Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Statement | |
Document Type | 20-F/A |
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, 2020 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Entity Shell Company | false |
Entity Central Index Key | 0001698287 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Amendment Description | This Amendment No. 1 on Form 20-F/A (the "Amendment") is being filed by Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México (the "Company," "we," "our," or "us") to amend the Company's Annual Report on Form 20-F for the fiscal year ended December 31, 2020, originally filed with the U.S. Securities Exchange Commission on March 4, 2021 (the "Original Filing"). The Company is filing this Amendment solely to furnish the Interactive Data File disclosure as Exhibit 101 in accordance with Rule 405 of Regulation S-T, which was not included in the Original Filing due to clerical error. Exhibit 101 includes information in eXtensible Business Reporting Language (XBRL).This Amendment consists solely of the cover page and this explanatory note. Except as described above, this Amendment does not amend any information set forth in the Original Filing or reflect any events that occurred subsequent to the filing of the Original Filing on March 4, 2021. Accordingly, this Amendment should be read in conjunction with the Original Filing. |
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, 2020 | Dec. 31, 2019 |
ASSETS | ||
CASH AND BALANCES WITH THE CENTRAL BANK | $ 71,053 | $ 65,207 |
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS: | 504,354 | 268,127 |
OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS: | 70,356 | 79,927 |
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME: | 356,089 | 236,980 |
FINANCIAL ASSETS AT AMORTIZED COST: | 763,256 | 747,823 |
HEDGING DERIVATIVES | 8,306 | 9,256 |
NON-CURRENT ASSETS HELD FOR SALE | 551 | 935 |
INVESTMENTS IN ASSOCIATED ENTITIES | 1,001 | |
TANGIBLE ASSETS | 12,206 | 10,542 |
RIGHT-OF-USE ASSETS | 5,643 | 5,611 |
INTANGIBLE ASSETS: | 8,607 | 8,832 |
Goodwill | 1,734 | 1,734 |
Other intangible assets | 6,873 | 7,098 |
TAX ASSETS | 20,733 | 23,135 |
Current | 2,646 | 5,734 |
Deferred | 18,087 | 17,401 |
OTHER ASSETS | 15,759 | 11,173 |
TOTAL ASSETS | 1,837,914 | 1,467,548 |
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 301,476 | 153,600 |
OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 211,514 | 273,725 |
FINANCIAL LIABILITIES AT AMORTIZED COST: | 1,111,955 | 864,266 |
HEDGING DERIVATIVES | 19,078 | 7,523 |
PROVISIONS | 10,604 | 9,104 |
Provisions for pensions and similar obligations | 7,433 | 6,406 |
LEASE LIABILITIES | 6,131 | 5,919 |
TAX LIABILITIES | 204 | 322 |
Current | 17 | 217 |
Deferred | 187 | 105 |
OTHER LIABILITIES | 23,118 | 18,291 |
TOTAL LIABILITIES | 1,684,080 | 1,332,750 |
SHAREHOLDERS' EQUITY | 150,293 | 132,715 |
Share capital | 25,660 | 25,660 |
Accumulated reserves | 105,659 | 86,674 |
Profit for the year attributable to the Parent | 18,974 | 20,381 |
VALUATION ADJUSTMENTS: | 3,504 | 2,043 |
Financial assets at fair value through other comprehensive income | 4,073 | 2,319 |
Cash flow hedges | (569) | (276) |
TOTAL SHAREHOLDERS' EQUITY ATTRIBUTABLE TO THE PARENT | 153,797 | 134,758 |
NON-CONTROLLING INTERESTS | 37 | 40 |
TOTAL EQUITY | 153,834 | 134,798 |
TOTAL LIABILITIES AND EQUITY | 1,837,914 | 1,467,548 |
Provision for taxes and legal matters | ||
LIABILITIES AND EQUITY | ||
Other provisions | 1,898 | 1,558 |
Provisions for off-balance sheet risk | ||
LIABILITIES AND EQUITY | ||
Other provisions | 1,232 | 1,075 |
Other provisions | ||
LIABILITIES AND EQUITY | ||
Other provisions | 41 | 65 |
Trading derivative liabilities | ||
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 286,111 | 144,481 |
Short positions | ||
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 15,365 | 9,119 |
Deposits - Central banks | ||
LIABILITIES AND EQUITY | ||
OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 24,937 | 111,574 |
FINANCIAL LIABILITIES AT AMORTIZED COST: | 126,329 | |
Deposits - Credit institutions | ||
LIABILITIES AND EQUITY | ||
OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 54,922 | 29,689 |
FINANCIAL LIABILITIES AT AMORTIZED COST: | 61,174 | 72,969 |
Customer deposits, Excludes repurchase agreements | ||
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES AT AMORTIZED COST: | 733,877 | 630,055 |
Customer deposits - Repurchase agreements | ||
LIABILITIES AND EQUITY | ||
OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 130,292 | 129,216 |
FINANCIAL LIABILITIES AT AMORTIZED COST: | 8,324 | |
Marketable debt securities | ||
LIABILITIES AND EQUITY | ||
OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 1,363 | 3,246 |
FINANCIAL LIABILITIES AT AMORTIZED COST: | 130,754 | 111,211 |
Subordinated liabilities | ||
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES AT AMORTIZED COST: | 36,182 | 34,267 |
Other financial liabilities | ||
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES AT AMORTIZED COST: | 15,315 | 15,764 |
Loans and advances - Credit institutions | ||
ASSETS | ||
OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS: | 59,512 | 54,138 |
FINANCIAL ASSETS AT AMORTIZED COST: | 64,371 | 36,895 |
Loans and advances - Customers | ||
ASSETS | ||
OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS: | 10,844 | 25,789 |
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME: | 2,875 | |
FINANCIAL ASSETS AT AMORTIZED COST: | 687,432 | 699,671 |
Debt instruments. | ||
ASSETS | ||
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS: | 206,272 | 110,613 |
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME: | 355,321 | 233,463 |
FINANCIAL ASSETS AT AMORTIZED COST: | 11,453 | 11,257 |
Equity instruments. | ||
ASSETS | ||
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS: | 1,911 | 5,767 |
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME: | 768 | 642 |
Trading derivative assets | ||
ASSETS | ||
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS: | $ 296,171 | $ 151,747 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement | |||
Interest income | $ 103,977 | $ 108,846 | $ 99,537 |
Interest income on financial assets designated at fair value through profit or loss | 12,008 | 15,384 | 14,049 |
Interest expenses and similar charges | (50,175) | (58,074) | (51,589) |
NET INTEREST INCOME | 65,810 | 66,156 | 61,997 |
Dividend income | 246 | 235 | 210 |
Income from entities accounted for using the equity method | 178 | ||
Fee and commission income. | 23,756 | 24,318 | 22,296 |
Fee and commission expenses | (6,733) | (7,894) | (6,574) |
Gains/(losses) on financial assets and liabilities (net) | 5,984 | 2,854 | 1,484 |
Exchange differences (net) | 19 | ||
Other operating income | 1,651 | 1,553 | 748 |
Other expense, by function | (5,213) | (5,145) | (4,393) |
TOTAL INCOME | 85,698 | 82,077 | 75,768 |
Administrative expenses: | (30,135) | (29,258) | (28,649) |
Personnel expenses | (14,876) | (15,428) | (14,354) |
Other general administrative expenses | (15,259) | (13,830) | (14,295) |
Depreciation and amortization | (5,743) | (5,222) | (2,973) |
Impairment losses on financial assets (net) | (21,799) | (19,220) | (18,810) |
Gains/(losses) on modification of financial assets (net) | (1,743) | ||
Impairment losses on other assets (net), Non-current assets held for sale | (119) | (370) | (5) |
Provisions (net) | (974) | (775) | (562) |
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) | 6 | 16 | 7 |
Gains/(losses) on disposal of non-current assets held for sale not classified as discontinued operations (net) | 9 | 42 | 38 |
OPERATING PROFIT BEFORE TAX | 25,200 | 27,290 | 24,814 |
Income tax | (6,226) | (6,909) | (5,458) |
PROFIT FOR THE YEAR | 18,974 | 20,381 | 19,356 |
Profit attributable to the Parent | $ 18,974 | $ 20,381 | 19,353 |
Profit attributable to non-controlling interests | $ 3 | ||
EARNINGS PER SHARE (pesos) | |||
Basic earnings per share (in pesos per share) | $ 2.80 | $ 3.01 | $ 2.86 |
Diluted earnings per share (in pesos per share) | $ 2.80 | $ 3 | $ 2.85 |
Financial assets at amortized cost category | |||
Statement | |||
Impairment losses on financial assets (net) | $ (21,731) | $ (19,220) | $ (18,806) |
Financial assets at fair value through other comprehensive income category | |||
Statement | |||
Dividend income | 206 | $ 191 | 177 |
Impairment losses on financial assets (net) | $ (68) | $ (4) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Profit for the year | $ 18,974 | $ 20,381 | $ 19,356 |
Items that will not be reclassified subsequently to the consolidated income statement: | |||
Remeasurement of defined benefit obligation for the year | (995) | (1,673) | 260 |
Changes in the fair value of equity instruments at fair value through other comprehensive income | 126 | 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 | (8) | 26 | (35) |
Income tax | 264 | 462 | (64) |
Total of items that will not be reclassified subsequently to the consolidated income statement | (613) | (1,078) | 148 |
Financial assets at fair value through other comprehensive income: | |||
Valuation adjustments, FVTOCI | 3,565 | 4,108 | (1,226) |
Amounts reclassified to the consolidated income statement, FVTOCI | (843) | (189) | 69 |
Impairment of debt instruments accounted at fair value through other comprehensive income | 2 | ||
Income tax, FVTOCI | (1,056) | (980) | 371 |
Cash flow hedges: | |||
Valuation adjustments, cash flow hedge | (376) | 29 | (882) |
Amounts reclassified to the consolidated income statement, Cash flow hedge | (43) | (9) | (40) |
Income tax, Cash flow hedge | 126 | (6) | 276 |
Total of items that may be reclassified subsequently to the consolidated income statement | 1,373 | 2,953 | (1,430) |
Other comprehensive income/(loss) for the year, net of income tax | 760 | 1,875 | (1,282) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 19,734 | 22,256 | 18,074 |
Attributable to the Parent | $ 19,734 | $ 22,256 | 18,071 |
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, 2017 | $ 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) | |||||
Other changes in non-controlling interest | 3 | 3 | ||||||
Other comprehensive income/(loss) for the year, net of income tax | (1,282) | 157 | (1,439) | (1,282) | ||||
Sale of Custody business, net of income tax | 506 | 506 | 506 | |||||
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 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 | |
Profit attributable to the Parent | 18,974 | 18,974 | 18,974 | |||||
Other changes in equity: | ||||||||
Transfer to Accumulated reserves | 20,381 | (20,381) | ||||||
Treasury shares | (58) | (58) | (58) | |||||
Paid interests on Subordinated Additional Tier I Capital Notes | (676) | (676) | (676) | |||||
Other changes in non-controlling interest | (3) | (3) | ||||||
Other comprehensive income/(loss) for the year, net of income tax | 760 | (701) | 1,461 | 760 | ||||
Changes in equity from Corporate Restructuring | ||||||||
Recognition of equity-settled share-based payments | 39 | 39 | 39 | |||||
Equity at end of period at Dec. 31, 2020 | $ 153,797 | $ 25,660 | $ 105,659 | $ 18,974 | $ 3,504 | $ 37 | $ 153,834 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
A. CASH FLOWS FROM OPERATING ACTIVITIES: | $ 13,213 | $ 34,470 | $ 15,554 |
Profit for the year | 18,974 | 20,381 | 19,356 |
Adjustments made to obtain the cash flows from operating activities- | 11,208 | 13,238 | 8,148 |
Depreciation and amortization | 5,743 | 5,222 | 2,973 |
Impairment losses on other assets (net) | 119 | 370 | 5 |
(Gains)/losses on disposal of non-current assets held for sale not classified as discontinued operations | (9) | (42) | (38) |
(Gains)/losses on disposal of assets not classified as non-current assets held for sale | (6) | (16) | (7) |
Income tax expense recognized in consolidated income statement | 6,226 | 6,909 | 5,458 |
Income from entities accounted for using the equity method | (178) | ||
Expense recognized with respect to equity-settled share-based payments | 84 | 237 | 401 |
Effect of foreign exchange rate changes on Subordinated Additional Tier I Capital Notes | (522) | 394 | 6 |
Effect of foreign exchange rate changes on cash deposits | (249) | 164 | (650) |
Net (increase)/decrease in operating assets- | (362,106) | (36,074) | (80,396) |
Financial assets at fair value through profit or loss | (236,267) | (647) | 48,013 |
Other financial assets at fair value through profit or loss | 9,571 | 27,498 | (55,720) |
Remeasurement of debt instruments reclassified to financial assets at amortized cost | 2,287 | ||
Financial assets at fair value through other comprehensive income | (116,184) | (82,536) | (67,730) |
Financial assets at amortized cost | (14,653) | 18,116 | (13,996) |
Other operating assets | (4,573) | 1,495 | 6,750 |
Net increase/(decrease) in operating liabilities- | 348,847 | 44,943 | 75,238 |
Financial liabilities at fair value through profit or loss | 147,876 | (29,046) | (10,846) |
Other financial liabilities at fair value through profit or loss | (62,211) | 95,460 | 11,379 |
Financial liabilities at amortized cost | 244,685 | (22,630) | 69,498 |
Other operating liabilities | 18,497 | 1,159 | 5,207 |
Income tax paid | (3,956) | (8,253) | (7,002) |
Dividends received from equity instruments | 246 | 235 | 210 |
B. CASH FLOWS FROM INVESTING ACTIVITIES: | (4,734) | (12,002) | (5,349) |
Payments- | (4,734) | (12,002) | (7,291) |
Tangible assets | (1,663) | (8,766) | (3,307) |
Intangible assets | (2,248) | (3,236) | (2,964) |
Acquisition of subsidiary | (1,020) | ||
Investments in associated entities | (823) | ||
Proceeds- | 1,942 | ||
Disposal of tangible assets | 3 | ||
Sale of Brokerage House | 1,175 | ||
Sale of Custody business | 764 | ||
C. CASH FLOWS FROM FINANCING ACTIVITIES: | (2,882) | (12,407) | (13,232) |
Payments- | (2,882) | (12,407) | (36,513) |
Dividends paid to owners | (10,293) | (11,050) | |
Paid interests on Subordinated Additional Tier I Capital Notes | (917) | (808) | (804) |
Purchase of own shares (treasury shares) | (58) | (218) | (437) |
Early settlement of Tier II Subordinated Capital Notes | (24,222) | ||
Principal and interest paid on lease liabilities | (1,907) | (1,088) | |
Proceeds- | 23,281 | ||
Issue of Tier II Subordinated Capital Notes | 23,281 | ||
D. EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON FOREIGN CURRENCY CASH | 249 | (164) | 650 |
E. NET INCREASE/(DECREASE) IN CASH AND BALANCES WITH THE CENTRAL BANK | 5,846 | 9,897 | (2,377) |
F. CASH AND BALANCES WITH THE CENTRAL BANK AT THE BEGINNING OF YEAR | 65,207 | 55,310 | 57,687 |
G. CASH AND BALANCES WITH THE CENTRAL BANK AT THE END OF YEAR | $ 71,053 | $ 65,207 | $ 55,310 |
Introduction, basis of presenta
Introduction, basis of presentation of the consolidated financial statements and other information | 12 Months Ended |
Dec. 31, 2020 | |
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 91.64% (see Note 3) 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 ( Disposiciones de Carácter General Aplicables a las Instituciones de Crédito ), 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, “CNBV” by its Spanish acronym) and the Mexican Central Bank (hereinafter, “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 office of the Bank is located at Prolongación Paseo de la Reforma 500, Colonia Lomas de Santa Fe, Ciudad de Mexico, Mexico. The issuance of the consolidated financial statements was authorized by Héctor Blas Grisi Checa, Executive President and Chief Executive Officer (CEO) and Director of the Bank on February 26, 2021. These consolidated financial statements are pending the approval of the Board of Directors and 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). COVID-19 pandemic Near the end of 2019, a new strain of coronavirus denominated SARS-CoV-2 (hereinafter, “COVID-19”) was first reported. In that period, a clusters of cases showing the symptoms of a ‘pneumonia of unknown cause’ were identified in Wuhan, the capital of Central China’s Hubei province. On December 31, 2019, China alerted the World Health Organization (WHO) of this new virus and on January 31, 2020, the International Health Regulations Emergency Committee of the WHO declared the outbreak a ‘Public Health Emergency of International Concern’. Since then, COVID-19 has progressively spread around the world, initially in parts of Asia, from where it then moved to Europe, the United States of America and Latin America, among others. On March 11, 2020, the WHO declared the COVID-19 outbreak to be a pandemic. In the United States of America and Latin America, the health crisis began later than in Europe, so its impact was greatest at the end of the first quarter of 2020 and there are no clear signs of recovery yet. COVID-19 has significantly affected the world economy. Countries all over the world responded to the COVID-19 pandemic by imposing a variety of measures to try to contain its expansion and impact, including lockdowns on millions of people, the implementation of mass quarantines and other containment measures, travel restrictions, limiting public gatherings and the temporary suspension of most economic activity. The measures adopted led to a notable decrease in global economic activity, disruption of supply chains, falls in production and demand, which resulted in significant Gross Domestic Product (GDP) falls in the most relevant countries, exchange rate volatility, sharp declines and high volatility in the financial and commodities markets worldwide, among others. While some countries have started to ease their lockdowns, the reduction has been gradual and, as a result of the disruption to businesses, millions of workers have lost their jobs. These measures had a negative impact and could continue to affect adversely companies, market participants, Bank’s counterparties and customers in the coming years. Mexican government and regulatory authorities, including the CNBV and the Mexican Central Bank, have acted to alleviate the economy and market disruptions resulting from COVID-19 pandemic. At the time, it is difficult to forecast the effectiveness of these and other measures taken to mitigate the economic impact of the COVID-19 pandemic. The Bank’s priority is to protect the health of its employees, customers and shareholders but also to help mitigate the economic and financial impact that the health crisis could have. In this respect, several work streams were activated to find the best possible outcome for customers as well as to preserve the Bank’s strength and solvency, such as: · Identification of vulnerable customers, collectives and sectors that are affected or could be affected by the effects of the COVID-19 pandemic. · Close monitoring of their situation and needs in light of the most recent pandemic and market developments. · Scenario analysis to assess potential impacts and define action plans in case they are needed. · Assessment of the risk control framework, risk appetite statement, management limits and policies to ensure their appropriateness under the current circumstances. · Strengthening of the Recoveries area. The Bank’s additional governance was also activated, which includes the “Special Situation Committee” to address and closely monitor the current situation and its potential negative effects. The Board of Directors and Bank’s Management, in order to facilitate the decision-making process, are regularly updated with the continuous monitoring of the key risk indicators. Preserving the Bank’s business and critical functions in stress conditions is essential to providing high quality services to customers. Consequently, the Bank has the necessary contingency plans, including simulations of stress scenarios, which have enabled to face the COVID-19 pandemic with suitable preparation and knowledge. Contingency plans ensured the operational continuity of business, identifying their critical businesses and, among other measures, segregating teams and technological infrastructures, establishing shifts between critical employees and their back-ups, as well as increasing information technology infrastructure. Consequently, operational continuity of the Bank’s business units was not compromised, nor did they present any relevant incidents. At the end of March 2020, the Bank implemented various relief measures issued by the CNBV (hereinafter, “Support Program”), which includes the partial or total deferral of principal and/or interest payments for up to four months, with the possibility of extending it to two additional months. Additionally, the Bank implemented case-by-case debt restructurings to corporate customers, provided liquidity and credit facilities for individuals and businesses facing hardship and offered proactive support for vulnerable customers trying to cover their needs, among others. As for the branch network, measures were also taken to ensure a balance between customer service and the protection of employees, such as, reduced opening hours, shifts, limiting the number of customers in a branch at the same time, among others. Around or above 99% of automated teller machines (ATM) remained active during the worst moment of the health crisis, ensuring availability of cash to customers and the possibility of online transactions. Bank’s liquidity has been closely monitored since the beginning of the COVID-19 pandemic and preventive management measures were carried out to strengthen its position. In addition, the Mexican Central Bank has adopted measures to provide significant liquidity to the financial system. As a result, the liquidity position of the Bank has remained solid during 2020. Regarding credit risk, the main indicators, such as customer’s performance and payment capacity, has been continuously monitored in order to maintain a robust credit quality of the Bank’s loan portfolio supported by the Bank’s initiatives to back its customers. The Bank’s market risk exposure maintained its low profile with stable Value at Risk levels despite the persisting uncertainty stemming from COVID-19 pandemic. The operational risk profile remained also stable, with a similar distribution of losses by category as in 2019, despite the exceptional circumstances from COVID-19 pandemic. During 2020, the Bank has had more than half of total workforce telecommuting, which has increased cybersecurity risks given greater use of computer networks outside the corporate environment. Accordingly, the Bank focused in managing these risks, as well as increasing bandwidths and remote connection capacities, raising the maximum number of users supported while providing the necessary information technology equipment to adapt the organization to the new telecommuting environment in order to avoid business disruptions. Regarding the safeguard of Bank’s employees, several actions were carried out from the beginning of the COVID-19 pandemic such as communication campaigns with the necessary hygiene guidelines, large scale remote working, travel and face-to-face meeting restrictions and constant health monitoring, among others. The Bank has also implemented actions and mobilized resources to help society combat the health crisis as being the contribution to the well-being of society as a whole, which is one of the Bank’s main priorities. In this regard, the Bank created a solidarity fund to acquire medical equipment and materials to support organizations in the fight against COVID-19. Bank’s Management has a reasonable expectation that the Bank has adequate resources to continue in operational existence for the near future. Thus, they continue to adopt the going concern basis of accounting in preparing the consolidated financial statements. 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 IFRIC interpretations, which are developed by the IFRS Interpretations Committee (previously the International Financial Reporting Interpretations Committee or IFRIC) and issued after approval by the IASB. The consolidated financial statements have been prepared on a historical cost basis, except for financial assets and liabilities at fair value through profit or loss (including trading financial derivative instruments), other financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other comprehensive income, hedging financial derivative instruments, non-current assets held for sale and plan assets of defined benefit pension plans, 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 recognize 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 rules 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 by its Spanish acronym) as issued by the Mexican Board of Financial Reporting Standards (CINIF by its Spanish acronym), which, in turn, are supplemented and modified by specific rules mandated by the CNBV. The most significant differences between Mexican Banking GAAP and IFRS are: 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 credit loss model. The expected credit loss model is 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 credit 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% 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 As a lessee, Mexican Banking GAAP distinguishes leases between two types: · Operating lease, 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. · Finance lease, if the lease transfer substantially all the risk and rewards incidental to ownership, at commencement of the lease term, finance leases should be recognized as an asset (decreased by depreciation) and a liability (decreased by payments). h) Finance leases At the beginning of the contract, the lessor will recognize the contractual value (nominal) of the leasing operation within its loan portfolio, against the cash outflow for the acquisition of the underlying asset and the corresponding financial income to be accrued as established by Mexican Banking GAAP. i) 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. Resolutions and provisions issued by the CNBV to address the contingency derived from COVID-19 pandemic On April 8, 2020, the CNBV issued some resolutions and provisions to face the contingency derived from the COVID-19 pandemic. In this sense, the CNBV postponed to January 1, 2022 the entry into force of IFRS 9 Financial instruments contained in the General Provisions Applicable to Credit Institutions ( Disposiciones de Carácter General Aplicables a las Instituciones de Crédito) , which was originally scheduled for January 1, 2021. New and amended IFRS that are effective for the current year In the current year, the Bank has applied the below amendments to IFRS and International Accounting Standards (hereinafter, “IAS”) issued by the IASB that are mandatorily effective for the accounting period beginning on January 1, 2020. Their adoption has not had any material impact on the disclosures or on the amounts reported in these consolidated financial statements. · Amendments to IAS 1 and IAS 8 – Definition of Material · Amendments to IFRS 3 – Definition of a Business · Revised Conceptual Framework for Financial Reporting · Amendments to IFRS 9, IAS 39 and IFRS 7 – Interest Rate Benchmark Reform Phase 1 · Amendment to IFRS 16 – Rent concessions Amendments to IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors - Definition of Material 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. The application of this amendment has had no impact on the amounts recognized in the consolidated financial statements. Amendments to IFRS 3 Business Combinations The amendments to IFRS 3 improve the definition of a business. To be considered a business, an acquisition would have to include an input and a substantive process that together significantly contribute to the ability to create outputs. The new guidance provides a framework to evaluate when an input and a substantive process are present (including for early stage companies that have not generated outputs). 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. It is also no longer necessary to assess whether market participants are capable of replacing missing elements or integrating the acquired activities and assets. The amendments also introduce an optional concentration test that permits a simplified assessment of whether an acquired set of activities and assets is not a business. Under the optional concentration test, the acquired set of activities and assets is not a business if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar assets. The application of this amendment has had no impact on the amounts recognized in the consolidated financial statements. Revised Conceptual Framework for Financial Reporting The IASB has issued a revised Conceptual Framework. The revised Conceptual Framework is not an IFRS standard and will be used in future standard-setting decisions, but no changes will be made to current IFRS. Preparers might also use the Conceptual Framework to assist them in developing accounting policies where an issue is not addressed by an IFRS. The main changes include: - increasing the prominence of stewardship in the objective of financial reporting, which is to provide information that is useful in making resource allocation decisions; - reinstating prudence, defined as the exercise of caution when making judgments under conditions of uncertainty, 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 as a present economic resource controlled by the entity as a result of past events; - revising the definition of a liability as a present obligation of the entity to transfer an economic resource as a result of past events; - removing the probability threshold for recognition and adding guidance on derecognition; - adding guidance on the information provided by different measurement bases, and explaining factors to consider when selecting a 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 the relevance or faithful representation of the financial statements would be enhanced. The application of this amendment has had no impact on the amounts recognized in the consolidated financial statements. Amendments to IFRS 9 Financial Instruments, IAS 39 Financial Instruments: Recognition and Measurement and IFRS 7 Financial Instruments: Disclosures – Interest Rate Benchmark Reform Phase 1 Following the financial crisis, the replacement of benchmark interest rates such as the London Inter-bank Offered Rate (LIBOR) and other Interbank Offered Rates (IBOR), hereinafter the “IBOR Reform”, became a priority for global regulators. Given the pervasive nature of IBOR-based contracts, there are significant impacts of these changes on financial reporting under IFRS. The IASB has issued two-phase amendments to provide reliefs from the effects of IBOR Reform. - Phase 1 - amendments to IFRS 9, IAS 39 and IFRS 7 (IBOR Reform Phase 1) provides temporary reliefs to enable hedge accounting to continue during the period of uncertainty before the replacement of an IBOR with an alternative nearly risk-free interest rate (RFR). The IBOR Reform Phase 1 amendments are effective for periods beginning on or after January 1, 2020. - Phase 2 - amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 (IBOR Reform Phase 2) provides temporary reliefs to address the accounting issues, which arise upon the replacement of an IBOR with an RFR. These amendments were published by the IASB on August 27, 2020 and are effective for annual periods beginning on or after January 1, 2021, with early application permitted. IBOR Reform Phase 1 amendments include a number of reliefs, which apply to all hedging relationships that are directly affected by the IBOR Reform. A hedging relationship is affected if the IBOR Reform gives rise to uncertainties about the timing and or amount of benchmark-based cash flows of the hedged item or the hedging instrument during the period before the replacement of an existing interest rate benchmark with an RFR. This may lead to uncertainty whether a forecast transaction is highly probable and whether prospectively the hedging relationship is expected to be highly effective. IBOR Reform Phase 1 amendments provides reliefs which require the Bank to assume that hedging relationships are unaffected by the uncertainties caused by IBOR reform. This includes assuming that hedged cash flows are not altered because of IBOR reform. In addition, the reliefs allow the Bank to continue the hedging relationships because of retrospective or prospective ineffectiveness. Because 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 IBOR continue to qualify for hedge accounting as of December 31, 2020. IBOR continues to be used as a reference interest rate in financial markets and is used in the valuation of financial 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. In some hedges, the hedged item or hedged risk is a non-contractually specified IBOR risk component. In order for hedge accounting to be applied, IAS 39 requires the designated risk component to be separately identifiable and reliably measurable. Under IBOR Reform Phase 1 amendments, the risk component only needs to be separately identifiable at initial hedge designation and not on an ongoing basis. The reliefs provided by the IBOR Reform Phase 1 amendments that apply to the Bank are: - Hedge accounting relationships will continue despite the following: · For IBOR cash flow hedges, there is uncertainty about the timing and amount of the hedged cash flows due to the IBOR reform. · For IBOR fair value hedges, the benchmark interest rate component may not be separately identifiable. - The Bank will not discontinue hedge accounting during the period of IBOR-related uncertainty solely because the retrospective effectiveness falls outside the required 80% to 125% range. For those hedging relationships that are not subject to the IBOR Reform, the Bank continues to cease hedge accounting if retrospective effectiveness is outside the 80% to 125% range. - The Bank will retain the cumulative gain or loss recognized temporarily in other comprehensive income under Valuation adjustments - Cash flow hedges for designated cash flow hedges that are subject to the IBOR Reform even though there uncertainty arising with respect to the timing and amount of cash flows of the hedged items. When the Bank considers the hedged future cash flows are no longer expected to occur due to reasons other than the IBOR Reform , the cumulative gain or loss recognized temporarily in other comprehensive income under Valuation adjustments – Cash flow hedges will be immediately reclassified to profit or loss. The Bank will continue to apply the IBOR Reform Phase 1 amendments to IAS 39 until the uncertainty arising from the interest rate benchmark IBOR Reform with respect to the timing and the amount of the underlying cash flows to which the Bank is exposed ends. The Bank expects this uncertainty will continue until the Bank’s contracts that reference to IBOR are amended to specify the date on which the interest rate benchmark will be replaced and the basis for the cash flows of the alternative benchmark rate are determined including any fixed spread. In order to manage the transition process to the new reference rates, the Bank has set up a corporate IBOR transition program with the involvement of Bank’s Management. The aim of the program is to identify the risks and challenges arising from the IBOR Reform, understand where IBOR exposures are within the business, prepare and deliver on an action plan to enable a smooth transition to RFR. The Bank aims to finalize its transition and fall back plans by the end of first half of 2021. The Bank has also closely monitored the financial markets and the output from the various industry working groups managing the transition to new benchmark interest rates. This includes announcements made by LIBOR regulators, such as the United Kingdom Financial Conduct Authority (FCA) and the United States Commodity Futures Trading Commission (CFTC) regarding the transition from LIBOR including British pound sterling (GBP) to the Sterling Overnight Index Average rate (SONIA), United States dollar ( USD) LIBOR to the Secured Overnight Financing Rate (SOFR) and Japanese yen (JPY) LIBOR to the Tokyo Overnight Average rate (TONA). The FCA has made clear that, at the end of 2021, it will no longer seek to persuade, or compel, banks to submit to LIBOR. The International Swaps and Derivatives Association (ISDA) is currently reviewing its standardized contracts in the light of IBOR Reform and plans to amend certain floating-rate options in the 2006 ISDA definitions to include fallback clauses that would apply on the permanent discontinuation of certain key IBOR. ISDA is expected to publish an IBOR fallback supplement to amend the 2006 ISDA definitions and an IBOR fallback protocol to facilitate multilateral amendments to include the amended floating-rate options in financial derivative transactions that were entered into before the date of the supplement. The Bank has adhered to the protocol and intends to monitor whether its counterparties will also adhere. If this plan changes or there are counterparties who will not adhere to the protocol, the Bank will negotiate with them bilaterally about including new fallback clauses. The IBOR Reform Phase 1 amendments are relevant to the Bank given that it applies hedge accounting to its benchmark interest rate exposures. The application of the IBOR Reform Phase 1 amendments affects the Bank in the following ways: - Hedged items in cash flow hedge relationships include loans to customers in USD LIBOR floating rate and Euro LIBOR floating rate. - Hedging instruments include USD LIBOR and Euro LIBOR linked cross currency swaps. Below are details of the hedging instruments and hedged items in scope of IAS 39 due to IBOR Reform, by hedge type. The terms of the hedged items listed match those of the corresponding hedging instruments. Hedge Instrument type Instrument Maturing Hedge type prior to transition type in item Cash flow hedges USD LIBOR CCS Loans and advances to customers Cash flow hedges Euro LIBOR CCS Loans and advances to customers Amendment to IFRS 16 Leases – Rent concessions (Effective for annual periods beginning on or after June 1, 2020) In response to the COVID-19 pandemic, the IASB issued in May 2020 an amendment to IFRS 16 that provide practical relief for lessees in accounting for rent concessions. The practical expedient permits a lessee to elect not to assess whether a COVID-19-related rent concession is a lease modification. A lessee that makes this election shall account for any change in lease payments resulting from the COVID-19-related rent concession the same way it would account for the change applying IFRS 16 if the change were not a lease modification. Rent concessions are eligible for the practical expedient, if they occur as a direct consequence of the COVID-19 pandemic and if all of the following criteria are met: · the change in lease payments results in revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change; · any reduction in lease payments affects only payments originally due on or before June 30, 2021 (a rent concession meet this condition if it results in reduced lease payments on or before June 30, 2021 and increased lease payments that extend beyond June 30, 2021); and · there is no substantive change to the other terms and conditions of the lease. The Bank decided not to adopt the facilities of the practical expedient for leases. New and revised IFRS in issue but not yet effective At the date of authorization of these consolidated financial statements, the following IFRS had been issued |
Accounting policies
Accounting policies | 12 Months Ended |
Dec. 31, 2020 | |
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 USD. The transactions, assets and liabilities denominated in foreign currencies are translated to pesos based on the exchange rates published by the Mexican Central Bank. The “Fix” (48-hour) exchange rate used was $18.8642 per one USD and $19.9087 per one USD as of December 31, 2019 and 2020, 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, 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, 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 all 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. Banco Santander México 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 Banco Santander México 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. Banco Santander México considers all relevant facts and circumstances in assessing whether or not Banco Santander México’s voting rights in an investee are sufficient to give it power, including: · the size of Banco Santander México’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders; · potential voting rights held by Banco Santander México, other vote holders or other parties; · rights arising from other contractual arrangements; and · any additional facts and circumstances that indicate that Banco Santander México 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 Banco Santander México obtains control over the subsidiary and ceases when Banco Santander México 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 Banco Santander México gains control until the date when Banco Santander México 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 Banco Santander México’s accounting policies. The financial statements of the subsidiaries are fully consolidated with those of Banco Santander México. 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 total 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 these results in the non-controlling interests having a deficit balance (see Note 27). The share of third parties of the consolidated total 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 included in the consolidated financial statements as of December 31, 2019 and 2020 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, assets and liabilities of associated entities 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 consolidated total 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 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, 2020, the Bank has a commercial alliance with SMPS Merchant Platform Solutions México, S.A. de C.V. (formerly, Elavon Merchant Services México, S. de R.L. de C.V.), in order to share revenues and expenses jointly related to the merchant services. This commercial alliance is not material to the consolidated financial statements. As of December 31, 2019, the Bank did not have any investment in associated entities. As of December 31, 2020, the Bank made an investment in an associated entity as detailed in Note 49.a. 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 Income Taxes and IAS 19 Employee Benefits, 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 interests previously held 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, 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 Accumulated reserves within Shareholders’ equity in the consolidated balance sheet. 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 within Shareholders’ equity in the consolidated balance sheet 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 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 IFRS 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 associated entities 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 to collect the contractual cash flows from financial assets on specified dates that are solely payments of principal and interest (SPPI), 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 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 (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 fair value through other comprehensive income (FVTOCI), or at fair value through profit or loss (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 that do not meet the criteria for being classified and measured at amortized cost or FVTOCI are classified and measured at FVTPL. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are SPPI. 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: 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: 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: 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. Financial liabilities are classified for measurement purposes into one of the following categories: - Financial liabilities at fair value through profit or loss: 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. The changes in the fair value of other financial liabilities at FVTPL due to the Bank’s own credit risk are recognized in other comprehensive income. - Financial liabilities at amortized cost: financial liabilities, irrespective of their instrumentation and maturity, not included in any of the above-mentioned categories, which arise from the ordinary borrowing activities or financing received. v. Classification of financial liabilities for presentation purposes Financial liabilities are classified by nature into the following items in the consolidated balance sheet: - Deposits: 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 and repurchase agreements of any nature with the Central Bank. - Deposits from credit institutions: deposits of any nature, including credit received, money market transactions and repurchase agreements in the name of credit institutions. - Customer deposits: deposits and repurchase agreements. - Marketable debt securities: bonds and other debt represented by marketable securities, other than those having the substance of subordinated liabilities. - Trading derivatives: 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: financial liabilities arising from the outright sale of financial assets acquired under reverse repurchase agreements, securities loans and sales of borrowed securities. - Subordinated liabilities: financing received which, for the purposes of payment priority, ranks behind ordinary debt. This category also includes the component that has the consideration of financial liability of compound 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 a |
Significant events
Significant events | 12 Months Ended |
Dec. 31, 2020 | |
Significant events | |
Significant events | 3. Significant events The following is a summary of the significant corporate transactions undertaken by the Bank and other significant events over the last three years: a) Corporate events Sale of Custody business On July 24, 2015, Banco Santander (Spain) made an offer to the Bank to purchase their Custody business. The Bank accepted this offer. 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, hereinafter “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 customers 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. 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) 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. 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 Tier II Subordinated Capital 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. 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”. 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 American Depositary Shares (ADS) 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 ADS, 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 ADS of Banco Santander México. Acquisition of Elavon Mexico Holding Company On March 13, 2020, the Bank acquired 49% of the shares representing the capital stock of Santander Merchant Platform Solutions México, S.A. de C.V. (formerly, Elavon Mexico Holding Company, S.A. de C.V.). Santander Merchant Platform Solutions, S.L., a subsidiary of Banco Santander (Spain) acquired the remaining 51% of the capital stock. The agreed purchase price for the total equity stock is 1,680 million pesos. As of December 31, 2020, the Bank measures the investments in associated entities using the equity method (see Note 49). Senior Unsecured Notes On April 14, 2020, the Bank issued Senior Unsecured Notes for USD 1,750 million at an annual interest rate of 5.375% and maturity in 2025. The Senior Unsecured Notes 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 and outside the United States of America, in accordance with Regulation S under the Securities Act. Merger of Santander Vivienda, S.A. de C.V. On October 28, 2019, Banco Santander México obtained the authorization from Banco Santander (Spain) to carry out a merger through absorption between Santander Vivienda, S.A. de C.V. (Santander Vivienda), with the former being the surviving entity, and the latter being the merged entity. On August 28, 2020, SHCP authorized the merger of Banco Santander México as the surviving merging entity with Banco Santander México and Santander Vivienda, as the merged entity, which is extinguished. During the Extraordinary General Meeting of September 30, 2020, it was approved to carry out the merger of Banco Santander México as the merging entity with Santander Vivienda as the merged entity. The total assets and total liabilities of Santander Vivienda merged by Banco Santander México amounted to 63,703 million pesos and 54,925 million pesos, respectively. Incorporation of Openbank Santander México, S.A. de C.V. On October 14, 2020, the Bank received authorization from SHCP to incorporate Openbank Santander México, S.A. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad Regulada, Grupo Financiero Santander México (Openbank) as a subsidiary of the Bank. On November 16, 2020, Banco Santander (Spain) began the process of obtaining the applicable authorizations to operate Openbank as a commercial bank. This entity is not currently operating. Merchant business On December 3, 2020, the Bank entered into an assignment agreement with SMPS Merchant Platform Solutions México, S.A. de C.V. (SMPS), subsidiary entity of Santander Merchant Platform Solutions México, S.A. de C.V., in order to sell all the acquisition contracts related to the merchant business operated and administered by the Bank, along with their respective economic rights. The agreed sell price amounts to 1,600 million pesos. Simultaneously, the Bank and SMPS entered into a service provision contract that stipulates that the Bank will provide administrative, operational and collection support services to cover the needs related to the merchant business acquisition contracts acquired by SMPS. As of the date of issuance of the consolidated financial statements, SPMS has not obtained the registration to be able to operate as a Participant in Disposal Networks ( Participante en Redes de Medios de Disposición ) in its capacity as Acquirer ( Adquirente ) in accordance with the General Provisions applicable to Disposal Networks ( Disposiciones de Carácter general aplicables a las Redes de Medios de Disposición ) issued by the CNBV and the Mexican Central Bank. Once SMPS obtains the authorization, this transaction will be closed, which is estimated to occur during March 2021. b) Other significant events COVID-19 pandemic Support Program On March 26, 2020, the CNBV issued an official letter giving response to the proposal of the Association of Banks of Mexico (ABM by its Spanish acronym) for the implementation of various relief measures (Support Program) in order to support borrowers impacted by the COVID-19 pandemic and with the aim of guaranteeing the stability of the Financial System in Mexico. The Bank implemented in March 2020 the Support Program, which includes the partial or total deferral of principal and/or interest payments for up to four months, with the possibility of extending it to two additional months, with respect to the total amount due from borrowers, without any interest charge. The Support Program was applied to commercial loans, mortgage loans, and revolving and non-revolving consumer loans as well as for agricultural loans, as long as the loan was classified as performing according to Mexican Banking GAAP as of February 28, 2020. In the case of microcredits (microloans), the Support Program was only applied as long as the loan was classified as performing according to Mexican Banking GAAP as of March 31, 2020. The Support Program was only valid if the Bank implemented the benefits no later than 120 days after the aforementioned dates. In the event that the restructuring or renovation of a loan includes deductions, forgiveness, bonuses, or discounts on the due balance that have an impact on lower payments for borrowers, as a mechanism to strengthen the liquidity of them, banks could defer the constitution of the allowance for impairment losses for Mexican Banking GAAP, related with the granting of deductions, forgiveness, bonuses and discounts to the customers. Those modifications to the original conditions of performing loans, in which the risk profiles of the borrower were adjusted and did not imply a total or partial deferral of principal and/or interests are not considered as a restructuring for Mexican Banking GAAP purposes, as long as: · The loans are considered performing as of February 28, 2020. · The contractual procedures for renewal or restructuring ended no later than 120 calendar days after February 2020. · Such modifications shall be applicable for a period that could not exceed more than six months; banks are required to maintain the original established risk profiles according with their policies and procedures. In applying the Support Program, banks must observe the following conditions: · Not to make contractual modifications that explicitly or implicitly consider the capitalization of interests, nor the collection of any type of commission derived from the restructuring. · Credit lines previously authorized to revolving consumer credit card loans should not be restricted, reduced by more than 50% of the unused portion or canceled. · Credit lines previously authorized to commercial loans should not be restricted, reduced or canceled. · Not to request additional guarantees or its substitution in the case of restructuring. Banks must deliver to the CNBV the general conditions of the granted Support Program, as well as a detailed report on the loans benefited within ten business days following the end of each month, beginning in March 2020 with the documentation process of the benefits granted. Bank’s Management applied its professional judgment in analyzing if the contractual terms and conditions of the loans benefited by the Support Program change substantially with respect to the original granted loan, concluding that the modified contractual cash flows on the financial assets do not result in derecognition as established by IFRS 9. As of December 31, 2020, 531,636 loans for an amount of 150,809 million were registered in the Support Program as follows: Support programs By loan type: Commercial, financial and industrial loans 58,479 Mortgage loans 64,235 Installment loans to individuals - 28,095 Revolving consumer credit card loans 8,770 Non-revolving consumer loans 19,325 150,809 The breakdown of Losses on modification of financial assets recognized in the consolidated income statement is presented in Note 11. Credit restructuring measures On September 24, 2020, SHCP and CNBV issued an optional package of measures for credit restructuring. These relief measures encourage and allow banks and other financial intermediaries to restructure the loans of customers who request it. These measures consist in various options such as extension of terms, reduction of interest rates or eventual reductions and a term of up to five years (sixty months), depending on the customer and institution. Additionally, on November 9, 2020, the CNBV issued regulatory facilities for credit institutions that implement “Institutional Restructuring Programs”, in order to offer better credit conditions to their customers. The Bank decided not to apply the optional restructuring measures nor other “Institutional Restructuring Program”. |
Distribution of the Bank's prof
Distribution of the Bank's profit and Earnings per share | 12 Months Ended |
Dec. 31, 2020 | |
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 ended December 31, 2018, 2019 and 2020 approved by the Board of Directors during the annual general meetings are as follows: 2018 2019 2020 Profit of the year 19,356 20,381 18,974 Dividends declared 9,228 10,293 — Dividend per share (pesos) 1.36 1.52 — Date of payment 06/29/2018 and 05/28/2019 and 12/28/2018 12/27/2019 In order to strengthen banking institutions so they could be in a better position to absorb potentials losses that could arise because of the COVID-19 pandemic and have more resources to support the economic slowdown, the CNBV issued two recommendations to avoid: a) b) Considering the effects of the COVID-19 pandemic and on the recommendation received from the CNBV, the Bank decided not to pay dividends or carry out share buybacks in 2020. 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 were determined as follows: 2018 2019 2020 Profit attributable to the Parent 19,353 20,381 18,974 Profit attributable to the Parent (net of non-controlling interest) 19,353 20,381 18,974 Weighted average number of shares outstanding 6,776,220,369 6,775,455,458 6,776,640,349 Basic earnings per share (pesos) 2.86 3.01 2.80 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 were determined as follows: 2018 2019 2020 Profit attributable to the Parent 19,353 20,381 18,974 Profit attributable to the Parent (net of non-controlling interest) 19,353 20,381 18,974 Weighted average number of shares outstanding 6,776,220,369 6,775,455,458 6,776,640,349 Dilutive effect of rights on shares 10,773,988 11,538,899 10,354,008 Adjusted number of shares 6,786,994,357 6,786,994,357 6,786,994,357 Diluted earnings per share (pesos) 2.85 3.00 2.80 |
Compensation of directors, exec
Compensation of directors, executive officers and other key management personnel | 12 Months Ended |
Dec. 31, 2020 | |
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, the nominating and compensation committee, the comprehensive risk management committee and the remuneration committee. During 2019, the General Director of Operations and the General Director of IT decided to step down. During 2020, the Deputy General Director of Global Corporate Banking, the Deputy General Director of New Businesses, the Vice President of Commercial Banking and the Deputy General Director of Transactions and Digital Banking 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, 2020 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, the 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, the nominating and compensation committee, the comprehensive risk management committee, the remuneration committee and the Board of Directors of the Bank amounted to 15 million pesos during 2018, 21 million pesos during 2019 and 23 million pesos during 2020, paid as attendance fees. b) Remuneration of executive officers The aggregate amount for compensation and benefits to executive officers amounted to 496 million pesos during 2018, 456 million pesos during 2019 and 431 million pesos during 2020. 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 331 million pesos as of December 31, 2018, 472 million pesos as of December 31, 2019 and 522 million pesos as of December 31, 2020. d) 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 (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). Details of the plan are presented in Note 42.b. e) Loans to executive officers The loans granted to executive officers amount to 102 million pesos and 124 million pesos as of December 31, 2019 and 2020, respectively. f) COVID-19 pandemic During the COVID-19 pandemic, the Bank’s priority has been the safeguard of the health and safety of the employees. The most relevant measures taken by the Bank to achieve this objective are: · Provide to all the employees special safety and protection measures. · Redefine the way of working to adapt to remote working, reaching more than 7,900 employees working from home. · Ensure the physical and mental well-being of the employees who continued to work in corporate offices, or face to face with customers. These measures included providing masks, gloves and protective screens, as well as the reorganization of physical space to ensure the recommended social distance, combined with strict personal hygiene measures. · Sent out newsletters including updates on the health crisis · Financial well-being was also covered, offering various financial support measures to help employees who are experiencing financial difficulties, such as flexible loans or salary advances. · Training and development programs were adapted to a new online format. In particular, those related to project management, leadership and remote working efficiency. The employees gradually returned to the usual workplaces at the end of May 2020, always following the recommendations of Mexican government, respecting the individual needs of each employee and based on three pillars: development and implementation of health and safety protocols, prioritization and monitoring the health status of the employees, and tracking and tracing (through health apps). |
Cash and balances with the Cent
Cash and balances with the Central Bank | 12 Months Ended |
Dec. 31, 2020 | |
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: 12/31/2019 12/31/2020 Cash 25,793 24,791 Central Bank compulsory deposits 28,094 23,978 Deposits in the Central Bank 11,292 22,264 Accrued interest 28 20 65,207 71,053 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. As of December 31, 2020, the Bank recognized an special deposit in the Central Bank for an amount of $7,700 million pesos, based on Circular 9/2019 issued by the Mexican Central Bank on June 13, 2019. This Circular 9/2019 allows credit institutions that have Bonos de Regulación Monetaria Reportables (BREMS R) to use these financial instruments to guarantee overdrafts in their account in order to promote the healthy development of the Mexican financial system. On April 1, 2020, the Mexican Central Bank in order to promote the healthy development of the financial system as a consequence of COVID-19 pandemic considers convenient to reduce the total amount of compulsory deposits through which it regulates the excess liquidity in the money market, so that banks may have additional resources to strengthen the continuity of their active operations, while maintaining an adequate implementation of monetary policy. 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, 2020 | |
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: 12/31/2019 12/31/2020 Classification: Other financial assets at fair value through profit or loss 54,138 59,512 Financial assets at amortized cost 36,895 64,371 91,033 123,883 Type: Reciprocal accounts 14,597 11,610 Time deposits 29 10 Guarantee deposits - Collateral delivered for OTC financial derivatives transactions (Note 32) 14,300 27,954 Reverse repurchase agreements 54,138 59,512 Other accounts 7,969 24,797 91,033 123,883 Currency: Peso 73,268 94,084 USD 17,429 29,620 Other currencies 336 179 91,033 123,883 As of December 31, 2019 and 2020, time deposits consist of 29 million pesos and 10 million pesos, respectively related to deposits that the Bank holds in Mexican banks that re-prices every 182 days with a fixed annual interest rate of 1.5%. As of December 31, 2019 and 2020, 14,300 million pesos and 27,954 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, 2019 and 2020, 54,097 million pesos and 59,599 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, 2020 | |
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: 12/31/2019 12/31/2020 Classification: Financial assets at fair value through profit or loss 110,613 206,272 Financial assets at fair value through other comprehensive income 233,463 355,321 Financial assets at amortized cost 11,257 11,453 355,333 573,046 Type: Mexican government debt securities 273,487 443,909 Of which: Collateral delivered for OTC financial derivatives transactions (Note 32) 4,472 744 Foreign government debt securities 69,113 119,276 Of which: Collateral delivered for OTC financial derivatives transactions (Note 32) — 4,562 Brazilian Government Notes 30,225 23,870 US Government Treasury Bills (T-BILLS) 34,506 91,976 US Government Treasury Notes (T-NOTES) 4,382 3,430 Debt securities issued by financial institutions 2,270 3,413 Other debt securities 10,463 6,448 355,333 573,046 Currency: Peso 243,132 405,184 USD 47,897 108,411 Brazilian Real (BRL) 30,225 23,870 Other currencies 34,079 35,581 355,333 573,046 The breakdown of the Debt instruments classified as at fair value through profit or loss is as follows: 12/31/2019 12/31/2020 Federal Treasury Securities (CETES) 25,348 81,017 United Mexican States Bonds (UMS) 30 141 Federal Mexican Government Development Bonds (BONDES) 29,708 22,345 M and M10 Mexican Government Bonds (M Bonds) 11,601 51,313 Mexican Bank Saving Protection Bonds (BPATS) 13,750 22,623 Federal Mexican Government Development Bonds in UDIS (1) (UDIBONDS) 4,619 4,469 T-BILLS 10,928 12,342 T-NOTES 4,382 3,430 Other debt securities 10,247 8,592 110,613 206,272 UDIS are Unidades de Inversión , a peso-equivalent unit of account indexed for Mexican inflation. UDI is a unit 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, hereinafter “INPC” by its Spanish acronym). Under a UDI-based loan or financial instrument, the customer’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. The customer in an amount of pesos equivalent makes principal and interest payments to the amount due in UDI at the stated value of UDI on the day of payment. As of December 31, 2019 and 2020, one UDI was equal to 6.39901 pesos and 6.60559 pesos, respectively. As of December 31, 2019 and 2020, 4,472 million pesos and 5,306 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, 2019 and 2020, 8,678 million pesos (as of December 31, 2019 there were no transactions with the Central Bank) and 10,729 million pesos (4,655 million pesos in which the lender was 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, 2019 and 2020, 92,764 million pesos and 201,477 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 at Financial assets at fair value through other comprehensive income is as follows: 12/31/2019 12/31/2020 CETES — 1,272 UMS 43,058 48,447 M, M3 and M5 Mexican Government Bonds (M Bonds) 117,974 189,137 BPATS 11,499 8,616 UDIBONDS 4,643 3,076 T-BILLS 23,578 79,634 Brazilian Government Notes 30,225 23,870 Other debt securities 2,486 1,269 233,463 355,321 As of December 31, 2019 and 2020, 96,681 million pesos and 129,240 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. As of December 31, 2020, 4,998 million pesos, 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, of which in which the lender is the Central Bank. The following is a breakdown of the gross carrying amount of Debt instruments – Financial assets at fair value through other comprehensive income as of December 31, 2020: 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 241,932 — 241,932 — 241,932 Foreign government debt instruments 103,504 — 103,504 — 103,504 Debt instruments issued by the Central Bank 8,616 — 8,616 — 8,616 Other fixed-income interest debt instruments 1,269 — 1,269 — 1,269 355,321 — 355,321 — 355,321 During 2020, there were no transfers between stages related to the fair value (neither the corresponding allowance for impairment losses) of Debt instruments – Financial assets at fair value through other comprehensive income. The breakdown by issuer rating of Debt instruments as of 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 % The breakdown by issuer rating of Debt instruments as of December 31, 2020 is as follows: Private Debt Sovereign Debt Total % AAA — 95,406 95,406 16.65 % A 9,596 391,651 401,247 70.02 % BBB 267 48,587 48,854 8.53 % BB — 3,669 3,669 0.64 % Below B — 23,870 23,870 4.17 % 9,863 563,183 573,046 100 % As of December 31, 2019 and 2020, BBB ratings balance includes mainly sovereign exposures in Mexico. As of December 31, 2019 and 2020, BB ratings balance includes mainly sovereign exposures in Mexico. As of December 31, 2020, Below B ratings balance includes mainly debt instruments issued by Petróleos Mexicanos (Mexican state-owned petroleum company) and Brazilian Government Notes. In April 2020, the rating agency Fitch downgraded Petróleos Mexicanos’ Long-Term Foreign and Local Currency Issuer Default Ratings (IDR) to BB- from BB. The breakdown of the Debt instruments classified as at Financial assets at amortized cost is as follows: 12/31/2019 12/31/2020 Special CETES 3,471 3,668 Bonos de Regulación Monetaria Reportables - (BREMS R) 7,786 7,785 11,257 11,453 Type: Unquoted 3,471 3,668 Quoted 7,786 7,785 As of December 31, 2019 and 2020, 4,999 million pesos and 7,706 million pesos, respectively, of BREMS R issued by the Mexican Central Bank have been pledged in connection with repurchase agreement 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 Debt instruments – Financial assets at amortized cost as of December 31, 2020: Gross carrying amount Stage 1 Stage 2 Subtotal Stage 3 Total Financial assets at amortized cost Of which: Mexican government debt instruments 11,453 — 11,453 — 11,453 During 2020, there were no transfers between stages related to the gross carrying amount of Debt instruments – Financial assets at amortized cost. b) Changes The changes in Debt instruments – Financial assets at fair value through other comprehensive income, were as follows: 2018 2019 2020 Beginning balance 164,947 154,483 233,463 Reclassification from Available-for-sale to Amortized cost (73,131) — — Beginning balance as restated 91,816 154,483 233,463 Net additions/(disposals) 63,824 75,061 119,141 Valuation adjustments (1,226) 4,108 3,560 Amounts reclassified to the consolidated income statement 69 (189) (843) Balance at year-end 154,483 233,463 355,321 c) Allowance for impairment losses The following is a breakdown of the allowance for impairment losses of Debt instruments classified 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 impairment losses of Debt instruments classified at fair value through other comprehensive income and at amortized cost as of December 31, 2020: Allowance for impairment losses Stage 1 Stage 2 Stage 3 Total Written-off financial assets Financial assets at fair value through other comprehensive income 91 — — 91 — Of which: Mexican government debt instruments 89 — — 89 — Other fixed-income interest debt instruments 2 — — 2 — Financial assets at amortized cost — — — — — 91 — — 91 — The change in the allowance for impairment losses of Debt instruments – Financial assets at fair value through other comprehensive income during 2019 and 2020, amounts to 3 million pesos and 68 million pesos, respectively. There were no allowance for impairment losses recognized during 2019 and 2020, related to Debt instruments – 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, 2020 | |
Equity instruments | |
Equity instruments | 9. Equity instruments a) Breakdown The breakdown by classification and type of Equity instruments is as follows: 12/31/2019 12/31/2020 Classification: Financial assets at fair value through profit or loss 5,767 1,911 Financial assets at fair value through other comprehensive income 642 768 6,409 2,679 Type: Shares of Mexican companies 6,409 2,679 Shares of foreign companies — — 6,409 2,679 As of December 31, 2019 and 2020, 14 million pesos and 137 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, 2019, there were no equity instruments pledged in connection with securities loan transactions. As of December 31, 2020, 7 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. Note 45.a contains a breakdown of the remaining maturity periods of these assets. b) Changes The changes in Equity instruments – Financial assets at fair value through other comprehensive income, were as follows: 2018 2019 2020 Beginning balance as of January 1 795 535 642 Recognition of own equity instruments held for future equity-settled share-based payments (Note 3) (247) — — Transfer to non-current assets held for sale — — — Net additions/(disposals) — — — Valuation adjustments (13) 107 126 Amounts reclassified to the consolidated income statement — — — Balance at year-end 535 642 768 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. |
Trading derivatives (assets and
Trading derivatives (assets and liabilities) and Short positions | 12 Months Ended |
Dec. 31, 2020 | |
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): 12/31/2019 12/31/2020 Debit Credit Debit Credit Balance Balance Balance Balance Interest rate risk 80,499 76,639 196,402 189,841 Currency risk 71,026 67,623 99,606 95,406 Market price risk 222 219 163 864 151,747 144,481 296,171 286,111 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: 12/31/2019 12/31/2020 Securities loans: Debt instruments 8,280 15,263 Equity instruments — — 8,280 15,263 Short sales: Debt instruments 839 102 9,119 15,365 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, 2020 | |
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: 12/31/2019 12/31/2020 Other financial assets at fair value through profit or loss 25,789 10,844 Financial assets at fair value through other comprehensive income 2,875 — Financial assets at amortized cost 699,671 687,432 728,335 698,276 Of which: Before allowance for impairment losses 750,305 723,827 Allowance for impairment losses (21,970) (25,551) 728,335 698,276 As of December 31, 2019 and 2020, 5,153 million pesos and 4,123 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: 12/31/2019 12/31/2020 By loan type: Commercial, financial and industrial loans 373,943 339,545 Public sector loans 70,450 73,016 Mortgage loans 147,810 167,818 Reverse repurchase agreements 25,789 10,844 Installment loans to individuals - Revolving consumer credit card loans 57,760 51,266 Non-revolving consumer loans 56,601 59,429 Impaired loans 17,952 21,909 750,305 723,827 By borrower sector: Public sector 70,450 73,016 Individuals 274,053 290,580 Communications and transportation 35,773 33,250 Construction 47,872 38,160 Manufacturing 63,652 53,187 Services 122,970 109,180 Tourism 25,244 26,275 Other sectors 110,291 100,179 750,305 723,827 By geographical area: Mexico 750,305 723,827 750,305 723,827 By interest rate: Fixed rate 270,930 307,990 Floating rate 479,375 415,837 750,305 723,827 As of December 31, 2019 and 2020, 8,115 million pesos and 6,398 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 Loans and advances to customers The following is a breakdown of the gross carrying amount of Loans and advances to customers – Financial assets at fair value through other comprehensive income and 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 Of which: Commercial, financial and industrial loans 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 gross carrying amount of Loans and advances to customers – Financial assets at amortized cost as of December 31, 2020: Fair value/Gross carrying amount Stage 1 Stage 2 Subtotal Stage 3 (*) Total Financial assets at amortized cost 620,543 70,531 691,074 21,909 712,983 Of which: Commercial, financial and industrial loans 291,980 47,565 339,545 6,530 346,075 Public sector loans 73,016 — 73,016 — 73,016 Mortgage loans 157,054 10,764 167,818 9,847 177,665 Installment loans to individuals - 98,493 12,202 110,695 5,532 116,227 Revolving consumer credit card loans 44,309 6,957 51,266 2,543 53,809 Non-revolving consumer loans 54,184 5,245 59,429 2,989 62,418 (*) As of December 31, 2020, there were no POCI financial assets. The following is a breakdown of the transfers of Loans and advances to customers – Financial assets at amortized cost between stages as of December 31, 2020: Gross carrying amount Stage 1 Stage 2 Stage 3 Total As of January 1, 2020 676,508 27,176 17,952 721,636 Transfers: Transfer from Stage 1 to Stage 2 4,700 (4,700) — — Transfer from Stage 1 to Stage 3 581 — (581) — Transfer from Stage 2 to Stage 3 — 1,237 (1,237) — Transfer from Stage 2 to Stage 1 (36,761) 36,761 — — Transfer from Stage 3 to Stage 2 — 19,702 — Transfer from Stage 3 to Stage 1 (8,792) — 8,792 — Remaining in same Stage (*) 32,952 1,224 Financial assets derecognized during the period other than write-offs (241) (18) (22) (281) Originated financial assets 622,049 — — 622,049 Write-offs — — (21,590) Other movements (59,785) (3,175) (2,331) (65,291) As of December 31, 2020 620,543 70,531 21,909 712,983 (*) Includes mainly payments of principal and accrued interest. · The change in the gross carrying amount of Loans and advances to customers – Financial assets at amortized that were transferred from Stage 2 to Stage 1 amounting 36,761 million pesos, resulted in an additional allowance for impairment losses of 4,717 million pesos. The main driver of the change is the increase in the “Lifetime PD” used to determine the allowance for impairment losses. · The change in the gross carrying amount of Loans and advances to customers – Financial assets at amortized that were transferred from Stage 3 to Stage 2 amounting 19,702 million pesos, result in an additional allowance for impairment losses of 559 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 Loans and advances to customers – Financial assets at amortized that were transferred from Stage 3 to Stage 1 amounting 8,792 million pesos, result in a decrease in the allowance for impairment losses of 4,700 million pesos. The main driver of the change is the use of a twelve-month PD instead of a “Lifetime PD”. · The gross carrying amount of financial instruments originated in 2020 that amounts to 622,049 million pesos, results in an increase in the allowance for impairment losses of 2,537 million pesos. d) Allowance for impairment losses The changes in the allowance for impairment losses on Loans and advances to customers were as follows: 2018 2019 2020 Beginning balance as of January 1 (as originally presented) (16,929) (21,516) (21,970) Adjustments on initial adoption of IFRS 9 (3,270) — — Beginning balance as of January 1 (restated) (20,199) (21,516) (21,970) Impairment losses on financial assets - Financial assets at amortized cost (*) (20,947) (21,673) (25,184) Impairment losses on financial assets - Financial assets at fair value through other comprehensive income (2) (5) — Write-offs 19,678 21,154 21,590 Others (46) 70 13 Balance at year-end (21,516) (21,970) (25,551) Of which: By geographical location of risk: Mexico (21,516) (21,970) (25,551) (*) The post-model adjustments or overlays recognized within the allowance for impairment losses as of December 31, 2020, are as follows: Allowance for impairment losses IFRS 9 Model Macroeconomic overlay Impairment overlay Total Total Overlay to IFRS 9 Model Financial assets at amortized cost (24,093) (613) (845) (25,551) Of which: Commercial, financial and industrial loans (7,757) (558) (572) (8,887) Public sector loans (14) (1) — (15) Mortgage loans (4,108) 30 — (4,078) (1)% Installment loans to individuals - (12,214) (84) (273) (12,571) Revolving consumer credit card loans (6,010) (67) (273) (6,350) Non-revolving consumer loans (6,204) (17) — (6,221) The following is a breakdown of the allowance for impairment losses and the write-offs as of December 31, 2020: Allowance for impairment losses Stage 1 Stage 2 Stage 3 Total Write-offs Financial assets at amortized cost (6,215) (8,902) (10,434) (25,551) (21,590) Of which: Commercial, financial and industrial loans (2,047) (3,438) (3,402) (8,887) (7,919) Public sector loans (15) — — (15) — Mortgage loans (625) (824) (2,629) (4,078) (1,145) Installment loans to individuals - (3,528) (4,640) (4,403) (12,526) Revolving consumer credit card loans (1,526) (2,837) (1,987) (6,350) (7,020) Non-revolving consumer loans (2,002) (1,803) (2,416) (6,221) (5,506) The contractual amount outstanding of Loans and advances to customers written-off during 2020 that are still subject to enforcement activities, amounts to 21,863 million pesos. The following is a breakdown of the transfers of the allowance for impairment losses of Loans and advances to customers between stages as of December 31, 2020: Allowance for impairment losses Stage 1 Stage 2 Stage 3 Total Beginning balance as of January 1 7,254 5,466 9,250 21,970 As of January 1, 2020 Transfers: Transfer from Stage 1 to Stage 2 121 (695) — (574) Transfer from Stage 1 to Stage 3 24 — (101) (77) Transfer from Stage 2 to Stage 3 — 118 (248) (130) Transfer from Stage 2 to Stage 1 (412) 5,129 — 4,717 Transfer from Stage 3 to Stage 2 — (383) 942 559 Transfer from Stage 3 to Stage 1 (347) — 5,047 4,700 Financial assets derecognized during the period other than write-offs (7) (8) (47) (62) Contracts remaining at the same stage (2,718) (422) 17,813 14,673 Write-offs — — (21,590) (21,590) Originated financial assets 2,537 — — 2,537 Foreign exchange and other movements (237) (303) (632) (1,172) As of December 31, 2020 6,215 8,902 10,434 25,551 Post-model adjustments - overlays The following is a breakdown by stages of the post-model adjustments or overlays recognized within the allowance for loan losses corresponding to Loans and advances to customers – Financial assets at amortized cost as of December 31, 2020: Overlays Stage 1 Stage 2 Stage 3 Total Macroeconomic overlay (397) (202) (14) (613) Impairment overlay — (819) (26) (845) Total (397) (1,021) (40) (1,458) The breakdown by stages of the macroeconomic overlay recognized within the allowance for loan losses as of December 31, 2020 is as follows: Macroeconomic overlay Stage 1 Stage 2 Stage 3 Total Macroeconomic overlay (397) (202) (14) (613) Of which: Commercial, financial and industrial loans (374) (176) (8) (558) Public sector loans (1) — — (1) Mortgage loans 4 6 20 30 Installment loans to individuals - (26) (32) (26) (84) Revolving consumer credit card loans (21) (27) (19) (67) Non-revolving consumer loans (5) (5) (7) (17) The breakdown by stages of the impairment overlay recognized within the allowance for loan losses as of December 31, 2020 is as follows: Impairment overlay Stage 1 Stage 2 Stage 3 Total Impairment overlay — (819) (26) (845) Of which: Commercial, financial and industrial loans — (562) (10) (572) Installment to loans to individuals - — (257) (16) (273) Revolving consumer credit card loans — (257) (16) (273) e) Impaired loans The breakdown of the changes in the balance of Loans and advances to customers – Financial assets at amortized cost that are credit-impaired is as follows: 2018 2019 2020 Beginning balance 18,132 18,429 17,952 Additions 32,461 31,418 37,216 Transfers to performing loans (12,486) (10,741) (11,669) Written-off loans (19,678) (21,154) (21,590) Balance at year - end 18,429 17,952 21,909 The breakdown between no past due and past due as of December 31, 2019 of the balance of Loans and advances to customers – Financial assets at amortized cost that are considered to be credit-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 The breakdown between no past due and past due as of December 31, 2020 of the balance of Loans and advances to customers – Financial assets at amortized cost that are considered to be credit-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 2,324 3,310 326 196 374 6,530 Mortgage loans 1,982 2,097 741 1,084 3,943 9,847 Installment loans to individuals Of which: Revolving consumer credit card loans 868 1,675 — — — 2,543 Non-revolving consumer loans 474 2,515 — — — 2,989 5,648 9,597 1,067 1,280 4,317 21,909 f) Renegotiated loans The Bank sometimes makes concessions or modifications to the original terms of loans as a response to the customer’s financial difficulties, rather than taking possession or to enforce otherwise collection of collateral. Renegotiated loans include restructured or refinancing transactions of performing loans and credit-impaired loans, as contractual terms of a loan may be modified due to not only concerns about the customer’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 restructured transaction is a transaction with respect to which, for economic or legal reasons relating to current or foreseeable financial difficulties of the customer, the financial terms and conditions are modified in order to facilitate the payment of the debt (principal and interest) because the customer is unable, or might foreseeably become unable, to comply with the aforementioned terms and conditions in due time and form, even if such modification is envisaged in the agreement. A refinancing transaction is a transaction that is granted or used, for reasons relating to current or foreseeable financial difficulties of the customer, to repay one or more of the transactions granted to it, or through which the payments on such transactions are brought fully or partially up to date, in order to enable the customers of the cancelled or refinanced transactions to repay their debt (principal and interest) because they are unable, or might foreseeably become unable, to comply with the conditions thereof in due time and form. A breakdown of renegotiated loans during the years ended December 31, 2018, 2019 and 2020 is as follows: For the Year Ended 12/31/2018 For the Year Ended 12/31/2019 For the Year Ended 12/31/2020 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 1,318 — 3,011 4,329 1,215 — 2,318 3,533 2,158 — 912 3,070 Mortgage loans 603 — 530 1,133 369 — 293 662 356 — 329 685 Installment loans to individuals 1,147 — 205 1,352 850 — 306 1,156 1,627 — 272 1,899 3,068 — 3,746 6,814 2,434 — 2,917 5,351 4,141 — 1,513 5,654 Percentage 45 % — 55 % 100 % 45 % — 55 % 100 % 73 % — 27 % 100 % Credit-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. See Note 48 b) 4.7 Recovery and collections management for additional information regarding renegotiated loans. g) Modification on financial instruments in the context of COVID-19 pandemic The relief measures contained in the Support Program resulted in a modification to the contractual terms of the loans subject to the Support Program, that did not result in derecognition of the financial assets under IFRS 9. The breakdown of Gains/(losses) on modification of financial assets (net) recognized in the consolidated income statement as of December 31, 2020 is as follows: 2020 Commercial, financial and industrial loans (605) Mortgage loans (224) Installment loans to individuals - Non-revolving consumer loans (914) (1,743) h) 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 in 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 customer’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 co-signers, where individuals or companies act as guarantors of the loan transaction. Collaterals and other credit enhancements related to the commercial loan 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 customer 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 loan 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) 4.3 Credit risk mitigation techniques for additional information regarding credit risk mitigation. The breakdown is as follows: 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: 769,788 316,232 453,556 — — 69,732 148,360 8,118 Of which: Loans and advances to credit institutions 36,895 36,895 — — — — — — Loans and advances to customers: 721,636 268,080 453,556 — — 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 19,077 137,132 — — — 120,461 — Installment loans to individuals: 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 — — — — — — Available lines of credit cards and non-revolving consumer loans — — — — — — — — 1,428,587 872,609 555,978 16,759 82,328 69,732 148,360 8,118 (1) Correspond to loans and advances to customers 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 advances to customers are secured by multiple credit enhancements. (2) Appraisals to support estimated fair value of the real estate collaterals are obtained at loan origination. (3) Public sector loan rights are guaranteed by Mexican government entities. 12/31/2020 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 502,443 473,908 28,535 23,052 5,483 — — — Other financial assets at fair value through profit or loss 70,356 — 70,356 — 59,557 — — — Financial assets at fair value through other comprehensive income 355,321 355,321 — — — — — — Financial assets at amortized cost: 712,983 208,053 504,930 — — 83,544 176,841 7,073 Of which: Loans and advances to credit institutions — — — — — — — — Loans and advances to customers 712,983 208,053 504,930 — — 83,544 176,841 7,073 Commercial, financial and industrial loans 346,075 72,756 273,319 — — 45,694 29,342 7,073 Public sector loans 73,016 21,510 51,506 — — 34,677 — — Mortgage loans 177,665 5,007 172,658 — — 3,140 140,096 — Installment loans to individuals: — — Revolving consumer credit card loans 53,809 53,809 — — — — — — Non-revolving consumer loans 62,418 54,971 7,447 — — 33 7,403 — Debt instruments — — — — — — — — Guarantees and loan commitments 83,645 83,645 — — — — — — 1,724,748 1,120,927 603,821 23,052 65,040 83,544 176,841 7,073 (1) Correspond to loans and advances to customers 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 advances to customers are secured by multiple credit enhancements. (2) Appraisals to support estimated fair value of the real estate collaterals are obtained at loan origination. (3) Public sector loan rights are guaranteed by Mexican government entities. Credit quality information For commercial loans (except Small and medium-sized enterprises or SME) 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 PD 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 to Small and medium-sized enterprises (SME), 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 considering internal ratings. However, based on criteria set forth by the CNBV and a combination of internal scorecards, customer’s 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 SME) and public sector loans and their related guarantees and loan commitments not recognized in the consolidated balance sheet: 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 SME) — — — — — 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 in 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 12/31/2020 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 SME) — — — — — — — 1,751 11,269 41,729 26,484 68,363 84,532 21,204 12,389 4,156 3,334 4,257 998 704 555 7,806 289,531 Public sector loans — — — — — — — — 8,966 — 5,005 8,893 27,846 8,736 — — — — — — — — 59,446 — — — — — 7,806 348,977 Financial instruments not recognized in the consolidated balance sheet: Guarantees 520 — 157 8,474 16,638 3,945 2,251 10,032 11,108 3,916 2,868 101 — — 39 — — 75 6 2,399 62,529 Loan commitments — — — 40 274 124 21 412 3,516 9,606 5,006 980 127 — 887 — — — — 9 21,002 — 2,272 7,874 1,081 127 — 926 — — 75 6 2,408 83,531 — 432,508 The tables below represent the classification by rating category of commercial loans (SME), mortgage loans, revolving consumer credit card loans and non-revolving consumer loans and their related commitments not recognized in the consolidated balance sheet: 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 (SME) 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 in 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 12/31/2020 Rating Category A-1 A-2 B-1 B-2 B-3 C-1 C-2 D E Not Rated Total Commercial loans (SME) 44,392 4,779 2,771 2,327 4,455 1,566 588 3,762 1,092 — 65,732 Mortgage loans 138,867 6,170 3,626 6,523 2,218 5,295 4,303 4,355 1,443 190 172,990 Revolving consumer credit card loans 9,804 16,790 7,746 3,826 2,625 3,586 3,891 4,612 927 — 53,807 Non-revolving consumer loans 14,225 5,548 17,865 8,667 4,427 2,675 2,524 1,050 4,573 — 61,554 207,288 33,287 32,008 21,343 13,725 13,122 11,306 13,779 8,035 190 354,083 Financial instruments not recognized in the consolidated balance sheet: Available lines of credit cards and non-revolving consumer loans 29,062 10,754 2,698 1,251 905 938 701 248 89 — 46,646 Guarantees 1 — — — — — — — — — 1 Loan commitments 103 — — — — — — — 8 — 111 29,166 10,754 2,698 1,251 905 938 701 248 97 — 46,758 236,454 44,041 34,706 22,594 14,630 14,060 12,007 14,027 8,132 190 400,841 i) 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. As of December 31, 2019, and 2020, the securitized loans retained in the consolidated balance sheet related to securitized mortgage assets amounts to 130 million pesos and 114 million pesos, respectively. Securitization is used as a tool for diversifying the Bank’s liquidity sources. The Bank had not performed any securitization in 2018, 2019 and 2020 and prior years. This securitization corresponds to a transaction performed by the merged entity Santander Vivienda in 2006. The loans transferred through securitization are mortgage loans. |
Hedging derivatives
Hedging derivatives | 12 Months Ended |
Dec. 31, 2020 | |
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. As mentioned in Note 2, the Bank has been applying hedge accounting under IAS 39. The Bank’s risk management strategy has not changed due to the COVID-19 pandemic and determined that the timing of forecast transactions has no changed and the cash flows are truly expected to occur. As of December 31, 2020, the Bank has cash flow hedges of LIBOR interest risk. Whenever the replacement occurs, the Bank expects to apply the two phases amendments related to hedge accounting issued by the IASB (IBOR Reform Phase 1 and Phase 2). However, there is uncertainty about when and how replacement may occur. When the change occurs to the hedged items or the hedging instruments, the Bank will remeasure the cumulative change in fair value of the hedged items or the fair value of the CCS, respectively. Hedging relationships may experience hedge ineffectiveness if there is a timing or other mismatch between the transition of the hedged items and that of the hedging instruments. The Bank does not expect that amounts recognized in other comprehensive income under Valuation adjustments – Cash flow hedges will be immediately reclassified to the consolidated income statement due to IBOR Reform. a) Breakdown The breakdown by type of hedge of the financial derivatives qualifying for hedge accounting is as follows: 12/31/2019 12/31/2020 Assets Liabilities Assets Liabilities Fair value hedges 925 5,306 11 16,604 Cash flow hedges 8,331 2,217 8,295 2,474 9,256 7,523 8,306 19,078 b) Quantitative information Fair value hedges 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 UDI UDIBONDS - Interest rate and inflation risk As of December 31, 2020, the hedging financial derivative positions are as follows: Nominal (Million in Nominal Transaction Transaction (Million Pesos) Currency) Currency Hedged Item and Risk Hedged IRS 2,333 2,333 Peso Loans - Interest rate risk IRS 1,000 1,000 Peso Promissory notes - Interest rate risk IRS 47,047 47,047 Peso M Bonds - Interest rate risk CCS 265 13 Euro Loans - Interest rate and foreign exchange risk CCS 16 1 USD Loans - Interest rate and foreign exchange risk CCS 23,431 1,089 Euro UMS - Interest rate and foreign exchange risk CCS 7,824 398 USD UMS - Interest rate and foreign exchange risk CCS 1,492 58 Pound sterling UMS - Interest rate and foreign exchange risk CCS 1,895 405 UDI UDIBONDS - Interest rate and inflation risk The fair value hedges carried out by the Bank are extended in certain cases up to the year 2034. For 2018, 2019 and 2020, 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 474 million pesos, (667) million pesos and (6,884) million pesos, respectively (see Note 39). For 2018, 2019 and 2020, 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 (606) million pesos, 731 million pesos and 6,427 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, 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 As of December 31, 2020, 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 872 69 USD Loans - Foreign exchange risk CCS 655 39 Euro Loans - Foreign exchange risk CCS 10,800 543 USD Senior Unsecured Notes - Foreign exchange risk CCS 2,284 116 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 22,644 6,662 BRL Brazilian Government Notes - Foreign exchange risk Forward Fx-USD 32,122 1,137 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). As of December 31, 2019 and 2020, included in other comprehensive income under Valuation adjustments – Cash flow hedges, are 17 million pesos and (13) 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 Valuation adjustments – 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 2022 for Senior Unsecured Notes, up to the year 2025 for Brazilian Government 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: 2018 2019 2020 Balance at January 1 356 (290) (276) Valuation adjustments (882) 29 (376) Amounts recycled to consolidated income statement (40) (9) (43) Of which: Income from cash flow hedging financial derivatives and discontinued cash flow hedge accounting (42) (11) (43) Cash flow hedges ineffectiveness (Note 39) 2 2 — Income taxes 276 (6) 126 Balance at December 31 (290) (276) (569) As of December 31, 2020, 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 264 698 739 1 1,702 Cash flows to be paid (670) (884) (959) (2) (2,515) 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, 2020 | |
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, 2019 and 2020, non-current assets held for sale consist of foreclosed assets that amounted to 935 million pesos and 551 million pesos, respectively. In 2018, 2019 and 2020, the Bank recognized a gain of 38 million pesos, a gain of 42 million pesos and a gain of 9 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, 2018, 2019 and 2020 the Bank recognized an impairment loss of 5 million pesos, 370 million pesos and 119 million pesos, respectively 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, 2019 1,277 Additions 146 Disposals (118) Impairment losses (370) Balances at December 31, 2019 935 Additions 172 Disposals (437) Impairment losses (119) Balances at December 31, 2020 551 |
Tangible assets
Tangible assets | 12 Months Ended |
Dec. 31, 2020 | |
Tangible assets | |
Tangible assets | 14. Tangible assets a) Changes The changes in Tangible assets in the consolidated balance sheet were as follows: Tangible Assets Cost: Balances at January 1, 2019 16,828 Additions 3,208 Disposals (207) Balances at December 31, 2019 19,829 Additions 3,429 Disposals (171) Balances at December 31, 2020 23,087 Accumulated depreciation: Balances at January 1, 2019 (8,114) Additions (1,378) Disposals 205 Balances at December 31, 2019 (9,287) Additions (1,766) Disposals 172 Balances at December 31, 2020 (10,881) Balances at December 31, 2019 10,542 Balances at December 31, 2020 12,206 As of December 31, 2020, 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 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 Other fixtures 702 — 702 Balances at December 31, 2019 19,829 (9,287) 10,542 Buildings 13,125 (6,631) 6,494 IT equipment and fixtures 6,059 (2,594) 3,465 Furniture and vehicles 3,217 (1,656) 1,561 Other fixtures 686 — 686 Balances at December 31, 2020 23,087 (10,881) 12,206 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
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 of right-of-use assets (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 Remeasurement of right-of-use assets 214 — — 214 Additions in right-of-use assets 1,079 — 244 1,323 Depreciation (1,419) (2) (55) (1,476) Disposals (22) (7) — (29) Balances at December 31, 2020 5,435 — 208 5,643 b) Lease liabilities Following is an analysis of activity in lease liabilities as of December 31, 2020: 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 Interest expense 679 New contracts 1,271 Remeasurement on leases liabilities 198 Disposals (29) Payments (1,907) Balances at December 31, 2020 6,131 The following table sets out a maturity analysis of lease payments: December 31, 2020 Maturity analysis - contractual undiscounted cash flows Less than one year 1,219 One to three years 2,403 Three to five years 1,801 More than five years 3,016 Total undiscounted lease liabilities at December 31, 2020 8,439 Lease liabilities at December 31, 2020 6,131 Current 975 Long-term 5,156 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 December 31, 2020 Amounts recognized in the consolidated income statement: 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 94 Expense relating to variable lease payments not included in lease liabilities — Cash flows from lease liabilities: Total cash flows (2,109) |
Intangible assets - Goodwill
Intangible assets - Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Intangible assets - Goodwill | |
Intangible assets - Goodwill | 16. Intangible assets – Goodwill As of December 31, 2019 and 2020, 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) 7.54% Of which: Cost of Equity(3) 11.23% Cost of Debt(4) 5.27% Equity Structure(5) 38% Equity / 62% Debt (1) The period of projections of cash flow are prepared using internal budgets and growth plans of Banks’ 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 (6.26%), · β = Beta (0.779), 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). In addition to the impairment test performed annually and having considered the unprecedented uncertainty created by COVID-19 pandemic and its potential impact on the carrying value of goodwill, Bank’s Management performed an interim impairment test as of September 30, 2020. The Bank did not recognize any impairment losses on Goodwill on such date. The assumptions used in performing the interim impairment test were updated to reflect lower budgeted earnings in the next years and a delay in the return to the pre-crisis levels of turnover and profitability. Based on the foregoing, and in accordance with the estimates, projections and measurements available to the Bank’s Management in 2018, 2019 and 2020, the Bank has not recognized any impairment losses on Goodwill. |
Intangible assets - Other intan
Intangible assets - Other intangible assets | 12 Months Ended |
Dec. 31, 2020 | |
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, 2019 13,753 Additions 3,236 Disposals — Balances at December 31, 2019 16,989 Additions 2,248 Disposals — Balances at December 31, 2020 19,237 Accumulated amortization and impairment: Balances at January 1, 2019 (7,443) Additions (2,448) Disposals — Balances at December 31, 2019 (9,891) Additions (2,473) Disposals — Balances at December 31, 2020 (12,364) Balances at December 31, 2019 7,098 Balances at December 31, 2020 6,873 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 16,903 (9,858) 7,045 Others 10 years 86 (33) 53 Balances at December 31, 2019 16,989 (9,891) 7,098 IT developments 3 years 19,149 (12,323) 6,826 Others 10 years 88 (41) 47 Balances at December 31, 2020 19,237 (12,364) 6,873 As of December 31, 2019 and 2020, 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, 2020 | |
Other assets | |
Other assets | 18. Other assets The breakdown of Other assets is as follows: 12/31/2019 12/31/2020 Credit and debit card operating balances 2,577 2,337 Insurance commission receivables 1,278 1,672 Prepaid expenses 695 974 Other 6,623 10,776 11,173 15,759 The following is a breakdown by maturity of Other assets that are measured at amortized cost as of December 31, 2020: Current More than 30 days less than 60 More than 60 days less than 90 More than 90 days Total Other assets Credit and debit card operating balances 2,130 101 30 76 2,337 Insurance commission receivables 59 198 187 1,228 1,672 Prepaid expenses 968 — — 6 974 Other 4,577 2,303 2,397 2,434 11,711 Expected credit loss rate Gross carrying amount 7,734 2,602 2,614 3,744 16,694 Lifetime expected credit losses (339) (55) (37) (504) (935) Balances at December 31, 2020 7,395 2,547 2,577 3,240 15,759 |
Deposits from the Central Bank
Deposits from the Central Bank and Deposits from credit institutions | 12 Months Ended |
Dec. 31, 2020 | |
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: 12/31/2019 12/31/2020 Classification: Other financial liabilities at fair value through profit or loss 141,263 79,859 Financial liabilities at amortized cost 72,969 187,503 214,232 267,362 Type: Reciprocal accounts 7,272 9,418 Time deposits 8,914 5,538 Overnight deposits 26,710 23,826 Repurchase agreements 141,263 206,188 Other accounts 29,961 22,329 Of which: Collateral received for OTC financial derivatives transactions (Note 32) 8,960 — Others 21,001 22,329 Accrued interest 112 63 214,232 267,362 Currency: Peso 195,604 239,831 USD 18,565 27,494 Other currencies 63 37 214,232 267,362 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, 2020 | |
Customer deposits | |
Customer deposits | 20. Customer deposits The breakdown by classification, type and currency of the balance of Customer deposits is as follows: 12/31/2019 12/31/2020 Classification: Other financial liabilities at fair value through profit or loss Financial liabilities at amortized cost 630,055 742,201 759,271 872,493 Type: Repurchase agreements 129,216 138,616 Demand deposits: Current accounts 424,563 499,458 Other deposits 24,010 43,860 Of which: Collateral received for OTC financial derivatives transactions (Note 32) 7,799 23,052 Others 16,211 20,808 Time deposits: Fixed-term deposits 179,768 189,686 Accrued interest 1,714 873 759,271 872,493 Currency: Peso 677,634 785,713 USD 81,631 86,780 Other currencies 6 — 759,271 872,493 As of December 31, 2019 and 2020, Customer deposits of 7,799 million pesos and 23,052 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, 2020 | |
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: 12/31/2019 12/31/2020 Classification: Other financial liabilities at fair value through profit or loss 3,246 1,363 Financial liabilities at amortized cost 111,211 130,754 114,457 132,117 Type: Certificates of deposit (unsecured) 37,823 34,544 Senior Unsecured Notes 18,849 55,076 Structured bank bonds 4,797 2,139 Promissory notes 23,314 16,924 Unsecured bonds 29,674 23,434 114,457 132,117 Currency: Peso 89,233 76,242 USD 25,224 55,875 114,457 132,117 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: 2019 2020 Beginning balance 4,750 3,246 Issues 983 518 Of which: Structured bank bonds 983 518 Of which: Banco Santander México 983 518 Redemptions (2,914) (2,380) Of which: Structured bank bonds (2,914) (2,380) Of which: Banco Santander México (2,914) (2,380) Changes in fair value 427 (21) Balance at year-end 3,246 1,363 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: 2019 2020 Beginning balance 98,312 111,211 Issues 1,668,170 1,219,638 Of which: Certificates of deposit (unsecured) 42,195 43,260 Structured bank bonds 24,728 8,989 Senior Unsecured Notes — 41,827 Promissory notes 1,591,247 1,125,562 Unsecured bonds 10,000 — Of which: Banco Santander México 1,668,170 1,219,638 Redemptions (1,654,767) (1,193,956) Of which: Certificates of deposit (unsecured) (26,883) (46,436) Structured bank bonds (23,765) (9,751) Promissory notes (1,604,004) (1,131,578) Unsecured bonds — (6,191) Mortgage backed bonds (115) — Of which: Banco Santander México (1,654,652) (1,193,956) Santander Vivienda (115) — Accrued interest 609 (114) Effect of changes in foreign exchange rates (1,113) (6,025) Balance at year-end 111,211 130,754 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 UDI, up to thirty years. In October 2010, the Board of Directors renewed this authorization. In October 2011, the Board of Directors authorized to increase the amount of the issuance program up to USD 6,500 million. In October 2013, the Board of Directors endorsed the total amount of the issuance program, establishing that the maximum term of the issuances must be fifteen years. In February 2017, the CNBV authorized an issuance of structured bank bonds, up to 10,000 million pesos with the maximum term of fifteen years. In August 2019, the CNBV authorized an issuance program of structured bank bonds, up to 20,000 million pesos, with a maturity period of fifteen years. On April 14, 2020, the Bank issued Senior Unsecured Notes for USD 1,750 million at an annual interest rate of 5.375% and maturity in 2025 (see Note 3). 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) 13 03/03/2020 1.75 % Certificates of deposit (unsecured) 13 05/15/2020 1.75 % 37,651 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 23 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 (*) Marketable debt securities classified as financial liabilities at fair value through profit or loss. As of December 31, 2020, 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 12/03/2021 8.14 % Certificates of deposit (unsecured) 2,000 10/08/2021 8.14 % Certificates of deposit (unsecured) 1,500 09/27/2021 8.14 % Certificates of deposit (unsecured) 1,000 10/11/2021 8.15 % Certificates of deposit (unsecured) 1,200 09/13/2021 8.14 % Certificates of deposit (unsecured) 1,000 09/09/2021 8.16 % Certificates of deposit (unsecured) 250 01/28/2021 8.16 % Certificates of deposit (unsecured) 700 01/28/2021 8.15 % Certificates of deposit (unsecured) 500 07/15/2021 8.15 % Certificates of deposit (unsecured) 2,500 08/17/2021 8.15 % Certificates of deposit (unsecured) 1,500 08/12/2021 8.17 % Certificates of deposit (unsecured) 2,000 08/19/2021 8.17 % Certificates of deposit (unsecured) 1,000 07/09/2021 8.12 % Certificates of deposit (unsecured) 1,075 08/06/2021 8.18 % Certificates of deposit (unsecured) 1,000 07/30/2021 8.36 % Certificates of deposit (unsecured) 50 07/22/2021 8.38 % Certificates of deposit (unsecured) 600 07/08/2021 8.38 % Certificates of deposit (unsecured) 1,000 07/08/2021 8.38 % Certificates of deposit (unsecured) 500 06/15/2021 8.39 % Certificates of deposit (unsecured) 1,000 06/10/2021 8.40 % Certificates of deposit (unsecured) 600 05/20/2021 8.13 % Certificates of deposit (unsecured) 1,000 06/03/2021 8.14 % Certificates of deposit (unsecured) 460 05/13/2021 8.14 % Certificates of deposit (unsecured) 400 05/10/2021 8.12 % Certificates of deposit (unsecured) 900 05/07/2021 8.38 % Certificates of deposit (unsecured) 2,000 04/21/2021 8.12 % Certificates of deposit (unsecured) 1,000 02/24/2021 8.38 % Certificates of deposit (unsecured) 1,000 03/05/2021 8.12 % Certificates of deposit (unsecured) 2,000 02/12/2021 8.12 % Certificates of deposit (unsecured) 2,000 01/26/2021 8.44 % Certificates of deposit (unsecured) 1,500 01/12/2021 8.34 % Certificates of deposit (unsecured) 17 03/18/2021 8.12 % Certificates of deposit (unsecured) 3 03/09/2021 8.12 % Certificates of deposit (unsecured) 30 01/11/2021 8.89 % Certificates of deposit (unsecured) 60 01/11/2021 8.89 % Certificates of deposit (unsecured) 54 01/11/2021 8.90 % Certificates of deposit (unsecured) 32 01/11/2021 8.89 % 34,431 Accrued interest 113 34,544 Senior Unsecured Notes 19,827 11/09/2022 4.125 % Senior Unsecured Notes 34,759 04/17/2025 5.375 % 54,586 Accrued interest 490 55,076 Structured bank bonds 100 01/06/2021 9.00 % Structured bank bonds 78 10/27/2021 Guaranteed rate subject to foreign exchange rate Structured bank bonds 20 01/07/2021 8.00 % Structured bank bonds 60 01/13/2021 4.42 % Structured bank bonds 48 01/25/2021 6.00 % Structured bank bonds 139 01/12/2021 7.00 % Structured bank bonds 60 01/06/2021 4.98 % Structured bank bonds 100 01/07/2021 7.00 % Structured bank bonds 20 01/04/2021 4.00 % Structured bank bonds 30 01/11/2021 7.15 % Structured bank bonds 60 01/08/2021 3.29 % Structured bank bonds 42 01/06/2021 5.67 % Structured bank bonds 10 01/08/2021 7.00 % Structured bank bonds 9 01/15/2021 5.38 % Structured bank bonds (*) 14 11/01/2021 Guaranteed rate subject to EURO STOXX 50 Structured bank bonds (*) 132 07/01/2021 Guaranteed rate subject to S&P 500 Structured bank bonds (*) 139 07/29/2021 Guaranteed rate subject to S&P 500 Structured bank bonds (*) 222 03/01/2021 Guaranteed rate subject to S&P 500 Structured bank bonds (*) 2 03/17/2022 TIIE Structured bank bonds (*) 6 03/17/2022 TIIE Structured bank bonds (*) 4 03/17/2022 TIIE Structured bank bonds (*) 49 03/17/2022 TIIE Structured bank bonds (*) 30 05/24/2021 TIIE Structured bank bonds (*) 20 05/12/2021 TIIE Structured bank bonds (*) 283 04/23/2021 TIIE Structured bank bonds (*) 58 03/26/2021 9.50 % Structured bank bonds (*) 167 03/08/2021 9.50 % Structured bank bonds (*) 162 01/28/2021 9.50 % Structured bank bonds (*) 5 03/03/2021 Guaranteed rate subject to SXDP Structured bank bonds (*) 6 03/16/2021 TIIE Structured bank bonds (*) 23 03/03/2021 Guaranteed rate subject to SXDP Structured bank bonds (*) 41 02/23/2021 TIIE 2,139 Transaction costs and accrued interest (net) — 2,139 Promissory notes 73 01/04/2021 4.20 % Promissory notes 2,900 01/15/2021 4.25 % Promissory notes 5,800 01/15/2021 4.25 % Promissory notes 6,000 01/15/2021 4.25 % Promissory notes 150 03/16/2021 4.15 % Promissory notes 150 01/13/2021 4.10 % Promissory notes 1,000 09/23/2021 4.45 % Promissory notes 803 03/17/2021 4.60 % 16,876 Accrued interest 48 16,924 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 % 23,161 Accrued interest 273 23,434 (*) |
Subordinated liabilities
Subordinated liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Subordinated liabilities | |
Subordinated liabilities | 22. Subordinated liabilities a) Breakdown The breakdown of the balance of Subordinated liabilities is as follows: 12/31/2020 Outstanding Issue Amount Annual Type Currency of Issue 12/31/2019 12/31/2020 in Foreign Currency Interest Rate (%) Subordinated Additional Tier I Capital Notes USD 9,420 9,948 500,000,000 8.50 Tier II Subordinated Capital Notes USD 24,847 26,234 1,300,000,000 5.95 Balance at year-end 34,267 36,182 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: 2019 2020 Beginning balance (million USD) 1,894 1,816 Issues — — Redemptions (77) — Transaction costs and accrued interest (1) 1 Balance at year-end (million USD) 1,816 1,817 Exchange rate per one USD at December 31 18.8642 19.9087 Balance at year-end (million pesos) 34,267 36,182 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 annual interest rate of 5.95% per year during the first five years. As mentioned in Note 3, 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, 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 interest 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 within Shareholders’ equity in the consolidated balance sheet. · 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 in Accumulated reserves within Shareholders’ equity in the consolidated balance sheet. 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 annual interest 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, 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. 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 consolidated statement of cash flows as cash flows from financing activities. Non-cash changes January 1, 2019 Cash flows Accrued Transaction Foreign 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 in the consolidated balance sheet. Non-cash changes January 1, 2020 Cash flows Accrued Transaction Foreign exchange December 31, 2020 Type interest costs movements Subordinated Additional Tier I Capital Notes 9,420 — — 6 522 9,948 Tier II Subordinated Capital Notes 24,847 (1,765) 1,669 8 1,475 26,234 Balances at 34,267 (1,765) 1,669 14 1,997 36,182 As of December 31, 2020, the Bank paid 964 million pesos related to interests on the Subordinated Additional Tier I Capital Notes, which were recognized against Accumulated reserves within Shareholders’ equity in the consolidated balance sheet. |
Other financial liabilities
Other financial liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Other financial liabilities | |
Other financial liabilities | 23. Other financial liabilities The breakdown of Other financial liabilities is as follows: 12/31/2019 12/31/2020 Trade payables 1,451 2,279 Collection accounts: Tax payables 1,160 1,465 Financial transactions pending settlement 9,267 8,281 Other financial liabilities 3,886 3,290 15,764 15,315 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: 12/31/2019 12/31/2020 Mexican government securities 8,059 7,362 BPATS 1,003 912 Equity instruments 205 7 9,267 8,281 The breakdown of Other financial liabilities is as follows: 12/31/2019 12/31/2020 Retentions related to loans (*) 1,524 1,611 Other payable account 2,362 1,679 3,886 3,290 (*) |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2020 | |
Provisions | |
Provisions | 24. Provisions a) Breakdown The breakdown of Provisions is as follows: 12/31/2019 12/31/2020 Provisions for pensions and similar obligations 6,406 7,433 Provisions for tax and legal matters 1,558 1,898 Provisions for off-balance sheet risk 1,075 1,232 Other provisions 65 41 9,104 10,604 b) Changes The changes in Provisions were as follows: 2018 2019 2020 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) 3,860 1,072 1,032 766 6,730 4,370 1,516 852 62 6,800 6,406 1,558 1,075 65 9,104 Adjustments on initial adoption of IFRS 9 — — (32) — (32) — — — — — — — — — — Beginning balance as of January 1 (restated) 3,860 1,072 1,000 766 6,698 4,370 1,516 852 62 6,800 6,406 1,558 1,075 65 9,104 Additions charged (credited) to net income: Interest expense and similar charges 359 — — — 359 415 — — — 415 442 — — — 442 Personnel expenses – Defined Benefit Plan 157 — — — 157 147 — — — 147 273 — — — 273 Personnel expenses – Defined Contribution Plan (Note 42) 373 — — — 373 410 — — — 410 488 — — — 488 Other 129 — — — 129 257 — — — 257 256 — — — 256 Actuarial (gains)/losses recognized in the year in other comprehensive income (260) — — — (260) 1,673 — — — 1,673 995 — — — 995 Period provisions — 576 (148) 5 433 — 353 223 5 581 — 586 157 (20) 723 Contributions from the employer 246 — — — 246 118 — — — 118 — — — — — Payments to pensioners and pre-retirees with a charge to internal provisions (234) — — — (234) (348) — — — (348) (881) — — — (881) Other payments (*) — (284) — (284) — — — — — (246) — — (246) Payments to Defined Contribution Plan (347) — — — (347) (636) (311) — — (947) (475) — — — (475) Recognition of pension obligations from acquisition of Santander Tecnología México 95 — — — 95 — — — — — — — — — — Transfers and other changes (8) 152 — (709) (565) — — — (2) (2) (71) — — (4) (75) Balances at the end of year 4,370 1,516 852 62 6,800 6,406 1,558 1,075 65 9,104 7,433 1,898 1,232 41 10,604 (*) Servicio de Administración Tributaria ) of 1 million pesos in 2018, 3 million pesos in 2019 and 1 million pesos in 2020 because the Bank was not withholding income tax in transactions with financial derivative instruments with certain counterparties. c) Provisions for pensions and similar obligations Defined contribution plan The Bank sponsors a defined contribution retirement benefit plan for all qualifying employees 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 373 million pesos, 226 million pesos and 238 million pesos in 2018, 2019 and 2020, 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 recognizes 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 6,328 million pesos and 7,342 million pesos as of December 31, 2019 and 2020, respectively. The investment fund of the defined benefit post-employment plan was 2,068 million pesos and 2,186 million pesos as of December 31, 2019 and 2020, 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 2019 and 2020 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, 2019 and 2020, approximately 0.8% and 1.7% of the Bank’s employees, respectively, were enrolled still in the defined benefit pension plan while the rest of the employees were enrolled in the defined contribution pension plan. As of December 31, 2019 and 2020, approximately 83% and 81% of the Bank’s employees enrolled in the defined contribution pension plan have been included in the “Retirement Medical Coverage Plan”. Employees that start working for the Bank on August 16, 2014 and later, do not have the option to be enrolled in the “Retirement Medical Coverage Plan” because they are registered in the Mexican Institute of Social Security ( Instituto Mexicano del Seguro Social , or IMSS by its Spanish acronym) as their medical coverage. In addition, they have a medical insurance provided by the Bank that covers its major medical expenses. The breakdown of Provisions for pensions and similar obligations is as follows: 12/31/2019 12/31/2020 Provisions for post-employment plans Of which: Defined benefit pension plan 6,328 7,342 Provisions for defined contribution pension plan 78 91 6,406 7,433 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 12/31/2019 12/31/2020 Annual discount rate 7.3 % 6.8 % Mortality tables EMSSA 1997 and 2009 EMSSA 2009 (Gen) Expected return on plan assets 7.3 % 6.8 % Cumulative annual INPC growth 3.5 % 3.5 % Annual salary increase rate 4.5 % 4.5 % Annual minimum salary increase rate 4.0 % 3.5 % 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 retirement age is 65 years. The funding status of the defined benefit obligations is as follows: Defined Benefit Pension Plan 12/31/2019 12/31/2020 Present value of the obligations: Pension plan 2,567 2,758 Post-employment benefits 5,127 6,055 Long-term benefits 702 715 8,396 9,528 Less: Fair value of plan assets (2,068) (2,186) Provisions – Provisions for pensions 6,328 7,342 Of which: Internal provisions for pensions 6,328 7,342 The amounts recognized in the consolidated income statement in relation to the aforementioned defined benefit obligations are as follows: Defined Benefit Pension Plan 2018 2019 2020 Current service cost 157 147 273 Interest cost (net) 359 415 442 Other 129 257 256 645 819 971 The changes in the present value of the accrued defined benefit obligations were as follows: Defined Benefit Pension Plans 2019 2020 Present value of the obligations at the beginning of year 8,396 Current service cost (Note 42) 147 273 Interest cost 585 582 Benefits paid (983) (1,071) Actuarial (gains)/losses 2,129 1,413 Other — (65) Present value of the obligations at the end of year 8,396 9,528 The estimated duration of the defined benefit obligation is 13.35 years The changes in the fair value of plan assets were as follows: Defined Benefit Pension Plan 2019 2020 Fair value of plan assets at the beginning of year 2,196 2,068 Actual return on plan assets 347 308 Transfer of funds to defined contribution plan (129) (190) Benefits paid (346) — Fair value of plan assets at the end of year 2,068 2,186 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, 2021. The major categories of plan assets as a percentage over the total plan assets are as follows: Defined Benefit Pension Plan 12/31/2019 12/31/2020 Equity instruments 34 % 36 % Cash and debt instruments 66 % 64 % 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 were fifty basis points higher (lower), the defined benefit obligation would decrease by 464 million pesos (increase by 512 million pesos). · If the medical cost trend rate were fifty basis points higher (lower), the defined benefit obligation would increase by 165 million pesos (decrease by 153 million pesos). · If the annual salary growth increases (decreases) by 0.50%, the defined benefit obligation would increase by 22 million pesos (decrease by 22 million pesos). · If the annual INPC growth increases (decreases) by 0.50%, the defined benefit obligation would increase by 12 million pesos (decrease by 12 million pesos). · If the mortality increases (decreases) by two years for men and women, the defined benefit obligation would decrease by 105 million pesos (increase by 104 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 Insurance operation agreement 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, these insured persons would not affect the Bank’s net worth in the future, since the risks were transferred to Principal. However, in order to recognize 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, 2019 and 2020, such liability was 746 and 703 million pesos, respectively. For presentation purposes, the arrangement has not impact on net assets as the asset and liability are offset. Transfer of employees In December 2020, all employees from the subsidiaries Santander Servicios Corporativos, S.A. de C.V. and Santander Servicios Especializados, S.A. de C.V. were transferred to Banco Santander México. The past service cost recognized under Provisions (net) in the consolidated income statement was 13 million pesos. 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 67 million pesos and 355 million pesos as of December 31, 2019 and 2020, respectively. ii. Other tax issues The Bank operated until December 31, 2018 a branch in Nassau, Bahamas through which it carried out tax-free operations principally involving financial derivative instruments. The Mexican Tax Administration Service ( Servicio de Administración Tributaria ) 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 1 million pesos in 2018, 3 million pesos in 2019 and 1 million pesos in 2020. iii. Non-tax-related proceedings As of December 31, 2019 and 2020, as a result of its business activities, the Bank has had certain claims and lawsuits representing contingent liabilities filed against it. Notwithstanding, Bank’s Management and its internal and external legal and labor advisers do not expect such proceedings to have a material effect in the consolidated financial statements in the event of an unfavorable outcome. As of December 31, 2019 and 2020, the Bank has recognized provisions for the amounts of 1,491 million pesos and 1,543 million pesos, respectively, which are based on the opinion of internal and external legal advisers; Bank’s Management has assessed losses to be probable. Bank’s Management considers such provisions 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 2018, 2019 and 2020 is not material with respect to these consolidated financial statements. During 2019 and 2020, the amount paid by the Bank to external lawyers was 294 million pesos and 219 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 advances to customers. Refer to Note 2.g above for further description. The breakdown of the off-balance sheet risks is as follows: 12/31/2019 12/31/2020 Available lines of credit cards and non-revolving consumer loans 965 906 Guarantees and loan commitments of commercial and public sector loans 110 326 1,075 1,232 As of December 31, 2020, 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 695 177 34 906 Guarantees, documentary credits and loan commitments of commercial loans of small and medium-sized enterprises 86 8 232 326 Total 781 185 266 1,232 As of December 31, 2020, 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, 2020: 916 144 15 1,075 Financial assets derecognized during the period other than write-offs — — — — Write-offs — — — — Originated financial assets — — — — Foreign exchange and other movements (135) 41 251 157 As of December 31, 2020 781 185 266 1,232 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Other liabilities | |
Other Liabilities | 25. Other liabilities The breakdown of Other liabilities is as follows: 12/31/2019 12/31/2020 Sundry creditors 9,025 14,698 Cash balances undrawn 155 142 Accrued personnel obligations 4,388 3,584 Other obligations 2,288 2,248 Credit and debit card operation balances 2,435 2,446 18,291 23,118 |
Tax matters
Tax matters | 12 Months Ended |
Dec. 31, 2020 | |
Tax matters | |
Tax matters | 26. Tax matters a) Income tax The components of Income tax for 2018, 2019 and 2020 are as follows: 2018 2019 2020 Current income tax expense: Tax expense for current year 5,615 7,099 7,496 Deferred income tax expense (benefit): Origination and reversal of temporary difference and usage (accrual) of tax carryforward benefits (157) (190) (1,270) Total Income tax 5,458 6,909 6,226 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: 2018 2019 2020 Profit before tax 24,814 27,290 25,200 Income tax at 30% 7,444 8,187 7,560 Increase/(Decrease) due to permanent differences Of which: Due to effect of inflation (1,542) (890) (1,126) Due to effect of tangible assets (76) 19 (116) Due to effect of non-deductible expenses, non-taxable income and others (368) (407) (92) Income Tax 5,458 6,909 6,226 Effective tax rate 22.00 % 25.32 % 24.71 % Current tax liability — — — Income tax 5,458 6,909 6,226 Of which: Current 5,615 7,099 7,496 Deferred (157) (190) (1,270) The Bank is subject to regular reviews by the Mexican Tax Administration Service ( Servicio de Administración Tributaria ). As of December 31, 2020, there are no tax contingencies arising because of such tax reviews requiring disclosure. c) Tax recognized in consolidated total equity In addition to the income tax recognized in the consolidated income statement, the Bank recognized the following amounts in consolidated total equity: 2018 2019 2020 Net tax credited/(charged) to consolidated total equity: Remeasurement of defined benefit obligation (64) 462 264 Measurement of Financial assets at fair value through other comprehensive income – Debt instruments 371 (980) (1,056) Measurement of financial derivatives (Cash flow hedges) 276 (6) 126 Paid interests on Subordinated Additional Tier I Capital Notes 254 255 290 Income tax from sale of the Custody business 255 — — 1,092 (269) (376) d) Deferred tax assets and liabilities Main components of the Bank’s gross deferred tax assets and liabilities are as follows: 12/31/2019 12/31/2020 Total deferred tax assets prior to offsetting 20,757 21,340 Of which: Tangible assets and deferred charges 2,050 2,146 Provisions 2,268 2,288 Impairment losses on financial assets at amortized cost 10,010 10,277 Net operating losses carryforward (*) — 4 Capital losses carryforward (*) 2,708 2,660 Labor provisions 1,435 1,416 Fees and interest collected in advance 995 1,053 Foreign exchange rate financial derivatives 1,291 1,496 Total deferred tax liabilities prior to offsetting (3,461) (3,440) Of which: Unrealized gains on financial instruments (2,816) (2,512) Prepayments (347) (777) Other (298) (151) (*) As of December 31, 2020, the detail of capital losses carryforward is as follows: Year of origination Year of expiration Amount Deferred tax asset 2017 2027 498 149 2018 2028 3,297 989 2019 2029 2,562 769 2020 2030 2,509 753 8,866 2,660 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 in the consolidated balance sheet as follows: 12/31/2019 12/31/2020 Presented as deferred tax assets ( * ) 17,401 18,087 Presented as deferred tax liabilities (105) (187) Net 17,296 17,900 Deferred tax assets represent the deferred tax asset whose realization is dependent on future taxable profits in excess of the profits arising from the reversal of existing taxable temporary differences. Bank’s Management has concluded that the realization of such assets is probable based on the Bank’s history of generating sufficient taxable income to utilize all available tax benefits. 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 total 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 01/01/2019 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 (Charge)/ Credit to Consolidated (Charge)/ Credit to Other Consolidated Comprehensive Other 01/01/2020 Income Income Movements 12/31/2020 Deferred tax assets 20,757 1,430 (280) (567) 21,340 Deferred tax liabilities (3,461) (160) (96) 277 (3,440) 17,296 1,270 (376) (290) 17,900 |
Non-controlling interests
Non-controlling interests | 12 Months Ended |
Dec. 31, 2020 | |
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: 12/31/2019 12/31/2020 Equity as of balance-sheet date attributable to non-controlling interests: Of which: Fideicomiso GFSSLPT, Banco Santander México, S.A. 27 23 Other 13 14 40 37 Profit for the year attributable to non-controlling interests: Of which: Fideicomiso GFSSLPT, Banco Santander México, S.A. — — b) Changes The changes in Non-controlling interests are summarized as follows: 2019 2020 Beginning balance 32 40 Profit for the year attributable to non-controlling interests — — Other 8 (3) Balance at year-end 40 37 The foregoing changes are shown in the consolidated statement of changes in equity. |
Valuation adjustments
Valuation adjustments | 12 Months Ended |
Dec. 31, 2020 | |
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 total 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. 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, 2019 and 2020 are as follows: 12/31/2019 12/31/2020 Net Net Valuation Valuation Valuation Valuation Gains/ Fair Valuation Valuation Gains/ Fair Gains Losses (Losses) Value Gains Losses (Losses) Value Debt instruments 4,266 (158) 4,108 233,463 5,944 (2,384) 3,560 355,321 Loans and advances to customers — — — 2,875 — — — — Equity instruments 111 (4) 107 642 170 (44) 126 768 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, 2019 (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 Valuation adjustments 3,560 126 3,686 Amounts reclassified to consolidated income statement (843) — (843) Income taxes (1,056) (33) (1,089) Balance at December 31, 2020 3,925 148 4,073 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: 2019 2020 Accumulated (loss)/gain on cash flow hedges (293) (556) Accumulated gain related to discontinued cash flow hedges (Note 12) 17 (13) Balance at December 31, (276) (569) |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2020 | |
Shareholders' equity | |
Shareholders' equity | 29. Shareholders’ equity a) Share capital As of December 31, 2019 and 2020, Share capital, at par value, was as follows: Total Par Value Number of shares (Millions of Pesos) 12/31/2019 12/31/2020 12/31/2019 12/31/2020 Fixed capital: Series F shares 3,464,309,145 3,464,309,145 Series B shares 3,322,685,212 3,322,685,212 6,786,994,357 6,786,994,357 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 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 the 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 ( Instituto para la Protección al Ahorro Bancario , hereinafter “IPAB”). These shares can only be sold with the prior authorization of SHCP. No authorization shall be required from such Authority and corporate bylaws will not have to be amended when the transfer of shares is in either 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 ( Ley del Impuesto sobre la Renta ). As mentioned in Note 3, 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 ( Ley General de Sociedades Mercantiles ) expressly permits the use of the share premium account balance to increase capital 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 in the consolidated income statement that was appropriated to consolidated total 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 ( Cuenta de Utilidad Fiscal Neta ). 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 2018, 2019 and 2020 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 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, 2019 and 2020, Banco Santander México and its subsidiaries comply with the percentage of legal reserve required. Treasury shares Transactions involving own equity instruments are recognized directly in consolidated total 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 total 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. The aforementioned dividend paid to shareholders was taken from the Net tax profit account. - It was agreed to carry out a corporate restructuring process, which considers, among other corporate actions, the merger of Grupo Financiero Santander México, S.A.B. de C.V. (hereinafter, “the Former Group”), as the merged entity, with Banco Santander México, as the merging entity. To carry out this merger, the following resolutions were adopted: i. Increase the share capital of Banco Santander México by capitalizing the share premium for 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 Banco Santander México’s shares from 0.10 pesos per share to 3.780782962 and decreasing the number of outstanding shares. Because of the reverse split, 264,464,365,125 shares representing the share capital of Banco Santander México were cancelled and 6,994,962,889 new shares representing the share capital of Banco Santander México were issued. iii. Complete the exchange of shares between Banco Santander México 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 Banco Santander México whose holders will be the shareholders of the Former Group. iv. Increase the unsubscribed share capital of Banco Santander México by 1,671 million pesos through the cancellation of 207,968,532 treasury shares and the issuance of 650,000,000 new shares representing Banco Santander México's share capital, which will be held as treasury shares by Banco Santander México to guarantee the conversion of the Subordinated Additional Tier I Capital Notes issued by Banco Santander México in December 2016 (see Note 22). Additionally, a decree and payment of a cash dividend to the shareholders of the Former Group was approved for an amount up to 1,950 million pesos in order to equal to one the book value of the shares of the Former Group with those of Banco Santander México. The final amount of the dividend to make equivalent to one the book value of the shares of the Former Group with those of Banco Santander México amounted to 1,822 million pesos, which was paid on January 25, 2018. The aforementioned dividend paid to shareholders was taken from the Net tax profit account. All aforementioned resolutions were effective on January 26, 2018, once the Ordinary and Extraordinary General Meeting minute and the merger agreements between Banco Santander México and the Former Group were registered in the Public Registry of Commerce. On the same date, the delivery of Banco Santander México's shares through S.D. Indeval, S.A. de C.V. (INDEVAL), Institución para el Depósito de Valores to Banco Santander México’s shareholders was completed. During the Ordinary General Annual Meeting of February 21, 2018, it was decided to approve the creation of a fund to repurchase own shares by an amount of 12,800 million pesos. Based on the aforementioned approval, during the period ended December 31, 2018, Banco Santander México 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. The aforementioned dividend paid to shareholders was taken from the Net tax profit account. During the 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. The aforementioned dividend paid to shareholders was taken from the Net tax profit account. During the Ordinary General Annual Meeting of April 29, 2019, the following resolutions were 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. The aforementioned dividend paid to shareholders was taken from the Net tax profit account. 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. The aforementioned dividend paid to shareholders was taken from the Net tax profit account. During the Ordinary General Annual Meeting of April 28, 2020, it was decided to ratify the fund to repurchase own shares by an amount of 12,800 million pesos. During the Extraordinary General Meeting of June 15, 2020, it was decided to increase the limit for the issuance of securities to USD 10 billion, which may be issued as any of the following: (i) debt issued in local or international markets; (ii) senior or subordinated debt, including in both cases preferred or non-preferred financial instruments, and debt instruments that, from a regulatory point of view, are classified as capital; (iii) individual issuances or through one or more programs; and (iv) having a maximum period of fifteen years, or, if appropriate, the maturity determined by the Board of Directors or, where appropriate by a shareholders' meeting. During the Extraordinary General Meeting of September 30, 2020, it was approved to carry out the merger of Banco Santander México as the merging entity, with Santander Vivienda, as the merged entity (see Note 3). |
Minimum capital requirements
Minimum capital requirements | 12 Months Ended |
Dec. 31, 2020 | |
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 General Provisions Applicable to Credit Institutions ( Disposiciones de Carácter General Aplicables a las Instituciones de Crédito ) issued by the CNBV, Banco Santander México 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 Capital) 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 UDI, 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 General Provisions Applicable to Credit Institutions ( Disposiciones de Carácter General Aplicables a las Instituciones de Crédito ) 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 current 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 eight lines. For six of them, the capital requirement is calculated multiplying a “Beta” factor for the average net revenues for the thirty-six 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 thirty-six 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. Business Indicator Method On November 19, 2020, the CNBV published the methodology of the Business Indicator Method ( Método del Indicador de Negocio ) for calculating capital requirements for operational risk considering that it is necessary for banks to have a more precise and sensitive method to the risk to which they are exposed in their operation for the purpose of determining their minimum net capital requirements for operational risk, eliminating the other methods currently in force, and at the same time, to maintain the capital framework of the Mexican financial system aligned with the international prudential standards issued by the Basel Committee on Banking Supervision. The Business Indicator Method will enter into force on January 1, 2023. The minimum capital requirements calculated in accordance with Mexican Banking GAAP for Banco Santander México is as follows: 12/31/2019 12/31/2020 Computable capital: 125,083 151,458 Core capital 138,371 158,786 Supplementary capital 24,847 27,203 Deductible items (47,555) (44,479) Subordinated Additional Tier I Capital Notes (see Note 22.c) 9,420 9,948 Capital requirements: 61,127 63,746 Market risk 13,988 15,398 Credit risk 42,922 43,215 Operational risk 4,217 5,133 Excess of capital requirements 63,956 87,712 Risk-weighted assets 764,093 796,836 As of December 31, 2019 and 2020, in accordance with the capitalization requirements applicable to full service banks, Banco Santander México 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. 12/31/2019 12/31/2020 Net Capital / Required Capital 2.05 2.38 Minimum capital requirements Not applicable Not applicable Basic Fundamental Capital / Assets subject to Credit, Market and Operating Risk 11.89 % 14.35 % Minimum capital requirements 8.20 % 8.20 % Basic Capital / Assets subject to Credit, Market and Operating Risk 13.12 % 15.59 % Minimum capital requirements 9.70 % 9.70 % Net Capital / Assets subject to Credit Risk 23.31 % 28.04 % Minimum capital requirements Not applicable Not applicable Net Capital / Assets subject to Credit, Market and Operating Risk 16.37 % 19.01 % Minimum capital requirements 11.70 % 11.70 % Resolutions and provisions issued by the CNBV to address the COVID-19 pandemic On April 8, 2020, the CNBV issued some resolutions and provisions to face the contingency derived from COVID-19 pandemic. In this sense, the CNBV approved temporary amendments to the General Provisions Applicable to Credit Institutions ( Disposiciones de Carácter General Aplicables a las Instituciones de Crédito ) regarding capitalization. The CNBV determined to grant temporary regulatory support measures regarding capitalization, between April 1, 2020 and March 31, 2021, in order to allow banks to use the capital conservation supplement (Capital buffer) without impairing its minimum solvency. The Bank decided not to apply the optional regulatory support measure. In the Provisions Applicable to Credit Institutions ( Disposiciones de Carácter General Aplicables a las Instituciones de Crédito ), the Early Alerts System ( Sistema de Alertas Tempranas ) of capitalization considers that banks may use supplements of capital conservation, precisely to face stressed scenarios like the current scenario of contingency caused by the COVID-19 pandemic, as provided in the international prudential standards of the Basel Committee. Regulatory support measures consist, among others, on the fact that banks will not have to submit the capital conservation plan for CNBV’s approval when using capital conservation supplements, if such supplement is consumed in a maximum of 50%. The CNBV must be informed of the causes that originated the use of the supplement; otherwise, authorization must be requested from the CNBV so that, in justified cases, the banks can increase the amounts disposed of the loans granted to related persons. Additionally, as another regulatory support measure, the CNBV will published the standard related to the Total Loss-Absorbing Capacity (TLAC) ( Capacidad Total para la Absorción de Pérdidas ) when it is considered that the economic conditions allow for its implementation by banks. The TLAC standard issued by the Financial Stability Board requires global systemically important banks (G-SIB) to have financial instruments available during resolution to absorb losses and enable them to be recapitalized to continue performing their critical functions while the resolution process is ongoing. The objective is to have an orderly resolution by making debt/equity holders absorb losses (enabling a ‘bail-in’), instead of using public funds (conducting a ‘bailout’). |
Memorandum accounts
Memorandum accounts | 12 Months Ended |
Dec. 31, 2020 | |
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 12/31/2019 12/31/2020 Available lines of credit cards and non-revolving consumer loans 136,405 157,033 Guarantees, documentary credits and loan commitments of commercial and public sector loans 79,950 91,993 Guarantees, documentary credits and loan commitments of commercial loans (SME) 219 112 216,574 249,138 As of December 31, 2019 and 2020, the Bank had recognized provisions for off-balance sheet risk of 1,075 million pesos and 1,232 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, 2020, 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 154,901 2,000 132 157,033 Guarantees, documentary credits and loan commitments of commercial and public sector loans 90,915 815 263 91,993 Guarantees, documentary credits and loan commitments of commercial loans (SME) 93 11 8 112 245,909 2,826 403 249,138 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 12/31/2019 12/31/2020 Debt instruments received in OTC financial derivatives transactions 5,736 5,483 Debt instruments received in reverse repurchase agreement transactions 76,592 59,557 Equity instruments received in securities loan transactions 14 137 82,342 65,177 |
Derivatives - Nominal amounts a
Derivatives - Nominal amounts and fair values of trading and hedging derivatives | 12 Months Ended |
Dec. 31, 2020 | |
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, 2019 and 2020 is as follows: 12/31/2019 12/31/2020 Trading Nominal Fair Value Nominal Fair Value Futures: Foreign Currency Futures — — 1,030 5 Market Index Futures 4,144 — 9 — Forwards: Foreign Currency Forwards 209,085 8,769 171,450 9,293 Foreign Exchange (Spot) 18,630 32 40,944 92 Equity Forwards 341 — 2,270 48 Options: Foreign Currency Options 50,940 1,052 72,892 3,879 Interest Rate Options 111,940 421 54,471 232 Market Index Options 1,828 212 271 43 Equity Options 43 — 649 72 Swaps: IRS 3,353,662 80,078 3,596,532 196,170 Equity Swaps 628 10 — — CCS 442,402 61,173 472,918 86,337 Total Trading 4,193,643 151,747 4,413,436 296,171 As of December 31, 2019 and 2020, 151,747 million pesos and 296,171 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, 2019 and 2020 is as follows: 12/31/2019 12/31/2020 Hedging Nominal Fair Value Nominal Fair Value Cash flow hedge: CCS 11,177 3,843 10,824 4,282 Foreign Currency Forwards 59,417 4,488 36,144 4,013 Fair value hedge: IRS 53,882 719 1,000 11 CCS 3,868 206 — — Total Hedging 128,344 9,256 47,968 8,306 Total Financial Derivatives Asset 4,321,987 161,003 4,461,404 304,477 The breakdown of the fair value and nominal amount of trading financial derivatives liability as of December 31, 2019 and 2020 is as follows: 12/31/2019 12/31/2020 Trading Nominal Fair Value Nominal Fair Value Futures: Foreign Currency Futures 14,202 — 4,614 — Market Index Futures 79 — 139 — Forwards: Foreign Currency Forwards 199,493 6,551 175,827 7,991 Foreign Exchange (Spot) 36,973 73 29,930 72 Market Index Forwards 651 6 2,292 33 Options: Foreign Currency Options 57,808 1,606 54,923 2,766 Interest Rate Options 140,813 474 93,248 306 Market Index Options 1,122 201 697 582 Equity Options — — 868 65 Swaps: IRS 3,296,209 76,165 3,597,275 189,535 Equity Swaps — 12 704 184 CCS 385,855 59,393 451,191 84,577 Total Trading 4,133,205 144,481 4,411,708 286,111 As of December 31, 2019 and 2020, 144,481 million pesos and 286,111 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, 2019 and 2020 is as follows: 12/31/2019 12/31/2020 Hedging Nominal Fair Value Nominal Fair Value Cash flow hedge: IRS 11,311 118 11,311 365 CCS 10,704 1,690 4,958 1,540 Foreign Currency Forwards 10,698 409 18,622 569 Fair value hedge: IRS 3,600 246 49,380 4,361 CCS 31,874 5,060 34,922 12,243 Total Hedging 68,187 7,523 119,193 19,078 Total Financial Derivatives Liability 305,189 As of December 31, 2019 and 2020, the collateral provided to engage in financial derivatives transactions in organized markets is as follows: 12/31/2019 12/31/2020 Collateral provided: Of which: Mercado Mexicano de Derivados, S.A. de C.V. Cash 3,865 3,113 Chicago Mercantile Exchange Cash 1,286 1,009 Foreign financial institutions Cash 2 1 5,153 4,123 Deposits of collateral back up positions operated on the Mexican Derivatives Exchange Market ( Mercado Mexicano de Derivados ), such as 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, 2019 and 2020 are as follows: 12/31/2019 12/31/2020 Financial assets at amortized cost - Loans and advances to credit institutions: Of which (Note 7): Mexican financial institutions Cash 7,536 15,738 Foreign financial institutions Cash 6,764 12,216 14,300 27,954 Financial assets at fair value through profit or loss - Debt instruments: Of which (Note 8): Mexican financial institutions Bonds 3,121 4,410 Foreign financial institutions (*) Bonds 1,351 896 4,472 5,306 (*) As of December 31, 2019, and 2020, includes 1,318 million pesos and 813 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, 2019 and 2020 are as follows: 12/31/2019 12/31/2020 Deposits from credit institutions and Customer deposits: Of which (Notes 19 and 20): Mexican financial institutions Cash 5,174 21,649 Foreign financial institutions Cash 11,527 1,403 Other Cash 58 — 16,759 23,052 12/31/2019 12/31/2020 Memorandum accounts: Of which (Note 31): Mexican financial institutions Bonds 5,736 5,483 5,736 5,483 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 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, 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 compares the Current Exposure amounts used for the Current Exposure of the ECR against the Current Exposure amounts also recognized in the accounting records. As of December 31, 2019 and 2020, the cumulative net credit risk exposure of the Bank was 390,324 million pesos and 45,372 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, 2020 | |
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, calculated by applying the effective interest method, irrespective of measurement at fair value through other comprehensive income, and the adjustment to interest income as a result of hedge accounting. The breakdown of the main interest income items earned in 2018, 2019 and 2020 is as follows: 2018 2019 2020 Cash and balances with the Central Bank 2,361 2,456 1,951 Loans and advances to credit institutions 2,178 2,839 412 Loans and advances to customers 81,976 89,894 84,290 Debt instruments 10,039 9,925 14,643 Hedging financial derivatives 2,858 3,541 2,432 Other interest income 125 191 249 99,537 108,846 103,977 |
Interest income from financial
Interest income from financial assets at fair value through profit or loss | 12 Months Ended |
Dec. 31, 2020 | |
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 2019 and 2020 is as follows: 2018 2019 2020 Loans and advances to credit institutions 5,981 6,306 2,997 Loans and advances to customers 518 1,742 804 Debt instruments 7,550 7,336 8,207 14,049 15,384 12,008 |
Interest expenses and similar c
Interest expenses and similar charges | 12 Months Ended |
Dec. 31, 2020 | |
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 plans. The breakdown of the main items of interest expenses and similar charges accrued in 2018, 2019 and 2020 is as follows: 2018 2019 2020 Deposits from credit institutions 7,420 9,041 12,400 Customer deposits 31,913 35,036 28,235 Marketable debt securities 4,244 5,398 5,756 Subordinated liabilities 1,610 1,597 1,767 Hedging financial derivatives 108 222 193 Other interest expenses 6,294 6,780 1,824 51,589 58,074 50,175 |
Dividend income
Dividend income | 12 Months Ended |
Dec. 31, 2020 | |
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: 2018 2019 2020 Equity instruments classified as: Financial assets at fair value through profit or loss 33 44 40 Of which: NAFTRAC (Exchange-traded fund or ETF) 18 36 36 Grupo Cementos de Chihuahua, S.A.B. de C.V. 11 7 3 Fomento Económico Mexicano, S.A.B. de C.V. — — 1 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 — — Financial assets at fair value through other comprehensive income 177 191 206 Of which: Controladora Prosa, S.A. de C.V. 50 54 73 Trans Unión de México, S.A. 88 93 88 Bolsa Mexicana de Valores, S.A.B. de C.V. 21 25 25 Dun & Bradstreet de México, S.A. de C.V. 17 18 20 Others 1 1 — 210 235 246 |
Fee and commission income
Fee and commission income | 12 Months Ended |
Dec. 31, 2020 | |
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: 2018 2019 2020 Collection and payment services: Service charges on deposit accounts 1,217 1,438 2,588 Credit and debit cards 7,398 8,757 7,667 Checks and others 240 243 181 8,855 10,438 10,436 Marketing of non-banking financial products: Investment funds management 1,569 1,568 1,611 Capital markets and securities activities 738 558 514 Collection and payment services 2,832 2,923 2,074 Insurance 4,575 5,038 5,300 Financial advisory services 1,212 1,207 1,179 10,926 11,294 10,678 Securities services: Administration and custody 368 347 461 368 347 461 Other: Foreign currency transactions 1,255 1,287 1,380 Other fees and commissions 892 952 801 2,147 2,239 2,181 22,296 24,318 23,756 |
Fee and commission expenses
Fee and commission expenses | 12 Months Ended |
Dec. 31, 2020 | |
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: 2018 2019 2020 Credit and debit cards 3,680 4,095 2,741 Checks and others 26 31 43 Collections and transactional services 287 312 291 Fund management 1 1 1 Capital markets and securities activities 189 238 173 Financial advisory services 13 6 5 Correspondent services 614 723 791 Other fees and commissions 1,764 2,488 2,688 6,574 7,894 6,733 |
Gains_(losses) on financial ass
Gains/(losses) on financial assets and liabilities (net) | 12 Months Ended |
Dec. 31, 2020 | |
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: 2018 2019 2020 Financial instruments at fair value through profit or loss 1,687 2,709 5,662 Of which: Debt instruments 166 260 1,221 Equity instruments 35 71 (161) Derivatives 1,482 4,458 Others 4 (81) 144 Recognized profit from sale of financial assets at fair value through other comprehensive income (69) 85 779 Hedging derivatives (134) 60 (457) Of which: Fair value hedge - hedged items (Note 12) (606) 731 6,427 Fair value hedge - hedging derivative instruments (Note 12) 474 (667) (6,884) Cash flow hedge inefficiency (Note 12) (2) (4) — 1,484 5,984 |
Exchange differences, (net)
Exchange differences, (net) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 | |
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: 2018 2019 2020 Other operating income: Other operating income 748 1,553 1,651 748 1,553 1,651 Other operating expenses: IPAB fund contribution (3,134) (3,353) (3,859) Other operating expenses (1,259) (1,792) (1,354) (4,393) (5,145) (5,213) On January 19, 1999, 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, 2020 | |
Personnel expenses | |
Personnel expenses | 42. Personnel expenses a) Breakdown The breakdown of Personnel expenses is as follows: 2018 2019 2020 Wages and salaries 7,274 7,740 7,838 Social security costs 1,283 1,443 1,494 Service expense related to defined contribution pension plan (Note 24) 373 410 488 Service expense related to defined benefit pension plan 157 147 194 Share-based payments 161 226 226 Bonus and benefits granted to employees 3,691 4,017 3,052 Other staff costs 1,415 1,445 1,584 14,354 15,428 14,876 b) 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 members of 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). The Long-term incentive plan 2015 will be settled through own equity instruments. The fair value of the Long-term incentive plan 2015 amounted to 86 million pesos. During 2018, 2019 and 2020, the Bank recognized 16 million pesos, 5 million pesos and 6 million pesos, respectively, in the consolidated income statement with respect to this plan. c) 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 Banco Santander México for the corresponding payment periods. Once delivered, beneficiaries are obligated to keep the shares for a one-year period. In 2018, 2019 and 2020, the Bank recognized the bonus of the Identified Staff in the consolidated income statement for an amount of 184 million pesos, 226 million pesos and 294 million pesos, respectively. The bonus of the Identified Staff for financial years 2018, 2019 and 2020 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 2018, 2019 and 2020 of the Identified Staff are paid as follows: · Each beneficiary will receive in 2018, 2019 and 2020, 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 three or five 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 Banco Santander México may not transfer them or hedge them directly or indirectly for one year as from each delivery of shares. In 2018, 2019 and 2020, 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, 2020 | |
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: 2018 2019 2020 Maintenance, conservation and repair 646 738 825 Information technology and systems 4,820 3,851 5,344 Stationery and supplies 227 150 325 Advertising and communications 890 965 809 Rents 1,120 653 683 Administrative services 503 1,737 2,202 Taxes other than income tax 1,820 2,037 2,270 Surveillance and cash courier services 979 1,248 1,263 Insurance premiums 75 95 114 Travel costs 364 325 71 Other administrative expenses 2,851 2,031 1,353 14,295 13,830 15,259 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: 2018 2019 2020 Audit fees and audit-related fees (*) 88 103 122 Tax fees 1 — — 89 103 122 (*) |
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, 2020 | |
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: 2018 2019 2020 Gains: On disposal of tangible assets 7 16 6 7 16 6 |
Other disclosures
Other disclosures | 12 Months Ended |
Dec. 31, 2020 | |
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, 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 breakdown by maturity of the balances of certain items in the consolidated balance sheets as of December 31, 2020, is as follows: 12/31/2020 Less More On than 1 1 to 3 3 to 12 1 to 3 3 to 5 than 5 Demand Month Months Months Years Years Years Total Assets: Cash and balances with the Central Bank 24,791 22,284 — — — — 23,978 71,053 Financial assets at fair value through profit or loss Debt instruments 15,109 20,263 106,579 42,477 15,254 6,590 206,272 Equity instruments 1,911 — — — — — — 1,911 Trading derivatives 274 4,542 11,267 20,524 62,867 60,444 136,253 296,171 Other financial assets at fair value through profit or loss Loans and advances to credit institutions - Reverse repurchase agreements — 59,512 — — — — — 59,512 Loans and advances to customers - Reverse repurchase agreements — 10,844 — — — — — 10,844 Financial assets at fair value through other comprehensive income Loans and advances to customers — Debt instruments 81,142 3,833 24,881 105,799 42,950 96,716 355,321 Equity instruments — — — — — — 768 768 Financial assets at amortized cost Loans and advances to credit institutions 64,371 — — — — — 64,371 Loans and advances to customers 11,475 40,220 73,035 135,294 191,615 82,995 152,798 687,432 Debt instruments — — — — 1,699 7,785 1,969 11,453 Hedging derivatives 300 1 — 160 5,391 2,454 — 8,306 38,751 298,025 287,438 409,848 211,882 419,072 1,773,414 Liabilities: Financial liabilities at fair value through profit or loss Trading derivatives 422 3,447 11,006 17,891 58,959 60,541 133,845 286,111 Short positions — 15,365 — — — — — 15,365 Other financial liabilities at fair value through profit or loss Deposits from the Central Bank — 24,937 — — — — — 24,937 Deposits from credit institutions — 54,922 — — — — — 54,922 Customer deposits — 130,292 — — — — — 130,292 Marketable debt securities — 163 524 621 55 — — 1,363 Financial liabilities at amortized cost Deposits from the Central Bank — 126,299 — — 30 — — 126,329 Deposits from credit institutions 28,061 11,670 3,099 10,751 6,163 38 1,392 61,174 Customer deposits 499,711 156,765 28,302 49,235 4,027 3,231 930 742,201 Marketable debt securities — 20,358 6,774 31,535 27,135 34,756 10,196 130,754 Subordinated liabilities — — 346 — — 35,836 36,182 Other financial liabilities 8,294 2,289 1,136 2,616 980 — — 15,315 Hedging derivatives 4 — — 131 2,029 3,925 12,989 19,078 536,492 546,507 50,841 113,126 99,378 102,491 195,188 1,644,023 Difference (assets less liabilities) (497,741) (248,482) 57,557 174,312 310,470 109,391 223,884 129,391 b) Undiscounted contractual maturity periods 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 424,563 107,681 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 — — 15,764 452,950 160,873 63,737 109,694 59,612 9,879 64,744 921,489 The detail of the undiscounted contractual maturities of the existing financial liabilities at amortized cost as of December 31, 2020, is as follows: 12/31/2020 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 the Central Bank — 126,454 — — 31 — — 126,485 Deposits from credit institutions 28,061 11,854 3,461 11,991 7,189 231 2,615 65,402 Customer deposits 499,711 158,037 29,693 52,967 5,130 3,794 1,431 750,763 Marketable debt securities — 20,808 7,914 35,816 33,092 38,471 12,302 148,403 Subordinated liabilities — 198 398 2,173 4,767 4,767 49,253 61,556 Other financial liabilities 8,294 2,289 1,136 2,616 980 — — 15,315 536,066 193,186 42,602 105,563 51,158 47,263 65,601 1,041,439 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 12/31/2019 12/31/2020 Assets Liabilities Assets Liabilities Cash and balances with the Central Bank 4,254 — 3,657 — Debt instruments (Note 8) 112,201 — 167,862 — Loans and advances to credit institutions (Note 7) 17,765 — 29,799 — Loans and advances to customers 68,653 — 67,689 — Other assets 2,701 — 498 — Marketable debt securities (Note 21) — 25,224 — 55,875 Subordinated liabilities — 34,300 — 36,204 Derivatives — 50,335 — 69,933 Deposits from Central Bank — — — 14,934 Deposits from credit institutions (Note 19) — 18,628 — 12,597 Customer deposits (Note 20) — 81,637 — 86,780 Other financial liabilities — 1,306 — 646 Other liabilities — 1,942 — 6,627 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 analyzes 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, 2019: Total fair Total Assets Level 1 Level 2 Level 3 values carrying amount Financial assets at amortized cost: Loans and advances to credit institutions (Note 7) — 21,616 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 11,257 As of December 31, 2020: Total fair Total Assets Level 1 Level 2 Level 3 values carrying amount Financial assets at amortized cost: Loans and advances to credit institutions (Note 7) — 35,652 64,354 64,371 Loans and advances to customers (Note 11) — 646 687,432 Debt instruments (unlisted) (Note 8) — — 11,454 11,453 Other financial instruments not carried at fair value are typically short-term in nature and reprise to current market rates frequently and their carrying amount approximates fair value such as Balances with the Central Bank. 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 analyzes 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, 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 72,654 72,969 Customer deposits (Note 20) — — 630,055 Marketable debt securities (Note 21) — — 111,211 Subordinated liabilities (Note 22) 36,555 — — 36,555 34,267 Other financial liabilities (Note 23) 15,760 — — 15,760 15,764 As of December 31, 2020: Total fair Total Liabilities Level 1 Level 2 Level 3 values carrying amount Financial liabilities at amortized cost: Deposits from the Central Bank - Repurchase agreements (Note 19) — 126,293 30 126,323 126,329 Deposits from credit institutions (Note 19) — — 61,033 61,174 Customer deposits (Note 20) — 85,332 733,877 Customer deposits - Repurchase agreements (Note 20) — 8,323 — 8,323 8,324 Marketable debt securities (Note 21) — — 130,754 Subordinated liabilities (Note 22) 39,406 — — 39,406 36,182 Other financial liabilities (Note 23) — 7,522 7,961 15,483 15,486 The methodology and inputs used to calculate the fair value for each financial asset and liability class are as follows: - 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.d for significant restrictions on the ability to access or use the assets and settle the liabilities of the Bank as of December 31, 2020. f) Restriction on Accumulated reserves distribution As of December 31, 2019 and 2020, the Bank did not have any restriction on Accumulated reserves distribution, except for the legal reserve as mentioned in Note 29 (12,971 million pesos in legal reserve that includes 9,616 million pesos in legal reserve of Banco Santander México on an individual basis as of December 31, 2019 and 14,346 million pesos in legal reserve that includes 11,217 million pesos in legal reserve of Banco Santander México on an individual basis as of December 31, 2020), 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, 2020 | |
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 SME 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 Santander Corporate and Investment Banking business in Mexico, including all the managed treasury departments and the equities business. The Santander 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 2018, 2019 and 2020. 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 (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 (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 547,006 262,448 1,408,724 Total liabilities 486,372 231,236 1,285,437 The 2019 consolidated income statement and other significant data are as follows: Corporate Retail and Investment 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 (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 628,380 529,901 309,267 1,467,548 Total liabilities 618,477 509,204 205,069 1,332,750 The 2020 consolidated income statement and other significant data are as follows: Global Retail Corporate Corporate 2020 Banking Banking Activities Total Net interest income 61,444 5,605 (1,239) 65,810 Dividend income — 39 207 246 Income from companies accounted for using the equity method — — 178 178 Net fee and commission income 15,551 1,668 (196) 17,023 Gains/(losses) on financial assets and liabilities (net) 1,421 3,888 675 5,984 Exchange differences (net) — — 19 19 Other operating income/(expenses) (2,695) (714) (153) (3,562) Total income 75,721 10,486 (509) 85,698 Administrative expenses (25,649) (3,830) (656) (30,135) Depreciation and amortization (5,339) (376) (28) (5,743) Impairment losses on financial assets not at fair value through profit or loss (net) (20,772) (1,027) — (21,799) Gains/(losses) on modification of financial assets (net) (1,743) — — (1,743) Impairment losses on other assets (net) (119) — — (119) Provisions (net) (143) (10) (821) (974) 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) — — 9 9 Operating profit before tax 21,956 5,243 (1,999) 25,200 Income tax (6,226) Profit for the year 18,974 Profit attributable to the Parent 18,974 Profit attributable to non-controlling interest — Total assets 760,895 422,447 Total liabilities |
Related-party transactions
Related-party transactions | 12 Months Ended |
Dec. 31, 2020 | |
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, associated 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). To facilitate comprehension, the information is divided 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 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. 12/31/2019 12/31/2020 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) 60,737 — 109,651 — Banco Santander (Chile) — 138 — 154 Other — — — — Other financial assets at fair value through profit or loss - Loans and advances to credit institutions - Of which - Banco Santander, S.A. (Spain) — — — — Loans and advances to customers - Of which - Casa de Bolsa Santander, S.A. de C.V. — 1,915 — 1,458 Financial assets at amortized cost - Loans and advances to credit institutions - Of which - Banco Santander, S.A. (Spain) 11,334 — 26,415 — Loans and advances to customers - Of which - Santander Capital Structuring, S.A. de C.V. — 2,204 — 2,337 Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — 1,687 — 882 Key management personnel — 2,992 — 5,507 Other intangible assets - Of which - Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informáticos Generales, S.L.) — 809 — 701 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, S.L. — 53 — — Zurich Santander Seguros México, S.A. — 1,278 — 1,285 Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — — — 310 SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversión — 163 — 171 Other — 65 — 94 12/31/2019 12/31/2020 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) 51,998 — 111,873 — Banco Santander International — — — — Other — — — — 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. — 5,010 — 4,065 Other — 18 — 53 Financial liabilities at amortized cost - Deposits from credit institutions - Of which - Banco Santander, S.A. (Spain) 10,598 — 1,447 — Banco S3 México, S.A., Institución de Banca Múltiple — — — 394 Santander Bank, National Association — — — 63 Banco Santander (Brazil) — 213 — 107 Other — 84 — 16 Subordinated liabilities - Of which - Banco Santander, S.A. (Spain) 26,987 — — — Customer deposits - Of which- Operadora de Carteras Gamma, S.A.P.I. de C.V. — 73 — 99 Grupo Financiero Santander México, S.A. de C.V. — 18 — 55 Santander Global Facilities, S.A. de C.V. — 411 — 1,475 Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — 35 — 26 Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — 445 — 323 Santander Capital Structuring, S.A. de C.V. — 217 — 632 Other(*) — 1,057 — 6,187 Marketable debt securities - Of which - Banco Santander, S.A. (Spain) 930 — 978 — Other — 29 — 73 Other financial liabilities - Of which - Banco Santander, S.A. (Spain) 656 — 717 — Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander México — 90 — 39 Santander Global Facilities, S.A. de C.V. — 493 — 542 Other — 61 — 46 Other liabilities - Of which - Banco S3 México, S.A., Institución de Banca Múltiple — 58 — 1 Santander Back-offices Globales Mayorista, S.A. — 16 — 13 Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — 972 — 1,185 Other — 11 — 82 (*) 2018 2019 2020 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 — 1 — Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — 107 — 112 — 84 Casa de Bolsa Santander, S.A. de C.V. — 127 — 91 — 41 Santander Capital Structuring, S.A. de C.V. — 120 — 164 — 176 Other — 1 — 1 — 2 Interest expenses and similar charges - Of which - Banco Santander, S.A. (Spain) 1,765 — 1,536 — 1,310 — Casa de Bolsa Santander, S.A. de C.V. — 1,824 — 669 — 304 Banco S3 México, S.A., Institución de Banca Múltiple — 44 — 37 — 41 Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — 7 — — — — Santander Global Facilities, S.A. de C.V. — 32 — 38 — 52 Other — 45 — 39 — 30 Fee and commission income - Of which - Banco Santander, S.A. (Spain) 6 — 12 — 8 — Santander Investment Securities Inc. — 6 — — — — Casa de Bolsa Santander, S.A. de C.V. — 292 — 115 — 55 Zurich Santander Seguros México, S.A. — 4,645 — 4,986 — 4,031 SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversión — 1,564 — 1,567 — 1,608 Other — — — 39 — 25 Fee and commission expense- Of which - Banco Santander, S.A. (Spain) 2 — 2 — 2 — Santander Global Facilities, S.A. de C.V. — — — 161 — 135 Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — 60 — 105 — 110 Casa de Bolsa Santander, S.A. de C.V. — — — 31 — 34 SAM Asset Management , S.A. de C.V., Sociedad Operadora de Fondos de Inversión — 16 — 14 — 17 Other — 8 — — — — Gains/(losses) on financial assets and liabilities (net) - Of which - Banco Santander, S.A. (Spain) 2,145 — (19,135) — (24,086) — Banco Santander (Chile) — — — 134 — (26) Abbey National Treasury Services plc. — 56 — — — — Other — 19 — 12 — (20) Other operating income Of which - Santander Global Facilities, S.A. de C.V. — 44 — 37 — 20 Santander Digital Assets, S.L. — — — 62 — 22 Casa de Bolsa Santander, S.A. de C.V. — 113 — 53 — 55 Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — 62 — 69 — 79 Other — 29 — 44 — 37 Administrative expenses - Of which - Banco Santander, S.A. (Spain) 335 — 398 — 464 — Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — 1,804 — 2,147 — 2,875 Santander Global Facilities, S.A. de C.V. — 517 — 368 — 446 Gesban México Servicios Administrativos Globales, S.A. de C.V. — 54 — 59 — 55 Santander Back-offices Globales Mayorista, S.A. — 47 — 49 — 71 Universia México, S.A. de C.V. — — — 22 — — Casa de Bolsa Santander, S.A. de C.V. — 88 — — — — Geoban, S.A. — 75 — 60 — — Aquanima México, S. de R.L. de C.V. — 53 — 71 — 74 Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — 7 — — — — Other — 34 — 30 — 143 See Note 3 for significant transactions with related parties. |
Risk management
Risk management | 12 Months Ended |
Dec. 31, 2020 | |
Risk management | |
Risk management | 48. Risk management a) Cornerstones of the risk function The Bank’s risk principles are mandatory and must be followed at all times. They take into account regulatory requirements and market best practices. They are the following: 1. A strong risk culture ( Risk Pro ), as part of ‘The Santander Way’, which is followed by all employees, covers all risks and promotes socially responsible management that contributes to the Bank’s long-term sustainability. 2. All employees are responsible for managing risk. They must be aware of, and understand, the risks generated in their day-to-day activities, avoiding risks where the impacts are unknown or exceed the Bank’s risk appetite limits. 3. Engagement of Bank’s Management, ensuring consistent management and control of risk through their conduct, actions and communication. Bank’s Management also promotes the risk culture and assess its degree of implementation, overseeing that the risk profile is kept within the levels defined by the Bank´s risk appetite. 4. Independence of the risk management and control functions, consistent with the three lines of defense model. 5. A forward-looking and comprehensive approach to risk management and control across all business units of the Bank and risk types. 6. Complete and timely information management, enabling risks to be appropriately identified, assessed, managed and reported to the corresponding level. These principles, combined with a series of relevant interrelated tools and processes that are embedded in the Bank’s strategic planning, such as the risk appetite statement, risk profile assessment, scenario analysis, risk reporting structure and annual planning and budget process, among others, are the key components of the risk control framework which are essential for an adequate monitoring and oversight of the Bank’s risk profile. Governance, policies and practices have been strengthened in response to COVID-19 pandemic. A forward-looking and comprehensive approach to risk management and control across all business units and risk types allows the Bank to maintain a medium-low risk profile, through a risk appetite defined by the Board of Directors and the identification and assessment of existing and emerging 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. · Liquidity risk: risk of the Bank does not have the liquid financial resources to meet its obligations when they fall due, or can only obtain them at high cost. · Structural risk: risk arising from the management of different balance sheet items (banking book). It includes the risk of the Bank not having an adequate amount or quality of capital to meet its internal business objectives, regulatory requirements or market expectations. · Operational risk: risk of loss resulting from inadequate or failed internal processes, people and systems or from external events, including conduct risk. · Regulatory compliance risk: risk of non-compliance with legal and regulatory requirements as well as supervisors expectations, which may result in legal or regulatory sanctions, including fines or other financial implications. · Model risk: risk of loss arising from inaccurate predictions, causing a sub-optimal decision, or from a model being implemented or used inappropriately. · Reputational risk: risk of a current or potential negative economic impact to the Bank due to damage to its perception on the part of employees, customers, shareholders/investors and the wider community. · Strategic risk: risk of loss or damage arising from strategic decisions or their poor implementation that impact the medium and long term interests of the Bank’s key stakeholders, or from an inability to adapt to external environment. In addition, climate-change related risk drivers - whether physical or transition-led - have been identified as factors that could aggravate the existing risks in the medium and long term. The classification of risks is critical to ensure an effective risk management and control. All identified risks should be therefore referenced to the aforementioned risk categories in order to organize their management, control and related information. 2. Risk governance The Bank has a robust risk governance structure, aimed at ensuring the effective control of its risk profile in accordance with the risk appetite defined by the Board of Directors. The Board of Directors is responsible for approving the general framework for risk management and control, including tax risks. 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 México and its subsidiaries. All supported by the Bank-wide risk culture, Risk Pro . 2.1 Lines of defense The Bank follows a three lines of defense model to ensure effective risk management and control: · First line: Business units and all other functions that originate risks make up the first line of defense. These functions must ensure that these risks are aligned with the approved risk appetite and associated limits. Any business unit that originates risk has primary responsibility for the management of that risk. · Second line: Risk and Compliance & Conduct functions. Their role is to provide independent oversight and challenge to the risk management activities performed by the first line of defense. These functions ensure that risks are managed in accordance with the risk appetite defined by the Board of Directors and promote a strong risk culture throughout the organization. · Third line: The Internal Audit function, which regularly assesses policies, methodologies and procedures to ensure they are appropriate and effectively implemented for the management and control of all risks. The Risk, Compliance and Conduct and Internal Audit functions are separated and independent and have direct access to the Board of Directors and its committees. 2.2 Risk committee structure The Board of Directors is responsible for risk management and control and, in particular, for approving and periodically reviewing the risk appetite and the risk framework, as well as for promoting a strong risk culture across the whole organization. In order to conduct these tasks, the Board of Directors has the support of different committees, this is the case of the comprehensive risk management committee and the Bank’s executive risk committee, which have specific risk related responsibilities. The Bank’s Chief Risk Officer (CRO) is responsible for the oversight of all risks and for challenging and advising the business units on how they manage risks, with direct access and reporting to the comprehensive risk management committee as well as to the Board of Directors. Other bodies that make up the highest level of risk governance, with authorities delegated by the Board of Directors, are the executive risk committee and the comprehensive risk management committee, details of which are provided below: Executive risk committee This committee is responsible for risk management, within the authorities delegated by the Board of Directors. The committee makes risks taking decisions at the highest level, ensuring that they are within the established risk appetite limits for the Bank. The CEO chairs this committee and it is composed of nominated executive officers and other Bank’s senior management members. Risk, Finance and Compliance and Conduct functions, among others, are represented. The CRO has the power of veto over the committee’s decisions. Comprehensive risk management committee This committee is responsible for risk control, determining whether the risks originated by the business units are managed within the Bank’s risk appetite limits and providing a holistic view of all risks. This includes the identification and monitoring of both current and emerging risks, and evaluating their impact on the Bank's risk profile. This committee is chaired by the CRO and it is composed of senior management members from the Risk, Compliance & Conduct, Finance, Accounting and Management Control functions are represented among others. Additionally, each risk factor has its own fora, and/or regular meetings to manage and control the risks under their scope. Among others, they have the following responsibilities: - Advice the CRO and the comprehensive risk management committee that risks are being managed in accordance with the Bank’s risk appetite. - Carry out regular monitoring of each risk factor. - Oversee the measures adopted to comply with the expectations of the supervisors and internal and external auditors. For certain matters, the Bank may establish specific additional governance. For example: · In order to steer and supervise the review process of the IBOR Reform, the Bank established the IBOR steering group. This group is responsible for driving the project's strategic direction and take the required decisions to ensure a correct transition across all the Bank’s business units. The IBOR steering group operates in accordance with the methodology defined by the Bank's Execution Project Office and is chaired by the project's sponsor, the head of Santander Corporate & Investment Banking (SCIB), with the additional support of eight senior executives. 3. Management processes and tools To ensure that an effective risk management and control is carried out, the Bank has defined several key processes that rely on a series of tools, which are described as follows: 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, so that the Bank can maintain its ordinary activity in the event of unexpected circumstances. When establishing the risk appetite, adverse scenarios that could have a negative impact on capital and liquidity, profitability and/or the share price are taken into account. The risk appetite statement (RAS) is annually set by the Board of Directors for the Bank. Every business unit sets their own risk appetite on an annual basis, aligned and embedded within the Bank’s consolidated statement. The Board of Directors is responsible for approving the respective risk appetite proposals. The Bank’s statement is then further cascaded down in the form of management limits and policies by risk type, portfolio and activity segment. Risk appetite principles The following principles govern the Bank’s risk appetite: · Responsibility of the Board of Directors and of Bank’s Management. The Board of Directors is responsible for setting the risk appetite and for monitoring compliance with its requirements. · Holistic risk view (enterprise wide risk), risk profile backtesting and challenge. The risk appetite must consider all significant risks and facilitate an aggregate view of the risk profile with 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, which is embedded in the daily management by cascading down 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. Each business unit’s risk appetite must be coherent with that of the Bank. · Periodic review, backtesting 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 structure, monitoring and control Risk appetite is expressed through qualitative statements and quantitative limits structured around five main axes: • Results volatility: - Maximum loss that the Bank is willing to accept under a scenario of acute stress. • Solvency - Minimum capital position that the Bank is willing to accept under a scenario of acute stress. - Maximum leverage the Bank is willing to accept under a scenario of acute stress. • Liquidity - Minimum structural liquidity position. - Minimum liquidity horizon position that the Bank is willing to accept under a scenario of acute stress. - Minimum liquidity coverage position. • Concentration: - Concentration in single names, sectors and portfolios. - Concentration in non-investment grade counterparties. - Concentration in large exposures. • Non-financial risks - Qualitative non-financial risk indicators: • Fraud. • Technological. • Security and cyber-risk. • Reputational. • Others. - Maximum operational risk losses. - Maximum risk profile. Compliance with risk appetite limits is regularly monitored. Specialized control functions report the appropriateness of the risk profile to the Board of Directors and its committees on a monthly basis. 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. The management policies and structure of limits used to manage the different categories and types of risk are directly related to the principles and limits defined in the risk appetite statement. 3.2 Risk profile assessment (RPA) The Bank carries out identification and assessment tests 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 Bank’s risk culture. The results of these risk identification and assessment (RIA) exercises are integrated to evaluate the Bank’s risk profile through the risk profile assessment (RPA). This exercise analyzes the development of risks and identifies areas for 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 their monitoring. 3.3 Scenario analysis Another fundamental tool that is used by the Bank to ensure an effective risk management and control is the analysis of potential impacts triggered by different scenarios related to the environment in which the Bank operates. These scenarios are expressed in terms of both macroeconomic variables, as well as other variables that may affect the Bank’s risk profile. This is usually known as “scenario analysis”, which is a robust and useful tool for management at all levels. It enables the Bank to assess its resilience under stressed conditions and the identification of possible mitigating actions to be implemented in case the projected scenarios start to materialize. Its ultimate objective is to reinforce the stability of income, capital and liquidity. In this respect, the role of the Research and Public Policy area in terms of the generation of the different scenarios as well as the strict governance and control processes that these exercises are subject to, including their analysis and review by the Bank’s Management, including Internal Audit, are fundamental to ensure their quality. The robustness and consistency of the scenario analysis exercises are therefore based on the following pillars: · Development and integration of models that estimate the future performance of metrics, such as credit losses, based on historic information that can be internal to the Bank and/or external from the market, as well as on simulation techniques. · Challenge and backtesting of model results to ensure their quality. · Inclusion of expert judgment and deep knowledge of the Bank’s different portfolios. · Robust governance of the whole process, covering models, scenarios, assumptions and results rationale, as well as their impact in terms of management actions to be taken. Applications of scenario analysis Scenario analysis is included in the Bank’s risk framework, ensuring that any impact affecting its solvency or liquidity can be rapidly identified and addressed. With this objective in mind, a systematic review of the exposure to different types of risks is included, not only under the baseline scenario but also under various simulated adverse scenarios. The Bank has a map of uses in place to strengthen their alignment across the different risk types, and to facilitate the continuous improvement of such uses. An additional fundamental goal is to reinforce the integration and synergies between the different regulatory and internal exercises. 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) and liquidity assessment (ILAAP) in which, while the regulators define certain requirements, the Bank develops its own methodology to assess its capital and liquidity levels under different stress scenarios to support planning and the effective management of these two critical aspects. · Risk appetite. This includes stressed metrics for which the Bank defines maximum levels of losses (or minimum liquidity levels) that should not be exceeded. These exercises are related to those conducted for capital and liquidity, although they have different frequencies and present different granularity levels. · Climate change scenario analysis: the objective is to provide a scenario-based assessment of those risks and opportunities related to climate change. · Recurrent risk management in different processes/exercises: - Budget and strategic planning process, in the development of commercial risk approval policies, in the risk assessment for Bank’s Management or in specific analysis regarding the activity profile or portfolios. - Identification of Top risks based on a systematic process to identify and assess all risks to which the Bank is exposed. These Top risks are selected and a macroeconomic or idiosyncratic scenario is associated with each one, to assess their impact on the Bank. - Recovery plan that is drawn annually to establish the tools available to the Bank 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. 3.4 Risk Reporting Structure (RRS) The reporting model of the Bank continues to be enhanced after the simplification and optimization of processes, the quality controls implemented and the strengthening of the effective communication to Bank’s Management. Furthermore, the overall view of all risks has been consolidated, based on complete, precise and recurring information allowing the Bank’s Management to assess the risk profile and decide accordingly. The risk reporting of the Bank taxonomy contains three types of reports that are released on a monthly basis: the Bank’s risk report (which is distributed to the Bank’s Management), the risk reports of each business unit and the reports of each of the risk factors identified in the Bank’s risk framework. This taxonomy is characterized by the following: · All risk factors included in the Bank’s risk framework are covered. · Balance between data, analysis and qualitative comments is maintained throughout the reports, including forward-looking measures, risk appetite information, limits and emerging risks. · The holistic view is combined with a deeper analysis of each risk factor. · A homogenous structure and criteria. Therefore, a consolidated view is provided to enable the analysis of all risks based on common definitions. · All the metrics reported follow risk data aggregation (RDA) criteria, ensuring the quality and consistency of the data included in all risk reports. b) Credit risk 1. Introduction to the credit risk treatment Credit risk is defined as the risk that a financial loss will be incurred arising from the default or credit quality deterioration of a customer or other third party, with whom the Bank has assumed a contractual obligation, including providing credit, that may therefore not be fulfilled. 2. Main aggregates and variations Following are the main aggregates relating to credit risk from the Bank’s activities with customers: Loans to customers Non-performing loans Percentage of non-performing loans by type of customer 2018 2019 2020 2018 2019 2020 2018 2019 2020 By loan type: Public Sector 59,547 70,450 73,016 — — — — — — Commercial, financial and industrial 371,976 379,758 346,075 6,538 5,815 6,530 Mortgage 145,749 156,209 177,665 8,345 8,399 9,847 Installment loans to individuals 111,787 118,099 116,227 3,546 3,738 5,532 Revolving consumer credit card loans 56,227 59,477 53,809 1,716 1,717 2,543 Non revolving consumer loans 55,560 58,622 62,418 1,830 2,021 2,989 689,059 724,516 712,983 18,429 17,952 21,909 Information on the allowance for impairment losses The Bank estimates the allowance for impairment losses by calculating the expected credit loss at twelve months or for the entire life of the transaction, based on the stage in which each financial asset is classified in accordance with IFRS 9. Details on the allowance for impairment losses are presented in Note 11.d. Regarding the evolution of the allowance for impairment losses, the Bank monitors them by carrying out sensitivity analyses on the main variables that have an impact on the financial assets distribution in the different stages and calculating the allowance for impairment losses and updates it, based on macroeconomic scenarios. Additionally, based on similar macroeconomic scenarios, the Bank also performs stress tests and sensitivity analysis in a regular basis, such as ICAAP, strategic plans, budgets and recovery and resolution plans. In this sense, a prospective view of the sensitivity of each of the Bank’s loan portfolio is created in relation to the possible deviation from the base scenario, considering both the macroeconomic developments in different scenarios and the three-year evolution of the business. These tests include potentially adverse and favorable scenarios. The transactions classification into the different IFRS 9 stages is carried out in accordance with the regulation through the risk management policies of the Bank, which are consistent with the generally accepted principles across the industry. In order to determine the classification in Stage 2, the Bank assesses whether there has been a significant increase in credit risk since the initial recognition of the transactions, considering a series of common principles throughout the Bank that guarantee that all financial instruments are subject to this assessment, which considers the particularities of each portfolio and type of product on the basis of various quantitative and qualitative indicators. Furthermore, transactions are subject to the expert judgment of the analysts, who set the thresholds under an effective integration in management. All is implemented according to the approved governance. The establishment of judgments and criteria thresholds used by the Bank are based on a series of principles, and develop a set of techniques. The principles are as follows: · Universality: all financial instruments subject to a credit rating must be assessed for their possible significant increase in credit risk. · Proportionality: the definition of the significant increase in credit risk must take into account the particularities of each portfolio. · Materiality: its implementation must be also consistent with the relevance of each portfolio so as not to incur in unnecessary costs or efforts. · Holistic vision: the approach selected must be a combination of the most relevant credit risk aspects (e.g. quantitative and qualitative). · Application of IFRS 9: the approach must take into consideration IFRS 9 characteristics, focusing on a comparison with credit risk at initial recognition, as well as considering forward-looking information. · Risk management integration: the criteria must be consistent with those metrics considered in the day-today risk management. · Documentation: Appropriate documentation must be prepared. The techniques are summarized below: · Stability of Stage 2: in the absence of significant changes in the portfolios credit quality, the volume of assets in Stage 2 should maintain a certain stability as a whole. · Economic reasonableness: at transaction level, Stage 2 is expected to be a transitional rating for exposures that could eventually move to a deteriorating credit status at some point or Stage 3, as well as for exposures that have suffered credit deterioration and whose credit quality is improving. · Predictive power: it is expected that the significant increase in credit risk’s definition avoid, as fast as possible, direct migrations from Stage 1 to Stage 3 without having been previously classified in Stage 2. · Time in Stage 2: it is expected that the exposures do not remain categorized as Stage 2 for an excessive time. The application of the aforementioned techniques, conclude in the setting of one or several thresholds for each portfolio. Likewise, these thresholds are subject to a regular review by means of calibration tests, which may entail updating the thresholds types or their values. 3. Other credit risk aspects 3.1 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 needs of the Bank’s customers. Counterparty credit risk is the risk that the customer in a 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, transactions 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 Montecarlo 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 the 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 the Bank’s 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. 3.2 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 effective 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, 2019 and 2020, there is no financing granted to debtors or groups of individuals or entities representing a joint risk in an amount that exceeds 40% of the Bank’s Basic Capital (of the quarter immediately preceding the reporting date). b) 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. c) As of December 31, 2020, there are two loans granted to debtors (the first of 38,000 million pesos and the second of 20,047 million pesos) representing individually an amount greater than 10% of the Bank’s Basic Capital (of the quarter immediately preceding the reporting date). d) As of December 31, 2020, assets and liabilities transactions with the three main debtors or groups of individuals representing a joint risk for the aggregate amount of 40,955 million pesos and represent 36.59% of the Bank’s Basic Capital. Resolutions and provisions issued by the CNBV to address the COVID-19 pandemic On April 8, 2020, the CNBV issued some resolutions and provisions to face the contingency derived from the COVID-19 pandemic. In this sense, the CNBV, approved temporary amendments to the General Provisions Applicable to Credit Institutions ( Disposiciones de Carácter General Aplicables a las Instituciones de Crédito ) regarding “Large Exposures”. The amendment regarding lending transactions diversification, in order to implement the international standard known as “Large Exposures” ( Grandes Exposiciones ), currently under public consultation on the webpage of the National Commission for Regulatory Improvement ( Comisión Nacional de Mejora Regulatoria ), which limits systemically important global banks (G-SIB) on exposures to counterparties or groups of counterparties connected by control business ties, or by the existence of an economic dependency between them. As a measure to encourage credit flow, the aforementioned standard for banks of local systemic importance will enter into force on January 1, 2021 (instead of October 1, 2020 as originally established), keeping the terms applicable to the rest of the banks. Higher-Risk Loans The Bank does not have any significant exposure to higher-risk loans. The loan portfolio is focused on retail banking with a medium-low risk profile and with broad diversification by segment. 64.3% of the Bank net customer loans are secured, mostly by real estate collateral. Mortgages to individuals represent approximately 25% of the Bank net customer loans, with a low risk profile, low non-performing loans ratios and an adequate coverage ratio. Among other factors, this is due to the fact that these loans are mainly first residence mortgages and subject to a rigorous assessment of credit risk and affordability. The admission process assesses both the current and future payment capacity of the customer, evaluating if the customer’s disposable income will most likely be enough to meet the loans’ instalments. Certain mortgage portfolios that may present higher risks than others (interest only, flexible loans, loans with loan-to-value greater than 100%, buy to let), are subject to even more strict lending policies to mitigate their risks. Furthermore, they represent a low percentage of the Bank loan portfolio, and their performance is continuously monitored to ensure an adequate control. 3.3 Sovereign risk and exposure to other public sector entities Sovereign risk is the risk contracted in transactions with the Central Bank (including the regulatory cash reserve requirement – compulsory deposits), issuer risk from public debt portfolio and the risk arising from transactions with public institutions with the following features: their funds only come from the state’s budgeted income and the activitie |
Associated entities and consoli
Associated entities and consolidated subsidiaries | 12 Months Ended |
Dec. 31, 2020 | |
Associated entities and consolidated subsidiaries | |
Consolidated Subsidiaries | 49. Associated entities and consolidated subsidiaries a) Associated entities Place of Percentage of incorporation and direct Principal activity operation shareholding Santander Merchant Platform Solutions México, S.A. de C.V. Merchant Business Mexico City Following is a summary of the financial information on the associated entity as of December 31, 2020: 2020 Current assets 502 Non-current assets 491 Current liabilities (290) Non-current liabilities (25) Net assets 678 2020 Revenue 1,834 Expenses (1,464) Operating profit before tax 370 Income tax (7) Profit for the year 363 Other comprehensive income — Total comprehensive income 363 As of December 31, 2020, the income accounted for using the equity method recognized in the consolidated income statement was 178 million pesos. The table below provide the reconciliation of carrying amount of the investment in associated entities recognized in the consolidated balance sheet as of December 31, 2020: 2020 Reconciliation to carrying amount: Net assets on investment date 315 Profit for the period 363 Closing net assets 678 Bank’s share in associated entity (percentage) 49 % Bank’s share in associated entity 332 Goodwill 669 Carrying amount as of December 31, 2020 1,001 COVID-19 pandemic did not trigger any indication that investments in associated entities may be impaired as of December 31, 2020. b) Composition of the Bank The subsidiaries of Banco Santander México, all of which have been included in the consolidated financial statements as of December 31, 2020, 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, Entidad Regulada Credit card loans 99.99 % 100 % Santander Inclusión Financiera, S.A. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad Regulada 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. Technology services 99.99 % 100 % Fideicomiso Irrevocable F/00361 Settlement trust 99.99 % 100 % Openbank Santander México, S.A. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad Regulada Financial services 99.99 % 100 % Until December 31, 2019, Banco Santander México had 99.99% of proportion of ownership interest held of Santander Vivienda and during 2019, Banco Santander México obtained the authorization to carry out a merger through absorption between Banco Santander México and Santander Vivienda with the former being the surviving entity and the latter being the merged entity (see Notes 3 and 29.d). The total non-controlling interest recognized in the consolidated balance sheet as of December 31, 2020, amounts to 37 million pesos. Information in respect to non-controlling interest is presented in Note 27. c) Significant restrictions The Bank has the following significant restrictions on its ability to access or use the consolidated assets and settle the consolidated liabilities as of December 31, 2020: · 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 23,978 million pesos (see Note 6). · Reverse repurchase agreements 70,356 million pesos of debt instruments have been received as collateral in connection with reverse repurchase agreement transactions (see Notes 7 and 11). · Repurchase agreements 129,240 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). 201,447 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). 7,706 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 3,688 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). 7,785 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 10,729 million pesos of Mexican government securities (CETES and UDIBONDS) have been pledged in connection with securities loan transactions (see Note 8). There are no equity instruments pledged in connection with securities loans transactions (see Note 9). 137 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 4,123 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 27,954 million pesos of loans and advances to credit institutions have been pledged in connection with OTC financial derivatives transactions (see Note 7). 5,306 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). 27,954 million pesos of deposits from credit institutions and customer deposits have been received in connection with OTC financial derivatives transactions (see Note 32). 5,483 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 14,346 million pesos that include 11,217 million pesos in legal reserve of Banco Santander México on an individual basis (see Note 45). 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). · Loans to other entities within the Bank The Bank granted a loan to Santander Consumo and Santander Inclusion Financiera for 38,500 million pesos and 343 million pesos, respectively, which were eliminated from the consolidated balance sheet for consolidation purposes. d) Financial support The Bank did not give any financial support to a consolidated structured entity during 2019 and 2020. ***** |
Accounting policies (Policies)
Accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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 USD. The transactions, assets and liabilities denominated in foreign currencies are translated to pesos based on the exchange rates published by the Mexican Central Bank. The “Fix” (48-hour) exchange rate used was $18.8642 per one USD and $19.9087 per one USD as of December 31, 2019 and 2020, 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, 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, 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 all 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. Banco Santander México 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 Banco Santander México 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. Banco Santander México considers all relevant facts and circumstances in assessing whether or not Banco Santander México’s voting rights in an investee are sufficient to give it power, including: · the size of Banco Santander México’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders; · potential voting rights held by Banco Santander México, other vote holders or other parties; · rights arising from other contractual arrangements; and · any additional facts and circumstances that indicate that Banco Santander México 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 Banco Santander México obtains control over the subsidiary and ceases when Banco Santander México 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 Banco Santander México gains control until the date when Banco Santander México 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 Banco Santander México’s accounting policies. The financial statements of the subsidiaries are fully consolidated with those of Banco Santander México. 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 total 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 these results in the non-controlling interests having a deficit balance (see Note 27). The share of third parties of the consolidated total 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 included in the consolidated financial statements as of December 31, 2019 and 2020 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, assets and liabilities of associated entities 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 consolidated total 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 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, 2020, the Bank has a commercial alliance with SMPS Merchant Platform Solutions México, S.A. de C.V. (formerly, Elavon Merchant Services México, S. de R.L. de C.V.), in order to share revenues and expenses jointly related to the merchant services. This commercial alliance is not material to the consolidated financial statements. As of December 31, 2019, the Bank did not have any investment in associated entities. As of December 31, 2020, the Bank made an investment in an associated entity as detailed in Note 49.a. 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 Income Taxes and IAS 19 Employee Benefits, 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 interests previously held 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, 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 Accumulated reserves within Shareholders’ equity in the consolidated balance sheet. 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 within Shareholders’ equity in the consolidated balance sheet 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 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 IFRS 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 associated entities 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 to collect the contractual cash flows from financial assets on specified dates that are solely payments of principal and interest (SPPI), 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 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 (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 fair value through other comprehensive income (FVTOCI), or at fair value through profit or loss (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 that do not meet the criteria for being classified and measured at amortized cost or FVTOCI are classified and measured at FVTPL. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are SPPI. 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: 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: 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: 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. Financial liabilities are classified for measurement purposes into one of the following categories: - Financial liabilities at fair value through profit or loss: 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. The changes in the fair value of other financial liabilities at FVTPL due to the Bank’s own credit risk are recognized in other comprehensive income. - Financial liabilities at amortized cost: financial liabilities, irrespective of their instrumentation and maturity, not included in any of the above-mentioned categories, which arise from the ordinary borrowing activities or financing received. v. Classification of financial liabilities for presentation purposes Financial liabilities are classified by nature into the following items in the consolidated balance sheet: - Deposits: 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 and repurchase agreements of any nature with the Central Bank. - Deposits from credit institutions: deposits of any nature, including credit received, money market transactions and repurchase agreements in the name of credit institutions. - Customer deposits: deposits and repurchase agreements. - Marketable debt securities: bonds and other debt represented by marketable securities, other than those having the substance of subordinated liabilities. - Trading derivatives: 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: financial liabilities arising from the outright sale of financial assets acquired under reverse repurchase agreements, securities loans and sales of borrowed securities. - Subordinated liabilities: financing received which, for the purposes of payment priority, ranks behind ordinary debt. This category also includes the component that has the consideration of financial liability of compound 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: 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: 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 the consolidated income statement. 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. All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace. 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. The Bank classifies its financial assets into three measurement categories: - 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, fair value is not a key element in the management of these financial assets and contractual conditions give rise to cash flows on specific dates, which are SPPI. In this sense, unjustified sales are considered 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. Foreign exchange gains and losses are presented in Exchange differences (net) and impairment losses are presented within 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 financial 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 income and foreign exchange gains and losses on the financial assets’ amortized cost, which are recognized in the consolidated income statement. 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 in the consolidated income statement using the effective interest rate method. Foreign exchange gains and losses are presented in Exchange differences (net) and impairment losses are presented within Impairment losses on financial assets (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 financial 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 method The amortized cost is the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount, adjusted for any allowance for impairment losses. The gross carrying amount of a financial asset is the amortized cost of a financial asset before adjusting for any allowance for impairment losses. The effective interest method is a method of calculating the amortized cost of a financial instrument and of allocating interest income over the relevant period. 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. Modification of contractual cash flows When the contractual cash flows of a financial asset are renegotiated or otherwise modified and the renegotiation or modification does not result in cash flows that are substantially different, the modification does not result in derecognition. In which case, the Bank recalculates the gross carrying amount of the financial asset and recognizes a modification gain or loss in profit or loss. The gross carrying amount of the financial asset shall be recalculated as the present value of the renegotiated or modified contractual cash flows that are discounted at the financial asset’s original effective interest rate or credit-adjusted effective interest rate for POCI financial assets. Modification of loans and advances to customers The Bank sometimes renegotiates, refinances or otherwise modifies the contractual cash flows of loans and advances to customers. When this happens, the Bank assesses whether or not the new terms are substantially different to the original terms. The Bank does this by considering, among others, the following factors: · When the borrower is in financial difficulty, whether the modification merely reduces the contractual cash flows to amounts the borrower is expected to be able to pay. · Whether any substantial new terms are introduced that affects the risk profile of the loan. · Significant extension of the loan term when the borrower is not in financial difficulty. · Significant change in the interest rate. · Change in the currency the loan is denominated in. · Insertion of collateral, other security or credit enhancement that significantly affect the credit risk associated with the loan. · The modification is such that the loan would no longer meet the SPPI test. Modification of loans and advances to customers in the context of COVID-19 pandemic Given the potential impact of COVID ‑ 19 pandemic on customers ’ payment capacity, the Bank implemented a Support Program, which includes the partial or total deferral of principal and/or interest payments for up to four months, with the possibility of extending it to two additional months, with respect to the total amount due from borrowers, without any interest charge. The relief measures contained in the Support Program resulted in a modification to the contractual terms of the loans subject to the Support Program, that did not result in derecognition of the financial assets under IFRS 9. Details on the modification gain or loss of financial assets are presented in Note 11.g. Derecognition due to substantial modification of terms and conditions The Bank derecognizes a financial asset, such as a loan to a customer, when the terms and conditions have been changed or renegotiated to the extent that, substantially, it becomes a new loan, with the difference recognized in profit or loss, to the extent that an impairment loss has not already been recognized. The new financial asset is initially recognized at fair value. There is limited guidance in IFRS 9 with respect to determining whether a modification of a financial asset results in derecognition, hence this assessment is based on qualitative factors and may be subject to judgment. 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 income is calculated by applying the effective interest rate to their amortized cost. Debt instruments classified as at FVTOCI Debt instruments classified as at FVTOCI are initially measured at fair value plus transaction costs. Subsequently, changes in the carrying amount of these financial assets as a result of foreign exchange gains and losses, impairment losses and interest income calculated using the effective interest method are recognized in the consolidated income statement. The amounts that are recognized in the consolidated income statement are the same as the amounts that would have been recognized in the consolidated income statement, if these financial assets had been measured at amortized cost. All other changes in the carrying amount of these financial assets are recognized in other comprehensive income and accumulated under Valuation adjustments - Financial assets at fair value through other comprehensive income. When these financial assets are derecognized, the cumulative gains or losses previously recognized in other comprehensive income are reclassified to the consolidated income statement. Equity instruments The Bank designates at initial recognition and subsequently measures all equity instruments as at FVTPL, unless the Bank elects to present irrevocably fair value gains and losses on equity instruments in other comprehensive income. Designation of equity instruments as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination. A financial asset is held for trading if: · it has been acquired principally for the purpose of selling it in the near term; or · on initial recognition it is part of a portfolio of identified financial instruments that the Bank manages together and has evidence of a recent actual pattern of short-term profit-taking; or · it is a financial derivative instrument (except for a financial derivative that is a financial guarantee contract or a designated and effective hedging instrument). Investments in equity instruments at FVTOCI are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income under Valuation adjustments - Financial assets at fair value through other comprehensive income. The cumulative gain or loss is not reclassified to profit or loss following the derecognition of the equity instrument including on disposal; fair value gains and losses on equity instruments are reclassified on derecognition to Accumulated reserves within Shareholders’ equity in the consolidated balance sheet. The fair value gains and losses on equity instruments presented in other comprehensive income includes any related foreign exchange component. Dividends on these investments in equity instruments are recognized in profit or loss in accordance with IFRS 9, unless the dividends clearly represent a recovery of part of the cost of the investment. Dividends are included in Income from equity instruments in the consolidated income statement. As of December 31, 2019 and 2020, 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. 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 using the effective interest method, except for those included under Financial liabilities at fair value through profit or loss, 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. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the amortized cost of a financial liability. iii. Valuation techniques The following table shows a summary of the fair values as of December 31, 2019 and 2020 of the financial assets and liabilities indicated below, classified based on the various measurement methods used by the Bank to determine their fair value: 12/31/2019 12/31/2020 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 111,259 156,868 268,127 178,165 326,189 504,354 Other financial assets at fair value through profit or loss — 79,927 79,927 — 70,356 70,356 Financial assets at fair value through other comprehensive income 201,580 35,400 236,980 257,963 98,126 356,089 Hedging derivatives — 9,256 9,256 — 8,306 8,306 312,839 281,451 594,290 436,128 502,977 939,105 LIABILITIES: Financial liabilities at fair value through profit or loss 324 153,276 153,600 15,338 286,138 301,476 Other financial liabilities at fair value through profit or loss — 273,725 273,725 — 211,514 211,514 Hedging derivatives — 7,523 7,523 — 19,078 19,078 324 434,524 434,848 15,338 516,730 532,068 The financial instruments at fair value determined based on 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, Bank’s 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 foreign 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. 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 with 91‑day payment terms. For these fair value measurements, the 28‑day interest rate swaps 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 FVTPL and at FVTOCI The estimated fair value of these financial assets is determined using quoted prices or yield curves provided by the Bank´s pricing 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 advances to customers, 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 Montecarlo 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 Montecarlo method, but the latter is needed when the underlying is a basket. The local volatility models assume that share and index prices are log normally 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, which 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 because 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: mark-to-market (MtM) value for each transaction 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 because of the Bank’s own credit risk assumed by its counterparties in OTC financial derivatives. The CVA and DVA recognized as of December 31, 2019 amounted to 265 million pesos and 1,321 million pesos, respectively. The CVA and DVA recognized as of December 31, 2020 amounted to 328 million pesos and 1,365 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. Because 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. Additionally, 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 was reclassified between levels is not significant to the total financial instruments per level. 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, 2019 and 2020. Fair Fair Values Values Calculated Calculated Using Internal Using Internal Valuation Techniques Key Inputs Models as of Models as of 12/31/2019 12/31/2020 Level 2 Level 3 Total Level 2 Level 3 Total ASSETS: Financial assets at fair value through profit or loss: 155,930 938 156,868 325,567 622 326,189 Debt and equity instruments 5,593 — 5,593 30,019 — 30,019 Price vendor Financial instruments with low trading volume or minimum marketability. Trading derivatives: Interest rate options 421 — 421 232 — 232 Black model (closed-formula solution) Interest rate yield curve and implied volatility surface Market index options: 212 60 272 114 — 114 European options 2 — 2 1 — 1 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) — — — — — — Local volatility model with Montecarlo method Interest rate yield curves, equity prices and index levels, implied volatility surface, historical correlations and dividends estimation Quanto options 147 60 207 112 — 112 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 Auto-callable — |
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 in the consolidated balance sheet. 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 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, securities borrowing and lending agreements. Financial instruments such as loans and advances to customers 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 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 financial assets and settle the financial liabilities simultaneously. The Bank receives and gives collateral in the form of cash and debt 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, 2020: 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 derivatives assets 304,477 — 304,477 (256,053) (5,483) (23,052) 19,889 Reverse repurchase agreements 70,356 — 70,356 (10,800) (59,557) — (1) Equity instruments (*) (see Note 9.a) 107 — 107 — (137) — (30) Total 374,940 — 374,940 (266,853) (65,177) (23,052) 19,858 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 derivatives 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, 2019 and 2020, the financial instruments received as collateral in lending transactions amount to 14 million pesos and 137 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, 2020: 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 derivatives liabilities 305,189 — 305,189 (256,053) (5,306) (27,954) 15,876 Repurchase agreements 344,804 — 344,804 (10,800) (337,130) — (3,126) Short positions - Securities loans (see Note 10.b) 15,263 — 15,263 — (15,734) — (471) Total 665,256 — 665,256 (266,853) (358,170) (27,954) 12,279 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 derivatives 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 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 at FVTOCI, 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 the changes in the expected credit losses during the life of the financial asset since the initial recognition as a credit loss. In the case of financial assets at FVTOCI, 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 Since 2018, the Bank adopted IFRS 9 as issued by the IASB in July 2014, which resulted in changes in accounting policies for measurement of impairment of financial assets. The Bank assesses on a forward-looking basis the expected credit losses associated with its financial assets carried at amortized cost and at FVTOCI. 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 twelve 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: a) 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 b) Calculating the expected recovery from available collateral and guarantees, minus the estimated dispositions costs. Subsequently, expected cash flows, discounted at an appropriate rate, are estimated 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 (SME) loan portfolio. 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 expected credit loss model. 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 corporate 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 (SICR), 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” in 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 twelve-month period. In order to determine the applicable thresholds for each band, the Bank has analyzed the distribution of “Observed Default Frequency” within a twelve-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) <= 0.01178 6 0.01178 - 0.01349 16 0.01349 - 0.05377 25 > 0.05377 35 Commercial loans to real state “Lifetime PD” band at Increase in “Lifetime PD” at reporting date which initial recognition (%) is considered significant (basis points) <= 0.00683 4 0.00683 - 0.00944 16 > 0.00944 27 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) <= 0.01660 8 0.01660 - 0.02135 13 0.02135 - 0.03718 15 0.03718 - 0.06932 16 0.06932 - 0.11089 21 0.11089 - 0.14153 24 0.14153 - 0.16235 28 0.16235 - 0.25103 29 > 0.25103 31 Mortgage loans “Lifetime PD” band at Increase in “Lifetime PD” at reporting date which initial recognition (%) is considered significant (basis points) <= 0.04077 11 0.04077 - 0.05573 14 0.05573 - 0.06676 18 0.06676 - 0.12477 20 0.12477 - 0.15225 22 > 0.15225 24 Revolving consumer credit card loans “Lifetime PD” band at Increase in “Lifetime PD” at reporting date which initial recognition (%) is considered significant (basis points) <= 0.00953 10 0.00953 - 0.01147 11 0.01147 - 0.02353 16 0.02353 - 0.02900 23 0.02900 - 0.04120 26 0.04120 - 0.05442 30 0.05442 – 0.06950 34 > 0.06950 38 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) <= 0.10109 15 0.10109 - 0.13383 22 0.13383 - 0.15909 24 0.15909 - 0.19360 25 0.19360 - 0.21380 27 0.21380 - 0.24165 29 0.24165 - 0.26122 31 > 0.26122 32 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) <= 0.14306 16 0.14306 - 0.19274 20 0.19274 - 0.24346 24 0.24346 - 0.25868 28 0.25868 - 0.28734 31 0.28734 - 0.33463 33 > 0.33463 36 The “Lifetime PD” movements on financial assets which do not subsequently become more than thirty 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 Santander Corporate and Investment Banking customers, debt instruments at amortized cost and debt instruments at FVTOCI, 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 Santander Corporate and Investment Banking customers, debt instruments at amortized cost and debt instruments at FVTOCI, 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 thirty 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 or non-performing. Credit-impaired loans or non-performing 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, are considered impaired after ninety 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 ninety days interest or principal become due. Loans whose principal and interest payments have been agreed in periodic installments (amortizing loans) are considered impaired after ninety days an installment becomes due. · Mortgage loans. Mortgage loans are considered credit-impaired when a payment is past due more than ninety days. · Installment loans to individuals. Revolving consumer credit cards loans are considered credit-impaired when payment is not received after ninety days it becomes due. Non-revolving consumer loans whose principal and interest payments have been agreed in periodic installments are considered impaired after ninety 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 or non-performing 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 or when the recently twelve-month written-off balance of a customer represents more than 5% of such customer’s outstanding balance. These instruments may be reclassified to other categories if, because of the collection of part of the past due balances, the reasons for their classification in Stage 3 do not remain and the customer does not have balances more than ninety 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 customer’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 customer 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 customer does not have balances with more than ninety 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. 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: i) at least two years have elapsed from the date of reclassification to that category or from its forbearance date, ii) the customer has paid the accrued principal and interest balance, and iii) the customer has no other instruments with more than thirty 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: i) a minimum period of one year has elapsed from the forbearance date, ii) the customer has paid the accrued principal and interest amounts, and iii) the customer has no other loan balance with more than ninety days past due. Debt instruments are considered credit-impaired when a payment is past due more than ninety days. Measuring expected credit losses Measurement of expected credit losses (ECL) 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 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 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 GDP, Consumer Price Index (CPI), or unemployment rates, deemed relevant to the measurement of expected credit losses. Expected credit losses are recognized for financial assets measured at amortized cost, financial assets measured at FVTOCI, financial guarantees and loan commitments. Expected credit losses are also recognized on the undrawn portion of revolving credit lines, which include credit card limits. The expected credit losses 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 ninety 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 expected credit losses 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 expected credit losses for each future year, which is then discounted back to the reporting date and added. The discount rate used in the expected credit losses 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 expected credit losses 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, 2020 have not identified significant changes in facts and circumstances that would require updates on estimation techniques, significant assumptions or methodologies currently employed in the expected credit losses calculation. Expected credit loss measurement considerations related to COVID-19 pandemic Expected credit losses measurement according to IFRS 9 is challenging given its determination incorporates the estimation of credit events, and their consequential cash shortfalls, based on a probability - weighted approach. In times of heightened uncertainty, stressed economic conditions and government assistance, these estimations become more difficult. The assessment of the impact of the COVID-19 pandemic on expected credit losses requires significant judgment, especially as it is not directly comparable with any recent similar events and the impact depends on government measures as much as the spread of the virus. Expected credit losses are a discounted probability - weighted measurement of expected cash shortfalls either based on credit events arising in the twelve months from the reporting date or based on credit events arising over the lifetime of the financial asset. Lifetime expected credit losses are recognized when there is a significant increase in credit risk on a financial asset. IFRS 9 requires the application of judgment and requires and allows entities to adjust their approach to determining expected credit losses in different circumstances. The IASB noted that a number of assumptions and linkages underlying the way expected credit losses have been determined no longer hold in 2020 due to the COVID-19 pandemic environment. For example, the relationship between GDP and other macroeconomic variables, such as unemployment and interest rates, and sector-specific variables, such as oil prices, is very likely to be different from what has been experienced in the past and is currently used in economic forecasting models. The IASB has indicated that entities should not continue to apply their existing ECL methodology mechanically. For example, the granting of payment holidays such as the ones contained in the Support Program should not automatically result in all those loans being considered to have suffered a significant increase in credit risk. Additionally, regulators have stressed the need to differentiate a temporary liquidity need from a significant increase in credit risk and highlighted that there may be very limited information available to make this determination at an individual customer level. This means that banks should distinguish between obligors whose long-term credit risk is unlikely to be significantly affected by the COVID- 19 pandemic from those who may be more permanently impacted. Measurement of expected credit losses and assessment of a significant increase in credit risk are based on reasonable and supportable information that is available without undue cost or effort. Hence, the Bank developed its estimates based on the best available information about past events, current conditions and forecasts of economic conditions and applied certain key IFRS 9 accounting considerations related to the measurement of expected credit losses with the purpose of capture the effects of COVID - 19 pandemic. The current environment is subject to rapid change, so the Bank continuously monitors updated facts and circumstances as new information becomes available. The Support Program and the COVID-19 pandemic originated several challenges for the Bank’s Management in the measurement of expected credit losses, mainly: a) The impact of payment moratoria on the calculation of allowance for loan losses, which has as one of its key inputs, the customers’ arrears as they are a statistically proven indicator of their probability of default. Given the probability of non-payment or default is higher when a customer is late in its payments, the application of the Support Program makes null the relevance of such key input; b) Update the PD in the IFRS 9 expected credit loss model towards a Point-in-Time PD for several relevant loan portfolio; and c) Criteria regarding the classification (staging) of the customers, especially relating to a possible significant increase of credit risk. With the aim of avoid translating undesired volatility to the measurement of expected credit losses, the Bank maintained in the IFRS 9 expected credit loss model the macroeconomic conditions prior to the COVID-19 pandemic. Due to the effects of COVID-19 pandemic could not be reflected in the IFRS 9 expected credit loss model, post-model adjustments or overlays were considered. According to the Bank's internal governance, the considerations regarding the measurement of expected credit losses related to COVID-19 pandemic were submitted to the analysis and approval of the executive risk committee, a body empowered by the Board of Directors to carry out Bank’s risk management, including the measurement and recognition of expected credit losses. Support Program In measuring the expected credit losses of loans in the Support Program, the Bank classified, as a first step, the customers in different risk levels according to their COVID-19 pre-pandemic score (March 2020). Additionally, some measurement drivers were incorporated such as their outstanding amount, levels of deposits, variation in payroll dispersals and economic sector in order to determine adjusted risk levels. For risk management purposes due to COVID-19 environment, the Bank divided the customers into clusters taking into account their risk level and its credit exposure to the Bank. This classification considered mitigating mechanisms such as guarantees, loan-to-value ratio and unemployment insurance, among others. This phase consisted of identifying the loans by clusters with the objective of structuring a ‘loan portfolio management map’ where the kinds of actions to be followed in each cluster were clearly identified, according to the customer’s risk level. This helped the Bank to define specific actions for each customer in order to carry out an ‘advanced risk management strategy’ to be executed in each cluster (contact with customers, restructuring plans or specific recovery actions). Forward-looking information IFRS 9 is purposefully designed to be forward-looking, reflecting expectations of future credit events (and resulting cash shortfalls) assessed at the reporting date. Although current circumstances are difficult and create high levels of uncertainty, the expected credit losses estimated by the Bank as of December 31, 2020 are based on all reasonable and supportable information including that, which is forward-looking. The Bank updated the following forward-looking information in the measurement of the expected credit losses due to COVID-19 pandemic situation: · Macroeconomic forecasts including GDP, industry-sector growth rates, unemployment (national and regional), inflation, interest rates and property price indexation. · Customers’ probability of non-payment in response to macroeconomic factors that specifically relate to the customer, noting that customers may prioritize payments of some debt obligations over others and therefore the credit risk of amounts owed to different creditor |
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 Leases. 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 Bank 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 twelve 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 Determining whether an Arrangement Contains a Lease. 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%. |
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 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 amortized cost or 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 held for sale | j) 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 recovery of the carrying amount of these items will foreseeably be effected 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. COVID-19 pandemic did not have a significant effect in the measurement of Non-current assets held for sale as of December 31, 2020. |
Tangible assets | k) Tangible assets Tangible assets include the amount of buildings for own use, information technology (IT) equipment and fixtures, furniture and vehicles and other fixtures owned by the Bank. Tangible assets 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 based on the acquisition cost of the tangible assets less their residual value. The land on which the buildings stand has an indefinite life and therefore is not depreciated. 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 equipment and fixtures 25% Other fixtures 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). COVID-19 pandemic did not trigger any indication that a tangible asset may be impaired as of December 31, 2020. 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 tangible assets 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 based on the new useful lives. Upkeep and maintenance expenses relating to the tangible assets are recognized as an expense in the period in which they are incurred, since they do not increase the useful lives of the assets. Tangible assets are derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in the consolidated income statement. |
Leases | l) Leases The Bank as lessee 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. 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, the Bank assesses whether a contract is or contains a lease, at inception of the contract. The Bank recognizes a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee. 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 less 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. Right-of-use assets are valued at cost, which includes the following: · The amount of the initial measurement of the lease liability, · Any lease payment made at or before the commencement date less any lease incentive received, · Any initial direct costs incurred, and · Restoration costs. 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. In addition, right-of-use asset is reduced for impairment, if any, and adjusted for the remeasurement of the lease liability. The Bank applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss. The right-of-use assets are presented as a separate line in the consolidated balance sheet. The lease liability is initially measured at the present value of the 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 measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made. Lease payments included in the measurement of the lease liability comprise the following: · Fixed payments, including in-substance fixed payments, less any lease incentive receivable; · Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date. · The amounts expected to be paid by the lessee under residual value guarantees; · The exercise price of purchase options, if the lessee is reasonably certain to exercise that option; and · Lease termination penalty payments, if the term of the lease reflects the lessee's exercise of that option. The lease liability is presented as a separate line in the consolidated balance sheet. The Bank remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever: · The lease term has changed or there is a significant event or change in circumstances resulting in a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate. · The lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease payments using an unchanged discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used). · A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate at the effective date of the modification. 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. 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 to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Payments associated with short-term leases or 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 twelve months or less. Low-value assets comprise, for example, personal computers, printers, small items of office furniture, telephones and other similar assets. Whenever the Bank incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognized and measured under IAS 37. To the extent that the costs relate to a right-of-use asset, the costs are included in the related right-of-use assets. As of December 31, 2019 and 2020, the Bank did not have any lease agreements with purchase options. The Bank as lessor - Finance leases A lessor shall classify each of its leases as either an operating lease or a finance lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset. Whether a lease is a finance lease or an operating lease depends on the substance of the transaction rather than the form of the contract. At the commencement date of the lease, the assets held by the Bank under a finance lease are recognized as Financial assets at amortized cost in the consolidated balance sheet at an amount equal to the net investment in the lease. The net investment in the lease corresponds to the gross investment in the lease discounted at the interest rate implicit in the lease. The gross investment in the lease is the sum of: (a) (b) IFRS 16 defines the interest rate implicit in the lease as the rate of interest that causes the present value of (a) the lease payments and (b) the unguaranteed residual value to equal the sum of (i) the fair value of the underlying asset and (ii) any initial direct costs of the lessor. The Bank recognizes finance income over the lease term in Interest income in the consolidated income statement, based on a pattern reflecting a constant periodic rate of return on the lessor’s net investment in the lease. |
Intangible assets | m) Intangible assets Intangible assets are identifiable non-monetary assets (separable from other assets) without physical substance which arise because 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 if 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 CGU. A CGU is the smallest identifiable group of assets that, because 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 the consolidated income statement. For the purposes of the impairment analysis, goodwill is allocated to one or more CGU expected to benefit from the synergies arising from business combinations. Each CGU 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 CGU 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 Bank’s Management notes indicators of impairment. For 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-generated computer software Expenditure on research activities is recognized as an expense in the period in which it is incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the Bank are recognized as intangible assets when the following criteria are met: · it is technically feasible to complete the software so that it will be available for use, · Bank’s Management intends to complete the software and use or sell it, · there is an ability to use or sell the software, · it can be demonstrated how the software will generate probable future economic benefits, · adequate technical, financial and other resources to complete the development and to use or sell the software are available, and · the expenditure attributable to the software during its development can be reliably measured. Directly attributable costs that are capitalized as part of the software include employee costs and an appropriate portion of relevant overheads. Capitalized development costs are recognized as intangible assets and amortized from the point at which the asset is ready for use. Where no internally-generated computer software can be recognized, development expenditure is recognized in the consolidated income statement in the period in which it is incurred and cannot be subsequently capitalized. Subsequent to initial recognition, internally-generated computer software are reported at cost less accumulated amortization and accumulated impairment losses, on the same basis as intangible assets that are acquired separately. |
Provisions and contingent assets and liabilities | n) Provisions and contingent assets and liabilities When preparing the consolidated financial statements, Bank’s 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. 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, if it is probable that these assets will give rise to an increase in resources embodying economic benefits. Provisions Provisions are recognized when the Bank has a present obligation (legal or constructive) as a result of a past event, it is probable that the Bank will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. 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 consolidated financial statements include all 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 used also to cater for the specific obligations for which they were originally recognized. Provisions are reversed fully or partially 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 under scope of IAS 19: amount of all the provisions made to cover post-employment benefits, including obligations to pre-retirees and similar obligations (see note 2.t). Provisions for tax not included in the scope of IAS 12 and legal matters: amount of the provisions recognized to cover tax and legal obligations. Provisions for off-balance sheet risk: 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). |
Court proceedings and/or claims in process | o) Court proceedings and/or claims in process At the end of 2019 and 2020, 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 total 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 within Shareholders’ equity in the consolidated balance sheet. 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 and similar charges | q) Recognition of income and expenses and similar charges The most significant criteria used by the Bank to recognize its income and expenses are summarized as follows: i. Interest income and interest expenses and similar charges Interest income and interest expenses and similar charges are generally recognized on an accrual basis using the effective interest method. ii. Dividends Dividends received from equity instruments are recognized as income when the Bank’s right to receive them arises. iii. Fee and commission income and expenses Fee and commission income and expenses are recognized 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 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. iv. Non-finance income and expenses Non-finance income and expenses are recognized when the good is delivered or the non-financial service is rendered. To determine the amount and timing of recognition, IFRS 15 Revenue from Contracts with Customers 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. v. Deferred collections and payments Deferred collections and payments are recognized at the amount resulting from discounting the expected cash flows at market rates. vi. 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 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 expected credit losses 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 expected credit losses of the guaranteed financial asset and a separate reimbursement asset is recognized in the consolidated balance sheet in accordance with IAS 37 . 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 at FVTPL, are subsequently measured at the higher of: · the amount of the obligation under the contract, as determined in accordance with the IFRS 9 expected credit loss model; and · the amount initially recognized less, where appropriate, cumulative amortization recognized in accordance with the revenue recognition policies. 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 Payments 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. The cost of providing retirement benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at the end of each annual reporting period. 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 income if it constitutes income) in the consolidated income statement. The remeasurement of the net defined benefit obligation is recognized in Accumulated reserves within Shareholders’ equity in the consolidated balance sheet 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). - Remeasurements recognized in other comprehensive income are not reclassified to the consolidated income statement. 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, if 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. Current income tax The tax currently payable is based on taxable profit for the year. Taxable profit differs from Profit for the year as reported in the consolidated income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Bank’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. Deferred income tax Deferred income tax is the tax expected to be payable or recoverable on 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, tax loss and tax credit carryforwards. Deferred income tax is accounted for using the liability method. Deferred income tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realized based on tax laws and rates that have been enacted or substantively enacted at the reporting date. 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. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Income and expenses recognized directly in consolidated total equity are accounted for as temporary differences. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Bank expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. 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. Current and deferred income tax for the year The 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. 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 total equity, in which case, the current and deferred income tax are also recognized in other comprehensive income or directly in consolidated total equity, respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination. |
Remaining maturity periods | x) Remaining maturity periods The analysis of the maturities of the balances of certain items in the consolidated balance sheet at 2019 and 2020 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 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 total 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 in Accumulated reserves within Shareholders’ equity in the consolidated balance sheet. |
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 total equity. Accordingly, this consolidated statement presents: a. Profit for the year. b. The net amount of the income and expenses recognized directly in consolidated total 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 total 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 associated entities 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 IFRS 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 total 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 total 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 total 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 total equity: include the remaining items recognized in consolidated total 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 total equity. |
Introduction, basis of presen_2
Introduction, basis of presentation of the consolidated financial statements and other information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intro, basis of presentation of the consolidated financial statements and other information | |
Schedule of hedging instruments and hedged items in scope of IAS 39 due to IBOR Reform | Hedge Instrument type Instrument Maturing Hedge type prior to transition type in item Cash flow hedges USD LIBOR CCS Loans and advances to customers Cash flow hedges Euro LIBOR CCS Loans and advances to customers |
Accounting policies (Tables)
Accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial assets | |
Summary of fair values of financial assets and liabilities classified on the basis of various measurement methods | 12/31/2019 12/31/2020 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 111,259 156,868 268,127 178,165 326,189 504,354 Other financial assets at fair value through profit or loss — 79,927 79,927 — 70,356 70,356 Financial assets at fair value through other comprehensive income 201,580 35,400 236,980 257,963 98,126 356,089 Hedging derivatives — 9,256 9,256 — 8,306 8,306 312,839 281,451 594,290 436,128 502,977 939,105 LIABILITIES: Financial liabilities at fair value through profit or loss 324 153,276 153,600 15,338 286,138 301,476 Other financial liabilities at fair value through profit or loss — 273,725 273,725 — 211,514 211,514 Hedging derivatives — 7,523 7,523 — 19,078 19,078 324 434,524 434,848 15,338 516,730 532,068 |
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, 2019 and 2020. Fair Fair Values Values Calculated Calculated Using Internal Using Internal Valuation Techniques Key Inputs Models as of Models as of 12/31/2019 12/31/2020 Level 2 Level 3 Total Level 2 Level 3 Total ASSETS: Financial assets at fair value through profit or loss: 155,930 938 156,868 325,567 622 326,189 Debt and equity instruments 5,593 — 5,593 30,019 — 30,019 Price vendor Financial instruments with low trading volume or minimum marketability. Trading derivatives: Interest rate options 421 — 421 232 — 232 Black model (closed-formula solution) Interest rate yield curve and implied volatility surface Market index options: 212 60 272 114 — 114 European options 2 — 2 1 — 1 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) — — — — — — Local volatility model with Montecarlo method Interest rate yield curves, equity prices and index levels, implied volatility surface, historical correlations and dividends estimation Quanto options 147 60 207 112 — 112 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 Auto-callable — — — 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. Asian (Quanto) 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: 993 — 993 3,879 — 3,879 European barrier 1 — 1 — — — Black model (closed-formula solution) Interest rate yield curves, quoted exchange rates and implied volatility surface European options 992 — 992 3,879 — 3,879 Black model (closed-formula solution) Interest rate yield curves, quoted exchange rates and implied volatility surface Swaps 139,901 878 140,779 281,885 622 282,507 Forward estimation (non-closed formula) Interest rate yield curve and quoted exchange rates Index and securities futures 10 — 10 48 — 48 Forward estimation (non-closed formula) Interest rate yield curve and quoted exchange rates Exchange rate futures 8,800 — 8,800 9,390 — 9,390 Forward estimation (non-closed formula) Black and Scholes model with trinomial tree method (American forwards) Interest rate yield curve and quoted exchange rates and implied volatility surface Other financial assets at fair value through profit or loss: 79,927 — 79,927 70,356 — 70,356 Loans and advances to credit institutions – Reverse repurchase agreements 54,138 — 54,138 59,512 — 59,512 Forward estimation (non-closed formula) Interest rate yield curve Loans and advances to customers – Reverse repurchase agreements 25,789 — 25,789 10,844 — 10,844 Forward estimation (non-closed formula) Interest rate yield curve Financial assets at fair value through other comprehensive income: 32,525 2,875 35,400 98,126 — 98,126 Debt instruments 32,469 — 32,469 98,072 — 98,072 Price vendor Financial instruments with low trading volume or minimum marketability. Equity instruments 56 — 56 54 — 54 Other Value of shareholders’ equity Loans and advances to customers — 2,875 2,875 — — — Estimation of credit default probabilities from credit spreads Interest rate yield curves and market credit spreads Hedging derivatives: 9,256 — 9,256 8,306 — 8,306 Swaps 4,768 — 4,768 4,294 — 4,294 Forward estimation (non-closed formula) Interest rate yield curve and quoted exchange rates Exchange rate forwards 4,488 — 4,488 4,012 — 4,012 Forward estimation (non-closed formula) Interest rate yield curve and quoted exchange rates 277,638 3,813 281,451 502,355 622 502,977 Fair Fair Values Values Calculated Calculated Using Internal Using Internal Models as of Models as of Valuation 12/31/2019 12/31/2020 Techniques Key Inputs Level 2 Level 3 Total Level 2 Level 3 Total LIABILITIES: Financial liabilities at fair value through profit or loss: 152,485 791 153,276 285,648 490 286,138 Trading derivatives: Interest rate options 467 8 475 306 — 306 Black model (closed-formula solution) Interest rate yield curve and implied volatility surface Market index options: 81 60 141 648 — 648 European 1 — 1 555 — 555 Black-Scholes model (closed-formula solution) Interest rate yield curves, quoted equity prices, index levels, implied volatility surface and dividends estimation Auto-callable — — — 4 — 4 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) — — — — — — 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 80 60 140 89 — 89 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: 1,548 — 1,548 2,766 — 2,766 European barrier 4 — 4 5 — 5 Black model (closed-formula solution) Interest rate yield curves, quoted exchange rates and implied volatility surface European options 1,344 — 1,344 2,761 — 2,761 Black model (closed-formula solution) Interest rate yield curves, quoted exchange rates and implied volatility surface American barrier and touch options 200 — 200 — — — Mixed volatility model with partial differential equation method Interest rate yield curves, quoted exchange rates and implied volatility surface Swaps 134,627 723 135,350 273,805 490 274,295 Forward estimation (non- closed formula solution) Interest rate yield curves and quoted exchange rates Index and securities futures 18 — 18 33 — 33 Forward estimation (non- closed formula solution) Interest rate yield curves, quoted equity prices and index levels exchange rates Exchange rate futures 6,625 — 6,625 8,063 — 8,063 Forward estimation (non- closed formula solution) Interest rate yield curve and quoted exchange rates Short positions: Debt instruments 9,119 — 9,119 27 — 27 Forward estimation (non- closed formula solution) Interest rate yield curve Other financial liabilities at fair value through profit or loss: 273,725 — 273,725 211,514 — 211,514 Deposits from the Central Bank – Repurchase agreements 111,574 — 111,574 24,936 — 24,936 Forward estimation (non- closed formula solution) Interest rate yield curve Deposits from credit institutions – Repurchase agreements 29,689 — 29,689 54,922 — 54,922 Forward estimation (non- closed formula solution) Interest rate yield curve Customer deposits – Repurchase agreements 129,216 — 129,216 130,293 — 130,293 Forward estimation (non- closed formula solution) Interest rate yield curve Marketable debt securities 3,246 — 3,246 1,363 — 1,363 Present value (non-closed formula solution) and Black-Scholes model with closed-formula solution Interest rate yield curve, quoted equity prices and index levels, implied volatility surface, historical correlations and dividends estimation Hedging derivatives: 7,523 — 7,523 19,078 — 19,078 Swaps 7,114 — 7,114 18,509 — 18,509 Forward estimation (non- closed formula solution) Interest rate yield curve and quoted exchange rates Exchange rate forwards 409 — 409 569 — 569 Forward estimation (non- closed formula solution) Interest rate yield curve and quoted exchange rates 433,733 791 434,524 516,240 490 516,730 |
Schedule of changes in financial assets classified as Level 3 | Assets Trading Loans and advances derivatives to customers Total Balance at January 1, 2018 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 2,875 Settlements — (771) (771) Balance at December 31, 2019 938 2,875 3,813 Total gains/losses recognized in the consolidated income statement: Gains/(losses) on financial assets and liabilities (net) (265) — (265) Purchases 6 — 6 Transfer out — — — New issuances — — — Settlements (57) (2,875) (2,932) Balance at December 31, 2020 622 — 622 |
Schedule of changes in financial liabilities classified as Level 3 | Liabilities Trading derivatives Balance at December 31, 2018 (155) Total gains/losses recognized in the consolidated income statement: Gains/(losses) on financial assets and liabilities (net) — Purchases (791) Transfer out 155 New issuances — Settlements — Balance at December 31, 2019 (791) Total gains/losses recognized in the consolidated income statement: Gains/(losses) on financial assets and liabilities (net) (8) Purchases (369) Transfer out 617 New issuances — Settlements 61 Balance at December 31, 2020 (490) |
Schedule of significant unobservable inputs used in measuring financial instruments categorized as Level 3 | The table below shows the effect as of December 31, 2020 on the fair value of the financial instruments classified as Level 3 of a reasonable change in the assumptions used in the valuation. 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) — Black model (closed-formula) Interest rate curve referenced to 91-day TIIE 91-day TIIE interest rate curve = 28-day TIIE interest rate curve + (-22 basis points, -1 basis points) A significant decrease in 91-day TIIE interest rate curve would result in a higher fair value Cross currency swaps 115 Forward estimation (non-closed formula) Long-term peso exchange rate (above 20 years) Bid-offer spread IRS TIIE (5 basis points) CCS USD/Peso (5 basis points) A significant decrease in long-term peso exchange rate would result in a lower fair value Swaps Lock-In 203 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 (186) Forward estimation (non-closed formula) Long-term peso exchange rate (above 20 years) Interest rate curve referenced to 91-day TIIE 91-day TIIE interest rate curve = 28-day TIIE interest rate curve + (-22 basis points, -1 basis points) Bid-offer spread IRS TIIE (5 basis points) CCS USD/Peso (5 basis points) IRS UDI/Peso (5 basis points - 20 basis points) A significant decrease in 91-day TIIE interest rate curve would result in a higher fair value The same scenario applied on long-term peso exchange rate would result in a lower fair value This effect was determined by applying the probable valuation ranges of the main unobservable inputs detailed in the following table: |
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, 2020 Most Least Favorable Favorable Input Input ASSETS: Cross currency swaps 5 (4) LIABILITIES: Interest rate swaps 2 (1) |
Schedule of sensitivity analysis | The VaR amounts as of December 31, 2020, including all financial instruments in the trading book position of the Bank are as follows: Average High Low 12/31/2020 All financial instruments 165 378 55 74 By category: Instruments sensitive to interest rate 86 187 30 73 Instruments sensitive to equity market prices 5 29 — — Instruments sensitive to foreign currency exchange rates 127 285 11 12 Instruments sensitive to volatility movements 8 45 3 9 |
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, 2020: 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 derivatives assets 304,477 — 304,477 (256,053) (5,483) (23,052) 19,889 Reverse repurchase agreements 70,356 — 70,356 (10,800) (59,557) — (1) Equity instruments (*) (see Note 9.a) 107 — 107 — (137) — (30) Total 374,940 — 374,940 (266,853) (65,177) (23,052) 19,858 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 derivatives 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, 2019 and 2020, the financial instruments received as collateral in lending transactions amount to 14 million pesos and 137 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, 2020: 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 derivatives liabilities 305,189 — 305,189 (256,053) (5,306) (27,954) 15,876 Repurchase agreements 344,804 — 344,804 (10,800) (337,130) — (3,126) Short positions - Securities loans (see Note 10.b) 15,263 — 15,263 — (15,734) — (471) Total 665,256 — 665,256 (266,853) (358,170) (27,954) 12,279 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 derivatives 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 77,657 — 77,657 — (77,824) — (167) Total 508,420 — 508,420 (131,534) (282,527) (14,300) 80,059 |
Schedule of factors used for the ECL estimate | December 31, 2020: Factor Scenario December 2020 December 2021 December 2022 December 2023 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 19.09 18.28 18.56 18.85 Downside 25.57 25.66 24.53 23.87 Base Loans - Mortgage (% year over year) Upside Downside (4.50)% (0.20)% Base Loans - Consumer Upside Downside (7.40)% Base Deposits - Total (% year over year) Upside Downside (3.43)% (2.37)% (0.14)% Base Stock markets (level) Upside Downside The factors used for ECL estimates related to post-model adjustments or overlays as of December 31, 2020 were as follows: Factor Scenario December 2020 December 2021 December 2022 December 2023 GDP Long-run (0.89)% (1.26)% (0.06)% CPI Long-run Unemployment rates Long-run Peso/USD Long-run 23.29 22.45 22.66 22.95 Loans - Mortgage Long-run Loans - Consumer Long-run (8.76)% (11.37)% Deposits - Total Long-run (1.28)% (0.17)% Stock markets Long-run |
Schedule of weightings assigned to each macroeconomic scenario | December 31, 2020 Scenario Weighting Base Upside Downside December 31, 2019 Scenario Weighting Base Upside Downside |
Sensitivity analysis, changes to the ECL | Most Favorable Least Favorable Scenario Scenario Retail loan portfolio (9.7)% Non-retail loan portfolio (9.2)% |
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 tangible asset depreciation rates | Average Annual Rate Buildings for own use 2% to 5% Furniture and vehicles 10% to 20% Information technology equipment and fixtures 25% Other fixtures 5% to 20% |
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) <= 0.01178 6 0.01178 - 0.01349 16 0.01349 - 0.05377 25 > 0.05377 35 |
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) <= 0.00683 4 0.00683 - 0.00944 16 > 0.00944 27 |
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) <= 0.01660 8 0.01660 - 0.02135 13 0.02135 - 0.03718 15 0.03718 - 0.06932 16 0.06932 - 0.11089 21 0.11089 - 0.14153 24 0.14153 - 0.16235 28 0.16235 - 0.25103 29 > 0.25103 31 |
Mortgage 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) <= 0.04077 11 0.04077 - 0.05573 14 0.05573 - 0.06676 18 0.06676 - 0.12477 20 0.12477 - 0.15225 22 > 0.15225 24 |
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) <= 0.00953 10 0.00953 - 0.01147 11 0.01147 - 0.02353 16 0.02353 - 0.02900 23 0.02900 - 0.04120 26 0.04120 - 0.05442 30 0.05442 – 0.06950 34 > 0.06950 38 |
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) <= 0.10109 15 0.10109 - 0.13383 22 0.13383 - 0.15909 24 0.15909 - 0.19360 25 0.19360 - 0.21380 27 0.21380 - 0.24165 29 0.24165 - 0.26122 31 > 0.26122 32 |
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) <= 0.14306 16 0.14306 - 0.19274 20 0.19274 - 0.24346 24 0.24346 - 0.25868 28 0.25868 - 0.28734 31 0.28734 - 0.33463 33 > 0.33463 36 |
Significant events (Tables)
Significant events (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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) |
Schedule of loans registered in Support Programs | Support programs By loan type: Commercial, financial and industrial loans 58,479 Mortgage loans 64,235 Installment loans to individuals - 28,095 Revolving consumer credit card loans 8,770 Non-revolving consumer loans 19,325 150,809 |
Distribution of the Bank's pr_2
Distribution of the Bank's profit and Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Distribution of the Bank's profit and Earnings per share | |
Schedule of distribution of the Bank's profit | 2018 2019 2020 Profit of the year 19,356 20,381 18,974 Dividends declared 9,228 10,293 — Dividend per share (pesos) 1.36 1.52 — Date of payment 06/29/2018 and 05/28/2019 and 12/28/2018 12/27/2019 |
Earnings per share basic and diluted | Accordingly, basic earnings per share were determined as follows: 2018 2019 2020 Profit attributable to the Parent 19,353 20,381 18,974 Profit attributable to the Parent (net of non-controlling interest) 19,353 20,381 18,974 Weighted average number of shares outstanding 6,776,220,369 6,775,455,458 6,776,640,349 Basic earnings per share (pesos) 2.86 3.01 2.80 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 were determined as follows: 2018 2019 2020 Profit attributable to the Parent 19,353 20,381 18,974 Profit attributable to the Parent (net of non-controlling interest) 19,353 20,381 18,974 Weighted average number of shares outstanding 6,776,220,369 6,775,455,458 6,776,640,349 Dilutive effect of rights on shares 10,773,988 11,538,899 10,354,008 Adjusted number of shares 6,786,994,357 6,786,994,357 6,786,994,357 Diluted earnings per share (pesos) 2.85 3.00 2.80 |
Cash and balances with the Ce_2
Cash and balances with the Central Bank (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash and balances with the Central Bank | |
Schedule of breakdown by type of balances of cash and balances with the Central Bank | 12/31/2019 12/31/2020 Cash 25,793 24,791 Central Bank compulsory deposits 28,094 23,978 Deposits in the Central Bank 11,292 22,264 Accrued interest 28 20 65,207 71,053 |
Loans and advances to credit _2
Loans and advances to credit institutions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Loans and advances - Credit institutions | |
Financial assets | |
Schedule of financial assets | 12/31/2019 12/31/2020 Classification: Other financial assets at fair value through profit or loss 54,138 59,512 Financial assets at amortized cost 36,895 64,371 91,033 123,883 Type: Reciprocal accounts 14,597 11,610 Time deposits 29 10 Guarantee deposits - Collateral delivered for OTC financial derivatives transactions (Note 32) 14,300 27,954 Reverse repurchase agreements 54,138 59,512 Other accounts 7,969 24,797 91,033 123,883 Currency: Peso 73,268 94,084 USD 17,429 29,620 Other currencies 336 179 91,033 123,883 |
Debt Instruments (Tables)
Debt Instruments (Tables) - Debt instruments. | 12 Months Ended |
Dec. 31, 2020 | |
Financial assets | |
Schedule of financial assets | 12/31/2019 12/31/2020 Classification: Financial assets at fair value through profit or loss 110,613 206,272 Financial assets at fair value through other comprehensive income 233,463 355,321 Financial assets at amortized cost 11,257 11,453 355,333 573,046 Type: Mexican government debt securities 273,487 443,909 Of which: Collateral delivered for OTC financial derivatives transactions (Note 32) 4,472 744 Foreign government debt securities 69,113 119,276 Of which: Collateral delivered for OTC financial derivatives transactions (Note 32) — 4,562 Brazilian Government Notes 30,225 23,870 US Government Treasury Bills (T-BILLS) 34,506 91,976 US Government Treasury Notes (T-NOTES) 4,382 3,430 Debt securities issued by financial institutions 2,270 3,413 Other debt securities 10,463 6,448 355,333 573,046 Currency: Peso 243,132 405,184 USD 47,897 108,411 Brazilian Real (BRL) 30,225 23,870 Other currencies 34,079 35,581 355,333 573,046 |
Schedule of classification by rating of financial assets | The breakdown by issuer rating of Debt instruments as of 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 % The breakdown by issuer rating of Debt instruments as of December 31, 2020 is as follows: Private Debt Sovereign Debt Total % AAA — 95,406 95,406 16.65 % A 9,596 391,651 401,247 70.02 % BBB 267 48,587 48,854 8.53 % BB — 3,669 3,669 0.64 % Below B — 23,870 23,870 4.17 % 9,863 563,183 573,046 100 % |
Financial assets at fair value through profit or loss category | |
Financial assets | |
Schedule of financial assets | 12/31/2019 12/31/2020 Federal Treasury Securities (CETES) 25,348 81,017 United Mexican States Bonds (UMS) 30 141 Federal Mexican Government Development Bonds (BONDES) 29,708 22,345 M and M10 Mexican Government Bonds (M Bonds) 11,601 51,313 Mexican Bank Saving Protection Bonds (BPATS) 13,750 22,623 Federal Mexican Government Development Bonds in UDIS (1) (UDIBONDS) 4,619 4,469 T-BILLS 10,928 12,342 T-NOTES 4,382 3,430 Other debt securities 10,247 8,592 110,613 206,272 |
Financial assets at fair value through other comprehensive income category | |
Financial assets | |
Schedule of financial assets | 12/31/2019 12/31/2020 CETES — 1,272 UMS 43,058 48,447 M, M3 and M5 Mexican Government Bonds (M Bonds) 117,974 189,137 BPATS 11,499 8,616 UDIBONDS 4,643 3,076 T-BILLS 23,578 79,634 Brazilian Government Notes 30,225 23,870 Other debt securities 2,486 1,269 233,463 355,321 |
Schedule of gross carrying amount of the financial assets | 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 241,932 — 241,932 — 241,932 Foreign government debt instruments 103,504 — 103,504 — 103,504 Debt instruments issued by the Central Bank 8,616 — 8,616 — 8,616 Other fixed-income interest debt instruments 1,269 — 1,269 — 1,269 355,321 — 355,321 — 355,321 |
Schedule of changes in financial instruments | 2018 2019 2020 Beginning balance 164,947 154,483 233,463 Reclassification from Available-for-sale to Amortized cost (73,131) — — Beginning balance as restated 91,816 154,483 233,463 Net additions/(disposals) 63,824 75,061 119,141 Valuation adjustments (1,226) 4,108 3,560 Amounts reclassified to the consolidated income statement 69 (189) (843) Balance at year-end 154,483 233,463 355,321 |
Schedule of allowance for impairment losses | The following is a breakdown of the allowance for impairment losses of Debt instruments classified 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 impairment losses of Debt instruments classified at fair value through other comprehensive income and at amortized cost as of December 31, 2020: Allowance for impairment losses Stage 1 Stage 2 Stage 3 Total Written-off financial assets Financial assets at fair value through other comprehensive income 91 — — 91 — Of which: Mexican government debt instruments 89 — — 89 — Other fixed-income interest debt instruments 2 — — 2 — Financial assets at amortized cost — — — — — 91 — — 91 — |
Financial assets at amortized cost category | |
Financial assets | |
Schedule of financial assets | 12/31/2019 12/31/2020 Special CETES 3,471 3,668 Bonos de Regulación Monetaria Reportables - (BREMS R) 7,786 7,785 11,257 11,453 Type: Unquoted 3,471 3,668 Quoted 7,786 7,785 |
Schedule of gross carrying amount of the financial assets | The following is a breakdown of the gross carrying amount of Debt instruments – Financial assets at amortized cost as of December 31, 2020: Gross carrying amount Stage 1 Stage 2 Subtotal Stage 3 Total Financial assets at amortized cost Of which: Mexican government debt instruments 11,453 — 11,453 — 11,453 |
Equity instruments (Tables)
Equity instruments (Tables) - Equity instruments. | 12 Months Ended |
Dec. 31, 2020 | |
Financial assets | |
Schedule of financial assets | 12/31/2019 12/31/2020 Classification: Financial assets at fair value through profit or loss 5,767 1,911 Financial assets at fair value through other comprehensive income 642 768 6,409 2,679 Type: Shares of Mexican companies 6,409 2,679 Shares of foreign companies — — 6,409 2,679 |
Financial assets at fair value through other comprehensive income category | |
Financial assets | |
Schedule of changes in financial instruments | 2018 2019 2020 Beginning balance as of January 1 795 535 642 Recognition of own equity instruments held for future equity-settled share-based payments (Note 3) (247) — — Transfer to non-current assets held for sale — — — Net additions/(disposals) — — — Valuation adjustments (13) 107 126 Amounts reclassified to the consolidated income statement — — — Balance at year-end 535 642 768 |
Trading derivatives (assets a_2
Trading derivatives (assets and liabilities) and Short positions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Trading derivatives | |
Financial instruments | |
Schedule of financial instruments | 12/31/2019 12/31/2020 Debit Credit Debit Credit Balance Balance Balance Balance Interest rate risk 80,499 76,639 196,402 189,841 Currency risk 71,026 67,623 99,606 95,406 Market price risk 222 219 163 864 151,747 144,481 296,171 286,111 |
Short positions | |
Financial instruments | |
Schedule of financial instruments | 12/31/2019 12/31/2020 Securities loans: Debt instruments 8,280 15,263 Equity instruments — — 8,280 15,263 Short sales: Debt instruments 839 102 9,119 15,365 |
Loans and advances to custome_2
Loans and advances to customers (Tables) - Loans and advances - Customers | 12 Months Ended |
Dec. 31, 2020 | |
Financial assets | |
Schedule of financial assets | 12/31/2019 12/31/2020 Other financial assets at fair value through profit or loss 25,789 10,844 Financial assets at fair value through other comprehensive income 2,875 — Financial assets at amortized cost 699,671 687,432 728,335 698,276 Of which: Before allowance for impairment losses 750,305 723,827 Allowance for impairment losses (21,970) (25,551) 728,335 698,276 |
Schedule of detail by classification of loans and advances to customers | 12/31/2019 12/31/2020 By loan type: Commercial, financial and industrial loans 373,943 339,545 Public sector loans 70,450 73,016 Mortgage loans 147,810 167,818 Reverse repurchase agreements 25,789 10,844 Installment loans to individuals - Revolving consumer credit card loans 57,760 51,266 Non-revolving consumer loans 56,601 59,429 Impaired loans 17,952 21,909 750,305 723,827 By borrower sector: Public sector 70,450 73,016 Individuals 274,053 290,580 Communications and transportation 35,773 33,250 Construction 47,872 38,160 Manufacturing 63,652 53,187 Services 122,970 109,180 Tourism 25,244 26,275 Other sectors 110,291 100,179 750,305 723,827 By geographical area: Mexico 750,305 723,827 750,305 723,827 By interest rate: Fixed rate 270,930 307,990 Floating rate 479,375 415,837 750,305 723,827 |
Schedule of gross carrying amount of the financial assets | The following is a breakdown of the gross carrying amount of Loans and advances to customers – Financial assets at fair value through other comprehensive income and 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 Of which: Commercial, financial and industrial loans 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 gross carrying amount of Loans and advances to customers – Financial assets at amortized cost as of December 31, 2020: Fair value/Gross carrying amount Stage 1 Stage 2 Subtotal Stage 3 (*) Total Financial assets at amortized cost 620,543 70,531 691,074 21,909 712,983 Of which: Commercial, financial and industrial loans 291,980 47,565 339,545 6,530 346,075 Public sector loans 73,016 — 73,016 — 73,016 Mortgage loans 157,054 10,764 167,818 9,847 177,665 Installment loans to individuals - 98,493 12,202 110,695 5,532 116,227 Revolving consumer credit card loans 44,309 6,957 51,266 2,543 53,809 Non-revolving consumer loans 54,184 5,245 59,429 2,989 62,418 (*) As of December 31, 2020, 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, 2020 676,508 27,176 17,952 721,636 Transfers: Transfer from Stage 1 to Stage 2 4,700 (4,700) — — Transfer from Stage 1 to Stage 3 581 — (581) — Transfer from Stage 2 to Stage 3 — 1,237 (1,237) — Transfer from Stage 2 to Stage 1 (36,761) 36,761 — — Transfer from Stage 3 to Stage 2 — 19,702 — Transfer from Stage 3 to Stage 1 (8,792) — 8,792 — Remaining in same Stage (*) 32,952 1,224 Financial assets derecognized during the period other than write-offs (241) (18) (22) (281) Originated financial assets 622,049 — — 622,049 Write-offs — — (21,590) Other movements (59,785) (3,175) (2,331) (65,291) As of December 31, 2020 620,543 70,531 21,909 712,983 (*) Includes mainly payments of principal and accrued interest. |
Schedule of changes in the allowance for impairment losses | 2018 2019 2020 Beginning balance as of January 1 (as originally presented) (16,929) (21,516) (21,970) Adjustments on initial adoption of IFRS 9 (3,270) — — Beginning balance as of January 1 (restated) (20,199) (21,516) (21,970) Impairment losses on financial assets - Financial assets at amortized cost (*) (20,947) (21,673) (25,184) Impairment losses on financial assets - Financial assets at fair value through other comprehensive income (2) (5) — Write-offs 19,678 21,154 21,590 Others (46) 70 13 Balance at year-end (21,516) (21,970) (25,551) Of which: By geographical location of risk: Mexico (21,516) (21,970) (25,551) (*) |
Schedule of breakdown of the allowance for impairment losses included the post-model adjustments or overlay | Allowance for impairment losses IFRS 9 Model Macroeconomic overlay Impairment overlay Total Total Overlay to IFRS 9 Model Financial assets at amortized cost (24,093) (613) (845) (25,551) Of which: Commercial, financial and industrial loans (7,757) (558) (572) (8,887) Public sector loans (14) (1) — (15) Mortgage loans (4,108) 30 — (4,078) (1)% Installment loans to individuals - (12,214) (84) (273) (12,571) Revolving consumer credit card loans (6,010) (67) (273) (6,350) Non-revolving consumer loans (6,204) (17) — (6,221) |
Schedule of allowance for impairment losses and write-offs | The following is a breakdown of the allowance for impairment losses and the write-offs as of December 31, 2020: Allowance for impairment losses Stage 1 Stage 2 Stage 3 Total Write-offs Financial assets at amortized cost (6,215) (8,902) (10,434) (25,551) (21,590) Of which: Commercial, financial and industrial loans (2,047) (3,438) (3,402) (8,887) (7,919) Public sector loans (15) — — (15) — Mortgage loans (625) (824) (2,629) (4,078) (1,145) Installment loans to individuals - (3,528) (4,640) (4,403) (12,526) Revolving consumer credit card loans (1,526) (2,837) (1,987) (6,350) (7,020) Non-revolving consumer loans (2,002) (1,803) (2,416) (6,221) (5,506) |
Schedule of transfers of allowance for impairment losses of financial assets | Allowance for impairment losses Stage 1 Stage 2 Stage 3 Total Beginning balance as of January 1 7,254 5,466 9,250 21,970 As of January 1, 2020 Transfers: Transfer from Stage 1 to Stage 2 121 (695) — (574) Transfer from Stage 1 to Stage 3 24 — (101) (77) Transfer from Stage 2 to Stage 3 — 118 (248) (130) Transfer from Stage 2 to Stage 1 (412) 5,129 — 4,717 Transfer from Stage 3 to Stage 2 — (383) 942 559 Transfer from Stage 3 to Stage 1 (347) — 5,047 4,700 Financial assets derecognized during the period other than write-offs (7) (8) (47) (62) Contracts remaining at the same stage (2,718) (422) 17,813 14,673 Write-offs — — (21,590) (21,590) Originated financial assets 2,537 — — 2,537 Foreign exchange and other movements (237) (303) (632) (1,172) As of December 31, 2020 6,215 8,902 10,434 25,551 |
Schedule of breakdown by stages of the post-model adjustments or overlays recognized within the allowance for loan losses | Overlays Stage 1 Stage 2 Stage 3 Total Macroeconomic overlay (397) (202) (14) (613) Impairment overlay — (819) (26) (845) Total (397) (1,021) (40) (1,458) |
Schedule of changes in financial assets considered to be impaired | 2018 2019 2020 Beginning balance 18,132 18,429 17,952 Additions 32,461 31,418 37,216 Transfers to performing loans (12,486) (10,741) (11,669) Written-off loans (19,678) (21,154) (21,590) Balance at year - end 18,429 17,952 21,909 |
Schedule of financial assets between no past due and past due | The breakdown between no past due and past due as of December 31, 2019 of the balance of Loans and advances to customers – Financial assets at amortized cost that are considered to be credit-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 The breakdown between no past due and past due as of December 31, 2020 of the balance of Loans and advances to customers – Financial assets at amortized cost that are considered to be credit-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 2,324 3,310 326 196 374 6,530 Mortgage loans 1,982 2,097 741 1,084 3,943 9,847 Installment loans to individuals Of which: Revolving consumer credit card loans 868 1,675 — — — 2,543 Non-revolving consumer loans 474 2,515 — — — 2,989 5,648 9,597 1,067 1,280 4,317 21,909 |
Schedule of renegotiated loans | For the Year Ended 12/31/2018 For the Year Ended 12/31/2019 For the Year Ended 12/31/2020 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 1,318 — 3,011 4,329 1,215 — 2,318 3,533 2,158 — 912 3,070 Mortgage loans 603 — 530 1,133 369 — 293 662 356 — 329 685 Installment loans to individuals 1,147 — 205 1,352 850 — 306 1,156 1,627 — 272 1,899 3,068 — 3,746 6,814 2,434 — 2,917 5,351 4,141 — 1,513 5,654 Percentage 45 % — 55 % 100 % 45 % — 55 % 100 % 73 % — 27 % 100 % |
Schedule of gains/(losses) on modification of financial assets (net) recognized in the consolidated income statement | 2020 Commercial, financial and industrial loans (605) Mortgage loans (224) Installment loans to individuals - Non-revolving consumer loans (914) (1,743) |
Schedule of maximum exposure to credit risk by class of financial assets | 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: 769,788 316,232 453,556 — — 69,732 148,360 8,118 Of which: Loans and advances to credit institutions 36,895 36,895 — — — — — — Loans and advances to customers: 721,636 268,080 453,556 — — 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 19,077 137,132 — — — 120,461 — Installment loans to individuals: 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 — — — — — — Available lines of credit cards and non-revolving consumer loans — — — — — — — — 1,428,587 872,609 555,978 16,759 82,328 69,732 148,360 8,118 (1) Correspond to loans and advances to customers 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 advances to customers are secured by multiple credit enhancements. (2) Appraisals to support estimated fair value of the real estate collaterals are obtained at loan origination. (3) Public sector loan rights are guaranteed by Mexican government entities. 12/31/2020 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 502,443 473,908 28,535 23,052 5,483 — — — Other financial assets at fair value through profit or loss 70,356 — 70,356 — 59,557 — — — Financial assets at fair value through other comprehensive income 355,321 355,321 — — — — — — Financial assets at amortized cost: 712,983 208,053 504,930 — — 83,544 176,841 7,073 Of which: Loans and advances to credit institutions — — — — — — — — Loans and advances to customers 712,983 208,053 504,930 — — 83,544 176,841 7,073 Commercial, financial and industrial loans 346,075 72,756 273,319 — — 45,694 29,342 7,073 Public sector loans 73,016 21,510 51,506 — — 34,677 — — Mortgage loans 177,665 5,007 172,658 — — 3,140 140,096 — Installment loans to individuals: — — Revolving consumer credit card loans 53,809 53,809 — — — — — — Non-revolving consumer loans 62,418 54,971 7,447 — — 33 7,403 — Debt instruments — — — — — — — — Guarantees and loan commitments 83,645 83,645 — — — — — — 1,724,748 1,120,927 603,821 23,052 65,040 83,544 176,841 7,073 (1) Correspond to loans and advances to customers 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 advances to customers are secured by multiple credit enhancements. (2) Appraisals to support estimated fair value of the real estate collaterals are obtained at 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 | 12/31/2019 Rating Category A-1 A-2 B-1 B-2 B-3 C-1 C-2 D E Not Rated Total Commercial loans (SME) 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 in 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 12/31/2020 Rating Category A-1 A-2 B-1 B-2 B-3 C-1 C-2 D E Not Rated Total Commercial loans (SME) 44,392 4,779 2,771 2,327 4,455 1,566 588 3,762 1,092 — 65,732 Mortgage loans 138,867 6,170 3,626 6,523 2,218 5,295 4,303 4,355 1,443 190 172,990 Revolving consumer credit card loans 9,804 16,790 7,746 3,826 2,625 3,586 3,891 4,612 927 — 53,807 Non-revolving consumer loans 14,225 5,548 17,865 8,667 4,427 2,675 2,524 1,050 4,573 — 61,554 207,288 33,287 32,008 21,343 13,725 13,122 11,306 13,779 8,035 190 354,083 Financial instruments not recognized in the consolidated balance sheet: Available lines of credit cards and non-revolving consumer loans 29,062 10,754 2,698 1,251 905 938 701 248 89 — 46,646 Guarantees 1 — — — — — — — — — 1 Loan commitments 103 — — — — — — — 8 — 111 29,166 10,754 2,698 1,251 905 938 701 248 97 — 46,758 236,454 44,041 34,706 22,594 14,630 14,060 12,007 14,027 8,132 190 400,841 |
Internal credit grades | |
Financial assets | |
Schedule of credit risk exposure | 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 SME) — — — — — 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 in 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 12/31/2020 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 SME) — — — — — — — 1,751 11,269 41,729 26,484 68,363 84,532 21,204 12,389 4,156 3,334 4,257 998 704 555 7,806 289,531 Public sector loans — — — — — — — — 8,966 — 5,005 8,893 27,846 8,736 — — — — — — — — 59,446 — — — — — 7,806 348,977 Financial instruments not recognized in the consolidated balance sheet: Guarantees 520 — 157 8,474 16,638 3,945 2,251 10,032 11,108 3,916 2,868 101 — — 39 — — 75 6 2,399 62,529 Loan commitments — — — 40 274 124 21 412 3,516 9,606 5,006 980 127 — 887 — — — — 9 21,002 — 2,272 7,874 1,081 127 — 926 — — 75 6 2,408 83,531 — 432,508 |
Macroeconomic overlay | |
Financial assets | |
Schedule of breakdown by stages of the post-model adjustments or overlays recognized within the allowance for loan losses | Macroeconomic overlay Stage 1 Stage 2 Stage 3 Total Macroeconomic overlay (397) (202) (14) (613) Of which: Commercial, financial and industrial loans (374) (176) (8) (558) Public sector loans (1) — — (1) Mortgage loans 4 6 20 30 Installment loans to individuals - (26) (32) (26) (84) Revolving consumer credit card loans (21) (27) (19) (67) Non-revolving consumer loans (5) (5) (7) (17) |
Impairment overlay | |
Financial assets | |
Schedule of breakdown by stages of the post-model adjustments or overlays recognized within the allowance for loan losses | Impairment overlay Stage 1 Stage 2 Stage 3 Total Impairment overlay — (819) (26) (845) Of which: Commercial, financial and industrial loans — (562) (10) (572) Installment to loans to individuals - — (257) (16) (273) Revolving consumer credit card loans — (257) (16) (273) |
Hedging derivatives (Tables)
Hedging derivatives (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Hedging derivatives | |
Schedule of types of hedge of derivatives qualifying for hedge accounting | 12/31/2019 12/31/2020 Assets Liabilities Assets Liabilities Fair value hedges 925 5,306 11 16,604 Cash flow hedges 8,331 2,217 8,295 2,474 9,256 7,523 8,306 19,078 |
Schedule of reconciliation of valuation adjustments - Cash flow hedges | 2018 2019 2020 Balance at January 1 356 (290) (276) Valuation adjustments (882) 29 (376) Amounts recycled to consolidated income statement (40) (9) (43) Of which: Income from cash flow hedging financial derivatives and discontinued cash flow hedge accounting (42) (11) (43) Cash flow hedges ineffectiveness (Note 39) 2 2 — Income taxes 276 (6) 126 Balance at December 31 (290) (276) (569) |
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 264 698 739 1 1,702 Cash flows to be paid (670) (884) (959) (2) (2,515) |
Fair value hedges | |
Hedging derivatives | |
Schedule of hedging derivative positions | 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 UDI UDIBONDS - Interest rate and inflation risk As of December 31, 2020, the hedging financial derivative positions are as follows: Nominal (Million in Nominal Transaction Transaction (Million Pesos) Currency) Currency Hedged Item and Risk Hedged IRS 2,333 2,333 Peso Loans - Interest rate risk IRS 1,000 1,000 Peso Promissory notes - Interest rate risk IRS 47,047 47,047 Peso M Bonds - Interest rate risk CCS 265 13 Euro Loans - Interest rate and foreign exchange risk CCS 16 1 USD Loans - Interest rate and foreign exchange risk CCS 23,431 1,089 Euro UMS - Interest rate and foreign exchange risk CCS 7,824 398 USD UMS - Interest rate and foreign exchange risk CCS 1,492 58 Pound sterling UMS - Interest rate and foreign exchange risk CCS 1,895 405 UDI UDIBONDS - Interest rate and inflation risk |
Cash flow hedges | |
Hedging derivatives | |
Schedule of hedging derivative positions | 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 As of December 31, 2020, 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 872 69 USD Loans - Foreign exchange risk CCS 655 39 Euro Loans - Foreign exchange risk CCS 10,800 543 USD Senior Unsecured Notes - Foreign exchange risk CCS 2,284 116 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 22,644 6,662 BRL Brazilian Government Notes - Foreign exchange risk Forward Fx-USD 32,122 1,137 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, 2020 | |
Non-current assets held for sale | |
Schedule of changes in foreclosed assets | Foreclosed Assets Cost: Balances at January 1, 2019 1,277 Additions 146 Disposals (118) Impairment losses (370) Balances at December 31, 2019 935 Additions 172 Disposals (437) Impairment losses (119) Balances at December 31, 2020 551 |
Tangible assets (Tables)
Tangible assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tangible assets | |
Schedule of changes in Tangible assets in the consolidated balance sheet | Tangible Assets Cost: Balances at January 1, 2019 16,828 Additions 3,208 Disposals (207) Balances at December 31, 2019 19,829 Additions 3,429 Disposals (171) Balances at December 31, 2020 23,087 Accumulated depreciation: Balances at January 1, 2019 (8,114) Additions (1,378) Disposals 205 Balances at December 31, 2019 (9,287) Additions (1,766) Disposals 172 Balances at December 31, 2020 (10,881) Balances at December 31, 2019 10,542 Balances at December 31, 2020 12,206 |
Detail by asset class of Tangible assets for own use in the consolidated balance sheet | Accumulated Cost Depreciation Carrying Amount 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 Other fixtures 702 — 702 Balances at December 31, 2019 19,829 (9,287) 10,542 Buildings 13,125 (6,631) 6,494 IT equipment and fixtures 6,059 (2,594) 3,465 Furniture and vehicles 3,217 (1,656) 1,561 Other fixtures 686 — 686 Balances at December 31, 2020 23,087 (10,881) 12,206 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 of right-of-use assets (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 Remeasurement of right-of-use assets 214 — — 214 Additions in right-of-use assets 1,079 — 244 1,323 Depreciation (1,419) (2) (55) (1,476) Disposals (22) (7) — (29) Balances at December 31, 2020 5,435 — 208 5,643 |
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 Interest expense 679 New contracts 1,271 Remeasurement on leases liabilities 198 Disposals (29) Payments (1,907) Balances at December 31, 2020 6,131 |
Schedule of maturity analysis of lease payments | December 31, 2020 Maturity analysis - contractual undiscounted cash flows Less than one year 1,219 One to three years 2,403 Three to five years 1,801 More than five years 3,016 Total undiscounted lease liabilities at December 31, 2020 8,439 Lease liabilities at December 31, 2020 6,131 Current 975 Long-term 5,156 |
Schedule of additional lease information | December 31, 2020 Amounts recognized in the consolidated income statement: 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 94 Expense relating to variable lease payments not included in lease liabilities — Cash flows from lease liabilities: Total cash flows (2,109) |
Intangible assets - Goodwill (T
Intangible assets - Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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) 7.54% Of which: Cost of Equity(3) 11.23% Cost of Debt(4) 5.27% Equity Structure(5) 38% Equity / 62% Debt (1) The period of projections of cash flow are prepared using internal budgets and growth plans of Banks’ 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 (6.26%), · β = Beta (0.779), 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, 2020 | |
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, 2019 13,753 Additions 3,236 Disposals — Balances at December 31, 2019 16,989 Additions 2,248 Disposals — Balances at December 31, 2020 19,237 Accumulated amortization and impairment: Balances at January 1, 2019 (7,443) Additions (2,448) Disposals — Balances at December 31, 2019 (9,891) Additions (2,473) Disposals — Balances at December 31, 2020 (12,364) Balances at December 31, 2019 7,098 Balances at December 31, 2020 6,873 |
Schedule of Other tangible assets | Estimated Accumulated Carrying Useful Life Cost Amortization Amount 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 IT developments 3 years 19,149 (12,323) 6,826 Others 10 years 88 (41) 47 Balances at December 31, 2020 19,237 (12,364) 6,873 |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other assets | |
Schedule of Other assets | 12/31/2019 12/31/2020 Credit and debit card operating balances 2,577 2,337 Insurance commission receivables 1,278 1,672 Prepaid expenses 695 974 Other 6,623 10,776 11,173 15,759 |
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 and debit card operating balances 2,130 101 30 76 2,337 Insurance commission receivables 59 198 187 1,228 1,672 Prepaid expenses 968 — — 6 974 Other 4,577 2,303 2,397 2,434 11,711 Expected credit loss rate Gross carrying amount 7,734 2,602 2,614 3,744 16,694 Lifetime expected credit losses (339) (55) (37) (504) (935) Balances at December 31, 2020 7,395 2,547 2,577 3,240 15,759 |
Deposits from the Central Ban_2
Deposits from the Central Bank and Deposits from credit institutions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deposits from the Central Bank and credit institutions | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2019 12/31/2020 Classification: Other financial liabilities at fair value through profit or loss 141,263 79,859 Financial liabilities at amortized cost 72,969 187,503 214,232 267,362 Type: Reciprocal accounts 7,272 9,418 Time deposits 8,914 5,538 Overnight deposits 26,710 23,826 Repurchase agreements 141,263 206,188 Other accounts 29,961 22,329 Of which: Collateral received for OTC financial derivatives transactions (Note 32) 8,960 — Others 21,001 22,329 Accrued interest 112 63 214,232 267,362 Currency: Peso 195,604 239,831 USD 18,565 27,494 Other currencies 63 37 214,232 267,362 |
Customer deposits (Tables)
Customer deposits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Customer deposits | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2019 12/31/2020 Classification: Other financial liabilities at fair value through profit or loss Financial liabilities at amortized cost 630,055 742,201 759,271 872,493 Type: Repurchase agreements 129,216 138,616 Demand deposits: Current accounts 424,563 499,458 Other deposits 24,010 43,860 Of which: Collateral received for OTC financial derivatives transactions (Note 32) 7,799 23,052 Others 16,211 20,808 Time deposits: Fixed-term deposits 179,768 189,686 Accrued interest 1,714 873 759,271 872,493 Currency: Peso 677,634 785,713 USD 81,631 86,780 Other currencies 6 — 759,271 872,493 |
Marketable debt securities (Tab
Marketable debt securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial liabilities | |
Schedule of the balance of issues under the issuance program | 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) 13 03/03/2020 1.75 % Certificates of deposit (unsecured) 13 05/15/2020 1.75 % 37,651 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 23 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 (*) Marketable debt securities classified as financial liabilities at fair value through profit or loss. As of December 31, 2020, 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 12/03/2021 8.14 % Certificates of deposit (unsecured) 2,000 10/08/2021 8.14 % Certificates of deposit (unsecured) 1,500 09/27/2021 8.14 % Certificates of deposit (unsecured) 1,000 10/11/2021 8.15 % Certificates of deposit (unsecured) 1,200 09/13/2021 8.14 % Certificates of deposit (unsecured) 1,000 09/09/2021 8.16 % Certificates of deposit (unsecured) 250 01/28/2021 8.16 % Certificates of deposit (unsecured) 700 01/28/2021 8.15 % Certificates of deposit (unsecured) 500 07/15/2021 8.15 % Certificates of deposit (unsecured) 2,500 08/17/2021 8.15 % Certificates of deposit (unsecured) 1,500 08/12/2021 8.17 % Certificates of deposit (unsecured) 2,000 08/19/2021 8.17 % Certificates of deposit (unsecured) 1,000 07/09/2021 8.12 % Certificates of deposit (unsecured) 1,075 08/06/2021 8.18 % Certificates of deposit (unsecured) 1,000 07/30/2021 8.36 % Certificates of deposit (unsecured) 50 07/22/2021 8.38 % Certificates of deposit (unsecured) 600 07/08/2021 8.38 % Certificates of deposit (unsecured) 1,000 07/08/2021 8.38 % Certificates of deposit (unsecured) 500 06/15/2021 8.39 % Certificates of deposit (unsecured) 1,000 06/10/2021 8.40 % Certificates of deposit (unsecured) 600 05/20/2021 8.13 % Certificates of deposit (unsecured) 1,000 06/03/2021 8.14 % Certificates of deposit (unsecured) 460 05/13/2021 8.14 % Certificates of deposit (unsecured) 400 05/10/2021 8.12 % Certificates of deposit (unsecured) 900 05/07/2021 8.38 % Certificates of deposit (unsecured) 2,000 04/21/2021 8.12 % Certificates of deposit (unsecured) 1,000 02/24/2021 8.38 % Certificates of deposit (unsecured) 1,000 03/05/2021 8.12 % Certificates of deposit (unsecured) 2,000 02/12/2021 8.12 % Certificates of deposit (unsecured) 2,000 01/26/2021 8.44 % Certificates of deposit (unsecured) 1,500 01/12/2021 8.34 % Certificates of deposit (unsecured) 17 03/18/2021 8.12 % Certificates of deposit (unsecured) 3 03/09/2021 8.12 % Certificates of deposit (unsecured) 30 01/11/2021 8.89 % Certificates of deposit (unsecured) 60 01/11/2021 8.89 % Certificates of deposit (unsecured) 54 01/11/2021 8.90 % Certificates of deposit (unsecured) 32 01/11/2021 8.89 % 34,431 Accrued interest 113 34,544 Senior Unsecured Notes 19,827 11/09/2022 4.125 % Senior Unsecured Notes 34,759 04/17/2025 5.375 % 54,586 Accrued interest 490 55,076 Structured bank bonds 100 01/06/2021 9.00 % Structured bank bonds 78 10/27/2021 Guaranteed rate subject to foreign exchange rate Structured bank bonds 20 01/07/2021 8.00 % Structured bank bonds 60 01/13/2021 4.42 % Structured bank bonds 48 01/25/2021 6.00 % Structured bank bonds 139 01/12/2021 7.00 % Structured bank bonds 60 01/06/2021 4.98 % Structured bank bonds 100 01/07/2021 7.00 % Structured bank bonds 20 01/04/2021 4.00 % Structured bank bonds 30 01/11/2021 7.15 % Structured bank bonds 60 01/08/2021 3.29 % Structured bank bonds 42 01/06/2021 5.67 % Structured bank bonds 10 01/08/2021 7.00 % Structured bank bonds 9 01/15/2021 5.38 % Structured bank bonds (*) 14 11/01/2021 Guaranteed rate subject to EURO STOXX 50 Structured bank bonds (*) 132 07/01/2021 Guaranteed rate subject to S&P 500 Structured bank bonds (*) 139 07/29/2021 Guaranteed rate subject to S&P 500 Structured bank bonds (*) 222 03/01/2021 Guaranteed rate subject to S&P 500 Structured bank bonds (*) 2 03/17/2022 TIIE Structured bank bonds (*) 6 03/17/2022 TIIE Structured bank bonds (*) 4 03/17/2022 TIIE Structured bank bonds (*) 49 03/17/2022 TIIE Structured bank bonds (*) 30 05/24/2021 TIIE Structured bank bonds (*) 20 05/12/2021 TIIE Structured bank bonds (*) 283 04/23/2021 TIIE Structured bank bonds (*) 58 03/26/2021 9.50 % Structured bank bonds (*) 167 03/08/2021 9.50 % Structured bank bonds (*) 162 01/28/2021 9.50 % Structured bank bonds (*) 5 03/03/2021 Guaranteed rate subject to SXDP Structured bank bonds (*) 6 03/16/2021 TIIE Structured bank bonds (*) 23 03/03/2021 Guaranteed rate subject to SXDP Structured bank bonds (*) 41 02/23/2021 TIIE 2,139 Transaction costs and accrued interest (net) — 2,139 Promissory notes 73 01/04/2021 4.20 % Promissory notes 2,900 01/15/2021 4.25 % Promissory notes 5,800 01/15/2021 4.25 % Promissory notes 6,000 01/15/2021 4.25 % Promissory notes 150 03/16/2021 4.15 % Promissory notes 150 01/13/2021 4.10 % Promissory notes 1,000 09/23/2021 4.45 % Promissory notes 803 03/17/2021 4.60 % 16,876 Accrued interest 48 16,924 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 % 23,161 Accrued interest 273 23,434 (*) |
Marketable debt securities | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2019 12/31/2020 Classification: Other financial liabilities at fair value through profit or loss 3,246 1,363 Financial liabilities at amortized cost 111,211 130,754 114,457 132,117 Type: Certificates of deposit (unsecured) 37,823 34,544 Senior Unsecured Notes 18,849 55,076 Structured bank bonds 4,797 2,139 Promissory notes 23,314 16,924 Unsecured bonds 29,674 23,434 114,457 132,117 Currency: Peso 89,233 76,242 USD 25,224 55,875 114,457 132,117 |
Financial liabilities at fair value through profit or loss | Marketable debt securities | |
Financial liabilities | |
Schedule of changes in financial instruments | 2019 2020 Beginning balance 4,750 3,246 Issues 983 518 Of which: Structured bank bonds 983 518 Of which: Banco Santander México 983 518 Redemptions (2,914) (2,380) Of which: Structured bank bonds (2,914) (2,380) Of which: Banco Santander México (2,914) (2,380) Changes in fair value 427 (21) Balance at year-end 3,246 1,363 |
Financial liabilities at amortized cost | Marketable debt securities | |
Financial liabilities | |
Schedule of changes in financial instruments | 2019 2020 Beginning balance 98,312 111,211 Issues 1,668,170 1,219,638 Of which: Certificates of deposit (unsecured) 42,195 43,260 Structured bank bonds 24,728 8,989 Senior Unsecured Notes — 41,827 Promissory notes 1,591,247 1,125,562 Unsecured bonds 10,000 — Of which: Banco Santander México 1,668,170 1,219,638 Redemptions (1,654,767) (1,193,956) Of which: Certificates of deposit (unsecured) (26,883) (46,436) Structured bank bonds (23,765) (9,751) Promissory notes (1,604,004) (1,131,578) Unsecured bonds — (6,191) Mortgage backed bonds (115) — Of which: Banco Santander México (1,654,652) (1,193,956) Santander Vivienda (115) — Accrued interest 609 (114) Effect of changes in foreign exchange rates (1,113) (6,025) Balance at year-end 111,211 130,754 |
Subordinated liabilities (Table
Subordinated liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial liabilities | |
Schedule of changes in financial instruments arising from financing activities | Non-cash changes January 1, 2019 Cash flows Accrued Transaction Foreign 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 Non-cash changes January 1, 2020 Cash flows Accrued Transaction Foreign exchange December 31, 2020 Type interest costs movements Subordinated Additional Tier I Capital Notes 9,420 — — 6 522 9,948 Tier II Subordinated Capital Notes 24,847 (1,765) 1,669 8 1,475 26,234 Balances at 34,267 (1,765) 1,669 14 1,997 36,182 |
Subordinated liabilities | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2020 Outstanding Issue Amount Annual Type Currency of Issue 12/31/2019 12/31/2020 in Foreign Currency Interest Rate (%) Subordinated Additional Tier I Capital Notes USD 9,420 9,948 500,000,000 8.50 Tier II Subordinated Capital Notes USD 24,847 26,234 1,300,000,000 5.95 Balance at year-end 34,267 36,182 |
Schedule of subordinated liabilities | 2019 2020 Beginning balance (million USD) 1,894 1,816 Issues — — Redemptions (77) — Transaction costs and accrued interest (1) 1 Balance at year-end (million USD) 1,816 1,817 Exchange rate per one USD at December 31 18.8642 19.9087 Balance at year-end (million pesos) 34,267 36,182 |
Other financial liabilities (Ta
Other financial liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other financial liabilities | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2019 12/31/2020 Trade payables 1,451 2,279 Collection accounts: Tax payables 1,160 1,465 Financial transactions pending settlement 9,267 8,281 Other financial liabilities 3,886 3,290 15,764 15,315 |
Other financial liabilities - Financial transactions pending settlement | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2019 12/31/2020 Mexican government securities 8,059 7,362 BPATS 1,003 912 Equity instruments 205 7 9,267 8,281 |
Other financial liabilities - Other miscellaneous financial liabilities | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2019 12/31/2020 Retentions related to loans (*) 1,524 1,611 Other payable account 2,362 1,679 3,886 3,290 (*) |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Provisions | |
Schedule of details of provisions in the consolidated balance sheet | 12/31/2019 12/31/2020 Provisions for pensions and similar obligations 6,406 7,433 Provisions for tax and legal matters 1,558 1,898 Provisions for off-balance sheet risk 1,075 1,232 Other provisions 65 41 9,104 10,604 |
Schedule of changes in provisions | The changes in Provisions were as follows: 2018 2019 2020 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) 3,860 1,072 1,032 766 6,730 4,370 1,516 852 62 6,800 6,406 1,558 1,075 65 9,104 Adjustments on initial adoption of IFRS 9 — — (32) — (32) — — — — — — — — — — Beginning balance as of January 1 (restated) 3,860 1,072 1,000 766 6,698 4,370 1,516 852 62 6,800 6,406 1,558 1,075 65 9,104 Additions charged (credited) to net income: Interest expense and similar charges 359 — — — 359 415 — — — 415 442 — — — 442 Personnel expenses – Defined Benefit Plan 157 — — — 157 147 — — — 147 273 — — — 273 Personnel expenses – Defined Contribution Plan (Note 42) 373 — — — 373 410 — — — 410 488 — — — 488 Other 129 — — — 129 257 — — — 257 256 — — — 256 Actuarial (gains)/losses recognized in the year in other comprehensive income (260) — — — (260) 1,673 — — — 1,673 995 — — — 995 Period provisions — 576 (148) 5 433 — 353 223 5 581 — 586 157 (20) 723 Contributions from the employer 246 — — — 246 118 — — — 118 — — — — — Payments to pensioners and pre-retirees with a charge to internal provisions (234) — — — (234) (348) — — — (348) (881) — — — (881) Other payments (*) — (284) — (284) — — — — — (246) — — (246) Payments to Defined Contribution Plan (347) — — — (347) (636) (311) — — (947) (475) — — — (475) Recognition of pension obligations from acquisition of Santander Tecnología México 95 — — — 95 — — — — — — — — — — Transfers and other changes (8) 152 — (709) (565) — — — (2) (2) (71) — — (4) (75) Balances at the end of year 4,370 1,516 852 62 6,800 6,406 1,558 1,075 65 9,104 7,433 1,898 1,232 41 10,604 (*) Servicio de Administración Tributaria ) of 1 million pesos in 2018, 3 million pesos in 2019 and 1 million pesos in 2020 because the Bank was not withholding income tax in transactions with financial derivative instruments with certain counterparties. |
Schedule of Provision for pensions and similar obligations | 12/31/2019 12/31/2020 Provisions for post-employment plans Of which: Defined benefit pension plan 6,328 7,342 Provisions for defined contribution pension plan 78 91 6,406 7,433 |
Schedule of actuarial assumptions used to calculate defined benefit obligations | Defined Benefit Pension Plan 12/31/2019 12/31/2020 Annual discount rate 7.3 % 6.8 % Mortality tables EMSSA 1997 and 2009 EMSSA 2009 (Gen) Expected return on plan assets 7.3 % 6.8 % Cumulative annual INPC growth 3.5 % 3.5 % Annual salary increase rate 4.5 % 4.5 % Annual minimum salary increase rate 4.0 % 3.5 % Medical cost trend rates 5.0 % 5.0 % |
Schedule of funding status of the defined benefit obligations | Defined Benefit Pension Plan 12/31/2019 12/31/2020 Present value of the obligations: Pension plan 2,567 2,758 Post-employment benefits 5,127 6,055 Long-term benefits 702 715 8,396 9,528 Less: Fair value of plan assets (2,068) (2,186) Provisions – Provisions for pensions 6,328 7,342 Of which: Internal provisions for pensions 6,328 7,342 |
Schedule of defined benefit obligation recognised in consolidated income statement | Defined Benefit Pension Plan 2018 2019 2020 Current service cost 157 147 273 Interest cost (net) 359 415 442 Other 129 257 256 645 819 971 |
Schedule of changes in the present value of the accrued defined benefit obligations | Defined Benefit Pension Plans 2019 2020 Present value of the obligations at the beginning of year 8,396 Current service cost (Note 42) 147 273 Interest cost 585 582 Benefits paid (983) (1,071) Actuarial (gains)/losses 2,129 1,413 Other — (65) Present value of the obligations at the end of year 8,396 9,528 |
Schedule of changes in fair value of plan assets | Defined Benefit Pension Plan 2019 2020 Fair value of plan assets at the beginning of year 2,196 2,068 Actual return on plan assets 347 308 Transfer of funds to defined contribution plan (129) (190) Benefits paid (346) — Fair value of plan assets at the end of year 2,068 2,186 |
Schedule of categories of plan assets as a percentage of total plan assets | Defined Benefit Pension Plan 12/31/2019 12/31/2020 Equity instruments 34 % 36 % Cash and debt instruments 66 % 64 % |
Schedule of off-balance-sheet risks | 12/31/2019 12/31/2020 Available lines of credit cards and non-revolving consumer loans 965 906 Guarantees and loan commitments of commercial and public sector loans 110 326 1,075 1,232 |
Schedule of Provisions for off balance sheet risks by stages | As of December 31, 2020, 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 695 177 34 906 Guarantees, documentary credits and loan commitments of commercial loans of small and medium-sized enterprises 86 8 232 326 Total 781 185 266 1,232 |
Schedule of disclosure of transfers between stages of the Provisions for off balance sheet risks. | As of December 31, 2020, 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, 2020: 916 144 15 1,075 Financial assets derecognized during the period other than write-offs — — — — Write-offs — — — — Originated financial assets — — — — Foreign exchange and other movements (135) 41 251 157 As of December 31, 2020 781 185 266 1,232 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other liabilities | |
Schedule of other liabilities | 12/31/2019 12/31/2020 Sundry creditors 9,025 14,698 Cash balances undrawn 155 142 Accrued personnel obligations 4,388 3,584 Other obligations 2,288 2,248 Credit and debit card operation balances 2,435 2,446 18,291 23,118 |
Tax matters (Tables)
Tax matters (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tax matters | |
Schedule of income tax expense | 2018 2019 2020 Current income tax expense: Tax expense for current year 5,615 7,099 7,496 Deferred income tax expense (benefit): Origination and reversal of temporary difference and usage (accrual) of tax carryforward benefits (157) (190) (1,270) Total Income tax 5,458 6,909 6,226 |
Schedule of income tax reconciliation | 2018 2019 2020 Profit before tax 24,814 27,290 25,200 Income tax at 30% 7,444 8,187 7,560 Increase/(Decrease) due to permanent differences Of which: Due to effect of inflation (1,542) (890) (1,126) Due to effect of tangible assets (76) 19 (116) Due to effect of non-deductible expenses, non-taxable income and others (368) (407) (92) Income Tax 5,458 6,909 6,226 Effective tax rate 22.00 % 25.32 % 24.71 % Current tax liability — — — Income tax 5,458 6,909 6,226 Of which: Current 5,615 7,099 7,496 Deferred (157) (190) (1,270) |
Schedule of tax recognized in equity | 2018 2019 2020 Net tax credited/(charged) to consolidated total equity: Remeasurement of defined benefit obligation (64) 462 264 Measurement of Financial assets at fair value through other comprehensive income – Debt instruments 371 (980) (1,056) Measurement of financial derivatives (Cash flow hedges) 276 (6) 126 Paid interests on Subordinated Additional Tier I Capital Notes 254 255 290 Income tax from sale of the Custody business 255 — — 1,092 (269) (376) |
Schedule of components of gross deferred tax assets and liabilities | 12/31/2019 12/31/2020 Total deferred tax assets prior to offsetting 20,757 21,340 Of which: Tangible assets and deferred charges 2,050 2,146 Provisions 2,268 2,288 Impairment losses on financial assets at amortized cost 10,010 10,277 Net operating losses carryforward (*) — 4 Capital losses carryforward (*) 2,708 2,660 Labor provisions 1,435 1,416 Fees and interest collected in advance 995 1,053 Foreign exchange rate financial derivatives 1,291 1,496 Total deferred tax liabilities prior to offsetting (3,461) (3,440) Of which: Unrealized gains on financial instruments (2,816) (2,512) Prepayments (347) (777) Other (298) (151) (*) |
Schedule of capital losses carryforward | As of December 31, 2020, the detail of capital losses carryforward is as follows: Year of origination Year of expiration Amount Deferred tax asset 2017 2027 498 149 2018 2028 3,297 989 2019 2029 2,562 769 2020 2030 2,509 753 8,866 2,660 |
Schedule of deferred tax assets and liabilities on balance sheet | 12/31/2019 12/31/2020 Presented as deferred tax assets ( * ) 17,401 18,087 Presented as deferred tax liabilities (105) (187) Net 17,296 17,900 Deferred tax assets represent the deferred tax asset whose realization is dependent on future taxable profits in excess of the profits arising from the reversal of existing taxable temporary differences. Bank’s Management has concluded that the realization of such assets is probable based on the Bank’s history of generating sufficient taxable income to utilize all available tax benefits. |
Schedule of changes in deferred tax assets and liabilities | (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 (Charge)/ Credit to Consolidated (Charge)/ Credit to Other Consolidated Comprehensive Other 01/01/2020 Income Income Movements 12/31/2020 Deferred tax assets 20,757 1,430 (280) (567) 21,340 Deferred tax liabilities (3,461) (160) (96) 277 (3,440) 17,296 1,270 (376) (290) 17,900 |
Non-controlling interests (Tabl
Non-controlling interests (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Non-controlling interests | |
Schedule of subsidiary of Equity - Non-controlling interests | 12/31/2019 12/31/2020 Equity as of balance-sheet date attributable to non-controlling interests: Of which: Fideicomiso GFSSLPT, Banco Santander México, S.A. 27 23 Other 13 14 40 37 Profit for the year attributable to non-controlling interests: Of which: Fideicomiso GFSSLPT, Banco Santander México, S.A. — — |
Schedule of changes in Non-controlling interests | 2019 2020 Beginning balance 32 40 Profit for the year attributable to non-controlling interests — — Other 8 (3) Balance at year-end 40 37 |
Valuation adjustments (Tables)
Valuation adjustments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Valuation adjustments | |
Schedule of breakdown by type of financial instrument of Valuation adjustments - Available-for-sale financial assets | 12/31/2019 12/31/2020 Net Net Valuation Valuation Valuation Valuation Gains/ Fair Valuation Valuation Gains/ Fair Gains Losses (Losses) Value Gains Losses (Losses) Value Debt instruments 4,266 (158) 4,108 233,463 5,944 (2,384) 3,560 355,321 Loans and advances to customers — — — 2,875 — — — — Equity instruments 111 (4) 107 642 170 (44) 126 768 |
Schedule of changes in the cumulative valuation adjustments recorded to Available-for-sale financial assets | Debt Equity Instruments Instruments Total Balance at January 1, 2019 (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 Valuation adjustments 3,560 126 3,686 Amounts reclassified to consolidated income statement (843) — (843) Income taxes (1,056) (33) (1,089) Balance at December 31, 2020 3,925 148 4,073 |
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 | 2019 2020 Accumulated (loss)/gain on cash flow hedges (293) (556) Accumulated gain related to discontinued cash flow hedges (Note 12) 17 (13) Balance at December 31, (276) (569) |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Shareholders' equity | |
Share capital | Total Par Value Number of shares (Millions of Pesos) 12/31/2019 12/31/2020 12/31/2019 12/31/2020 Fixed capital: Series F shares 3,464,309,145 3,464,309,145 Series B shares 3,322,685,212 3,322,685,212 6,786,994,357 6,786,994,357 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 |
Schedule of shareholder structure | Prior to exchange offer After exchange offer Banco Santander (Spain) Minority shareholders |
Minimum capital requirements (T
Minimum capital requirements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum capital requirements | |
Schedule of minimum capital requirements calculated in accordance with the Mexican Banking GAAP for the Bank | 12/31/2019 12/31/2020 Computable capital: 125,083 151,458 Core capital 138,371 158,786 Supplementary capital 24,847 27,203 Deductible items (47,555) (44,479) Subordinated Additional Tier I Capital Notes (see Note 22.c) 9,420 9,948 Capital requirements: 61,127 63,746 Market risk 13,988 15,398 Credit risk 42,922 43,215 Operational risk 4,217 5,133 Excess of capital requirements 63,956 87,712 Risk-weighted assets 764,093 796,836 |
Schedule of capital ratios in accordance to the data published by the CNBV | 12/31/2019 12/31/2020 Net Capital / Required Capital 2.05 2.38 Minimum capital requirements Not applicable Not applicable Basic Fundamental Capital / Assets subject to Credit, Market and Operating Risk 11.89 % 14.35 % Minimum capital requirements 8.20 % 8.20 % Basic Capital / Assets subject to Credit, Market and Operating Risk 13.12 % 15.59 % Minimum capital requirements 9.70 % 9.70 % Net Capital / Assets subject to Credit Risk 23.31 % 28.04 % Minimum capital requirements Not applicable Not applicable Net Capital / Assets subject to Credit, Market and Operating Risk 16.37 % 19.01 % Minimum capital requirements 11.70 % 11.70 % |
Memorandum accounts (Tables)
Memorandum accounts (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Memorandum accounts | |
Schedule of contingent commitments | Contingent commitments 12/31/2019 12/31/2020 Available lines of credit cards and non-revolving consumer loans 136,405 157,033 Guarantees, documentary credits and loan commitments of commercial and public sector loans 79,950 91,993 Guarantees, documentary credits and loan commitments of commercial loans (SME) 219 112 216,574 249,138 |
Schedule of commitments by stages | As of December 31, 2020, 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 154,901 2,000 132 157,033 Guarantees, documentary credits and loan commitments of commercial and public sector loans 90,915 815 263 91,993 Guarantees, documentary credits and loan commitments of commercial loans (SME) 93 11 8 112 245,909 2,826 403 249,138 |
Schedule of of financial instruments received as collateral | Financial instruments received as collateral 12/31/2019 12/31/2020 Debt instruments received in OTC financial derivatives transactions 5,736 5,483 Debt instruments received in reverse repurchase agreement transactions 76,592 59,557 Equity instruments received in securities loan transactions 14 137 82,342 65,177 |
Derivatives - Nominal amounts_2
Derivatives - Nominal amounts and fair values of trading and hedging derivatives (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial instruments in connection with derivative transactions in organized markets | |
Financial instruments | |
Schedule of collateral provided/delivered | 12/31/2019 12/31/2020 Collateral provided: Of which: Mercado Mexicano de Derivados, S.A. de C.V. Cash 3,865 3,113 Chicago Mercantile Exchange Cash 1,286 1,009 Foreign financial institutions Cash 2 1 5,153 4,123 |
Financial instrument in connection with OTC derivative transactions | |
Financial instruments | |
Schedule of collateral provided/delivered | 12/31/2019 12/31/2020 Financial assets at amortized cost - Loans and advances to credit institutions: Of which (Note 7): Mexican financial institutions Cash 7,536 15,738 Foreign financial institutions Cash 6,764 12,216 14,300 27,954 Financial assets at fair value through profit or loss - Debt instruments: Of which (Note 8): Mexican financial institutions Bonds 3,121 4,410 Foreign financial institutions (*) Bonds 1,351 896 4,472 5,306 |
Schedule of collateral received | 12/31/2019 12/31/2020 Deposits from credit institutions and Customer deposits: Of which (Notes 19 and 20): Mexican financial institutions Cash 5,174 21,649 Foreign financial institutions Cash 11,527 1,403 Other Cash 58 — 16,759 23,052 12/31/2019 12/31/2020 Memorandum accounts: Of which (Note 31): Mexican financial institutions Bonds 5,736 5,483 5,736 5,483 |
Trading derivative liabilities | |
Financial instruments | |
Schedule of breakdown of the fair value and nominal amount of trading derivatives | 12/31/2019 12/31/2020 Trading Nominal Fair Value Nominal Fair Value Futures: Foreign Currency Futures 14,202 — 4,614 — Market Index Futures 79 — 139 — Forwards: Foreign Currency Forwards 199,493 6,551 175,827 7,991 Foreign Exchange (Spot) 36,973 73 29,930 72 Market Index Forwards 651 6 2,292 33 Options: Foreign Currency Options 57,808 1,606 54,923 2,766 Interest Rate Options 140,813 474 93,248 306 Market Index Options 1,122 201 697 582 Equity Options — — 868 65 Swaps: IRS 3,296,209 76,165 3,597,275 189,535 Equity Swaps — 12 704 184 CCS 385,855 59,393 451,191 84,577 Total Trading 4,133,205 144,481 4,411,708 286,111 |
Hedging derivative liabilities | |
Financial instruments | |
Schedule of breakdown of the fair value and nominal amount of trading derivatives | 12/31/2019 12/31/2020 Hedging Nominal Fair Value Nominal Fair Value Cash flow hedge: IRS 11,311 118 11,311 365 CCS 10,704 1,690 4,958 1,540 Foreign Currency Forwards 10,698 409 18,622 569 Fair value hedge: IRS 3,600 246 49,380 4,361 CCS 31,874 5,060 34,922 12,243 Total Hedging 68,187 7,523 119,193 19,078 Total Financial Derivatives Liability 305,189 |
Trading derivative assets | |
Financial instruments | |
Schedule of breakdown of the fair value and nominal amount of trading derivatives | 12/31/2019 12/31/2020 Trading Nominal Fair Value Nominal Fair Value Futures: Foreign Currency Futures — — 1,030 5 Market Index Futures 4,144 — 9 — Forwards: Foreign Currency Forwards 209,085 8,769 171,450 9,293 Foreign Exchange (Spot) 18,630 32 40,944 92 Equity Forwards 341 — 2,270 48 Options: Foreign Currency Options 50,940 1,052 72,892 3,879 Interest Rate Options 111,940 421 54,471 232 Market Index Options 1,828 212 271 43 Equity Options 43 — 649 72 Swaps: IRS 3,353,662 80,078 3,596,532 196,170 Equity Swaps 628 10 — — CCS 442,402 61,173 472,918 86,337 Total Trading 4,193,643 151,747 4,413,436 296,171 |
Hedging derivative assets | |
Financial instruments | |
Schedule of breakdown of the fair value and nominal amount of trading derivatives | 12/31/2019 12/31/2020 Hedging Nominal Fair Value Nominal Fair Value Cash flow hedge: CCS 11,177 3,843 10,824 4,282 Foreign Currency Forwards 59,417 4,488 36,144 4,013 Fair value hedge: IRS 53,882 719 1,000 11 CCS 3,868 206 — — Total Hedging 128,344 9,256 47,968 8,306 Total Financial Derivatives Asset 4,321,987 161,003 4,461,404 304,477 |
Interest income (Tables)
Interest income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Interest income | |
Schedule of the main interest income | 2018 2019 2020 Cash and balances with the Central Bank 2,361 2,456 1,951 Loans and advances to credit institutions 2,178 2,839 412 Loans and advances to customers 81,976 89,894 84,290 Debt instruments 10,039 9,925 14,643 Hedging financial derivatives 2,858 3,541 2,432 Other interest income 125 191 249 99,537 108,846 103,977 |
Interest income from financia_2
Interest income from financial assets at fair value through profit or loss (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 | 2018 2019 2020 Loans and advances to credit institutions 5,981 6,306 2,997 Loans and advances to customers 518 1,742 804 Debt instruments 7,550 7,336 8,207 14,049 15,384 12,008 |
Interest expenses and similar_2
Interest expenses and similar charges (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Interest expenses and similar charges | |
Schedule of the main items of interest expenses and similar charges | 2018 2019 2020 Deposits from credit institutions 7,420 9,041 12,400 Customer deposits 31,913 35,036 28,235 Marketable debt securities 4,244 5,398 5,756 Subordinated liabilities 1,610 1,597 1,767 Hedging financial derivatives 108 222 193 Other interest expenses 6,294 6,780 1,824 51,589 58,074 50,175 |
Dividend income (Tables)
Dividend income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Dividend income | |
Schedule of Dividend income | 2018 2019 2020 Equity instruments classified as: Financial assets at fair value through profit or loss 33 44 40 Of which: NAFTRAC (Exchange-traded fund or ETF) 18 36 36 Grupo Cementos de Chihuahua, S.A.B. de C.V. 11 7 3 Fomento Económico Mexicano, S.A.B. de C.V. — — 1 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 — — Financial assets at fair value through other comprehensive income 177 191 206 Of which: Controladora Prosa, S.A. de C.V. 50 54 73 Trans Unión de México, S.A. 88 93 88 Bolsa Mexicana de Valores, S.A.B. de C.V. 21 25 25 Dun & Bradstreet de México, S.A. de C.V. 17 18 20 Others 1 1 — 210 235 246 |
Fee and commission income (Tabl
Fee and commission income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fee and commission income | |
Schedule of fee and commission income | 2018 2019 2020 Collection and payment services: Service charges on deposit accounts 1,217 1,438 2,588 Credit and debit cards 7,398 8,757 7,667 Checks and others 240 243 181 8,855 10,438 10,436 Marketing of non-banking financial products: Investment funds management 1,569 1,568 1,611 Capital markets and securities activities 738 558 514 Collection and payment services 2,832 2,923 2,074 Insurance 4,575 5,038 5,300 Financial advisory services 1,212 1,207 1,179 10,926 11,294 10,678 Securities services: Administration and custody 368 347 461 368 347 461 Other: Foreign currency transactions 1,255 1,287 1,380 Other fees and commissions 892 952 801 2,147 2,239 2,181 22,296 24,318 23,756 |
Fee and commission expenses (Ta
Fee and commission expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fee and commission expenses | |
Schedule of fee and commission expense | 2018 2019 2020 Credit and debit cards 3,680 4,095 2,741 Checks and others 26 31 43 Collections and transactional services 287 312 291 Fund management 1 1 1 Capital markets and securities activities 189 238 173 Financial advisory services 13 6 5 Correspondent services 614 723 791 Other fees and commissions 1,764 2,488 2,688 6,574 7,894 6,733 |
Gains_(losses) on financial a_2
Gains/(losses) on financial assets and liabilities (net) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Gains or losses on financial assets and liabilities (net) | |
Summary of Gains/(losses) on financial assets and liabilities (net) | 2018 2019 2020 Financial instruments at fair value through profit or loss 1,687 2,709 5,662 Of which: Debt instruments 166 260 1,221 Equity instruments 35 71 (161) Derivatives 1,482 4,458 Others 4 (81) 144 Recognized profit from sale of financial assets at fair value through other comprehensive income (69) 85 779 Hedging derivatives (134) 60 (457) Of which: Fair value hedge - hedged items (Note 12) (606) 731 6,427 Fair value hedge - hedging derivative instruments (Note 12) 474 (667) (6,884) Cash flow hedge inefficiency (Note 12) (2) (4) — 1,484 5,984 |
Other operating income and ot_2
Other operating income and other operating expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other operating income and other operating expenses | |
Schedule of other operating income and other operating expenses | 2018 2019 2020 Other operating income: Other operating income 748 1,553 1,651 748 1,553 1,651 Other operating expenses: IPAB fund contribution (3,134) (3,353) (3,859) Other operating expenses (1,259) (1,792) (1,354) (4,393) (5,145) (5,213) |
Personnel expenses (Tables)
Personnel expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Personnel expenses | |
Schedule of detail of personnel expenses | 2018 2019 2020 Wages and salaries 7,274 7,740 7,838 Social security costs 1,283 1,443 1,494 Service expense related to defined contribution pension plan (Note 24) 373 410 488 Service expense related to defined benefit pension plan 157 147 194 Share-based payments 161 226 226 Bonus and benefits granted to employees 3,691 4,017 3,052 Other staff costs 1,415 1,445 1,584 14,354 15,428 14,876 |
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, 2020 | |
Other general administrative expenses | |
Schedule of Other general administrative expenses | 2018 2019 2020 Maintenance, conservation and repair 646 738 825 Information technology and systems 4,820 3,851 5,344 Stationery and supplies 227 150 325 Advertising and communications 890 965 809 Rents 1,120 653 683 Administrative services 503 1,737 2,202 Taxes other than income tax 1,820 2,037 2,270 Surveillance and cash courier services 979 1,248 1,263 Insurance premiums 75 95 114 Travel costs 364 325 71 Other administrative expenses 2,851 2,031 1,353 14,295 13,830 15,259 |
Schedule of audit and tax services | 2018 2019 2020 Audit fees and audit-related fees (*) 88 103 122 Tax fees 1 — — 89 103 122 (*) |
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, 2020 | |
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) | 2018 2019 2020 Gains: On disposal of tangible assets 7 16 6 7 16 6 |
Other disclosures (Tables)
Other disclosures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 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 breakdown by maturity of the balances of certain items in the consolidated balance sheets as of December 31, 2020, is as follows: 12/31/2020 Less More On than 1 1 to 3 3 to 12 1 to 3 3 to 5 than 5 Demand Month Months Months Years Years Years Total Assets: Cash and balances with the Central Bank 24,791 22,284 — — — — 23,978 71,053 Financial assets at fair value through profit or loss Debt instruments 15,109 20,263 106,579 42,477 15,254 6,590 206,272 Equity instruments 1,911 — — — — — — 1,911 Trading derivatives 274 4,542 11,267 20,524 62,867 60,444 136,253 296,171 Other financial assets at fair value through profit or loss Loans and advances to credit institutions - Reverse repurchase agreements — 59,512 — — — — — 59,512 Loans and advances to customers - Reverse repurchase agreements — 10,844 — — — — — 10,844 Financial assets at fair value through other comprehensive income Loans and advances to customers — Debt instruments 81,142 3,833 24,881 105,799 42,950 96,716 355,321 Equity instruments — — — — — — 768 768 Financial assets at amortized cost Loans and advances to credit institutions 64,371 — — — — — 64,371 Loans and advances to customers 11,475 40,220 73,035 135,294 191,615 82,995 152,798 687,432 Debt instruments — — — — 1,699 7,785 1,969 11,453 Hedging derivatives 300 1 — 160 5,391 2,454 — 8,306 38,751 298,025 287,438 409,848 211,882 419,072 1,773,414 Liabilities: Financial liabilities at fair value through profit or loss Trading derivatives 422 3,447 11,006 17,891 58,959 60,541 133,845 286,111 Short positions — 15,365 — — — — — 15,365 Other financial liabilities at fair value through profit or loss Deposits from the Central Bank — 24,937 — — — — — 24,937 Deposits from credit institutions — 54,922 — — — — — 54,922 Customer deposits — 130,292 — — — — — 130,292 Marketable debt securities — 163 524 621 55 — — 1,363 Financial liabilities at amortized cost Deposits from the Central Bank — 126,299 — — 30 — — 126,329 Deposits from credit institutions 28,061 11,670 3,099 10,751 6,163 38 1,392 61,174 Customer deposits 499,711 156,765 28,302 49,235 4,027 3,231 930 742,201 Marketable debt securities — 20,358 6,774 31,535 27,135 34,756 10,196 130,754 Subordinated liabilities — — 346 — — 35,836 36,182 Other financial liabilities 8,294 2,289 1,136 2,616 980 — — 15,315 Hedging derivatives 4 — — 131 2,029 3,925 12,989 19,078 536,492 546,507 50,841 113,126 99,378 102,491 195,188 1,644,023 Difference (assets less liabilities) (497,741) (248,482) 57,557 174,312 310,470 109,391 223,884 129,391 |
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, 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 424,563 107,681 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 — — 15,764 452,950 160,873 63,737 109,694 59,612 9,879 64,744 921,489 The detail of the undiscounted contractual maturities of the existing financial liabilities at amortized cost as of December 31, 2020, is as follows: 12/31/2020 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 the Central Bank — 126,454 — — 31 — — 126,485 Deposits from credit institutions 28,061 11,854 3,461 11,991 7,189 231 2,615 65,402 Customer deposits 499,711 158,037 29,693 52,967 5,130 3,794 1,431 750,763 Marketable debt securities — 20,808 7,914 35,816 33,092 38,471 12,302 148,403 Subordinated liabilities — 198 398 2,173 4,767 4,767 49,253 61,556 Other financial liabilities 8,294 2,289 1,136 2,616 980 — — 15,315 536,066 193,186 42,602 105,563 51,158 47,263 65,601 1,041,439 |
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 12/31/2019 12/31/2020 Assets Liabilities Assets Liabilities Cash and balances with the Central Bank 4,254 — 3,657 — Debt instruments (Note 8) 112,201 — 167,862 — Loans and advances to credit institutions (Note 7) 17,765 — 29,799 — Loans and advances to customers 68,653 — 67,689 — Other assets 2,701 — 498 — Marketable debt securities (Note 21) — 25,224 — 55,875 Subordinated liabilities — 34,300 — 36,204 Derivatives — 50,335 — 69,933 Deposits from Central Bank — — — 14,934 Deposits from credit institutions (Note 19) — 18,628 — 12,597 Customer deposits (Note 20) — 81,637 — 86,780 Other financial liabilities — 1,306 — 646 Other liabilities — 1,942 — 6,627 |
Schedule of Financial assets measured at other than fair value | As of December 31, 2019: Total fair Total Assets Level 1 Level 2 Level 3 values carrying amount Financial assets at amortized cost: Loans and advances to credit institutions (Note 7) — 21,616 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 11,257 As of December 31, 2020: Total fair Total Assets Level 1 Level 2 Level 3 values carrying amount Financial assets at amortized cost: Loans and advances to credit institutions (Note 7) — 35,652 64,354 64,371 Loans and advances to customers (Note 11) — 646 687,432 Debt instruments (unlisted) (Note 8) — — 11,454 11,453 |
Schedule of Financial liabilities measured at other than fair value | 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 72,654 72,969 Customer deposits (Note 20) — — 630,055 Marketable debt securities (Note 21) — — 111,211 Subordinated liabilities (Note 22) 36,555 — — 36,555 34,267 Other financial liabilities (Note 23) 15,760 — — 15,760 15,764 As of December 31, 2020: Total fair Total Liabilities Level 1 Level 2 Level 3 values carrying amount Financial liabilities at amortized cost: Deposits from the Central Bank - Repurchase agreements (Note 19) — 126,293 30 126,323 126,329 Deposits from credit institutions (Note 19) — — 61,033 61,174 Customer deposits (Note 20) — 85,332 733,877 Customer deposits - Repurchase agreements (Note 20) — 8,323 — 8,323 8,324 Marketable debt securities (Note 21) — — 130,754 Subordinated liabilities (Note 22) 39,406 — — 39,406 36,182 Other financial liabilities (Note 23) — 7,522 7,961 15,483 15,486 |
Operating segments (Tables)
Operating segments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Operating segments | |
Schedule of consolidated income statement and other significant data | 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 (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 (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 547,006 262,448 1,408,724 Total liabilities 486,372 231,236 1,285,437 The 2019 consolidated income statement and other significant data are as follows: Corporate Retail and Investment 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 (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 628,380 529,901 309,267 1,467,548 Total liabilities 618,477 509,204 205,069 1,332,750 The 2020 consolidated income statement and other significant data are as follows: Global Retail Corporate Corporate 2020 Banking Banking Activities Total Net interest income 61,444 5,605 (1,239) 65,810 Dividend income — 39 207 246 Income from companies accounted for using the equity method — — 178 178 Net fee and commission income 15,551 1,668 (196) 17,023 Gains/(losses) on financial assets and liabilities (net) 1,421 3,888 675 5,984 Exchange differences (net) — — 19 19 Other operating income/(expenses) (2,695) (714) (153) (3,562) Total income 75,721 10,486 (509) 85,698 Administrative expenses (25,649) (3,830) (656) (30,135) Depreciation and amortization (5,339) (376) (28) (5,743) Impairment losses on financial assets not at fair value through profit or loss (net) (20,772) (1,027) — (21,799) Gains/(losses) on modification of financial assets (net) (1,743) — — (1,743) Impairment losses on other assets (net) (119) — — (119) Provisions (net) (143) (10) (821) (974) 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) — — 9 9 Operating profit before tax 21,956 5,243 (1,999) 25,200 Income tax (6,226) Profit for the year 18,974 Profit attributable to the Parent 18,974 Profit attributable to non-controlling interest — Total assets 760,895 422,447 Total liabilities |
Related-party transactions (Tab
Related-party transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related-party transactions | |
Schedule of related party transactions | 12/31/2019 12/31/2020 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) 60,737 — 109,651 — Banco Santander (Chile) — 138 — 154 Other — — — — Other financial assets at fair value through profit or loss - Loans and advances to credit institutions - Of which - Banco Santander, S.A. (Spain) — — — — Loans and advances to customers - Of which - Casa de Bolsa Santander, S.A. de C.V. — 1,915 — 1,458 Financial assets at amortized cost - Loans and advances to credit institutions - Of which - Banco Santander, S.A. (Spain) 11,334 — 26,415 — Loans and advances to customers - Of which - Santander Capital Structuring, S.A. de C.V. — 2,204 — 2,337 Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — 1,687 — 882 Key management personnel — 2,992 — 5,507 Other intangible assets - Of which - Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informáticos Generales, S.L.) — 809 — 701 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, S.L. — 53 — — Zurich Santander Seguros México, S.A. — 1,278 — 1,285 Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — — — 310 SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversión — 163 — 171 Other — 65 — 94 12/31/2019 12/31/2020 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) 51,998 — 111,873 — Banco Santander International — — — — Other — — — — 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. — 5,010 — 4,065 Other — 18 — 53 Financial liabilities at amortized cost - Deposits from credit institutions - Of which - Banco Santander, S.A. (Spain) 10,598 — 1,447 — Banco S3 México, S.A., Institución de Banca Múltiple — — — 394 Santander Bank, National Association — — — 63 Banco Santander (Brazil) — 213 — 107 Other — 84 — 16 Subordinated liabilities - Of which - Banco Santander, S.A. (Spain) 26,987 — — — Customer deposits - Of which- Operadora de Carteras Gamma, S.A.P.I. de C.V. — 73 — 99 Grupo Financiero Santander México, S.A. de C.V. — 18 — 55 Santander Global Facilities, S.A. de C.V. — 411 — 1,475 Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — 35 — 26 Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — 445 — 323 Santander Capital Structuring, S.A. de C.V. — 217 — 632 Other(*) — 1,057 — 6,187 Marketable debt securities - Of which - Banco Santander, S.A. (Spain) 930 — 978 — Other — 29 — 73 Other financial liabilities - Of which - Banco Santander, S.A. (Spain) 656 — 717 — Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander México — 90 — 39 Santander Global Facilities, S.A. de C.V. — 493 — 542 Other — 61 — 46 Other liabilities - Of which - Banco S3 México, S.A., Institución de Banca Múltiple — 58 — 1 Santander Back-offices Globales Mayorista, S.A. — 16 — 13 Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — 972 — 1,185 Other — 11 — 82 (*) 2018 2019 2020 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 — 1 — Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — 107 — 112 — 84 Casa de Bolsa Santander, S.A. de C.V. — 127 — 91 — 41 Santander Capital Structuring, S.A. de C.V. — 120 — 164 — 176 Other — 1 — 1 — 2 Interest expenses and similar charges - Of which - Banco Santander, S.A. (Spain) 1,765 — 1,536 — 1,310 — Casa de Bolsa Santander, S.A. de C.V. — 1,824 — 669 — 304 Banco S3 México, S.A., Institución de Banca Múltiple — 44 — 37 — 41 Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — 7 — — — — Santander Global Facilities, S.A. de C.V. — 32 — 38 — 52 Other — 45 — 39 — 30 Fee and commission income - Of which - Banco Santander, S.A. (Spain) 6 — 12 — 8 — Santander Investment Securities Inc. — 6 — — — — Casa de Bolsa Santander, S.A. de C.V. — 292 — 115 — 55 Zurich Santander Seguros México, S.A. — 4,645 — 4,986 — 4,031 SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversión — 1,564 — 1,567 — 1,608 Other — — — 39 — 25 Fee and commission expense- Of which - Banco Santander, S.A. (Spain) 2 — 2 — 2 — Santander Global Facilities, S.A. de C.V. — — — 161 — 135 Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — 60 — 105 — 110 Casa de Bolsa Santander, S.A. de C.V. — — — 31 — 34 SAM Asset Management , S.A. de C.V., Sociedad Operadora de Fondos de Inversión — 16 — 14 — 17 Other — 8 — — — — Gains/(losses) on financial assets and liabilities (net) - Of which - Banco Santander, S.A. (Spain) 2,145 — (19,135) — (24,086) — Banco Santander (Chile) — — — 134 — (26) Abbey National Treasury Services plc. — 56 — — — — Other — 19 — 12 — (20) Other operating income Of which - Santander Global Facilities, S.A. de C.V. — 44 — 37 — 20 Santander Digital Assets, S.L. — — — 62 — 22 Casa de Bolsa Santander, S.A. de C.V. — 113 — 53 — 55 Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — 62 — 69 — 79 Other — 29 — 44 — 37 Administrative expenses - Of which - Banco Santander, S.A. (Spain) 335 — 398 — 464 — Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — 1,804 — 2,147 — 2,875 Santander Global Facilities, S.A. de C.V. — 517 — 368 — 446 Gesban México Servicios Administrativos Globales, S.A. de C.V. — 54 — 59 — 55 Santander Back-offices Globales Mayorista, S.A. — 47 — 49 — 71 Universia México, S.A. de C.V. — — — 22 — — Casa de Bolsa Santander, S.A. de C.V. — 88 — — — — Geoban, S.A. — 75 — 60 — — Aquanima México, S. de R.L. de C.V. — 53 — 71 — 74 Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — 7 — — — — Other — 34 — 30 — 143 |
Risk management (Table)
Risk management (Table) | 12 Months Ended |
Dec. 31, 2020 | |
Risk management | |
Schedule of main aggregates relating to credit risk | Loans to customers Non-performing loans Percentage of non-performing loans by type of customer 2018 2019 2020 2018 2019 2020 2018 2019 2020 By loan type: Public Sector 59,547 70,450 73,016 — — — — — — Commercial, financial and industrial 371,976 379,758 346,075 6,538 5,815 6,530 Mortgage 145,749 156,209 177,665 8,345 8,399 9,847 Installment loans to individuals 111,787 118,099 116,227 3,546 3,738 5,532 Revolving consumer credit card loans 56,227 59,477 53,809 1,716 1,717 2,543 Non revolving consumer loans 55,560 58,622 62,418 1,830 2,021 2,989 689,059 724,516 712,983 18,429 17,952 21,909 |
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, 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 NIM sensitivity at one year to a parallel increase of hundred basis points in the yield curve, remained stable throughout 2019 under 1,000 million pesos, mainly due to the short-term re-pricing of the loan portfolio. At the end of December 2019, the risk consumption measured in terms of hundred basis points MVE sensitivity 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 The interest rate risk in the balance sheet management portfolios, measured in terms of NIM sensitivity at one year to a parallel increase of hundred basis points in the yield curve, remained stable throughout 2020 under 350 million pesos, mainly due to the short-term re-pricing of the loan portfolio. At the end of December 2020, the risk consumption measured in terms of hundred basis points MVE sensitivity stood under 3,000 million pesos. The table below shows in millions of pesos the distribution of interest rate risk by maturity as of December 31, 2020. 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 208,892 97,682 224 10 — — — — 110,976 Loans 842,579 391,465 51,416 29,398 40,954 110,704 59,480 158,690 473 Trade Finance — — — — — — — — — Intragroup 2,324 — — — — — — — 2,324 Securities 612,958 92,700 10,420 18,633 12,072 120,979 50,809 93,965 213,379 Permanent 17,838 — — — — — — — 17,838 Other Assets 2,432,847 — — — — — — — 2,432,847 Total Balance Sheet Assets 4,117,438 581,847 62,060 48,041 53,026 231,683 110,289 252,655 2,777,837 Money Market (415,269) (136,167) (25) — — (35) — — (279,042) Deposits (712,440) (538,576) (28,189) (7,546) (38,605) (40,318) — (59,206) — Trade Finance — — — — — — — — — Intragroup — — — — — — — — — Long-Term Funding (234,391) (71,773) (13,809) (8,311) (5,645) (65,572) (39,636) (8,094) (21,552) Equity (158,338) — — — — — — — (158,338) Other Liabilities (2,421,345) — — — — — — — (2,421,345) Total Balance Sheet Liabilities (3,941,783) (746,516) (42,023) (15,857) (44,250) (105,925) (39,636) (67,300) (2,880,277) Total Balance Sheet Gap 175,655 (164,669) 20,037 32,184 8,776 125,758 70,653 185,355 (102,440) Total Off-Balance Sheet Gap (27,858) 96,078 (518) (7,124) (1,257) (16,773) (20,744) (77,053) (466) Total Structural Gap (68,591) 19,519 25,060 7,519 108,985 49,909 108,302 (102,906) Accumulated Gap (68,591) (49,072) (24,012) (16,493) 92,492 142,401 250,703 147,797 |
Schedule of distribution of liquidity risk by maturity | 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 The table below shows in millions of pesos the distribution of the liquidity risk by maturity as of December 31, 2020. 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 210,487 99,500 — 10 — — — — 110,976 Loans 906,434 53,486 86,614 70,534 103,026 252,900 113,424 225,978 473 Trade Finance — — — — — — — — — Intragroup 2,324 — — — — — — — 2,324 Securities 619,308 81,245 5,776 18,753 16,306 124,401 59,352 96,046 217,429 Permanent 17,838 — — — — — — — 17,838 Other Assets 2,432,847 — — — — — — — 2,432,847 Total Balance Sheet Assets 4,189,238 234,231 92,390 89,297 119,332 377,301 172,776 322,024 2,781,887 Money Market (416,864) (136,167) (342) (397) (877) (78) — — (279,004) Deposits (765,648) (188,768) (36,499) (22,885) (26,267) (78,592) (62,686) (349,951) — Trade Finance — — — — — — — — — Intragroup — — — — — — — — — Long-Term Funding (237,778) (7,804) (13,606) (23,355) (32,978) (88,412) (41,763) (8,307) (21,553) Equity (158,338) — — — — — — — (158,338) Other Liabilities (2,421,345) — — — — — — — (2,421,345) Total Balance Sheet Liabilities (3,999,973) (332,739) (50,447) (46,637) (60,122) (167,082) (104,449) (358,258) (2,880,240) Total Balance Sheet Gap 189,265 (98,508) 41,943 42,660 59,210 210,219 68,327 (36,234) (98,353) Total Off-Balance Sheet Gap (3,137) (18,378) (431) (337) 233 3,417 (1,112) (494) 13,964 Total Structural Gap (116,886) 41,512 42,323 59,443 213,636 67,215 (36,728) (84,389) Accumulated Gap (116,886) (75,374) (33,051) 26,392 240,028 307,243 270,515 186,126 |
Associated entities and conso_2
Associated entities and consolidated subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Associated entities and consolidated subsidiaries | |
Schedule of associated entities | Place of Percentage of incorporation and direct Principal activity operation shareholding Santander Merchant Platform Solutions México, S.A. de C.V. Merchant Business Mexico City |
Summary of financial information of associated entity | 2020 Current assets 502 Non-current assets 491 Current liabilities (290) Non-current liabilities (25) Net assets 678 2020 Revenue 1,834 Expenses (1,464) Operating profit before tax 370 Income tax (7) Profit for the year 363 Other comprehensive income — Total comprehensive income 363 |
Reconciliation of carrying amount of associated entities | 2020 Reconciliation to carrying amount: Net assets on investment date 315 Profit for the period 363 Closing net assets 678 Bank’s share in associated entity (percentage) 49 % Bank’s share in associated entity 332 Goodwill 669 Carrying amount as of December 31, 2020 1,001 |
Schedule of composition of the Bank | The subsidiaries of Banco Santander México, all of which have been included in the consolidated financial statements as of December 31, 2020, 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, Entidad Regulada Credit card loans 99.99 % 100 % Santander Inclusión Financiera, S.A. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad Regulada 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. Technology services 99.99 % 100 % Fideicomiso Irrevocable F/00361 Settlement trust 99.99 % 100 % Openbank Santander México, S.A. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad Regulada Financial services 99.99 % 100 % |
Introduction, basis of presen_3
Introduction, basis of presentation of the consolidated financial statements and other information - Intro and effects of inflation (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Statement | |
Cumulative inflation rate period | 3 years |
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) | 91.64% |
Introduction, basis of presen_4
Introduction, basis of presentation of the consolidated financial statements and other information - Hedge accounting and goodwill (Details) - MXN ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2020 | |
Financial instruments | ||
Assets subject to IBOR Reform | $ 1,383,058 | |
Liabilities subject to IBOR Reform | $ 1,452,559 | |
Goodwill impairment | $ 0 | |
Minimum | ||
Financial instruments | ||
Percentage of hedge effectiveness | 80.00% | |
Maximum | ||
Financial instruments | ||
Percentage of hedge effectiveness | 125.00% |
Accounting policies - Foreign c
Accounting policies - Foreign currency transactions (Details) - $ / $ | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting policies | ||
Peso/USD (Exchange rate at end of period) | 19.9087 | 18.8642 |
Accounting policies - Basis of
Accounting policies - Basis of consolidation - Investments in associates and joint ventures (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting policies | |
Modification period of loans and advances to customers | 4 months |
Additional modification period of loans and advances to customers | 2 months |
Accounting policies - Measureme
Accounting policies - Measurement of FA and FL and recognition of FV changes - FV of financial assets and liabilities (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial instruments | ||
Financial assets | $ 1,773,414 | $ 1,407,320 |
Financial liabilities | 1,644,023 | 1,299,114 |
Fair value | ||
Financial instruments | ||
Financial assets | 939,105 | 594,290 |
Financial liabilities | 532,068 | 434,848 |
Fair value | Level 1 | ||
Financial instruments | ||
Financial assets | 436,128 | 312,839 |
Financial liabilities | 15,338 | 324 |
Fair value | Level 2 and 3 | ||
Financial instruments | ||
Financial assets | 502,977 | 281,451 |
Financial liabilities | 516,730 | 434,524 |
Financial liabilities at fair value through profit or loss | Fair value | ||
Financial instruments | ||
Financial liabilities | 301,476 | 153,600 |
Financial liabilities at fair value through profit or loss | Fair value | Level 1 | ||
Financial instruments | ||
Financial liabilities | 15,338 | 324 |
Financial liabilities at fair value through profit or loss | Fair value | Level 2 and 3 | ||
Financial instruments | ||
Financial liabilities | 286,138 | 153,276 |
Other financial liabilities at fair value through profit or loss | Fair value | ||
Financial instruments | ||
Financial liabilities | 211,514 | 273,725 |
Other financial liabilities at fair value through profit or loss | Fair value | Level 2 and 3 | ||
Financial instruments | ||
Financial liabilities | 211,514 | 273,725 |
Hedging derivatives category | Fair value | ||
Financial instruments | ||
Financial liabilities | 19,078 | 7,523 |
Hedging derivatives category | Fair value | Level 2 and 3 | ||
Financial instruments | ||
Financial liabilities | 19,078 | 7,523 |
Financial assets at fair value through profit or loss category | Fair value | ||
Financial instruments | ||
Financial assets | 504,354 | 268,127 |
Financial assets at fair value through profit or loss category | Fair value | Level 1 | ||
Financial instruments | ||
Financial assets | 178,165 | 111,259 |
Financial assets at fair value through profit or loss category | Fair value | Level 2 and 3 | ||
Financial instruments | ||
Financial assets | 326,189 | 156,868 |
Other financial assets at fair value through profit or loss | Fair value | ||
Financial instruments | ||
Financial assets | 70,356 | 79,927 |
Other financial assets at fair value through profit or loss | Fair value | Level 2 and 3 | ||
Financial instruments | ||
Financial assets | 70,356 | 79,927 |
Financial assets at fair value through other comprehensive income category | Fair value | ||
Financial instruments | ||
Financial assets | 356,089 | 236,980 |
Financial assets at fair value through other comprehensive income category | Fair value | Level 1 | ||
Financial instruments | ||
Financial assets | 257,963 | 201,580 |
Financial assets at fair value through other comprehensive income category | Fair value | Level 2 and 3 | ||
Financial instruments | ||
Financial assets | 98,126 | 35,400 |
Hedging derivatives category | Fair value | ||
Financial instruments | ||
Financial assets | 8,306 | 9,256 |
Hedging derivatives category | Fair value | Level 2 and 3 | ||
Financial instruments | ||
Financial assets | $ 8,306 | $ 9,256 |
Accounting policies - Measure_2
Accounting policies - Measurement of FA and FL and recognition of FV changes - Assumptions and Valuation (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020MXN ($)item | Dec. 31, 2019MXN ($) | |
Accounting policies | ||
Option market volatility term used for valuation | 1 year | |
Payment term | 91 days | |
Interest rate swap curve term used for valuation | 28 days | |
Level 3 maturity period threshold | 20 years | 20 years |
Number of independent areas implementing process for valuation and management of financial instruments | item | 2 | |
Amount of CVA | $ 328 | $ 265 |
Amount of DVA | $ 1,365 | $ 1,321 |
Accounting policies - Measure_3
Accounting policies - Measurement of FA and FL and recognition of FV changes - Levels 2 and 3 FV Assets (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financial instruments | ||||
Financial assets | $ 1,773,414 | $ 1,407,320 | ||
Fair value | ||||
Financial instruments | ||||
Financial assets | 939,105 | 594,290 | ||
Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 502,355 | 277,638 | ||
Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | 622 | 3,813 | $ 1,565 | $ 251 |
Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 502,977 | 281,451 | ||
Trading derivative assets | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | 622 | 938 | 794 | $ 251 |
Debt instruments. | ||||
Financial instruments | ||||
Financial assets | 573,046 | 355,333 | ||
Equity instruments. | ||||
Financial instruments | ||||
Financial assets | 2,679 | 6,409 | ||
Loans and advances - Credit institutions | ||||
Financial instruments | ||||
Financial assets | 123,883 | 91,033 | ||
Loans and advances - Customers | ||||
Financial instruments | ||||
Financial assets | 698,276 | 728,335 | ||
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 | 504,354 | 268,127 | ||
Financial assets at fair value through profit or loss category | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 325,567 | 155,930 | ||
Financial assets at fair value through profit or loss category | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | 622 | 938 | ||
Financial assets at fair value through profit or loss category | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 326,189 | 156,868 | ||
Financial assets at fair value through profit or loss category | Debt and equity instruments | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 30,019 | 5,593 | ||
Financial assets at fair value through profit or loss category | Debt and equity instruments | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 30,019 | 5,593 | ||
Financial assets at fair value through profit or loss category | Interest rate options | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 232 | 421 | ||
Financial assets at fair value through profit or loss category | Interest rate options | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 232 | 421 | ||
Financial assets at fair value through profit or loss category | Market index options | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 114 | 212 | ||
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 | 114 | 272 | ||
Financial assets at fair value through profit or loss category | Market index options, European options | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 1 | 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 | 1 | 2 | ||
Financial assets at fair value through profit or loss category | Market index options, Quanto options | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 112 | 147 | ||
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 | 112 | 207 | ||
Financial assets at fair value through profit or loss category | Market index options, Auto callable | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 1 | |||
Financial assets at fair value through profit or loss category | Market index options, Auto callable | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 1 | |||
Financial assets at fair value through profit or loss category | Market index options, Asian (Quanto) | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 63 | |||
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 | |||
Financial assets at fair value through profit or loss category | Exchange rate options | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 3,879 | 993 | ||
Financial assets at fair value through profit or loss category | Exchange rate options | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 3,879 | 993 | ||
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 | 3,879 | 992 | ||
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 | 3,879 | 992 | ||
Financial assets at fair value through profit or loss category | Debt instruments. | ||||
Financial instruments | ||||
Financial assets | 206,272 | 110,613 | ||
Financial assets at fair value through profit or loss category | Equity instruments. | ||||
Financial instruments | ||||
Financial assets | 1,911 | 5,767 | ||
Financial assets at fair value through profit or loss category | Swaps | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 281,885 | 139,901 | ||
Financial assets at fair value through profit or loss category | Swaps | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | 622 | 878 | ||
Financial assets at fair value through profit or loss category | Swaps | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 282,507 | 140,779 | ||
Financial assets at fair value through profit or loss category | Index and securities futures | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 48 | 10 | ||
Financial assets at fair value through profit or loss category | Index and securities futures | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 48 | 10 | ||
Financial assets at fair value through profit or loss category | Exchange rate futures | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 9,390 | 8,800 | ||
Financial assets at fair value through profit or loss category | Exchange rate futures | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 9,390 | 8,800 | ||
Other financial assets at fair value through profit or loss | Fair value | ||||
Financial instruments | ||||
Financial assets | 70,356 | 79,927 | ||
Other financial assets at fair value through profit or loss | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 70,356 | 79,927 | ||
Other financial assets at fair value through profit or loss | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 70,356 | 79,927 | ||
Other financial assets at fair value through profit or loss | Loans and advances - Credit institutions | ||||
Financial instruments | ||||
Financial assets | 59,512 | 54,138 | ||
Other financial assets at fair value through profit or loss | Loans and advances - Credit institutions | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 59,512 | 54,138 | ||
Other financial assets at fair value through profit or loss | Loans and advances - Credit institutions | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 59,512 | 54,138 | ||
Other financial assets at fair value through profit or loss | Loans and advances - Customers | ||||
Financial instruments | ||||
Financial assets | 10,844 | 25,789 | ||
Other financial assets at fair value through profit or loss | Loans and advances - Customers | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 10,844 | 25,789 | ||
Other financial assets at fair value through profit or loss | Loans and advances - Customers | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 10,844 | 25,789 | ||
Financial assets at fair value through other comprehensive income category | Fair value | ||||
Financial instruments | ||||
Financial assets | 356,089 | 236,980 | ||
Financial assets at fair value through other comprehensive income category | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 98,126 | 32,525 | ||
Financial assets at fair value through other comprehensive income category | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | 2,875 | |||
Financial assets at fair value through other comprehensive income category | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 98,126 | 35,400 | ||
Financial assets at fair value through other comprehensive income category | Debt instruments. | ||||
Financial instruments | ||||
Financial assets | 355,321 | 233,463 | $ 154,483 | |
Financial assets at fair value through other comprehensive income category | Debt instruments. | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 98,072 | 32,469 | ||
Financial assets at fair value through other comprehensive income category | Debt instruments. | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 98,072 | 32,469 | ||
Financial assets at fair value through other comprehensive income category | Equity instruments. | ||||
Financial instruments | ||||
Financial assets | 768 | 642 | ||
Financial assets at fair value through other comprehensive income category | Equity instruments. | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 54 | 56 | ||
Financial assets at fair value through other comprehensive income category | Equity instruments. | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 54 | 56 | ||
Financial assets at fair value through other comprehensive income category | Loans and advances - Customers | ||||
Financial instruments | ||||
Financial assets | 2,875 | |||
Financial assets at fair value through other comprehensive income category | Loans and advances - Customers | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | 2,875 | |||
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 | |||
Hedging derivatives category | Fair value | ||||
Financial instruments | ||||
Financial assets | 8,306 | 9,256 | ||
Hedging derivatives category | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 8,306 | 9,256 | ||
Hedging derivatives category | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 8,306 | 9,256 | ||
Hedging derivatives category | Swaps | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 4,294 | 4,768 | ||
Hedging derivatives category | Swaps | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 4,294 | 4,768 | ||
Hedging derivatives category | Exchange rate forwards | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 4,012 | 4,488 | ||
Hedging derivatives category | Exchange rate forwards | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | $ 4,012 | $ 4,488 |
Accounting policies - Measure_4
Accounting policies - Measurement of FA and FL and recognition of FV changes - Levels 2 and 3 FV Liabilities (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financial instruments | |||
Financial liabilities | $ 1,644,023 | $ 1,299,114 | |
Fair value | |||
Financial instruments | |||
Financial liabilities | 532,068 | 434,848 | |
Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 516,240 | 433,733 | |
Fair value | Level 3 | |||
Financial instruments | |||
Financial liabilities | 490 | 791 | |
Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 516,730 | 434,524 | |
Trading derivative liabilities | Fair value | Level 3 | |||
Financial instruments | |||
Financial liabilities | 490 | 791 | $ 155 |
Customer deposits | |||
Financial instruments | |||
Financial liabilities | 872,493 | 759,271 | |
Marketable debt securities | |||
Financial instruments | |||
Financial liabilities | 132,117 | 114,457 | |
Financial liabilities at fair value through profit or loss | Fair value | |||
Financial instruments | |||
Financial liabilities | 301,476 | 153,600 | |
Financial liabilities at fair value through profit or loss | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 285,648 | 152,485 | |
Financial liabilities at fair value through profit or loss | Fair value | Level 3 | |||
Financial instruments | |||
Financial liabilities | 490 | 791 | |
Financial liabilities at fair value through profit or loss | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 286,138 | 153,276 | |
Financial liabilities at fair value through profit or loss | Interest rate options | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 306 | 467 | |
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 | 306 | 475 | |
Financial liabilities at fair value through profit or loss | Market index options | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 648 | 81 | |
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 | 648 | 141 | |
Financial liabilities at fair value through profit or loss | Market index options, European options | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 555 | 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 | 555 | 1 | |
Financial liabilities at fair value through profit or loss | Market index options, Auto callable | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 4 | ||
Financial liabilities at fair value through profit or loss | Market index options, Auto callable | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 4 | ||
Financial liabilities at fair value through profit or loss | Market index options, Quanto options | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 89 | 80 | |
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 | 89 | 140 | |
Financial liabilities at fair value through profit or loss | Exchange rate options | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 2,766 | 1,548 | |
Financial liabilities at fair value through profit or loss | Exchange rate options | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 2,766 | 1,548 | |
Financial liabilities at fair value through profit or loss | Exchange rate options, European barrier | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 5 | 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 | 5 | 4 | |
Financial liabilities at fair value through profit or loss | Exchange rate options, European options | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 2,761 | 1,344 | |
Financial liabilities at fair value through profit or loss | Exchange rate options, European options | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 2,761 | 1,344 | |
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 | ||
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 | ||
Financial liabilities at fair value through profit or loss | Swaps | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 273,805 | 134,627 | |
Financial liabilities at fair value through profit or loss | Swaps | Fair value | Level 3 | |||
Financial instruments | |||
Financial liabilities | 490 | 723 | |
Financial liabilities at fair value through profit or loss | Swaps | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 274,295 | 135,350 | |
Financial liabilities at fair value through profit or loss | Index and securities futures | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 33 | 18 | |
Financial liabilities at fair value through profit or loss | Index and securities futures | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 33 | 18 | |
Financial liabilities at fair value through profit or loss | Exchange rate futures | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 8,063 | 6,625 | |
Financial liabilities at fair value through profit or loss | Exchange rate futures | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 8,063 | 6,625 | |
Financial liabilities at fair value through profit or loss | Short positions | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 27 | 9,119 | |
Financial liabilities at fair value through profit or loss | Short positions | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 27 | 9,119 | |
Financial liabilities at fair value through profit or loss | Marketable debt securities | |||
Financial instruments | |||
Financial liabilities | 1,363 | 3,246 | $ 4,750 |
Other financial liabilities at fair value through profit or loss | Fair value | |||
Financial instruments | |||
Financial liabilities | 211,514 | 273,725 | |
Other financial liabilities at fair value through profit or loss | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 211,514 | 273,725 | |
Other financial liabilities at fair value through profit or loss | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 211,514 | 273,725 | |
Other financial liabilities at fair value through profit or loss | Deposits - Central banks | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 24,936 | 111,574 | |
Other financial liabilities at fair value through profit or loss | Deposits - Central banks | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 24,936 | 111,574 | |
Other financial liabilities at fair value through profit or loss | Deposits - Credit institutions | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 54,922 | 29,689 | |
Other financial liabilities at fair value through profit or loss | Deposits - Credit institutions | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 54,922 | 29,689 | |
Other financial liabilities at fair value through profit or loss | Customer deposits - Repurchase agreements | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 130,293 | 129,216 | |
Other financial liabilities at fair value through profit or loss | Customer deposits - Repurchase agreements | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 130,293 | 129,216 | |
Other financial liabilities at fair value through profit or loss | Marketable debt securities | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 1,363 | 3,246 | |
Other financial liabilities at fair value through profit or loss | Marketable debt securities | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 1,363 | 3,246 | |
Hedging derivatives category | Fair value | |||
Financial instruments | |||
Financial liabilities | 19,078 | 7,523 | |
Hedging derivatives category | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 19,078 | 7,523 | |
Hedging derivatives category | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 19,078 | 7,523 | |
Hedging derivatives category | Swaps | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 18,509 | 7,114 | |
Hedging derivatives category | Swaps | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | 18,509 | 7,114 | |
Hedging derivatives category | Exchange rate forwards | Fair value | Level 2 | |||
Financial instruments | |||
Financial liabilities | 569 | 409 | |
Hedging derivatives category | Exchange rate forwards | Fair value | Level 2 and 3 | |||
Financial instruments | |||
Financial liabilities | $ 569 | $ 409 |
Accounting policies - Measure_5
Accounting policies - Measurement of FA and FL and recognition of FV changes - Financial instruments categorized in Level 3 (Details) € in Millions, $ in Millions, $ in Millions, in Millions | 12 Months Ended | |||||
Dec. 31, 2020USD ($)item | Dec. 31, 2019MXV ( )item | Dec. 31, 2020MXN ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019MXN ($) | |
Financial instruments | ||||||
Level 3 maturity period threshold | 20 years | 20 years | ||||
CCS USD/Peso | Level 3 | ||||||
Financial instruments | ||||||
Number of financial instruments | 6 | 5 | ||||
Notional amount | $ | $ 39 | $ 40 | ||||
CCS USD/Peso | Level 3 | Minimum | ||||||
Financial instruments | ||||||
Maturity period | 20 years | |||||
CCS 91 - day TIIE | Level 3 | ||||||
Financial instruments | ||||||
Number of financial instruments | 2 | |||||
Notional amount | | 250 | |||||
IRS | Level 3 | ||||||
Financial instruments | ||||||
Number of financial instruments | 6 | 4 | ||||
Notional amount | $ | $ 772 | $ 432 | ||||
Maturity period | 20 years | |||||
IRS | Level 3 | Maximum | ||||||
Financial instruments | ||||||
Maturity period | 20 years | |||||
IRS 91-day TIIE | Level 3 | ||||||
Financial instruments | ||||||
Number of financial instruments | 4 | 4 | ||||
Notional amount | $ 419 | 419 | ||||
IRS 91-Day TIIE options | Level 3 | ||||||
Financial instruments | ||||||
Number of financial instruments | 1 | 2 | ||||
Notional amount | $ | 2,345 | 2,395 | ||||
EQ Options | Level 3 | ||||||
Financial instruments | ||||||
Number of financial instruments | 158 | |||||
Notional amount | € | € 7 | |||||
IRS, Fully hedged | Level 3 | ||||||
Financial instruments | ||||||
Number of financial instruments | 3 | 3 | ||||
Notional amount | $ | $ 7,500 | 7,500 | ||||
Loan, Held to collect and sell | Level 3 | ||||||
Financial instruments | ||||||
Number of financial instruments | 1 | |||||
Notional amount | $ | $ 2,865 |
Accounting policies - Measure_6
Accounting policies - Measurement of FA and FL and recognition of FV changes - Movement between opening and closing balances of Level 3 (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in financial instruments, Assets | |||
Financial assets at beginning of period | $ 1,407,320 | ||
Financial assets at end of period | 1,773,414 | $ 1,407,320 | |
Changes in financial instruments, Liabilities | |||
Financial liabilities at beginning of period | (1,299,114) | ||
Financial liabilities at end of period | (1,644,023) | (1,299,114) | |
Fair value | |||
Changes in financial instruments, Assets | |||
Financial assets at beginning of period | 594,290 | ||
Financial assets at end of period | 939,105 | 594,290 | |
Changes in financial instruments, Liabilities | |||
Financial liabilities at beginning of period | (434,848) | ||
Financial liabilities at end of period | (532,068) | (434,848) | |
Fair value | Level 3 | |||
Changes in financial instruments, Assets | |||
Financial assets at beginning of period | 3,813 | 1,565 | $ 251 |
Gains/(losses) on financial assets and liabilities (net) | (265) | 13 | 543 |
Purchases | 6 | 902 | |
Sales/Transfer out | (771) | ||
New issuances | 2,875 | 771 | |
Settlements | (2,932) | (771) | |
Financial assets at end of period | 622 | 3,813 | 1,565 |
Changes in financial instruments, Liabilities | |||
Financial liabilities at beginning of period | (791) | ||
Financial liabilities at end of period | (490) | (791) | |
Trading derivative liabilities | Fair value | Level 3 | |||
Changes in financial instruments, Liabilities | |||
Financial liabilities at beginning of period | (791) | (155) | |
Gains/(losses) on financial assets and liabilities (net) | (8) | ||
Purchases | (369) | (791) | |
Transfer out | 617 | 155 | |
Settlements | 61 | ||
Financial liabilities at end of period | (490) | (791) | (155) |
Trading derivative assets | Fair value | Level 3 | |||
Changes in financial instruments, Assets | |||
Financial assets at beginning of period | 938 | 794 | 251 |
Gains/(losses) on financial assets and liabilities (net) | (265) | 13 | 543 |
Purchases | 6 | 902 | |
Sales/Transfer out | (771) | ||
Settlements | (57) | ||
Financial assets at end of period | 622 | 938 | 794 |
Loans and advances - Customers | |||
Changes in financial instruments, Assets | |||
Financial assets at beginning of period | 728,335 | ||
Financial assets at end of period | 698,276 | 728,335 | |
Loans and advances - Customers | Fair value | Level 3 | |||
Changes in financial instruments, Assets | |||
Financial assets at beginning of period | 2,875 | 771 | |
New issuances | 2,875 | 771 | |
Settlements | $ (2,875) | (771) | |
Financial assets at end of period | $ 2,875 | $ 771 |
Accounting policies - Measure_7
Accounting policies - Measurement of FA and FL and recognition of FV changes - Unobservable inputs used in measuring FV (Details) $ in Millions | Dec. 31, 2020MXN ($) | Dec. 31, 2019MXN ($) |
Financial instruments | ||
Financial assets | $ 1,773,414 | $ 1,407,320 |
Financial liabilities | (1,644,023) | $ (1,299,114) |
Cross currency swaps (CCS) | Level 3 | ||
Financial instruments | ||
Financial assets | 115 | |
Swaps Lock In | Level 3 | ||
Financial instruments | ||
Financial assets | 203 | |
IRS | Level 3 | ||
Financial instruments | ||
Financial liabilities | $ (186) | |
Black model (closed formula solution) | Curve, measurement input | Caps and floors - 91 day TIIES | IRS 91-day TIIE | Level 3 | ||
Financial instruments | ||
Significant unobservable input, liabilities | (0.0022) | |
Black model (closed formula solution) | Curve, measurement input | Caps and floors - 91 day TIIES | IRS 28-day TIIES | Level 3 | ||
Financial instruments | ||
Significant unobservable input, liabilities | (0.0001) | |
Forward estimation (non-closed formula solution) | Curve, measurement input | IRS | IRS 91-day TIIE | Level 3 | ||
Financial instruments | ||
Significant unobservable input, liabilities | (0.0022) | |
Forward estimation (non-closed formula solution) | Curve, measurement input | IRS | IRS 28-day TIIES | Level 3 | ||
Financial instruments | ||
Significant unobservable input, liabilities | (0.0001) | |
Forward estimation (non-closed formula solution) | Bid offer spread, measurement input | Cross currency swaps (CCS) | IRS, TIIE | Level 3 | ||
Financial instruments | ||
Significant unobservable input, assets | 0.0005 | |
Forward estimation (non-closed formula solution) | Bid offer spread, measurement input | Cross currency swaps (CCS) | CCS USD/Peso | Level 3 | ||
Financial instruments | ||
Significant unobservable input, assets | 0.0005 | |
Forward estimation (non-closed formula solution) | Bid offer spread, measurement input | IRS | IRS, TIIE | Level 3 | ||
Financial instruments | ||
Significant unobservable input, liabilities | 0.0005 | |
Forward estimation (non-closed formula solution) | Bid offer spread, measurement input | IRS | CCS USD/Peso | Level 3 | ||
Financial instruments | ||
Significant unobservable input, liabilities | 0.0005 | |
Forward estimation (non-closed formula solution) | Bid offer spread, measurement input | IRS | IRS, UDI/Peso | Level 3 | Minimum | ||
Financial instruments | ||
Significant unobservable input, liabilities | 0.0005 | |
Forward estimation (non-closed formula solution) | Bid offer spread, measurement input | IRS | IRS, UDI/Peso | Level 3 | Maximum | ||
Financial instruments | ||
Significant unobservable input, liabilities | 0.0020 | |
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 |
Accounting policies - Measure_8
Accounting policies - Measurement of FA and FL and recognition of FV changes - Potential impact of changing inputs (Details) - Level 3 $ in Thousands | 12 Months Ended |
Dec. 31, 2020MXN ($) | |
IRS | |
Financial instruments | |
Potential impact on consolidated income statement - Most favorable input | $ 2,000 |
Potential impact on consolidated income statement - Least favorable input | (1,000) |
Cross currency swaps (CCS) | |
Financial instruments | |
Potential impact on consolidated income statement - Most favorable input | 5,000 |
Potential impact on consolidated income statement - Least favorable input | $ (4,000) |
Accounting policies - Measure_9
Accounting policies - Measurement of FA and FL and recognition of FV changes - Levels 3 Change in Assumptions (Details) - Level 3 | 12 Months Ended |
Dec. 31, 2020item | |
Cross currency swaps (CCS) | IRS | Least Favorable Input, Potential Impact | |
Financial instruments | |
Increase (decrease) of input | 0.0005 |
Historical period | 1 year |
Denominator used in estimating volatility | 2 |
Percentile of movement price distribution | 0.95% |
Cross currency swaps (CCS) | IRS, TIIE | Most Favorable Input, Potential Impact | |
Financial instruments | |
Increase (decrease) of input | (0.0005) |
IRS | IRS 28-day TIIES | Least Favorable Input, Potential Impact | |
Financial instruments | |
Increase (decrease) of input | (0.0005) |
Historical period | 1 year |
Denominator used in estimating volatility | 2 |
Percentile of movement price distribution | 0.95% |
IRS | CCS USD/Peso | Most Favorable Input, Potential Impact | |
Financial instruments | |
Increase (decrease) of input | 0.0005 |
Historical period | 1 year |
Accounting policies - Measur_10
Accounting policies - Measurement of FA and FL and recognition of FV changes - Sensitivity analysis (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020MXN ($) | |
Financial instruments | |
All financial instruments | $ 74 |
Instruments sensitive to interest rate | 73 |
Instruments sensitive to foreign currency exchange rates | 12 |
Instruments sensitive to volatility movements | $ 9 |
Time horizon used in measuring VaR that does not fully capture market positions | 1 day |
Confidence level (as a percent) | 99.00% |
Minimum | |
Financial instruments | |
All financial instruments | $ 55 |
Instruments sensitive to interest rate | 30 |
Instruments sensitive to foreign currency exchange rates | 11 |
Instruments sensitive to volatility movements | $ 3 |
Percentage of hedge effectiveness | 80.00% |
Maximum | |
Financial instruments | |
All financial instruments | $ 378 |
Instruments sensitive to interest rate | 187 |
Instruments sensitive to equity market prices | 29 |
Instruments sensitive to foreign currency exchange rates | 285 |
Instruments sensitive to volatility movements | $ 45 |
Percentage of hedge effectiveness | 125.00% |
Weighted average | |
Financial instruments | |
All financial instruments | $ 165 |
Instruments sensitive to interest rate | 86 |
Instruments sensitive to equity market prices | 5 |
Instruments sensitive to foreign currency exchange rates | 127 |
Instruments sensitive to volatility movements | $ 8 |
Accounting policies - Offsettin
Accounting policies - Offsetting of financial instruments - assets (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial assets offset in the consolidated balance sheets | ||
Gross amount of financial assets | $ 374,940 | $ 240,943 |
Net amount of financial assets presented in the balance sheet | 374,940 | 240,943 |
Impact of Master Netting Agreements | (266,853) | (131,534) |
Financial instrument collateral | (65,177) | (82,342) |
Cash collateral | (23,052) | (16,759) |
Net amount | 19,858 | 10,308 |
Financial instruments received as collateral | 65,177 | 82,342 |
Financial derivatives assets | ||
Financial assets offset in the consolidated balance sheets | ||
Gross amount of financial assets | 304,477 | 161,003 |
Net amount of financial assets presented in the balance sheet | 304,477 | 161,003 |
Impact of Master Netting Agreements | (256,053) | (128,590) |
Financial instrument collateral | (5,483) | (5,736) |
Cash collateral | (23,052) | (16,759) |
Net amount | 19,889 | 9,918 |
Reverse repurchase agreements | ||
Financial assets offset in the consolidated balance sheets | ||
Gross amount of financial assets | 70,356 | 79,927 |
Net amount of financial assets presented in the balance sheet | 70,356 | 79,927 |
Impact of Master Netting Agreements | (10,800) | (2,944) |
Financial instrument collateral | (59,557) | (76,592) |
Net amount | (1) | 391 |
Equity instruments. | ||
Financial assets offset in the consolidated balance sheets | ||
Gross amount of financial assets | 107 | 13 |
Net amount of financial assets presented in the balance sheet | 107 | 13 |
Financial instrument collateral | (137) | (14) |
Net amount | (30) | (1) |
Financial instruments in connection with securities loans transactions | Equity instruments. | ||
Financial assets offset in the consolidated balance sheets | ||
Financial instruments received as collateral | $ 137 | $ 14 |
Accounting policies - Offsett_2
Accounting policies - Offsetting of financial instruments - liabilities (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial liabilities offset in the consolidated balance sheets | ||
Gross amount of financial liabilities | $ 665,256 | $ 508,420 |
Net amount of financial liabilities presented in the balance sheet | 665,256 | 508,420 |
Impact of Master Netting Agreements | (266,853) | (131,534) |
Financial instrument collateral | (358,170) | (282,527) |
Cash collateral | (27,954) | (14,300) |
Net amount | 12,279 | 80,059 |
Threshold amount of Individually significant financial assets | 8 | |
Financial derivatives liabilities | ||
Financial liabilities offset in the consolidated balance sheets | ||
Gross amount of financial liabilities | 305,189 | 152,004 |
Net amount of financial liabilities presented in the balance sheet | 305,189 | 152,004 |
Impact of Master Netting Agreements | (256,053) | (128,590) |
Financial instrument collateral | (5,306) | (4,472) |
Cash collateral | (27,954) | (14,300) |
Net amount | 15,876 | 4,642 |
Repurchase agreements | ||
Financial liabilities offset in the consolidated balance sheets | ||
Gross amount of financial liabilities | 344,804 | 270,479 |
Net amount of financial liabilities presented in the balance sheet | 344,804 | 270,479 |
Impact of Master Netting Agreements | (10,800) | (2,944) |
Financial instrument collateral | (337,130) | (191,422) |
Net amount | (3,126) | 76,113 |
Short positions - Securities loans | ||
Financial liabilities offset in the consolidated balance sheets | ||
Gross amount of financial liabilities | 15,263 | 8,280 |
Net amount of financial liabilities presented in the balance sheet | 15,263 | 8,280 |
Financial instrument collateral | (15,734) | (8,809) |
Net amount | $ (471) | (529) |
Short positions - Short sales | ||
Financial liabilities offset in the consolidated balance sheets | ||
Gross amount of financial liabilities | 77,657 | |
Net amount of financial liabilities presented in the balance sheet | 77,657 | |
Financial instrument collateral | (77,824) | |
Net amount | $ (167) |
Accounting policies - Impairmen
Accounting policies - Impairment of financial assets - Thresholds (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Commercial loans to large enterprises | Lifetime PD band, Less than or equal to 0.01178 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.06% |
Commercial loans to large enterprises | Lifetime PD band, 0.01178 - 0.01349 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.16% |
Commercial loans to large enterprises | Lifetime PD band, 0.01349 - 0.05377 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.25% |
Commercial loans to large enterprises | Lifetime PD band, Greater than 0.05377 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.35% |
Commercial loans to real estate | Lifetime PD band, Less than or equal to 0.00683 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.04% |
Commercial loans to real estate | Lifetime PD band, 0.00683 - 0.00944 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.16% |
Commercial loans to real estate | Lifetime PD band, Greater than 0.00944 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.27% |
Commercial loans (SMEs) | Lifetime PD band, Less than or equal to 0.01660 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.08% |
Commercial loans (SMEs) | Lifetime PD band, 0.01660 - 0.02135 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.13% |
Commercial loans (SMEs) | Lifetime PD band, 0.02135 - 0.03718 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.15% |
Commercial loans (SMEs) | Lifetime PD band, 0.03718 - 0.06932 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.16% |
Commercial loans (SMEs) | Lifetime PD band, 0.06932 - 0.11089 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.21% |
Commercial loans (SMEs) | Lifetime PD band, 0.11089 - 0.14153 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.24% |
Commercial loans (SMEs) | Lifetime PD band, 0.14153 - 0.16235 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.28% |
Commercial loans (SMEs) | Lifetime PD band, 0.16235 - 0.25103 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.29% |
Commercial loans (SMEs) | Lifetime PD band, Greater than 0.25103 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.31% |
Mortgage loans | Lifetime PD band, Less than or equal to 0.04077 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.11% |
Mortgage loans | Lifetime PD band, 0.04077 - 0.05573 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.14% |
Mortgage loans | Lifetime PD band, 0.05573 - 0.06676 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.18% |
Mortgage loans | Lifetime PD band, 0.06676 - 0.12477 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.20% |
Mortgage loans | Lifetime PD band, 0.12477 - 0.15225 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.22% |
Mortgage loans | Lifetime PD band, Greater than 0.15225 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.24% |
Installment loans to individuals - Revolving consumer credit cards loans | Lifetime PD band, Less than or equal to 0.00953 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.10% |
Installment loans to individuals - Revolving consumer credit cards loans | Lifetime PD band, 0.00953 - 0.01147 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.11% |
Installment loans to individuals - Revolving consumer credit cards loans | Lifetime PD band, 0.01147 - 0.02353 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.16% |
Installment loans to individuals - Revolving consumer credit cards loans | Lifetime PD band, 0.02353 - 0.02900 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.23% |
Installment loans to individuals - Revolving consumer credit cards loans | Lifetime PD band, 0.02900 - 0.04120 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.26% |
Installment loans to individuals - Revolving consumer credit cards loans | Lifetime PD band, 0.04120 - 0.05442 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.30% |
Installment loans to individuals - Revolving consumer credit cards loans | Lifetime PD band, 0.05442 - 0.06950 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.34% |
Installment loans to individuals - Revolving consumer credit cards loans | Lifetime PD band, Greater than 0.06950 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.38% |
Non-revolving consumer loans (payroll loans) | Lifetime PD band, Less than or equal to 0.10109 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.15% |
Non-revolving consumer loans (payroll loans) | Lifetime PD band, 0.10109 ? 0.13383 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.22% |
Non-revolving consumer loans (payroll loans) | Lifetime PD band, 0.13383 - 0.15909 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.24% |
Non-revolving consumer loans (payroll loans) | Lifetime PD band, 0.15909 - 0.19360 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.25% |
Non-revolving consumer loans (payroll loans) | Lifetime PD band, 0.19360 - 0.21380 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.27% |
Non-revolving consumer loans (payroll loans) | Lifetime PD band, 0.21380 - 0.24165 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.29% |
Non-revolving consumer loans (payroll loans) | Lifetime PD band, 0.24165 - 0.26122 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.31% |
Non-revolving consumer loans (payroll loans) | Lifetime PD band, Greater than 0.26122 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.32% |
Non-revolving consumer loans (personal loans) | Lifetime PD band, Less than or equal to 0.14306 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.16% |
Non-revolving consumer loans (personal loans) | Lifetime PD band, 0.14306 - 0.19274 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.20% |
Non-revolving consumer loans (personal loans) | Lifetime PD band, 0.19274 - 0.24346 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.24% |
Non-revolving consumer loans (personal loans) | Lifetime PD band, 0.24346 - 0.25868 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.28% |
Non-revolving consumer loans (personal loans) | Lifetime PD band, 0.25868 - 028734 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.31% |
Non-revolving consumer loans (personal loans) | Lifetime PD band, 0.28734 - 0.33463 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.33% |
Non-revolving consumer loans (personal loans) | Lifetime PD band, Greater than 0.33463 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.36% |
Accounting policies - Impairm_2
Accounting policies - Impairment of financial assets - Additional information (Details) | 12 Months Ended |
Dec. 31, 2020item | |
Impairment of financial assets | |
Lifetime PD threshold period | 30 days |
Backstop criteria threshold period | 30 days |
Impairment threshold period | 90 days |
Probation period | 12 months |
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 reclassified 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 reclassified from Stage 3 to Stage 2 | 90 days |
Threshold percentage for classifying sum of all transactions of customer as credit-impaired | 20.00% |
Threshold percentage of written-off balances for classifying sum of all transactions of customer as credit-impaired | 5 |
Approved budget period | 5 years |
Macroeconomic variables forecast term | 3 years |
Number of scenarios for financial asset portfolios | 3 |
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 |
Post-model adjustments - overlays | |
Impairment of financial assets | |
Approved budget period | 3 years |
Commercial, financial and industrial loans | |
Impairment of financial assets | |
Impairment threshold period | 90 days |
Mortgage loans | |
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 - Impairm_3
Accounting policies - Impairment of financial assets - Macroeconomic variable assumptions (Details) | 12 Months Ended | |
Dec. 31, 2020$ / $item | Dec. 31, 2019$ / $ | |
Financial instruments | ||
Peso/USD (Exchange rate at end of period) | 19.9087 | 18.8642 |
Base | ||
Financial instruments | ||
GDP (as a percent year over year) | 0.73% | |
CPI (as a percent year over year) | 3.60% | |
Unemployment rates (as a percent of active population) | 3.74% | |
Peso/USD (Exchange rate at end of period) | 19.68 | |
Loans Mortgage (as a percent year over year) | 9.10 | |
Loans - Consumer (as a percent year over year) | 6.10 | |
Deposits Total (as a percent year over year) | 4.34 | |
Stock markets (level) | item | 44,672.92 | |
Base | 2021 | ||
Financial instruments | ||
GDP (as a percent year over year) | 1.45% | |
CPI (as a percent year over year) | 3.50% | |
Unemployment rates (as a percent of active population) | 4.02% | |
Peso/USD (Exchange rate at end of period) | 20.32 | |
Loans Mortgage (as a percent year over year) | 8.90 | |
Loans - Consumer (as a percent year over year) | 5.85 | |
Deposits Total (as a percent year over year) | 4.93 | |
Stock markets (level) | item | 46,995.91 | |
Base | 2022 | ||
Financial instruments | ||
GDP (as a percent year over year) | 1.70% | |
CPI (as a percent year over year) | 3.50% | |
Unemployment rates (as a percent of active population) | 4.27% | |
Peso/USD (Exchange rate at end of period) | 20.62 | |
Loans Mortgage (as a percent year over year) | 8.50 | |
Loans - Consumer (as a percent year over year) | 5.83 | |
Deposits Total (as a percent year over year) | 5.17 | |
Stock markets (level) | item | 49,439.70 | |
Base | 2023 | ||
Financial instruments | ||
GDP (as a percent year over year) | 1.70% | |
CPI (as a percent year over year) | 3.50% | |
Unemployment rates (as a percent of active population) | 4.42% | |
Peso/USD (Exchange rate at end of period) | 20.94 | |
Loans Mortgage (as a percent year over year) | 8.50 | |
Loans - Consumer (as a percent year over year) | 5.79 | |
Deposits Total (as a percent year over year) | 5.06 | |
Stock markets (level) | item | 52,010.57 | |
Upside | ||
Financial instruments | ||
GDP (as a percent year over year) | 1.92% | |
CPI (as a percent year over year) | 3.38% | |
Unemployment rates (as a percent of active population) | 3.40% | |
Peso/USD (Exchange rate at end of period) | 19.09 | |
Loans Mortgage (as a percent year over year) | 10.25 | |
Loans - Consumer (as a percent year over year) | 7.32 | |
Deposits Total (as a percent year over year) | 5.37 | |
Stock markets (level) | item | 45,041.47 | |
Upside | 2021 | ||
Financial instruments | ||
GDP (as a percent year over year) | 2.35% | |
CPI (as a percent year over year) | 3.20% | |
Unemployment rates (as a percent of active population) | 3.51% | |
Peso/USD (Exchange rate at end of period) | 18.28 | |
Loans Mortgage (as a percent year over year) | 11.04 | |
Loans - Consumer (as a percent year over year) | 8.12 | |
Deposits Total (as a percent year over year) | 7.91 | |
Stock markets (level) | item | 48,238.04 | |
Upside | 2022 | ||
Financial instruments | ||
GDP (as a percent year over year) | 2.80% | |
CPI (as a percent year over year) | 2.90% | |
Unemployment rates (as a percent of active population) | 3.67% | |
Peso/USD (Exchange rate at end of period) | 18.56 | |
Loans Mortgage (as a percent year over year) | 10.90 | |
Loans - Consumer (as a percent year over year) | 8.37 | |
Deposits Total (as a percent year over year) | 7.19 | |
Stock markets (level) | item | 53,896.65 | |
Upside | 2023 | ||
Financial instruments | ||
GDP (as a percent year over year) | 3.10% | |
CPI (as a percent year over year) | 2.92% | |
Unemployment rates (as a percent of active population) | 3.66% | |
Peso/USD (Exchange rate at end of period) | 18.85 | |
Loans Mortgage (as a percent year over year) | 11.16 | |
Loans - Consumer (as a percent year over year) | 8.62 | |
Deposits Total (as a percent year over year) | 7.23 | |
Stock markets (level) | item | 60,543.31 | |
Downside | ||
Financial instruments | ||
GDP (as a percent year over year) | (7.10%) | |
CPI (as a percent year over year) | 8.40% | |
Unemployment rates (as a percent of active population) | 6.57% | |
Peso/USD (Exchange rate at end of period) | 25.57 | |
Loans Mortgage (as a percent year over year) | (4.50) | |
Loans - Consumer (as a percent year over year) | (7.40) | |
Deposits Total (as a percent year over year) | (3.43) | |
Stock markets (level) | item | 34,264.49 | |
Downside | 2021 | ||
Financial instruments | ||
GDP (as a percent year over year) | 0.00% | |
CPI (as a percent year over year) | 8.78% | |
Unemployment rates (as a percent of active population) | 7.27% | |
Peso/USD (Exchange rate at end of period) | 25.66 | |
Loans Mortgage (as a percent year over year) | (0.20) | |
Loans - Consumer (as a percent year over year) | 0.39 | |
Deposits Total (as a percent year over year) | (2.37) | |
Stock markets (level) | item | 30,717.74 | |
Downside | 2022 | ||
Financial instruments | ||
GDP (as a percent year over year) | 0.80% | |
CPI (as a percent year over year) | 7.60% | |
Unemployment rates (as a percent of active population) | 5.61% | |
Peso/USD (Exchange rate at end of period) | 24.53 | |
Loans Mortgage (as a percent year over year) | 1.40 | |
Loans - Consumer (as a percent year over year) | 2.48 | |
Deposits Total (as a percent year over year) | (0.14) | |
Stock markets (level) | item | 31,697.27 | |
Downside | 2023 | ||
Financial instruments | ||
GDP (as a percent year over year) | 1.20% | |
CPI (as a percent year over year) | 6.30% | |
Unemployment rates (as a percent of active population) | 5.06% | |
Peso/USD (Exchange rate at end of period) | 23.87 | |
Loans Mortgage (as a percent year over year) | 4.20 | |
Loans - Consumer (as a percent year over year) | 4.69 | |
Deposits Total (as a percent year over year) | 1.73 | |
Stock markets (level) | item | 32,977.75 | |
Long-run | Post-model adjustments - overlays | ||
Financial instruments | ||
GDP (as a percent year over year) | (0.89%) | |
CPI (as a percent year over year) | 3.12% | |
Unemployment rates (as a percent of active population) | 4.08% | |
Peso/USD (Exchange rate at end of period) | 23.29 | |
Loans Mortgage (as a percent year over year) | 3.60 | |
Loans - Consumer (as a percent year over year) | (8.76) | |
Deposits Total (as a percent year over year) | (1.28) | |
Stock markets (level) | 41,141.19 | |
Long-run | Post-model adjustments - overlays | 2021 | ||
Financial instruments | ||
GDP (as a percent year over year) | (1.26%) | |
CPI (as a percent year over year) | 4.13% | |
Unemployment rates (as a percent of active population) | 5.33% | |
Peso/USD (Exchange rate at end of period) | 22.45 | |
Loans Mortgage (as a percent year over year) | 4.76 | |
Loans - Consumer (as a percent year over year) | (11.37) | |
Deposits Total (as a percent year over year) | (0.17) | |
Stock markets (level) | 38,183.86 | |
Long-run | Post-model adjustments - overlays | 2022 | ||
Financial instruments | ||
GDP (as a percent year over year) | (0.06%) | |
CPI (as a percent year over year) | 2.63% | |
Unemployment rates (as a percent of active population) | 4.56% | |
Peso/USD (Exchange rate at end of period) | 22.66 | |
Loans Mortgage (as a percent year over year) | 6.69 | |
Loans - Consumer (as a percent year over year) | 3.09 | |
Deposits Total (as a percent year over year) | 2.58 | |
Stock markets (level) | 39,479.06 | |
Long-run | Post-model adjustments - overlays | 2023 | ||
Financial instruments | ||
GDP (as a percent year over year) | 2.15% | |
CPI (as a percent year over year) | 3.25% | |
Unemployment rates (as a percent of active population) | 4.36% | |
Peso/USD (Exchange rate at end of period) | 22.95 | |
Loans Mortgage (as a percent year over year) | 7.75 | |
Loans - Consumer (as a percent year over year) | 4.88 | |
Deposits Total (as a percent year over year) | 4.68 | |
Stock markets (level) | 41,531.98 |
Accounting policies - Impairm_4
Accounting policies - Impairment of financial assets - Weightings assigned to macroeconomic scenarios (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Base | ||
Disclosure of detailed information about financial instruments [line items] | ||
Weighting (as a percent) | 52.50% | 52.50% |
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% | 37.50% |
Accounting policies - Impairm_5
Accounting policies - Impairment of financial assets - Sensitivity analysis and Written-off loans (Details) | 12 Months Ended |
Dec. 31, 2020 | |
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 |
Mortgage loans | |
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 portfolio | |
Financial instruments | |
Weightings (as a percent) | (9.70%) |
Most Favorable Input, Potential Impact | Non-retail loan portfolio | |
Financial instruments | |
Weightings (as a percent) | (9.20%) |
Least Favorable Input, Potential Impact | |
Financial instruments | |
Sensitivity analysis, assumed weighting (as a percent) | 100.00% |
Least Favorable Input, Potential Impact | Retail loan portfolio | |
Financial instruments | |
Weightings (as a percent) | 13.90% |
Least Favorable Input, Potential Impact | Non-retail loan portfolio | |
Financial instruments | |
Weightings (as a percent) | 8.80% |
Accounting policies - Change in
Accounting policies - Change in accounting estimates and accounting policies - IFRS 16 - Leases (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Initial adoption of IFRS 16 | ||||
Lease liabilities | $ 6,131 | $ 5,919 | $ 6,734 | |
Right-of-use assets | $ 5,643 | $ 5,611 | $ 6,734 | |
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 - Tangible
Accounting policies - Tangible assets (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Tangible assets | |
Approved budget period | 5 years |
Buildings | Minimum | |
Tangible assets | |
Average annual rate (as a percent) | 2.00% |
Buildings | Maximum | |
Tangible assets | |
Average annual rate (as a percent) | 5.00% |
Furniture and vehicles | Minimum | |
Tangible assets | |
Average annual rate (as a percent) | 10.00% |
Furniture and vehicles | Maximum | |
Tangible assets | |
Average annual rate (as a percent) | 20.00% |
Information technology equipment and fixtures | |
Tangible assets | |
Average annual rate (as a percent) | 25.00% |
Other fixtures | Minimum | |
Tangible assets | |
Average annual rate (as a percent) | 5.00% |
Other fixtures | Maximum | |
Tangible assets | |
Average annual rate (as a percent) | 20.00% |
Significant events - Sale of Cu
Significant events - Sale of Custody business (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 | $ 1,191 | |||
Banco S3 Mexico, SA, Institucion de Banca Multiple | ||||
Related-party transactions | ||||
Sale price | $ 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 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 - Early sett
Significant events - Early settlement of Subordinated Capital Notes (Details) $ in Thousands, $ in Millions | Jan. 30, 2019USD ($) | Sep. 26, 2018USD ($) | Dec. 27, 2013 | Dec. 31, 2020MXN ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) |
Disclosure of financial liabilities [line items] | ||||||
Outstanding issue amount | $ 1,644,023 | $ 1,299,114 | ||||
Financial liabilities at amortized cost | Tier II Subordinated Capital Notes, Issued 2013 | ||||||
Disclosure of financial liabilities [line items] | ||||||
Annual interest rate (as percent) | 5.95% | 5.95% | ||||
Maturity period of debt instruments issued | 10 years | |||||
Outstanding issue amount | $ 1,222,907 | $ 1,546 | ||||
Percentage of existing holders tendered the cash offer | 94.07% | |||||
Amount of subordinated liability amortized | $ 77,093 |
Significant events - Issue of T
Significant events - Issue of Tier II Subordinated Capital Notes (Details) - Financial liabilities at amortized cost - Tier II Subordinated Capital Notes, Issued 2018 - USD ($) $ in Millions | Oct. 01, 2018 | Dec. 31, 2020 |
Financial liabilities | ||
Issues | $ 1,300 | |
Annual interest rate (as percent) | 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) - Banco Santander, S.A. (Spain) | Aug. 18, 2019shares |
Series B shares | |
Other capital disclosures | |
Shares of parent issued in exchange of entity's shares | 0.337 |
ADS | |
Other capital disclosures | |
Shares of parent issued in exchange of entity's shares | 1.685 |
Significant events - Acquisit_2
Significant events - Acquisition of Elavon Mexico Holding Company (Details) - Santander Merchant Platform Solutions Mexico, S.A. de C.V. $ in Millions | Mar. 13, 2020MXN ($) |
Disclosure of detailed information about business combination [line items] | |
Ownership interest (as a percent) | 49.00% |
Purchase price | $ 1,680 |
Santander Merchant Platform Solutions, S.L. | |
Disclosure of detailed information about business combination [line items] | |
Ownership interest (as a percent) | 51.00% |
Significant events - Senior Uns
Significant events - Senior Unsecured Notes (Details) - Senior Unsecured Note, April 17, 2025 - USD ($) $ in Millions | Dec. 31, 2020 | Apr. 14, 2020 |
Disclosure of detailed information about borrowings [line items] | ||
Notes issued | $ 1,750 | |
Interest rate (as a percent) | 5.375% | 5.375% |
Significant events - Merger of
Significant events - Merger of Santander Vivienda, S.A. de C.V. (Details) - Santander Vivienda, S.A. de C.V. $ in Millions | 1 Months Ended |
Sep. 30, 2020MXN ($) | |
Merger | |
Assets | $ 63,703 |
Liabilities | $ 54,925 |
Significant events - Merchant b
Significant events - Merchant business (Details) $ in Millions | Dec. 03, 2020MXN ($) |
Santander Merchant Platform Solutions Mexico, S.A. de C.V. | |
Disclosure of associates [line items] | |
Sale price of acquisition contracts | $ 1,600 |
Significant events - Support Pr
Significant events - Support Program (Details) $ in Millions | Dec. 31, 2020MXN ($)loan |
Financial instruments | |
Number of loans registered in the Support Program | loan | 531,636 |
Loans registered in the Support Program | $ 150,809 |
Commercial, financial and industrial loans | |
Financial instruments | |
Loans registered in the Support Program | 58,479 |
Mortgage loans | |
Financial instruments | |
Loans registered in the Support Program | 64,235 |
Loans to customers | |
Financial instruments | |
Loans registered in the Support Program | 28,095 |
Installment loans to individuals - Revolving consumer credit cards loans | |
Financial instruments | |
Loans registered in the Support Program | 8,770 |
Installment loans to individuals - Non-revolving consumer loans | |
Financial instruments | |
Loans registered in the Support Program | $ 19,325 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Distribution of the Bank's profit and Earnings per share | ||||||||||
Profit for the year | $ 18,974 | $ 20,381 | $ 19,356 | |||||||
Dividends declared | $ 5,450 | $ 4,843 | $ 4,949 | $ 4,279 | $ 1,822 | $ 4,676 | $ 4,234 | $ 10,293 | $ 9,228 | |
Dividend per share (in pesos per share) | $ 1.52 | $ 1.36 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Basic earnings per share | |||
Profit attributable to the Parent | $ 18,974 | $ 20,381 | $ 19,353 |
Weighted average number of shares outstanding | 6,776,640,349 | 6,775,455,458 | 6,776,220,369 |
Basic earnings per share (in pesos per share) | $ 2.80 | $ 3.01 | $ 2.86 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Diluted earnings per share | |||
Profit attributable to the Parent | $ 18,974 | $ 20,381 | $ 19,353 |
Weighted average number of shares outstanding | 6,776,640,349 | 6,775,455,458 | 6,776,220,369 |
Dilutive effect of rights on shares | 10,354,008 | 11,538,899 | 10,773,988 |
Adjusted number of shares | 6,786,994,357 | 6,786,994,357 | 6,786,994,357 |
Diluted earnings per share (in pesos per share) | $ 2.80 | $ 3 | $ 2.85 |
Compensation of directors, ex_2
Compensation of directors, executive officers and other key management personnel (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020MXN ($)employee | Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) | |
Minimum | |||
Compensation | |||
Number of employees working from home | employee | 7,900 | ||
Current executive directors | |||
Compensation | |||
Compensation and benefits | $ 23 | $ 21 | $ 15 |
Executive officers | |||
Compensation | |||
Compensation and benefits | 431 | 456 | 496 |
Post-employment benefits | 522 | 472 | $ 331 |
Loans receivable | $ 124 | $ 102 |
Cash and balances with the Ce_3
Cash and balances with the Central Bank (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and balances with the Central Bank | ||
Cash | $ 24,791 | $ 25,793 |
Central Bank compulsory deposits | 23,978 | 28,094 |
Deposits in the Central Bank | 22,264 | 11,292 |
Accrued interest | 20 | 28 |
Cash and balances with the Central Bank | 71,053 | $ 65,207 |
Special deposit | $ 7,700 |
Loans and advances to credit _3
Loans and advances to credit institutions - Classification (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial assets | ||
Financial assets | $ 1,773,414 | $ 1,407,320 |
Loans and advances - Credit institutions | ||
Financial assets | ||
Financial assets | 123,883 | 91,033 |
Other financial assets at fair value through profit or loss | Loans and advances - Credit institutions | ||
Financial assets | ||
Financial assets | 59,512 | 54,138 |
Financial assets at amortized cost category | Loans and advances - Credit institutions | ||
Financial assets | ||
Financial assets | $ 64,371 | $ 36,895 |
Loans and advances to credit _4
Loans and advances to credit institutions - Type (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financial assets | ||
Total financial assets | $ 1,773,414 | $ 1,407,320 |
Loans and advances - Credit institutions | ||
Financial assets | ||
Reciprocal accounts | 11,610 | 14,597 |
Time deposits | 10 | 29 |
Guarantee deposits - Collateral delivered for OTC financial derivatives transactions (Note 32) | 27,954 | 14,300 |
Reverse repurchase agreements | 59,512 | 54,138 |
Other accounts | 24,797 | 7,969 |
Total financial assets | 123,883 | 91,033 |
Loans and advances - Credit institutions | Mexican peso | ||
Financial assets | ||
Total financial assets | 94,084 | 73,268 |
Loans and advances - Credit institutions | US dollar | ||
Financial assets | ||
Total financial assets | 29,620 | 17,429 |
Loans and advances - Credit institutions | Other currencies | ||
Financial assets | ||
Total financial assets | 179 | 336 |
Loans and advances - Credit institutions | Mexico | ||
Financial assets | ||
Time deposits | $ 10 | $ 29 |
Time deposits repricing number of days | 182 days | 182 days |
Loans and advances - Credit institutions | Mexico | 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, 2020 | Dec. 31, 2019 |
Financial assets | ||
Financial instruments received as collateral | $ 65,177 | $ 82,342 |
Financial instruments in connection with derivative transactions in organized markets | ||
Financial assets | ||
Financial assets pledged as collateral | 4,123 | 5,153 |
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 | 27,954 | 14,300 |
Financial instruments in connection with repurchase agreement transactions | Loans and advances - Credit institutions | Other financial assets at fair value through profit or loss | ||
Financial assets | ||
Financial instruments received as collateral | $ 59,599 | $ 54,097 |
Debt Instruments - Classificati
Debt Instruments - Classification (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets | |||
Financial assets | $ 1,773,414 | $ 1,407,320 | |
Debt instruments. | |||
Financial assets | |||
Financial assets | 573,046 | 355,333 | |
Financial assets at fair value through profit or loss category | Debt instruments. | |||
Financial assets | |||
Financial assets | 206,272 | 110,613 | |
Financial assets at fair value through other comprehensive income category | Debt instruments. | |||
Financial assets | |||
Financial assets | 355,321 | 233,463 | $ 154,483 |
Financial assets at amortized cost category | Debt instruments. | |||
Financial assets | |||
Financial assets | $ 11,453 | $ 11,257 |
Debt Instruments - Type and cur
Debt Instruments - Type and currency (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial assets | ||
Financial assets | $ 1,773,414 | $ 1,407,320 |
Debt instruments. | ||
Financial assets | ||
Financial assets | 573,046 | 355,333 |
Debt instruments. | Mexican peso | ||
Financial assets | ||
Financial assets | 405,184 | 243,132 |
Debt instruments. | US dollar | ||
Financial assets | ||
Financial assets | 108,411 | 47,897 |
Debt instruments. | Brazilian real | ||
Financial assets | ||
Financial assets | 23,870 | 30,225 |
Debt instruments. | Other currencies | ||
Financial assets | ||
Financial assets | 35,581 | 34,079 |
Issued by financial institutions | ||
Financial assets | ||
Financial assets | 3,413 | 2,270 |
Other debt securities | ||
Financial assets | ||
Financial assets | 6,448 | 10,463 |
Mexico | Government debt securities | ||
Financial assets | ||
Financial assets | 443,909 | 273,487 |
Financial assets pledged as collateral | 744 | 4,472 |
Foreign | Government debt securities | ||
Financial assets | ||
Financial assets | 119,276 | 69,113 |
Financial assets pledged as collateral | 4,562 | |
BRAZIL | Government debt securities | ||
Financial assets | ||
Financial assets | 23,870 | 30,225 |
UNITED STATES | US Government Treasury Bills (T-BILLS) | ||
Financial assets | ||
Financial assets | 91,976 | 34,506 |
UNITED STATES | US Government Treasury Notes (T-NOTES) | ||
Financial assets | ||
Financial assets | $ 3,430 | $ 4,382 |
Debt Instruments - FV through p
Debt Instruments - FV through profit or loss (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020MXN ($) | Dec. 31, 2019MXN ($) | |
Financial assets | ||
Financial assets | $ 1,773,414 | $ 1,407,320 |
Debt instruments. | ||
Financial assets | ||
Financial assets | $ 573,046 | $ 355,333 |
Federal Mexican Government Development Bonds in UDIS (UDIBONDS) | ||
Financial assets | ||
UDI equivalent (in pesos) | 6.605590 | 6.399010 |
US Government Treasury Bills (T-BILLS) | UNITED STATES | ||
Financial assets | ||
Financial assets | $ 91,976 | $ 34,506 |
US Government Treasury Notes (T-NOTES) | UNITED STATES | ||
Financial assets | ||
Financial assets | 3,430 | 4,382 |
Financial assets at fair value through profit or loss category | Debt instruments. | ||
Financial assets | ||
Financial assets | 206,272 | 110,613 |
Financial assets at fair value through profit or loss category | Federal Treasury Securities (CETES) | ||
Financial assets | ||
Financial assets | 81,017 | 25,348 |
Financial assets at fair value through profit or loss category | United Mexican States Bonds (UMS) | ||
Financial assets | ||
Financial assets | 141 | 30 |
Financial assets at fair value through profit or loss category | Federal Mexican Government Development Bonds (BONDS) | ||
Financial assets | ||
Financial assets | 22,345 | 29,708 |
Financial assets at fair value through profit or loss category | M and M10 Mexican Government Bonds (M Bonds) | ||
Financial assets | ||
Financial assets | 51,313 | 11,601 |
Financial assets at fair value through profit or loss category | Mexican Bank Saving Protection Bonds (BPATs) | ||
Financial assets | ||
Financial assets | 22,623 | 13,750 |
Financial assets at fair value through profit or loss category | Federal Mexican Government Development Bonds in UDIS (UDIBONDS) | ||
Financial assets | ||
Financial assets | 4,469 | 4,619 |
Financial assets at fair value through profit or loss category | US Government Treasury Bills (T-BILLS) | UNITED STATES | ||
Financial assets | ||
Financial assets | 12,342 | 10,928 |
Financial assets at fair value through profit or loss category | US Government Treasury Notes (T-NOTES) | UNITED STATES | ||
Financial assets | ||
Financial assets | 3,430 | 4,382 |
Financial assets at fair value through profit or loss category | Debt securities, Other than government debt securities | ||
Financial assets | ||
Financial assets | $ 8,592 | $ 10,247 |
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, 2020 | Dec. 31, 2019 |
Financial instrument in connection with OTC derivative transactions | ||
Financial assets | ||
Financial assets pledged as collateral | $ 5,306 | $ 4,472 |
Financial instruments in connection with securities loans transactions | ||
Financial assets | ||
Financial assets pledged as collateral | 10,729 | 8,678 |
Financial instruments in connection with securities loans transactions | Central Bank, Lender | ||
Financial assets | ||
Financial assets pledged as collateral | 4,655 | 0 |
Financial instruments in connection with repurchase agreement transactions | ||
Financial assets | ||
Financial assets pledged as collateral | $ 201,477 | $ 92,764 |
Debt Instruments - FVTOCI (Deta
Debt Instruments - FVTOCI (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets | |||
Financial assets | $ 1,773,414 | $ 1,407,320 | |
Debt instruments. | |||
Financial assets | |||
Financial assets | 573,046 | 355,333 | |
Mexico | Government debt securities | |||
Financial assets | |||
Financial assets | 443,909 | 273,487 | |
Foreign | Government debt securities | |||
Financial assets | |||
Financial assets | 119,276 | 69,113 | |
BRAZIL | Government debt securities | |||
Financial assets | |||
Financial assets | 23,870 | 30,225 | |
Financial assets at fair value through other comprehensive income category | Debt instruments. | |||
Financial assets | |||
Financial assets | 355,321 | 233,463 | $ 154,483 |
Financial assets at fair value through other comprehensive income category | Debt instruments. | Gross carrying amount | |||
Financial assets | |||
Financial assets | 355,321 | ||
Financial assets at fair value through other comprehensive income category | CETES | |||
Financial assets | |||
Financial assets | 1,272 | ||
Financial assets at fair value through other comprehensive income category | Debt securities, Other than government debt securities | |||
Financial assets | |||
Financial assets | 1,269 | 2,486 | |
Financial assets at fair value through other comprehensive income category | Debt securities, Other than government debt securities | Gross carrying amount | |||
Financial assets | |||
Financial assets | 1,269 | ||
Financial assets at fair value through other comprehensive income category | Mexico | Government debt securities | Gross carrying amount | |||
Financial assets | |||
Financial assets | 241,932 | ||
Financial assets at fair value through other comprehensive income category | Mexico | United Mexican States Bonds (UMS) | |||
Financial assets | |||
Financial assets | 48,447 | 43,058 | |
Financial assets at fair value through other comprehensive income category | Mexico | M, M3 and M5 Mexican Government Bonds (M Bonds) | |||
Financial assets | |||
Financial assets | 189,137 | 117,974 | |
Financial assets at fair value through other comprehensive income category | Mexico | Mexican Bank Saving Protection Bonds (BPATs) | |||
Financial assets | |||
Financial assets | 8,616 | 11,499 | |
Financial assets at fair value through other comprehensive income category | Mexico | Federal Mexican Government Development Bonds in UDIS (UDIBONDS) | |||
Financial assets | |||
Financial assets | 3,076 | 4,643 | |
Financial assets at fair value through other comprehensive income category | Foreign | Government debt securities | Gross carrying amount | |||
Financial assets | |||
Financial assets | 103,504 | ||
Financial assets at fair value through other comprehensive income category | UNITED STATES | Government debt securities | |||
Financial assets | |||
Financial assets | 79,634 | 23,578 | |
Financial assets at fair value through other comprehensive income category | BRAZIL | Government debt securities | |||
Financial assets | |||
Financial assets | $ 23,870 | $ 30,225 |
Debt Instruments - Financial as
Debt Instruments - Financial assets at fair value through other comprehensive - Restricted assets (Details) - Financial assets at fair value through other comprehensive income category - Debt instruments. - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial instruments in connection with repurchase agreement transactions | ||
Financial assets | ||
Financial assets pledged as collateral for liabilities or contingent liabilities | $ 129,240 | $ 96,681 |
Financial instruments in connection with securities loans transactions | ||
Financial assets | ||
Financial assets pledged as collateral for liabilities or contingent liabilities | $ 4,998 |
Debt Instruments - Carrying amo
Debt Instruments - Carrying amount of financial assets at FV through OCI (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for impairment losses | |||
Financial assets | $ 1,773,414 | $ 1,407,320 | |
Debt instruments. | |||
Allowance for impairment losses | |||
Financial assets | 573,046 | 355,333 | |
Government debt securities | Mexico | |||
Allowance for impairment losses | |||
Financial assets | 443,909 | 273,487 | |
Government debt securities | Foreign | |||
Allowance for impairment losses | |||
Financial assets | 119,276 | 69,113 | |
Financial assets at fair value through other comprehensive income category | Debt instruments. | |||
Allowance for impairment losses | |||
Financial assets | 355,321 | 233,463 | $ 154,483 |
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 | 355,321 | ||
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 | 355,321 | ||
Financial assets at fair value through other comprehensive income category | Debt instruments. | Stage 1 | Gross carrying amount | |||
Allowance for impairment losses | |||
Financial assets | 355,321 | ||
Financial assets at fair value through other comprehensive income category | Government debt securities | Mexico | Gross carrying amount | |||
Allowance for impairment losses | |||
Financial assets | 241,932 | ||
Financial assets at fair value through other comprehensive income category | Government debt securities | Mexico | Subtotal of Stage 1 and 2 | Gross carrying amount | |||
Allowance for impairment losses | |||
Financial assets | 241,932 | ||
Financial assets at fair value through other comprehensive income category | Government debt securities | Mexico | Stage 1 | Gross carrying amount | |||
Allowance for impairment losses | |||
Financial assets | 241,932 | ||
Financial assets at fair value through other comprehensive income category | Government debt securities | Foreign | Gross carrying amount | |||
Allowance for impairment losses | |||
Financial assets | 103,504 | ||
Financial assets at fair value through other comprehensive income category | Government debt securities | Foreign | Subtotal of Stage 1 and 2 | Gross carrying amount | |||
Allowance for impairment losses | |||
Financial assets | 103,504 | ||
Financial assets at fair value through other comprehensive income category | Government debt securities | Foreign | Stage 1 | Gross carrying amount | |||
Allowance for impairment losses | |||
Financial assets | 103,504 | ||
Financial assets at fair value through other comprehensive income category | Debt instruments issued by the Central Bank | Gross carrying amount | |||
Allowance for impairment losses | |||
Financial assets | 8,616 | ||
Financial assets at fair value through other comprehensive income category | Debt instruments issued by the Central Bank | Subtotal of Stage 1 and 2 | Gross carrying amount | |||
Allowance for impairment losses | |||
Financial assets | 8,616 | ||
Financial assets at fair value through other comprehensive income category | Debt instruments issued by the Central Bank | Stage 1 | Gross carrying amount | |||
Allowance for impairment losses | |||
Financial assets | 8,616 | ||
Financial assets at fair value through other comprehensive income category | Debt securities, Other than government debt securities | |||
Allowance for impairment losses | |||
Financial assets | 1,269 | $ 2,486 | |
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 | 1,269 | ||
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 | 1,269 | ||
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 | $ 1,269 |
Debt Instruments - Issuer ratin
Debt Instruments - Issuer rating (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets | |||
Financial assets | $ 1,773,414 | $ 1,407,320 | |
Debt instruments. | |||
Financial assets | |||
Financial assets | $ 573,046 | $ 355,333 | |
Financial assets (as a percent) | 100.00% | 100.00% | |
Debt instruments. | AAA | |||
Financial assets | |||
Financial assets | $ 95,406 | $ 38,888 | |
Financial assets (as a percent) | 16.65% | 10.94% | |
Debt instruments. | A | |||
Financial assets | |||
Financial assets | $ 401,247 | $ 239,408 | |
Financial assets (as a percent) | 70.02% | 67.38% | |
Debt instruments. | BBB | |||
Financial assets | |||
Financial assets | $ 48,854 | $ 43,088 | |
Financial assets (as a percent) | 8.53% | 12.13% | |
Debt instruments. | BB | |||
Financial assets | |||
Financial assets | $ 3,669 | $ 3,471 | |
Financial assets (as a percent) | 0.64% | 0.98% | |
Debt instruments. | Below B | |||
Financial assets | |||
Financial assets | $ 23,870 | $ 30,225 | |
Financial assets (as a percent) | 4.17% | 8.51% | |
Debt instruments. | Below BBB | |||
Financial assets | |||
Financial assets | $ 253 | ||
Financial assets (as a percent) | 0.07% | ||
Private Debt | |||
Financial assets | |||
Financial assets | $ 9,863 | $ 12,733 | |
Private Debt | A | |||
Financial assets | |||
Financial assets | 9,596 | 12,480 | |
Private Debt | BBB | |||
Financial assets | |||
Financial assets | 267 | ||
Private Debt | Below BBB | |||
Financial assets | |||
Financial assets | 253 | ||
Sovereign Debt | |||
Financial assets | |||
Financial assets | 563,183 | 342,600 | |
Sovereign Debt | AAA | |||
Financial assets | |||
Financial assets | 95,406 | 38,888 | |
Sovereign Debt | A | |||
Financial assets | |||
Financial assets | 391,651 | 226,928 | |
Sovereign Debt | BBB | |||
Financial assets | |||
Financial assets | 48,587 | 43,088 | |
Sovereign Debt | BB | |||
Financial assets | |||
Financial assets | 3,669 | 3,471 | |
Sovereign Debt | Below B | |||
Financial assets | |||
Financial assets | 23,870 | 30,225 | |
Financial assets at fair value through other comprehensive income category | Debt instruments. | |||
Financial assets | |||
Financial assets | $ 355,321 | $ 233,463 | $ 154,483 |
Debt Instruments - Financial _2
Debt Instruments - Financial assets at amortized cost (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financial assets | ||
Financial assets | $ 1,773,414 | $ 1,407,320 |
Debt instruments. | ||
Financial assets | ||
Financial assets | 573,046 | 355,333 |
Financial assets at amortized cost category | Debt instruments. | ||
Financial assets | ||
Financial assets | 11,453 | 11,257 |
Transfers out of Level 2 into Level 1 | 0 | |
Financial assets at amortized cost category | Debt instruments. | Unquoted | ||
Financial assets | ||
Financial assets | 3,668 | 3,471 |
Financial assets at amortized cost category | Debt instruments. | Quoted | ||
Financial assets | ||
Financial assets | 7,785 | 7,786 |
Financial assets at amortized cost category | Special CETES | ||
Financial assets | ||
Financial assets | 3,668 | 3,471 |
Financial assets at amortized cost category | Bonos de Regulacion Monetaria Reportables (BREMS R) | ||
Financial assets | ||
Financial assets | $ 7,785 | $ 7,786 |
Debt Instruments - Financial _3
Debt Instruments - Financial assets at amortized cost restricted assets (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial assets at amortized cost category | Bonos de Regulacion Monetaria Reportables (BREMS R) | Financial instruments in connection with repurchase agreement transactions | ||
Financial assets | ||
Financial assets pledged as collateral for liabilities or contingent liabilities | $ 7,706 | $ 4,999 |
Debt Instruments - Carrying a_2
Debt Instruments - Carrying amount of financial assets at amortized cost (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Allowance for impairment losses | ||
Financial assets | $ 1,773,414 | $ 1,407,320 |
Debt instruments. | ||
Allowance for impairment losses | ||
Financial assets | 573,046 | 355,333 |
Government debt securities | Mexico | ||
Allowance for impairment losses | ||
Financial assets | 443,909 | 273,487 |
Financial assets at amortized cost category | Debt instruments. | ||
Allowance for impairment losses | ||
Financial assets | 11,453 | $ 11,257 |
Financial assets at amortized cost category | Government debt securities | Mexico | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | 11,453 | |
Financial assets at amortized cost category | Government debt securities | Mexico | Subtotal of Stage 1 and 2 | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | 11,453 | |
Financial assets at amortized cost category | Government debt securities | Mexico | Stage 1 | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | $ 11,453 |
Debt Instruments - Changes in f
Debt Instruments - Changes in financial assets at FVTOCI (Details) - MXN ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial assets | ||||
Valuation adjustments, FVTOCI | $ 3,565 | $ 4,108 | $ (1,226) | |
Amounts reclassified to the consolidated income statement, FVTOCI | (843) | (189) | 69 | |
Financial assets | 1,773,414 | 1,407,320 | ||
Debt instruments. | ||||
Financial assets | ||||
Valuation adjustments, FVTOCI | 3,560 | 4,108 | ||
Financial assets | 573,046 | 355,333 | ||
Financial assets at fair value through other comprehensive income category | Debt instruments. | ||||
Financial assets | ||||
Financial assets, as originally presented | 233,463 | 154,483 | $ 164,947 | |
Financial assets, Reclassification, Adjustments on initial adoption of IFRS 9 | (73,131) | |||
Financial assets, restated | 233,463 | 154,483 | $ 91,816 | |
Net additions/(disposals), FVTOCI | 119,141 | 75,061 | 63,824 | |
Valuation adjustments, FVTOCI | 3,560 | 4,108 | (1,226) | |
Amounts reclassified to the consolidated income statement, FVTOCI | (843) | (189) | 69 | |
Financial assets | 355,321 | $ 233,463 | $ 154,483 | |
Financial assets at fair value through other comprehensive income category | Debt instruments. | Gross carrying amount | ||||
Financial assets | ||||
Financial assets | $ 355,321 |
Debt Instruments - Allowance fo
Debt Instruments - Allowance for impairment losses (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for impairment losses | |||
Financial assets | $ (1,773,414) | $ (1,407,320) | |
Impairment losses on financial assets | 21,799 | 19,220 | $ 18,810 |
Debt instruments. | |||
Allowance for impairment losses | |||
Financial assets | (573,046) | (355,333) | |
Debt instruments. | Impairment losses | |||
Allowance for impairment losses | |||
Financial assets | 91 | 23 | |
Debt instruments. | Stage 1 | Impairment losses | |||
Allowance for impairment losses | |||
Financial assets | 91 | 23 | |
Government debt securities | Mexico | |||
Allowance for impairment losses | |||
Financial assets | (443,909) | (273,487) | |
Government debt securities | Foreign | |||
Allowance for impairment losses | |||
Financial assets | (119,276) | (69,113) | |
Issued by financial institutions | |||
Allowance for impairment losses | |||
Financial assets | (3,413) | (2,270) | |
Other debt securities | |||
Allowance for impairment losses | |||
Financial assets | (6,448) | (10,463) | |
Financial assets at fair value through other comprehensive income category | |||
Allowance for impairment losses | |||
Impairment losses on financial assets | 68 | 4 | |
Financial assets at fair value through other comprehensive income category | Debt instruments. | |||
Allowance for impairment losses | |||
Financial assets | (355,321) | (233,463) | (154,483) |
Financial assets at fair value through other comprehensive income category | Debt instruments. | Impairment losses | |||
Allowance for impairment losses | |||
Financial assets | 91 | 23 | |
Change in allowance for impairment losses | 68 | 3 | |
Financial assets at fair value through other comprehensive income category | Debt instruments. | Stage 1 | Impairment losses | |||
Allowance for impairment losses | |||
Financial assets | 91 | 23 | |
Financial assets at fair value through other comprehensive income category | Government debt securities | Mexico | Impairment losses | |||
Allowance for impairment losses | |||
Financial assets | 89 | 22 | |
Financial assets at fair value through other comprehensive income category | Government debt securities | Mexico | Stage 1 | Impairment losses | |||
Allowance for impairment losses | |||
Financial assets | 89 | 22 | |
Financial assets at fair value through other comprehensive income category | Other debt securities | Impairment losses | |||
Allowance for impairment losses | |||
Financial assets | 2 | 1 | |
Financial assets at fair value through other comprehensive income category | Other debt securities | Stage 1 | Impairment losses | |||
Allowance for impairment losses | |||
Financial assets | 2 | 1 | |
Financial assets at amortized cost category | |||
Allowance for impairment losses | |||
Impairment losses on financial assets | 21,731 | 19,220 | $ 18,806 |
Financial assets at amortized cost category | Debt instruments. | |||
Allowance for impairment losses | |||
Financial assets | (11,453) | (11,257) | |
Impairment losses on financial assets | $ 0 | $ 0 |
Equity instruments - Detail by
Equity instruments - Detail by classification and type (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial instruments | ||
Total financial assets | $ 1,773,414 | $ 1,407,320 |
Equity instruments. | ||
Financial instruments | ||
Total financial assets | 2,679 | 6,409 |
Mexico | Equity instruments. | ||
Financial instruments | ||
Total financial assets | 2,679 | 6,409 |
Financial assets at fair value through profit or loss category | Equity instruments. | ||
Financial instruments | ||
Total financial assets | 1,911 | 5,767 |
Financial assets at fair value through other comprehensive income category | Equity instruments. | ||
Financial instruments | ||
Total financial assets | $ 768 | $ 642 |
Equity instruments - Collateral
Equity instruments - Collateral (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial instruments | ||
Financial instruments received as collateral | $ 65,177 | $ 82,342 |
Financial instruments in connection with securities loans transactions | Equity instruments. | ||
Financial instruments | ||
Financial instruments received as collateral | 137 | 14 |
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 | 137 | 14 |
Financial assets pledged as collateral | $ 7 | $ 0 |
Equity instruments - Changes in
Equity instruments - Changes in financial assets at FVTOCI (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financial instruments | |||
Beginning balance, FVTOCI | $ 236,980 | ||
Valuation adjustments, FVTOCI | 3,565 | $ 4,108 | $ (1,226) |
Amounts reclassified to the consolidated income statement, FVTOCI | (843) | (189) | 69 |
Ending balance, FVTOCI | 356,089 | 236,980 | |
Equity instruments. | |||
Financial instruments | |||
Beginning balance, FVTOCI | 642 | 535 | 795 |
Recognition of own equity instruments held for future equity-settled share-based payments | (247) | ||
Valuation adjustments, FVTOCI | 126 | 107 | (13) |
Ending balance, FVTOCI | 768 | 642 | $ 535 |
Financial assets at fair value through other comprehensive income category | Equity instruments. | |||
Financial instruments | |||
Valuation adjustments, FVTOCI | $ 126 | $ 107 |
Trading derivatives (assets a_3
Trading derivatives (assets and liabilities) and Short positions - Trading derivatives (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial instruments | ||
Financial assets at fair value through profit or loss | $ 504,354 | $ 268,127 |
Financial liabilities at fair value through profit or loss | 301,476 | 153,600 |
Trading derivative liabilities | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss | 286,111 | 144,481 |
Trading derivative liabilities | Interest rate risk | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss | 189,841 | 76,639 |
Trading derivative liabilities | Currency risk | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss | 95,406 | 67,623 |
Trading derivative liabilities | Price risk | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss | 864 | 219 |
Trading derivative assets | ||
Financial instruments | ||
Financial assets at fair value through profit or loss | 296,171 | 151,747 |
Trading derivative assets | Interest rate risk | ||
Financial instruments | ||
Financial assets at fair value through profit or loss | 196,402 | 80,499 |
Trading derivative assets | Currency risk | ||
Financial instruments | ||
Financial assets at fair value through profit or loss | 99,606 | 71,026 |
Trading derivative assets | Price risk | ||
Financial instruments | ||
Financial assets at fair value through profit or loss | $ 163 | $ 222 |
Trading derivatives (assets a_4
Trading derivatives (assets and liabilities) and Short positions - Short positions (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial instruments | ||
Financial liabilities at fair value through profit or loss | $ 301,476 | $ 153,600 |
Short positions | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss | 15,365 | 9,119 |
Short positions - Securities loans | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss | 15,263 | 8,280 |
Short positions, Securities loans - Debt instruments | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss | 15,263 | 8,280 |
Short positions, Short sales - Debt instruments | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss | $ 102 | $ 839 |
Loans and advances to custome_3
Loans and advances to customers - Summary (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financial instruments | |||
Financial assets | $ 1,773,414 | $ 1,407,320 | |
Loans and advances - Customers | |||
Financial instruments | |||
Financial assets | 698,276 | 728,335 | |
Collateral provided | 4,123 | 5,153 | |
Gross carrying amount | Loans and advances - Customers | |||
Financial instruments | |||
Financial assets | 723,827 | 750,305 | |
Impairment losses | Loans and advances - Customers | |||
Financial instruments | |||
Financial assets | (25,551) | (21,970) | $ (21,516) |
Other financial assets at fair value through profit or loss | Loans and advances - Customers | |||
Financial instruments | |||
Financial assets | 10,844 | 25,789 | |
Financial assets at fair value through other comprehensive income category | Loans and advances - Customers | |||
Financial instruments | |||
Financial assets | 2,875 | ||
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 amortized cost category | Loans and advances - Customers | |||
Financial instruments | |||
Financial assets | 687,432 | 699,671 | |
Financial assets at amortized cost category | Gross carrying amount | Loans and advances - Customers | |||
Financial instruments | |||
Financial assets | 712,983 | $ 721,636 | |
Financial assets at amortized cost category | Impairment losses | Loans and advances - Customers | |||
Financial instruments | |||
Financial assets | $ (25,551) |
Loans and advances to custome_4
Loans and advances to customers - Breakdown of loans (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial instruments | ||
Financial instruments received as collateral | $ 65,177 | $ 82,342 |
Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 723,827 | 750,305 |
Fixed interest rate | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 307,990 | 270,930 |
Floating interest rate | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 415,837 | 479,375 |
Mexico | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 723,827 | 750,305 |
Public sector | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 73,016 | 70,450 |
Individuals | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 290,580 | 274,053 |
Communications and transportation | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 33,250 | 35,773 |
Construction | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 38,160 | 47,872 |
Manufacturing | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 53,187 | 63,652 |
Services | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 109,180 | 122,970 |
Tourism | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 26,275 | 25,244 |
Other sectors | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 100,179 | 110,291 |
Commercial, financial and industrial loans | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 339,545 | 373,943 |
Public sector loans | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 73,016 | 70,450 |
Mortgage loans | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 167,818 | 147,810 |
Reverse repurchase agreements | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 10,844 | 25,789 |
Installment loans to individuals - Revolving consumer credit cards loans | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 51,266 | 57,760 |
Installment loans to individuals - Non-revolving consumer loans | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 59,429 | 56,601 |
Loans to customers (non-performing) | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers. | 21,909 | 17,952 |
Reverse repurchase agreement transactions | Debt instruments. | Other financial assets at fair value through profit or loss | ||
Financial instruments | ||
Financial instruments received as collateral | $ 6,398 | $ 8,115 |
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, 2020 | Dec. 31, 2019 |
Financial assets | ||
Financial assets | $ 1,773,414 | $ 1,407,320 |
Loans and advances - Customers | ||
Financial assets | ||
Financial assets | 698,276 | 728,335 |
POCI financial assets | 0 | |
Loans and advances - Customers | Gross carrying amount | ||
Financial assets | ||
Financial assets | 723,827 | 750,305 |
Financial assets at fair value through other comprehensive income category | Loans and advances - Customers | ||
Financial assets | ||
Financial assets | 2,875 | |
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 | 687,432 | 699,671 |
Financial assets at amortized cost category | Loans and advances - Customers | Gross carrying amount | ||
Financial assets | ||
Financial assets | 712,983 | 721,636 |
Financial assets at amortized cost category | Loans and advances - Customers | Subtotal of Stage 1 and 2 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 691,074 | 703,684 |
Financial assets at amortized cost category | Loans and advances - Customers | Stage 1 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 620,543 | 676,508 |
Financial assets at amortized cost category | Loans and advances - Customers | Stage 2 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 70,531 | 27,176 |
Financial assets at amortized cost category | Loans and advances - Customers | Stage 3 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 21,909 | 17,952 |
Financial assets at amortized cost category | Commercial, financial and industrial loans | Gross carrying amount | ||
Financial assets | ||
Financial assets | 346,075 | 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 | 339,545 | 371,063 |
Financial assets at amortized cost category | Commercial, financial and industrial loans | Stage 1 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 291,980 | 358,665 |
Financial assets at amortized cost category | Commercial, financial and industrial loans | Stage 2 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 47,565 | 12,398 |
Financial assets at amortized cost category | Commercial, financial and industrial loans | Stage 3 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 6,530 | 5,815 |
Financial assets at amortized cost category | Public sector loans | Gross carrying amount | ||
Financial assets | ||
Financial assets | 73,016 | 70,450 |
Financial assets at amortized cost category | Public sector loans | Subtotal of Stage 1 and 2 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 73,016 | 70,450 |
Financial assets at amortized cost category | Public sector loans | Stage 1 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 73,016 | 70,450 |
Financial assets at amortized cost category | Mortgage loans | Gross carrying amount | ||
Financial assets | ||
Financial assets | 177,665 | 156,209 |
Financial assets at amortized cost category | Mortgage loans | Subtotal of Stage 1 and 2 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 167,818 | 147,810 |
Financial assets at amortized cost category | Mortgage loans | Stage 1 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 157,054 | 140,072 |
Financial assets at amortized cost category | Mortgage loans | Stage 2 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 10,764 | 7,738 |
Financial assets at amortized cost category | Mortgage loans | Stage 3 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 9,847 | 8,399 |
Financial assets at amortized cost category | Loans to customers | Gross carrying amount | ||
Financial assets | ||
Financial assets | 116,227 | 118,099 |
Financial assets at amortized cost category | Loans to customers | Subtotal of Stage 1 and 2 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 110,695 | 114,361 |
Financial assets at amortized cost category | Loans to customers | Stage 1 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 98,493 | 107,321 |
Financial assets at amortized cost category | Loans to customers | Stage 2 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 12,202 | 7,040 |
Financial assets at amortized cost category | Loans to customers | Stage 3 | Gross carrying amount | ||
Financial assets | ||
Financial assets | 5,532 | 3,738 |
Financial assets at amortized cost category | Installment loans to individuals - Revolving consumer credit cards loans | Gross carrying amount | ||
Financial assets | ||
Financial assets | 53,809 | 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 | 51,266 | 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 | 44,309 | 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 | 6,957 | 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 | 2,543 | 1,717 |
Financial assets at amortized cost category | Installment loans to individuals - Non-revolving consumer loans | Gross carrying amount | ||
Financial assets | ||
Financial assets | 62,418 | 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 | 59,429 | 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 | 54,184 | 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 | 5,245 | 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 | $ 2,989 | $ 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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financial assets | |||
Financial assets at beginning of period | $ 1,407,320 | ||
Financial assets at end of period | 1,773,414 | $ 1,407,320 | |
Loans and advances - Customers | |||
Financial assets | |||
Financial assets at beginning of period | 728,335 | ||
Financial assets at end of period | 698,276 | 728,335 | |
Loans and advances - Customers | Gross carrying amount | |||
Financial assets | |||
Financial assets at beginning of period | 750,305 | ||
Financial assets at end of period | 723,827 | 750,305 | |
Loans and advances - Customers | Impairment losses | |||
Financial assets | |||
Financial assets at beginning of period | (21,970) | (21,516) | |
Transfer from Stage 1 to Stage 2 | 574 | ||
Transfer from Stage 1 to Stage 3 | 77 | ||
Transfer from Stage 2 to Stage 3 | 130 | ||
Transfer from Stage 2 to Stage 1 | (4,717) | ||
Transfer from Stage 3 to Stage 2 | (559) | ||
Transfer from Stage 3 to Stage 1 | (4,700) | ||
Financial assets derecognized during the period other than write offs | 62 | ||
Originated financial assets | (2,537) | ||
Written-off assets | 21,590 | 21,154 | $ 19,678 |
Other movements | 13 | 70 | (46) |
Financial assets at end of period | (25,551) | (21,970) | $ (21,516) |
Loans and advances - Customers | Stage 1 | Impairment losses | |||
Financial assets | |||
Transfer from Stage 1 to Stage 2 | (121) | ||
Transfer from Stage 1 to Stage 3 | (24) | ||
Transfer from Stage 2 to Stage 1 | 412 | ||
Transfer from Stage 3 to Stage 1 | 347 | ||
Financial assets derecognized during the period other than write offs | 7 | ||
Originated financial assets | (2,537) | ||
Financial assets at end of period | (6,215) | ||
Loans and advances - Customers | Stage 2 | Impairment losses | |||
Financial assets | |||
Transfer from Stage 1 to Stage 2 | 695 | ||
Transfer from Stage 2 to Stage 3 | (118) | ||
Transfer from Stage 2 to Stage 1 | (5,129) | ||
Transfer from Stage 3 to Stage 2 | 383 | ||
Financial assets derecognized during the period other than write offs | 8 | ||
Financial assets at end of period | (8,902) | ||
Loans and advances - Customers | Stage 3 | Impairment losses | |||
Financial assets | |||
Transfer from Stage 1 to Stage 3 | 101 | ||
Transfer from Stage 2 to Stage 3 | 248 | ||
Transfer from Stage 3 to Stage 2 | (942) | ||
Transfer from Stage 3 to Stage 1 | (5,047) | ||
Financial assets derecognized during the period other than write offs | 47 | ||
Written-off assets | 21,590 | ||
Financial assets at end of period | (10,434) | ||
Loans and advances - Customers | Financial assets at amortized cost category | |||
Financial assets | |||
Financial assets at beginning of period | 699,671 | ||
Financial assets at end of period | 687,432 | 699,671 | |
Loans and advances - Customers | Financial assets at amortized cost category | Gross carrying amount | |||
Financial assets | |||
Financial assets at beginning of period | 721,636 | ||
Remaining in same Stage | (543,540) | ||
Financial assets derecognized during the period other than write offs | (281) | ||
Originated financial assets | 622,049 | ||
Written-off assets | (21,590) | ||
Other movements | (65,291) | ||
Financial assets at end of period | 712,983 | 721,636 | |
Loans and advances - Customers | Financial assets at amortized cost category | Impairment losses | |||
Financial assets | |||
Written-off assets | 21,590 | ||
Financial assets at end of period | (25,551) | ||
Loans and advances - Customers | Financial assets at amortized cost category | Subtotal of Stage 1 and 2 | Gross carrying amount | |||
Financial assets | |||
Financial assets at beginning of period | 703,684 | ||
Financial assets at end of period | 691,074 | 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 | 676,508 | ||
Transfer from Stage 1 to Stage 2 | 4,700 | ||
Transfer from Stage 1 to Stage 3 | 581 | ||
Transfer from Stage 2 to Stage 1 | (36,761) | ||
Transfer from Stage 3 to Stage 1 | (8,792) | ||
Remaining in same Stage | (577,716) | ||
Financial assets derecognized during the period other than write offs | (241) | ||
Originated financial assets | 622,049 | ||
Other movements | (59,785) | ||
Financial assets at end of period | 620,543 | 676,508 | |
Loans and advances - Customers | Financial assets at amortized cost category | Stage 1 | Impairment losses | |||
Financial assets | |||
Financial assets at end of period | (6,215) | ||
Loans and advances - Customers | Financial assets at amortized cost category | Stage 2 | Gross carrying amount | |||
Financial assets | |||
Financial assets at beginning of period | 27,176 | ||
Transfer from Stage 1 to Stage 2 | (4,700) | ||
Transfer from Stage 2 to Stage 3 | 1,237 | ||
Transfer from Stage 2 to Stage 1 | 36,761 | ||
Transfer from Stage 3 to Stage 2 | (19,702) | ||
Remaining in same Stage | 32,952 | ||
Financial assets derecognized during the period other than write offs | (18) | ||
Other movements | (3,175) | ||
Financial assets at end of period | 70,531 | 27,176 | |
Loans and advances - Customers | Financial assets at amortized cost category | Stage 2 | Impairment losses | |||
Financial assets | |||
Financial assets at end of period | (8,902) | ||
Loans and advances - Customers | Financial assets at amortized cost category | Stage 3 | Gross carrying amount | |||
Financial assets | |||
Financial assets at beginning of period | 17,952 | ||
Transfer from Stage 1 to Stage 3 | (581) | ||
Transfer from Stage 2 to Stage 3 | (1,237) | ||
Transfer from Stage 3 to Stage 2 | 19,702 | ||
Transfer from Stage 3 to Stage 1 | 8,792 | ||
Remaining in same Stage | 1,224 | ||
Financial assets derecognized during the period other than write offs | (22) | ||
Written-off assets | (21,590) | ||
Other movements | (2,331) | ||
Financial assets at end of period | 21,909 | $ 17,952 | |
Loans and advances - Customers | Financial assets at amortized cost category | Stage 3 | Impairment losses | |||
Financial assets | |||
Financial assets at end of period | $ (10,434) |
Loans and advances to custome_7
Loans and advances to customers - Allowance for impairment losses (Details) - MXN ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial assets | ||||
Impairment losses on financial assets | $ 21,799 | $ 19,220 | $ 18,810 | |
Financial assets at end of period | 1,773,414 | 1,407,320 | ||
Financial assets at amortized cost category | ||||
Financial assets | ||||
Impairment losses on financial assets | 21,731 | 19,220 | 18,806 | |
Financial assets at fair value through other comprehensive income category | ||||
Financial assets | ||||
Impairment losses on financial assets | 68 | 4 | ||
Loans and advances - Customers | ||||
Financial assets | ||||
Financial assets at end of period | 698,276 | 728,335 | ||
Loans and advances - Customers | Financial assets at amortized cost category | ||||
Financial assets | ||||
Financial assets at end of period | 687,432 | 699,671 | ||
Loans and advances - Customers | Financial assets at fair value through other comprehensive income category | ||||
Financial assets | ||||
Financial assets at end of period | 2,875 | |||
Impairment losses | Loans and advances - Customers | ||||
Financial assets | ||||
Financial assets, as originally presented | (21,970) | (21,516) | $ (16,929) | |
Financial assets, Adjustments on initial adoption of IFRS 9 | $ (3,270) | |||
Beginning balance as of January 1 (restated) | (21,970) | (21,516) | (20,199) | |
Write-off of impaired loans applied against the allowance for impairment losses | 21,590 | 21,154 | 19,678 | |
Others | 13 | 70 | (46) | |
Financial assets at end of period | (25,551) | (21,970) | (21,516) | |
Impairment losses | Loans and advances - Customers | Mexico | ||||
Financial assets | ||||
Financial assets at end of period | (25,551) | (21,970) | (21,516) | |
Impairment losses | Loans and advances - Customers | Financial assets at amortized cost category | ||||
Financial assets | ||||
Impairment losses on financial assets | (25,184) | (21,673) | (20,947) | |
Write-off of impaired loans applied against the allowance for impairment losses | 21,590 | |||
Financial assets at end of period | (25,551) | |||
Recoveries of loans previously charged-off and recovery expenses | $ 3,453 | 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) |
Loans and advances to custome_8
Loans and advances to customers - Allowance for impairment losses - Post-model adjustments (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financial assets | |||
Financial assets | $ (1,773,414) | $ (1,407,320) | |
Loans and advances - Customers | |||
Financial assets | |||
Financial assets | $ (698,276) | (728,335) | |
Post-model adjustments or overlay (as a percent) | 6.00% | ||
Commercial, financial and industrial loans | |||
Financial assets | |||
Post-model adjustments or overlay (as a percent) | 15.00% | ||
Public sector loans | |||
Financial assets | |||
Post-model adjustments or overlay (as a percent) | 7.00% | ||
Mortgage loans | |||
Financial assets | |||
Post-model adjustments or overlay (as a percent) | (1.00%) | ||
Loans to customers | |||
Financial assets | |||
Post-model adjustments or overlay (as a percent) | 3.00% | ||
Installment loans to individuals - Revolving consumer credit cards loans | |||
Financial assets | |||
Post-model adjustments or overlay (as a percent) | 6.00% | ||
Installment loans to individuals - Non-revolving consumer loans | |||
Financial assets | |||
Post-model adjustments or overlay (as a percent) | 0.00% | ||
Financial assets at amortized cost category | Loans and advances - Customers | |||
Financial assets | |||
Financial assets | $ (687,432) | (699,671) | |
Impairment losses | Loans and advances - Customers | |||
Financial assets | |||
Financial assets | 25,551 | $ 21,970 | $ 21,516 |
Impairment losses | Financial assets at amortized cost category | Loans and advances - Customers | |||
Financial assets | |||
Financial assets | 25,551 | ||
Post-model adjustments or overlay | (1,458) | ||
Impairment losses | Financial assets at amortized cost category | Commercial, financial and industrial loans | |||
Financial assets | |||
Financial assets | 8,887 | ||
Impairment losses | Financial assets at amortized cost category | Public sector loans | |||
Financial assets | |||
Financial assets | 15 | ||
Impairment losses | Financial assets at amortized cost category | Mortgage loans | |||
Financial assets | |||
Financial assets | 4,078 | ||
Impairment losses | Financial assets at amortized cost category | Loans to customers | |||
Financial assets | |||
Financial assets | 12,571 | ||
Impairment losses | Financial assets at amortized cost category | Installment loans to individuals - Revolving consumer credit cards loans | |||
Financial assets | |||
Financial assets | 6,350 | ||
Impairment losses | Financial assets at amortized cost category | Installment loans to individuals - Non-revolving consumer loans | |||
Financial assets | |||
Financial assets | 6,221 | ||
Impairment losses | Financial assets at amortized cost category | IFRS 9 Model | Loans and advances - Customers | |||
Financial assets | |||
Financial assets | 24,093 | ||
Impairment losses | Financial assets at amortized cost category | IFRS 9 Model | Commercial, financial and industrial loans | |||
Financial assets | |||
Financial assets | 7,757 | ||
Impairment losses | Financial assets at amortized cost category | IFRS 9 Model | Public sector loans | |||
Financial assets | |||
Financial assets | 14 | ||
Impairment losses | Financial assets at amortized cost category | IFRS 9 Model | Mortgage loans | |||
Financial assets | |||
Financial assets | 4,108 | ||
Impairment losses | Financial assets at amortized cost category | IFRS 9 Model | Loans to customers | |||
Financial assets | |||
Financial assets | 12,214 | ||
Impairment losses | Financial assets at amortized cost category | IFRS 9 Model | Installment loans to individuals - Revolving consumer credit cards loans | |||
Financial assets | |||
Financial assets | 6,010 | ||
Impairment losses | Financial assets at amortized cost category | IFRS 9 Model | Installment loans to individuals - Non-revolving consumer loans | |||
Financial assets | |||
Financial assets | 6,204 | ||
Impairment losses | Financial assets at amortized cost category | Macroeconomic overlay | Loans and advances - Customers | |||
Financial assets | |||
Post-model adjustments or overlay | (613) | ||
Impairment losses | Financial assets at amortized cost category | Macroeconomic overlay | Commercial, financial and industrial loans | |||
Financial assets | |||
Post-model adjustments or overlay | (558) | ||
Impairment losses | Financial assets at amortized cost category | Macroeconomic overlay | Public sector loans | |||
Financial assets | |||
Post-model adjustments or overlay | (1) | ||
Impairment losses | Financial assets at amortized cost category | Macroeconomic overlay | Mortgage loans | |||
Financial assets | |||
Post-model adjustments or overlay | 30 | ||
Impairment losses | Financial assets at amortized cost category | Macroeconomic overlay | Loans to customers | |||
Financial assets | |||
Post-model adjustments or overlay | (84) | ||
Impairment losses | Financial assets at amortized cost category | Macroeconomic overlay | Installment loans to individuals - Revolving consumer credit cards loans | |||
Financial assets | |||
Post-model adjustments or overlay | (67) | ||
Impairment losses | Financial assets at amortized cost category | Macroeconomic overlay | Installment loans to individuals - Non-revolving consumer loans | |||
Financial assets | |||
Post-model adjustments or overlay | (17) | ||
Impairment losses | Financial assets at amortized cost category | Impairment overlay | Loans and advances - Customers | |||
Financial assets | |||
Post-model adjustments or overlay | (845) | ||
Impairment losses | Financial assets at amortized cost category | Impairment overlay | Commercial, financial and industrial loans | |||
Financial assets | |||
Post-model adjustments or overlay | (572) | ||
Impairment losses | Financial assets at amortized cost category | Impairment overlay | Loans to customers | |||
Financial assets | |||
Post-model adjustments or overlay | (273) | ||
Impairment losses | Financial assets at amortized cost category | Impairment overlay | Installment loans to individuals - Revolving consumer credit cards loans | |||
Financial assets | |||
Post-model adjustments or overlay | $ (273) |
Loans and advances to custome_9
Loans and advances to customers - Allowance loan losses and written off financial assets (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financial assets | |||
Financial assets | $ (1,773,414) | $ (1,407,320) | |
Contractual amount outstanding of financial assets written-off still subject to enforcement activities | 21,863 | ||
Loans and advances - Customers | |||
Financial assets | |||
Financial assets | (698,276) | (728,335) | |
Loans and advances - Customers | Impairment losses | |||
Financial assets | |||
Financial assets | 25,551 | 21,970 | $ 21,516 |
Written-off financial assets | (21,590) | (21,154) | $ (19,678) |
Loans and advances - Customers | Stage 1 | Impairment losses | |||
Financial assets | |||
Financial assets | 6,215 | ||
Loans and advances - Customers | Stage 2 | Impairment losses | |||
Financial assets | |||
Financial assets | 8,902 | ||
Loans and advances - Customers | Stage 3 | Impairment losses | |||
Financial assets | |||
Financial assets | 10,434 | ||
Written-off financial assets | (21,590) | ||
Financial assets at fair value through other comprehensive income category | Loans and advances - Customers | |||
Financial assets | |||
Financial assets | (2,875) | ||
Financial assets at amortized cost category | Loans and advances - Customers | |||
Financial assets | |||
Financial assets | (687,432) | $ (699,671) | |
Financial assets at amortized cost category | Loans and advances - Customers | Impairment losses | |||
Financial assets | |||
Financial assets | 25,551 | ||
Written-off financial assets | (21,590) | ||
Financial assets at amortized cost category | Loans and advances - Customers | Stage 1 | Impairment losses | |||
Financial assets | |||
Financial assets | 6,215 | ||
Financial assets at amortized cost category | Loans and advances - Customers | Stage 2 | Impairment losses | |||
Financial assets | |||
Financial assets | 8,902 | ||
Financial assets at amortized cost category | Loans and advances - Customers | Stage 3 | Impairment losses | |||
Financial assets | |||
Financial assets | 10,434 | ||
Financial assets at amortized cost category | Commercial, financial and industrial loans | Impairment losses | |||
Financial assets | |||
Financial assets | 8,887 | ||
Written-off financial assets | (7,919) | ||
Financial assets at amortized cost category | Commercial, financial and industrial loans | Stage 1 | Impairment losses | |||
Financial assets | |||
Financial assets | 2,047 | ||
Financial assets at amortized cost category | Commercial, financial and industrial loans | Stage 2 | Impairment losses | |||
Financial assets | |||
Financial assets | 3,438 | ||
Financial assets at amortized cost category | Commercial, financial and industrial loans | Stage 3 | Impairment losses | |||
Financial assets | |||
Financial assets | 3,402 | ||
Financial assets at amortized cost category | Public sector loans | Impairment losses | |||
Financial assets | |||
Financial assets | 15 | ||
Financial assets at amortized cost category | Public sector loans | Stage 1 | Impairment losses | |||
Financial assets | |||
Financial assets | 15 | ||
Financial assets at amortized cost category | Mortgage loans | Impairment losses | |||
Financial assets | |||
Financial assets | 4,078 | ||
Written-off financial assets | (1,145) | ||
Financial assets at amortized cost category | Mortgage loans | Stage 1 | Impairment losses | |||
Financial assets | |||
Financial assets | 625 | ||
Financial assets at amortized cost category | Mortgage loans | Stage 2 | Impairment losses | |||
Financial assets | |||
Financial assets | 824 | ||
Financial assets at amortized cost category | Mortgage loans | Stage 3 | Impairment losses | |||
Financial assets | |||
Financial assets | 2,629 | ||
Financial assets at amortized cost category | Loans to customers | Impairment losses | |||
Financial assets | |||
Financial assets | 12,571 | ||
Written-off financial assets | (12,526) | ||
Financial assets at amortized cost category | Loans to customers | Stage 1 | Impairment losses | |||
Financial assets | |||
Financial assets | 3,528 | ||
Financial assets at amortized cost category | Loans to customers | Stage 2 | Impairment losses | |||
Financial assets | |||
Financial assets | 4,640 | ||
Financial assets at amortized cost category | Loans to customers | Stage 3 | Impairment losses | |||
Financial assets | |||
Financial assets | 4,403 | ||
Financial assets at amortized cost category | Installment loans to individuals - Revolving consumer credit cards loans | Impairment losses | |||
Financial assets | |||
Financial assets | 6,350 | ||
Written-off financial assets | (7,020) | ||
Financial assets at amortized cost category | Installment loans to individuals - Revolving consumer credit cards loans | Stage 1 | Impairment losses | |||
Financial assets | |||
Financial assets | 1,526 | ||
Financial assets at amortized cost category | Installment loans to individuals - Revolving consumer credit cards loans | Stage 2 | Impairment losses | |||
Financial assets | |||
Financial assets | 2,837 | ||
Financial assets at amortized cost category | Installment loans to individuals - Revolving consumer credit cards loans | Stage 3 | Impairment losses | |||
Financial assets | |||
Financial assets | 1,987 | ||
Financial assets at amortized cost category | Installment loans to individuals - Non-revolving consumer loans | Impairment losses | |||
Financial assets | |||
Financial assets | 6,221 | ||
Written-off financial assets | (5,506) | ||
Financial assets at amortized cost category | Installment loans to individuals - Non-revolving consumer loans | Stage 1 | Impairment losses | |||
Financial assets | |||
Financial assets | 2,002 | ||
Financial assets at amortized cost category | Installment loans to individuals - Non-revolving consumer loans | Stage 2 | Impairment losses | |||
Financial assets | |||
Financial assets | 1,803 | ||
Financial assets at amortized cost category | Installment loans to individuals - Non-revolving consumer loans | Stage 3 | Impairment losses | |||
Financial assets | |||
Financial assets | $ 2,416 |
Loans and advances to custom_10
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial assets | ||||
Financial assets | $ (1,773,414) | $ (1,407,320) | ||
Loans and advances - Customers | ||||
Financial assets | ||||
Financial assets | (698,276) | (728,335) | ||
Loans and advances - Customers | Impairment losses | ||||
Financial assets | ||||
Financial assets, as originally presented | 21,970 | $ 21,516 | $ 16,929 | |
Financial assets, Adjustments on initial adoption of IFRS 9 | 3,270 | |||
Financial assets, restated | (21,970) | (21,516) | $ (20,199) | |
Transfer from Stage 1 to Stage 2 | (574) | |||
Transfer from Stage 1 to Stage 3 | (77) | |||
Transfer from Stage 2 to Stage 3 | (130) | |||
Transfer from Stage 2 to Stage 1 | 4,717 | |||
Transfer from Stage 3 to Stage 2 | 559 | |||
Transfer from Stage 3 to Stage 1 | 4,700 | |||
Financial assets derecognized during the period other than write offs | 62 | |||
Contracts remaining at the same stage | 14,673 | |||
Written-off financial assets | (21,590) | (21,154) | (19,678) | |
Originated financial assets | 2,537 | |||
Foreign exchange and other movements | (1,172) | |||
Financial assets | 25,551 | 21,970 | $ 21,516 | |
Loans and advances - Customers | Stage 1 | Impairment losses | ||||
Financial assets | ||||
Financial assets, restated | (7,254) | |||
Transfer from Stage 1 to Stage 2 | 121 | |||
Transfer from Stage 1 to Stage 3 | 24 | |||
Transfer from Stage 2 to Stage 1 | (412) | |||
Transfer from Stage 3 to Stage 1 | (347) | |||
Financial assets derecognized during the period other than write offs | 7 | |||
Contracts remaining at the same stage | (2,718) | |||
Originated financial assets | 2,537 | |||
Foreign exchange and other movements | (237) | |||
Financial assets | 6,215 | |||
Loans and advances - Customers | Stage 2 | Impairment losses | ||||
Financial assets | ||||
Financial assets, restated | (5,466) | |||
Transfer from Stage 1 to Stage 2 | (695) | |||
Transfer from Stage 2 to Stage 3 | 118 | |||
Transfer from Stage 2 to Stage 1 | 5,129 | |||
Transfer from Stage 3 to Stage 2 | (383) | |||
Financial assets derecognized during the period other than write offs | 8 | |||
Contracts remaining at the same stage | (422) | |||
Foreign exchange and other movements | (303) | |||
Financial assets | 8,902 | |||
Loans and advances - Customers | Stage 3 | Impairment losses | ||||
Financial assets | ||||
Financial assets, restated | (9,250) | |||
Transfer from Stage 1 to Stage 3 | (101) | |||
Transfer from Stage 2 to Stage 3 | (248) | |||
Transfer from Stage 3 to Stage 2 | 942 | |||
Transfer from Stage 3 to Stage 1 | 5,047 | |||
Financial assets derecognized during the period other than write offs | 47 | |||
Contracts remaining at the same stage | 17,813 | |||
Written-off financial assets | (21,590) | |||
Foreign exchange and other movements | (632) | |||
Financial assets | 10,434 | |||
Loans and advances - Customers | Financial assets at amortized cost category | ||||
Financial assets | ||||
Financial assets | (687,432) | $ (699,671) | ||
Loans and advances - Customers | Financial assets at amortized cost category | Impairment losses | ||||
Financial assets | ||||
Written-off financial assets | (21,590) | |||
Financial assets | 25,551 | |||
Loans and advances - Customers | Financial assets at amortized cost category | Stage 1 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 6,215 | |||
Loans and advances - Customers | Financial assets at amortized cost category | Stage 2 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 8,902 | |||
Loans and advances - Customers | Financial assets at amortized cost category | Stage 3 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 10,434 | |||
Commercial, financial and industrial loans | Financial assets at amortized cost category | Impairment losses | ||||
Financial assets | ||||
Written-off financial assets | (7,919) | |||
Financial assets | 8,887 | |||
Commercial, financial and industrial loans | Financial assets at amortized cost category | Stage 1 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 2,047 | |||
Commercial, financial and industrial loans | Financial assets at amortized cost category | Stage 2 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 3,438 | |||
Commercial, financial and industrial loans | Financial assets at amortized cost category | Stage 3 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 3,402 | |||
Public sector loans | Financial assets at amortized cost category | Impairment losses | ||||
Financial assets | ||||
Financial assets | 15 | |||
Public sector loans | Financial assets at amortized cost category | Stage 1 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 15 | |||
Mortgage loans | Financial assets at amortized cost category | Impairment losses | ||||
Financial assets | ||||
Written-off financial assets | (1,145) | |||
Financial assets | 4,078 | |||
Mortgage loans | Financial assets at amortized cost category | Stage 1 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 625 | |||
Mortgage loans | Financial assets at amortized cost category | Stage 2 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 824 | |||
Mortgage loans | Financial assets at amortized cost category | Stage 3 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 2,629 | |||
Installment loans to individuals - Non-revolving consumer loans | Financial assets at amortized cost category | Impairment losses | ||||
Financial assets | ||||
Written-off financial assets | (5,506) | |||
Financial assets | 6,221 | |||
Installment loans to individuals - Non-revolving consumer loans | Financial assets at amortized cost category | Stage 1 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 2,002 | |||
Installment loans to individuals - Non-revolving consumer loans | Financial assets at amortized cost category | Stage 2 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 1,803 | |||
Installment loans to individuals - Non-revolving consumer loans | Financial assets at amortized cost category | Stage 3 | Impairment losses | ||||
Financial assets | ||||
Financial assets | $ 2,416 |
Loans and advances to custom_11
Loans and advances to customers - Post-model adjustments (Details) - Financial assets at amortized cost category - Impairment losses $ in Millions | 12 Months Ended |
Dec. 31, 2020MXN ($) | |
Loans and advances - Customers | |
Financial assets | |
Post-model adjustments or overlay | $ (1,458) |
Loans and advances - Customers | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | (613) |
Loans and advances - Customers | Impairment overlay | |
Financial assets | |
Post-model adjustments or overlay | (845) |
Loans and advances - Customers | Stage 1 | |
Financial assets | |
Post-model adjustments or overlay | (397) |
Loans and advances - Customers | Stage 1 | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | (397) |
Loans and advances - Customers | Stage 2 | |
Financial assets | |
Post-model adjustments or overlay | (1,021) |
Loans and advances - Customers | Stage 2 | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | (202) |
Loans and advances - Customers | Stage 2 | Impairment overlay | |
Financial assets | |
Post-model adjustments or overlay | (819) |
Loans and advances - Customers | Stage 3 | |
Financial assets | |
Post-model adjustments or overlay | (40) |
Loans and advances - Customers | Stage 3 | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | (14) |
Loans and advances - Customers | Stage 3 | Impairment overlay | |
Financial assets | |
Post-model adjustments or overlay | (26) |
Commercial, financial and industrial loans | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | (558) |
Commercial, financial and industrial loans | Impairment overlay | |
Financial assets | |
Post-model adjustments or overlay | (572) |
Commercial, financial and industrial loans | Stage 1 | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | (374) |
Commercial, financial and industrial loans | Stage 2 | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | (176) |
Commercial, financial and industrial loans | Stage 2 | Impairment overlay | |
Financial assets | |
Post-model adjustments or overlay | (562) |
Commercial, financial and industrial loans | Stage 3 | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | (8) |
Commercial, financial and industrial loans | Stage 3 | Impairment overlay | |
Financial assets | |
Post-model adjustments or overlay | (10) |
Public sector loans | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | (1) |
Public sector loans | Stage 1 | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | (1) |
Mortgage loans | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | 30 |
Mortgage loans | Stage 1 | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | 4 |
Mortgage loans | Stage 2 | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | 6 |
Mortgage loans | Stage 3 | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | 20 |
Loans to customers | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | (84) |
Loans to customers | Impairment overlay | |
Financial assets | |
Post-model adjustments or overlay | (273) |
Loans to customers | Stage 1 | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | (26) |
Loans to customers | Stage 2 | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | (32) |
Loans to customers | Stage 2 | Impairment overlay | |
Financial assets | |
Post-model adjustments or overlay | (257) |
Loans to customers | Stage 3 | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | (26) |
Loans to customers | Stage 3 | Impairment overlay | |
Financial assets | |
Post-model adjustments or overlay | (16) |
Installment loans to individuals - Revolving consumer credit cards loans | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | (67) |
Installment loans to individuals - Revolving consumer credit cards loans | Impairment overlay | |
Financial assets | |
Post-model adjustments or overlay | (273) |
Installment loans to individuals - Revolving consumer credit cards loans | Stage 1 | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | (21) |
Installment loans to individuals - Revolving consumer credit cards loans | Stage 2 | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | (27) |
Installment loans to individuals - Revolving consumer credit cards loans | Stage 2 | Impairment overlay | |
Financial assets | |
Post-model adjustments or overlay | (257) |
Installment loans to individuals - Revolving consumer credit cards loans | Stage 3 | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | (19) |
Installment loans to individuals - Revolving consumer credit cards loans | Stage 3 | Impairment overlay | |
Financial assets | |
Post-model adjustments or overlay | (16) |
Installment loans to individuals - Non-revolving consumer loans | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | (17) |
Installment loans to individuals - Non-revolving consumer loans | Stage 1 | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | (5) |
Installment loans to individuals - Non-revolving consumer loans | Stage 2 | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | (5) |
Installment loans to individuals - Non-revolving consumer loans | Stage 3 | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | $ (7) |
Loans and advances to custom_12
Loans and advances to customers - Impaired loans (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financial assets at amortized cost category | Loans to customers (non-performing) | |||
Financial assets | |||
Beginning balance | $ 17,952 | ||
Balance at year-end | 21,909 | $ 17,952 | |
Gross carrying amount | |||
Financial assets | |||
Beginning balance | 750,305 | ||
Balance at year-end | 723,827 | 750,305 | |
Loans and advances - Customers | Impairment losses | |||
Financial assets | |||
Written-off assets | 21,590 | 21,154 | $ 19,678 |
Loans and advances - Customers | Impairment losses | Financial assets at amortized cost category | |||
Financial assets | |||
Written-off assets | 21,590 | ||
Loans and advances - Customers | Gross carrying amount | Financial assets at amortized cost category | |||
Financial assets | |||
Written-off assets | (21,590) | ||
Loans and advances - Customers | Gross carrying amount | Financial assets at amortized cost category | Loans to customers (non-performing) | |||
Financial assets | |||
Beginning balance | 17,952 | 18,429 | 18,132 |
Additions | 37,216 | 31,418 | 32,461 |
Transfers to performing loans | (11,669) | (10,741) | (12,486) |
Written-off assets | (21,590) | (21,154) | (19,678) |
Balance at year-end | $ 21,909 | $ 17,952 | $ 18,429 |
Loans and advances to custom_13
Loans and advances to customers - Impaired loans between no past due and past due (Details) - Financial assets at amortized cost category - Loans to customers (non-performing) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial assets | ||
Loans and advances to customers | $ 21,909 | $ 17,952 |
Less than 3 Months | ||
Financial assets | ||
Loans and advances to customers | 5,648 | 6,191 |
6 months | ||
Financial assets | ||
Loans and advances to customers | 9,597 | 5,455 |
6 to 9 Months | ||
Financial assets | ||
Loans and advances to customers | 1,067 | 1,108 |
9 to 12 Months | ||
Financial assets | ||
Loans and advances to customers | 1,280 | 789 |
More than 12 Months | ||
Financial assets | ||
Loans and advances to customers | 4,317 | 4,409 |
Commercial, financial and industrial loans | ||
Financial assets | ||
Loans and advances to customers | 6,530 | 5,815 |
Commercial, financial and industrial loans | Less than 3 Months | ||
Financial assets | ||
Loans and advances to customers | 2,324 | 1,427 |
Commercial, financial and industrial loans | 6 months | ||
Financial assets | ||
Loans and advances to customers | 3,310 | 1,640 |
Commercial, financial and industrial loans | 6 to 9 Months | ||
Financial assets | ||
Loans and advances to customers | 326 | 404 |
Commercial, financial and industrial loans | 9 to 12 Months | ||
Financial assets | ||
Loans and advances to customers | 196 | 291 |
Commercial, financial and industrial loans | More than 12 Months | ||
Financial assets | ||
Loans and advances to customers | 374 | 2,053 |
Mortgage loans | ||
Financial assets | ||
Loans and advances to customers | 9,847 | 8,399 |
Mortgage loans | Less than 3 Months | ||
Financial assets | ||
Loans and advances to customers | 1,982 | 3,701 |
Mortgage loans | 6 months | ||
Financial assets | ||
Loans and advances to customers | 2,097 | 1,142 |
Mortgage loans | 6 to 9 Months | ||
Financial assets | ||
Loans and advances to customers | 741 | 703 |
Mortgage loans | 9 to 12 Months | ||
Financial assets | ||
Loans and advances to customers | 1,084 | 498 |
Mortgage loans | More than 12 Months | ||
Financial assets | ||
Loans and advances to customers | 3,943 | 2,355 |
Installment loans to individuals - Revolving consumer credit cards loans | ||
Financial assets | ||
Loans and advances to customers | 2,543 | 1,717 |
Installment loans to individuals - Revolving consumer credit cards loans | Less than 3 Months | ||
Financial assets | ||
Loans and advances to customers | 868 | 536 |
Installment loans to individuals - Revolving consumer credit cards loans | 6 months | ||
Financial assets | ||
Loans and advances to customers | 1,675 | 1,181 |
Installment loans to individuals - Non-revolving consumer loans | ||
Financial assets | ||
Loans and advances to customers | 2,989 | 2,021 |
Installment loans to individuals - Non-revolving consumer loans | Less than 3 Months | ||
Financial assets | ||
Loans and advances to customers | 474 | 527 |
Installment loans to individuals - Non-revolving consumer loans | 6 months | ||
Financial assets | ||
Loans and advances to customers | $ 2,515 | 1,492 |
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 |
Loans and advances to custom_14
Loans and advances to customers - Renegotiated loans (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financial instruments | |||
Renegotiated loan amount | $ 5,654 | $ 5,351 | $ 6,814 |
Percentage of renegotiated loans | 100.00% | 100.00% | 100.00% |
Loans to customers (non-performing) | |||
Financial instruments | |||
Renegotiated loan amount | $ 1,513 | $ 2,917 | $ 3,746 |
Percentage of renegotiated loans | 27.00% | 55.00% | 55.00% |
Due to Concerns About Current or Potential Credit Deterioration | Performing loans | |||
Financial instruments | |||
Renegotiated loan amount | $ 4,141 | $ 2,434 | $ 3,068 |
Percentage of renegotiated loans | 73.00% | 45.00% | 45.00% |
Commercial, financial and industrial loans | |||
Financial instruments | |||
Renegotiated loan amount | $ 3,070 | $ 3,533 | $ 4,329 |
Commercial, financial and industrial loans | Loans to customers (non-performing) | |||
Financial instruments | |||
Renegotiated loan amount | 912 | 2,318 | 3,011 |
Commercial, financial and industrial loans | Due to Concerns About Current or Potential Credit Deterioration | Performing loans | |||
Financial instruments | |||
Renegotiated loan amount | 2,158 | 1,215 | 1,318 |
Mortgage loans | |||
Financial instruments | |||
Renegotiated loan amount | 685 | 662 | 1,133 |
Mortgage loans | Loans to customers (non-performing) | |||
Financial instruments | |||
Renegotiated loan amount | 329 | 293 | 530 |
Mortgage loans | Due to Concerns About Current or Potential Credit Deterioration | Performing loans | |||
Financial instruments | |||
Renegotiated loan amount | 356 | 369 | 603 |
Installment loans to individuals | |||
Financial instruments | |||
Renegotiated loan amount | 1,899 | 1,156 | 1,352 |
Installment loans to individuals | Loans to customers (non-performing) | |||
Financial instruments | |||
Renegotiated loan amount | 272 | 306 | 205 |
Installment loans to individuals | Due to Concerns About Current or Potential Credit Deterioration | Performing loans | |||
Financial instruments | |||
Renegotiated loan amount | $ 1,627 | $ 850 | $ 1,147 |
Loans and advances to custom_15
Loans and advances to customers - Gains (losses) on modification of financial assets (net) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020MXN ($) | |
Financial assets | |
Gains/(losses) on modification of financial assets (net) | $ (1,743) |
Commercial, financial and industrial loans | |
Financial assets | |
Gains/(losses) on modification of financial assets (net) | (605) |
Mortgage loans | |
Financial assets | |
Gains/(losses) on modification of financial assets (net) | (224) |
Installment loans to individuals - Non-revolving consumer loans | |
Financial assets | |
Gains/(losses) on modification of financial assets (net) | $ (914) |
Loans and advances to custom_16
Loans and advances to customers - Maximum exposure to credit risk (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial instruments | ||
Maximum Exposure to Credit Risk | $ 1,724,748 | $ 1,428,587 |
Maximum Exposure to Credit Risk, unsecured | 1,120,927 | 872,609 |
Maximum Exposure to Credit Risk, secured | 603,821 | 555,978 |
Cash Collateral Received | 23,052 | 16,759 |
Collateralized by Securities | 65,040 | 82,328 |
Collection Rights | ||
Financial instruments | ||
Other Credit Enhancements | 83,544 | 69,732 |
Real Estate | ||
Financial instruments | ||
Other Credit Enhancements | 176,841 | 148,360 |
Guarantees | ||
Financial instruments | ||
Other Credit Enhancements | 7,073 | 8,118 |
Guarantees and loan commitments | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 83,645 | 80,169 |
Maximum Exposure to Credit Risk, unsecured | 83,645 | 80,169 |
Financial assets at fair value through profit or loss category | Financial assets, category | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 502,443 | 262,360 |
Maximum Exposure to Credit Risk, unsecured | 473,908 | 239,865 |
Maximum Exposure to Credit Risk, secured | 28,535 | 22,495 |
Cash Collateral Received | 23,052 | 16,759 |
Collateralized by Securities | 5,483 | 5,736 |
Other financial assets at fair value through profit or loss | Financial assets, category | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 70,356 | 79,927 |
Maximum Exposure to Credit Risk, secured | 70,356 | 79,927 |
Collateralized by Securities | 59,557 | 76,592 |
Financial assets at fair value through other comprehensive income category | Financial assets, category | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 355,321 | 236,343 |
Maximum Exposure to Credit Risk, unsecured | 355,321 | 236,343 |
Financial assets at amortized cost category | Financial assets, category | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 712,983 | 769,788 |
Maximum Exposure to Credit Risk, unsecured | 208,053 | 316,232 |
Maximum Exposure to Credit Risk, secured | 504,930 | 453,556 |
Financial assets at amortized cost category | Financial assets, category | Collection Rights | ||
Financial instruments | ||
Other Credit Enhancements | 83,544 | 69,732 |
Financial assets at amortized cost category | Financial assets, category | Real Estate | ||
Financial instruments | ||
Other Credit Enhancements | 176,841 | 148,360 |
Financial assets at amortized cost category | Financial assets, category | Guarantees | ||
Financial instruments | ||
Other Credit Enhancements | 7,073 | 8,118 |
Financial assets at amortized cost category | Financial assets, category | Loans and advances - Credit institutions | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 36,895 | |
Maximum Exposure to Credit Risk, unsecured | 36,895 | |
Financial assets at amortized cost category | Financial assets, category | Loans and advances - Customers | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 712,983 | 721,636 |
Maximum Exposure to Credit Risk, unsecured | 208,053 | 268,080 |
Maximum Exposure to Credit Risk, secured | 504,930 | 453,556 |
Financial assets at amortized cost category | Financial assets, category | Loans and advances - Customers | Collection Rights | ||
Financial instruments | ||
Other Credit Enhancements | 83,544 | 69,732 |
Financial assets at amortized cost category | Financial assets, category | Loans and advances - Customers | Real Estate | ||
Financial instruments | ||
Other Credit Enhancements | 176,841 | 148,360 |
Financial assets at amortized cost category | Financial assets, category | Loans and advances - Customers | Guarantees | ||
Financial instruments | ||
Other Credit Enhancements | 7,073 | 8,118 |
Financial assets at amortized cost category | Financial assets, category | Commercial, financial and industrial loans | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 346,075 | 376,878 |
Maximum Exposure to Credit Risk, unsecured | 72,756 | 106,672 |
Maximum Exposure to Credit Risk, secured | 273,319 | 270,206 |
Financial assets at amortized cost category | Financial assets, category | Commercial, financial and industrial loans | Collection Rights | ||
Financial instruments | ||
Other Credit Enhancements | 45,694 | 45,058 |
Financial assets at amortized cost category | Financial assets, category | Commercial, financial and industrial loans | Real Estate | ||
Financial instruments | ||
Other Credit Enhancements | 29,342 | 25,308 |
Financial assets at amortized cost category | Financial assets, category | Commercial, financial and industrial loans | Guarantees | ||
Financial instruments | ||
Other Credit Enhancements | 7,073 | 8,118 |
Financial assets at amortized cost category | Financial assets, category | Public sector loans | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 73,016 | 70,450 |
Maximum Exposure to Credit Risk, unsecured | 21,510 | 26,867 |
Maximum Exposure to Credit Risk, secured | 51,506 | 43,583 |
Financial assets at amortized cost category | Financial assets, category | Public sector loans | Collection Rights | ||
Financial instruments | ||
Other Credit Enhancements | 34,677 | 24,646 |
Financial assets at amortized cost category | Financial assets, category | Mortgage loans | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 177,665 | 156,209 |
Maximum Exposure to Credit Risk, unsecured | 5,007 | 19,077 |
Maximum Exposure to Credit Risk, secured | 172,658 | 137,132 |
Financial assets at amortized cost category | Financial assets, category | Mortgage loans | Collection Rights | ||
Financial instruments | ||
Other Credit Enhancements | 3,140 | |
Financial assets at amortized cost category | Financial assets, category | Mortgage loans | Real Estate | ||
Financial instruments | ||
Other Credit Enhancements | 140,096 | 120,461 |
Financial assets at amortized cost category | Financial assets, category | Revolving consumer credit card loans | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 53,809 | 59,477 |
Maximum Exposure to Credit Risk, unsecured | 53,809 | 59,477 |
Financial assets at amortized cost category | Financial assets, category | Installment loans to individuals - Non-revolving consumer loans | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 62,418 | 58,622 |
Maximum Exposure to Credit Risk, unsecured | 54,971 | 55,987 |
Maximum Exposure to Credit Risk, secured | 7,447 | 2,635 |
Financial assets at amortized cost category | Financial assets, category | Installment loans to individuals - Non-revolving consumer loans | Collection Rights | ||
Financial instruments | ||
Other Credit Enhancements | 33 | 28 |
Financial assets at amortized cost category | Financial assets, category | Installment loans to individuals - Non-revolving consumer loans | Real Estate | ||
Financial instruments | ||
Other Credit Enhancements | $ 7,403 | 2,591 |
Financial assets at amortized cost category | Financial assets, category | Debt instruments. | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 11,257 | |
Maximum Exposure to Credit Risk, unsecured | $ 11,257 |
Loans and advances to custom_17
Loans and advances to customers - Internal rating (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Credit risk | ||
Financial assets | $ 1,773,414 | $ 1,407,320 |
Maximum Exposure to Credit Risk | 1,724,748 | 1,428,587 |
Internal credit grades | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 432,508 | 449,883 |
Internal credit grades | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 289,531 | 303,207 |
Internal credit grades | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 348,977 | 373,657 |
Internal credit grades | Public sector loans | Gross carrying amount | ||
Credit risk | ||
Financial assets | 59,446 | 70,450 |
Internal credit grades | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 83,531 | 76,226 |
Internal credit grades | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 62,529 | 58,131 |
Internal credit grades | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | 21,002 | 18,095 |
Rating category, 9.3 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 520 | 597 |
Rating category, 9.3 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 520 | 597 |
Rating category, 9.3 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 520 | 597 |
Rating category, 9.0 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 157 | 4,506 |
Rating category, 9.0 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 4,506 | |
Rating category, 9.0 | Public sector loans | Gross carrying amount | ||
Credit risk | ||
Financial assets | 4,506 | |
Rating category, 9.0 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 157 | |
Rating category, 9.0 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 157 | |
Rating category, 8.5 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 8,514 | 4,066 |
Rating category, 8.5 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 8,514 | 4,066 |
Rating category, 8.5 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 8,474 | 4,009 |
Rating category, 8.5 | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | 40 | 57 |
Rating category, 8.0 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 16,912 | 15,596 |
Rating category, 8.0 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 16,912 | 15,596 |
Rating category, 8.0 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 16,638 | 15,457 |
Rating category, 8.0 | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | 274 | 139 |
Rating category, 7.5 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 5,820 | 6,652 |
Rating category, 7.5 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,751 | 2,004 |
Rating category, 7.5 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,751 | 2,004 |
Rating category, 7.5 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 4,069 | 4,648 |
Rating category, 7.5 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 3,945 | 4,347 |
Rating category, 7.5 | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | 124 | 301 |
Rating category, 7.0 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 22,507 | 56,801 |
Rating category, 7.0 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 11,269 | 21,925 |
Rating category, 7.0 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 20,235 | 48,491 |
Rating category, 7.0 | Public sector loans | Gross carrying amount | ||
Credit risk | ||
Financial assets | 8,966 | 26,566 |
Rating category, 7.0 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 2,272 | 8,310 |
Rating category, 7.0 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 2,251 | 8,290 |
Rating category, 7.0 | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | 21 | 20 |
Rating category, 6.5 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 52,173 | 47,877 |
Rating category, 6.5 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 41,729 | 33,028 |
Rating category, 6.5 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 41,729 | 35,083 |
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 the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 10,444 | 12,794 |
Rating category, 6.5 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 10,032 | 12,566 |
Rating category, 6.5 | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | 412 | 228 |
Rating category, 6.0 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 46,113 | 46,901 |
Rating category, 6.0 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 26,484 | 32,090 |
Rating category, 6.0 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 31,489 | 37,581 |
Rating category, 6.0 | Public sector loans | Gross carrying amount | ||
Credit risk | ||
Financial assets | 5,005 | 5,491 |
Rating category, 6.0 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 14,624 | 9,320 |
Rating category, 6.0 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 11,108 | 5,848 |
Rating category, 6.0 | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | 3,516 | 3,472 |
Rating category, 5.5 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 90,778 | 99,349 |
Rating category, 5.5 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 68,363 | 75,766 |
Rating category, 5.5 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 77,256 | 89,450 |
Rating category, 5.5 | Public sector loans | Gross carrying amount | ||
Credit risk | ||
Financial assets | 8,893 | 13,684 |
Rating category, 5.5 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 13,522 | 9,899 |
Rating category, 5.5 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 3,916 | 3,780 |
Rating category, 5.5 | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | 9,606 | 6,119 |
Rating category, 5.0 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 120,253 | 119,096 |
Rating category, 5.0 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 84,532 | 94,840 |
Rating category, 5.0 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 112,379 | 111,137 |
Rating category, 5.0 | Public sector loans | Gross carrying amount | ||
Credit risk | ||
Financial assets | 27,846 | 16,297 |
Rating category, 5.0 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 7,874 | 7,959 |
Rating category, 5.0 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 2,868 | 2,082 |
Rating category, 5.0 | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | 5,006 | 5,877 |
Rating category, 4.5 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 31,021 | 23,993 |
Rating category, 4.5 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 21,204 | 21,098 |
Rating category, 4.5 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 29,940 | 22,383 |
Rating category, 4.5 | Public sector loans | Gross carrying amount | ||
Credit risk | ||
Financial assets | 8,736 | 1,285 |
Rating category, 4.5 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 1,081 | 1,610 |
Rating category, 4.5 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 101 | 167 |
Rating category, 4.5 | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | 980 | 1,443 |
Rating category, 4.0 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 12,516 | 5,810 |
Rating category, 4.0 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 12,389 | 5,734 |
Rating category, 4.0 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 12,389 | 5,734 |
Rating category, 4.0 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 127 | 76 |
Rating category, 4.0 | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | 127 | 76 |
Rating category, 3.5 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 4,156 | 1,112 |
Rating category, 3.5 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 4,156 | 1,112 |
Rating category, 3.5 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 4,156 | 1,112 |
Rating category, 3.0 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 4,260 | 1,453 |
Rating category, 3.0 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 3,334 | 1,453 |
Rating category, 3.0 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 3,334 | 1,453 |
Rating category, 3.0 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 926 | |
Rating category, 3.0 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 39 | |
Rating category, 3.0 | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | 887 | |
Rating category, 2.5 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 4,257 | 235 |
Rating category, 2.5 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 4,257 | 235 |
Rating category, 2.5 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 4,257 | 235 |
Rating category, 2.0 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 998 | 376 |
Rating category, 2.0 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 998 | 301 |
Rating category, 2.0 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 998 | 301 |
Rating category, 2.0 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 75 | |
Rating category, 2.0 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 75 | |
Rating category, 1.5 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 779 | |
Rating category, 1.5 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 704 | |
Rating category, 1.5 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 704 | |
Rating category, 1.5 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 75 | |
Rating category, 1.5 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 75 | |
Rating category, 1.0 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 561 | 1,477 |
Rating category, 1.0 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 555 | 1,477 |
Rating category, 1.0 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 555 | 1,477 |
Rating category, 1.0 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 6 | |
Rating category, 1.0 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 6 | |
Not rated | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 10,214 | 13,986 |
Not rated | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 7,806 | 12,144 |
Not rated | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 7,806 | 12,710 |
Not rated | Public sector loans | Gross carrying amount | ||
Credit risk | ||
Financial assets | 566 | |
Not rated | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 2,408 | 1,276 |
Not rated | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 2,399 | 913 |
Not rated | Loans and credits | ||
Credit risk | ||
Guarantees and loan commitments | $ 9 | $ 363 |
Loans and advances to custom_18
Loans and advances to customers - External rating (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Credit risk | ||
Financial assets | $ 1,773,414 | $ 1,407,320 |
Maximum exposure to credit risk | 1,724,748 | 1,428,587 |
External credit grades | ||
Credit risk | ||
Maximum exposure to credit risk | 400,841 | 390,523 |
A-1 | ||
Credit risk | ||
Maximum exposure to credit risk | 236,454 | 188,046 |
A-2 | ||
Credit risk | ||
Maximum exposure to credit risk | 44,041 | 42,182 |
B-1 | ||
Credit risk | ||
Maximum exposure to credit risk | 34,706 | 43,365 |
B-2 | ||
Credit risk | ||
Maximum exposure to credit risk | 22,594 | 35,899 |
B-3 | ||
Credit risk | ||
Maximum exposure to credit risk | 14,630 | 23,606 |
C-1 | ||
Credit risk | ||
Maximum exposure to credit risk | 14,060 | 20,648 |
C-2 | ||
Credit risk | ||
Maximum exposure to credit risk | 12,007 | 15,431 |
D | ||
Credit risk | ||
Maximum exposure to credit risk | 14,027 | 12,849 |
E | ||
Credit risk | ||
Maximum exposure to credit risk | 8,132 | 8,286 |
Not rated | ||
Credit risk | ||
Maximum exposure to credit risk | 190 | 211 |
Loans and advances - Customers | External credit grades | Gross carrying amount | ||
Credit risk | ||
Financial assets | 354,083 | 345,835 |
Loans and advances - Customers | A-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 207,288 | 180,912 |
Loans and advances - Customers | A-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 33,287 | 34,396 |
Loans and advances - Customers | B-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 32,008 | 35,252 |
Loans and advances - Customers | B-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 21,343 | 31,334 |
Loans and advances - Customers | B-3 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 13,725 | 20,181 |
Loans and advances - Customers | C-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 13,122 | 15,905 |
Loans and advances - Customers | C-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 11,306 | 10,898 |
Loans and advances - Customers | D | Gross carrying amount | ||
Credit risk | ||
Financial assets | 13,779 | 10,928 |
Loans and advances - Customers | E | Gross carrying amount | ||
Credit risk | ||
Financial assets | 8,035 | 5,818 |
Loans and advances - Customers | Not rated | Gross carrying amount | ||
Credit risk | ||
Financial assets | 190 | 211 |
Commercial loans (SME) | External credit grades | Gross carrying amount | ||
Credit risk | ||
Financial assets | 65,732 | 76,563 |
Commercial loans (SME) | A-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 44,392 | 50,253 |
Commercial loans (SME) | A-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 4,779 | 6,730 |
Commercial loans (SME) | B-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 2,771 | 2,553 |
Commercial loans (SME) | B-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 2,327 | 2,575 |
Commercial loans (SME) | B-3 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 4,455 | 9,046 |
Commercial loans (SME) | C-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,566 | 2,068 |
Commercial loans (SME) | C-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 588 | 723 |
Commercial loans (SME) | D | Gross carrying amount | ||
Credit risk | ||
Financial assets | 3,762 | 1,941 |
Commercial loans (SME) | E | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,092 | 674 |
Mortgage loans | External credit grades | Gross carrying amount | ||
Credit risk | ||
Financial assets | 172,990 | 152,140 |
Mortgage loans | A-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 138,867 | 117,983 |
Mortgage loans | A-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 6,170 | 3,384 |
Mortgage loans | B-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 3,626 | 1,685 |
Mortgage loans | B-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 6,523 | 14,161 |
Mortgage loans | B-3 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 2,218 | 1,114 |
Mortgage loans | C-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 5,295 | 4,936 |
Mortgage loans | C-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 4,303 | 3,465 |
Mortgage loans | D | Gross carrying amount | ||
Credit risk | ||
Financial assets | 4,355 | 4,507 |
Mortgage loans | E | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,443 | 694 |
Mortgage loans | Not rated | Gross carrying amount | ||
Credit risk | ||
Financial assets | 190 | 211 |
Installment loans to individuals - Revolving consumer credit cards loans | External credit grades | Gross carrying amount | ||
Credit risk | ||
Financial assets | 53,807 | 59,477 |
Installment loans to individuals - Revolving consumer credit cards loans | A-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 9,804 | 3,165 |
Installment loans to individuals - Revolving consumer credit cards loans | A-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 16,790 | 17,396 |
Installment loans to individuals - Revolving consumer credit cards loans | B-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 7,746 | 16,396 |
Installment loans to individuals - Revolving consumer credit cards loans | B-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 3,826 | 5,842 |
Installment loans to individuals - Revolving consumer credit cards loans | B-3 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 2,625 | 2,945 |
Installment loans to individuals - Revolving consumer credit cards loans | C-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 3,586 | 4,791 |
Installment loans to individuals - Revolving consumer credit cards loans | C-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 3,891 | 4,227 |
Installment loans to individuals - Revolving consumer credit cards loans | D | Gross carrying amount | ||
Credit risk | ||
Financial assets | 4,612 | 3,332 |
Installment loans to individuals - Revolving consumer credit cards loans | E | Gross carrying amount | ||
Credit risk | ||
Financial assets | 927 | 1,383 |
Installment loans to individuals - Non-revolving consumer loans | External credit grades | Gross carrying amount | ||
Credit risk | ||
Financial assets | 61,554 | 57,655 |
Installment loans to individuals - Non-revolving consumer loans | A-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 14,225 | 9,511 |
Installment loans to individuals - Non-revolving consumer loans | A-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 5,548 | 6,886 |
Installment loans to individuals - Non-revolving consumer loans | B-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 17,865 | 14,618 |
Installment loans to individuals - Non-revolving consumer loans | B-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 8,667 | 8,756 |
Installment loans to individuals - Non-revolving consumer loans | B-3 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 4,427 | 7,076 |
Installment loans to individuals - Non-revolving consumer loans | C-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 2,675 | 4,110 |
Installment loans to individuals - Non-revolving consumer loans | C-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 2,524 | 2,483 |
Installment loans to individuals - Non-revolving consumer loans | D | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,050 | 1,148 |
Installment loans to individuals - Non-revolving consumer loans | E | Gross carrying amount | ||
Credit risk | ||
Financial assets | 4,573 | 3,067 |
Financial instruments not recognized on the consolidated balance sheet | External credit grades | ||
Credit risk | ||
Guarantees and loan commitments | 46,758 | 44,688 |
Financial instruments not recognized on the consolidated balance sheet | A-1 | ||
Credit risk | ||
Guarantees and loan commitments | 29,166 | 7,134 |
Financial instruments not recognized on the consolidated balance sheet | A-2 | ||
Credit risk | ||
Guarantees and loan commitments | 10,754 | 7,786 |
Financial instruments not recognized on the consolidated balance sheet | B-1 | ||
Credit risk | ||
Guarantees and loan commitments | 2,698 | 8,113 |
Financial instruments not recognized on the consolidated balance sheet | B-2 | ||
Credit risk | ||
Guarantees and loan commitments | 1,251 | 4,565 |
Financial instruments not recognized on the consolidated balance sheet | B-3 | ||
Credit risk | ||
Guarantees and loan commitments | 905 | 3,425 |
Financial instruments not recognized on the consolidated balance sheet | C-1 | ||
Credit risk | ||
Guarantees and loan commitments | 938 | 4,743 |
Financial instruments not recognized on the consolidated balance sheet | C-2 | ||
Credit risk | ||
Guarantees and loan commitments | 701 | 4,533 |
Financial instruments not recognized on the consolidated balance sheet | D | ||
Credit risk | ||
Guarantees and loan commitments | 248 | 1,921 |
Financial instruments not recognized on the consolidated balance sheet | E | ||
Credit risk | ||
Guarantees and loan commitments | 97 | 2,468 |
Available lines of credit cards and non-revolving consumer loans | External credit grades | ||
Credit risk | ||
Guarantees and loan commitments | 46,646 | 44,468 |
Available lines of credit cards and non-revolving consumer loans | A-1 | ||
Credit risk | ||
Guarantees and loan commitments | 29,062 | 6,914 |
Available lines of credit cards and non-revolving consumer loans | A-2 | ||
Credit risk | ||
Guarantees and loan commitments | 10,754 | 7,786 |
Available lines of credit cards and non-revolving consumer loans | B-1 | ||
Credit risk | ||
Guarantees and loan commitments | 2,698 | 8,113 |
Available lines of credit cards and non-revolving consumer loans | B-2 | ||
Credit risk | ||
Guarantees and loan commitments | 1,251 | 4,565 |
Available lines of credit cards and non-revolving consumer loans | B-3 | ||
Credit risk | ||
Guarantees and loan commitments | 905 | 3,425 |
Available lines of credit cards and non-revolving consumer loans | C-1 | ||
Credit risk | ||
Guarantees and loan commitments | 938 | 4,743 |
Available lines of credit cards and non-revolving consumer loans | C-2 | ||
Credit risk | ||
Guarantees and loan commitments | 701 | 4,533 |
Available lines of credit cards and non-revolving consumer loans | D | ||
Credit risk | ||
Guarantees and loan commitments | 248 | 1,921 |
Available lines of credit cards and non-revolving consumer loans | E | ||
Credit risk | ||
Guarantees and loan commitments | 89 | 2,468 |
Guarantees | External credit grades | ||
Credit risk | ||
Guarantees and loan commitments | 1 | 37 |
Guarantees | A-1 | ||
Credit risk | ||
Guarantees and loan commitments | 1 | 37 |
Loans and credits | External credit grades | ||
Credit risk | ||
Guarantees and loan commitments | 111 | 183 |
Loans and credits | A-1 | ||
Credit risk | ||
Guarantees and loan commitments | 103 | $ 183 |
Loans and credits | E | ||
Credit risk | ||
Guarantees and loan commitments | $ 8 |
Loans and advances to custom_19
Loans and advances to customers - Securitization (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Securitized loans | ||
Financial instruments | ||
Loans and advances to customers | $ 114 | $ 130 |
Hedging derivatives - By type (
Hedging derivatives - By type (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Hedging derivatives | ||
Fair value of hedging derivative assets | $ 8,306 | $ 9,256 |
Hedging derivatives | 19,078 | 7,523 |
Fair value hedges | ||
Hedging derivatives | ||
Fair value of hedging derivative assets | 11 | 925 |
Hedging derivatives | 16,604 | 5,306 |
Cash flow hedges | ||
Hedging derivatives | ||
Fair value of hedging derivative assets | 8,295 | 8,331 |
Hedging derivatives | $ 2,474 | $ 2,217 |
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, 2020MXN ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) | Dec. 31, 2020GBP (£) | Dec. 31, 2020MXV ( ) | Dec. 31, 2020EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2020MXN ($) | Dec. 31, 2019GBP (£) | Dec. 31, 2019MXV ( ) | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019MXN ($) | |
Hedging derivatives | |||||||||||||
Gains/(losses) on financial assets and liabilities (net) - derivative financial instrument for fair value hedging | $ (6,884) | $ (667) | $ 474 | ||||||||||
Gains/(losses) on financial assets and liabilities (net) - hedged items for fair value hedging | $ 6,427 | $ 731 | $ (606) | ||||||||||
Interest rate risk | Loans and receivables | Mexican peso | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | $ 2,333 | $ 3,900 | |||||||||||
Interest rate risk | Loans and receivables | US dollar | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | $ 6 | 114 | |||||||||||
Interest rate risk | Promissory notes | Mexican peso | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | 1,000 | 6,422 | |||||||||||
Interest rate risk | Mexican Government Bonds | Mexican peso | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | 47,047 | 47,046 | |||||||||||
Interest rate and foreign exchange risk | Loans and receivables | US dollar | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | $ 1 | 16 | 13 | 313 | |||||||||
Interest rate and foreign exchange risk | Loans and receivables | Euro | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | € 13 | 265 | |||||||||||
Interest rate and foreign exchange risk | UMS | US dollar | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | $ 398 | 7,824 | $ 280 | 5,394 | |||||||||
Interest rate and foreign exchange risk | UMS | Euro | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | € 1,089 | 23,431 | € 1,181 | 25,256 | |||||||||
Interest rate and foreign exchange risk | UMS | Pound sterling | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | £ 58 | 1,492 | £ 58 | 1,492 | |||||||||
Interest rate and inflation risk | UDIBONDS | UDI | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | 405 | $ 1,895 | 703 | $ 3,287 |
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, 2020MXN ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) | Dec. 31, 2020GBP (£) | Dec. 31, 2020BRL (R$) | Dec. 31, 2020EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2020MXN ($) | Dec. 31, 2019GBP (£) | Dec. 31, 2019BRL (R$) | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019MXN ($) | Oct. 31, 2018MXN ($) | |
Hedging derivatives | ||||||||||||||
Valuation adjustments, cash flow hedge | $ (376) | $ 29 | $ (882) | |||||||||||
Other comprehensive income under Valuation adjustments - Cash flow hedges | $ (13) | $ 17 | ||||||||||||
Cash flow hedges | ||||||||||||||
Hedging derivatives | ||||||||||||||
Valuation adjustments, cash flow hedge | $ (376) | $ 29 | $ (882) | |||||||||||
Other comprehensive income under Valuation adjustments - Cash flow hedges | (13) | 17 | ||||||||||||
Cash flow hedges | Tier II Subordinated Capital Notes, Issued 2013 | ||||||||||||||
Hedging derivatives | ||||||||||||||
Discontinued hedge | $ 1,045 | |||||||||||||
Cash flow hedges | Interest rate risk | Unsecured notes | Mexican peso | ||||||||||||||
Hedging derivatives | ||||||||||||||
Nominal Value | 11,311 | 11,311 | ||||||||||||
Cash flow hedges | Currency risk | Unsecured notes | US dollar | ||||||||||||||
Hedging derivatives | ||||||||||||||
Nominal Value | $ 150 | 2,830 | ||||||||||||
Cash flow hedges | Currency risk | Loans and receivables | US dollar | ||||||||||||||
Hedging derivatives | ||||||||||||||
Nominal Value | $ 69 | 872 | 166 | 2,358 | ||||||||||
Cash flow hedges | Currency risk | Loans and receivables | Euro | ||||||||||||||
Hedging derivatives | ||||||||||||||
Nominal Value | € 39 | 655 | € 104 | 1,854 | ||||||||||
Cash flow hedges | Currency risk | Loans and receivables | Pound sterling | ||||||||||||||
Hedging derivatives | ||||||||||||||
Nominal Value | £ 34 | 777 | ||||||||||||
Cash flow hedges | Currency risk | Senior Unsecured Notes | US dollar | ||||||||||||||
Hedging derivatives | ||||||||||||||
Nominal Value | 543 | 10,800 | 543 | 10,234 | ||||||||||
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 | € 116 | 2,284 | € 136 | 2,657 | ||||||||||
Cash flow hedges | Currency risk | UMS | Pound sterling | ||||||||||||||
Hedging derivatives | ||||||||||||||
Nominal Value | £ 10 | 260 | £ 10 | 260 | ||||||||||
Cash flow hedges | Currency risk | Brazilian Government Notes | US dollar | ||||||||||||||
Hedging derivatives | ||||||||||||||
Nominal Value | $ 1,137 | 32,122 | $ 1,726 | 37,743 | ||||||||||
Cash flow hedges | Currency risk | Brazilian Government Notes | Brazilian real | ||||||||||||||
Hedging derivatives | ||||||||||||||
Nominal Value | R$ 6662 | $ 22,644 | R$ 6919 | $ 32,372 |
Hedging derivatives - Reconcili
Hedging derivatives - Reconciliation of valuation adjustments (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Hedging derivatives | |||
Balance at January 1 | $ (276) | ||
Valuation adjustments, cash flow hedge | (376) | $ 29 | $ (882) |
Amounts reclassified to the consolidated income statement, Cash flow hedge | (43) | (9) | (40) |
Income tax, Cash flow hedge | 126 | (6) | 276 |
Balance at December 31 | (569) | (276) | |
Cash flow hedges | |||
Hedging derivatives | |||
Balance at January 1 | (276) | (290) | 356 |
Valuation adjustments, cash flow hedge | (376) | 29 | (882) |
Amounts reclassified to the consolidated income statement, Cash flow hedge | (43) | (9) | (40) |
Income from cash flow hedging derivatives swaps and discontinued cash flow hedge accounting | (43) | (11) | (42) |
Cash flow hedges ineffectiveness | 2 | 2 | |
Income tax, Cash flow hedge | 126 | (6) | 276 |
Balance at December 31 | (569) | $ (276) | $ (290) |
Cash flows to be received | 1,702 | ||
Cash flows to be paid | (2,515) | ||
Cash flow hedges | Less than 3 Months | |||
Hedging derivatives | |||
Cash flows to be received | 264 | ||
Cash flows to be paid | (670) | ||
Cash flow hedges | 3 to 12 months | |||
Hedging derivatives | |||
Cash flows to be received | 698 | ||
Cash flows to be paid | (884) | ||
Cash flow hedges | Between one and five years | |||
Hedging derivatives | |||
Cash flows to be received | 739 | ||
Cash flows to be paid | (959) | ||
Cash flow hedges | More than five years | |||
Hedging derivatives | |||
Cash flows to be received | 1 | ||
Cash flows to be paid | $ (2) |
Non-current assets held for s_3
Non-current assets held for sale - Breakdown (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Non-current assets held for sale | |||
Non-current assets held for sale | $ 551 | $ 935 | $ 1,277 |
Gains/(losses) on disposal of non-current assets held for sale not classified as discontinued operations (net) | $ 9 | $ 42 | $ 38 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Non-current assets held for sale | |||
Balances at beginning of year | $ 935 | $ 1,277 | |
Additions | 172 | 146 | |
Disposals | (437) | (118) | |
Impairment losses | (119) | (370) | $ (5) |
Balances at end of year | 551 | 935 | 1,277 |
Non-current assets held for sale. | |||
Non-current assets held for sale | |||
Impairment losses | $ (119) | $ (370) | $ (5) |
Tangible assets - Changes in th
Tangible assets - Changes in the consolidated balance sheet (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in Tangible assets | ||
Balances at the beginning of the year | $ 10,542 | |
Balances at the end of the year | 12,206 | $ 10,542 |
Tangible assets pledged as security for liabilities | 0 | |
Buildings | ||
Changes in Tangible assets | ||
Balances at the beginning of the year | 5,898 | |
Balances at the end of the year | 6,494 | 5,898 |
IT equipment and fixtures | ||
Changes in Tangible assets | ||
Balances at the beginning of the year | 2,776 | |
Balances at the end of the year | 3,465 | 2,776 |
Furniture and vehicles | ||
Changes in Tangible assets | ||
Balances at the beginning of the year | 1,166 | |
Balances at the end of the year | 1,561 | 1,166 |
Other fixtures | ||
Changes in Tangible assets | ||
Balances at the beginning of the year | 702 | |
Balances at the end of the year | 686 | 702 |
Gross carrying amount | ||
Changes in Tangible assets | ||
Balances at the beginning of the year | 19,829 | 16,828 |
Additions | 3,429 | 3,208 |
Disposals | (171) | (207) |
Balances at the end of the year | 23,087 | 19,829 |
Gross carrying amount | Buildings | ||
Changes in Tangible assets | ||
Balances at the beginning of the year | 11,724 | |
Balances at the end of the year | 13,125 | 11,724 |
Gross carrying amount | IT equipment and fixtures | ||
Changes in Tangible assets | ||
Balances at the beginning of the year | 4,776 | |
Balances at the end of the year | 6,059 | 4,776 |
Gross carrying amount | Furniture and vehicles | ||
Changes in Tangible assets | ||
Balances at the beginning of the year | 2,627 | |
Balances at the end of the year | 3,217 | 2,627 |
Gross carrying amount | Other fixtures | ||
Changes in Tangible assets | ||
Balances at the beginning of the year | 702 | |
Balances at the end of the year | 686 | 702 |
Accumulated depreciation and amortization | ||
Changes in Tangible assets | ||
Balances at the beginning of the year | (9,287) | (8,114) |
Additions | (1,766) | (1,378) |
Disposals | 172 | 205 |
Balances at the end of the year | (10,881) | (9,287) |
Accumulated depreciation and amortization | Buildings | ||
Changes in Tangible assets | ||
Balances at the beginning of the year | (5,826) | |
Balances at the end of the year | (6,631) | (5,826) |
Accumulated depreciation and amortization | IT equipment and fixtures | ||
Changes in Tangible assets | ||
Balances at the beginning of the year | (2,000) | |
Balances at the end of the year | (2,594) | (2,000) |
Accumulated depreciation and amortization | Furniture and vehicles | ||
Changes in Tangible assets | ||
Balances at the beginning of the year | (1,461) | |
Balances at the end of the year | $ (1,656) | $ (1,461) |
Tangible assets - Breakdown by
Tangible assets - Breakdown by asset class of Tangible assets for own use (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Tangible assets for own use | |||
Tangible assets | $ 12,206 | $ 10,542 | |
Gross carrying amount | |||
Tangible assets for own use | |||
Tangible assets | 23,087 | 19,829 | $ 16,828 |
Accumulated depreciation and amortization | |||
Tangible assets for own use | |||
Tangible assets | (10,881) | (9,287) | $ (8,114) |
Buildings | |||
Tangible assets for own use | |||
Tangible assets | 6,494 | 5,898 | |
Buildings | Gross carrying amount | |||
Tangible assets for own use | |||
Tangible assets | 13,125 | 11,724 | |
Buildings | Accumulated depreciation and amortization | |||
Tangible assets for own use | |||
Tangible assets | (6,631) | (5,826) | |
IT equipment and fixtures | |||
Tangible assets for own use | |||
Tangible assets | 3,465 | 2,776 | |
IT equipment and fixtures | Gross carrying amount | |||
Tangible assets for own use | |||
Tangible assets | 6,059 | 4,776 | |
IT equipment and fixtures | Accumulated depreciation and amortization | |||
Tangible assets for own use | |||
Tangible assets | (2,594) | (2,000) | |
Furniture and vehicles | |||
Tangible assets for own use | |||
Tangible assets | 1,561 | 1,166 | |
Furniture and vehicles | Gross carrying amount | |||
Tangible assets for own use | |||
Tangible assets | 3,217 | 2,627 | |
Furniture and vehicles | Accumulated depreciation and amortization | |||
Tangible assets for own use | |||
Tangible assets | (1,656) | (1,461) | |
Other fixtures | |||
Tangible assets for own use | |||
Tangible assets | 686 | 702 | |
Other fixtures | Gross carrying amount | |||
Tangible assets for own use | |||
Tangible assets | $ 686 | $ 702 |
Leases - Right of use assets (D
Leases - Right of use assets (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Right-of-use assets | ||
Balance at beginning of period | $ 5,611 | $ 6,734 |
Remeasurement of right-of-use assets | 214 | (684) |
Additions in right-of-use assets | 1,323 | 957 |
Depreciation | (1,476) | (1,396) |
Disposals | (29) | |
Balance at end of period | 5,643 | 5,611 |
Branch offices | ||
Right-of-use assets | ||
Balance at beginning of period | 5,583 | 6,691 |
Remeasurement of right-of-use assets | 214 | (684) |
Additions in right-of-use assets | 1,079 | 957 |
Depreciation | (1,419) | (1,381) |
Disposals | (22) | |
Balance at end of period | 5,435 | 5,583 |
IT equipment | ||
Right-of-use assets | ||
Balance at beginning of period | 9 | 12 |
Depreciation | (2) | (3) |
Disposals | (7) | |
Balance at end of period | 9 | |
Furniture and equipment | ||
Right-of-use assets | ||
Balance at beginning of period | 19 | 31 |
Additions in right-of-use assets | 244 | |
Depreciation | (55) | (12) |
Balance at end of period | $ 208 | $ 19 |
Leases - Activity in finance le
Leases - Activity in finance lease liabilities (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease liabilities | ||
Balance at beginning of period | $ 5,919 | $ 6,734 |
Interest paid on lease liabilities | 679 | 729 |
New contracts | 1,271 | 957 |
Remeasurement on leases liabilities | 198 | (684) |
Disposals | (29) | |
Payments | (1,907) | (1,817) |
Balance at end of period | $ 6,131 | $ 5,919 |
Leases - Maturity of lease paym
Leases - Maturity of lease payments (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Undiscounted contractual maturities | |||
Gross lease liabilities | $ 8,439 | ||
Lease liabilities included in the financial statement of financial position | 6,131 | $ 5,919 | $ 6,734 |
Current lease liabilities | 975 | ||
Long-term lease liabilities | 5,156 | ||
2021 | |||
Undiscounted contractual maturities | |||
Gross lease liabilities | 1,219 | ||
1 to 3 years | |||
Undiscounted contractual maturities | |||
Gross lease liabilities | 2,403 | ||
3 to 5 years | |||
Undiscounted contractual maturities | |||
Gross lease liabilities | 1,801 | ||
More than five years | |||
Undiscounted contractual maturities | |||
Gross lease liabilities | $ 3,016 |
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) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases | ||
Interest on lease liabilities | $ 679 | $ 729 |
Expense relating to short-term leases | 108 | |
Expense relating to leases of low-value assets that are not shown above as short-term leases | 94 | |
Cash flows from lease liabilities, Total cash flows | $ (2,109) |
Intangible assets - Goodwill -
Intangible assets - Goodwill - Breakdown based on CGUs to which Goodwill has been allocated and Changes (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Intangible assets - Goodwill | ||
Goodwill | $ 1,734 | $ 1,734 |
Intangible assets - Goodwill _2
Intangible assets - Goodwill - Assumptions used in the calculation of impairment (Details) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020MXN ($) | Dec. 31, 2020 | |
Goodwill | ||
Period of projection of cash flows | 10 years | |
Discount rate (as a percent) | 7.54% | |
Perpetual growth (as a percent) | 0.00% | |
Risk free rate (as a percent) | 6.26% | |
Beta | 0.779 | |
Equity Risk Premium (as a percent) | 6.38% | |
Goodwill impairment | $ 0 | |
Cost of Equity, measurement input | ||
Goodwill | ||
Significant unobservable input, assets | 0.1123 | |
Cost of Debt, measurement input | ||
Goodwill | ||
Significant unobservable input, assets | 0.0527 | |
Capital Structure, Equity, measurement input | ||
Goodwill | ||
Significant unobservable input, assets | 0.38 | |
Capital Structure, Debt, measurement input | ||
Goodwill | ||
Significant unobservable input, assets | 0.62 |
Intangible assets - Other int_3
Intangible assets - Other intangible assets - Changes (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in Other intangible assets | ||
Balances at beginning of the year | $ 7,098 | |
Balances at end of the year | 6,873 | $ 7,098 |
Gross carrying amount | ||
Changes in Other intangible assets | ||
Balances at beginning of the year | 16,989 | 13,753 |
Additions | 2,248 | 3,236 |
Balances at end of the year | 19,237 | 16,989 |
Accumulated depreciation, amortisation and impairment | ||
Changes in Other intangible assets | ||
Balances at beginning of the year | (9,891) | (7,443) |
Additions | (2,473) | (2,448) |
Balances at end of the year | $ (12,364) | $ (9,891) |
Intangible assets - Other int_4
Intangible assets - Other intangible assets - Breakdown (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible assets - Other intangible assets | |||
Other intangible assets | $ 6,873 | $ 7,098 | |
Intangible assets with restricted title or pledged as security for liabilities | 0 | 0 | |
Gross carrying amount | |||
Intangible assets - Other intangible assets | |||
Other intangible assets | 19,237 | 16,989 | $ 13,753 |
Accumulated depreciation and amortization | |||
Intangible assets - Other intangible assets | |||
Other intangible assets | $ (12,364) | $ (9,891) | |
IT developments | |||
Intangible assets - Other intangible assets | |||
Estimated useful life | 3 years | 3 years | |
Other intangible assets | $ 6,826 | $ 7,045 | |
IT developments | Gross carrying amount | |||
Intangible assets - Other intangible assets | |||
Other intangible assets | 19,149 | 16,903 | |
IT developments | Accumulated depreciation and amortization | |||
Intangible assets - Other intangible assets | |||
Other intangible assets | $ (12,323) | $ (9,858) | |
Other intangibles | |||
Intangible assets - Other intangible assets | |||
Estimated useful life | 10 years | 10 years | |
Other intangible assets | $ 47 | $ 53 | |
Other intangibles | Gross carrying amount | |||
Intangible assets - Other intangible assets | |||
Other intangible assets | 88 | 86 | |
Other intangibles | Accumulated depreciation and amortization | |||
Intangible assets - Other intangible assets | |||
Other intangible assets | $ (41) | $ (33) |
Other assets (Details)
Other assets (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other assets | ||
Credit and debit card operating balances | $ 2,337 | $ 2,577 |
Insurance commission receivables | 1,672 | 1,278 |
Prepaid expenses | 974 | 695 |
Other miscellaneous assets | 10,776 | 6,623 |
Other assets, total | $ 15,759 | $ 11,173 |
Other assets - Maturity (Detail
Other assets - Maturity (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Other Assets [Line Items] | ||
Credit and debit card operating balances | $ 2,337 | $ 2,577 |
Insurance commission receivables | 1,672 | 1,278 |
Prepaid expenses | 974 | 695 |
Other miscellaneous assets | 10,776 | 6,623 |
Other assets, total | 15,759 | $ 11,173 |
Gross carrying amount | ||
Schedule of Other Assets [Line Items] | ||
Credit and debit card operating balances | 2,337 | |
Insurance commission receivables | 1,672 | |
Prepaid expenses | 974 | |
Other miscellaneous assets | 11,711 | |
Other assets, total | 16,694 | |
Impairment losses | Lifetime expected credit losses [member] | ||
Schedule of Other Assets [Line Items] | ||
Other miscellaneous assets | $ (935) | |
Current | ||
Schedule of Other Assets [Line Items] | ||
Expected credit loss rate | 4.00% | |
Other assets, total | $ 7,395 | |
Current | Gross carrying amount | ||
Schedule of Other Assets [Line Items] | ||
Credit and debit card operating balances | 2,130 | |
Insurance commission receivables | 59 | |
Prepaid expenses | 968 | |
Other miscellaneous assets | 4,577 | |
Other assets, total | 7,734 | |
Current | Impairment losses | Lifetime expected credit losses [member] | ||
Schedule of Other Assets [Line Items] | ||
Other miscellaneous assets | $ (339) | |
1 to 30 Days | ||
Schedule of Other Assets [Line Items] | ||
Expected credit loss rate | 2.00% | |
Other assets, total | $ 2,547 | |
1 to 30 Days | Gross carrying amount | ||
Schedule of Other Assets [Line Items] | ||
Credit and debit card operating balances | 101 | |
Insurance commission receivables | 198 | |
Other miscellaneous assets | 2,303 | |
Other assets, total | 2,602 | |
1 to 30 Days | Impairment losses | Lifetime expected credit losses [member] | ||
Schedule of Other Assets [Line Items] | ||
Other miscellaneous assets | $ (55) | |
31 to 60 Days | ||
Schedule of Other Assets [Line Items] | ||
Expected credit loss rate | 1.00% | |
Other assets, total | $ 2,577 | |
31 to 60 Days | Gross carrying amount | ||
Schedule of Other Assets [Line Items] | ||
Credit and debit card operating balances | 30 | |
Insurance commission receivables | 187 | |
Other miscellaneous assets | 2,397 | |
Other assets, total | 2,614 | |
31 to 60 Days | Impairment losses | Lifetime expected credit losses [member] | ||
Schedule of Other Assets [Line Items] | ||
Other miscellaneous assets | $ (37) | |
More than 90 days | ||
Schedule of Other Assets [Line Items] | ||
Expected credit loss rate | 13.00% | |
Other assets, total | $ 3,240 | |
More than 90 days | Gross carrying amount | ||
Schedule of Other Assets [Line Items] | ||
Credit and debit card operating balances | 76 | |
Insurance commission receivables | 1,228 | |
Prepaid expenses | 6 | |
Other miscellaneous assets | 2,434 | |
Other assets, total | 3,744 | |
More than 90 days | Impairment losses | Lifetime expected credit losses [member] | ||
Schedule of Other Assets [Line Items] | ||
Other miscellaneous assets | $ (504) |
Deposits from the Central Ban_3
Deposits from the Central Bank and Deposits from credit institutions - Classification (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deposits | ||
Other financial liabilities at fair value through profit or loss | $ 211,514 | $ 273,725 |
Financial liabilities at amortized cost | 1,111,955 | 864,266 |
Total financial liabilities | 1,644,023 | 1,299,114 |
Deposits from the Central Bank and credit institutions | ||
Deposits | ||
Other financial liabilities at fair value through profit or loss | 79,859 | 141,263 |
Financial liabilities at amortized cost | 187,503 | 72,969 |
Total financial liabilities | $ 267,362 | $ 214,232 |
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, 2020 | Dec. 31, 2019 |
Type: | ||
Financial instruments received as collateral | $ 65,177 | $ 82,342 |
Cash collateral received | 23,052 | 16,759 |
Total financial liabilities | 1,644,023 | 1,299,114 |
Deposits from the Central Bank and credit institutions | ||
Type: | ||
Reciprocal accounts | 9,418 | 7,272 |
Time deposits | 5,538 | 8,914 |
Overnight deposits | 23,826 | 26,710 |
Repurchase agreements | 206,188 | 141,263 |
Other accounts | 22,329 | 29,961 |
Cash collateral received | 8,960 | |
Others | 22,329 | 21,001 |
Accrued interest | 63 | 112 |
Total financial liabilities | 267,362 | 214,232 |
Mexican peso | Deposits from the Central Bank and credit institutions | ||
Type: | ||
Total financial liabilities | 239,831 | 195,604 |
US dollar | Deposits from the Central Bank and credit institutions | ||
Type: | ||
Total financial liabilities | 27,494 | 18,565 |
Other currencies | Deposits from the Central Bank and credit institutions | ||
Type: | ||
Total financial liabilities | $ 37 | $ 63 |
Customer deposits - Classificat
Customer deposits - Classification (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Customer deposits | ||
Other financial liabilities at fair value through profit or loss | $ 211,514 | $ 273,725 |
Financial liabilities at amortized cost | 1,111,955 | 864,266 |
Total financial liabilities | 1,644,023 | 1,299,114 |
Customer deposits | ||
Customer deposits | ||
Other financial liabilities at fair value through profit or loss | 130,292 | 129,216 |
Financial liabilities at amortized cost | 742,201 | 630,055 |
Total financial liabilities | $ 872,493 | $ 759,271 |
Customer deposits - By type and
Customer deposits - By type and currency (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Demand deposits | ||
Cash collateral received | $ 23,052 | $ 16,759 |
Time deposits: | ||
Total financial liabilities | 1,644,023 | 1,299,114 |
Customer deposits | ||
Type: | ||
Repurchase agreements | 138,616 | 129,216 |
Demand deposits | ||
Current accounts | 499,458 | 424,563 |
Other deposits | 43,860 | 24,010 |
Cash collateral received | 23,052 | 7,799 |
Others | 20,808 | 16,211 |
Time deposits: | ||
Fixed-term deposits | 189,686 | 179,768 |
Accrued interest | 873 | 1,714 |
Total financial liabilities | 872,493 | 759,271 |
Customer deposits | Mexican peso | ||
Time deposits: | ||
Total financial liabilities | 785,713 | 677,634 |
Customer deposits | US dollar | ||
Time deposits: | ||
Total financial liabilities | 86,780 | 81,631 |
Customer deposits | Other currencies | ||
Time deposits: | ||
Total financial liabilities | 6 | |
Financial instrument in connection with OTC derivative transactions | Deposits | ||
Demand deposits | ||
Cash collateral received | 23,052 | 16,759 |
Financial instrument in connection with OTC derivative transactions | Customer deposits | ||
Demand deposits | ||
Cash collateral received | $ 23,052 | $ 7,799 |
Marketable debt securities - Br
Marketable debt securities - Breakdown (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Marketable debt securities | ||
Other financial liabilities designated at fair value through profit or loss | $ 211,514 | $ 273,725 |
Financial liabilities at amortized cost | 1,111,955 | 864,266 |
Total financial liabilities | 1,644,023 | 1,299,114 |
Marketable debt securities | ||
Marketable debt securities | ||
Other financial liabilities designated at fair value through profit or loss | 1,363 | 3,246 |
Financial liabilities at amortized cost | 130,754 | 111,211 |
Total financial liabilities | 132,117 | 114,457 |
Marketable debt securities | Mexican peso | ||
Marketable debt securities | ||
Total financial liabilities | 76,242 | 89,233 |
Marketable debt securities | US dollar | ||
Marketable debt securities | ||
Total financial liabilities | 55,875 | 25,224 |
Certificates of deposit (unsecured) | ||
Marketable debt securities | ||
Total financial liabilities | 34,544 | 37,823 |
Senior Unsecured Notes | ||
Marketable debt securities | ||
Total financial liabilities | 55,076 | 18,849 |
Structured bank bonds | ||
Marketable debt securities | ||
Total financial liabilities | 2,139 | 4,797 |
Promissory notes | ||
Marketable debt securities | ||
Total financial liabilities | 16,924 | 23,314 |
Unsecured bonds | ||
Marketable debt securities | ||
Total financial liabilities | $ 23,434 | $ 29,674 |
Marketable debt securities - Ch
Marketable debt securities - Changes in financial liabilities at fair value (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | $ 1,299,114 | |
Financial liabilities at end of period | 1,644,023 | $ 1,299,114 |
Marketable debt securities | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 114,457 | |
Financial liabilities at end of period | 132,117 | 114,457 |
Marketable debt securities | Financial liabilities at fair value through profit or loss | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 3,246 | 4,750 |
Issues | 518 | 983 |
Redemptions | (2,380) | (2,914) |
Changes in fair value recognized in profit or loss | (21) | 427 |
Financial liabilities at end of period | 1,363 | 3,246 |
Structured bank bonds | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 4,797 | |
Financial liabilities at end of period | 2,139 | 4,797 |
Structured bank bonds | Financial liabilities at fair value through profit or loss | ||
Changes in financial instruments, Liabilities | ||
Issues | 518 | 983 |
Redemptions | (2,380) | (2,914) |
Parent | Marketable debt securities | Financial liabilities at fair value through profit or loss | ||
Changes in financial instruments, Liabilities | ||
Redemptions | (2,380) | (2,914) |
Parent | Structured bank bonds | Financial liabilities at fair value through profit or loss | ||
Changes in financial instruments, Liabilities | ||
Issues | $ 518 | $ 983 |
Marketable debt securities - _2
Marketable debt securities - Changes in financial liabilities at amortized cost (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | $ 1,299,114 | |
Financial liabilities at end of period | 1,644,023 | $ 1,299,114 |
Marketable debt securities | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 114,457 | |
Financial liabilities at end of period | 132,117 | 114,457 |
Marketable debt securities | Financial liabilities at amortized cost | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 111,211 | 98,312 |
Issues | 1,219,638 | 1,668,170 |
Redemptions | (1,193,956) | (1,654,767) |
Accrued interest | (114) | 609 |
Effect of changes in foreign exchange rates | (6,025) | (1,113) |
Financial liabilities at end of period | 130,754 | 111,211 |
Certificates of deposit (unsecured) | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 37,823 | |
Financial liabilities at end of period | 34,544 | 37,823 |
Certificates of deposit (unsecured) | Financial liabilities at amortized cost | ||
Changes in financial instruments, Liabilities | ||
Issues | 43,260 | 42,195 |
Redemptions | (46,436) | (26,883) |
Structured bank bonds | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 4,797 | |
Financial liabilities at end of period | 2,139 | 4,797 |
Structured bank bonds | Financial liabilities at amortized cost | ||
Changes in financial instruments, Liabilities | ||
Issues | 8,989 | 24,728 |
Redemptions | (9,751) | (23,765) |
Senior Unsecured Notes | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 18,849 | |
Financial liabilities at end of period | 55,076 | 18,849 |
Senior Unsecured Notes | Financial liabilities at amortized cost | ||
Changes in financial instruments, Liabilities | ||
Issues | 41,827 | |
Promissory notes | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 23,314 | |
Financial liabilities at end of period | 16,924 | 23,314 |
Promissory notes | Financial liabilities at amortized cost | ||
Changes in financial instruments, Liabilities | ||
Issues | 1,125,562 | 1,591,247 |
Redemptions | (1,131,578) | (1,604,004) |
Unsecured bonds | ||
Changes in financial instruments, Liabilities | ||
Financial liabilities at beginning of period | 29,674 | |
Financial liabilities at end of period | 23,434 | 29,674 |
Unsecured bonds | Financial liabilities at amortized cost | ||
Changes in financial instruments, Liabilities | ||
Issues | 10,000 | |
Redemptions | (6,191) | |
Mortgage-backed bonds | Financial liabilities at amortized cost | ||
Changes in financial instruments, Liabilities | ||
Redemptions | (115) | |
Parent | Marketable debt securities | Financial liabilities at amortized cost | ||
Changes in financial instruments, Liabilities | ||
Issues | 1,219,638 | 1,668,170 |
Redemptions | $ (1,193,956) | (1,654,652) |
Santander Vivienda, S.A. de C.V., SOFOM, E.R. | Marketable debt securities | Financial liabilities at amortized cost | ||
Changes in financial instruments, Liabilities | ||
Redemptions | $ (115) |
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 | Dec. 31, 2020 | Apr. 14, 2020 | |
Marketable debt securities | 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 | |||||
Senior Unsecured Note, April 17, 2025 | |||||||
Financial liabilities | |||||||
Notes issued | $ 1,750 | ||||||
Interest rate (as a percent) | 5.375% | 5.375% |
Marketable debt securities - Ce
Marketable debt securities - Certificates of deposit (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial liabilities | ||
Total financial liabilities | $ 1,644,023 | $ 1,299,114 |
Marketable debt securities | ||
Financial liabilities | ||
Total financial liabilities | 132,117 | 114,457 |
Certificates of deposit (unsecured) | ||
Financial liabilities | ||
Financial liabilities | 34,431 | 37,651 |
Accrued interest | 113 | 172 |
Total financial liabilities | 34,544 | 37,823 |
Certificates of deposit December 3, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Interest rate (as a percent) | 8.14% | |
Certificates of deposit October 8, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 2,000 | |
Interest rate (as a percent) | 8.14% | |
Certificates of deposit September 27, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 1,500 | |
Interest rate (as a percent) | 8.14% | |
Certificates of deposit October 11, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Interest rate (as a percent) | 8.15% | |
Certificates of deposit September 13, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 1,200 | |
Interest rate (as a percent) | 8.14% | |
Certificates of deposit September 9, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Interest rate (as a percent) | 8.16% | |
Certificates of deposit January 28, 2021 - One | ||
Financial liabilities | ||
Financial liabilities | $ 250 | |
Interest rate (as a percent) | 8.16% | |
Certificates of deposit January 28, 2021 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 700 | |
Interest rate (as a percent) | 8.15% | |
Certificates of deposit July 15, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 500 | |
Interest rate (as a percent) | 8.15% | |
Certificates of deposit August 17, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 2,500 | |
Interest rate (as a percent) | 8.15% | |
Certificates of deposit August 12, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 1,500 | |
Interest rate (as a percent) | 8.17% | |
Certificates of deposit August 19, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 2,000 | |
Interest rate (as a percent) | 8.17% | |
Certificates of deposit July 9, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Interest rate (as a percent) | 8.12% | |
Certificates of deposit August 6, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 1,075 | |
Interest rate (as a percent) | 8.18% | |
Certificates of deposit July 30, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Interest rate (as a percent) | 8.36% | |
Certificates of deposit July 22, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 50 | |
Interest rate (as a percent) | 8.38% | |
Certificates of deposit July 8, 2021 - One | ||
Financial liabilities | ||
Financial liabilities | $ 600 | |
Interest rate (as a percent) | 8.38% | |
Certificates of deposit July 8, 2021 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Interest rate (as a percent) | 8.38% | |
Certificates of deposit June 15, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 500 | |
Interest rate (as a percent) | 8.39% | |
Certificates of deposit June 10, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Interest rate (as a percent) | 8.40% | |
Certificates of deposit May 20, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 600 | |
Interest rate (as a percent) | 8.13% | |
Certificates of deposit June 3, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Interest rate (as a percent) | 8.14% | |
Certificates of deposit May 13, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 460 | |
Interest rate (as a percent) | 8.14% | |
Certificates of deposit May 10, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 400 | |
Interest rate (as a percent) | 8.12% | |
Certificates of deposit May 7, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 900 | |
Interest rate (as a percent) | 8.38% | |
Certificates of deposit April 21, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 2,000 | |
Interest rate (as a percent) | 8.12% | |
Certificates of deposit February 24, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Interest rate (as a percent) | 8.38% | |
Certificates of deposit March 5, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Interest rate (as a percent) | 8.12% | |
Certificates of deposit February 12, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 2,000 | |
Interest rate (as a percent) | 8.12% | |
Certificates of deposit January 26, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 2,000 | |
Interest rate (as a percent) | 8.44% | |
Certificates of deposit January 12, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 1,500 | |
Interest rate (as a percent) | 8.34% | |
Certificates of deposit March 18, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 17 | |
Interest rate (as a percent) | 8.12% | |
Certificates of deposit March 9, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 3 | |
Interest rate (as a percent) | 8.12% | |
Certificates of deposit January 11, 2021 - One | ||
Financial liabilities | ||
Financial liabilities | $ 30 | |
Interest rate (as a percent) | 8.89% | |
Certificates of deposit January 11, 2021 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 60 | |
Interest rate (as a percent) | 8.89% | |
Certificates of deposit January 11, 2021 - Three | ||
Financial liabilities | ||
Financial liabilities | $ 54 | |
Interest rate (as a percent) | 8.90% | |
Certificates of deposit January 11, 2021 - Four | ||
Financial liabilities | ||
Financial liabilities | $ 32 | |
Interest rate (as a percent) | 8.89% | |
Certificates of deposit December 16, 2020 - One | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Interest rate (as a percent) | 7.74% | |
Certificates of deposit December 16, 2020 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 500 | |
Interest rate (as a percent) | 7.59% | |
Certificates of deposit December 11, 2020 - One | ||
Financial liabilities | ||
Financial liabilities | $ 300 | |
Interest rate (as a percent) | 7.60% | |
Certificates of deposit December 11, 2020 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 700 | |
Interest rate (as a percent) | 7.75% | |
Certificates of deposit November 9, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,100 | |
Interest rate (as a percent) | 7.78% | |
Certificates of deposit September 24, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 500 | |
Interest rate (as a percent) | 7.47% | |
Certificates of deposit November 20, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Interest rate (as a percent) | 7.72% | |
Certificates of deposit October 26, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 2,000 | |
Interest rate (as a percent) | 7.59% | |
Certificates of deposit October 8, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 2,500 | |
Interest rate (as a percent) | 7.79% | |
Certificates of deposit September 30, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 250 | |
Interest rate (as a percent) | 7.58% | |
Certificates of deposit September 15, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 200 | |
Interest rate (as a percent) | 7.60% | |
Certificates of deposit September 11, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,150 | |
Interest rate (as a percent) | 7.60% | |
Certificates of deposit September 2, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 2,000 | |
Interest rate (as a percent) | 7.76% | |
Certificates of deposit August 27, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,300 | |
Interest rate (as a percent) | 7.64% | |
Certificates of deposit July 9, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 2,000 | |
Interest rate (as a percent) | 7.59% | |
Certificates of deposit September 25, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 500 | |
Interest rate (as a percent) | 7.72% | |
Certificates of deposit July 20, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Interest rate (as a percent) | 7.89% | |
Certificates of deposit July 3, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,600 | |
Interest rate (as a percent) | 7.94% | |
Certificates of deposit June 30, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Interest rate (as a percent) | 7.74% | |
Certificates of deposit June 18, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Interest rate (as a percent) | 7.81% | |
Certificates of deposit June 5, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 4,000 | |
Interest rate (as a percent) | 7.74% | |
Certificates of deposit June 4, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,500 | |
Interest rate (as a percent) | 7.59% | |
Certificates of deposit May 6, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 2,500 | |
Interest rate (as a percent) | 7.76% | |
Certificates of deposit April 8, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 900 | |
Interest rate (as a percent) | 7.95% | |
Certificates of deposit March 24, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,500 | |
Interest rate (as a percent) | 7.59% | |
Certificates of deposit March 12, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 300 | |
Interest rate (as a percent) | 7.75% | |
Certificates of deposit February 14, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 400 | |
Interest rate (as a percent) | 7.59% | |
Certificates of deposit February 11, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Interest rate (as a percent) | 7.59% | |
Certificates of deposit February 10, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 125 | |
Interest rate (as a percent) | 7.77% | |
Certificates of deposit February 7, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 400 | |
Interest rate (as a percent) | 7.77% | |
Certificates of deposit February 13, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 300 | |
Interest rate (as a percent) | 7.75% | |
Certificates of deposit January 22, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 50 | |
Interest rate (as a percent) | 7.54% | |
Certificates of deposit January 10, 2020 - One | ||
Financial liabilities | ||
Financial liabilities | $ 1,100 | |
Interest rate (as a percent) | 7.59% | |
Certificates of deposit January 10, 2020 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 400 | |
Interest rate (as a percent) | 7.77% | |
Certificates of deposit January 8, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,550 | |
Interest rate (as a percent) | 7.78% | |
Certificates of deposit March 3, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 13 | |
Interest rate (as a percent) | 1.75% | |
Certificates of deposit May 15, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 13 | |
Interest rate (as a percent) | 1.75% |
Marketable debt securities - Se
Marketable debt securities - Senior Unsecured Notes (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Apr. 14, 2020 | Dec. 31, 2019 |
Financial liabilities | |||
Total financial liabilities | $ 1,644,023 | $ 1,299,114 | |
Marketable debt securities | |||
Financial liabilities | |||
Total financial liabilities | 132,117 | 114,457 | |
Senior Unsecured Notes | |||
Financial liabilities | |||
Financial liabilities | 54,586 | ||
Accrued interest | 490 | 105 | |
Total financial liabilities | 55,076 | 18,849 | |
Senior Unsecured Notes November 9, 2022 | |||
Financial liabilities | |||
Financial liabilities | $ 19,827 | $ 18,744 | |
Interest rate (as a percent) | 4.125% | 4.125% | |
Senior Unsecured Note, April 17, 2025 | |||
Financial liabilities | |||
Financial liabilities | $ 34,759 | ||
Interest rate (as a percent) | 5.375% | 5.375% |
Marketable debt securities - St
Marketable debt securities - Structured bank bonds (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial liabilities | ||
Total financial liabilities | $ 1,644,023 | $ 1,299,114 |
Marketable debt securities | ||
Financial liabilities | ||
Total financial liabilities | 132,117 | 114,457 |
Structured bank bonds | ||
Financial liabilities | ||
Financial liabilities | 2,139 | 4,797 |
Total financial liabilities | 2,139 | 4,797 |
Structured bank bonds January 6, 2021 - One | ||
Financial liabilities | ||
Financial liabilities | $ 100 | |
Interest rate (as a percent) | 9.00% | |
Structured bank bonds October 27, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 78 | |
Structured bank bonds January 7, 2021 - One | ||
Financial liabilities | ||
Financial liabilities | $ 20 | |
Interest rate (as a percent) | 8.00% | |
Structured bank bonds January 13, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 60 | |
Interest rate (as a percent) | 4.42% | |
Structured bank bonds January 25, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 48 | |
Interest rate (as a percent) | 6.00% | |
Structured bank bonds January 12, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 139 | |
Interest rate (as a percent) | 7.00% | |
Structured bank bonds January 6, 2021 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 60 | |
Interest rate (as a percent) | 4.98% | |
Structured bank bonds January 7, 2021 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 100 | |
Interest rate (as a percent) | 7.00% | |
Structured bank bonds January 4, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 20 | |
Interest rate (as a percent) | 4.00% | |
Structured bank bonds January 11, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 30 | |
Interest rate (as a percent) | 7.15% | |
Structured bank bonds January 8, 2021 - One | ||
Financial liabilities | ||
Financial liabilities | $ 60 | |
Interest rate (as a percent) | 3.29% | |
Structured bank bonds January 6, 2021 - Three | ||
Financial liabilities | ||
Financial liabilities | $ 42 | |
Interest rate (as a percent) | 5.67% | |
Structured bank bonds January 8, 2021 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 10 | |
Interest rate (as a percent) | 7.00% | |
Structured bank bonds January 15, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 9 | |
Interest rate (as a percent) | 5.38% | |
Structured bank bonds November 1, 2021 - One | ||
Financial liabilities | ||
Financial liabilities | $ 14 | |
Structured bank bonds July 1, 2021 | ||
Financial liabilities | ||
Financial liabilities | 132 | |
Structured bank bonds July 29, 2021 | ||
Financial liabilities | ||
Financial liabilities | 139 | |
Structured bank bonds March 1, 2021 | ||
Financial liabilities | ||
Financial liabilities | 222 | |
Structured bank bonds March 17, 2022 - Four | ||
Financial liabilities | ||
Financial liabilities | 2 | 2 |
Structured bank bonds March 17, 2022 - Three | ||
Financial liabilities | ||
Financial liabilities | 6 | 6 |
Structured bank bonds March 17, 2022 - One | ||
Financial liabilities | ||
Financial liabilities | 4 | 7 |
Structured bank bonds March 17, 2022 - Two | ||
Financial liabilities | ||
Financial liabilities | 49 | 54 |
Structured bank bonds May 24, 2021 | ||
Financial liabilities | ||
Financial liabilities | 30 | 30 |
Structured bank bonds May 12, 2021 | ||
Financial liabilities | ||
Financial liabilities | 20 | 19 |
Structured bank bonds April 23, 2021 - One | ||
Financial liabilities | ||
Financial liabilities | 283 | 294 |
Structured bank bonds March 26, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 58 | $ 56 |
Interest rate (as a percent) | 9.50% | 9.50% |
Structured bank bonds March 8, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 167 | $ 159 |
Interest rate (as a percent) | 9.50% | 9.50% |
Structured bank bonds January 28, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 162 | $ 156 |
Interest rate (as a percent) | 9.50% | 10.00% |
Structured bank bonds March 3, 2021 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 5 | $ 5 |
Structured bank bonds March 16, 2021 | ||
Financial liabilities | ||
Financial liabilities | 6 | 6 |
Structured bank bonds March 3, 2021 - One | ||
Financial liabilities | ||
Financial liabilities | 23 | 24 |
Structured bank bonds February 23, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 41 | 46 |
Structured bank bonds November 9, 2020 - Two | ||
Financial liabilities | ||
Financial liabilities | 212 | |
Structured bank bonds October 26, 2020 | ||
Financial liabilities | ||
Financial liabilities | 441 | |
Structured bank bonds October 23, 2020 | ||
Financial liabilities | ||
Financial liabilities | 773 | |
Structured bank bonds November 5, 2020 | ||
Financial liabilities | ||
Financial liabilities | 9 | |
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 December 14, 2020 | ||
Financial liabilities | ||
Financial liabilities | 180 | |
Structured bank bonds November 23, 2020 | ||
Financial liabilities | ||
Financial liabilities | 115 | |
Structured bank bonds September 25, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 66 | |
Interest rate (as a percent) | 2.50% | |
Structured bank bonds September 18, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 20 | |
Interest rate (as a percent) | 2.50% | |
Structured bank bonds June 26, 2020 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 196 | |
Interest 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 | |
Interest rate (as a percent) | 5.00% | |
Structured bank bonds March 27, 2020 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 50 | |
Interest rate (as a percent) | 5.00% | |
Structured bank bonds February 20, 2020 - One | ||
Financial liabilities | ||
Financial liabilities | $ 11 | |
Structured bank bonds September 1, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 81 | |
Interest rate (as a percent) | 2.50% | |
Structured bank bonds September 30, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 25 | |
Interest rate (as a percent) | 2.50% | |
Structured bank bonds January 29, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 40 | |
Interest rate (as a percent) | 12.00% | |
Structured bank bonds January 27, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 25 | |
Interest rate (as a percent) | 12.00% | |
Structured bank bonds January 24, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 23 | |
Interest rate (as a percent) | 10.00% | |
Structured bank bonds January 21, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 500 | |
Interest rate (as a percent) | 12.00% | |
Structured bank bonds January 17, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 105 | |
Interest rate (as a percent) | 13.00% | |
Structured bank bonds January 16, 2020 - One | ||
Financial liabilities | ||
Financial liabilities | $ 15 | |
Interest rate (as a percent) | 11.69% | |
Structured bank bonds January 16, 2020 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 114 | |
Interest rate (as a percent) | 12.23% | |
Structured bank bonds January 16, 2020 - Three | ||
Financial liabilities | ||
Financial liabilities | $ 19 | |
Interest rate (as a percent) | 13.00% | |
Structured bank bonds January 16, 2020 - Four | ||
Financial liabilities | ||
Financial liabilities | $ 10 | |
Interest rate (as a percent) | 11.61% | |
Structured bank bonds January 14, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 27 | |
Interest rate (as a percent) | 12.00% | |
Structured bank bonds January 10, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 12 | |
Interest rate (as a percent) | 14.50% | |
Structured bank bonds January 7, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 40 | |
Interest rate (as a percent) | 10.48% | |
Structured bank bonds January 3, 2020 - One | ||
Financial liabilities | ||
Financial liabilities | $ 57 | |
Interest rate (as a percent) | 3.17% | |
Structured bank bonds January 3, 2020 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 57 | |
Interest rate (as a percent) | 3.02% |
Marketable debt securities - Pr
Marketable debt securities - Promissory notes (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial liabilities | ||
Total financial liabilities | $ 1,644,023 | $ 1,299,114 |
Marketable debt securities | ||
Financial liabilities | ||
Total financial liabilities | 132,117 | 114,457 |
Promissory notes | ||
Financial liabilities | ||
Financial liabilities | 16,876 | 22,891 |
Accrued interest | 48 | 423 |
Total financial liabilities | 16,924 | 23,314 |
Promissory notes January 4, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 73 | |
Interest rate (as a percent) | 4.20% | |
Promissory notes January 15, 2021 - One | ||
Financial liabilities | ||
Financial liabilities | $ 2,900 | |
Interest rate (as a percent) | 4.25% | |
Promissory notes January 15, 2021 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 5,800 | |
Interest rate (as a percent) | 4.25% | |
Promissory notes January 15, 2021 - Three | ||
Financial liabilities | ||
Financial liabilities | $ 6,000 | |
Interest rate (as a percent) | 4.25% | |
Promissory notes March 16, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 150 | |
Interest rate (as a percent) | 4.15% | |
Promissory notes January 13, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 150 | |
Interest rate (as a percent) | 4.10% | |
Promissory notes September 23, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Interest rate (as a percent) | 4.45% | |
Promissory notes March 17, 2021 | ||
Financial liabilities | ||
Financial liabilities | $ 803 | |
Interest rate (as a percent) | 4.60% | |
Promissory notes November 30, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 500 | |
Interest rate (as a percent) | 7.25% | |
Promissory notes October 5, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 2,000 | |
Interest rate (as a percent) | 7.23% | |
Promissory notes April 15, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,500 | |
Interest rate (as a percent) | 8.42% | |
Promissory notes April 13, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,500 | |
Interest rate (as a percent) | 8.42% | |
Promissory notes March 20, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Interest rate (as a percent) | 8.45% | |
Promissory notes March 19, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 921 | |
Interest rate (as a percent) | 8.45% | |
Promissory notes March 17, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 500 | |
Interest rate (as a percent) | 8.45% | |
Promissory notes March 9, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 500 | |
Interest rate (as a percent) | 8.55% | |
Promissory notes February 17, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 200 | |
Interest rate (as a percent) | 7.00% | |
Promissory notes January 17, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 2,700 | |
Interest rate (as a percent) | 7.25% | |
Promissory notes January 6, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 70 | |
Interest rate (as a percent) | 7.25% | |
Promissory notes January 3, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 11,500 | |
Interest rate (as a percent) | 7.25% |
Marketable debt securities - Un
Marketable debt securities - Unsecured bonds (Details) - MXN ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Financial liabilities | ||
Total financial liabilities | $ 1,644,023,000,000 | $ 1,299,114,000,000 |
Marketable debt securities | ||
Financial liabilities | ||
Total financial liabilities | 132,117,000,000 | 114,457,000,000 |
Unsecured bonds | ||
Financial liabilities | ||
Financial liabilities | 23,161,000,000 | 29,385,000,000 |
Accrued interest | 273,000,000 | 289,000,000 |
Total financial liabilities | 23,434,000,000 | 29,674,000,000 |
Unsecured bonds March 30, 2026 | ||
Financial liabilities | ||
Financial liabilities | $ 7,150,000,000 | 7,150,000,000 |
Accrued interest | 8.95 | |
Interest rate (as a percent) | 8.95% | |
Unsecured bonds September 1, 2026 | ||
Financial liabilities | ||
Financial liabilities | $ 3,000,000,000 | 3,000,000,000 |
Accrued interest | 7.19 | |
Interest rate (as a percent) | 7.19% | |
Unsecured bonds April 4, 2022 | ||
Financial liabilities | ||
Financial liabilities | $ 2,850,000,000 | $ 2,850,000,000 |
Unsecured bonds April 4, 2022 | TIIE | ||
Financial liabilities | ||
Spread on rate (as a percent) | 0.10% | 0.10% |
Unsecured bonds May 6, 2022 | ||
Financial liabilities | ||
Financial liabilities | $ 4,461,000,000 | $ 4,461,000,000 |
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 | $ 4,000,000,000 | $ 4,000,000,000 |
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 | $ 1,700,000,000 | $ 1,700,000,000 |
Interest rate (as a percent) | 8.91% | 8.91% |
Unsecured bonds February 10, 2020 | ||
Financial liabilities | ||
Financial liabilities | $ 6,224,000,000 | |
Unsecured bonds February 10, 2020 | Libor | ||
Financial liabilities | ||
Spread on rate (as a percent) | 0.20% |
Subordinated Liabilities - Acti
Subordinated Liabilities - Activity (Details) $ in Millions | Oct. 01, 2018 | Dec. 31, 2020USD ($) | Dec. 31, 2020MXN ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018MXN ($) |
Financial liabilities | |||||||
Outstanding issue amount | $ 1,644,023 | $ 1,299,114 | |||||
Subordinated liabilities | Financial liabilities at amortized cost | |||||||
Financial liabilities | |||||||
Outstanding issue amount | $ 1,817,000,000 | 36,182 | $ 1,816,000,000 | 34,267 | $ 1,894,000,000 | $ 37,228 | |
Subordinated Additional Tier I Capital Notes, Issued 2016 | Financial liabilities at amortized cost | |||||||
Financial liabilities | |||||||
Outstanding issue amount | $ 500,000,000 | 9,948 | 9,420 | 9,809 | |||
Annual interest rate (as percent) | 8.50% | ||||||
Tier II Subordinated Capital Notes, Issued 2018 | Financial liabilities at amortized cost | |||||||
Financial liabilities | |||||||
Outstanding issue amount | $ 1,300,000,000 | $ 26,234 | $ 24,847 | $ 25,873 | |||
Annual interest rate (as percent) | 5.95% | 5.95% |
Subordinated Liabilities - Chan
Subordinated Liabilities - Changes (Details) $ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020USD ($)$ / $ | Dec. 31, 2020MXN ($)$ / $ | Dec. 31, 2019USD ($)$ / $ | Dec. 31, 2019MXN ($)$ / $ | |
Financial liabilities | ||||
Exchange rate per one USD as of December 31, | $ / $ | 19.9087 | 19.9087 | 18.8642 | 18.8642 |
Financial liabilities at beginning of period | $ 1,299,114 | |||
Financial liabilities at end of period | $ 1,644,023 | $ 1,299,114 | ||
Subordinated liabilities | Financial liabilities at amortized cost | ||||
Financial liabilities | ||||
Exchange rate per one USD as of December 31, | $ / $ | 19.9087 | 19.9087 | 18.8642 | 18.8642 |
Financial liabilities at beginning of period | $ 1,816 | $ 34,267 | $ 1,894 | $ 37,228 |
Redemptions | (77) | |||
Transaction costs and accrued interest | 1 | (1) | ||
Financial liabilities at end of period | $ 1,817 | $ 36,182 | $ 1,816 | $ 34,267 |
Subordinated Liabilities - Othe
Subordinated Liabilities - Other (Details) $ / shares in Units, $ / shares in Units, $ in Millions, $ in Millions | Oct. 01, 2018USD ($)$ / sharesshares | Sep. 26, 2018 | Dec. 29, 2016USD ($) | Dec. 27, 2013USD ($)$ / sharesshares | Dec. 31, 2019USD ($) | Dec. 31, 2020MXN ($) | Dec. 29, 2016$ / shares |
Subordinated Additional Tier I Capital Notes, Issued 2016 | |||||||
Financial liabilities | |||||||
Period term resets | 5 years | ||||||
Balance to the equity component assigned | $ 0 | ||||||
Financial liabilities at amortized cost | Subordinated liabilities | |||||||
Financial liabilities | |||||||
Percentage of existing holders tendered the cash offer | 94.07% | ||||||
Repayment of subordinated debt | $ 77 | ||||||
Financial liabilities at amortized cost | Tier II Subordinated Capital Notes, Issued 2013 | |||||||
Financial liabilities | |||||||
Amount of debt securities issued | $ 1,300 | ||||||
Number of debt securities issued | shares | 1,300,000 | ||||||
Nominal value (in dollars per share) | $ / shares | $ 1,000 | ||||||
Maturity period of debt instruments issued | 10 years | ||||||
Prepaid maturity period | 5 years | ||||||
Discount | $ 10 | ||||||
Interest rate (as a percent) | 5.95% | ||||||
Initial interest rate term | 5 years | ||||||
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, Issued 2016 | |||||||
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 Capital Notes, Issued 2018 | |||||||
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, 2020USD ($) | Dec. 31, 2020MXN ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) | |
Financial liabilities | |||||
Financial liabilities at beginning of period | $ 1,299,114 | ||||
Cash flows | 2,882 | $ 12,407 | $ 13,232 | ||
Financial liabilities at end of period | 1,644,023 | 1,299,114 | |||
Subordinated liabilities | Financial liabilities at amortized cost | |||||
Financial liabilities | |||||
Financial liabilities at beginning of period | $ 1,816,000,000 | 34,267 | $ 1,894,000,000 | 37,228 | |
Cash flows | (1,765) | (3,034) | |||
Accrued interest | 1,669 | 1,501 | |||
Transaction costs | 14 | 18 | |||
Foreign exchange movements | 1,997 | (1,446) | |||
Financial liabilities at end of period | 1,817,000,000 | 36,182 | $ 1,816,000,000 | 34,267 | 37,228 |
Tier II Subordinated Capital Notes, Issued 2013 | Financial liabilities at amortized cost | |||||
Financial liabilities | |||||
Financial liabilities at beginning of period | 1,546 | ||||
Cash flows | (1,521) | ||||
Accrued interest | 6 | ||||
Transaction costs | 7 | ||||
Foreign exchange movements | (38) | ||||
Financial liabilities at end of period | 1,546 | ||||
Subordinated Additional Tier I Capital Notes, Issued 2016 | Financial liabilities at amortized cost | |||||
Financial liabilities | |||||
Financial liabilities at beginning of period | 9,420 | 9,809 | |||
Transaction costs | 6 | 4 | |||
Foreign exchange movements | 522 | (393) | |||
Financial liabilities at end of period | 500,000,000 | 9,948 | 9,420 | 9,809 | |
Payment of interest | 964 | 808 | |||
Tier II Subordinated Capital Notes, Issued 2018 | Financial liabilities at amortized cost | |||||
Financial liabilities | |||||
Financial liabilities at beginning of period | 24,847 | 25,873 | |||
Cash flows | (1,765) | (1,513) | |||
Accrued interest | 1,669 | 1,495 | |||
Transaction costs | 8 | 7 | |||
Foreign exchange movements | 1,475 | (1,015) | |||
Financial liabilities at end of period | $ 1,300,000,000 | $ 26,234 | $ 24,847 | $ 25,873 |
Other financial liabilities - B
Other financial liabilities - Breakdown and Unsettled (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other financial liabilities | ||
Total other financial liabilities | $ 1,111,955 | $ 864,266 |
Other financial liabilities | ||
Other financial liabilities | ||
Trade payables | 2,279 | 1,451 |
Tax payables | 1,465 | 1,160 |
Financial transactions pending settlement | 8,281 | 9,267 |
Other financial liabilities | 3,290 | 3,886 |
Total other financial liabilities | 15,315 | 15,764 |
Mexican government securities | Other financial liabilities | ||
Other financial liabilities | ||
Financial transactions pending settlement | 7,362 | 8,059 |
Mexican Bank Saving Protection Bonds (BPATs) | Other financial liabilities | ||
Other financial liabilities | ||
Financial transactions pending settlement | 912 | 1,003 |
Equity instruments | Other financial liabilities | ||
Other financial liabilities | ||
Financial transactions pending settlement | $ 7 | $ 205 |
Other financial liabilities - O
Other financial liabilities - Other (Details) - Other financial liabilities - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial liabilities | ||
Retentions related to loans | $ 1,611 | $ 1,524 |
Other payable account | 1,679 | 2,362 |
Other financial liabilities | $ 3,290 | $ 3,886 |
Provisions - Summary (Details)
Provisions - Summary (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 02, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Provisions | |||||
Provisions for pensions and similar obligations | $ 7,433 | $ 6,406 | |||
Provisions. | 10,604 | 9,104 | $ 6,800 | $ 6,730 | |
Provision for taxes and legal matters | |||||
Provisions | |||||
Other provisions | 1,898 | 1,558 | |||
Provisions for off-balance sheet risk | |||||
Provisions | |||||
Other provisions | 1,232 | 1,075 | $ 1,075 | ||
Other provisions | |||||
Provisions | |||||
Other provisions | $ 41 | $ 65 |
Provisions - Changes (Details)
Provisions - Changes (Details) - MXN ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Provisions | ||||||
Provisions | $ 10,604 | $ 9,104 | $ 6,800 | $ 9,104 | $ 6,800 | $ 6,730 |
Additions charged (credited) to net income: | ||||||
Adjustments on initial adoption of IFRS 9 | (32) | |||||
Provisions, as restated | 9,104 | 6,800 | 6,698 | |||
Interest expense and similar charges | 442 | 415 | 359 | |||
Personnel expenses - Defined Benefit Plan | 273 | 147 | 157 | |||
Personnel expenses - Defined Contribution Plan | 488 | 410 | 373 | |||
Other | 256 | 257 | 129 | |||
Actuarial (gains)/losses recognized in the year in other comprehensive income | 995 | 1,673 | (260) | |||
Period provisions | 723 | 581 | 433 | |||
Contributions from the employer | 118 | 246 | ||||
Payments to pensioners and pre-retirees with a charge to internal provisions | (881) | (348) | (234) | |||
Other payments | (246) | (284) | ||||
Payments to Defined Contribution Plan | (475) | (947) | (347) | |||
Recognition of defined benefit obligations from acquisition of Santander Tecnologia Mexico | 95 | |||||
Transfer, exchange differences and other changes | (75) | (2) | (565) | |||
Balances at end of year | 10,604 | 9,104 | 6,800 | |||
Provision for pensions and similar obligations | ||||||
Provisions | ||||||
Provisions | 7,433 | 6,406 | 4,370 | 6,406 | 4,370 | 3,860 |
Additions charged (credited) to net income: | ||||||
Provisions, as restated | 6,406 | 4,370 | 3,860 | |||
Interest expense and similar charges | 442 | 415 | 359 | |||
Personnel expenses - Defined Benefit Plan | 273 | 147 | 157 | |||
Personnel expenses - Defined Contribution Plan | 488 | 410 | 373 | |||
Other | 256 | 257 | 129 | |||
Actuarial (gains)/losses recognized in the year in other comprehensive income | 995 | 1,673 | (260) | |||
Contributions from the employer | 118 | 246 | ||||
Payments to pensioners and pre-retirees with a charge to internal provisions | (881) | (348) | (234) | |||
Payments to Defined Contribution Plan | (475) | (636) | (347) | |||
Recognition of defined benefit obligations from acquisition of Santander Tecnologia Mexico | 95 | |||||
Transfer, exchange differences and other changes | (71) | (8) | ||||
Balances at end of year | 7,433 | 6,406 | 4,370 | |||
Provision for taxes and legal matters | ||||||
Provisions | ||||||
Provisions | 1,898 | 1,558 | 1,516 | 1,558 | 1,516 | 1,072 |
Additions charged (credited) to net income: | ||||||
Provisions, as restated | 1,558 | 1,516 | 1,072 | |||
Period provisions | 586 | 353 | 576 | |||
Other payments | (246) | (284) | ||||
Payments to Defined Contribution Plan | (311) | |||||
Transfer, exchange differences and other changes | 152 | |||||
Balances at end of year | 1,898 | 1,558 | 1,516 | |||
Other tax issues, Derivative transactions | ||||||
Additions charged (credited) to net income: | ||||||
Other payments | (1) | (3) | (1) | |||
Provisions for off-balance sheet risk | ||||||
Provisions | ||||||
Provisions | 1,232 | 1,075 | 852 | 1,075 | 852 | 1,032 |
Additions charged (credited) to net income: | ||||||
Adjustments on initial adoption of IFRS 9 | (32) | |||||
Provisions, as restated | 1,075 | 852 | 1,000 | |||
Period provisions | 157 | 223 | (148) | |||
Balances at end of year | 1,232 | 1,075 | 852 | |||
Other provisions | ||||||
Provisions | ||||||
Provisions | 41 | 65 | 62 | 65 | 62 | 766 |
Additions charged (credited) to net income: | ||||||
Provisions, as restated | $ 65 | $ 62 | $ 766 | |||
Period provisions | (20) | 5 | 5 | |||
Transfer, exchange differences and other changes | (4) | (2) | (709) | |||
Balances at end of year | $ 41 | $ 65 | $ 62 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Benefits | ||||
Personnel expenses - Defined Contribution Plan | $ 488 | $ 410 | $ 373 | |
Provisions for pensions and similar obligations | $ 7,433 | 6,406 | ||
Defined benefit plans | ||||
Employee Benefits | ||||
Retirement age of employees | 65 years | |||
Plan assets | $ 2,186 | $ 2,068 | ||
Percentage of employees enrolled under defined pension plan | 1.70% | 0.80% | ||
Provisions for pensions and similar obligations | $ 7,342 | $ 6,328 | ||
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 | |||
Defined benefit plans | ||||
Employee Benefits | ||||
Provisions for pensions and similar obligations | $ 7,342 | 6,328 | ||
Defined contribution plan | ||||
Employee Benefits | ||||
Retirement age of employees | 65 years | |||
Personnel expenses - Defined Contribution Plan | $ 238 | $ 226 | $ 373 | |
Percentage of employees enrolled under defined contribution plan included in medical coverage plan | 81.00% | 83.00% | ||
Provisions for pensions and similar obligations | $ 91 | $ 78 |
Provisions - Provisions for p_2
Provisions - Provisions for pensions and similar obligations - Actuarial assumptions (Details) - Defined benefit plans | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Actuarial assumptions | ||
Annual discount rate | 6.80% | 7.30% |
Expected return on plan assets | 6.80% | 7.30% |
Cumulative annual INPC growth | 3.50% | 3.50% |
Annual salary increase rate | 4.50% | 4.50% |
Annual minimum salary increase rate | 3.50% | 4.00% |
Medical cost trend rates | 5.00% | 5.00% |
Retirement age of employees | 65 years |
Provisions - Funding status (De
Provisions - Funding status (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Defined benefit plans | ||
Employee benefits | ||
Present value of the obligations | $ 9,528 | $ 8,396 |
Less: Fair value of plan assets | (2,186) | (2,068) |
Provisions - Provisions for pensions | 7,342 | 6,328 |
Of which: Internal provisions for pensions | 7,342 | 6,328 |
Pension plan | ||
Employee benefits | ||
Present value of the obligations | 2,758 | 2,567 |
Post-employment benefits | ||
Employee benefits | ||
Present value of the obligations | 6,055 | 5,127 |
Other | ||
Employee benefits | ||
Present value of the obligations | $ 715 | $ 702 |
Provisions - Amounts recognized
Provisions - Amounts recognized (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amounts recognized in the consolidated income statements in relation to the aforementioned defined benefit obligations | |||
Current service cost | $ 194 | $ 147 | $ 157 |
Defined benefit plans | |||
Amounts recognized in the consolidated income statements in relation to the aforementioned defined benefit obligations | |||
Current service cost | 273 | 147 | 157 |
Interest cost (net) | 442 | 415 | 359 |
Other | 256 | 257 | 129 |
Total defined benefit expenses recognized in the consolidated income statements | $ 971 | $ 819 | $ 645 |
Provisions - Present Value of O
Provisions - Present Value of Obligations (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee benefits | |||
Current service cost | $ 273 | $ 147 | $ 157 |
Duration of defined benefit obligation | 13 years 4 months 6 days | ||
Present value of defined benefit obligation | |||
Employee benefits | |||
Present value of the obligations at beginning of year | $ 8,396 | 6,518 | |
Current service cost | 273 | 147 | |
Interest cost | 582 | 585 | |
Benefits paid | (1,071) | (983) | |
Actuarial (gains)/losses | 1,413 | 2,129 | |
Other | (65) | ||
Present value of the obligations at end of year | $ 9,528 | $ 8,396 | $ 6,518 |
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, 2020 | Dec. 31, 2019 | |
Fair value of plan assets | ||
Fair value of plan assets at beginning of year | $ 2,068 | $ 2,196 |
Actual return on plan assets | 308 | 347 |
Transfer of funds to defined contribution plan | (190) | (129) |
Benefits paid | (346) | |
Fair value of plan assets at end of year | $ 2,186 | $ 2,068 |
Equity instruments. | ||
Plan assets | ||
Plan assets as a percentage of total plan assets | 36.00% | 34.00% |
Cash and debt instruments | ||
Plan assets | ||
Plan assets as a percentage of total plan assets | 64.00% | 66.00% |
Provisions - Sensitivity analys
Provisions - Sensitivity analysis (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020MXN ($) | |
Main actuarial assumptions | |
Employee benefits | |
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 | $ (464) |
Increase or decrease on obligations if decrease in actuarial assumption | $ 512 |
Medical benefits | |
Employee benefits | |
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 | $ 165 |
Increase or decrease on obligations if decrease in actuarial assumption | $ (153) |
Annual salary growth | |
Employee benefits | |
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 | $ 22 |
Increase or decrease on obligations if decrease in actuarial assumption | $ (22) |
Annual INPC growth | |
Employee benefits | |
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 | $ 12 |
Increase or decrease on obligations if decrease in actuarial assumption | (12) |
Mortality | |
Employee benefits | |
Increase or decrease on obligations if increase in actuarial assumption | (105) |
Increase or decrease on obligations if decrease in actuarial assumption | $ 104 |
Increase in mortality (years) | 2 years |
Decrease in mortality (years) | 2 years |
Provisions - Other disclosures
Provisions - Other disclosures (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Employee benefits | ||
Provisions, net - Past service cost | $ 13 | |
Provision for lifetime payment | ||
Employee benefits | ||
Provision for projected benefit obligation | $ 703 | $ 746 |
Provisions - Provision for tax
Provisions - Provision for tax and legal matters (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other provisions | |||
Other payments | $ 246 | $ 284 | |
Amount paid to external lawyers | 219 | $ 294 | |
Provision for taxes and legal matters | |||
Other provisions | |||
Other provisions | 1,898 | 1,558 | |
Provision for various tax claims | |||
Other provisions | |||
Other provisions | 355 | 67 | |
Other tax issues, Derivative transactions | |||
Other provisions | |||
Other payments | 1 | 3 | $ 1 |
Non-tax-related proceedings | |||
Other provisions | |||
Other provisions | $ 1,543 | $ 1,491 |
Provisions - Provision for off-
Provisions - Provision for off-balance-sheet risk (Details) - Provisions for off-balance sheet risk - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 02, 2019 |
Disclosure of other provisions [line items] | |||
Other provisions. | $ 1,232 | $ 1,075 | $ 1,075 |
Available lines of credit cards and non-revolving consumer loans | |||
Disclosure of other provisions [line items] | |||
Other provisions. | 906 | 965 | |
Guarantees and loan commitments of commercial and public sector loans | |||
Disclosure of other provisions [line items] | |||
Other provisions. | $ 326 | $ 110 |
Provisions - Provision for of_2
Provisions - Provision for off-balance-sheet risk by stages (Details) - Provisions for off-balance sheet risk - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 02, 2019 |
Other provisions | |||
Other provisions | $ 1,232 | $ 1,075 | $ 1,075 |
Stage 1 | |||
Other provisions | |||
Other provisions | 781 | 916 | |
Stage 2 | |||
Other provisions | |||
Other provisions | 185 | 144 | |
Stage 3 | |||
Other provisions | |||
Other provisions | 266 | $ 15 | |
Available lines of credit cards and non-revolving consumer loans | |||
Other provisions | |||
Other provisions | 906 | $ 965 | |
Available lines of credit cards and non-revolving consumer loans | Stage 1 | |||
Other provisions | |||
Other provisions | 695 | ||
Available lines of credit cards and non-revolving consumer loans | Stage 2 | |||
Other provisions | |||
Other provisions | 177 | ||
Available lines of credit cards and non-revolving consumer loans | Stage 3 | |||
Other provisions | |||
Other provisions | 34 | ||
Guarantees, documentary credits and loan commitments of commercial loans (SME) | |||
Other provisions | |||
Other provisions | 326 | ||
Guarantees, documentary credits and loan commitments of commercial loans (SME) | Stage 1 | |||
Other provisions | |||
Other provisions | 86 | ||
Guarantees, documentary credits and loan commitments of commercial loans (SME) | Stage 2 | |||
Other provisions | |||
Other provisions | 8 | ||
Guarantees, documentary credits and loan commitments of commercial loans (SME) | Stage 3 | |||
Other provisions | |||
Other provisions | $ 232 |
Provisions - Provision for off
Provisions - Provision for off balance sheet risk transfer between stages (Details) - Provisions for off-balance sheet risk $ in Millions | 12 Months Ended |
Dec. 31, 2020MXN ($) | |
Other provisions | |
Other provisions at beginning of period | $ 1,075 |
Foreign exchange and other movements | 157 |
Other provisions at end of period | 1,232 |
Stage 1 | |
Other provisions | |
Foreign exchange and other movements | (135) |
Other provisions at end of period | 781 |
Stage 2 | |
Other provisions | |
Foreign exchange and other movements | 41 |
Other provisions at end of period | 185 |
Stage 3 | |
Other provisions | |
Foreign exchange and other movements | 251 |
Other provisions at end of period | $ 266 |
Other liabilities (Details)
Other liabilities (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other liabilities | ||
Sundry creditors | $ 14,698 | $ 9,025 |
Cash balances undrawn | 142 | 155 |
Accrued personnel obligations | 3,584 | 4,388 |
Other obligations | 2,248 | 2,288 |
Credit and debit card operation balances | 2,446 | 2,435 |
Other liabilities | $ 23,118 | $ 18,291 |
Tax matters - Income tax (Detai
Tax matters - Income tax (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current tax expense | |||
Tax expense for current year | $ 7,496 | $ 7,099 | $ 5,615 |
Deferred tax expense (benefit) | |||
Origination and reversal of temporary difference and usage (accrual) of tax carryforward benefits | (1,270) | (190) | (157) |
Total Income Tax | $ 6,226 | $ 6,909 | $ 5,458 |
Tax matters - Income tax reconc
Tax matters - Income tax reconciliation (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated profit (loss) before tax | |||
Standard tax rate (as a percent) | 30.00% | ||
Profit before tax | $ 25,200 | $ 27,290 | $ 24,814 |
Income tax at applicable rate | 7,560 | 8,187 | 7,444 |
Due to effect of inflation | (1,126) | (890) | (1,542) |
Due to effect of tangible assets | (116) | 19 | (76) |
Due to effect of non-deductible expenses, non-taxable income and others | (92) | (407) | (368) |
Total Income Tax | $ 6,226 | $ 6,909 | $ 5,458 |
Effective tax rate (as a percent) | 24.71% | 25.32% | 22.00% |
Current taxes | $ 7,496 | $ 7,099 | $ 5,615 |
Deferred taxes | $ (1,270) | $ (190) | $ (157) |
Tax matters - Tax recognized in
Tax matters - Tax recognized in consolidated equity (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net tax credited/(charged) to consolidated total equity: | |||
Remeasurement of defined benefit obligation | $ 264 | $ 462 | $ (64) |
Measurement of Financial assets at fair value through other comprehensive income | (1,056) | (980) | 371 |
Measurement of Financial derivatives (Cash flow hedge) | 126 | (6) | 276 |
Paid interests on Subordinated Additional Tier I Capital Notes | 290 | 255 | 254 |
Income tax from sale of the Custody business | 255 | ||
Tax recognized in consolidated equity | (376) | (269) | 1,092 |
Debt instruments. | |||
Net tax credited/(charged) to consolidated total equity: | |||
Measurement of Financial assets at fair value through other comprehensive income | $ (1,056) | $ (980) | $ 371 |
Tax matters - Deferred taxes (D
Tax matters - Deferred taxes (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | $ 21,340 | $ 20,757 | $ 20,791 |
Net deferred tax liabilities | 187 | 105 | |
Deferred tax liabilities | $ (3,440) | $ (3,461) | $ (3,304) |
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 | $ 2,146 | $ 2,050 | |
Provisions | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 2,288 | 2,268 | |
Impairment losses on financial assets at amortized cost | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 10,277 | 10,010 | |
Net operating losses carryforward | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 4 | ||
Capital losses carryforward | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 2,660 | 2,708 | |
Labor provisions | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 1,416 | 1,435 | |
Fees and interest collected in advance | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 1,053 | 995 | |
Foreign exchange rate derivatives | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 1,496 | 1,291 | |
Unrealized gains (losses) on financial instruments | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax liabilities | (2,512) | (2,816) | |
Prepayments | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax liabilities | (777) | (347) | |
Other | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax liabilities | $ (151) | $ (298) |
Tax matters - Net operating and
Tax matters - Net operating and Capital losses carryforward (Details) - Capital losses carryforward $ in Millions | Dec. 31, 2020MXN ($) |
Detail of deferred tax assets and liabilities | |
Loss amount | $ 8,866 |
Deferred tax assets | 2,660 |
2027 | |
Detail of deferred tax assets and liabilities | |
Loss amount | 498 |
Deferred tax assets | 149 |
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 |
2030 | |
Detail of deferred tax assets and liabilities | |
Loss amount | 2,509 |
Deferred tax assets | $ 753 |
Tax matters - Net deferred tax
Tax matters - Net deferred tax assets and liabilities (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Tax matters | |||
Presented as deferred tax assets | $ 18,087 | $ 17,401 | |
Presented as deferred tax liabilities | (187) | (105) | |
Net | $ 17,900 | $ 17,296 | $ 17,487 |
Tax matters - Changes in Tax as
Tax matters - Changes in Tax assets and liabilities (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in deferred tax assets and liabilities | |||
Deferred tax assets - Balances at the beginning of the period | $ 20,757 | $ 20,791 | |
Deferred tax assets - (Charge)/Credit to Consolidated Income | 1,430 | 881 | |
Deferred tax assets - (Charge) Credit to Consolidated Other Comprehensive Income | (280) | (915) | |
Deferred tax assets - Other Movements | (567) | ||
Deferred tax assets - Balances at the end of the period | 21,340 | 20,757 | $ 20,791 |
Deferred tax liabilities - Balances at the beginning of the period | (3,461) | (3,304) | |
Deferred tax liabilities - (Charge)/Credit to Consolidated Income | (160) | (691) | |
Deferred tax liabilities - (Charge) Credit to Consolidated Other Comprehensive Income | (96) | 462 | |
Deferred tax liabilities - Other Movements | 277 | 72 | |
Deferred tax liabilities - Balances at the end of the period | (3,440) | (3,461) | (3,304) |
Balances at the beginning of the period | 17,296 | 17,487 | |
(Charge)/Credit to Consolidated income | 1,270 | 190 | 157 |
(Charge) Credit to Consolidated Other Comprehensive Income | (376) | (453) | |
Other Movements | (290) | 72 | |
Balances at the end of the period | $ 17,900 | $ 17,296 | $ 17,487 |
Non-controlling interests - NCI
Non-controlling interests - NCI Components (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Subsidiaries | |||
Non-controlling interest | $ 32 | $ 37 | $ 40 |
Profit attributable to non-controlling interests | $ 3 | ||
Fideicomiso GFSSLPT, Banco Santander Mexico, S.A. | |||
Subsidiaries | |||
Non-controlling interest | 23 | 27 | |
Other subsidiaries | |||
Subsidiaries | |||
Non-controlling interest | $ 14 | $ 13 |
Non-controlling interests - Cha
Non-controlling interests - Changes in NCI (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Non-controlling interests | |||
Balance at beginning of period | $ 40 | $ 32 | |
Profit for the year attributable to non-controlling interests | $ 3 | ||
Other changes in non-controlling interest | (3) | 8 | 3 |
Balance at end of period | $ 37 | $ 40 | $ 32 |
Valuation adjustments - FVTOCI
Valuation adjustments - FVTOCI (Details) - MXN ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial instruments | ||||
Net Valuation Gains (Losses), Financial assets at fair value through other comprehensive income | $ 3,565 | $ 4,108 | $ (1,226) | |
Financial assets at fair value through other comprehensive income | 356,089 | 236,980 | ||
Debt instruments. | ||||
Financial instruments | ||||
Valuation Gains, Financial assets at fair value through other comprehensive income | 5,944 | 4,266 | ||
Valuation Losses, Financial assets at fair value through other comprehensive income | (2,384) | (158) | ||
Net Valuation Gains (Losses), Financial assets at fair value through other comprehensive income | 3,560 | 4,108 | ||
Financial assets at fair value through other comprehensive income | 355,321 | 233,463 | ||
Loans and advances - Customers | ||||
Financial instruments | ||||
Financial assets at fair value through other comprehensive income | 2,875 | |||
Equity instruments. | ||||
Financial instruments | ||||
Valuation Gains, Financial assets at fair value through other comprehensive income | 170 | 111 | ||
Valuation Losses, Financial assets at fair value through other comprehensive income | (44) | (4) | ||
Net Valuation Gains (Losses), Financial assets at fair value through other comprehensive income | 126 | 107 | (13) | |
Financial assets at fair value through other comprehensive income | $ 768 | $ 642 | $ 535 | $ 795 |
Valuation adjustments - Changes
Valuation adjustments - Changes - FVTOCI (Details) - MXN ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial instruments | ||||
Cumulative valuation adjustments beginning balance, FVTOCI | $ 2,319 | |||
Valuation adjustments, FVTOCI | 3,565 | $ 4,108 | $ (1,226) | |
Amounts reclassified to the consolidated income statement, FVTOCI | (843) | (189) | 69 | |
Allowance for impairment losses | (21,799) | (19,220) | (18,810) | |
Income tax, FVTOCI | (1,056) | (980) | 371 | |
Cumulative valuation adjustments ending balance, FVTOCI | 4,073 | 2,319 | ||
Debt instruments. | ||||
Financial instruments | ||||
Valuation adjustments, FVTOCI | 3,560 | 4,108 | ||
Income tax, FVTOCI | (1,056) | (980) | 371 | |
Equity instruments. | ||||
Financial instruments | ||||
Valuation adjustments, FVTOCI | 126 | 107 | (13) | |
Financial assets at amortized cost category | ||||
Financial instruments | ||||
Allowance for impairment losses | (21,731) | (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 | ||||
Allowance for impairment losses | (68) | (4) | ||
Financial assets at fair value through other comprehensive income category | Debt and equity instruments | ||||
Financial instruments | ||||
Cumulative valuation adjustments beginning balance, FVTOCI | 2,319 | (695) | ||
Valuation adjustments, FVTOCI | 3,686 | 4,215 | ||
Amounts reclassified to the consolidated income statement, FVTOCI | (843) | (189) | ||
Income tax, FVTOCI | (1,089) | (1,012) | ||
Cumulative valuation adjustments ending balance, FVTOCI | 4,073 | 2,319 | (695) | |
Financial assets at fair value through other comprehensive income category | Debt instruments. | ||||
Financial instruments | ||||
Cumulative valuation adjustments beginning balance, FVTOCI | 2,264 | (675) | ||
Financial assets, Reclassification, Adjustments on initial adoption of IFRS 9 | $ (73,131) | |||
Valuation adjustments, FVTOCI | 3,560 | 4,108 | (1,226) | |
Amounts reclassified to the consolidated income statement, FVTOCI | (843) | (189) | 69 | |
Income tax, FVTOCI | (1,056) | (980) | ||
Cumulative valuation adjustments ending balance, FVTOCI | 3,925 | 2,264 | (675) | |
Financial assets at fair value through other comprehensive income category | Equity instruments. | ||||
Financial instruments | ||||
Cumulative valuation adjustments beginning balance, FVTOCI | 55 | (20) | ||
Valuation adjustments, FVTOCI | 126 | 107 | ||
Income tax, FVTOCI | (33) | (32) | ||
Cumulative valuation adjustments ending balance, FVTOCI | $ 148 | $ 55 | $ (20) |
Valuation adjustments - Cash fl
Valuation adjustments - Cash flow hedges (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Valuation adjustments | ||
Accumulated (loss)/gain on cash flow hedges | $ (556) | $ (293) |
Accumulated gain related to discontinued cash flow hedges | (13) | 17 |
Valuation adjustments - cash flow hedges | $ (569) | $ (276) |
Shareholders' equity - Share ca
Shareholders' equity - Share capital (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
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) | 91.64% | 74.96% |
Minority Shareholders | ||
Share capital | ||
Participation interest in entity (as a percent) | 8.36% | 25.04% |
Shareholders' equity - Dividend
Shareholders' equity - Dividends and legal reserves (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 |
Other capital disclosures | |||||||||||
Dividends declared | $ 5,450 | $ 4,843 | $ 4,949 | $ 4,279 | $ 1,822 | $ 4,676 | $ 4,234 | $ 10,293 | $ 9,228 | ||
Dividend payables | $ 1,950 | ||||||||||
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 - Annual m
Shareholders' equity - Annual meeting (Details) - MXN ($) $ 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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 15, 2020 | Apr. 28, 2020 | Feb. 21, 2018 |
Shareholders' equity | |||||||||||||
Fund to repurchase own shares | $ 12,800 | $ 12,800 | $ 12,800 | ||||||||||
Shares repurchased | 5,671,453 | ||||||||||||
Value of shares repurchased | $ 145 | ||||||||||||
Dividends declared | $ 5,450 | $ 4,843 | $ 4,949 | $ 4,279 | $ 1,822 | $ 4,676 | $ 4,234 | $ 10,293 | $ 9,228 | ||||
Amount of shares authorized to be issued | $ 10,000 | ||||||||||||
Maximum period | 15 years |
Minimum capital requirements -
Minimum capital requirements - General (Details) | 12 Months Ended |
Dec. 31, 2020item | |
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, 2020 | Dec. 31, 2019 |
Capital requirements | ||
Computable capital | $ 151,458 | $ 125,083 |
Core capital | 158,786 | 138,371 |
Supplementary capital | 27,203 | 24,847 |
Deductible items | (44,479) | (47,555) |
Subordinated Additional Tier 1 Capital Notes | 9,948 | 9,420 |
Capital requirements | 63,746 | 61,127 |
Excess of capital requirements | 87,712 | 63,956 |
Risk-weighted assets | 796,836 | 764,093 |
Capital requirements, Market risk | ||
Capital requirements | ||
Capital requirements | 15,398 | 13,988 |
Capital requirements, Credit risk | ||
Capital requirements | ||
Capital requirements | 43,215 | 42,922 |
Capital requirements, Operational risk | ||
Capital requirements | ||
Capital requirements | $ 5,133 | $ 4,217 |
Minimum capital requirements _3
Minimum capital requirements - Capital ratios (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Minimum capital requirements | ||
Net Capital / Required Capital | 2.38 | 2.05 |
Basic Fundamental Capital / Assets subject to Credit, Market and Operating Risk | 14.35% | 11.89% |
Basic Fundamental Capital / Assets subject to Credit, Market and Operating Risk - Minimum capital requirements | 8.20% | 8.20% |
Basic Capital / Assets subject to Credit, Market and Operating Risk | 15.59% | 13.12% |
Basic Capital / Assets subject to Credit, Market and Operating Risk - Minimum capital requirements | 9.70% | 9.70% |
Net Capital / Assets subject to Credit Risk | 28.04% | 23.31% |
Net Capital / Assets subject to Credit, Market and Operating Risk | 19.01% | 16.37% |
Net Capital / Assets subject to Credit, Market and Operating Risk - Minimum capital requirements | 11.70% | 11.70% |
Memorandum accounts - Contingen
Memorandum accounts - Contingent commitments (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 02, 2019 |
Contingent commitments | |||
Contingent commitments | $ 249,138 | $ 216,574 | |
Provisions for off-balance sheet risk | |||
Contingent commitments | |||
Other provisions | 1,232 | 1,075 | $ 1,075 |
Available lines of credit cards and non-revolving consumer loans | |||
Contingent commitments | |||
Contingent commitments | 157,033 | 136,405 | |
Guarantees, documentary credits and loan commitments of commercial and public-sector loans | |||
Contingent commitments | |||
Contingent commitments | 91,993 | 79,950 | |
Guarantees, documentary credits and loan commitments of commercial loans (SME) | |||
Contingent commitments | |||
Contingent commitments | $ 112 | $ 219 |
Memorandum accounts - Conting_2
Memorandum accounts - Contingent commitments by stages (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Contingent commitments | ||
Contingent Commitments | $ 249,138 | $ 216,574 |
Available lines of credit cards and non-revolving consumer loans | ||
Contingent commitments | ||
Contingent Commitments | 157,033 | 136,405 |
Guarantees, documentary credits and loan commitments of commercial and public-sector loans | ||
Contingent commitments | ||
Contingent Commitments | 91,993 | 79,950 |
Guarantees, documentary credits and loan commitments of commercial loans (SME) | ||
Contingent commitments | ||
Contingent Commitments | 112 | $ 219 |
Stage 1 | ||
Contingent commitments | ||
Contingent Commitments | 245,909 | |
Stage 1 | Available lines of credit cards and non-revolving consumer loans | ||
Contingent commitments | ||
Contingent Commitments | 154,901 | |
Stage 1 | Guarantees, documentary credits and loan commitments of commercial and public-sector loans | ||
Contingent commitments | ||
Contingent Commitments | 90,915 | |
Stage 1 | Guarantees, documentary credits and loan commitments of commercial loans (SME) | ||
Contingent commitments | ||
Contingent Commitments | 93 | |
Stage 2 | ||
Contingent commitments | ||
Contingent Commitments | 2,826 | |
Stage 2 | Available lines of credit cards and non-revolving consumer loans | ||
Contingent commitments | ||
Contingent Commitments | 2,000 | |
Stage 2 | Guarantees, documentary credits and loan commitments of commercial and public-sector loans | ||
Contingent commitments | ||
Contingent Commitments | 815 | |
Stage 2 | Guarantees, documentary credits and loan commitments of commercial loans (SME) | ||
Contingent commitments | ||
Contingent Commitments | 11 | |
Stage 3 | ||
Contingent commitments | ||
Contingent Commitments | 403 | |
Stage 3 | Available lines of credit cards and non-revolving consumer loans | ||
Contingent commitments | ||
Contingent Commitments | 132 | |
Stage 3 | Guarantees, documentary credits and loan commitments of commercial and public-sector loans | ||
Contingent commitments | ||
Contingent Commitments | 263 | |
Stage 3 | Guarantees, documentary credits and loan commitments of commercial loans (SME) | ||
Contingent commitments | ||
Contingent Commitments | $ 8 |
Memorandum accounts - Financial
Memorandum accounts - Financial instruments received as collateral (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial instruments | ||
Financial instruments received as collateral | $ 65,177 | $ 82,342 |
Financial instrument in connection with OTC derivative transactions | Debt instruments. | ||
Financial instruments | ||
Financial instruments received as collateral | 5,483 | 5,736 |
Financial instruments in connection with repurchase agreement transactions | Debt instruments. | ||
Financial instruments | ||
Financial instruments received as collateral | 59,557 | 76,592 |
Financial instruments in connection with securities loans transactions | Equity instruments. | ||
Financial instruments | ||
Financial instruments received as collateral | $ 137 | $ 14 |
Derivatives - Nominal amounts_3
Derivatives - Nominal amounts and fair values of trading and hedging derivatives - Trading assets (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial assets | ||
Nominal amount of trading derivative assets | $ 4,413,436 | $ 4,193,643 |
Fair value of trading derivatives | 296,171 | 151,747 |
OTC transactions | ||
Financial assets | ||
Fair value of trading derivatives | 296,171 | 151,747 |
Currency risk | Futures | ||
Financial assets | ||
Nominal amount of trading derivative assets | 1,030 | |
Fair value of trading derivatives | 5 | |
Currency risk | Forward rate agreements | ||
Financial assets | ||
Nominal amount of trading derivative assets | 171,450 | 209,085 |
Fair value of trading derivatives | 9,293 | 8,769 |
Currency risk | Forwards: Spot | ||
Financial assets | ||
Nominal amount of trading derivative assets | 40,944 | 18,630 |
Fair value of trading derivatives | 92 | 32 |
Currency risk | Options | ||
Financial assets | ||
Nominal amount of trading derivative assets | 72,892 | 50,940 |
Fair value of trading derivatives | 3,879 | 1,052 |
Currency risk | Currency swaps | ||
Financial assets | ||
Nominal amount of trading derivative assets | 472,918 | 442,402 |
Fair value of trading derivatives | 86,337 | 61,173 |
Interest rate risk | Options | ||
Financial assets | ||
Nominal amount of trading derivative assets | 54,471 | 111,940 |
Fair value of trading derivatives | 232 | 421 |
Interest rate risk | IRS | ||
Financial assets | ||
Nominal amount of trading derivative assets | 3,596,532 | 3,353,662 |
Fair value of trading derivatives | 196,170 | 80,078 |
Market Index | Futures | ||
Financial assets | ||
Nominal amount of trading derivative assets | 9 | 4,144 |
Market Index | Options | ||
Financial assets | ||
Nominal amount of trading derivative assets | 271 | 1,828 |
Fair value of trading derivatives | 43 | 212 |
Equity price risk | Forward rate agreements | ||
Financial assets | ||
Nominal amount of trading derivative assets | 2,270 | 341 |
Fair value of trading derivatives | 48 | |
Equity price risk | Options | ||
Financial assets | ||
Nominal amount of trading derivative assets | 649 | 43 |
Fair value of trading derivatives | $ 72 | |
Equity price risk | Equity swaps | ||
Financial assets | ||
Nominal amount of trading derivative assets | 628 | |
Fair value of trading derivatives | $ 10 |
Derivatives - Nominal amounts_4
Derivatives - Nominal amounts and fair values of trading and hedging derivatives - Hedging assets (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Hedging derivative assets | ||
Nominal amount of hedging derivative assets | $ 47,968 | $ 128,344 |
Fair value of hedging derivative assets | 8,306 | 9,256 |
Total Derivative Assets, Nominal | 4,461,404 | 4,321,987 |
Total Derivative Assets, Fair Value | 304,477 | 161,003 |
Cash flow hedges | ||
Hedging derivative assets | ||
Fair value of hedging derivative assets | 8,295 | 8,331 |
Fair value hedges | ||
Hedging derivative assets | ||
Fair value of hedging derivative assets | 11 | 925 |
IRS | Fair value hedges | Interest rate risk | ||
Hedging derivative assets | ||
Nominal amount of hedging derivative assets | 1,000 | 53,882 |
Fair value of hedging derivative assets | 11 | 719 |
Currency swaps | Cash flow hedges | Currency risk | ||
Hedging derivative assets | ||
Nominal amount of hedging derivative assets | 10,824 | 11,177 |
Fair value of hedging derivative assets | 4,282 | 3,843 |
Currency swaps | Fair value hedges | Currency risk | ||
Hedging derivative assets | ||
Nominal amount of hedging derivative assets | 3,868 | |
Fair value of hedging derivative assets | 206 | |
Forward rate agreements | Cash flow hedges | Currency risk | ||
Hedging derivative assets | ||
Nominal amount of hedging derivative assets | 36,144 | 59,417 |
Fair value of hedging derivative assets | $ 4,013 | $ 4,488 |
Derivatives - Nominal amounts_5
Derivatives - Nominal amounts and fair values of trading and hedging derivatives - Trading liabilities (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial liabilities | ||
Nominal amount of trading derivative liabilities | $ 4,411,708 | $ 4,133,205 |
Fair value of trading derivative liabilities | 286,111 | 144,481 |
OTC transactions | ||
Financial liabilities | ||
Fair value of trading derivative liabilities | 286,111 | 144,481 |
Currency risk | Futures | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 4,614 | 14,202 |
Currency risk | Forward rate agreements | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 175,827 | 199,493 |
Fair value of trading derivative liabilities | 7,991 | 6,551 |
Currency risk | Forwards: Spot | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 29,930 | 36,973 |
Fair value of trading derivative liabilities | 72 | 73 |
Currency risk | Options | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 54,923 | 57,808 |
Fair value of trading derivative liabilities | 2,766 | 1,606 |
Currency risk | Currency swaps | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 451,191 | 385,855 |
Fair value of trading derivative liabilities | 84,577 | 59,393 |
Interest rate risk | Options | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 93,248 | 140,813 |
Fair value of trading derivative liabilities | 306 | 474 |
Interest rate risk | IRS | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 3,597,275 | 3,296,209 |
Fair value of trading derivative liabilities | 189,535 | 76,165 |
Market Index | Futures | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 139 | 79 |
Market Index | Forward rate agreements | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 2,292 | 651 |
Fair value of trading derivative liabilities | 33 | 6 |
Market Index | Options | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 697 | 1,122 |
Fair value of trading derivative liabilities | 582 | 201 |
Equity price risk | Options | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 868 | |
Fair value of trading derivative liabilities | 65 | |
Equity price risk | Equity swaps | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 704 | |
Fair value of trading derivative liabilities | $ 184 | $ 12 |
Derivatives - Nominal amounts_6
Derivatives - Nominal amounts and fair values of trading and hedging derivatives - Hedging liabilities (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Hedging derivative liabilities | ||
Nominal amount of hedging derivative liabilities | $ 119,193 | $ 68,187 |
Fair value of hedging derivative liabilities | 19,078 | 7,523 |
Total Derivative Liabilities, Nominal | 4,530,901 | 4,201,392 |
Total Derivative Liabilities, Fair Value | 305,189 | 152,004 |
Cash flow hedges | ||
Hedging derivative liabilities | ||
Fair value of hedging derivative liabilities | 2,474 | 2,217 |
Fair value hedges | ||
Hedging derivative liabilities | ||
Fair value of hedging derivative liabilities | 16,604 | 5,306 |
Forward rate agreements | Cash flow hedges | Currency risk | ||
Hedging derivative liabilities | ||
Nominal amount of hedging derivative liabilities | 18,622 | 10,698 |
Fair value of hedging derivative liabilities | 569 | 409 |
IRS | Cash flow hedges | Interest rate risk | ||
Hedging derivative liabilities | ||
Nominal amount of hedging derivative liabilities | 11,311 | 11,311 |
Fair value of hedging derivative liabilities | 365 | 118 |
IRS | Fair value hedges | Interest rate risk | ||
Hedging derivative liabilities | ||
Nominal amount of hedging derivative liabilities | 49,380 | 3,600 |
Fair value of hedging derivative liabilities | 4,361 | 246 |
Currency swaps | Cash flow hedges | Currency risk | ||
Hedging derivative liabilities | ||
Nominal amount of hedging derivative liabilities | 4,958 | 10,704 |
Fair value of hedging derivative liabilities | 1,540 | 1,690 |
Currency swaps | Fair value hedges | Currency risk | ||
Hedging derivative liabilities | ||
Nominal amount of hedging derivative liabilities | 34,922 | 31,874 |
Fair value of hedging derivative liabilities | $ 12,243 | $ 5,060 |
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, 2020 | Dec. 31, 2019 |
Financial instruments | ||
Collateral provided | $ 4,123 | $ 5,153 |
Cash | Mercado Mexicano de Derivados, S.A. de C.V. | ||
Financial instruments | ||
Collateral provided | 3,113 | 3,865 |
Cash | Chicago Mercantile Exchange | ||
Financial instruments | ||
Collateral provided | 1,009 | 1,286 |
Cash | Foreign financial Institutions | ||
Financial instruments | ||
Collateral provided | $ 1 | $ 2 |
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, 2020 | Dec. 31, 2019 |
Loans and advances - Credit institutions | ||
Financial instruments | ||
Collateral delivered | $ 14,300 | |
Debt instruments. | ||
Financial instruments | ||
Collateral delivered | $ 5,306 | 4,472 |
Debt instruments received as collateral and delivered as collateral in turn | 813 | 1,318 |
Financial assets at amortized cost category | Loans and advances - Credit institutions | ||
Financial instruments | ||
Collateral delivered | 27,954 | |
Mexican financial institutions | Financial assets at amortized cost category | Loans and advances - Credit institutions | ||
Financial instruments | ||
Collateral delivered | 15,738 | 7,536 |
Mexican financial institutions | Financial assets at fair value through profit or loss category | Debt instruments. | ||
Financial instruments | ||
Collateral delivered | 4,410 | 3,121 |
Foreign financial Institutions | Financial assets at amortized cost category | Loans and advances - Credit institutions | ||
Financial instruments | ||
Collateral delivered | 12,216 | 6,764 |
Foreign financial Institutions | Financial assets at fair value through profit or loss category | Debt instruments. | ||
Financial instruments | ||
Collateral delivered | $ 896 | $ 1,351 |
Derivatives - Nominal amounts_9
Derivatives - Nominal amounts and fair values of trading and hedging derivatives - Collateral received (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial instruments | ||
Cash collateral received | $ 23,052 | $ 16,759 |
Financial instrument in connection with OTC derivative transactions | Deposits | ||
Financial instruments | ||
Cash collateral received | 23,052 | 16,759 |
Financial instrument in connection with OTC derivative transactions | Mexican financial institutions | Deposits | ||
Financial instruments | ||
Cash collateral received | 21,649 | 5,174 |
Financial instrument in connection with OTC derivative transactions | Foreign financial Institutions | Deposits | ||
Financial instruments | ||
Cash collateral received | $ 1,403 | 11,527 |
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, 2020 | Dec. 31, 2019 | |
Financial instruments | ||
Financial instruments received as collateral | $ 65,177 | $ 82,342 |
Percentage of level of confidence | 97.50% | |
Cumulative net credit risk exposure | $ 45,372 | 390,324 |
Financial instrument in connection with OTC derivative transactions | Debt instruments. | ||
Financial instruments | ||
Financial instruments received as collateral | 5,483 | 5,736 |
Financial instrument in connection with OTC derivative transactions | Mexican financial institutions | Debt instruments. | ||
Financial instruments | ||
Financial instruments received as collateral | $ 5,483 | $ 5,736 |
Interest income (Detail)
Interest income (Detail) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financial assets | |||
Cash and balances with the Central Bank | $ 1,951 | $ 2,456 | $ 2,361 |
Hedging derivatives | 2,432 | 3,541 | 2,858 |
Other interest income | 249 | 191 | 125 |
Total interest income except interest income on financial assets at fair value through profit or loss | 103,977 | 108,846 | 99,537 |
Financial assets except for those at fair value through profit or loss starting January 1, 2018. | |||
Financial assets | |||
Loans and advances to credit institutions | 412 | 2,839 | 2,178 |
Loans and advances to customers | 84,290 | 89,894 | 81,976 |
Debt instruments | $ 14,643 | $ 9,925 | $ 10,039 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financial assets | |||
Interest income on financial assets designated at fair value through profit or loss | $ 12,008 | $ 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 | 12,008 | 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 | 2,997 | 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 | 804 | 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 | $ 8,207 | $ 7,336 | $ 7,550 |
Interest expenses and similar_3
Interest expenses and similar charges (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest expenses and similar charges | |||
Deposits from credit institutions | $ 12,400 | $ 9,041 | $ 7,420 |
Customer deposits | 28,235 | 35,036 | 31,913 |
Marketable debt securities | 5,756 | 5,398 | 4,244 |
Subordinated liabilities | 1,767 | 1,597 | 1,610 |
Hedging derivatives | 193 | 222 | 108 |
Other interest expenses | 1,824 | 6,780 | 6,294 |
Total interest expenses and similar charges | $ 50,175 | $ 58,074 | $ 51,589 |
Dividend income (Details)
Dividend income (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Dividend income | |||
Dividend income | $ 246 | $ 235 | $ 210 |
Financial assets at fair value through profit or loss category | |||
Dividend income | |||
Dividend income | 40 | 44 | 33 |
Financial assets at fair value through other comprehensive income category | |||
Dividend income | |||
Dividend income | 206 | 191 | 177 |
NAFTRAC (Exchange-traded fund or ETF) | Financial assets at fair value through profit or loss category | |||
Dividend income | |||
Dividend income | 36 | 36 | 18 |
Grupo Cementos de Chihuahua, S.A.B. de C.V [Member] | Financial assets at fair value through profit or loss category | |||
Dividend income | |||
Dividend income | 3 | 7 | 11 |
Fomento Economico Mexicano, S.A.B. de C.V. | Financial assets at fair value through profit or loss category | |||
Dividend income | |||
Dividend income | 1 | ||
America Movil, S.A.B, de C.V. | Financial assets at fair value through profit or loss category | |||
Dividend income | |||
Dividend income | 1 | ||
Grupo Mexico, S.A.B. de C.V. | Financial assets at fair value through profit or loss category | |||
Dividend income | |||
Dividend income | 1 | ||
Wal-Mart de Mexico, S.A.B. de C.V. | Financial assets at fair value through profit or loss category | |||
Dividend income | |||
Dividend income | 1 | 1 | |
Controladora Prosa, S.A. de C.V. | Financial assets at fair value through other comprehensive income category | |||
Dividend income | |||
Dividend income | 73 | 54 | 50 |
Trans Union de Mexico, S.A. | Financial assets at fair value through other comprehensive income category | |||
Dividend income | |||
Dividend income | 88 | 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 | 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 | $ 20 | 18 | 17 |
Others | Financial assets at fair value through profit or loss category | |||
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Collection and payment services: | |||
Service charges on deposit accounts | $ 2,588 | $ 1,438 | $ 1,217 |
Credit and debit cards | 7,667 | 8,757 | 7,398 |
Checks and others | 181 | 243 | 240 |
Total collection and payment services | 10,436 | 10,438 | 8,855 |
Marketing of non-banking financial products: | |||
Investment funds management | 1,611 | 1,568 | 1,569 |
Capital markets and securities activities | 514 | 558 | 738 |
Collection and payment services | 2,074 | 2,923 | 2,832 |
Insurance | 5,300 | 5,038 | 4,575 |
Financial advisory services | 1,179 | 1,207 | 1,212 |
Total marketing of nonbanking financial products | 10,678 | 11,294 | 10,926 |
Securities services: | |||
Administration and custody | 461 | 347 | 368 |
Total securities services | 461 | 347 | 368 |
Other: | |||
Foreign currency transactions | 1,380 | 1,287 | 1,255 |
Other fees and commissions | 801 | 952 | 892 |
Total other | 2,181 | 2,239 | 2,147 |
Total fee and commission income | $ 23,756 | $ 24,318 | $ 22,296 |
Fee and commission expenses (De
Fee and commission expenses (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fee and commission expenses | |||
Credit and debit cards | $ 2,741 | $ 4,095 | $ 3,680 |
Checks and others | 43 | 31 | 26 |
Collections and transactional services | 291 | 312 | 287 |
Fund management | 1 | 1 | 1 |
Capital markets and securities activities | 173 | 238 | 189 |
Financial advisory services | 5 | 6 | 13 |
Correspondent services | 791 | 723 | 614 |
Other fees and commissions | 2,688 | 2,488 | 1,764 |
Total fee and commission expenses | $ 6,733 | $ 7,894 | $ 6,574 |
Gains_(losses) on financial a_3
Gains/(losses) on financial assets and liabilities (net) (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financial instruments | |||
Gains/(losses) on financial assets and liabilities (net), Total | $ 5,984 | $ 2,854 | $ 1,484 |
Fair value hedges | |||
Financial instruments | |||
Fair value hedge - hedged items | 6,427 | 731 | (606) |
Fair value hedge - hedging derivative instruments | (6,884) | (667) | 474 |
Cash flow hedges | |||
Financial instruments | |||
Cash flow hedge inefficiency | (2) | (2) | |
Financial instruments at fair value through profit or loss, type of instrument | |||
Financial instruments | |||
Gains/(losses) on financial assets and liabilities (net), Total | 5,662 | 2,709 | 1,687 |
Financial instruments at fair value through other comprehensive income, type of instrument | |||
Financial instruments | |||
Gains/(losses) on financial assets and liabilities (net), Total | 779 | 85 | (69) |
Hedging derivatives, type of instrument | |||
Financial instruments | |||
Gains/(losses) on financial assets and liabilities (net), Total | (457) | 60 | (134) |
Fair value hedge - hedged items | 6,427 | 731 | (606) |
Fair value hedge - hedging derivative instruments | (6,884) | (667) | 474 |
Cash flow hedge inefficiency | (4) | (2) | |
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 | 1,221 | 260 | 166 |
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 | (161) | 71 | 35 |
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 | 4,458 | 2,459 | 1,482 |
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 | $ 144 | $ (81) | $ 4 |
Other operating income and ot_3
Other operating income and other operating expenses (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other operating income: | |||
Other operating income | $ 1,651 | $ 1,553 | $ 748 |
Other operating income | 1,651 | 1,553 | 748 |
Other operating expenses: | |||
IPAB fund contribution | (3,859) | (3,353) | (3,134) |
Other operating expense | (1,354) | (1,792) | (1,259) |
Other operating expense | $ (5,213) | $ (5,145) | $ (4,393) |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Personnel expenses | |||
Wages and salaries | $ 7,838 | $ 7,740 | $ 7,274 |
Social security costs | 1,494 | 1,443 | 1,283 |
Service expense related to defined contribution pension plan | 488 | 410 | 373 |
Service expense related to defined benefit pension plan | 194 | 147 | 157 |
Share-based payments | 226 | 226 | 161 |
Bonus and benefits granted to employees | 3,052 | 4,017 | 3,691 |
Other staff costs | 1,584 | 1,445 | 1,415 |
Total employee benefits expense | $ 14,876 | $ 15,428 | $ 14,354 |
Personnel expenses - Long-term
Personnel expenses - Long-term incentive plan 2015 (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based payment arrangement | |||
Share-based payment expense recognized in consolidated income statement | $ 226 | $ 226 | $ 161 |
Long Term Incentive Plan 2015 | |||
Share-based payment arrangement | |||
Fair value of share-based compensation plan | 86 | ||
Share-based payment expense recognized in consolidated income statement | $ 6 | $ 5 | $ 16 |
Personnel expenses - Bonus paym
Personnel expenses - Bonus payment policies (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020EUR (€) | Dec. 31, 2020MXN ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) | |
Share-based payment arrangement | ||||
Share-based payment expense recognized in consolidated income statement | $ | $ 226 | $ 226 | $ 161 | |
Bonus Plan | ||||
Share-based payment arrangement | ||||
Shares obligation retention period | 1 year | 1 year | ||
Share-based payment expense recognized in consolidated income statement | $ | $ 294 | $ 226 | $ 184 | |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other general administrative expenses | |||
Maintenance, conservation and repair | $ 825 | $ 738 | $ 646 |
Information technology and systems | 5,344 | 3,851 | 4,820 |
Stationery and supplies | 325 | 150 | 227 |
Advertising and communications | 809 | 965 | 890 |
Rents | 683 | 653 | 1,120 |
Administrative services | 2,202 | 1,737 | 503 |
Taxes other than income tax | 2,270 | 2,037 | 1,820 |
Surveillance and cash courier services | 1,263 | 1,248 | 979 |
Insurance premiums | 114 | 95 | 75 |
Travel costs | 71 | 325 | 364 |
Other administrative expenses | 1,353 | 2,031 | 2,851 |
Total | 15,259 | 13,830 | 14,295 |
Audit and tax services | |||
Audit fees and audit-related fees | 122 | 103 | 88 |
Tax fees | 1 | ||
Total | 122 | 103 | 89 |
Audit-related fees | $ 32 | $ 26 | $ 7 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) | |||
Gains of disposal of tangible assets | $ 6 | $ 16 | $ 7 |
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) | $ 6 | $ 16 | $ 7 |
Other disclosures - Remaining m
Other disclosures - Remaining maturity periods (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||||
Cash and balances with the Central Bank | $ 71,053 | $ 65,207 | ||
Financial assets at fair value through profit or loss | 504,354 | 268,127 | ||
Other financial assets at fair value through profit or loss | 70,356 | 79,927 | ||
Financial assets at fair value through other comprehensive income | 356,089 | 236,980 | ||
Financial assets at amortized cost | 763,256 | 747,823 | ||
Fair value of hedging derivative assets | 8,306 | 9,256 | ||
Total financial assets | 1,773,414 | 1,407,320 | ||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 301,476 | 153,600 | ||
Other financial liabilities designated at fair value through profit or loss | 211,514 | 273,725 | ||
Financial liabilities at amortized cost | 1,111,955 | 864,266 | ||
Hedging derivatives | 19,078 | 7,523 | ||
Total financial liabilities | 1,644,023 | 1,299,114 | ||
Difference (assets less liabilities) | 129,391 | 108,206 | ||
On demand | ||||
ASSETS | ||||
Cash and balances with the Central Bank | 24,791 | 25,793 | ||
Fair value of hedging derivative assets | 300 | |||
Total financial assets | 38,751 | 40,884 | ||
LIABILITIES AND EQUITY | ||||
Hedging derivatives | 4 | |||
Total financial liabilities | 536,492 | 453,345 | ||
Difference (assets less liabilities) | (497,741) | (412,461) | ||
1 month | ||||
ASSETS | ||||
Cash and balances with the Central Bank | 22,284 | 11,320 | ||
Fair value of hedging derivative assets | 1 | 1,906 | ||
Total financial assets | 298,025 | 244,549 | ||
LIABILITIES AND EQUITY | ||||
Hedging derivatives | 1 | |||
Total financial liabilities | 546,507 | 439,952 | ||
Difference (assets less liabilities) | (248,482) | (195,403) | ||
3 months | ||||
ASSETS | ||||
Fair value of hedging derivative assets | 192 | |||
Total financial assets | 108,398 | 89,817 | ||
LIABILITIES AND EQUITY | ||||
Hedging derivatives | 8 | |||
Total financial liabilities | 50,841 | 64,357 | ||
Difference (assets less liabilities) | 57,557 | 25,460 | ||
3 to 12 months | ||||
ASSETS | ||||
Fair value of hedging derivative assets | 160 | 304 | ||
Total financial assets | 287,438 | 184,299 | ||
LIABILITIES AND EQUITY | ||||
Hedging derivatives | 131 | 897 | ||
Total financial liabilities | 113,126 | 111,335 | ||
Difference (assets less liabilities) | 174,312 | 72,964 | ||
1 to 3 years | ||||
ASSETS | ||||
Fair value of hedging derivative assets | 5,391 | 5,658 | ||
Total financial assets | 409,848 | 318,438 | ||
LIABILITIES AND EQUITY | ||||
Hedging derivatives | 2,029 | 488 | ||
Total financial liabilities | 99,378 | 73,009 | ||
Difference (assets less liabilities) | 310,470 | 245,429 | ||
3 to 5 years | ||||
ASSETS | ||||
Fair value of hedging derivative assets | 2,454 | 758 | ||
Total financial assets | 211,882 | 188,633 | ||
LIABILITIES AND EQUITY | ||||
Hedging derivatives | 3,925 | 1,885 | ||
Total financial liabilities | 102,491 | 41,277 | ||
Difference (assets less liabilities) | 109,391 | 147,356 | ||
More than five years | ||||
ASSETS | ||||
Cash and balances with the Central Bank | 23,978 | 28,094 | ||
Fair value of hedging derivative assets | 438 | |||
Total financial assets | 419,072 | 340,700 | ||
LIABILITIES AND EQUITY | ||||
Hedging derivatives | 12,989 | 4,244 | ||
Total financial liabilities | 195,188 | 115,839 | ||
Difference (assets less liabilities) | 223,884 | 224,861 | ||
Loans and advances - Credit institutions | ||||
ASSETS | ||||
Other financial assets at fair value through profit or loss | 59,512 | 54,138 | ||
Financial assets at amortized cost | 64,371 | 36,895 | ||
Total financial assets | 123,883 | 91,033 | ||
Loans and advances - Credit institutions | 1 month | ||||
ASSETS | ||||
Other financial assets at fair value through profit or loss | 59,512 | 54,138 | ||
Financial assets at amortized cost | 64,371 | 36,895 | ||
Loans and advances - Customers | ||||
ASSETS | ||||
Other financial assets at fair value through profit or loss | 10,844 | 25,789 | ||
Financial assets at fair value through other comprehensive income | 2,875 | |||
Financial assets at amortized cost | 687,432 | 699,671 | ||
Total financial assets | 698,276 | 728,335 | ||
Loans and advances - Customers | On demand | ||||
ASSETS | ||||
Financial assets at amortized cost | 11,475 | 8,930 | ||
Loans and advances - Customers | 1 month | ||||
ASSETS | ||||
Other financial assets at fair value through profit or loss | 10,844 | 25,789 | ||
Financial assets at fair value through other comprehensive income | 71 | |||
Financial assets at amortized cost | 40,220 | 72,144 | ||
Loans and advances - Customers | 3 months | ||||
ASSETS | ||||
Financial assets at fair value through other comprehensive income | 71 | |||
Financial assets at amortized cost | 73,035 | 67,861 | ||
Loans and advances - Customers | 3 to 12 months | ||||
ASSETS | ||||
Financial assets at fair value through other comprehensive income | 713 | |||
Financial assets at amortized cost | 135,294 | 127,842 | ||
Loans and advances - Customers | 1 to 3 years | ||||
ASSETS | ||||
Financial assets at fair value through other comprehensive income | 571 | |||
Financial assets at amortized cost | 191,615 | 196,079 | ||
Loans and advances - Customers | 3 to 5 years | ||||
ASSETS | ||||
Financial assets at fair value through other comprehensive income | 1,449 | |||
Financial assets at amortized cost | 82,995 | 81,576 | ||
Loans and advances - Customers | More than five years | ||||
ASSETS | ||||
Financial assets at amortized cost | 152,798 | 145,239 | ||
Debt instruments. | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 206,272 | 110,613 | ||
Financial assets at fair value through other comprehensive income | 355,321 | 233,463 | ||
Financial assets at amortized cost | 11,453 | 11,257 | ||
Total financial assets | 573,046 | 355,333 | ||
Debt instruments. | 1 month | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 15,109 | 6,917 | ||
Financial assets at fair value through other comprehensive income | 81,142 | 31,817 | ||
Debt instruments. | 3 months | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 20,263 | 18,473 | ||
Financial assets at fair value through other comprehensive income | 3,833 | |||
Debt instruments. | 3 to 12 months | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 106,579 | 40,045 | ||
Financial assets at fair value through other comprehensive income | 24,881 | 4,713 | ||
Debt instruments. | 1 to 3 years | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 42,477 | 26,379 | ||
Financial assets at fair value through other comprehensive income | 105,799 | 59,836 | ||
Financial assets at amortized cost | 1,699 | 1,607 | ||
Debt instruments. | 3 to 5 years | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 15,254 | 15,864 | ||
Financial assets at fair value through other comprehensive income | 42,950 | 54,636 | ||
Financial assets at amortized cost | 7,785 | |||
Debt instruments. | More than five years | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 6,590 | 2,935 | ||
Financial assets at fair value through other comprehensive income | 96,716 | 82,461 | ||
Financial assets at amortized cost | 1,969 | 9,650 | ||
Equity instruments. | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 1,911 | 5,767 | ||
Financial assets at fair value through other comprehensive income | 768 | 642 | $ 535 | $ 795 |
Total financial assets | 2,679 | 6,409 | ||
Equity instruments. | On demand | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 1,911 | 5,767 | ||
Equity instruments. | More than five years | ||||
ASSETS | ||||
Financial assets at fair value through other comprehensive income | 768 | 642 | ||
Trading derivative assets | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 296,171 | 151,747 | ||
Trading derivative assets | On demand | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 274 | 394 | ||
Trading derivative assets | 1 month | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 4,542 | 3,552 | ||
Trading derivative assets | 3 months | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 11,267 | 3,220 | ||
Trading derivative assets | 3 to 12 months | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 20,524 | 10,682 | ||
Trading derivative assets | 1 to 3 years | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 62,867 | 28,308 | ||
Trading derivative assets | 3 to 5 years | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 60,444 | 34,350 | ||
Trading derivative assets | More than five years | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 136,253 | 71,241 | ||
Trading derivative liabilities | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 286,111 | 144,481 | ||
Trading derivative liabilities | On demand | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 422 | 395 | ||
Trading derivative liabilities | 1 month | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 3,447 | 3,183 | ||
Trading derivative liabilities | 3 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 11,006 | 3,457 | ||
Trading derivative liabilities | 3 to 12 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 17,891 | 11,185 | ||
Trading derivative liabilities | 1 to 3 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 58,959 | 25,521 | ||
Trading derivative liabilities | 3 to 5 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 60,541 | 36,303 | ||
Trading derivative liabilities | More than five years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 133,845 | 64,437 | ||
Short positions | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 15,365 | 9,119 | ||
Short positions | 1 month | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 15,365 | 8,280 | ||
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 | 24,937 | 111,574 | ||
Financial liabilities at amortized cost | 126,329 | |||
Deposits - Central banks | 1 month | ||||
LIABILITIES AND EQUITY | ||||
Other financial liabilities designated at fair value through profit or loss | 24,937 | 111,574 | ||
Financial liabilities at amortized cost | 126,299 | |||
Deposits - Central banks | 1 to 3 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 30 | |||
Deposits - Credit institutions | ||||
LIABILITIES AND EQUITY | ||||
Other financial liabilities designated at fair value through profit or loss | 54,922 | 29,689 | ||
Financial liabilities at amortized cost | 61,174 | 72,969 | ||
Deposits - Credit institutions | On demand | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 28,061 | 28,338 | ||
Deposits - Credit institutions | 1 month | ||||
LIABILITIES AND EQUITY | ||||
Other financial liabilities designated at fair value through profit or loss | 54,922 | 29,689 | ||
Financial liabilities at amortized cost | 11,670 | 22,934 | ||
Deposits - Credit institutions | 3 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 3,099 | 8,580 | ||
Deposits - Credit institutions | 3 to 12 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 10,751 | 1,134 | ||
Deposits - Credit institutions | 1 to 3 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 6,163 | 10,374 | ||
Deposits - Credit institutions | 3 to 5 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 38 | 57 | ||
Deposits - Credit institutions | More than five years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 1,392 | 1,552 | ||
Customer deposits | ||||
LIABILITIES AND EQUITY | ||||
Other financial liabilities designated at fair value through profit or loss | 130,292 | 129,216 | ||
Financial liabilities at amortized cost | 742,201 | 630,055 | ||
Total financial liabilities | 872,493 | 759,271 | ||
Customer deposits | On demand | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 499,711 | 424,563 | ||
Customer deposits | 1 month | ||||
LIABILITIES AND EQUITY | ||||
Other financial liabilities designated at fair value through profit or loss | 130,292 | 128,634 | ||
Financial liabilities at amortized cost | 156,765 | 106,523 | ||
Customer deposits | 3 months | ||||
LIABILITIES AND EQUITY | ||||
Other financial liabilities designated at fair value through profit or loss | 582 | |||
Financial liabilities at amortized cost | 28,302 | 36,512 | ||
Customer deposits | 3 to 12 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 49,235 | 54,805 | ||
Customer deposits | 1 to 3 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 4,027 | 3,858 | ||
Customer deposits | 3 to 5 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 3,231 | 3,032 | ||
Customer deposits | More than five years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 930 | 762 | ||
Customer deposits, Excludes repurchase agreements | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 733,877 | 630,055 | ||
Customer deposits - Repurchase agreements | ||||
LIABILITIES AND EQUITY | ||||
Other financial liabilities designated at fair value through profit or loss | 130,292 | 129,216 | ||
Financial liabilities at amortized cost | 8,324 | |||
Marketable debt securities | ||||
LIABILITIES AND EQUITY | ||||
Other financial liabilities designated at fair value through profit or loss | 1,363 | 3,246 | ||
Financial liabilities at amortized cost | 130,754 | 111,211 | ||
Total financial liabilities | 132,117 | 114,457 | ||
Marketable debt securities | 1 month | ||||
LIABILITIES AND EQUITY | ||||
Other financial liabilities designated at fair value through profit or loss | 163 | |||
Financial liabilities at amortized cost | 20,358 | 19,412 | ||
Marketable debt securities | 3 months | ||||
LIABILITIES AND EQUITY | ||||
Other financial liabilities designated at fair value through profit or loss | 524 | 263 | ||
Financial liabilities at amortized cost | 6,774 | 13,464 | ||
Marketable debt securities | 3 to 12 months | ||||
LIABILITIES AND EQUITY | ||||
Other financial liabilities designated at fair value through profit or loss | 621 | 2,119 | ||
Financial liabilities at amortized cost | 31,535 | 36,430 | ||
Marketable debt securities | 1 to 3 years | ||||
LIABILITIES AND EQUITY | ||||
Other financial liabilities designated at fair value through profit or loss | 55 | 864 | ||
Financial liabilities at amortized cost | 27,135 | 31,755 | ||
Marketable debt securities | 3 to 5 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 34,756 | |||
Marketable debt securities | More than five years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 10,196 | 10,150 | ||
Subordinated liabilities | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 36,182 | 34,267 | ||
Subordinated liabilities | 3 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 365 | |||
Subordinated liabilities | 3 to 12 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 346 | |||
Subordinated liabilities | More than five years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 35,836 | 33,902 | ||
Other financial liabilities | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 15,315 | 15,764 | ||
Other financial liabilities | On demand | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 8,294 | 49 | ||
Other financial liabilities | 1 month | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 2,289 | 9,722 | ||
Other financial liabilities | 3 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 1,136 | 1,079 | ||
Other financial liabilities | 3 to 12 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 2,616 | 4,765 | ||
Other financial liabilities | 1 to 3 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | $ 980 | $ 149 |
Other disclosures - Undiscounte
Other disclosures - Undiscounted contractual maturity periods (Details) - Financial liabilities at amortized cost - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | $ 1,041,439 | $ 921,489 |
On demand | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 536,066 | 452,950 |
1 month | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 193,186 | 160,873 |
3 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 42,602 | 63,737 |
3 to 12 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 105,563 | 109,694 |
1 to 3 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 51,158 | 59,612 |
3 to 5 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 47,263 | 9,879 |
More than five years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 65,601 | 64,744 |
Deposits - Central banks | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 126,485 | |
Deposits - Central banks | 1 month | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 126,454 | |
Deposits - Central banks | 1 to 3 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 31 | |
Deposits - Credit institutions | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 65,402 | 78,311 |
Deposits - Credit institutions | On demand | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 28,061 | 28,338 |
Deposits - Credit institutions | 1 month | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 11,854 | 23,211 |
Deposits - Credit institutions | 3 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 3,461 | 8,991 |
Deposits - Credit institutions | 3 to 12 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 11,991 | 2,142 |
Deposits - Credit institutions | 1 to 3 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 7,189 | 12,218 |
Deposits - Credit institutions | 3 to 5 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 231 | 305 |
Deposits - Credit institutions | More than five years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 2,615 | 3,106 |
Customer deposits | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 750,763 | 639,395 |
Customer deposits | On demand | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 499,711 | 424,563 |
Customer deposits | 1 month | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 158,037 | 107,681 |
Customer deposits | 3 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 29,693 | 38,195 |
Customer deposits | 3 to 12 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 52,967 | 59,092 |
Customer deposits | 1 to 3 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 5,130 | 5,015 |
Customer deposits | 3 to 5 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 3,794 | 3,616 |
Customer deposits | More than five years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 1,431 | 1,233 |
Marketable debt securities | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 148,403 | 130,087 |
Marketable debt securities | 1 month | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 20,808 | 20,071 |
Marketable debt securities | 3 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 7,914 | 15,096 |
Marketable debt securities | 3 to 12 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 35,816 | 42,001 |
Marketable debt securities | 1 to 3 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 33,092 | 37,716 |
Marketable debt securities | 3 to 5 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 38,471 | 1,444 |
Marketable debt securities | More than five years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 12,302 | 13,759 |
Subordinated liabilities | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 61,556 | 57,932 |
Subordinated liabilities | 1 month | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 198 | 188 |
Subordinated liabilities | 3 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 398 | 376 |
Subordinated liabilities | 3 to 12 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 2,173 | 1,694 |
Subordinated liabilities | 1 to 3 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 4,767 | 4,514 |
Subordinated liabilities | 3 to 5 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 4,767 | 4,514 |
Subordinated liabilities | More than five years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 49,253 | 46,646 |
Other financial liabilities | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 15,315 | 15,764 |
Other financial liabilities | On demand | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 8,294 | 49 |
Other financial liabilities | 1 month | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 2,289 | 9,722 |
Other financial liabilities | 3 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 1,136 | 1,079 |
Other financial liabilities | 3 to 12 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 2,616 | 4,765 |
Other financial liabilities | 1 to 3 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | $ 980 | $ 149 |
Other disclosures - Foreign cur
Other disclosures - Foreign currency balances (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Foreign currency balances | |||
Assets. | $ 1,837,914 | $ 1,467,548 | $ 1,408,724 |
Liabilities | 1,684,080 | 1,332,750 | $ 1,285,437 |
Marketable debt securities | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 55,875 | 25,224 | |
Subordinated liabilities | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 36,204 | 34,300 | |
Financial derivatives liabilities | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 69,933 | 50,335 | |
Deposits - Central banks | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 14,934 | ||
Deposits - Credit institutions | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 12,597 | 18,628 | |
Customer deposits | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 86,780 | 81,637 | |
Other financial liabilities | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 646 | 1,306 | |
Other Liabilities | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 6,627 | 1,942 | |
Cash and balances with the Central Bank | Foreign currency | |||
Foreign currency balances | |||
Assets. | 3,657 | 4,254 | |
Debt instruments. | Foreign currency | |||
Foreign currency balances | |||
Assets. | 167,862 | 112,201 | |
Loans and advances - Credit institutions | Foreign currency | |||
Foreign currency balances | |||
Assets. | 29,799 | 17,765 | |
Loans and advances - Customers | Foreign currency | |||
Foreign currency balances | |||
Assets. | 67,689 | 68,653 | |
Other assets Member | Foreign currency | |||
Foreign currency balances | |||
Assets. | $ 498 | $ 2,701 |
Other disclosures - Financial a
Other disclosures - Financial assets measured at other than fair value (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets | |||
Financial assets | $ 1,773,414 | $ 1,407,320 | |
Loans and advances - Credit institutions | |||
Financial assets | |||
Financial assets | 123,883 | 91,033 | |
Loans and advances - Customers | |||
Financial assets | |||
Financial assets | 698,276 | 728,335 | |
Loans and advances - Customers | Gross carrying amount | |||
Financial assets | |||
Financial assets | 723,827 | 750,305 | |
Loans and advances - Customers | Impairment losses | |||
Financial assets | |||
Financial assets | (25,551) | (21,970) | $ (21,516) |
Debt instruments. | |||
Financial assets | |||
Financial assets | 573,046 | 355,333 | |
Debt instruments. | Impairment losses | |||
Financial assets | |||
Financial assets | (91) | (23) | |
Financial assets at amortized cost category | Loans and advances - Credit institutions | |||
Financial assets | |||
Financial assets, fair value | 64,354 | 36,762 | |
Financial assets | 64,371 | 36,895 | |
Financial assets at amortized cost category | Loans and advances - Credit institutions | Level 2 | |||
Financial assets | |||
Financial assets, fair value | 28,702 | 21,616 | |
Financial assets at amortized cost category | Loans and advances - Credit institutions | Level 3 | |||
Financial assets | |||
Financial assets, fair value | 35,652 | 15,146 | |
Financial assets at amortized cost category | Loans and advances - Customers | |||
Financial assets | |||
Financial assets, fair value | 742,318 | 730,226 | |
Financial assets | 687,432 | 699,671 | |
Financial assets at amortized cost category | Loans and advances - Customers | Gross carrying amount | |||
Financial assets | |||
Financial assets | 712,983 | 721,636 | |
Financial assets at amortized cost category | Loans and advances - Customers | Impairment losses | |||
Financial assets | |||
Financial assets | (25,551) | ||
Financial assets at amortized cost category | Loans and advances - Customers | Level 2 | |||
Financial assets | |||
Financial assets, fair value | 646 | 2,892 | |
Financial assets at amortized cost category | Loans and advances - Customers | Level 3 | |||
Financial assets | |||
Financial assets, fair value | 741,672 | 727,334 | |
Financial assets at amortized cost category | Debt instruments. | |||
Financial assets | |||
Financial assets, fair value | 11,454 | 11,257 | |
Financial assets | 11,453 | 11,257 | |
Financial assets at amortized cost category | Debt instruments. | Level 2 | |||
Financial assets | |||
Financial assets, fair value | $ 11,454 | $ 11,257 |
Other disclosures - Financial l
Other disclosures - Financial liabilities measured at other than fair value (Details) $ in Millions, $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2020MXN ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018MXN ($) |
Financial liabilities | ||||||
Financial liabilities | $ 1,644,023 | $ 1,299,114 | ||||
Customer deposits | ||||||
Financial liabilities | ||||||
Financial liabilities | 872,493 | 759,271 | ||||
Marketable debt securities | ||||||
Financial liabilities | ||||||
Financial liabilities | 132,117 | 114,457 | ||||
Financial liabilities at amortized cost | Deposits - Central banks | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 126,323 | |||||
Financial liabilities | 126,329 | |||||
Financial liabilities at amortized cost | Deposits - Credit institutions | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 61,033 | 72,654 | ||||
Financial liabilities | 61,174 | 72,969 | ||||
Financial liabilities at amortized cost | Customer deposits, Excludes repurchase agreements | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 741,925 | 629,684 | ||||
Financial liabilities | 733,877 | 630,055 | ||||
Financial liabilities at amortized cost | Customer deposits - Repurchase agreements | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 8,323 | |||||
Financial liabilities | 8,324 | |||||
Financial liabilities at amortized cost | Marketable debt securities | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 137,429 | 111,342 | ||||
Financial liabilities | 130,754 | 111,211 | $ 98,312 | |||
Financial liabilities at amortized cost | Subordinated liabilities | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 39,406 | 36,555 | ||||
Financial liabilities | $ 1,817 | 36,182 | $ 1,816 | 34,267 | $ 1,894 | $ 37,228 |
Financial liabilities at amortized cost | Other financial liabilities | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 15,483 | 15,760 | ||||
Financial liabilities | 15,486 | 15,764 | ||||
Level 1 | Financial liabilities at amortized cost | Marketable debt securities | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 137,429 | 111,342 | ||||
Level 1 | Financial liabilities at amortized cost | Subordinated liabilities | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 39,406 | 36,555 | ||||
Level 1 | Financial liabilities at amortized cost | Other financial liabilities | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 15,760 | |||||
Level 2 | Financial liabilities at amortized cost | Deposits - Central banks | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 126,293 | |||||
Level 2 | Financial liabilities at amortized cost | Deposits - Credit institutions | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 65,382 | |||||
Level 2 | Financial liabilities at amortized cost | Customer deposits, Excludes repurchase agreements | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 85,332 | 629,684 | ||||
Level 2 | Financial liabilities at amortized cost | Customer deposits - Repurchase agreements | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 8,323 | |||||
Level 2 | Financial liabilities at amortized cost | Other financial liabilities | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 7,522 | |||||
Level 3 | Financial liabilities at amortized cost | Deposits - Central banks | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 30 | |||||
Level 3 | Financial liabilities at amortized cost | Deposits - Credit institutions | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 61,033 | $ 7,272 | ||||
Level 3 | Financial liabilities at amortized cost | Customer deposits, Excludes repurchase agreements | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 656,593 | |||||
Level 3 | Financial liabilities at amortized cost | Other financial liabilities | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | $ 7,961 |
Other disclosures - Restriction
Other disclosures - Restrictions (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other disclosures | ||
Legal reserve | $ 14,346 | $ 12,971 |
Legal reserve on individual basis | $ 11,217 | $ 9,616 |
Operating Segment (Details)
Operating Segment (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020MXN ($)segment | Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) | |
Operating segments | |||
Number of segments | segment | 3 | ||
Income statement and other significant data | |||
Net interest income | $ 65,810 | $ 66,156 | $ 61,997 |
Dividend income | 246 | 235 | 210 |
Income from entities accounted for using the equity method | 178 | ||
Net fee and commission income (expense) | 17,023 | 16,424 | 15,722 |
Gains/(losses) on financial assets and liabilities (net) | 5,984 | 2,854 | 1,484 |
Exchange differences (net) | 19 | ||
Other operating income (expenses) | (3,562) | (3,592) | (3,645) |
TOTAL INCOME | 85,698 | 82,077 | 75,768 |
Administrative expenses | (30,135) | (29,258) | (28,649) |
Depreciation and amortization | (5,743) | (5,222) | (2,973) |
Impairment losses on financial assets (net) | (21,799) | (19,220) | (18,810) |
Gains (losses) on modification of financial assets | (1,743) | ||
Impairment losses on other assets (net) | (119) | (370) | (5) |
Provisions (net) | (974) | (775) | (562) |
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) | 6 | 16 | 7 |
Gains/(losses) on disposal of non-current assets not classified as discontinued operations | 9 | 42 | 38 |
OPERATING PROFIT BEFORE TAX | 25,200 | 27,290 | 24,814 |
Tax income | (6,226) | (6,909) | (5,458) |
PROFIT FOR THE YEAR | 18,974 | 20,381 | 19,356 |
Profit attributable to the Parent | 18,974 | 20,381 | 19,353 |
Profit for the year attributable to non-controlling interests | 3 | ||
Total assets | 1,837,914 | 1,467,548 | 1,408,724 |
Total liabilities | 1,684,080 | 1,332,750 | 1,285,437 |
Retail Banking | |||
Income statement and other significant data | |||
Net interest income | 61,444 | 59,008 | 54,005 |
Net fee and commission income (expense) | 15,551 | 15,014 | 14,181 |
Gains/(losses) on financial assets and liabilities (net) | 1,421 | 1,155 | 1,086 |
Other operating income (expenses) | (2,695) | (2,389) | (2,561) |
TOTAL INCOME | 75,721 | 72,788 | 66,711 |
Administrative expenses | (25,649) | (25,064) | (24,574) |
Depreciation and amortization | (5,339) | (4,827) | (2,769) |
Impairment losses on financial assets (net) | (20,772) | (18,986) | (17,813) |
Gains (losses) on modification of financial assets | (1,743) | ||
Impairment losses on other assets (net) | (119) | (370) | |
Provisions (net) | (143) | (165) | 178 |
OPERATING PROFIT BEFORE TAX | 21,956 | 23,376 | 21,733 |
Total assets | 654,572 | 628,380 | 599,270 |
Total liabilities | 676,529 | 618,477 | 567,829 |
Global Corporate Banking | |||
Income statement and other significant data | |||
Net interest income | 5,605 | ||
Dividend income | 39 | ||
Net fee and commission income (expense) | 1,668 | ||
Gains/(losses) on financial assets and liabilities (net) | 3,888 | ||
Other operating income (expenses) | (714) | ||
TOTAL INCOME | 10,486 | ||
Administrative expenses | (3,830) | ||
Depreciation and amortization | (376) | ||
Impairment losses on financial assets (net) | (1,027) | ||
Provisions (net) | (10) | ||
OPERATING PROFIT BEFORE TAX | 5,243 | ||
Total assets | 760,895 | ||
Total liabilities | 783,942 | ||
Corporate and Investment Banking | |||
Income statement and other significant data | |||
Net interest income | 6,638 | 6,121 | |
Dividend income | 44 | 34 | |
Net fee and commission income (expense) | 1,596 | 1,700 | |
Gains/(losses) on financial assets and liabilities (net) | 1,417 | 689 | |
Other operating income (expenses) | (690) | (672) | |
TOTAL INCOME | 9,005 | 7,872 | |
Administrative expenses | (3,604) | (3,530) | |
Depreciation and amortization | (381) | (200) | |
Impairment losses on financial assets (net) | (234) | (997) | |
Provisions (net) | (1) | 10 | |
OPERATING PROFIT BEFORE TAX | 4,785 | 3,155 | |
Total assets | 529,901 | 547,006 | |
Total liabilities | 509,204 | 486,372 | |
Corporate Activities | |||
Income statement and other significant data | |||
Net interest income | (1,239) | 510 | 1,871 |
Dividend income | 207 | 191 | 176 |
Income from entities accounted for using the equity method | 178 | ||
Net fee and commission income (expense) | (196) | (186) | (159) |
Gains/(losses) on financial assets and liabilities (net) | 675 | 282 | (291) |
Exchange differences (net) | 19 | ||
Other operating income (expenses) | (153) | (513) | (412) |
TOTAL INCOME | (509) | 284 | 1,185 |
Administrative expenses | (656) | (590) | (545) |
Depreciation and amortization | (28) | (14) | (4) |
Impairment losses on other assets (net) | (5) | ||
Provisions (net) | (821) | (609) | (750) |
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) | 6 | 16 | 7 |
Gains/(losses) on disposal of non-current assets not classified as discontinued operations | 9 | 42 | 38 |
OPERATING PROFIT BEFORE TAX | (1,999) | (871) | (74) |
Total assets | 422,447 | 309,267 | 262,448 |
Total liabilities | $ 223,609 | $ 205,069 | $ 231,236 |
Related-party transactions - As
Related-party transactions - Assets (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Banco Santander, S.A. (Spain) | Trading derivative assets | ||
Related-party transactions | ||
Financial assets at fair value through profit or loss | $ 109,651 | $ 60,737 |
Banco Santander, S.A. (Spain) | Loans and advances - Credit institutions | ||
Related-party transactions | ||
Financial assets at amortised cost | 26,415 | 11,334 |
Banco Santander (Chile) | Trading derivative assets | ||
Related-party transactions | ||
Financial assets at fair value through profit or loss | 154 | 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 | 1,458 | 1,915 |
Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informaticos Generales, S.L | ||
Related-party transactions | ||
Other intangible assets | 701 | 809 |
Other assets | 310 | |
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 | 882 | 1,687 |
Santander Capital Structuring S.A. de C.V. | Loans and advances - Customers | ||
Related-party transactions | ||
Financial assets at amortised cost | 2,337 | 2,204 |
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 | 171 | 163 |
Zurich Santander Seguros Mexico, S.A. | ||
Related-party transactions | ||
Other assets | 1,285 | 1,278 |
Isban Brasil Sa [Member] | ||
Related-party transactions | ||
Other intangible assets | 11 | 11 |
Other related parties [member] | ||
Related-party transactions | ||
Other assets | 94 | 65 |
Bank's directors and senior managers | Loans and advances - Customers | ||
Related-party transactions | ||
Financial assets at amortised cost | $ 5,507 | $ 2,992 |
Related-party transactions - Li
Related-party transactions - Liabilities (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Banco Santander, S.A. (Spain) | Trading derivative liabilities | ||
Related-party transactions | ||
Financial liabilities at fair value through profit or loss | $ 111,873 | $ 51,998 |
Banco Santander, S.A. (Spain) | Deposits - Credit institutions | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 1,447 | 10,598 |
Banco Santander, S.A. (Spain) | Subordinated liabilities | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 26,987 | |
Banco Santander, S.A. (Spain) | Marketable debt securities | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 978 | 930 |
Banco Santander, S.A. (Spain) | Other financial liabilities | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 717 | 656 |
Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander Mexico | Customer deposits - Repurchase agreements | ||
Related-party transactions | ||
Other financial liabilities at fair value through profit or loss | 4,065 | 5,010 |
Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander Mexico | Other financial liabilities | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 39 | 90 |
Banco S3 Mexico, SA, Institucion de Banca Multiple | ||
Related-party transactions | ||
Other liabilities | 1 | 58 |
Banco S3 Mexico, SA, Institucion de Banca Multiple | Deposits - Credit institutions | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 394 | |
Santander Bank, National Association [Member] | Deposits - Credit institutions | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 63 | |
Grupo Financiero Santander Mexico, S.A. de C.V. | Customer deposits | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 55 | 18 |
Banco Santander (Brazil) | Deposits - Credit institutions | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 107 | 213 |
Operadora de Carteras Gamma, S.A.P.I. de C.V. | Customer deposits | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 99 | 73 |
Santander Global Facilities, S.A. de C.V. | Customer deposits | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 1,475 | 411 |
Santander Global Facilities, S.A. de C.V. | Other financial liabilities | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 542 | 493 |
Servicios de Cobranza, Recuperacion y Seguimiento, S.A. de C.V. | Customer deposits | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 26 | 35 |
Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informaticos Generales, S.L | ||
Related-party transactions | ||
Other liabilities | 1,185 | 972 |
Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informaticos Generales, S.L | Customer deposits | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 323 | 445 |
Santander Capital Structuring S.A. de C.V. | Customer deposits | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 632 | 217 |
Santander Back-Offices Globales Mayoristas, S.A. | ||
Related-party transactions | ||
Other liabilities | 13 | 16 |
Other related parties [member] | ||
Related-party transactions | ||
Other liabilities | 82 | 11 |
Other related parties [member] | Customer deposits | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 6,187 | 1,057 |
Other related parties [member] | Customer deposits - Repurchase agreements | ||
Related-party transactions | ||
Other financial liabilities at fair value through profit or loss | 53 | 18 |
Other related parties [member] | Deposits - Credit institutions | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 16 | 84 |
Other related parties [member] | Marketable debt securities | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 73 | 29 |
Other related parties [member] | Other financial liabilities | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 46 | 61 |
Bank's directors and senior managers | Customer deposits | ||
Related-party transactions | ||
Financial liabilities at amortised cost | $ 5,883 | $ 940 |
Related-party transactions - In
Related-party transactions - Income Statement (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Banco Santander, S.A. (Spain) | |||
Related-party transactions | |||
Interest income | $ 1 | $ 22 | $ 144 |
Interest expenses and similar charges | 1,310 | 1,536 | 1,765 |
Fee and commission income | 8 | 12 | 6 |
Fee and commission expense | 2 | 2 | 2 |
Gains/(losses) on financial assets and liabilities (net) | (24,086) | (19,135) | 2,145 |
Administrative expenses | 464 | 398 | 335 |
Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informaticos Generales, S.L | |||
Related-party transactions | |||
Interest income | 84 | 112 | 107 |
Other operating income | 79 | 69 | 62 |
Administrative expenses | 2,875 | 2,147 | 1,804 |
Santander Investment Securities Inc. | |||
Related-party transactions | |||
Fee and commission income | 6 | ||
Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander Mexico | |||
Related-party transactions | |||
Interest income | 41 | 91 | 127 |
Interest expenses and similar charges | 304 | 669 | 1,824 |
Fee and commission income | 55 | 115 | 292 |
Fee and commission expense | 34 | 31 | |
Other operating income | 55 | 53 | 113 |
Administrative expenses | 88 | ||
Zurich Santander Seguros Mexico, S.A. | |||
Related-party transactions | |||
Fee and commission income | 4,031 | 4,986 | 4,645 |
SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversion | |||
Related-party transactions | |||
Fee and commission income | 1,608 | 1,567 | 1,564 |
Fee and commission expense | 17 | 14 | 16 |
Banco S3 Mexico, SA, Institucion de Banca Multiple | |||
Related-party transactions | |||
Interest expenses and similar charges | 41 | 37 | 44 |
Servicios de Cobranza, Recuperacion y Seguimiento, S.A. de C.V. | |||
Related-party transactions | |||
Interest expenses and similar charges | 7 | ||
Fee and commission expense | 110 | 105 | 60 |
Administrative expenses | 7 | ||
Santander Global Facilities, S.A. de C.V. | |||
Related-party transactions | |||
Interest expenses and similar charges | 52 | 38 | 32 |
Fee and commission expense | 135 | 161 | |
Other operating income | 20 | 37 | 44 |
Administrative expenses | 446 | 368 | 517 |
Banco Santander (Chile) | |||
Related-party transactions | |||
Gains/(losses) on financial assets and liabilities (net) | (26) | 134 | |
Abbey National Treasury Services plc | |||
Related-party transactions | |||
Gains/(losses) on financial assets and liabilities (net) | 56 | ||
Santander Digital Assets, S.L. | |||
Related-party transactions | |||
Other operating income | 22 | 62 | |
Gesban Mexico Servicios Administrativos Globales, S.A. de C.V. | |||
Related-party transactions | |||
Administrative expenses | 55 | 59 | 54 |
Santander Back-Offices Globales Mayoristas, S.A. | |||
Related-party transactions | |||
Administrative expenses | 71 | 49 | 47 |
Universia Mexico, S.A. de C.V. | |||
Related-party transactions | |||
Administrative expenses | 22 | ||
Geoban, S.A. | |||
Related-party transactions | |||
Administrative expenses | 60 | 75 | |
Santander Capital Structuring S.A. de C.V. | |||
Related-party transactions | |||
Interest income | 176 | 164 | 120 |
Aquanima Mexico, S. de R.L. de C.V. | |||
Related-party transactions | |||
Administrative expenses | 74 | 71 | 53 |
Other related parties [member] | |||
Related-party transactions | |||
Interest income | 2 | 1 | 1 |
Interest expenses and similar charges | 30 | 39 | 45 |
Fee and commission income | 25 | 39 | |
Fee and commission expense | 8 | ||
Gains/(losses) on financial assets and liabilities (net) | (20) | 12 | 19 |
Other operating income | 37 | 44 | 29 |
Administrative expenses | $ 143 | $ 30 | $ 34 |
Risk management - Cornerstones
Risk management - Cornerstones (Details) | 12 Months Ended |
Dec. 31, 2020MXN ($)individualitem | |
Risk management | |
Risk management, number of lines of defense | 3 |
Number of senior executives providing additional support on IBOR steering group | individual | 8 |
Number of axes from which risk appetite is structured | $ | $ 5 |
Number of types of reports used in RRS | 3 |
Risk management - Credit risk -
Risk management - Credit risk - Main aggregates (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of credit risk exposure [line items] | |||
Period of evolution of business considered in evaluating allowance for impairment losses. | 3 years | ||
Loans and advances - Customers | |||
Disclosure of credit risk exposure [line items] | |||
Percentage of non-performing loans (as a percent) | 3.10% | 2.50% | 2.70% |
Commercial, financial and industrial loans | |||
Disclosure of credit risk exposure [line items] | |||
Percentage of non-performing loans (as a percent) | 1.90% | 1.50% | 1.80% |
Mortgage loans | |||
Disclosure of credit risk exposure [line items] | |||
Percentage of non-performing loans (as a percent) | 5.50% | 5.40% | 5.70% |
Loans to customers | |||
Disclosure of credit risk exposure [line items] | |||
Percentage of non-performing loans (as a percent) | 4.80% | 3.20% | 3.20% |
Installment loans to individuals - Revolving consumer credit cards loans | |||
Disclosure of credit risk exposure [line items] | |||
Percentage of non-performing loans (as a percent) | 4.70% | 2.90% | 3.10% |
Installment loans to individuals - Non-revolving consumer loans | |||
Disclosure of credit risk exposure [line items] | |||
Percentage of non-performing loans (as a percent) | 4.80% | 3.40% | 3.30% |
Loans to customers (not impaired) | Loans and advances - Customers | |||
Disclosure of credit risk exposure [line items] | |||
Loan amount | $ 712,983 | $ 724,516 | $ 689,059 |
Loans to customers (not impaired) | Public sector loans | |||
Disclosure of credit risk exposure [line items] | |||
Loan amount | 73,016 | 70,450 | 59,547 |
Loans to customers (not impaired) | Commercial, financial and industrial loans | |||
Disclosure of credit risk exposure [line items] | |||
Loan amount | 346,075 | 379,758 | 371,976 |
Loans to customers (not impaired) | Mortgage loans | |||
Disclosure of credit risk exposure [line items] | |||
Loan amount | 177,665 | 156,209 | 145,749 |
Loans to customers (not impaired) | Loans to customers | |||
Disclosure of credit risk exposure [line items] | |||
Loan amount | 116,227 | 118,099 | 111,787 |
Loans to customers (not impaired) | Installment loans to individuals - Revolving consumer credit cards loans | |||
Disclosure of credit risk exposure [line items] | |||
Loan amount | 53,809 | 59,477 | 56,227 |
Loans to customers (not impaired) | Installment loans to individuals - Non-revolving consumer loans | |||
Disclosure of credit risk exposure [line items] | |||
Loan amount | 62,418 | 58,622 | 55,560 |
Loans to customers (non-performing) | Loans and advances - Customers | |||
Disclosure of credit risk exposure [line items] | |||
Loan amount | 21,909 | 17,952 | 18,429 |
Loans to customers (non-performing) | Commercial, financial and industrial loans | |||
Disclosure of credit risk exposure [line items] | |||
Loan amount | 6,530 | 5,815 | 6,538 |
Loans to customers (non-performing) | Mortgage loans | |||
Disclosure of credit risk exposure [line items] | |||
Loan amount | 9,847 | 8,399 | 8,345 |
Loans to customers (non-performing) | Loans to customers | |||
Disclosure of credit risk exposure [line items] | |||
Loan amount | 5,532 | 3,738 | 3,546 |
Loans to customers (non-performing) | Installment loans to individuals - Revolving consumer credit cards loans | |||
Disclosure of credit risk exposure [line items] | |||
Loan amount | 2,543 | 1,717 | 1,716 |
Loans to customers (non-performing) | Installment loans to individuals - Non-revolving consumer loans | |||
Disclosure of credit risk exposure [line items] | |||
Loan amount | $ 2,989 | $ 2,021 | $ 1,830 |
Risk management - Credit risk_2
Risk management - Credit risk - Other credit risk aspects and management (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020MXN ($)customer | Dec. 31, 2019MXN ($)customer | Dec. 31, 2018MXN ($) | |
Concentration of risk | |||
Financing granted in excess of Basic Capital threshold | $ 0 | $ 0 | |
Percentage of customer loans that are secured | 64.30% | ||
Mortgages to individuals as a percentage of net customer loans | 25.00% | ||
Percentage of sovereign risk exposure concentrated in short-term and medium-term maturities | 53.00% | ||
Increase (decrease) of loans and advances to customers (as a percent) | 1.60% | ||
Amount of non-performing loans | $ 21,909 | ||
Increase (decrease) of non-performing loans (as a percent) | 22.00% | ||
Non-performing loans ratio (as a percent) | 3.10% | ||
Increase (decrease) of non-performing loans ratio (as a percent) | 0.60% | ||
Amount of allowance for loan losses | $ 25,551 | ||
Increase (decrease) of allowance for loan losses (as a percent) | 16.00% | ||
Impairment losses on financial assets | $ 21,799 | 19,220 | $ 18,810 |
Increase (decrease) of impairment loss on financial assets ( as a percent) | 13.40% | ||
Gains (losses) on modification of financial assets | $ (1,743) | ||
Amount of Stage 2 classification | 70,531 | ||
Financial assets at amortized cost category | |||
Concentration of risk | |||
Impairment losses on financial assets | 21,731 | 19,220 | 18,806 |
Financial assets at amortized cost category | Loans and advances - Customers | Impairment losses | |||
Concentration of risk | |||
Post-model adjustments or overlay | 1,458 | ||
Impairment losses on financial assets | (25,184) | $ (21,673) | $ (20,947) |
Financial assets at amortized cost category | Loans and advances - Customers | Impairment overlay | Impairment losses | |||
Concentration of risk | |||
Post-model adjustments or overlay | $ 845 | ||
Credit risk | Maximum | |||
Concentration of risk | |||
Concentration risk, percentage of Basic Capital | 40.00% | 40.00% | |
Credit risk | Three main debtors or groups of individuals | |||
Concentration of risk | |||
Number of debtors | customer | 3 | 3 | |
Concentration of credit risk | $ 40,955 | $ 40,935 | |
Concentration risk, percentage of Basic Capital | 36.59% | 40.84% | |
Credit risk | Debtors granted two loans | |||
Concentration of risk | |||
Number of loans | customer | 2 | ||
Credit risk | Debtors granted loan one | |||
Concentration of risk | |||
Concentration of credit risk | $ 38,000 | ||
Credit risk | Debtors granted loan one | Minimum | |||
Concentration of risk | |||
Concentration risk, percentage of Basic Capital | 10.00% | ||
Credit risk | Debtors granted loan two | |||
Concentration of risk | |||
Concentration of credit risk | $ 20,047 | ||
Credit risk | Debtors granted loan two | Minimum | |||
Concentration of risk | |||
Concentration risk, percentage of Basic Capital | 10.00% |
Risk management - Trading marke
Risk management - Trading market risk (Details) - item | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Methodologies | |||
Confidence level, percent | 99.00% | ||
Time frame from reference date | 2 years | ||
Number of observations used when calculating stressed VaR | 260 | ||
Number of observations used when calculating VaR | 520 | ||
Number of portfolio levels below the overall portfolio unit level backtesting is performed | 1 | ||
Historic period for which regulatory backtesting is calculated | 250 days | ||
Minimum | |||
Methodologies | |||
Time frame from reference date | 520 days | ||
Number of overshootings expected | 2 | ||
Maximum | |||
Methodologies | |||
Number of overshootings expected | 3 | ||
Trading market risk | |||
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 | ||
Number of exceptions to VaR | 2 | 1 | 2 |
Number of VaE breaks | 1 | 1 | |
Trading market risk | Minimum | |||
Methodologies | |||
Time frame from reference date | 520 days |
Risk management - Trading Mar_2
Risk management - Trading Market Risk - VaR analysis and Backtesting (Details) $ in Millions | 6 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020MXN ($) | Jun. 30, 2020MXN ($) | Dec. 31, 2019MXN ($) | Jun. 30, 2019MXN ($) | Dec. 31, 2018MXN ($) | Jun. 30, 2018MXN ($) | Dec. 31, 2020MXN ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | |
Main market risk metric | ||||||||||
Total VaR | $ 74 | $ 74 | ||||||||
VaR percentage | 99.00% | |||||||||
Minimum | ||||||||||
Main market risk metric | ||||||||||
Total VaR | 55 | $ 55 | ||||||||
Weighted average | ||||||||||
Main market risk metric | ||||||||||
Total VaR | 165 | 165 | ||||||||
Maximum | ||||||||||
Main market risk metric | ||||||||||
Total VaR | 378 | 378 | ||||||||
Trading market risk | ||||||||||
Main market risk metric | ||||||||||
Average daily Total VaR | 150 | $ 181 | $ 75 | $ 57 | $ 121 | $ 123 | 165 | $ 66 | $ 122 | $ 95 |
Total VaR | 74 | 74 | 69 | 74 | 74 | 69 | ||||
Increase (decrease) in Total VaR | $ (55) | |||||||||
Risk assumption profile, limit | $ 277 | $ 256 | ||||||||
VaR percentage | 99.00% | 99.00% | 99.00% | |||||||
Trading market risk | Possible scenario | ||||||||||
Main market risk metric | ||||||||||
Increase (decrease) of risk factors (as a percent) | 25.00% | |||||||||
Trading market risk | Remote scenario | ||||||||||
Main market risk metric | ||||||||||
Increase (decrease) of risk factors (as a percent) | 50.00% | |||||||||
Trading market risk | Minimum | ||||||||||
Main market risk metric | ||||||||||
Total VaR | 70 | 55 | 42 | 69 | $ 70 | $ 42 | $ 69 | |||
Trading market risk | Weighted average | ||||||||||
Main market risk metric | ||||||||||
Increase (decrease) in Total VaR | 99 | 27 | ||||||||
Trading market risk | Maximum | ||||||||||
Main market risk metric | ||||||||||
Total VaR | $ 207 | $ 378 | $ 101 | $ 398 | $ 207 | 101 | 398 | |||
Risk assumption profile, limit | 301 | |||||||||
Interest rate, volatility, and exchange rate risk | Probable scenario | ||||||||||
Main market risk metric | ||||||||||
Increase (decrease) in standard deviation | 1 | |||||||||
Interest rate, volatility, and exchange rate risk | Possible scenario | ||||||||||
Main market risk metric | ||||||||||
Factor by which risk factor was multiplied | 1.25 | |||||||||
Increase (decrease) of risk factors (as a percent) | 25.00% | |||||||||
Interest rate, volatility, and exchange rate risk | Remote scenario | ||||||||||
Main market risk metric | ||||||||||
Factor by which risk factor was multiplied | 1.50 | |||||||||
Increase (decrease) of risk factors (as a percent) | 50.00% | |||||||||
Interest rate risk | ||||||||||
Main market risk metric | ||||||||||
Average daily Total VaR | $ 86 | 43 | 110 | |||||||
Interest rate risk | Weighted average | ||||||||||
Main market risk metric | ||||||||||
Average daily Total VaR | 96 | |||||||||
Currency risk | ||||||||||
Main market risk metric | ||||||||||
Average daily Total VaR | $ 127 | 41 | 48 | 51 | ||||||
Currency risk | Probable scenario | ||||||||||
Main market risk metric | ||||||||||
Increase (decrease) in standard deviation | 1 | |||||||||
Currency risk | Possible scenario | ||||||||||
Main market risk metric | ||||||||||
Factor by which risk factor was multiplied | 0.75 | |||||||||
Increase (decrease) of risk factors (as a percent) | (25.00%) | |||||||||
Currency risk | Remote scenario | ||||||||||
Main market risk metric | ||||||||||
Factor by which risk factor was multiplied | 0.5 | |||||||||
Increase (decrease) of risk factors (as a percent) | (50.00%) | |||||||||
Equity price risk | ||||||||||
Main market risk metric | ||||||||||
Average daily Total VaR | $ 5 | $ 3 | $ 6 | $ 5 |
Risk management - Calibration a
Risk management - Calibration and test measures (Details) | 12 Months Ended |
Dec. 31, 2020item | |
Trading market risk | |
Calibration and test measures | |
Number of conditions met | 2 |
Risk management - Structural ba
Risk management - Structural balance sheet risk management (Details) - 12 months ended Dec. 31, 2020 $ in Millions, $ in Millions | USD ($) | MXN ($) |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Value at risk, Confidence level | 99.00% | 99.00% |
Time frame from reference date | 2 years | 2 years |
Minimum | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
LCR (as a percent) | 100.00% | 100.00% |
NSFR (as a percent) | 100.00% | 100.00% |
Time frame from reference date | 520 days | 520 days |
Weighted average | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
LCR (as a percent) | 159.37% | 159.37% |
Medium and long-term Issues | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Issues | $ 4,590 | $ 75,928 |
Risk management - Structural In
Risk management - Structural Interest Rate Risk (Details) - MXN ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Structural interest rate risk | ||||
Total Balance Sheet Assets | $ 1,773,414 | $ 1,407,320 | ||
Liabilities | (1,644,023) | (1,299,114) | ||
Equity | (153,834) | (134,798) | $ (123,287) | $ (114,745) |
Total Balance Sheet Liabilities | (1,837,914) | (1,467,548) | ||
1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 298,025 | 244,549 | ||
Liabilities | (546,507) | (439,952) | ||
3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 108,398 | 89,817 | ||
Liabilities | (50,841) | (64,357) | ||
1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 409,848 | 318,438 | ||
Liabilities | (99,378) | (73,009) | ||
3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 211,882 | 188,633 | ||
Liabilities | (102,491) | (41,277) | ||
More than five years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 419,072 | 340,700 | ||
Liabilities | (195,188) | (115,839) | ||
Total Shareholders' Equity Attributable to the Parent | ||||
Structural interest rate risk | ||||
Equity | (153,797) | (134,758) | (123,255) | $ (114,716) |
Interest rate risk | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 4,117,438 | 3,796,981 | 3,747,361 | |
Total Balance Sheet Liabilities | (3,941,783) | (3,647,201) | (3,612,368) | |
Total Balance Sheet Gap | 175,655 | 149,780 | 134,993 | |
Total Off-Balance Sheet Gap | (27,858) | (27,704) | (5,070) | |
Interest rate risk | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 581,847 | 491,701 | 494,996 | |
Total Balance Sheet Liabilities | (746,516) | (422,576) | (346,599) | |
Total Balance Sheet Gap | (164,669) | 69,125 | 148,397 | |
Total Off-Balance Sheet Gap | 96,078 | 93,301 | 27,072 | |
Total Structural Gap | (68,591) | 162,426 | 175,469 | |
Accumulated Gap | (68,591) | 162,426 | 175,469 | |
Interest rate risk | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 62,060 | 62,680 | 55,526 | |
Total Balance Sheet Liabilities | (42,023) | (36,495) | (24,273) | |
Total Balance Sheet Gap | 20,037 | 26,185 | 31,253 | |
Total Off-Balance Sheet Gap | (518) | 1,883 | 576 | |
Total Structural Gap | 19,519 | 28,068 | 31,829 | |
Accumulated Gap | (49,072) | 190,494 | 207,298 | |
Interest rate risk | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 48,041 | 35,197 | 36,035 | |
Total Balance Sheet Liabilities | (15,857) | (24,465) | (22,977) | |
Total Balance Sheet Gap | 32,184 | 10,732 | 13,058 | |
Total Off-Balance Sheet Gap | (7,124) | (85) | (1,096) | |
Total Structural Gap | 25,060 | 10,647 | 11,962 | |
Accumulated Gap | (24,012) | 201,141 | 219,260 | |
Interest rate risk | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 53,026 | 62,248 | 95,914 | |
Total Balance Sheet Liabilities | (44,250) | (100,532) | (99,426) | |
Total Balance Sheet Gap | 8,776 | (38,284) | (3,512) | |
Total Off-Balance Sheet Gap | (1,257) | (3,869) | 4,739 | |
Total Structural Gap | 7,519 | (42,153) | 1,227 | |
Accumulated Gap | (16,493) | 158,988 | 220,487 | |
Interest rate risk | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 231,683 | 194,959 | 177,114 | |
Total Balance Sheet Liabilities | (105,925) | (183,242) | (170,918) | |
Total Balance Sheet Gap | 125,758 | 11,717 | 6,196 | |
Total Off-Balance Sheet Gap | (16,773) | (20,620) | (5,802) | |
Total Structural Gap | 108,985 | (8,903) | 394 | |
Accumulated Gap | 92,492 | 150,085 | 220,881 | |
Interest rate risk | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 110,289 | 122,796 | 70,121 | |
Total Balance Sheet Liabilities | (39,636) | (27,899) | (60,990) | |
Total Balance Sheet Gap | 70,653 | 94,897 | 9,131 | |
Total Off-Balance Sheet Gap | (20,744) | (14,927) | (3,267) | |
Total Structural Gap | 49,909 | 79,970 | 5,864 | |
Accumulated Gap | 142,401 | 230,055 | 226,745 | |
Interest rate risk | More than five years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 252,655 | 184,250 | 120,912 | |
Total Balance Sheet Liabilities | (67,300) | (126,918) | (108,853) | |
Total Balance Sheet Gap | 185,355 | 57,332 | 12,059 | |
Total Off-Balance Sheet Gap | (77,053) | (83,290) | (27,293) | |
Total Structural Gap | 108,302 | (25,958) | (15,234) | |
Accumulated Gap | 250,703 | 204,097 | 211,511 | |
Interest rate risk | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 2,777,837 | 2,643,150 | 2,696,742 | |
Total Balance Sheet Liabilities | (2,880,277) | (2,725,072) | (2,778,333) | |
Total Balance Sheet Gap | (102,440) | (81,922) | (81,591) | |
Total Off-Balance Sheet Gap | (466) | (99) | ||
Total Structural Gap | (102,906) | (82,021) | (81,591) | |
Accumulated Gap | 147,797 | 122,076 | 129,920 | |
Interest rate risk | Total Shareholders' Equity Attributable to the Parent | ||||
Structural interest rate risk | ||||
Equity | (158,338) | (138,381) | (125,813) | |
Interest rate risk | Total Shareholders' Equity Attributable to the Parent | Not Sensitive | ||||
Structural interest rate risk | ||||
Equity | (158,338) | (138,381) | (125,813) | |
Interest rate risk | Money Market | ||||
Structural interest rate risk | ||||
Liabilities | (415,269) | (211,629) | (114,421) | |
Interest rate risk | Money Market | 1 month | ||||
Structural interest rate risk | ||||
Liabilities | (136,167) | (105,227) | (27,386) | |
Interest rate risk | Money Market | 3 months | ||||
Structural interest rate risk | ||||
Liabilities | (25) | (591) | (89) | |
Interest rate risk | Money Market | 1 to 3 years | ||||
Structural interest rate risk | ||||
Liabilities | (35) | |||
Interest rate risk | Money Market | Not Sensitive | ||||
Structural interest rate risk | ||||
Liabilities | (279,042) | (105,810) | (86,945) | |
Interest rate risk | Deposits | ||||
Structural interest rate risk | ||||
Liabilities | (712,440) | (631,480) | (636,907) | |
Interest rate risk | Deposits | 1 month | ||||
Structural interest rate risk | ||||
Liabilities | (538,576) | (238,192) | (253,774) | |
Interest rate risk | Deposits | 3 months | ||||
Structural interest rate risk | ||||
Liabilities | (28,189) | (25,728) | (17,801) | |
Interest rate risk | Deposits | 6 months | ||||
Structural interest rate risk | ||||
Liabilities | (7,546) | (14,968) | (12,984) | |
Interest rate risk | Deposits | 6 - 12 months | ||||
Structural interest rate risk | ||||
Liabilities | (38,605) | (89,071) | (91,065) | |
Interest rate risk | Deposits | 1 to 3 years | ||||
Structural interest rate risk | ||||
Liabilities | (40,318) | (145,780) | (156,158) | |
Interest rate risk | Deposits | More than five years | ||||
Structural interest rate risk | ||||
Liabilities | (59,206) | (117,741) | (105,126) | |
Interest rate risk | Long-Term Funding | ||||
Structural interest rate risk | ||||
Liabilities | (234,391) | (207,463) | (207,327) | |
Interest rate risk | Long-Term Funding | 1 month | ||||
Structural interest rate risk | ||||
Liabilities | (71,773) | (79,157) | (65,439) | |
Interest rate risk | Long-Term Funding | 3 months | ||||
Structural interest rate risk | ||||
Liabilities | (13,809) | (10,176) | (6,383) | |
Interest rate risk | Long-Term Funding | 6 months | ||||
Structural interest rate risk | ||||
Liabilities | (8,311) | (9,497) | (9,993) | |
Interest rate risk | Long-Term Funding | 6 - 12 months | ||||
Structural interest rate risk | ||||
Liabilities | (5,645) | (11,461) | (8,361) | |
Interest rate risk | Long-Term Funding | 1 to 3 years | ||||
Structural interest rate risk | ||||
Liabilities | (65,572) | (37,462) | (14,760) | |
Interest rate risk | Long-Term Funding | 3 to 5 years | ||||
Structural interest rate risk | ||||
Liabilities | (39,636) | (27,899) | (60,990) | |
Interest rate risk | Long-Term Funding | More than five years | ||||
Structural interest rate risk | ||||
Liabilities | (8,094) | (9,177) | (3,727) | |
Interest rate risk | Long-Term Funding | Not Sensitive | ||||
Structural interest rate risk | ||||
Liabilities | (21,552) | (22,633) | (37,675) | |
Interest rate risk | Other Liabilities | ||||
Structural interest rate risk | ||||
Liabilities | (2,421,345) | (2,458,248) | (2,527,900) | |
Interest rate risk | Other Liabilities | Not Sensitive | ||||
Structural interest rate risk | ||||
Liabilities | (2,421,345) | (2,458,248) | (2,527,900) | |
Interest rate risk | Money Market | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 208,892 | 84,372 | 101,353 | |
Interest rate risk | Money Market | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 97,682 | 33,396 | 35,304 | |
Interest rate risk | Money Market | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 224 | 4,299 | ||
Interest rate risk | Money Market | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 10 | 1,714 | ||
Interest rate risk | Money Market | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 393 | |||
Interest rate risk | Money Market | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 29 | 52 | ||
Interest rate risk | Money Market | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 110,976 | 44,540 | 65,997 | |
Interest rate risk | Loans and advances | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 842,579 | 828,076 | 789,010 | |
Interest rate risk | Loans and advances | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 391,465 | 415,078 | 400,172 | |
Interest rate risk | Loans and advances | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 51,416 | 48,155 | 44,475 | |
Interest rate risk | Loans and advances | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 29,398 | 29,078 | 27,446 | |
Interest rate risk | Loans and advances | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 40,954 | 54,722 | 51,727 | |
Interest rate risk | Loans and advances | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 110,704 | 125,650 | 119,014 | |
Interest rate risk | Loans and advances | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 59,480 | 60,560 | 56,923 | |
Interest rate risk | Loans and advances | More than five years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 158,690 | 95,727 | 90,388 | |
Interest rate risk | Loans and advances | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 473 | (895) | (1,135) | |
Interest rate risk | Intragroup | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 2,324 | 2,391 | (226) | |
Interest rate risk | Intragroup | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 2,324 | 2,391 | (226) | |
Interest rate risk | Securities | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 612,958 | 399,818 | 351,755 | |
Interest rate risk | Securities | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 92,700 | 43,227 | 59,520 | |
Interest rate risk | Securities | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 10,420 | 10,226 | 11,051 | |
Interest rate risk | Securities | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 18,633 | 4,405 | 8,589 | |
Interest rate risk | Securities | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 12,072 | 7,133 | 44,187 | |
Interest rate risk | Securities | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 120,979 | 69,280 | 58,048 | |
Interest rate risk | Securities | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 50,809 | 62,236 | 13,198 | |
Interest rate risk | Securities | More than five years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 93,965 | 88,523 | 30,524 | |
Interest rate risk | Securities | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 213,379 | 114,790 | 126,637 | |
Interest rate risk | Permanent | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 17,838 | 16,890 | 14,417 | |
Interest rate risk | Permanent | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 17,838 | 16,890 | 14,417 | |
Interest rate risk | Other assets Member | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 2,432,847 | 2,465,434 | 2,491,052 | |
Interest rate risk | Other assets Member | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | $ 2,432,847 | $ 2,465,434 | $ 2,491,052 | |
Net interest income risk | ||||
Structural interest rate risk | ||||
Period covered by sensitivity analysis | 1 year | 1 year | 1 year | |
Increase (decrease) in risk consumption due to reasonably possible increase in risk assumption | $ 350 | $ 1,000 | $ 700 | |
Market value of equity | ||||
Structural interest rate risk | ||||
Increase (decrease) in risk consumption due to reasonably possible increase in risk assumption | $ 3,000 | $ 3,700 | $ 3,900 |
Risk management - Structural Fo
Risk management - Structural Foreign Currency Risk (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020MXN ($) | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Confidence level (as a percent) | 99.00% |
Currency risk | |
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 - Liquidity Ris
Risk management - Liquidity Risk (Details) - item | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Risk management | ||
Period LCR was below regulatory threshold | 4 days | |
Internal limit for LCR (as a percent) | 110.00% | |
Period over which entity would meet liquidity requirements under the worst case scenario | 45 days | |
Forecast | ||
Risk management | ||
NSFR (as a percent) | 100.00% | |
Minimum | ||
Risk management | ||
LCR (as a percent) | 100.00% | |
NSFR (as a percent) | 100.00% | |
Weighted average | ||
Risk management | ||
LCR (as a percent) | 159.37% | |
Liquidity risk | ||
Risk management | ||
Available liquid assets, period | 30 days | |
Number of scenarios | 4 |
Risk management - Funding and L
Risk management - Funding and Liquidity Risk (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Structural interest rate risk | ||||
Total Balance Sheet Assets | $ 1,773,414 | $ 1,407,320 | ||
Liabilities | (1,644,023) | (1,299,114) | ||
Equity | (153,834) | (134,798) | $ (123,287) | $ (114,745) |
Total Balance Sheet Liabilities | (1,837,914) | (1,467,548) | ||
1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 298,025 | 244,549 | ||
Liabilities | (546,507) | (439,952) | ||
3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 108,398 | 89,817 | ||
Liabilities | (50,841) | (64,357) | ||
1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 409,848 | 318,438 | ||
Liabilities | (99,378) | (73,009) | ||
3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 211,882 | 188,633 | ||
Liabilities | (102,491) | (41,277) | ||
More than five years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 419,072 | 340,700 | ||
Liabilities | (195,188) | (115,839) | ||
Total Shareholders' Equity Attributable to the Parent | ||||
Structural interest rate risk | ||||
Equity | (153,797) | (134,758) | (123,255) | $ (114,716) |
Liquidity risk | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 4,189,238 | 3,902,867 | 3,767,210 | |
Total Balance Sheet Liabilities | (3,999,973) | (3,730,403) | (3,626,163) | |
Total Balance Sheet Gap | 189,265 | 172,464 | 141,047 | |
Total Off-Balance Sheet Gap | (3,137) | 20,905 | 30,927 | |
Liquidity risk | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 234,231 | 134,561 | 303,529 | |
Total Balance Sheet Liabilities | (332,739) | (348,453) | (284,649) | |
Total Balance Sheet Gap | (98,508) | (213,892) | 18,880 | |
Total Off-Balance Sheet Gap | (18,378) | (15,134) | 755 | |
Total Structural Gap | (116,886) | (229,026) | 19,635 | |
Accumulated Gap | (116,886) | (229,026) | 19,635 | |
Liquidity risk | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 92,390 | 93,016 | 78,133 | |
Total Balance Sheet Liabilities | (50,447) | (52,981) | (31,454) | |
Total Balance Sheet Gap | 41,943 | 40,035 | 46,679 | |
Total Off-Balance Sheet Gap | (431) | 398 | 108 | |
Total Structural Gap | 41,512 | 40,433 | 46,787 | |
Accumulated Gap | (75,374) | (188,593) | 66,422 | |
Liquidity risk | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 89,297 | 75,365 | 79,085 | |
Total Balance Sheet Liabilities | (46,637) | (50,531) | (34,594) | |
Total Balance Sheet Gap | 42,660 | 24,834 | 44,491 | |
Total Off-Balance Sheet Gap | (337) | 730 | (144) | |
Total Structural Gap | 42,323 | 25,564 | 44,347 | |
Accumulated Gap | (33,051) | (163,029) | 110,769 | |
Liquidity risk | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 119,332 | 133,116 | 160,129 | |
Total Balance Sheet Liabilities | (60,122) | (63,270) | (43,605) | |
Total Balance Sheet Gap | 59,210 | 69,846 | 116,524 | |
Total Off-Balance Sheet Gap | 233 | 1,125 | 1,637 | |
Total Structural Gap | 59,443 | 70,971 | 118,161 | |
Accumulated Gap | 26,392 | (92,058) | 228,930 | |
Liquidity risk | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 377,301 | 362,488 | 264,286 | |
Total Balance Sheet Liabilities | (167,082) | (129,530) | (60,079) | |
Total Balance Sheet Gap | 210,219 | 232,958 | 204,207 | |
Total Off-Balance Sheet Gap | 3,417 | 10,566 | 5,657 | |
Total Structural Gap | 213,636 | 243,524 | 209,864 | |
Accumulated Gap | 240,028 | 151,466 | 438,794 | |
Liquidity risk | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 172,776 | 185,117 | 129,283 | |
Total Balance Sheet Liabilities | (104,449) | (71,576) | (83,770) | |
Total Balance Sheet Gap | 68,327 | 113,541 | 45,513 | |
Total Off-Balance Sheet Gap | (1,112) | 5,253 | 6,293 | |
Total Structural Gap | 67,215 | 118,794 | 51,806 | |
Accumulated Gap | 307,243 | 270,260 | 490,600 | |
Liquidity risk | More than five years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 322,024 | 269,956 | 181,693 | |
Total Balance Sheet Liabilities | (358,258) | (289,318) | (309,566) | |
Total Balance Sheet Gap | (36,234) | (19,362) | (127,873) | |
Total Off-Balance Sheet Gap | (494) | 6,175 | 3,781 | |
Total Structural Gap | (36,728) | (13,187) | (124,092) | |
Accumulated Gap | 270,515 | 257,073 | 366,508 | |
Liquidity risk | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 2,781,887 | 2,649,247 | 2,571,073 | |
Total Balance Sheet Liabilities | (2,880,240) | (2,724,743) | (2,778,446) | |
Total Balance Sheet Gap | (98,353) | (75,496) | (207,373) | |
Total Off-Balance Sheet Gap | 13,964 | 11,791 | 12,838 | |
Total Structural Gap | (84,389) | (63,705) | (194,535) | |
Accumulated Gap | 186,126 | 193,368 | 171,973 | |
Liquidity risk | Total Shareholders' Equity Attributable to the Parent | ||||
Structural interest rate risk | ||||
Equity | (158,338) | (138,381) | (125,813) | |
Liquidity risk | Total Shareholders' Equity Attributable to the Parent | Not Sensitive | ||||
Structural interest rate risk | ||||
Equity | (158,338) | (138,381) | (125,813) | |
Liquidity risk | Money Market | ||||
Structural interest rate risk | ||||
Liabilities | (416,864) | (210,680) | (114,421) | |
Liquidity risk | Money Market | 1 month | ||||
Structural interest rate risk | ||||
Liabilities | (136,167) | (100,790) | (27,386) | |
Liquidity risk | Money Market | 3 months | ||||
Structural interest rate risk | ||||
Liabilities | (342) | (718) | (89) | |
Liquidity risk | Money Market | 6 months | ||||
Structural interest rate risk | ||||
Liabilities | (397) | (684) | ||
Liquidity risk | Money Market | 6 - 12 months | ||||
Structural interest rate risk | ||||
Liabilities | (877) | (2,116) | ||
Liquidity risk | Money Market | 1 to 3 years | ||||
Structural interest rate risk | ||||
Liabilities | (78) | (903) | ||
Liquidity risk | Money Market | Not Sensitive | ||||
Structural interest rate risk | ||||
Liabilities | (279,004) | (105,470) | (86,945) | |
Liquidity risk | Deposits | ||||
Structural interest rate risk | ||||
Liabilities | (765,648) | (709,438) | (643,226) | |
Liquidity risk | Deposits | 1 month | ||||
Structural interest rate risk | ||||
Liabilities | (188,768) | (238,812) | (253,793) | |
Liquidity risk | Deposits | 3 months | ||||
Structural interest rate risk | ||||
Liabilities | (36,499) | (33,549) | (20,848) | |
Liquidity risk | Deposits | 6 months | ||||
Structural interest rate risk | ||||
Liabilities | (22,885) | (26,289) | (17,375) | |
Liquidity risk | Deposits | 6 - 12 months | ||||
Structural interest rate risk | ||||
Liabilities | (26,267) | (26,585) | (14,367) | |
Liquidity risk | Deposits | 1 to 3 years | ||||
Structural interest rate risk | ||||
Liabilities | (78,592) | (62,061) | (19,813) | |
Liquidity risk | Deposits | 3 to 5 years | ||||
Structural interest rate risk | ||||
Liabilities | (62,686) | (42,162) | (11,475) | |
Liquidity risk | Deposits | More than five years | ||||
Structural interest rate risk | ||||
Liabilities | (349,951) | (279,979) | (305,556) | |
Liquidity risk | Long-Term Funding | ||||
Structural interest rate risk | ||||
Liabilities | (237,778) | (213,656) | (214,803) | |
Liquidity risk | Long-Term Funding | 1 month | ||||
Structural interest rate risk | ||||
Liabilities | (7,804) | (8,851) | (3,470) | |
Liquidity risk | Long-Term Funding | 3 months | ||||
Structural interest rate risk | ||||
Liabilities | (13,606) | (18,714) | (10,517) | |
Liquidity risk | Long-Term Funding | 6 months | ||||
Structural interest rate risk | ||||
Liabilities | (23,355) | (23,558) | (17,219) | |
Liquidity risk | Long-Term Funding | 6 - 12 months | ||||
Structural interest rate risk | ||||
Liabilities | (32,978) | (34,569) | (29,238) | |
Liquidity risk | Long-Term Funding | 1 to 3 years | ||||
Structural interest rate risk | ||||
Liabilities | (88,412) | (66,566) | (40,266) | |
Liquidity risk | Long-Term Funding | 3 to 5 years | ||||
Structural interest rate risk | ||||
Liabilities | (41,763) | (29,414) | (72,295) | |
Liquidity risk | Long-Term Funding | More than five years | ||||
Structural interest rate risk | ||||
Liabilities | (8,307) | (9,339) | (4,010) | |
Liquidity risk | Long-Term Funding | Not Sensitive | ||||
Structural interest rate risk | ||||
Liabilities | (21,553) | (22,644) | (37,788) | |
Liquidity risk | Other Liabilities | ||||
Structural interest rate risk | ||||
Liabilities | (2,421,345) | (2,458,248) | (2,527,900) | |
Liquidity risk | Other Liabilities | Not Sensitive | ||||
Structural interest rate risk | ||||
Liabilities | (2,421,345) | (2,458,248) | (2,527,900) | |
Liquidity risk | Money Market | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 210,487 | 83,423 | 101,353 | |
Liquidity risk | Money Market | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 99,500 | 38,853 | 35,304 | |
Liquidity risk | Money Market | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 10 | |||
Liquidity risk | Money Market | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 29 | 52 | ||
Liquidity risk | Money Market | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 110,976 | 44,540 | 65,997 | |
Liquidity risk | Loans and advances | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 906,434 | 923,390 | 894,975 | |
Liquidity risk | Loans and advances | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 53,486 | 63,743 | 63,631 | |
Liquidity risk | Loans and advances | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 86,614 | 91,160 | 77,990 | |
Liquidity risk | Loans and advances | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 70,534 | 73,504 | 77,902 | |
Liquidity risk | Loans and advances | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 103,026 | 122,407 | 117,370 | |
Liquidity risk | Loans and advances | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 252,900 | 280,957 | 262,468 | |
Liquidity risk | Loans and advances | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 113,424 | 121,497 | 126,185 | |
Liquidity risk | Loans and advances | More than five years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 225,978 | 171,017 | 170,565 | |
Liquidity risk | Loans and advances | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 473 | (895) | (1,135) | |
Liquidity risk | Intragroup | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 2,324 | 2,391 | (226) | |
Liquidity risk | Intragroup | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 2,324 | 2,391 | (226) | |
Liquidity risk | Securities | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 619,308 | 411,339 | 265,639 | |
Liquidity risk | Securities | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 81,245 | 31,965 | 204,594 | |
Liquidity risk | Securities | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 5,776 | 1,856 | 143 | |
Liquidity risk | Securities | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 18,753 | 1,861 | 1,183 | |
Liquidity risk | Securities | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 16,306 | 10,709 | 42,759 | |
Liquidity risk | Securities | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 124,401 | 81,502 | 1,766 | |
Liquidity risk | Securities | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 59,352 | 63,620 | 3,098 | |
Liquidity risk | Securities | More than five years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 96,046 | 98,939 | 11,128 | |
Liquidity risk | Securities | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 217,429 | 120,887 | 968 | |
Liquidity risk | Permanent | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 17,838 | 16,890 | 14,417 | |
Liquidity risk | Permanent | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 17,838 | 16,890 | 14,417 | |
Liquidity risk | Other assets Member | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 2,432,847 | 2,465,434 | 2,491,052 | |
Liquidity risk | Other assets Member | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | $ 2,432,847 | $ 2,465,434 | $ 2,491,052 |
Risk management - Capital risk
Risk management - Capital risk (Details) - item | Apr. 29, 2016 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2016 |
Risk management | ||||
Number of work streams used to monitor risk | 4 | |||
Leverage ratio, baseline reference effect percentage | 3.00% | |||
Leverage ratio | 7.39% | |||
Capital preservation supplement, Projected period | 4 years | |||
Capital preservation supplement target | 1.20% | |||
Capital preservation supplement, Percent of requirement achieved | 100.00% | |||
Capital conservation buffer (as a percent) | 2.50% | |||
Net Capital / Assets subject to Credit, Market and Operating Risk | 19.01% | 16.37% |
Risk management - Regulatory Ra
Risk management - Regulatory Ratios (Details) | 12 Months Ended |
Dec. 31, 2020buildingitem | |
Risk management | |
Number of buildings established for contingency operation | building | 3 |
Number of lines of defense in entity's risk control function | 3 |
Risk tolerance (as a percent) | 0.00% |
Number of activities in entity's annual compliance program | 70 |
Number of fora in entity's governance structure | 2 |
Number of pillars in FCC framework | 3 |
Number of pillars in risk management model | 4 |
Time horizon of financial plan | 3 years |
Associated entities and conso_3
Associated entities and consolidated subsidiaries - Associated entities (Details) - MXN ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | |
Associated entities | ||||
Income from entities accounted for using the equity method | $ 178 | |||
Summary of financial information | ||||
Operating profit before tax | 25,200 | $ 27,290 | $ 24,814 | |
Income tax | (6,226) | (6,909) | (5,458) | |
PROFIT FOR THE YEAR | 18,974 | 20,381 | 19,356 | |
Other comprehensive income/(loss) for the year, net of income tax | 760 | 1,875 | (1,282) | |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | $ 19,734 | 22,256 | $ 18,074 | |
Santander Merchant Platform Solutions Mexico, S.A. de C.V. | ||||
Associated entities | ||||
Proportion of ownership interest in associate (as a percent) | 49.00% | |||
Santander Merchant Platform Solutions Mexico, S.A. de C.V. | ||||
Summary of financial information | ||||
Current assets | $ 502 | |||
Non-current assets | 491 | |||
Current liabilities | (290) | |||
Non-current liabilities | (25) | |||
Net assets | $ 315 | $ 315 | $ 678 | |
Revenue | 1,834 | |||
Expenses | (1,464) | |||
Operating profit before tax | 370 | |||
Income tax | (7) | |||
PROFIT FOR THE YEAR | 363 | |||
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 363 | |||
Net assets on investment date | $ 315 |
Associated entities and conso_4
Associated entities and consolidated subsidiaries - Associated entities - Reconciliation (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Associated entities | |||
Income from entities accounted for using the equity method | $ 178 | ||
Profit for the year | 18,974 | $ 20,381 | $ 19,356 |
Carrying amount | $ 1,001 | ||
Santander Merchant Platform Solutions Mexico, S.A. de C.V. | |||
Associated entities | |||
Proportion of ownership interest in associate (as a percent) | 49.00% | ||
Bank?s share in associated entity (percentage) | 49.00% | ||
Bank?s share in associated entity (percentage) | $ 332 | ||
Goodwill | 669 | ||
Carrying amount | 1,001 | ||
Santander Merchant Platform Solutions Mexico, S.A. de C.V. | |||
Associated entities | |||
Net assets on investment date | 315 | ||
Profit for the year | 363 | ||
Closing net assets | $ 678 | $ 315 |
Associated entities and conso_5
Associated entities and consolidated subsidiaries - Composition of the Bank (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Subsidiaries | |||
Other income (expense) from subsidiaries, jointly controlled entities and associates | $ 178 | ||
Non-controlling interest | $ 37 | $ 40 | $ 32 |
Santander Consumo, S.A. de C.V., Sociedad Financiera de Objeto Multiple, Entidad Regulada | |||
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., Sociedad Financiera de Objeto Multiple, Entidad Regulada | |||
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. | |||
Subsidiaries | |||
Proportion of ownership interest held by the Bank | 99.99% | ||
Proportion of voting power held by the Bank | 100.00% | ||
Fideicomiso Irrevocable F00361 [Member] | |||
Subsidiaries | |||
Proportion of ownership interest held by the Bank | 99.99% | ||
Proportion of voting power held by the Bank | 100.00% | ||
Openbank Santander Mexico, S.A. de C.V., Sociedad Financiera de Objeto Multiple, Entidad Regulada, Grupo Financiero Santander Mexico [Member] | |||
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% |
Associated entities and conso_6
Associated entities and consolidated subsidiaries - Significant restrictions (Details) - MXN ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial instruments | ||
Financial instruments received as collateral | $ 65,177 | $ 82,342 |
Santander Consumo, S.A. de C.V., Sociedad Financiera de Objeto Multiple, Entidad Regulada | ||
Financial instruments | ||
Assets to which significant restrictions apply | 38,500 | |
Santander Inclusion Financiera, S.A. de C.V., Sociedad Financiera de Objeto Multiple, Entidad Regulada | ||
Financial instruments | ||
Assets to which significant restrictions apply | 343 | |
Statutory reserve | ||
Financial instruments | ||
Liabilities to which significant restrictions apply | 14,346 | |
Statutory reserve on individual basis | ||
Financial instruments | ||
Liabilities to which significant restrictions apply | 11,217 | |
Financial instruments in connection with derivative transactions in organized markets | ||
Financial instruments | ||
Financial assets pledged as collateral | 4,123 | 5,153 |
Deposits - Credit institutions and customers | Financial instrument in connection with OTC derivative transactions | ||
Financial instruments | ||
Liabilities to which significant restrictions apply | 27,954 | |
Debt instruments. | Financial instrument in connection with OTC derivative transactions | ||
Financial instruments | ||
Liabilities to which significant restrictions apply | 5,483 | |
M, M3 and M5 Mexican Government Bonds (M 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 (M 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 | 23,978 | |
Debt instruments. | Financial instruments in connection with repurchase agreement transactions | ||
Financial instruments | ||
Assets to which significant restrictions apply | 70,356 | |
Financial instruments received as collateral | 59,557 | 76,592 |
Debt instruments. | Financial instrument in connection with OTC derivative transactions | ||
Financial instruments | ||
Financial instruments received as collateral | 5,483 | 5,736 |
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 | 129,240 | 96,681 |
Debt instruments. | Financial assets at fair value through other comprehensive income category | Financial instruments in connection with securities loans transactions | ||
Financial instruments | ||
Financial assets pledged as collateral | 4,998 | |
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 | 201,447 | |
Financial assets pledged as collateral | 201,477 | 92,764 |
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 | 10,729 | 8,678 |
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 | 5,306 | |
Financial assets pledged as collateral | 5,306 | 4,472 |
Special CETES | ||
Financial instruments | ||
Assets to which significant restrictions apply | 3,688 | |
Bonos de Regulacion Monetaria Reportables (BREMS R) | ||
Financial instruments | ||
Assets to which significant restrictions apply | 7,785 | |
Bonos de Regulacion Monetaria Reportables (BREMS R) | Financial assets at amortized cost category | Financial instruments in connection with repurchase agreement transactions | ||
Financial instruments | ||
Assets to which significant restrictions apply | 7,706 | |
Financial assets pledged as collateral | 7,706 | 4,999 |
Mexican government securities | Financial instruments in connection with repurchase agreement transactions | ||
Financial instruments | ||
Assets to which significant restrictions apply | 129,240 | |
Mexican government securities | Financial instruments in connection with securities loans transactions | ||
Financial instruments | ||
Assets to which significant restrictions apply | 10,729 | |
Equity instruments. | Financial instruments in connection with securities loans transactions | ||
Financial instruments | ||
Financial assets pledged as collateral | 0 | |
Financial instruments received as collateral | 137 | 14 |
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 | 7 | 0 |
Financial instruments received as collateral | 137 | 14 |
Loans and advances - Customers | ||
Financial instruments | ||
Financial assets pledged as collateral | 4,123 | 5,153 |
Loans and advances - Customers | Financial instruments in connection with derivative transactions in organized markets | ||
Financial instruments | ||
Assets to which significant restrictions apply | 4,123 | |
Loans and advances - Credit institutions | Financial instrument in connection with OTC derivative transactions | ||
Financial instruments | ||
Assets to which significant restrictions apply | 27,954 | |
Loans and advances - Credit institutions | Other financial assets at fair value through profit or loss | Financial instruments in connection with repurchase agreement transactions | ||
Financial instruments | ||
Financial instruments received as collateral | 59,599 | 54,097 |
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 | $ 27,954 | $ 14,300 |