relating to employee remuneration based on own equity instruments. 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 have to be presented as Non-current assets held for sale or they relate to Cash and balances with the Central Bank or Hedging financial derivatives, which are reported separately. The classification criteria depends on the Bank’s business model for managing the financial assets and the contractual terms of its cash flows. The Bank reclassifies financial assets when, and only when, its business model for managing those financial assets changes. The business model reflects how the Bank manages the financial assets in order to generate cash flows. That is, whether the Bank’s objective is solely to collect the contractual cash flows from the financial assets or is to collect both the contractual cash flows and cash flows arising from the sale of financial assets. In determining the appropriate business models for a group of financial assets and assessing the SPPI requirements, the Bank takes into account the following factors: - How key management personnel are assessed and reported on the performance of the business model and the financial assets held in the business model. - The risks that affect the performance of the business model (and the financial assets held in the business model) and, specifically, the way in which these risks are managed. - How business managers are remunerated. - The evaluation of the past experience on how the cash flows of financial assets were collected. - The frequency and volume of sales in previous years, as well as expectations of future sales. - How certain contractual features are considered (i.e., interest rate reset frequency, prepayment commissions, among others) that significantly affect future cash flows. - The assessment of a compensation, paid or received on early termination that could result in cash flows that are not SPPI. Where the business model is to hold financial assets to collect contractual cash flows or to collect both the contractual cash flows and cash flows arising from the sale of financial assets, the Bank assesses whether the financial assets’ cash flows represent SPPI. In making this assessment (the “SPPI test”), the Bank considers whether the contractual cash flows are consistent with a basic lending arrangement. Depending on these factors, the financial asset can be measured at amortized cost, at FVTOCI, or at FVTPL. IFRS 9 also establishes an option to designate a financial instrument at FVTPL, under certain conditions. Where the contractual terms of the cash flows introduce exposures to risk or volatility that are inconsistent with a basic lending arrangement, the related financial assets are classified and measured at FVTPL. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are SPPI. Until December 31, 2017, the Bank applied IAS 39 under which the following categories existed for measurement purposes that are not applicable under IFRS 9: - Financial assets held for trading: This category included the financial assets acquired for the purpose of generating a profit in the near term from fluctuations in their prices and financial derivatives that were not designated as hedging instruments. - Other financial assets at fair value through profit or loss: This category included hybrid financial assets not held for trading that were measured entirely at fair value and financial assets not held for trading that were 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 were acquired or originated. - Available-for-sale financial assets: This category included 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 included 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. - Held-to-maturity investments: This category included debt instruments traded in an active market, with fixed maturity and with fixed or determinable payments, for which the Bank had both the intention and proven ability to hold 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 advances to credit institutions: loans of any nature, including deposits and money market transactions, provided to credit institutions. - Loans and advances to customers: includes the debit balances of all loans granted to customers by the Bank. - 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 financial derivatives, which do not form part of hedge accounting, including embedded derivatives separated from hybrid financial instruments. - Hedging derivatives: includes the fair value of financial 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 financial derivatives, which are reported separately. IAS 39 financial liabilities classification and measurement criteria remains substantially unchanged under IFRS 9. Nevertheless, in most cases, the changes in the fair value of financial liabilities designated at fair value with changes recognized through profit or loss for the year, due to the Bank’s credit risk, are classified under other comprehensive income. Financial liabilities are classified for measurement purposes into one of the following categories: - Financial liabilities at fair value through profit or loss: 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 (“reverse repos”), 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 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 basis, 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. v. 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 debt 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 the 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 transactions 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 that has the consideration of financial liability of the securities that are compound financial instruments issued by the Bank. - Trading derivatives: includes the fair value of financial 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 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 financial 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 that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVTPL are recognized in profit or loss. If the fair value of a financial instrument at initial recognition differs from the transaction price, that financial instrument shall be accounted for at that date as follows: - if that fair value is evidenced by a quoted price in an active market for an identical asset or liability (i.e., a Level 1 input) or based on a valuation technique that uses only data from observable markets, the difference between the fair value at initial recognition and the transaction price shall be recognized as a gain or loss. - in all other cases, adjusted to defer the difference between the fair value at initial recognition and the transaction price. After initial recognition, that deferred difference shall be recognized as a gain or loss only to the extent that it arises from a change in a factor (including time) that market participants would take into account when pricing the asset or liability. Financial assets and liabilities are subsequently measured at each period-end as follows: i. Measurement of financial assets Financial assets measured at fair value. The fair value of a financial instrument on a given date is taken to be the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. 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 and transparent active market (quoted price or market price). 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 financial assets are accounted for at the trade date. Subsequent measurement of financial assets depends on the Bank’s business model for managing the financial assets and the cash flows characteristics of the financial asset. There are three measurement categories into which the Bank classifies its financial assets: - Amortized cost: financial instruments under a business model whose objective is to collect principal and interest cash flows, over which there is no significant unjustified sales and fair value is not a key element in the management of these assets and contractual conditions give rise to cash flows on specific dates, which are SPPI. In this sense, unjustified sales are considered to be those other than those related to an increase in the credit risk of the asset, unanticipated funding needs (stress case scenarios). Additionally, the characteristics of its contractual cash flows represent substantially a “basic financing agreement”. Interest income from these financial assets is included in Interest income in the consolidated income statement using the effective interest rate method. Any gain or loss arising on derecognition is recognized directly in profit or loss and presented in Gains/(losses) from the derecognition of financial assets at amortized cost in the consolidated income statement. Foreign exchange gains and losses are presented in Exchange differences (net) and impairment losses are presented in Impairment losses on financial assets (net) in the consolidated income statement. - FVTOCI: 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”. Changes in the fair value are taken through other comprehensive income, except for the recognition of impairment gains and losses, interest revenue and foreign exchange gains and losses on the instrument’s amortized cost which are recognized in profit or loss. When the financial assets are derecognized, the cumulative gain or loss previously recognized in other comprehensive income is reclassified to profit or loss and recognized in Gains/(losses) on financial assets and liabilities (net) in the consolidated income statement. Interest income from these financial assets is included in Interest income using the effective interest rate method in the consolidated income statement. Foreign exchange gains and losses are presented in Exchange differences (net) and impairment losses are presented within Impairment losses on financial assets not at fair value through profit or loss (net) in the consolidated income statement. - FVTPL: 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 of these assets, and financial instruments whose contractual cash flow characteristics do not substantially represent a “basic financing agreement”. Changes in the fair value of financial assets at FVTPL are recognized in profit or loss and presented net within Gains/(losses) on financial assets and liabilities (net) in the consolidated income statement in the period in which it arises. Interest income from these financial assets is included as a separate line item within the consolidated income statement in Interest income from financial assets at fair value through profit or loss using the effective interest rate method. Loans with different components The Bank originates loans to hold to maturity and to collect and sell or sub-participate to other lenders, resulting in a transfer of substantially all the risk and rewards and derecognition of the loan or portion of it. The Bank considers the activities of lending to hold and lending to collect and sell or sub-participate as two separate business models. Financial assets considered to be within a business model that has an objective to hold the financial assets to collect contractual cash flows are accounted for at amortized cost. Financial assets considered to be within a business model that has an objective to collect contractual cash flows and to sell or sub-participate to other lenders are accounted for at FVTOCI. Amortized cost and effective interest rate The amortized cost is the amount at which the financial asset or financial liability is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount and, for financial assets, adjusted for any allowance for impairment losses. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial asset or financial liability to the gross carrying amount of a financial asset or to the amortized cost of a financial liability. The calculation does not consider expected credit losses and includes transaction costs, premiums or discounts and fees and points paid or received that are integral to the effective interest rate, such as origination fees. For purchased or originated credit-impaired (POCI) financial assets, the Bank calculates the credit-adjusted effective interest rate, which is calculated based on the amortized cost of the financial asset instead of its gross carrying amount and incorporates the impact of expected credit losses in estimated future cash flows. When the Bank revises the estimates of future cash flows, the carrying amount of the respective financial assets or financial liabilities is adjusted to reflect the new estimate discounted using the original effective interest rate. Any changes are recognized in profit or loss. Interest income Interest income is calculated by applying the effective interest rate to the gross carrying amount of financial assets measured at FVTPL, at FVTOCI and at amortized cost, except for: - POCI financial assets, for which the original credit-adjusted effective interest rate is applied to the amortized cost of the financial asset. - Financial assets that are not POCI but have subsequently become credit-impaired (or Stage 3), for which interest revenue is calculated by applying the effective interest rate to their amortized cost. Equity instruments The Bank measures at initial recognition all equity instruments at its fair value plus transaction costs that are directly attributable to its acquisition. The Bank subsequently measures all equity instruments at fair value with changes in profit or loss, unless the Bank elects to irrevocably present fair value gains and losses on equity instruments in other comprehensive income, consequently there is no subsequent reclassification on fair value gains and losses to profit or loss following the derecognition of the equity instrument including on disposal; fair value gains and losses on equity instruments are reclassified to Accumulated reserves on derecognition. The fair value gains and losses on equity instruments presented in other comprehensive income includes any related foreign exchange component. Up to December 31, 2017, the Bank subsequently reclassified the fair value gains and losses from other comprehensive income to profit or loss following the derecognition of the equity instruments including on disposal. Dividends from such equity instruments continue to be recognized in profit or loss as Dividend income in the consolidated income statement when the Bank’s right to receive payments is established. As of 31 December 2018 and 2019, 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. Up to December 31, 2017, equity instruments whose fair value could not be determined in a sufficiently objective manner and financial derivatives that had those instruments as their underlying and were settled by delivery of those instruments were measured at acquisition cost adjusted, where appropriate, by any related impairment loss. Financial derivatives All financial 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 financial 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 financial 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” (OTC) financial derivatives. The fair value of OTC financial 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 net present value, option pricing models and other methods. ii. Measurement of financial liabilities In general, financial liabilities are measured at amortized cost, as defined above, except for those included under Financial liabilities at fair value through profit or loss 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 as of December 31, 2018 and 2019 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: 12/31/2018 12/31/2019 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 at fair value through profit or loss 109,858 157,666 267,524 111,259 156,868 268,127 Other financial assets at fair value through profit or loss — 107,425 107,425 — 79,927 79,927 Financial assets at fair value through other comprehensive income 125,383 30,406 155,789 201,580 35,400 236,980 Hedging derivatives — 9,285 9,285 — 9,256 9,256 235,241 304,782 540,023 312,839 281,451 594,290 LIABILITIES: Financial liabilities at fair value through profit or loss 689 254,792 255,481 324 153,276 153,600 Other financial liabilities at fair value through profit or loss — 105,430 105,430 — 273,725 273,725 Hedging derivatives — 8,393 8,393 — 7,523 7,523 689 368,615 369,304 324 434,524 434,848 The financial instruments at fair value determined on the basis of published price quotations in active markets (Level 1) include government debt securities, private-sector debt securities, financial derivatives traded in organized markets, securitized assets, equity shares, short positions and fixed-income securities issued. 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 TIIE (Tasa de Interés Interbancaria de Equilibrio) : 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. Long-term Mexican rate curve: There is no liquid market for estimating and discounting financial instruments with maturities equal or higher than 20 years. Market credit spreads: For some counterparties there is no credit default swaps (CDS) market quotes from which it is possible to infer a credit spread curve, this aspect is common for most of the Mexican counterparties. When there is no credit default swaps quote, generic credit curves are used instead. These curves are inferred from a proxy of quoted market credit default swaps considering geography, sector and rating. 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 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. Financial assets at fair value through profit or loss and at fair value through other comprehensive income 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. Loans and advances to customers at fair value through other comprehensive income The estimated fair value of these financial assets is calculated by a default estimation method. This method consists of: a) estimating the default probabilities through a bootstrapping method from market credit spreads to incorporate the credit risk in the risk interest rate and b) discounting the expected cash flow at risk interest rate through the applicable discount factor. Both steps use observable market data (yield curves and market credit spreads) which are provided by a price vendor. The model assumes a deterministic approximation for modelling the cancellation prepayment: it is assumed that the obligor has a rational behavior and will exercise at the best moment, and then it assumes that the cancellation will be total. d. 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. e. 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 financial 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. f. Marketable debt securities 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 financial derivatives as a result of the risk associated with the credit exposure assumed with each counterparty. The CVA is calculated taking into account potential 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 exposure: including for each transaction the mark-to-market (MtM) value plus an add-on for the potential future exposure for each period. Mitigating factors such as collateral and netting agreements are taken into account, as well as a temporary impairment factor for financial derivatives with interim payments. · Loss Given Default: percentage of final loss assumed in a counterparty credit event /default. · Probability of Default: for cases where there is no market information (the CDS quoted spread curve, etc.), proxies based on companies holding exchange-listed CDS, in the same industry and with the same external ratings as the counterparty, are used. · Discount factor curve. The Debt Valuation Adjustment (DVA) is a valuation adjustment similar to the CVA but, in this case, it arises as a result of the Bank’s own risk assumed by its counterparties in OTC financial derivatives. The CVA and DVA recognized as of December 31, 2018 amounted to 369 million pesos and 2,026 million pesos, respectively. The CVA and DVA recognized as of December 31, 2019 amounted to 265 million pesos and 1,321 million pesos, respectively. All financial instruments fair values are calculated on a daily basis. During 2019, the Bank carried out a review of its financial instruments fair value valuation process with the purpose of increasing the observability of certain inputs and parameters used in its valuation techniques. As a result of this review, the sensitivity for those non-observable risk factors, such as the long-term Mexican rate curve, is considered non material with respect to the rest of the risk factors that are taken into account to calculate the fair value of some financial instruments; consequently they were reclassified from Level 3 to Level 2. In addition, the Bank has reclassified from Level 2 to Level 3 certain financial instruments with underlying interest rate curves that are considered non-observable and non-liquid inputs to the fair value of such financial instruments. This reclassification was originated since the development of more robust tools and analytic capabilities that are useful to classify the fair value hierarchy for financial instruments. The amount of financial instruments that were reclassified between levels during 2019 is not significant to the total financial instruments per level. During 2019, 2018 and 2017, the Bank has not carried out significant reclassifications of financial instruments between levels except the changes disclosed in the Level 3 table. Set forth below are the financial instruments at fair value which measurement was based on internal models (Level 2 and Level 3) as of December 31, 2018 and 2019. Fair Fair Values Values Calculated Calculated Using Internal Using Internal Valuation Techniques Key Inputs Models as of Models as of 12/31/2018 12/31/2019 Level 2 Level 3 Total Level 2 Level 3 Total ASSETS: Financial assets at fair value through profit or loss: 156,872 794 157,666 155,930 938 156,868 Debt and equity instruments 3,588 — 3,588 5,593 — 5,593 Price Vendor Financial instruments with low trading volume or minimum marketability. Trading derivatives: Interest rate options 1,450 — 1,450 421 — 421 Black model (closed-formula solution) Interest rate yield curve and implied volatility surface Market index options: 49 — 49 212 60 272 European options — — — 2 — 2 Black model (closed-formula solution) Interest rate yield curves, quoted equity prices and index levels, implied volatility surface and dividends estimation Best of options (Basket) 2 — 2 — — — Local volatility model with Monte Carlo method Interest rate yield curves, equity prices and index levels, implied volatility surface, historical correlations and dividends estimation Quanto options 36 — 36 147 60 207 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 (Quanto) 11 — 11 63 — 63 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: 1,192 44 1,236 993 — 993 European barrier — — — 1 — 1 Black model (closed-formula solution) Interest rate yield curves, quoted exchange rates and implied volatility surface European options 1,192 44 1,236 992 — 992 Black model (closed-formula solution) Interest rate yield curves, quoted exchange rates and implied volatility surface Swaps 142,977 222 143,199 139,901 878 140,779 Forward estimation (non-closed formula) Interest rate yield curve and quoted exchange rates Index and securities futures 936 — 936 10 — 10 Forward estimation (non-closed formula) Interest rate yield curve and quoted exchange rates Exchange rate futures 6,680 528 7,208 8,800 — 8,800 Forward estimation (non-closed formula) Interest rate yield curve and quoted exchange rates Other financial assets at fair value through profit or loss: 107,425 — 107,425 79,927 — 79,927 Loans and advances to credit institutions – Reverse repurchase agreements 98,332 — 98,332 54,138 — 54,138 Forward estimation (non-closed formula) Interest rate yield curve Loans and advances to customers – Reverse repurchase agreements 9,093 — 9,093 25,789 — 25,789 Forward estimation (non-closed formula) Interest rate yield curve Financial assets at fair value through other comprehensive income: 29,635 771 30,406 32,525 2,875 35,400 Debt instruments 29,575 — 29,575 32,469 — 32,469 Price Vendor Financial instruments with low trading volume or minimum marketability. Equity instruments 60 — 60 56 — 56 Other Value of shareholders’ equity Loans and advances to customers — 771 771 — 2,875 2,875 Estimation of credit default probabilities from credit spreads Interest rate yield curves and market credit spreads Hedging derivatives: 9,285 — 9,285 9,256 — 9,256 Swaps 4,174 — 4,174 4,768 — 4,768 Forward estimation (non-closed formula) Interest rate yield curve and quoted exchange rates Exchange rate forwards 5,111 — 5,111 4,488 — 4,488 Forward estimation (non-closed formula) Interest rate yield curve and quoted exchange rates 303,217 1,565 304,782 277,638 3,813 281,451 Fair Fair Values Values Calculated Calculated Using Internal Using Internal Models as of Models as of Valuation 12/31/2018 12/31/2019 Techniques Key Inputs Level 2 Level 3 Total Level 2 Level 3 Total LIABILITIES: Financial liabilities held for trading/Financial liabilities at fair value through profit or loss: 254,637 155 254,792 152,485 791 153,276 Trading derivatives: Interest rate options 973 — 973 467 8 475 Black model (closed-formula solution) Interest rate yield curve and implied volatility surface Market index options: 179 — 179 81 60 141 European 1 — 1 1 — 1 Black and Scholes model (closed-formula solution) Interest rate yield curves, quoted equity prices, index levels, implied volatility surface and dividends estimation Auto-callable 167 — 167 — — — 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) 1 — 1 — — — 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 Quanto options 10 — 10 80 60 140 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: 1,348 153 1,501 1,548 — 1,548 European barrier — — — 4 — 4 Black model (closed-formula solution) Interest rate yield curves, quoted exchange rates and implied volatility surface European options 1,341 153 1,494 1,344 — 1,344 Black model (closed-formula solution) Interest rate yield curves, quoted exchange rates and implied volatility surface American barrier and touch options 7 — 7 200 — 200 Mixed volatility model with partial differential equation method Interest rate yield curves, quoted exchange rates and implied volatility surface Swaps 143,448 — 143,448 134,627 723 135,350 Forward estimation (non- closed formula solution) Interest rate yield curves and quoted exchange rates Index and securities futures 839 — 839 18 — 18 Forward estimation (non- closed formula solution) Interest rate yield curves, quoted equity prices and index levels exchange rates Exchange rate futures 6,096 2 6,098 6,625 — 6,625 Forward estimation (non- closed formula solution) Interest rate yield curve and quoted exchange rates . Short positions: Debt instruments 101,754 — 101,754 9,119 — 9,119 Forward estimation (non- closed formula soluti |
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 to 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. The exchange between the Bank and its original lenders of debt instruments with substantially different terms, as well as substantial modifications of the terms of existing financial liabilities, are accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The terms are substantially different if the discounted present value of the cash flows under the new terms, including any fees paid net of any fees received and discounted using the original effective interest rate, is at least 10% different from the discounted present value of the remaining cash flows of the original financial liability, both discounted at the original effective interest rate of the original liability. In addition, other qualitative factors, such as the currency that the instrument is denominated in, changes in the type of interest rate, new conversion features attached to the instrument and change in covenants are also taken into consideration. If an exchange of debt instruments or modification of terms is accounted for an extinguishment, any costs of fees incurred are recognized as part of the gain or loss on the extinguishment. If the exchange or modification is not accounted for as an extinguishment, any costs or fees incurred adjust the carrying amount of the liability and are amortized over the remaining term of the modified liability. |
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 financial derivative clearing agreements, global master repurchase agreements and global master securities lending agreements. Similar financial instruments include financial 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. Financial 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: · Financial 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 (CSA). 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 of December 31, 2018: 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 Financial derivative assets 164,238 — 164,238 (92,928) (4,044) (42,391) 24,875 Reverse repurchase agreements 107,425 — 107,425 — (107,560) — (135) Equity instruments (*) (see Note 9.a) 250 — 250 — (250) — — Total 271,913 — 271,913 (92,928) (111,854) (42,391) 24,740 As of December 31, 2019: 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 Financial derivative assets 161,003 — 161,003 (128,590) (5,736) (16,759) 9,918 Reverse repurchase agreements 79,927 — 79,927 (2,944) (76,592) — 391 Equity instruments (*) (see Note 9.a) 13 — 13 — (14) — (1) Total 240,943 — 240,943 (131,534) (82,342) (16,759) 10,308 (*) As of December 31, 2018 and 2019, the financial instruments received as collateral in lending transactions amount to 333 million pesos and 14 million pesos, respectively, which are limited to the net equities lent under the aforementioned lending transactions. The following financial liabilities are subject to offsetting, enforceable master netting arrangements and similar agreements: As of December 31, 2018: 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 Financial derivative liabilities 162,120 — 162,120 (92,928) (6,234) (29,409) 33,549 Repurchase agreements 173,515 — 173,515 — (101,197) 72,318 Short positions - Securities loans (see Note 10.b) 28,239 — 28,239 — (29,086) (847) Short positions – Short sales (see Note 10.b) 72,835 — 72,835 — (72,809) 26 Total 436,709 — 436,709 (92,928) (209,326) (29,409) 105,046 As of December 31, 2019: 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 Financial derivative liabilities 152,004 — 152,004 (128,590) (4,472) (14,300) 4,642 Repurchase agreements 270,479 — 270,479 (2,944) (191,422) — 76,113 Short positions - Securities loans (see Note 10.b) 8,280 — 8,280 — (8,809) — (529) Short positions - Short sales (see Note 10.b) 77,657 — 77,657 — (77,824) — (167) Total 508,420 — 508,420 (131,534) (282,527) (14,300) 80,059 |
Impairment of financial assets | g) Impairment of financial assets Definition The Bank associates an impairment in the value to financial assets measured at amortized cost, financial assets measured at fair value with changes in other comprehensive income, lease receivables and loan commitments and guarantees granted that are not measured at fair value. The impairment represents the best estimation of the financial assets expected credit losses at the consolidated balance sheet date. The impairment for expected credit losses is recognized in the consolidated income statement for the period in which the impairment arises. In the event of occurrence, the recoveries of previously recognized impairment losses are recognized in the consolidated income statement for the period in which the impairment no longer exists or is reduced. In the case of POCI financial assets, the Bank only recognizes at the reporting date the changes in the expected credit losses during the life of the asset since the initial recognition as a credit loss. In the case of assets measured at fair value with changes in other comprehensive income, the changes in the fair value due to expected credit losses are recognized in the consolidated income statement of the year where the change happened, reflecting the rest of the valuation in other comprehensive income. The expected credit loss is estimated as the difference between the contractual cash flows to be recovered and the expected cash flows discounted using the original effective interest rate. In the case of POCI financial assets, this difference is discounted using the effective interest rate adjusted by credit rating. Allowance for impairment losses The Bank assesses on a forward-looking basis the expected credit losses associated with its financial assets carried at amortized cost and at fair value through other comprehensive income. The impairment methodology applied depends on whether there has been a significant increase in credit risk. The impairment estimation methodology segregates financial assets in three categories, based on the stage of each financial asset with regard to its level of credit risk: · Stage 1 (“Normal risk”): financial assets for which no significant increase in credit risk is identified since their initial recognition. In this case, the allowance for impairment losses reflects credit losses arising from expected defaults over the following 12 months from the reporting date. · Stage 2 (“Normal risk under watchlist”): if there has been a significant increase in credit risk since the date of initial recognition but the impairment event has not materialized, the financial asset is classified as Stage 2. In this case, the allowance for impairment losses reflects the expected losses from expected defaults over the life of the financial asset. · Stage 3 (“Doubtful risk”): a financial asset is classified in this Stage when it shows effective signs of impairment as a result of one or more credit events that have already occurred resulting in a credit loss. In this case, the amount of the allowance for impairment losses reflects the expected losses for credit risk over the expected life of the financial asset. For POCI financial assets, the allowance for impairment losses reflects a deep discount that considers the incurred expected credit risk losses of the financial asset. Once the Bank has classified its financial assets according to the Stage mentioned above, those financial assets are assessed for impairment individually or collectively in order to recognize the allowance for impairment losses arising from credit risk, as follows: Individual assessment Financial assets individually assessed for credit impairment are evaluated by the following methodologies: i) Calculating the present value of expected cash flows discounted at an appropriate discount rate of those individually significant financial assets considering the debtor’s financial situation and any guarantees and collateral in place. The Bank takes into account all available information (external or internal), including expert judgment and reasonable and supportable forecasts of future events, to estimate the present value of expected cash flows, and ii) Calculating the expected recovery from available collateral and guarantees, minus the estimated dispositions costs. Subsequently, expected cash flows, discounted at an appropriate rate, are estimates using the expected values from the sale or foreclosure of collateral and guarantees. The Bank takes into account all available information (external or internal), including expert judgment and reasonable and supportable forecasts of future events, to estimate the present value of expected cash flows. The Bank has defined as an “individually significant financial asset” those financial assets with a total current risk exposure amounting more than 8 million pesos for wholesale and small and medium-sized enterprises (SMEs) loan portfolios. This threshold is reviewed annually to adapt it to the Bank’s business circumstances. Collective assessment Financial assets collectively assessed for credit impairment are evaluated by 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, reasonable and supportable forecasts of futures events, the guarantees and collateral associated with the transaction. In the estimation of the parameters used for the 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 internal 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. The Bank performs retrospective and monitoring tests to evaluate the reasonableness of the collective estimate. Grouping of financial assets for collective assessment Financial assets assessed collectively are grouped together considering those that have similar credit risk characteristics indicative of the debtors’ ability to pay all principal and interest amounts in accordance with the 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. In performing this grouping, there must be sufficient information for the group to be statistically credible. Where sufficient information is not available internally, the Bank has considered internal/external supplementary data to use for assessing purposes. The characteristics and any supplementary data used to determine groupings are outlined below: a) Middle-market corporations loans · Credit rating band · Days past due · Product type · Vintage · Maturity · Guarantee or collateral b) Mortgage loans · Credit score · Time to maturity · Days past due · Vintage · Loan to value ratio band · Credit conversion from variable to fixed rate c) Credit card loans · Credit score · Days past due · Vintage · Available credit amount · Credit limit · Balance d) Personal loans · Credit score · Days past due · Product type · Vintage · Top-up susceptible e) Small and medium-sized enterprises loans · Credit score · Days past due · Balance · Vintage · Product type · Available credit amount · Credit limit · Guarantee from development banks f) Payroll loans · Credit score · Days past due · Granted amount · Balance · Percentage of granted amount · Vintage · Employer activity The appropriateness of grouping is monitored and reviewed on a periodic basis. Significant increase in credit risk The Bank considers a financial asset to have experienced a significant increase in credit risk, since initial recognition, assigning a classification into Stage 2, when one or more of the following quantitative, qualitative or backstop criteria have been met: Quantitative criteria For commercial loans to small and medium-sized enterprises, mortgage loans and installment loans to individuals (revolving consumer credit card loans and non-revolving consumer loans), the Bank has established a comparison between the “Lifetime PD” at the reporting date and the “Remaining Lifetime PD Originated” when the financial asset was initially recognized. The financial assets are classified by the “Remaining Lifetime PD Originated” into bands. If the financial asset exceeds the predefined threshold for its band, it is classified as Stage 2 with the corresponding “Lifetime PD” at the reporting date. Each “Remaining Lifetime PD Originated” band classifies all the financial assets with similar characteristics of probability of default within a 12 month period. In order to determine the applicable thresholds for each band, the Bank has analyzed the distribution of “Observed Default Frequency” within a 12 month period in order to determine the threshold for each band where the defaults observed are concentrated. “Observed Default Frequency” is defined as the rate in which loans that were not impaired become credit-impaired in a lifetime period. The different bands of thresholds for each type of financial asset are shown below. Commercial loans to large enterprises “Lifetime PD” band at Increase in “Lifetime PD” at reporting date which initial recognition (%) is considered significant (basis points) ≤0.78 5.00 0.78 - 1.37 17.00 1.37 - 4.78 29.00 4.78 - 7.81 41.00 >7.81 53.00 Commercial loans to real state “Lifetime PD” band at Increase in “Lifetime PD” at reporting date which initial recognition (%) is considered significant (basis points) ≤0.68 23.00 0.68 - 0.91 27.00 0.91 - 1.07 30.00 1.07 - 1.4 34.00 1.4 - 7.94 37.00 >7.94 41.00 Commercial loans to small and medium-sized enterprises (SMEs) “Lifetime PD” band at Increase in “Lifetime PD” at reporting date which initial recognition (%) is considered significant (basis points) ≤1.66 12.00 1.66 - 3.00 13.00 3.00 - 6.00 14.00 6.00 - 8.00 17.00 8.00 - 10.00 18.00 10.00 - 13.00 19.00 13.00 - 15.00 20.00 15.00 - 18.00 20.70 18.00 - 22.00 21.30 >22.00 22.00 Mortgage loans “Lifetime PD” band at Increase in “Lifetime PD” at reporting date which initial recognition (%) is considered significant (basis points) ≤4.08 16.00 4.08 - 5.66 28.00 5.66 - 11.32 40.00 11.32 - 12.70 41.00 12.70 - 15.32 42.00 15.32 - 16.99 43.00 16.99 - 21.64 44.00 >21.64 45.00 Revolving consumer credit card loans “Lifetime PD” band at Increase in “Lifetime PD” at reporting date which initial recognition (%) is considered significant (basis points) ≤0.5 16.00 0.5 - 1.0 19.00 1.0 - 1.5 22.00 1.5 - 2.0 25.00 2.0 - 4.0 29.00 4.0 - 6.0 32.00 6.0 - 8.0 35.00 8.0 - 10.0 38.00 >10.0 41.00 Non-revolving consumer loans (payroll loans) “Lifetime PD” band at Increase in “Lifetime PD” at reporting date which initial recognition (%) is considered significant (basis points) ≤10.06 11.00 10.06 - 13.04 16.00 13.04 - 15.11 20.00 15.11 - 16.77 22.30 16.77 - 19.56 24.50 19.56 - 21.80 26.80 21.80 - 22.92 29.00 22.92 - 28.19 31.00 28.19 - 34.70 33.00 >34.70 35.00 Non-revolving consumer loans (personal loans) “Lifetime PD” band at Increase in “Lifetime PD” at reporting date which initial recognition (%) is considered significant (basis points) ≤9.32 11.00 9.32 - 13.97 19.00 13.97 - 16.65 24.00 16.65 - 19.00 31.00 19.00 - 23.68 36.00 23.68 - 25.67 36.50 25.67 - 26.74 37.00 26.74 - 31.84 37.50 >31.84 38.00 The “Lifetime PD” movements on financial assets which do not subsequently become more than 30 days past due have also been assessed to identify the “natural” movement in “Lifetime PD” which is not considered indicative of a significant increase in credit risk. For corporate and investment banking customers (global and local), debt instruments at amortized cost and debt instruments at fair value through other comprehensive income, the assessment is performed by comparing the current credit rating with the initial credit rating for each financial asset. Qualitative criteria For commercial loans to small and medium-sized enterprises, mortgage loans and installment loans to individuals (revolving consumer credit card loans and non-revolving consumer loans), if the borrower meets one or more of the following criteria: · In short-term forbearance. · Extension to the terms granted. For global corporate and investment banking customers, debt instruments at amortized cost and debt instruments at fair value through other comprehensive income, if the borrower requires closer monitoring and a review of its credit rating and/or the financial asset meets one or more of the following criteria: · Significant debt instrument price variation. · Significant adverse changes in business, financial and/or economic conditions in which the borrower operates. · Actual or expected forbearance or restructuring. · Actual or expected significant adverse change in operating results of the borrower. · Significant change in collateral value which is expected to increase risk of default. · Early signs of cash flow/ liquidity problems. The assessment of significant increase in credit risk incorporates forward-looking information and is performed on a monthly basis at a portfolio level for all retail financial assets held by the Bank. For non-retail financial assets, where a “watchlist” is used to monitor credit risk, this assessment is performed at counterparty level on a periodic basis. The criteria used to identify the significant increase in credit risk are monitored and reviewed periodically for appropriateness by the Bank. The Bank does not consider the low credit risk as an indicator that a financial asset has not increased significantly in risk since initial recognition. Backstop criteria A backstop is applied and the financial asset is considered to have experienced a significant increase in credit risk if the borrower is more than 30 days past due on its contractual payments. Definition of default and credit-impaired financial assets The Bank defines a financial asset as in default, when the financial asset is considered as credit-impaired. Credit-impaired loans include customers which are in financial difficulties and have been renegotiated. Credit-impaired financial assets are classified as Stage 3 category according to IFRS 9. The Bank applies the following criteria to classify financial assets as credit-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 interest or principal 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 credit-impaired when a payment is past due more than 90 days. · Installment loans to individuals Revolving consumer credit cards loans are considered credit-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 credit-impaired financial assets (loans), the sum of all transactions of a customer when the loan balances of the same customer categorized as credit-impaired (Stage 3) are equivalent to more than 20% of the total outstanding amounts of that customer. These instruments may be reclassified to other categories if, as a result of the collection of part of the past due balances, the reasons for their classification in Stage 3 do not remain and the client does not have balances more than 90 days past due in other loans. Financial assets (loans) which are not credit-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 credit-impaired. This analysis includes, among others: customers in situations involving deterioration in their creditworthiness, such as negative net equity, continued losses, significant decrease in revenue or in the client’s recurring cash flows, general delay in payments, inadequate economic or financial structure, insufficient cash flows to settle debt or inability to obtain additional financing, the existence of an internal or external rating showing that the client is in default and the existence of overdue customer commitments with a significant amount to public institutions or employees. These financial instruments may be reclassified to other categories if, as a result of an individualized study, reasonable doubts do not remain about the total repayment under the contractually agreed terms and the client does not have balances with more than 90 days past due. Credit-impaired loans, which are renegotiated will remain classified as Stage 3 category until there exists evidence of sustained payment. Sustained payment is considered as the payment by the borrower without payment delay for the total amount due and payable in terms of principal and interest during certain period of time. A financial asset (loans) is considered to be no longer in default (i.e., to have been cured) when all the contractual payments have been settled, except for those cases in which the borrower is in long-term forbearance and the financial asset does not fulfill the criteria to be considered as credit-impaired. For these particular cases, a twelve month probation period is necessary in order to be considered as not in default. In the case of forbearances, instruments classified as Stage 2 (“normal risk under watchlist”) may be generally reclassified to Stage 1 (“normal risk”) in the following circumstances: at least two years have elapsed from the date of reclassification to that category or from its forbearance date, the client has paid the accrued principal and interest balance, and the client has no other instruments with more than 30 days past due balances. In the case of forbearances, instruments classified as Stage 3 (“doubtful risk”) may be reclassified to Stage 2 (“normal risk under watchlist”) when the following circumstances are present: a minimum period of one year has elapsed from the forbearance date, the client has paid the accrued principal and interest amounts, and the client has no other loan balance with more than 90 days past due. Debt instruments are considered credit-impaired when a payment is past due more than 90 days. Measuring expected credit losses Measurement of expected credit losses requires the use of complex models and significant assumptions about future economic conditions and credit behavior (i.e., the likelihood of customers defaulting and the resulting credit losses) and also requires significant judgments that must be supported by past, present and future information, such as: · Determining criteria for significant increase in credit risk. · Choosing appropriate models and assumptions for the measurement of expected credit losses. · Making assumptions and estimates to incorporate relevant information about past events, current conditions and forecasts of macroeconomic conditions. · Determining the lifetime and point of initial recognition of revolving consumer credit card loans. · Establishing the number and relative weightings of forward-looking scenarios. · Establishing groups of similar financial assets for the purpose of measuring expected credit losses. The methodology for the quantification of expected credit losses is based on an unbiased and weighted consideration of the occurrence of up to 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 certain portfolio factors and macroeconomic factors, such as Gross Domestic Product (GDP), Consumer Price Index (CPI), or unemployment rates, deemed relevant to the measurement of expected credit losses. ECL are recognized for financial assets measured at amortized cost, financial assets measured at FVTOCI, financial guarantees and loan commitments. ECL are also recognized on the undrawn portion of revolving credit lines, which include credit card limits. The ECL are measured on either a twelve-month or “Lifetime” basis depending on whether a significant increase in credit risk has occurred since initial recognition or whether a financial asset is considered to be credit-impaired. Expected credit losses are the discounted product of the PD, EAD and LGD, defined as follows: · The PD is the estimated probability that the counterparty will default on 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 or is deemed to be in default as per the criteria mentioned above, either over the next twelve months or over the remaining lifetime (Lifetime PD) of the obligation. · EAD is the amount of estimated risk exposure incurred at the time of the counterparty’s analysis. · LGD is the estimated loss arising in an event of default. It depends mainly on the guarantees and collateral associated with the transaction. LGD is expressed as a percentage loss per unit of exposure at the time of default (EAD). LGD is calculated on a twelve-month or “Lifetime” basis, where twelve-month LGD is the percentage of loss expected to be incurred if the default occurs in the next twelve months and “Lifetime” LGD is the percentage of loss expected to be incurred if the default occurs over the remaining expected lifetime of the loan. The ECL are determined by projecting the PD, LGD and EAD for each future year and for each loan. These three components are multiplied together and adjusted for the likelihood of survival (i.e., the exposure has not prepaid or defaulted in an earlier month). This effectively calculates the ECL for each future year, which is then discounted back to the reporting date and added. The discount rate used in the ECL calculation is the original effective interest rate of the exposure or an approximation thereof. The “Lifetime PD” is developed by applying a maturity profile to the current twelve-month PD. The maturity profile looks at how defaults develop on a financial assets portfolio from the point of initial recognition throughout the lifetime of the financial assets. The maturity profile is based on historical observed data and is assumed to be the same across all financial assets within a portfolio. This is supported by historical analysis. The twelve-month EAD and “Lifetime” EAD are determined based on the expected payment profile, which varies by financial asset type. · For amortizing products and bullet repayment loans, this is based on the contractual repayments owed by the borrower over a twelve-month or “Lifetime” basis. “Lifetime” EAD will also be adjusted for any expected overpayments made by a borrower. Early repayment/refinance assumptions are also incorporated into the “Lifetime” EAD calculation. · For revolving consumer loans, the EAD is predicted by taking current drawn balance and adding a “Credit Conversion Factor” (CCF) which allows for the expected drawdown of the remaining limit by the time of default. These assumptions vary by loan type and current limit utilization band, based on analysis of the Bank´s recent historical default data. The twelve-month LGD and “Lifetime” LGD are determined based on the factors which impact the recoveries made post default. These vary by financial asset type. · For secured financial assets, this is primarily based on collateral type and projected collateral values, historical discounts to market/book values due to forced sales, time to repossession and recovery costs observed. · For unsecured financial assets, LGD is typically set by financial asset due to the limited differentiation in recoveries archived across different borrowers. The LGD is influenced by collection strategies, including contracted debt sales and price. Forward-looking economic information is also included in determining the twelve-month PD, “Lifetime PD” and LGD. These assumptions vary by financial asset type. The assumptions underlying the ECL calculation – such as how the maturity profile of the PD and how collateral values change – are monitored and reviewed on a monthly basis. The Bank performs a periodic assessment to evaluate if the assumptions and methodology need to be updated. The assessments performed during the year ended December 31, 2019 have not identified significant changes in facts and circumstances that would require updates on estimation techniques, significant assumptions or methodologies currently employed in the ECL calculation. Expected life of the financial assets For the purpose of estimating the expected life of the financial assets, all the contractual terms have been taken into account (i.e., 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 assets with an uncertain maturity period and a component of undrawn commitment (i.e., credit cards), the expected life is estimated through quantitative analyses to determine the period during which the entity is exposed to credit risk, also considering the effectiveness of management procedures that mitigate such exposure (e.g. the ability to unilaterally cancel such financial asset, etc.). Effective guarantees The following constitute effective guarantees: a) i. Buildings and building elements, distinguishing among: · Houses; · Offices, stores and multi-purpose premises; · Rest of buildings such as non-multi-purpose premises and hotels. ii. Urban and developable ordered land. iii. Rest of properties that classify as: buildings and building elements under construction, such as property development in progress and halted development, and the rest of land types, such as rustic lands. b) c) d) Forward-looking information incorporated in the expected credit losses models The Bank already uses forward-looking information in internal administration and regulatory processes and has leveraged its experience in the management of such information, maintaining consistency with the information used in the other processes. The assessment of significant increase in credit risk and the calculation of ECL both incorporate forward-looking information. The Bank has performed historical analysis and identified the key macroeconomic and portfolio factors impacting credit risk and expected credit losses for each financial assets portfolio. The following represent the most significant macroeconomic factors that could substantially change the estimated ECL: · GDP growth rates, given their significant effect on borrowers’ performance. · Loans - Mortgage, given that changes in the real estate market have broader economic implications and vice versa. · Unemployment rates, given its significant effect on customers’ ability to meet contractual obligations. · CPI, given its overall relevance for entities’ performance, customers’ purchasing power and economic stability. · Peso/USD exchange rate, given its substantial influence on operations and profitability. · Loans – Consumer, given its relation to personal income and saving as a source of consumer purchasing power. · Total Deposits, given its impact on how much of a bank’s core funds can be used for lending. · Stock Markets, given its considered critical to economic development as it gives companies the ability to quickly access capital from the public. The associated impact of these macroeconomic factors and certain portfolio factors on the PD and LGD vary by type of financial asset. Expert judgment has also been applied in this process. Forecasts of these factors (“base economic scenario”) are provided by the Bank´s economics area on a periodic basis and offer the best estimate view of the economy over the next three years. After three years, to project these factors out for the full remaining lifetime of each financial asset, a mean reversion approach has been used. With this approach, the projected factors in the long-term will have statistical patterns such as average rate (i.e., for unemployment) or a growth rate (i.e., GDP) over a period of two to five years. The impact of these factors on the PD, EAD and LGD has been determined by performing statistical regression analysis to understand the impact changes in these factors have had historically on default rates and on the components of LGD and EAD. In addition to the base economic scenario, the Bank´s economics area also provide other possible scenarios along with scenario weightings. The number of other scenarios used is set based on the analysis of each major financial asset type to ensure nonlinearities are considered. The number of scenarios and their attributes are reassessed on a quarterly basis. For all financial assets portfolios, the Bank concluded that three scenarios appropriately consider nonlinearities. The scenario weightings are determined by a combination of statistical analysis and expert judgment, taking into account the range of possible outcomes each chosen scenarios is representative of. These weightings are presented for approval by the executive risk committee. The assessment of significant increase in credit risk is performed using the “Lifetime PD” under each of the base, and the other two scenarios (“upside” and “downside”) multiplied by the associated scenario weighting, along with qualitative and backstop indicators. This determines whether the whole financial asset is in Stage 1, Stage 2 or Stage 3 and hence whether twelve-month ECL or “Lifetime” ECL should be recognized. Following this assessment, the Bank measures ECL as either a probability weighted twelve-month ECL (Stage 1) or a probability weighted “Lifetime” ECL (Stage 2 and Stage 3). These probability-weighted ECL are determined by running each scenario (“base”, “upside” and “downside”), through the relevant ECL model and multiplying it by the appropriate scenario weighting (as opposed to weighting the inputs). As with any forecast, the projection and likelihoods of occurrence are subject to a high degree of inherent uncertainty and therefore the actual outcomes may be significantly different to those projected. Moreover, applying expert judgment in measuring ECL requires the use of assumptions which are highly subjective and very sensitive to macroeconomic changes and credit conditions. The Bank considers these forecasts to represent its best estimate of the possible outcomes and has analyzed the nonlinearities and asymmetries within the Bank´s different financial assets portfolios to establish that the chosen scenarios are appropriately representative of the range of possible scenarios. The factors used for the ECL estimate as of December 31, 2019 are set out below. The “base”, “upside” and “downside” scenarios were used for all financial assets portfolios, except for global corporates for which the Bank applies the same global macroeconomic scenarios as Banco Santander (Spain). Risk parameters, including a forward-looking add-ons for this portfolio are provided by Banco Santander (Spain). December 31, 2019: Factor Scenario December 2019 December 2020 December 2021 December 2022 Base GDP Upside Downside (7.10)% Base CPI (% year over year) Upside Downside Base Unemployment rates (% active population) Upside Downside Base Peso/USD (end of period) Upside 20.46 19.77 20.09 20.46 Downside 20.46 27.03 26.66 25.05 Base Loans Mortgage (% year over year) Upside Downside (4.50)% (0.20)% Base Loans - Consumer Upside Downside (7.50)% Base Deposits Total (% year over year) Upside Downside Base Stock Markets (level) Upside Downside The weightings assigned to each macroeconomic scenario as of December 31, 2018 and 2019 were as follows: December 31, 2019 Scenario Weighting Base Upside Downside Decemb |
Change in accounting estimates and accounting policies | h) Change in accounting estimates and accounting policies Initial adoption of IFRS 16 The Bank has adopted IFRS 16 from January 1, 2019. On adoption of IFRS 16, the Bank recognized lease liabilities in relation to leases which had previously been classified as ‘operating leases’ under the principles of IAS 17. These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate and the Bank recognized right-of-use assets which was initially measured at cost as of January 1, 2019. For leases previously classified as finance leases the entity recognized the carrying amount of the lease asset and lease liability immediately before transition as the carrying amount of the right-of-use asset and the lease liability at the date of initial application. The measurement principles of IFRS 16 are only applied after that date. In applying IFRS 16 for the first time, the Bank has used the following practical expedients permitted by the standard: · accounting for operating leases with a remaining lease term of less than 12 months as of January 1, 2019 as short-term leases, and · excluding initial direct costs for the measurement of the right-of-use asset at the date of initial application. The Bank has also elected not to reassess whether a contract is, or contains a lease at the date of initial application. Instead, for contracts entered into before the transition date, the Bank relied on its assessment made applying IAS 17 and IFRIC 4. Following is an analysis of initial measurement of lease liabilities: IAS 17 operating lease commitments based on gross cash flows disclosed as of December 31, 2018 10,015 Discounted using the Bank’s incremental borrowing rate of 11% 6,090 Add/(less): adjustments due to different treatment of extension and termination options 801 (Less): contracts to which the short-term leases exemption has been applied 77 (Less): services/non-lease components of lease contracts 80 IFRS 16 lease liability as of January 1, 2019 6,734 On transition to IFRS 16, the Bank recognized 6,734 million pesos of right-of-use assets and of lease liabilities. When measuring lease liabilities, the Bank discounted lease payments using the incremental borrowing rate as of January 1, 2019. The weighted-average rate applied was 11%. Initial adoption of IFRS 9 (date of transition January 1, 2018) The Bank has adopted IFRS 9 as issued by the IASB in July 2014 with a date of transition of January 1, 2018, which resulted in changes in accounting policies for recognition, classification and measurement of financial assets and financial liabilities and impairment of financial assets and adjustments to the amounts previously recognized in the consolidated financial statements. As permitted by the transitional provisions of IFRS 9, the Bank elected not to restate comparative figures. As a result, some disclosures presented for certain financial assets are not comparable because their classification may have changed from IAS 39 to IFRS 9. This means that some IFRS 9 disclosures are not directly comparable and some disclosures that relate to information presented on an IAS 39 basis are no longer relevant in the current period. Any adjustments to the carrying amounts of financial assets and liabilities at the date of transition were recognized in the opening balance of Accumulated reserves of the current period. The Bank has also elected to continue to apply the hedge accounting requirements of IAS 39 on adoption of IFRS 9. Consequently, the amendments to IFRS 7 have also only been applied to the current period. Set out below are the disclosures relating to the impact of the adoption of IFRS 9 on the Bank. Further details of the specific IFRS 9 accounting policies applied in the current period (as well as the previous IAS 39 accounting policies applied in the comparative period) are described in more detail in Notes 2.b and 2.c. Impact on the consolidated financial statements The adjustments recognized for each individual line item of the consolidated balance sheet are as follows: December 31, 2017 as originally presented Adjustments on initial adoption of IFRS 9 January 1, 2018 restated Measurement category under IFRS 9 Financial assets Available-for-sale financial assets 165,742 (165,742) — Financial assets at fair value through other comprehensive income (FVTOCI) — 92,611 92,611 FVTOCI Loans and receivables 679,300 (679,300) — Financial assets at amortized cost — 751,448 751,448 Amortized cost Tax assets Deferred 16,600 286 16,886 Provisions Provisions for off-balance sheet risk 1,032 (32) 1,000 Shareholders' equity Accumulated reserves 72,838 (2,279) 70,559 Valuation adjustments Available-for-sale financial assets (1,533) 1,533 — Financial assets at fair value through other comprehensive income (FVTOCI) 81 81 The total impact on Accumulated reserves as of January 1, 2018 is as follows: Accumulated reserves Balance as of December 31, 2017 Increase in allowance for impairment losses and provisions for off-balance sheet risk (3,238) Increase in allowance for impairment losses for debt instruments at FVTOCI (18) Increase in deferred tax assets relating to allowance for impairment losses and provisions for off-balance sheet risk 977 Adjustments to Accumulated reserves from adoption of IFRS 9 as of January 1, 2018 (2,279) Balance as of January 1, 2018 70,559 i) On January 1, 2018, the Bank’s Management has assessed which business model apply to the financial assets held by the Bank and has classified its financial instruments into the appropriate IFRS 9 categories. The main effects resulting from its classification are as follows: Available-for-sale financial assets Loans and receivables FVTOCI Amortized cost Balance as of December 31, 2017 165,742 679,300 — — Reclassification of debt instruments from Available-for-sale to Amortized cost (a) (73,131) — — 73,131 Remeasurement of debt instruments reclassified to Amortized cost (a) — — — 2,287 Reclassification of equity instruments from Available-for-sale to FVTOCI (b) (795) — 795 — Reclassification of debt instruments from Available-for-sale to FVTOCI (c) (91,816) — 91,816 — Reclassification of debt instruments from Loans and receivables to Amortized cost (d) — (10,758) — 10,758 Reclassification of Loans and advances to customers and credit institutions from Loans and receivables to Amortized cost (e) — (668,542) — 668,542 Allowance for impairment losses (e) — — — (3,270) Balance as of January 1, 2018 — — 92,611 751,448 The impact of these changes on Total equity is as follows: Valuation adjustments: Available-for-sale financial assets Valuation adjustments: Financial assets at FVTOCI Accumulated reserves Balance as of December 31, 2017 (1,533) — 72,838 Reclassifications of debt instruments from Available-for-sale to Amortized cost (*) (a) 1,601 — — Reclassifications of equity instruments from Available-for-sale to FVTOCI (*) (b) 28 (28) — Reclassifications of debt instruments from Available-for-sale to FVTOCI (*) (c) (109) 109 — Allowance for impairment losses for debt instruments at FVTOCI (c) 18 — (18) Allowance for impairment losses (e) — — (3,270) Provisions for off-balance sheet risk — — 32 Income tax (5) — 977 Balance as of January 1, 2018 — 81 70,559 (*) These amounts are presented net of income tax. a) Certain debt instruments were reclassified from Available-for-sale financial assets to Financial assets at amortized cost. Such debt instruments amount to 75,418 million pesos (amortized cost) as of January 1, 2018. The impact of the reclassification is an increase in Shareholders’ equity that amounts to 2,287 million pesos (1,601 million pesos, net of income tax) related to the valuation adjustment of those debt instruments recognized as of December 31, 2017. The valuation adjustment that would have been recognized in other comprehensive income as of December 31, 2018 if the aforementioned debt instruments had not been reclassified to Financial assets at amortized cost is a decrease of 1,326 million pesos (928 million pesos, net of income tax). b) The Bank has irrevocably elected to present in other comprehensive income changes in the fair value of all its equity instruments previously classified as Available-for-sale financial assets, because these equity instruments are held as long-term strategic investments that are not expected to be sold in the short to medium term. Accordingly, equity instruments with a fair value of 795 million pesos were reclassified from Available-for-sale financial assets to Financial assets at FVTOCI on January 1, 2018. c) Debt instruments with a fair value of 91,816 million pesos were reclassified from Available-for-sale financial assets to Financial assets at FVTOCI on January 1, 2018. As of January 1, 2018, it was recognized in other comprehensive income an allowance for impairment losses for debt instruments at FVTOCI of 18 million pesos (13 million pesos, net of income tax) with a corresponding charge to Accumulated reserves. d) Debt instruments with a carrying value of 10,758 million pesos were reclassified from Loans and receivables to Financial assets at amortized cost on January 1, 2018. e) Loans and advances to customers and credit institutions for an amount of 668,542 million pesos (carrying value) were reclassified from Loans and receivables to Financial assets at amortized cost on January 1, 2018. As of January 1, 2018, it was recognized an increase of 3,270 million pesos in the allowance for impairment losses for Loans and advances to customers at amortized cost with a corresponding charge to Accumulated reserves. ii) The reconciliation of the allowance for impairment losses and of the provisions for off-balance sheet risk measured in accordance with the IAS 39 incurred loss model and the allowance for impairment losses and the provisions for off-balance sheet risk measured in accordance with the IFRS 9 expected loss model as of January 1, 2018, is as follows: December 31, 2017 Remeasurements January 1, 2018 Loans and advances to customers 16,929 3,270 20,199 Loans and advances to credit institutions — — — Debt instruments — 18 18 Contingent commitments: Available lines of credit cards and non-revolving consumer loans 838 4 842 Guarantees and loan commitments of commercial and public sector loans 194 (36) 158 Total 17,961 3,256 21,217 As of January 1, 2018, there was no material impact on the allowance for impairment losses of Other assets from the initial adoption of IFRS 9. iii) As of January 1, 2018, the coverage ratio of the Bank (defined as the allowance for impairment losses divided by Loans and advances to customers at amortized cost) by stage was as follows: As of January 1, 2018 Loans and advances to customers Stage 1 Stage 2 Stage 3 Total Carrying amount 583,871 24,346 18,132 626,349 Allowance for impairment losses 7,456 4,780 7,963 20,199 Coverage ratio |
Repurchase agreements and reverse repurchase agreements | i) Repurchase agreements and Reverse repurchase agreements Purchases of financial instruments under a non-optional resale agreement at a fixed price (repos) 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 at a fixed price 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 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 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% Information Technology (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 As explained in Note 2.h, the Bank has adopted IFRS 16 from January 1, 2019. Until December 31, 2018, leases were 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 were classified as 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 acted as the lessor, the acquisition cost of the leased assets was presented under Tangible assets in the consolidated balance sheet. The depreciation policy for these assets were consistent with that for similar items of property, plant and equipment for own use, and income from operating leases was 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 were added to the carrying amount of the leased asset and recognized on a straight-line basis over the lease term. When the Bank acted as the lessee, the lease expenses, including any incentives granted by the lessor, were 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 were received to enter into operating leases, such incentives were recognized as a liability. The aggregate benefit of incentives was recognized as a reduction of rental expense on a straight-line basis. Since January 1, 2019, when the Bank acts as a lessee, a right-of-use asset and a lease liability is recognized at the beginning of the lease. Initially, the right-of-use asset is measured at cost, which comprises the amount of the lease liability, adjusted for any lease payment made in or before the commencement date and any lease incentives received, plus any other initial direct costs incurred by the lessee and an estimate of the costs for dismantling the underlying asset or for restoring the underlying asset or the site of its location, less any incentives received. Subsequently, the right-of-use asset is depreciated on the straight-line method from the commencement date to the lesser of the end of the useful life of the right-of-use asset or the end of the lease term. The estimate of the useful lives of the right-of-use asset is determined on the same bases as the assets. Also, right-of-use asset is reduced for impairment, if any, and adjusted for the remeasurement of the lease liability. The lease liability is initially measured at the present value of lease payments that have not been paid as of the commencement date, discounted at the rate implicit in the lease if that can be readily determined. If that rate cannot be readily determined, the lessee shall use the incremental borrowing rate. Subsequently, the lease liability is adjusted for interest and payments as well as, among others, for the impact of lease modifications. Lease payments included in the measurement of the lease liability comprise the following: - Fixed payments, including in-substance fixed payments; and - Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date. The lease obligation is measured on an amortized cost basis using an effective interest method and remeasured if there is a change in future lease payments resulting from a change in the inflation index or if the Bank changes its assessment as to whether it shall chose the lease extension or termination option. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the Bank, the lessee’s incremental borrowing rate is used, being the rate that the Bank would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. To determine the incremental borrowing rate, the Bank applies the Cross Section methodology, which consists of estimating the credit spread of the Bank based on the CDS information available from different entities. Under the Cross Section methodology the following factors are considered to obtain the Bank’s credit spread: · Economic sector, · Geographical area, · Rating, and · An assumption to represent that at least one factor described above, match with the factors related to the Bank. The Bank is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is remeasured and adjusted against the right-of-use asset. Lease payments are allocated between principal and finance cost. The finance cost is recognized under Interest expense and other charges in the consolidated income statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The Bank is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is remeasured and adjusted against the right-of-use asset. Lease payments are allocated between principal and finance cost. Payments associated with short-term leases of low-value assets are recognized on a straight-line basis as an expense under Administrative expenses in the consolidated income statement. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise, for example, personal computers, printers, small items of office furniture, telephones and other similar assets. As of December 31, 2019, the Bank does not have any lease agreements with purchase options. |
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 made by 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 subsidiaries 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 subsidiaries’ 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 twelve 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 a consideration and represents, therefore, a payment made by the acquirer in anticipation of future economic benefits from assets of the acquired subsidiary 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 and other intangible assets 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. 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 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 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) – Goodwill and 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). Internally developed computer software Internally developed computer software is recognized as an intangible asset if, among other requisites (basically the Bank’s ability to use or sell it), it can be identified and its ability to generate future economic benefits can be demonstrated. Expenditure on research activities is recognized as an expense in the year in which it is incurred and cannot be subsequently capitalized. |
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. The Bank does not recognize the contingent liability. The Bank will disclose a contingent liability, unless the possibility of an outflow of resources embodying economic benefits is remote. 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 to the consolidated financial statements, 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 to the consolidated financial statements. 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) Court proceedings and/or claims in process At the end of 2018 and 2019, certain court proceedings 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 will 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 43.b, 42.b, 42.c and 42.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 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 They are recognized for accounting purposes when the good is delivered or the non-financial service is rendered. To determine the amount and timing of recognition, a five-step model is followed: identification of the contract with the customer, identification of the separate obligations of the contract, determination of the transaction price, distribution of the transaction price among the identified obligations and finally recording of income as the obligations are satisfied. 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. When the Bank purchases a financial guarantee contract in respect of a financial asset and pays the cost of the guarantee at inception of the guarantee, considers the following: - If the financial guarantee is an integral part of the guaranteed financial asset, it is treated as an adjustment to the effective interest rate of the guaranteed financial asset as a transaction cost, unless the financial asset is measured at FVTPL, and include the expected cash flows from the financial guarantee when measuring the ECL of the guaranteed financial asset. - If the financial guarantee is not an integral part of the guaranteed financial asset, the cost is recognized as a separate pre-payment asset, and it is amortized over the shorter of the life of the guarantee and the expected life of the guaranteed financial asset. The pre-payment asset is tested for impairment under IAS 36. The expected cash flows from the financial guarantee are not included in the measurement of the ECL of the guaranteed financial asset and a separate reimbursement asset is recognized in the consolidated balance sheet in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets. When the Bank provides financial guarantees, these are initially recognized 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: • • Financial guarantees provided by the Bank, 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 assets carried at amortized cost (described in Note 2.g above). The provisions made for these transactions are recognized under Provisions – Other provisions in the consolidated balance sheet. 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. |
Loan commitments | s) Loan commitments Loan commitments granted by the Bank are subject to the impairment requirements of IFRS 9 and are accounted for as off-balance sheet risk in memorandum accounts. 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. |
Post-employment benefits, Other long-term employee benefits and Termination benefits | t) 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 each year related to defined contribution plans 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 entity 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 (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 the net defined benefit obligation is recognized in 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. u) Other long-term employee benefits Other long-term employee benefits, defined as obligations to pre-retirees -taken to be those who have ceased to render services at the Bank but who, without being legally retired, continue to have economic rights vis-à-vis the Bank until they acquire the legal status of retiree-, are treated for accounting purposes, where applicable, as established above for defined benefit post-employment plans, except that actuarial gains and losses are recognized under Provisions (net), in the consolidated income statement. v) Termination benefits Termination benefits are recognized when there is a detailed formal plan identifying the basic changes to be made, provided that implementation of the plan has begun, its main features have been publicly announced or objective facts concerning its implementation have been disclosed. |
Income tax | w) Income tax Income tax expense represents the sum of the income tax currently payable and deferred income tax. The current income tax expense is calculated as the sum of the current tax resulting from application of the appropriate tax rate to the taxable profit for the year (net of any deductions allowable for tax purposes), and of the changes in deferred tax assets and liabilities recognized in the consolidated income statement. Deferred income 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 assets and liabilities include temporary differences, which are identified as the amounts expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities and their related tax bases, and tax loss and tax credit carryforwards. These amounts are measured at the tax rates that are expected to apply in the period when the asset is realized or the liability is settled. Tax assets includes the amount of all tax assets, which are broken down into current -amounts of tax to be recovered within the next twelve months- and deferred -amounts of tax to be recovered in future years, including those arising from tax loss or tax credit carryforwards. Tax liabilities includes the amount of all tax liabilities (except provisions for taxes), which are broken down into current –the amount payable in respect of the income tax on the taxable profit for the year and other taxes in the next twelve months- and deferred -the amount of income tax payable in future years. Deferred tax liabilities are recognized in respect of taxable temporary differences associated with investments in subsidiaries, associates or joint ventures, except when the Bank is able to control the timing of the reversal of the temporary difference and, in addition, it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets are only recognized for temporary differences to the extent that it is considered probable that the Bank will have sufficient future taxable profits against which the deferred tax assets can be utilized, and the deferred tax assets do not arise from the initial recognition (except in a business combination) of other assets and liabilities in a transaction that affects neither taxable profit nor accounting profit. Other deferred tax assets (tax loss and tax credit carryforwards) are only recognized if it is considered probable that the Bank will have sufficient future taxable profits against which they can be utilized. Income and expenses recognized directly in consolidated equity are accounted for as temporary differences. The deferred tax assets and liabilities are reassessed at the reporting date in order to ascertain whether any adjustments need to be made on the basis of the findings of the analyses performed. Current and deferred income tax for the year Current and deferred income tax are recognized in the consolidated income statement, except when they relate to items that are recognized in other comprehensive income or directly in consolidated equity, in which case, the current and deferred income tax are also recognized in other comprehensive income or directly in consolidated equity, respectively. Where current income tax or deferred income 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 | x) Remaining maturity periods The analysis of the maturities of the balances of certain items in the consolidated balance sheet at 2018 and 2019 year-end is provided in Note 45. |
Segment reporting | y) 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 | z) 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 | aa) Treasury shares Own equity instruments that are reacquired (treasury shares) are recognized at cost and deducted from consolidated 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 income statement and other comprehensive income | ab) 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 in consolidated equity that will not be reclassified subsequently to the consolidated income statement. c. The net amount of the income and expenses recognized directly in consolidated equity 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. 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 requirements established by the corresponding accounting Standard are met. |
Consolidated statement of changes in total equity | ac) 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. c. 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. |
Consolidated statements of cash flows | ad) Consolidated statement of cash flows The following terms are used in the consolidated statement 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. The application of IFRS 16 has an impact on the consolidated statement of cash flows of the Bank. Under IFRS 16, lessees must present: Short-term lease payments, payments for leases of low-value assets and variable lease payments not included in the measurement of the lease liability as part of operating activities; Cash paid for the interest portion of a lease liability as either operating activities or financing activities, as permitted by IAS 7 (the Bank has opted to include interest paid as part of financing activities); and Cash payments for the principal portion for a lease liability, as part of financing activities. Under IAS 17, all lease payments on operating leases were presented as part of cash flows from operating activities. |
Reclassifications | ae) Reclassifications on consolidated balance sheets and consolidated statement of cash flows from prior years As of December 31, 2019, the Bank decided to present the sale of financial assets acquired under reverse repurchase agreements and pledged in repurchase agreement transactions as Other financial liabilities at fair value through profit or loss (Deposits from credit institutions – Repurchase agreements and Customer deposits – Repurchase agreements) in the consolidated balance sheet. In prior years, pledged financial assets acquired under reverse repurchase agreements were presented as Financial liabilities at fair value through profit or loss – Short positions. This reclassification is considered by the Bank to provide a preferable presentation with the purpose of grouping in a single item of the consolidated balance sheet, all the financial liabilities related to reverse repurchase agreements. As of December 31, 2018 Originally reported amounts Reclassifications New reported amounts BALANCE SHEETS: FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: 101,754 (72,835) 28,919 Short positions 101,754 (72,835) 28,919 OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: 69,685 72,835 142,520 Deposits from credit institutions – Repurchase agreements 4,316 9,485 13,801 Customer deposits – Repurchase agreements 65,369 63,350 128,719 CONSOLIDATED STATEMENT OF CASH FLOWS: A. CASH FLOWS FROM OPERATING ACTIVITIES: Financial liabilities at fair value through profit or loss 15,756 72,835 88,591 Other financial liabilities at fair value through profit or loss (15,223) (72,835) (88,058) As of December 31, 2017 Originally reported amounts Reclassifications New reported amounts CONSOLIDATED STATEMENT OF CASH FLOWS: A. CASH FLOWS FROM OPERATING ACTIVITIES: Financial liabilities at fair value through profit or loss (27,103) 46,233 19,130 Other financial liabilities at fair value through profit or loss (16,207) (46,233) (62,440) |
Accounting policies (Tables)
Accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial assets | |
Summary of fair values of financial assets and liabilities classified on the basis of various measurement methods | 12/31/2018 12/31/2019 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 at fair value through profit or loss 109,858 157,666 267,524 111,259 156,868 268,127 Other financial assets at fair value through profit or loss — 107,425 107,425 — 79,927 79,927 Financial assets at fair value through other comprehensive income 125,383 30,406 155,789 201,580 35,400 236,980 Hedging derivatives — 9,285 9,285 — 9,256 9,256 235,241 304,782 540,023 312,839 281,451 594,290 LIABILITIES: Financial liabilities at fair value through profit or loss 689 254,792 255,481 324 153,276 153,600 Other financial liabilities at fair value through profit or loss — 105,430 105,430 — 273,725 273,725 Hedging derivatives — 8,393 8,393 — 7,523 7,523 689 368,615 369,304 324 434,524 434,848 |
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 which measurement was based on internal models (Level 2 and Level 3) as of December 31, 2018 and 2019. Fair Fair Values Values Calculated Calculated Using Internal Using Internal Valuation Techniques Key Inputs Models as of Models as of 12/31/2018 12/31/2019 Level 2 Level 3 Total Level 2 Level 3 Total ASSETS: Financial assets at fair value through profit or loss: 156,872 794 157,666 155,930 938 156,868 Debt and equity instruments 3,588 — 3,588 5,593 — 5,593 Price Vendor Financial instruments with low trading volume or minimum marketability. Trading derivatives: Interest rate options 1,450 — 1,450 421 — 421 Black model (closed-formula solution) Interest rate yield curve and implied volatility surface Market index options: 49 — 49 212 60 272 European options — — — 2 — 2 Black model (closed-formula solution) Interest rate yield curves, quoted equity prices and index levels, implied volatility surface and dividends estimation Best of options (Basket) 2 — 2 — — — Local volatility model with Monte Carlo method Interest rate yield curves, equity prices and index levels, implied volatility surface, historical correlations and dividends estimation Quanto options 36 — 36 147 60 207 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 (Quanto) 11 — 11 63 — 63 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: 1,192 44 1,236 993 — 993 European barrier — — — 1 — 1 Black model (closed-formula solution) Interest rate yield curves, quoted exchange rates and implied volatility surface European options 1,192 44 1,236 992 — 992 Black model (closed-formula solution) Interest rate yield curves, quoted exchange rates and implied volatility surface Swaps 142,977 222 143,199 139,901 878 140,779 Forward estimation (non-closed formula) Interest rate yield curve and quoted exchange rates Index and securities futures 936 — 936 10 — 10 Forward estimation (non-closed formula) Interest rate yield curve and quoted exchange rates Exchange rate futures 6,680 528 7,208 8,800 — 8,800 Forward estimation (non-closed formula) Interest rate yield curve and quoted exchange rates Other financial assets at fair value through profit or loss: 107,425 — 107,425 79,927 — 79,927 Loans and advances to credit institutions – Reverse repurchase agreements 98,332 — 98,332 54,138 — 54,138 Forward estimation (non-closed formula) Interest rate yield curve Loans and advances to customers – Reverse repurchase agreements 9,093 — 9,093 25,789 — 25,789 Forward estimation (non-closed formula) Interest rate yield curve Financial assets at fair value through other comprehensive income: 29,635 771 30,406 32,525 2,875 35,400 Debt instruments 29,575 — 29,575 32,469 — 32,469 Price Vendor Financial instruments with low trading volume or minimum marketability. Equity instruments 60 — 60 56 — 56 Other Value of shareholders’ equity Loans and advances to customers — 771 771 — 2,875 2,875 Estimation of credit default probabilities from credit spreads Interest rate yield curves and market credit spreads Hedging derivatives: 9,285 — 9,285 9,256 — 9,256 Swaps 4,174 — 4,174 4,768 — 4,768 Forward estimation (non-closed formula) Interest rate yield curve and quoted exchange rates Exchange rate forwards 5,111 — 5,111 4,488 — 4,488 Forward estimation (non-closed formula) Interest rate yield curve and quoted exchange rates 303,217 1,565 304,782 277,638 3,813 281,451 Fair Fair Values Values Calculated Calculated Using Internal Using Internal Models as of Models as of Valuation 12/31/2018 12/31/2019 Techniques Key Inputs Level 2 Level 3 Total Level 2 Level 3 Total LIABILITIES: Financial liabilities held for trading/Financial liabilities at fair value through profit or loss: 254,637 155 254,792 152,485 791 153,276 Trading derivatives: Interest rate options 973 — 973 467 8 475 Black model (closed-formula solution) Interest rate yield curve and implied volatility surface Market index options: 179 — 179 81 60 141 European 1 — 1 1 — 1 Black and Scholes model (closed-formula solution) Interest rate yield curves, quoted equity prices, index levels, implied volatility surface and dividends estimation Auto-callable 167 — 167 — — — 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) 1 — 1 — — — 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 Quanto options 10 — 10 80 60 140 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: 1,348 153 1,501 1,548 — 1,548 European barrier — — — 4 — 4 Black model (closed-formula solution) Interest rate yield curves, quoted exchange rates and implied volatility surface European options 1,341 153 1,494 1,344 — 1,344 Black model (closed-formula solution) Interest rate yield curves, quoted exchange rates and implied volatility surface American barrier and touch options 7 — 7 200 — 200 Mixed volatility model with partial differential equation method Interest rate yield curves, quoted exchange rates and implied volatility surface Swaps 143,448 — 143,448 134,627 723 135,350 Forward estimation (non- closed formula solution) Interest rate yield curves and quoted exchange rates Index and securities futures 839 — 839 18 — 18 Forward estimation (non- closed formula solution) Interest rate yield curves, quoted equity prices and index levels exchange rates Exchange rate futures 6,096 2 6,098 6,625 — 6,625 Forward estimation (non- closed formula solution) Interest rate yield curve and quoted exchange rates . Short positions: Debt instruments 101,754 — 101,754 9,119 — 9,119 Forward estimation (non- closed formula solution) Interest rate yield curve Other financial liabilities at fair value through profit or loss: 105,430 — 105,430 273,725 — 273,725 Deposits from the Central Bank – Repurchase agreements 30,995 — 30,995 111,574 — 111,574 Forward estimation (non- closed formula solution) Interest rate yield curve Deposits from credit institutions – Repurchase agreements 4,316 — 4,316 29,689 — 29,689 Forward estimation (non- closed formula solution) Interest rate yield curve Customer deposits – Repurchase agreements 65,369 — 65,369 129,216 — 129,216 Forward estimation (non- closed formula solution) Interest rate yield curve Marketable debt securities 4,750 — 4,750 3,246 — 3,246 Present value (non-closed formula solution) and Black and Scholes model with closed-formula solution Interest rate yield curve, quoted Hedging derivatives: 8,393 — 8,393 7,523 — 7,523 Swaps 8,047 — 8,047 7,114 — 7,114 Forward estimation (non- closed formula solution) Interest rate yield curve and quoted exchange rates Exchange rate forwards 346 — 346 409 — 409 Forward estimation (non- closed formula solution) Interest rate yield curve and quoted exchange rates 368,460 155 368,615 433,733 791 434,524 |
Schedule of changes in financial assets classified as Level 3 | Assets Debt and Equity Trading Loans and advances Instruments derivatives to customers Total Balance at January 1, 2017 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 Total gains/losses recognized in the consolidated income statement: Gains/(losses) on financial assets and liabilities (net) — 543 — 543 Purchases — — — — Sales — — — — New issuances — — 771 771 Settlements — — — — Balance at December 31, 2018 — 794 771 1,565 Total gains/losses recognized in the consolidated income statement: Gains/(losses) on financial assets and liabilities (net) — 13 — 13 Purchases — 902 — 902 Transfer out — (771) — (771) New issuances — — 2,875 Settlements — — (771) (771) Balance at December 31, 2019 — 938 2,875 3,813 |
Schedule of changes in financial liabilities classified as Level 3 | Liabilities Debt and Equity Trading Instruments derivatives Total Balance at December 31, 2017 — (358) (358) Total gains/losses recognized in the consolidated income statement: Gains/(losses) on financial assets and liabilities (net) — 203 203 Purchases — — — Transfer out — — — New issuances — — Settlements — — — Balance at December 31, 2018 — (155) (155) Total gains/losses recognized in the consolidated income statement: Gains/(losses) on financial assets and liabilities (net) — — — Purchases — (791) (791) Transfer out — 155 155 New issuances — — Settlements — — — Balance at December 31, 2019 — (791) (791) |
Schedule of significant unobservable inputs used in measuring financial instruments categorized as Level 3 | The table below shows the effect as of December 31, 2019 on the fair value of the financial instruments classified as Level 3 of a reasonable change in the assumptions used in the valuation. This effect was determined by applying the probable valuation ranges of the main unobservable inputs detailed in the following table: Significant Range of Estimates Fair value Measurement Valuation Unobservable (weighted-average) Sensitivity to Financial Instrument Fair value Technique Input for Unobservable Input Unobservable Inputs Caps and floors (91-day TIIE) (7) Black model (closed-formula) Interest rate curve referenced to 91-day TIIE 91-day TIIE curve = 28-day TIIE curve + (-25 basis points, -2 basis points) A significant decrease in 91-day TIIE curve would result in a higher fair value Cross currency swaps Forward estimation (non-closed formula) Long term Peso Fx rates Interest rate curve referenced to 91-day TIIE Bid-offer spread IRS TIIE (2 basis points - 10 basis points) CCS USD/Peso (3 basis points -10 basis points) IRS UDI/Peso (5 basis points - 20 basis points) A significant decrease in Peso Fx rates would result in a lower fair value Quanto options — Local volatility model with partial differential equation method Market index volatility Beta vs Euro STOXX 50 Volatility surface There is no impact in fair value for increasing or decreasing the applied beta Swaps Lock In Forward estimation (non-closed formula) Prepayment rate Prepayment rate 6% - 12% There is no impact in fair value since the market and prepayment risks are fully hedge Interest rate swaps (5) Forward estimation (non-closed formula) Long term Peso rates Interest rate curve referenced to 91-day TIIE 91-day TIIE curve = 28-day TIIE curve + (-25 basis points, -2 basis points) Bid-offer spread IRS TIIE (2 basis points - 10 basis points) CCS USD/Peso (3 basis points -10 basis points) IRS UDI/Peso (5 basis points - 20 basis points) A significant decrease in 91-day TIIE curve would result in a higher fair value The same scenario applied on Peso Fx rates would result in a lower fair value Loans and advances to customers 2,875 Estimation of credit default probabilities from credit spreads Market credit spread quotes (CDS) Credit spread quote (24 basis points - 55 basis points) A significant rating downgrade 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, 2019 Most Least Favorable Favorable Input Input ASSETS: Cross currency swaps (0.4) Loans and advances to customers — (27) LIABILITIES: Caps and floors on 91 days TIIE Interest rate swaps (0.6) |
Schedule of sensitivity analysis | The VaR amounts as of December 31, 2019, including all financial instruments in the trading book position of the Bank are as follows: Average High Low 12/31/2019 All financial instruments 66 114 26 74 By category: Instruments sensitive to interest rate 43 64 23 49 Instruments sensitive to equity market prices 3 12 1 2 Instruments sensitive to foreign currency exchange rates 41 89 8 49 Instruments sensitive to volatility movements 6 11 4 5 |
Schedule of financial assets and liabilities subject to offsetting | The following financial assets are subject to offsetting, enforceable master netting arrangements and similar agreements: As of December 31, 2018: 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 Financial derivative assets 164,238 — 164,238 (92,928) (4,044) (42,391) 24,875 Reverse repurchase agreements 107,425 — 107,425 — (107,560) — (135) Equity instruments (*) (see Note 9.a) 250 — 250 — (250) — — Total 271,913 — 271,913 (92,928) (111,854) (42,391) 24,740 As of December 31, 2019: 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 Financial derivative assets 161,003 — 161,003 (128,590) (5,736) (16,759) 9,918 Reverse repurchase agreements 79,927 — 79,927 (2,944) (76,592) — 391 Equity instruments (*) (see Note 9.a) 13 — 13 — (14) — (1) Total 240,943 — 240,943 (131,534) (82,342) (16,759) 10,308 (*) As of December 31, 2018 and 2019, the financial instruments received as collateral in lending transactions amount to 333 million pesos and 14 million pesos, respectively, which are limited to the net equities lent under the aforementioned lending transactions. The following financial liabilities are subject to offsetting, enforceable master netting arrangements and similar agreements: As of December 31, 2018: 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 Financial derivative liabilities 162,120 — 162,120 (92,928) (6,234) (29,409) 33,549 Repurchase agreements 173,515 — 173,515 — (101,197) 72,318 Short positions - Securities loans (see Note 10.b) 28,239 — 28,239 — (29,086) (847) Short positions – Short sales (see Note 10.b) 72,835 — 72,835 — (72,809) 26 Total 436,709 — 436,709 (92,928) (209,326) (29,409) 105,046 As of December 31, 2019: 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 Financial derivative liabilities 152,004 — 152,004 (128,590) (4,472) (14,300) 4,642 Repurchase agreements 270,479 — 270,479 (2,944) (191,422) — 76,113 Short positions - Securities loans (see Note 10.b) 8,280 — 8,280 — (8,809) — (529) Short positions - Short sales (see Note 10.b) 77,657 — 77,657 — (77,824) — (167) Total 508,420 — 508,420 (131,534) (282,527) (14,300) 80,059 |
Schedule of macroeconomic variable assumptions used for the ECL estimate | December 31, 2019: Factor Scenario December 2019 December 2020 December 2021 December 2022 Base GDP Upside Downside (7.10)% Base CPI (% year over year) Upside Downside Base Unemployment rates (% active population) Upside Downside Base Peso/USD (end of period) Upside 20.46 19.77 20.09 20.46 Downside 20.46 27.03 26.66 25.05 Base Loans Mortgage (% year over year) Upside Downside (4.50)% (0.20)% Base Loans - Consumer Upside Downside (7.50)% Base Deposits Total (% year over year) Upside Downside Base Stock Markets (level) Upside Downside |
Schedule of weightings assigned to each macroeconomic scenario | December 31, 2019 Scenario Weighting Base Upside Downside December 31, 2018 Scenario Weighting Base Upside Downside |
Sensitivity analysis, changes to the ECL | Most Favorable Least Favorable Scenario Scenario Retail loan portfolios (14.0)% Non-retail loan portfolios (6.5)% |
Schedule of initial measurement of lease liabilities | IAS 17 operating lease commitments based on gross cash flows disclosed as of December 31, 2018 10,015 Discounted using the Bank’s incremental borrowing rate of 11% 6,090 Add/(less): adjustments due to different treatment of extension and termination options 801 (Less): contracts to which the short-term leases exemption has been applied 77 (Less): services/non-lease components of lease contracts 80 IFRS 16 lease liability as of January 1, 2019 6,734 |
Schedule of adjustments recognized for each individual line item of the consolidated balance sheet | December 31, 2017 as originally presented Adjustments on initial adoption of IFRS 9 January 1, 2018 restated Measurement category under IFRS 9 Financial assets Available-for-sale financial assets 165,742 (165,742) — Financial assets at fair value through other comprehensive income (FVTOCI) — 92,611 92,611 FVTOCI Loans and receivables 679,300 (679,300) — Financial assets at amortized cost — 751,448 751,448 Amortized cost Tax assets Deferred 16,600 286 16,886 Provisions Provisions for off-balance sheet risk 1,032 (32) 1,000 Shareholders' equity Accumulated reserves 72,838 (2,279) 70,559 Valuation adjustments Available-for-sale financial assets (1,533) 1,533 — Financial assets at fair value through other comprehensive income (FVTOCI) 81 81 |
Schedule of impact on Accumulated reserves | Accumulated reserves Balance as of December 31, 2017 Increase in allowance for impairment losses and provisions for off-balance sheet risk (3,238) Increase in allowance for impairment losses for debt instruments at FVTOCI (18) Increase in deferred tax assets relating to allowance for impairment losses and provisions for off-balance sheet risk 977 Adjustments to Accumulated reserves from adoption of IFRS 9 as of January 1, 2018 (2,279) Balance as of January 1, 2018 70,559 |
Classification and measurement of financial instruments into IFRS 9 categories | Available-for-sale financial assets Loans and receivables FVTOCI Amortized cost Balance as of December 31, 2017 165,742 679,300 — — Reclassification of debt instruments from Available-for-sale to Amortized cost (a) (73,131) — — 73,131 Remeasurement of debt instruments reclassified to Amortized cost (a) — — — 2,287 Reclassification of equity instruments from Available-for-sale to FVTOCI (b) (795) — 795 — Reclassification of debt instruments from Available-for-sale to FVTOCI (c) (91,816) — 91,816 — Reclassification of debt instruments from Loans and receivables to Amortized cost (d) — (10,758) — 10,758 Reclassification of Loans and advances to customers and credit institutions from Loans and receivables to Amortized cost (e) — (668,542) — 668,542 Allowance for impairment losses (e) — — — (3,270) Balance as of January 1, 2018 — — 92,611 751,448 |
Schedule of the impact of IFRS 9 changes on Total equity | Valuation adjustments: Available-for-sale financial assets Valuation adjustments: Financial assets at FVTOCI Accumulated reserves Balance as of December 31, 2017 (1,533) — 72,838 Reclassifications of debt instruments from Available-for-sale to Amortized cost (*) (a) 1,601 — — Reclassifications of equity instruments from Available-for-sale to FVTOCI (*) (b) 28 (28) — Reclassifications of debt instruments from Available-for-sale to FVTOCI (*) (c) (109) 109 — Allowance for impairment losses for debt instruments at FVTOCI (c) 18 — (18) Allowance for impairment losses (e) — — (3,270) Provisions for off-balance sheet risk — — 32 Income tax (5) — 977 Balance as of January 1, 2018 — 81 70,559 (*) These amounts are presented net of income tax. a) Certain debt instruments were reclassified from Available-for-sale financial assets to Financial assets at amortized cost. Such debt instruments amount to 75,418 million pesos (amortized cost) as of January 1, 2018. The impact of the reclassification is an increase in Shareholders’ equity that amounts to 2,287 million pesos (1,601 million pesos, net of income tax) related to the valuation adjustment of those debt instruments recognized as of December 31, 2017. The valuation adjustment that would have been recognized in other comprehensive income as of December 31, 2018 if the aforementioned debt instruments had not been reclassified to Financial assets at amortized cost is a decrease of 1,326 million pesos (928 million pesos, net of income tax). b) The Bank has irrevocably elected to present in other comprehensive income changes in the fair value of all its equity instruments previously classified as Available-for-sale financial assets, because these equity instruments are held as long-term strategic investments that are not expected to be sold in the short to medium term. Accordingly, equity instruments with a fair value of 795 million pesos were reclassified from Available-for-sale financial assets to Financial assets at FVTOCI on January 1, 2018. c) Debt instruments with a fair value of 91,816 million pesos were reclassified from Available-for-sale financial assets to Financial assets at FVTOCI on January 1, 2018. As of January 1, 2018, it was recognized in other comprehensive income an allowance for impairment losses for debt instruments at FVTOCI of 18 million pesos (13 million pesos, net of income tax) with a corresponding charge to Accumulated reserves. d) Debt instruments with a carrying value of 10,758 million pesos were reclassified from Loans and receivables to Financial assets at amortized cost on January 1, 2018. e) Loans and advances to customers and credit institutions for an amount of 668,542 million pesos (carrying value) were reclassified from Loans and receivables to Financial assets at amortized cost on January 1, 2018. As of January 1, 2018, it was recognized an increase of 3,270 million pesos in the allowance for impairment losses for Loans and advances to customers at amortized cost with a corresponding charge to Accumulated reserves. |
Schedule of reconciliation of the allowance for impairment losses and of the provisions for off balance sheet risk | December 31, 2017 Remeasurements January 1, 2018 Loans and advances to customers 16,929 3,270 20,199 Loans and advances to credit institutions — — — Debt instruments — 18 18 Contingent commitments: Available lines of credit cards and non-revolving consumer loans 838 4 842 Guarantees and loan commitments of commercial and public sector loans 194 (36) 158 Total 17,961 3,256 21,217 |
Schedule of Coverage ratio | As of January 1, 2018 Loans and advances to customers Stage 1 Stage 2 Stage 3 Total Carrying amount 583,871 24,346 18,132 626,349 Allowance for impairment losses 7,456 4,780 7,963 20,199 Coverage ratio |
Schedule of tangible asset depreciation rates | Average Annual Rate Buildings for own use 2% to 5% Furniture and vehicles 10% to 20% Information Technology (IT) equipment and fixtures 25% Others 5% to 20% |
Schedule of reclassifications on consolidated balance sheets and consolidated statement of cash flows from prior years | As of December 31, 2018 Originally reported amounts Reclassifications New reported amounts BALANCE SHEETS: FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: 101,754 (72,835) 28,919 Short positions 101,754 (72,835) 28,919 OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: 69,685 72,835 142,520 Deposits from credit institutions – Repurchase agreements 4,316 9,485 13,801 Customer deposits – Repurchase agreements 65,369 63,350 128,719 CONSOLIDATED STATEMENT OF CASH FLOWS: A. CASH FLOWS FROM OPERATING ACTIVITIES: Financial liabilities at fair value through profit or loss 15,756 72,835 88,591 Other financial liabilities at fair value through profit or loss (15,223) (72,835) (88,058) As of December 31, 2017 Originally reported amounts Reclassifications New reported amounts CONSOLIDATED STATEMENT OF CASH FLOWS: A. CASH FLOWS FROM OPERATING ACTIVITIES: Financial liabilities at fair value through profit or loss (27,103) 46,233 19,130 Other financial liabilities at fair value through profit or loss (16,207) (46,233) (62,440) |
Commercial loans to large enterprises | |
Financial assets | |
Schedule of Increase In Lifetime PD | “Lifetime PD” band at Increase in “Lifetime PD” at reporting date which initial recognition (%) is considered significant (basis points) ≤0.78 5.00 0.78 - 1.37 17.00 1.37 - 4.78 29.00 4.78 - 7.81 41.00 >7.81 53.00 |
Commercial loans to real estate | |
Financial assets | |
Schedule of Increase In Lifetime PD | “Lifetime PD” band at Increase in “Lifetime PD” at reporting date which initial recognition (%) is considered significant (basis points) ≤0.68 23.00 0.68 - 0.91 27.00 0.91 - 1.07 30.00 1.07 - 1.4 34.00 1.4 - 7.94 37.00 >7.94 41.00 |
Commercial loans (SMEs) | |
Financial assets | |
Schedule of Increase In Lifetime PD | “Lifetime PD” band at Increase in “Lifetime PD” at reporting date which initial recognition (%) is considered significant (basis points) ≤1.66 12.00 1.66 - 3.00 13.00 3.00 - 6.00 14.00 6.00 - 8.00 17.00 8.00 - 10.00 18.00 10.00 - 13.00 19.00 13.00 - 15.00 20.00 15.00 - 18.00 20.70 18.00 - 22.00 21.30 >22.00 22.00 |
Securitized mortgage assets | |
Financial assets | |
Schedule of Increase In Lifetime PD | “Lifetime PD” band at Increase in “Lifetime PD” at reporting date which initial recognition (%) is considered significant (basis points) ≤4.08 16.00 4.08 - 5.66 28.00 5.66 - 11.32 40.00 11.32 - 12.70 41.00 12.70 - 15.32 42.00 15.32 - 16.99 43.00 16.99 - 21.64 44.00 >21.64 45.00 |
Installment loans to individuals - Revolving consumer credit cards loans | |
Financial assets | |
Schedule of Increase In Lifetime PD | “Lifetime PD” band at Increase in “Lifetime PD” at reporting date which initial recognition (%) is considered significant (basis points) ≤0.5 16.00 0.5 - 1.0 19.00 1.0 - 1.5 22.00 1.5 - 2.0 25.00 2.0 - 4.0 29.00 4.0 - 6.0 32.00 6.0 - 8.0 35.00 8.0 - 10.0 38.00 >10.0 41.00 |
Non-revolving consumer loans (payroll loans) | |
Financial assets | |
Schedule of Increase In Lifetime PD | “Lifetime PD” band at Increase in “Lifetime PD” at reporting date which initial recognition (%) is considered significant (basis points) ≤10.06 11.00 10.06 - 13.04 16.00 13.04 - 15.11 20.00 15.11 - 16.77 22.30 16.77 - 19.56 24.50 19.56 - 21.80 26.80 21.80 - 22.92 29.00 22.92 - 28.19 31.00 28.19 - 34.70 33.00 >34.70 35.00 |
Non-revolving consumer loans (personal loans) | |
Financial assets | |
Schedule of Increase In Lifetime PD | “Lifetime PD” band at Increase in “Lifetime PD” at reporting date which initial recognition (%) is considered significant (basis points) ≤9.32 11.00 9.32 - 13.97 19.00 13.97 - 16.65 24.00 16.65 - 19.00 31.00 19.00 - 23.68 36.00 23.68 - 25.67 36.50 25.67 - 26.74 37.00 26.74 - 31.84 37.50 >31.84 38.00 |
Significant events (Tables)
Significant events (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Significant events | |
Schedule of Carrying amount of the assets acquired and liabilities assumed | Carrying amount Assets: Cash 715 Tangible assets 457 Other assets 318 1,490 Liabilities: Other liabilities (638) Net assets acquired 852 Acquisition cost (1,077) Effect on acquisition (225) |
Distribution of the Bank's pr_2
Distribution of the Bank's profit and Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Distribution of the Bank?s profit and Earnings per share | |
Schedule of distribution of the Bank?s profit | 2017 2018 2019 Profit of the year 18,678 19,356 20,381 Dividends declared 8,910 9,228 10,293 Dividend per share (pesos) 1.31 1.36 1.52 Date of payment 05/30/2017 and 06/29/2018 and 05/28/2019 and 12/27/2017 12/28/2018 12/27/2019 |
Earnings per share basic and diluted | Accordingly, basic earnings per share after the Merger were determined as follows: 2017 2018 2019 Profit attributable to the Parent 18,678 19,353 20,381 Profit attributable to the Parent (net of non-controlling interest) 18,678 19,353 20,381 Weighted average number of shares outstanding 6,777,381,551 6,776,220,369 6,775,455,458 Basic earnings per share (pesos) 2.76 2.86 3.01 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, excluding the average number 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: 2017 2018 2019 Profit attributable to the Parent 18,678 19,353 20,381 Profit attributable to the Parent (net of non-controlling interest) 18,678 19,353 20,381 Weighted average number of shares outstanding 6,777,381,551 6,776,220,369 6,775,455,458 Dilutive effect of rights on shares 9,612,806 10,773,988 11,538,899 Adjusted number of shares 6,786,994,357 6,786,994,357 6,786,994,357 Diluted earnings per share (pesos) 2.75 2.85 3.00 |
Cash and balances with the Ce_2
Cash and balances with the Central Bank (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash and balances with the Central Bank | |
Schedule of breakdown by type of balances of cash and balances with the Central Bank | 12/31/2018 12/31/2019 Cash 25,080 25,793 Central Bank compulsory deposits 28,094 28,094 Deposits in the Central Bank 2,110 11,292 Accrued interest 26 28 55,310 65,207 |
Loans and advances to credit _2
Loans and advances to credit institutions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loans and advances - Credit institutions | |
Financial assets | |
Schedule of financial assets | 12/31/2018 12/31/2019 Classification: Other financial assets at fair value through profit or loss 98,332 54,138 Financial assets at amortized cost 47,034 36,895 91,033 Type: Reciprocal accounts 15,310 14,597 Time deposits 51 29 Guarantee deposits - Collateral delivered for OTC financial derivatives transactions (Note 32) 29,508 14,300 Reverse repurchase agreements 98,332 54,138 Other accounts 2,165 7,969 91,033 Currency: Peso 73,268 USD 43,986 17,429 Other currencies 971 336 91,033 |
Debt Instruments (Tables)
Debt Instruments (Tables) - Debt instruments. | 12 Months Ended |
Dec. 31, 2019 | |
Financial assets | |
Schedule of financial assets | 12/31/2018 12/31/2019 Classification: Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets at amortized cost 52,419 11,257 Type: Mexican government debt securities Of which: Collateral delivered for OTC financial derivatives transactions (Note 32) 4,769 4,472 Foreign government debt securities 54,297 69,113 Of which: Brazilian Government Notes 31,210 30,225 US Government Treasury Bills (T-BILLS) 23,087 34,506 US Government Treasury Notes (T-NOTES) — 4,382 Debt securities issued by financial institutions 5,998 2,270 Other debt securities 3,282 10,463 Currency: Peso USD 27,749 47,897 Brazilian Real (BRL) 31,210 30,225 Other currencies 30,913 34,079 |
Schedule of classification by rating of financial assets | The breakdown by issuer rating of Debt instruments at December 31, 2018 is as follows: Private Debt Sovereign Debt Total % AAA — 23,087 23,087 7.28 % A 3,189 184,195 187,384 59.09 % BBB 847 34,728 35,575 11.22 % BB 5,013 34,624 39,637 12.50 % Below B — 31,210 31,210 9.84 % Below BBB 231 — 231 0.07 % 9,280 307,844 317,124 100 % The breakdown by issuer rating of Debt instruments at December 31, 2019 is as follows: Private Debt Sovereign Debt Total % AAA — 38,888 38,888 10.94 % A 12,480 226,928 239,408 67.38 % BBB — 43,088 43,088 12.13 % BB — 3,471 3,471 0.98 % Below B — 30,225 30,225 8.51 % Below BBB 253 — 253 0.07 % 12,733 342,600 355,333 100 % |
Schedule of allowance for loan losses of Financial assets at fair value through other comprehensive income | The following is a breakdown of the allowance for loan losses of Financial assets at fair value through other comprehensive income and at amortized cost as of December 31, 2019: Allowance for impairment losses Stage 1 Stage 2 Stage 3 Total Written-off financial assets Financial assets at fair value through other comprehensive income 23 — — 23 — Of which: Mexican government debt instruments 22 — — 22 — Other fixed-income interest debt instruments 1 — — 1 — Financial assets at amortized cost — — — — — 23 — — 23 — The following is a breakdown of the allowance for loan losses of Financial assets at fair value through other comprehensive income and at amortized cost as of December 31, 2018: Allowance for impairment losses Stage 1 Stage 2 Stage 3 Total Written-off financial assets Financial assets at fair value through other comprehensive income 20 — — 20 — Of which: Mexican government debt instruments 19 — — 19 — Other fixed-income interest debt instruments 1 — — 1 — Financial assets at amortized cost — — — — — 20 — — 20 — |
Financial assets at fair value through profit or loss category | |
Financial assets | |
Schedule of financial assets | 12/31/2018 12/31/2019 Federal Treasury Securities (CETES) 14,270 25,348 United Mexican States Bonds (UMS) 40 30 Federal Mexican Government Development Bonds (BONDES) 20,910 29,708 M and M10 Mexican Government Bonds 27,783 11,601 Mexican Bank Saving Protection Bonds (BPATS) 29,208 13,750 Federal Mexican Government Development Bonds in UDIS (1) (UDIBONDS) 10,524 4,619 T-BILLS 1,473 10,928 T-NOTES — 4,382 Other debt securities 6,014 10,247 110,222 110,613 |
Financial assets at fair value through other comprehensive income category | |
Financial assets | |
Schedule of financial assets | 12/31/2018 12/31/2019 CETES 17,146 — UMS 34,688 43,058 M, M3 and M5 Mexican Government Bonds 29,919 117,974 BPATS 11,509 11,499 UDIBONDS 5,131 4,643 T-BILLS 21,614 23,578 Brazilian Government Notes 31,210 30,225 Other debt securities 3,266 2,486 154,483 233,463 |
Schedule of gross carrying amount of the financial assets at fair value through other comprehensive income | Fair value Stage 1 Stage 2 Subtotal Stage 3 Total Financial assets at fair value through other comprehensive income Of which: Mexican government debt instruments 177,174 — 177,174 — 177,174 Foreign government debt instruments 53,803 — 53,803 — 53,803 Other fixed-income interest debt instruments 2,486 — 2,486 — 2,486 233,463 — 233,463 — 233,463 |
Schedule of changes in financial instruments | 2017 2018 2019 Beginning balance 154,318 Reclassification from Available-for-sale to Amortized cost — (73,131) — Beginning balance as restated 154,318 91,816 Net additions/(disposals) 8,703 63,824 75,061 Valuation adjustments 1,935 (1,226) 4,108 Amounts reclassified to consolidated income statement (9) 69 (189) Balance at year-end 164,947 154,483 233,463 |
Financial assets at amortized cost category | |
Financial assets | |
Schedule of financial assets | 12/31/2018 12/31/2019 Special CETES 3,208 3,471 BREMS R 7,785 7,786 M, M3 and M5 Mexican Government Bonds 41,426 — 52,419 11,257 Type: Unquoted 3,208 3,471 Quoted 49,211 7,786 |
Schedule of gross carrying amount of the financial assets at fair value through other comprehensive income | The following is a breakdown of the gross carrying amount of the Financial assets at amortized cost as of December 31, 2019: Gross carrying amount Stage 1 Stage 2 Subtotal Stage 3 Total Financial assets at amortized cost Of which: Mexican government debt instruments 11,257 — 11,257 — 11,257 |
Equity instruments (Tables)
Equity instruments (Tables) - Equity instruments. | 12 Months Ended |
Dec. 31, 2019 | |
Financial assets | |
Schedule of financial assets | 12/31/2018 12/31/2019 Classification: Financial assets at fair value through profit or loss 2,349 5,767 Financial assets at fair value through other comprehensive income 535 642 2,884 6,409 Type: Shares of Mexican companies 2,884 6,409 Shares of foreign companies — — 2,884 6,409 |
Financial assets at fair value through other comprehensive income category | |
Financial assets | |
Schedule of changes in financial instruments | 2017 2018 2019 Beginning balance as of January 1 326 795 535 Recognition of own equity instruments held for future equity-settled share-based payments (Note 3.4) — (247) — Transfer to non-current assets held for sale — — — Net additions/(disposals) 472 — — Valuation adjustments (3) (13) 107 Amounts reclassified to consolidated income statement — — — Balance at year-end 795 535 642 |
Trading derivatives (assets a_2
Trading derivatives (assets and liabilities) and Short positions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trading derivatives | |
Financial instruments | |
Schedule of financial instruments | 12/31/2018 12/31/2019 Debit Credit Debit Credit Balance Balance Balance Balance Interest rate risk 71,269 71,578 80,499 76,639 Currency risk 82,619 80,986 71,026 67,623 Market price risk 1,065 1,163 222 219 154,953 153,727 151,747 144,481 |
Short positions | |
Financial instruments | |
Schedule of financial instruments | 12/31/2018 12/31/2019 Securities loans: Debt instruments 27,279 8,280 Equity instruments 960 — 28,239 8,280 Short sales: Debt instruments 680 839 28,919 9,119 |
Loans and advances to custome_2
Loans and advances to customers (Tables) - Loans and advances - Customers | 12 Months Ended |
Dec. 31, 2019 | |
Financial assets | |
Schedule of financial assets | 12/31/2018 12/31/2019 Other financial assets at fair value through profit or loss 9,093 25,789 Financial assets at fair value through other comprehensive income 771 2,875 Financial assets at amortized cost Of which: Before allowance for impairment losses 750,305 Allowance for impairment losses (21,516) (21,970) |
Schedule of detail by classification of loans and advances to customers | 12/31/2018 12/31/2019 By loan type: Commercial, financial and industrial loans 365,438 373,943 Public sector loans 59,547 70,450 Mortgage loans 137,404 147,810 Reverse repurchase agreements 9,093 25,789 Installment loans to individuals - Revolving consumer credit card loans 54,511 57,760 Non-revolving consumer loans 53,730 56,601 Impaired loans 18,429 17,952 698,152 750,305 By borrower sector: Public sector 59,547 70,450 Individuals 257,132 274,053 Communications and transportation 33,373 35,773 Construction 45,333 47,872 Manufacturing 65,273 63,652 Services 185,382 122,970 Tourism 21,870 25,244 Other sectors 30,242 110,291 698,152 750,305 By geographical area: Mexico 698,152 750,305 698,152 750,305 By interest rate: Fixed rate 255,571 270,930 Floating rate 442,581 479,375 698,152 750,305 |
Schedule of gross carrying amount of the financial assets at fair value through other comprehensive income | The following is a breakdown of the gross carrying amount of Financial assets at fair value through other comprehensive income and Financial assets at amortized cost as of December 31, 2019: Fair value/Gross carrying amount Stage 1 Stage 2 Subtotal Stage 3 (*) Total Financial assets at fair value through other comprehensive income 2,880 — 2,880 — 2,880 Of which: Commercial, financial and industrial loans 2,880 — 2,880 — 2,880 Financial assets at amortized cost 676,508 27,176 703,684 17,952 721,636 Of which: Commercial, financial and industrial loans 371,063 5,815 376,878 Public sector loans 70,450 — 70,450 — 70,450 Mortgage loans 7,738 8,399 156,209 Installment loans to individuals - 7,040 3,738 118,099 Revolving consumer credit card loans 54,292 3,468 57,760 1,717 59,477 Non-revolving consumer loans 53,029 3,572 56,601 2,021 58,622 (*) As of December 31, 2019 there were no POCI financial assets. |
Schedule of Financial assets at amortized cost between stages | Gross carrying amount Stage 1 Stage 2 Stage 3 Total As of January 1, 2019 643,475 26,382 18,429 688,286 Transfers: Transfer from Stage 1 to Stage 2 (84,239) 84,239 — — Transfer from Stage 1 to Stage 3 (2,244) — 2,244 — Transfer from Stage 2 to Stage 3 — 28,017 — Transfer from Stage 2 to Stage 1 54,716 — — Transfer from Stage 3 to Stage 2 — 4,403 (4,403) — Transfer from Stage 3 to Stage 1 2,628 — (2,628) — Remaining in same stage (*) 2,090 1,576 Financial assets derecognized during the period other than write-offs (554,689) (7,215) (3,828) (565,732) Originated financial assets 853,967 — — 853,967 Write-offs — — (21,333) Other movements (148) 10 (122) (260) As of December 31, 2019 676,508 27,176 17,952 721,636 (*) Includes mainly payments of principal and accrued interest. |
Schedule of changes in the allowance for impairment losses | 2017 2018 2019 Beginning balance as of January 1 (as originally presented) (17,883) (16,929) (21,516) Adjustments on initial adoption of IFRS 9 — (3,270) — Beginning balance as of January 1 (restated) (17,883) (20,199) (21,516) Impairment losses on financial assets - Financial assets at amortized cost (*) (20,771) (20,947) (21,673) Impairment losses on financial assets - Financial assets at fair value through other comprehensive income — (2) (5) Write-off of impaired loans applied against the allowance for impairment losses 21,733 19,678 21,154 Others (8) (46) 70 Balance at year-end (16,929) (21,516) (21,970) Of which: By geographical location of risk: Mexico (*) |
Schedule of allowance for loan losses and the written-off financial assets | The following is a breakdown of the allowance for impairment losses and the written-off financial assets as of December 31, 2019: Allowance for impairment losses Stage 1 Stage 2 Stage 3 Total Written-off financial assets Financial assets at fair value through other comprehensive income 5 — — 5 — Of which: Commercial, financial and industrial loans 5 — — 5 — Financial assets at amortized cost 7,249 5,466 9,250 21,965 21,154 Of which: Commercial, financial and industrial loans 2,022 1,787 4,326 8,135 6,038 Public sector loans 8 — — 8 — Mortgage loans 623 660 2,033 3,316 1,775 Installment to individuals - 4,596 3,019 2,891 10,506 13,341 Revolving consumer credit card loans 2,330 1,598 1,352 5,280 7,536 Non-revolving consumer loans 2,266 1,421 1,539 5,226 5,805 |
Schedule of transfers of allowance for impairment losses of financial assets at amortized cost between stages | Allowance for impairment losses Stage 1 Stage 2 Stage 3 Total Beginning balance as of January 1 7,035 5,309 9,172 21,516 As of January 1, 2019 Transfers: Transfer from Stage 1 to Stage 2 (4,369) 17,123 — 12,754 Transfer from Stage 1 to Stage 3 (131) — 393 262 Transfer from Stage 2 to Stage 3 — 4,321 Transfer from Stage 2 to Stage 1 2,484 (9,902) — (7,418) Transfer from Stage 3 to Stage 2 — 659 (1,429) (770) Transfer from Stage 3 to Stage 1 140 — (474) (334) Financial assets derecognized during the period other than write-offs (2,089) (1,092) (1,449) (4,630) Contracts remaining at the same stage (481) 6,180 2,328 8,027 Write-offs — — Originated financial assets 4,295 — — 4,295 Foreign exchange and other movements 370 (264) 4,995 5,101 As of December 31, 2019 7,254 5,466 9,250 21,970 |
Schedule of changes in financial assets considered to be impaired due to credit risk. | 2017 2018 2019 Beginning balance 17,595 18,132 18,429 Additions 34,180 32,461 31,418 Transfers to performing loans Written-off loans (21,733) (19,678) (21,154) Balance at year - end 18,132 18,429 17,952 |
Schedule of financial assets between no past due and past due | The breakdown between no past due and past due as of December 31, 2018 of the balance of the financial assets classified as Financial assets at amortized cost – Loans and advances to customers that are considered to be impaired 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 2,138 1,531 112 880 1,877 6,538 Mortgage loans 2,098 1,447 844 662 3,294 8,345 Installment loans to individuals Of which: Revolving consumer credit card loans 530 1,186 — — — 1,716 Non-revolving consumer loans 484 1,345 — — 1 1,830 5,250 5,509 956 1,542 5,172 18,429 The breakdown between no past due and past due as of December 31, 2019 of the balance of the financial assets classified as Financial assets at amortized cost - Loans and advances to customers, that are considered to be impaired, 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 1,427 1,640 404 291 2,053 5,815 Mortgage loans 3,701 1,142 703 498 2,355 8,399 Installment loans to individuals Of which: Revolving consumer credit card loans 536 1,181 — — — 1,717 Non-revolving consumer loans 527 1,492 1 — 1 2,021 6,191 5,455 1,108 789 4,409 17,952 |
Schedule of renegotiated loans | For the Year Ended 12/31/2017 For the Year Ended 12/31/2018 For the Year Ended 12/31/2019 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 879 — 1,028 1,907 1,318 — 3,011 4,329 1,215 — 2,318 3,533 Mortgage loans 22 — 1 23 603 — 530 1,133 369 — 293 662 Installment loans to individuals 1,086 — 186 1,272 1,147 — 205 1,352 850 — 306 1,156 1,987 — 1,215 3,202 3,068 — 3,746 6,814 2,434 — 2,917 5,351 Percentage 62 % — 38 % 100 % 57 % — 70 % 100 % 45 % — 55 % 100 % |
Schedule of maximum exposure to credit risk by class of financial assets | 12/31/2018 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 at fair value through profit or loss 265,175 218,651 46,524 42,480 4,044 — — — Other financial assets at fair value through profit or loss 107,425 — 107,425 — 107,560 — — — Financial assets at fair value through other comprehensive income 155,256 155,256 — — — — — — Financial assets at amortized cost: 787,739 348,767 438,972 — — 124,725 222,490 11,945 Of which: Loans and advances to credit institutions 47,034 47,034 — — — — — — Loans and advances to customers 688,286 249,314 438,972 — — 124,725 222,490 11,945 Commercial, financial and industrial loans 371,203 96,967 274,236 — — 102,905 97,167 11,945 Public sector loans 59,547 21,385 38,162 — — 21,794 — — Mortgage loans 145,749 20,226 125,523 — — — 123,353 — Installment loans to individuals: Revolving consumer credit card loans 56,227 56,227 — — — — — — Non-revolving consumer loans 55,560 54,509 1,051 — — 26 1,970 — Debt instruments 52,419 52,419 — — — — — — Guarantees and loan commitments 94,267 94,267 — — — — — — Available lines of credit cards and non-revolving consumer loans — — — — — — — 1,409,862 816,941 592,921 42,480 111,604 124,725 222,490 11,945 (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 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. (3) Public sector loan rights are guaranteed by Mexican government entities. 12/31/2019 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 at fair value through profit or loss 262,360 239,865 22,495 16,759 5,736 — — — Other financial assets at fair value through profit or loss 79,927 — 79,927 — 76,592 — — — Financial assets at fair value through other comprehensive income 236,343 236,343 — — — — — — Financial assets at amortized cost: 769,788 316,232 — — 69,732 148,360 8,118 Of which: Loans and advances to credit institutions 36,895 36,895 — — — — — — Loans and advances to customers 721,636 268,080 — — 69,732 148,360 8,118 Commercial, financial and industrial loans 376,878 106,672 270,206 — — 45,058 25,308 8,118 Public sector loans 70,450 26,867 43,583 — — 24,646 — — Mortgage loans 156,209 19,077 — — — 120,461 — Revolving consumer credit card loans 59,477 59,477 — — — — — — Non-revolving consumer loans 58,622 55,987 2,635 — — 28 2,591 — Debt instruments 11,257 11,257 — — — — — — Guarantees and loan commitments 80,169 80,169 — — — — — — 1,428,587 872,609 555,978 16,759 82,328 69,732 148,360 8,118 (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 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. (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 Aa1 AA+ 9.0 Aa2 AA 8.6 Aa3 AA- 8.1 A1 A+ 7.7 A2 A 7.3 A3 A- 6.7 Baa1 BBB+ 6.1 Baa2 BBB 5.6 Baa3 BBB- 5.0 Ba1 BB+ 4.4 Ba2 BB 3.9 Ba3 BB- 3.3 B1 B+ 2.7 B2 B 2.2 B3 B- 1.6 Caa1 CCC 1.0 Ca CC |
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 |
External credit grades | |
Financial assets | |
Schedule of credit risk exposure | 12/31/2018 Rating Category A-1 A-2 B-1 B-2 B-3 C-1 C-2 D E Not Rated Total Commercial loans (SMEs) 57,411 7,716 1,843 2,276 4,176 1,308 538 1,673 332 — 77,273 Mortgage loans 107,435 4,623 3,576 9,504 2,712 5,731 3,655 3,525 889 4,099 145,749 Revolving consumer credit card loans 2,896 15,463 15,052 5,743 2,858 4,694 4,580 3,584 1,357 — 56,227 Non-revolving consumer loans 9,180 6,953 11,815 8,092 7,111 5,068 2,534 1,064 2,862 881 55,560 176,922 34,755 32,286 25,615 16,857 16,801 11,307 9,846 5,440 4,980 334,809 Financial instruments not recognized on the consolidated balance sheet: Available lines of credit cards and non-revolving consumer loans 6,365 5,240 5,743 3,460 2,601 3,603 3,676 1,600 1,907 — 34,195 Guarantees 85 — — — — — — — — — 85 Loan commitments 174 — — — — — — — — — 174 6,624 5,240 5,743 3,460 2,601 3,603 3,676 1,600 1,907 — 34,454 183,546 39,995 38,029 29,075 19,458 20,404 14,983 11,446 7,347 4,980 369,263 12/31/2019 Rating Category A-1 A-2 B-1 B-2 B-3 C-1 C-2 D E Not Rated Total Commercial loans (SMEs) 50,253 6,730 2,553 2,575 9,046 2,068 723 1,941 674 — 76,563 Mortgage loans 117,983 3,384 1,685 14,161 1,114 4,936 3,465 4,507 694 211 152,140 Revolving consumer credit card loans 3,165 17,396 16,396 5,842 2,945 4,791 4,227 3,332 1,383 — 59,477 Non-revolving consumer loans 9,511 6,886 14,618 8,756 7,076 4,110 2,483 1,148 3,067 — 57,655 180,912 34,396 35,252 31,334 20,181 15,905 10,898 10,928 5,818 211 345,835 Financial instruments not recognized on the consolidated balance sheet: Available lines of credit cards and non-revolving consumer loans 6,914 7,786 8,113 4,565 3,425 4,743 4,533 1,921 2,468 — 44,468 Guarantees 37 — — — — — — — — — 37 Loan commitments 183 — — — — — — — — — 183 7,134 7,786 8,113 4,565 3,425 4,743 4,533 1,921 2,468 — 44,688 188,046 42,182 43,365 35,899 23,606 20,648 15,431 12,849 8,286 211 390,523 |
Internal credit grades | |
Financial assets | |
Schedule of credit risk exposure | 12/31/2018 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) — — — — — 2,012 17,068 25,236 54,471 85,467 73,559 15,383 4,814 833 1,158 246 218 — 2,140 12,098 294,703 Public sector loans — — 5,200 — — 23,195 179 — 6,049 9,278 14,190 1,456 — — — — — — — — 59,547 — — 5,200 — — 25,207 17,247 25,236 60,520 94,745 87,749 16,839 4,814 833 1,158 246 218 — 2,140 12,098 354,250 Financial instruments not recognized on the consolidated balance sheet: Guarantees 622 — — 2,840 12,897 8,313 26,172 4,551 10,822 3,936 2,040 1,299 3 — — — 75 — — 2,586 76,156 Loan commitments — — — 203 366 237 239 113 2,290 7,798 5,273 756 63 3 5 — 19 — — 485 17,850 622 — — 3,043 13,263 8,550 26,411 4,664 13,112 11,734 7,313 2,055 66 3 5 — 94 — — 3,071 94,006 622 — 5,200 3,043 13,263 33,757 43,658 29,900 73,632 106,479 95,062 18,894 4,880 836 1,163 246 312 — 2,140 15,169 448,256 12/31/2019 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) — — — — — 2,004 21,925 33,028 32,090 75,766 94,840 21,098 5,734 1,112 1,453 235 301 — 1,477 12,144 303,207 Public sector loans — — 4,506 — — — 26,566 2,055 5,491 13,684 16,297 1,285 — — — — — — — 566 70,450 — — 4,506 — — 2,004 48,491 35,083 37,581 89,450 111,137 22,383 5,734 1,112 1,453 235 301 — 1,477 12,710 373,657 Financial instruments not recognized on the consolidated balance sheet: Guarantees 597 — — 4,009 15,457 4,347 8,290 12,566 5,848 3,780 2,082 167 — — — — 75 — — 913 58,131 Loan commitments — — — 57 139 301 20 228 3,472 6,119 5,877 1,443 76 — — — — — — 363 18,095 597 — — 4,066 15,596 4,648 8,310 12,794 9,320 9,899 7,959 1,610 76 — — — 75 — — 1,276 76,226 597 — 4,506 4,066 15,596 6,652 56,801 47,877 46,901 99,349 119,096 23,993 5,810 1,112 1,453 235 376 — 1,477 13,986 449,883 |
Hedging derivatives (Tables)
Hedging derivatives (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Hedging derivatives | |
Schedule of types of hedge of derivatives qualifying for hedge accounting | 12/31/2018 12/31/2019 Assets Liabilities Assets Liabilities Fair value hedges 202 5,136 925 5,306 Cash flow hedges 9,083 3,257 8,331 2,217 9,285 8,393 9,256 7,523 |
Schedule of reconciliation of valuation adjustments - Cash flow hedges | 2017 2018 2019 Balance at January 1 1,383 356 (290) Valuation adjustments (1,585) (882) 29 Amounts recycled to consolidated income statement 118 (40) (9) Of which: Income from cash flow hedging financial derivatives and discontinued cash flow hedge accounting 120 (42) (11) Cash flow hedges ineffectiveness (Note 39) (2) 2 2 Income taxes 440 276 (6) Balance at December 31 356 (290) (276) |
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 18 583 1,345 15 1,961 Cash flows to be paid (258) (774) (1,297) (26) (2,355) |
Fair value hedges | |
Hedging derivatives | |
Schedule of hedging derivative positions | As of December 31, 2018, the hedging financial derivative positions are as follows: Nominal (Million in Nominal Transaction Transaction (Million Pesos) Currency) Currency Hedged Item and Risk Hedged IRS 1,797 1,797 Peso Loans - Interest rate risk IRS 236 12 USD Loans - Interest rate risk IRS 7,583 7,583 Peso Promissory notes - Interest rate risk CCS 40 3 USD Loans - Interest rate and foreign exchange risk CCS 22,842 1,069 Euro UMS - Interest rate and foreign exchange risk CCS 1,275 67 USD UMS - Interest rate and foreign exchange risk CCS 1,492 58 Pound Sterling UMS - Interest rate and foreign exchange risk CCS 473 39 USD PEMEX Bonds - Interest rate and foreign exchange risk CCS 3,859 825 UDIS UDIBONDS - Interest rate and inflation risk As of December 31, 2019, the hedging financial derivative positions are as follows: Nominal (Million in Nominal Transaction Transaction (Million Pesos) Currency) Currency Hedged Item and Risk Hedged IRS 3,900 3,900 Peso Loans - Interest rate risk IRS 114 6 USD Loans - Interest rate risk IRS 6,422 6,422 Peso Promissory notes - Interest rate risk IRS 47,046 47,046 Peso M Bonds - Interest rate risk CCS 313 13 USD Loans - Interest rate and foreign exchange risk CCS 25,256 1,181 Euro UMS - Interest rate and foreign exchange risk CCS 5,394 280 USD UMS - Interest rate and foreign exchange risk CCS 1,492 58 Pound Sterling UMS - Interest rate and foreign exchange risk CCS 3,287 703 UDIS UDIBONDS - Interest rate and inflation risk |
Cash flow hedges | |
Hedging derivatives | |
Schedule of hedging derivative positions | As of December 31, 2018, the positions in financial 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 4,000 4,000 Peso Unsecured notes - Interest rate risk CCS 2,948 150 USD Unsecured notes - Foreign exchange risk CCS 2,707 193 USD Loans - Foreign exchange risk CCS 1,994 113 Euro Loans - Foreign exchange risk CCS 777 34 Pound Sterling Loans - Foreign exchange risk CCS 10,661 543 USD Senior Unsecured 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 CCS 983 50 USD Borrowing from banks - Foreign exchange risk Forward Fx-BRL 35,645 6,493 BRL Brazilian Government Notes - Foreign exchange risk Forward Fx-USD 38,015 1,814 USD Brazilian Government Notes - Foreign exchange risk As of December 31, 2019, the positions in financial 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 11,311 11,311 Peso Unsecured notes - Interest rate risk CCS 2,830 150 USD Unsecured notes - Foreign exchange risk CCS 2,358 166 USD Loans - Foreign exchange risk CCS 1,854 104 Euro Loans - Foreign exchange risk CCS 777 34 Pound Sterling Loans - Foreign exchange risk CCS 10,234 543 USD Senior Unsecured 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 32,372 6,919 BRL Brazilian Government Notes - Foreign exchange risk Forward Fx-USD 37,743 1,726 USD Brazilian Government Notes - Foreign exchange risk |
Non-current assets held for s_2
Non-current assets held for sale (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Non-current assets held for sale | |
Schedule of changes in foreclosed assets | Foreclosed Assets Cost: Balances at January 1, 2018 1,295 Additions 213 Disposals (226) Impairment losses (5) Balances at December 31, 2018 1,277 Additions 146 Disposals (118) Impairment losses (370) Balances at December 31, 2019 935 |
Tangible assets (Tables)
Tangible assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Tangible assets | |
Schedule of changes in Tangible assets in the consolidated balance sheet | Property, Plant and Equipment Cost: Balances at January 1, 2018 13,307 Additions 2,857 Assets acquired from Santander Tecnología México 815 Disposals (151) Balances at December 31, 2018 16,828 Additions 3,208 Disposals (207) Balances at December 31, 2019 19,829 Accumulated depreciation: Balances at January 1, 2018 (6,809) Additions (1,091) Assets acquired from Santander Tecnología México (358) Disposals 144 Balances at December 31, 2018 (8,114) Additions (1,378) Disposals 205 Balances at December 31, 2019 (9,287) Balances at December 31, 2018 8,714 Balances at December 31, 2019 10,542 |
Detail by asset class of Tangible assets for own use in the consolidated balance sheet | Accumulated Cost Depreciation Carrying Amount Buildings 9,780 (5,179) 4,601 IT equipment and fixtures 3,715 (1,620) 2,095 Furniture and vehicles 2,241 (1,315) 926 Others 1,092 — 1,092 Balances at December 31, 2018 16,828 (8,114) 8,714 Buildings 11,724 (5,826) 5,898 IT equipment and fixtures 4,776 (2,000) 2,776 Furniture and vehicles 2,627 (1,461) 1,166 Others 702 — 702 Balances at December 31, 2019 19,829 (9,287) 10,542 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Schedule of right-of-use assets | Branch IT Furniture offices equipment and vehicles Total Balances at January 1, 2019 6,691 12 31 6,734 Remeasurement in the right-of-use asset (684) — — (684) Additions in right-of-use assets 957 — — 957 Depreciation (1,381) (3) (12) (1,396) Balances at December 31, 2019 5,583 9 19 5,611 |
Schedule of activity in finance lease liabilities | Amount Balances at January 1, 2019 6,734 Interest expense 729 New contracts 957 Remeasurement on leases liabilities (684) Payments (1,817) Balances at December 31, 2019 5,919 |
Schedule of maturity analysis of lease payments | December 31, 2019 Maturity analysis - contractual undiscounted cash flows Less than one year 1,722 One to three years 2,765 Three to five years 1,536 More than five years 2,371 Total undiscounted lease liabilities at December 31, 2019 8,394 Lease liabilities at December 31, 2019 5,919 Current 1,374 Long-term 4,545 |
Schedule of additional lease information | Amounts recognized in the consolidated income statement December 31, 2019 Interest on lease liabilities Expense relating to short-term leases Expense relating to leases of low-value assets that are not shown above as short-term leases — Expense relating to variable lease payments not included in lease liabilities — |
Intangible assets - Goodwill (T
Intangible assets - Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible assets - Goodwill | |
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) 10 years Perpetual cash flow (2) Discount rate(6) 8.7% Of which: Cost of Equity(3) 12.7% Cost of Debt(4) 8.0% Equity Structure(5) 13% Equity / 87% 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 (7.11%), · β = Beta (0.869), and · Pr = Equity Risk Premium (6.38%). (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 int_2
Intangible assets - Other intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 10,789 Additions 2,964 Disposals — Balances at December 31, 2018 13,753 Additions 3,236 Disposals — Balances at December 31, 2019 16,989 Accumulated amortization and impairment: Balances at January 1, 2018 (5,563) Additions (1,880) Disposals — Balances at December 31, 2018 (7,443) Additions (2,448) Disposals — Balances at December 31, 2019 (9,891) Balances at December 31, 2018 6,310 Balances at December 31, 2019 7,098 |
Schedule of Other tangible assets | Estimated Accumulated Carrying Useful Life Cost Amortization Amount IT developments 3 years 13,666 (7,420) 6,246 Others 10 years 87 (23) 64 Balances at December 31, 2018 13,753 (7,443) 6,310 IT developments 3 years 16,903 (9,858) 7,045 Others 10 years 86 (33) 53 Balances at December 31, 2019 16,989 (9,891) 7,098 |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other assets | |
Schedule of Other assets | 12/31/2018 12/31/2019 Credit card operating balances 2,192 2,577 Insurance commission receivables 1,108 1,278 Prepayments 630 695 Other 3,233 6,623 7,163 11,173 |
Schedule of maturity of other assets | Current More than 30 days less than 60 More than 60 days less than 90 More than 90 days Total Other assets Credit card operating balances 1,161 209 96 1,111 2,577 Insurance commission receivables 1 21 45 1,211 1,278 Prepaid expenses 599 38 57 1 695 Other 5,539 220 46 1,748 7,553 Expected credit loss rate Gross carrying amount 7,300 488 244 4,071 12,103 Lifetime expected credit losses (335) (51) (45) (499) (930) Balances at December 31, 2019 6,965 437 199 3,572 11,173 |
Deposits from the Central Ban_2
Deposits from the Central Bank and Deposits from credit institutions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits from the Central Bank and credit institutions | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2018 12/31/2019 Classification: Other financial liabilities at fair value through profit or loss 44,796 141,263 Financial liabilities at amortized cost 94,849 72,969 139,645 214,232 Type: Reciprocal accounts 3,999 7,272 Time deposits 10,125 8,914 Overnight deposits 23,359 26,710 Repurchase agreements 44,796 141,263 Other accounts 57,315 29,961 Of which: Collateral received for OTC financial derivatives transactions (Note 32) 32,606 8,960 Others 24,709 21,001 Accrued interest 51 112 139,645 214,232 Currency: Peso 125,839 195,604 USD 13,791 18,565 Other currencies 15 63 139,645 214,232 |
Customer deposits (Tables)
Customer deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits - Customers | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2018 12/31/2019 Classification: Other financial liabilities at fair value through profit or loss Financial liabilities at amortized cost Type: Repurchase agreements Demand deposits: Current accounts Other deposits 25,904 24,010 Of which: Collateral received for OTC financial derivatives transactions (Note 32) 9,874 7,799 Others 16,030 16,211 Time deposits: Fixed-term deposits Accrued interest 1,320 1,714 Currency: Peso 677,634 USD 81,631 Other currencies 153 6 |
Marketable debt securities (Tab
Marketable debt securities (Tables) - Debt instruments | 12 Months Ended |
Dec. 31, 2019 | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2018 12/31/2019 Classification: Other financial liabilities at fair value through profit or loss 4,750 3,246 Financial liabilities at amortized cost 98,312 103,062 114,457 Type: Certificates of deposit (unsecured) 22,433 37,823 Senior Unsecured Notes 19,590 18,849 Structured bank bonds 5,376 4,797 Promissory notes 35,831 23,314 Unsecured bonds 19,717 29,674 Mortgage-backed bonds 115 — Currency: Peso 76,075 89,233 USD 26,987 25,224 |
Schedule of the balance of issues under the issuance program | As of December 31, 2018, the balance of the issues performed by the Bank under the aforementioned program is as follows: Amount Maturity Date Rate Certificates of deposit (unsecured) 8 01/02/2019 8.14 % Certificates of deposit (unsecured) 15 01/03/2019 8.14 % Certificates of deposit (unsecured) 28 01/04/2019 8.14 % Certificates of deposit (unsecured) 28 01/07/2019 8.15 % Certificates of deposit (unsecured) 23 01/08/2019 8.14 % Certificates of deposit (unsecured) 26 01/09/2019 8.16 % Certificates of deposit (unsecured) 21 01/10/2019 8.16 % Certificates of deposit (unsecured) 16 01/11/2019 8.15 % Certificates of deposit (unsecured) 22 01/14/2019 8.15 % Certificates of deposit (unsecured) 19 01/15/2019 8.15 % Certificates of deposit (unsecured) 12 01/16/2019 8.17 % Certificates of deposit (unsecured) 20 01/17/2019 8.17 % Certificates of deposit (unsecured) 1,050 01/17/2019 8.12 % Certificates of deposit (unsecured) 20 01/18/2019 8.18 % Certificates of deposit (unsecured) 23 01/21/2019 8.36 % Certificates of deposit (unsecured) 21 01/22/2019 8.38 % Certificates of deposit (unsecured) 16 01/23/2019 8.38 % Certificates of deposit (unsecured) 28 01/24/2019 8.38 % Certificates of deposit (unsecured) 19 01/25/2019 8.39 % Certificates of deposit (unsecured) 34 01/28/2019 8.40 % Certificates of deposit (unsecured) 24 01/29/2019 8.13 % Certificates of deposit (unsecured) 39 01/30/2019 8.14 % Certificates of deposit (unsecured) 65 01/31/2019 8.14 % Certificates of deposit (unsecured) 1,000 02/08/2019 8.12 % Certificates of deposit (unsecured) 60 02/11/2019 8.38 % Certificates of deposit (unsecured) 900 02/15/2019 8.12 % Certificates of deposit (unsecured) 1,000 02/08/2019 8.38 % Certificates of deposit (unsecured) 700 02/25/2019 8.12 % Certificates of deposit (unsecured) 1,500 03/15/2019 8.12 % Certificates of deposit (unsecured) 1,500 03/26/2019 8.44 % Certificates of deposit (unsecured) 550 02/01/2019 8.34 % Certificates of deposit (unsecured) 1,000 05/16/2019 8.12 % Certificates of deposit (unsecured) 800 06/13/2019 8.12 % Certificates of deposit (unsecured) 9 06/20/2019 8.89 % Certificates of deposit (unsecured) 12 06/21/2019 8.89 % Certificates of deposit (unsecured) 26 06/24/2019 8.90 % Certificates of deposit (unsecured) 8 06/25/2019 8.89 % Certificates of deposit (unsecured) 23 06/26/2019 8.91 % Certificates of deposit (unsecured) 40 06/27/2019 8.91 % Certificates of deposit (unsecured) 40 06/28/2019 8.90 % Certificates of deposit (unsecured) 80 07/01/2019 8.90 % Certificates of deposit (unsecured) 23 07/02/2019 8.90 % Certificates of deposit (unsecured) 36 07/03/2019 8.92 % Certificates of deposit (unsecured) 43 07/04/2019 8.92 % Certificates of deposit (unsecured) 1,200 07/04/2019 8.12 % Certificates of deposit (unsecured) 43 07/05/2019 8.93 % Certificates of deposit (unsecured) 51 07/08/2019 9.11 % Certificates of deposit (unsecured) 57 07/09/2019 9.13 % Certificates of deposit (unsecured) 66 07/10/2019 9.13 % Certificates of deposit (unsecured) 48 07/11/2019 9.13 % Certificates of deposit (unsecured) 36 07/12/2019 9.14 % Certificates of deposit (unsecured) 52 07/15/2019 9.15 % Certificates of deposit (unsecured) 41 07/16/2019 8.88 % Certificates of deposit (unsecured) 33 07/17/2019 8.88 % Certificates of deposit (unsecured) 43 07/18/2019 8.89 % Certificates of deposit (unsecured) 46 07/19/2019 8.89 % Certificates of deposit (unsecured) 1,000 07/19/2019 8.12 % Certificates of deposit (unsecured) 39 07/22/2019 8.90 % Certificates of deposit (unsecured) 28 07/23/2019 8.89 % Certificates of deposit (unsecured) 41 07/24/2019 8.91 % Certificates of deposit (unsecured) 500 07/24/2019 8.12 % Certificates of deposit (unsecured) 40 07/25/2019 8.91 % Certificates of deposit (unsecured) 34 07/26/2019 8.90 % Certificates of deposit (unsecured) 43 07/29/2019 8.90 % Certificates of deposit (unsecured) 50 07/25/2019 8.36 % Certificates of deposit (unsecured) 66 07/30/2019 8.90 % Certificates of deposit (unsecured) 92 07/31/2019 8.92 % Certificates of deposit (unsecured) 32 08/01/2019 8.92 % Certificates of deposit (unsecured) 200 08/01/2019 8.40 % Certificates of deposit (unsecured) 18 08/02/2019 8.93 % Certificates of deposit (unsecured) 32 08/05/2019 9.11 % Certificates of deposit (unsecured) 20 08/06/2019 9.13 % Certificates of deposit (unsecured) 52 08/07/2019 9.13 % Certificates of deposit (unsecured) 71 08/08/2019 9.13 % Certificates of deposit (unsecured) 2,000 06/13/2019 8.12 % Certificates of deposit (unsecured) 1 08/13/2019 8.88 % Certificates of deposit (unsecured) 350 08/22/2019 8.39 % Certificates of deposit (unsecured) 600 08/28/2019 8.12 % Certificates of deposit (unsecured) 1,700 09/02/2019 8.12 % Certificates of deposit (unsecured) 500 09/25/2019 8.40 % Certificates of deposit (unsecured) 600 09/27/2019 8.41 % Certificates of deposit (unsecured)-USD 1 01/04/2019 0.98 % Certificates of deposit (unsecured)-USD 2 05/03/2019 0.98 % Certificates of deposit (unsecured)-USD 1,100 11/08/2019 8.12 % Certificates of deposit (unsecured)-USD 112 01/04/2019 2.00 % Certificates of deposit (unsecured)-USD 13 03/04/2019 1.50 % Certificates of deposit (unsecured)-USD 13 05/16/2019 1.51 % Certificates of deposit (unsecured)-USD 22 09/30/2019 1.70 % Certificates of deposit (unsecured)-USD 33 11/20/2019 1.75 % Certificates of deposit (unsecured)-USD 1 11/20/2019 1.75 % Certificates of deposit (unsecured)-USD 12 11/20/2019 1.75 % Certificates of deposit (unsecured)-USD 12 11/20/2019 1.75 % Certificates of deposit (unsecured)-USD 12 11/29/2019 1.75 % Certificates of deposit (unsecured)-USD 22 12/17/2019 1.75 % Certificates of deposit (unsecured)-USD 105 12/24/2019 1.75 % Certificates of deposit (unsecured)-USD 4 05/16/2019 1.65 % Certificates of deposit (unsecured)-USD 4 05/16/2019 1.65 % Certificates of deposit (unsecured)-USD 4 05/16/2019 1.65 % Certificates of deposit (unsecured)-USD 4 05/16/2019 1.65 % Certificates of deposit (unsecured)-USD 58 12/24/2019 1.85 % Certificates of deposit (unsecured)-USD 77 12/24/2019 1.75 % 22,363 Accrued interest 70 22,433 Senior Unsecured Notes 19,482 11/09/2022 4.125 % Accrued interest 108 19,590 Structured bank bonds 16 02/20/2020 Guaranteed rate subject to foreign exchange rate Structured bank bonds 139 10/15/2019 9.54 % Structured bank bonds 13 01/04/2019 0.25 % Structured bank bonds 32 01/14/2019 0.25 % Structured bank bonds 27 01/18/2019 0.25 % Structured bank bonds 10 01/09/2019 11.00 % Structured bank bonds 16 01/25/2019 0.25 % Structured bank bonds 40 01/08/2019 Guaranteed rate subject to foreign exchange rate Structured bank bonds 24 01/10/2019 12.00 % Structured bank bonds 25 01/10/2019 12.00 % Structured bank bonds 60 01/10/2019 Guaranteed rate subject to foreign exchange rate Structured bank bonds 39 01/03/2019 6.34 % Structured bank bonds 70 01/03/2019 12.23 % Structured bank bonds 10 01/18/2019 12.00 % Structured bank bonds 59 01/11/2019 5.81 % Structured bank bonds 25 02/01/2019 0.25 % Structured bank bonds 15 02/05/2019 11.00 % Structured bank bonds (*) 43 11/09/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 201 11/09/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 742 10/23/2020 TIIE Structured bank bonds (*) 430 10/26/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 19 11/07/2019 Guaranteed rate subject to SXDP Structured bank bonds (*) 8 11/05/2020 TIIE Structured bank bonds (*) 163 11/14/2019 Guaranteed rate subject to SXDP Structured bank bonds (*) 118 11/23/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 154 12/14/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 11 02/14/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 40 02/23/2021 TIIE Structured bank bonds (*) 23 03/03/2021 Guaranteed rate subject to SXDP Structured bank bonds (*) 5 03/16/2021 TIIE Structured bank bonds (*) 20 05/23/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 11 03/27/2019 Guaranteed rate subject to NIKKEI 225 Structured bank bonds (*) 18 04/03/2019 Guaranteed rate subject to NIKKEI 225 Structured bank bonds (*) 111 04/26/2019 Guaranteed rate subject to SX7E Structured bank bonds (*) 49 04/26/2019 Guaranteed rate subject to Euro STOXX 50 Structured bank bonds (*) 6 04/26/2019 Guaranteed rate subject to SX7E Structured bank bonds (*) 17 05/12/2021 TIIE Structured bank bonds (*) 1 06/06/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 27 06/06/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 212 06/06/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 57 06/06/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 287 04/23/2021 TIIE Structured bank bonds (*) 99 09/04/2019 Guaranteed rate subject to IBEX35 Structured bank bonds (*) 14 12/19/2019 Guaranteed rate subject to Euro STOXX 50 Structured bank bonds (*) 21 10/03/2019 Guaranteed rate subject to NKY and SXE Structured bank bonds (*) 5 03/03/2021 Guaranteed rate subject to SXDP Structured bank bonds (*) 10 06/26/2019 TIIE Structured bank bonds (*) 55 05/24/2021 TIIE Structured bank bonds (*) 91 09/25/2019 TIIE Structured bank bonds (*) 94 10/16/2019 Guaranteed rate subject to Euro STOXX 50 Structured bank bonds (*) 117 02/21/2019 Guaranteed rate subject to Euro STOXX 50 Structured bank bonds (*) 37 12/27/2019 Guaranteed rate subject to SX7E Structured bank bonds (*) 15 02/20/2020 Guaranteed rate subject to Euro SX5E Structured bank bonds (*) 19 03/05/2019 Guaranteed rate subject to NIKKEI 225 Structured bank bonds (*) 55 03/01/2019 Guaranteed rate subject to IPC Structured bank bonds (*) 29 03/27/2019 Guaranteed rate subject to IPC Structured bank bonds (*) 263 06/02/2020 Guaranteed rate subject to Euro SX5E Structured bank bonds (*) 527 03/25/2019 Guaranteed rate subject to IPC Structured bank bonds (*) 68 11/22/2019 Guaranteed rate subject to S&P 500 Structured bank bonds (*) 15 06/27/2019 Guaranteed rate subject to IPC Structured bank bonds (*) 117 06/24/2019 Guaranteed rate subject to IPC Structured bank bonds (*) 120 05/29/2019 Guaranteed rate subject to S&P 500 and IPC Structured bank bonds (*) 10 07/11/2019 Guaranteed rate subject to IPC Structured bank bonds (*) 10 07/30/2019 Guaranteed rate subject to IPC Structured bank bonds (*) 10 07/30/2019 Guaranteed rate subject to IPC Structured bank bonds (*) 177 05/17/2019 Guaranteed rate subject to Euro STOXX 50 5,371 Transaction costs and accrued interest (net) 5 5,376 Promissory notes 1,385 08/08/2019 8.33 % Promissory notes 461 08/21/2019 8.38 % Promissory notes 1,291 08/20/2019 8.38 % Promissory notes 646 09/06/2019 8.35 % Promissory notes 830 09/17/2019 8.39 % Promissory notes 861 04/09/2019 8.22 % Promissory notes 2,109 05/31/2019 8.66 % Promissory notes 3,500 01/03/2019 8.25 % Promissory notes 3,500 01/03/2019 8.25 % Promissory notes 2,990 01/07/2019 8.25 % Promissory notes 2,990 01/07/2019 8.25 % Promissory notes 2,519 01/07/2019 8.25 % Promissory notes 3,477 01/24/2019 8.67 % Promissory notes 3,477 01/24/2019 8.67 % Promissory notes 3,047 01/24/2019 8.67 % Promissory notes 2,500 01/30/2019 8.25 % Promissory notes 65 01/07/2019 8.20 % 35,648 Accrued interest 183 35,831 Unsecured bonds 1,700 03/09/2021 8.91 % Unsecured bonds 4,000 06/14/2021 TIIE + 38 basis points Unsecured bonds 3,000 09/01/2026 7.19 % Unsecured bonds 6,484 02/10/2020 London Inter-Bank Offered Rate (LIBOR) + 20 basis points Unsecured bonds 4,461 05/06/2022 TIIE + 15 basis points 19,645 Accrued interest 72 19,717 Mortgage-backed bonds 100 05/25/2032 5.00 % Mortgage-backed bonds 15 05/25/2032 6.40 % 115 Accrued interest — 115 (*) As of December 31, 2019, the balance of the issues performed by the Bank under the aforementioned program is as follows: Amount Maturity Date Rate Certificates of deposit (unsecured) 1,000 12/16/2020 7.74 % Certificates of deposit (unsecured) 500 12/16/2020 7.59 % Certificates of deposit (unsecured) 300 12/11/2020 7.60 % Certificates of deposit (unsecured) 700 12/11/2020 7.75 % Certificates of deposit (unsecured) 1,100 11/09/2020 7.78 % Certificates of deposit (unsecured) 500 09/24/2020 7.47 % Certificates of deposit (unsecured) 1,000 11/20/2020 7.72 % Certificates of deposit (unsecured) 2,000 10/26/2020 7.59 % Certificates of deposit (unsecured) 2,500 10/08/2020 7.79 % Certificates of deposit (unsecured) 250 09/30/2020 7.58 % Certificates of deposit (unsecured) 200 09/15/2020 7.60 % Certificates of deposit (unsecured) 1,150 09/11/2020 7.60 % Certificates of deposit (unsecured) 2,000 09/02/2020 7.76 % Certificates of deposit (unsecured) 1,300 08/27/2020 7.64 % Certificates of deposit (unsecured) 2,000 07/09/2020 7.59 % Certificates of deposit (unsecured) 500 09/25/2020 7.72 % Certificates of deposit (unsecured) 1,000 07/20/2020 7.89 % Certificates of deposit (unsecured) 1,600 07/03/2020 7.94 % Certificates of deposit (unsecured) 1,000 06/30/2020 7.74 % Certificates of deposit (unsecured) 1,000 06/18/2020 7.81 % Certificates of deposit (unsecured) 4,000 06/05/2020 7.74 % Certificates of deposit (unsecured) 1,500 06/04/2020 7.59 % Certificates of deposit (unsecured) 2,500 05/06/2020 7.76 % Certificates of deposit (unsecured) 900 04/08/2020 7.95 % Certificates of deposit (unsecured) 1,500 03/24/2020 7.59 % Certificates of deposit (unsecured) 300 03/12/2020 7.75 % Certificates of deposit (unsecured) 400 02/14/2020 7.59 % Certificates of deposit (unsecured) 1,000 02/11/2020 7.59 % Certificates of deposit (unsecured) 125 02/10/2020 7.77 % Certificates of deposit (unsecured) 400 02/07/2020 7.77 % Certificates of deposit (unsecured) 300 02/13/2020 7.75 % Certificates of deposit (unsecured) 50 01/22/2020 7.54 % Certificates of deposit (unsecured) 1,100 01/10/2020 7.59 % Certificates of deposit (unsecured) 400 01/10/2020 7.77 % Certificates of deposit (unsecured) 1,550 01/08/2020 7.78 % Certificates of deposit (unsecured)-USD 13 03/03/2020 1.75 % Certificates of deposit (unsecured)-USD 13 05/15/2020 1.75 % 37,650 Accrued interest 172 37,823 Senior Unsecured Notes 18,744 11/09/2022 4.125 % Accrued interest 105 18,849 Structured bank bonds (*) 7 03/17/2022 TIIE Structured bank bonds (*) 54 03/17/2022 TIIE Structured bank bonds (*) 56 03/26/2021 9.50 % Structured bank bonds (*) 6 03/17/2022 TIIE Structured bank bonds (*) 159 03/08/2021 9.50 % Structured bank bonds (*) 2 03/17/2022 TIIE Structured bank bonds (*) 46 02/23/2021 TIIE Structured bank bonds (*) 30 05/24/2021 TIIE Structured bank bonds (*) 6 03/16/2021 TIIE Structured bank bonds (*) 212 11/09/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 294 04/23/2021 TIIE Structured bank bonds (*) 156 01/28/2021 10.00 % Structured bank bonds (*) 441 10/26/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 773 10/23/2020 TIIE Structured bank bonds (*) 9 11/05/2020 TIIE Structured bank bonds (*) 114 06/26/2020 Guaranteed rate subject to IPC Structured bank bonds (*) 276 06/02/2020 Guaranteed rate subject to Euro STOXX 50 Structured bank bonds (*) 121 03/25/2020 TIIE Structured bank bonds (*) 137 03/23/2020 TIIE Structured bank bonds (*) 13 02/20/2020 Guaranteed rate subject to Euro STOXX 50 Structured bank bonds (*) 19 05/12/2021 TIIE Structured bank bonds (*) 5 03/03/2021 Guaranteed rate subject to SXDP Structured bank bonds (*) 24 03/03/2021 Guaranteed rate subject to SXDP Structured bank bonds (*) 180 12/14/2020 Guaranteed rate subject to SXDP Structured bank bonds (*) 115 11/23/2020 Guaranteed rate subject to SXDP Structured bank bonds 66 09/25/2020 2.50 % Structured bank bonds 20 09/18/2020 2.50 % Structured bank bonds 196 06/26/2020 4.00 % Structured bank bonds 30 06/15/2020 Guaranteed rate subject to foreign exchange rate Structured bank bonds 19 03/27/2020 5.00 % Structured bank bonds 50 03/27/2020 5.00 % Structured bank bonds 11 02/20/2020 Guaranteed rate subject to foreign exchange rate Structured bank bonds 81 09/01/2020 2.50 % Structured bank bonds 25 09/30/2020 2.50 % Structured bank bonds 40 01/29/2020 12.00 % Structured bank bonds 25 01/27/2020 12.00 % Structured bank bonds 24 01/24/2020 10.00 % Structured bank bonds 500 01/21/2020 12.00 % Structured bank bonds 105 01/17/2020 13.00 % Structured bank bonds 15 01/16/2020 11.69 % Structured bank bonds 114 01/16/2020 12.23 % Structured bank bonds 19 01/16/2020 13.00 % Structured bank bonds 10 01/16/2020 11.61 % Structured bank bonds 27 01/14/2020 12.00 % Structured bank bonds 12 01/10/2020 14.50 % Structured bank bonds 40 01/07/2020 10.48 % Structured bank bonds 57 01/03/2020 3.17 % Structured bank bonds 57 01/03/2020 3.02 % 4,797 Transaction costs and accrued interest (net) - 4,797 Promissory notes 500 11/30/2020 7.25 % Promissory notes 2,000 10/05/2020 7.23 % Promissory notes 1,500 04/15/2020 8.42 % Promissory notes 1,500 04/13/2020 8.42 % Promissory notes 1,000 03/20/2020 8.45 % Promissory notes 921 03/19/2020 8.45 % Promissory notes 500 03/17/2020 8.45 % Promissory notes 500 03/09/2020 8.55 % Promissory notes 200 02/17/2020 7.00 % Promissory notes 2,700 01/17/2020 7.25 % Promissory notes 70 01/06/2020 7.25 % Promissory notes 11,500 01/03/2020 7.25 % 22,891 Accrued interest 423 23,314 Unsecured bonds 7,150 03/30/2026 8.95 % Unsecured bonds 3,000 09/01/2026 7.19 % Unsecured bonds 2,850 04/04/2022 TIIE + 10 basis points Unsecured bonds 4,461 05/06/2022 TIIE + 15 basis points Unsecured bonds 4,000 06/14/2021 TIIE + 38 basis points Unsecured bonds 1,700 03/09/2021 8.91 % Unsecured bonds 6,224 02/10/2020 LIBOR + 20 basis points 29,385 Accrued interest 289 29,674 (*) |
Financial liabilities designated at fair value through profit or loss | |
Financial liabilities | |
Schedule of changes in financial instruments | 2018 2019 Beginning balance 10,504 4,750 Issues 1,243 983 Of which: Structured bank bonds 1,243 983 Of which: Banco Santander México 1,243 983 Redemptions (6,715) (2,914) Of which: Structured bank bonds (6,715) (2,914) Of which: Banco Santander México (6,715) (2,914) Changes in fair value (282) 427 Balance at year-end 4,750 3,246 |
Financial liabilities at amortized cost | |
Financial liabilities | |
Schedule of changes in financial instruments | 2018 2019 Beginning balance 85,792 98,312 Issues 2,458,603 1,668,170 Of which: Certificates of deposit (unsecured) 54,486 42,195 Structured bank bonds 10,710 24,728 Promissory notes 2,382,790 1,591,247 Unsecured bonds 10,617 10,000 Of which: Banco Santander México 2,458,603 1,668,170 Redemptions (2,446,455) (1,654,767) Of which: Certificates of deposit (unsecured) (59,578) (26,883) Structured bank bonds (10,294) (23,765) Promissory notes (2,370,551) Unsecured bonds (6,000) — Mortgage backed bonds (32) (115) Of which: Banco Santander México (2,446,422) (1,654,652) Santander Vivienda (32) (115) Accrued interest (31) 609 Effect of changes in foreign exchange rates 403 (1,113) Balance at year-end 98,312 111,211 |
Subordinated liabilities (Table
Subordinated liabilities (Tables) - Subordinated liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2019 Outstanding Issue Amount Annual Type Currency of Issue 12/31/2018 12/31/2019 in Foreign Currency Interest Rate (%) Tier II Subordinated Capital Notes USD 1,546 — — — Subordinated Additional Tier I Capital Notes USD 9,809 9,420 500,000,000 8.50 Tier II Subordinated Capital Notes USD 25,873 24,847 1,300,000,000 5.95 Balance at year-end 37,228 34,267 |
Schedule of subordinated liabilities | 2018 2019 Beginning balance (million USD) 1,825 1,894 Issues 1,300 — Redemptions (1,223) (77) Transaction costs and accrued interest (8) (1) Balance at year-end (million USD) 1,894 1,816 Exchange rate per one USD at December 31 Balance at year-end (million pesos) 37,228 34,267 |
Schedule of changes in financial instruments arising from financing activities | Non-cash changes Foreign January 1, 2018 Cash flows Accrued Transaction exchange December 31, 2018 Type interest costs movements Tier II Subordinated Capital Notes 26,054 (24,481) 826 151 (1,004) 1,546 Subordinated Additional Tier I Capital Notes 9,831 — (*) — (16) (6) 9,809 Tier II Subordinated Capital Notes — 24,249 375 (48) 1,297 25,873 Balances at 35,885 (232) 1,201 87 287 37,228 (*) As of December 31, 2018, the Bank paid 804 million pesos related to interests on the Subordinated Additional Tier I Capital Notes, which were recognized against Accumulated reserves within Shareholders’ equity. Non-cash changes Foreign Beginning balance Cash flows Accrued Transaction exchange December 31, 2019 Type interest costs movements Tier II Subordinated Capital Notes 1,546 (1,521) 6 7 (38) — Subordinated Additional Tier I Capital Notes 9,809 — (*) — 4 (393) 9,420 Tier II Subordinated Capital Notes 25,873 (1,513) 1,495 7 (1,015) 24,847 Balances at 37,228 (3,034) 1,501 18 (1,446) 34,267 (*) As of December 31, 2019, the Bank paid 808 million pesos related to interests on the Subordinated Additional Tier I Capital Notes, which were recognized against Accumulated reserves within Shareholders’ equity. |
Other financial liabilities (Ta
Other financial liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other financial liabilities | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2018 12/31/2019 Trade payables 2,277 1,451 Collection accounts: Tax payables 1,187 1,160 Financial transactions pending settlement 5,061 9,267 Other financial liabilities 5,281 3,886 13,806 15,764 |
Other financial liabilities - Financial transactions pending settlement | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2018 12/31/2019 Mexican government securities 4,827 8,059 BPATS 201 1,003 Equity instruments 1 205 Other financial instruments 32 — 5,061 9,267 |
Other financial liabilities - Other miscellaneous financial liabilities | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2018 12/31/2019 Retentions related to loans (*) 1,000 1,524 Other payable account 4,281 2,362 5,281 3,886 (*) |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Provisions [abstract] | |
Schedule of details of provisions in the consolidated balance sheet | 12/31/2018 12/31/2019 Provisions for pensions and similar obligations 4,370 6,406 Provisions for tax and legal matters 1,516 1,558 Provisions for off-balance sheet risk 852 1,075 Other provisions 62 65 Provisions 6,800 9,104 |
Schedule of changes in provisions | 2017 2018 2019 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 (as originally presented) 3,972 1,306 874 1,050 7,202 3,860 1,072 1,032 766 6,730 4,370 1,516 852 62 6,800 Adjustments on initial adoption of IFRS 9 — — — — — — — (32) — (32) — — — — — Beginning balance as of January 1 (restated) 3,972 1,306 874 1,050 7,202 3,860 1,072 1,000 766 6,698 4,370 1,516 852 62 6,800 Additions charged (credited) to net income: Interest expense and similar charges 332 — — — 332 359 — — — 359 415 — — — 415 Personnel expenses – Defined Benefit Plan 146 — — — 146 157 — — — 157 147 — — — 147 Personnel expenses – Defined Contribution Plan (Note 42) 330 — — — 330 373 — — — 373 410 — — — 410 Other 51 — — — 51 129 — — — 129 257 — — — 257 Actuarial (gains)/losses recognized in the year in other comprehensive income (666) — — — (666) (260) — — — (260) 1,673 — — — 1,673 Period provisions — 197 158 31 386 — 576 (148) 5 433 — 353 223 5 581 Contributions from the employer 225 — — — 225 246 — — — 246 118 — — — 118 Payments to pensioners and pre-retirees with a charge to internal provisions (191) — — — (191) (234) — — — (234) (348) — — — (348) Other payments (*) — (431) — (315) (746) — (284) — (284) — — — — Payments to Defined Contribution Plan (330) — — — (330) (347) — — — (347) (636) (311) — — (947) Recognition of pension obligations from acquisition of SANTEC — — — — — 95 — — — 95 — — — — — Transfers and other changes (9) — — — (9) (8) 152 — (709) (565) — — — (2) (2) Balances at the end of year 3,860 1,072 1,032 766 6,730 4,370 1,516 852 62 6,800 6,406 1,558 1,075 65 9,104 (*) |
Schedule of Provision for pensions and similar obligations | 12/31/2018 12/31/2019 Provisions for post-employment plans Of which: Defined benefit pension plan 4,322 6,328 Provisions for defined contribution pension plan 48 78 Provisions for pensions and similar obligations 4,370 6,406 |
Schedule of actuarial assumptions used to calculate defined benefit obligations | Defined Benefit Pension Plan 12/31/2018 12/31/2019 Annual discount rate 9.5 % 7.3 % Mortality tables EMSSA 1997 and 2009 EMSSA 1997 and 2009 Expected return on plan assets 9.5 % 7.3 % Cumulative annual INPC growth 3.5 % 3.5 % Annual salary increase rate 4.5 % 4.5 % Annual minimum salary increase rate 3.5 % 4.0 % Medical cost trend rates 5.0 % 5.0 % |
Schedule of funding status of the defined benefit obligations | Defined Benefit Pension Plan 12/31/2018 12/31/2019 Present value of the obligations: Pension plan 2,032 2,567 Post-employment benefits 3,644 5,127 Long-term benefits 842 702 6,518 8,396 Less: Fair value of plan assets (2,196) (2,068) Provisions – Provisions for pensions 4,322 6,328 Of which: Internal provisions for pensions 4,322 6,328 |
Schedule of defined benefit obligation recognised in consolidated income statement | Defined Benefit Pension Plan 2017 2018 2019 Current service cost (Note 42) 146 157 147 Interest cost (net) 332 359 415 Other 51 129 257 529 645 819 |
Schedule of changes in the present value of the accrued defined benefit obligations | Defined Benefit Pension Plans 2018 2019 Present value of the obligations at the beginning of year 6,731 6,518 Current service cost (Note 42) 157 147 Interest cost 592 585 Benefits paid (735) (983) Actuarial (gains)/losses (321) 2,129 Recognition of defined benefit obligations from acquisition of Santander Tecnología México 95 — Other (1) — Present value of the obligations at the end of year 6,518 8,396 |
Schedule of changes in fair value of plan assets | Defined Benefit Pension Plan 2018 2019 Fair value of plan assets at the beginning of year 2,901 2,196 Actual return on plan assets 43 347 Transfer of funds to defined contribution plan (246) (346) Benefits paid (502) (129) Fair value of plan assets at the end of year 2,196 2,068 |
Schedule of categories of plan assets as a percentage of total plan assets | Defined Benefit Pension Plan 12/31/2018 12/31/2019 Equity instruments 33 % 34 % Cash and debt instruments 67 % 66 % |
Schedule of off-balance-sheet risks | 12/31/2018 12/31/2019 Available lines of credit cards and non-revolving consumer loans 718 965 Guarantees and loan commitments of commercial and public sector loans 134 110 852 1,075 |
Schedule of Provisions for off balance sheet risks by stages | As of December 31, 2019, the breakdown of the Provisions for off-balance sheet risks by stages is as follows: Provision for off-balance sheet risk Stage 1 Stage 2 Stage 3 Total Available lines of credit cards and non-revolving consumer loans 859 91 15 965 Guarantees, documentary credits and loan commitments of commercial loans of small and medium-sized enterprises (SMEs) 57 53 — 110 Total 916 144 15 1,075 |
Schedule of disclosure of transfers between stages of the Provisions for off balance sheet risks. | As of December 31, 2019, the transfers between stages of the Provisions for off-balance sheet risks is as follows: Provision for off-balance sheet risk Stage 1 Stage 2 Stage 3 Total As of January 1, 2019: 705 131 16 852 Financial assets derecognized during the period other than write-offs — — — — Write-offs — — — — Originated financial assets — — — — Foreign exchange and other movements 211 13 (1) 223 As of December 31, 2019 916 144 15 1,075 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other liabilities | |
Schedule of other liabilities | 12/31/2018 12/31/2019 Sundry creditors 6,788 9,025 Cash balances undrawn 3,894 155 Accrued personnel obligations 3,735 4,388 Other obligations 2,337 2,288 Credit and debit card operation balances 2,101 2,435 18,855 18,291 |
Tax matters (Tables)
Tax matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Tax matters | |
Schedule of income tax expense | 2017 2018 2019 Current income tax expense: Tax expense for current year 4,215 5,615 7,099 Deferred income tax expense (benefit): Origination and reversal of temporary difference and usage (accrual) of tax carryforward benefits 1,281 (157) (190) Total Income tax 5,496 5,458 6,909 |
Schedule of income tax reconciliation | 2017 2018 2019 Profit before tax 24,174 24,814 27,290 Income tax at 30% 7,252 7,444 8,187 Increase/(Decrease) due to permanent differences Of which: Due to effect of inflation (1,742) (1,542) (890) Due to effect of tangible assets (78) (76) 19 Due to effect of non-deductible expenses, non-taxable income and others 64 (368) (407) Income Tax 5,496 5,458 6,909 Effective tax rate 22.74 % 22.00 % 25.32 % Current tax liability — — — Income tax 5,496 5,458 6,909 Of which: Current 4,215 5,615 7,099 Deferred 1,281 (157) (190) |
Schedule of tax recognized in equity | 2017 2018 2019 Net tax credited/(charged) to consolidated equity: Remeasurement of defined benefit obligation (200) (64) 462 Measurement of Available-for-sale - Debt instruments (478) — — Measurement of Available-for-sale - Equity instruments 1 — — Measurement of Financial assets at fair value through other comprehensive income - Debt instruments — 371 (980) Measurement of financial derivatives (Cash flow hedges) 440 276 (6) Paid interests on Subordinated Additional Tier I Capital Notes 191 254 255 Income tax from sale of the Custody business — 255 — (46) 1,092 (269) |
Schedule of components of gross deferred tax assets and liabilities | 12/31/2018 12/31/2019 Total deferred tax assets prior to offsetting 20,791 20,757 Of which: Tangible assets and deferred charges 1,984 2,050 Provisions 2,295 2,268 Impairment losses on financial assets at amortized cost 10,057 10,010 Capital losses carryforward(*) 2,683 2,708 Labor provisions 1,135 1,435 Fees and interest collected in advance 1,060 995 Foreign exchange rate financial derivatives 1,577 1,291 Total deferred tax liabilities prior to offsetting (3,304) (3,461) Of which: Unrealized gains on financial instruments (2,729) (2,816) Prepayments (355) (347) Other (220) (298) (*) |
Schedule of capital losses carryforward | As of December 31, 2019, the detail of capital losses carryforward is as follows: Year of origination Year of expiration Amount Deferred tax asset 2016 2026 140 43 2017 2027 3,025 907 2018 2028 3,297 989 2019 2029 2,562 769 9,024 2,708 |
Schedule of deferred tax assets and liabilities on balance sheet | 12/31/2018 12/31/2019 Presented as deferred tax assets ( * ) 17,574 17,401 Presented as deferred tax liabilities (87) (105) Net 17,487 17,296 (*) |
Schedule of changes in deferred tax assets and liabilities | (Charge)/ Credit to Consolidated (Charge)/ Credit to Other Consolidated Comprehensive Other 01/01/2018 Income Income Movements 12/31/2018 Deferred tax assets 17,184 2,882 725 — 20,791 Deferred tax liabilities (635) (2,725) 14 42 (3,304) 16,549 157 739 42 17,487 (Charge)/ Credit to Consolidated (Charge)/ Credit to Other Consolidated Comprehensive Other 01/01/2019 Income Income Movements 12/31/2019 Deferred tax assets 20,791 881 (915) — 20,757 Deferred tax liabilities (3,304) (691) 462 72 (3,461) 17,487 190 (453) 72 17,296 |
Non-controlling interests (Tabl
Non-controlling interests (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Non-controlling interests | |
Schedule of subsidiary of Equity - Non-controlling interests | 12/31/2018 12/31/2019 Equity as of balance-sheet date attributable to non-controlling interests: Of which: Fideicomiso GFSSLPT, Banco Santander México, S.A. 17 27 Other 15 13 32 40 Profit for the year attributable to non-controlling interests: Of which: Fideicomiso GFSSLPT, Banco Santander México, S.A. 3 — |
Schedule of changes in Non-controlling interests | 2018 2019 Beginning balance 29 32 Profit for the year attributable to non-controlling interests 3 — Other — 8 Balance at year-end 32 40 |
Valuation adjustments (Tables)
Valuation adjustments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Valuation adjustments | |
Schedule of breakdown by type of financial instrument of Valuation adjustments - Available-for-sale financial assets | 12/31/2018 12/31/2019 Net Net Valuation Valuation Valuation Valuation Gains/ Fair Valuation Valuation Gains/ Fair Gains Losses (Losses) Value Gains Losses (Losses) Value Debt instruments 930 (2,156) (1,226) 154,483 4,266 (158) 4,108 233,463 Loans and advances to customers — — — 771 — — — 2,875 Equity instruments — (13) (13) 535 111 (4) 107 642 |
Schedule of changes in the cumulative valuation adjustments recorded to Available-for-sale financial assets | Debt Equity Instruments Instruments Total Balance at January 1, 2018 109 (28) 81 Recognition of valuation adjustment of own equity instruments held for future equity-settled share-based payments (Note 3.4) — 17 17 Valuation adjustments (1,226) (13) (1,239) Amounts reclassified to consolidated income statement 69 — 69 Allowance for impairment losses 2 — 2 Income taxes 371 4 375 Balance at December 31, 2018 (675) (20) (695) Valuation adjustments 4,108 107 4,215 Amounts reclassified to consolidated income statement (189) — (189) Allowance for impairment losses — — — Income taxes (980) (32) (1,012) Balance at December 31, 2019 2,264 55 2,319 |
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 | 2018 2019 Accumulated (loss)/gain on cash flow hedges (315) (293) Accumulated gain related to discontinued cash flow hedges (Note 12) 25 17 Balance at December 31, (290) (276) |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Shareholders' equity | |
Share capital | Total Par Value Number of shares (Millions of Pesos) 12/31/2018 12/31/2019 12/31/2018 12/31/2019 Fixed capital: Series F shares 3,464,309,145 13,098 13,098 Series B shares 12,562 12,562 6,786,994,357 6,786,994,357 25,660 25,660 Authorized unsubscribed capital: Series F shares 331,811,068 331,811,068 — — Series B shares 318,188,932 318,188,932 — — 650,000,000 650,000,000 — — 7,436,994,357 7,436,994,357 25,660 25,660 |
Schedule of shareholder structure | Prior to exchange offer After exchange offer Banco Santander (Spain) Minority shareholders |
Schedule of disclosure of transactions performed as part of corporate restructuring process | Profit Total Shareholders’ Share Share Accumulated Attributable Valuation Equity Attributable Non-Controlling Total Capital Premium Reserves to the Parent Adjustments to the Parent Interests Equity As of January 1, 2018 8,086 16,956 72,838 18,678 (1,177) 115,381 29 115,410 Amounts recognized from merger of entities — — 83 — — 83 — 83 Capitalization of share premium and accumulated reserves 17,574 (16,956) (618) — — — — — Recognition of equity-settled share-based payments — — 319 — 17 336 — 336 Effect on sale of the Brokerage House, net of income tax — — (19) — — (19) — (19) As of January 1, 2018 after Corporate Restructuring 25,660 — 72,603 18,678 (1,160) 115,781 29 115,810 |
Minimum capital requirements (T
Minimum capital requirements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum capital requirements | |
Schedule of minimum capital requirements calculated in accordance with the Mexican Banking GAAP for the Bank | 12/31/2018 12/31/2019 Computable capital: 121,454 125,083 Core capital 125,621 138,371 Supplementary capital 27,419 24,847 Deductible items (41,395) (47,555) Subordinated Additional Tier I Capital Notes (see Note 21.c) 9,809 9,420 Capital requirements: 61,054 61,127 Market risk 14,280 13,988 Credit risk 42,732 42,922 Operational risk 4,042 4,217 Excess of capital requirements 60,400 63,956 Risk-weighted assets 763,170 764,093 |
Schedule of capital ratios in accordance to the data published by the CNBV | 12/31/2018 12/31/2019 Net Capital / Required Capital 1.99 2.05 Minimum capital requirements Not applicable Not applicable Basic Fundamental Capital / Assets subject to Credit, Market and Operating Risk 11.04 % 11.89 % Minimum capital requirements 7.90 % 8.20 % Basic Capital / Assets subject to Credit, Market and Operating Risk 12.32 % 13.12 % Minimum capital requirements 9.40 % 9.70 % Net Capital / Assets subject to Credit Risk 22.74 % 23.31 % Minimum capital requirements Not applicable Not applicable Net Capital / Assets subject to Credit, Market and Operating Risk 15.91 % 16.37 % Minimum capital requirements 11.40 % 11.70 % |
Memorandum accounts (Tables)
Memorandum accounts (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Memorandum accounts | |
Schedule of contingent commitments | Contingent commitments 12/31/2018 12/31/2019 Available lines of credit cards and non-revolving consumer loans 144,006 136,405 Guarantees, documentary credits and loan commitments of commercial and public sector loans 94,014 79,950 Guarantees, documentary credits and loan commitments of commercial loans (SMEs) 253 219 Total 238,273 216,574 |
Schedule of commitments by stages | As of December 31, 2019, the breakdown of the carrying amount of the contingent commitments by stages is as follows: Carrying amount Stage 1 Stage 2 Stage 3 Total Available lines of credit cards and non-revolving consumer loans 135,974 312 119 136,405 Guarantees, documentary credits and loan commitments of commercial and public sector loans 79,572 378 — 79,950 Guarantees, documentary credits and loan commitments of commercial loans (SMEs) 219 — — 219 Total 215,765 690 119 216,574 |
Schedule of of financial instruments received as collateral | Financial instruments received as collateral 12/31/2018 12/31/2019 Debt instruments received in OTC financial derivatives transactions 4,044 5,736 Debt instruments received in reverse repurchase agreement transactions 107,560 76,592 Equity instruments received in securities loan transactions 333 14 Total 111,937 82,342 |
Derivatives - Nominal amounts_2
Derivatives - Nominal amounts and fair values of trading and hedging derivatives (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial instruments in connection with derivative transactions in organized markets | |
Financial instruments | |
Schedule of collateral provided/delivered | 12/31/2018 12/31/2019 Collateral provided: Of which: Mercado Mexicano de Derivados, S.A. de C.V. (MexDer) Cash 2,093 3,865 Chicago Mercantile Exchange Cash 1,297 1,286 Foreign financial institutions Cash 299 2 3,689 5,153 |
Financial instrument in connection with OTC derivative transactions | |
Financial instruments | |
Schedule of collateral provided/delivered | 12/31/2018 12/31/2019 Financial assets at amortized cost - Loans and advances to credit institutions: Of which (Note 7): Mexican financial institutions Cash 20,597 7,536 Foreign financial institutions Cash 8,911 6,764 29,508 14,300 Financial assets at fair value through profit or loss - Debt instruments: Of which (Note 8): Mexican financial institutions Bonds 4,438 3,121 Foreign financial institutions (*) Bonds 1,796 1,351 6,234 4,472 |
Schedule of collateral received | 12/31/2018 12/31/2019 Deposits from credit institutions and Customer deposits: Of which (Notes 19 and 20): Mexican financial institutions Cash 5,288 5,174 Foreign financial institutions Cash 37,192 11,527 Other Cash — 58 42,480 16,759 12/31/2018 12/31/2019 Memorandum accounts: Of which (Note 31): Mexican financial institutions Bonds 4,044 5,736 4,044 5,736 |
Trading derivative liabilities | |
Financial instruments | |
Schedule of breakdown of the fair value and nominal amount of trading derivatives | 12/31/2018 12/31/2019 Trading Nominal Fair Value Nominal Fair Value Futures: Foreign Currency Futures 5,735 — 14,202 — Interest Rate Futures — — — — Market Index Futures 462 — 79 — Forwards: Foreign Currency Forwards 237,127 5,988 199,493 6,551 Foreign Exchange (Spot) 41,423 110 36,973 73 Market Index Forwards 11,768 839 651 6 Options: Foreign Currency Options 87,616 1,504 57,808 1,606 Interest Rate Options 142,477 971 140,813 474 Market Index Options 4,141 303 1,122 201 Equity Options 117 5 — — Swaps: IRS 2,795,454 70,607 3,296,209 76,165 Equity Swaps — 16 — 12 CCS 395,656 73,384 385,855 59,393 Total Trading 3,721,976 153,727 4,133,205 144,481 |
Hedging derivative liabilities | |
Financial instruments | |
Schedule of breakdown of the fair value and nominal amount of trading derivatives | 12/31/2018 12/31/2019 Hedging Nominal Fair Value Nominal Fair Value Cash flow hedge: IRS — — 11,311 118 CCS 10,289 2,912 10,704 1,690 Foreign Currency Forwards 14,041 345 10,698 409 Fair value hedge: IRS 1,200 14 3,600 246 CCS 28,489 5,122 31,874 5,060 Total Hedging 54,019 8,393 68,187 7,523 Total Financial Derivatives Liability 3,775,995 162,120 4,201,392 152,004 |
Trading derivative assets | |
Financial instruments | |
Schedule of breakdown of the fair value and nominal amount of trading derivatives | 12/31/2018 12/31/2019 Trading Nominal Fair Value Nominal Fair Value Futures: Foreign Currency Futures 2,537 — — — Interest Rate Futures — — — — Market Index Futures 426 — 4,144 — Forwards: Foreign Currency Forwards 237,777 7,127 209,085 8,769 Foreign Exchange (Spot) 62,701 80 18,630 32 Interest Rate Forwards — — — — Equity Forwards 11,770 936 341 — Options: Foreign Currency Options 87,711 1,236 50,940 1,052 Interest Rate Options 132,484 1,450 111,940 421 Market Index Options 2,950 67 1,828 212 Equity Options 148 3 43 — Swaps: IRS 2,803,464 69,819 3,353,662 80,078 Equity Swaps 1,008 59 628 10 CCS 435,698 74,176 442,402 61,173 Total Trading 3,778,674 154,953 4,193,643 151,747 |
Hedging derivative assets | |
Financial instruments | |
Schedule of breakdown of the fair value and nominal amount of trading derivatives | 12/31/2018 12/31/2019 Hedging Nominal Fair Value Nominal Fair Value Cash flow hedge: IRS 4,000 111 — — CCS 13,609 4,798 11,177 3,843 Foreign Currency Forwards 59,619 4,174 59,417 4,488 Fair value hedge: IRS 8,416 157 53,882 719 CCS 1,492 45 3,868 206 Total Hedging 87,136 9,285 128,344 9,256 Total Financial Derivatives Asset 164,238 161,003 |
Interest income (Tables)
Interest income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Interest income | |
Schedule of the main interest income | 2017 2018 2019 Cash and balances with the Central Bank 2,081 2,361 2,456 Loans and advances to credit institutions 4,804 2,178 2,839 Loans and advances to customers 89,894 Debt instruments 9,925 Hedging financial derivatives 1,895 2,858 3,541 Other interest income 168 125 191 |
Interest income from financia_2
Interest income from financial assets at fair value through profit or loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Interest income from financial assets at fair value through profit or loss | |
Schedule of main interest income from financial assets at fair value through profit or loss | 2017 2018 2019 Loans and advances to credit institutions — 5,981 6,306 Loans and advances to customers — 518 1,742 Debt instruments — 7,550 7,336 — 14,049 15,384 |
Interest expenses and similar_2
Interest expenses and similar charges (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Interest expenses and similar charges | |
Schedule of the main items of interest expenses and similar charges | 2017 2018 2019 Deposits from credit institutions 7,564 7,420 9,041 Customer deposits 24,560 31,913 35,036 Marketable debt securities 3,696 4,244 5,398 Subordinated liabilities 1,600 1,610 1,597 Hedging financial derivatives 129 108 222 Other interest expenses 4,609 6,294 6,780 42,158 51,589 58,074 |
Dividend income (Tables)
Dividend income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Dividend income | |
Schedule of Dividend income | 2017 2018 2019 Equity instruments classified as: Financial assets held for trading 5 — — Of which: NAFTRAC (Exchange-traded fund or ETF) 2 — — América Móvil, S.A.B, de C.V. 1 — — Wal-Mart de México, S.A.B. de C.V. 1 — — Others 1 — — Financial assets at fair value through profit or loss — 33 44 Of which: NAFTRAC (Exchange-traded fund or ETF) — 18 36 Grupo Cementos de Chihuahua, S.A.B. de C.V. — 11 7 América Móvil, S.A.B, de C.V. — 1 — Grupo México, S.A.B. de C.V. — 1 — Wal-Mart de México, S.A.B. de C.V. — 1 1 Others — 1 — Available-for-sale financial assets 145 — — Of which: Controladora Prosa, S.A. de C.V. 62 — — Trans Unión de México, S.A. 83 — — Financial assets at fair value through other comprehensive income — 177 191 Of which: Controladora Prosa, S.A. de C.V. — 50 54 Trans Unión de México, S.A. — 88 93 Bolsa Mexicana de Valores, S.A.B. de C.V. — 21 25 Dun & Bradstreet de México, S.A. de C.V. — 17 18 Others — 1 1 150 210 235 |
Fee and commission income (Tabl
Fee and commission income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fee and commission income | |
Schedule of fee and commission income | 2017 2018 2019 Collection and payment services: Service charges on deposit accounts 1,046 1,217 1,438 Credit and debit cards 6,268 7,398 8,757 Checks and others 252 240 243 7,566 8,855 10,438 Marketing of nonbanking financial products: Investment funds management 1,457 1,569 1,568 Capital markets and securities activities 513 738 558 Collection and payment services 2,568 2,832 2,923 Insurance 4,341 4,575 5,038 Financial advisory services 1,341 1,212 1,207 10,220 10,926 11,294 Securities services: Administration and custody 524 368 347 524 368 347 Other: Foreign currency transactions 1,111 1,255 1,287 Other fees and commissions 895 892 952 2,006 2,147 2,239 20,316 22,296 24,318 |
Fee and commission expenses (Ta
Fee and commission expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fee and commission expenses | |
Schedule of fee and commission expense | 2017 2018 2019 Credit and debit cards 3,250 3,680 4,095 Checks and others 25 26 31 Collections and transactional services 226 287 312 Fund management 2 1 1 Capital markets and securities activities 199 189 238 Financial advisory services 6 13 6 Correspondent services 465 614 723 Other fees and commissions 1,330 1,764 2,488 5,503 6,574 7,894 |
Gains_(losses) on financial a_2
Gains/(losses) on financial assets and liabilities (net) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Gains or losses on financial assets and liabilities (net) | |
Summary of Gains/(losses) on financial assets and liabilities (net) | 2017 2018 2019 Financial instruments held for trading 3,223 — — Of which: Debt instruments 494 — — Equity instruments 29 — — Derivatives 2,736 — — Others (36) — — Financial instruments at fair value through profit or loss — 1,687 2,709 Of which: Debt instruments — 166 260 Equity instruments — 35 71 Derivatives — 1,482 2,459 Others — 4 (81) Recognized profit from sale of available-for-sale financial instruments 9 (69) 85 Hedging derivatives 226 (134) 60 Of which: Fair value hedge - hedged items (Note 12) 341 (606) 731 Fair value hedge - hedging derivative instruments (Note 12) (117) 474 (667) Cash flow hedge inefficiency (Note 12) 2 (2) (4) 3,458 1,484 2,854 |
Other operating income and ot_2
Other operating income and other operating expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other operating income and other operating expenses | |
Schedule of other operating income and other operating expenses | 2017 2018 2019 Other operating income: Other operating income 669 748 1,553 669 748 1,553 Other operating expenses: IPAB fund contribution (2,894) (3,134) (3,353) Other operating expenses (720) (1,259) (1,792) (3,614) (4,393) (5,145) |
Personnel expenses (Tables)
Personnel expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Personnel expenses | |
Schedule of detail of personnel expenses | 2017 2018 2019 Wages and salaries 6,300 7,274 7,740 Social security costs 1,105 1,283 1,443 Service expense related to defined contribution pension plan (Note 24) 330 373 410 Service expense related to defined benefit pension plan (Note 24) 146 157 147 Share-based payments 283 161 226 Bonus and benefits granted to employees 3,295 3,691 4,017 Other staff costs 1,289 1,415 1,445 |
Schedule of bonus payment percentages and deferral periods | Beneficiaries Immediate Payment (millions of Euros) Percentage Deferred Percentage Deferred period Members of the Identified Staff with total variable remuneration ≥ 2.7 40 % 60 % 5 years 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 _2
Other general administrative expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other general administrative expenses | |
Schedule of Other general administrative expenses | 2017 2018 2019 Maintenance, conservation and repair 1,227 646 738 Information technology and systems 2,790 4,820 3,851 Stationery and supplies 215 227 150 Advertising and communications 968 890 965 Rents 1,963 1,120 653 Administrative services 936 503 1,737 Taxes other than income tax 1,454 1,820 2,037 Surveillance and cash courier services 894 979 1,248 Insurance premiums 78 75 95 Travel costs 293 364 325 Other administrative expenses 1,871 2,851 2,031 12,689 14,295 13,830 |
Schedule of audit and tax services | 2017 2018 2019 Audit fees and audit-related fees (*) 72 88 103 Tax fees 1 1 — 73 89 103 (*) |
Gains_(losses) on disposal of_2
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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) | 2017 2018 2019 Gains: On disposal of tangible assets 6 7 16 6 7 16 |
Other disclosures (Tables)
Other disclosures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018, is as follows: 12/31/2018 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 25,080 2,136 — — — — 28,094 55,310 Financial assets at fair value through profit or loss Debt instruments 17,102 3,200 27,649 26,266 18,605 17,400 110,222 Equity instruments 2,349 — — — — — — 2,349 Trading derivatives 466 599 6,268 9,782 25,090 36,633 76,115 154,953 Other financial assets at fair value through profit or loss Loans and advances to credit institutions - Reverse repurchase agreements — 98,332 — — — — — 98,332 Loans and advances to customers - Reverse repurchase agreements — 9,093 — — — — — 9,093 Financial assets at fair value through other comprehensive income Loans and advances to customers — 7 13 58 155 155 383 771 Debt instruments — 48,280 1,961 3,304 60,140 10,716 30,082 154,483 Equity instruments — — — — — — 535 535 Financial assets at amortized cost Loans and advances to credit institutions — 47,034 — — — — — 47,034 Loans and advances to customers 9,257 42,431 68,276 139,392 180,792 88,697 137,927 666,772 Debt instruments — — — 41,426 — 1,485 9,508 52,419 Hedging derivatives — 2,332 — 186 2,046 4,677 44 9,285 37,152 267,346 79,718 221,797 294,489 160,968 300,088 1,361,558 Liabilities: Financial liabilities at fair value through profit or loss Trading derivatives 220 1,978 4,796 13,137 24,660 35,900 73,036 153,727 Short positions — 28,919 — — — — — 28,919 Other financial liabilities at fair value through profit or loss Deposits from the Central Bank — 30,995 — — — — — 30,995 Deposits from credit institutions — 13,801 — — — — — 13,801 Customer deposits — 128,719 — — — — — 128,719 Marketable debt securities — 3,191 182 1,063 314 — — 4,750 Financial liabilities at amortized cost Deposits from credit institutions 17,644 46,869 5,776 6,347 11,219 4,488 2,506 94,849 Customer deposits 443,660 115,779 33,999 44,727 3,685 3,565 674 646,089 Marketable debt securities — 30,249 7,375 21,437 12,200 23,936 3,115 98,312 Subordinated liabilities 413 36,815 37,228 Other financial liabilities 12 7,376 3,638 1,944 834 2 — 13,806 Hedging derivatives — 39 39 416 1,460 2,350 4,089 8,393 461,536 408,328 89,071 54,372 70,241 120,235 Difference (assets less liabilities) 23,913 132,726 240,117 90,727 179,853 101,970 The breakdown by maturity of the balances of certain items in the consolidated balance sheets as of December 31, 2019, is as follows: 12/31/2019 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 25,793 11,320 — — — — 28,094 65,207 Financial assets at fair value through profit or loss Debt instruments — 6,917 40,045 26,379 15,864 2,935 110,613 Equity instruments 5,767 — — — — — — 5,767 Trading derivatives 394 3,552 3,220 10,682 28,308 34,350 71,241 151,747 Other financial assets at fair value through profit or loss Loans and advances to credit institutions - Reverse repurchase agreements — 54,138 — — — — — 54,138 Loans and advances to customers - Reverse repurchase agreements — 25,789 — — — — — 25,789 Financial assets at fair value through other comprehensive income Loans and advances to customers — 71 71 713 571 1,449 — 2,875 Debt instruments — 31,817 — 4,713 59,836 54,636 82,461 233,463 Equity instruments — — — — — — 642 642 Financial assets at amortized cost Loans and advances to credit institutions — 36,895 — — — — — 36,895 Loans and advances to customers 8,930 72,144 67,861 127,842 196,079 81,576 145,239 699,671 Debt instruments — — — — 1,607 — 9,650 11,257 Hedging derivatives — 1,906 192 304 5,658 758 438 9,256 40,884 244,549 89,817 184,299 1,407,320 Liabilities: Financial liabilities at fair value through profit or loss Trading derivatives 395 3,183 3,457 11,185 25,521 36,303 64,437 144,481 Short positions — 8,280 47 — — — 792 9,119 Other financial liabilities at fair value through profit or loss Deposits from the Central Bank — 111,574 — — — — — 111,574 Deposits from credit institutions — 29,689 — — — — — 29,689 Customer deposits — 128,634 582 — — — — 129,216 Marketable debt securities — — 263 2,119 864 — — 3,246 Financial liabilities at amortized cost Deposits from credit institutions 28,338 22,934 8,580 1,134 10,374 57 1,552 72,969 Customer deposits 424,563 106,523 54,805 3,858 3,032 762 630,055 Marketable debt securities — 19,412 36,430 31,755 — 10,150 111,211 Subordinated liabilities — — 365 — — — 33,902 34,267 Other financial liabilities 49 9,722 1,079 4,765 149 — — 15,764 Hedging derivatives — 1 8 897 488 1,885 4,244 7,523 453,345 439,952 64,357 73,009 41,277 1,299,114 Difference (assets less liabilities) (412,461) (195,403) 25,460 72,964 147,356 224,861 108,206 |
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, 2018, is as follows: 12/31/2018 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 17,644 47,340 6,320 8,176 13,969 5,545 4,966 103,960 Customer deposits 443,660 116,799 35,325 48,013 4,858 4,205 1,081 653,941 Marketable debt securities — 30,795 8,512 25,493 17,446 27,551 4,156 113,953 Subordinated liabilities — 616 407 1,831 4,882 4,882 50,625 63,243 Other financial liabilities 12 7,376 3,638 1,944 834 2 — 13,806 461,316 202,926 54,202 85,457 41,989 42,185 60,828 948,903 The detail of the undiscounted contractual maturities of the existing financial liabilities at amortized cost as of December 31, 2019, is as follows: 12/31/2019 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 28,338 23,211 8,991 2,142 12,218 305 3,106 78,311 Customer deposits 38,195 59,092 5,015 3,616 1,233 639,395 Marketable debt securities — 20,071 15,096 42,001 37,716 1,444 13,759 130,087 Subordinated liabilities — 188 376 1,694 4,514 4,514 46,646 57,932 Other financial liabilities 49 9,722 1,079 4,765 149 — — 15,764 160,873 63,737 109,694 59,612 9,879 64,744 921,489 |
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 12/31/2018 12/31/2019 Assets Liabilities Assets Liabilities Cash and balances with the Central Bank 3,637 — 4,254 — Debt instruments (Note 8) 89,872 — — Loans and advances to credit institutions (Note 7) 44,957 — 17,765 — Loans and advances to customers 70,957 — 68,653 — Other assets 628 — 2,701 — Marketable debt securities (Note 21) — 26,987 — Subordinated liabilities — 37,268 — Derivatives — 27,924 — Deposits from credit institutions (Note 19) — 13,806 — Customer deposits (Note 20) — — Other financial liabilities — 2,752 — 1,306 Other liabilities — 1,501 — 1,942 |
Schedule of Financial assets measured at other than fair value | As of December 31, 2018: Total fair Total Assets Level 1 Level 2 Level 3 values carrying amount Financial assets at amortized cost: Balances with the Central Bank (Note 6) 30,230 — — 30,230 30,230 Loans and advances to credit institutions (Note 7) — 28,839 18,163 47,002 47,034 Loans and advances to customers (Note 11) — 6,339 635,342 641,681 666,772 Debt instruments (unlisted) (Note 8) 40,063 11,030 — 51,093 52,419 As of December 31, 2019: Total fair Total Assets Level 1 Level 2 Level 3 values carrying amount Financial assets at amortized cost: Balances with the Central Bank (Note 6) — — 39,417 39,414 Loans and advances to credit institutions (Note 7) — 15,146 36,762 36,895 Loans and advances to customers (Note 11) — 2,892 727,334 730,226 699,671 Debt instruments (unlisted) (Note 8) — — 11,257 11,257 |
Schedule of Financial liabilities measured at other than fair value | As of December 31, 2018: Total fair Total Liabilities Level 1 Level 2 Level 3 values carrying amount Financial liabilities at amortized cost: Deposits from credit institutions (Note 19) — 89,298 3,999 93,297 94,849 Customer deposits (Note 20) — — 646,089 Marketable debt securities (Note 21) — — 98,053 98,312 Subordinated liabilities (Note 22) — — 37,609 37,228 Other financial liabilities (Note 23) — — 13,804 13,806 As of December 31, 2019: Total fair Total Liabilities Level 1 Level 2 Level 3 values carrying amount Financial liabilities at amortized cost: Deposits from credit institutions (Note 19) — 65,382 7,272 72,654 72,969 Customer deposits (Note 20) — — 630,055 Marketable debt securities (Note 21) — — 111,211 Subordinated liabilities (Note 22) — — 36,555 34,267 Other financial liabilities (Note 23) 15,760 — — 15,760 15,764 |
Operating segments (Tables)
Operating segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Operating segments | |
Schedule of consolidated income statement and other significant data | The 2017 consolidated income statement and other significant data are as follows: Corporate Retail and Investment 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 531,295 Total liabilities 521,284 The 2018 consolidated income statement and other significant data are as follows: Corporate Retail and Investment Corporate 2018 Banking Banking Activities Total Net interest income 54,005 6,121 1,871 61,997 Dividend income — 34 176 210 Net fee and commission income 14,181 1,700 (159) 15,722 Gains/(losses) on financial assets and liabilities and exchange differences (net) 1,086 689 (291) 1,484 Other operating income/(expenses) (2,561) (672) (412) (3,645) Total income 66,711 7,872 1,185 75,768 Administrative expenses (24,574) (3,530) (545) (28,649) Depreciation and amortization (2,769) (200) (4) (2,973) Impairment losses on financial assets not at fair value through profit or loss (net) (17,813) (997) — (18,810) Impairment losses on other assets (net) — — (5) (5) Provisions (net) 178 10 (750) (562) 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) — — 38 38 Operating profit before tax 21,733 3,155 (74) 24,814 Income tax (5,458) Profit for the year 19,356 Profit attributable to the Parent 19,353 Profit attributable to non-controlling interest 3 Total assets 599,270 547,006 262,448 1,408,724 Total liabilities 567,829 486,372 231,236 1,285,437 The 2019 consolidated income statement and other significant data are as follows: Global Retail Corporate Corporate 2019 Banking Banking Activities Total Net interest income 59,008 6,638 510 66,156 Dividend income — 44 191 235 Net fee and commission income 15,014 1,596 (186) 16,424 Gains/(losses) on financial assets and liabilities and exchange differences (net) 1,155 1,417 282 2,854 Other operating income/(expenses) (2,389) (690) (513) (3,592) Total income 72,788 9,005 284 82,077 Administrative expenses (25,064) (3,604) (590) (29,258) Depreciation and amortization (4,827) (381) (14) (5,222) Impairment losses on financial assets not at fair value through profit or loss (net) (18,986) (234) — (19,220) Impairment losses on other assets (net) (370) — — (370) Provisions (net) (165) (1) (609) (775) Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) — — 16 16 Gains/(losses) on disposal of non-current assets not classified as discontinued operations (net) — — 42 42 Operating profit before tax 23,376 4,785 (871) 27,290 Income tax (6,909) Profit for the year 20,381 Profit attributable to the Parent 20,381 Profit attributable to non-controlling interest — Total assets Total liabilities |
Related-party transactions (Tab
Related-party transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related-party transactions | |
Schedule of related party transactions | 12/31/2018 12/31/2019 Ultimate Santander Ultimate Santander Parent Group Parent Group Company Companies Company Companies ASSETS: Financial assets at fair value through profit or loss - Trading derivatives - Of which - Banco Santander, S.A. (Spain) 69,178 — 60,737 — Banco Santander (Chile) — — — 138 Other — 9 — — Other financial assets at fair value through profit or loss - Loans and advances to credit institutions - Of which - Banco Santander, S.A. (Spain) 13,127 — — — Loans and advances to customers - Of which - Casa de Bolsa Santander, S.A. de C.V. — 2,178 — 1,915 Financial assets at amortized cost - Loans and advances to credit institutions - Of which - Banco Santander, S.A. (Spain) 3,472 — 11,334 — Loans and advances to customers - Of which - Santander Capital Structuring, S.A. de C.V. — 1,296 — 2,204 Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informáticos Generales, S.L.) — 1,745 — 1,687 Key management personnel — 2,430 — 2,992 Other intangible assets - Of which - Santander Tecnología México, S.A. de C.V. (formerly Isban México, S.A. de C.V.) — 3,403 — 4,120 Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informáticos Generales, S.L.) — 864 — 809 Santander Back-Offices Globales Mayoristas, S.A. — 78 — 78 Santander Brasil Tecnologia, S.A (formerly Isban Brasil, S.A.) — 11 — 11 Other assets - Of which - Santander Digital Assets, SL — — — 53 Zurich Santander Seguros México, S.A. — 1,108 — 1,278 SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversión — 153 — 163 Other — 63 — 65 12/31/2018 12/31/2019 Ultimate Santander Ultimate Santander Parent Group Parent Group Company Companies Company Companies LIABILITIES AND EQUITY: Financial liabilities at fair value through profit or loss - Trading derivatives - Of which - Banco Santander, S.A. (Spain) 37,082 — 51,998 — Banco Santander International — 3 — — Other — 2 — — 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. — 9,270 — 5,010 Other — 17 — 18 Financial liabilities at amortized cost - Deposits from credit institutions - Of which - Banco Santander, S.A. (Spain) 34,525 — 10,598 — Banco Santander (Brazil) — — — 213 Other — 87 — 84 Subordinated liabilities - Of which - Banco Santander, S.A. (Spain) 28,109 — 26,987 — Customer deposits - Of which- Operadora de Carteras Gamma, S.A.P.I. de C.V. — 153 — 73 Grupo Financiero Santander México, S.A. de C.V. — — — 18 Santander Global Facilities, S.A. de C.V. — 335 — 411 Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — 49 — 35 Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informáticos Generales, S.L.) — 377 — 445 Santander Capital Structuring, S.A. de C.V. — 379 — 217 Other(*) — 1,350 — 1,057 Marketable debt securities - Of which - Banco Santander, S.A. (Spain) 969 — 930 — Other — 11 — 29 Other financial liabilities - Of which - Banco Santander, S.A. (Spain) 686 — 656 — Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander México — 37 — 90 Santander Global Facilities, S.A. de C.V. — 408 — 493 Other — 56 — 61 Other liabilities - Of which - Banco S3 México, S.A., Institución de Banca Múltiple — 43 — 58 Santander Back-offices Globales Mayorista, S.A. — — — 16 Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informáticos Generales, S.L.) — 128 — 972 Other — 4 — 11 (*) 2017 2018 2019 Ultimate Santander Ultimate Santander Ultimate Santander Parent Group Parent Group Parent Group Company Companies Company Companies Company Companies INCOME STATEMENT: Interest income - Of which - Banco Santander, S.A. (Spain) — — 144 — 22 — Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informáticos Generales, S.L.) — 86 — 107 — 112 Casa de Bolsa Santander, S.A. de C.V. — 95 — 127 — 91 Santander Capital Structuring, S.A. de C.V. — — — 120 — 164 Other — 93 — 1 — 1 Interest expenses and similar charges - Of which - Banco Santander, S.A. (Spain) 1,440 — 1,765 — 1,536 — Casa de Bolsa Santander, S.A. de C.V. — 1,449 — 1,824 — 669 Grupo Financiero Santander México, S.A. de C.V. — 16 — — — — Banco S3 México, S.A., Institución de Banca Múltiple — 12 — 44 — 37 Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — 7 — 7 — — Santander Global Facilities, S.A. de C.V. — 28 — 32 — 38 Santander Tecnología México, S.A. de C.V. (formerly Isban México, S.A. de C.V.) — 28 — — — — Other — 35 — 45 — 39 Fee and commission income - Of which - Banco Santander, S.A. (Spain) 7 — 6 — 12 — Santander Investment Securities Inc. — 10 — 6 — — Casa de Bolsa Santander, S.A. de C.V. — — — 292 — 115 Zurich Santander Seguros México, S.A. — 4,219 — 4,645 — 4,986 SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversión — 1,585 — 1,564 — 1,567 Other — 9 — — — 39 Fee and commission expense- Of which - Banco Santander, S.A. (Spain) 15 — 2 — 2 — Santander Global Facilities, S.A. de C.V. — 15 — — — 161 Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — — — 60 — 105 Casa de Bolsa Santander, S.A. de C.V. — — — — — 31 SAM Asset Management , S.A. de C.V., Sociedad Operadora de Fondos de Inversión — 66 — 16 — 14 Other — — — 8 — — Gains/(losses) on financial assets and liabilities (net) - Of which - Banco Santander, S.A. (Spain) (4,346) — 2,145 — (19,135) — Banco Santander (Chile) — — — — — 134 Abbey National Treasury Services plc. — (739) — 56 — — Other — 19 — 19 — 12 Other operating income Of which - Santander Global Facilities, S.A. de C.V. — 46 — 44 — 37 Santander Digital Assets, S.L. — — — — — 62 Casa de Bolsa Santander, S.A. de C.V. — 28 — 113 — 53 Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informáticos Generales, S.L.) — — — 62 — 69 Other — 10 — 29 — 44 Administrative expenses - Of which - Banco Santander, S.A. (Spain) 66 — 335 — 398 — Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informáticos Generales, S.L.) — 1,601 — 1,804 — 2,147 Santander Tecnología México, S.A. de C.V. (formerly Isban México, S.A. de C.V.) — 188 — — — — Santander Global Facilities, S.A. de C.V. — 366 — 517 — 368 Ingeniería de Software Bancario, S.L. — 165 — — — — Gesban México Servicios Administrativos Globales, S.A. de C.V. — 53 — 54 — 59 Santander Back-offices Globales Mayorista, S.A. — 61 — 47 — 49 Universia México, S.A. de C.V. — — — — — 22 Casa de Bolsa Santander, S.A. de C.V. — — — 88 — — Geoban, S.A. — 77 — 75 — 60 Aquanima México, S. de R.L. de C.V. — 45 — 53 — 71 Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — 119 — 7 — — Other — 34 — 34 — 30 |
Risk management (Table)
Risk management (Table) | 12 Months Ended |
Dec. 31, 2019 | |
Risk management | |
Schedule of distribution of interest rate risk by maturity | The table below shows in millions of pesos 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. 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 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 2018 under 700 million pesos, mainly due to the short-term repricing of the credit portfolio. At the end of December 2018, the risk consumption measured in terms of 100 basis points sensitivity of the MVE stood under 3,900 million pesos. The table below shows in millions of pesos the distribution of interest rate risk by maturity as of December 31, 2018. 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. 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 101,353 35,304 — — — 52 — — 65,997 Loans 789,010 400,172 44,475 27,446 51,727 119,014 56,923 90,388 (1,135) Trade Finance — — — — — — — — — Intragroup (226) — — — — — — — (226) Securities 351,755 59,520 11,051 8,589 44,187 58,048 13,198 30,524 126,637 Permanent 14,417 — — — — — — — 14,417 Other Assets 2,491,052 — — — — — — — 2,491,052 Total Balance Sheet Assets 3,747,361 494,996 55,526 36,035 95,914 177,114 70,121 120,912 2,696,742 Money Market (114,421) (27,386) (89) — — — — — (86,945) Deposits (636,907) (253,774) (17,801) (12,984) (91,065) (156,158) — (105,126) — Trade Finance — — — — — — — — — Intragroup — — — — — — — — — Long-Term Funding (207,327) (65,439) (6,383) (9,993) (8,361) (14,760) (60,990) (3,727) (37,675) Equity (125,813) — — — — — — — (125,813) Other Liabilities (2,527,900) — — — — — — — (2,527,900) Total Balance Sheet Liabilities (3,612,368) (346,599) (24,273) (22,977) (99,426) (170,918) (60,990) (108,853) (2,778,333) Total Balance Sheet Gap 134,993 148,397 31,253 13,058 (3,512) 6,196 9,131 12,059 (81,591) Total Off-Balance Sheet Gap (5,070) 27,072 576 (1,096) 4,739 (5,802) (3,267) (27,293) — Total Structural Gap 175,469 31,829 11,962 1,227 394 5,864 (15,234) (81,591) Accumulated Gap — 175,469 207,298 219,260 220,487 220,881 226,745 211,511 129,920 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 2019 under 1,000 million pesos, mainly due to the short-term repricing of the credit portfolio. At the end of December 2019, the risk consumption measured in terms of 100 basis points sensitivity of the MVE stood under 3,700 million pesos. The table below shows in millions of pesos the distribution of interest rate risk by maturity as of December 31, 2019. 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. 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 84,372 33,396 4,299 1,714 393 29 — — 44,540 Loans 828,076 415,078 48,155 29,078 54,722 125,650 60,560 95,727 (895) Trade Finance — — — — — — — — — Intragroup 2,391 — — — — — — — 2,391 Securities 399,818 43,227 10,226 4,405 7,133 69,280 62,236 88,523 114,790 Permanent 16,890 — — — — — — — 16,890 Other Assets 2,465,434 — — — — — — — 2,465,434 Total Balance Sheet Assets 3,796,981 491,701 62,680 35,197 62,248 194,959 122,796 184,250 2,643,150 Money Market (211,629) (105,227) (591) — — — — — (105,810) Deposits (631,480) (238,192) (25,728) (14,968) (89,071) (145,780) — (117,741) — Trade Finance — — — — — — — — — Intragroup — — — — — — — — — Long-Term Funding (207,463) (79,157) (10,176) (9,497) (11,461) (37,462) (27,899) (9,177) (22,633) Equity (138,381) — — — — — — — (138,381) Other Liabilities (2,458,248) — — — — — — — (2,458,248) Total Balance Sheet Liabilities (3,647,201) (422,576) (36,495) (24,465) (100,532) (183,242) (27,899) (126,918) (2,725,072) Total Balance Sheet Gap 149,780 69,125 26,185 10,732 (38,284) 11,717 94,897 57,332 (81,922) Total Off-Balance Sheet Gap (27,704) 93,301 1,883 (85) (3,869) (20,620) (14,927) (83,290) (99) Total Structural Gap 162,426 28,068 10,647 (42,153) (8,903) 79,970 (25,958) (82,021) Accumulated Gap — 162,426 190,494 201,141 158,988 150,085 230,055 204,097 122,076 |
Schedule of distribution of liquidity risk by maturity | The table below shows in millions of pesos 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 . 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 The table below shows in millions of pesos the distribution of the liquidity risk by maturity as of December 31, 2018. 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. 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 101,353 35,304 — — — 52 — — 65,997 Loans 894,975 63,631 77,990 77,902 117,370 262,468 126,185 170,565 (1,135) Trade Finance — — — — — — — — — Intragroup (226) — — — — — — — (226) Securities 265,639 204,594 143 1,183 42,759 1,766 3,098 11,128 968 Permanent 14,417 — — — — — — — 14,417 Other Assets 2,491,052 — — — — — — — 2,491,052 Total Balance Sheet Assets 3,767,210 303,529 78,133 79,085 160,129 264,286 129,283 181,693 2,571,073 Money Market (114,421) (27,386) (89) — — — — — (86,945) Deposits (643,226) (253,793) (20,848) (17,375) (14,367) (19,813) (11,475) (305,556) — Trade Finance — — — — — — — — — Intragroup — — — — — — — — — Long-Term Funding (214,803) (3,470) (10,517) (17,219) (29,238) (40,266) (72,295) (4,010) (37,788) Equity (125,813) — — — — — — — (125,813) Other Liabilities (2,527,900) — — — — — — — (2,527,900) Total Balance Sheet Liabilities (3,626,163) (284,649) (31,454) (34,594) (43,605) (60,079) (83,770) (309,566) (2,778,446) Total Balance Sheet Gap 141,047 18,880 46,679 44,491 116,524 204,207 45,513 (127,873) (207,373) Total Off-Balance Sheet Gap 30,927 755 108 (144) 1,637 5,657 6,293 3,781 12,838 Total Structural Gap 19,635 46,787 44,347 118,161 209,864 51,806 (124,092) (194,535) Accumulated Gap 19,635 66,422 110,769 228,930 438,794 490,600 366,508 171,973 The table below shows in millions of pesos the distribution of the liquidity risk by maturity as of December 31, 2019. 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. 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 83,423 38,853 — — — 29 — — 44,540 Loans 923,390 63,743 91,160 73,504 122,407 280,957 121,497 171,017 (895) Trade Finance — — — — — — — — — Intragroup 2,391 — — — — — — — 2,391 Securities 411,339 31,965 1,856 1,861 10,709 81,502 63,620 98,939 120,887 Permanent 16,890 — — — — — — — 16,890 Other Assets 2,465,434 — — — — — — — 2,465,434 Total Balance Sheet Assets 3,902,867 134,561 93,016 75,365 133,116 362,488 185,117 269,956 2,649,247 Money Market (210,680) (100,790) (718) (684) (2,116) (903) — — (105,470) Deposits (709,438) (238,812) (33,549) (26,289) (26,585) (62,061) (42,162) (279,979) — Trade Finance — — — — — — — — — Intragroup — — — — — — — — — Long-Term Funding (213,656) (8,851) (18,714) (23,558) (34,569) (66,566) (29,414) (9,339) (22,644) Equity (138,381) — — — — — — — (138,381) Other Liabilities (2,458,248) — — — — — — — (2,458,248) Total Balance Sheet Liabilities (3,730,403) (348,453) (52,981) (50,531) (63,270) (129,530) (71,576) (289,318) (2,724,743) Total Balance Sheet Gap 172,464 (213,892) 40,035 24,834 69,846 232,958 113,541 (19,362) (75,496) Total Off-Balance Sheet Gap 20,905 (15,134) 398 730 1,125 10,566 5,253 6,175 11,791 Total Structural Gap (229,026) 40,433 25,564 70,971 243,524 118,794 (13,187) (63,705) Accumulated Gap (229,026) (188,593) (163,029) (92,058) 151,466 270,260 257,073 193,368 |
Consolidated Subsidiaries (Tabl
Consolidated Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Consolidated Subsidiaries | |
Schedule of composition of the Bank | The subsidiaries of the Bank, all of which have been included in the consolidated financial statements as of December 31, 2019, 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., Sociedad Financiera de Objeto Múltiple, E.R. Credit card loans 99.99 % 100 % Santander Vivienda, S.A. de C.V., Sociedad Financiera de Objeto Múltiple, E.R. Mortgage loans 99.99 % 100 % Santander Inclusión Financiera, S.A. de C.V., Sociedad Financiera de Objeto Múltiple, E.R. Retail loans 99.99 % 100 % Centro de Capacitación Santander, A.C. Not-for-profit (Educational institute) 99.99 % 100 % Fideicomiso 100740 Banco Santander, S.A. 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 % Santander Tecnología México, S.A. de C.V. (formerly ISBAN México, S.A. de C.V.) Technology services 99.99 % 100 % |
Introduction, basis of presen_2
Introduction, basis of presentation of the consolidated financial statements and other information - Intro and effects of inflation (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Statement | |
Minimum three-year cumulative inflation rate for classifying economy as inflationary (as a percent) | 26.00% |
Total Shareholders' Equity Attributable to the Parent | |
Statement | |
Ownership interest (as a percent) | 91.65% |
Introduction, basis of presen_3
Introduction, basis of presentation of the consolidated financial statements and other information - Acquisition (Details) - Acquisition contract - Elavon - MXN ($) $ in Millions | Mar. 13, 2020 | Feb. 21, 2020 |
Acquisition | ||
Ownership interest (as a percent) | 49.00% | 49.00% |
Forecast | ||
Acquisition | ||
Purchase price | $ 1,600 | |
Santander Merchant Platform Solutions (SMPS), a subsidiary of Banco Santander | ||
Acquisition | ||
Ownership interest (as a percent) | 51.00% |
Accounting policies - Foreign c
Accounting policies - Foreign currency and Change in ownership interests (Details) - item | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting policies | ||
Peso/USD (Exchange rate at end of period) | 18.8642 | 19.6512 |
Accounting policies - Agreement
Accounting policies - Agreement to acquire capital stock (Details) | Mar. 13, 2020 | Feb. 21, 2020 |
Acquisition contract | Elavon | ||
Acquisition | ||
Ownership interest (as a percent) | 49.00% | 49.00% |
Accounting policies - Valuation
Accounting policies - Valuation techniques - FV of financial assets and liabilities (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial instruments | ||
Financial assets | $ 1,407,320 | $ 1,361,558 |
Financial liabilities | 1,299,114 | 1,259,588 |
Fair value | ||
Financial instruments | ||
Financial assets | 594,290 | 540,023 |
Financial liabilities | 434,848 | 369,304 |
Fair value | Level 1 | ||
Financial instruments | ||
Financial assets | 312,839 | 235,241 |
Financial liabilities | 324 | 689 |
Fair value | Level 2 and 3 | ||
Financial instruments | ||
Financial assets | 281,451 | 304,782 |
Financial liabilities | 434,524 | 368,615 |
Financial liabilities at fair value through profit or loss | Fair value | ||
Financial instruments | ||
Financial liabilities | 153,600 | 255,481 |
Financial liabilities at fair value through profit or loss | Fair value | Level 1 | ||
Financial instruments | ||
Financial liabilities | 324 | 689 |
Financial liabilities at fair value through profit or loss | Fair value | Level 2 and 3 | ||
Financial instruments | ||
Financial liabilities | 153,276 | 254,792 |
Financial liabilities designated at fair value through profit or loss | Fair value | ||
Financial instruments | ||
Financial liabilities | 273,725 | 105,430 |
Financial liabilities designated at fair value through profit or loss | Fair value | Level 2 and 3 | ||
Financial instruments | ||
Financial liabilities | 273,725 | 105,430 |
Hedging derivatives category | Fair value | ||
Financial instruments | ||
Financial liabilities | 7,523 | 8,393 |
Hedging derivatives category | Fair value | Level 2 and 3 | ||
Financial instruments | ||
Financial liabilities | 7,523 | 8,393 |
Financial assets at fair value through profit or loss category | Fair value | ||
Financial instruments | ||
Financial assets | 268,127 | 267,524 |
Financial assets at fair value through profit or loss category | Fair value | Level 1 | ||
Financial instruments | ||
Financial assets | 111,259 | 109,858 |
Financial assets at fair value through profit or loss category | Fair value | Level 2 and 3 | ||
Financial instruments | ||
Financial assets | 156,868 | 157,666 |
Financial assets designated at fair value through profit or loss | Fair value | ||
Financial instruments | ||
Financial assets | 79,927 | 107,425 |
Financial assets designated at fair value through profit or loss | Fair value | Level 2 and 3 | ||
Financial instruments | ||
Financial assets | 79,927 | 107,425 |
Financial assets at fair value through other comprehensive income category | Fair value | ||
Financial instruments | ||
Financial assets | 236,980 | 155,789 |
Financial assets at fair value through other comprehensive income category | Fair value | Level 1 | ||
Financial instruments | ||
Financial assets | 201,580 | 125,383 |
Financial assets at fair value through other comprehensive income category | Fair value | Level 2 and 3 | ||
Financial instruments | ||
Financial assets | 35,400 | 30,406 |
Hedging derivatives category | Fair value | ||
Financial instruments | ||
Financial assets | 9,256 | 9,285 |
Hedging derivatives category | Fair value | Level 2 and 3 | ||
Financial instruments | ||
Financial assets | $ 9,256 | $ 9,285 |
Accounting policies - Valuati_2
Accounting policies - Valuation assumptions and Valuation of financial instruments (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019MXN ($)item | Dec. 31, 2018MXN ($) | |
Accounting policies | ||
Option market volatility term used for valuation | 1 year | |
Option market volatility term for benchmark stock index used for valuation | 3 years | |
Interbank equilibrium interest rate (TIIE) term | 91 days | |
Payment term | 91 days | |
Interest rate swap curve term used for valuation | 28 days | |
Level 3 maturity period threshold | 20 years | |
Number of independent areas implementing process for valuation and management of financial instruments | item | 2 | |
Amount of CVA | $ 265 | $ 369 |
Amount of DVA | $ 1,321 | $ 2,026 |
Accounting policies - Levels 2
Accounting policies - Levels 2 and 3 FV Assets (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financial instruments | ||||
Financial assets | $ 1,407,320 | $ 1,361,558 | ||
Fair value | ||||
Financial instruments | ||||
Financial assets | 594,290 | 540,023 | ||
Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 277,638 | 303,217 | ||
Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | 3,813 | 1,565 | $ 251 | $ 172 |
Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 281,451 | 304,782 | ||
Debt and equity instruments | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | $ 172 | |||
Trading derivative assets | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | 938 | 794 | $ 251 | |
Debt instruments. | ||||
Financial instruments | ||||
Financial assets | 355,333 | 317,124 | ||
Equity instruments. | ||||
Financial instruments | ||||
Financial assets | 6,409 | 2,884 | ||
Loans and advances - Credit institutions | ||||
Financial instruments | ||||
Financial assets | 91,033 | 145,366 | ||
Loans and advances - Customers | ||||
Financial instruments | ||||
Financial assets | 728,335 | 676,636 | ||
Loans and advances - Customers | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | 2,875 | 771 | ||
Financial assets at fair value through profit or loss category | Fair value | ||||
Financial instruments | ||||
Financial assets | 268,127 | 267,524 | ||
Financial assets at fair value through profit or loss category | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 155,930 | 156,872 | ||
Financial assets at fair value through profit or loss category | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | 938 | 794 | ||
Financial assets at fair value through profit or loss category | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 156,868 | 157,666 | ||
Financial assets at fair value through profit or loss category | Debt and equity instruments | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 5,593 | 3,588 | ||
Financial assets at fair value through profit or loss category | Debt and equity instruments | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 5,593 | 3,588 | ||
Financial assets at fair value through profit or loss category | Interest rate options | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 421 | 1,450 | ||
Financial assets at fair value through profit or loss category | Interest rate options | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 421 | 1,450 | ||
Financial assets at fair value through profit or loss category | Market index options | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 212 | 49 | ||
Financial assets at fair value through profit or loss category | Market index options | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | 60 | |||
Financial assets at fair value through profit or loss category | Market index options | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 272 | 49 | ||
Financial assets at fair value through profit or loss category | Market index options, European options | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 2 | |||
Financial assets at fair value through profit or loss category | Market index options, European options | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 2 | |||
Financial assets at fair value through profit or loss category | Market index options, Best of options (Basket) | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 2 | |||
Financial assets at fair value through profit or loss category | Market index options, Best of options (Basket) | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 2 | |||
Financial assets at fair value through profit or loss category | Market index options, Quanto options | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 147 | 36 | ||
Financial assets at fair value through profit or loss category | Market index options, Quanto options | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | 60 | |||
Financial assets at fair value through profit or loss category | Market index options, Quanto options | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 207 | 36 | ||
Financial assets at fair value through profit or loss category | Market index options, Asian (Quanto) | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 63 | 11 | ||
Financial assets at fair value through profit or loss category | Market index options, Asian (Quanto) | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 63 | 11 | ||
Financial assets at fair value through profit or loss category | Exchange rate options | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 993 | 1,192 | ||
Financial assets at fair value through profit or loss category | Exchange rate options | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | 44 | |||
Financial assets at fair value through profit or loss category | Exchange rate options | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 993 | 1,236 | ||
Financial assets at fair value through profit or loss category | Exchange rate options, European barrier | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 1 | |||
Financial assets at fair value through profit or loss category | Exchange rate options, European barrier | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 1 | |||
Financial assets at fair value through profit or loss category | Exchange rate options, European options | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 992 | 1,192 | ||
Financial assets at fair value through profit or loss category | Exchange rate options, European options | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | 44 | |||
Financial assets at fair value through profit or loss category | Exchange rate options, European options | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 992 | 1,236 | ||
Financial assets at fair value through profit or loss category | Debt instruments. | ||||
Financial instruments | ||||
Financial assets | 110,613 | 110,222 | ||
Financial assets at fair value through profit or loss category | Equity instruments. | ||||
Financial instruments | ||||
Financial assets | 5,767 | 2,349 | ||
Financial assets at fair value through profit or loss category | Swaps | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 139,901 | 142,977 | ||
Financial assets at fair value through profit or loss category | Swaps | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | 878 | 222 | ||
Financial assets at fair value through profit or loss category | Swaps | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 140,779 | 143,199 | ||
Financial assets at fair value through profit or loss category | Index and securities futures | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 10 | 936 | ||
Financial assets at fair value through profit or loss category | Index and securities futures | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 10 | 936 | ||
Financial assets at fair value through profit or loss category | Exchange rate futures | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 8,800 | 6,680 | ||
Financial assets at fair value through profit or loss category | Exchange rate futures | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | 528 | |||
Financial assets at fair value through profit or loss category | Exchange rate futures | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 8,800 | 7,208 | ||
Financial assets designated at fair value through profit or loss | Fair value | ||||
Financial instruments | ||||
Financial assets | 79,927 | 107,425 | ||
Financial assets designated at fair value through profit or loss | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 79,927 | 107,425 | ||
Financial assets designated at fair value through profit or loss | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 79,927 | 107,425 | ||
Financial assets designated at fair value through profit or loss | Loans and advances - Credit institutions | ||||
Financial instruments | ||||
Financial assets | 54,138 | 98,332 | ||
Financial assets designated at fair value through profit or loss | Loans and advances - Credit institutions | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 54,138 | 98,332 | ||
Financial assets designated at fair value through profit or loss | Loans and advances - Credit institutions | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 54,138 | 98,332 | ||
Financial assets designated at fair value through profit or loss | Loans and advances - Customers | ||||
Financial instruments | ||||
Financial assets | 25,789 | 9,093 | ||
Financial assets designated at fair value through profit or loss | Loans and advances - Customers | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 25,789 | 9,093 | ||
Financial assets designated at fair value through profit or loss | Loans and advances - Customers | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 25,789 | 9,093 | ||
Financial assets at fair value through other comprehensive income category | Fair value | ||||
Financial instruments | ||||
Financial assets | 236,980 | 155,789 | ||
Financial assets at fair value through other comprehensive income category | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 32,525 | 29,635 | ||
Financial assets at fair value through other comprehensive income category | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | 2,875 | 771 | ||
Financial assets at fair value through other comprehensive income category | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 35,400 | 30,406 | ||
Financial assets at fair value through other comprehensive income category | Debt instruments. | ||||
Financial instruments | ||||
Financial assets | 233,463 | 154,483 | ||
Financial assets at fair value through other comprehensive income category | Debt instruments. | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 32,469 | 29,575 | ||
Financial assets at fair value through other comprehensive income category | Debt instruments. | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 32,469 | 29,575 | ||
Financial assets at fair value through other comprehensive income category | Equity instruments. | ||||
Financial instruments | ||||
Financial assets | 642 | 535 | ||
Financial assets at fair value through other comprehensive income category | Equity instruments. | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 56 | 60 | ||
Financial assets at fair value through other comprehensive income category | Equity instruments. | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 56 | 60 | ||
Financial assets at fair value through other comprehensive income category | Loans and advances - Customers | ||||
Financial instruments | ||||
Financial assets | 2,875 | 771 | ||
Financial assets at fair value through other comprehensive income category | Loans and advances - Customers | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | 2,875 | 771 | ||
Financial assets at fair value through other comprehensive income category | Loans and advances - Customers | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 2,875 | 771 | ||
Hedging derivatives category | Fair value | ||||
Financial instruments | ||||
Financial assets | 9,256 | 9,285 | ||
Hedging derivatives category | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 9,256 | 9,285 | ||
Hedging derivatives category | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 9,256 | 9,285 | ||
Hedging derivatives category | Swaps | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 4,768 | 4,174 | ||
Hedging derivatives category | Swaps | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 4,768 | 4,174 | ||
Hedging derivatives category | Exchange rate forwards | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 4,488 | 5,111 | ||
Hedging derivatives category | Exchange rate forwards | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | $ 4,488 | $ 5,111 |
Accounting policies - Levels _2
Accounting policies - Levels 2 and 3 FV Liabilities (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financial instruments | |||
Financial liabilities | $ 1,299,114 | $ 1,259,588 | |
Fair value | |||
Financial instruments | |||
Financial liabilities | 434,848 | 369,304 | |
Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 433,733 | 368,460 | |
Fair value | Level 3 | |||
Financial instruments | |||
Financial liabilities | 791 | 155 | $ 358 |
Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 434,524 | 368,615 | |
Trading derivative liabilities | Fair value | Level 3 | |||
Financial instruments | |||
Financial liabilities | 791 | 155 | 358 |
Deposits - Customers | |||
Financial instruments | |||
Financial liabilities | 759,271 | 774,808 | |
Debt instruments | |||
Financial instruments | |||
Financial liabilities | 114,457 | 103,062 | |
Financial liabilities at fair value through profit or loss | Fair value | |||
Financial instruments | |||
Financial liabilities | 153,600 | 255,481 | |
Financial liabilities at fair value through profit or loss | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 152,485 | 254,637 | |
Financial liabilities at fair value through profit or loss | Fair value | Level 3 | |||
Financial instruments | |||
Financial liabilities | 791 | 155 | |
Financial liabilities at fair value through profit or loss | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 153,276 | 254,792 | |
Financial liabilities at fair value through profit or loss | Interest rate options | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 467 | 973 | |
Financial liabilities at fair value through profit or loss | Interest rate options | Fair value | Level 3 | |||
Financial instruments | |||
Financial liabilities | 8 | ||
Financial liabilities at fair value through profit or loss | Interest rate options | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 475 | 973 | |
Financial liabilities at fair value through profit or loss | Market index options | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 81 | 179 | |
Financial liabilities at fair value through profit or loss | Market index options | Fair value | Level 3 | |||
Financial instruments | |||
Financial liabilities | 60 | ||
Financial liabilities at fair value through profit or loss | Market index options | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 141 | 179 | |
Financial liabilities at fair value through profit or loss | Market index options, European options | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 1 | 1 | |
Financial liabilities at fair value through profit or loss | Market index options, European options | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 1 | 1 | |
Financial liabilities at fair value through profit or loss | Market index options, Auto callable | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 167 | ||
Financial liabilities at fair value through profit or loss | Market index options, Auto callable | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 167 | ||
Financial liabilities at fair value through profit or loss | Market index options, Best of options (Basket) | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 1 | ||
Financial liabilities at fair value through profit or loss | Market index options, Best of options (Basket) | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 1 | ||
Financial liabilities at fair value through profit or loss | Market index options, Quanto options | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 80 | 10 | |
Financial liabilities at fair value through profit or loss | Market index options, Quanto options | Fair value | Level 3 | |||
Financial instruments | |||
Financial liabilities | 60 | ||
Financial liabilities at fair value through profit or loss | Market index options, Quanto options | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 140 | 10 | |
Financial liabilities at fair value through profit or loss | Exchange rate options | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 1,548 | 1,348 | |
Financial liabilities at fair value through profit or loss | Exchange rate options | Fair value | Level 3 | |||
Financial instruments | |||
Financial liabilities | 153 | ||
Financial liabilities at fair value through profit or loss | Exchange rate options | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 1,548 | 1,501 | |
Financial liabilities at fair value through profit or loss | Exchange rate options, European barrier | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 4 | ||
Financial liabilities at fair value through profit or loss | Exchange rate options, European barrier | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 4 | ||
Financial liabilities at fair value through profit or loss | Exchange rate options, European options | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 1,344 | 1,341 | |
Financial liabilities at fair value through profit or loss | Exchange rate options, European options | Fair value | Level 3 | |||
Financial instruments | |||
Financial liabilities | 153 | ||
Financial liabilities at fair value through profit or loss | Exchange rate options, European options | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 1,344 | 1,494 | |
Financial liabilities at fair value through profit or loss | Exchange rate options, American Barrier and Touch options | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 200 | 7 | |
Financial liabilities at fair value through profit or loss | Exchange rate options, American Barrier and Touch options | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 200 | 7 | |
Financial liabilities at fair value through profit or loss | Swaps | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 134,627 | 143,448 | |
Financial liabilities at fair value through profit or loss | Swaps | Fair value | Level 3 | |||
Financial instruments | |||
Financial liabilities | 723 | ||
Financial liabilities at fair value through profit or loss | Swaps | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 135,350 | 143,448 | |
Financial liabilities at fair value through profit or loss | Index and securities futures | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 18 | 839 | |
Financial liabilities at fair value through profit or loss | Index and securities futures | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 18 | 839 | |
Financial liabilities at fair value through profit or loss | Exchange rate futures | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 6,625 | 6,096 | |
Financial liabilities at fair value through profit or loss | Exchange rate futures | Fair value | Level 3 | |||
Financial instruments | |||
Financial liabilities | 2 | ||
Financial liabilities at fair value through profit or loss | Exchange rate futures | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 6,625 | 6,098 | |
Financial liabilities at fair value through profit or loss | Short positions | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 9,119 | 101,754 | |
Financial liabilities at fair value through profit or loss | Short positions | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 9,119 | 101,754 | |
Financial liabilities designated at fair value through profit or loss | Fair value | |||
Financial instruments | |||
Financial liabilities | 273,725 | 105,430 | |
Financial liabilities designated at fair value through profit or loss | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 273,725 | 105,430 | |
Financial liabilities designated at fair value through profit or loss | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 273,725 | 105,430 | |
Financial liabilities designated at fair value through profit or loss | Deposits - Central banks | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 111,574 | 30,995 | |
Financial liabilities designated at fair value through profit or loss | Deposits - Central banks | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 111,574 | 30,995 | |
Financial liabilities designated at fair value through profit or loss | Deposits - Credit institutions | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 29,689 | 4,316 | |
Financial liabilities designated at fair value through profit or loss | Deposits - Credit institutions | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 29,689 | 4,316 | |
Financial liabilities designated at fair value through profit or loss | Customer deposits - Repurchase agreements | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 129,216 | 65,369 | |
Financial liabilities designated at fair value through profit or loss | Customer deposits - Repurchase agreements | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 129,216 | 65,369 | |
Financial liabilities designated at fair value through profit or loss | Debt instruments | |||
Financial instruments | |||
Financial liabilities | 3,246 | 4,750 | $ 10,504 |
Financial liabilities designated at fair value through profit or loss | Debt instruments | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 3,246 | 4,750 | |
Financial liabilities designated at fair value through profit or loss | Debt instruments | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 3,246 | 4,750 | |
Hedging derivatives category | Fair value | |||
Financial instruments | |||
Financial liabilities | 7,523 | 8,393 | |
Hedging derivatives category | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 7,523 | 8,393 | |
Hedging derivatives category | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 7,523 | 8,393 | |
Hedging derivatives category | Swaps | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 7,114 | 8,047 | |
Hedging derivatives category | Swaps | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 7,114 | 8,047 | |
Hedging derivatives category | Exchange rate forwards | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 409 | 346 | |
Hedging derivatives category | Exchange rate forwards | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | $ 409 | $ 346 |
Accounting policies - Financial
Accounting policies - Financial instruments categorized in Level 3 (Details) € in Millions, $ in Millions, $ in Millions, in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2018USD ($)loan | Dec. 31, 2018USD ($)item | Dec. 31, 2019MXV ( )item | Dec. 31, 2018USD ($)item | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) | |
Financial instruments | ||||||||
Level 3 maturity period threshold | 20 years | |||||||
Level 3 | ||||||||
Financial instruments | ||||||||
Maturity period | 20 years | |||||||
Number of loans classified as Held to collect and sell business model | 1 | 1 | ||||||
Loan amount granted | $ | $ 39 | |||||||
Cross currency swaps (CCS) | Level 3 | Thirty years | ||||||||
Financial instruments | ||||||||
Level 3 maturity period threshold | 30 years | |||||||
CCS USD/Peso | Level 3 | Twenty two years | ||||||||
Financial instruments | ||||||||
Number of financial instruments | 2 | |||||||
Notional amount | $ | $ 100 | $ 100 | $ 100 | |||||
Maturity period | 22 years | |||||||
Level 3 maturity period threshold | 20 years | |||||||
CCS USD/Peso | Level 3 | Thirty years | ||||||||
Financial instruments | ||||||||
Number of financial instruments | 3 | |||||||
Notional amount | $ | 12 | $ 12 | $ 12 | |||||
Maturity period | 30 years | |||||||
CCS UDI/Peso | Level 3 | Twenty five | ||||||||
Financial instruments | ||||||||
Number of financial instruments | 1 | |||||||
Notional amount | $ | $ 200 | |||||||
Maturity period | 25 years | |||||||
Level 3 maturity period threshold | 30 years | |||||||
CCS USD/Peso | Level 3 | Twenty years | ||||||||
Financial instruments | ||||||||
Number of financial instruments | 5 | |||||||
Notional amount | $ | $ 40 | |||||||
CCS 91 - day TIIE | ||||||||
Financial instruments | ||||||||
Notional amount | | 250 | |||||||
CCS 91 - day TIIE | Level 3 | ||||||||
Financial instruments | ||||||||
Number of financial instruments | 2 | |||||||
Interest rate swaps | Level 3 | Twenty years | ||||||||
Financial instruments | ||||||||
Number of financial instruments | 4 | |||||||
Notional amount | $ | $ 432 | |||||||
IRS 91-day TIIE | Level 3 | ||||||||
Financial instruments | ||||||||
Number of financial instruments | 4 | |||||||
Notional amount | $ | 419 | |||||||
Red Compartida | Level 3 | ||||||||
Financial instruments | ||||||||
Number of financial instruments | 6 | |||||||
Red Compartida | Foreign currency exchange forwards and plain vanilla Fx option | Level 3 | ||||||||
Financial instruments | ||||||||
Notional amount | $ | $ 526 | $ 526 | $ 526 | |||||
Nominal distribution term in periods | 9 | |||||||
Red Compartida | Foreign currency exchange forwards and plain vanilla Fx option | Level 3 | Minimum | ||||||||
Financial instruments | ||||||||
Maturity period | 2 years | |||||||
Red Compartida | Foreign currency exchange forwards and plain vanilla Fx option | Level 3 | Maximum | ||||||||
Financial instruments | ||||||||
Maturity period | 5 years | |||||||
IRS 91-Day TIIE options | Level 3 | ||||||||
Financial instruments | ||||||||
Number of financial instruments | 2 | |||||||
Notional amount | $ | 2,395 | |||||||
EQ Options | Level 3 | ||||||||
Financial instruments | ||||||||
Number of financial instruments | 158 | |||||||
Notional amount | € | € 7 | |||||||
Balance Guaranteed Swap, Fully hedged | Level 3 | ||||||||
Financial instruments | ||||||||
Notional amount | $ | 7,500 | |||||||
Loan, Held to collect and sell | Level 3 | ||||||||
Financial instruments | ||||||||
Number of financial instruments | 1 | |||||||
Notional amount | $ | $ 2,865 |
Accounting policies - Movement
Accounting policies - Movement between opening and closing balances of Level 3 (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in financial instruments, Assets | |||
Financial assets at beginning of period | $ 1,361,558 | ||
Financial assets at end of period | 1,407,320 | $ 1,361,558 | |
Changes in financial instruments, Liabilities | |||
Financial liabilities at beginning of period | (1,259,588) | ||
Financial liabilities at end of period | (1,299,114) | (1,259,588) | |
Fair value | |||
Changes in financial instruments, Assets | |||
Financial assets at beginning of period | 540,023 | ||
Financial assets at end of period | 594,290 | 540,023 | |
Changes in financial instruments, Liabilities | |||
Financial liabilities at beginning of period | (369,304) | ||
Financial liabilities at end of period | (434,848) | (369,304) | |
Fair value | Level 3 | |||
Changes in financial instruments, Assets | |||
Financial assets at beginning of period | 1,565 | 251 | $ 172 |
Gains/(losses) on financial assets and liabilities (net) | 13 | 543 | 78 |
Purchases | 902 | ||
Sales/Transfer out | (771) | (143) | |
New issuances | 2,875 | 771 | 160 |
Settlements | (771) | (16) | |
Financial assets at end of period | 3,813 | 1,565 | 251 |
Changes in financial instruments, Liabilities | |||
Financial liabilities at beginning of period | (155) | (358) | |
Gains/(losses) on financial assets and liabilities (net) | 203 | ||
Purchases | (791) | ||
Transfer out | 155 | ||
Financial liabilities at end of period | (791) | (155) | (358) |
Trading derivative liabilities | Fair value | Level 3 | |||
Changes in financial instruments, Liabilities | |||
Financial liabilities at beginning of period | (155) | (358) | |
Gains/(losses) on financial assets and liabilities (net) | 203 | ||
Purchases | (791) | ||
Transfer out | 155 | ||
Financial liabilities at end of period | (791) | (155) | (358) |
Debt and equity instruments | Fair value | Level 3 | |||
Changes in financial instruments, Assets | |||
Financial assets at beginning of period | 172 | ||
Gains/(losses) on financial assets and liabilities (net) | (13) | ||
Sales/Transfer out | (143) | ||
Settlements | (16) | ||
Trading derivative assets | Fair value | Level 3 | |||
Changes in financial instruments, Assets | |||
Financial assets at beginning of period | 794 | 251 | |
Gains/(losses) on financial assets and liabilities (net) | 13 | 543 | 91 |
Purchases | 902 | ||
Sales/Transfer out | (771) | ||
New issuances | 160 | ||
Financial assets at end of period | 938 | 794 | $ 251 |
Loans and advances - Customers | |||
Changes in financial instruments, Assets | |||
Financial assets at beginning of period | 676,636 | ||
Financial assets at end of period | 728,335 | 676,636 | |
Loans and advances - Customers | Fair value | Level 3 | |||
Changes in financial instruments, Assets | |||
Financial assets at beginning of period | 771 | ||
New issuances | 2,875 | 771 | |
Settlements | (771) | ||
Financial assets at end of period | $ 2,875 | $ 771 |
Accounting policies - Unobserva
Accounting policies - Unobservable inputs used in measuring fair value (Details) $ in Millions | Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) |
Financial instruments | ||
Financial assets | $ 1,407,320 | $ 1,361,558 |
Financial liabilities | (1,299,114) | $ (1,259,588) |
Caps and floors - 91 day TIIES | Level 3 | ||
Financial instruments | ||
Financial liabilities | (7) | |
Cross currency swaps (CCS) | Level 3 | ||
Financial instruments | ||
Financial assets | 50 | |
Swaps Lock In | Level 3 | ||
Financial instruments | ||
Financial assets | 108 | |
Interest rate swaps | Level 3 | ||
Financial instruments | ||
Financial liabilities | (5) | |
Loans and advances - Customers | Level 3 | ||
Financial instruments | ||
Financial assets | $ 2,875 | |
Bid offer spread, measurement input | Cross currency swaps (CCS) | CCS USD/Peso | Level 3 | Minimum | ||
Financial instruments | ||
Significant unobservable input, assets | 0.0003 | |
Black model (closed formula solution) | Curve, measurement input | Caps and floors - 91 day TIIES | Level 3 | Minimum | ||
Financial instruments | ||
Significant unobservable input, liabilities | (0.0025) | |
Black model (closed formula solution) | Curve, measurement input | Caps and floors - 91 day TIIES | Level 3 | Maximum | ||
Financial instruments | ||
Significant unobservable input, liabilities | (0.0002) | |
Forward estimation (non-closed formula solution) | Curve, measurement input | Interest rate swaps | Level 3 | Minimum | ||
Financial instruments | ||
Significant unobservable input, liabilities | (0.0025) | |
Forward estimation (non-closed formula solution) | Curve, measurement input | Interest rate swaps | Level 3 | Maximum | ||
Financial instruments | ||
Significant unobservable input, liabilities | (0.0002) | |
Forward estimation (non-closed formula solution) | Bid offer spread, measurement input | Cross currency swaps (CCS) | IRS, UDI/Peso | Level 3 | Minimum | ||
Financial instruments | ||
Significant unobservable input, assets | 0.0005 | |
Forward estimation (non-closed formula solution) | Bid offer spread, measurement input | Cross currency swaps (CCS) | IRS, UDI/Peso | Level 3 | Maximum | ||
Financial instruments | ||
Significant unobservable input, assets | 0.0020 | |
Forward estimation (non-closed formula solution) | Bid offer spread, measurement input | Cross currency swaps (CCS) | IRS, TIIE | Level 3 | Minimum | ||
Financial instruments | ||
Significant unobservable input, assets | 0.0002 | |
Forward estimation (non-closed formula solution) | Bid offer spread, measurement input | Cross currency swaps (CCS) | IRS, TIIE | Level 3 | Maximum | ||
Financial instruments | ||
Significant unobservable input, assets | 0.0010 | |
Forward estimation (non-closed formula solution) | Bid offer spread, measurement input | Cross currency swaps (CCS) | CCS USD/Peso | Level 3 | Maximum | ||
Financial instruments | ||
Significant unobservable input, assets | 0.0010 | |
Forward estimation (non-closed formula solution) | Bid offer spread, measurement input | Interest rate swaps | CCS USD/Peso | Level 3 | Minimum | ||
Financial instruments | ||
Significant unobservable input, liabilities | 0.0003 | |
Forward estimation (non-closed formula solution) | Bid offer spread, measurement input | Interest rate swaps | CCS USD/Peso | Level 3 | Maximum | ||
Financial instruments | ||
Significant unobservable input, liabilities | 0.0010 | |
Forward estimation (non-closed formula solution) | Bid offer spread, measurement input | Interest rate swaps | IRS, UDI/Peso | Level 3 | Minimum | ||
Financial instruments | ||
Significant unobservable input, liabilities | 0.0020 | |
Forward estimation (non-closed formula solution) | Bid offer spread, measurement input | Interest rate swaps | IRS, UDI/Peso | Level 3 | Maximum | ||
Financial instruments | ||
Significant unobservable input, liabilities | 0.005 | |
Forward estimation (non-closed formula solution) | Bid offer spread, measurement input | Interest rate swaps | IRS, TIIE | Level 3 | Minimum | ||
Financial instruments | ||
Significant unobservable input, liabilities | 0.0002 | |
Forward estimation (non-closed formula solution) | Bid offer spread, measurement input | Interest rate swaps | IRS, TIIE | Level 3 | Maximum | ||
Financial instruments | ||
Significant unobservable input, liabilities | 0.0010 | |
Forward estimation (non-closed formula solution) | Prepayment rate, measurement input | Swaps Lock In | Level 3 | Minimum | ||
Financial instruments | ||
Significant unobservable input, assets | 0.06 | |
Forward estimation (non-closed formula solution) | Prepayment rate, measurement input | Swaps Lock In | Level 3 | Maximum | ||
Financial instruments | ||
Significant unobservable input, assets | 0.12 | |
Local volatility model with partial differential equation method | Volatility surface, measurement input | Market index options, Quanto options | Level 3 | Minimum | ||
Financial instruments | ||
Significant unobservable input, assets | 0.0062 | |
Local volatility model with partial differential equation method | Volatility surface, measurement input | Market index options, Quanto options | Level 3 | Maximum | ||
Financial instruments | ||
Significant unobservable input, assets | 0.0069 | |
Estimation of credit default probabilities from credit spreads | Credit spread, measurement input | Loans and advances - Customers | Minimum | ||
Financial instruments | ||
Significant unobservable input, assets | 0.0024 | |
Estimation of credit default probabilities from credit spreads | Credit spread, measurement input | Loans and advances - Customers | Maximum | ||
Financial instruments | ||
Significant unobservable input, assets | 0.0055 |
Accounting policies - Potential
Accounting policies - Potential impact of changing inputs (Details) - Level 3 $ in Thousands | 12 Months Ended |
Dec. 31, 2019MXN ($) | |
Caps and floors - 91 day TIIES | |
Financial instruments | |
Potential impact on consolidated income statement - Most favorable input | $ 2,000 |
Potential impact on consolidated income statement - Least favorable input | 200 |
Interest rate swaps | |
Financial instruments | |
Potential impact on consolidated income statement - Most favorable input | 1,700 |
Potential impact on consolidated income statement - Least favorable input | (600) |
Cross currency swaps (CCS) | |
Financial instruments | |
Potential impact on consolidated income statement - Most favorable input | 400 |
Potential impact on consolidated income statement - Least favorable input | (400) |
Loans and advances - Customers | |
Financial instruments | |
Potential impact on consolidated income statement - Least favorable input | $ (27,000) |
Accounting policies - Levels 3
Accounting policies - Levels 3 Change in Assumptions (Details) - Level 3 | 12 Months Ended |
Dec. 31, 2019item | |
Least Favorable Input, Potential Impact | |
Financial instruments | |
Denominator used in estimating volatility | 2 |
Cross currency swaps (CCS) | Least Favorable Input, Potential Impact | |
Financial instruments | |
Historical period | 1 year |
Denominator used in estimating volatility | 2 |
Percentile of movement price distribution | 0.95% |
Cross currency swaps (CCS) | CCS USD/Peso | Most Favorable Input, Potential Impact | |
Financial instruments | |
Increase (decrease) of input | (0.0010) |
Cross currency swaps (CCS) | CCS USD/Peso | Least Favorable Input, Potential Impact | |
Financial instruments | |
Increase (decrease) of input | 0.0010 |
Cross currency swaps (CCS) | Interest rate swaps | Most Favorable Input, Potential Impact | |
Financial instruments | |
Increase (decrease) of input | (0.0006) |
Cross currency swaps (CCS) | Interest rate swaps | Least Favorable Input, Potential Impact | |
Financial instruments | |
Increase (decrease) of input | 0.0060 |
Interest rate swaps | Most Favorable Input, Potential Impact | |
Financial instruments | |
Historical period | 1 year |
Interest rate swaps | Least Favorable Input, Potential Impact | |
Financial instruments | |
Historical period | 1 year |
Percentile of movement price distribution | 0.95% |
Interest rate swaps | Interest rate swaps | Least Favorable Input, Potential Impact | |
Financial instruments | |
Increase (decrease) of input | 0.0060 |
Interest rate swaps | CCS USD/Peso | Least Favorable Input, Potential Impact | |
Financial instruments | |
Increase (decrease) of input | 0.0100 |
Loans and advances - Customers | Least Favorable Input, Potential Impact | |
Financial instruments | |
Number of notches change | 3 |
Caps and floors - 91 day TIIES | Most Favorable Input, Potential Impact | |
Financial instruments | |
Historical period | 1 year |
Caps and floors - 91 day TIIES | Least Favorable Input, Potential Impact | |
Financial instruments | |
Historical period | 1 year |
Accounting policies - Sensitivi
Accounting policies - Sensitivity analysis - Value at risk technique (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019MXN ($)D | |
Financial instruments | |
All financial instruments | $ 74 |
Instruments sensitive to interest rate | 49 |
Instruments sensitive to equity market prices | 2 |
Instruments sensitive to foreign currency exchange rates | 49 |
Instruments sensitive to volatility movements | $ 5 |
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 | $ 26 |
Instruments sensitive to interest rate | 23 |
Instruments sensitive to equity market prices | 1 |
Instruments sensitive to foreign currency exchange rates | 8 |
Instruments sensitive to volatility movements | $ 4 |
Percentage of hedge effectiveness | 80.00% |
Maximum | |
Financial instruments | |
All financial instruments | $ 114 |
Instruments sensitive to interest rate | 64 |
Instruments sensitive to equity market prices | 12 |
Instruments sensitive to foreign currency exchange rates | 89 |
Instruments sensitive to volatility movements | $ 11 |
Percentage of hedge effectiveness | 125.00% |
Weighted average | |
Financial instruments | |
All financial instruments | $ 66 |
Instruments sensitive to interest rate | 43 |
Instruments sensitive to equity market prices | 3 |
Instruments sensitive to foreign currency exchange rates | 41 |
Instruments sensitive to volatility movements | $ 6 |
Accounting policies - Offsettin
Accounting policies - Offsetting of financial assets (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets offset in the consolidated balance sheets | ||
Gross amount of financial assets | $ 240,943 | $ 271,913 |
Net amount of financial assets presented in the balance sheet | 240,943 | 271,913 |
Impact of Master Netting Agreements | (131,534) | (92,928) |
Financial instrument collateral | (82,342) | (111,854) |
Cash collateral | (16,759) | (42,391) |
Net amount | 10,308 | 24,740 |
Financial instruments received as collateral | 82,342 | 111,937 |
Financial derivative assets | ||
Financial assets offset in the consolidated balance sheets | ||
Gross amount of financial assets | 161,003 | 164,238 |
Net amount of financial assets presented in the balance sheet | 161,003 | 164,238 |
Impact of Master Netting Agreements | (128,590) | (92,928) |
Financial instrument collateral | (5,736) | (4,044) |
Cash collateral | (16,759) | (42,391) |
Net amount | 9,918 | 24,875 |
Reverse repurchase agreements | ||
Financial assets offset in the consolidated balance sheets | ||
Gross amount of financial assets | 79,927 | 107,425 |
Net amount of financial assets presented in the balance sheet | 79,927 | 107,425 |
Impact of Master Netting Agreements | (2,944) | |
Financial instrument collateral | (76,592) | (107,560) |
Net amount | 391 | (135) |
Equity instruments. | ||
Financial assets offset in the consolidated balance sheets | ||
Gross amount of financial assets | 13 | 250 |
Net amount of financial assets presented in the balance sheet | 13 | 250 |
Financial instrument collateral | (14) | (250) |
Net amount | (1) | |
Financial instruments in connection with securities loans transactions | Equity instruments. | ||
Financial assets offset in the consolidated balance sheets | ||
Financial instruments received as collateral | $ 14 | $ 333 |
Accounting policies - Offsett_2
Accounting policies - Offsetting of financial liabilities (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial liabilities offset in the consolidated balance sheets | ||
Gross amount of financial liabilities | $ 508,420 | $ 436,709 |
Net amount of financial liabilities presented in the balance sheet | 508,420 | 436,709 |
Impact of Master Netting Agreements | (131,534) | (92,928) |
Financial instrument collateral | (282,527) | (209,326) |
Cash collateral | (14,300) | (29,409) |
Net amount | 80,059 | 105,046 |
Derivative financial liabilities | ||
Financial liabilities offset in the consolidated balance sheets | ||
Gross amount of financial liabilities | 152,004 | 162,120 |
Net amount of financial liabilities presented in the balance sheet | 152,004 | 162,120 |
Impact of Master Netting Agreements | (128,590) | (92,928) |
Financial instrument collateral | (4,472) | (6,234) |
Cash collateral | (14,300) | (29,409) |
Net amount | 4,642 | 33,549 |
Repurchase agreements | ||
Financial liabilities offset in the consolidated balance sheets | ||
Gross amount of financial liabilities | 270,479 | 173,515 |
Net amount of financial liabilities presented in the balance sheet | 270,479 | 173,515 |
Impact of Master Netting Agreements | (2,944) | |
Financial instrument collateral | (191,422) | (101,197) |
Net amount | 76,113 | 72,318 |
Short positions - Securities loans | ||
Financial liabilities offset in the consolidated balance sheets | ||
Gross amount of financial liabilities | 8,280 | 28,239 |
Net amount of financial liabilities presented in the balance sheet | 8,280 | 28,239 |
Financial instrument collateral | (8,809) | (29,086) |
Net amount | (529) | (847) |
Short sales | ||
Financial liabilities offset in the consolidated balance sheets | ||
Gross amount of financial liabilities | 77,657 | 72,835 |
Net amount of financial liabilities presented in the balance sheet | 77,657 | 72,835 |
Financial instrument collateral | (77,824) | (72,809) |
Net amount | $ (167) | $ 26 |
Accounting policies -Thresholds
Accounting policies -Thresholds for each type of credit asset (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Commercial loans to large enterprises | ?Lifetime PD? band, Less than or equal to 0.78% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.05% |
Commercial loans to large enterprises | ?Lifetime PD? band, 0.78 - 1.37% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.17% |
Commercial loans to large enterprises | ?Lifetime PD? band, 1.37 - 4.78% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.29% |
Commercial loans to large enterprises | ?Lifetime PD? band, 4.78 - 7.81% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.41% |
Commercial loans to large enterprises | ?Lifetime PD? band, Greater than 7.81% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.53% |
Commercial loans to real estate | ?Lifetime PD? band, Less than or equal to 0.68% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.23% |
Commercial loans to real estate | ?Lifetime PD? band, 0.68 - 0.91% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.27% |
Commercial loans to real estate | ?Lifetime PD? band, 0.91 - 1.07% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.30% |
Commercial loans to real estate | ?Lifetime PD? band, 1.07 - 1.4% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.34% |
Commercial loans to real estate | ?Lifetime PD? band, 1.4 - 7.94% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.37% |
Commercial loans to real estate | ?Lifetime PD? band, Greater than 7.94% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.41% |
Commercial loans (SMEs) | ?Lifetime PD? band, Less than or equal to 1.66% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.12% |
Commercial loans (SMEs) | ?Lifetime PD? band, 1.66 - 3.00% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.13% |
Commercial loans (SMEs) | ?Lifetime PD? band, 3.00 - 6.00% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.14% |
Commercial loans (SMEs) | ?Lifetime PD? band, 6.00 - 8.00% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.17% |
Commercial loans (SMEs) | ?Lifetime PD? band, 8.00 - 10.00% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.18% |
Commercial loans (SMEs) | ?Lifetime PD? band, 10.00 - 13.00% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.19% |
Commercial loans (SMEs) | ?Lifetime PD? band, 13.00 - 15.00% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.20% |
Commercial loans (SMEs) | ?Lifetime PD? band, 15.00 - 18.00% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.207% |
Commercial loans (SMEs) | ?Lifetime PD? band, 18.00 - 22.00% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.213% |
Commercial loans (SMEs) | ?Lifetime PD? band, Greater than 22.00% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.22% |
Securitized mortgage assets | ?Lifetime PD? band, Less than or equal to 4.08% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.16% |
Securitized mortgage assets | ?Lifetime PD? band, 4.08 - 5.66% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.28% |
Securitized mortgage assets | ?Lifetime PD? band, 5.66 - 11.32% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.40% |
Securitized mortgage assets | ?Lifetime PD? band, 11.32 - 12.70% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.41% |
Securitized mortgage assets | ?Lifetime PD? band, 12.70 - 15.32% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.42% |
Securitized mortgage assets | ?Lifetime PD? band, 15.32 - 16.99% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.43% |
Securitized mortgage assets | ?Lifetime PD? band, 16.99 - 21.64% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.44% |
Securitized mortgage assets | ?Lifetime PD? band, Greater than 21.64% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.45% |
Installment loans to individuals - Revolving consumer credit cards loans | ?Lifetime PD? band, Less than or equal to 0.5% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.16% |
Installment loans to individuals - Revolving consumer credit cards loans | ?Lifetime PD? band, 0.5 - 1.0% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.19% |
Installment loans to individuals - Revolving consumer credit cards loans | ?Lifetime PD? band, 1.0 - 1.5% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.22% |
Installment loans to individuals - Revolving consumer credit cards loans | ?Lifetime PD? band, 1.5 - 2.0% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.25% |
Installment loans to individuals - Revolving consumer credit cards loans | ?Lifetime PD? band, 2.0 - 4.0% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.29% |
Installment loans to individuals - Revolving consumer credit cards loans | ?Lifetime PD? band, 4.0 - 6.0% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.32% |
Installment loans to individuals - Revolving consumer credit cards loans | ?Lifetime PD? band, 6.0 - 8.0% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.35% |
Installment loans to individuals - Revolving consumer credit cards loans | ?Lifetime PD? band, 8.0 - 10.0% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.38% |
Installment loans to individuals - Revolving consumer credit cards loans | ?Lifetime PD? band, Greater than 10.0% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.41% |
Non-revolving consumer loans (payroll loans) | ?Lifetime PD? band, Less than or equal to 10.06% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.11% |
Non-revolving consumer loans (payroll loans) | ?Lifetime PD? band, 10.06 - 13.04% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.16% |
Non-revolving consumer loans (payroll loans) | ?Lifetime PD? band, 13.04 - 15.11% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.20% |
Non-revolving consumer loans (payroll loans) | ?Lifetime PD? band, 15.11 - 16.77% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.223% |
Non-revolving consumer loans (payroll loans) | ?Lifetime PD? band, 16.77 - 19.56% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.245% |
Non-revolving consumer loans (payroll loans) | ?Lifetime PD? band, 19.56 - 21.80% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.268% |
Non-revolving consumer loans (payroll loans) | ?Lifetime PD? band, 21.80 - 22.92% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.29% |
Non-revolving consumer loans (payroll loans) | ?Lifetime PD? band, 22.92 - 28.19% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.31% |
Non-revolving consumer loans (payroll loans) | ?Lifetime PD? band, 28.19 - 34.70% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.33% |
Non-revolving consumer loans (payroll loans) | ?Lifetime PD? band, Greater than 34.70% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.35% |
Non-revolving consumer loans (personal loans) | ?Lifetime PD? band, Less than or equal to 9.32% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.11% |
Non-revolving consumer loans (personal loans) | ?Lifetime PD? band, 9.32 - 13.97% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.19% |
Non-revolving consumer loans (personal loans) | ?Lifetime PD? band, 13.97 - 16.65% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.24% |
Non-revolving consumer loans (personal loans) | ?Lifetime PD? band, 16.65 - 19.00% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.31% |
Non-revolving consumer loans (personal loans) | ?Lifetime PD? band, 19.00 - 23.68% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.36% |
Non-revolving consumer loans (personal loans) | ?Lifetime PD? band, 23.68 - 25.67% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.365% |
Non-revolving consumer loans (personal loans) | ?Lifetime PD? band, 25.67 - 26.74% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.37% |
Non-revolving consumer loans (personal loans) | ?Lifetime PD? band, 26.74 - 31.84% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.375% |
Non-revolving consumer loans (personal loans) | ?Lifetime PD? band, Greater than 31.84% | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.38% |
Accounting policies - Additiona
Accounting policies - Additional criteria (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Impairment of financial assets | ||
Backstop criteria threshold period | 30 days | |
Impairment threshold period | 90 days | |
Minimum period for which instruments may be reclassified from Stage 2 to Stage 1 following reclassification to that category or from its forbearance date | 2 years | |
Maximum period for which client may have other instruments balances due in order for instruments to be reclassifed from Stage 2 to Stage 1 | 30 days | |
Minimum period for which instruments may be reclassified from Stage 3 to Stage 2 following reclassification to that category or from its forbearance date | 1 year | |
Maximum period for which client may have other instruments balances due in order for instruments to be reclassifed from Stage 3 to Stage 2 | 90 days | |
Threshold percentage for classifying sum of all transactions of customer as impaired | 20.00% | |
Macroeconomic variables forecast term | 3 years | |
Maximum exposure to credit risk | $ 1,428,587 | $ 1,409,862 |
Minimum | ||
Impairment of financial assets | ||
Long term run average growth rate period | 2 years | |
Maximum | ||
Impairment of financial assets | ||
Long term run average growth rate period | 5 years | |
Commercial, financial and industrial loans | ||
Impairment of financial assets | ||
Impairment threshold period | 90 days | |
Securitized mortgage assets | ||
Impairment of financial assets | ||
Impairment threshold period | 90 days | |
Installment loans to individuals - Revolving consumer credit cards loans | ||
Impairment of financial assets | ||
Impairment threshold period | 90 days | |
Installment loans to individuals - Non-revolving consumer loans | ||
Impairment of financial assets | ||
Impairment threshold period | 90 days |
Accounting policies - Macroecon
Accounting policies - Macroeconomic variable assumptions (Details) | 12 Months Ended | |
Dec. 31, 2019item | Dec. 31, 2018item | |
Financial instruments | ||
Peso/USD (Exchange rate at end of period) | 18.8642 | 19.6512 |
Base | ||
Financial instruments | ||
GDP (as a percent) | 0.05% | |
CPI (as a percent) | 3.90% | |
Unemployment rates (as a percent of active active population) | 3.55% | |
Peso/USD (Exchange rate at end of period) | 20.46 | |
Loans Mortgage (as a percent) | 9.80 | |
Loans - Consumer (as a percent) | 5.29 | |
Deposits Total (as a percent) | 7.70 | |
Stock Markets | 42,921.41 | |
Base | Within one year | ||
Financial instruments | ||
GDP (as a percent) | 1.20% | |
CPI (as a percent) | 3.60% | |
Unemployment rates (as a percent of active active population) | 3.79% | |
Peso/USD (Exchange rate at end of period) | 20.78 | |
Loans Mortgage (as a percent) | 9.10 | |
Loans - Consumer (as a percent) | 6.10 | |
Deposits Total (as a percent) | 7.44 | |
Stock Markets | 44,037.20 | |
Base | 2019 | ||
Financial instruments | ||
GDP (as a percent) | 1.70% | |
CPI (as a percent) | 3.50% | |
Unemployment rates (as a percent of active active population) | 4.03% | |
Peso/USD (Exchange rate at end of period) | 21.07 | |
Loans Mortgage (as a percent) | 8.90 | |
Loans - Consumer (as a percent) | 5.85 | |
Deposits Total (as a percent) | 6.60 | |
Stock Markets | 46,327.14 | |
Base | 2020 | ||
Financial instruments | ||
GDP (as a percent) | 1.70% | |
CPI (as a percent) | 3.50% | |
Unemployment rates (as a percent of active active population) | 4.27% | |
Peso/USD (Exchange rate at end of period) | 21.39 | |
Loans Mortgage (as a percent) | 8.50 | |
Loans - Consumer (as a percent) | 5.83 | |
Deposits Total (as a percent) | 6.18 | |
Stock Markets | 48,736.15 | |
Upside | ||
Financial instruments | ||
GDP (as a percent) | 0.05% | |
CPI (as a percent) | 3.90% | |
Unemployment rates (as a percent of active active population) | 3.55% | |
Peso/USD (Exchange rate at end of period) | 20.46 | |
Loans Mortgage (as a percent) | 9.80 | |
Loans - Consumer (as a percent) | 5.29 | |
Deposits Total (as a percent) | 7.70 | |
Stock Markets | 42,921.41 | |
Upside | Within one year | ||
Financial instruments | ||
GDP (as a percent) | 2.05% | |
CPI (as a percent) | 3.39% | |
Unemployment rates (as a percent of active active population) | 3.37% | |
Peso/USD (Exchange rate at end of period) | 19.77 | |
Loans Mortgage (as a percent) | 10.25 | |
Loans - Consumer (as a percent) | 7.32 | |
Deposits Total (as a percent) | 8.46 | |
Stock Markets | 45,496.53 | |
Upside | 2019 | ||
Financial instruments | ||
GDP (as a percent) | 2.75% | |
CPI (as a percent) | 3.08% | |
Unemployment rates (as a percent of active active population) | 3.47% | |
Peso/USD (Exchange rate at end of period) | 20.09 | |
Loans Mortgage (as a percent) | 11.04 | |
Loans - Consumer (as a percent) | 8.12 | |
Deposits Total (as a percent) | 7.65 | |
Stock Markets | 49,909.70 | |
Upside | 2020 | ||
Financial instruments | ||
GDP (as a percent) | 2.90% | |
CPI (as a percent) | 2.91% | |
Unemployment rates (as a percent of active active population) | 3.60% | |
Peso/USD (Exchange rate at end of period) | 20.46 | |
Loans Mortgage (as a percent) | 10.90 | |
Loans - Consumer (as a percent) | 8.37 | |
Deposits Total (as a percent) | 6.83 | |
Stock Markets | 55,299.94 | |
Downside | ||
Financial instruments | ||
GDP (as a percent) | 0.05% | |
CPI (as a percent) | 3.90% | |
Unemployment rates (as a percent of active active population) | 3.55% | |
Peso/USD (Exchange rate at end of period) | 20.46 | |
Loans Mortgage (as a percent) | 9.80 | |
Loans - Consumer (as a percent) | 5.29 | |
Deposits Total (as a percent) | 7.70 | |
Stock Markets | 42,921.41 | |
Downside | Within one year | ||
Financial instruments | ||
GDP (as a percent) | (7.10%) | |
CPI (as a percent) | 8.40% | |
Unemployment rates (as a percent of active active population) | 6.40% | |
Peso/USD (Exchange rate at end of period) | 27.03 | |
Loans Mortgage (as a percent) | (4.50) | |
Loans - Consumer (as a percent) | (7.50) | |
Deposits Total (as a percent) | 5 | |
Stock Markets | 33,907.91 | |
Downside | 2019 | ||
Financial instruments | ||
GDP (as a percent) | 0.00% | |
CPI (as a percent) | 8.78% | |
Unemployment rates (as a percent of active active population) | 7.10% | |
Peso/USD (Exchange rate at end of period) | 26.66 | |
Loans Mortgage (as a percent) | (0.20) | |
Loans - Consumer (as a percent) | 0.40 | |
Deposits Total (as a percent) | 4.60 | |
Stock Markets | 30,517.12 | |
Downside | 2020 | ||
Financial instruments | ||
GDP (as a percent) | 0.80% | |
CPI (as a percent) | 7.60% | |
Unemployment rates (as a percent of active active population) | 5.50% | |
Peso/USD (Exchange rate at end of period) | 25.05 | |
Loans Mortgage (as a percent) | 1.40 | |
Loans - Consumer (as a percent) | 2.49 | |
Deposits Total (as a percent) | 5.10 | |
Stock Markets | 31,280.05 |
Accounting policies - Weighting
Accounting policies - Weightings assigned to macroeconomic scenarios (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Base | ||
Disclosure of detailed information about financial instruments [line items] | ||
Weighting (as a percent) | 52.50% | 55.00% |
Upside | ||
Disclosure of detailed information about financial instruments [line items] | ||
Weighting (as a percent) | 10.00% | 10.00% |
Downside | ||
Disclosure of detailed information about financial instruments [line items] | ||
Weighting (as a percent) | 37.50% | 35.00% |
Accounting policies - Sensiti_2
Accounting policies - Sensitivity analysis (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Small and medium size enterprises loans | |
Financial instruments | |
Loan write off threshold period | 181 days |
Revolving SMEs loans | |
Financial instruments | |
Loan write off threshold period | 151 days |
Securitized mortgage assets | |
Financial instruments | |
Loan write off threshold period | 36 days |
Installment loans to individuals - Revolving consumer credit cards loans | |
Financial instruments | |
Loan write off threshold period | 151 days |
Installment loans to individuals - Non-revolving consumer loans | |
Financial instruments | |
Loan write off threshold period | 181 days |
Most Favorable Input, Potential Impact | |
Financial instruments | |
Sensitivity analysis, assumed weighting (as a percent) | (100.00%) |
Most Favorable Input, Potential Impact | Retail loan portfolios | |
Financial instruments | |
Weightings (as a percent) | (14.00%) |
Most Favorable Input, Potential Impact | Non retail loan portfolios | |
Financial instruments | |
Weightings (as a percent) | (6.50%) |
Least Favorable Input, Potential Impact | |
Financial instruments | |
Sensitivity analysis, assumed weighting (as a percent) | 100.00% |
Least Favorable Input, Potential Impact | Retail loan portfolios | |
Financial instruments | |
Weightings (as a percent) | 18.50% |
Least Favorable Input, Potential Impact | Non retail loan portfolios | |
Financial instruments | |
Weightings (as a percent) | 7.10% |
Accounting policies - Adoption
Accounting policies - Adoption of IFRS 16 - Leases (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 |
Initial adoption of IFRS 16 | ||
Lease liabilities | $ 5,919 | |
Right-of-use assets | $ 5,611 | |
IFRS 16 | ||
Initial adoption of IFRS 16 | ||
IAS 17 operating lease commitments based on gross cash flows disclosed as at December 31, 2018 | $ 10,015 | |
Discounted using the Bank's incremental borrowing rate of 11% | 6,090 | |
Add/(less): adjustments due to different treatment of extension and termination options | 801 | |
(Less): contracts to which the short-term leases exemption has been applied | 77 | |
(Less): services/non-lease components of lease contracts | 80 | |
Lease liabilities | $ 6,734 | |
Borrowing rate (as a percent) | 11.00% | |
Right-of-use assets | $ 6,734 |
Accounting policies - Adoptio_2
Accounting policies - Adoption of IFRS 9 - Impact on Balance Sheet (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Initial adoption of IFRS 9 | ||||
Tax assets, as as originally presented | $ 16,600 | |||
Tax assets, Adjustments on initial adoption of IFRS 9 | 286 | |||
Tax assets, restated | 16,886 | |||
Provisions, as originally presented | 1,032 | |||
Provisions, Adjustments on initial adoption of IFRS 9 | (32) | |||
Provisions, restated | 1,000 | |||
Equity, as originally presented | $ 134,798 | $ 123,287 | 115,410 | $ 105,227 |
Equity, Adjustments on initial adoption of IFRS 9 | (665) | |||
Balances, restated | 114,745 | |||
Accumulated Reserves | ||||
Initial adoption of IFRS 9 | ||||
Equity, as originally presented | 86,674 | 79,227 | 72,838 | 65,190 |
Equity, Adjustments on initial adoption of IFRS 9 | (2,279) | |||
Balances, restated | 70,559 | |||
Other reserves | ||||
Initial adoption of IFRS 9 | ||||
Equity, as originally presented | $ 2,043 | $ (985) | (1,177) | $ (1,596) |
Equity, Adjustments on initial adoption of IFRS 9 | 1,614 | |||
Balances, restated | 437 | |||
Financial assets available for sale | ||||
Initial adoption of IFRS 9 | ||||
Financial assets, as originally presented | 165,742 | |||
Financial assets, Adjustments on initial adoption of IFRS 9 | (165,742) | |||
Financial assets available for sale | Other reserves | ||||
Initial adoption of IFRS 9 | ||||
Equity, as originally presented | (1,533) | |||
Equity, Adjustments on initial adoption of IFRS 9 | 1,533 | |||
Financial assets at fair value through other comprehensive income category | ||||
Initial adoption of IFRS 9 | ||||
Financial assets, Adjustments on initial adoption of IFRS 9 | 92,611 | |||
Financial assets, restated | 92,611 | |||
Financial assets at fair value through other comprehensive income category | Other reserves | ||||
Initial adoption of IFRS 9 | ||||
Equity, Adjustments on initial adoption of IFRS 9 | 81 | |||
Balances, restated | 81 | |||
Loans and receivables | ||||
Initial adoption of IFRS 9 | ||||
Financial assets, as originally presented | 679,300 | |||
Financial assets, Adjustments on initial adoption of IFRS 9 | (679,300) | |||
Financial assets at amortized cost category | ||||
Initial adoption of IFRS 9 | ||||
Financial assets, Adjustments on initial adoption of IFRS 9 | 751,448 | |||
Financial assets, restated | $ 751,448 |
Accounting policies - Adoptio_3
Accounting policies - Adoption of IFRS 9 - Impact on Accumulated reserves (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Initial adoption of IFRS 9 | ||||
Equity balance as reported | $ 134,798 | $ 123,287 | $ 115,410 | $ 105,227 |
Adjustments to Accumulated reserves from adoption of IFRS 9 | (665) | |||
Balances, restated | 114,745 | |||
Accumulated Reserves | ||||
Initial adoption of IFRS 9 | ||||
Equity balance as reported | $ 86,674 | $ 79,227 | 72,838 | $ 65,190 |
Increase in allowance for impairment losses and provisions for off-balance sheet risk | (3,238) | |||
Increase in allowance for impairment losses for debt instruments at FVTOCI | (18) | |||
Increase in deferred tax assets relating to allowance for impairment losses and provisions for off-balance sheet risk | 977 | |||
Adjustments to Accumulated reserves from adoption of IFRS 9 | (2,279) | |||
Balances, restated | $ 70,559 |
Accounting policies - Adoptio_4
Accounting policies - Adoption of IFRS 9 - Classification (Details) - MXN ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Impairment losses | |||
Initial adoption of IFRS 9 | |||
Financial assets, as originally presented | $ (17,961) | ||
Financial assets, Remeasurement, Adjustments on initial adoption of IFRS 9 | (3,256) | ||
Financial assets, restated | (21,217) | ||
Financial assets available for sale | |||
Initial adoption of IFRS 9 | |||
Financial assets, as originally presented | 165,742 | ||
Financial assets available for sale | Debt instruments. | |||
Initial adoption of IFRS 9 | |||
Financial assets, as originally presented | $ 154,318 | ||
Reclassification of debt instruments from Available-for-sale to Amortized cost | (73,131) | ||
Reclassification of financial instruments from Available-for-sale to FVTOCI | (91,816) | ||
Financial assets, restated | $ 154,318 | ||
Financial assets available for sale | Equity instruments. | |||
Initial adoption of IFRS 9 | |||
Reclassification of financial instruments from Available-for-sale to FVTOCI | (795) | ||
Loans and receivables | |||
Initial adoption of IFRS 9 | |||
Financial assets, as originally presented | 679,300 | ||
Loans and receivables | Debt instruments. | |||
Initial adoption of IFRS 9 | |||
Reclassification of financial instruments from Loans and receivables to Amortized cost | (10,758) | ||
Loans and receivables | Loans and advances to customers and credit institutions | |||
Initial adoption of IFRS 9 | |||
Reclassification of financial instruments from Loans and receivables to Amortized cost | (668,542) | ||
Financial assets at fair value through other comprehensive income category | |||
Initial adoption of IFRS 9 | |||
Financial assets, restated | 92,611 | ||
Financial assets at fair value through other comprehensive income category | Debt instruments. | |||
Initial adoption of IFRS 9 | |||
Financial assets, as originally presented | $ 154,483 | 164,947 | |
Reclassification of financial instruments from Available-for-sale to FVTOCI | 91,816 | ||
Financial assets, restated | $ 154,483 | 91,816 | |
Financial assets at fair value through other comprehensive income category | Equity instruments. | |||
Initial adoption of IFRS 9 | |||
Reclassification of financial instruments from Available-for-sale to FVTOCI | 795 | ||
Financial assets at amortized cost category | |||
Initial adoption of IFRS 9 | |||
Financial assets, restated | 751,448 | ||
Financial assets at amortized cost category | Impairment losses | |||
Initial adoption of IFRS 9 | |||
Financial assets, Remeasurement, Adjustments on initial adoption of IFRS 9 | (3,270) | ||
Financial assets at amortized cost category | Debt instruments. | |||
Initial adoption of IFRS 9 | |||
Reclassification of debt instruments from Available-for-sale to Amortized cost | 73,131 | ||
Remeasurement of financial instruments reclassified to Amortized cost | 2,287 | ||
Reclassification of financial instruments from Loans and receivables to Amortized cost | 10,758 | ||
Amount of debt instruments reclassified from Available-for-sale to Amortized cost, including remeasurement amount | 75,418 | ||
Financial assets at amortized cost category | Loans and advances to customers and credit institutions | |||
Initial adoption of IFRS 9 | |||
Reclassification of financial instruments from Loans and receivables to Amortized cost | $ 668,542 |
Accounting policies - Adoptio_5
Accounting policies - Adoption of IFRS 9 - Impact on Equity (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Initial adoption of IFRS 9 | ||||
Equity, as originally presented | $ 134,798 | $ 123,287 | $ 115,410 | $ 105,227 |
Balances, restated | 114,745 | |||
Total Shareholders' Equity Attributable to the Parent | ||||
Initial adoption of IFRS 9 | ||||
Equity, as originally presented | 134,758 | 123,255 | 115,381 | 105,172 |
Balances, restated | 114,716 | |||
Other reserves | ||||
Initial adoption of IFRS 9 | ||||
Equity, as originally presented | 2,043 | (985) | (1,177) | (1,596) |
Balances, restated | 437 | |||
Other reserves | Financial assets available for sale | ||||
Initial adoption of IFRS 9 | ||||
Equity, as originally presented | (1,533) | |||
Allowance for impairment losses for debt instruments at FVTOCI | 18 | |||
Income tax | (5) | |||
Other reserves | Financial assets available for sale | Debt instruments. | ||||
Initial adoption of IFRS 9 | ||||
Reclassifications of debt instruments from Available-for-sale to Amortized cost | 1,601 | |||
Allowance for impairment losses for debt instruments at FVTOCI | (109) | |||
Amount recognized if debt instrument had not been reclassified | 1,326 | |||
Amount recognized if debt instrument had not been reclassified, net of tax | 928 | |||
Other reserves | Financial assets available for sale | Equity instruments. | ||||
Initial adoption of IFRS 9 | ||||
Reclassifications of financial instruments from Available-for-sale to FVTOCI | 28 | |||
Other reserves | Financial assets at fair value through other comprehensive income category | ||||
Initial adoption of IFRS 9 | ||||
Balances, restated | 81 | |||
Other reserves | Financial assets at fair value through other comprehensive income category | Debt instruments. | ||||
Initial adoption of IFRS 9 | ||||
Allowance for impairment losses for debt instruments at FVTOCI | 109 | |||
Other reserves | Financial assets at fair value through other comprehensive income category | Equity instruments. | ||||
Initial adoption of IFRS 9 | ||||
Reclassifications of financial instruments from Available-for-sale to FVTOCI | (28) | |||
Accumulated Reserves | ||||
Initial adoption of IFRS 9 | ||||
Equity, as originally presented | $ 86,674 | $ 79,227 | 72,838 | $ 65,190 |
Allowance for impairment losses for debt instruments at FVTOCI | (18) | |||
Allowance for impairment losses | (3,270) | |||
Provisions for off-balance sheet risk | 32 | |||
Income tax | 977 | |||
Balances, restated | 70,559 | |||
Allowance for impairment losses for debt instruments at FVTOCI, net of tax | $ (13) |
Accounting policies - Adoptio_6
Accounting policies - Adoption of IFRS 9 - Impairment (Details) - Impairment losses $ in Millions | Dec. 31, 2017MXN ($) |
Initial adoption of IFRS 9 | |
Financial assets, as originally presented | $ 17,961 |
Remeasurements | 3,256 |
Financial assets, restated | 21,217 |
Loans and advances - Customers | |
Initial adoption of IFRS 9 | |
Financial assets, as originally presented | 16,929 |
Remeasurements | 3,270 |
Financial assets, restated | 20,199 |
Debt instruments. | |
Initial adoption of IFRS 9 | |
Remeasurements | 18 |
Financial assets, restated | 18 |
Available lines of credit cards and non-revolving consumer loans | |
Initial adoption of IFRS 9 | |
Financial assets, as originally presented | 838 |
Remeasurements | 4 |
Financial assets, restated | 842 |
Guarantees and loan commitments of commercial and public sector loans | |
Initial adoption of IFRS 9 | |
Financial assets, as originally presented | 194 |
Remeasurements | (36) |
Financial assets, restated | $ 158 |
Accounting policies - Adoptio_7
Accounting policies - Adoption of IFRS 9 - Coverage ratio (Details) - MXN ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Impairment losses | |||
Initial adoption of IFRS 9 | |||
Financial assets, carrying amount immediately after initial application of IFRS 9 | $ (21,217) | ||
Financial assets at amortized cost category | |||
Initial adoption of IFRS 9 | |||
Financial assets, carrying amount immediately after initial application of IFRS 9 | $ 751,448 | ||
Loans and advances - Customers | Stage 1 | |||
Initial adoption of IFRS 9 | |||
Coverage ratio | 1.28% | ||
Loans and advances - Customers | Stage 2 | |||
Initial adoption of IFRS 9 | |||
Coverage ratio | 19.63% | ||
Loans and advances - Customers | Stage 3 | |||
Initial adoption of IFRS 9 | |||
Coverage ratio | 43.92% | ||
Loans and advances - Customers | Gross carrying amount | |||
Initial adoption of IFRS 9 | |||
Financial assets, carrying amount immediately after initial application of IFRS 9 | $ 626,349 | ||
Loans and advances - Customers | Gross carrying amount | Stage 1 | |||
Initial adoption of IFRS 9 | |||
Financial assets, carrying amount immediately after initial application of IFRS 9 | 583,871 | ||
Loans and advances - Customers | Gross carrying amount | Stage 2 | |||
Initial adoption of IFRS 9 | |||
Financial assets, carrying amount immediately after initial application of IFRS 9 | 24,346 | ||
Loans and advances - Customers | Gross carrying amount | Stage 3 | |||
Initial adoption of IFRS 9 | |||
Financial assets, carrying amount immediately after initial application of IFRS 9 | 18,132 | ||
Loans and advances - Customers | Impairment losses | |||
Initial adoption of IFRS 9 | |||
Financial assets, carrying amount immediately after initial application of IFRS 9 | $ (21,516) | $ (20,199) | $ (17,883) |
Coverage ratio | 3.22% | ||
Loans and advances - Customers | Impairment losses | Stage 1 | |||
Initial adoption of IFRS 9 | |||
Financial assets, carrying amount immediately after initial application of IFRS 9 | (7,035) | $ (7,456) | |
Loans and advances - Customers | Impairment losses | Stage 2 | |||
Initial adoption of IFRS 9 | |||
Financial assets, carrying amount immediately after initial application of IFRS 9 | (5,309) | (4,780) | |
Loans and advances - Customers | Impairment losses | Stage 3 | |||
Initial adoption of IFRS 9 | |||
Financial assets, carrying amount immediately after initial application of IFRS 9 | $ (9,172) | $ (7,963) |
Accounting policies - Tangible
Accounting policies - Tangible and intangible assets (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Tangible assets | |
Period of projection of cash flows | 5 years |
Buildings for own use | Minimum | |
Tangible assets | |
Average annual rate (as a percent) | 2.00% |
Buildings for own use | 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% |
Information Technology (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% |
Accounting policies - Reclassif
Accounting policies - Reclassifications on balance sheet and cash flow (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassifications | |||
Financial liabilities at fair value through profit or loss | $ 153,600 | $ 182,646 | |
Other financial liabilities designated at fair value through profit or loss | 273,725 | 178,265 | |
Financial liabilities at fair value through profit or loss | (29,046) | (10,846) | |
Other financial liabilities at fair value through profit or loss | 95,460 | 11,379 | $ 30,026 |
Reclassification of Financial Assets, Acquired And Pledged | |||
Reclassifications | |||
Financial liabilities at fair value through profit or loss | 28,919 | ||
Other financial liabilities designated at fair value through profit or loss | 142,520 | ||
Financial liabilities at fair value through profit or loss | 88,591 | 19,130 | |
Other financial liabilities at fair value through profit or loss | (88,058) | (62,440) | |
Originally reported amounts | Reclassification of Financial Assets, Acquired And Pledged | |||
Reclassifications | |||
Financial liabilities at fair value through profit or loss | 101,754 | ||
Other financial liabilities designated at fair value through profit or loss | 69,685 | ||
Financial liabilities at fair value through profit or loss | 15,756 | (27,103) | |
Other financial liabilities at fair value through profit or loss | (15,223) | (16,207) | |
Reclassifications | Reclassification of Financial Assets, Acquired And Pledged | |||
Reclassifications | |||
Financial liabilities at fair value through profit or loss | (72,835) | ||
Other financial liabilities designated at fair value through profit or loss | 72,835 | ||
Financial liabilities at fair value through profit or loss | 72,835 | 46,233 | |
Other financial liabilities at fair value through profit or loss | (72,835) | $ (46,233) | |
Short positions | |||
Reclassifications | |||
Financial liabilities at fair value through profit or loss | 9,119 | 28,919 | |
Short positions | Reclassification of Financial Assets, Acquired And Pledged | |||
Reclassifications | |||
Financial liabilities at fair value through profit or loss | 28,919 | ||
Short positions | Originally reported amounts | Reclassification of Financial Assets, Acquired And Pledged | |||
Reclassifications | |||
Financial liabilities at fair value through profit or loss | 101,754 | ||
Short positions | Reclassifications | Reclassification of Financial Assets, Acquired And Pledged | |||
Reclassifications | |||
Financial liabilities at fair value through profit or loss | (72,835) | ||
Deposits - Central banks | |||
Reclassifications | |||
Other financial liabilities designated at fair value through profit or loss | 111,574 | 30,995 | |
Deposits - Credit institutions | |||
Reclassifications | |||
Other financial liabilities designated at fair value through profit or loss | 29,689 | 13,801 | |
Deposits - Credit institutions | Reclassification of Financial Assets, Acquired And Pledged | |||
Reclassifications | |||
Other financial liabilities designated at fair value through profit or loss | 13,801 | ||
Deposits - Credit institutions | Originally reported amounts | Reclassification of Financial Assets, Acquired And Pledged | |||
Reclassifications | |||
Other financial liabilities designated at fair value through profit or loss | 4,316 | ||
Deposits - Credit institutions | Reclassifications | Reclassification of Financial Assets, Acquired And Pledged | |||
Reclassifications | |||
Other financial liabilities designated at fair value through profit or loss | 9,485 | ||
Deposits - Customers | |||
Reclassifications | |||
Other financial liabilities designated at fair value through profit or loss | 129,216 | 128,719 | |
Customer deposits - Repurchase agreements | |||
Reclassifications | |||
Other financial liabilities designated at fair value through profit or loss | $ 129,216 | 128,719 | |
Customer deposits - Repurchase agreements | Reclassification of Financial Assets, Acquired And Pledged | |||
Reclassifications | |||
Other financial liabilities designated at fair value through profit or loss | 128,719 | ||
Customer deposits - Repurchase agreements | Originally reported amounts | Reclassification of Financial Assets, Acquired And Pledged | |||
Reclassifications | |||
Other financial liabilities designated at fair value through profit or loss | 65,369 | ||
Customer deposits - Repurchase agreements | Reclassifications | Reclassification of Financial Assets, Acquired And Pledged | |||
Reclassifications | |||
Other financial liabilities designated at fair value through profit or loss | $ 63,350 |
Significant events - Sale agree
Significant events - Sale agreement (Details) - MXN ($) $ in Millions | Jan. 02, 2018 | Oct. 31, 2018 | Dec. 31, 2018 | Jul. 24, 2015 |
Related-party transactions | ||||
Increase in equity | $ 506 | |||
Banco Santander, S.A. (Spain) | ||||
Related-party transactions | ||||
Sale price subject to conditions | $ 1,191 | |||
Banco S3 Mexico, SA, Institucion de Banca Multiple | ||||
Related-party transactions | ||||
Sale price subject to conditions | $ 850 | $ 722 | ||
Total amount was paid (as a percent) | 90.00% | |||
Remaining amount to be paid (as a percent) | 10.00% | |||
Sales price that can be adjusted (as a percent) | 10.00% | |||
Decrease in agreed sale price | 128 | |||
Increase in equity | $ 506 |
Significant events - Acquisitio
Significant events - Acquisition of shares (Details) - Bolsa Mexicana de Valores, S.A.B. de C.V. $ in Millions | Nov. 22, 2017MXN ($)shares |
Related-party transactions | |
Number of shares purchased | shares | 14,176,749 |
Payment for available for sale financial assets | $ | $ 449 |
Significant events - Corporate
Significant events - Corporate Restructuring (Details) $ in Millions | Jan. 25, 2018MXN ($) | Jan. 01, 2018MXN ($)item | Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | Dec. 08, 2017MXN ($) |
Related-party transactions | ||||||
Number of shares issued | item | 1 | |||||
Dividend Approved | $ 1,950 | $ 1,950 | ||||
Dividends | $ 1,822 | $ 10,293 | $ 11,050 | 8,910 | ||
Assets | 1,467,548 | 1,408,724 | 1,329,191 | |||
Liabilities | 1,332,750 | 1,285,437 | $ 1,213,781 | |||
Effect on sale of the Brokerage House, net of income tax | $ 19 | 19 | ||||
Recognition of equity-settled share-based payments | (82) | 336 | ||||
Accumulated Reserves | ||||||
Related-party transactions | ||||||
Effect on sale of the Brokerage House, net of income tax | 19 | |||||
Recognition of equity-settled share-based payments | $ (82) | 319 | ||||
Brokerage House | ||||||
Related-party transactions | ||||||
Sale price subject to conditions | $ 1,175 | |||||
Former Group | ||||||
Related-party transactions | ||||||
Assets | 117 | |||||
Liabilities | $ 175 | |||||
New Financial Group | ||||||
Related-party transactions | ||||||
Percentage of voting equity interests acquired | 74.96% | |||||
New Financial Group | Brokerage House | ||||||
Related-party transactions | ||||||
Percentage of voting equity interests acquired | 99.99% |
Significant events - Acquisit_2
Significant events - Acquisition of Isban Mexico, S.A. de C.V (Details) - MXN ($) $ in Millions | Oct. 11, 2018 | Dec. 31, 2018 |
Carrying amount of the assets acquired and liabilities assumed | ||
Effect on acquisition | $ (225) | |
Santander Tecnologia Mexico, S.A. de C.V. (formerly Isban Mexico, S.A. de C.V.) | ||
Carrying amount of the assets acquired and liabilities assumed | ||
Cash and cash equivalents | $ 715 | |
Property, plant and equipment | 457 | |
Other assets | 318 | |
Assets | 1,490 | |
Other liabilities | (638) | |
Net assets acquired | 852 | |
Acquisition cost | (1,077) | |
Effect on acquisition | $ (225) |
Significant events - Subordinat
Significant events - Subordinated Capital Notes (Details) $ in Thousands | Jan. 30, 2019MXN ($) | Oct. 01, 2018 | Sep. 26, 2018MXN ($) | Dec. 27, 2013 | Dec. 31, 2019USD ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) |
Disclosure of financial liabilities [line items] | ||||||||
Outstanding issue amount | $ 1,299,114,000 | $ 1,259,588,000 | ||||||
Financial liabilities at amortized cost | Tier II Subordinated Capital Notes | ||||||||
Disclosure of financial liabilities [line items] | ||||||||
Annual interest rate (as percent) | 5.95% | 5.95% | 5.95% | |||||
Maturity period of debt instruments issued | 10 years | |||||||
Outstanding issue amount | $ 1,222,907 | 1,546,000 | $ 26,054,000 | |||||
Percentage of existing holders tendered the cash offer | 94.07% | |||||||
Amount of subordinated liability amortized | $ 77,093 | |||||||
Financial liabilities at amortized cost | Subordinated Additional Tier I Capital Notes | ||||||||
Disclosure of financial liabilities [line items] | ||||||||
Annual interest rate (as percent) | 8.50% | |||||||
Outstanding issue amount | $ 500,000,000 | $ 9,420,000 | $ 9,809,000 | $ 9,831,000 |
Significant events - Tier II Su
Significant events - Tier II Subordinated Capital Notes (Details) - Financial liabilities at amortized cost - Tier II Subordinated Capital Notes - USD ($) $ in Millions | Oct. 01, 2018 | Sep. 26, 2018 | Dec. 27, 2013 |
Financial liabilities | |||
Issues | $ 1,300 | $ 1,300 | |
Annual interest rate (as percent) | 5.95% | 5.95% | 5.95% |
Banco Santander, S.A. (Spain) | |||
Financial liabilities | |||
Issues | $ 975 | ||
Subordinate notes acquired (as a percent) | 75.00% |
Significant events - Exchange O
Significant events - Exchange Offer (Details) - MXN ($) $ in Millions | 1 Months Ended | |
Sep. 06, 2019 | Aug. 18, 2019 | |
Other capital disclosures | ||
Reclassification from Equity due to exchange offer | $ 122 | |
Banco Santander, S.A. (Spain) | Series B shares | ||
Other capital disclosures | ||
Shares of parent issued in exchange of entity's shares | 0.337 | |
Banco Santander, S.A. (Spain) | ADS | ||
Other capital disclosures | ||
Shares of parent issued in exchange of entity's shares | 1.685 |
Distribution of the Bank's pr_3
Distribution of the Bank's profit and Earnings per share (Details) - MXN ($) $ / shares in Units, $ in Millions | Nov. 28, 2019 | Apr. 29, 2019 | Dec. 28, 2018 | Jun. 29, 2018 | Jan. 25, 2018 | Dec. 27, 2017 | May 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Distribution of the Bank?s profit and Earnings per share | ||||||||||
Profit for the year | $ 20,381 | $ 19,356 | $ 18,678 | |||||||
Dividends declared | $ 5,450 | $ 4,843 | $ 4,949 | $ 4,279 | $ 4,676 | $ 4,234 | $ 10,293 | $ 9,228 | $ 8,910 | |
Dividend per share (in pesos per share) | $ 1.52 | $ 1.36 | $ 1.31 | |||||||
Dividends declared | $ 1,822 | $ 10,293 | $ 11,050 | $ 8,910 |
Distribution of the Bank's pr_4
Distribution of the Bank's profit and Earnings per share - EPS Basic (Details) - MXN ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic earnings per share | |||
Profit attributable to the Parent | $ 20,381 | $ 19,353 | $ 18,678 |
Weighted average number of shares outstanding | 6,775,455,458 | 6,776,220,369 | 6,777,381,551 |
Basic earnings per share (in pesos per share) | $ 3.01 | $ 2.86 | $ 2.76 |
Distribution of the Bank's pr_5
Distribution of the Bank's profit and Earnings per share - EPS Diluted (Details) - MXN ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Diluted earnings per share | |||
Profit attributable to the Parent | $ 20,381 | $ 19,353 | $ 18,678 |
Weighted average number of shares outstanding | 6,775,455,458 | 6,776,220,369 | 6,777,381,551 |
Dilutive effect of rights on shares | 11,538,899 | 10,773,988 | 9,612,806 |
Adjusted number of shares | 6,786,994,357 | 6,786,994,357 | 6,786,994,357 |
Diluted earnings per share (in pesos per share) | $ 3 | $ 2.85 | $ 2.75 |
Compensation of directors, ex_2
Compensation of directors, executive officers and other key management personnel (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current executive directors | |||
Compensation | |||
Compensation and benefits | $ 21 | $ 15 | $ 12 |
Executive officers | |||
Compensation | |||
Compensation and benefits | 456 | 496 | 416 |
Post-employment benefits | 472 | 331 | $ 265 |
Loans receivable | $ 102 | $ 48 |
Cash and balances with the Ce_3
Cash and balances with the Central Bank (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and balances with the Central Bank | ||
Cash | $ 25,793 | $ 25,080 |
Central Bank compulsory deposits | 28,094 | 28,094 |
Deposits in the Central Bank | 11,292 | 2,110 |
Accrued interest | 28 | 26 |
Cash and balances with the Central Bank | $ 65,207 | $ 55,310 |
Loans and advances to credit _3
Loans and advances to credit institutions - Classification (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets | ||
Financial assets | $ 1,407,320 | $ 1,361,558 |
Loans and advances - Credit institutions | ||
Financial assets | ||
Financial assets | 91,033 | 145,366 |
Financial assets designated at fair value through profit or loss | Loans and advances - Credit institutions | ||
Financial assets | ||
Financial assets | 54,138 | 98,332 |
Financial assets at amortized cost category | Loans and advances - Credit institutions | ||
Financial assets | ||
Financial assets | $ 36,895 | $ 47,034 |
Loans and advances to credit _4
Loans and advances to credit institutions - Type (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financial assets | ||
Total financial assets | $ 1,407,320 | $ 1,361,558 |
Loans and advances - Credit institutions | ||
Financial assets | ||
Reciprocal accounts | 14,597 | 15,310 |
Time deposits | 29 | 51 |
Guarantee deposits - Collateral delivered for OTC financial derivatives transactions (Note 32) | 14,300 | 29,508 |
Reverse repurchase agreements | 54,138 | 98,332 |
Other accounts | 7,969 | 2,165 |
Total financial assets | 91,033 | 145,366 |
Loans and advances - Credit institutions | Mexican peso | ||
Financial assets | ||
Total financial assets | 73,268 | 100,409 |
Loans and advances - Credit institutions | US dollar | ||
Financial assets | ||
Total financial assets | 17,429 | 43,986 |
Loans and advances - Credit institutions | Other currencies | ||
Financial assets | ||
Total financial assets | 336 | 971 |
Loans and advances - Credit institutions | SPAIN | ||
Financial assets | ||
Time deposits | $ 29 | $ 51 |
Time deposits repricing number of days | 182 days | 182 days |
Loans and advances - Credit institutions | SPAIN | Fixed interest rate | ||
Financial assets | ||
Borrowings, interest rate | 1.50% | 1.50% |
Loans and advances to credit _5
Loans and advances to credit institutions - Restricted assets (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets | ||
Financial instruments received as collateral | $ 82,342 | $ 111,937 |
Financial instruments in connection with derivative transactions in organized markets | ||
Financial assets | ||
Financial assets pledged as collateral | 5,153 | 3,689 |
Financial instrument in connection with OTC derivative transactions | Loans and advances - Credit institutions | Financial assets at amortized cost category | ||
Financial assets | ||
Financial assets pledged as collateral | 14,300 | 29,508 |
Financial instruments in connection with repurchase agreement transactions | Loans and advances - Credit institutions | Financial assets designated at fair value through profit or loss | ||
Financial assets | ||
Financial instruments received as collateral | $ 54,097 | $ 98,458 |
Debt Instruments - Classificati
Debt Instruments - Classification (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets | ||
Financial assets | $ 1,407,320 | $ 1,361,558 |
Debt instruments. | ||
Financial assets | ||
Financial assets | 355,333 | 317,124 |
Financial assets at fair value through profit or loss category | Debt instruments. | ||
Financial assets | ||
Financial assets | 110,613 | 110,222 |
Financial assets at fair value through other comprehensive income category | Debt instruments. | ||
Financial assets | ||
Financial assets | 233,463 | 154,483 |
Financial assets at amortized cost category | Debt instruments. | ||
Financial assets | ||
Financial assets | $ 11,257 | $ 52,419 |
Debt Instruments - Type and cur
Debt Instruments - Type and currency (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets | ||
Financial assets | $ 1,407,320 | $ 1,361,558 |
Debt instruments. | ||
Financial assets | ||
Financial assets | 355,333 | 317,124 |
Debt instruments. | Mexican peso | ||
Financial assets | ||
Financial assets | 243,132 | 227,252 |
Debt instruments. | US dollar | ||
Financial assets | ||
Financial assets | 47,897 | 27,749 |
Debt instruments. | Brazilian real | ||
Financial assets | ||
Financial assets | 30,225 | 31,210 |
Debt instruments. | Other currencies | ||
Financial assets | ||
Financial assets | 34,079 | 30,913 |
Issued by financial institutions | ||
Financial assets | ||
Financial assets | 2,270 | 5,998 |
Other debt securities | ||
Financial assets | ||
Financial assets | 10,463 | 3,282 |
SPAIN | Government debt securities | ||
Financial assets | ||
Financial assets | 273,487 | 253,547 |
Financial assets pledged as collateral | 4,472 | 4,769 |
Group | Government debt securities | ||
Financial assets | ||
Financial assets | 69,113 | 54,297 |
BRAZIL | Government debt securities | ||
Financial assets | ||
Financial assets | 30,225 | 31,210 |
UNITED STATES | US Government Treasury Bills (T-BILLS) | ||
Financial assets | ||
Financial assets | 34,506 | $ 23,087 |
UNITED STATES | US Government Treasury Notes (T-NOTES) | ||
Financial assets | ||
Financial assets | $ 4,382 |
Debt Instruments - FV through p
Debt Instruments - FV through profit or loss (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) | |
Financial assets | ||
Financial assets | $ 1,407,320 | $ 1,361,558 |
Debt instruments. | ||
Financial assets | ||
Financial assets | $ 355,333 | $ 317,124 |
Federal Mexican Government Development Bonds in UDIS (UDIBONDS) | ||
Financial assets | ||
UDI equivalent (in pesos) | 6.399010 | 6.226630 |
US Government Treasury Bills (T-BILLS) | UNITED STATES | ||
Financial assets | ||
Financial assets | $ 34,506 | $ 23,087 |
US Government Treasury Notes (T-NOTES) | UNITED STATES | ||
Financial assets | ||
Financial assets | 4,382 | |
Financial assets at fair value through profit or loss category | Debt instruments. | ||
Financial assets | ||
Financial assets | 110,613 | 110,222 |
Financial assets at fair value through profit or loss category | Federal Treasury Securities (CETES) | ||
Financial assets | ||
Financial assets | 25,348 | 14,270 |
Financial assets at fair value through profit or loss category | United Mexican States Bonds (UMS) | ||
Financial assets | ||
Financial assets | 30 | 40 |
Financial assets at fair value through profit or loss category | Federal Mexican Government Development Bonds (BONDS) | ||
Financial assets | ||
Financial assets | 29,708 | 20,910 |
Financial assets at fair value through profit or loss category | M and M10 Mexican Government Bonds | ||
Financial assets | ||
Financial assets | 11,601 | 27,783 |
Financial assets at fair value through profit or loss category | Mexican Bank Saving Protection Bonds (BPATs) | ||
Financial assets | ||
Financial assets | 13,750 | 29,208 |
Financial assets at fair value through profit or loss category | Federal Mexican Government Development Bonds in UDIS (UDIBONDS) | ||
Financial assets | ||
Financial assets | 4,619 | 10,524 |
Financial assets at fair value through profit or loss category | US Government Treasury Bills (T-BILLS) | UNITED STATES | ||
Financial assets | ||
Financial assets | 10,928 | 1,473 |
Financial assets at fair value through profit or loss category | US Government Treasury Notes (T-NOTES) | UNITED STATES | ||
Financial assets | ||
Financial assets | 4,382 | |
Financial assets at fair value through profit or loss category | Debt securities, Other than government debt securities | ||
Financial assets | ||
Financial assets | $ 10,247 | $ 6,014 |
Debt Instruments - FV through_2
Debt Instruments - FV through profit or loss restricted assets (Details) - Financial assets at fair value through profit or loss category - Debt instruments. - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial instrument in connection with OTC derivative transactions | ||
Financial assets | ||
Financial assets pledged as collateral | $ 4,472 | $ 4,769 |
Financial instruments in connection with securities loans transactions | ||
Financial assets | ||
Financial assets pledged as collateral | 8,678 | 27,592 |
Financial instruments in connection with securities loans transactions | Central Bank, Lender | ||
Financial assets | ||
Financial assets pledged as collateral | 27,301 | |
Financial instruments in connection with repurchase agreement transactions | ||
Financial assets | ||
Financial assets pledged as collateral | $ 92,764 | $ 74,548 |
Debt Instruments - FVTOCI (Deta
Debt Instruments - FVTOCI (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets | ||
Financial assets | $ 1,407,320 | $ 1,361,558 |
Debt instruments. | ||
Financial assets | ||
Financial assets | 355,333 | 317,124 |
SPAIN | Government debt securities | ||
Financial assets | ||
Financial assets | 273,487 | 253,547 |
Group | Government debt securities | ||
Financial assets | ||
Financial assets | 69,113 | 54,297 |
BRAZIL | Government debt securities | ||
Financial assets | ||
Financial assets | 30,225 | 31,210 |
Financial assets at fair value through other comprehensive income category | Debt instruments. | ||
Financial assets | ||
Financial assets | 233,463 | 154,483 |
Financial assets at fair value through other comprehensive income category | Debt instruments. | Gross carrying amount | ||
Financial assets | ||
Financial assets | 233,463 | |
Financial assets at fair value through other comprehensive income category | CETES | ||
Financial assets | ||
Financial assets | 17,146 | |
Financial assets at fair value through other comprehensive income category | Debt securities, Other than government debt securities | ||
Financial assets | ||
Financial assets | 2,486 | 3,266 |
Financial assets at fair value through other comprehensive income category | Debt securities, Other than government debt securities | Gross carrying amount | ||
Financial assets | ||
Financial assets | 2,486 | |
Financial assets at fair value through other comprehensive income category | SPAIN | Government debt securities | Gross carrying amount | ||
Financial assets | ||
Financial assets | 177,174 | |
Financial assets at fair value through other comprehensive income category | SPAIN | United Mexican States Bonds (UMS) | ||
Financial assets | ||
Financial assets | 43,058 | 34,688 |
Financial assets at fair value through other comprehensive income category | SPAIN | M, M3 and M5 Mexican Government Bonds | ||
Financial assets | ||
Financial assets | 117,974 | 29,919 |
Financial assets at fair value through other comprehensive income category | SPAIN | Mexican Bank Saving Protection Bonds (BPATs) | ||
Financial assets | ||
Financial assets | 11,499 | 11,509 |
Financial assets at fair value through other comprehensive income category | SPAIN | Federal Mexican Government Development Bonds in UDIS (UDIBONDS) | ||
Financial assets | ||
Financial assets | 4,643 | 5,131 |
Financial assets at fair value through other comprehensive income category | Group | Government debt securities | Gross carrying amount | ||
Financial assets | ||
Financial assets | 53,803 | |
Financial assets at fair value through other comprehensive income category | UNITED STATES | Government debt securities | ||
Financial assets | ||
Financial assets | 23,578 | 21,614 |
Financial assets at fair value through other comprehensive income category | BRAZIL | Government debt securities | ||
Financial assets | ||
Financial assets | $ 30,225 | $ 31,210 |
Debt Instruments - Financial as
Debt Instruments - Financial assets at fair value through other comprehensive - Restricted assets (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial instruments in connection with repurchase agreement transactions | Financial assets at fair value through other comprehensive income category | Debt instruments. | ||
Financial assets | ||
Financial assets pledged as collateral for liabilities or contingent liabilities | $ 96,681 | $ 18,463 |
Debt Instruments - Carrying amo
Debt Instruments - Carrying amount of financial assets at FV through OCI (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for impairment losses | ||
Financial assets | $ 1,407,320 | $ 1,361,558 |
Debt instruments. | ||
Allowance for impairment losses | ||
Financial assets | 355,333 | 317,124 |
Government debt securities | SPAIN | ||
Allowance for impairment losses | ||
Financial assets | 273,487 | 253,547 |
Government debt securities | Group | ||
Allowance for impairment losses | ||
Financial assets | 69,113 | 54,297 |
Financial assets at fair value through other comprehensive income category | Debt instruments. | ||
Allowance for impairment losses | ||
Financial assets | 233,463 | 154,483 |
Transfers out of Level 1 into Level 2 | 0 | |
Transfers out of Level 2 into Level 1 | 0 | |
Financial assets at fair value through other comprehensive income category | Debt instruments. | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | 233,463 | |
Financial assets at fair value through other comprehensive income category | Debt instruments. | Subtotal of Stage 1 and 2 | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | 233,463 | |
Financial assets at fair value through other comprehensive income category | Debt instruments. | Stage 1 | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | 233,463 | |
Financial assets at fair value through other comprehensive income category | Government debt securities | SPAIN | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | 177,174 | |
Financial assets at fair value through other comprehensive income category | Government debt securities | SPAIN | Subtotal of Stage 1 and 2 | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | 177,174 | |
Financial assets at fair value through other comprehensive income category | Government debt securities | SPAIN | Stage 1 | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | 177,174 | |
Financial assets at fair value through other comprehensive income category | Government debt securities | Group | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | 53,803 | |
Financial assets at fair value through other comprehensive income category | Government debt securities | Group | Subtotal of Stage 1 and 2 | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | 53,803 | |
Financial assets at fair value through other comprehensive income category | Government debt securities | Group | Stage 1 | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | 53,803 | |
Financial assets at fair value through other comprehensive income category | Debt securities, Other than government debt securities | ||
Allowance for impairment losses | ||
Financial assets | 2,486 | $ 3,266 |
Financial assets at fair value through other comprehensive income category | Debt securities, Other than government debt securities | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | 2,486 | |
Financial assets at fair value through other comprehensive income category | Debt securities, Other than government debt securities | Subtotal of Stage 1 and 2 | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | 2,486 | |
Financial assets at fair value through other comprehensive income category | Debt securities, Other than government debt securities | Stage 1 | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | $ 2,486 |
Debt Instruments - Issuer ratin
Debt Instruments - Issuer rating (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets | ||
Financial assets | $ 1,407,320 | $ 1,361,558 |
Debt instruments. | ||
Financial assets | ||
Financial assets | $ 355,333 | $ 317,124 |
Financial assets (as a percent) | 100.00% | 100.00% |
Debt instruments. | AAA | ||
Financial assets | ||
Financial assets | $ 38,888 | $ 23,087 |
Financial assets (as a percent) | 10.94% | 7.28% |
Debt instruments. | A | ||
Financial assets | ||
Financial assets | $ 239,408 | $ 187,384 |
Financial assets (as a percent) | 67.38% | 59.09% |
Debt instruments. | BBB | ||
Financial assets | ||
Financial assets | $ 43,088 | $ 35,575 |
Financial assets (as a percent) | 12.13% | 11.22% |
Debt instruments. | BB | ||
Financial assets | ||
Financial assets | $ 3,471 | $ 39,637 |
Financial assets (as a percent) | 0.98% | 12.50% |
Debt instruments. | Below B | ||
Financial assets | ||
Financial assets | $ 30,225 | $ 31,210 |
Financial assets (as a percent) | 8.51% | 9.84% |
Debt instruments. | Below BBB | ||
Financial assets | ||
Financial assets | $ 253 | $ 231 |
Financial assets (as a percent) | 0.07% | 0.07% |
Private Debt | ||
Financial assets | ||
Financial assets | $ 12,733 | $ 9,280 |
Private Debt | A | ||
Financial assets | ||
Financial assets | 12,480 | 3,189 |
Private Debt | BBB | ||
Financial assets | ||
Financial assets | 847 | |
Private Debt | BB | ||
Financial assets | ||
Financial assets | 5,013 | |
Private Debt | Below BBB | ||
Financial assets | ||
Financial assets | 253 | 231 |
Sovereign Debt | ||
Financial assets | ||
Financial assets | 342,600 | 307,844 |
Sovereign Debt | AAA | ||
Financial assets | ||
Financial assets | 38,888 | 23,087 |
Sovereign Debt | A | ||
Financial assets | ||
Financial assets | 226,928 | 184,195 |
Sovereign Debt | BBB | ||
Financial assets | ||
Financial assets | 43,088 | 34,728 |
Sovereign Debt | BB | ||
Financial assets | ||
Financial assets | 3,471 | 34,624 |
Sovereign Debt | Below B | ||
Financial assets | ||
Financial assets | $ 30,225 | $ 31,210 |
Debt Instruments - Financial _2
Debt Instruments - Financial assets at amortized cost (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financial assets | ||
Financial assets | $ 1,407,320 | $ 1,361,558 |
Debt instruments. | ||
Financial assets | ||
Financial assets | 355,333 | 317,124 |
Financial assets at amortized cost category | Debt instruments. | ||
Financial assets | ||
Financial assets | 11,257 | 52,419 |
Transfers out of Level 1 into Level 2 | 0 | |
Transfers out of Level 2 into Level 1 | 0 | |
Financial assets at amortized cost category | Debt instruments. | Unquoted | ||
Financial assets | ||
Financial assets | 3,471 | 3,208 |
Financial assets at amortized cost category | Debt instruments. | Quoted | ||
Financial assets | ||
Financial assets | 7,786 | 49,211 |
Financial assets at amortized cost category | Special CETES | ||
Financial assets | ||
Financial assets | 3,471 | 3,208 |
Financial assets at amortized cost category | BREMS R | ||
Financial assets | ||
Financial assets | $ 7,786 | 7,785 |
Financial assets at amortized cost category | M, M3 and M5 Mexican Government Bonds | ||
Financial assets | ||
Financial assets | $ 41,426 |
Debt Instruments - Financial _3
Debt Instruments - Financial assets at amortized cost restricted assets (Details) - Financial assets at amortized cost category - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
BREMS R | Financial instruments in connection with repurchase agreement transactions | ||
Financial assets | ||
Financial assets pledged as collateral for liabilities or contingent liabilities | $ 4,999 | $ 6,622 |
M, M3 and M5 Mexican Government Bonds | Financial instruments in connection with repurchase agreement transactions | ||
Financial assets | ||
Financial assets pledged as collateral for liabilities or contingent liabilities | 1,672 | |
M, M3 and M5 Mexican Government Bonds | Financial instruments in connection with securities loans transactions | ||
Financial assets | ||
Financial assets pledged as collateral for liabilities or contingent liabilities | $ 535 |
Debt Instruments - Carrying a_2
Debt Instruments - Carrying amount of financial assets at amortized cost (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Allowance for impairment losses | ||
Financial assets | $ 1,407,320 | $ 1,361,558 |
Debt instruments. | ||
Allowance for impairment losses | ||
Financial assets | 355,333 | 317,124 |
Government debt securities | SPAIN | ||
Allowance for impairment losses | ||
Financial assets | 273,487 | 253,547 |
Financial assets at amortized cost category | Debt instruments. | ||
Allowance for impairment losses | ||
Financial assets | 11,257 | $ 52,419 |
Financial assets at amortized cost category | Government debt securities | SPAIN | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | 11,257 | |
Financial assets at amortized cost category | Government debt securities | SPAIN | Subtotal of Stage 1 and 2 | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | 11,257 | |
Financial assets at amortized cost category | Government debt securities | SPAIN | Stage 1 | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | $ 11,257 |
Debt Instruments - Changes in f
Debt Instruments - Changes in financial assets at FVTOCI (Details) - MXN ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financial assets | ||||
Valuation adjustments, FVTOCI | $ 4,108 | $ (1,226) | ||
Valuation adjustments, AFS | $ 1,932 | |||
Amounts reclassified to consolidated income statement, FVTOCI | (189) | 69 | ||
Amounts reclassified to consolidated income statement, AFS | (9) | |||
Financial assets | 1,407,320 | 1,361,558 | ||
Debt instruments. | ||||
Financial assets | ||||
Valuation adjustments, FVTOCI | 4,108 | (1,226) | ||
Financial assets | 355,333 | 317,124 | ||
Financial assets at fair value through other comprehensive income category | ||||
Financial assets | ||||
Financial assets, Reclassification, Adjustments on initial adoption of IFRS 9 | 92,611 | |||
Financial assets, restated | 92,611 | |||
Financial assets at fair value through other comprehensive income category | Debt instruments. | ||||
Financial assets | ||||
Financial assets, as originally presented | 154,483 | 164,947 | ||
Financial assets, Reclassification, Adjustments on initial adoption of IFRS 9 | (73,131) | |||
Financial assets, restated | 154,483 | 91,816 | ||
Net additions/(disposals), FVTOCI | 75,061 | 63,824 | ||
Valuation adjustments, FVTOCI | 4,108 | (1,226) | ||
Amounts reclassified to consolidated income statement, FVTOCI | (189) | 69 | 69 | |
Financial assets | 233,463 | $ 154,483 | ||
Financial assets at fair value through other comprehensive income category | Debt instruments. | Gross carrying amount | ||||
Financial assets | ||||
Financial assets | $ 233,463 | |||
Financial assets available for sale | ||||
Financial assets | ||||
Financial assets, as originally presented | 165,742 | |||
Financial assets, Reclassification, Adjustments on initial adoption of IFRS 9 | (165,742) | |||
Financial assets available for sale | Debt instruments. | ||||
Financial assets | ||||
Financial assets, as originally presented | $ 154,318 | |||
Financial assets, restated | $ 154,318 | |||
Net additions/(disposals), AFS | 8,703 | |||
Valuation adjustments, AFS | 1,935 | |||
Amounts reclassified to consolidated income statement, AFS | (9) | |||
Financial assets | $ 164,947 |
Debt Instruments - Allowance fo
Debt Instruments - Allowance for impairment losses (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for impairment losses | |||
Financial assets | $ (1,407,320) | $ (1,361,558) | |
Impairment losses on financial assets | 19,220 | 18,810 | $ 18,820 |
Debt instruments. | |||
Allowance for impairment losses | |||
Financial assets | (355,333) | (317,124) | |
Debt instruments. | Impairment losses | |||
Allowance for impairment losses | |||
Financial assets | 23 | 20 | |
Debt instruments. | Stage 1 | Impairment losses | |||
Allowance for impairment losses | |||
Financial assets | 23 | 20 | |
Government debt securities | SPAIN | |||
Allowance for impairment losses | |||
Financial assets | (273,487) | (253,547) | |
Government debt securities | Group | |||
Allowance for impairment losses | |||
Financial assets | (69,113) | (54,297) | |
Issued by financial institutions | |||
Allowance for impairment losses | |||
Financial assets | (2,270) | (5,998) | |
Other debt securities | |||
Allowance for impairment losses | |||
Financial assets | (10,463) | (3,282) | |
Financial assets at fair value through other comprehensive income category | |||
Allowance for impairment losses | |||
Impairment losses on financial assets | 4 | ||
Financial assets at fair value through other comprehensive income category | Debt instruments. | |||
Allowance for impairment losses | |||
Financial assets | (233,463) | (154,483) | |
Impairment losses on financial assets | (2) | ||
Financial assets at fair value through other comprehensive income category | Debt instruments. | Impairment losses | |||
Allowance for impairment losses | |||
Financial assets | 23 | 20 | |
Change in allowance for impairment losses | 3 | 2 | |
Financial assets at fair value through other comprehensive income category | Debt instruments. | Stage 1 | Impairment losses | |||
Allowance for impairment losses | |||
Financial assets | 23 | 20 | |
Financial assets at fair value through other comprehensive income category | Government debt securities | SPAIN | Impairment losses | |||
Allowance for impairment losses | |||
Financial assets | 22 | 19 | |
Financial assets at fair value through other comprehensive income category | Government debt securities | SPAIN | Stage 1 | Impairment losses | |||
Allowance for impairment losses | |||
Financial assets | 22 | 19 | |
Financial assets at fair value through other comprehensive income category | Other debt securities | Impairment losses | |||
Allowance for impairment losses | |||
Financial assets | 1 | 1 | |
Financial assets at fair value through other comprehensive income category | Other debt securities | Stage 1 | Impairment losses | |||
Allowance for impairment losses | |||
Financial assets | 1 | 1 | |
Financial assets at amortized cost category | |||
Allowance for impairment losses | |||
Impairment losses on financial assets | 19,220 | 18,806 | |
Financial assets at amortized cost category | Debt instruments. | |||
Allowance for impairment losses | |||
Financial assets | (11,257) | (52,419) | |
Impairment losses on financial assets | $ 0 | $ 0 |
Equity instruments - Detail by
Equity instruments - Detail by classification and type (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial instruments | ||
Total financial assets | $ 1,407,320 | $ 1,361,558 |
Equity instruments. | ||
Financial instruments | ||
Total financial assets | 6,409 | 2,884 |
SPAIN | Equity instruments. | ||
Financial instruments | ||
Total financial assets | 6,409 | 2,884 |
Financial assets at fair value through profit or loss category | Equity instruments. | ||
Financial instruments | ||
Total financial assets | 5,767 | 2,349 |
Financial assets at fair value through other comprehensive income category | Equity instruments. | ||
Financial instruments | ||
Total financial assets | $ 642 | $ 535 |
Equity instruments - Collateral
Equity instruments - Collateral (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial instruments | ||
Financial instruments received as collateral | $ 82,342 | $ 111,937 |
Financial instruments in connection with securities loans transactions | Equity instruments. | ||
Financial instruments | ||
Financial instruments received as collateral | 14 | 333 |
Financial assets pledged as collateral | 0 | |
Financial assets at fair value through profit or loss category | Financial instruments in connection with securities loans transactions | Equity instruments. | ||
Financial instruments | ||
Financial instruments received as collateral | 14 | 333 |
Financial assets pledged as collateral | $ 0 | $ 959 |
Equity instruments - Changes in
Equity instruments - Changes in financial assets at FVTOCI (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial instruments | |||
Beginning balance, FVTOCI | $ 155,789 | ||
Valuation adjustments, FVTOCI | 4,108 | $ (1,226) | |
Valuation adjustments, AFS | $ 1,932 | ||
Amounts reclassified to consolidated income statement, FVTOCI | (189) | 69 | |
Amounts reclassified to consolidated income statement, AFS | (9) | ||
Ending balance, FVTOCI | 236,980 | 155,789 | |
Equity instruments. | |||
Financial instruments | |||
Beginning balance, FVTOCI | 535 | 795 | |
Beginning balance, AFS | 795 | 326 | |
Recognition of own equity instruments held for future equity-settled share-based payments | (247) | ||
Transfer to non-current assets held for sale, AFS | 472 | ||
Valuation adjustments, FVTOCI | 107 | (13) | |
Valuation adjustments, AFS | (3) | ||
Ending balance, FVTOCI | 642 | 535 | 795 |
Ending balance, AFS | $ 795 | ||
Financial assets at fair value through other comprehensive income category | Equity instruments. | |||
Financial instruments | |||
Valuation adjustments, FVTOCI | $ 107 | $ (13) |
Trading derivatives (assets a_3
Trading derivatives (assets and liabilities) and Short positions - Trading derivatives (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial instruments | ||
Financial assets at fair value through profit or loss | $ 268,127 | $ 267,524 |
Financial liabilities at fair value through profit or loss | 153,600 | 182,646 |
Trading derivative liabilities | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss | 144,481 | 153,727 |
Trading derivative liabilities | Interest rate risk | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss | 76,639 | 71,578 |
Trading derivative liabilities | Currency risk | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss | 67,623 | 80,986 |
Trading derivative liabilities | Price risk | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss | 219 | 1,163 |
Trading derivative assets | ||
Financial instruments | ||
Financial assets at fair value through profit or loss | 151,747 | 154,953 |
Trading derivative assets | Interest rate risk | ||
Financial instruments | ||
Financial assets at fair value through profit or loss | 80,499 | 71,269 |
Trading derivative assets | Currency risk | ||
Financial instruments | ||
Financial assets at fair value through profit or loss | 71,026 | 82,619 |
Trading derivative assets | Price risk | ||
Financial instruments | ||
Financial assets at fair value through profit or loss | $ 222 | $ 1,065 |
Trading derivatives (assets a_4
Trading derivatives (assets and liabilities) and Short positions - Short positions (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial instruments | ||
Financial liabilities at fair value through profit or loss | $ 153,600 | $ 182,646 |
Short positions | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss | 9,119 | 28,919 |
Short positions - Securities loans | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss | 8,280 | 28,239 |
Short positions, Securities loans - Debt instruments | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss | 8,280 | 27,279 |
Short positions, Securities loans - Equity instruments | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss | 960 | |
Short positions, Short sales - Debt instruments | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss | $ 839 | $ 680 |
Loans and advances to custome_3
Loans and advances to customers - Summary (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financial instruments | |||
Financial assets | $ 1,407,320 | $ 1,361,558 | |
Loans and advances - Customers | |||
Financial instruments | |||
Financial assets | 728,335 | 676,636 | |
Collateral provided | 5,153 | 3,689 | |
Gross carrying amount | Loans and advances - Customers | |||
Financial instruments | |||
Financial assets | 750,305 | 698,152 | |
Impairment losses | Loans and advances - Customers | |||
Financial instruments | |||
Financial assets | (21,970) | (21,516) | $ (16,929) |
Financial assets designated at fair value through profit or loss | Loans and advances - Customers | |||
Financial instruments | |||
Financial assets | 25,789 | 9,093 | |
Financial assets at fair value through other comprehensive income category | Loans and advances - Customers | |||
Financial instruments | |||
Financial assets | 2,875 | 771 | |
Financial assets at fair value through other comprehensive income category | Gross carrying amount | Loans and advances - Customers | |||
Financial instruments | |||
Financial assets | 2,880 | ||
Financial assets at fair value through other comprehensive income category | Impairment losses | Loans and advances - Customers | |||
Financial instruments | |||
Financial assets | (5) | ||
Financial assets at amortized cost category | Loans and advances - Customers | |||
Financial instruments | |||
Financial assets | 699,671 | 666,772 | |
Financial assets at amortized cost category | Gross carrying amount | Loans and advances - Customers | |||
Financial instruments | |||
Financial assets | 721,636 | $ 688,286 | |
Financial assets at amortized cost category | Impairment losses | Loans and advances - Customers | |||
Financial instruments | |||
Financial assets | $ (21,965) |
Loans and advances to custome_4
Loans and advances to customers - Breakdown of loans (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial instruments | ||
Financial instruments received as collateral | $ 82,342 | $ 111,937 |
Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 750,305 | 698,152 |
Fixed interest rate | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 270,930 | 255,571 |
Floating interest rate | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 479,375 | 442,581 |
SPAIN | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 750,305 | 698,152 |
Public sector | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 70,450 | 59,547 |
Individuals | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 274,053 | 257,132 |
Communications and transportation | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 35,773 | 33,373 |
Construction | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 47,872 | 45,333 |
Manufacturing | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 63,652 | 65,273 |
Services | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 122,970 | 185,382 |
Tourism | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 25,244 | 21,870 |
Other sectors | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 110,291 | 30,242 |
Commercial, financial and industrial loans | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 373,943 | 365,438 |
Public sector loans | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 70,450 | 59,547 |
Securitized mortgage assets | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 147,810 | 137,404 |
Reverse repurchase agreements | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 25,789 | 9,093 |
Installment loans to individuals - Revolving consumer credit cards loans | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 57,760 | 54,511 |
Installment loans to individuals - Non-revolving consumer loans | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 56,601 | 53,730 |
Impaired loans | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 17,952 | 18,429 |
Reverse repurchase agreement transactions | Debt instruments. | Financial assets designated at fair value through profit or loss | ||
Financial instruments | ||
Financial instruments received as collateral | $ 8,115 | $ 9,103 |
Loans and advances to custome_5
Loans and advances to customers - Gross carrying amount of financial assets at FV through OCI and at amortized cost (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets | ||
Financial assets | $ 1,407,320 | $ 1,361,558 |
Loans and advances - Customers | ||
Financial assets | ||
Financial assets | 728,335 | 676,636 |
Loans and advances - Customers | Gross carrying amount | ||
Financial assets | ||
Financial assets | 750,305 | 698,152 |
Financial assets at fair value through other comprehensive income category | Loans and advances - Customers | ||
Financial assets | ||
Financial assets | 2,875 | 771 |
Financial assets at fair value through other comprehensive income category | Loans and advances - Customers | Gross carrying amount | ||
Financial assets | ||
Financial assets | 2,880 | |
Financial assets at fair value through other comprehensive income category | Loans and advances - Customers | Subtotal of Stage 1 and 2 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 2,880 | |
Financial assets at fair value through other comprehensive income category | Loans and advances - Customers | Stage 1 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 2,880 | |
Financial assets at fair value through other comprehensive income category | Commercial, financial and industrial loans | Gross carrying amount | ||
Financial assets | ||
Financial assets | 2,880 | |
Financial assets at fair value through other comprehensive income category | Commercial, financial and industrial loans | Subtotal of Stage 1 and 2 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 2,880 | |
Financial assets at fair value through other comprehensive income category | Commercial, financial and industrial loans | Stage 1 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 2,880 | |
Financial assets at amortized cost category | Loans and advances - Customers | ||
Financial assets | ||
Financial assets | 699,671 | 666,772 |
Financial assets at amortized cost category | Loans and advances - Customers | Gross carrying amount | ||
Financial assets | ||
Financial assets | 721,636 | 688,286 |
Financial assets at amortized cost category | Loans and advances - Customers | Subtotal of Stage 1 and 2 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 703,684 | |
Financial assets at amortized cost category | Loans and advances - Customers | Stage 1 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 676,508 | 643,475 |
Financial assets at amortized cost category | Loans and advances - Customers | Stage 2 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 27,176 | 26,382 |
Financial assets at amortized cost category | Loans and advances - Customers | Stage 3 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 17,952 | $ 18,429 |
Financial assets at amortized cost category | Commercial, financial and industrial loans | Gross carrying amount | ||
Financial assets | ||
Financial assets | 376,878 | |
Financial assets at amortized cost category | Commercial, financial and industrial loans | Subtotal of Stage 1 and 2 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 371,063 | |
Financial assets at amortized cost category | Commercial, financial and industrial loans | Stage 1 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 358,665 | |
Financial assets at amortized cost category | Commercial, financial and industrial loans | Stage 2 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 12,398 | |
Financial assets at amortized cost category | Commercial, financial and industrial loans | Stage 3 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 5,815 | |
Financial assets at amortized cost category | Public sector loans | Gross carrying amount | ||
Financial assets | ||
Financial assets | 70,450 | |
Financial assets at amortized cost category | Public sector loans | Subtotal of Stage 1 and 2 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 70,450 | |
Financial assets at amortized cost category | Public sector loans | Stage 1 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 70,450 | |
Financial assets at amortized cost category | Securitized mortgage assets | Gross carrying amount | ||
Financial assets | ||
Financial assets | 156,209 | |
Financial assets at amortized cost category | Securitized mortgage assets | Subtotal of Stage 1 and 2 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 147,810 | |
Financial assets at amortized cost category | Securitized mortgage assets | Stage 1 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 140,072 | |
Financial assets at amortized cost category | Securitized mortgage assets | Stage 2 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 7,738 | |
Financial assets at amortized cost category | Securitized mortgage assets | Stage 3 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 8,399 | |
Financial assets at amortized cost category | Installment loans to individuals | Gross carrying amount | ||
Financial assets | ||
Financial assets | 118,099 | |
Financial assets at amortized cost category | Installment loans to individuals | Subtotal of Stage 1 and 2 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 114,361 | |
Financial assets at amortized cost category | Installment loans to individuals | Stage 1 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 107,321 | |
Financial assets at amortized cost category | Installment loans to individuals | Stage 2 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 7,040 | |
Financial assets at amortized cost category | Installment loans to individuals | Stage 3 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 3,738 | |
Financial assets at amortized cost category | Installment loans to individuals - Revolving consumer credit cards loans | Gross carrying amount | ||
Financial assets | ||
Financial assets | 59,477 | |
Financial assets at amortized cost category | Installment loans to individuals - Revolving consumer credit cards loans | Subtotal of Stage 1 and 2 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 57,760 | |
Financial assets at amortized cost category | Installment loans to individuals - Revolving consumer credit cards loans | Stage 1 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 54,292 | |
Financial assets at amortized cost category | Installment loans to individuals - Revolving consumer credit cards loans | Stage 2 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 3,468 | |
Financial assets at amortized cost category | Installment loans to individuals - Revolving consumer credit cards loans | Stage 3 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 1,717 | |
Financial assets at amortized cost category | Installment loans to individuals - Non-revolving consumer loans | Gross carrying amount | ||
Financial assets | ||
Financial assets | 58,622 | |
Financial assets at amortized cost category | Installment loans to individuals - Non-revolving consumer loans | Subtotal of Stage 1 and 2 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 56,601 | |
Financial assets at amortized cost category | Installment loans to individuals - Non-revolving consumer loans | Stage 1 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 53,029 | |
Financial assets at amortized cost category | Installment loans to individuals - Non-revolving consumer loans | Stage 2 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 3,572 | |
Financial assets at amortized cost category | Installment loans to individuals - Non-revolving consumer loans | Stage 3 | Gross carrying amount | ||
Financial assets | ||
Financial assets | $ 2,021 |
Loans and advances to custome_6
Loans and advances to customers - Transfers of financial assets at amortized cost (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial assets | |||
Financial assets at beginning of period | $ 1,361,558 | ||
Financial assets at end of period | 1,407,320 | $ 1,361,558 | |
Loans and advances - Customers | |||
Financial assets | |||
Financial assets at beginning of period | 676,636 | ||
Financial assets at end of period | 728,335 | 676,636 | |
Loans and advances - Customers | Gross carrying amount | |||
Financial assets | |||
Financial assets at beginning of period | 698,152 | ||
Financial assets at end of period | 750,305 | 698,152 | |
Loans and advances - Customers | Impairment losses | |||
Financial assets | |||
Financial assets at beginning of period | (21,516) | (16,929) | |
Transfer from Stage 1 to Stage 2 | (12,754) | ||
Transfer from Stage 1 to Stage 3 | (262) | ||
Transfer from Stage 2 to Stage 3 | (4,321) | ||
Transfer from Stage 2 to Stage 1 | 7,418 | ||
Transfer from Stage 3 to Stage 2 | 770 | ||
Transfer from Stage 3 to Stage 1 | 334 | ||
Financial assets derecognized during the period other than write offs | (4,630) | ||
Originated financial assets | (4,295) | ||
Written-off assets | 21,154 | 19,678 | $ 21,733 |
Other movements | 70 | (46) | (8) |
Financial assets at end of period | (21,970) | (21,516) | $ (16,929) |
Loans and advances - Customers | Stage 1 | Impairment losses | |||
Financial assets | |||
Transfer from Stage 1 to Stage 2 | 4,369 | ||
Transfer from Stage 1 to Stage 3 | 131 | ||
Transfer from Stage 2 to Stage 1 | (2,484) | ||
Transfer from Stage 3 to Stage 1 | (140) | ||
Financial assets derecognized during the period other than write offs | (2,089) | ||
Originated financial assets | (4,295) | ||
Financial assets at end of period | (7,254) | ||
Loans and advances - Customers | Stage 2 | Impairment losses | |||
Financial assets | |||
Transfer from Stage 1 to Stage 2 | (17,123) | ||
Transfer from Stage 2 to Stage 3 | 12,547 | ||
Transfer from Stage 2 to Stage 1 | 9,902 | ||
Transfer from Stage 3 to Stage 2 | (659) | ||
Financial assets derecognized during the period other than write offs | (1,092) | ||
Financial assets at end of period | (5,466) | ||
Loans and advances - Customers | Stage 3 | Impairment losses | |||
Financial assets | |||
Transfer from Stage 1 to Stage 3 | (393) | ||
Transfer from Stage 2 to Stage 3 | (16,868) | ||
Transfer from Stage 3 to Stage 2 | 1,429 | ||
Transfer from Stage 3 to Stage 1 | 474 | ||
Financial assets derecognized during the period other than write offs | (1,449) | ||
Written-off assets | 21,154 | ||
Financial assets at end of period | (9,250) | ||
Loans and advances - Customers | Financial assets at amortized cost category | |||
Financial assets | |||
Financial assets at beginning of period | 666,772 | ||
Written-off assets | (21,154) | ||
Financial assets at end of period | 699,671 | 666,772 | |
Loans and advances - Customers | Financial assets at amortized cost category | Gross carrying amount | |||
Financial assets | |||
Financial assets at beginning of period | 688,286 | ||
Remaining in same stage | (233,292) | ||
Financial assets derecognized during the period other than write offs | 565,732 | ||
Originated financial assets | 853,967 | ||
Written-off assets | (21,333) | ||
Other movements | (260) | ||
Financial assets at end of period | 721,636 | 688,286 | |
Loans and advances - Customers | Financial assets at amortized cost category | Impairment losses | |||
Financial assets | |||
Financial assets at end of period | (21,965) | ||
Loans and advances - Customers | Financial assets at amortized cost category | Subtotal of Stage 1 and 2 | Gross carrying amount | |||
Financial assets | |||
Financial assets at end of period | 703,684 | ||
Loans and advances - Customers | Financial assets at amortized cost category | Stage 1 | Gross carrying amount | |||
Financial assets | |||
Financial assets at beginning of period | 643,475 | ||
Transfer from Stage 1 to Stage 2 | (84,239) | ||
Transfer from Stage 1 to Stage 3 | (2,244) | ||
Transfer from Stage 2 to Stage 1 | 54,716 | ||
Transfer from Stage 3 to Stage 1 | 2,628 | ||
Remaining in same stage | (236,958) | ||
Financial assets derecognized during the period other than write offs | 554,689 | ||
Originated financial assets | 853,967 | ||
Other movements | (148) | ||
Financial assets at end of period | 676,508 | 643,475 | |
Loans and advances - Customers | Financial assets at amortized cost category | Stage 1 | Impairment losses | |||
Financial assets | |||
Financial assets at end of period | (7,249) | ||
Loans and advances - Customers | Financial assets at amortized cost category | Stage 2 | Gross carrying amount | |||
Financial assets | |||
Financial assets at beginning of period | 26,382 | ||
Transfer from Stage 1 to Stage 2 | 84,239 | ||
Transfer from Stage 2 to Stage 3 | (28,017) | ||
Transfer from Stage 2 to Stage 1 | (54,716) | ||
Transfer from Stage 3 to Stage 2 | 4,403 | ||
Remaining in same stage | 2,090 | ||
Financial assets derecognized during the period other than write offs | 7,215 | ||
Other movements | 10 | ||
Financial assets at end of period | 27,176 | 26,382 | |
Loans and advances - Customers | Financial assets at amortized cost category | Stage 2 | Impairment losses | |||
Financial assets | |||
Financial assets at end of period | (5,466) | ||
Loans and advances - Customers | Financial assets at amortized cost category | Stage 3 | Gross carrying amount | |||
Financial assets | |||
Financial assets at beginning of period | 18,429 | ||
Transfer from Stage 1 to Stage 3 | 2,244 | ||
Transfer from Stage 2 to Stage 3 | 28,017 | ||
Transfer from Stage 3 to Stage 2 | (4,403) | ||
Transfer from Stage 3 to Stage 1 | (2,628) | ||
Remaining in same stage | 1,576 | ||
Financial assets derecognized during the period other than write offs | 3,828 | ||
Written-off assets | (21,333) | ||
Other movements | (122) | ||
Financial assets at end of period | 17,952 | $ 18,429 | |
Loans and advances - Customers | Financial assets at amortized cost category | Stage 3 | Impairment losses | |||
Financial assets | |||
Financial assets at end of period | $ (9,250) |
Loans and advances to custome_7
Loans and advances to customers - Allowance for impairment losses (Details) - MXN ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financial assets | ||||
Impairment losses on financial assets | $ 19,220 | $ 18,810 | $ 18,820 | |
Financial assets at end of period | 1,407,320 | 1,361,558 | ||
Financial assets at amortized cost category | ||||
Financial assets | ||||
Beginning balance as of January 1 (restated) | 751,448 | |||
Impairment losses on financial assets | 19,220 | 18,806 | ||
Financial assets at fair value through other comprehensive income category | ||||
Financial assets | ||||
Beginning balance as of January 1 (restated) | 92,611 | |||
Impairment losses on financial assets | 4 | |||
Loans and receivables | ||||
Financial assets | ||||
Financial assets, as originally presented | 679,300 | |||
Impairment losses on financial assets | 18,820 | |||
Loans and advances - Customers | ||||
Financial assets | ||||
Financial assets at end of period | 728,335 | 676,636 | ||
Loans and advances - Customers | Financial assets at amortized cost category | ||||
Financial assets | ||||
Write-off of impaired loans applied against the allowance for impairment losses | (21,154) | |||
Financial assets at end of period | 699,671 | 666,772 | ||
Loans and advances - Customers | Financial assets at fair value through other comprehensive income category | ||||
Financial assets | ||||
Financial assets at end of period | 2,875 | 771 | ||
Impairment losses | ||||
Financial assets | ||||
Financial assets, as originally presented | (17,961) | |||
Financial assets, Adjustments on initial adoption of IFRS 9 | (3,256) | |||
Beginning balance as of January 1 (restated) | (21,217) | |||
Impairment losses | Financial assets at amortized cost category | ||||
Financial assets | ||||
Financial assets, Adjustments on initial adoption of IFRS 9 | (3,270) | |||
Impairment losses | Loans and advances - Customers | ||||
Financial assets | ||||
Financial assets, as originally presented | (21,516) | (16,929) | $ (17,883) | |
Financial assets, Adjustments on initial adoption of IFRS 9 | (3,270) | |||
Beginning balance as of January 1 (restated) | (21,516) | (20,199) | (17,883) | |
Write-off of impaired loans applied against the allowance for impairment losses | 21,154 | 19,678 | 21,733 | |
Others | 70 | (46) | (8) | |
Financial assets at end of period | (21,970) | (21,516) | (16,929) | |
Impairment losses | Loans and advances - Customers | SPAIN | ||||
Financial assets | ||||
Financial assets at end of period | (21,970) | (21,516) | (16,929) | |
Impairment losses | Loans and advances - Customers | Financial assets at amortized cost category | ||||
Financial assets | ||||
Impairment losses on financial assets | (21,673) | (20,947) | (20,771) | |
Financial assets at end of period | (21,965) | |||
Recoveries of loans previously charged-off and recovery expenses | 2,083 | 2,141 | ||
Impairment losses | Loans and advances - Customers | Financial assets at fair value through other comprehensive income category | ||||
Financial assets | ||||
Impairment losses on financial assets | (5) | $ (2) | ||
Financial assets at end of period | $ (5) | |||
Impairment losses | Loans and advances - Customers | Loans and receivables | ||||
Financial assets | ||||
Recoveries of loans previously charged-off and recovery expenses | $ 1,951 |
Loans and advances to custome_8
Loans and advances to customers - Allowance loan losses and written off financial assets (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial assets | |||
Financial assets | $ (1,407,320) | $ (1,361,558) | |
Contractual amount outstanding of financial assets written-off still subject to enforcement activities | 17,327 | ||
Loans and advances - Customers | |||
Financial assets | |||
Financial assets | (728,335) | (676,636) | |
Loans and advances - Customers | Impairment losses | |||
Financial assets | |||
Financial assets | 21,970 | 21,516 | $ 16,929 |
Written-off financial assets | (21,154) | (19,678) | $ (21,733) |
Loans and advances - Customers | Stage 1 | Impairment losses | |||
Financial assets | |||
Financial assets | 7,254 | ||
Loans and advances - Customers | Stage 2 | Impairment losses | |||
Financial assets | |||
Financial assets | 5,466 | ||
Loans and advances - Customers | Stage 3 | Impairment losses | |||
Financial assets | |||
Financial assets | 9,250 | ||
Written-off financial assets | (21,154) | ||
Financial assets at fair value through other comprehensive income category | Loans and advances - Customers | |||
Financial assets | |||
Financial assets | (2,875) | (771) | |
Financial assets at fair value through other comprehensive income category | Loans and advances - Customers | Impairment losses | |||
Financial assets | |||
Financial assets | 5 | ||
Financial assets at fair value through other comprehensive income category | Loans and advances - Customers | Stage 1 | Impairment losses | |||
Financial assets | |||
Financial assets | 5 | ||
Financial assets at fair value through other comprehensive income category | Commercial, financial and industrial loans | Impairment losses | |||
Financial assets | |||
Financial assets | 5 | ||
Financial assets at fair value through other comprehensive income category | Commercial, financial and industrial loans | Stage 1 | Impairment losses | |||
Financial assets | |||
Financial assets | 5 | ||
Financial assets at amortized cost category | Loans and advances - Customers | |||
Financial assets | |||
Financial assets | (699,671) | $ (666,772) | |
Written-off financial assets | 21,154 | ||
Financial assets at amortized cost category | Loans and advances - Customers | Impairment losses | |||
Financial assets | |||
Financial assets | 21,965 | ||
Financial assets at amortized cost category | Loans and advances - Customers | Stage 1 | Impairment losses | |||
Financial assets | |||
Financial assets | 7,249 | ||
Financial assets at amortized cost category | Loans and advances - Customers | Stage 2 | Impairment losses | |||
Financial assets | |||
Financial assets | 5,466 | ||
Financial assets at amortized cost category | Loans and advances - Customers | Stage 3 | Impairment losses | |||
Financial assets | |||
Financial assets | 9,250 | ||
Financial assets at amortized cost category | Commercial, financial and industrial loans | |||
Financial assets | |||
Written-off financial assets | 6,038 | ||
Financial assets at amortized cost category | Commercial, financial and industrial loans | Impairment losses | |||
Financial assets | |||
Financial assets | 8,135 | ||
Financial assets at amortized cost category | Commercial, financial and industrial loans | Stage 1 | Impairment losses | |||
Financial assets | |||
Financial assets | 2,022 | ||
Financial assets at amortized cost category | Commercial, financial and industrial loans | Stage 2 | Impairment losses | |||
Financial assets | |||
Financial assets | 1,787 | ||
Financial assets at amortized cost category | Commercial, financial and industrial loans | Stage 3 | Impairment losses | |||
Financial assets | |||
Financial assets | 4,326 | ||
Financial assets at amortized cost category | Public sector loans | Impairment losses | |||
Financial assets | |||
Financial assets | 8 | ||
Financial assets at amortized cost category | Public sector loans | Stage 1 | Impairment losses | |||
Financial assets | |||
Financial assets | 8 | ||
Financial assets at amortized cost category | Securitized mortgage assets | |||
Financial assets | |||
Written-off financial assets | 1,775 | ||
Financial assets at amortized cost category | Securitized mortgage assets | Impairment losses | |||
Financial assets | |||
Financial assets | 3,316 | ||
Financial assets at amortized cost category | Securitized mortgage assets | Stage 1 | Impairment losses | |||
Financial assets | |||
Financial assets | 623 | ||
Financial assets at amortized cost category | Securitized mortgage assets | Stage 2 | Impairment losses | |||
Financial assets | |||
Financial assets | 660 | ||
Financial assets at amortized cost category | Securitized mortgage assets | Stage 3 | Impairment losses | |||
Financial assets | |||
Financial assets | 2,033 | ||
Financial assets at amortized cost category | Installment loans to individuals | |||
Financial assets | |||
Written-off financial assets | 13,341 | ||
Financial assets at amortized cost category | Installment loans to individuals | Impairment losses | |||
Financial assets | |||
Financial assets | 10,506 | ||
Financial assets at amortized cost category | Installment loans to individuals | Stage 1 | Impairment losses | |||
Financial assets | |||
Financial assets | 4,596 | ||
Financial assets at amortized cost category | Installment loans to individuals | Stage 2 | Impairment losses | |||
Financial assets | |||
Financial assets | 3,019 | ||
Financial assets at amortized cost category | Installment loans to individuals | Stage 3 | Impairment losses | |||
Financial assets | |||
Financial assets | 2,891 | ||
Financial assets at amortized cost category | Installment loans to individuals - Revolving consumer credit cards loans | |||
Financial assets | |||
Written-off financial assets | 7,536 | ||
Financial assets at amortized cost category | Installment loans to individuals - Revolving consumer credit cards loans | Impairment losses | |||
Financial assets | |||
Financial assets | 5,280 | ||
Financial assets at amortized cost category | Installment loans to individuals - Revolving consumer credit cards loans | Stage 1 | Impairment losses | |||
Financial assets | |||
Financial assets | 2,330 | ||
Financial assets at amortized cost category | Installment loans to individuals - Revolving consumer credit cards loans | Stage 2 | Impairment losses | |||
Financial assets | |||
Financial assets | 1,598 | ||
Financial assets at amortized cost category | Installment loans to individuals - Revolving consumer credit cards loans | Stage 3 | Impairment losses | |||
Financial assets | |||
Financial assets | 1,352 | ||
Financial assets at amortized cost category | Installment loans to individuals - Non-revolving consumer loans | |||
Financial assets | |||
Written-off financial assets | 5,805 | ||
Financial assets at amortized cost category | Installment loans to individuals - Non-revolving consumer loans | Impairment losses | |||
Financial assets | |||
Financial assets | 5,226 | ||
Financial assets at amortized cost category | Installment loans to individuals - Non-revolving consumer loans | Stage 1 | Impairment losses | |||
Financial assets | |||
Financial assets | 2,266 | ||
Financial assets at amortized cost category | Installment loans to individuals - Non-revolving consumer loans | Stage 2 | Impairment losses | |||
Financial assets | |||
Financial assets | 1,421 | ||
Financial assets at amortized cost category | Installment loans to individuals - Non-revolving consumer loans | Stage 3 | Impairment losses | |||
Financial assets | |||
Financial assets | $ 1,539 |
Loans and advances to custome_9
Loans and advances to customers - Transfers of allowance for impairment losses of financial assets at amortized cost (Details) - MXN ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financial assets | ||||
Financial assets | $ (1,407,320) | $ (1,361,558) | ||
Impairment losses | ||||
Financial assets | ||||
Financial assets, as originally presented | $ 17,961 | |||
Financial assets, Adjustments on initial adoption of IFRS 9 | 3,256 | |||
Financial assets, restated | (21,217) | |||
Financial assets at amortized cost category | ||||
Financial assets | ||||
Financial assets, restated | 751,448 | |||
Financial assets at amortized cost category | Impairment losses | ||||
Financial assets | ||||
Financial assets, Adjustments on initial adoption of IFRS 9 | 3,270 | |||
Loans and advances - Customers | ||||
Financial assets | ||||
Financial assets | (728,335) | (676,636) | ||
Loans and advances - Customers | Impairment losses | ||||
Financial assets | ||||
Financial assets, as originally presented | 21,516 | 16,929 | $ 17,883 | |
Financial assets, Adjustments on initial adoption of IFRS 9 | 3,270 | |||
Financial assets, restated | (21,516) | (20,199) | $ (17,883) | |
Transfer from Stage 1 to Stage 2 | 12,754 | |||
Transfer from Stage 1 to Stage 3 | 262 | |||
Transfer from Stage 2 to Stage 3 | 4,321 | |||
Transfer from Stage 2 to Stage 1 | (7,418) | |||
Transfer from Stage 3 to Stage 2 | (770) | |||
Transfer from Stage 3 to Stage 1 | (334) | |||
Financial assets derecognized during the period other than write offs | 4,630 | |||
Contracts remaining at the same stage | 8,027 | |||
Written-off financial assets | (21,154) | (19,678) | (21,733) | |
Originated financial assets | 4,295 | |||
Foreign exchange and other movements | 5,101 | |||
Financial assets | 21,970 | 21,516 | 16,929 | |
Loans and advances - Customers | Stage 1 | Impairment losses | ||||
Financial assets | ||||
Financial assets, restated | (7,035) | (7,456) | ||
Transfer from Stage 1 to Stage 2 | (4,369) | |||
Transfer from Stage 1 to Stage 3 | (131) | |||
Transfer from Stage 2 to Stage 1 | 2,484 | |||
Transfer from Stage 3 to Stage 1 | 140 | |||
Financial assets derecognized during the period other than write offs | 2,089 | |||
Contracts remaining at the same stage | (481) | |||
Originated financial assets | 4,295 | |||
Foreign exchange and other movements | 370 | |||
Financial assets | 7,254 | |||
Loans and advances - Customers | Stage 2 | Impairment losses | ||||
Financial assets | ||||
Financial assets, restated | (5,309) | (4,780) | ||
Transfer from Stage 1 to Stage 2 | 17,123 | |||
Transfer from Stage 2 to Stage 3 | (12,547) | |||
Transfer from Stage 2 to Stage 1 | (9,902) | |||
Transfer from Stage 3 to Stage 2 | 659 | |||
Financial assets derecognized during the period other than write offs | 1,092 | |||
Contracts remaining at the same stage | 6,180 | |||
Foreign exchange and other movements | (264) | |||
Financial assets | 5,466 | |||
Loans and advances - Customers | Stage 3 | Impairment losses | ||||
Financial assets | ||||
Financial assets, restated | (9,172) | $ (7,963) | ||
Transfer from Stage 1 to Stage 3 | 393 | |||
Transfer from Stage 2 to Stage 3 | 16,868 | |||
Transfer from Stage 3 to Stage 2 | (1,429) | |||
Transfer from Stage 3 to Stage 1 | (474) | |||
Financial assets derecognized during the period other than write offs | 1,449 | |||
Contracts remaining at the same stage | 2,328 | |||
Written-off financial assets | (21,154) | |||
Foreign exchange and other movements | 4,995 | |||
Financial assets | 9,250 | |||
Loans and advances - Customers | Financial assets at amortized cost category | ||||
Financial assets | ||||
Written-off financial assets | 21,154 | |||
Financial assets | (699,671) | $ (666,772) | ||
Loans and advances - Customers | Financial assets at amortized cost category | Impairment losses | ||||
Financial assets | ||||
Financial assets | 21,965 | |||
Loans and advances - Customers | Financial assets at amortized cost category | Stage 1 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 7,249 | |||
Loans and advances - Customers | Financial assets at amortized cost category | Stage 2 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 5,466 | |||
Loans and advances - Customers | Financial assets at amortized cost category | Stage 3 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 9,250 | |||
Commercial, financial and industrial loans | Financial assets at amortized cost category | ||||
Financial assets | ||||
Written-off financial assets | 6,038 | |||
Commercial, financial and industrial loans | Financial assets at amortized cost category | Impairment losses | ||||
Financial assets | ||||
Financial assets | 8,135 | |||
Commercial, financial and industrial loans | Financial assets at amortized cost category | Stage 1 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 2,022 | |||
Commercial, financial and industrial loans | Financial assets at amortized cost category | Stage 2 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 1,787 | |||
Commercial, financial and industrial loans | Financial assets at amortized cost category | Stage 3 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 4,326 | |||
Public sector loans | Financial assets at amortized cost category | Impairment losses | ||||
Financial assets | ||||
Financial assets | 8 | |||
Public sector loans | Financial assets at amortized cost category | Stage 1 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 8 | |||
Securitized mortgage assets | Financial assets at amortized cost category | ||||
Financial assets | ||||
Written-off financial assets | 1,775 | |||
Securitized mortgage assets | Financial assets at amortized cost category | Impairment losses | ||||
Financial assets | ||||
Financial assets | 3,316 | |||
Securitized mortgage assets | Financial assets at amortized cost category | Stage 1 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 623 | |||
Securitized mortgage assets | Financial assets at amortized cost category | Stage 2 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 660 | |||
Securitized mortgage assets | Financial assets at amortized cost category | Stage 3 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 2,033 | |||
Installment loans to individuals - Non-revolving consumer loans | Financial assets at amortized cost category | ||||
Financial assets | ||||
Written-off financial assets | 5,805 | |||
Installment loans to individuals - Non-revolving consumer loans | Financial assets at amortized cost category | Impairment losses | ||||
Financial assets | ||||
Financial assets | 5,226 | |||
Installment loans to individuals - Non-revolving consumer loans | Financial assets at amortized cost category | Stage 1 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 2,266 | |||
Installment loans to individuals - Non-revolving consumer loans | Financial assets at amortized cost category | Stage 2 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 1,421 | |||
Installment loans to individuals - Non-revolving consumer loans | Financial assets at amortized cost category | Stage 3 | Impairment losses | ||||
Financial assets | ||||
Financial assets | $ 1,539 |
Loans and advances to custom_10
Loans and advances to customers - Impaired loans (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial assets at amortized cost category | Impaired loans | |||
Financial assets | |||
Beginning balance | $ 18,429 | ||
Balance at year-end | 17,952 | $ 18,429 | |
Gross carrying amount | |||
Financial assets | |||
Beginning balance | 698,152 | ||
Balance at year-end | 750,305 | 698,152 | |
Loans and advances - Customers | Financial assets at amortized cost category | |||
Financial assets | |||
Written-off assets | (21,154) | ||
Loans and advances - Customers | Impairment losses | |||
Financial assets | |||
Written-off assets | 21,154 | 19,678 | $ 21,733 |
Loans and advances - Customers | Gross carrying amount | Financial assets at amortized cost category | |||
Financial assets | |||
Written-off assets | (21,333) | ||
Loans and advances - Customers | Gross carrying amount | Financial assets at amortized cost category | Impaired loans | |||
Financial assets | |||
Beginning balance | 18,429 | 18,132 | |
Additions | 31,418 | 32,461 | |
Transfers to performing loans | (10,741) | (12,486) | |
Written-off assets | (21,154) | (19,678) | |
Balance at year-end | $ 17,952 | 18,429 | 18,132 |
Loans and advances - Customers | Gross carrying amount | Loans and receivables | Impaired loans | |||
Financial assets | |||
Beginning balance | $ 18,132 | 17,595 | |
Additions | 34,180 | ||
Transfers to performing loans | (11,910) | ||
Written-off assets | (21,733) | ||
Balance at year-end | $ 18,132 |
Loans and advances to custom_11
Loans and advances to customers - Impaired loans between no past due and past due (Details) - Financial assets at amortized cost category - Impaired loans - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets | ||
Loans and advances to customers | $ 17,952 | $ 18,429 |
Less than 3 Months | ||
Financial assets | ||
Loans and advances to customers | 6,191 | 5,250 |
6 months | ||
Financial assets | ||
Loans and advances to customers | 5,455 | 5,509 |
6 to 9 Months | ||
Financial assets | ||
Loans and advances to customers | 1,108 | 956 |
9 to 12 Months | ||
Financial assets | ||
Loans and advances to customers | 789 | 1,542 |
More than 12 Months | ||
Financial assets | ||
Loans and advances to customers | 4,409 | 5,172 |
Commercial, financial and industrial loans | ||
Financial assets | ||
Loans and advances to customers | 5,815 | 6,538 |
Commercial, financial and industrial loans | Less than 3 Months | ||
Financial assets | ||
Loans and advances to customers | 1,427 | 2,138 |
Commercial, financial and industrial loans | 6 months | ||
Financial assets | ||
Loans and advances to customers | 1,640 | 1,531 |
Commercial, financial and industrial loans | 6 to 9 Months | ||
Financial assets | ||
Loans and advances to customers | 404 | 112 |
Commercial, financial and industrial loans | 9 to 12 Months | ||
Financial assets | ||
Loans and advances to customers | 291 | 880 |
Commercial, financial and industrial loans | More than 12 Months | ||
Financial assets | ||
Loans and advances to customers | 2,053 | 1,877 |
Securitized mortgage assets | ||
Financial assets | ||
Loans and advances to customers | 8,399 | 8,345 |
Securitized mortgage assets | Less than 3 Months | ||
Financial assets | ||
Loans and advances to customers | 3,701 | 2,098 |
Securitized mortgage assets | 6 months | ||
Financial assets | ||
Loans and advances to customers | 1,142 | 1,447 |
Securitized mortgage assets | 6 to 9 Months | ||
Financial assets | ||
Loans and advances to customers | 703 | 844 |
Securitized mortgage assets | 9 to 12 Months | ||
Financial assets | ||
Loans and advances to customers | 498 | 662 |
Securitized mortgage assets | More than 12 Months | ||
Financial assets | ||
Loans and advances to customers | 2,355 | 3,294 |
Installment loans to individuals - Revolving consumer credit cards loans | ||
Financial assets | ||
Loans and advances to customers | 1,717 | 1,716 |
Installment loans to individuals - Revolving consumer credit cards loans | Less than 3 Months | ||
Financial assets | ||
Loans and advances to customers | 536 | 530 |
Installment loans to individuals - Revolving consumer credit cards loans | 6 months | ||
Financial assets | ||
Loans and advances to customers | 1,181 | 1,186 |
Installment loans to individuals - Non-revolving consumer loans | ||
Financial assets | ||
Loans and advances to customers | 2,021 | 1,830 |
Installment loans to individuals - Non-revolving consumer loans | Less than 3 Months | ||
Financial assets | ||
Loans and advances to customers | 527 | 484 |
Installment loans to individuals - Non-revolving consumer loans | 6 months | ||
Financial assets | ||
Loans and advances to customers | 1,492 | 1,345 |
Installment loans to individuals - Non-revolving consumer loans | 6 to 9 Months | ||
Financial assets | ||
Loans and advances to customers | 1 | |
Installment loans to individuals - Non-revolving consumer loans | More than 12 Months | ||
Financial assets | ||
Loans and advances to customers | $ 1 | $ 1 |
Loans and advances to custom_12
Loans and advances to customers - Renegotiated loans (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial instruments | |||
Renegotiated loan amount | $ 5,351 | $ 6,814 | $ 3,202 |
Percentage of renegotiated loans | 100.00% | 100.00% | 100.00% |
Impaired loans | |||
Financial instruments | |||
Renegotiated loan amount | $ 2,917 | $ 3,746 | $ 1,215 |
Percentage of renegotiated loans | 55.00% | 70.00% | 38.00% |
Due to Concerns About Current or Potential Credit Deterioration | Performing loans | |||
Financial instruments | |||
Renegotiated loan amount | $ 2,434 | $ 3,068 | $ 1,987 |
Percentage of renegotiated loans | 45.00% | 57.00% | 62.00% |
Commercial, financial and industrial loans | |||
Financial instruments | |||
Renegotiated loan amount | $ 3,533 | $ 4,329 | $ 1,907 |
Commercial, financial and industrial loans | Impaired loans | |||
Financial instruments | |||
Renegotiated loan amount | 2,318 | 3,011 | 1,028 |
Commercial, financial and industrial loans | Due to Concerns About Current or Potential Credit Deterioration | Performing loans | |||
Financial instruments | |||
Renegotiated loan amount | 1,215 | 1,318 | 879 |
Securitized mortgage assets | |||
Financial instruments | |||
Renegotiated loan amount | 662 | 1,133 | 23 |
Securitized mortgage assets | Impaired loans | |||
Financial instruments | |||
Renegotiated loan amount | 293 | 530 | 1 |
Securitized mortgage assets | Due to Concerns About Current or Potential Credit Deterioration | Performing loans | |||
Financial instruments | |||
Renegotiated loan amount | 369 | 603 | 22 |
Installment loans to individuals | |||
Financial instruments | |||
Renegotiated loan amount | 1,156 | 1,352 | 1,272 |
Installment loans to individuals | Impaired loans | |||
Financial instruments | |||
Renegotiated loan amount | 306 | 205 | 186 |
Installment loans to individuals | Due to Concerns About Current or Potential Credit Deterioration | Performing loans | |||
Financial instruments | |||
Renegotiated loan amount | $ 850 | $ 1,147 | $ 1,086 |
Loans and advances to custom_13
Loans and advances to customers - Maximum exposure to credit risk (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial instruments | ||
Maximum Exposure to Credit Risk | $ 1,428,587 | $ 1,409,862 |
Maximum Exposure to Credit Risk, unsecured | 872,609 | 816,941 |
Maximum Exposure to Credit Risk, secured | 555,978 | 592,921 |
Cash Collateral Received | 16,759 | 42,480 |
Collateralized by Securities | 82,328 | 111,604 |
Collection Rights | ||
Financial instruments | ||
Other Credit Enhancements | 69,732 | 124,725 |
Real Estate | ||
Financial instruments | ||
Other Credit Enhancements | 148,360 | 222,490 |
Guarantees | ||
Financial instruments | ||
Other Credit Enhancements | 8,118 | 11,945 |
Guarantees and loan commitments | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 80,169 | 94,267 |
Maximum Exposure to Credit Risk, unsecured | 80,169 | 94,267 |
Financial assets at fair value through profit or loss category | Financial assets, category | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 262,360 | 265,175 |
Maximum Exposure to Credit Risk, unsecured | 239,865 | 218,651 |
Maximum Exposure to Credit Risk, secured | 22,495 | 46,524 |
Cash Collateral Received | 16,759 | 42,480 |
Collateralized by Securities | 5,736 | 4,044 |
Financial assets designated at fair value through profit or loss | Financial assets, category | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 79,927 | 107,425 |
Maximum Exposure to Credit Risk, secured | 79,927 | 107,425 |
Collateralized by Securities | 76,592 | 107,560 |
Financial assets at fair value through other comprehensive income category | Financial assets, category | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 236,343 | 155,256 |
Maximum Exposure to Credit Risk, unsecured | 236,343 | 155,256 |
Financial assets at amortized cost category | Financial assets, category | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 769,788 | 787,739 |
Maximum Exposure to Credit Risk, unsecured | 316,232 | 348,767 |
Maximum Exposure to Credit Risk, secured | 453,556 | 438,972 |
Financial assets at amortized cost category | Financial assets, category | Collection Rights | ||
Financial instruments | ||
Other Credit Enhancements | 69,732 | 124,725 |
Financial assets at amortized cost category | Financial assets, category | Real Estate | ||
Financial instruments | ||
Other Credit Enhancements | 148,360 | 222,490 |
Financial assets at amortized cost category | Financial assets, category | Guarantees | ||
Financial instruments | ||
Other Credit Enhancements | 8,118 | 11,945 |
Financial assets at amortized cost category | Financial assets, category | Loans and advances - Credit institutions | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 36,895 | 47,034 |
Maximum Exposure to Credit Risk, unsecured | 36,895 | 47,034 |
Financial assets at amortized cost category | Financial assets, category | Loans and advances - Customers | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 721,636 | 688,286 |
Maximum Exposure to Credit Risk, unsecured | 268,080 | 249,314 |
Maximum Exposure to Credit Risk, secured | 453,556 | 438,972 |
Financial assets at amortized cost category | Financial assets, category | Loans and advances - Customers | Collection Rights | ||
Financial instruments | ||
Other Credit Enhancements | 69,732 | 124,725 |
Financial assets at amortized cost category | Financial assets, category | Loans and advances - Customers | Real Estate | ||
Financial instruments | ||
Other Credit Enhancements | 148,360 | 222,490 |
Financial assets at amortized cost category | Financial assets, category | Loans and advances - Customers | Guarantees | ||
Financial instruments | ||
Other Credit Enhancements | 8,118 | 11,945 |
Financial assets at amortized cost category | Financial assets, category | Commercial, financial and industrial loans | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 376,878 | 371,203 |
Maximum Exposure to Credit Risk, unsecured | 106,672 | 96,967 |
Maximum Exposure to Credit Risk, secured | 270,206 | 274,236 |
Financial assets at amortized cost category | Financial assets, category | Commercial, financial and industrial loans | Collection Rights | ||
Financial instruments | ||
Other Credit Enhancements | 45,058 | 102,905 |
Financial assets at amortized cost category | Financial assets, category | Commercial, financial and industrial loans | Real Estate | ||
Financial instruments | ||
Other Credit Enhancements | 25,308 | 97,167 |
Financial assets at amortized cost category | Financial assets, category | Commercial, financial and industrial loans | Guarantees | ||
Financial instruments | ||
Other Credit Enhancements | 8,118 | 11,945 |
Financial assets at amortized cost category | Financial assets, category | Public sector loans | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 70,450 | 59,547 |
Maximum Exposure to Credit Risk, unsecured | 26,867 | 21,385 |
Maximum Exposure to Credit Risk, secured | 43,583 | 38,162 |
Financial assets at amortized cost category | Financial assets, category | Public sector loans | Collection Rights | ||
Financial instruments | ||
Other Credit Enhancements | 24,646 | 21,794 |
Financial assets at amortized cost category | Financial assets, category | Securitized mortgage assets | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 156,209 | 145,749 |
Maximum Exposure to Credit Risk, unsecured | 19,077 | 20,226 |
Maximum Exposure to Credit Risk, secured | 137,132 | 125,523 |
Financial assets at amortized cost category | Financial assets, category | Securitized mortgage assets | Real Estate | ||
Financial instruments | ||
Other Credit Enhancements | 120,461 | 123,353 |
Financial assets at amortized cost category | Financial assets, category | Revolving consumer credit card loans | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 59,477 | 56,227 |
Maximum Exposure to Credit Risk, unsecured | 59,477 | 56,227 |
Financial assets at amortized cost category | Financial assets, category | Installment loans to individuals - Non-revolving consumer loans | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 58,622 | 55,560 |
Maximum Exposure to Credit Risk, unsecured | 55,987 | 54,509 |
Maximum Exposure to Credit Risk, secured | 2,635 | 1,051 |
Financial assets at amortized cost category | Financial assets, category | Installment loans to individuals - Non-revolving consumer loans | Collection Rights | ||
Financial instruments | ||
Other Credit Enhancements | 28 | 26 |
Financial assets at amortized cost category | Financial assets, category | Installment loans to individuals - Non-revolving consumer loans | Real Estate | ||
Financial instruments | ||
Other Credit Enhancements | 2,591 | 1,970 |
Financial assets at amortized cost category | Financial assets, category | Debt instruments. | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 11,257 | 52,419 |
Maximum Exposure to Credit Risk, unsecured | $ 11,257 | $ 52,419 |
Loans and advances to custom_14
Loans and advances to customers - Internal rating (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Credit risk | ||
Financial assets | $ 1,407,320 | $ 1,361,558 |
Maximum Exposure to Credit Risk | 1,428,587 | 1,409,862 |
Internal credit grades | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 449,883 | 448,256 |
Internal credit grades | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 303,207 | 294,703 |
Internal credit grades | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 373,657 | 354,250 |
Internal credit grades | Public sector loans | Gross carrying amount | ||
Credit risk | ||
Financial assets | 70,450 | 59,547 |
Internal credit grades | Financial instruments not recognized on consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 76,226 | 94,006 |
Internal credit grades | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 58,131 | 76,156 |
Internal credit grades | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | 18,095 | 17,850 |
Rating category, 9.3 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 597 | 622 |
Rating category, 9.3 | Financial instruments not recognized on consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 597 | 622 |
Rating category, 9.3 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 597 | 622 |
Rating category, 9.0 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 4,506 | 5,200 |
Rating category, 9.0 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 4,506 | 5,200 |
Rating category, 9.0 | Public sector loans | Gross carrying amount | ||
Credit risk | ||
Financial assets | 4,506 | 5,200 |
Rating category, 8.5 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 4,066 | 3,043 |
Rating category, 8.5 | Financial instruments not recognized on consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 4,066 | 3,043 |
Rating category, 8.5 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 4,009 | 2,840 |
Rating category, 8.5 | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | 57 | 203 |
Rating category, 8.0 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 15,596 | 13,263 |
Rating category, 8.0 | Financial instruments not recognized on consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 15,596 | 13,263 |
Rating category, 8.0 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 15,457 | 12,897 |
Rating category, 8.0 | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | 139 | 366 |
Rating category, 7.5 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 6,652 | 33,757 |
Rating category, 7.5 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 2,004 | 2,012 |
Rating category, 7.5 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 2,004 | 25,207 |
Rating category, 7.5 | Public sector loans | Gross carrying amount | ||
Credit risk | ||
Financial assets | 23,195 | |
Rating category, 7.5 | Financial instruments not recognized on consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 4,648 | 8,550 |
Rating category, 7.5 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 4,347 | 8,313 |
Rating category, 7.5 | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | 301 | 237 |
Rating category, 7.0 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 56,801 | 43,658 |
Rating category, 7.0 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 21,925 | 17,068 |
Rating category, 7.0 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 48,491 | 17,247 |
Rating category, 7.0 | Public sector loans | Gross carrying amount | ||
Credit risk | ||
Financial assets | 26,566 | 179 |
Rating category, 7.0 | Financial instruments not recognized on consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 8,310 | 26,411 |
Rating category, 7.0 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 8,290 | 26,172 |
Rating category, 7.0 | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | 20 | 239 |
Rating category, 6.5 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 47,877 | 29,900 |
Rating category, 6.5 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 33,028 | 25,236 |
Rating category, 6.5 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 35,083 | 25,236 |
Rating category, 6.5 | Public sector loans | Gross carrying amount | ||
Credit risk | ||
Financial assets | 2,055 | |
Rating category, 6.5 | Financial instruments not recognized on consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 12,794 | 4,664 |
Rating category, 6.5 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 12,566 | 4,551 |
Rating category, 6.5 | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | 228 | 113 |
Rating category, 6.0 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 46,901 | 73,632 |
Rating category, 6.0 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 32,090 | 54,471 |
Rating category, 6.0 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 37,581 | 60,520 |
Rating category, 6.0 | Public sector loans | Gross carrying amount | ||
Credit risk | ||
Financial assets | 5,491 | 6,049 |
Rating category, 6.0 | Financial instruments not recognized on consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 9,320 | 13,112 |
Rating category, 6.0 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 5,848 | 10,822 |
Rating category, 6.0 | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | 3,472 | 2,290 |
Rating category, 5.5 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 99,349 | 106,479 |
Rating category, 5.5 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 75,766 | 85,467 |
Rating category, 5.5 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 89,450 | 94,745 |
Rating category, 5.5 | Public sector loans | Gross carrying amount | ||
Credit risk | ||
Financial assets | 13,684 | 9,278 |
Rating category, 5.5 | Financial instruments not recognized on consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 9,899 | 11,734 |
Rating category, 5.5 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 3,780 | 3,936 |
Rating category, 5.5 | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | 6,119 | 7,798 |
Rating category, 5.0 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 119,096 | 95,062 |
Rating category, 5.0 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 94,840 | 73,559 |
Rating category, 5.0 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 111,137 | 87,749 |
Rating category, 5.0 | Public sector loans | Gross carrying amount | ||
Credit risk | ||
Financial assets | 16,297 | 14,190 |
Rating category, 5.0 | Financial instruments not recognized on consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 7,959 | 7,313 |
Rating category, 5.0 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 2,082 | 2,040 |
Rating category, 5.0 | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | 5,877 | 5,273 |
Rating category, 4.5 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 23,993 | 18,894 |
Rating category, 4.5 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 21,098 | 15,383 |
Rating category, 4.5 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 22,383 | 16,839 |
Rating category, 4.5 | Public sector loans | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,285 | 1,456 |
Rating category, 4.5 | Financial instruments not recognized on consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 1,610 | 2,055 |
Rating category, 4.5 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 167 | 1,299 |
Rating category, 4.5 | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | 1,443 | 756 |
Rating category, 4.0 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 5,810 | 4,880 |
Rating category, 4.0 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 5,734 | 4,814 |
Rating category, 4.0 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 5,734 | 4,814 |
Rating category, 4.0 | Financial instruments not recognized on consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 76 | 66 |
Rating category, 4.0 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 3 | |
Rating category, 4.0 | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | 76 | 63 |
Rating category, 3.5 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 1,112 | 836 |
Rating category, 3.5 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,112 | 833 |
Rating category, 3.5 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,112 | 833 |
Rating category, 3.5 | Financial instruments not recognized on consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 3 | |
Rating category, 3.5 | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | 3 | |
Rating category, 3.0 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 1,453 | 1,163 |
Rating category, 3.0 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,453 | 1,158 |
Rating category, 3.0 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,453 | 1,158 |
Rating category, 3.0 | Financial instruments not recognized on consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 5 | |
Rating category, 3.0 | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | 5 | |
Rating category, 2.5 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 235 | 246 |
Rating category, 2.5 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 235 | 246 |
Rating category, 2.5 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 235 | 246 |
Rating category, 2.0 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 376 | 312 |
Rating category, 2.0 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 301 | 218 |
Rating category, 2.0 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 301 | 218 |
Rating category, 2.0 | Financial instruments not recognized on consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 75 | 94 |
Rating category, 2.0 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 75 | 75 |
Rating category, 2.0 | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | 19 | |
Rating category, 1.0 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 1,477 | 2,140 |
Rating category, 1.0 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,477 | 2,140 |
Rating category, 1.0 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,477 | 2,140 |
Not rated | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 13,986 | 15,169 |
Not rated | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 12,144 | 12,098 |
Not rated | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 12,710 | 12,098 |
Not rated | Public sector loans | Gross carrying amount | ||
Credit risk | ||
Financial assets | 566 | |
Not rated | Financial instruments not recognized on consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 1,276 | 3,071 |
Not rated | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 913 | 2,586 |
Not rated | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | $ 363 | $ 485 |
Loans and advances to custom_15
Loans and advances to customers - External rating (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Credit risk | ||
Financial assets | $ 1,407,320 | $ 1,361,558 |
Maximum exposure to credit risk | 1,428,587 | 1,409,862 |
External credit grades | ||
Credit risk | ||
Maximum exposure to credit risk | 390,523 | 369,263 |
A-1 | ||
Credit risk | ||
Maximum exposure to credit risk | 188,046 | 183,546 |
A-2 | ||
Credit risk | ||
Maximum exposure to credit risk | 42,182 | 39,995 |
B-1 | ||
Credit risk | ||
Maximum exposure to credit risk | 43,365 | 38,029 |
B-2 | ||
Credit risk | ||
Maximum exposure to credit risk | 35,899 | 29,075 |
B-3 | ||
Credit risk | ||
Maximum exposure to credit risk | 23,606 | 19,458 |
C-1 | ||
Credit risk | ||
Maximum exposure to credit risk | 20,648 | 20,404 |
C-2 | ||
Credit risk | ||
Maximum exposure to credit risk | 15,431 | 14,983 |
D | ||
Credit risk | ||
Maximum exposure to credit risk | 12,849 | 11,446 |
E | ||
Credit risk | ||
Maximum exposure to credit risk | 8,286 | 7,347 |
Not rated | ||
Credit risk | ||
Maximum exposure to credit risk | 211 | 4,980 |
Loans and advances - Customers | External credit grades | Gross carrying amount | ||
Credit risk | ||
Financial assets | 345,835 | 334,809 |
Loans and advances - Customers | A-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 180,912 | 176,922 |
Loans and advances - Customers | A-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 34,396 | 34,755 |
Loans and advances - Customers | B-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 35,252 | 32,286 |
Loans and advances - Customers | B-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 31,334 | 25,615 |
Loans and advances - Customers | B-3 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 20,181 | 16,857 |
Loans and advances - Customers | C-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 15,905 | 16,801 |
Loans and advances - Customers | C-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 10,898 | 11,307 |
Loans and advances - Customers | D | Gross carrying amount | ||
Credit risk | ||
Financial assets | 10,928 | 9,846 |
Loans and advances - Customers | E | Gross carrying amount | ||
Credit risk | ||
Financial assets | 5,818 | 5,440 |
Loans and advances - Customers | Not rated | Gross carrying amount | ||
Credit risk | ||
Financial assets | 211 | 4,980 |
Commercial loans (SMEs) | External credit grades | Gross carrying amount | ||
Credit risk | ||
Financial assets | 76,563 | 77,273 |
Commercial loans (SMEs) | A-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 50,253 | 57,411 |
Commercial loans (SMEs) | A-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 6,730 | 7,716 |
Commercial loans (SMEs) | B-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 2,553 | 1,843 |
Commercial loans (SMEs) | B-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 2,575 | 2,276 |
Commercial loans (SMEs) | B-3 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 9,046 | 4,176 |
Commercial loans (SMEs) | C-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 2,068 | 1,308 |
Commercial loans (SMEs) | C-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 723 | 538 |
Commercial loans (SMEs) | D | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,941 | 1,673 |
Commercial loans (SMEs) | E | Gross carrying amount | ||
Credit risk | ||
Financial assets | 674 | 332 |
Securitized mortgage assets | External credit grades | Gross carrying amount | ||
Credit risk | ||
Financial assets | 152,140 | 145,749 |
Securitized mortgage assets | A-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 117,983 | 107,435 |
Securitized mortgage assets | A-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 3,384 | 4,623 |
Securitized mortgage assets | B-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,685 | 3,576 |
Securitized mortgage assets | B-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 14,161 | 9,504 |
Securitized mortgage assets | B-3 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,114 | 2,712 |
Securitized mortgage assets | C-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 4,936 | 5,731 |
Securitized mortgage assets | C-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 3,465 | 3,655 |
Securitized mortgage assets | D | Gross carrying amount | ||
Credit risk | ||
Financial assets | 4,507 | 3,525 |
Securitized mortgage assets | E | Gross carrying amount | ||
Credit risk | ||
Financial assets | 694 | 889 |
Securitized mortgage assets | Not rated | Gross carrying amount | ||
Credit risk | ||
Financial assets | 211 | 4,099 |
Installment loans to individuals - Revolving consumer credit cards loans | External credit grades | Gross carrying amount | ||
Credit risk | ||
Financial assets | 59,477 | 56,227 |
Installment loans to individuals - Revolving consumer credit cards loans | A-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 3,165 | 2,896 |
Installment loans to individuals - Revolving consumer credit cards loans | A-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 17,396 | 15,463 |
Installment loans to individuals - Revolving consumer credit cards loans | B-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 16,396 | 15,052 |
Installment loans to individuals - Revolving consumer credit cards loans | B-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 5,842 | 5,743 |
Installment loans to individuals - Revolving consumer credit cards loans | B-3 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 2,945 | 2,858 |
Installment loans to individuals - Revolving consumer credit cards loans | C-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 4,791 | 4,694 |
Installment loans to individuals - Revolving consumer credit cards loans | C-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 4,227 | 4,580 |
Installment loans to individuals - Revolving consumer credit cards loans | D | Gross carrying amount | ||
Credit risk | ||
Financial assets | 3,332 | 3,584 |
Installment loans to individuals - Revolving consumer credit cards loans | E | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,383 | 1,357 |
Installment loans to individuals - Non-revolving consumer loans | External credit grades | Gross carrying amount | ||
Credit risk | ||
Financial assets | 57,655 | 55,560 |
Installment loans to individuals - Non-revolving consumer loans | A-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 9,511 | 9,180 |
Installment loans to individuals - Non-revolving consumer loans | A-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 6,886 | 6,953 |
Installment loans to individuals - Non-revolving consumer loans | B-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 14,618 | 11,815 |
Installment loans to individuals - Non-revolving consumer loans | B-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 8,756 | 8,092 |
Installment loans to individuals - Non-revolving consumer loans | B-3 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 7,076 | 7,111 |
Installment loans to individuals - Non-revolving consumer loans | C-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 4,110 | 5,068 |
Installment loans to individuals - Non-revolving consumer loans | C-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 2,483 | 2,534 |
Installment loans to individuals - Non-revolving consumer loans | D | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,148 | 1,064 |
Installment loans to individuals - Non-revolving consumer loans | E | Gross carrying amount | ||
Credit risk | ||
Financial assets | 3,067 | 2,862 |
Installment loans to individuals - Non-revolving consumer loans | Not rated | Gross carrying amount | ||
Credit risk | ||
Financial assets | 881 | |
Financial instruments not recognized on consolidated balance sheet | External credit grades | ||
Credit risk | ||
Guarantees and loan commitments | 44,688 | 34,454 |
Financial instruments not recognized on consolidated balance sheet | A-1 | ||
Credit risk | ||
Guarantees and loan commitments | 7,134 | 6,624 |
Financial instruments not recognized on consolidated balance sheet | A-2 | ||
Credit risk | ||
Guarantees and loan commitments | 7,786 | 5,240 |
Financial instruments not recognized on consolidated balance sheet | B-1 | ||
Credit risk | ||
Guarantees and loan commitments | 8,113 | 5,743 |
Financial instruments not recognized on consolidated balance sheet | B-2 | ||
Credit risk | ||
Guarantees and loan commitments | 4,565 | 3,460 |
Financial instruments not recognized on consolidated balance sheet | B-3 | ||
Credit risk | ||
Guarantees and loan commitments | 3,425 | 2,601 |
Financial instruments not recognized on consolidated balance sheet | C-1 | ||
Credit risk | ||
Guarantees and loan commitments | 4,743 | 3,603 |
Financial instruments not recognized on consolidated balance sheet | C-2 | ||
Credit risk | ||
Guarantees and loan commitments | 4,533 | 3,676 |
Financial instruments not recognized on consolidated balance sheet | D | ||
Credit risk | ||
Guarantees and loan commitments | 1,921 | 1,600 |
Financial instruments not recognized on consolidated balance sheet | E | ||
Credit risk | ||
Guarantees and loan commitments | 2,468 | 1,907 |
Available lines of credit cards and non-revolving consumer loans | External credit grades | ||
Credit risk | ||
Guarantees and loan commitments | 44,468 | 34,195 |
Available lines of credit cards and non-revolving consumer loans | A-1 | ||
Credit risk | ||
Guarantees and loan commitments | 6,914 | 6,365 |
Available lines of credit cards and non-revolving consumer loans | A-2 | ||
Credit risk | ||
Guarantees and loan commitments | 7,786 | 5,240 |
Available lines of credit cards and non-revolving consumer loans | B-1 | ||
Credit risk | ||
Guarantees and loan commitments | 8,113 | 5,743 |
Available lines of credit cards and non-revolving consumer loans | B-2 | ||
Credit risk | ||
Guarantees and loan commitments | 4,565 | 3,460 |
Available lines of credit cards and non-revolving consumer loans | B-3 | ||
Credit risk | ||
Guarantees and loan commitments | 3,425 | 2,601 |
Available lines of credit cards and non-revolving consumer loans | C-1 | ||
Credit risk | ||
Guarantees and loan commitments | 4,743 | 3,603 |
Available lines of credit cards and non-revolving consumer loans | C-2 | ||
Credit risk | ||
Guarantees and loan commitments | 4,533 | 3,676 |
Available lines of credit cards and non-revolving consumer loans | D | ||
Credit risk | ||
Guarantees and loan commitments | 1,921 | 1,600 |
Available lines of credit cards and non-revolving consumer loans | E | ||
Credit risk | ||
Guarantees and loan commitments | 2,468 | 1,907 |
Guarantees | External credit grades | ||
Credit risk | ||
Guarantees and loan commitments | 37 | 85 |
Guarantees | A-1 | ||
Credit risk | ||
Guarantees and loan commitments | 37 | 85 |
Loans and credits | External credit grades | ||
Credit risk | ||
Guarantees and loan commitments | 183 | 174 |
Loans and credits | A-1 | ||
Credit risk | ||
Guarantees and loan commitments | $ 183 | $ 174 |
Loans and advances to custom_16
Loans and advances to customers - Securitization (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Securitized loans | ||
Financial instruments | ||
Loans and advances to customers | $ 0 | $ 133 |
Hedging derivatives - By type (
Hedging derivatives - By type (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Hedging derivatives | ||
Fair value of hedging derivative assets | $ 9,256 | $ 9,285 |
Hedging derivatives | 7,523 | 8,393 |
Fair value hedges | ||
Hedging derivatives | ||
Fair value of hedging derivative assets | 925 | 202 |
Hedging derivatives | 5,306 | 5,136 |
Cash flow hedges | ||
Hedging derivatives | ||
Fair value of hedging derivative assets | 8,331 | 9,083 |
Hedging derivatives | $ 2,217 | $ 3,257 |
Hedging derivatives - Fair valu
Hedging derivatives - Fair value hedges (Details) - Fair value hedges € in Millions, £ in Millions, $ in Millions, $ in Millions, in Millions | 12 Months Ended | ||||||||||||
Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | Dec. 31, 2019GBP (£) | Dec. 31, 2019MXV ( ) | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2018MXV ( ) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018MXN ($) | |
Hedging derivatives | |||||||||||||
Gains/(losses) on financial assets and liabilities (net) - derivative financial instrument for fair value hedging | $ (667) | $ 474 | $ (117) | ||||||||||
Gains/(losses) on financial assets and liabilities (net) - hedged items for fair value hedging | $ 731 | $ (606) | $ 341 | ||||||||||
Interest rate risk | Loans and receivables | Mexican peso | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | $ 3,900 | $ 1,797 | |||||||||||
Interest rate risk | Loans and receivables | US dollar | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | $ 6 | 114 | $ 12 | 236 | |||||||||
Interest rate risk | Promissory notes | Mexican peso | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | 6,422 | ||||||||||||
Interest rate risk | Mexican Government Bonds | US dollar | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | 47,046 | ||||||||||||
Interest rate and foreign exchange risk | Loans and receivables | US dollar | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | 13 | 313 | 3 | 40 | |||||||||
Interest rate and foreign exchange risk | Promissory notes | Mexican peso | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | 7,583 | ||||||||||||
Interest rate and foreign exchange risk | UMS | US dollar | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | $ 280 | 5,394 | 67 | 1,275 | |||||||||
Interest rate and foreign exchange risk | UMS | Euro | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | € 1,181 | 25,256 | € 1,069 | 22,842 | |||||||||
Interest rate and foreign exchange risk | UMS | Pound sterling | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | £ 58 | 1,492 | £ 58 | 1,492 | |||||||||
Interest rate and foreign exchange risk | PEMEX Bonds | US dollar | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | $ 39 | 473 | |||||||||||
Interest rate and inflation risk | UDIBONDS | UDIS | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | 703 | $ 3,287 | 825 | $ 3,859 |
Hedging derivatives - Cash flow
Hedging derivatives - Cash flow hedges (Details) € in Millions, £ in Millions, R$ in Millions, $ in Millions, $ in Millions | 12 Months Ended | |||||||||||||||
Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | Dec. 31, 2019GBP (£) | Dec. 31, 2019BRL (R$) | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2018BRL (R$) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018MXN ($) | Oct. 31, 2018MXN ($) | Nov. 30, 2017USD ($) | Mar. 31, 2017USD ($) | |
Hedging derivatives | ||||||||||||||||
Valuation adjustments, cash flow hedge | $ 29 | $ (882) | $ (1,585) | |||||||||||||
Other comprehensive income under Valuation adjustments - Cash flow hedges | $ 17 | $ 25 | ||||||||||||||
Cash flow hedges | ||||||||||||||||
Hedging derivatives | ||||||||||||||||
Valuation adjustments, cash flow hedge | $ 29 | $ (882) | $ (1,585) | |||||||||||||
Other comprehensive income under Valuation adjustments - Cash flow hedges | 17 | 25 | ||||||||||||||
Cash flow hedges | Loans and receivables | ||||||||||||||||
Hedging derivatives | ||||||||||||||||
Discontinued hedge | $ 37 | |||||||||||||||
Cash flow hedges | Tier II Subordinated Capital Notes | ||||||||||||||||
Hedging derivatives | ||||||||||||||||
Discontinued hedge | $ 1,045 | |||||||||||||||
Cash flow hedges | UMS | ||||||||||||||||
Hedging derivatives | ||||||||||||||||
Discontinued hedge | $ 10 | |||||||||||||||
Cash flow hedges | Interest rate risk | Unsecured notes | Mexican peso | ||||||||||||||||
Hedging derivatives | ||||||||||||||||
Nominal Value | 11,311 | 4,000 | ||||||||||||||
Cash flow hedges | Currency risk | Unsecured notes | US dollar | ||||||||||||||||
Hedging derivatives | ||||||||||||||||
Nominal Value | $ 150 | 2,830 | $ 150 | 2,948 | ||||||||||||
Cash flow hedges | Currency risk | Loans and receivables | US dollar | ||||||||||||||||
Hedging derivatives | ||||||||||||||||
Nominal Value | 166 | 2,358 | 193 | 2,707 | ||||||||||||
Cash flow hedges | Currency risk | Loans and receivables | Euro | ||||||||||||||||
Hedging derivatives | ||||||||||||||||
Nominal Value | € 104 | 1,854 | € 113 | 1,994 | ||||||||||||
Cash flow hedges | Currency risk | Loans and receivables | Pound sterling | ||||||||||||||||
Hedging derivatives | ||||||||||||||||
Nominal Value | £ 34 | 777 | £ 34 | 777 | ||||||||||||
Cash flow hedges | Currency risk | Senior Unsecured Notes | US dollar | ||||||||||||||||
Hedging derivatives | ||||||||||||||||
Nominal Value | 543 | 10,234 | 543 | 10,661 | ||||||||||||
Cash flow hedges | Currency risk | UMS | US dollar | ||||||||||||||||
Hedging derivatives | ||||||||||||||||
Nominal Value | 50 | 911 | 50 | 911 | ||||||||||||
Cash flow hedges | Currency risk | UMS | Euro | ||||||||||||||||
Hedging derivatives | ||||||||||||||||
Nominal Value | € 136 | 2,657 | € 136 | 2,657 | ||||||||||||
Cash flow hedges | Currency risk | UMS | Pound sterling | ||||||||||||||||
Hedging derivatives | ||||||||||||||||
Nominal Value | £ 10 | 260 | £ 10 | 260 | ||||||||||||
Cash flow hedges | Currency risk | Borrowing from banks | US dollar | ||||||||||||||||
Hedging derivatives | ||||||||||||||||
Nominal Value | 50 | 983 | ||||||||||||||
Cash flow hedges | Currency risk | Brazilian Government Notes | US dollar | ||||||||||||||||
Hedging derivatives | ||||||||||||||||
Nominal Value | $ 1,726 | 37,743 | $ 1,814 | 38,015 | ||||||||||||
Cash flow hedges | Currency risk | Brazilian Government Notes | Brazilian real | ||||||||||||||||
Hedging derivatives | ||||||||||||||||
Nominal Value | R$ 6919 | $ 32,372 | R$ 6493 | $ 35,645 |
Hedging derivatives - Reconcili
Hedging derivatives - Reconciliation of valuation adjustments (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Hedging derivatives | |||
Balance at January 1 | $ (290) | ||
Valuation adjustments, cash flow hedge | 29 | $ (882) | $ (1,585) |
Amounts reclassified to consolidated income statement, Cash flow hedge | (9) | (40) | 118 |
Income tax, Cash flow hedge | (6) | 276 | 440 |
Balance at December 31 | (276) | (290) | |
Cash flow hedges | |||
Hedging derivatives | |||
Balance at January 1 | (290) | 356 | 1,383 |
Valuation adjustments, cash flow hedge | 29 | (882) | (1,585) |
Amounts reclassified to consolidated income statement, Cash flow hedge | (9) | (40) | 118 |
Income from cash flow hedging derivatives swaps and discontinued cash flow hedge accounting | (11) | (42) | 120 |
Cash flow hedges ineffectiveness | 2 | 2 | (2) |
Income tax, Cash flow hedge | (6) | 276 | 440 |
Balance at December 31 | (276) | $ (290) | $ 356 |
Cash flows to be received | 1,961 | ||
Cash flows to be paid | (2,355) | ||
Cash flow hedges | Less than 3 Months | |||
Hedging derivatives | |||
Cash flows to be received | 18 | ||
Cash flows to be paid | (258) | ||
Cash flow hedges | 3 to 12 months | |||
Hedging derivatives | |||
Cash flows to be received | 583 | ||
Cash flows to be paid | (774) | ||
Cash flow hedges | Between one and five years | |||
Hedging derivatives | |||
Cash flows to be received | 1,345 | ||
Cash flows to be paid | (1,297) | ||
Cash flow hedges | More than five years | |||
Hedging derivatives | |||
Cash flows to be received | 15 | ||
Cash flows to be paid | $ (26) |
Non-current assets held for s_3
Non-current assets held for sale - Breakdown (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Non-current assets held for sale | |||
Non-current assets held for sale | $ 935 | $ 1,277 | $ 1,295 |
Gains/(losses) on disposal of non-current assets held for sale not classified as discontinued operations (net) | $ 42 | $ 38 | $ 69 |
Non-current assets held for s_4
Non-current assets held for sale - Change in foreclosed assets (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Non-current assets held for sale | |||
Balances at beginning of year | $ 1,277 | $ 1,295 | |
Additions | 146 | 213 | |
Disposals | (118) | (226) | |
Impairment losses | (370) | (5) | |
Balances at end of year | 935 | 1,277 | $ 1,295 |
Non-current assets held for sale [member] | |||
Non-current assets held for sale | |||
Impairment losses | $ (370) | $ (5) | $ 0 |
Tangible assets - Changes in th
Tangible assets - Changes in the consolidated balance sheet (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in Tangible assets | ||
Balances at the beginning of the year | $ 8,714 | |
Balances at the end of the year | 10,542 | $ 8,714 |
Tangible assets pledged as security for liabilities | 0 | |
Gross carrying amount | ||
Changes in Tangible assets | ||
Balances at the beginning of the year | 16,828 | 13,307 |
Additions | 3,208 | 2,857 |
Disposals | (207) | (151) |
Balances at the end of the year | 19,829 | 16,828 |
Accumulated depreciation and amortization | ||
Changes in Tangible assets | ||
Balances at the beginning of the year | (8,114) | (6,809) |
Additions | (1,378) | (1,091) |
Disposals | 205 | 144 |
Balances at the end of the year | $ (9,287) | (8,114) |
Santander Tecnologia Mexico, S.A. de C.V. (formerly Isban Mexico, S.A. de C.V.) | Gross carrying amount | ||
Changes in Tangible assets | ||
Assets acquired from Santander Technologia Mexico | 815 | |
Santander Tecnologia Mexico, S.A. de C.V. (formerly Isban Mexico, S.A. de C.V.) | Accumulated depreciation and amortization | ||
Changes in Tangible assets | ||
Assets acquired from Santander Technologia Mexico | $ (358) |
Tangible assets - Breakdown by
Tangible assets - Breakdown by asset class of Tangible assets for own use (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Tangible assets for own use | |||
Tangible assets | $ 10,542 | $ 8,714 | |
Gross carrying amount | |||
Tangible assets for own use | |||
Tangible assets | 19,829 | 16,828 | $ 13,307 |
Accumulated depreciation and amortization | |||
Tangible assets for own use | |||
Tangible assets | (9,287) | (8,114) | $ (6,809) |
Buildings for own use | |||
Tangible assets for own use | |||
Tangible assets | 5,898 | 4,601 | |
Buildings for own use | Gross carrying amount | |||
Tangible assets for own use | |||
Tangible assets | 11,724 | 9,780 | |
Buildings for own use | Accumulated depreciation and amortization | |||
Tangible assets for own use | |||
Tangible assets | (5,826) | (5,179) | |
IT equipment and fixtures | |||
Tangible assets for own use | |||
Tangible assets | 2,776 | 2,095 | |
IT equipment and fixtures | Gross carrying amount | |||
Tangible assets for own use | |||
Tangible assets | 4,776 | 3,715 | |
IT equipment and fixtures | Accumulated depreciation and amortization | |||
Tangible assets for own use | |||
Tangible assets | (2,000) | (1,620) | |
Furniture and vehicles | |||
Tangible assets for own use | |||
Tangible assets | 1,166 | 926 | |
Furniture and vehicles | Gross carrying amount | |||
Tangible assets for own use | |||
Tangible assets | 2,627 | 2,241 | |
Furniture and vehicles | Accumulated depreciation and amortization | |||
Tangible assets for own use | |||
Tangible assets | (1,461) | (1,315) | |
Others | |||
Tangible assets for own use | |||
Tangible assets | 702 | 1,092 | |
Others | Gross carrying amount | |||
Tangible assets for own use | |||
Tangible assets | $ 702 | $ 1,092 |
Leases - Right of use assets (D
Leases - Right of use assets (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019MXN ($) | |
Right-of-use assets | |
Remeasurement in the right-of-use asset | $ (684) |
Additions in right-of-use assets | 957 |
Depreciation | (1,396) |
Balance at end of period | 5,611 |
IFRS 16 | |
Right-of-use assets | |
Balance at beginning of period | 6,734 |
Branch offices | |
Right-of-use assets | |
Remeasurement in the right-of-use asset | (684) |
Additions in right-of-use assets | 957 |
Depreciation | (1,381) |
Balance at end of period | 5,583 |
Branch offices | IFRS 16 | |
Right-of-use assets | |
Balance at beginning of period | 6,691 |
IT equipment | |
Right-of-use assets | |
Depreciation | (3) |
Balance at end of period | 9 |
IT equipment | IFRS 16 | |
Right-of-use assets | |
Balance at beginning of period | 12 |
Furniture and equipment | |
Right-of-use assets | |
Depreciation | (12) |
Balance at end of period | 19 |
Furniture and equipment | IFRS 16 | |
Right-of-use assets | |
Balance at beginning of period | $ 31 |
Leases - Activity in finance le
Leases - Activity in finance lease liabilities (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019MXN ($) | |
Lease liabilities | |
Interest from lease liability | $ 729 |
New contracts | 957 |
Remeasurement on leases liabilities | (684) |
Payments | (1,817) |
Balance at end of period | 5,919 |
IFRS 16 | |
Lease liabilities | |
Balance at beginning of period | $ 6,734 |
Leases - Maturity of lease paym
Leases - Maturity of lease payments (Details) $ in Millions | Dec. 31, 2019MXN ($) |
Undiscounted contractual maturities | |
Gross lease liabilities | $ 8,394 |
Lease liabilities included in the financial statement of financial position | 5,919 |
Current lease liabilities | 1,374 |
Long-term lease liabilities | 4,545 |
Within one year | |
Undiscounted contractual maturities | |
Gross lease liabilities | 1,722 |
1 to 3 years | |
Undiscounted contractual maturities | |
Gross lease liabilities | 2,765 |
3 to 5 years | |
Undiscounted contractual maturities | |
Gross lease liabilities | 1,536 |
More than five years | |
Undiscounted contractual maturities | |
Gross lease liabilities | $ 2,371 |
Leases - Leaseback (Detail)
Leases - Leaseback (Detail) | 3 Months Ended |
Jun. 30, 2012periodproperty | |
Leaseback | |
Number of additional renewal periods | period | 4 |
Fibra Uno | |
Leaseback | |
Number of properties sold | property | 220 |
Term of operating lease | 20 years |
Term of renewal periods | 5 years |
Leases - Additional information
Leases - Additional information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019MXN ($) | |
Leases | |
Interest on lease liabilities | $ 729 |
Expense relating to short-term leases | $ 80 |
Intangible assets - Goodwill -
Intangible assets - Goodwill - Breakdown based on CGUs to which Goodwill has been allocated and Changes (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Intangible assets - Goodwill | ||
Goodwill | $ 1,734 | $ 1,734 |
Intangible assets - Goodwill _2
Intangible assets - Goodwill - Assumptions used in the calculation of impairment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
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 | 10 years |
Discount rate (as a percent) | 8.70% |
Risk free rate (as a percent) | 7.11% |
Beta | 0.869 |
Equity Risk Premium (as a percent) | 6.38% |
Merger of Santander Vivienda, Santander Hipotecario and Santander Holding Vivienda | Cost of Equity, measurement input | |
Goodwill | |
Significant unobservable input, assets | 12.7000 |
Merger of Santander Vivienda, Santander Hipotecario and Santander Holding Vivienda | Cost of Debt, measurement input | |
Goodwill | |
Significant unobservable input, assets | 0.080 |
Merger of Santander Vivienda, Santander Hipotecario and Santander Holding Vivienda | Capital Structure, Equity, measurement input | |
Goodwill | |
Significant unobservable input, assets | 0.13 |
Merger of Santander Vivienda, Santander Hipotecario and Santander Holding Vivienda | Capital Structure, Debt, measurement input | |
Goodwill | |
Significant unobservable input, assets | 0.87 |
Intangible assets - Other int_3
Intangible assets - Other intangible assets - Changes (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in Other intangible assets | ||
Balances at beginning of the year | $ 6,310 | |
Balances at end of the year | 7,098 | $ 6,310 |
Gross carrying amount | ||
Changes in Other intangible assets | ||
Balances at beginning of the year | 13,753 | 10,789 |
Additions | 3,236 | 2,964 |
Balances at end of the year | 16,989 | 13,753 |
Accumulated depreciation, amortisation and impairment | ||
Changes in Other intangible assets | ||
Balances at beginning of the year | (7,443) | (5,563) |
Additions | (2,448) | (1,880) |
Balances at end of the year | $ (9,891) | $ (7,443) |
Intangible assets - Other int_4
Intangible assets - Other intangible assets - Breakdown (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible assets - Other intangible assets | |||
Other intangible assets | $ 7,098 | $ 6,310 | |
Intangible assets with restricted title or pledged as security for liabilities | 0 | 0 | |
Gross carrying amount | |||
Intangible assets - Other intangible assets | |||
Other intangible assets | 16,989 | 13,753 | $ 10,789 |
Accumulated depreciation and amortization | |||
Intangible assets - Other intangible assets | |||
Other intangible assets | $ (9,891) | $ (7,443) | |
IT developments | |||
Intangible assets - Other intangible assets | |||
Estimated useful life | 3 years | 3 years | |
Other intangible assets | $ 7,045 | $ 6,246 | |
IT developments | Gross carrying amount | |||
Intangible assets - Other intangible assets | |||
Other intangible assets | 16,903 | 13,666 | |
IT developments | Accumulated depreciation and amortization | |||
Intangible assets - Other intangible assets | |||
Other intangible assets | $ (9,858) | $ (7,420) | |
Other intangibles | |||
Intangible assets - Other intangible assets | |||
Estimated useful life | 10 years | 10 years | |
Other intangible assets | $ 53 | $ 64 | |
Other intangibles | Gross carrying amount | |||
Intangible assets - Other intangible assets | |||
Other intangible assets | 86 | 87 | |
Other intangibles | Accumulated depreciation and amortization | |||
Intangible assets - Other intangible assets | |||
Other intangible assets | $ (33) | $ (23) |
Other assets (Details)
Other assets (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other assets | ||
Credit Card Operating Assets | $ 2,577 | $ 2,192 |
Insurance Commissions Receivable | 1,278 | 1,108 |
Prepayments and accrued income | 695 | 630 |
Other miscellaneous assets | 6,623 | 3,233 |
Other assets, total | $ 11,173 | $ 7,163 |
Other assets - Maturity (Detail
Other assets - Maturity (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Other Assets [Line Items] | ||
Credit Card Operating Assets | $ 2,577 | $ 2,192 |
Insurance commission receivables | 1,278 | 1,108 |
Prepaid expenses | 695 | 630 |
Other miscellaneous assets | 6,623 | 3,233 |
Other assets, total | 11,173 | $ 7,163 |
Gross carrying amount | ||
Schedule of Other Assets [Line Items] | ||
Credit Card Operating Assets | 2,577 | |
Insurance commission receivables | 1,278 | |
Prepaid expenses | 695 | |
Other miscellaneous assets | 7,553 | |
Other assets, total | 12,103 | |
Impairment losses | Lifetime expected credit losses [member] | ||
Schedule of Other Assets [Line Items] | ||
Other miscellaneous assets | $ (930) | |
Current | ||
Schedule of Other Assets [Line Items] | ||
Expected credit loss rate | 5.00% | |
Other assets, total | $ 6,965 | |
Current | Gross carrying amount | ||
Schedule of Other Assets [Line Items] | ||
Credit Card Operating Assets | 1,161 | |
Insurance commission receivables | 1 | |
Prepaid expenses | 599 | |
Other miscellaneous assets | 5,539 | |
Other assets, total | 7,300 | |
Current | Impairment losses | Lifetime expected credit losses [member] | ||
Schedule of Other Assets [Line Items] | ||
Other miscellaneous assets | $ (335) | |
1 to 30 Days | ||
Schedule of Other Assets [Line Items] | ||
Expected credit loss rate | 10.00% | |
Other assets, total | $ 437 | |
1 to 30 Days | Gross carrying amount | ||
Schedule of Other Assets [Line Items] | ||
Credit Card Operating Assets | 209 | |
Insurance commission receivables | 21 | |
Prepaid expenses | 38 | |
Other miscellaneous assets | 220 | |
Other assets, total | 488 | |
1 to 30 Days | Impairment losses | Lifetime expected credit losses [member] | ||
Schedule of Other Assets [Line Items] | ||
Other miscellaneous assets | $ (51) | |
31 to 60 Days | ||
Schedule of Other Assets [Line Items] | ||
Expected credit loss rate | 19.00% | |
Other assets, total | $ 199 | |
31 to 60 Days | Gross carrying amount | ||
Schedule of Other Assets [Line Items] | ||
Credit Card Operating Assets | 96 | |
Insurance commission receivables | 45 | |
Prepaid expenses | 57 | |
Other miscellaneous assets | 46 | |
Other assets, total | 244 | |
31 to 60 Days | Impairment losses | Lifetime expected credit losses [member] | ||
Schedule of Other Assets [Line Items] | ||
Other miscellaneous assets | $ (45) | |
More than 90 days | ||
Schedule of Other Assets [Line Items] | ||
Expected credit loss rate | 12.00% | |
Other assets, total | $ 3,572 | |
More than 90 days | Gross carrying amount | ||
Schedule of Other Assets [Line Items] | ||
Credit Card Operating Assets | 1,111 | |
Insurance commission receivables | 1,211 | |
Prepaid expenses | 1 | |
Other miscellaneous assets | 1,748 | |
Other assets, total | 4,071 | |
More than 90 days | Impairment losses | Lifetime expected credit losses [member] | ||
Schedule of Other Assets [Line Items] | ||
Other miscellaneous assets | $ (499) |
Deposits from the Central Ban_3
Deposits from the Central Bank and Deposits from credit institutions - Classification (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits | ||
Other financial liabilities at fair value through profit or loss | $ 273,725 | $ 178,265 |
Financial liabilities at amortized cost | 864,266 | 890,284 |
Total financial liabilities | 1,299,114 | 1,259,588 |
Deposits from the Central Bank and credit institutions | ||
Deposits | ||
Other financial liabilities at fair value through profit or loss | 141,263 | 44,796 |
Financial liabilities at amortized cost | 72,969 | 94,849 |
Total financial liabilities | $ 214,232 | $ 139,645 |
Deposits from the Central Ban_4
Deposits from the Central Bank and Deposits from credit institutions - By type and currency (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Type: | ||
Financial instruments received as collateral | $ 82,342 | $ 111,937 |
Cash collateral received | 16,759 | 42,480 |
Total financial liabilities | 1,299,114 | 1,259,588 |
Deposits from the Central Bank and credit institutions | ||
Type: | ||
Reciprocal accounts | 7,272 | 3,999 |
Time deposits | 8,914 | 10,125 |
Overnight deposits | 26,710 | 23,359 |
Repurchase agreements | 141,263 | 44,796 |
Other accounts | 29,961 | 57,315 |
Cash collateral received | 8,960 | 32,606 |
Others | 21,001 | 24,709 |
Accrued interest | 112 | 51 |
Total financial liabilities | 214,232 | 139,645 |
Mexican peso | Deposits from the Central Bank and credit institutions | ||
Type: | ||
Total financial liabilities | 195,604 | 125,839 |
US dollar | Deposits from the Central Bank and credit institutions | ||
Type: | ||
Total financial liabilities | 18,565 | 13,791 |
Other currencies | Deposits from the Central Bank and credit institutions | ||
Type: | ||
Total financial liabilities | $ 63 | $ 15 |
Customer deposits - Classificat
Customer deposits - Classification (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Customer deposits | ||
Other financial liabilities at fair value through profit or loss | $ 273,725 | $ 178,265 |
Financial liabilities at amortized cost | 864,266 | 890,284 |
Total financial liabilities | 1,299,114 | 1,259,588 |
Deposits - Customers | ||
Customer deposits | ||
Other financial liabilities at fair value through profit or loss | 129,216 | 128,719 |
Financial liabilities at amortized cost | 630,055 | 646,089 |
Total financial liabilities | $ 759,271 | $ 774,808 |
Customer deposits - By type and
Customer deposits - By type and currency (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Demand deposits | ||
Cash collateral received | $ 16,759 | $ 42,480 |
Time deposits: | ||
Total financial liabilities | 1,299,114 | 1,259,588 |
Deposits - Customers | ||
Type: | ||
Repurchase agreements | 129,216 | 128,719 |
Demand deposits | ||
Current accounts | 424,563 | 443,223 |
Other deposits | 24,010 | 25,904 |
Cash collateral received | 7,799 | 9,874 |
Others | 16,211 | 16,030 |
Time deposits: | ||
Fixed-term deposits | 179,768 | 175,642 |
Accrued interest | 1,714 | 1,320 |
Total financial liabilities | 759,271 | 774,808 |
Deposits - Customers | Mexican peso | ||
Time deposits: | ||
Total financial liabilities | 677,634 | 664,535 |
Deposits - Customers | US dollar | ||
Time deposits: | ||
Total financial liabilities | 81,631 | 110,120 |
Deposits - Customers | Other currencies | ||
Time deposits: | ||
Total financial liabilities | 6 | 153 |
Financial instrument in connection with OTC derivative transactions | Deposits | ||
Demand deposits | ||
Cash collateral received | 16,759 | 42,480 |
Financial instrument in connection with OTC derivative transactions | Deposits - Customers | ||
Demand deposits | ||
Cash collateral received | $ 7,799 | $ 9,874 |
Marketable debt securities - Br
Marketable debt securities - Breakdown (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Marketable debt securities | ||
Other financial liabilities designated at fair value through profit or loss | $ 273,725 | $ 178,265 |
Financial liabilities at amortized cost | 864,266 | 890,284 |
Total financial liabilities | 1,299,114 | 1,259,588 |
Debt instruments | ||
Marketable debt securities | ||
Other financial liabilities designated at fair value through profit or loss | 3,246 | 4,750 |
Financial liabilities at amortized cost | 111,211 | 98,312 |
Total financial liabilities | 114,457 | 103,062 |
Debt instruments | Mexican peso | ||
Marketable debt securities | ||
Total financial liabilities | 89,233 | 76,075 |
Debt instruments | US dollar | ||
Marketable debt securities | ||
Total financial liabilities | 25,224 | 26,987 |
Certificates of deposit (unsecured) | ||
Marketable debt securities | ||
Total financial liabilities | 37,823 | 22,433 |
Senior Unsecured Notes | ||
Marketable debt securities | ||
Total financial liabilities | 18,849 | 19,590 |
Structured bank bonds | ||
Marketable debt securities | ||
Total financial liabilities | 4,797 | 5,376 |
Promissory notes | ||
Marketable debt securities | ||
Total financial liabilities | 23,314 | 35,831 |
Unsecured bonds | ||
Marketable debt securities | ||
Total financial liabilities | $ 29,674 | 19,717 |
Mortgage-backed bonds | ||
Marketable debt securities | ||
Total financial liabilities | $ 115 |
Marketable debt securities - Ch
Marketable debt securities - Changes in financial liabilities at fair value (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | $ 1,259,588 | |
Financial liabilities at end of period | 1,299,114 | $ 1,259,588 |
Debt instruments | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 103,062 | |
Financial liabilities at end of period | 114,457 | 103,062 |
Debt instruments | Financial liabilities designated at fair value through profit or loss | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 4,750 | 10,504 |
Issues | 983 | 1,243 |
Redemptions | (2,914) | (6,715) |
Changes in fair value recognized in profit or loss | 427 | (282) |
Financial liabilities at end of period | 3,246 | 4,750 |
Structured bank bonds | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 5,376 | |
Financial liabilities at end of period | 4,797 | 5,376 |
Structured bank bonds | Financial liabilities designated at fair value through profit or loss | ||
Changes in financial instruments, Liabilities | ||
Issues | 983 | 1,243 |
Redemptions | (2,914) | (6,715) |
Parent [member] | Debt instruments | Financial liabilities designated at fair value through profit or loss | ||
Changes in financial instruments, Liabilities | ||
Issues | 983 | 1,243 |
Redemptions | $ (2,914) | $ (6,715) |
Marketable debt securities - _2
Marketable debt securities - Changes in financial liabilities at amortized cost (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | $ 1,259,588 | |
Financial liabilities at end of period | 1,299,114 | $ 1,259,588 |
Debt instruments | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 103,062 | |
Financial liabilities at end of period | 114,457 | 103,062 |
Debt instruments | Financial liabilities at amortized cost | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 98,312 | 85,792 |
Issues | 1,668,170 | 2,458,603 |
Redemptions | (1,654,767) | (2,446,455) |
Accrued interest | 609 | (31) |
Effect of changes in foreign exchange rates | (1,113) | 403 |
Financial liabilities at end of period | 111,211 | 98,312 |
Certificates of deposit (unsecured) | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 22,433 | |
Financial liabilities at end of period | 37,823 | 22,433 |
Certificates of deposit (unsecured) | Financial liabilities at amortized cost | ||
Changes in financial instruments, Liabilities | ||
Issues | 42,195 | 54,486 |
Redemptions | (26,883) | (59,578) |
Structured bank bonds | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 5,376 | |
Financial liabilities at end of period | 4,797 | 5,376 |
Structured bank bonds | Financial liabilities at amortized cost | ||
Changes in financial instruments, Liabilities | ||
Issues | 24,728 | 10,710 |
Redemptions | (23,765) | (10,294) |
Promissory notes | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 35,831 | |
Financial liabilities at end of period | 23,314 | 35,831 |
Promissory notes | Financial liabilities at amortized cost | ||
Changes in financial instruments, Liabilities | ||
Issues | 1,591,247 | 2,382,790 |
Redemptions | (1,604,004) | (2,370,551) |
Unsecured bonds | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 19,717 | |
Financial liabilities at end of period | 29,674 | 19,717 |
Unsecured bonds | Financial liabilities at amortized cost | ||
Changes in financial instruments, Liabilities | ||
Issues | 10,000 | 10,617 |
Redemptions | (6,000) | |
Mortgage-backed bonds | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 115 | |
Financial liabilities at end of period | 115 | |
Mortgage-backed bonds | Financial liabilities at amortized cost | ||
Changes in financial instruments, Liabilities | ||
Redemptions | (115) | (32) |
Parent [member] | Debt instruments | Financial liabilities at amortized cost | ||
Changes in financial instruments, Liabilities | ||
Issues | 1,668,170 | 2,458,603 |
Redemptions | (1,654,652) | (2,446,422) |
Santander Vivienda, S.A. de C.V., SOFOM, E.R. | Debt instruments | Financial liabilities at amortized cost | ||
Changes in financial instruments, Liabilities | ||
Redemptions | $ (115) | $ (32) |
Marketable debt securities - Ot
Marketable debt securities - Other disclosures (Details) - USD ($) $ in Millions | 1 Months Ended | ||||
Aug. 31, 2019 | Feb. 28, 2017 | Oct. 31, 2013 | Oct. 31, 2011 | Apr. 30, 2007 | |
Debt instruments | Maximum | |||||
Financial liabilities | |||||
Authorized issuances | $ 6,500 | $ 4,000 | |||
Authorized issuance period | 15 years | 30 years | |||
Structured bank bonds | |||||
Financial liabilities | |||||
Authorized issuance period | 15 years | 15 years | |||
Structured bank bonds | Maximum | |||||
Financial liabilities | |||||
Authorized issuances | $ 20,000 | $ 10,000 |
Marketable debt securities - Ce
Marketable debt securities - Certificates of deposit (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial liabilities | ||
Total financial liabilities | $ 1,299,114 | $ 1,259,588 |
Debt instruments | ||
Financial liabilities | ||
Total financial liabilities | 114,457 | 103,062 |
Certificates of deposit (unsecured) | ||
Financial liabilities | ||
Financial liabilities | 37,650 | 22,363 |
Accrued interest | 172 | 70 |
Total financial liabilities | 37,823 | 22,433 |
Certificates of deposit December 16, 2020 - One | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Rate (as a percent) | 7.74% | |
Certificates of deposit December 16, 2020 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 500 | |
Rate (as a percent) | 7.59% | |
Certificates of deposit December 11, 2020 - One | ||
Financial liabilities | ||
Financial liabilities | $ 300 | |
Rate (as a percent) | 7.60% | |
Certificates of deposit December 11, 2020 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 700 | |
Rate (as a percent) | 7.75% | |
Certificates of deposit November 9, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,100 | |
Rate (as a percent) | 7.78% | |
Certificates of deposit September 24, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 500 | |
Rate (as a percent) | 7.47% | |
Certificates of deposit November 20, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Rate (as a percent) | 7.72% | |
Certificates of deposit October 26, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 2,000 | |
Rate (as a percent) | 7.59% | |
Certificates of deposit October 8, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 2,500 | |
Rate (as a percent) | 7.79% | |
Certificates of deposit September 30, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 250 | |
Rate (as a percent) | 7.58% | |
Certificates of deposit September 15, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 200 | |
Rate (as a percent) | 7.60% | |
Certificates of deposit September 11, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,150 | |
Rate (as a percent) | 7.60% | |
Certificates of deposit September 2, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 2,000 | |
Rate (as a percent) | 7.76% | |
Certificates of deposit August 27, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,300 | |
Rate (as a percent) | 7.64% | |
Certificates of deposit July 9, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 2,000 | |
Rate (as a percent) | 7.59% | |
Certificates of deposit September 25, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 500 | |
Rate (as a percent) | 7.72% | |
Certificates of deposit July 20, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Rate (as a percent) | 7.89% | |
Certificates of deposit July 3, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,600 | |
Rate (as a percent) | 7.94% | |
Certificates of deposit June 30, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Rate (as a percent) | 7.74% | |
Certificates of deposit June 18, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Rate (as a percent) | 7.81% | |
Certificates of deposit June 5, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 4,000 | |
Rate (as a percent) | 7.74% | |
Certificates of deposit June 4, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,500 | |
Rate (as a percent) | 7.59% | |
Certificates of deposit May 6, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 2,500 | |
Rate (as a percent) | 7.76% | |
Certificates of deposit April 8, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 900 | |
Rate (as a percent) | 7.95% | |
Certificates of deposit March 24, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,500 | |
Rate (as a percent) | 7.59% | |
Certificates of deposit March 12, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 300 | |
Rate (as a percent) | 7.75% | |
Certificates of deposit February 14, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 400 | |
Rate (as a percent) | 7.59% | |
Certificates of deposit February 11, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Rate (as a percent) | 7.59% | |
Certificates of deposit February 10, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 125 | |
Rate (as a percent) | 7.77% | |
Certificates of deposit February 7, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 400 | |
Rate (as a percent) | 7.77% | |
Certificates of deposit February 13, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 300 | |
Rate (as a percent) | 7.75% | |
Certificates of deposit January 22, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 50 | |
Rate (as a percent) | 7.54% | |
Certificates of deposit January 10, 2020 - One | ||
Financial liabilities | ||
Financial liabilities | $ 1,100 | |
Rate (as a percent) | 7.59% | |
Certificates of deposit January 10, 2020 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 400 | |
Rate (as a percent) | 7.77% | |
Certificates of deposit January 8, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,550 | |
Rate (as a percent) | 7.78% | |
Certificates of deposit March 3, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 13 | |
Rate (as a percent) | 1.75% | |
Certificates of deposit May 15, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 13 | |
Rate (as a percent) | 1.75% | |
Certificate of deposit January 2, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 8 | |
Rate (as a percent) | 8.14% | |
Certificate of deposit January 3, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 15 | |
Rate (as a percent) | 8.14% | |
Certificate of deposit January 4, 2019 - One | ||
Financial liabilities | ||
Financial liabilities | $ 28 | |
Rate (as a percent) | 8.14% | |
Certificate of deposit January 7, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 28 | |
Rate (as a percent) | 8.15% | |
Certificate of deposit January 8, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 23 | |
Rate (as a percent) | 8.14% | |
Certificate of deposit January 9, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 26 | |
Rate (as a percent) | 8.16% | |
Certificate of deposit January 10, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 21 | |
Rate (as a percent) | 8.16% | |
Certificate of deposit January 11, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 16 | |
Rate (as a percent) | 8.15% | |
Certificate of deposit January 14, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 22 | |
Rate (as a percent) | 8.15% | |
Certificate of deposit January 15, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 19 | |
Rate (as a percent) | 8.15% | |
Certificate of deposit January 16, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 12 | |
Rate (as a percent) | 8.17% | |
Certificate of deposit January 17, 2019 - One | ||
Financial liabilities | ||
Financial liabilities | $ 20 | |
Rate (as a percent) | 8.17% | |
Certificate of deposit January 17, 2019 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 1,050 | |
Rate (as a percent) | 8.12% | |
Certificate of deposit January 18, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 20 | |
Rate (as a percent) | 8.18% | |
Certificate of deposit January 21, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 23 | |
Rate (as a percent) | 8.36% | |
Certificate of deposit January 22, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 21 | |
Rate (as a percent) | 8.38% | |
Certificate of deposit January 23, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 16 | |
Rate (as a percent) | 8.38% | |
Certificate of deposit January 24, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 28 | |
Rate (as a percent) | 8.38% | |
Certificate of deposit January 25, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 19 | |
Rate (as a percent) | 8.39% | |
Certificate of deposit January 28, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 34 | |
Rate (as a percent) | 8.40% | |
Certificate of deposit January 29, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 24 | |
Rate (as a percent) | 8.13% | |
Certificate of deposit January 30, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 39 | |
Rate (as a percent) | 8.14% | |
Certificate of deposit January 31, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 65 | |
Rate (as a percent) | 8.14% | |
Certificate of deposit February 8, 2019 - One | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Rate (as a percent) | 8.12% | |
Certificate of deposit February 11, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 60 | |
Rate (as a percent) | 8.38% | |
Certificate of deposit February 15, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 900 | |
Rate (as a percent) | 8.12% | |
Certificate of deposit February 8, 2019 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Rate (as a percent) | 8.38% | |
Certificate of deposit February 25, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 700 | |
Rate (as a percent) | 8.12% | |
Certificate of deposit March 15, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 1,500 | |
Rate (as a percent) | 8.12% | |
Certificate of deposit March 26, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 1,500 | |
Rate (as a percent) | 8.44% | |
Certificate of deposit February 1, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 550 | |
Rate (as a percent) | 8.34% | |
Certificate of deposit May 16, 2019 - One | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Rate (as a percent) | 8.12% | |
Certificate of deposit June 13, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 800 | |
Rate (as a percent) | 8.12% | |
Certificate of deposit June 20, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 9 | |
Rate (as a percent) | 8.89% | |
Certificate of deposit June 21, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 12 | |
Rate (as a percent) | 8.89% | |
Certificate of deposit June 24, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 26 | |
Rate (as a percent) | 8.90% | |
Certificate of deposit June 25, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 8 | |
Rate (as a percent) | 8.89% | |
Certificate of deposit June 26, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 23 | |
Rate (as a percent) | 8.91% | |
Certificate of deposit June 27, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 40 | |
Rate (as a percent) | 8.91% | |
Certificate of deposit June 28, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 40 | |
Rate (as a percent) | 8.90% | |
Certificate of deposit July 1, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 80 | |
Rate (as a percent) | 8.90% | |
Certificate of deposit July 2, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 23 | |
Rate (as a percent) | 8.90% | |
Certificate of deposit July 3, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 36 | |
Rate (as a percent) | 8.92% | |
Certificate of deposit July 4, 2019 - One | ||
Financial liabilities | ||
Financial liabilities | $ 43 | |
Rate (as a percent) | 8.92% | |
Certificate of deposit July 4, 2019 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 1,200 | |
Rate (as a percent) | 8.12% | |
Certificate of deposit July 5, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 43 | |
Rate (as a percent) | 8.93% | |
Certificate of deposit July 8, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 51 | |
Rate (as a percent) | 9.11% | |
Certificate of deposit July 9, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 57 | |
Rate (as a percent) | 9.13% | |
Certificate of deposit July 10, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 66 | |
Rate (as a percent) | 9.13% | |
Certificate of deposit July 11, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 48 | |
Rate (as a percent) | 9.13% | |
Certificate of deposit July 12, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 36 | |
Rate (as a percent) | 9.14% | |
Certificate of deposit July 15, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 52 | |
Rate (as a percent) | 9.15% | |
Certificate of deposit July 16, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 41 | |
Rate (as a percent) | 8.88% | |
Certificate of deposit July 17, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 33 | |
Rate (as a percent) | 8.88% | |
Certificate of deposit July 18, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 43 | |
Rate (as a percent) | 8.89% | |
Certificate of deposit July 19, 2019 - One | ||
Financial liabilities | ||
Financial liabilities | $ 46 | |
Rate (as a percent) | 8.89% | |
Certificate of deposit July 19, 2019 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Rate (as a percent) | 8.12% | |
Certificate of deposit July 22, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 39 | |
Rate (as a percent) | 8.90% | |
Certificate of deposit July 23, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 28 | |
Rate (as a percent) | 8.89% | |
Certificate of deposit July 24, 2019 - One | ||
Financial liabilities | ||
Financial liabilities | $ 41 | |
Rate (as a percent) | 8.91% | |
Certificate of deposit July 24, 2019 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 500 | |
Rate (as a percent) | 8.12% | |
Certificate of deposit July 25, 2019 - One | ||
Financial liabilities | ||
Financial liabilities | $ 40 | |
Rate (as a percent) | 8.91% | |
Certificate of deposit July 26, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 34 | |
Rate (as a percent) | 8.90% | |
Certificate of deposit July 29, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 43 | |
Rate (as a percent) | 8.90% | |
Certificate of deposit July 25, 2019 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 50 | |
Rate (as a percent) | 8.36% | |
Certificate of deposit July 30, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 66 | |
Rate (as a percent) | 8.90% | |
Certificate of deposit July 31, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 92 | |
Rate (as a percent) | 8.92% | |
Certificate of deposit August 1, 2019 - One | ||
Financial liabilities | ||
Financial liabilities | $ 32 | |
Rate (as a percent) | 8.92% | |
Certificate of deposit August 1, 2019 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 200 | |
Rate (as a percent) | 8.40% | |
Certificate of deposit August 2, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 18 | |
Rate (as a percent) | 8.93% | |
Certificate of deposit August 5, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 32 | |
Rate (as a percent) | 9.11% | |
Certificate of deposit August 6, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 20 | |
Rate (as a percent) | 9.13% | |
Certificate of deposit August 7, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 52 | |
Rate (as a percent) | 9.13% | |
Certificate of deposit August 8, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 71 | |
Rate (as a percent) | 9.13% | |
Certificate of deposit June 13, 2019 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 2,000 | |
Rate (as a percent) | 8.12% | |
Certificate of deposit August 13, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 1 | |
Rate (as a percent) | 8.88% | |
Certificate of deposit August 22, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 350 | |
Rate (as a percent) | 8.39% | |
Certificate of deposit August 28, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 600 | |
Rate (as a percent) | 8.12% | |
Certificate of deposit September 2, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 1,700 | |
Rate (as a percent) | 8.12% | |
Certificate of deposit September 25, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 500 | |
Rate (as a percent) | 8.40% | |
Certificate of deposit September 27, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 600 | |
Rate (as a percent) | 8.41% | |
Certificate of deposit January 4, 2019 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 1 | |
Rate (as a percent) | 0.98% | |
Certificate of deposit May 3, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 2 | |
Rate (as a percent) | 0.98% | |
Certificate of deposit November 8, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 1,100 | |
Rate (as a percent) | 8.12% | |
Certificate of deposit January 4, 2019 - Three | ||
Financial liabilities | ||
Financial liabilities | $ 112 | |
Rate (as a percent) | 2.00% | |
Certificate of deposit March 4, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 13 | |
Rate (as a percent) | 1.50% | |
Certificate of deposit May 16, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 13 | |
Rate (as a percent) | 1.51% | |
Certificate of deposit September 30, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 22 | |
Rate (as a percent) | 1.70% | |
Certificate of deposit November 20, 2019 - One | ||
Financial liabilities | ||
Financial liabilities | $ 33 | |
Rate (as a percent) | 1.75% | |
Certificate of deposit November 20, 2019 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 1 | |
Rate (as a percent) | 1.75% | |
Certificate of deposit November 20, 2019 - Three | ||
Financial liabilities | ||
Financial liabilities | $ 12 | |
Rate (as a percent) | 1.75% | |
Certificate of deposit November 20, 2019 - Four | ||
Financial liabilities | ||
Financial liabilities | $ 12 | |
Rate (as a percent) | 1.75% | |
Certificate of deposit November 29, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 12 | |
Rate (as a percent) | 1.75% | |
Certificate of deposit December 17, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 22 | |
Rate (as a percent) | 1.75% | |
Certificate of deposit December 24, 2019 - One | ||
Financial liabilities | ||
Financial liabilities | $ 105 | |
Rate (as a percent) | 1.75% | |
Certificate of deposit May 16, 2019 - Three | ||
Financial liabilities | ||
Financial liabilities | $ 4 | |
Rate (as a percent) | 1.65% | |
Certificate of deposit May 16, 2019 - Four | ||
Financial liabilities | ||
Financial liabilities | $ 4 | |
Rate (as a percent) | 1.65% | |
Certificate of deposit May 16, 2019 - Five | ||
Financial liabilities | ||
Financial liabilities | $ 4 | |
Rate (as a percent) | 1.65% | |
Certificate of deposit May 16, 2019 - Six | ||
Financial liabilities | ||
Financial liabilities | $ 4 | |
Rate (as a percent) | 1.65% | |
Certificate of deposit December 24, 2019 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 58 | |
Rate (as a percent) | 1.85% | |
Certificate of deposit December 24, 2019 - Three | ||
Financial liabilities | ||
Financial liabilities | $ 77 | |
Rate (as a percent) | 1.75% |
Marketable debt securities - Se
Marketable debt securities - Senior Unsecured Notes (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial liabilities | ||
Total financial liabilities | $ 1,299,114 | $ 1,259,588 |
Debt instruments | ||
Financial liabilities | ||
Total financial liabilities | 114,457 | 103,062 |
Senior Unsecured Notes | ||
Financial liabilities | ||
Financial liabilities | 19,482 | |
Accrued interest | 105 | 108 |
Total financial liabilities | 18,849 | $ 19,590 |
Rate (as a percent) | 4.125% | |
Senior Unsecured Notes November 9, 2022 | ||
Financial liabilities | ||
Financial liabilities | $ 18,744 | |
Rate (as a percent) | 4.125% |
Marketable debt securities - St
Marketable debt securities - Structured bank bonds (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial liabilities | ||
Total financial liabilities | $ 1,299,114 | $ 1,259,588 |
Debt instruments | ||
Financial liabilities | ||
Total financial liabilities | 114,457 | 103,062 |
Structured bank bonds | ||
Financial liabilities | ||
Financial liabilities | 4,797 | 5,371 |
Accrued interest | 5 | |
Total financial liabilities | 4,797 | 5,376 |
Structured bank bonds March 17, 2022 - One | ||
Financial liabilities | ||
Financial liabilities | 7 | |
Structured bank bonds March 17, 2022 - Two | ||
Financial liabilities | ||
Financial liabilities | 54 | |
Structured bank bonds March 26, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 56 | |
Rate (as a percent) | 9.50% | |
Structured bank bonds March 17, 2022 - Three | ||
Financial liabilities | ||
Financial liabilities | $ 6 | |
Structured bank bonds March 8, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 159 | |
Rate (as a percent) | 9.50% | |
Structured bank bonds March 17, 2022 - Four | ||
Financial liabilities | ||
Financial liabilities | $ 2 | |
Structured bank bonds February 23, 2021 | ||
Financial liabilities | ||
Financial liabilities | 46 | 40 |
Structured bank bonds May 24, 2021 | ||
Financial liabilities | ||
Financial liabilities | 30 | 55 |
Structured bank bonds March 16, 2021 | ||
Financial liabilities | ||
Financial liabilities | 6 | 5 |
Structured bank bonds November 9, 2020 - Two | ||
Financial liabilities | ||
Financial liabilities | 212 | 201 |
Structured bank bonds April 23, 2021 - One | ||
Financial liabilities | ||
Financial liabilities | 294 | 287 |
Structured bank bonds January 28, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 156 | |
Rate (as a percent) | 10.00% | |
Structured bank bonds October 26, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 441 | 430 |
Structured bank bonds October 23, 2020 | ||
Financial liabilities | ||
Financial liabilities | 773 | 742 |
Structured bank bonds November 5, 2020 | ||
Financial liabilities | ||
Financial liabilities | 9 | 8 |
Structured bank bonds June 26, 2020 - One | ||
Financial liabilities | ||
Financial liabilities | 114 | |
Structured bank bonds June 2, 2020 - Two | ||
Financial liabilities | ||
Financial liabilities | 276 | |
Structured bank bonds March 25, 2020 | ||
Financial liabilities | ||
Financial liabilities | 121 | |
Structured bank bonds March 23, 2020 | ||
Financial liabilities | ||
Financial liabilities | 137 | |
Structured bank bonds February 20, 2020 - Three | ||
Financial liabilities | ||
Financial liabilities | 13 | |
Structured bank bonds May 12, 2021 | ||
Financial liabilities | ||
Financial liabilities | 19 | 17 |
Structured bank bonds March 3, 2021 - Two | ||
Financial liabilities | ||
Financial liabilities | 5 | 5 |
Structured bank bonds March 3, 2021 - One | ||
Financial liabilities | ||
Financial liabilities | 24 | 23 |
Structured bank bonds December 14, 2020 | ||
Financial liabilities | ||
Financial liabilities | 180 | 154 |
Structured bank bonds November 23, 2020 | ||
Financial liabilities | ||
Financial liabilities | 115 | 118 |
Structured bank bonds September 25, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 66 | |
Rate (as a percent) | 2.50% | |
Structured bank bonds September 18, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 20 | |
Rate (as a percent) | 2.50% | |
Structured bank bonds June 26, 2020 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 196 | |
Rate (as a percent) | 4.00% | |
Structured bank bonds June 15, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 30 | |
Structured bank bonds March 27, 2020 - One | ||
Financial liabilities | ||
Financial liabilities | $ 19 | |
Rate (as a percent) | 5.00% | |
Structured bank bonds March 27, 2020 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 50 | |
Rate (as a percent) | 5.00% | |
Structured bank bonds February 20, 2020 - One | ||
Financial liabilities | ||
Financial liabilities | $ 11 | 16 |
Structured bank bonds September 1, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 81 | |
Rate (as a percent) | 2.50% | |
Structured bank bonds September 30, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 25 | |
Rate (as a percent) | 2.50% | |
Structured bank bonds January 29, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 40 | |
Rate (as a percent) | 12.00% | |
Structured bank bonds January 27, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 25 | |
Rate (as a percent) | 12.00% | |
Structured bank bonds January 24, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 24 | |
Rate (as a percent) | 10.00% | |
Structured bank bonds January 21, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 500 | |
Rate (as a percent) | 12.00% | |
Structured bank bonds January 17, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 105 | |
Rate (as a percent) | 13.00% | |
Structured bank bonds January 16, 2020 - One | ||
Financial liabilities | ||
Financial liabilities | $ 15 | |
Rate (as a percent) | 11.69% | |
Structured bank bonds January 16, 2020 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 114 | |
Rate (as a percent) | 12.23% | |
Structured bank bonds January 16, 2020 - Three | ||
Financial liabilities | ||
Financial liabilities | $ 19 | |
Rate (as a percent) | 13.00% | |
Structured bank bonds January 16, 2020 - Four | ||
Financial liabilities | ||
Financial liabilities | $ 10 | |
Rate (as a percent) | 11.61% | |
Structured bank bonds January 14, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 27 | |
Rate (as a percent) | 12.00% | |
Structured bank bonds January 10, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 12 | |
Rate (as a percent) | 14.50% | |
Structured bank bonds January 7, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 40 | |
Rate (as a percent) | 10.48% | |
Structured bank bonds January 3, 2020 - One | ||
Financial liabilities | ||
Financial liabilities | $ 57 | |
Rate (as a percent) | 3.17% | |
Structured bank bonds January 3, 2020 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 57 | |
Rate (as a percent) | 3.02% | |
Structured bank bonds October 15, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 139 | |
Rate (as a percent) | 9.54% | |
Structured bank bonds January 4, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 13 | |
Rate (as a percent) | 0.25% | |
Structured bank bonds January 14, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 32 | |
Rate (as a percent) | 0.25% | |
Structured bank bonds January 18, 2019 - One | ||
Financial liabilities | ||
Financial liabilities | $ 27 | |
Rate (as a percent) | 0.25% | |
Structured bank bonds January 9, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 10 | |
Rate (as a percent) | 11.00% | |
Structured bank bonds January 25, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 16 | |
Rate (as a percent) | 0.25% | |
Structured bank bonds January 8, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 40 | |
Structured bank bonds January 10, 2019 - One | ||
Financial liabilities | ||
Financial liabilities | $ 24 | |
Rate (as a percent) | 12.00% | |
Structured bank bonds January 10, 2019 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 25 | |
Rate (as a percent) | 12.00% | |
Structured bank bonds January 10, 2019 - Three | ||
Financial liabilities | ||
Financial liabilities | $ 60 | |
Structured bank bonds January 3, 2019 - One | ||
Financial liabilities | ||
Financial liabilities | $ 39 | |
Rate (as a percent) | 6.34% | |
Structured bank bonds January 3, 2019 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 70 | |
Rate (as a percent) | 12.23% | |
Structured bank bonds January 18, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 10 | |
Rate (as a percent) | 12.00% | |
Structured bank bonds January 11, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 59 | |
Rate (as a percent) | 5.81% | |
Structured bank bonds February 1, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 25 | |
Rate (as a percent) | 0.25% | |
Structured bank bonds February 5, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 15 | |
Rate (as a percent) | 11.00% | |
Structured bank bonds November 9, 2020 - One | ||
Financial liabilities | ||
Financial liabilities | $ 43 | |
Structured bank bonds November 7, 2019 | ||
Financial liabilities | ||
Financial liabilities | 19 | |
Structured bank bonds November 14, 2019 | ||
Financial liabilities | ||
Financial liabilities | 163 | |
Structured bank bonds February 14, 2019 | ||
Financial liabilities | ||
Financial liabilities | 11 | |
Structured bank bonds May 23, 2019 | ||
Financial liabilities | ||
Financial liabilities | 20 | |
Structured bank bonds March 27, 2019 - One | ||
Financial liabilities | ||
Financial liabilities | 11 | |
Structured bank bonds April 3, 2019 | ||
Financial liabilities | ||
Financial liabilities | 18 | |
Structured bank bonds April 26, 2019 - One | ||
Financial liabilities | ||
Financial liabilities | 111 | |
Structured bank bonds April 26, 2019 - Two | ||
Financial liabilities | ||
Financial liabilities | 49 | |
Structured bank bonds April 26, 2019 - Three | ||
Financial liabilities | ||
Financial liabilities | 6 | |
Structured bank bonds June 6, 2019 - One | ||
Financial liabilities | ||
Financial liabilities | 1 | |
Structured bank bonds June 6, 2019 - Two | ||
Financial liabilities | ||
Financial liabilities | 27 | |
Structured bank bonds June 6, 2019 - Three | ||
Financial liabilities | ||
Financial liabilities | 212 | |
Structured bank bonds June 6, 2019 - Four | ||
Financial liabilities | ||
Financial liabilities | 57 | |
Structured bank bonds September 4, 2019 | ||
Financial liabilities | ||
Financial liabilities | 99 | |
Structured bank bonds December 19, 2019 | ||
Financial liabilities | ||
Financial liabilities | 14 | |
Structured bank bonds October 3, 2019 | ||
Financial liabilities | ||
Financial liabilities | 21 | |
Structured bank bonds June 26, 2019 | ||
Financial liabilities | ||
Financial liabilities | 10 | |
Structured bank bonds September 25, 2019 | ||
Financial liabilities | ||
Financial liabilities | 91 | |
Structured bank bonds October 16, 2019 | ||
Financial liabilities | ||
Financial liabilities | 94 | |
Structured bank bonds February 21, 2019 | ||
Financial liabilities | ||
Financial liabilities | 117 | |
Structured bank bonds December 27, 2019 | ||
Financial liabilities | ||
Financial liabilities | 37 | |
Structured bank bonds February 20, 2020 - Two | ||
Financial liabilities | ||
Financial liabilities | 15 | |
Structured bank bonds March 5, 2019 | ||
Financial liabilities | ||
Financial liabilities | 19 | |
Structured bank bonds March 1, 2019 | ||
Financial liabilities | ||
Financial liabilities | 55 | |
Structured bank bonds March 27, 2019 - Two | ||
Financial liabilities | ||
Financial liabilities | 29 | |
Structured bank bonds June 2, 2020 | ||
Financial liabilities | ||
Financial liabilities | 263 | |
Structured bank bonds March 25, 2019 | ||
Financial liabilities | ||
Financial liabilities | 527 | |
Structured bank bonds November 22, 2019 | ||
Financial liabilities | ||
Financial liabilities | 68 | |
Structured bank bonds June 27, 2019 | ||
Financial liabilities | ||
Financial liabilities | 15 | |
Structured bank bonds June 24, 2019 | ||
Financial liabilities | ||
Financial liabilities | 117 | |
Structured bank bonds May 29, 2019 | ||
Financial liabilities | ||
Financial liabilities | 120 | |
Structured bank bonds July 11, 2019 | ||
Financial liabilities | ||
Financial liabilities | 10 | |
Structured bank bonds July 30, 2019 - One | ||
Financial liabilities | ||
Financial liabilities | 10 | |
Structured bank bonds July 30, 2019 - Two | ||
Financial liabilities | ||
Financial liabilities | 10 | |
Structured bank bonds May 17, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 177 |
Marketable debt securities - Pr
Marketable debt securities - Promissory notes (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial liabilities | ||
Total financial liabilities | $ 1,299,114 | $ 1,259,588 |
Debt instruments | ||
Financial liabilities | ||
Total financial liabilities | 114,457 | 103,062 |
Promissory notes | ||
Financial liabilities | ||
Financial liabilities | 22,891 | 35,648 |
Accrued interest | 423 | 183 |
Total financial liabilities | 23,314 | 35,831 |
Promissory notes November 30, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 500 | |
Rate (as a percent) | 7.25% | |
Promissory notes October 5, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 2,000 | |
Rate (as a percent) | 7.23% | |
Promissory notes April 15, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,500 | |
Rate (as a percent) | 8.42% | |
Promissory notes April 13, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,500 | |
Rate (as a percent) | 8.42% | |
Promissory notes March 20, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Rate (as a percent) | 8.45% | |
Promissory notes March 19, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 921 | |
Rate (as a percent) | 8.45% | |
Promissory notes March 17, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 500 | |
Rate (as a percent) | 8.45% | |
Promissory notes March 9, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 500 | |
Rate (as a percent) | 8.55% | |
Promissory notes February 17, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 200 | |
Rate (as a percent) | 7.00% | |
Promissory notes January 17, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 2,700 | |
Rate (as a percent) | 7.25% | |
Promissory notes January 6, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 70 | |
Rate (as a percent) | 7.25% | |
Promissory notes January 3, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 11,500 | |
Rate (as a percent) | 7.25% | |
Promissory notes August 8, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 1,385 | |
Rate (as a percent) | 8.33% | |
Promissory notes August 21, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 461 | |
Rate (as a percent) | 8.38% | |
Promissory notes August 20, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 1,291 | |
Rate (as a percent) | 8.38% | |
Promissory notes September 6, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 646 | |
Rate (as a percent) | 8.35% | |
Promissory notes September 17, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 830 | |
Rate (as a percent) | 8.39% | |
Promissory notes April 9, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 861 | |
Rate (as a percent) | 8.22% | |
Promissory notes May 31, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 2,109 | |
Rate (as a percent) | 8.66% | |
Promissory notes January 3, 2019 - One | ||
Financial liabilities | ||
Financial liabilities | $ 3,500 | |
Rate (as a percent) | 8.25% | |
Promissory notes January 3, 2019 -Two | ||
Financial liabilities | ||
Financial liabilities | $ 3,500 | |
Rate (as a percent) | 8.25% | |
Promissory notes January 7, 2019 - One | ||
Financial liabilities | ||
Financial liabilities | $ 2,990 | |
Rate (as a percent) | 8.25% | |
Promissory notes January 7, 2019 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 2,990 | |
Rate (as a percent) | 8.25% | |
Promissory notes January 7, 2019 - Three | ||
Financial liabilities | ||
Financial liabilities | $ 2,519 | |
Rate (as a percent) | 8.25% | |
Promissory notes January 24, 2019 - One | ||
Financial liabilities | ||
Financial liabilities | $ 3,477 | |
Rate (as a percent) | 8.67% | |
Promissory notes January 24, 2019 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 3,477 | |
Rate (as a percent) | 8.67% | |
Promissory notes January 24, 2019 - Three | ||
Financial liabilities | ||
Financial liabilities | $ 3,047 | |
Rate (as a percent) | 8.67% | |
Promissory notes January 30, 2019 | ||
Financial liabilities | ||
Financial liabilities | $ 2,500 | |
Rate (as a percent) | 8.25% | |
Promissory notes January 7, 2019 - Four | ||
Financial liabilities | ||
Financial liabilities | $ 65 | |
Rate (as a percent) | 8.20% |
Marketable debt securities - Un
Marketable debt securities - Unsecured bonds (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial liabilities | ||
Total financial liabilities | $ 1,299,114 | $ 1,259,588 |
Debt instruments | ||
Financial liabilities | ||
Total financial liabilities | 114,457 | 103,062 |
Unsecured bonds | ||
Financial liabilities | ||
Financial liabilities | 29,385 | 19,645 |
Accrued interest | 289 | 72 |
Total financial liabilities | 29,674 | 19,717 |
Unsecured bonds March 30, 2026 | ||
Financial liabilities | ||
Financial liabilities | $ 7,150 | |
Rate (as a percent) | 8.95% | |
Unsecured bonds September 1, 2026 | ||
Financial liabilities | ||
Financial liabilities | $ 3,000 | $ 3,000 |
Rate (as a percent) | 7.19% | 7.19% |
Unsecured bonds April 4, 2022 | ||
Financial liabilities | ||
Financial liabilities | $ 2,850 | |
Unsecured bonds April 4, 2022 | TIIE | ||
Financial liabilities | ||
Spread on rate (as a percent) | 0.10% | |
Unsecured bonds May 6, 2022 | ||
Financial liabilities | ||
Financial liabilities | $ 4,461 | $ 4,461 |
Unsecured bonds May 6, 2022 | TIIE | ||
Financial liabilities | ||
Spread on rate (as a percent) | 0.15% | 0.15% |
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% | 8.91% |
Unsecured bonds February 10, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 6,224 | $ 6,484 |
Unsecured bonds February 10, 2020 | Libor | ||
Financial liabilities | ||
Spread on rate (as a percent) | 0.20% | 0.20% |
Marketable debt securities - Mo
Marketable debt securities - Mortgage-backed bonds (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial liabilities | ||
Total financial liabilities | $ 1,299,114 | $ 1,259,588 |
Debt instruments | ||
Financial liabilities | ||
Total financial liabilities | $ 114,457 | 103,062 |
Mortgage-backed bonds | ||
Financial liabilities | ||
Financial liabilities | 115 | |
Total financial liabilities | 115 | |
Mortgage-backed bonds May 25, 2032 - One | ||
Financial liabilities | ||
Financial liabilities | $ 100 | |
Rate (as a percent) | 5.00% | |
Mortgage-backed bonds May 25, 2032 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 15 | |
Rate (as a percent) | 6.40% |
Subordinated Liabilities - Acti
Subordinated Liabilities - Activity (Details) $ in Thousands | Oct. 01, 2018 | Sep. 26, 2018MXN ($) | Dec. 27, 2013 | Dec. 31, 2019USD ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018MXN ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017MXN ($) |
Financial liabilities | |||||||||
Outstanding issue amount | $ 1,299,114,000 | $ 1,259,588,000 | |||||||
Subordinated liabilities | Financial liabilities at amortized cost | |||||||||
Financial liabilities | |||||||||
Outstanding issue amount | $ 1,816,000,000 | 34,267,000 | $ 1,894,000,000 | 37,228,000 | $ 1,825,000,000 | $ 35,885,000 | |||
Tier II Subordinated Capital Notes | Financial liabilities at amortized cost | |||||||||
Financial liabilities | |||||||||
Outstanding issue amount | $ 1,222,907 | 1,546,000 | 26,054,000 | ||||||
Annual interest rate (as percent) | 5.95% | 5.95% | 5.95% | ||||||
Subordinated Additional Tier I Capital Notes | Financial liabilities at amortized cost | |||||||||
Financial liabilities | |||||||||
Outstanding issue amount | $ 500,000,000 | 9,420,000 | 9,809,000 | $ 9,831,000 | |||||
Annual interest rate (as percent) | 8.50% | ||||||||
Tier II Subordinated Notes | Financial liabilities at amortized cost | |||||||||
Financial liabilities | |||||||||
Outstanding issue amount | $ 1,300,000,000 | $ 24,847,000 | $ 25,873,000 | ||||||
Annual interest rate (as percent) | 5.95% |
Subordinated Liabilities - Chan
Subordinated Liabilities - Changes (Details) $ in Millions | Oct. 01, 2018USD ($) | Dec. 29, 2016USD ($) | Dec. 27, 2013USD ($) | Dec. 31, 2019USD ($)$ / $item | Dec. 31, 2019MXN ($)$ / $item | Dec. 31, 2018USD ($)$ / $item | Dec. 31, 2018MXN ($)$ / $item |
Financial liabilities | |||||||
Exchange rate per one USD as of December 31, | item | 18.8642 | 18.8642 | 19.6512 | 19.6512 | |||
Financial liabilities at beginning of period | $ 1,259,588 | ||||||
Financial liabilities at end of period | $ 1,299,114 | $ 1,259,588 | |||||
Subordinated liabilities | Financial liabilities at amortized cost | |||||||
Financial liabilities | |||||||
Exchange rate per one USD as of December 31, | $ / $ | 18.8642 | 18.8642 | 19.6512 | 19.6512 | |||
Financial liabilities at beginning of period | $ 1,894,000,000 | $ 37,228 | $ 1,825,000,000 | $ 35,885 | |||
Issues | 1,300,000,000 | ||||||
Redemptions | (77,000,000) | (1,223,000,000) | |||||
Transaction costs and accrued interest | (1,000,000) | (8,000,000) | |||||
Financial liabilities at end of period | 1,816,000,000 | 34,267 | 1,894,000,000 | 37,228 | |||
Tier II Subordinated Capital Notes | Financial liabilities at amortized cost | |||||||
Financial liabilities | |||||||
Financial liabilities at beginning of period | 1,546 | 26,054 | |||||
Issues | $ 1,300,000,000 | $ 1,300,000,000 | |||||
Redemptions | $ (1,223,000,000) | ||||||
Financial liabilities at end of period | 1,546 | ||||||
Subordinated Additional Tier I Capital Notes | Financial liabilities at amortized cost | |||||||
Financial liabilities | |||||||
Financial liabilities at beginning of period | 9,809 | 9,831 | |||||
Issues | $ 500,000,000 | ||||||
Financial liabilities at end of period | $ 500,000,000 | $ 9,420 | $ 9,809 |
Subordinated Liabilities - Othe
Subordinated Liabilities - Other (Details) $ / shares in Units, $ in Millions | Oct. 01, 2018USD ($)$ / sharesshares | Sep. 26, 2018 | Dec. 29, 2016USD ($) | Dec. 27, 2013USD ($)$ / sharesshares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 29, 2016$ / shares |
Subordinated Additional Tier I Capital Notes | |||||||
Financial liabilities | |||||||
Period term resets | 5 years | ||||||
Financial liabilities at amortized cost | Subordinated liabilities | |||||||
Financial liabilities | |||||||
Amount of debt securities issued | $ 1,300 | ||||||
Percentage of existing holders tendered the cash offer | 94.07% | ||||||
Repayment of subordinated debt | $ 77 | 1,223 | |||||
Financial liabilities at amortized cost | Tier II Subordinated Capital Notes | |||||||
Financial liabilities | |||||||
Amount of debt securities issued | $ 1,300 | $ 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 | ||||||
Percentage of existing holders tendered the cash offer | 94.07% | ||||||
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 | ||||||
Repayment of subordinated debt | $ 1,223 | ||||||
Financial liabilities at amortized cost | 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 | ||||||
Period term resets | 5 years | ||||||
Financial liabilities at amortized cost | Tier II Subordinated 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 | ||||||
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 Liabilities - Reco
Subordinated Liabilities - Reconciliation of liabilities arising from financing activities (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | |
Financial liabilities | |||||
Financial liabilities at beginning of period | $ 1,259,588 | ||||
Cash flows | 12,407 | $ 13,232 | $ 9,545 | ||
Financial liabilities at end of period | 1,299,114 | 1,259,588 | |||
Payment of interest | 808 | 804 | 635 | ||
Subordinated liabilities | Financial liabilities at amortized cost | |||||
Financial liabilities | |||||
Financial liabilities at beginning of period | $ 1,894,000,000 | 37,228 | $ 1,825,000,000 | 35,885 | |
Cash flows | (3,034) | (232) | |||
Accrued interest | 1,501 | 1,201 | |||
Transaction costs | 18 | 87 | |||
Foreign exchange movements | (1,446) | 287 | |||
Financial liabilities at end of period | 1,816,000,000 | 34,267 | $ 1,894,000,000 | 37,228 | 35,885 |
Tier II Subordinated Capital Notes | Financial liabilities at amortized cost | |||||
Financial liabilities | |||||
Financial liabilities at beginning of period | 1,546 | 26,054 | |||
Cash flows | (1,521) | (24,481) | |||
Accrued interest | 6 | 826 | |||
Transaction costs | 7 | 151 | |||
Foreign exchange movements | (38) | (1,004) | |||
Financial liabilities at end of period | 1,546 | 26,054 | |||
Subordinated Additional Tier I Capital Notes | Financial liabilities at amortized cost | |||||
Financial liabilities | |||||
Financial liabilities at beginning of period | 9,809 | 9,831 | |||
Transaction costs | 4 | (16) | |||
Foreign exchange movements | (393) | (6) | |||
Financial liabilities at end of period | 500,000,000 | 9,420 | 9,809 | $ 9,831 | |
Payment of interest | 808 | 804 | |||
Tier II Subordinated Notes | Financial liabilities at amortized cost | |||||
Financial liabilities | |||||
Financial liabilities at beginning of period | 25,873 | ||||
Cash flows | (1,513) | 24,249 | |||
Accrued interest | 1,495 | 375 | |||
Transaction costs | 7 | (48) | |||
Foreign exchange movements | (1,015) | 1,297 | |||
Financial liabilities at end of period | $ 1,300,000,000 | $ 24,847 | $ 25,873 |
Other financial liabilities - B
Other financial liabilities - Breakdown and Unsettled (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other financial liabilities | ||
Total other financial liabilities | $ 864,266 | $ 890,284 |
Other financial liabilities | ||
Other financial liabilities | ||
Trade payables | 1,451 | 2,277 |
Tax payables | 1,160 | 1,187 |
Financial transactions pending settlement | 9,267 | 5,061 |
Other financial liabilities | 3,886 | 5,281 |
Total other financial liabilities | 15,764 | 13,806 |
Mexican government securities | Other financial liabilities | ||
Other financial liabilities | ||
Financial transactions pending settlement | 8,059 | 4,827 |
Mexican Bank Saving Protection Bonds (BPATs) | Other financial liabilities | ||
Other financial liabilities | ||
Financial transactions pending settlement | 1,003 | 201 |
Equity instruments | Other financial liabilities | ||
Other financial liabilities | ||
Financial transactions pending settlement | $ 205 | 1 |
Other financial instruments | Other financial liabilities | ||
Other financial liabilities | ||
Financial transactions pending settlement | $ 32 |
Other financial liabilities - O
Other financial liabilities - Other (Details) - Other financial liabilities - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial liabilities | ||
Retentions related to loans | $ 1,524 | $ 1,000 |
Other payable account | 2,362 | 4,281 |
Other financial liabilities | $ 3,886 | $ 5,281 |
Provisions - Summary (Details)
Provisions - Summary (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Jan. 02, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Provisions | |||||
Provisions | $ 9,104 | $ 6,800 | $ 6,730 | $ 7,202 | |
Provision for pensions and other employment defined benefit obligations | |||||
Provisions | |||||
Provisions | 6,406 | 4,370 | 3,860 | 3,972 | |
Provision for taxes and other legal contingencies | |||||
Provisions | |||||
Provisions | 1,558 | 1,516 | 1,072 | 1,306 | |
Provisions for off-balance sheet risk | |||||
Provisions | |||||
Provisions | 1,075 | $ 852 | 852 | 1,032 | 874 |
Other provisions member | |||||
Provisions | |||||
Provisions | $ 65 | $ 62 | $ 766 | $ 1,050 |
Provisions - Changes (Details)
Provisions - Changes (Details) - MXN ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 02, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Provisions | |||||||
Provisions | $ 9,104 | $ 6,800 | $ 6,730 | $ 6,800 | $ 6,730 | $ 7,202 | |
Additions charged (credited) to net income: | |||||||
Adjustments on initial adoption of IFRS 9 | (32) | ||||||
Provisions, as restated | 6,800 | 6,698 | 7,202 | ||||
Interest expense and similar charges | 415 | 359 | 332 | ||||
Personnel expenses - Defined Benefit Plan | 147 | 157 | 146 | ||||
Personnel expenses - Defined Contribution Plan | 410 | 373 | 330 | ||||
Other | 257 | 129 | 51 | ||||
Actuarial (gains)/losses recognized in the year in other comprehensive income | 1,673 | (260) | (666) | ||||
Period provisions | 581 | 433 | 386 | ||||
Contributions from the employer | 118 | 246 | 225 | ||||
Payments to pensioners and pre-retirees with a charge to internal provisions | (348) | (234) | (191) | ||||
Other payments | (284) | (746) | |||||
Payments to Defined Contribution Plan | (947) | (347) | (330) | ||||
Recognition of defined benefit obligations from acquisition of Santander Tecnologia Mexico | 95 | ||||||
Transfer, exchange differences and other changes | (2) | (565) | (9) | ||||
Balances at end of year | 9,104 | 6,800 | 6,730 | ||||
Provision for pensions and other employment defined benefit obligations | |||||||
Provisions | |||||||
Provisions | 6,406 | 4,370 | 3,860 | 4,370 | 3,860 | 3,972 | |
Additions charged (credited) to net income: | |||||||
Provisions, as restated | 4,370 | 3,860 | 3,972 | ||||
Interest expense and similar charges | 415 | 359 | 332 | ||||
Personnel expenses - Defined Benefit Plan | 147 | 157 | 146 | ||||
Personnel expenses - Defined Contribution Plan | 410 | 373 | 330 | ||||
Other | 257 | 129 | 51 | ||||
Actuarial (gains)/losses recognized in the year in other comprehensive income | 1,673 | (260) | (666) | ||||
Contributions from the employer | 118 | 246 | 225 | ||||
Payments to pensioners and pre-retirees with a charge to internal provisions | (348) | (234) | (191) | ||||
Payments to Defined Contribution Plan | (636) | (347) | (330) | ||||
Recognition of defined benefit obligations from acquisition of Santander Tecnologia Mexico | 95 | ||||||
Transfer, exchange differences and other changes | (8) | (9) | |||||
Balances at end of year | 6,406 | 4,370 | 3,860 | ||||
Provision for taxes and other legal contingencies | |||||||
Provisions | |||||||
Provisions | 1,558 | 1,516 | 1,072 | 1,516 | 1,072 | 1,306 | |
Additions charged (credited) to net income: | |||||||
Provisions, as restated | 1,516 | 1,072 | 1,306 | ||||
Period provisions | 353 | 576 | 197 | ||||
Other payments | (284) | (431) | |||||
Payments to Defined Contribution Plan | (311) | ||||||
Transfer, exchange differences and other changes | 152 | ||||||
Balances at end of year | 1,558 | 1,516 | 1,072 | ||||
Provisions for off-balance sheet risk | |||||||
Provisions | |||||||
Provisions | 1,075 | 852 | 1,032 | $ 852 | 852 | 1,032 | 874 |
Additions charged (credited) to net income: | |||||||
Adjustments on initial adoption of IFRS 9 | (32) | ||||||
Provisions, as restated | 852 | 1,000 | 874 | ||||
Period provisions | 223 | (148) | 158 | ||||
Balances at end of year | 1,075 | 852 | 1,032 | ||||
Other provisions member | |||||||
Provisions | |||||||
Provisions | 65 | 62 | 766 | 62 | 766 | 1,050 | |
Additions charged (credited) to net income: | |||||||
Provisions, as restated | $ 62 | $ 766 | $ 1,050 | ||||
Period provisions | 5 | 5 | 31 | ||||
Other payments | (315) | ||||||
Transfer, exchange differences and other changes | (2) | (709) | |||||
Balances at end of year | 65 | 62 | 766 | ||||
Other tax issues, Derivative transactions | |||||||
Additions charged (credited) to net income: | |||||||
Other payments | $ 3 | $ (1) | $ (5) |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Benefits | |||||
Personnel expenses - Defined Contribution Plan | $ 410 | $ 373 | $ 330 | ||
Provisions | 9,104 | 6,800 | 6,730 | $ 7,202 | |
Defined benefit plans | |||||
Employee Benefits | |||||
Plan assets | $ 2,068 | $ 2,196 | |||
Percentage of employees enrolled under defined pension plan | 0.80% | 1.00% | |||
Provisions | $ 6,328 | $ 4,322 | |||
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 | $ 6,406 | 4,370 | 3,860 | $ 3,972 | |
Defined benefit plans | |||||
Employee Benefits | |||||
Provisions | $ 6,328 | 4,322 | |||
Defined contribution plan | |||||
Employee Benefits | |||||
Retirement age of employees | 65 years | ||||
Personnel expenses - Defined Contribution Plan | $ 226 | $ 373 | $ 330 | ||
Percentage of employees enrolled under defined contribution plan included in medical coverage plan | 83.00% | 62.00% | |||
Provisions | $ 78 | $ 48 |
Provisions - Provisions for p_2
Provisions - Provisions for pensions and similar obligations - Actuarial assumptions (Details) - Defined benefit plans | Dec. 31, 2019 | Dec. 31, 2018 |
Actuarial assumptions | ||
Annual discount rate | 7.30% | 9.50% |
Expected return on plan assets | 7.30% | 9.50% |
Cumulative annual INPC growth | 3.50% | 3.50% |
Annual salary increase rate | 4.50% | 4.50% |
Annual minimum salary increase rate | 4.00% | 3.50% |
Medical cost trend rates | 5.00% | 5.00% |
Provisions - Funding status (De
Provisions - Funding status (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined benefit plans | ||
Defined benefit obligations | ||
Present value of the obligations | $ 8,396 | $ 6,518 |
Less: Fair value of plan assets | (2,068) | (2,196) |
Provisions - Provisions for pensions | 6,328 | 4,322 |
Of which: Internal provisions for pensions | 6,328 | 4,322 |
Pension plan | ||
Defined benefit obligations | ||
Present value of the obligations | 2,567 | 2,032 |
Post-employment benefits | ||
Defined benefit obligations | ||
Present value of the obligations | 5,127 | 3,644 |
Other | ||
Defined benefit obligations | ||
Present value of the obligations | $ 702 | $ 842 |
Provisions - Amounts recognized
Provisions - Amounts recognized (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amounts recognized in the consolidated income statements in relation to the aforementioned defined benefit obligations | |||
Current service cost | $ 147 | $ 157 | $ 146 |
Defined benefit plans | |||
Amounts recognized in the consolidated income statements in relation to the aforementioned defined benefit obligations | |||
Current service cost | 147 | 157 | 146 |
Interest cost (net) | 415 | 359 | 332 |
Other | 257 | 129 | 51 |
Total defined benefit expenses recognized in the consolidated income statements | $ 819 | $ 645 | $ 529 |
Provisions - Present Value of O
Provisions - Present Value of Obligations (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined benefit obligations | |||
Current service cost | $ 147 | $ 157 | $ 146 |
Recognition of defined benefit obligations from acquisition of Santander Tecnologia Mexico | 95 | ||
Duration of defined benefit obligation | 10 years 9 months 15 days | ||
Present value of defined benefit obligation | |||
Defined benefit obligations | |||
Present value of the obligations at beginning of year | $ 6,518 | 6,731 | |
Current service cost | 147 | 157 | |
Interest cost | 585 | 592 | |
Benefits paid | (983) | (735) | |
Actuarial (gains)/losses | 2,129 | (321) | |
Recognition of defined benefit obligations from acquisition of Santander Tecnologia Mexico | 95 | ||
Other | (1) | ||
Present value of the obligations at end of year | $ 8,396 | $ 6,518 | $ 6,731 |
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, 2019 | Dec. 31, 2018 | |
Fair value of plan assets | ||
Fair value of plan assets at beginning of year | $ 2,196 | $ 2,901 |
Actual return on plan assets | 347 | 43 |
Transfer of funds to defined contribution plan | (346) | (246) |
Benefits paid | (129) | (502) |
Fair value of plan assets at end of year | $ 2,068 | $ 2,196 |
Equity instruments. | ||
Plan assets | ||
Plan assets as a percentage of total plan assets | 34.00% | 33.00% |
Cash and debt instruments | ||
Plan assets | ||
Plan assets as a percentage of total plan assets | 66.00% | 67.00% |
Provisions - Sensitivity analys
Provisions - Sensitivity analysis (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019MXN ($) | |
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 | $ 383 |
Increase or decrease on obligations if increase in actuarial assumption | $ 421 |
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 | $ 227 |
Increase or decrease on obligations if increase in actuarial assumption | $ 247 |
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 increase in actuarial assumption | $ 13 |
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 | $ 8 |
Increase or decrease on obligations if increase in actuarial assumption | 8 |
Mortality | |
Disclosure of net defined benefit liability (asset) [line items] | |
Increase or decrease on obligations if decrease in actuarial assumption | 90 |
Increase or decrease on obligations if increase in actuarial assumption | $ 87 |
Increase in mortality (years) | 2 years |
Decrease in mortality (years) | 2 years |
Provisions - Other disclosures
Provisions - Other disclosures (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Provision for lifetime payment | ||
Provisions | ||
Provision for projected benefit obligation | $ 746 | $ 826 |
Provisions - Provision for tax
Provisions - Provision for tax and legal matters (Details) - MXN ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Provisions | ||||
Provisions | $ 9,104 | $ 6,800 | $ 6,730 | $ 7,202 |
Other payments | 284 | 746 | ||
Amount paid to external lawyers | 294 | 284 | ||
Provision for taxes and other legal contingencies | ||||
Provisions | ||||
Provisions | 1,558 | 1,516 | 1,072 | $ 1,306 |
Other payments | 284 | 431 | ||
Provision for various tax claims | ||||
Provisions | ||||
Provisions | 67 | 50 | ||
Other tax issues, Derivative transactions | ||||
Provisions | ||||
Other payments | (3) | 1 | $ 5 | |
Non-tax-related proceedings | ||||
Provisions | ||||
Provisions | $ 1,491 | $ 1,466 |
Provisions - Provision for off-
Provisions - Provision for off-balance-sheet risk (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Jan. 02, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Provisions | |||||
Provisions | $ 9,104 | $ 6,800 | $ 6,730 | $ 7,202 | |
Provisions for off-balance sheet risk | |||||
Provisions | |||||
Provisions | 1,075 | $ 852 | 852 | $ 1,032 | $ 874 |
Available lines of credit cards and non-revolving consumer loans | Provisions for off-balance sheet risk | |||||
Provisions | |||||
Provisions | 965 | 718 | |||
Guarantees and loan commitments of commercial and public sector loans | Provisions for off-balance sheet risk | |||||
Provisions | |||||
Provisions | $ 110 | $ 134 |
Provisions - Provision for of_2
Provisions - Provision for off-balance-sheet risk by stages (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Jan. 02, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of provision matrix [line items] | |||||
Provisions | $ 9,104 | $ 6,800 | $ 6,730 | $ 7,202 | |
Provisions for off-balance sheet risk | |||||
Disclosure of provision matrix [line items] | |||||
Provisions | 1,075 | $ 852 | 852 | $ 1,032 | $ 874 |
Provisions for off-balance sheet risk | Stage 1 | |||||
Disclosure of provision matrix [line items] | |||||
Provisions | 916 | 705 | |||
Provisions for off-balance sheet risk | Stage 2 | |||||
Disclosure of provision matrix [line items] | |||||
Provisions | 144 | 131 | |||
Provisions for off-balance sheet risk | Stage 3 | |||||
Disclosure of provision matrix [line items] | |||||
Provisions | 15 | $ 16 | |||
Available lines of credit cards and non-revolving consumer loans | Provisions for off-balance sheet risk | |||||
Disclosure of provision matrix [line items] | |||||
Provisions | 965 | $ 718 | |||
Available lines of credit cards and non-revolving consumer loans | Provisions for off-balance sheet risk | Stage 1 | |||||
Disclosure of provision matrix [line items] | |||||
Provisions | 859 | ||||
Available lines of credit cards and non-revolving consumer loans | Provisions for off-balance sheet risk | Stage 2 | |||||
Disclosure of provision matrix [line items] | |||||
Provisions | 91 | ||||
Available lines of credit cards and non-revolving consumer loans | Provisions for off-balance sheet risk | Stage 3 | |||||
Disclosure of provision matrix [line items] | |||||
Provisions | 15 | ||||
Guarantees, documentary credits and loan commitments of commercial loans (SMEs) | Provisions for off-balance sheet risk | |||||
Disclosure of provision matrix [line items] | |||||
Provisions | 110 | ||||
Guarantees, documentary credits and loan commitments of commercial loans (SMEs) | Provisions for off-balance sheet risk | Stage 1 | |||||
Disclosure of provision matrix [line items] | |||||
Provisions | 57 | ||||
Guarantees, documentary credits and loan commitments of commercial loans (SMEs) | Provisions for off-balance sheet risk | Stage 2 | |||||
Disclosure of provision matrix [line items] | |||||
Provisions | $ 53 |
Provisions - Provision for off
Provisions - Provision for off balance sheet risk transfer between stages (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of provision matrix [line items] | |||
Balances at beginning of year | $ 6,800 | $ 6,730 | $ 7,202 |
Balances at end of year | 9,104 | 6,800 | 6,730 |
Provisions for off-balance sheet risk | |||
Disclosure of provision matrix [line items] | |||
Balances at beginning of year | 852 | 1,032 | 874 |
Foreign exchange and other movements | 223 | ||
Balances at end of year | 1,075 | $ 852 | $ 1,032 |
Provisions for off-balance sheet risk | Stage 1 | |||
Disclosure of provision matrix [line items] | |||
Foreign exchange and other movements | 211 | ||
Balances at end of year | 916 | ||
Provisions for off-balance sheet risk | Stage 2 | |||
Disclosure of provision matrix [line items] | |||
Foreign exchange and other movements | 13 | ||
Balances at end of year | 144 | ||
Provisions for off-balance sheet risk | Stage 3 | |||
Disclosure of provision matrix [line items] | |||
Foreign exchange and other movements | (1) | ||
Balances at end of year | $ 15 |
Other liabilities (Details)
Other liabilities (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other liabilities | ||
Sundry creditors | $ 9,025 | $ 6,788 |
Cash balances undrawn | 155 | 3,894 |
Accrued personnel obligations | 4,388 | 3,735 |
Other obligations | 2,288 | 2,337 |
Credit and debit card operation balances | 2,435 | 2,101 |
Other liabilities | $ 18,291 | $ 18,855 |
Tax matters - Income tax (Detai
Tax matters - Income tax (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current tax expense | |||
Tax expense for current year | $ 7,099 | $ 5,615 | $ 4,215 |
Deferred tax expense (benefit) | |||
Origination and reversal of temporary difference and usage (accrual) of tax carryforward benefits | (190) | (157) | 1,281 |
Total Income Tax | $ 6,909 | $ 5,458 | $ 5,496 |
Tax matters - Income tax reconc
Tax matters - Income tax reconciliation (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated profit (loss) before tax | |||
Standard tax rate (as a percent) | 30.00% | ||
Profit before tax | $ 27,290 | $ 24,814 | $ 24,174 |
Income tax at applicable rate | 8,187 | 7,444 | 7,252 |
Due to effect of inflation | (890) | (1,542) | (1,742) |
Due to effect of tangible assets | 19 | (76) | (78) |
Due to effect of non-deductible expenses, non-taxable income and others | (407) | (368) | 64 |
Total Income Tax | $ 6,909 | $ 5,458 | $ 5,496 |
Effective tax rate (as a percent) | 25.32% | 22.00% | 22.74% |
Current taxes | $ 7,099 | $ 5,615 | $ 4,215 |
Deferred taxes | $ (190) | $ (157) | $ 1,281 |
Tax matters - Tax recognized in
Tax matters - Tax recognized in consolidated equity (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net tax credited/(charged) to consolidated equity | |||
Remeasurement of defined benefit obligation | $ 462 | $ (64) | $ (200) |
Measurement of Available-for-sale | (477) | ||
Measurement of Financial assets at fair value through other comprehensive income | (980) | 371 | |
Measurement of Financial derivatives (Cash flow hedge) | (6) | 276 | 440 |
Paid interests on Subordinated Additional Tier I Capital Notes | 255 | 254 | 191 |
Income tax from sale of the Custody business | 255 | ||
Tax recognized in consolidated equity | (269) | 1,092 | (46) |
Debt instruments. | |||
Net tax credited/(charged) to consolidated equity | |||
Measurement of Available-for-sale | (478) | ||
Measurement of Financial assets at fair value through other comprehensive income | $ (980) | $ 371 | |
Equity instruments. | |||
Net tax credited/(charged) to consolidated equity | |||
Measurement of Available-for-sale | $ 1 |
Tax matters - Deferred taxes (D
Tax matters - Deferred taxes (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | $ 20,757 | $ 20,791 | $ 17,184 |
Net deferred tax liabilities | 105 | 87 | |
Deferred tax liabilities | $ (3,461) | $ (3,304) | $ (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 | $ 2,050 | $ 1,984 | |
Non-deductible provisions | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 2,268 | 2,295 | |
Impairment losses on financial assets at amortized cost | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 10,010 | 10,057 | |
Capital losses carryforward | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 2,708 | 2,683 | |
Labor provisions | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 1,435 | 1,135 | |
Fees and interest collected in advance | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 995 | 1,060 | |
Foreign exchange rate derivatives | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 1,291 | 1,577 | |
Unrealized gains (losses) on financial instruments | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax liabilities | (2,816) | (2,729) | |
Prepayments | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax liabilities | (347) | (355) | |
Other | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax liabilities | $ (298) | $ (220) |
Tax matters - Net operating and
Tax matters - Net operating and Capital losses carryforward (Details) - Capital losses carryforward $ in Millions | Dec. 31, 2019MXN ($) |
Detail of deferred tax assets and liabilities | |
Loss amount | $ 9,024 |
Deferred tax assets | 2,708 |
2026 | |
Detail of deferred tax assets and liabilities | |
Loss amount | 140 |
Deferred tax assets | 43 |
2027 | |
Detail of deferred tax assets and liabilities | |
Loss amount | 3,025 |
Deferred tax assets | 907 |
2028 | |
Detail of deferred tax assets and liabilities | |
Loss amount | 3,297 |
Deferred tax assets | 989 |
2029 | |
Detail of deferred tax assets and liabilities | |
Loss amount | 2,562 |
Deferred tax assets | $ 769 |
Tax matters - Net deferred tax
Tax matters - Net deferred tax assets and liabilities (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Tax matters | |||
Presented as deferred tax assets | $ 17,401 | $ 17,574 | |
Presented as deferred tax liabilities | (105) | (87) | |
Net | $ 17,296 | $ 17,487 | $ 16,549 |
Tax matters - Changes in Tax as
Tax matters - Changes in Tax assets and liabilities (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in deferred tax assets and liabilities | |||
Deferred tax assets - Balances at the beginning of the period | $ 20,791 | $ 17,184 | |
Deferred tax assets - (Charge)/Credit to Consolidated Income | 881 | 2,882 | |
Deferred tax assets - (Charge) Credit to Consolidated Other Comprehensive Income | (915) | 725 | |
Deferred tax assets - Balances at the end of the period | 20,757 | 20,791 | $ 17,184 |
Deferred tax liabilities - Balances at the beginning of the period | (3,304) | (635) | |
Deferred tax liabilities - (Charge)/Credit to Consolidated Income | (691) | (2,725) | |
Deferred tax liabilities - (Charge) Credit to Consolidated Other Comprehensive Income | 462 | 14 | |
Deferred tax liabilities - Other Movements | 72 | 42 | |
Deferred tax liabilities - Balances at the end of the period | (3,461) | (3,304) | (635) |
Balances at the beginning of the period | 17,487 | 16,549 | |
(Charge)/Credit to Consolidated income | 190 | 157 | (1,281) |
(Charge) Credit to Consolidated Other Comprehensive Income | (453) | 739 | |
Other Movements | 72 | 42 | |
Balances at the end of the period | $ 17,296 | $ 17,487 | $ 16,549 |
Non-controlling interests - NCI
Non-controlling interests - NCI Components (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2017 | |
Subsidiaries | |||
Non-controlling interest | $ 32 | $ 40 | $ 29 |
Profit attributable to non-controlling interests | 3 | ||
Fideicomiso GFSSLPT, Banco Santander Mexico, S.A. | |||
Subsidiaries | |||
Non-controlling interest | 17 | 27 | |
Profit attributable to non-controlling interests | 3 | ||
Other subsidiaries | |||
Subsidiaries | |||
Non-controlling interest | $ 15 | $ 13 |
Non-controlling interests - Cha
Non-controlling interests - Changes in NCI (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Non-controlling interests | |||
Balance at beginning of period | $ 32 | $ 29 | |
Profit for the year attributable to non-controlling interests | 3 | ||
Other changes in non-controlling interest | 8 | $ (26) | |
Balance at end of period | $ 40 | $ 32 | $ 29 |
Valuation adjustments - FVTOCI
Valuation adjustments - FVTOCI (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial instruments | |||
Net Valuation Gains (Losses), Financial assets at fair value through other comprehensive income | $ 4,108 | $ (1,226) | |
Financial assets at fair value through other comprehensive income | 236,980 | 155,789 | |
Debt instruments. | |||
Financial instruments | |||
Valuation Gains, Financial assets at fair value through other comprehensive income | 4,266 | 930 | |
Valuation Losses, Financial assets at fair value through other comprehensive income | (158) | (2,156) | |
Net Valuation Gains (Losses), Financial assets at fair value through other comprehensive income | 4,108 | (1,226) | |
Financial assets at fair value through other comprehensive income | 233,463 | 154,483 | |
Loans and advances - Customers | |||
Financial instruments | |||
Financial assets at fair value through other comprehensive income | 2,875 | 771 | |
Equity instruments. | |||
Financial instruments | |||
Valuation Gains, Financial assets at fair value through other comprehensive income | 111 | ||
Valuation Losses, Financial assets at fair value through other comprehensive income | (4) | (13) | |
Net Valuation Gains (Losses), Financial assets at fair value through other comprehensive income | 107 | (13) | |
Financial assets at fair value through other comprehensive income | $ 642 | $ 535 | $ 795 |
Valuation adjustments - Changes
Valuation adjustments - Changes - FVTOCI (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial instruments | |||
Cumulative valuation adjustments beginning balance, FVTOCI | $ (695) | ||
Valuation adjustments, FVTOCI | 4,108 | $ (1,226) | |
Amounts reclassified to consolidated income statement, FVTOCI | (189) | 69 | |
Allowance for impairment losses | (19,220) | (18,810) | $ (18,820) |
Income tax, FVTOCI | (980) | 371 | |
Cumulative valuation adjustments ending balance, FVTOCI | 2,319 | (695) | |
Debt instruments. | |||
Financial instruments | |||
Valuation adjustments, FVTOCI | 4,108 | (1,226) | |
Income tax, FVTOCI | (980) | 371 | |
Equity instruments. | |||
Financial instruments | |||
Valuation adjustments, FVTOCI | 107 | (13) | |
Financial assets at amortized cost category | |||
Financial instruments | |||
Financial assets, Reclassification, Adjustments on initial adoption of IFRS 9 | 751,448 | ||
Allowance for impairment losses | (19,220) | (18,806) | |
Financial assets at amortized cost category | Debt instruments. | |||
Financial instruments | |||
Allowance for impairment losses | 0 | 0 | |
Financial assets at fair value through other comprehensive income category | |||
Financial instruments | |||
Financial assets, Reclassification, Adjustments on initial adoption of IFRS 9 | 92,611 | ||
Allowance for impairment losses | (4) | ||
Financial assets at fair value through other comprehensive income category | Debt and equity instruments | |||
Financial instruments | |||
Cumulative valuation adjustments beginning balance, FVTOCI | (695) | 81 | |
Recognition of valuation adjustment of own equity instruments held for future equity-settled share-based payments | 17 | ||
Valuation adjustments, FVTOCI | 4,215 | (1,239) | |
Amounts reclassified to consolidated income statement, FVTOCI | (189) | 69 | |
Allowance for impairment losses | 2 | ||
Income tax, FVTOCI | (1,012) | 375 | |
Cumulative valuation adjustments ending balance, FVTOCI | 2,319 | (695) | 81 |
Financial assets at fair value through other comprehensive income category | Debt instruments. | |||
Financial instruments | |||
Cumulative valuation adjustments beginning balance, FVTOCI | (675) | 109 | |
Financial assets, Reclassification, Adjustments on initial adoption of IFRS 9 | (73,131) | ||
Valuation adjustments, FVTOCI | 4,108 | (1,226) | |
Amounts reclassified to consolidated income statement, FVTOCI | (189) | 69 | 69 |
Allowance for impairment losses | 2 | ||
Income tax, FVTOCI | (980) | 371 | |
Cumulative valuation adjustments ending balance, FVTOCI | 2,264 | (675) | 109 |
Financial assets at fair value through other comprehensive income category | Equity instruments. | |||
Financial instruments | |||
Cumulative valuation adjustments beginning balance, FVTOCI | (20) | (28) | |
Recognition of valuation adjustment of own equity instruments held for future equity-settled share-based payments | 17 | ||
Valuation adjustments, FVTOCI | 107 | (13) | |
Income tax, FVTOCI | (32) | 4 | |
Cumulative valuation adjustments ending balance, FVTOCI | $ 55 | $ (20) | $ (28) |
Valuation adjustments - Cash fl
Valuation adjustments - Cash flow hedges (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Valuation adjustments | ||
Accumulated (loss)/gain on cash flow hedges | $ (293) | $ (315) |
Accumulated gain related to discontinued cash flow hedges | 17 | 25 |
Valuation adjustments - cash flow hedges | $ (276) | $ (290) |
Shareholders' equity - Share ca
Shareholders' equity - Share capital (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share capital | ||
Number of shares authorised | 7,436,994,357 | 7,436,994,357 |
Total Par Value | $ 25,660 | $ 25,660 |
Fixed capital | ||
Share capital | ||
Number of shares authorised | 6,786,994,357 | 6,786,994,357 |
Total Par Value | $ 25,660 | $ 25,660 |
Fixed capital: Series "F" shares | ||
Share capital | ||
Number of shares authorised | 3,464,309,145 | 3,464,309,145 |
Total Par Value | $ 13,098 | $ 13,098 |
Fixed capital: Series "B" shares | ||
Share capital | ||
Number of shares authorised | 3,322,685,212 | 3,322,685,212 |
Total Par Value | $ 12,562 | $ 12,562 |
Authorized unsubscribed capital | ||
Share capital | ||
Number of shares authorised | 650,000,000 | 650,000,000 |
Authorized unsubscribed capital: Series "F" shares | ||
Share capital | ||
Number of shares authorised | 331,811,068 | 331,811,068 |
Authorized unsubscribed capital: Series "B" Shares | ||
Share capital | ||
Number of shares authorised | 318,188,932 | 318,188,932 |
Series F shares | ||
Share capital | ||
Share capital (as a percent) | 51.00% | |
Series B shares | ||
Share capital | ||
Share capital (as a percent) | 49.00% |
Shareholders' equity - Sharehol
Shareholders' equity - Shareholders' structure (Details) | Sep. 06, 2019 | Aug. 17, 2019 |
Banco Santander, S.A. (Spain) | ||
Share capital | ||
Participation interest in entity (as a percent) | 91.65% | 74.96% |
Minority Shareholders | ||
Share capital | ||
Participation interest in entity (as a percent) | 8.35% | 25.04% |
Shareholders' equity - Dividend
Shareholders' equity - Dividends and legal reserves (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share capital | |||
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 | ||
Subsidiaries [member] | |||
Share capital | |||
Annual provision to legal reserve (as a percent) | 5.00% | ||
Percentage of share capital, reserve fund | 20.00% |
Shareholders' equity - Other di
Shareholders' equity - Other disclosures (Details) - MXN ($) $ / shares in Units, $ in Millions | Nov. 28, 2019 | Apr. 29, 2019 | Dec. 28, 2018 | Jun. 29, 2018 | Jan. 26, 2018 | Jan. 25, 2018 | Dec. 27, 2017 | May 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 08, 2017 |
Other capital disclosures | ||||||||||||
Dividends declared | $ 5,450 | $ 4,843 | $ 4,949 | $ 4,279 | $ 4,676 | $ 4,234 | $ 10,293 | $ 9,228 | $ 8,910 | |||
Dividend payables | 1,950 | $ 1,950 | ||||||||||
Dividends paid, classified as financing activities | $ 1,822 | $ 10,293 | $ 11,050 | $ 8,910 | ||||||||
Merger | Corporate restructuring and mergers | ||||||||||||
Other capital disclosures | ||||||||||||
Share premium | $ 17,574 | |||||||||||
Number of shares issued | 175,746,122,497 | |||||||||||
Par value | $ 0.10 | |||||||||||
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 | 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 | |||||||||||
Par value | $ 0.10 |
Shareholders' equity - Corporat
Shareholders' equity - Corporate restructuring transactions (Details) - MXN ($) $ in Millions | Jan. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Other capital disclosures | |||||
Equity, as originally presented | $ 134,798 | $ 123,287 | $ 115,410 | $ 105,227 | |
Amounts recognized from merger of entities | 83 | ||||
Recognition of equity-settled share-based payments | (82) | 336 | |||
Effect on sale of the Brokerage House, net of income tax | $ (19) | (19) | |||
Merger | Corporate restructuring and mergers | |||||
Other capital disclosures | |||||
Amounts recognized from merger of entities | 83 | ||||
Recognition of equity-settled share-based payments | 336 | ||||
Effect on sale of the Brokerage House, net of income tax | (19) | ||||
Equity after Corporate Restructuring | 115,810 | ||||
Total Shareholders' Equity Attributable to the Parent | |||||
Other capital disclosures | |||||
Equity, as originally presented | 134,758 | 123,255 | 115,381 | 105,172 | |
Amounts recognized from merger of entities | 83 | ||||
Recognition of equity-settled share-based payments | (82) | 336 | |||
Effect on sale of the Brokerage House, net of income tax | (19) | ||||
Total Shareholders' Equity Attributable to the Parent | Merger | Corporate restructuring and mergers | |||||
Other capital disclosures | |||||
Amounts recognized from merger of entities | 83 | ||||
Recognition of equity-settled share-based payments | 336 | ||||
Effect on sale of the Brokerage House, net of income tax | (19) | ||||
Equity after Corporate Restructuring | 115,781 | ||||
Capital | |||||
Other capital disclosures | |||||
Equity, as originally presented | 25,660 | 25,660 | 8,086 | 8,086 | |
Capitalization of share premium and accumulated reserves | 17,574 | ||||
Capital | Merger | Corporate restructuring and mergers | |||||
Other capital disclosures | |||||
Capitalization of share premium and accumulated reserves | 17,574 | ||||
Equity after Corporate Restructuring | 25,660 | ||||
Share premium | |||||
Other capital disclosures | |||||
Equity, as originally presented | 16,956 | 16,956 | |||
Capitalization of share premium and accumulated reserves | (16,956) | ||||
Share premium | Merger | Corporate restructuring and mergers | |||||
Other capital disclosures | |||||
Capitalization of share premium and accumulated reserves | (16,956) | ||||
Accumulated Reserves | |||||
Other capital disclosures | |||||
Equity, as originally presented | 86,674 | 79,227 | 72,838 | 65,190 | |
Amounts recognized from merger of entities | 83 | ||||
Capitalization of share premium and accumulated reserves | (618) | ||||
Recognition of equity-settled share-based payments | (82) | 319 | |||
Effect on sale of the Brokerage House, net of income tax | (19) | ||||
Accumulated Reserves | Merger | Corporate restructuring and mergers | |||||
Other capital disclosures | |||||
Amounts recognized from merger of entities | 83 | ||||
Capitalization of share premium and accumulated reserves | (618) | ||||
Recognition of equity-settled share-based payments | 319 | ||||
Effect on sale of the Brokerage House, net of income tax | (19) | ||||
Equity after Corporate Restructuring | 72,603 | ||||
Parent result for the period | |||||
Other capital disclosures | |||||
Equity, as originally presented | 20,381 | 19,353 | 18,678 | 16,536 | |
Parent result for the period | Merger | Corporate restructuring and mergers | |||||
Other capital disclosures | |||||
Equity after Corporate Restructuring | 18,678 | ||||
Valuation Adjustments | |||||
Other capital disclosures | |||||
Equity, as originally presented | (1,177) | ||||
Valuation Adjustments | Merger | Corporate restructuring and mergers | |||||
Other capital disclosures | |||||
Recognition of equity-settled share-based payments | 17 | ||||
Equity after Corporate Restructuring | (1,160) | ||||
Non-Controlling interest | |||||
Other capital disclosures | |||||
Equity, as originally presented | $ 40 | $ 32 | $ 29 | $ 55 | |
Non-Controlling interest | Merger | Corporate restructuring and mergers | |||||
Other capital disclosures | |||||
Equity after Corporate Restructuring | $ 29 |
Shareholders' equity - Annual m
Shareholders' equity - Annual meeting (Details) - MXN ($) $ in Millions | Nov. 28, 2019 | Apr. 29, 2019 | Dec. 28, 2018 | Jun. 29, 2018 | Dec. 27, 2017 | May 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 21, 2018 |
Shareholders' equity | ||||||||||
Fund to repurchase own shares | $ 12,800 | $ 12,800 | ||||||||
Shares repurchased | 5,671,453 | |||||||||
Value of shares repurchased | $ 145 | |||||||||
Dividends declared | $ 5,450 | $ 4,843 | $ 4,949 | $ 4,279 | $ 4,676 | $ 4,234 | $ 10,293 | $ 9,228 | $ 8,910 |
Minimum capital requirements -
Minimum capital requirements - General (Details) | 12 Months Ended |
Dec. 31, 2019item | |
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 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 | |
Expected credit loss rate | 0.00% |
Maximum | |
Assets Subject to Credit Risk | |
Expected credit loss rate | 150.00% |
Minimum capital requirements _2
Minimum capital requirements - Mexican Banking GAAP (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Capital requirements | ||
Computable capital | $ 125,083 | $ 121,454 |
Core capital | 138,371 | 125,621 |
Supplementary capital | 24,847 | 27,419 |
Deductible items | (47,555) | (41,395) |
Subordinated Additional Tier 1 Capital Notes | 9,420 | 9,809 |
Capital requirements | 61,127 | 61,054 |
Excess of capital requirements | 63,956 | 60,400 |
Risk-weighted assets | 764,093 | 763,170 |
Capital requirements, Market risk | ||
Capital requirements | ||
Capital requirements | 13,988 | 14,280 |
Capital requirements, Credit risk | ||
Capital requirements | ||
Capital requirements | 42,922 | 42,732 |
Capital requirements, Operational risk | ||
Capital requirements | ||
Capital requirements | $ 4,217 | $ 4,042 |
Minimum capital requirements _3
Minimum capital requirements - Capital ratios (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Minimum capital requirements | ||
Net Capital / Required Capital | 2.05 | 1.99 |
Basic Fundamental Capital / Assets subject to Credit, Market and Operating Risk | 11.89% | 11.04% |
Basic Fundamental Capital / Assets subject to Credit, Market and Operating Risk - Minimum capital requirements | 8.20% | 7.90% |
Basic Capital / Assets subject to Credit, Market and Operating Risk | 13.12% | 12.32% |
Basic Capital / Assets subject to Credit, Market and Operating Risk - Minimum capital requirements | 9.70% | 9.40% |
Net Capital / Assets subject to Credit Risk | 23.31% | 22.74% |
Net Capital / Assets subject to Credit, Market and Operating Risk | 16.37% | 15.91% |
Net Capital / Assets subject to Credit, Market and Operating Risk - Minimum capital requirements | 11.70% | 11.40% |
Memorandum accounts - Contingen
Memorandum accounts - Contingent commitments (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Jan. 02, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Contingent commitments | |||||
Contingent commitments | $ 216,574 | $ 238,273 | |||
Provisions | 9,104 | 6,800 | $ 6,730 | $ 7,202 | |
Provisions for off-balance sheet risk | |||||
Contingent commitments | |||||
Provisions | 1,075 | $ 852 | 852 | $ 1,032 | $ 874 |
Available lines of credit cards and non-revolving consumer loans | |||||
Contingent commitments | |||||
Contingent commitments | 136,405 | 144,006 | |||
Guarantees, documentary credits and loan commitments of commercial and public-sector loans | |||||
Contingent commitments | |||||
Contingent commitments | 79,950 | 94,014 | |||
Guarantees, documentary credits and loan commitments of commercial loans (SMEs) | |||||
Contingent commitments | |||||
Contingent commitments | $ 219 | $ 253 |
Memorandum accounts - Conting_2
Memorandum accounts - Contingent commitments by stages (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Contingent commitments | ||
Contingent Commitments | $ 216,574 | $ 238,273 |
Available lines of credit cards and non-revolving consumer loans | ||
Contingent commitments | ||
Contingent Commitments | 136,405 | 144,006 |
Guarantees, documentary credits and loan commitments of commercial and public-sector loans | ||
Contingent commitments | ||
Contingent Commitments | 79,950 | 94,014 |
Guarantees, documentary credits and loan commitments of commercial loans (SMEs) | ||
Contingent commitments | ||
Contingent Commitments | 219 | $ 253 |
Stage 1 | ||
Contingent commitments | ||
Contingent Commitments | 215,765 | |
Stage 1 | Available lines of credit cards and non-revolving consumer loans | ||
Contingent commitments | ||
Contingent Commitments | 135,974 | |
Stage 1 | Guarantees, documentary credits and loan commitments of commercial and public-sector loans | ||
Contingent commitments | ||
Contingent Commitments | 79,572 | |
Stage 1 | Guarantees, documentary credits and loan commitments of commercial loans (SMEs) | ||
Contingent commitments | ||
Contingent Commitments | 219 | |
Stage 2 | ||
Contingent commitments | ||
Contingent Commitments | 690 | |
Stage 2 | Available lines of credit cards and non-revolving consumer loans | ||
Contingent commitments | ||
Contingent Commitments | 312 | |
Stage 2 | Guarantees, documentary credits and loan commitments of commercial and public-sector loans | ||
Contingent commitments | ||
Contingent Commitments | 378 | |
Stage 2 | Guarantees, documentary credits and loan commitments of commercial loans (SMEs) | ||
Contingent commitments | ||
Contingent Commitments | 0 | |
Stage 3 | ||
Contingent commitments | ||
Contingent Commitments | 119 | |
Stage 3 | Available lines of credit cards and non-revolving consumer loans | ||
Contingent commitments | ||
Contingent Commitments | 119 | |
Stage 3 | Guarantees, documentary credits and loan commitments of commercial and public-sector loans | ||
Contingent commitments | ||
Contingent Commitments | 0 | |
Stage 3 | Guarantees, documentary credits and loan commitments of commercial loans (SMEs) | ||
Contingent commitments | ||
Contingent Commitments | $ 0 |
Memorandum accounts - Financial
Memorandum accounts - Financial instruments received as collateral (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial instruments | ||
Financial instruments received as collateral | $ 82,342 | $ 111,937 |
Financial instrument in connection with OTC derivative transactions | Debt instruments. | ||
Financial instruments | ||
Financial instruments received as collateral | 5,736 | 4,044 |
Financial instruments in connection with repurchase agreement transactions | Debt instruments. | ||
Financial instruments | ||
Financial instruments received as collateral | 76,592 | 107,560 |
Financial instruments in connection with securities loans transactions | Equity instruments. | ||
Financial instruments | ||
Financial instruments received as collateral | $ 14 | $ 333 |
Derivatives - Nominal amounts_3
Derivatives - Nominal amounts and fair values of trading and hedging derivatives - Trading assets (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets | ||
Nominal amount of trading derivative assets | $ 4,193,643 | $ 3,778,674 |
Fair value of trading derivatives | 151,747 | 154,953 |
OTC transactions | ||
Financial assets | ||
Fair value of trading derivatives | 151,747 | 154,953 |
Currency risk | Futures | ||
Financial assets | ||
Nominal amount of trading derivative assets | 2,537 | |
Currency risk | Forward rate agreements | ||
Financial assets | ||
Nominal amount of trading derivative assets | 209,085 | 237,777 |
Fair value of trading derivatives | 8,769 | 7,127 |
Currency risk | Forwards: Spot | ||
Financial assets | ||
Nominal amount of trading derivative assets | 18,630 | 62,701 |
Fair value of trading derivatives | 32 | 80 |
Currency risk | Options | ||
Financial assets | ||
Nominal amount of trading derivative assets | 50,940 | 87,711 |
Fair value of trading derivatives | 1,052 | 1,236 |
Currency risk | Currency swaps | ||
Financial assets | ||
Nominal amount of trading derivative assets | 442,402 | 435,698 |
Fair value of trading derivatives | 61,173 | 74,176 |
Interest rate risk | Options | ||
Financial assets | ||
Nominal amount of trading derivative assets | 111,940 | 132,484 |
Fair value of trading derivatives | 421 | 1,450 |
Interest rate risk | Interest rate swaps | ||
Financial assets | ||
Nominal amount of trading derivative assets | 3,353,662 | 2,803,464 |
Fair value of trading derivatives | 80,078 | 69,819 |
Market Index | Futures | ||
Financial assets | ||
Nominal amount of trading derivative assets | 4,144 | 426 |
Market Index | Options | ||
Financial assets | ||
Nominal amount of trading derivative assets | 1,828 | 2,950 |
Fair value of trading derivatives | 212 | 67 |
Equity price risk | Forward rate agreements | ||
Financial assets | ||
Nominal amount of trading derivative assets | 341 | 11,770 |
Fair value of trading derivatives | 936 | |
Equity price risk | Options | ||
Financial assets | ||
Nominal amount of trading derivative assets | 43 | 148 |
Fair value of trading derivatives | 3 | |
Equity price risk | Equity swaps | ||
Financial assets | ||
Nominal amount of trading derivative assets | 628 | 1,008 |
Fair value of trading derivatives | $ 10 | $ 59 |
Derivatives - Nominal amounts_4
Derivatives - Nominal amounts and fair values of trading and hedging derivatives - Hedging assets (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Hedging derivative assets | ||
Nominal amount of hedging derivative assets | $ 128,344 | $ 87,136 |
Fair value of hedging derivative assets | 9,256 | 9,285 |
Total Derivative Assets, Nominal | 4,321,987 | 3,865,810 |
Total Derivative Assets, Fair Value | 161,003 | 164,238 |
Cash flow hedges | ||
Hedging derivative assets | ||
Fair value of hedging derivative assets | 8,331 | 9,083 |
Fair value hedges | ||
Hedging derivative assets | ||
Fair value of hedging derivative assets | 925 | 202 |
Interest rate swaps | Cash flow hedges | Interest rate risk | ||
Hedging derivative assets | ||
Nominal amount of hedging derivative assets | 4,000 | |
Fair value of hedging derivative assets | 111 | |
Interest rate swaps | Fair value hedges | Interest rate risk | ||
Hedging derivative assets | ||
Nominal amount of hedging derivative assets | 53,882 | 8,416 |
Fair value of hedging derivative assets | 719 | 157 |
Currency swaps | Cash flow hedges | Currency risk | ||
Hedging derivative assets | ||
Nominal amount of hedging derivative assets | 11,177 | 13,609 |
Fair value of hedging derivative assets | 3,843 | 4,798 |
Currency swaps | Fair value hedges | Currency risk | ||
Hedging derivative assets | ||
Nominal amount of hedging derivative assets | 3,868 | 1,492 |
Fair value of hedging derivative assets | 206 | 45 |
Forward rate agreements | Cash flow hedges | Currency risk | ||
Hedging derivative assets | ||
Nominal amount of hedging derivative assets | 59,417 | 59,619 |
Fair value of hedging derivative assets | $ 4,488 | $ 4,174 |
Derivatives - Nominal amounts_5
Derivatives - Nominal amounts and fair values of trading and hedging derivatives - Trading liabilities (Details) $ in Millions, in Millions | Dec. 31, 2019MXV ( ) | Dec. 31, 2019MXN ($) | Dec. 31, 2018MXV ( ) | Dec. 31, 2018MXN ($) |
Financial liabilities | ||||
Nominal amount of trading derivative liabilities | $ 4,133,205 | $ 3,721,976 | ||
Fair value of trading derivative liabilities | 144,481 | 153,727 | ||
OTC transactions | ||||
Financial liabilities | ||||
Fair value of trading derivative liabilities | | 144,481 | 153,727 | ||
Currency risk | Futures | ||||
Financial liabilities | ||||
Nominal amount of trading derivative liabilities | 14,202 | 5,735 | ||
Currency risk | Forward rate agreements | ||||
Financial liabilities | ||||
Nominal amount of trading derivative liabilities | 199,493 | 237,127 | ||
Fair value of trading derivative liabilities | 6,551 | 5,988 | ||
Currency risk | Forwards: Spot | ||||
Financial liabilities | ||||
Nominal amount of trading derivative liabilities | 36,973 | 41,423 | ||
Fair value of trading derivative liabilities | 73 | 110 | ||
Currency risk | Options | ||||
Financial liabilities | ||||
Nominal amount of trading derivative liabilities | 57,808 | 87,616 | ||
Fair value of trading derivative liabilities | 1,606 | 1,504 | ||
Currency risk | Currency swaps | ||||
Financial liabilities | ||||
Nominal amount of trading derivative liabilities | 385,855 | 395,656 | ||
Fair value of trading derivative liabilities | 59,393 | 73,384 | ||
Interest rate risk | Options | ||||
Financial liabilities | ||||
Nominal amount of trading derivative liabilities | 140,813 | 142,477 | ||
Fair value of trading derivative liabilities | 474 | 971 | ||
Interest rate risk | Interest rate swaps | ||||
Financial liabilities | ||||
Nominal amount of trading derivative liabilities | 3,296,209 | 2,795,454 | ||
Fair value of trading derivative liabilities | 76,165 | 70,607 | ||
Market Index | Futures | ||||
Financial liabilities | ||||
Nominal amount of trading derivative liabilities | 79 | 462 | ||
Market Index | Forward rate agreements | ||||
Financial liabilities | ||||
Nominal amount of trading derivative liabilities | 651 | 11,768 | ||
Fair value of trading derivative liabilities | 6 | 839 | ||
Market Index | Options | ||||
Financial liabilities | ||||
Nominal amount of trading derivative liabilities | 1,122 | 4,141 | ||
Fair value of trading derivative liabilities | 201 | 303 | ||
Equity price risk | Options | ||||
Financial liabilities | ||||
Nominal amount of trading derivative liabilities | 117 | |||
Fair value of trading derivative liabilities | 5 | |||
Equity price risk | Equity swaps | ||||
Financial liabilities | ||||
Fair value of trading derivative liabilities | $ 12 | $ 16 |
Derivatives - Nominal amounts_6
Derivatives - Nominal amounts and fair values of trading and hedging derivatives - Hedging liabilities (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Hedging derivative liabilities | ||
Nominal amount of hedging derivative liabilities | $ 68,187 | $ 54,019 |
Fair value of hedging derivative liabilities | 7,523 | 8,393 |
Total Derivative Liabilities, Nominal | 4,201,392 | 3,775,995 |
Total Derivative Liabilities, Fair Value | 152,004 | 162,120 |
Cash flow hedges | ||
Hedging derivative liabilities | ||
Fair value of hedging derivative liabilities | 2,217 | 3,257 |
Fair value hedges | ||
Hedging derivative liabilities | ||
Fair value of hedging derivative liabilities | 5,306 | 5,136 |
Forward rate agreements | Cash flow hedges | Currency risk | ||
Hedging derivative liabilities | ||
Nominal amount of hedging derivative liabilities | 10,698 | 14,041 |
Fair value of hedging derivative liabilities | 409 | 345 |
Interest rate swaps | Cash flow hedges | Interest rate risk | ||
Hedging derivative liabilities | ||
Nominal amount of hedging derivative liabilities | 11,311 | |
Fair value of hedging derivative liabilities | 118 | |
Interest rate swaps | Fair value hedges | Interest rate risk | ||
Hedging derivative liabilities | ||
Nominal amount of hedging derivative liabilities | 3,600 | 1,200 |
Fair value of hedging derivative liabilities | 246 | 14 |
Currency swaps | Cash flow hedges | Currency risk | ||
Hedging derivative liabilities | ||
Nominal amount of hedging derivative liabilities | 10,704 | 10,289 |
Fair value of hedging derivative liabilities | 1,690 | 2,912 |
Currency swaps | Fair value hedges | Currency risk | ||
Hedging derivative liabilities | ||
Nominal amount of hedging derivative liabilities | 31,874 | 28,489 |
Fair value of hedging derivative liabilities | $ 5,060 | $ 5,122 |
Derivatives - Nominal amounts_7
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, 2019 | Dec. 31, 2018 |
Financial instruments | ||
Collateral provided | $ 5,153 | $ 3,689 |
Cash | Mercado Mexicano de Derivados, S.A. de C.V. (MexDer) | ||
Financial instruments | ||
Collateral provided | 3,865 | 2,093 |
Cash | Chicago Mercantile Exchange | ||
Financial instruments | ||
Collateral provided | 1,286 | 1,297 |
Cash | Foreign financial Institutions | ||
Financial instruments | ||
Collateral provided | $ 2 | $ 299 |
Derivatives - Nominal amounts_8
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, 2019 | Dec. 31, 2018 |
Loans and advances - Credit institutions | ||
Financial instruments | ||
Collateral delivered | $ 29,508 | |
Debt instruments. | ||
Financial instruments | ||
Collateral delivered | $ 4,472 | 6,234 |
Debt instruments received as collateral and delivered as collateral in turn | 1,318 | 1,465 |
Financial assets at amortized cost category | Loans and advances - Credit institutions | ||
Financial instruments | ||
Collateral delivered | 14,300 | |
Mexican financial institutions | Financial assets at amortized cost category | Loans and advances - Credit institutions | ||
Financial instruments | ||
Collateral delivered | 7,536 | 20,597 |
Mexican financial institutions | Financial assets at fair value through profit or loss category | Debt instruments. | ||
Financial instruments | ||
Collateral delivered | 3,121 | 4,438 |
Foreign financial Institutions | Financial assets at amortized cost category | Loans and advances - Credit institutions | ||
Financial instruments | ||
Collateral delivered | 6,764 | 8,911 |
Foreign financial Institutions | Financial assets at fair value through profit or loss category | Debt instruments. | ||
Financial instruments | ||
Collateral delivered | $ 1,351 | $ 1,796 |
Derivatives - Nominal amounts_9
Derivatives - Nominal amounts and fair values of trading and hedging derivatives - Collateral received (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial instruments | ||
Cash collateral received | $ 16,759 | $ 42,480 |
Financial instrument in connection with OTC derivative transactions | Deposits | ||
Financial instruments | ||
Cash collateral received | 16,759 | 42,480 |
Financial instrument in connection with OTC derivative transactions | Mexican financial institutions | Deposits | ||
Financial instruments | ||
Cash collateral received | 5,174 | 5,288 |
Financial instrument in connection with OTC derivative transactions | Foreign financial Institutions | Deposits | ||
Financial instruments | ||
Cash collateral received | 11,527 | $ 37,192 |
Financial instrument in connection with OTC derivative transactions | Other | Deposits | ||
Financial instruments | ||
Cash collateral received | $ 58 |
Derivatives - Nominal amount_10
Derivatives - Nominal amounts and fair values of trading and hedging derivatives - Memorandum accounts (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financial instruments | ||
Financial instruments received as collateral | $ 82,342 | $ 111,937 |
Percentage of level of confidence | 97.50% | |
Cumulative net credit risk exposure | $ 390,324 | 390,324 |
Financial instrument in connection with OTC derivative transactions | Debt instruments. | ||
Financial instruments | ||
Financial instruments received as collateral | 5,736 | 4,044 |
Financial instrument in connection with OTC derivative transactions | Mexican financial institutions | Debt instruments. | ||
Financial instruments | ||
Financial instruments received as collateral | $ 5,736 | $ 4,044 |
Interest income (Detail)
Interest income (Detail) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial assets | |||
Cash and balances with the Central Bank | $ 2,456 | $ 2,361 | $ 2,081 |
Hedging derivatives | 3,541 | 2,858 | 1,895 |
Other interest income | 191 | 125 | 168 |
Total interest income except interest income on financial assets at fair value through profit or loss | 108,846 | 99,537 | 98,002 |
Financial assets except for those at fair value through profit or loss starting January 1, 2018. | |||
Financial assets | |||
Loans and advances to credit institutions | 2,839 | 2,178 | 4,804 |
Loans and advances to customers | 89,894 | 81,976 | 72,263 |
Debt instruments | $ 9,925 | $ 10,039 | $ 16,791 |
Interest income from financia_3
Interest income from financial assets at fair value through profit or loss (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financial assets | ||
Interest income on financial assets designated at fair value through profit or loss | $ 15,384 | $ 14,049 |
Financial assets at fair value through profit or loss category | ||
Financial assets | ||
Interest income on financial assets designated at fair value through profit or loss | 15,384 | 14,049 |
Loans and advances - Credit institutions | Financial assets at fair value through profit or loss category | ||
Financial assets | ||
Interest income on financial assets designated at fair value through profit or loss | 6,306 | 5,981 |
Loans and advances - Customers | Financial assets at fair value through profit or loss category | ||
Financial assets | ||
Interest income on financial assets designated at fair value through profit or loss | 1,742 | 518 |
Debt instruments. | Financial assets at fair value through profit or loss category | ||
Financial assets | ||
Interest income on financial assets designated at fair value through profit or loss | $ 7,336 | $ 7,550 |
Interest expenses and similar_3
Interest expenses and similar charges (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest expenses and similar charges | |||
Deposits from credit institutions | $ 9,041 | $ 7,420 | $ 7,564 |
Customer deposits | 35,036 | 31,913 | 24,560 |
Marketable debt securities | 5,398 | 4,244 | 3,696 |
Subordinated liabilities | 1,597 | 1,610 | 1,600 |
Hedging derivatives | 222 | 108 | 129 |
Other interest expenses | 6,780 | 6,294 | 4,609 |
Total interest expenses and similar charges | $ 58,074 | $ 51,589 | $ 42,158 |
Dividend income (Details)
Dividend income (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Dividend income | |||
Dividend income | $ 235 | $ 210 | $ 150 |
Financial assets held for trading | |||
Dividend income | |||
Dividend income | 5 | ||
Financial assets designated at fair value through profit or loss | |||
Dividend income | |||
Dividend income | 44 | 33 | |
Financial assets available for sale | |||
Dividend income | |||
Dividend income | 145 | ||
Financial assets at fair value through other comprehensive income category | |||
Dividend income | |||
Dividend income | 191 | 177 | |
NAFTRAC (Exchange-traded fund or ETF) | Financial assets held for trading | |||
Dividend income | |||
Dividend income | 2 | ||
NAFTRAC (Exchange-traded fund or ETF) | Financial assets designated at fair value through profit or loss | |||
Dividend income | |||
Dividend income | 36 | 18 | |
Grupo Cementos de Chihuahua, S.A.B. de C.V [Member] | Financial assets designated at fair value through profit or loss | |||
Dividend income | |||
Dividend income | 7 | 11 | |
America Movil, S.A.B, de C.V. | Financial assets held for trading | |||
Dividend income | |||
Dividend income | 1 | ||
America Movil, S.A.B, de C.V. | Financial assets designated at fair value through profit or loss | |||
Dividend income | |||
Dividend income | 1 | ||
Grupo Mexico, S.A.B. de C.V. | Financial assets designated at fair value through profit or loss | |||
Dividend income | |||
Dividend income | 1 | ||
Wal-Mart de Mexico, S.A.B. de C.V. | Financial assets held for trading | |||
Dividend income | |||
Dividend income | 1 | ||
Wal-Mart de Mexico, S.A.B. de C.V. | Financial assets designated at fair value through profit or loss | |||
Dividend income | |||
Dividend income | 1 | 1 | |
Controladora Prosa, S.A. de C.V. | Financial assets available for sale | |||
Dividend income | |||
Dividend income | 62 | ||
Controladora Prosa, S.A. de C.V. | Financial assets at fair value through other comprehensive income category | |||
Dividend income | |||
Dividend income | 54 | 50 | |
Trans Union de Mexico, S.A. | Financial assets available for sale | |||
Dividend income | |||
Dividend income | 83 | ||
Trans Union de Mexico, S.A. | Financial assets at fair value through other comprehensive income category | |||
Dividend income | |||
Dividend income | 93 | 88 | |
Bolsa Mexicana de Valores, S.A.B, de C.V. | Financial assets at fair value through other comprehensive income category | |||
Dividend income | |||
Dividend income | 25 | 21 | |
Dun and Bradstreet de Mexico S.A. de C.V. | Financial assets at fair value through other comprehensive income category | |||
Dividend income | |||
Dividend income | 18 | 17 | |
Others | Financial assets held for trading | |||
Dividend income | |||
Dividend income | $ 1 | ||
Others | Financial assets designated at fair value through profit or loss | |||
Dividend income | |||
Dividend income | 1 | ||
Others | Financial assets at fair value through other comprehensive income category | |||
Dividend income | |||
Dividend income | $ 1 | $ 1 |
Fee and commission income (Deta
Fee and commission income (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Collection and payment services: | |||
Service charges on deposit accounts | $ 1,438 | $ 1,217 | $ 1,046 |
Credit and debit cards | 8,757 | 7,398 | 6,268 |
Checks and others | 243 | 240 | 252 |
Total collection and payment services | 10,438 | 8,855 | 7,566 |
Marketing of non-banking financial products: | |||
Investment funds management | 1,568 | 1,569 | 1,457 |
Capital markets and securities activities | 558 | 738 | 513 |
Collection and payment services | 2,923 | 2,832 | 2,568 |
Insurance | 5,038 | 4,575 | 4,341 |
Financial advisory services | 1,207 | 1,212 | 1,341 |
Total marketing of nonbanking financial products | 11,294 | 10,926 | 10,220 |
Securities services: | |||
Administration and custody | 347 | 368 | 524 |
Total securities services | 347 | 368 | 524 |
Other: | |||
Foreign currency transactions | 1,287 | 1,255 | 1,111 |
Other fees and commissions | 952 | 892 | 895 |
Total other | 2,239 | 2,147 | 2,006 |
Total fee and commission income | $ 24,318 | $ 22,296 | $ 20,316 |
Fee and commission expenses (De
Fee and commission expenses (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fee and commission expenses | |||
Credit and debit cards | $ 4,095 | $ 3,680 | $ 3,250 |
Checks and others | 31 | 26 | 25 |
Collections and transactional services | 312 | 287 | 226 |
Fund management | 1 | 1 | 2 |
Capital markets and securities activities | 238 | 189 | 199 |
Financial advisory services | 6 | 13 | 6 |
Correspondent services | 723 | 614 | 465 |
Other fees and commissions | 2,488 | 1,764 | 1,330 |
Total fee and commission expenses | $ 7,894 | $ 6,574 | $ 5,503 |
Gains_(losses) on financial a_3
Gains/(losses) on financial assets and liabilities (net) (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial instruments | |||
Gains/(losses) on financial assets and liabilities (net), Total | $ 2,854 | $ 1,484 | $ 3,458 |
Fair value hedges | |||
Financial instruments | |||
Fair value hedge - hedged items | 731 | (606) | 341 |
Fair value hedge - hedging derivative instruments | (667) | 474 | (117) |
Cash flow hedges | |||
Financial instruments | |||
Cash flow hedge inefficiency | (2) | (2) | 2 |
Financial instruments held for trading, type of instrument | |||
Financial instruments | |||
Gains/(losses) on financial assets and liabilities (net), Total | 3,223 | ||
Financial instruments at fair value through profit or loss, type of instrument | |||
Financial instruments | |||
Gains/(losses) on financial assets and liabilities (net), Total | 2,709 | 1,687 | |
Available-for-sale financial instruments, type of instrument | |||
Financial instruments | |||
Gains/(losses) on financial assets and liabilities (net), Total | 85 | (69) | 9 |
Hedging derivatives, type of instrument | |||
Financial instruments | |||
Gains/(losses) on financial assets and liabilities (net), Total | 60 | (134) | 226 |
Fair value hedge - hedged items | 731 | (606) | 341 |
Fair value hedge - hedging derivative instruments | (667) | 474 | (117) |
Cash flow hedge inefficiency | (4) | (2) | 2 |
Debt instruments. | Financial instruments held for trading, type of instrument | |||
Financial instruments | |||
Gains/(losses) on financial assets and liabilities (net), Total | 494 | ||
Debt instruments. | Financial instruments at fair value through profit or loss, type of instrument | |||
Financial instruments | |||
Gains/(losses) on financial assets and liabilities (net), Total | 260 | 166 | |
Equity instruments. | Financial instruments held for trading, type of instrument | |||
Financial instruments | |||
Gains/(losses) on financial assets and liabilities (net), Total | 29 | ||
Equity instruments. | Financial instruments at fair value through profit or loss, type of instrument | |||
Financial instruments | |||
Gains/(losses) on financial assets and liabilities (net), Total | 71 | 35 | |
Trading derivatives | Financial instruments held for trading, type of instrument | |||
Financial instruments | |||
Gains/(losses) on financial assets and liabilities (net), Total | 2,736 | ||
Trading derivatives | Financial instruments at fair value through profit or loss, type of instrument | |||
Financial instruments | |||
Gains/(losses) on financial assets and liabilities (net), Total | 2,459 | 1,482 | |
Other financial instruments | Financial instruments held for trading, type of instrument | |||
Financial instruments | |||
Gains/(losses) on financial assets and liabilities (net), Total | $ (36) | ||
Other financial instruments | Financial instruments at fair value through profit or loss, type of instrument | |||
Financial instruments | |||
Gains/(losses) on financial assets and liabilities (net), Total | $ (81) | $ 4 |
Other operating income and ot_3
Other operating income and other operating expenses (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other operating income: | |||
Other operating income | $ 1,553 | $ 748 | $ 669 |
Other operating income | 1,553 | 748 | 669 |
Other operating expenses: | |||
IPAB fund contribution | (3,353) | (3,134) | (2,894) |
Other operating expense | (1,792) | (1,259) | (720) |
Other operating expense | $ (5,145) | $ (4,393) | $ (3,614) |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Personnel expenses | |||
Wages and salaries | $ 7,740 | $ 7,274 | $ 6,300 |
Social security costs | 1,443 | 1,283 | 1,105 |
Service expense related to defined contribution pension plan | 410 | 373 | 330 |
Service expense related to defined benefit pension plan | 147 | 157 | 146 |
Share-based payments | 226 | 161 | 283 |
Bonus and benefits granted to employees | 4,017 | 3,691 | 3,295 |
Other staff costs | 1,445 | 1,415 | 1,289 |
Total employee benefits expense | $ 15,428 | $ 14,354 | $ 12,748 |
Personnel expenses - Corporate
Personnel expenses - Corporate performance shares plan 2014 (Details) - MXN ($) $ in Millions | Jul. 01, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Share-based payment arrangement | |||||||
Share-based payment expense recognized in consolidated income statement | $ 226 | $ 161 | $ 283 | ||||
Corporate Performance Shares Plan 2014 | |||||||
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% | ||||
Fair value of share-based compensation plan | 36 | ||||||
Share-based payment expense recognized in consolidated income statement | $ 16 |
Personnel expenses - Long-term
Personnel expenses - Long-term incentive plan 2015 (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based payment arrangement | |||
Share-based payment expense recognized in consolidated income statement | $ 226 | $ 161 | $ 283 |
Long Term Incentive Plan 2015 | |||
Share-based payment arrangement | |||
Fair value of share-based compensation plan | 5 | 86 | |
Share-based payment expense recognized in consolidated income statement | $ 5 | $ 16 | $ 27 |
Personnel expenses - Bonus paym
Personnel expenses - Bonus payment policies (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019EUR (€) | Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | |
Share-based payment arrangement | ||||
Share-based payment expense recognized in consolidated income statement | $ | $ 226 | $ 161 | $ 283 | |
Bonus Plan | ||||
Share-based payment arrangement | ||||
Shares obligation retention period | 1 year | 1 year | ||
Share-based payment expense recognized in consolidated income statement | $ | $ 226 | $ 184 | $ 325 | |
Number of days following the anniversaries of the initial date in which the deferred bonus will be paid | 30 days | 30 days | ||
Percentage paid in cash | 50.00% | 50.00% | ||
Percentage paid in shares | 50.00% | 50.00% | ||
Bonus Plan | 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 | 5 years | ||
Immediate Payment Percentage | 40.00% | 40.00% | ||
Deferred Percentage | 60.00% | 60.00% | ||
Bonus Plan | Executive officers and members of the identified staff whose total variable remuneration is greater than or equal to 1.7 and less than 2.7 | ||||
Share-based payment arrangement | ||||
Variable remuneration/Deferral period | 5 years | 5 years | ||
Immediate Payment Percentage | 50.00% | 50.00% | ||
Deferred Percentage | 50.00% | 50.00% | ||
Bonus Plan | Other Beneficiaries | ||||
Share-based payment arrangement | ||||
Variable remuneration/Deferral period | 3 years | 3 years | ||
Immediate Payment Percentage | 60.00% | 60.00% | ||
Deferred Percentage | 40.00% | 40.00% | ||
Minimum | Bonus Plan | ||||
Share-based payment arrangement | ||||
Variable remuneration/Deferral period | 3 years | 3 years | ||
Annual vesting percentage | 33.00% | 33.00% | ||
Minimum | Bonus Plan | 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 | Bonus Plan | Executive officers and members of the identified staff whose total variable remuneration is greater than or equal to 1.7 and less than 2.7 | ||||
Share-based payment arrangement | ||||
Variable remuneration | € 1.7 | |||
Maximum | Bonus Plan | ||||
Share-based payment arrangement | ||||
Variable remuneration/Deferral period | 5 years | 5 years | ||
Annual vesting percentage | 20.00% | 20.00% | ||
Maximum | Bonus Plan | Executive officers and members of the identified staff whose total variable remuneration is greater than or equal to 1.7 and less than 2.7 | ||||
Share-based payment arrangement | ||||
Variable remuneration | € 2.7 |
Other general administrative _3
Other general administrative expenses (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other general administrative expenses | |||
Maintenance, conservation and repair | $ 738 | $ 646 | $ 1,227 |
Information technology and systems | 3,851 | 4,820 | 2,790 |
Stationery and supplies | 150 | 227 | 215 |
Advertising and communications | 965 | 890 | 968 |
Rents | 653 | 1,120 | 1,963 |
Administrative services | 1,737 | 503 | 936 |
Taxes other than income tax | 2,037 | 1,820 | 1,454 |
Surveillance and cash courier services | 1,248 | 979 | 894 |
Insurance premiums | 95 | 75 | 78 |
Travel costs | 325 | 364 | 293 |
Other administrative expenses | 2,031 | 2,851 | 1,871 |
Total | 13,830 | 14,295 | 12,689 |
Audit and tax services | |||
Audit fees and audit-related fees | 103 | 88 | 72 |
Tax fees | 1 | 1 | |
Total | 103 | 89 | 73 |
Audit-related fees | $ 26 | $ 7 | $ 14 |
Gains_(losses) on disposal of_3
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) | |||
Gains of disposal of tangible assets | $ 16 | $ 7 | $ 6 |
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) | $ 16 | $ 7 | $ 6 |
Other disclosures - Remaining m
Other disclosures - Remaining maturity periods (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Cash and balances with the Central Bank | $ 65,207 | $ 55,310 | ||
Financial assets at fair value through profit or loss | 268,127 | 267,524 | ||
Other financial assets at fair value through profit or loss | 79,927 | 107,425 | ||
Financial assets at fair value through other comprehensive income | 236,980 | 155,789 | ||
Financial assets at amortized cost | 747,823 | 766,225 | ||
Fair value of hedging derivative assets | 9,256 | 9,285 | ||
Total financial assets | 1,407,320 | 1,361,558 | ||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 153,600 | 182,646 | ||
Other financial liabilities designated at fair value through profit or loss | 273,725 | 178,265 | ||
Financial liabilities at amortized cost | 864,266 | 890,284 | ||
Hedging derivatives | 7,523 | 8,393 | ||
Total financial liabilities | 1,299,114 | 1,259,588 | ||
Difference (assets less liabilities) | 108,206 | 101,970 | ||
On demand | ||||
ASSETS | ||||
Cash and balances with the Central Bank | 25,793 | 25,080 | ||
Total financial assets | 40,884 | 37,152 | ||
LIABILITIES AND EQUITY | ||||
Total financial liabilities | 453,345 | 461,536 | ||
Difference (assets less liabilities) | (412,461) | (424,384) | ||
1 month | ||||
ASSETS | ||||
Cash and balances with the Central Bank | 11,320 | 2,136 | ||
Fair value of hedging derivative assets | 1,906 | 2,332 | ||
Total financial assets | 244,549 | 267,346 | ||
LIABILITIES AND EQUITY | ||||
Hedging derivatives | 1 | 39 | ||
Total financial liabilities | 439,952 | 408,328 | ||
Difference (assets less liabilities) | (195,403) | (140,982) | ||
3 months | ||||
ASSETS | ||||
Fair value of hedging derivative assets | 192 | |||
Total financial assets | 89,817 | 79,718 | ||
LIABILITIES AND EQUITY | ||||
Hedging derivatives | 8 | 39 | ||
Total financial liabilities | 64,357 | 55,805 | ||
Difference (assets less liabilities) | 25,460 | 23,913 | ||
3 to 12 months | ||||
ASSETS | ||||
Fair value of hedging derivative assets | 304 | 186 | ||
Total financial assets | 184,299 | 221,797 | ||
LIABILITIES AND EQUITY | ||||
Hedging derivatives | 897 | 416 | ||
Total financial liabilities | 111,335 | 89,071 | ||
Difference (assets less liabilities) | 72,964 | 132,726 | ||
1 to 3 years | ||||
ASSETS | ||||
Fair value of hedging derivative assets | 5,658 | 2,046 | ||
Total financial assets | 318,438 | 294,489 | ||
LIABILITIES AND EQUITY | ||||
Hedging derivatives | 488 | 1,460 | ||
Total financial liabilities | 73,009 | 54,372 | ||
Difference (assets less liabilities) | 245,429 | 240,117 | ||
3 to 5 years | ||||
ASSETS | ||||
Fair value of hedging derivative assets | 758 | 4,677 | ||
Total financial assets | 188,633 | 160,968 | ||
LIABILITIES AND EQUITY | ||||
Hedging derivatives | 1,885 | 2,350 | ||
Total financial liabilities | 41,277 | 70,241 | ||
Difference (assets less liabilities) | 147,356 | 90,727 | ||
More than five years | ||||
ASSETS | ||||
Cash and balances with the Central Bank | 28,094 | 28,094 | ||
Fair value of hedging derivative assets | 438 | 44 | ||
Total financial assets | 340,700 | 300,088 | ||
LIABILITIES AND EQUITY | ||||
Hedging derivatives | 4,244 | 4,089 | ||
Total financial liabilities | 115,839 | 120,235 | ||
Difference (assets less liabilities) | 224,861 | 179,853 | ||
Loans and advances - Credit institutions | ||||
ASSETS | ||||
Other financial assets at fair value through profit or loss | 54,138 | 98,332 | ||
Financial assets at amortized cost | 36,895 | 47,034 | ||
Total financial assets | 91,033 | 145,366 | ||
Loans and advances - Credit institutions | 1 month | ||||
ASSETS | ||||
Other financial assets at fair value through profit or loss | 54,138 | 98,332 | ||
Financial assets at amortized cost | 36,895 | 47,034 | ||
Loans and advances - Customers | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 9,093 | |||
Other financial assets at fair value through profit or loss | 25,789 | 9,093 | ||
Financial assets at fair value through other comprehensive income | 2,875 | 771 | ||
Financial assets at amortized cost | 699,671 | 666,772 | ||
Total financial assets | 728,335 | 676,636 | ||
Loans and advances - Customers | On demand | ||||
ASSETS | ||||
Financial assets at amortized cost | 8,930 | 9,257 | ||
Loans and advances - Customers | 1 month | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 9,093 | |||
Other financial assets at fair value through profit or loss | 25,789 | |||
Financial assets at fair value through other comprehensive income | 71 | 7 | ||
Financial assets at amortized cost | 72,144 | 42,431 | ||
Loans and advances - Customers | 3 months | ||||
ASSETS | ||||
Financial assets at fair value through other comprehensive income | 71 | 13 | ||
Financial assets at amortized cost | 67,861 | 68,276 | ||
Loans and advances - Customers | 3 to 12 months | ||||
ASSETS | ||||
Financial assets at fair value through other comprehensive income | 713 | 58 | ||
Financial assets at amortized cost | 127,842 | 139,392 | ||
Loans and advances - Customers | 1 to 3 years | ||||
ASSETS | ||||
Financial assets at fair value through other comprehensive income | 571 | 155 | ||
Financial assets at amortized cost | 196,079 | 180,792 | ||
Loans and advances - Customers | 3 to 5 years | ||||
ASSETS | ||||
Financial assets at fair value through other comprehensive income | 1,449 | 155 | ||
Financial assets at amortized cost | 81,576 | 88,697 | ||
Loans and advances - Customers | More than five years | ||||
ASSETS | ||||
Financial assets at fair value through other comprehensive income | 383 | |||
Financial assets at amortized cost | 145,239 | 137,927 | ||
Debt instruments. | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 110,613 | 110,222 | ||
Financial assets at fair value through other comprehensive income | 233,463 | 154,483 | ||
Financial assets at amortized cost | 11,257 | 52,419 | ||
Total financial assets | 355,333 | 317,124 | ||
Debt instruments. | 1 month | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 6,917 | 17,102 | ||
Financial assets at fair value through other comprehensive income | 31,817 | 48,280 | ||
Debt instruments. | 3 months | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 18,473 | 3,200 | ||
Financial assets at fair value through other comprehensive income | 1,961 | |||
Debt instruments. | 3 to 12 months | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 40,045 | 27,649 | ||
Financial assets at fair value through other comprehensive income | 4,713 | 3,304 | ||
Financial assets at amortized cost | 41,426 | |||
Debt instruments. | 1 to 3 years | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 26,379 | 26,266 | ||
Financial assets at fair value through other comprehensive income | 59,836 | 60,140 | ||
Financial assets at amortized cost | 1,607 | |||
Debt instruments. | 3 to 5 years | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 15,864 | 18,605 | ||
Financial assets at fair value through other comprehensive income | 54,636 | 10,716 | ||
Financial assets at amortized cost | 1,485 | |||
Debt instruments. | More than five years | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 2,935 | 17,400 | ||
Financial assets at fair value through other comprehensive income | 82,461 | 30,082 | ||
Financial assets at amortized cost | 9,650 | 9,508 | ||
Equity instruments. | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 5,767 | 2,349 | ||
Financial assets at fair value through other comprehensive income | 642 | 535 | $ 795 | |
Available-for-sale financial assets | $ 795 | $ 326 | ||
Total financial assets | 6,409 | 2,884 | ||
Equity instruments. | On demand | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 5,767 | 2,349 | ||
Equity instruments. | More than five years | ||||
ASSETS | ||||
Financial assets at fair value through other comprehensive income | 642 | 535 | ||
Trading derivative assets | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 151,747 | 154,953 | ||
Trading derivative assets | On demand | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 394 | 466 | ||
Trading derivative assets | 1 month | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 3,552 | 599 | ||
Trading derivative assets | 3 months | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 3,220 | 6,268 | ||
Trading derivative assets | 3 to 12 months | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 10,682 | 9,782 | ||
Trading derivative assets | 1 to 3 years | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 28,308 | 25,090 | ||
Trading derivative assets | 3 to 5 years | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 34,350 | 36,633 | ||
Trading derivative assets | More than five years | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 71,241 | 76,115 | ||
Trading derivative liabilities | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 144,481 | 153,727 | ||
Trading derivative liabilities | On demand | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 395 | 220 | ||
Trading derivative liabilities | 1 month | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 3,183 | 1,978 | ||
Trading derivative liabilities | 3 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 3,457 | 4,796 | ||
Trading derivative liabilities | 3 to 12 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 11,185 | 13,137 | ||
Trading derivative liabilities | 1 to 3 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 25,521 | 24,660 | ||
Trading derivative liabilities | 3 to 5 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 36,303 | 35,900 | ||
Trading derivative liabilities | More than five years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 64,437 | 73,036 | ||
Short positions | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 9,119 | 28,919 | ||
Short positions | 1 month | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 8,280 | 28,919 | ||
Short positions | 3 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 47 | |||
Short positions | More than five years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 792 | |||
Deposits - Central banks | ||||
LIABILITIES AND EQUITY | ||||
Other financial liabilities designated at fair value through profit or loss | 111,574 | 30,995 | ||
Deposits - Central banks | 1 month | ||||
LIABILITIES AND EQUITY | ||||
Other financial liabilities designated at fair value through profit or loss | 111,574 | 30,995 | ||
Deposits - Credit institutions | ||||
LIABILITIES AND EQUITY | ||||
Other financial liabilities designated at fair value through profit or loss | 29,689 | 13,801 | ||
Financial liabilities at amortized cost | 72,969 | 94,849 | ||
Deposits - Credit institutions | On demand | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 28,338 | 17,644 | ||
Deposits - Credit institutions | 1 month | ||||
LIABILITIES AND EQUITY | ||||
Other financial liabilities designated at fair value through profit or loss | 29,689 | 13,801 | ||
Financial liabilities at amortized cost | 22,934 | 46,869 | ||
Deposits - Credit institutions | 3 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 8,580 | 5,776 | ||
Deposits - Credit institutions | 3 to 12 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 1,134 | 6,347 | ||
Deposits - Credit institutions | 1 to 3 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 10,374 | 11,219 | ||
Deposits - Credit institutions | 3 to 5 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 57 | 4,488 | ||
Deposits - Credit institutions | More than five years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 1,552 | 2,506 | ||
Deposits - Customers | ||||
LIABILITIES AND EQUITY | ||||
Other financial liabilities designated at fair value through profit or loss | 129,216 | 128,719 | ||
Financial liabilities at amortized cost | 630,055 | 646,089 | ||
Total financial liabilities | 759,271 | 774,808 | ||
Deposits - Customers | On demand | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 424,563 | 443,660 | ||
Deposits - Customers | 1 month | ||||
LIABILITIES AND EQUITY | ||||
Other financial liabilities designated at fair value through profit or loss | 128,634 | 128,719 | ||
Financial liabilities at amortized cost | 106,523 | 115,779 | ||
Deposits - Customers | 3 months | ||||
LIABILITIES AND EQUITY | ||||
Other financial liabilities designated at fair value through profit or loss | 582 | |||
Financial liabilities at amortized cost | 36,512 | 33,999 | ||
Deposits - Customers | 3 to 12 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 54,805 | 44,727 | ||
Deposits - Customers | 1 to 3 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 3,858 | 3,685 | ||
Deposits - Customers | 3 to 5 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 3,032 | 3,565 | ||
Deposits - Customers | More than five years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 762 | 674 | ||
Customer deposits - Repurchase agreements | ||||
LIABILITIES AND EQUITY | ||||
Other financial liabilities designated at fair value through profit or loss | 129,216 | 128,719 | ||
Debt instruments | ||||
LIABILITIES AND EQUITY | ||||
Other financial liabilities designated at fair value through profit or loss | 3,246 | 4,750 | ||
Financial liabilities at amortized cost | 111,211 | 98,312 | ||
Total financial liabilities | 114,457 | 103,062 | ||
Debt instruments | 1 month | ||||
LIABILITIES AND EQUITY | ||||
Other financial liabilities designated at fair value through profit or loss | 3,191 | |||
Financial liabilities at amortized cost | 19,412 | 30,249 | ||
Debt instruments | 3 months | ||||
LIABILITIES AND EQUITY | ||||
Other financial liabilities designated at fair value through profit or loss | 263 | 182 | ||
Financial liabilities at amortized cost | 13,464 | 7,375 | ||
Debt instruments | 3 to 12 months | ||||
LIABILITIES AND EQUITY | ||||
Other financial liabilities designated at fair value through profit or loss | 2,119 | 1,063 | ||
Financial liabilities at amortized cost | 36,430 | 21,437 | ||
Debt instruments | 1 to 3 years | ||||
LIABILITIES AND EQUITY | ||||
Other financial liabilities designated at fair value through profit or loss | 864 | 314 | ||
Financial liabilities at amortized cost | 31,755 | 12,200 | ||
Debt instruments | 3 to 5 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 23,936 | |||
Debt instruments | More than five years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 10,150 | 3,115 | ||
Subordinated liabilities | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 34,267 | 37,228 | ||
Subordinated liabilities | 1 month | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 413 | |||
Subordinated liabilities | 3 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 365 | |||
Subordinated liabilities | More than five years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 33,902 | 36,815 | ||
Other financial liabilities | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 15,764 | 13,806 | ||
Other financial liabilities | On demand | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 49 | 12 | ||
Other financial liabilities | 1 month | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 9,722 | 7,376 | ||
Other financial liabilities | 3 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 1,079 | 3,638 | ||
Other financial liabilities | 3 to 12 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 4,765 | 1,944 | ||
Other financial liabilities | 1 to 3 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | $ 149 | 834 | ||
Other financial liabilities | 3 to 5 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | $ 2 |
Other disclosures - Undiscounte
Other disclosures - Undiscounted contractual maturity periods (Details) - Financial liabilities at amortized cost - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | $ 921,489 | $ 948,903 |
On demand | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 452,950 | 461,316 |
1 month | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 160,873 | 202,926 |
3 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 63,737 | 54,202 |
3 to 12 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 109,694 | 85,457 |
1 to 3 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 59,612 | 41,989 |
3 to 5 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 9,879 | 42,185 |
More than five years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 64,744 | 60,828 |
Deposits - Credit institutions | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 78,311 | 103,960 |
Deposits - Credit institutions | On demand | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 28,338 | 17,644 |
Deposits - Credit institutions | 1 month | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 23,211 | 47,340 |
Deposits - Credit institutions | 3 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 8,991 | 6,320 |
Deposits - Credit institutions | 3 to 12 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 2,142 | 8,176 |
Deposits - Credit institutions | 1 to 3 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 12,218 | 13,969 |
Deposits - Credit institutions | 3 to 5 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 305 | 5,545 |
Deposits - Credit institutions | More than five years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 3,106 | 4,966 |
Deposits - Customers | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 639,395 | 653,941 |
Deposits - Customers | On demand | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 424,563 | 443,660 |
Deposits - Customers | 1 month | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 107,681 | 116,799 |
Deposits - Customers | 3 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 38,195 | 35,325 |
Deposits - Customers | 3 to 12 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 59,092 | 48,013 |
Deposits - Customers | 1 to 3 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 5,015 | 4,858 |
Deposits - Customers | 3 to 5 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 3,616 | 4,205 |
Deposits - Customers | More than five years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 1,233 | 1,081 |
Debt instruments | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 130,087 | 113,953 |
Debt instruments | 1 month | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 20,071 | 30,795 |
Debt instruments | 3 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 15,096 | 8,512 |
Debt instruments | 3 to 12 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 42,001 | 25,493 |
Debt instruments | 1 to 3 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 37,716 | 17,446 |
Debt instruments | 3 to 5 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 1,444 | 27,551 |
Debt instruments | More than five years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 13,759 | 4,156 |
Subordinated liabilities | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 57,932 | 63,243 |
Subordinated liabilities | 1 month | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 188 | 616 |
Subordinated liabilities | 3 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 376 | 407 |
Subordinated liabilities | 3 to 12 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 1,694 | 1,831 |
Subordinated liabilities | 1 to 3 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 4,514 | 4,882 |
Subordinated liabilities | 3 to 5 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 4,514 | 4,882 |
Subordinated liabilities | More than five years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 46,646 | 50,625 |
Other financial liabilities | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 15,764 | 13,806 |
Other financial liabilities | On demand | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 49 | 12 |
Other financial liabilities | 1 month | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 9,722 | 7,376 |
Other financial liabilities | 3 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 1,079 | 3,638 |
Other financial liabilities | 3 to 12 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 4,765 | 1,944 |
Other financial liabilities | 1 to 3 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | $ 149 | 834 |
Other financial liabilities | 3 to 5 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | $ 2 |
Other disclosures - Foreign cur
Other disclosures - Foreign currency balances (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Foreign currency balances | |||
Assets. | $ 1,467,548 | $ 1,408,724 | $ 1,329,191 |
Liabilities | 1,332,750 | 1,285,437 | $ 1,213,781 |
Debt instruments | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 25,224 | 26,987 | |
Subordinated liabilities | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 34,300 | 37,268 | |
Derivative financial liabilities | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 50,335 | 27,924 | |
Deposits - Credit institutions | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 18,628 | 13,806 | |
Deposits - Customers | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 81,637 | 110,273 | |
Other financial liabilities | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 1,306 | 2,752 | |
Other Liabilities | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 1,942 | 1,501 | |
Cash and balances with the Central Bank | Foreign currency | |||
Foreign currency balances | |||
Assets. | 4,254 | 3,637 | |
Debt instruments. | Foreign currency | |||
Foreign currency balances | |||
Assets. | 112,201 | 89,872 | |
Loans and advances - Credit institutions | Foreign currency | |||
Foreign currency balances | |||
Assets. | 17,765 | 44,957 | |
Loans and advances - Customers | Foreign currency | |||
Foreign currency balances | |||
Assets. | 68,653 | 70,957 | |
Other assets Member | Foreign currency | |||
Foreign currency balances | |||
Assets. | $ 2,701 | $ 628 |
Other disclosures - Financial a
Other disclosures - Financial assets measured at other than fair value (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets | ||
Financial assets | $ 1,407,320 | $ 1,361,558 |
Loans and advances - Credit institutions | ||
Financial assets | ||
Financial assets | 91,033 | 145,366 |
Loans and advances - Customers | ||
Financial assets | ||
Financial assets | 728,335 | 676,636 |
Debt instruments. | ||
Financial assets | ||
Financial assets | 355,333 | 317,124 |
Financial assets at amortized cost category | Balances with the Central Bank | ||
Financial assets | ||
Financial assets, fair value | 39,417 | 30,230 |
Financial assets | 39,414 | 30,230 |
Financial assets at amortized cost category | Loans and advances - Credit institutions | ||
Financial assets | ||
Financial assets, fair value | 36,762 | 47,002 |
Financial assets | 36,895 | 47,034 |
Financial assets at amortized cost category | Loans and advances - Customers | ||
Financial assets | ||
Financial assets, fair value | 730,226 | 641,681 |
Financial assets | 699,671 | 666,772 |
Financial assets at amortized cost category | Debt instruments. | ||
Financial assets | ||
Financial assets, fair value | 11,257 | 51,093 |
Financial assets | 11,257 | 52,419 |
Level 1 | Financial assets at amortized cost category | Balances with the Central Bank | ||
Financial assets | ||
Financial assets, fair value | 39,417 | 30,230 |
Level 1 | Financial assets at amortized cost category | Debt instruments. | ||
Financial assets | ||
Financial assets, fair value | 40,063 | |
Level 2 | Financial assets at amortized cost category | Loans and advances - Credit institutions | ||
Financial assets | ||
Financial assets, fair value | 21,616 | 28,839 |
Level 2 | Financial assets at amortized cost category | Loans and advances - Customers | ||
Financial assets | ||
Financial assets, fair value | 2,892 | 6,339 |
Level 2 | Financial assets at amortized cost category | Debt instruments. | ||
Financial assets | ||
Financial assets, fair value | 11,257 | 11,030 |
Level 3 | Financial assets at amortized cost category | Loans and advances - Credit institutions | ||
Financial assets | ||
Financial assets, fair value | 15,146 | 18,163 |
Level 3 | Financial assets at amortized cost category | Loans and advances - Customers | ||
Financial assets | ||
Financial assets, fair value | $ 727,334 | $ 635,342 |
Other disclosures - Financial l
Other disclosures - Financial liabilities measured at other than fair value (Details) $ in Millions, $ in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018MXN ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017MXN ($) |
Financial liabilities | ||||||
Financial liabilities | $ 1,299,114 | $ 1,259,588 | ||||
Deposits - Customers | ||||||
Financial liabilities | ||||||
Financial liabilities | 759,271 | 774,808 | ||||
Debt instruments | ||||||
Financial liabilities | ||||||
Financial liabilities | 114,457 | 103,062 | ||||
Financial liabilities at amortized cost | Deposits - Credit institutions | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 72,654 | 93,297 | ||||
Financial liabilities | 72,969 | 94,849 | ||||
Financial liabilities at amortized cost | Deposits - Customers | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 629,684 | 647,451 | ||||
Financial liabilities | 630,055 | 646,089 | ||||
Financial liabilities at amortized cost | Debt instruments | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 111,342 | 98,053 | ||||
Financial liabilities | 111,211 | 98,312 | $ 85,792 | |||
Financial liabilities at amortized cost | Subordinated liabilities | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 36,555 | 37,609 | ||||
Financial liabilities | $ 1,816 | 34,267 | $ 1,894 | 37,228 | $ 1,825 | $ 35,885 |
Financial liabilities at amortized cost | Other financial liabilities | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 15,760 | 13,804 | ||||
Financial liabilities | 15,764 | 13,806 | ||||
Level 1 | Financial liabilities at amortized cost | Debt instruments | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 111,342 | 98,053 | ||||
Level 1 | Financial liabilities at amortized cost | Subordinated liabilities | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 36,555 | 37,609 | ||||
Level 1 | Financial liabilities at amortized cost | Other financial liabilities | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 15,760 | 13,804 | ||||
Level 2 | Financial liabilities at amortized cost | Deposits - Credit institutions | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 65,382 | 89,298 | ||||
Level 2 | Financial liabilities at amortized cost | Deposits - Customers | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 629,684 | 647,451 | ||||
Level 3 | Financial liabilities at amortized cost | Deposits - Credit institutions | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | $ 7,272 | $ 3,999 |
Other disclosures - Restriction
Other disclosures - Restrictions (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other disclosures | ||
Legal reserve | $ 12,971 | $ 11,080 |
Legal reserve on individual basis | $ 9,616 | $ 8,086 |
Operating Segment (Details)
Operating Segment (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019MXN ($)segment | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | |
Operating segments | |||
Number of segments | segment | 3 | ||
Income statement and other significant data | |||
Net interest income | $ 66,156 | $ 61,997 | $ 55,844 |
Dividend income | 235 | 210 | 150 |
Net fee and commission income (expense) | 16,424 | 15,722 | 14,813 |
Gains/(losses) on financial assets and liabilities and exchange differences (net) | 2,854 | 1,484 | 3,464 |
Other operating income (expenses) | (3,592) | (3,645) | (2,945) |
TOTAL INCOME | 82,077 | 75,768 | 71,326 |
Administrative expenses | (29,258) | (28,649) | (25,437) |
Depreciation and amortization | (5,222) | (2,973) | (2,533) |
Impairment losses on financial assets (net) | (19,220) | (18,810) | (18,820) |
Impairment losses on other assets (net) | (370) | (5) | |
Provisions (net) | (775) | (562) | (437) |
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) | 16 | 7 | 6 |
Gains/(losses) on disposal of non-current assets not classified as discontinued operations | 42 | 38 | 69 |
OPERATING PROFIT BEFORE TAX | 27,290 | 24,814 | 24,174 |
Tax income | (6,909) | (5,458) | (5,496) |
PROFIT FOR THE YEAR | 20,381 | 19,356 | 18,678 |
Profit attributable to the Parent | 20,381 | 19,353 | 18,678 |
Profit for the year attributable to non-controlling interests | 3 | ||
Total assets | 1,467,548 | 1,408,724 | 1,329,191 |
Total liabilities | 1,332,750 | 1,285,437 | 1,213,781 |
Retail Banking | |||
Income statement and other significant data | |||
Net interest income | 59,008 | 54,005 | 47,969 |
Net fee and commission income (expense) | 15,014 | 14,181 | 13,047 |
Gains/(losses) on financial assets and liabilities and exchange differences (net) | 1,155 | 1,086 | 786 |
Other operating income (expenses) | (2,389) | (2,561) | (2,136) |
TOTAL INCOME | 72,788 | 66,711 | 59,666 |
Administrative expenses | (25,064) | (24,574) | (22,377) |
Depreciation and amortization | (4,827) | (2,769) | (2,317) |
Impairment losses on financial assets (net) | (18,986) | (17,813) | (17,763) |
Impairment losses on other assets (net) | (370) | ||
Provisions (net) | (165) | 178 | (98) |
OPERATING PROFIT BEFORE TAX | 23,376 | 21,733 | 17,111 |
Total assets | 628,380 | 599,270 | 551,250 |
Total liabilities | 618,477 | 567,829 | 521,787 |
Global Corporate Banking | |||
Income statement and other significant data | |||
Net interest income | 6,638 | ||
Dividend income | 44 | ||
Net fee and commission income (expense) | 1,596 | ||
Gains/(losses) on financial assets and liabilities and exchange differences (net) | 1,417 | ||
Other operating income (expenses) | (690) | ||
TOTAL INCOME | 9,005 | ||
Administrative expenses | (3,604) | ||
Depreciation and amortization | (381) | ||
Impairment losses on financial assets (net) | (234) | ||
Provisions (net) | (1) | ||
OPERATING PROFIT BEFORE TAX | 4,785 | ||
Total assets | 529,901 | ||
Total liabilities | 509,204 | ||
Corporate and Investment Banking | |||
Income statement and other significant data | |||
Net interest income | 6,121 | 5,295 | |
Dividend income | 34 | 5 | |
Net fee and commission income (expense) | 1,700 | 1,758 | |
Gains/(losses) on financial assets and liabilities and exchange differences (net) | 689 | 2,532 | |
Other operating income (expenses) | (672) | (505) | |
TOTAL INCOME | 7,872 | 9,085 | |
Administrative expenses | (3,530) | (2,759) | |
Depreciation and amortization | (200) | (204) | |
Impairment losses on financial assets (net) | (997) | (1,057) | |
Provisions (net) | 10 | 20 | |
OPERATING PROFIT BEFORE TAX | 3,155 | 5,085 | |
Total assets | 547,006 | 531,295 | |
Total liabilities | 486,372 | 521,284 | |
Corporate Activities | |||
Income statement and other significant data | |||
Net interest income | 510 | 1,871 | 2,580 |
Dividend income | 191 | 176 | 145 |
Net fee and commission income (expense) | (186) | (159) | 8 |
Gains/(losses) on financial assets and liabilities and exchange differences (net) | 282 | (291) | 146 |
Other operating income (expenses) | (513) | (412) | (304) |
TOTAL INCOME | 284 | 1,185 | 2,575 |
Administrative expenses | (590) | (545) | (301) |
Depreciation and amortization | (14) | (4) | (12) |
Impairment losses on other assets (net) | (5) | ||
Provisions (net) | (609) | (750) | (359) |
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) | 16 | 7 | 6 |
Gains/(losses) on disposal of non-current assets not classified as discontinued operations | 42 | 38 | 69 |
OPERATING PROFIT BEFORE TAX | (871) | (74) | 1,978 |
Total assets | 309,267 | 262,448 | 246,646 |
Total liabilities | $ 205,069 | $ 231,236 | $ 170,710 |
Related-party transactions - As
Related-party transactions - Assets (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Banco Santander, S.A. (Spain) | Trading derivative assets | ||
Related-party transactions | ||
Financial assets at fair value through profit or loss | $ 60,737 | $ 69,178 |
Banco Santander, S.A. (Spain) | Loans and advances - Credit institutions | ||
Related-party transactions | ||
Other financial assets at fair value through profit or loss | 13,127 | |
Financial assets at amortised cost | 11,334 | 3,472 |
Banco Santander (Chile) | Trading derivative assets | ||
Related-party transactions | ||
Financial assets at fair value through profit or loss | 138 | |
Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander Mexico | Loans and advances - Customers | ||
Related-party transactions | ||
Other financial assets at fair value through profit or loss | 1,915 | 2,178 |
Santander Tecnologia Mexico, S.A. de C.V. (formerly Isban Mexico, S.A. de C.V.) | ||
Related-party transactions | ||
Other intangible assets | 4,120 | 3,403 |
Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informaticos Generales, S.L | ||
Related-party transactions | ||
Other intangible assets | 809 | 864 |
Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informaticos Generales, S.L | Loans and advances - Customers | ||
Related-party transactions | ||
Financial assets at amortised cost | 1,687 | 1,745 |
Santander Capital Structuring S.A. de C.V. | Loans and advances - Customers | ||
Related-party transactions | ||
Financial assets at amortised cost | 2,204 | 1,296 |
Santander Back-Offices Globales Mayoristas, S.A. | ||
Related-party transactions | ||
Other intangible assets | 78 | 78 |
Santander Digital Assets, S.L. | ||
Related-party transactions | ||
Other assets | 53 | |
SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversion | ||
Related-party transactions | ||
Other assets | 163 | 153 |
Zurich Santander Seguros Mexico, S.A. | ||
Related-party transactions | ||
Other assets | 1,278 | 1,108 |
Isban Brasil Sa [Member] | ||
Related-party transactions | ||
Other intangible assets | 11 | 11 |
Other related parties [member] | ||
Related-party transactions | ||
Other assets | 65 | 63 |
Other related parties [member] | Trading derivative assets | ||
Related-party transactions | ||
Financial assets at fair value through profit or loss | 9 | |
Bank's directors and senior managers | Loans and advances - Customers | ||
Related-party transactions | ||
Financial assets at amortised cost | $ 2,992 | $ 2,430 |
Related-party transactions - Li
Related-party transactions - Liabilities (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Banco Santander, S.A. (Spain) | Trading derivative liabilities | ||
Related-party transactions | ||
Financial liabilities at fair value through profit or loss | $ 51,998 | $ 37,082 |
Banco Santander, S.A. (Spain) | Deposits - Credit institutions | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 10,598 | 34,525 |
Banco Santander, S.A. (Spain) | Subordinated liabilities | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 26,987 | 28,109 |
Banco Santander, S.A. (Spain) | Debt instruments | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 930 | 969 |
Banco Santander, S.A. (Spain) | Other financial liabilities | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 656 | 686 |
Banco Santander International | Trading derivative liabilities | ||
Related-party transactions | ||
Financial liabilities at fair value through profit or loss | 3 | |
Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander Mexico | Deposits - Customers | ||
Related-party transactions | ||
Other financial liabilities at fair value through profit or loss | 5,010 | 9,270 |
Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander Mexico | Other financial liabilities | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 90 | 37 |
Banco S3 Mexico, SA, Institucion de Banca Multiple | ||
Related-party transactions | ||
Other liabilities | 58 | 43 |
Grupo Financiero Santander Mexico, S.A. de C.V. | Deposits - Customers | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 18 | |
Banco Santander (Brazil) | Deposits - Credit institutions | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 213 | |
Operadora de Carteras Gamma, S.A.P.I. de C.V. | Deposits - Customers | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 73 | 153 |
Santander Global Facilities, S.A. de C.V. | Deposits - Customers | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 411 | 335 |
Santander Global Facilities, S.A. de C.V. | Other financial liabilities | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 493 | 408 |
Servicios de Cobranza, Recuperacion y Seguimiento, S.A. de C.V. | Deposits - Customers | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 35 | 49 |
Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informaticos Generales, S.L | ||
Related-party transactions | ||
Other liabilities | 972 | 128 |
Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informaticos Generales, S.L | Deposits - Customers | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 445 | 377 |
Santander Capital Structuring S.A. de C.V. | Deposits - Customers | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 217 | 379 |
Santander Back-Offices Globales Mayoristas, S.A. | ||
Related-party transactions | ||
Other liabilities | 16 | |
Other related parties [member] | ||
Related-party transactions | ||
Other liabilities | 11 | 4 |
Other related parties [member] | Trading derivative liabilities | ||
Related-party transactions | ||
Financial liabilities at fair value through profit or loss | 2 | |
Other related parties [member] | Deposits - Customers | ||
Related-party transactions | ||
Other financial liabilities at fair value through profit or loss | 18 | 17 |
Financial liabilities at amortised cost | 1,057 | 1,350 |
Other related parties [member] | Deposits - Credit institutions | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 84 | 87 |
Other related parties [member] | Debt instruments | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 29 | 11 |
Other related parties [member] | Other financial liabilities | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 61 | 56 |
Bank's directors and senior managers | Deposits - Customers | ||
Related-party transactions | ||
Financial liabilities at amortised cost | $ 940 | $ 1,112 |
Related-party transactions - In
Related-party transactions - Income Statement (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Banco Santander, S.A. (Spain) | |||
Related-party transactions | |||
Interest income | $ 22 | $ 144 | |
Interest expenses and similar charges | 1,536 | 1,765 | $ 1,440 |
Fee and commission income | 12 | 6 | 7 |
Fee and commission expense | 2 | 2 | 15 |
Gains/(losses) on financial assets and liabilities (net) | (19,135) | 2,145 | (4,346) |
Administrative expenses | 398 | 335 | 66 |
Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informaticos Generales, S.L | |||
Related-party transactions | |||
Interest income | 112 | 107 | 86 |
Other operating income | 69 | 62 | |
Administrative expenses | 2,147 | 1,804 | 1,601 |
Santander Investment Securities Inc. | |||
Related-party transactions | |||
Fee and commission income | 6 | 10 | |
Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander Mexico | |||
Related-party transactions | |||
Interest income | 91 | 127 | 95 |
Interest expenses and similar charges | 669 | 1,824 | 1,449 |
Fee and commission income | 115 | 292 | |
Fee and commission expense | 31 | ||
Other operating income | 53 | 113 | 28 |
Administrative expenses | 88 | ||
Zurich Santander Seguros Mexico, S.A. | |||
Related-party transactions | |||
Fee and commission income | 4,986 | 4,645 | 4,219 |
SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversion | |||
Related-party transactions | |||
Fee and commission income | 1,567 | 1,564 | 1,585 |
Fee and commission expense | 14 | 16 | 66 |
Grupo Financiero Santander Mexico, S.A. de C.V. | |||
Related-party transactions | |||
Interest expenses and similar charges | 16 | ||
Banco S3 Mexico, SA, Institucion de Banca Multiple | |||
Related-party transactions | |||
Interest expenses and similar charges | 37 | 44 | 12 |
Servicios de Cobranza, Recuperacion y Seguimiento, S.A. de C.V. | |||
Related-party transactions | |||
Interest expenses and similar charges | 7 | 7 | |
Fee and commission expense | 105 | 60 | |
Administrative expenses | 7 | 119 | |
Santander Global Facilities, S.A. de C.V. | |||
Related-party transactions | |||
Interest expenses and similar charges | 38 | 32 | 28 |
Fee and commission expense | 161 | 15 | |
Other operating income | 37 | 44 | 46 |
Administrative expenses | 368 | 517 | 366 |
Banco Santander (Chile) | |||
Related-party transactions | |||
Gains/(losses) on financial assets and liabilities (net) | 134 | ||
Abbey National Treasury Services plc | |||
Related-party transactions | |||
Gains/(losses) on financial assets and liabilities (net) | 56 | (739) | |
Santander Digital Assets, S.L. | |||
Related-party transactions | |||
Other operating income | 62 | ||
Ingenieria De Software Bancario S.L. | |||
Related-party transactions | |||
Administrative expenses | 165 | ||
Gesban Mexico Servicios Administrativos Globales, S.A. de C.V. | |||
Related-party transactions | |||
Administrative expenses | 59 | 54 | 53 |
Santander Back-Offices Globales Mayoristas, S.A. | |||
Related-party transactions | |||
Administrative expenses | 49 | 47 | 61 |
Universia Mexico, S.A. de C.V. | |||
Related-party transactions | |||
Administrative expenses | 22 | ||
Geoban, S.A. | |||
Related-party transactions | |||
Administrative expenses | 60 | 75 | 77 |
Santander Tecnologia Mexico, S.A. de C.V. (formerly Isban Mexico, S.A. de C.V.) | |||
Related-party transactions | |||
Interest expenses and similar charges | 28 | ||
Administrative expenses | 188 | ||
Santander Capital Structuring S.A. de C.V. | |||
Related-party transactions | |||
Interest income | 164 | 120 | |
Aquanima Mexico, S. de R.L. de C.V. | |||
Related-party transactions | |||
Administrative expenses | 71 | 53 | 45 |
Other related parties [member] | |||
Related-party transactions | |||
Interest income | 1 | 1 | 93 |
Interest expenses and similar charges | 39 | 45 | 35 |
Fee and commission income | 39 | 9 | |
Fee and commission expense | 8 | ||
Gains/(losses) on financial assets and liabilities (net) | 12 | 19 | 19 |
Other operating income | 44 | 29 | 10 |
Administrative expenses | $ 30 | $ 34 | $ 34 |
Risk management - Concentration
Risk management - Concentration risk (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019MXN ($)customer | Dec. 31, 2018MXN ($)customer | |
Concentration of risk | ||
Financing granted in excess of Basic Capital threshold | $ 0 | $ 0 |
Bank Capital, threshold percentage | 10.00% | 10.00% |
Credit risk | ||
Concentration of risk | ||
Number of main debtors representing a joint risk | customer | 3 | 3 |
Concentration of credit risk | $ 40,935 | $ 33,160 |
Concentration risk, percentage of Basic Capital | 40.84% | 35.30% |
Risk management - Trading Marke
Risk management - Trading Market Risk (Details) - Trading market risk - item | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Methodologies | |||
Confidence level, percent | 99.00% | 99.00% | 99.00% |
Time frame, historical simulation | 1 day | ||
Time frame from reference date | 2 years | ||
Number of figures calculated daily for VaR | 2 | ||
Number of figures apply an exponential decay factor | 1 | ||
Number of scenarios | 2 | ||
Minimum | |||
Methodologies | |||
Time frame from reference date | 520 days |
Risk management - Trading Mar_2
Risk management - Trading Market Risk - VaR Risks and Results (Details) - MXN ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Main market risk metric | ||||||||||
Total VaR | $ 74 | $ 74 | ||||||||
Minimum | ||||||||||
Main market risk metric | ||||||||||
Total VaR | 26 | 26 | ||||||||
Weighted average | ||||||||||
Main market risk metric | ||||||||||
Total VaR | 66 | 66 | ||||||||
Maximum | ||||||||||
Main market risk metric | ||||||||||
Total VaR | 114 | 114 | ||||||||
Trading market risk | ||||||||||
Main market risk metric | ||||||||||
Average daily Total VaR | 75 | $ 57 | $ 121 | $ 123 | $ 93 | $ 97 | 66 | $ 122 | $ 95 | $ 77 |
Total VaR | 74 | 69 | 129 | 74 | 69 | 129 | ||||
Increase (decrease) in Total VaR | (56) | |||||||||
Risk assumption profile, limit | 256 | 245 | ||||||||
Trading market risk | Minimum | ||||||||||
Main market risk metric | ||||||||||
Average daily Total VaR | 69 | 58 | ||||||||
Total VaR | 42 | 42 | ||||||||
Trading market risk | Weighted average | ||||||||||
Main market risk metric | ||||||||||
Increase (decrease) in Total VaR | 27 | 19 | ||||||||
Trading market risk | Maximum | ||||||||||
Main market risk metric | ||||||||||
Average daily Total VaR | $ 398 | $ 138 | ||||||||
Total VaR | $ 101 | 101 | ||||||||
Risk assumption profile, limit | 301 | |||||||||
Interest rate risk | ||||||||||
Main market risk metric | ||||||||||
Average daily Total VaR | 43 | 110 | 96 | 71 | ||||||
Interest rate risk | Weighted average | ||||||||||
Main market risk metric | ||||||||||
Average daily Total VaR | 96 | |||||||||
Equity price risk | ||||||||||
Main market risk metric | ||||||||||
Average daily Total VaR | 3 | 6 | 5 | 4 | ||||||
Currency risk | ||||||||||
Main market risk metric | ||||||||||
Average daily Total VaR | $ 41 | $ 48 | $ 51 | $ 17 |
Risk management - Calibration a
Risk management - Calibration and test measures (Details) - Trading market risk - item | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Calibration and test measures | |||
Number of conditions met | 2 | ||
Types of backtesting, number | 3 | ||
Number of exceptions to VaR | 1 | 2 | 0 |
Confidence level, percent | 99.00% | 99.00% | 99.00% |
Number of VaE breaks | 1 | 1 | 0 |
Risk management - Structural In
Risk management - Structural Interest Rate Risk (Details) - MXN ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Structural interest rate risk | ||||
Total Balance Sheet Assets | $ 1,407,320 | $ 1,361,558 | ||
Liabilities | (1,299,114) | (1,259,588) | ||
Equity | (134,798) | (123,287) | $ (115,410) | $ (105,227) |
Total Balance Sheet Liabilities | (1,467,548) | (1,408,724) | ||
1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 244,549 | 267,346 | ||
Liabilities | (439,952) | (408,328) | ||
3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 89,817 | 79,718 | ||
Liabilities | (64,357) | (55,805) | ||
1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 318,438 | 294,489 | ||
Liabilities | (73,009) | (54,372) | ||
3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 188,633 | 160,968 | ||
Liabilities | (41,277) | (70,241) | ||
More than five years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 340,700 | 300,088 | ||
Liabilities | (115,839) | (120,235) | ||
Total Shareholders' Equity Attributable to the Parent | ||||
Structural interest rate risk | ||||
Equity | (134,758) | (123,255) | (115,381) | $ (105,172) |
Interest rate risk | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 3,796,981 | 3,747,361 | 1,310,858 | |
Total Balance Sheet Liabilities | (3,647,201) | (3,612,368) | (1,209,837) | |
Total Balance Sheet Gap | 149,780 | 134,993 | 101,021 | |
Total Off-Balance Sheet Gap | (27,704) | (5,070) | (561) | |
Interest rate risk | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 491,701 | 494,996 | 422,412 | |
Total Balance Sheet Liabilities | (422,576) | (346,599) | (650,472) | |
Total Balance Sheet Gap | 69,125 | 148,397 | (228,060) | |
Total Off-Balance Sheet Gap | 93,301 | 27,072 | 31,675 | |
Total Structural Gap | 162,426 | 175,469 | (196,385) | |
Accumulated Gap | 162,426 | 175,469 | (196,385) | |
Interest rate risk | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 62,680 | 55,526 | 79,183 | |
Total Balance Sheet Liabilities | (36,495) | (24,273) | (22,918) | |
Total Balance Sheet Gap | 26,185 | 31,253 | 56,265 | |
Total Off-Balance Sheet Gap | 1,883 | 576 | 2,142 | |
Total Structural Gap | 28,068 | 31,829 | 58,407 | |
Accumulated Gap | 190,494 | 207,298 | (137,978) | |
Interest rate risk | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 35,197 | 36,035 | 66,663 | |
Total Balance Sheet Liabilities | (24,465) | (22,977) | (15,300) | |
Total Balance Sheet Gap | 10,732 | 13,058 | 51,363 | |
Total Off-Balance Sheet Gap | (85) | (1,096) | (2,719) | |
Total Structural Gap | 10,647 | 11,962 | 48,644 | |
Accumulated Gap | 201,141 | 219,260 | (89,334) | |
Interest rate risk | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 62,248 | 95,914 | 30,733 | |
Total Balance Sheet Liabilities | (100,532) | (99,426) | (10,931) | |
Total Balance Sheet Gap | (38,284) | (3,512) | 19,802 | |
Total Off-Balance Sheet Gap | (3,869) | 4,739 | (606) | |
Total Structural Gap | (42,153) | 1,227 | 19,196 | |
Accumulated Gap | 158,988 | 220,487 | (70,138) | |
Interest rate risk | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 194,959 | 177,114 | 163,540 | |
Total Balance Sheet Liabilities | (183,242) | (170,918) | (36,682) | |
Total Balance Sheet Gap | 11,717 | 6,196 | 126,858 | |
Total Off-Balance Sheet Gap | (20,620) | (5,802) | (35) | |
Total Structural Gap | (8,903) | 394 | 126,823 | |
Accumulated Gap | 150,085 | 220,881 | 56,685 | |
Interest rate risk | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 122,796 | 70,121 | 60,241 | |
Total Balance Sheet Liabilities | (27,899) | (60,990) | (35,173) | |
Total Balance Sheet Gap | 94,897 | 9,131 | 25,068 | |
Total Off-Balance Sheet Gap | (14,927) | (3,267) | (6,798) | |
Total Structural Gap | 79,970 | 5,864 | 18,270 | |
Accumulated Gap | 230,055 | 226,745 | 74,955 | |
Interest rate risk | More than five years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 184,250 | 120,912 | 106,599 | |
Total Balance Sheet Liabilities | (126,918) | (108,853) | (2,869) | |
Total Balance Sheet Gap | 57,332 | 12,059 | 103,730 | |
Total Off-Balance Sheet Gap | (83,290) | (27,293) | (24,220) | |
Total Structural Gap | (25,958) | (15,234) | 79,510 | |
Accumulated Gap | 204,097 | 211,511 | 154,465 | |
Interest rate risk | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 2,643,150 | 2,696,742 | 381,489 | |
Total Balance Sheet Liabilities | (2,725,072) | (2,778,333) | (435,493) | |
Total Balance Sheet Gap | (81,922) | (81,591) | (54,004) | |
Total Off-Balance Sheet Gap | (99) | |||
Total Structural Gap | (82,021) | (81,591) | (54,004) | |
Accumulated Gap | 122,076 | 129,920 | 100,461 | |
Interest rate risk | Total Shareholders' Equity Attributable to the Parent | ||||
Structural interest rate risk | ||||
Equity | (138,381) | (125,813) | (116,134) | |
Interest rate risk | Total Shareholders' Equity Attributable to the Parent | Not Sensitive | ||||
Structural interest rate risk | ||||
Equity | (138,381) | (125,813) | (116,134) | |
Interest rate risk | Money Market | ||||
Structural interest rate risk | ||||
Liabilities | (211,629) | (114,421) | (113,294) | |
Interest rate risk | Money Market | 1 month | ||||
Structural interest rate risk | ||||
Liabilities | (105,227) | (27,386) | (20,523) | |
Interest rate risk | Money Market | 3 months | ||||
Structural interest rate risk | ||||
Liabilities | (591) | (89) | (791) | |
Interest rate risk | Money Market | Not Sensitive | ||||
Structural interest rate risk | ||||
Liabilities | (105,810) | (86,945) | (91,981) | |
Interest rate risk | Deposits | ||||
Structural interest rate risk | ||||
Liabilities | (631,480) | (636,907) | (597,248) | |
Interest rate risk | Deposits | 1 month | ||||
Structural interest rate risk | ||||
Liabilities | (238,192) | (253,774) | (567,359) | |
Interest rate risk | Deposits | 3 months | ||||
Structural interest rate risk | ||||
Liabilities | (25,728) | (17,801) | (15,954) | |
Interest rate risk | Deposits | 6 months | ||||
Structural interest rate risk | ||||
Liabilities | (14,968) | (12,984) | (9,378) | |
Interest rate risk | Deposits | 6 - 12 months | ||||
Structural interest rate risk | ||||
Liabilities | (89,071) | (91,065) | (4,535) | |
Interest rate risk | Deposits | 1 to 3 years | ||||
Structural interest rate risk | ||||
Liabilities | (145,780) | (156,158) | (22) | |
Interest rate risk | Deposits | More than five years | ||||
Structural interest rate risk | ||||
Liabilities | (117,741) | (105,126) | ||
Interest rate risk | Long-Term Funding | ||||
Structural interest rate risk | ||||
Liabilities | (207,463) | (207,327) | (184,681) | |
Interest rate risk | Long-Term Funding | 1 month | ||||
Structural interest rate risk | ||||
Liabilities | (79,157) | (65,439) | (62,590) | |
Interest rate risk | Long-Term Funding | 3 months | ||||
Structural interest rate risk | ||||
Liabilities | (10,176) | (6,383) | (6,173) | |
Interest rate risk | Long-Term Funding | 6 months | ||||
Structural interest rate risk | ||||
Liabilities | (9,497) | (9,993) | (5,922) | |
Interest rate risk | Long-Term Funding | 6 - 12 months | ||||
Structural interest rate risk | ||||
Liabilities | (11,461) | (8,361) | (6,396) | |
Interest rate risk | Long-Term Funding | 1 to 3 years | ||||
Structural interest rate risk | ||||
Liabilities | (37,462) | (14,760) | (36,660) | |
Interest rate risk | Long-Term Funding | 3 to 5 years | ||||
Structural interest rate risk | ||||
Liabilities | (27,899) | (60,990) | (35,173) | |
Interest rate risk | Long-Term Funding | More than five years | ||||
Structural interest rate risk | ||||
Liabilities | (9,177) | (3,727) | (2,869) | |
Interest rate risk | Long-Term Funding | Not Sensitive | ||||
Structural interest rate risk | ||||
Liabilities | (22,633) | (37,675) | (28,898) | |
Interest rate risk | Other Liabilities | ||||
Structural interest rate risk | ||||
Liabilities | (2,458,248) | (2,527,900) | (198,480) | |
Interest rate risk | Other Liabilities | Not Sensitive | ||||
Structural interest rate risk | ||||
Liabilities | (2,458,248) | (2,527,900) | (198,480) | |
Interest rate risk | Money Market | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 84,372 | 101,353 | 80,851 | |
Interest rate risk | Money Market | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 33,396 | 35,304 | 41,236 | |
Interest rate risk | Money Market | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 4,299 | |||
Interest rate risk | Money Market | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 1,714 | 11 | ||
Interest rate risk | Money Market | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 393 | 11 | ||
Interest rate risk | Money Market | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 29 | 52 | 41 | |
Interest rate risk | Money Market | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 10 | |||
Interest rate risk | Money Market | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 44,540 | 65,997 | 39,543 | |
Interest rate risk | Loans and advances | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 828,076 | 789,010 | 697,027 | |
Interest rate risk | Loans and advances | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 415,078 | 400,172 | 357,785 | |
Interest rate risk | Loans and advances | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 48,155 | 44,475 | 62,290 | |
Interest rate risk | Loans and advances | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 29,078 | 27,446 | 27,359 | |
Interest rate risk | Loans and advances | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 54,722 | 51,727 | 28,877 | |
Interest rate risk | Loans and advances | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 125,650 | 119,014 | 99,802 | |
Interest rate risk | Loans and advances | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 60,560 | 56,923 | 45,376 | |
Interest rate risk | Loans and advances | More than five years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 95,727 | 90,388 | 75,518 | |
Interest rate risk | Loans and advances | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | (895) | (1,135) | 20 | |
Interest rate risk | Intragroup | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 2,391 | (226) | (72) | |
Interest rate risk | Intragroup | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 2,391 | (226) | (72) | |
Interest rate risk | Securities | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 399,818 | 351,755 | 346,672 | |
Interest rate risk | Securities | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 43,227 | 59,520 | 23,391 | |
Interest rate risk | Securities | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 10,226 | 11,051 | 16,893 | |
Interest rate risk | Securities | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 4,405 | 8,589 | 39,293 | |
Interest rate risk | Securities | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 7,133 | 44,187 | 1,845 | |
Interest rate risk | Securities | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 69,280 | 58,048 | 63,697 | |
Interest rate risk | Securities | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 62,236 | 13,198 | 14,855 | |
Interest rate risk | Securities | More than five years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 88,523 | 30,524 | 31,081 | |
Interest rate risk | Securities | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 114,790 | 126,637 | 155,618 | |
Interest rate risk | Permanent | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 16,890 | 14,417 | 472 | |
Interest rate risk | Permanent | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 16,890 | 14,417 | 472 | |
Interest rate risk | Other assets Member | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 2,465,434 | 2,491,052 | 185,908 | |
Interest rate risk | Other assets Member | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | $ 2,465,434 | $ 2,491,052 | $ 185,908 | |
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 | $ 1,000 | $ 700 | $ 900 | |
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 | $ 3,700 | $ 3,900 | $ 3,000 |
Risk management - Structural Fo
Risk management - Structural Foreign Currency Risk (Details) - Currency risk $ in Millions | Dec. 31, 2019MXN ($) |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Limit amount for maintaining the structural exchange-rate risk completely hedged | $ 15 |
Limit for maintaining the structural exchange-rate risk completely hedged as a percent of total assets | 0.02 |
Risk management - Funding and L
Risk management - Funding and Liquidity Risk (Details) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Structural interest rate risk | ||||
Total Balance Sheet Assets | $ 1,407,320 | $ 1,361,558 | ||
Liabilities | (1,299,114) | (1,259,588) | ||
Equity | (134,798) | (123,287) | $ (115,410) | $ (105,227) |
Total Balance Sheet Liabilities | (1,467,548) | (1,408,724) | ||
1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 244,549 | 267,346 | ||
Liabilities | (439,952) | (408,328) | ||
3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 89,817 | 79,718 | ||
Liabilities | (64,357) | (55,805) | ||
1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 318,438 | 294,489 | ||
Liabilities | (73,009) | (54,372) | ||
3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 188,633 | 160,968 | ||
Liabilities | (41,277) | (70,241) | ||
More than five years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 340,700 | 300,088 | ||
Liabilities | (115,839) | (120,235) | ||
Total Shareholders' Equity Attributable to the Parent | ||||
Structural interest rate risk | ||||
Equity | (134,758) | (123,255) | (115,381) | $ (105,172) |
Liquidity risk | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 3,902,867 | 3,767,210 | 1,414,049 | |
Total Balance Sheet Liabilities | (3,730,403) | (3,626,163) | (1,226,818) | |
Total Balance Sheet Gap | 172,464 | 141,047 | 187,231 | |
Total Off-Balance Sheet Gap | 20,905 | 30,927 | 15,009 | |
Liquidity risk | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 134,561 | 303,529 | 424,951 | |
Total Balance Sheet Liabilities | (348,453) | (284,649) | (263,922) | |
Total Balance Sheet Gap | (213,892) | 18,880 | 161,029 | |
Total Off-Balance Sheet Gap | (15,134) | 755 | (8,956) | |
Total Structural Gap | (229,026) | 19,635 | 152,073 | |
Accumulated Gap | (229,026) | 19,635 | 152,073 | |
Liquidity risk | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 93,016 | 78,133 | 64,734 | |
Total Balance Sheet Liabilities | (52,981) | (31,454) | (31,588) | |
Total Balance Sheet Gap | 40,035 | 46,679 | 33,146 | |
Total Off-Balance Sheet Gap | 398 | 108 | 596 | |
Total Structural Gap | 40,433 | 46,787 | 33,742 | |
Accumulated Gap | (188,593) | 66,422 | 185,815 | |
Liquidity risk | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 75,365 | 79,085 | 68,261 | |
Total Balance Sheet Liabilities | (50,531) | (34,594) | (25,813) | |
Total Balance Sheet Gap | 24,834 | 44,491 | 42,448 | |
Total Off-Balance Sheet Gap | 730 | (144) | 117 | |
Total Structural Gap | 25,564 | 44,347 | 42,565 | |
Accumulated Gap | (163,029) | 110,769 | 228,380 | |
Liquidity risk | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 133,116 | 160,129 | 101,605 | |
Total Balance Sheet Liabilities | (63,270) | (43,605) | (44,697) | |
Total Balance Sheet Gap | 69,846 | 116,524 | 56,908 | |
Total Off-Balance Sheet Gap | 1,125 | 1,637 | 599 | |
Total Structural Gap | 70,971 | 118,161 | 57,507 | |
Accumulated Gap | (92,058) | 228,930 | 285,887 | |
Liquidity risk | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 362,488 | 264,286 | 235,946 | |
Total Balance Sheet Liabilities | (129,530) | (60,079) | (71,640) | |
Total Balance Sheet Gap | 232,958 | 204,207 | 164,306 | |
Total Off-Balance Sheet Gap | 10,566 | 5,657 | 7,423 | |
Total Structural Gap | 243,524 | 209,864 | 171,729 | |
Accumulated Gap | 151,466 | 438,794 | 457,616 | |
Liquidity risk | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 185,117 | 129,283 | 109,695 | |
Total Balance Sheet Liabilities | (71,576) | (83,770) | (61,254) | |
Total Balance Sheet Gap | 113,541 | 45,513 | 48,441 | |
Total Off-Balance Sheet Gap | 5,253 | 6,293 | 4,090 | |
Total Structural Gap | 118,794 | 51,806 | 52,531 | |
Accumulated Gap | 270,260 | 490,600 | 510,147 | |
Liquidity risk | More than five years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 269,956 | 181,693 | 158,065 | |
Total Balance Sheet Liabilities | (289,318) | (309,566) | (292,325) | |
Total Balance Sheet Gap | (19,362) | (127,873) | (134,260) | |
Total Off-Balance Sheet Gap | 6,175 | 3,781 | (864) | |
Total Structural Gap | (13,187) | (124,092) | (135,124) | |
Accumulated Gap | 257,073 | 366,508 | 375,023 | |
Liquidity risk | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 2,649,247 | 2,571,073 | 250,794 | |
Total Balance Sheet Liabilities | (2,724,743) | (2,778,446) | (435,580) | |
Total Balance Sheet Gap | (75,496) | (207,373) | (184,786) | |
Total Off-Balance Sheet Gap | 11,791 | 12,838 | 12,005 | |
Total Structural Gap | (63,705) | (194,535) | (172,781) | |
Accumulated Gap | 193,368 | 171,973 | 202,242 | |
Liquidity risk | Total Shareholders' Equity Attributable to the Parent | ||||
Structural interest rate risk | ||||
Equity | (138,381) | (125,813) | (116,134) | |
Liquidity risk | Total Shareholders' Equity Attributable to the Parent | Not Sensitive | ||||
Structural interest rate risk | ||||
Equity | (138,381) | (125,813) | (116,134) | |
Liquidity risk | Money Market | ||||
Structural interest rate risk | ||||
Liabilities | (210,680) | (114,421) | (113,294) | |
Liquidity risk | Money Market | 1 month | ||||
Structural interest rate risk | ||||
Liabilities | (100,790) | (27,386) | (20,523) | |
Liquidity risk | Money Market | 3 months | ||||
Structural interest rate risk | ||||
Liabilities | (718) | (89) | (791) | |
Liquidity risk | Money Market | 6 months | ||||
Structural interest rate risk | ||||
Liabilities | (684) | |||
Liquidity risk | Money Market | 6 - 12 months | ||||
Structural interest rate risk | ||||
Liabilities | (2,116) | |||
Liquidity risk | Money Market | 1 to 3 years | ||||
Structural interest rate risk | ||||
Liabilities | (903) | |||
Liquidity risk | Money Market | Not Sensitive | ||||
Structural interest rate risk | ||||
Liabilities | (105,470) | (86,945) | (91,981) | |
Liquidity risk | Deposits | ||||
Structural interest rate risk | ||||
Liabilities | (709,438) | (643,226) | (607,532) | |
Liquidity risk | Deposits | 1 month | ||||
Structural interest rate risk | ||||
Liabilities | (238,812) | (253,793) | (239,107) | |
Liquidity risk | Deposits | 3 months | ||||
Structural interest rate risk | ||||
Liabilities | (33,549) | (20,848) | (19,463) | |
Liquidity risk | Deposits | 6 months | ||||
Structural interest rate risk | ||||
Liabilities | (26,289) | (17,375) | (14,194) | |
Liquidity risk | Deposits | 6 - 12 months | ||||
Structural interest rate risk | ||||
Liabilities | (26,585) | (14,367) | (12,780) | |
Liquidity risk | Deposits | 1 to 3 years | ||||
Structural interest rate risk | ||||
Liabilities | (62,061) | (19,813) | (21,136) | |
Liquidity risk | Deposits | 3 to 5 years | ||||
Structural interest rate risk | ||||
Liabilities | (42,162) | (11,475) | (11,777) | |
Liquidity risk | Deposits | More than five years | ||||
Structural interest rate risk | ||||
Liabilities | (279,979) | (305,556) | (289,075) | |
Liquidity risk | Long-Term Funding | ||||
Structural interest rate risk | ||||
Liabilities | (213,656) | (214,803) | (191,378) | |
Liquidity risk | Long-Term Funding | 1 month | ||||
Structural interest rate risk | ||||
Liabilities | (8,851) | (3,470) | (4,292) | |
Liquidity risk | Long-Term Funding | 3 months | ||||
Structural interest rate risk | ||||
Liabilities | (18,714) | (10,517) | (11,334) | |
Liquidity risk | Long-Term Funding | 6 months | ||||
Structural interest rate risk | ||||
Liabilities | (23,558) | (17,219) | (11,619) | |
Liquidity risk | Long-Term Funding | 6 - 12 months | ||||
Structural interest rate risk | ||||
Liabilities | (34,569) | (29,238) | (31,917) | |
Liquidity risk | Long-Term Funding | 1 to 3 years | ||||
Structural interest rate risk | ||||
Liabilities | (66,566) | (40,266) | (50,504) | |
Liquidity risk | Long-Term Funding | 3 to 5 years | ||||
Structural interest rate risk | ||||
Liabilities | (29,414) | (72,295) | (49,477) | |
Liquidity risk | Long-Term Funding | More than five years | ||||
Structural interest rate risk | ||||
Liabilities | (9,339) | (4,010) | (3,250) | |
Liquidity risk | Long-Term Funding | Not Sensitive | ||||
Structural interest rate risk | ||||
Liabilities | (22,644) | (37,788) | (28,985) | |
Liquidity risk | Other Liabilities | ||||
Structural interest rate risk | ||||
Liabilities | (2,458,248) | (2,527,900) | (198,480) | |
Liquidity risk | Other Liabilities | Not Sensitive | ||||
Structural interest rate risk | ||||
Liabilities | (2,458,248) | (2,527,900) | (198,480) | |
Liquidity risk | Money Market | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 83,423 | 101,353 | 80,851 | |
Liquidity risk | Money Market | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 38,853 | 35,304 | 41,236 | |
Liquidity risk | Money Market | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 11 | |||
Liquidity risk | Money Market | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 11 | |||
Liquidity risk | Money Market | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 29 | 52 | 41 | |
Liquidity risk | Money Market | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 10 | |||
Liquidity risk | Money Market | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 44,540 | 65,997 | 39,543 | |
Liquidity risk | Loans and advances | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 923,390 | 894,975 | 774,862 | |
Liquidity risk | Loans and advances | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 63,743 | 63,631 | 53,125 | |
Liquidity risk | Loans and advances | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 91,160 | 77,990 | 64,611 | |
Liquidity risk | Loans and advances | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 73,504 | 77,902 | 68,058 | |
Liquidity risk | Loans and advances | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 122,407 | 117,370 | 101,213 | |
Liquidity risk | Loans and advances | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 280,957 | 262,468 | 234,382 | |
Liquidity risk | Loans and advances | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 121,497 | 126,185 | 106,830 | |
Liquidity risk | Loans and advances | More than five years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 171,017 | 170,565 | 146,624 | |
Liquidity risk | Loans and advances | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | (895) | (1,135) | 20 | |
Liquidity risk | Intragroup | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 2,391 | (226) | (72) | |
Liquidity risk | Intragroup | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 2,391 | (226) | (72) | |
Liquidity risk | Securities | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 411,339 | 265,639 | 372,029 | |
Liquidity risk | Securities | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 31,965 | 204,594 | 330,590 | |
Liquidity risk | Securities | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 1,856 | 143 | 123 | |
Liquidity risk | Securities | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 1,861 | 1,183 | 192 | |
Liquidity risk | Securities | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 10,709 | 42,759 | 381 | |
Liquidity risk | Securities | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 81,502 | 1,766 | 1,523 | |
Liquidity risk | Securities | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 63,620 | 3,098 | 2,855 | |
Liquidity risk | Securities | More than five years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 98,939 | 11,128 | 11,441 | |
Liquidity risk | Securities | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 120,887 | 968 | 24,924 | |
Liquidity risk | Permanent | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 16,890 | 14,417 | 11,652 | |
Liquidity risk | Permanent | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 16,890 | 14,417 | 11,652 | |
Liquidity risk | Other assets Member | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 2,465,434 | 2,491,052 | 174,727 | |
Liquidity risk | Other assets Member | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | $ 2,465,434 | $ 2,491,052 | $ 174,727 |
Risk management - Regulatory Ra
Risk management - Regulatory Ratios (Details) | Apr. 29, 2016 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2016 |
Risk management | |||||
Leverage ratio, baseline reference effect percentage | 3.00% | ||||
Leverage ratio | 7.02% | ||||
Capital preservation supplement, Projected period | 4 years | ||||
Capital preservation supplement target | 1.20% | ||||
Capital preservation supplement, Percent of requirement achieved | 100.00% | ||||
Liquidity risk | |||||
Risk management | |||||
Available liquid assets, period | 30 days | ||||
Liquidity risk | Weighted average | |||||
Risk management | |||||
Liquidity coverage ratio, percentage | 159.37% |
Consolidated Subsidiaries - Com
Consolidated Subsidiaries - Composition of the Bank (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Subsidiaries | |||
Non-controlling interest | $ 40 | $ 32 | $ 29 |
Santander Consumo, 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% | ||
Santander Vivienda, 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% | ||
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% | ||
Fideicomiso 100740, Banco Santander, S.A. | |||
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% | ||
Santander Tecnologia Mexico, S.A. de C.V. (formerly Isban Mexico, 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) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial instruments | ||
Financial instruments received as collateral | $ 82,342 | $ 111,937 |
Santander Consumo, S.A. de C.V., SOFOM, E.R.. | ||
Financial instruments | ||
Assets to which significant restrictions apply | 43,800 | |
Santander Vivienda, S.A. de C.V., SOFOM, E.R. | ||
Financial instruments | ||
Assets to which significant restrictions apply | 32,686 | |
Statutory reserve | ||
Financial instruments | ||
Liabilities to which significant restrictions apply | 11,080 | |
Statutory reserve on individual basis | ||
Financial instruments | ||
Liabilities to which significant restrictions apply | 8,086 | |
Financial instruments in connection with derivative transactions in organized markets | ||
Financial instruments | ||
Financial assets pledged as collateral | 5,153 | 3,689 |
Deposits - Credit institutions and customers | Financial instrument in connection with OTC derivative transactions | ||
Financial instruments | ||
Liabilities to which significant restrictions apply | 16,759 | |
Debt instruments. | Financial instrument in connection with OTC derivative transactions | ||
Financial instruments | ||
Liabilities to which significant restrictions apply | 5,736 | |
M, M3 and M5 Mexican Government Bonds | Financial instruments in connection with repurchase agreement transactions | ||
Financial instruments | ||
Assets to which significant restrictions apply | 0 | |
M, M3 and M5 Mexican Government Bonds | Financial instruments in connection with securities loans transactions | ||
Financial instruments | ||
Assets to which significant restrictions apply | 0 | |
Deposits with Central Bank | ||
Financial instruments | ||
Assets to which significant restrictions apply | 28,094 | |
Debt instruments. | Financial instruments in connection with repurchase agreement transactions | ||
Financial instruments | ||
Assets to which significant restrictions apply | 79,927 | |
Financial instruments received as collateral | 76,592 | 107,560 |
Debt instruments. | Financial instrument in connection with OTC derivative transactions | ||
Financial instruments | ||
Financial instruments received as collateral | 5,736 | 4,044 |
Debt instruments. | Financial assets at fair value through other comprehensive income category | Financial instruments in connection with repurchase agreement transactions | ||
Financial instruments | ||
Financial assets pledged as collateral | 96,681 | 18,463 |
Debt instruments. | Financial assets at fair value through profit or loss category | Financial instruments in connection with repurchase agreement transactions | ||
Financial instruments | ||
Assets to which significant restrictions apply | 92,764 | |
Financial assets pledged as collateral | 92,764 | 74,548 |
Debt instruments. | Financial assets at fair value through profit or loss category | Financial instruments in connection with securities loans transactions | ||
Financial instruments | ||
Financial assets pledged as collateral | 8,678 | 27,592 |
Debt instruments. | Financial assets at fair value through profit or loss category | Financial instrument in connection with OTC derivative transactions | ||
Financial instruments | ||
Assets to which significant restrictions apply | 4,472 | |
Financial assets pledged as collateral | 4,472 | 4,769 |
Special CETES | ||
Financial instruments | ||
Assets to which significant restrictions apply | 3,471 | |
BREMS R | ||
Financial instruments | ||
Assets to which significant restrictions apply | 7,786 | |
BREMS R | Financial assets at amortized cost category | Financial instruments in connection with repurchase agreement transactions | ||
Financial instruments | ||
Assets to which significant restrictions apply | 4,999 | |
Financial assets pledged as collateral | 4,999 | 6,622 |
M, M3 and M5 Mexican Government Bonds | Financial assets at amortized cost category | Financial instruments in connection with repurchase agreement transactions | ||
Financial instruments | ||
Financial assets pledged as collateral | 1,672 | |
M, M3 and M5 Mexican Government Bonds | Financial assets at amortized cost category | Financial instruments in connection with securities loans transactions | ||
Financial instruments | ||
Financial assets pledged as collateral | 535 | |
Mexican government securities | Financial instruments in connection with repurchase agreement transactions | ||
Financial instruments | ||
Assets to which significant restrictions apply | 96,681 | |
Mexican government securities | Financial instruments in connection with securities loans transactions | ||
Financial instruments | ||
Assets to which significant restrictions apply | 8,678 | |
Equity instruments. | Financial instruments in connection with securities loans transactions | ||
Financial instruments | ||
Financial assets pledged as collateral | 0 | |
Financial instruments received as collateral | 14 | 333 |
Equity instruments. | Financial assets at fair value through profit or loss category | Financial instruments in connection with securities loans transactions | ||
Financial instruments | ||
Financial assets pledged as collateral | 0 | 959 |
Financial instruments received as collateral | 14 | 333 |
Loans and advances - Customers | ||
Financial instruments | ||
Financial assets pledged as collateral | 5,153 | 3,689 |
Loans and advances - Customers | Financial instruments in connection with derivative transactions in organized markets | ||
Financial instruments | ||
Assets to which significant restrictions apply | 5,153 | |
Loans and advances - Credit institutions | Financial instrument in connection with OTC derivative transactions | ||
Financial instruments | ||
Assets to which significant restrictions apply | 14,300 | |
Loans and advances - Credit institutions | Financial assets designated at fair value through profit or loss | Financial instruments in connection with repurchase agreement transactions | ||
Financial instruments | ||
Financial instruments received as collateral | 54,097 | 98,458 |
Loans and advances - Credit institutions | Financial assets at amortized cost category | Financial instrument in connection with OTC derivative transactions | ||
Financial instruments | ||
Financial assets pledged as collateral | $ 14,300 | $ 29,508 |