Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Statement | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2022 |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 000-55899 |
Entity Registrant Name | Banco Santander Mexico S.A., Institucion de Banca Multiple, Grupo Financiero Santander Mexico |
Entity Incorporation, State or Country Code | O5 |
Entity Address, Address Line One | Avenida Prolongación Paseo de la Reforma 500 |
Entity Address, Address Line Two | Colonia Lomas de Santa Fe |
Entity Address, Address Line Three | Alcaldía Álvaro Obregón |
Entity Address, Postal Zip Code | 01219 |
Entity Address, City or Town | Mexico City |
Entity Address, Country | MX |
Security Reporting Obligation | 15(d) |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Auditor Firm ID | 1128 |
Auditor Name | PricewaterhouseCoopers, S.C. |
Auditor Location | Mexico City, Mexico |
Entity Central Index Key | 0001698287 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Business contact | |
Statement | |
Contact Personnel Name | Fernando Borja Mujica |
Entity Address, Address Line One | Avenida Prolongación Paseo de la Reforma 500 |
Entity Address, Address Line Two | Colonia Lomas de Santa Fe |
Entity Address, Address Line Three | Alcaldía Álvaro Obregón |
Entity Address, Postal Zip Code | 01219 |
Entity Address, City or Town | Mexico City |
Entity Address, Country | MX |
City Area Code | 52 |
Local Phone Number | 55-5257-8000 |
Contact Personnel Fax Number | 55-5269-2701 |
American Depository Shares | |
Statement | |
Title of 12(b) Security | American Depositary Shares, each representing five shares of the Series B common stock |
Trading Symbol | BSMX |
Security Exchange Name | NYSE |
Series B shares | |
Statement | |
Title of 12(b) Security | Series B shares, par value of Ps.3.780782962 |
Trading Symbol | BSMX |
Security Exchange Name | NYSE |
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, 2022 | Dec. 31, 2021 |
ASSETS | ||
CASH AND BALANCES WITH THE CENTRAL BANK | $ 72,815 | $ 63,073 |
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS: | 484,987 | 361,615 |
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME: | 315,549 | 395,829 |
FINANCIAL ASSETS AT AMORTIZED COST: | 860,357 | 785,108 |
HEDGING DERIVATIVES | 10,181 | 11,248 |
NON-CURRENT ASSETS HELD FOR SALE | 3,015 | 773 |
INVESTMENTS IN ASSOCIATED ENTITIES | 1,380 | |
TANGIBLE ASSETS | 13,707 | 12,620 |
RIGHT-OF-USE ASSETS | 6,264 | 5,175 |
INTANGIBLE ASSETS: | 10,681 | 9,411 |
Goodwill | 1,734 | 1,734 |
Other intangible assets | 8,947 | 7,677 |
TAX ASSETS | 24,684 | 21,855 |
Current | 22 | 3,744 |
Deferred | 24,662 | 18,111 |
OTHER ASSETS | 11,181 | 10,126 |
TOTAL ASSETS | 1,813,421 | 1,678,213 |
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 434,112 | 351,417 |
FINANCIAL LIABILITIES AT AMORTIZED COST: | 1,165,889 | 1,118,145 |
HEDGING DERIVATIVES | 4,461 | 8,162 |
PROVISIONS | 12,931 | 10,789 |
Provisions for pensions and similar obligations | 8,158 | 7,499 |
LEASE LIABILITIES | 6,965 | 5,716 |
TAX LIABILITIES | 934 | 518 |
Current | 721 | 12 |
Deferred | 213 | 506 |
OTHER LIABILITIES | 24,675 | 19,878 |
TOTAL LIABILITIES | 1,649,967 | 1,514,625 |
SHAREHOLDERS' EQUITY | 170,466 | 165,209 |
Share capital | 25,660 | 25,660 |
Accumulated reserves | 120,698 | 118,748 |
Profit for the year attributable to the Parent | 24,108 | 20,801 |
VALUATION ADJUSTMENTS: | (7,074) | (1,669) |
Financial assets at fair value through other comprehensive income | (6,637) | (2,083) |
Cash flow hedges | (437) | 414 |
TOTAL SHAREHOLDERS' EQUITY ATTRIBUTABLE TO THE PARENT | 163,392 | 163,540 |
NON-CONTROLLING INTERESTS | 62 | 48 |
TOTAL EQUITY | 163,454 | 163,588 |
TOTAL LIABILITIES AND EQUITY | 1,813,421 | 1,678,213 |
Provision for taxes and other legal contingencies | ||
LIABILITIES AND EQUITY | ||
Other provisions | 3,009 | 2,141 |
Provisions for off-balance sheet risk | ||
LIABILITIES AND EQUITY | ||
Other provisions | 1,539 | 1,108 |
Other provisions member | ||
LIABILITIES AND EQUITY | ||
Other provisions | 225 | 41 |
Trading derivative liabilities | ||
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 231,188 | 176,678 |
Short positions | ||
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 28,762 | 19,554 |
Deposits - The Central banks | ||
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 31,055 | 23,002 |
FINANCIAL LIABILITIES AT AMORTIZED COST: | 89,753 | 86,616 |
Deposits - Credit institutions | ||
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 17,846 | |
FINANCIAL LIABILITIES AT AMORTIZED COST: | 83,339 | |
Deposits - Credit institutions, Excludes repurchase agreements | ||
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES AT AMORTIZED COST: | 65,354 | 78,182 |
Deposits - Credit institutions Repurchase Agreements | ||
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 22,818 | 17,846 |
FINANCIAL LIABILITIES AT AMORTIZED COST: | 9,003 | 5,157 |
Customer deposits, Excludes repurchase agreements | ||
ASSETS | ||
FINANCIAL ASSETS AT AMORTIZED COST: | 781,607 | |
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES AT AMORTIZED COST: | 781,607 | 760,325 |
Customer deposits - Repurchase agreements | ||
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 119,769 | 114,078 |
FINANCIAL LIABILITIES AT AMORTIZED COST: | 26,922 | 17,561 |
Marketable debt securities | ||
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS: | 520 | 259 |
FINANCIAL LIABILITIES AT AMORTIZED COST: | 134,393 | 101,423 |
Subordinated liabilities | ||
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES AT AMORTIZED COST: | 39,384 | 51,643 |
Other financial liabilities | ||
LIABILITIES AND EQUITY | ||
FINANCIAL LIABILITIES AT AMORTIZED COST: | 19,473 | 17,238 |
Loans and advances - Credit institutions | ||
ASSETS | ||
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS: | 102,652 | 58,486 |
FINANCIAL ASSETS AT AMORTIZED COST: | 40,400 | 36,492 |
Loans and advances - Customers | ||
ASSETS | ||
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS: | 19,207 | 10,000 |
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME: | 946 | 4,056 |
FINANCIAL ASSETS AT AMORTIZED COST: | 797,716 | 736,997 |
Debt instruments | ||
ASSETS | ||
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS: | 130,249 | 110,975 |
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME: | 313,906 | 390,974 |
FINANCIAL ASSETS AT AMORTIZED COST: | 22,241 | 11,619 |
Equity investments | ||
ASSETS | ||
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS: | 4,063 | 2,764 |
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME: | 697 | 799 |
Trading derivative assets | ||
ASSETS | ||
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS: | $ 228,816 | $ 179,390 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement | |||
Interest income calculated using the effective interest method | $ 124,096 | $ 94,045 | $ 103,977 |
Other interest and similar income | 14,900 | 9,067 | 12,008 |
Interest expense and similar charges | (63,884) | (39,680) | (50,175) |
NET INTEREST INCOME | 75,112 | 63,432 | 65,810 |
Dividend income | 186 | 227 | 246 |
Income from entities accounted for using the equity method | 182 | 200 | 178 |
Fee and commission income. | 28,495 | 25,355 | 23,756 |
Fee and commission expenses | (9,263) | (8,149) | (6,733) |
Gains/(losses) on financial assets and liabilities (net) | 1,024 | 4,883 | 5,984 |
Exchange differences (net) | (7) | (35) | 19 |
Other operating income | 810 | 1,740 | 1,651 |
Other expense, by function | (5,286) | (5,206) | (5,213) |
TOTAL INCOME | 91,253 | 82,447 | 85,698 |
Administrative expenses: | (33,765) | (30,872) | (30,135) |
Personnel expenses | (18,915) | (16,485) | (14,876) |
Other general administrative expenses | (14,850) | (14,387) | (15,259) |
Depreciation and amortization | (6,686) | (6,243) | (5,743) |
Impairment losses on financial assets (net) | (16,083) | (19,229) | (21,799) |
Gains/(losses) on modification of financial assets (net) | (1,743) | ||
Impairment losses on other assets (net), Non-current assets held for sale | (27) | (119) | |
Provisions (net) | (2,521) | (386) | (974) |
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) | 4 | 57 | 6 |
Gains/(losses) on disposal of non-current assets held for sale not classified as discontinued operations (net) | 70 | 20 | 9 |
OPERATING PROFIT BEFORE TAX | 32,272 | 25,767 | 25,200 |
Income tax | (8,164) | (4,966) | (6,226) |
PROFIT FOR THE YEAR | 24,108 | 20,801 | 18,974 |
Profit attributable to the Parent | $ 24,108 | $ 20,801 | $ 18,974 |
EARNINGS PER SHARE (pesos) | |||
Basic earnings per share (in pesos per share) | $ 3.56 | $ 3.07 | $ 2.80 |
Diluted earnings per share (in pesos per share) | $ 3.55 | $ 3.06 | $ 2.80 |
Financial assets at amortized cost category | |||
Statement | |||
Impairment losses on financial assets (net) | $ (16,100) | $ (19,229) | $ (21,731) |
Financial assets at fair value through other comprehensive income category | |||
Statement | |||
Dividend income | 173 | $ 199 | 206 |
Impairment losses on financial assets (net) | $ 17 | $ (68) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement | |||
Profit for the year | $ 24,108 | $ 20,801 | $ 18,974 |
Items that will not be reclassified subsequently to the consolidated income statement: | |||
Remeasurement of defined benefit obligation for the year | (481) | 25 | (995) |
Changes in the fair value of equity instruments at fair value through other comprehensive income | (18) | (76) | 126 |
Changes in the fair value attributable to change in the credit risk of financial liabilities designated at fair value through profit or loss | 3 | (8) | |
Income tax | 149 | 16 | 264 |
Total of items that will not be reclassified subsequently to the consolidated income statement | (347) | (35) | (613) |
Financial assets at fair value through other comprehensive income: | |||
Valuation adjustments, FVTOCI | (6,705) | (6,724) | 3,565 |
Amounts reclassified to the consolidated income statement, FVTOCI | (41) | (781) | (843) |
Income tax, FVTOCI | 2,210 | 1,402 | (1,056) |
Cash flow hedges: | |||
Valuation adjustments, cash flow hedge | (1,224) | 1,394 | (376) |
Amounts reclassified to the consolidated income statement, Cash flow hedge | 8 | 11 | (43) |
Income tax, Cash flow hedge | 365 | (422) | 126 |
Total of items that may be reclassified subsequently to the consolidated income statement | (5,387) | (5,120) | 1,373 |
Other comprehensive income/(loss) for the year, net of income tax | (5,734) | (5,155) | 760 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 18,374 | 15,646 | 19,734 |
Attributable to the Parent | $ 18,374 | $ 15,646 | $ 19,734 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN TOTAL EQUITY - MXN ($) $ in Millions | Total Shareholders' Equity Attributable to the Parent | Capital | Accumulated Reserves | Profit Attributable to the Parent | Valuation Adjustments | Non-Controlling interest | Total |
Equity at beginning 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) | ||||
Recognition of equity-settled share-based payments | 39 | 39 | 39 | ||||
Other changes in non-controlling interest | (3) | (3) | |||||
Other comprehensive income/(loss) for the year, net of income tax | 760 | (701) | 1,461 | 760 | |||
Equity at end of period at Dec. 31, 2020 | 153,797 | 25,660 | 105,659 | 18,974 | 3,504 | 37 | 153,834 |
Profit attributable to the Parent | 20,801 | 20,801 | 20,801 | ||||
Other changes in equity: | |||||||
Transfer to Accumulated reserves | 18,974 | (18,974) | |||||
Dividends declared | (4,921) | (4,921) | (4,921) | ||||
Treasury shares | 138 | 138 | 138 | ||||
Paid interests on Subordinated Additional Tier I Capital Notes | (751) | (751) | (751) | ||||
Recognition of equity-settled share-based payments | (369) | (369) | (369) | ||||
Other changes in non-controlling interest | 11 | 11 | |||||
Other comprehensive income/(loss) for the year, net of income tax | (5,155) | 18 | (5,173) | (5,155) | |||
Equity at end of period at Dec. 31, 2021 | 163,540 | 25,660 | 118,748 | 20,801 | (1,669) | 48 | 163,588 |
Profit attributable to the Parent | 24,108 | 24,108 | 24,108 | ||||
Other changes in equity: | |||||||
Transfer to Accumulated reserves | 20,801 | (20,801) | |||||
Dividends declared | (17,878) | (17,878) | (17,878) | ||||
Paid interests on Subordinated Additional Tier I Capital Notes | (644) | (644) | (644) | ||||
Other changes in non-controlling interest | 14 | 14 | |||||
Other comprehensive income/(loss) for the year, net of income tax | (5,734) | (329) | (5,405) | (5,734) | |||
Equity at end of period at Dec. 31, 2022 | $ 163,392 | $ 25,660 | $ 120,698 | $ 24,108 | $ (7,074) | $ 62 | $ 163,454 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement | |||
A. CASH FLOWS FROM OPERATING ACTIVITIES: | $ 47,278 | $ (9,255) | $ 13,213 |
Profit for the year | 24,108 | 20,801 | 18,974 |
Adjustments made to obtain the cash flows from operating activities- | 14,481 | 10,229 | 11,208 |
Depreciation and amortization | 6,686 | 6,243 | 5,743 |
Impairment losses on other assets (net) | 27 | 119 | |
(Gains)/losses on disposal of non-current assets held for sale not classified as discontinued operations | (70) | (20) | (9) |
(Gains)/losses on disposal of assets not classified as non-current assets held for sale | (4) | (57) | (6) |
Income tax expense recognized in consolidated income statement | 8,164 | 4,966 | 6,226 |
Income from entities accounted for using the equity method | (182) | (200) | (178) |
Expense recognized with respect to equity-settled share-based payments | 305 | (54) | 84 |
Effect of foreign exchange rate changes on Subordinated Additional Tier I Capital Notes | 3 | 299 | (522) |
Effect of foreign exchange rate changes on cash deposits | (421) | (159) | (249) |
(Gain) on sale of acquisition contracts | (816) | ||
Net (increase)/decrease in operating assets- | (132,132) | 144,307 | (362,106) |
Financial assets at fair value through profit or loss | (123,385) | 213,067 | (226,696) |
Financial assets at fair value through other comprehensive income | 72,444 | (47,190) | (116,184) |
Financial assets at amortized cost | (75,359) | (21,842) | (14,653) |
Other operating assets | (5,832) | 272 | (4,573) |
Net increase/(decrease) in operating liabilities- | 147,094 | (181,145) | 348,847 |
Financial liabilities at fair value through profit or loss | 82,695 | (161,573) | 85,665 |
Financial liabilities at amortized cost | 58,622 | (9,596) | 244,685 |
Other operating liabilities | 5,777 | (9,976) | 18,497 |
Income tax paid | (6,459) | (3,674) | (3,956) |
Dividend income | 186 | 227 | 246 |
B. CASH FLOWS FROM INVESTING ACTIVITIES: | (6,763) | (4,705) | (4,734) |
Payments- | (6,763) | (5,288) | (4,734) |
Tangible assets | (2,823) | (2,261) | (1,663) |
Intangible assets | (3,940) | (3,027) | (2,248) |
Investments in associated entities | (823) | ||
Proceeds- | 583 | ||
Sale of acquisition contracts | 583 | ||
C. CASH FLOWS FROM FINANCING ACTIVITIES: | (31,194) | 5,821 | (2,882) |
Payments- | (31,194) | (8,089) | (2,882) |
Dividends paid | (17,878) | (4,921) | |
Paid principal on Subordinated Additional Tier I Capital Notes | (10,251) | ||
Paid interests on Subordinated Additional Tier I Capital Notes | (919) | (1,073) | (917) |
Purchase of own shares (treasury shares) | 135 | (58) | |
Principal and interest paid on lease liabilities | (2,146) | (2,230) | (1,907) |
Proceeds- | 13,910 | ||
Subordinated Additional Tier I Capital Notes | 13,910 | ||
D. EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON FOREIGN CURRENCY CASH | 421 | 159 | 249 |
E. NET INCREASE/(DECREASE) IN CASH AND BALANCES WITH THE CENTRAL BANK | 9,742 | (7,980) | 5,846 |
F. CASH AND BALANCES WITH THE CENTRAL BANK AT THE BEGINNING OF YEAR | 63,073 | 71,053 | 65,207 |
G. CASH AND BALANCES WITH THE CENTRAL BANK AT THE END OF YEAR | $ 72,815 | $ 63,073 | $ 71,053 |
Introduction, basis of presenta
Introduction, basis of presentation of the consolidated financial statements and other information | 12 Months Ended |
Dec. 31, 2022 | |
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 96.16% (see Note 3) of its common stock and is regulated by, among others, the Credit Institutions Law ( Ley de Instituciones de Crédito Disposiciones de Carácter General Aplicables a las Instituciones de Crédito The shares of the Bank are listed on the Mexican Stock Exchange and on the New York Stock Exchange as American Depositary Shares. The Bank is subject to the supervision and oversight of the CNBV, the Mexican Central Bank and the United States Securities and Exchange Commission (SEC). 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, Banco Santander México 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 Prolongacion Paseo de la Reforma 500, Lomas de Santa Fe, Alvaro Obregon, Ciudad de Mexico, Mexico. The issuance of the consolidated financial statements was authorized by Felipe García Ascencio, Executive President and Chief Executive Officer (CEO) and Director of the Bank on February 28, 2023. 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, 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 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 were no clear signs of recovery during 2020. On November 26, 2021, the WHO declared the "Omicron" variant as a virus of concern, following the advice of the WHO Technical Advisory Group on the Evolution of the Virus. This decision was based on the evidence presented that this variant has several mutations that can have an impact on its behavior, for example, how easily it spreads or the severity of the disease it causes. 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 trying 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. During the COVID-19 pandemic, the Bank’s priority was to protect the health of its employees, customers and shareholders but also to help mitigate the economic and financial impact cause by the health crisis. 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 while safeguarding the health and safety of its employees. In 2021, the Bank began a program for the return of its employees to the corporate offices, with the objective of achieving a 50% attendance once the COVID-19 pandemic ended. This program was suspended due to the arrival of the Omicron variant in Mexico in December 2021 and by virtue of safeguarding the health of its employees and business continuity, the Bank reduced attendance in central areas to 25% and canceled face-to-face meetings. During 2022, the Bank reactivated the program for the return of its employees to the corporate offices, with the objective of a total attendance of 70%, having as a priority to maintain the safeguarding the health of its employees and business continuity. The Bank redesigned the physical space to guarantee the recommended social distance, combined with strict personal hygiene measures. b) Basis of presentation of the consolidated financial statements Bank’s Management has a reasonable expectation that the Bank has adequate resources to continue in operational existence for the near future. Thus, the Bank continues preparing the consolidated financial statements on a going concern basis of accounting. 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), 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. Resolutions issued by the CNBV As of January 1, 2022, new accounting standards issued by the CNBV came into force. The main changes performed to the Mexican Banking GAAP are intended to standardize accounting principles with Mexican Financial Reporting Standards (which in turn have a high level of consistency with IFRS). These changes now allow financial institutions to have comparable financial information in respect with other countries. As of December 31, 2022, 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) 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. d) Consolidation of special purpose entities Mexican Banking GAAP does not require the consolidation of those special purpose entities created before January 1, 2009 over which control is exercised. The notes to the consolidated financial statements contain supplementary information to that presented in the consolidated balance sheets, consolidated income statements, consolidated statements of comprehensive income, consolidated statements of changes in total equity and consolidated statements of cash flows. The notes provide, in a clear, relevant, reliable and comparable manner, narrative descriptions and breakdowns of these consolidated financial statements. New and amended IFRS that are effective for the current year The following amendments and improvements to IFRS and International Accounting Standards (hereinafter, “IAS”) issued by the IASB are mandatorily effective for the accounting period beginning on January 1, 2022. The adoption of these amendments and improvements have not had any material impact on the disclosures or amounts reported in the consolidated financial statements. ● Amendments to IAS 16 – Property, Plant and Equipment: Proceeds before Intended Use ● Amendments to IAS 37 – Onerous Contracts – Cost of Fulfilling a Contract ● Annual Improvements to IFRS Standards 2018-2020 ● Amendments to IFRS 3 – Business Combinations Amendments to IAS 16 – Property, Plant and Equipment: Proceeds before Intended Use The amendment to IAS 16 prohibits an entity from deducting from the cost of an item of property, plant and equipment any proceeds received from selling items produced while the entity is preparing the asset for its intended use. It also clarifies that an entity is ‘testing whether the asset is functioning properly’ when it assesses technical and physical performance of the asset. The financial performance of the asset is not relevant to this assessment. Amendments to IAS 37 – Onerous Contracts – Cost of Fulfilling a Contract The amendment to IAS 37 Provisions, Contingent Liabilities and Contingent Assets Annual Improvements to IFRS Standards 2018-2020 ● IFRS 1 First-time Adoption of International Financial Reporting Standards . The amendment provides additional relief to a subsidiary which becomes a first-time adopter later than its parent in respect of accounting for cumulative translation differences. ● IFRS 9 Financial Instruments . The amendment clarifies that in applying the 10 per cent test to assess whether to derecognize a financial liability, an entity includes only fees paid or received between the entity (the borrower) and the lender, including fees paid or received by either the entity or the lender on the other’s behalf. ● IFRS 16 Leases . The amendment removes the illustration of the reimbursement of leasehold improvements. ● IAS 41 Agriculture. The amendment removes the requirement in IAS 41 for entities to exclude cash flows for taxation when measuring fair value. Amendments to IFRS 3 – Business Combinations The amendment to IFRS 3 updates the references to the Conceptual Framework for Financial Reporting and add an exception for the recognition of liabilities and contingent liabilities within the scope of IAS 37 and Interpretation 21 Levies New and revised IFRS in issue but not yet effective At the date of authorization of these consolidated financial statements, the following amendments to IFRS had been issued but were not mandatory for annual reporting periods ending on December 31, 2022. ● Amendments to IAS 1 – Classification of Liabilities as Current or Non-current ● Amendments to IAS 1 and IFRS Practice Statement 2 – Disclosure of Accounting Policies ● Amendments to IAS 8 – Definition of Accounting Estimates ● Amendments to IAS 12 – Deferred Tax related to Assets and Liabilities arising from a Single Transaction ● Amendments to IFRS 10 and IAS 28 – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Bank’s Management does not expect any material impact from the adoption of these Amendments. c) Critical accounting estimates and judgments IFRS requires that Bank’s Management make certain estimates and utilize certain assumptions to determine the valuation of items included in the consolidated financial statements and to make required disclosures. As a result of the impact of COVID-19, during 2021 and 2020 the Bank was required to apply a greater degree of judgment in critical estimates due to the evolving nature of the pandemic and limited recent experience of the economic and financial impacts of said event. Bank's Management, using the best information available, has evaluated the potential impacts of the COVID-19 pandemic on the estimates made during 2022, as a result, concluded that the effect of COVID-19 was not significant to the critical accounting estimates. Although the actual results may differ, Bank’s Management believes that the estimates, assumptions and judgments utilized in preparing the consolidated financial statements and related disclosures were appropriate under the circumstances. The critical accounting estimates applied are as follows: - Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions. The most objective and common reference for the fair value of a financial instrument is the price that would be paid for it on an active, liquid and deep market (quoted price or market price). Fair value under IFRS is an exit price regardless of whether that price is directly observable or estimated using another valuation technique. When there is no market price for a given financial instrument, its fair value is estimated on the basis of the price established in recent transactions involving similar instruments and, in the absence thereof, of valuation techniques commonly used by the international financial community, taking into account the specific features of the instrument to be measured and, particularly, the various types of risk associated with it. In estimating the fair value of an asset or a liability, the Bank takes into account the characteristics of the asset or liability if market participants would consider those characteristics when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in the consolidated financial statements for certain financial instruments is determined on such a basis, except for share-based payment transactions that are within the scope of IFRS 2 Share-based Payment Impairment of Assets When there is no market price available for an identical instrument, the Bank measures fair value using other valuation techniques that are commonly used by the financial markets that maximize the use of relevant observable inputs and minimize the use of unobservable inputs as explained in Note 2.d. The availability of observable prices or inputs varies by product and market, and may change over time. The level of judgment from Bank’s Management required in establishing fair value of financial instruments for which there is a quoted price in an active market is minimal. Similarly, there is little subjectivity or judgment required for instruments valued using valuation models that are standard across the industry and where all parameter inputs are quoted in active markets. The level of subjectivity and degree of judgment from Bank’s Management required are more significant for those instruments valued using specialized and sophisticated models and those where some or all of the parameter inputs are not observable. In making appropriate valuation adjustments, the Bank follows methodologies that consider factors such as liquidity and credit risk (both counterparty credit risk in relation to financial assets and its own credit risk in relation to financial liabilities, which are at fair value through profit or loss). As of December 31, 2022, no significant reduction exists in observable prices from sources used for the valuation of financial instruments. Given the low market complexity as a rule for the Bank’s portfolios, there have been no significant reclassifications between levels. The Bank monitors the evolution of the financial markets, their liquidity, and the observability conditions of the valuation inputs in order to apply the criteria established in the Bank for the levelling of assets and liabilities measured at fair value. - For financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 according to IFRS 13 Fair Value Measurement ● Level 1: inputs that are quoted market prices (unadjusted) in active markets for identical instruments; ● Level 2: inputs other than quoted prices included within Level 1 that are observable either directly (i.e., as prices) or indirectly (i.e., derived from prices). This category includes instruments valued using: quoted market prices in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are considered less than active; or other valuation techniques in which all significant inputs are directly or indirectly observable from market data; and ● Level 3: inputs that are unobservable. This category includes all instruments for which the valuation technique includes inputs not based on observable data and the unobservable inputs have a significant effect on the instrument’s valuation. This category includes instruments that are valued based on quoted prices for similar instruments for which significant unobservable adjustments or assumptions are required to reflect differences between the instruments. This disclosure is provided in Note 2.d.iii. For financial instruments measured at amortized cost (which includes, balances with the Central Bank, loans and advances to customers, debt instruments, deposits and short-term and long-term debt issued), the Bank discloses the fair value. This disclosure is provided in Note 45.d; generally, there is no trading activity in these instruments and the fair value determination requires significant judgment from Bank’s Management. - Allowance for impairment losses and provisions for off-balance sheet risk (see Note 2.g, Note 8.c, Note 9.c, Note 11.c and Note 24.f). The Bank assesses on a forward-looking basis the expected credit losses associated with its financial assets carried at amortized cost and at fair value through other comprehensive income. The impairment methodology applied depends on whether there has been a significant increase in credit risk. The Bank considers a financial asset to have experienced a significant increase in credit risk, since initial recognition, taking into account different quantitative, qualitative or backstop criteria. If it is determined that a significant change in credit risk has occurred, the expected credit losses are re-evaluated and the credit losses are quantified. The Bank uses the concept of expected credit loss methodology according to IFRS 9 Financial Instruments The accounting estimates and judgments related to the allowance for impairment losses and provisions for off-balance sheet risk are a critical accounting estimate for the Bank because the underlying assumptions used to assess the impairment can change from period to period and may significantly affect the Bank’s profit, particularly in circumstances of economic and financial uncertainty. Further, the statistical models incorporate numerous estimates and judgments (for example, Probability of Default, Loss Given Default and segmentation of loans in groups with similar credit risk characteristics, etc.). Further details about expected credit loss measurement are given in Note 2.g. - As discussed in Note 2.v, deferred tax assets and liabilities include temporary differences, which are identified as the amounts expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities and their related tax bases, tax losses and tax credit carryforwards. These amounts are measured at the tax rates that are expected to apply in the period when the asset is realized or the liability is settled. During 2020 and 2021, the Bank reassessed its ability to generate future taxable income in relation to the recoverability of deferred tax assets recognized in the consolidated balance sheet. The COVID-19 pandemic introduced new uncertainties, that the Bank considered in its analysis of the recoverability of deferred tax assets, such as depth, severity and duration of the COVID-19 pandemic. In determining the amount of deferred tax assets to be recognized, the Bank used updated expectations and estimates on projections of future events and trends, which may affect the consolidated financial statements, including a review of the eligible carryforward periods, available tax planning opportunities and other relevant considerations. Bank’s Management considers that the recovery period of these assets would not be significantly affected and that it was not necessary to adjust the deferred tax assets recognized based on the results of the analyses performed. The Bank believes that the accounting estimate related to the deferred tax assets is a critical accounting estimate because it requires significant judgment of the Bank’s Management and the underlying assumptions used in the estimate can change from period to period (for example, future projected operating performance of the Bank). - Goodwill and intangible assets include the cost of acquired subsidiaries in excess of the fair value of the tangible net assets recognized in connection with acquisitions as well as acquired intangible assets. Accounting for goodwill and acquired intangible assets requires estimates from Bank’s Management regarding: (1) the fair value of the acquired intangible assets and the initial amount of goodwill to be recognized, (2) the amortization period (for identified intangible assets other than those with indefinite lives or goodwill) and (3) the recoverability of the carrying value of acquired intangible assets. The useful lives of acquired intangible assets are estimated based on the period over which the assets are expected to contribute directly or indirectly to the future cash flows of the Bank. To determine the initial amount of goodwill to be recognized on an acquisition, the Bank determines the fair value of the consideration and the fair value of the net assets acquired. The Bank uses internal analysis, generally based on discounted cash flow techniques, to determine the fair value of the net assets acquired and non-cash components of the consideration paid. The actual fair value of net assets acquired could differ from the fair value determined, resulting in an under- or over-statement of goodwill. Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment losses, if any. - IAS 36 requires that a cash-generating unit (CGU) to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the CGU may be impaired. IAS 36 establishes a minimum of indicators in assessing whether there is any impairment indication. A CGU to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the CGU may be impaired. The Bank concluded that as of December 31, 2022 there are no impairment indications. Determining whether goodwill is impaired requires an estimation of the value in use of the CGU to which goodwill has been allocated. The value in use calculation requires estimating the future cash flows expected to arise from the CGU and a suitable discount rate in order to calculate present value. The estimated future cash flows are based on updated financial budgets and business plans that reflect the most recent developments, such as GDP, interest rates and inflation. Where the actual future cash flows are less than expected, an impairment loss may arise. The impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the CGU and then to the other assets of the CGU pro rata based on the carrying amount of each asset in the CGU. Any impairment loss for goodwill is recognized directly in the consolidated income statement. An impairment loss recognized for goodwill is not reversed in subsequent periods. On disposal of the relevant CGU, the attributable amount of goodwill is included in the determination of the profit or loss on disposal. Details of the impairment of goodwill calculation are set out in Note 16. - The net cost of the defined benefit pension plan and other post-employment medical benefits and the present value of the pension obligation are determined using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These assumptions include the determination of the discount rate. Any changes in these assumptions will affect the carrying amount of pension obligations. The Bank determines the appropriate discount rate at the end of each year. This interest rate should be used to determine the present value of estimated future cash outflows expected to be required to settle the pension obligations. The Bank’s defined benefit obligation is discounted at a rate set by reference to market yields on Mexican government bonds at the end of the reporting period. Further details about pension obligations are given in Note 24.c. - Recognition and measurement of certain provisions and contingencies. Provisions are recognized when the Bank has a present obligation (legal or constructive) as a result of a past event; it is probable that an outflow of cash or other economic resources will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. If an outflow is not probable, the item is treated as a contingent liability. 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). The Bank estimates and provides for probable losses that may arise out of litigation, regulatory proceedings and uncertain income tax matters to the extent that a current obligation exists, the losses are probable and can be reasonably estimated. Significant judgment is required in making these estimates and the Bank’s final liabilities may ultimately be materially different. The Bank’s actual losses may differ materially from recognized amounts. Further details about recognition and measurement of certain provisions and contingencies are given in Note 24. - Lease term In determining the lease term, Bank’s Management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). Further details about lease term are given in Note 2.k and Note 15. - Discount rate for leases as a lessee 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 Credit Default Swaps information available from different entities. Under the Cross Section methodology, the following factors are considered to obtain the 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. Further details about discount rate for leases as a lessee are given in Note 2.k and Note 15. d) Environmental impact In view of the business activities carried on by the Bank, the Bank does not have any environmental liability, expenses, assets, provisions or contingencies that might be material with respect to its consolidated equity, financial position or results. e) Interbank Offered Rates Reform 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 impacts of these changes on financial reporting under IFRS. The IASB has issued two-phase amendments to provide reliefs from the effects of the IBOR Reform. - Phase 1 - amendments to IFRS 9, IAS 39 Financial Instruments: Recognition and Measurement and IFRS 7 Financial Instruments: Disclosures (IBOR Reform Phase 1) provided 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 were effective for periods beginning on or after January 1, 2020. - Phase 2 - amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 Insurance Contracts and IFRS 16 Leases (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, 2021 and were effective for annual periods beginning on or after January 1, 2021. The Phase 2 amendments provide the following reliefs: When changing the basis for determining contractual cash flows for financial assets and liabilities (including lease liabilities), the reliefs have the effect that the changes, that are necessary as a direct consequence of IBOR reform and which are considered economically equivalent, will not result in an immediate gain or loss in the income statement. The hedge accounting reliefs will allow most IAS 39 hedge relationships that are directly affected by IBOR reform to continue. The objective of IBOR Reform Phase 2 amendments was to assist entities in providing useful information about the effects of the transition to an RFR and support preparers in applying the requirements of IFRS when changes are made to contractual cash flows or hedging relationships because of the transition to an RFR. The IBOR Reform Phase 2 amendments affected the following key areas: changes in the basis for determining the contractual cash flows because of IBOR Reform, hedge accounting and disclosures. IBOR Reform Phase 2 amendments provided specifi |
Accounting policies
Accounting policies | 12 Months Ended |
Dec. 31, 2022 | |
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 “day-end” exchange rate used was $20.5075 per one USD and $19.5089 per one USD as of December 31, 2021 and 2022, 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 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, 2021 and 2022 is shown in Note 49. ii. Investments in associated 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. The results, assets and liabilities of associated entities 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 investment in the associate), 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. An investment in an associate is accounted for using the equity method from the date on which the investee becomes an associate. On acquisition of the investment in an associate, 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. 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 when the investment is classified as held for sale. When the Bank retains an interest in the former associate 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 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 is included in the determination of the gain or loss on disposal of the associate. In addition, the Bank accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required if that associate had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognized in other comprehensive income by that associate 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 is disposed of. When the Bank reduces its ownership interest in an associate 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 are recognized in the consolidated financial statements only to the extent of interests in the associate that are not related to the Bank. The Bank applies IFRS 9, including the impairment requirements, to long-term interests in an associate 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 Investments in Associates and Joint Ventures As of December 31, 2021 and also for 6 months during 2022, the Bank maintained an investment in an associated entity as detailed in Note 49.a. An investor measures an associate that is classified as held for sale at the lower of its carrying amount at the date of classification as held for sale and fair value less costs to sell. Equity accounting ceases once an associate is classified as held for sale. 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. Share-based payments are discussed in Note 42.b, 42.c, 42.d. and 43.b 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 Banco Santander México, liabilities incurred by Banco Santander México 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 Banco Santander México 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 Banco Santander México 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, Banco Santander México 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 Banco Santander México’s ownership interests in existing subsidiaries Changes in Banco Santander México’s ownership interests in subsidiaries that do not result in Banco Santander México 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 Banco Santander México’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 Banco Santander México. When Banco Santander México 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 Banco Santander México 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 (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 are 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, securities loans and sales of borrowed securities (short positions). Additionally, 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, in accordance with a documented risk management or investment strategy, and information about the group is provided on that basis to the Bank’s key management personnel. - Financial 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, 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. - 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. 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 |
Significant events
Significant events | 12 Months Ended |
Dec. 31, 2022 | |
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 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, 2021 and also for 6 months during 2022, the Bank measured this investment using the equity method (see Note 49). As of December 31, 2022, the Bank reclassified this investment as a non-current asset held for sale (see Note 13). 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, the 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. Merchant business On December 3, 2020, Banco Santander México 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 payment business operated and administered by Banco Santander México, along with their respective economic rights. The agreed sell price amounts to 1,600 million pesos. On June 1, 2021, as part of Banco Santander’s (Spain) strategy to consolidate the merchant payment business into a global business and, once the SMPS registration was obtained to be able to operate as a Participant in Disposal Networks ( Participante en Redes de Medios de Disposición Adquirente For this transaction, the Bank recognized a gain of 816 million pesos within Other operating income in the consolidated income statement. Merchant business is discussed in Note 49. 2021 - Exchange Offers On March 23, 2021, Banco Santander (Spain) announced its intention to repurchase the outstanding shares of Banco Santander México that it did not own (8.3%). On June 8, 2021, Banco Santander (Spain) announced a change in the expected structure, instead of a mandatory delisting tender offer, a voluntary tender offer. On November 3, 2021, Banco Santander, S.A. (Spain) announced an exchange offer for the outstanding shares of Banco Santander México at a price of 26.50 Mexican pesos for each share of the Bank and the equivalent in US dollars of 132.50 Mexican pesos for each outstanding American Deposit Share (ADS). Consequently, Banco Santander, S.A. (Spain) increased its participation in the Bank to 96.16% from 91.64%. As a result of the exchange offer detailed above, the share-based payment plan was modified, from an equity-settled transaction to a cash-settled transaction and as a consequence, 264 million pesos were reclassified from Accumulated reserves within Shareholders’ equity to Other liabilities Further details about share-based payment plan are given in Note 42.b, 42.c, 42.d and 43.b. Issue of perpetual subordinated non-preferred contingent convertible additional Tier I Capital Notes On September 15, 2021, Banco Santander México issued perpetual subordinated non-preferred contingent convertible additional Tier I Capital Notes (Subordinated Additional Tier I Capital Notes) for USD 700 million with no fixed maturity or fixed redemption date, at an annual variable interest rate, which will be recalculated every 5 years based on the yield of the Treasury Notes of the United States of North America (US Treasury Notes) with a term of 5 years that is in force at that time plus the spread defined in the placement supplement. Initially annual interest rate at the time of issuance was 4.625% The Subordinated Additional Tier I Capital Notes were placed through an exclusive private offering to Banco Santander (Spain). Issuance of unsecured notes at a fixed interest rate On November 30, 2021, Banco Santander México issued through a national primary public offering unsecured notes for 7 years for an amount of 6,500 million pesos at a fixed annual gross interest rate of 8.08% per year and interest payments every 182 days. Issuance of unsecured notes at a floating interest rate On November 30, 2021, Banco Santander México issued through a national primary public offering unsecured notes for 4 years for an amount of 3,500 million pesos at a floating annual gross interest equivalent to TIIE for a term of 28 days plus a surcharge of 0.05% and payment of interest every 28 days. The annual gross interest rate applicable to the first interest payment period corresponds to 5.28% Amortization of the outstanding balance of perpetual subordinated non-preferred contingent convertible additional Tier I Capital Notes issued in 2016 On December 8, 2021, Banco Santander México notified the holders of its decision to pay in full the outstanding balance for an amount 500 million USD corresponding to the Subordinated Additional Tier I Capital Notes, issued on December 29, 2016. This transaction was settled at par value on January 19, 2022. Issuance of unsecured notes at a fixed interest rate On April 4, 2022, Banco Santander México issued through a national primary public offering unsecured notes for 7 years for an amount of 2,790 million pesos at a fixed annual gross interest rate of 8.72% per year and interest payments every 182 days. Issuance of unsecured notes at a floating interest rate On April 4, 2022, Banco Santander México issued through a national primary public offering unsecured notes for 5 years for an amount of 7,100 million pesos at a floating annual gross interest equivalent to TIIE for a term of 28 days plus a surcharge of 0.07% and payment of interest every 28 days. Issuance of unsecured notes at a floating interest rate On July 14, 2022, Banco Santander México issued through a national primary public offering unsecured notes for 4 years for an amount of 5,000 million pesos at a floating annual gross interest equivalent to the average one-day funding TIIE plus a surcharge of 0.29% and payment of interest every 28 days. 2022 - Exchange Offers On October 21, 2022, Banco Santander (Spain) announced its intention to repurchase all of the Serie B shares and American Depositary Shares of Banco Santander México that are not already in its possession. The Bank expects that the exchange offers will be completed during 2023 and, subsequently, start the delisting of all of the Serie B shares from the Mexican Stock Exchange and of all of the American Depositary Shares from the New York Stock Exchange. 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 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. 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. The Support Program was active during 2020 and 531,636 loans were registered. As of December 31, 2021 and 2022, there are no loans still participating in the Support Program. 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 Programs”. Labor reform On April 23, 2021, a decree (Decree) was published by the Federal Government to regulate labor subcontracting, when a natural or legal person provides its own workers for the benefit of another person. When the Decree entered into force, various laws were reformed, added and repealed in order to: i.) Prohibit the subcontracting of personnel for activities that are part of the corporate purpose and the main activity of the entity, and ii.) Allow the subcontracting of services and specialized works that are not part of the corporate purpose or main activity of the entity, as long as certain requirements are met, such as the contractor is registered in the public register with the Ministry of Labor and Social Security (STPS by its Spanish acronym), which is renewed every three years . In compliance with the Decree, Banco Santander México hired 4,891 employees who provided non-specialized services who previously worked in its subsidiaries and 1,044 of its employees were transferred to some of its subsidiaries. |
Distribution of the Bank's prof
Distribution of the Bank's profit and Earnings per share | 12 Months Ended |
Dec. 31, 2022 | |
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, 2020, 2021 and 2022 approved by the Board of Directors during the annual general meetings are as follows: 2020 2021 2022 Profit of the year 18,974 20,801 24,108 Dividends declared — 4,921 17,878 Dividend per share (pesos) — 0.73 2.64 Dates of payment 06/18/2021 and 06/28/2022 and 11/05/2021 07/28/2022 During 2020, 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: 2020 2021 2022 Profit attributable to the Parent 18,974 20,801 24,108 Profit attributable to the Parent (net of non-controlling interest) 18,974 20,801 24,108 Weighted average number of shares outstanding 6,776,640,349 6,775,682,106 6,781,322,904 Basic earnings per share (pesos) 2.80 3.07 3.56 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: 2020 2021 2022 Profit attributable to the Parent 18,974 20,801 24,108 Profit attributable to the Parent (net of non-controlling interest) 18,974 20,801 24,108 Weighted average number of shares outstanding 6,776,640,349 6,775,682,106 6,781,322,904 Dilutive effect of rights on shares 10,354,008 11,312,251 5,671,453 Adjusted number of shares 6,786,994,357 6,786,994,357 6,786,994,357 Diluted earnings per share (pesos) 2.80 3.06 3.55 |
Remuneration and other benefit
Remuneration and other benefit paid to the Bank's directors, executive officers and other key management personnel | 12 Months Ended |
Dec. 31, 2022 | |
Remuneration and other benefit paid to the Bank's directors, executive officers and other key management personnel | |
Remuneration and other benefit paid to the Bank's directors, executive officers and other key management personnel | 5. Remuneration and other benefit paid to the Bank’s 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 2021, the Deputy General Director of Global Corporate Banking, the Deputy Director of Retail Commercial Banking and the Deputy Director of Operations decided to step down. During 2022, a new CEO for Banco Santander México was named, two Vice-presidencies of Finance and Retail & Large Companies Banking were created and named, regarding these changes and some company leavers new Heads for Digital and Innovation, Corporate and Investment Banking, Human Resources, Chief Financial Officer, Chief Audit Executive, Corporate Resources and Recovery were named. The Heads of Retail Commercial Banking and Financial Inclusion were included to the Executive Committee.Other than the aforementioned personnel change, there were no significant changes in the Bank’s main key personnel from December 31, 2022 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 23 million pesos during 2020, 30 million pesos during 2021 and 37 million pesos during 2022, paid as attendance fees. b) Remuneration of executive officers The aggregate amount for compensation and benefits to executive officers amounted to 431 million pesos during 2020, 453 million pesos during 2021 and 504 million pesos during 2022. 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 522 million pesos as of December 31, 2020, 537 million pesos as of December 31, 2021 and 572 million pesos as of December 31, 2022. d) Loans to executive officers The loans granted to executive officers amount to 183 million pesos and 197 million pesos as of December 31, 2021 and 2022, respectively. |
Cash and balances with the Cent
Cash and balances with the Central Bank | 12 Months Ended |
Dec. 31, 2022 | |
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: 12/31/2021 12/31/2022 Cash 26,361 35,143 Central Bank compulsory deposits 23,978 23,978 Deposits in the Central Bank 12,705 13,623 Accrued interest 29 71 63,073 72,815 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, 2022 and 2021, the Bank maintained a special deposit in the Central Bank for an amount of 7,700 million pesos based on Circular 9/2020 issued by the Mexican Central Bank on June 13, 2020. Circular 9/2020 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. 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, 2022 | |
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: 12/31/2021 12/31/2022 Classification: Financial assets at fair value through profit or loss 58,486 102,652 Financial assets at amortized cost 36,492 40,400 94,978 143,052 Type: Reciprocal accounts 17,820 17,583 Guarantee deposits - Collateral delivered for OTC financial derivatives transactions (Note 32) 13,234 14,585 Reverse repurchase agreements 58,486 102,652 Other accounts 5,438 8,232 94,978 143,052 Currency: Peso 83,382 103,094 USD 11,579 39,759 Other currencies 17 199 94,978 143,052 As of December 31, 2021 and 2022, 13,234 million pesos and 14,585 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, 2021 and 2022, 58,235 million pesos and 102,431 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 (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, 2022 | |
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: 12/31/2021 12/31/2022 Classification: Financial assets at fair value through profit or loss 110,975 130,249 Financial assets at fair value through other comprehensive income 390,974 313,906 Financial assets at amortized cost 11,619 22,241 513,568 466,396 Type: Mexican government debt securities 336,872 355,658 Of which: Collateral delivered for OTC financial derivatives transactions (Note 32) 1,509 1,417 Foreign government debt securities 165,955 102,005 Of which: Collateral delivered for OTC financial derivatives transactions (Note 32) 4,866 — Brazilian Government Notes 25,744 32,715 US Government Treasury Bills (T-BILLS) 113,155 69,290 US Government Treasury Notes (T-NOTES) 27,056 — Debt securities issued by financial institutions 5,601 8,492 Other debt securities 5,140 241 513,568 466,396 Currency: Peso 310,871 343,790 USD 152,971 79,300 Brazilian Real (BRL) 25,744 32,715 Other currencies 23,982 10,591 513,568 466,396 The breakdown of Debt instruments classified as at fair value through profit or loss is as follows: 12/31/2021 12/31/2022 Federal Treasury Securities (CETES) 10,311 9,210 United Mexican States Bonds (UMS) 168 62 Federal Mexican Government Development Bonds (BONDES) 26,132 51,817 M and M10 Mexican Government Bonds (M Bonds) 16,652 15,294 Mexican Bank Saving Protection Bonds (BPATS) 14,161 3,463 Federal Mexican Government Development Bonds in UDIS (1) 8,232 7,587 T-BILLS 13,328 34,324 T-NOTES 11,495 — Other debt securities 10,496 8,492 110,975 130,249 (1) Unidades de Inversión As of December 31, 2021 and 2022, 6,375 million pesos and 1,417 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, 2021, 1,988 million pesos (1,565 million pesos in which the lender was the Central Bank) 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, 2022 there were no debt instruments, have been pledged in connection with securities loan transactions. As of December 31, 2021 and 2022, 87,653 million pesos and 86,052 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 Debt instruments classified as at Financial assets at fair value through other comprehensive income is as follows: 12/31/2021 12/31/2022 UMS 36,573 20,539 M, M3 and M5 Mexican Government Bonds (M Bonds) 197,658 211,518 BPATS 12,250 18,043 UDIBONDS 3,116 3,082 T-BILLS 99,827 34,966 T-NOTES 15,561 — Brazilian Government Notes 25,744 25,517 Other debt securities 245 241 390,974 313,906 As of December 31, 2021 and 2022, 103,095 million pesos and 119,213 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, 2021 and 2022, 17,633 (13,999 million pesos in which the lender was the Central Bank) million pesos and 28,932 million pesos (28,353 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 other comprehensive income. 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, 2021: 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 237,347 — 237,347 — 237,347 Foreign government debt instruments 141,132 — 141,132 — 141,132 Debt instruments issued by the Central Bank 12,250 — 12,250 — 12,250 Other fixed-income interest debt instruments 245 — 245 — 245 390,974 — 390,974 — 390,974 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, 2022: 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 235,139 — 235,139 — 235,139 Foreign government debt instruments 60,483 — 60,483 — 60,483 Debt instruments issued by the Central Bank 18,043 — 18,043 — 18,043 Other fixed-income interest debt instruments 241 — 241 — 241 313,906 — 313,906 — 313,906 During 2021 and 2022, there were no transfers between levels 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, 2021 is as follows: Private Debt Sovereign Debt Total % AAA — 140,211 140,211 27.30 % A 10,495 296,300 306,795 59.74 % BBB 245 36,741 36,986 7.20 % BB — 3,832 3,832 0.75 % Below B — 25,744 25,744 5.01 % 10,740 502,828 513,568 100 % The breakdown by issuer rating of Debt instruments as of December 31, 2022 is as follows: Private Debt Sovereign Debt Total % AAA — 69,290 69,290 14.86 % A 8,492 332,845 341,337 73.19 % BBB 241 20,601 20,842 4.47 % BB — 2,211 2,211 0.47 % Below B — 32,716 32,716 7.01 % 8,733 457,663 466,396 100 % As of December 31, 2021 and 2022, BBB ratings balance includes mainly sovereign exposures in Mexico. As of December 31, 2021 and 2022, BB ratings balance includes mainly sovereign exposures in Mexico. As of December 31, 2022, Below B ratings balance includes mainly debt instruments issued by Brazilian Government Notes. The breakdown of Debt instruments classified as at Financial assets at amortized cost is as follows: 12/31/2021 12/31/2022 Special CETES 3,831 2,211 Bonos de Regulación Monetaria Reportables - (BREMS R) 7,788 7,799 MX and MX Mexican Government Bonds (M Bonds) — 1,666 CETES — 2,375 UDIBONDS — 992 Brazilian Government Bonds — 7,198 11,619 22,241 Type: Unquoted 3,831 2,211 Quoted 7,788 20,030 As of December 31, 2021 and 2022, 7,709 million pesos and 7,720 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, 2021: Gross carrying amount Stage 1 Stage 2 Subtotal Stage 3 Total Financial assets at amortized cost Of which: Mexican government debt instruments 11,619 — 11,619 — 11,619 The following is a breakdown of the gross carrying amount of Debt instruments – Financial assets at amortized cost as of December 31, 2022: Gross carrying amount Stage 1 Stage 2 Subtotal Stage 3 Total Financial assets at amortized cost Of which: Mexican government debt instruments 7,244 — 7,244 — 7,244 Foreign government debt instruments 7,198 — 7,198 — 7,198 Debt instruments issued by the Mexican Central Bank 7,799 — 7,799 — 7,799 22,241 — 22,241 — 22,241 During 2021 and 2022, 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: 2020 2021 2022 Beginning balance 233,463 355,321 390,974 Net additions/(disposals) 119,141 43,105 (70,267) Valuation adjustments 3,560 (6,724) (6,705) Amounts reclassified to the consolidated income statement (843) (728) (96) Balance at year-end 355,321 390,974 313,906 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 as of December 31, 2021: Allowance for impairment losses Stage 1 Stage 2 Stage 3 Total Written-off financial assets Financial assets at fair value through other comprehensive income 39 — — 39 — Of which: Mexican government debt instruments 38 — — 38 — Other fixed-income interest debt instruments 1 — — 1 — 39 — — 39 — The following is a breakdown of the allowance for impairment losses of Debt instruments classified at fair value through other comprehensive income as of December 31, 2022: Allowance for impairment losses Stage 1 Stage 2 Stage 3 Total Written-off financial assets Financial assets at fair value through other comprehensive income 22 — — 22 — Of which: Mexican government debt instruments 22 — — 22 — Other fixed-income interest debt instruments 1 — — 1 — 22 — — 22 — The change in the allowance for impairment losses of Debt instruments – Financial assets at fair value through other comprehensive income during 2021 and 2022, amounts to (52) million pesos and (17) million pesos, respectively. There were no allowance for impairment losses recognized during 2021 and 2022, 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, 2022 | |
Equity instruments. | |
Equity instruments | 9. Equity instruments a) Breakdown The breakdown by classification and type of Equity instruments is as follows: 12/31/2021 12/31/2022 Classification: Financial assets at fair value through profit or loss 2,764 4,063 Financial assets at fair value through other comprehensive income 799 697 3,563 4,760 Type: Shares of Mexican companies 3,563 4,760 3,563 4,760 As of December 31, 2021 and 2022, 74 million pesos and 1 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, 2021 and 2022, 81 million pesos and 410 million pesos, respectively, 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: 2020 2021 2022 Beginning balance as of January 1 642 768 799 Write-off of equity instruments — — 63 Net additions/(disposals) — 148 (147) Valuation adjustments 126 (117) (18) Balance at year-end 768 799 697 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, 2022 | |
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): 12/31/2021 12/31/2022 Assets Liabilities Assets Liabilities Interest rate risk 95,607 94,515 159,830 166,198 Currency risk 83,653 80,189 68,812 62,773 Market price risk 130 1,974 174 2,217 179,390 176,678 228,816 231,188 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: 12/31/2021 12/31/2022 Securities loans: Debt instruments 19,109 28,345 Equity instruments 14 318 19,123 28,663 Short sales: Debt instruments 431 99 19,554 28,762 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, 2022 | |
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: 12/31/2021 12/31/2022 Financial assets at fair value through profit or loss 10,000 19,207 Financial assets at fair value through other comprehensive income 4,056 946 Financial assets at amortized cost 736,997 797,716 751,053 817,869 Of which: Before allowance for impairment losses 772,088 839,521 Allowance for impairment losses (21,035) (21,652) 751,053 817,869 As of December 31, 2021 and 2022, 6,261 million pesos and 6,530 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 (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 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: 12/31/2021 12/31/2022 By loan type: Commercial, financial and industrial loans 344,684 362,069 Public sector loans 85,189 84,583 Mortgage loans 189,854 205,242 Reverse repurchase agreements 10,000 19,207 Installment loans to individuals - Revolving consumer credit card loans 52,089 63,782 Non-revolving consumer loans 67,619 83,435 Impaired loans 22,653 21,203 772,088 839,521 By borrower sector: Public sector 85,256 84,583 Individuals 326,117 374,707 Communications and transportation 35,756 34,757 Construction 37,232 30,864 Manufacturing 52,176 53,302 Services 123,078 137,525 Tourism 18,278 20,840 Other sectors 94,195 102,943 772,088 839,521 By geographical area: Mexico 772,088 839,521 772,088 839,521 By interest rate: Fixed rate 359,178 332,396 Floating rate 412,910 507,125 772,088 839,521 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 amortized cost as of December 31, 2021: Fair value/Gross carrying amount Stage 1 Stage 2 Subtotal Stage 3 (*) Total Financial assets at fair value through other comprehensive income 4,063 — 4,063 — 4,063 Of which: Commercial, financial and industrial loans 4,063 — 4,063 — 4,063 Financial assets at amortized cost 698,089 37,283 735,372 22,653 758,025 Of which: Commercial, financial and industrial loans 322,835 17,786 340,621 9,870 350,491 Public sector loans 83,788 1,401 85,189 67 85,256 Mortgage loans 178,822 11,032 189,854 9,725 199,579 Installment loans to individuals - 112,644 7,064 119,708 2,991 122,699 Revolving consumer credit card loans 48,556 3,533 52,089 1,328 53,417 Non-revolving consumer loans 64,088 3,531 67,619 1,663 69,282 (*) As of December 31, 2021, there were no POCI financial assets. The following is a breakdown of the gross carrying amount Loans and advances to customers – Financial assets at amortized cost and Loans and advances to customers – Financial assets at fair value through other comprehensive income as of December 31, 2022: Fair value/Gross carrying amount Stage 1 Stage 2 Subtotal Stage 3 (*) Total Financial assets at fair value through other comprehensive income 946 — 946 — 946 Of which: Commercial, financial and industrial loans 946 — 946 — 946 Financial assets at amortized cost 752,073 46,092 798,165 21,203 819,368 Of which: Commercial, financial and industrial loans 339,283 21,840 361,123 5,587 366,710 Public sector loans 84,583 — 84,583 — 84,583 Mortgage loans 193,339 11,903 205,242 11,867 217,109 Installment loans to individuals - 134,868 12,349 147,217 3,749 150,966 Revolving consumer credit card loans 58,196 5,586 63,782 1,175 64,957 Non-revolving consumer loans 76,672 6,763 83,435 2,574 86,009 (*) As of December 31, 2022, 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, 2021: Gross carrying amount Stage 1 Stage 2 Stage 3 Total As of January 1, 2021 620,543 70,531 21,909 712,983 Transfers: Transfer from Stage 1 to Stage 2 (13,356) 13,356 — — Transfer from Stage 1 to Stage 3 (6,050) — 6,050 — Transfer from Stage 2 to Stage 3 — (7,787) 7,787 — Transfer from Stage 2 to Stage 1 20,699 (20,699) — — Transfer from Stage 3 to Stage 2 — 2,013 (2,013) — Transfer from Stage 3 to Stage 1 1,102 — (1,102) — Remaining in same Stage (44,490) (4,783) 19,608 (29,665) Financial assets derecognized during the period other than write-offs (274,147) (17,278) (3,311) (294,736) Originated financial assets 412,352 — — 412,352 Write-offs — — (26,477) (26,477) Other movements (18,564) 1,930 202 (16,432) As of December 31, 2021 698,089 37,283 22,653 758,025 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, 2022: Gross carrying amount Stage 1 Stage 2 Stage 3 Total As of January 1, 2022 698,089 37,283 22,653 758,025 Transfers: Transfer from Stage 1 to Stage 2 (23,492) 23,492 — — Transfer from Stage 1 to Stage 3 (6,921) 6,921 — Transfer from Stage 2 to Stage 3 — (6,508) 6,508 — Transfer from Stage 2 to Stage 1 6,169 (6,169) — — Transfer from Stage 3 to Stage 2 — 5,390 (5,390) — Transfer from Stage 3 to Stage 1 907 — (907) — Remaining in same Stage (*) (48,693) (2,221) 13,515 (37,399) Financial assets derecognized during the period other than write-offs (202,136) (5,204) (2,985) (210,325) Originated financial assets 327,309 — — 327,309 Write-offs — — (19,169) (19,169) Other movements 841 29 57 927 As of December 31, 2022 752,073 46,092 21,203 819,368 (*) Includes mainly payments of principal and accrued interest. Transfers between stages ● The change in the gross carrying amount of Loans and advances to customers – Financial assets at amortized cost that were transferred from Stage 2 to Stage 1 amounting 6,169 million pesos, resulted in a decrease in the allowance for impairment losses of 437 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 cost that were transferred from Stage 3 to Stage 2 amounting 5,390 million pesos, result in a decrease in the allowance for impairment losses of 1,293 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 cost that were transferred from Stage 3 to Stage 1 amounting 907 million pesos, result in a decrease in the allowance for impairment losses of 67 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 2022 that amounts to 327,309 million pesos, results in an increase in the allowance for impairment losses of 3,185 million pesos. d) Allowance for impairment losses The changes in the allowance for impairment losses on Loans and advances to customers were as follows: 2020 2021 2022 Beginning balance as of January 1 (21,970) (25,551) (21,035) Impairment losses on financial assets at amortized cost (*) (25,184) (21,949) (19,782) Impairment losses on financial assets at fair value through other comprehensive income — (7) — Write-offs 21,590 26,477 19,169 Others 13 (5) (4) Balance at year-end (25,551) (21,035) (21,652) Of which: By geographical location of risk: Mexico (25,551) (21,035) (21,652) (*) The amount of Impairment losses on financial assets at amortized cost presented in the consolidated income statement is net of recoveries of loans previously written-off and recovery expenses in the amount of 3,453 million pesos in 2020, 2,720 million pesos in 2021 and 3,699 million pesos in 2022. 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) 6% Of which: Commercial, financial and industrial loans (7,757) (558) (572) (8,887) 15% Public sector loans (14) (1) — (15) 7% Mortgage loans (4,108) 30 — (4,078) (1)% Installment loans to individuals - (12,214) (84) (273) (12,571) 3% Revolving consumer credit card loans (6,010) (67) (273) (6,350) 6% Non-revolving consumer loans (6,204) (17) — (6,221) 0% During 2021, the macroeconomic and impairment overlays were consumed or reversed; accordingly, there are no post-model adjustments or overlays as of December 31, 2021. The following is a breakdown of the allowance for impairment losses and the write-offs as of December 31, 2021: Allowance for impairment losses Stage 1 Stage 2 Stage 3 Total Write-offs Financial assets at fair value through other comprehensive income Of which: Commercial, financial and industrial loans (7) — — (7) — Financial assets at amortized cost (5,764) (5,149) (10,115) (21,028) (26,477) Of which: Commercial, financial and industrial loans (1,715) (1,509) (4,899) (8,123) (9,259) Public sector loans (66) — (58) (124) — Mortgage loans (640) (991) (2,873) (4,504) (1,572) Installment loans to individuals - (3,343) (2,649) (2,285) (8,277) (15,646) Revolving consumer credit card loans (1,498) (1,338) (1,016) (3,852) (8,396) Non-revolving consumer loans (1,845) (1,311) (1,269) (4,425) (7,250) The following is a breakdown of the allowance for impairment losses and the write-offs as of December 31, 2022: Allowance for impairment losses Stage 1 Stage 2 Stage 3 Total Write-offs Financial assets at amortized cost (7,013) (6,541) (8,098) (21,652) (19,169) Of which: Commercial, financial and industrial loans (1,377) (1,385) (2,769) (5,531) (5,130) Public sector loans (38) — — (38) — Mortgage loans (676) (809) (2,749) (4,234) (2,894) Installment loans to individuals - (4,922) (4,347) (2,580) (11,849) (11,145) Revolving consumer credit card loans (2,020) (2,060) (780) (4,860) (5,670) Non-revolving consumer loans (2,902) (2,287) (1,800) (6,989) (5,475) The contractual amount outstanding of Loans and advances to customers written-off during 2022 that are still subject to enforcement activities, amounts to 19,169 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, 2021: Allowance for impairment losses Stage 1 Stage 2 Stage 3 Total Beginning balance as of January 1 6,215 8,902 10,434 25,551 As of January 1, 2021 Transfers: Transfer from Stage 1 to Stage 2 (346) 2,211 — 1,865 Transfer from Stage 1 to Stage 3 (183) — 2,977 2,794 Transfer from Stage 2 to Stage 3 — (712) 2,636 1,924 Transfer from Stage 2 to Stage 1 387 (1,976) — (1,589) Transfer from Stage 3 to Stage 2 — 332 (443) (111) Transfer from Stage 3 to Stage 1 34 — (113) (79) Financial assets derecognized during the period other than write-offs (906) 1,087 2,930 3,111 Contracts remaining at the same stage (1,986) (4,767) 17,921 11,168 Write-offs — — (26,477) (26,477) Originated financial assets 2,741 — — 2,741 Foreign exchange and other movements (185) 72 250 137 As of December 31, 2021 5,771 5,149 10,115 21,035 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, 2022: Allowance for impairment losses Stage 1 Stage 2 Stage 3 Total Beginning balance as of January 1 5,771 5,149 10,115 21,035 As of January 1, 2022 Transfers: Transfer from Stage 1 to Stage 2 (511) 3,409 — 2,898 Transfer from Stage 1 to Stage 3 (257) — 2,800 2,543 Transfer from Stage 2 to Stage 3 — (980) 1,620 640 Transfer from Stage 2 to Stage 1 90 (527) — (437) Transfer from Stage 3 to Stage 2 — 277 (1,570) (1,293) Transfer from Stage 3 to Stage 1 20 — (87) (67) Financial assets derecognized during the period other than write-offs (1,203) (534) 9,807 8,070 Contracts remaining at the same stage (121) (282) 4,582 4,179 Write-offs — — (19,169) (19,169) Originated financial assets 3,185 — — 3,185 Foreign exchange and other movements 39 29 — 68 As of December 31, 2022 7,013 6,541 8,098 21,652 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: 2020 2021 2022 Beginning balance 17,952 21,909 22,653 Additions 37,216 32,526 27,001 Transfers to performing loans (11,669) (5,305) (9,282) Written-off loans (21,590) (26,477) (19,169) Balance at year end 21,909 22,653 21,203 The breakdown between no past due and past due as of December 31, 2021 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 6,689 1,434 676 808 330 9,937 Mortgage loans 2,194 1,764 965 751 4,051 9,725 Installment loans to individuals Of which: Revolving consumer credit card loans 451 877 — — — 1,328 Non-revolving consumer loans 414 1,243 5 1 — 1,663 9,748 5,318 1,646 1,560 4,381 22,653 The breakdown between no past due and past due as of December 31, 2022 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 3,691 1,470 156 46 224 5,587 Mortgage loans 5,793 1,705 669 581 3,119 11,867 Installment loans to individuals Of which: Revolving consumer credit card loans 614 561 — — — 1,175 Non-revolving consumer loans 1,086 1,487 1 — — 2,574 11,184 5,223 826 627 3,343 21,203 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, 2020, 2021 and 2022 is as follows: For the Year Ended 12/31/2020 For the Year Ended 12/31/2021 For the Year Ended 12/31/2022 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 2,158 — 912 3,070 5,918 — 4,299 10,217 7,978 — 2,549 10,527 Mortgage loans 356 — 329 685 217 — 356 573 159 — 157 316 Installment loans to individuals 1,627 — 272 1,899 380 — 1,183 1,563 977 — 510 1,487 4,141 — 1,513 5,654 6,515 — 5,838 12,353 9,114 — 3,216 12,330 Percentage 73 % — 27 % 100 % 53 % — 47 % 100 % 74 % — 26 % 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) 1.7 Recovery and collections management for additional information regarding renegotiated loans. g) Modification on financial instruments in the context of COVID-19 pandemic During 2020, 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 complement 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: 12/31/2021 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 290,365 195,268 95,097 26,919 68,178 — — — Financial assets at fair value through other comprehensive income 390,974 390,974 — — — — — — Financial assets at amortized cost: 758,025 222,505 535,520 — — 90,584 200,815 15,039 Of which: Loans and advances to credit institutions — — — — — — — — Loans and advances to customers 758,025 222,505 535,520 — — 90,584 200,815 15,039 Commercial, financial and industrial loans 350,491 88,047 262,444 — — 53,290 21,136 15,039 Public sector loans 85,256 27,762 57,494 — — 34,763 — — Mortgage loans 199,579 2,290 197,289 — — 2,501 161,422 — Installment loans to individuals: Revolving consumer credit card loans 53,417 53,417 — — — — — — Non-revolving consumer loans 69,282 50,989 18,293 — — 30 18,257 — Debt instruments — — — — — — — — Guarantees and loan commitments 91,329 91,329 — — — — — — 1,530,693 900,076 630,617 26,919 68,178 90,584 200,815 15,039 (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. 12/31/2022 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 359,065 208,265 150,800 26,861 123,939 — — — Financial assets at fair value through other comprehensive income 313,906 313,906 — — — — — — Financial assets at amortized cost: — — — — — 15,391 319,879 3,290 Of which: Loans and advances to credit institutions — — — — — — — — Loans and advances to customers — — — — — 15,391 319,879 3,290 Commercial, financial and industrial loans 366,710 86,996 279,714 — — 11,617 86,858 3,155 Public sector loans 84,583 21,785 62,798 — — — - — Mortgage loans 217,109 2,586 214,523 — — — — — Installment loans to individuals: Revolving consumer credit card loans 64,957 64,957 — — — — — — Non-revolving consumer loans 86,009 60,359 25,650 — — 3,774 233,021 135 Debt instruments — — — — — — — — Guarantees and loan commitments — — — — — — — — 672,971 522,171 150,800 26,861 123,939 15,391 319,879 3,290 (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 PDs” are compared against the default rates associated with the external ratings, which are published periodically by rating agencies. The internal rating scale and mapping with external ratings are as follows: Equivalence with Standard & Internal Rating Poor’s Moody’s 9.3 Aaa AAA 9.2 Aa1 AA+ 9.0 Aa2 AA 8.6 Aa3 AA- 8.1 A1 A+ 7.7 A2 A 7.3 A3 A- 6.7 Baa1 BBB+ 6.1 Baa2 BBB 5.6 Baa3 BBB- 5.0 Ba1 BB+ 4.4 Ba2 BB 3.9 Ba3 |
Hedging derivatives
Hedging derivatives | 12 Months Ended |
Dec. 31, 2022 | |
Hedging derivatives | |
Hedging derivatives | 12. Hedging derivatives The Bank, as part of its financial risk management strategy and for reducing mismatches in the accounting treatment of its transactions, enters into interest rate and foreign currency hedging financial derivatives, depending on the nature of the hedged risk. In line with its objective, the Bank classifies its hedges into the following categories: - Cash flow hedges: hedging the exposure to variability in cash flows associated with an asset, liability or highly probable forecast transaction. - Fair value hedges: hedging the exposure to changes in the fair value of assets or liabilities attributable to an identified hedged risk. a) Breakdown The breakdown by type of hedge of the financial derivatives qualifying for hedge accounting is as follows: 12/31/2021 12/31/2022 Assets Liabilities Assets Liabilities Fair value hedges 1,468 7,018 4,923 3,205 Cash flow hedges 9,780 1,144 5,258 1,256 11,248 8,162 10,181 4,461 b) Quantitative information Fair value hedges As of December 31, 2021, the hedging financial derivative positions are as follows: Nominal (Million in Nominal Transaction Transaction (Million Pesos) Currency) Currency Hedged Item and Risk Hedged IRS 1,867 1,867 Peso Loans - Interest rate risk IRS 47,047 47,047 Peso M Bonds - Interest rate risk CCS 4 1 USD Loans - Interest rate and foreign exchange risk CCS 17,744 819 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 As of December 31, 2022, the hedging financial derivative positions are as follows: Nominal (Million in Nominal Transaction Transaction (Million Pesos) Currency) Currency Hedged Item and Risk Hedged IRS 1,600 1,600 Peso Loans - Interest rate risk IRS 6,500 6,500 Peso Unsecured notes - Interest rate risk IRS 2,731 2,731 Peso Promissory notes - Interest rate risk IRS 117,701 117,701 Peso M Bonds - Interest rate risk CCS 9,887 447 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 2020, 2021 and 2022, the effect of valuation for the period of the financial derivative instruments for fair value hedging purposes recognized in the consolidated income statement is included under Gains/(losses) on financial assets and liabilities (net) of (6,884) million pesos, 8,746 million pesos and 5,225 million pesos, respectively (see Note 39). For 2020, 2021 and 2022, 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 is included Gains/(losses) on financial assets and liabilities (net) of 6,427 million pesos, (9,278) million pesos and (4,903) 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, 2021, 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 7,311 7,311 Peso Unsecured notes - Interest rate risk CCS 523 41 USD Loans - Foreign exchange risk CCS 491 29 Euro Loans - Foreign exchange risk CCS 11,125 543 USD Senior Unsecured Notes - Foreign exchange risk CCS 519 25 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 28,787 8,295 BRL Brazilian Government Notes - Foreign exchange risk Forward Fx-USD 36,171 1,466 USD Brazilian Government Notes - Foreign exchange risk As of December 31, 2022, 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 CCS 174 14 USD Loans - Foreign exchange risk CCS 351 21 Euro Loans - Foreign exchange risk CCS 260 10 Pound sterling UMS - Foreign exchange risk CCS 911 50 USD UMS - Foreign exchange risk CCS 7,196 1,917 BRL Brazilian Government Notes - Foreign exchange risk Forward Fx-BRL 16,425 5,187 BRL Brazilian Government Notes - Foreign exchange risk Forward Fx-USD 33,353 1,342 USD Brazilian Government Notes - Foreign exchange risk As of December 31, 2021 included in other comprehensive income under Valuation adjustments – Cash flow hedges, were (6) million pesos (see Note 28), 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 2025 for Brazilian Government Notes and 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: 2020 2021 2022 Balance at January 1 (276) (569) 414 Valuation adjustments (376) 1,394 (1,224) Amounts reclassified to consolidated income statement (43) 11 8 Of which: Income from cash flow hedging financial derivatives and discontinued cash flow hedge accounting (43) 11 8 Cash flow hedges ineffectiveness (Note 39) — — — Income taxes 126 (422) 365 Balance at December 31 (569) 414 (437) As of December 31, 2022, 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 13 40 21 — 74 Cash flows to be paid (242) (205) (234) (17) (698) 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, 2022 | |
Non-current assets held for sale | |
Non-current assets held for sale | 13. Non-current assets held for sale a) Breakdown The breakdown by type of non-current assets held for sale is as follows: 2021 2022 Foreclosed assets 773 1,429 Investment held for sale — 1,586 773 3,015 b) Foreclosed assets In 2020, 2021 and 2022, the Bank recognized from the sale of foreclosed assets a gain of 9 million pesos, a gain of 20 million pesos and a loss of 70 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, 2020 and 2021 the Bank recognized an impairment loss of 119 million pesos and 27 million pesos respectively, under Impairment losses on other assets (net) in the consolidated income statement. During 2022, the Bank has not recognized any impairment loss in the consolidated income statement The changes in foreclosed assets in the consolidated balance sheet were as follows: Foreclosed Assets Balances at January 1, 2021 551 Additions 559 Disposals (310) Impairment losses (27) Balances at December 31, 2021 773 Additions 812 Disposals (156) Impairment losses — Balances at December 31, 2022 1,429 c) Investment held for sale After Santander Merchant Platform Solutions México, S.A. de C.V. (SMPS México) was authorized to operate as a Participant in Disposal Networks (Participante en Redes de Medios de Disposición) in its capacity as Acquirer, Banco Santander México entered into an agreement with PagoNxt Merchant Solutions, S.L. and PagoNxt, S.L. on August 29, 2022 to sell the Bank´s 49% of participation in SMPS México represented by 1,139,735,235 common shares, at a sale price of 1,948 million pesos. This transaction is part of the global strategy of Banco Santander (Spain) to consolidate the acquiring business. This transaction will take effect once all the necessary regulatory approvals have been obtained, the Bank expects to obtain them during fiscal year 2023. The amount presented in the consolidated balance sheets represents the net book value of the 49% of participation in SPMS Mexico. |
Tangible assets
Tangible assets | 12 Months Ended |
Dec. 31, 2022 | |
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, 2021 23,087 Additions 2,450 Disposals (187) Balances at December 31, 2021 25,350 Additions 3,314 Disposals (491) Balances at December 31, 2022 28,173 Accumulated depreciation: Balances at January 1, 2021 (10,881) Additions (2,032) Disposals 183 Balances at December 31, 2021 (12,730) Additions (2,227) Disposals 491 Balances at December 31, 2022 (14,466) Balances at December 31, 2021 12,620 Balances at December 31, 2022 13,707 As of December 31, 2022, 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 14,640 (7,522) 7,118 IT equipment and fixtures 6,922 (3,355) 3,567 Furniture and vehicles 3,226 (1,853) 1,373 Other fixtures 562 — 562 Balances at December 31, 2021 25,350 (12,730) 12,620 Buildings 15,638 (8,494) 7,144 IT equipment and fixtures 7,609 (4,020) 3,589 Furniture and vehicles 3,479 (1,952) 1,527 Other fixtures 1,447 — 1,447 Balances at December 31, 2022 28,173 (14,466) 13,707 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Leases | 15. Leases a) Right-of-use assets Lease information with the Bank as lessee is as follows: Branch Furniture offices and vehicles Total Balances at January 1, 2021 5,435 208 5,643 Remeasurement of right-of-use assets 551 — 551 Additions in right-of-use assets 663 63 726 Disposals (1,542) (95) (1,637) Depreciation (108) — (108) Balances at December 31, 2021 4,999 176 5,175 Remeasurement of right-of-use assets 669 — 669 Additions in right-of-use assets 2,372 — 2,372 Depreciation (1,651) (125) (1,776) Disposals (176) — (176) Balances at December 31, 2022 6,213 51 6,264 b) Lease liabilities Following is an analysis of activity in Lease liabilities as of December 31, 2022: Amount Balances at January 1, 2021 6,131 Interest expense 646 New contracts 725 Remeasurement on leases liabilities 350 Disposals (103) Payments (2,033) Balances at December 31, 2021 5,716 Interest expense 530 New contracts 2,372 Remeasurement on leases liabilities 679 Disposals (57) Payments (2,275) Balances at December 31, 2022 6,965 The following table sets out a maturity analysis of lease payments: December 31, 2022 Maturity analysis - contractual undiscounted cash flows Less than one year 2,001 One to three years 3,086 Three to five years 2,038 More than five years 1,999 Total undiscounted lease liabilities at December 31, 2022 9,124 Lease liabilities at December 31, 2022 6,965 Current 1,700 Long-term 5,265 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 consumer price index (or 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 Leases d) Additional information December 31, 2022 Amounts recognized in the consolidated income statement: Interest expense on lease liabilities 530 Expense relating to short-term leases 10 Expense relating to leases of low-value assets that are not shown above as short-term leases 761 Expense relating to variable lease payments not included in lease liabilities — Cash flows from lease liabilities: Total leases cash flows (771) |
Intangible assets - Goodwill
Intangible assets - Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Intangible assets - Goodwill | |
Intangible assets - Goodwill | 16. Intangible assets – Goodwill As of December 31, 2021 and 2022, 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) 12.39% Of which: Cost of Equity(3) 17.47% Cost of Debt(4) 10.70% Equity Structure(5) 25% Equity / 75% Debt (1) The period of projections of cash flows 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 (9.08% ), ● β = Beta ( 0.909 ), and ● Pr = Equity Risk Premium ( 9.23% ). (4) The Cost of Debt has been calculated based on the actual pre-tax 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). The assumptions used in performing the interim impairment test were updated to reflect the best approximation of market behavior. As of December 2021 and 2022, the recoverable value of the CGU is higher than its book value. Based on the foregoing, and in accordance with the estimates, projections and measurements available to the Bank’s Management in 2020, 2021 and 2022, the Bank has not recognized any impairment losses on Goodwill. |
Intangible assets - Other intan
Intangible assets - Other intangible assets | 12 Months Ended |
Dec. 31, 2022 | |
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, 2021 19,237 Additions 3,371 Disposals (344) Balances at December 31, 2021 22,264 Additions 3,940 Disposals — Balances at December 31, 2022 26,204 Accumulated amortization and impairment: Balances at January 1, 2021 (12,364) Additions (2,566) Disposals 343 Balances at December 31, 2021 (14,587) Additions (2,670) Disposals — Balances at December 31, 2022 (17,257) Balances at December 31, 2021 7,677 Balances at December 31, 2022 8,947 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 22,176 (14,536) 7,640 Others 10 years 88 (51) 37 Balances at December 31, 2021 22,264 (14,587) 7,677 IT developments 3 years 26,117 (17,198) 8,919 Others 10 years 87 (59) 28 Balances at December 31, 2022 26,204 (17,257) 8,947 As of December 31, 2021 and 2022, 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, 2022 | |
Other assets. | |
Other assets | 18. Other assets The breakdown of Other assets is as follows: 12/31/2021 12/31/2022 Credit and debit card operating balances 2,421 1,341 Insurance commission receivables 1,436 1,682 Prepaid expenses 812 681 Other 5,457 7,477 10,126 11,181 The following is a breakdown by maturity of Other assets as of December 31, 2022: Current More than 30 days less than 60 More than 60 days less than 90 More than 90 days Total Credit and debit card operating balances 1,220 66 39 16 1,341 Insurance commission receivables 129 60 84 1,409 1,682 Prepaid expenses 681 — — — 681 Other 5,456 1,200 349 1,644 8,649 Expected credit loss rate 4% 0% 7% 28% Gross carrying amount 7,486 1,326 472 3,069 12,353 Lifetime expected credit losses (269) (5) (33) (865) (1,172) Balances at December 31, 2022 7,217 1,321 439 2,204 11,181 |
Deposits from the Central Bank
Deposits from the Central Bank and Deposits from credit institutions | 12 Months Ended |
Dec. 31, 2022 | |
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: 12/31/2021 12/31/2022 Classification: Financial liabilities at fair value through profit or loss 40,848 53,873 Financial liabilities at amortized cost 169,955 164,110 210,803 217,983 Type: Reciprocal accounts 13,373 12,870 Time deposits 5,471 3,559 Overnight deposits 26,164 13,589 Repurchase agreements 132,621 152,629 Other accounts 33,072 35,258 Of which: Collateral received for OTC financial derivatives transactions (Note 32) 26,919 24,720 Others 6,153 10,538 Accrued interest 102 78 210,803 217,983 Currency: Peso 177,336 187,050 USD 33,424 30,902 Other currencies 43 31 210,803 217,983 As of December 31, 2022, Deposits from credit institutions of 24,720 million pesos, 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 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, 2022 | |
Customer deposits | |
Customer deposits | 20. Customer deposits The breakdown by classification, type and currency of the balance of Customer deposits is as follows: 12/31/2021 12/31/2022 Classification: Financial liabilities at fair value through profit or loss 114,078 119,769 Financial liabilities at amortized cost 777,886 808,529 891,964 928,298 Type: Repurchase agreements 131,639 146,691 Demand deposits: Current accounts 541,257 538,409 Other deposits 22,760 22,972 Of which: Collateral received for OTC financial derivatives transactions (Note 32) — 2,141 Others 22,760 20,831 Time deposits: Fixed-term deposits 195,431 218,316 Accrued interest 877 1,910 891,964 928,298 Currency: Peso 798,976 833,323 USD 92,987 94,975 Other currencies 1 — 891,964 928,298 As of December 31, 2022 and 2021, there were no transactions 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, 2022 | |
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: 12/31/2021 12/31/2022 Classification: Financial liabilities at fair value through profit or loss 259 520 Financial liabilities at amortized cost 101,423 134,393 101,682 134,913 Type: Certificates of deposit (unsecured) 2,628 36,426 Senior Unsecured Notes 56,801 34,469 Structured bank bonds 981 2,851 Promissory notes 13,543 25,988 Unsecured bonds 27,729 35,179 101,682 134,913 Currency: Peso 44,687 99,189 USD 56,995 35,724 101,682 134,913 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: 2021 2022 Beginning balance 1,363 259 Issues 197 471 Of which: Structured bank bonds 197 471 Of which: Banco Santander México 197 471 Redemptions (1,315) (169) Of which: Structured bank bonds (1,315) (169) Of which: Banco Santander México (1,315) (169) Changes in fair value 14 (41) Balance at year-end 259 520 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: 2021 2022 Beginning balance 130,754 101,423 Issues 1,197,521 1,601,167 Of which: Certificates of deposit (unsecured) 3,347 36,475 Structured bank bonds 20,880 26,711 Promissory notes 1,163,294 1,523,091 Unsecured bonds 10,000 14,890 Of which: Banco Santander México 1,197,521 1,601,168 Redemptions (1,228,486) (1,565,677) Of which: Certificates of deposit (unsecured) (35,156) (2,824) Structured bank bonds (20,956) (25,135) Senior Unsecured Notes — (19,603) Promissory notes (1,166,674) (1,510,804) Unsecured bonds (5,700) (7,311) Of which: Banco Santander México — (1,565,677) Santander Vivienda (1,228,486) — Accrued interest (42) 131 Effect of changes in foreign exchange rates 1,676 (2,651) Balance at year-end 101,423 134,393 d) Other disclosures As of December 31, 2021, the balance of the issues performed by the Bank is as follows: Amount Maturity Date Rate Certificates of deposit (unsecured) 500 01/21/2022 5.71 % Certificates of deposit (unsecured) 2,000 02/14/2022 5.22 % Certificates of deposit (unsecured) 3 03/31/2022 5.00 % Certificates of deposit (unsecured) 21 04/20/2022 5.47 % Certificates of deposit (unsecured) 50 07/21/2022 5.19 % Certificates of deposit (unsecured) 3 03/09/2022 0.01 % Certificates of deposit (unsecured) 19 03/18/2022 0.01 % Certificates of deposit (unsecured) 25 03/01/2022 0.01 % 2,621 Accrued interest 7 2,628 Senior Unsecured Notes 20,508 11/09/2022 4.13 % Senior Unsecured Notes 35,888 04/17/2025 5.38 % 56,396 Accrued interest 405 56,801 Structured bank bonds (*) 7 03/17/2022 TIIE Structured bank bonds (*) 2 03/17/2022 TIIE Structured bank bonds (*) 56 03/17/2022 TIIE Structured bank bonds (*) 2 03/17/2022 TIIE Structured bank bonds (*) 39 11/16/2022 TIIE Structured bank bonds (*) 80 12/02/2022 TIIE Structured bank bonds (*) 57 01/21/2026 TIIE Structured bank bonds (*) 17 01/21/2026 TIIE Structured bank bonds 11 01/12/2022 9.69 % Structured bank bonds 28 01/10/2022 8.61 Structured bank bonds 10 01/10/2022 12.10 % Structured bank bonds 45 01/12/2022 9.08 % Structured bank bonds 45 01/25/2022 9.28 % Structured bank bonds 56 06/24/2022 Guaranteed rate subject to foreign exchange rate Structured bank bonds 201 08/30/2022 Guaranteed rate subject to foreign exchange rate Structured bank bonds 52 09/27/2022 Guaranteed rate subject to foreign exchange rate Structured bank bonds 127 11/01/2022 Guaranteed rate subject to foreign exchange rate Structured bank bonds 31 01/04/2022 6.70 % Structured bank bonds 62 01/06/2022 3.50 % Structured bank bonds 31 01/12/2022 6.77 % Structured bank bonds 10 01/18/2022 10.00 % Structured bank bonds 10 01/21/2022 4.08 % 979 Transaction costs and accrued interest (net) 2 981 Promissory notes 76 01/04/2021 5.40 % Promissory notes 6,000 01/15/2021 5.50 % Promissory notes 5,900 01/15/2021 5.50 % Promissory notes 1,000 01/15/2021 5.50 % Promissory notes 20 03/16/2021 5.50 % Promissory notes 500 01/13/2021 4.25 % 13,496 Accrued interest 47 13,543 Unsecured bonds 2,850 04/04/2022 TIIE + 10 basis points Unsecured bonds 4,461 05/06/2022 TIIE + 15 basis points Unsecured bonds 3,500 11/25/2025 TIIE + 5 basis points Unsecured bonds 7,150 03/30/2026 8.95 % Unsecured bonds 3,000 09/01/2026 7.19 % Unsecured bonds 6,500 11/21/2028 8.08 % 27,461 Accrued interest 268 27,729 (*) Marketable debt securities classified as financial liabilities at fair value through profit or loss. As of December 31, 2022, the balance of the issues performed by the Bank is as follows: Amount Maturity Date Rate Certificates of deposit (unsecured) 2,500 11/13/2023 10.82 % Certificates of deposit (unsecured) 2,500 10/13/2023 10.33 % Certificates of deposit (unsecured) 1,100 09/14/2023 10.79 % Certificates of deposit (unsecured) 3,000 08/17/2023 10.28 % Certificates of deposit (unsecured) 1,500 08/17/2023 10.69 % Certificates of deposit (unsecured) 50 07/20/2023 10.23 % Certificates of deposit (unsecured) 300 06/22/2023 10.79 % Certificates of deposit (unsecured) 1,100 06/14/2023 10.71 % Certificates of deposit (unsecured) 1,000 06/08/2023 10.74 % Certificates of deposit (unsecured) 1,000 06/07/2023 10.67 % Certificates of deposit (unsecured) 3,000 06/02/2023 10.32 % Certificates of deposit (unsecured) 2,000 05/16/2023 9.98 % Certificates of deposit (unsecured) 2,000 05/16/2023 10.30 % Certificates of deposit (unsecured) 3,000 05/05/2023 10.32 % Certificates of deposit (unsecured) 2,000 03/22/2023 10.71 % Certificates of deposit (unsecured) 1,000 03/01/2023 10.27 % Certificates of deposit (unsecured) 2,000 02/16/2023 10.71 % Certificates of deposit (unsecured) 2,000 02/02/2023 10.30 % Certificates of deposit (unsecured) 850 02/03/2023 10.30 % Certificates of deposit (unsecured) 1,000 01/18/2023 10.69 % Certificates of deposit (unsecured) 1,000 01/13/2023 10.73 % Certificates of deposit (unsecured) 2,000 01/05/2023 10.28 % Certificates of deposit (unsecured) 43 03/31/2023 2.00 % Certificates of deposit (unsecured) 3 03/08/2023 2.20 % Certificates of deposit (unsecured) 312 04/10/2023 0.10 % Certificates of deposit (unsecured) 11 02/16/2023 2.20 % 36,269 Accrued interest 157 36,426 Senior Unsecured Notes 34,141 04/17/2025 5.38 % Accrued interest 328 34,469 Amount Maturity Date Rate Structured bank bonds 86 01/18/24 Guaranteed rate subject to foreign exchange rate Structured bank bonds 190 10/03/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 10 09/21/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 15 09/14/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 46 09/12/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 151 08/01/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 15 07/26/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 24 07/17/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 201 07/03/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 16 05/23/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 52 05/02/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 35 04/24/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 12 04/10/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 126 04/03/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 93 03/27/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 9 06/19/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 52 03/13/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 86 03/01/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 16 02/27/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 67 02/08/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 10 01/13/23 16.00 % Structured bank bonds 78 02/07/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 39 01/30/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 10 01/06/23 14.00 % Structured bank bonds 10 03/09/23 8.00 % Structured bank bonds 88 02/07/23 11.20 % Structured bank bonds 137 02/10/23 10.50 % Structured bank bonds 38 01/18/23 5.50 % Structured bank bonds 40 01/17/23 12.40 % Structured bank bonds 10 01/04/23 8.00 % Structured bank bonds 68 02/01/23 10.20 % Structured bank bonds 29 01/05/23 8.90 % Structured bank bonds 88 01/13/23 12.10 % Structured bank bonds 12 01/06/23 14.50 % Structured bank bonds 5 01/11/23 9.60 % Structured bank bonds 10 01/06/23 19.40 % Structured bank bonds 20 01/06/23 10.00 % Structured bank bonds 88 01/06/23 10.85 % Structured bank bonds 10 01/12/23 14.00 % Structured bank bonds 10 01/17/23 10.95 % Structured bank bonds 27 01/13/23 16.60 % Structured bank bonds 10 01/06/23 11.45 % Structured bank bonds 10 01/13/23 13.70 % Structured bank bonds 20 01/05/23 9.00 % Structured bank bonds 10 01/17/23 8.00 % Structured bank bonds 26 01/13/23 13.00 % Structured bank bonds 10 01/12/23 11.70 % Structured bank bonds 10 01/05/23 11.45 % Structured bank bonds 20 01/06/23 18.45 % Structured bank bonds 19 01/06/23 16.90 % Structured bank bonds 10 01/17/23 12.40 % Structured bank bonds 20 01/05/23 33.80 % Structured bank bonds 5 01/03/23 13.00 % Structured bank bonds 10 01/13/23 12.25 % Structured bank bonds 10 01/03/23 5.20 % Structured bank bonds 17 01/21/26 TIIE Structured bank bonds 58 01/21/26 TIIE Structured bank bonds 23 02/21/25 Invesco QQQ Trust Series 1 (QQQ) Structured bank bonds 62 08/27/24 Guaranteed rate subject to S&P 500 Structured bank bonds 32 12/14/23 Guaranteed rate subject to S&P 500 Structured bank bonds 16 12/20/23 Guaranteed rate subject to S&P 500 Structured bank bonds 12 09/29/23 Guaranteed rate subject to S&P 500 Structured bank bonds 200 05/31/23 TIIE Structured bank bonds 114 03/07/23 TIIE Structured bank bonds 10 01/03/23 Guaranteed rate subject to S&P 500 2,863 Transaction costs and accrued interest (net) (12) 2,851 Promissory notes 4,266 05/31/2023 10.91 % Promissory notes 129 03/31/2023 8.37 % Promissory notes 1,860 02/22/2023 7.44 % Promissory notes 465 02/23/2023 7.44 % Promissory notes 281 01/20/2023 7.40 % Promissory notes 3,800 01/13/2023 10.50 % Promissory notes 4,000 01/13/2023 10.50 % Promissory notes 2,900 01/13/2023 10.50 % Promissory notes 4,000 01/13/2023 10.50 % Promissory notes 4,000 01/13/2023 10.50 % Promissory notes 82 01/02/2023 10.40 % 25,783 Accrued interest 205 25,988 Unsecured bonds 5,000 07/09/2026 TIIE + 29 basis points Unsecured bonds 4,600 03/30/2026 8.95% Unsecured bonds 6,500 11/21/2028 8.08% Unsecured bonds 3,000 09/01/2026 7.19% Unsecured bonds 2,550 03/30/2026 8.95% Unsecured bonds 2,790 03/26/2029 8.72% Unsecured bonds 7,100 03/29/2027 TIIE + 7 basis points Unsecured bonds 3,500 11/25/2025 TIIE + 5 basis points 35,040 Accrued interest 139 35,179 (*) Marketable debt securities classified as financial liabilities at fair value through profit or loss. |
Subordinated liabilities
Subordinated liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Subordinated liabilities. | |
Subordinated liabilities | 22. Subordinated liabilities a) Breakdown The breakdown of the balance of Subordinated liabilities is as follows: 12/31/2022 Outstanding Issue Amount Annual Type Currency of Issue 12/31/2021 12/31/2022 in Foreign Currency Interest Rate (%) Subordinated Additional Tier I Capital Notes - 2021 USD 14,355 13,656 700,000,000 4.63 Subordinated Additional Tier I Capital Notes - 2016 USD 10,254 — — — Tier II Subordinated Capital Notes - 2018 USD 27,034 25,728 1,300,000,000 5.95 Balance at year-end 51,643 39,384 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: 2021 2022 Beginning balance (million USD) 1,817 2,518 Issues 700 — Redemptions — (500) Transaction costs and accrued interest 1 1 Balance at year-end (million USD) 2,518 2,019 Exchange rate per one USD at December 31 20.5075 19.5089 Balance at year-end (million pesos) 51,643 39,384 c) Other disclosures 2016 Subordinated Additional Tier I Capital Notes On December 29, 2016, Banco Santander México 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) interest is 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. During 2022, the position of 2016 Subordinated Additional Tier I Capital Notes was settled. 2018 Tier II Subordinated Notes On October 1, 2018, Banco Santander México 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 main features of this issue are as follows: a) If notes are not redeemed in year five, the interest rate for the second five-year period shall be based on the interest rate on US five-year Treasury Notes in effect at that moment plus the spread defined in the offering memorandum. b) Loss absorption mechanism through a write-down of the issue being the trigger event a computation of Banco Santander México’s Basic Capital index of 4.5% . c) Partial write-down until Banco Santander México achieves a Basic Capital index of 7.0% . d) When Banco Santander México 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, Banco Santander México redeemed in advance USD 1,223 million of the Tier II Subordinated Capital Notes issued on December 27, 2013. 2021 Subordinated Additional Tier I Capital Notes On September 15, 2021, Banco Santander México issued perpetual subordinated non-preferred contingent convertible additional Tier I Capital Notes for USD 700 million with no fixed maturity or fixed redemption date, at an annual variable interest rate, which will be recalculated every 5 years based on the yield of the Treasury Notes of the United States of North America (US Treasury Notes) with a term of 5 years that is in force at that time plus the spread defined in the placement supplement. Additional characteristics of the Subordinated Additional Tier I Capital Notes are as follows: ● The initial annual interest rate at the time of issuance was 4.625% . ● Conversion price: The conversion price shall be, if the common shares are: i. a. thirty thirty b. ii. ● Banco Santander México may prepay the Additional Tier I Capital Notes after five years , prior compliance with the following: - Authorization is obtained from Banco de México to amortize the Subordinated Additional Tier I Capital Notes early; - If Banco Santander México maintains its total capitalization ratio equal to or greater than that required by the CNBV plus the corresponding capital supplements; or if - Replace the instrument with other financial instruments. 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, 2021 Cash flows Accrued Transaction Foreign exchange December 31, 2021 Type interest costs movements Subordinated Additional Tier I Capital Notes — 13,930 — — 425 14,355 Subordinated Additional Tier I Capital Notes 9,948 — — 6 300 10,254 Tier II Subordinated Capital Notes 26,234 (1,586) 1,576 10 800 27,034 Balances at 36,182 12,344 1,576 16 1,525 51,643 As of December 31, 2021, the Bank paid 1,073 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, 2022 Cash flows Accrued Transaction Foreign exchange December 31, 2022 Type interest costs movements Subordinated Additional Tier I Capital Notes 14,355 — — — (699) 13,656 Subordinated Additional Tier I Capital Notes 10,254 (10,251) — — (3) — Tier II Subordinated Capital Notes 27,034 (1,548) 1,550 11 (1,319) 25,728 Balances at 51,643 (11,799) 1,550 11 (2,021) 39,384 As of December 31, 2022, the Bank paid 919 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, 2022 | |
Other financial liabilities. | |
Other financial liabilities | 23. Other financial liabilities The breakdown of Other financial liabilities is as follows: 12/31/2021 12/31/2022 Trade payables 1,388 966 Collection accounts: Taxes payable 1,210 1,367 Financial transactions pending settlement 10,504 10,898 Other financial liabilities 4,136 6,242 17,238 19,473 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: 12/31/2021 12/31/2022 Mexican government securities 6,217 10,280 CETES 2,426 491 UDIBONDS 1,861 102 Equity instruments — 25 10,504 10,898 The breakdown of Other financial liabilities is as follows: 12/31/2021 12/31/2022 Retentions related to loans (*) 2,479 2,385 Other payable account 1,657 3,857 4,136 6,242 (*) These amounts correspond to temporary retention accounts for customers that have their payroll deposits with the Bank and to whom the Bank has granted a loan. |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2022 | |
Provisions | |
Provisions | 24. Provisions a) Breakdown The breakdown of Provisions is as follows: 12/31/2021 12/31/2022 Provisions for pensions and similar obligations 7,499 8,158 Provisions for tax and legal matters 2,141 3,009 Provisions for off-balance sheet risk 1,108 1,539 Other provisions 41 225 10,789 12,931 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Other liabilities | |
Other Liabilities | 25. Other liabilities The breakdown of Other liabilities is as follows: 12/31/2021 12/31/2022 Sundry creditors 9,433 13,736 Cash balances undrawn 127 373 Accrued personnel obligations 4,059 4,222 Other obligations 3,421 3,077 Credit and debit card operation balances 2,838 3,267 19,878 24,675 |
Tax matters
Tax matters | 12 Months Ended |
Dec. 31, 2022 | |
Tax matters | |
Tax matters | 26. Tax matters a) Income tax The components of Income tax expense for 2020, 2021 and 2022 are as follows: 2020 2021 2022 Current income tax expense: Tax expense for current year 7,496 3,777 12,162 Deferred income tax expense (benefit): Origination and reversal of temporary difference and usage (accrual) of tax carryforward benefits (1,270) 1,189 (3,998) Total Income tax 6,226 4,966 8,164 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: 2020 2021 2022 Profit before tax 25,200 25,767 32,272 Income tax at 30% 7,560 7,730 9,682 Increase/(Decrease) due to permanent differences Of which: Due to effect of inflation (1,126) (2,775) (3,023) Due to effect of tangible assets (116) (243) (387) Due to effect of non-deductible expenses, non-taxable income and others (92) 254 1,892 Income Tax 6,226 4,966 8,164 Effective tax rate 24.71 % 19.27 % 25.30 % Current tax liability — — — Income tax 6,226 4,966 8,164 Of which: Current 7,496 3,777 12,162 Deferred (1,270) 1,189 (3,998) The Bank is subject to regular reviews by the Mexican Tax Administration Service ( Servicio de Administración Tributaria 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: 2020 2021 2022 Net tax credited/(charged) to consolidated total equity: Remeasurement of defined benefit obligation 264 16 149 Measurement of Financial assets at fair value through other comprehensive income – Debt instruments (1,056) 1,402 2,210 Measurement of financial derivatives (Cash flow hedges) 126 (422) 365 Paid interests on Subordinated Additional Tier I Capital Notes 290 — 276 (376) 996 3,000 d) Deferred tax assets and liabilities Main components of the Bank’s gross deferred tax assets and liabilities are as follows: 12/31/2021 12/31/2022 Total deferred tax assets prior to offsetting 19,295 26,719 Of which: Tangible assets and deferred charges 2,288 2,902 Provisions 2,444 2,305 Impairment losses on financial assets at amortized cost 8,620 11,971 Valuation of financial instruments — 2,908 Net operating losses carryforward (*) 1 — Capital losses carryforward (*) 2,333 2,129 Labor provisions 1,238 1,482 Fees and interest collected in advance 1,299 2,703 Foreign exchange rate financial derivatives 1,072 319 Total deferred tax liabilities prior to offsetting (1,690) (2,270) Of which: Unrealized gains on financial instruments (517) — Prepayments (1,022) (1,188) Labor provisions — (738) Other (151) (344) (*) The net operating losses carryforward and the capital losses carryforward can be deducted during the ten-year period following the fiscal year in which the net operating loss and the capital loss were originated. As of December 31, 2022, the detail of capital losses carryforward is as follows: Year of origination Year of expiration Amount Deferred tax asset 2018 2028 1,646 494 2019 2029 1,975 592 2020 2030 1,934 580 2021 2031 782 235 2022 2032 762 229 7,097 2,129 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: 12/31/2021 12/31/2022 Presented as deferred tax assets 18,111 24,662 Presented as deferred tax liabilities (506) (213) Net 17,605 24,449 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. 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 01/01/2021 Income Income Movements 12/31/2021 Deferred tax assets 21,340 (1,116) (602) (327) 19,295 Deferred tax liabilities (3,440) (73) 1,598 225 (1,690) 17,900 (1,189) 996 (102) 17,605 (Charge)/ Credit to Consolidated (Charge)/ Credit to Other Consolidated Comprehensive Other 01/01/2022 Income Income Movements 12/31/2022 Deferred tax assets 19,295 5,229 2,399 (204) 26,719 Deferred tax liabilities (1,690) (1,231) 601 50 (2,270) 17,605 3,998 3,000 (154) 24,449 |
Non-controlling interests
Non-controlling interests | 12 Months Ended |
Dec. 31, 2022 | |
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: 12/31/2021 12/31/2022 Equity as of balance-sheet date attributable to non-controlling interests: Of which: Fideicomiso GFSSLPT, Banco Santander México, S.A. 37 51 Other 11 11 48 62 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: 2021 2022 Beginning balance 37 48 Profit for the year attributable to non-controlling interests — — Other 11 14 Balance at year-end 48 62 The foregoing changes are shown in the consolidated statement of changes in equity. |
Valuation adjustments
Valuation adjustments | 12 Months Ended |
Dec. 31, 2022 | |
Valuation adjustments | |
Valuation adjustments | 28. Valuation adjustments The balance of Valuation adjustments includes 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. In relation 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, 2021 and 2022 are as follows: 12/31/2021 12/31/2022 Net Net Valuation Valuation Valuation Valuation Gains/ Fair Valuation Valuation Gains/ Fair Gains Losses (Losses) Value Gains Losses (Losses) Value Debt instruments 1,972 (8,695) (6,724) 390,974 682 (7,387) (6,705) 313,906 Loans and advances to customers — — — 4,056 — — — 946 Equity instruments (76) — (76) 799 — (18) (18) 697 A summary of changes in the cumulative valuation adjustments corresponding to Financial assets at fair value through other comprehensive income is as follows: Debt Equity Instruments Instruments Total Balance at January 1, 2021 3,925 148 4,073 Valuation adjustments (6,724) (76) (6,800) Amounts reclassified to consolidated income statement (781) — (781) Income taxes 1,402 23 1,425 Balance at December 31, 2021 (2,178) 95 (2,083) Valuation adjustments (6,705) (18) (6,723) Amounts reclassified to consolidated income statement (113) 72 (41) Income taxes 2,236 (26) 2,210 Balance at December 31, 2022 (6,760) 123 (6,637) 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: 2021 2022 Accumulated (loss)/gain on cash flow hedges 420 (437) Accumulated gain related to discontinued cash flow hedges (Note 12) (6) — Balance at December 31, 414 (437) |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2022 | |
Shareholders' equity | |
Shareholders' equity | 29. Shareholders’ equity a) Share capital As of December 31, 2021 and 2022, Share capital, at par value, was as follows: Total Par Value Number of shares (Millions of Pesos) 12/31/2021 12/31/2022 12/31/2021 12/31/2022 Fixed capital: Series F shares 3,464,309,145 3,464,309,145 13,098 13,098 Series B shares 3,322,685,212 3,322,685,212 12,562 12,562 6,786,994,357 6,786,994,357 25,660 25,660 Authorized unsubscribed capital: Series F shares 921,514,867 921,514,867 — — Series B shares 883,785,133 883,785,133 — — 1,805,300,000 1,805,300,000 — — 8,592,294,357 8,592,294,357 25,660 25,660 Share capital is comprised of fixed shares, which cannot be increased and variable shares, which may be increased without limit. Series F shares may only be acquired by 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 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 Banco Santander México, 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 Banco Santander México, 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 Banco Santander México; after this transaction, the shareholders’ structure is as follow: Prior to exchange offer After exchange offer Banco Santander (Spain) 91.64% 96.16% Minority shareholders 8.36% 3.84% b) Share premium Share premium includes the amount paid up by Banco Santander México’s shareholders in capital issues in excess of the par value. The Mexican Corporation Law ( Ley General de Sociedades Mercantiles c) Accumulated reserves Accumulated reserves include the net amount of the accumulated profit recognized in previous years in the consolidated income statement not distributed to shareholders, the legal reserve, the differences between the selling price of treasury shares and its cost of acquisition thereof and the remeasurement of the defined benefit obligation. 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, Banco Santander México 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 Banco Santander México to Mexican resident individuals and foreign residents in 2020, 2021 and 2022 are not subject to the 10% additional withholding tax as such dividends were paid from profits obtained prior to 2014. Legal reserve Banco Santander México 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 Banco Santander México’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, 2021 and 2022, 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, 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). During the Extraordinary General Meeting of April 20, 2021, the following resolutions were adopted: - It was decided to issue perpetual subordinated non-preferred contingent convertible additional Tier I Capital Notes up to USD 700 million (see Note 3). - It was decided to increase the share capital of Banco Santander México for 4,368 million pesos, through the issuance of 1,155,300,000 shares, with a nominal value of 3.78 pesos per share, of which 589,703,799 shares correspond to the Series F and 565,596,201 shares correspond to the Series B, which will be kept in the treasury of the Bank as authorized capital to guarantee the possible conversion of obligations into shares of the previous point. During the Ordinary General Annual Meeting of April 29, 2021, the following resolutions were adopted: - The amount of 1,494 million pesos was allocated from Accumulated reserves for the legal reserve. - It was decided to ratify the fund to repurchase own shares that had been approved during the Ordinary General Annual Meeting of February 21, 2018, amounting to 12,800 million pesos. During the Ordinary and Extraordinary General Meeting of June 9, 2021, it was approved the amount of 3,054 million pesos from Accumulated reserves for the payment of dividends. This amount was paid to shareholders on June 18, 2021. During the Ordinary and Extraordinary General Meeting of October 25, 2021, it was approved the amount of 1,867 million pesos from Accumulated reserves for the payment of dividends. This amount was paid to shareholders on November 5, 2021. During the Ordinary General Annual Meeting of April 29, 2022, the following resolutions were adopted: - The amount of 1,260 million pesos was allocated from Accumulated reserves for the legal reserve. - It was decided to ratify the fund to repurchase own shares that had been approved during the Ordinary General Annual Meeting of February 21, 2018, amounting to 12,800 million pesos. - It was approved the amount of 9,040 million pesos from Accumulated reserves for the payment of dividends. This amount was paid to shareholders on June 28, 2022. During the Ordinary and Extraordinary General Meeting of July 19, 2022, the amount of 8,838 million pesos was allocated from Accumulated reserves for the payment of dividends. This amount was paid to shareholders on July 28, 2022. During the Extraordinary General Meeting of November 30, 2022, the following resolutions were adopted: - Cancel the registration of all the shares representing the capital stock of the Bank in the National Securities Registry maintained by the CNBV and remove from the Mexican Stock Exchange, S.A.B. of C. V. - It was approved the withdrawal of the ADSs from the listing on the New York Stock Exchange and the withdrawal of the Series "B" Shares representing the capital stock of the Bank and such ADSs of registration with the SEC. - It was approved to be carried out the exchange offer in Mexico and the United States of America for all the Series "B" Shares representing the Bank's capital stock and the ADSs, that are issued and in circulation, and that are not owned directly or indirectly, by Banco Santander (Spain). |
Minimum capital requirements
Minimum capital requirements | 12 Months Ended |
Dec. 31, 2022 | |
Minimum capital requirements | |
Minimum capital requirements | 30. Minimum capital requirements Banco Santander México’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. The Bank is subject to capital adequacy requirements adopted by the CNBV which provide for a minimum ratio for operations of risk-weighted assets for credit, market and operational risk of 8%, along with: a 2.5% capital conservation buffer, a 1.20% domestic-systemically important bank supplement (in the Grade III category), and a counter-cyclical capital buffer (currently at 0.0%), that combined add up to an 11.70% capital requirement. As of December 31, 2022, the Bank maintains capital indices above regulatory levels. 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 Banco Santander México 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. Since September 2021, the CNBV has published new credit risk weights applicable to new loans originated since September 1 that belong to retail (mortgages and consumer) and SMEs portfolios. 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 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 Risk Since November 2016, Banco Santander México 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 The minimum capital requirements calculated in accordance with Mexican Banking GAAP for Banco Santander México is as follows: 12/31/2021 12/31/2022 Computable capital: 168,616 143,832 Core capital 165,626 165,974 Supplementary capital 27,928 26,827 Deductible items (49,547) (62,625) Subordinated Additional Tier I Capital Notes (see Note 22.c) 24,609 13,656 Capital requirements: 62,564 59,366 Market risk 15,354 14,945 Credit risk 41,416 38,123 Operational risk 5,794 6,298 Excess of capital requirements 106,052 84,466 Risk-weighted assets 782,050 742,079 As of December 31, 2021 and 2022, 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. 12/31/2021 12/31/2022 Net Capital / Required Capital 2.70 2.42 Minimum capital requirements Not applicable Not applicable Basic Fundamental Capital / Assets subject to Credit, Market and Operating Risk 14.84 % 13.93 % Minimum capital requirements 8.20 % 8.20 % Basic Capital / Assets subject to Credit, Market and Operating Risk 17.99 % 15.77 % Minimum capital requirements 9.70 % 9.70 % Net Capital / Assets subject to Credit Risk 32.57 % 30.18 % Minimum capital requirements Not applicable Not applicable Net Capital / Assets subject to Credit, Market and Operating Risk 21.56 % 19.38 % Minimum capital requirements 11.70 % 11.70 % On June 18, 2021, the CNBV published the TLAC rule for Mexico. 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’). The local implementation considers a capital add-on over the total capital ratio of the maximum of 6.5% of RWAs and 3.75% of the leverage ratio denominator. The TLAC requirement can only be met with capital instruments. This requirement will have a phase-in period, which starts on December 2022 with a 25% of the add-on and will increase 25% each year to reach a 100% of the add-on on December 2025. As of December 31, 2022, the Bank has constituted 25% of the complement required by the TLAC standard issued by the CNBV. |
Memorandum accounts
Memorandum accounts | 12 Months Ended |
Dec. 31, 2022 | |
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 12/31/2021 12/31/2022 Available lines of credit cards and non-revolving consumer loans 171,094 205,793 Guarantees, documentary credits and loan commitments of commercial and public sector loans 91,516 114,418 Guarantees, documentary credits and loan commitments of commercial loans (SME) 315 107 262,925 320,318 As of December 31, 2021 and 2022, the Bank had recognized provisions for off-balance sheet risk of 1,108 million pesos and 1,539 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, 2022, 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 204,260 1,338 195 205,793 Guarantees, documentary credits and loan commitments of commercial and public sector loans 109,161 4,822 435 114,418 Guarantees, documentary credits and loan commitments of commercial loans (SME) 107 — — 107 313,528 6,160 630 320,318 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 12/31/2021 12/31/2022 Debt instruments received in OTC financial derivatives transactions 4,491 4,541 Debt instruments received in reverse repurchase agreement transactions 63,687 119,398 Equity instruments received in securities loan transactions 74 1 68,252 123,940 |
Financial derivatives - Nominal
Financial derivatives - Nominal amounts and fair values of trading and hedging financial derivatives | 12 Months Ended |
Dec. 31, 2022 | |
Financial derivatives - Nominal amounts and fair values of trading and hedging financial derivatives | |
Financial derivatives - Nominal amounts and fair values of trading and hedging financial 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, 2021 and 2022 is as follows: 12/31/2021 12/31/2022 Trading Nominal Fair Value Nominal Fair Value Futures: Foreign Currency Futures 12,453 — 48,013 — Market Index Futures 72 — — — Forwards: Foreign Currency Forwards 261,701 5,042 187,753 6,723 Foreign Exchange (Spot) 30,428 88 21,769 215 Equity Forwards — — — — Options: Foreign Currency Options 88,639 1,874 117,173 2,321 Interest Rate Options 53,370 712 66,342 1,277 Market Index Options 281 45 55 12 Equity Options 775 85 2,379 162 Swaps: IRS 3,577,417 94,895 3,863,421 158,553 CCS 486,767 76,649 523,287 59,553 Total Trading 4,511,903 179,390 4,830,192 228,816 As of December 31, 2021 and 2022, 179,390 million pesos and 228,816 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, 2021 and 2022 is as follows: 12/31/2021 12/31/2022 Hedging Nominal Fair Value Nominal Fair Value Cash flow hedge: CCS 11,125 4,547 5,553 189 Foreign Currency Forwards 57,669 5,233 41,079 5,069 Fair value hedge: IRS 47,047 1,454 66,503 3,680 CCS 244 14 13,067 1,243 Total Hedging 116,085 11,248 126,202 10,181 Total Financial Derivatives Asset 4,627,988 190,638 4,956,394 238,997 The breakdown of the fair value and nominal amount of trading financial derivatives liability as of December 31, 2021 and 2022 is as follows: 12/31/2021 12/31/2022 Trading Nominal Fair Value Nominal Fair Value Futures: Foreign Currency Futures 10,827 — 15,212 12 Market Index Futures 612 1 127 — Forwards: Foreign Currency Forwards 214,999 3,389 200,965 4,985 Foreign Exchange (Spot) 33,031 102 39,033 123 Options: Foreign Currency Options 70,823 2,064 78,285 2,278 Interest Rate Options 78,509 915 104,644 1,921 Market Index Options 1,904 1,422 1,736 1,567 Equity Options 1,934 209 4,228 177 Swaps: IRS 3,724,129 93,600 3,843,533 164,277 Equity Swaps 859 342 450 473 CCS 417,366 74,634 480,136 55,375 Total Trading 4,554,993 176,678 4,768,349 231,188 As of December 31, 2021 and 2022, 176,678 million pesos and 231,188 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, 2021 and 2022 is as follows: 12/31/2021 12/31/2022 Hedging Nominal Fair Value Nominal Fair Value Cash flow hedge: IRS 7,311 42 — — CCS 2,704 864 3,340 371 Foreign Currency Forwards 7,289 238 12,279 885 Fair value hedge: IRS 1,867 96 62,029 1,109 CCS 28,715 6,922 8,031 2,096 Total Hedging 47,886 8,162 85,679 4,461 Total Financial Derivatives Liability 4,602,879 184,840 4,854,028 235,649 As of December 31, 2021 and 2022, the collateral provided to engage in financial derivatives transactions in organized markets is as follows: 12/31/2021 12/31/2022 Collateral provided: Of which: Mercado Mexicano de Derivados, S.A. de C.V. Cash 4,326 5,946 Chicago Mercantile Exchange Cash 1,934 431 Foreign financial institutions Cash 1 153 6,261 6,530 Deposits of collateral back up positions operated on the Mexican Derivatives Exchange Market ( Mercado Mexicano de Derivados The guarantees and/or collateral delivered for the OTC financial derivatives transactions as of December 31, 2021 and 2022 are as follows: 12/31/2021 12/31/2022 Financial assets at amortized cost - Loans and advances to credit institutions: Of which (Note 7): Mexican financial institutions Cash 7,163 11,697 Foreign financial institutions Cash 6,071 2,888 13,234 14,585 Financial assets at amortized cost - Loans and advances to customers: Of which (Note 11): Mexican institutions Cash — 1,091 — 1,091 Financial assets at fair value through profit or loss - Debt instruments: Of which (Note 8): Mexican financial institutions Bonds 3,443 4,906 Foreign financial institutions Bonds 2,932 2,171 6,375 7,077 The guarantees and/or collateral received for the OTC financial derivatives transactions as of December 31, 2021 and 2022 are as follows: 12/31/2021 12/31/2022 Deposits from credit institutions and Customer deposits: Of which (Notes 19 and 20): Mexican financial institutions Cash 9,325 5,559 Foreign financial institutions Cash 17,594 21,302 26,919 26,861 12/31/2021 12/31/2022 Memorandum accounts: Of which (Note 31): Mexican financial institutions Bonds 4,491 4,541 4,491 4,541 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, 2021 and 2022, the cumulative net credit risk exposure of the Bank was 32,803 million pesos and 42,765 million pesos, respectively. Counterparty credit risk comprises financial derivatives, repurchase agreements and securities lending. Received collateral is included with risk mitigation purposes to estimate exposure. |
Interest income calculated usin
Interest income calculated using the effective interest method | 12 Months Ended |
Dec. 31, 2022 | |
Interest income calculated using the effective interest method | |
Interest income calculated using the effective interest method | 33. Interest income calculated using the effective interest method 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 interest income calculated using the effective interest method items earned in 2020, 2021 and 2022 is as follows: 2020 2021 2022 Cash and balances with the Central Bank 1,951 1,471 2,587 Loans and advances to credit institutions 412 1,714 1,523 Loans and advances to customers 84,290 74,695 93,594 Debt instruments 14,643 15,472 19,788 Hedging financial derivatives 2,432 340 5,370 Other interest income 249 353 1,234 103,977 94,045 124,096 |
Other interest and similar inco
Other interest and similar income | 12 Months Ended |
Dec. 31, 2022 | |
Statement | |
Other interest and similar income | 34. Other interest and similar income Other interest and similar income 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 2020,2021 and 2022 is as follows: 2020 2021 2022 Loans and advances to credit institutions 2,997 1,543 8,002 Loans and advances to customers 804 507 785 Debt instruments 8,207 7,017 6,113 12,008 9,067 14,900 |
Interest expense and similar ch
Interest expense and similar charges | 12 Months Ended |
Dec. 31, 2022 | |
Interest expense and similar charges | |
Interest expense and similar charges | 35. Interest expense and similar charges Interest expense 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 expense and similar charges accrued in 2020, 2021 and 2022 is as follows: 2020 2021 2022 Deposits from credit institutions 12,400 10,967 19,373 Customer deposits 28,235 19,224 32,228 Marketable debt securities 5,756 5,308 7,632 Subordinated liabilities 1,767 1,668 1,646 Hedging financial derivatives 193 299 99 Other interest expense 1,824 2,214 2,906 50,175 39,680 63,884 |
Dividend income
Dividend income | 12 Months Ended |
Dec. 31, 2022 | |
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: 2020 2021 2022 Equity instruments classified as: Financial assets at fair value through profit or loss 40 28 13 Of which: NAFTRAC (Exchange-traded fund or ETF) 36 9 5 Grupo México, S.A.B. de C.V. — — 8 Grupo Cementos de Chihuahua, S.A.B. de C.V. 3 1 — Fomento Económico Mexicano, S.A.B. de C.V. 1 — — Wal-Mart de México, S.A.B. de C.V. — 1 — Organización Soriana, S.A.B. de C.V. — 17 — Financial assets at fair value through other comprehensive income 206 199 173 Of which: Controladora Prosa, S.A. de C.V. 73 64 — Trans Unión de México, S.A. 88 88 126 Bolsa Mexicana de Valores, S.A.B. de C.V. 25 29 31 Dun & Bradstreet de México, S.A. de C.V. 20 18 16 Others — — — 246 227 186 |
Fee and commission income
Fee and commission income | 12 Months Ended |
Dec. 31, 2022 | |
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: 2020 2021 2022 Collection and payment services: Service charges on deposit accounts 2,588 2,593 3,012 Credit and debit cards 7,667 8,379 9,892 Checks and others 181 172 157 10,436 11,144 13,061 Marketing of non-banking financial products: Investment funds management 1,611 1,747 1,900 Capital markets and securities activities 514 523 634 Collection and payment services 2,074 2,206 2,350 Insurance 5,300 5,508 6,203 Financial advisory services 1,179 1,307 1,415 10,678 11,291 12,502 Securities services: Administration and custody 461 459 394 461 459 394 Other: Foreign currency transactions 1,380 1,510 1,539 Other fees and commissions 801 951 999 2,181 2,461 2,538 23,756 25,355 28,495 |
Fee and commission expenses
Fee and commission expenses | 12 Months Ended |
Dec. 31, 2022 | |
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: 2020 2021 2022 Credit and debit cards 2,741 3,938 4,964 Checks and others 43 48 68 Collections and transactional services 291 305 254 Fund management 1 1 1 Capital markets and securities activities 173 202 296 Financial advisory services 5 6 6 Correspondent services 791 802 674 Other fees and commissions 2,688 2,847 3,000 6,733 8,149 9,263 |
Gains_(losses) on financial ass
Gains/(losses) on financial assets and liabilities (net) | 12 Months Ended |
Dec. 31, 2022 | |
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: 2020 2021 2022 Financial instruments at fair value through profit or loss 5,662 4,640 589 Of which: Debt instruments 1,221 119 (5,613) Equity instruments (161) 398 289 Derivatives 4,458 4,096 6,021 Others 144 27 (108) Recognized profit from sale of financial assets at fair value through other comprehensive income 779 781 113 Hedging derivatives (457) (538) 322 Of which: Fair value hedge - hedged items (Note 12) 6,427 (9,278) (4,903) Fair value hedge - hedging derivative instruments (Note 12) (6,884) 8,746 5,225 Cash flow hedge inefficiency (Note 12) — (6) — 5,984 4,883 1,024 |
Exchange differences, (net)
Exchange differences, (net) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 | |
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: 2020 2021 2022 Other operating income: Other operating income 1,651 1,740 810 1,651 1,740 810 Other operating expenses: IPAB fund contribution (3,859) (3,801) (3,981) Other operating expenses (1,354) (1,405) (1,305) (5,213) (5,206) (5,286) 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 |
Personnel expenses
Personnel expenses | 12 Months Ended |
Dec. 31, 2022 | |
Personnel expenses | |
Personnel expenses | 42. Personnel expenses a) Breakdown The breakdown of Personnel expenses is as follows: 2020 2021 2022 Wages and salaries 7,838 8,307 9,164 Social security costs 1,494 1,703 2,010 Service expense related to defined contribution pension plan (Note 24) 488 483 555 Service expense related to defined benefit pension plan 194 260 221 Share-based payments 226 54 305 Bonus and benefits granted to employees 3,052 4,111 4,983 Other staff costs 1,584 1,567 1,677 14,876 16,485 18,915 b) Share-based payments Banco Santander (Spain) approved an internal policy, among the main benefits are the following: - a portion of the variable annual compensation of eligible employees is deferred for a period between four to five years , with a fourth or fifth part granted each year, - deferred and non-deferred portions are payables with shares and cash in equal parts, - once the shares have been delivered to the employees, they must keep them for at least one year . Prior to the 2021 exchange offer mentioned in Note 3, the Bank issued its own shares to compensate eligible employees for the portion payable in shares and classified this portion of the plan as an equity-settled plan. As a consequence of the 2021 exchange offer, the share-based payment plan was modified. The modification requires the Bank to acquire Banco Santander’s (Spain) shares to compensate eligible employees; accordingly, the share-based payment portion of the plan is now classified as a cash-settled plan. The Board of Directors is responsible for determining the specific amount of deferred compensation to be paid each year. If the objectives are achieved on each anniversary, the beneficiaries will receive cash and shares of Banco Santander (Spain) in fourths or fifths, as applicable, within thirty days after the first, second, third and, if applicable, fourth and fifth anniversary. At the end of the 2021 exchange offer, 264 million pesos were reclassified from Accumulated reserves within Shareholders’ equity to Other liabilities in the consolidated balance sheet. As of December 31, 2022, the plan has 2,004,800 shares committed of Banco Santander (Spain). During 2021 and 2022, the Bank recognized compensation expense relating to the share-based payment portion of the plan in the consolidated income statement for an amount of 54 million pesos and 305 million pesos, respectively. 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 one one Both the deferred and non-deferred portions are paid equally in cash and in shares for the corresponding payment periods. Once delivered, beneficiaries are obligated to keep the shares for a one-year period. Consistent with the share-based payments plan above, subsequent to the 2021 exchange offer mentioned in Note 3, the Bank is required to acquire Banco Santander’s (Spain) shares to compensate the Identified Staff. In 2020, 2021 and 2022, the Bank recognized the bonus of the Identified Staff in the consolidated income statement for an amount of 294 million pesos, 448 million pesos and 862 million pesos, respectively. The bonus of the Identified Staff for financial years 2020, 2021 and 2022 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 % 4 years Taking the foregoing into account, the bonus for financial years 2020, 2021 and 2022 of the Identified Staff are paid as follows: ● Each beneficiary will receive in 2020, 2021 and 2022, 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. ● The beneficiaries receiving shares may not transfer them or hedge them directly or indirectly for one year as from each delivery of shares. In 2020, 2021 and 2022, the accrual of deferred remuneration is conditioned, in addition to the continued employment 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 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, 2022 | |
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: 2020 2021 2022 Maintenance, conservation and repair 825 773 736 Information technology and systems 5,344 5,945 6,108 Stationery and supplies 325 234 156 Advertising and communications 809 696 753 Rents 683 556 614 Administrative services 2,202 1,603 1,424 Taxes other than income tax 2,270 1,915 2,030 Surveillance and cash courier services 1,263 1,237 1,341 Insurance premiums 114 103 100 Travel costs 71 62 175 Other administrative expenses 1,353 1,263 1,413 15,259 14,387 14,850 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: 2020 2021 2022 Audit fees and audit-related fees (*) 122 99 105 (*) The audit-related fees amounted to 26 million pesos in 2020, 32 million pesos in 2021 and 17 million pesos in 2022. |
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, 2022 | |
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: 2020 2021 2022 Gains: On disposal of tangible assets 6 57 4 6 57 4 |
Other disclosures
Other disclosures | 12 Months Ended |
Dec. 31, 2022 | |
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, 2021, is as follows: 12/31/2021 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 Cash and balances with the Central Bank 26,360 12,735 — — — — 23,978 63,073 Financial assets at fair value through profit or loss Debt instruments — 4,197 31,192 25,550 34,552 8,355 7,129 110,975 Equity instruments — — — — — — 2,764 2,764 Trading derivatives 147 2,989 6,963 14,418 48,131 36,729 70,013 179,390 Loans and advances to credit institutions - Reverse repurchase agreements — 58,486 — — — — — 58,486 Loans and advances to customers - Reverse repurchase agreements — 10,000 — — — — — 10,000 Financial assets at fair value through other comprehensive income Loans and advances to customers — 450 900 2,706 — — — 4,056 Debt instruments — 74,851 40,537 2,757 110,173 110,586 52,070 390,974 Equity instruments — — — — — 192 607 799 Financial assets at amortized cost Loans and advances to credit institutions 19,403 17,089 — — — — — 36,492 Loans and advances to customers 12,538 50,092 85,708 176,794 173,148 78,773 159,944 736,997 Debt instruments — — — 1,774 — 7,788 2,057 11,619 Hedging derivatives 125 — — 4,753 1,803 4,553 14 11,248 58,573 230,889 165,300 228,752 367,807 246,976 318,576 1,616,873 Liabilities: Financial liabilities at fair value through profit or loss Trading derivatives 69 1,228 5,944 15,189 51,478 34,068 68,702 176,678 Short positions — 19,554 — — — — — 19,554 Deposits from the Central Bank — 23,002 — — — — — 23,002 Deposits from credit institutions — 17,846 — — — — — 17,846 Customer deposits — 114,078 — — — — — 114,078 Marketable debt securities — — 66 119 — 74 — 259 Financial liabilities at amortized cost Deposits from the Central Bank — 78,312 8,203 101 — — — 86,616 Deposits from credit institutions 39,213 38,874 1,523 2,406 15 22 1,286 83,339 Customer deposits 541,585 153,372 20,416 52,728 3,669 4,558 1,558 777,886 Marketable debt securities — 14,355 2,049 29,009 49,510 6,500 101,423 Subordinated liabilities — 10,254 — 397 — — 40,992 51,643 Other financial liabilities 10,571 3,690 104 2,692 177 4 — 17,238 Hedging derivatives 1 — — 38 1,096 2,700 4,327 8,162 591,439 474,565 38,305 102,679 56,435 90,936 123,365 1,477,724 Difference (assets less liabilities) (532,866) (243,676) 126,995 126,073 311,372 156,040 195,211 139,149 The breakdown by maturity of the balances of certain items in the consolidated balance sheets as of December 31, 2022, is as follows: 12/31/2022 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 37,543 11,294 — — — — 23,978 72,815 Financial assets at fair value through profit or loss Debt instruments — 7,009 20,031 34,030 51,027 8,255 9,897 130,249 Equity instruments — — — — — — 4,063 4,063 Trading derivatives 331 2,475 7,417 27,459 67,736 51,662 71,736 228,816 Loans and advances to credit institutions - Reverse repurchase agreements — 93,267 — 9,385 — — — 102,652 Loans and advances to customers - Reverse repurchase agreements — 19,207 — — — — — 19,207 Financial assets at fair value through other comprehensive income Loans and advances to customers — 95 188 594 38 31 — 946 Debt instruments — 9,443 65,891 5,391 83,423 117,274 32,484 313,906 Equity instruments — — — — — 110 587 697 Financial assets at amortized cost Loans and advances to credit institutions — 40,400 — — — — — 40,400 Loans and advances to customers 4,034 52,944 108,526 186,273 205,255 83,851 156,833 797,716 Debt instruments — — — — 16,537 4,038 1,666 22,241 Hedging derivatives 1,502 47 164 171 3,584 3,638 1,075 10,181 43,410 236,181 202,217 263,303 427,600 268,859 302,319 1,743,889 Liabilities: Financial liabilities at fair value through profit or loss Trading derivatives 623 3,488 7,182 28,935 65,112 51,958 73,890 231,188 Short positions — 28,762 — — — — — 28,762 Deposits from Central Bank – Repurchase agreements — 31,055 — — — — — 31,055 Deposits from credit institutions – Repurchase agreements — 22,818 — — — — — 22,818 Customer deposits – Repurchase agreements — 114,308 5,461 — — — — 119,769 Marketable debt securities — 10 112 249 77 72 — 520 Financial liabilities at amortized cost Deposits from Central Bank — 89,753 — — — — — 89,753 Deposits from credit institutions 26,523 29,036 1,455 2,159 5,009 123 1,049 65,354 Deposits from credit institutions - Repurchase agreements — 9,003 — — — — — 9,003 Customer deposits 538,955 138,171 21,437 74,859 4,038 3,271 876 781,607 Customer deposits - Repurchase agreements — 26,912 10 — — — — 26,922 Marketable debt securities — 23,933 11,202 30,217 37,682 22,278 9,081 134,393 Subordinated liabilities — — — 366 — — 39,018 39,384 Other financial liabilities — 14,741 2,507 2,050 175 — — 19,473 Hedging derivatives — — — 306 2,143 1,097 915 4,461 566,101 531,990 49,366 139,141 114,236 78,799 124,829 1,604,462 Difference (assets less liabilities) (522,691) (295,809) 152,851 124,162 313,364 190,060 177,490 139,427 b) Undiscounted contractual maturity periods The detail of the undiscounted contractual maturities of the existing financial liabilities at amortized cost as of December 31, 2021, is as follows: 12/31/2021 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 — 78,399 8,228 102 — — — 86,729 Deposits from credit institutions 39,213 39,039 1,589 2,595 150 155 2,136 84,877 Customer deposits 541,585 154,195 21,356 55,574 4,657 5,178 2,190 784,735 Marketable debt securities — 14,742 3,043 32,892 5,116 54,626 7,984 118,403 Subordinated liabilities — 10,463 417 2,275 5,007 5,007 55,095 78,264 Other financial liabilities 10,436 3,689 995 1,753 365 — — 17,238 591,234 300,527 35,628 95,191 15,295 64,966 67,405 1,170,246 The detail of the undiscounted contractual maturities of the existing financial liabilities at amortized cost as of December 31, 2022, is as follows: 12/31/2022 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 — 89,863 — — — — — 89,863 Deposits from credit institutions 26,523 38,267 1,621 2,722 5,845 282 1,970 77,230 Customer deposits 538,955 166,428 23,128 80,235 5,140 3,831 1,350 819,067 Marketable debt securities — 24,396 12,343 34,317 43,387 24,869 10,957 150,269 Subordinated liabilities — 191 382 2,085 4,586 4,586 51,991 63,821 Other financial liabilities — 14,741 2,507 2,050 175 — — 19,473 565,478 333,886 39,981 121,409 59,133 33,568 66,268 1,219,723 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 12/31/2021 12/31/2022 Assets Liabilities Assets Liabilities Cash and balances with the Central Bank 3,727 — 3,307 — Debt instruments (Note 8) 202,775 — 122,692 — Loans and advances to credit institutions (Note 7) 28,594 — 55,696 — Loans and advances to customers 78,504 — 81,477 — Other assets 387 — 159 — Marketable debt securities (Note 21) — 56,995 — 35,724 Subordinated liabilities — 51,654 — 39,389 Derivatives — 73,858 — 52,890 Deposits from Central Bank — — — — Deposits from credit institutions (Note 19) — 33,467 — 30,933 Customer deposits (Note 20) — 92,987 — 94,975 Other financial liabilities — 1,057 — 2,543 Other liabilities — 3,184 — 5,060 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, 2021: 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) — 16,551 19,842 36,393 36,492 Loans and advances to customers (Note 11) — 191 738,646 738,837 736,997 Debt instruments (unlisted) (Note 8) — 11,619 — 11,619 11,619 As of December 31, 2022: 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) — 17,971 22,839 40,810 40,400 Loans and advances to customers (Note 11) — 320 770,130 770,450 797,716 Debt instruments (unlisted) (Note 8) 12,248 10,010 — 22,258 22,241 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, 2021: 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) — 86,608 — 86,608 86,616 Deposits from credit institutions (Note 19) — 26,892 51,337 78,229 78,182 Deposits from credit institutions - Repurchase agreements (Note 19) — 5,156 — 5,156 5,157 Customer deposits (Note 20) — 52,566 706,455 759,021 760,325 Customer deposits - Repurchase agreements (Note 20) — 17,559 — 17,559 17,561 Marketable debt securities (Note 21) 104,582 — — 104,582 101,423 Subordinated liabilities (Note 22) 38,911 14,375 — 53,286 51,643 Other financial liabilities (Note 23) — 9,841 7,359 17,200 17,238 As of December 31, 2022: 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) — 89,751 — 89,751 89,753 Deposits from credit institutions (Note 19) — 24,633 39,884 64,517 65,354 Deposits from credit institutions - Repurchase agreements (Note 19) — 9,003 — 9,003 9,003 Customer deposits (Note 20) — 62,041 718,445 780,486 781,607 Customer deposits - Repurchase agreements (Note 20) — 26,922 — 26,922 26,922 Marketable debt securities (Note 21) 133,229 — — 133,229 134,393 Subordinated liabilities (Note 22) 25,655 13,905 — 39,560 39,384 Other financial liabilities (Note 23) — 10,891 8,575 19,466 19,473 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. For level 2, the Bank uses quoted prices for similar liabilities in active markets. - 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, 2022. f) Restriction on Accumulated reserves distribution As of December 31, 2021 and 2022, the Bank did not have any restriction on Accumulated reserves distribution, except for the legal reserve as mentioned in Note 29 (16,365 million pesos in legal reserve that includes 12,710 million pesos in legal reserve of Banco Santander México as of December 31, 2021 and 16,365 million pesos in legal reserve that includes 13,971 million pesos in legal reserve of Banco Santander México as of December 31, 2022) and the remeasurement of defined benefit obligation. 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, 2022 | |
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 2020, 2021 and 2022. The 2020 consolidated income statement and other significant data are as follows: Corporate Retail and Investment 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 654,572 760,895 422,447 1,837,914 Total liabilities 676,529 783,942 223,609 1,684,080 The 2021 consolidated income statement and other significant data are as follows: Corporate Retail and Investment Corporate 2021 Banking Banking Activities Total Net interest income 58,045 4,295 1,092 63,432 Dividend income — 29 198 227 Income from companies accounted for using the equity method — — 200 200 Net fee and commission income 15,729 1,594 (117) 17,206 Gains/(losses) on financial assets and liabilities (net) 1,493 3,228 162 4,883 Exchange differences (net) — — (35) (35) Other operating income/(expenses) (2,967) (508) 9 (3,466) Total income 72,300 8,638 1,509 82,447 Administrative expenses (26,525) (3,810) (537) (30,872) Depreciation and amortization (5,849) (364) (30) (6,243) Impairment losses on financial assets not at fair value through profit or loss (net) (18,115) (1,114) — (19,229) Impairment losses on other assets (net) (27) — — (27) Provisions (net) 200 — (586) (386) Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) — — 57 57 Gains/(losses) on disposal of non-current assets not classified as discontinued operations (net) — — 20 20 Operating profit before tax 21,984 3,350 433 25,767 Income tax (4,966) Profit for the year 20,801 Profit attributable to the Parent 20,801 Profit attributable to non-controlling interest — Total assets 685,590 525,722 466,901 1,678,213 Total liabilities 726,626 604,758 183,241 1,514,625 The 2022 consolidated income statement and other significant data are as follows: Global Retail Corporate Corporate 2022 Banking Banking Activities Total Net interest income 65,477 9,216 419 75,112 Dividend income — 13 173 186 Income from companies accounted for using the equity method — — 182 182 Net fee and commission income 17,639 1,615 (22) 19,232 Gains/(losses) on financial assets and liabilities (net) 1,255 (138) (93) 1,024 Exchange differences (net) — (7) — (7) Other operating income/(expenses) (2,785) (557) (1,134) (4,476) Total income 81,586 10,142 (475) 91,253 Administrative expenses (29,151) (3,846) (768) (33,765) Depreciation and amortization (6,293) (372) (21) (6,686) Impairment losses on financial assets not at fair value through profit or loss (net) (17,323) 1,240 — (16,083) Provisions (net) (230) (33) (2,258) (2,521) Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) — — 4 4 Gains/(losses) on disposal of non-current assets not classified as discontinued operations (net) — — 70 70 Operating profit before tax 28,589 7,131 (3,448) 32,272 Income tax (8,164) Profit for the year 24,108 Profit attributable to the Parent 24,108 Profit attributable to non-controlling interest — Total assets 754,548 656,392 402,481 1,813,421 Total liabilities 748,904 707,728 193,335 1,649,967 |
Related-party transactions
Related-party transactions | 12 Months Ended |
Dec. 31, 2022 | |
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 and associated entity, 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. 12/31/2021 12/31/2022 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) 79,660 — 99,291 — Banco Santander (Chile) — 654 — 372 Loans and advances to customers - Of which - Casa de Bolsa Santander, S.A. de C.V. — — — 508 Financial assets at amortized cost - Loans and advances to credit institutions - Of which - Banco Santander, S.A. (Spain) 5,147 — 5,845 — Banco Santander (Brasil), S.A. — — — 907 Loans and advances to customers - Of which - Santander Capital Structuring, S.A. de C.V. — — — 224 SMPS Merchant Platform Solutions México, S.A de C.V — — — 84 Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — 908 — — Key management personnel — 4,178 — 4,351 Other intangible assets - Of which - Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informáticos Generales, S.L.) — 469 — 143 Santander Back-Offices Globales Mayoristas, S.A. — 4 — 9 Santander Global Facilities, S.A. de C.V. — 36 — 112 Other — 8 — 10 Other assets - Of which - Banco Santander, S.A. (Spain) 8 — — — Zurich Santander Seguros México, S.A. — 1,177 — 1,239 Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — 268 — — SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversión — 184 — 190 SMPS Merchant Platform Solutions México, S.A de C.V — 42 — 15 Other — 30 — 19 12/31/2021 12/31/2022 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) 64,582 — 83,133 — Customer deposits - Repurchase agreements Of which - Casa de Bolsa Santander, S.A. de C.V. — 2,773 — 3,214 Other — — — 4 Financial liabilities at amortized cost - Deposits from credit institutions - Of which - Banco Santander, S.A. (Spain) 15,535 — 16,896 — Banco S3 México, S.A., Institución de Banca Múltiple — 7 — 6 Banco Santander (Brasil), S. A. — 82 — — Customer deposits - Of which- SMPS Merchant Platform Solutions México, S.A de C.V — — — 887 Operadora de Carteras Gamma, S.A.P.I. de C.V. — 148 — 174 Mercadotecnia, Ideas y Tecnología, S.A de C.V. — — — 92 Decarome, S.A.P.I. de C.V. — 70 — 57 Santander Global Facilities, S.A. de C.V. — 1,780 — 1,819 Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — 110 — 193 Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — 517 — 112 Santander Capital Structuring, S.A. de C.V. — 238 — 223 Gesban México Servicios Administrativos Globales, S.A. De C.V. — 56 — 47 Other(*) — 5,383 — 2,630 Marketable debt securities - Of which - Banco Santander, S.A. (Spain) 1,011 — — — Other — 27 — 25 Subordinated liabilities - Of which - Banco Santander, S.A. (Spain) 43,693 — 32,960 — Other financial liabilities - Of which - Banco Santander, S.A. (Spain) 1,924 — 1,642 — Santander Global Facilities, S.A. de C.V. — 335 — — Other — 13 — 6 Other liabilities - Of which - Santander Back-offices Globales Mayorista, S.A. — 35 — 80 Banco Santander (Brasil), S. A. — 77 — 69 Santander Global Facilities, S.A. de C.V. — 18 — 368 Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — 972 — 1,130 Other — 50 — 114 (*) As of December 31, 2021 and 2022, includes 5,093 million pesos and 2,267 million pesos, respectively, related to key management personnel transactions. 2020 2021 2022 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) 1 — 2 — 2 — Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — 84 — — — — Santander Global Technology, S.L. — — — 19 — — Casa de Bolsa Santander, S.A. de C.V. — 41 — 21 — 22 Santander Capital Structuring, S.A. de C.V. — 176 — 123 — 58 Other — 2 — — — 10 Interest expense and similar charges - Of which - Banco Santander, S.A. (Spain) 1,310 — 1,230 — 1,516 — Casa de Bolsa Santander, S.A. de C.V. — 304 — 146 — 212 Banco Santander International, S.A. — — — 26 — — Santander Capital Structuring, S.A. de C.V. — — — 6 — — Santander Global Technology, S.L. — — — 3 — — Operadora de Carteras Gamma, S.A.P.I. de C.V. — — — 3 — 10 Banco S3 México, S.A., Institución de Banca Múltiple — 41 — 21 — 25 Santander Global Facilities, S.A. de C.V. — 52 — 70 — 113 Other — 30 — 10 — 54 Fee and commission income - Of which - Banco Santander, S.A. (Spain) 8 — — — — — Banco S3 México, S.A., Institución de Banca Múltiple — — — 24 — 18 Casa de Bolsa Santander, S.A. de C.V. — 55 — 142 — 180 Zurich Santander Seguros México, S.A. — 4,031 — 4,284 — 4,612 SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversión — 1,608 — 1,742 — 1,895 Other — 25 — 1 — 10 Fee and commission expense- Of which - Banco Santander, S.A. (Spain) 2 — 2 — 2 — Santander Global Facilities, S.A. de C.V. — 135 — 55 — — Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — 110 — — — — Casa de Bolsa Santander, S.A. de C.V. — 34 — 43 — 57 SAM Asset Management , S.A. de C.V., Sociedad Operadora de Fondos de Inversión — 17 — 18 — 21 Other — — — 1 — 7 Gains/(losses) on financial assets and liabilities (net) - Of which - Banco Santander, S.A. (Spain) (24,086) — 18,441 — 8,610 — Banco Santander (Chile) — (26) — 494 — (274) Banco Santander International, S. A. — — — (4) — (2) Other — (20) — — — — Other operating income Of which - Santander Global Facilities, S.A. de C.V. — 20 — 7 — — SMPS Merchant Platform Solutions México S.A. de C.V. — — — 42 — 105 Banco S3 México, S.A., Institución de Banca Múltiple — — — 13 — 17 Santander Digital Assets, S.L. — 22 — — — — Casa de Bolsa Santander, S.A. de C.V. — 55 — 56 — — Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — 79 — 71 — 78 Other — 37 — 7 — 12 Administrative expenses - Of which - Banco Santander, S.A. (Spain) 464 — 524 — 476 — Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — 2,875 — 3,328 — 3,307 Santander Global Facilities, S.A. de C.V. — 446 — 470 — 369 Gesban México Servicios Administrativos Globales, S.A. de C.V. — 55 — 58 — 54 Santander Back-offices Globales Mayorista, S.A. — 71 — 101 — 109 Santander Global Technology Chile Limitada — — — 5 — — Aquanima México, S. de R.L. de C.V. — 74 — 72 — 77 Santander Global Facilities, S.L. — — — 23 — 31 Other — 143 — 14 — 87 See Note 5 for significant transactions with related parties. |
Risk management
Risk management | 12 Months Ended |
Dec. 31, 2022 | |
Risk management | |
Risk management | 48. Risk management a) Risk principles and culture The Bank’s risk principles below are compulsory. They comply with regulatory requirements and are inspired by best market practices: 1. All employees are risk managers who must understand the risks associated with their functions and not assume risks with an impact that exceeds the Bank’s risk appetite or is unknown. 2. Involvement of senior managers, with consistent risk management and control through their conduct, actions and communications, as well as oversight of the risk culture and make sure the Bank maintain the risk profile within the defined risk appetite. 3. Independent risk management and control functions, according to the three lines of defense model of the Bank. 4. A forward-looking, comprehensive approach to risk management and control for all businesses and risk types. 5. Complete and timely information to identify, assess, manage and disclose risks to the appropriate level. The Bank’s holistic control structure stands on these principles and includes strategic tools and processes set out in the risk appetite statement, such as annual planning and budget planning, scenario analysis, the risk reporting structure and risk identification and assessment. 1. Risk factors The Bank's risks categorization ensures effective risk management, control and reporting. The risk framework distinguishes these key risk types: ● Credit risk relates to financial loss arising from the default or credit quality deterioration of a customer or counterparty, to which the Bank has directly provided credit or assumed a contractual obligation. ● Market risk results from changes in interest rates, exchange rates, equities, commodities and other market factors, and from their effect on profit or capital. It includes the structural risk relates to market movements or balance sheets behavior will change the value or profit generation of assets or liabilities in the banking book. ● Liquidity risk occurs if liquid financial resources are insufficient or too costly to obtain in order to meet liabilities when they fall due. ● Capital risk is the risk that arises from the possibility of having an inadequate quantity or quality of capital to meet internal business objectives, regulatory requirements or market expectations in the area of structural risk. The Bank also takes into account, on an ongoing basis in its management of the risk function, operational, regulatory compliance, model, reputational and strategic risks. Additionally, environmental and climate-related risk factors are considered as factors that could impact the existing risks in the medium-to-long-term. These elements include, on the one hand, those derived from the physical effects of climate change, generated by one-off events as well as by chronic changes in the environment and, on the other hand, those derived from the process of transition to a development model with lower emissions, including legislative, technological or behavior of economic agents changes. 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 model of three lines of defense effectively manages and controls risks: • • • The Risk, Compliance and Conduct and Internal Audit functions are separated and independent. Each one has direct access to the Board of Directors and its committees. 2.2 Risk committee structure The Board of Directors is ultimately responsible for risk and compliance management and control. It revises and approves the Bank's risk frameworks and appetite, while promoting a strong risk culture across the Bank. The Board of Directors relies on its risk supervision, regulation and compliance committee for risk control and on the Bank’s executive committee for risk approval. The Bank’s Chief Risk Officer (CRO) who decides risk strategy and promotes proper risk culture, is in charge of overseeing all risks and challenging and advising business lines on risk management. The Bank’s Chief Compliance Officer (CCO) who decides compliance and conduct strategy, is in charge of controlling the risks within their purview and must provide the Bank CRO with a complete overview on the situation of risks being monitored. Both the Bank´s CRO and CCO have direct access, and report to the risk supervision, regulation and compliance committee and the Board of Directors. The executive risk, risk control and compliance and conduct committees are executive committees and have been delegated powers by the Board of Directors. Risk functions have forums and regular meetings to manage and control the risks under their scope. Their responsibilities include: • Reporting to the Bank’s CRO, the Bank’s CCO, the risk control committee and the compliance and conduct committee on risk management according to risk appetite; • Monitoring and ensuring proper management of each risk factor; and • Overseeing measures to comply with supervisors and auditors' expectations. In order to establish an appropriate control environment in the management of each of the risk factors, the Risk and Compliance and Conduct functions have effective internal regulations that allow them to carry out adequate risk management and control. General compliance committee The committee is responsible for reviewing significant compliance and conduct risk events, and evaluating related measures. It devises and assesses corrective actions for compliance risks owing to shortcomings in management and control or new risks. This committee is chaired by the CCO and it is composed of senior management from the Compliance & Conduct, Risk, Accounting and Management functions. The committee chair has a casting vote over committee resolutions. The Bank may set up additional governance for special cases. Amid the COVID-19 pandemic, coordination and communication are essential to making sure the Bank´s actions are effective, underpinned by written communication, meetings, reporting and enhanced governance The Bank monitored the pandemic intensively through special situation forums such as the credit risk war room, in addition to the Bank´s regular governance framework. 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 The Bank has these effective risk management processes and tools: 3.1 Risk appetite and structure of limits Risk appetite is the volume and type of risks deemed prudent to assume for the business strategy of the Bank, even under unexpected circumstances. It considers adverse scenarios that could have a negative impact on capital and liquidity, profitability and/or the share price. The risk appetite statement (RAS) is annually set by the Board of Directors for the Bank. The Board of Directors is responsible for approving the respective risk appetite proposals. 3.1.1 Business model and risk appetite fundamentals The Bank's risk appetite is consistent with the risk culture and its unique business model built on customer focus, scale and diversification. At the core of the Bank´s risk appetite are: ● A medium-low and predictable target risk profile that is centered on retail and commercial banking, internationally diversified operations and strong market share; ● Stable, recurrent earnings and shareholder remuneration, sustained by sound capital, liquidity and sources of funding; ● An independent risk function with active senior management that embeds a strong risk culture and drives a sustainable return on capital; ● A global, holistic view through a meticulous control and monitoring of risks, businesses and markets; ● A focus on products the Bank knows well; ● A conduct model that protects the Bank's customers; and ● A remuneration policy that reconciles employees and executives' interests to risk appetite and long-term results. 3.1.2 Risk appetite principles The principles informing the Bank´s risk appetite are: ● The Board of Directors and Bank’s Management responsibility for risk appetite; ● An enterprise-wide view of risk, back-testing and challenge of risk profile based on quantitative metrics and qualitative indicators; ● Forward-looking view based on plausible assumptions and adverse/stress scenarios to reflect the desired risk profile in the short and medium term; ● Strategic and business plans embedded in daily management by polices and limits; ● Common standards that align with Banco Santander (Spain); and ● Regular reviews, best practice and regulatory requirements with mechanisms in place to keep the risk profile stable and mitigate non-compliance. 3.1.3 Structure of limits, monitoring and control Risk appetite is expressed in qualitative terms and limits structured on these five core elements. ● Earnings volatility: - Maximum loss that the Bank can tolerate in an acute stress scenario. ● Solvency: - Minimum capital position that the Bank can tolerate in an acute stress scenario. - Maximum leverage that the Bank can tolerate in an acute stress scenario. ● 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: - Maximum operational risk losses. - Maximum risk profile. - Non-financial risk indicators: • Financial crime compliance (FCC). • Cyber and security risk. • Model risk. • Reputational risk. b) Credit risk 1. Introduction to the credit risk treatment Credit risk refers to a potential financial loss from the default or credit quality deterioration of a customer or other third party with whom the Bank has a contractual obligation. It is the most important risk, both in terms of exposure and capital consumption. It also includes counterparty risk, country risk and sovereign risk. Credit risk management The Bank identifies, analyses, controls and decides on credit risk based on a holistic view of the credit risk cycle, which includes the transaction, the customer and the portfolio. Credit risk identification is key to managing and controlling the Bank's portfolios effectively. The Bank classifies external and internal risks in each business and adopts corrective and mitigating measures when needed through these processes: 1.1 Planning The Bank's planning helps to achieve business objectives and define specific action plans within the Bank's risk appetite framework. Strategic commercial plans (SCP) are a management and control tool defined by the Business and Risk areas for the Bank's credit portfolios. They determine commercial strategies, risk policies, resources and infrastructure, ensuring a holistic view of the portfolios. They provide managers with an updated view of credit portfolio quality to measure credit risk, run internal controls over the defined strategy coupled with regular monitoring, detect significant deviations in risk and potential impacts, and take corrective actions when necessary. They also align with the Bank's risk appetite capital targets. 1.2. Risk assessment and credit rating To analyze customers’ ability to meet contractual obligations, the Bank uses valuation and parameter estimation models in each of the segments. The Bank's credit quality valuation models are based on credit rating drivers, which are monitored to calibrate and adjust the decisions and ratings they assign. Depending on each segment, drivers can be: ● Rating: resulting from the application of mathematical algorithms that have a quantitative model based on balance sheet ratios or macroeconomic variables, and a qualitative module supplemented by the credit analyst’s expert judgment. It is used for Santander Corporate and Investment Banking, corporate, institutional and small and medium-sized enterprises segments (with individualized treatment). ● Scoring: an automatic assessment system for credit applications. It automatically assigns an individual score to each credit. A behavior score is also calculated and updated monthly to assess customer’s behavior and therefore, with other variables, determine the credit expected loss, generally in the retail and small and medium-sized enterprises segments. The Bank's parameter estimation models follow econometric models built on the Bank's portfolios' historical defaults and losses and uses them to calculate economic and regulatory capital as well as IFRS 9 allowance for impairment losses for each portfolio. The Bank regularly monitoring and evaluates models' appropriateness, predictive capacity, performance, granularity, compliance with policies and other related factors. The Bank reviews ratings with the latest available financial and economic information. The Bank has also increased the reviews for customers who are under closer observation or have automatic warnings in the risk management systems. 1.3. Credit risk mitigation techniques Risk approval criteria are generally based on the borrowers’ ability to pay in fulfilment of financial obligations, notwithstanding any additional collateral or personal guarantees the Bank can require from them. To determine this, the Bank analyzes funds or net cash flows from their businesses or income with no guarantors or the assets pledged as collateral. The Bank always considers guarantors and collateral when deciding to approve a loan as a secondary means of recourse if the first channel fails. In general, a guarantee is as a reinforcement measure added to a credit transaction to mitigate a loss due to a failure to meet a payment obligation. The Bank has credit risk mitigation techniques for various types of customer and products. Some are for specific transactions (e.g., property) while others apply to a series of transactions (e.g., derivatives netting and collateral). 1.4. Definition of limits, pre-classifications and pre-approvals The Bank uses strategic commercial plans to manage credit portfolios, defining limits for each of them and for new originations, in line with the Bank´s credit risk appetite and its target risk profile. Transposing the Bank´s risk appetite to portfolio management strengthens controls over the Bank´s credit portfolios. The Bank´s limits, pre-classifications and pre-approvals processes determine the risk that the Bank can assume with each customer. The Business and Risk areas set risk limits that are approved by the executive risk committee (or delegated committees) and should reflect a transaction’s expected risk return. The Bank applies various limits models to each segment: ● Large corporate are subject to a pre-classification model based on a system for measuring and monitoring economic capital. Pre-classification models express the level of risk the Bank is willing to assume in transactions with customers/groups in terms of capital at risk, nominal cap and maximum tenors. To manage limits with financial entities, the Bank uses Credit Equivalent Risk (CER), which includes actual and expected risks with customers according to risk appetite and credit policies. ● Corporates and institutions that meet certain requirements (strong relationships, rating, etc.): The Bank uses simpler pre-classification model with an internal limit. It establishes a reference point in a customer's level of risk based on repayment capacity, overall indebtedness and a pool of banks. Transactions with large corporates, corporates and institutions above certain limits or with special characteristics could require approval from a senior credit analyst or a committee. ● For individual customers and small and medium-sized enterprises with low turnover, the Bank manages large volumes of credit transactions with automatic decision models to classify customers and transactions. 1.5. Scenario analysis Scenario analysis is used in loan portfolio management as an evolution of the portfolio analysis. It enriches the understanding of the portfolio performance under different macroeconomic conditions, and allows management strategies to be anticipated and defined in order to avoid future deviations from the established plans and targets. The approach taken with regard to scenario analysis consists of simulating the impact of alternative scenarios in the portfolio credit parameters (PD, LGD) and the associated expected credit losses. The results of this analysis are compared with the portfolio’s credit profile indicators to identify the most appropriate measures that could be developed to guide the required management actions. Scenario analysis is integrated into credit management portfolio activities and in the strategic commercial plans. 1.6. Monitoring Regularly monitoring business performance and comparing it to pre-defined plans is key to the Bank’s risk management. The Bank holistic monitoring of customers helps early detection of impacts on risk performance and credit quality. The Bank assigns customers a monitoring classification with a pre-defined course of action and ad hoc measures to correct any deviations. Monitoring, which considers transaction forecasts and characteristics, in addition to changes in classification, is performed by risk teams supported by the Internal Audit unit and is based on customer segmentation: ● In the Santander Corporate and Investment Banking segment, monitoring, in the first instance, is a direct function of both the business manager and the risk analyst, who maintain the direct relationship with the customer and manage the portfolio. This guarantees an up-to-date view of the customers’ credit quality is always available and allows the Bank to anticipate situations of concern and take the necessary actions. ● For corporates, institutions and small and medium-sized enterprises with a credit analyst assigned, the function consists of identifying and tracking customers that require closer monitoring, reviewing ratings and continuously analyzing relevant indicators. ● For Santander Corporate and Investment Banking, corporate and institutions segments, the Bank performs the monitoring process through the Santander Customer Assessment Note (SCAN), which was implemented in the Bank since 2020 ● The Bank’s SCAN system aims to establish the level of monitoring, policies and specific actions for all individual customers, based on their credit quality and particular circumstances. Each customer is assigned a level of monitoring, and specific risk management actions, on a dynamic basis, with a specific manager appointed and agreed monitoring frequency. ● For individual customers, businesses and smaller small and medium-sized enterprises monitoring is carried out through automatic alerts, in order to detect shifts in the performance of the portfolio . In addition to customer credit quality monitoring, the Bank establishes the control procedures needed to analyze portfolios and performance, as well as any possible deviations regarding planning or approved alert levels. Portfolio analysis systematically controls the evolution of credit risk with regard to budgets, limits and benchmarks, assessing the impacts of future situations, both exogenous and resulting from strategic decisions, to establish actions to keep the risk portfolio profile and volumes within the parameters set by the Bank within its risk appetite. 1.7. Recovery and collections management The Collections and Recoveries area carries out recoveries, which are important to risk management. It defines an enterprise-wide management strategy with guidelines and general lines of action for the Bank based on the economic environment business model and other recovery conditions. Recovery management follows regulatory requirements set out on the management of non-performing and forborne exposures. In addition, the Bank applies specific policies on recovery management that include the principles of the different strategies. The Collections and Recoveries areas directly manages customers, where value creation is based on effective and efficient collection management. New digital channels are becoming increasingly important in recovery management. The diverse features of Bank’s customers make segmentation necessary in order to manage recoveries adequately. Mass management of large groups of customers with similar profiles and products is conducted through processes with a high technological and digital component, while personalized management focuses on customers who, because of their profile, require a specific manager and a more customized management. Recovery management is divided into four phases: in arrears, non-performing loans recoveries, write-offs recoveries and management of foreclosed assets. The management scope for the Recovery function includes non-productive assets (NPA), corresponding to the forborne portfolios, non-performing loans, written-off loans and foreclosed assets, where the Bank may use mechanisms to rapidly reduce the volume of these assets, such as the sale of portfolios or foreclosed assets. In the written-off loans category, debt instruments are included (past due or otherwise) the recovery of which, after an individualized analysis, is considered remote, due to the severe and unrecoverable impairment of the solvency of the transaction or the customer. Classification in this category involves full cancellation of the gross carrying amount of the loan and its derecognition, which does not mean that the Bank interrupts negotiations and legal proceedings to recover the amounts. 1.8 Forborne loan portfolio Forbearance is defined as the modification of the payment conditions of a transaction that allow a customer who is experiencing financial difficulties (current or foreseeable), to fulfil their payment obligations. The Bank follows rigorous criteria for the evaluation, classification and monitoring of such transactions, ensuring the strictest possible care and diligence in their approval and monitoring. Therefore, the forbearance transaction must be focused on recovery of the amounts due and the payment obligations adapted to the customer's current position and, in addition, losses must be recognized as soon as possible if any amounts are deemed irrecoverable. Forbearance is never used to delay the immediate recognition of losses or to hinder the appropriate recognition of risk of default. Further, the Bank defines the classification criteria for forborne transactions in order to ensure that any risks are suitably recognized, bearing in mind that they must remain classified as non-performing or watch list for an appropriate period to ensure reasonable certainty that repayment capacity can be recovered. Certain information regarding the forborne loan portfolio is included in Note 11.f. 1.9 Credit risk metrics Loans and advances to customers increased 0.9% year-on-year. Non-performing loans amounted to 21,203 million pesos as of December 31, 2022, a 6% decrease compared to December 31, 2021. As of December 31, 2022, the non-performing loans ratio was 2.5%, a decrease of 2 basis points compared to December 31, 2021. As of December 31, 2022, the allowance for loan losses amounted to 21,652 million pesos, 3% higher than at the end of 2021, mainly explained by the recovery in the different loan portfolios. As of December 31, 2022, the Bank recognized in the consolidated income statement an amount of 16,100 million pesos of impairment losses on financial assets, 16.37% less than in the year 2021. Regarding credit risks, the main indicators are also continuously monitored and maintain a robust credit quality supported by mitigation measures and volume increases. 2. Main aggregates and variations Following are the main aggregates relating to credit risk from the Bank’s activities with customers: Loans to customers (million pesos) Non-performing loans (million pesos) Percentage of non-performing loans by type of customer 2020 2021 2022 2020 2021 2022 2020 2021 2022 By loan type: Public Sector 73,016 85,256 52,094 — — — — — — Commercial, financial and industrial 346,075 354,554 393,612 6,530 9,937 5,587 1.9% 2.8% 1.4% Mortgage 177,665 199,579 205,242 9,847 9,725 11,867 5.5% 4.9% 5.8% Installment loans to individuals 116,227 122,699 147,217 5,532 2,991 3,749 4.8% 2.4% 2.5% Revolving consumer credit card loans 53,809 53,417 63,782 2,543 1,328 1,175 4.7% 2.5% 1.8% Non revolving consumer loans 62,418 69,282 83,435 2,989 1,663 2,574 4.8% 2.4% 3.1% 712,983 762,088 798,165 21,909 22,653 21,203 3.1% 3.0% 2.7% 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, and expected loss. 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, 2021 and 2022, 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, 2022, there are two loans granted to debtors (the first of 66,520 million pesos and the second of 25,103 million pesos) representing individually an amount greater than 10% of the Bank’s Basic Capital (of the quarter immediately preceding the reporting date). The first one is granted to Santander Consumo, a subsidiary of the Bank, and it was eliminated for consolidation purposes in these consolidated financial statements. c) As of December 31, 2021, assets and liabilities transactions with the three main debtors or groups of individuals representing a joint risk for the aggregate amount of 44,816 million pesos that represent 31.56% of the Bank’s Basic Capital. d) As of December 31, 2022, assets and liabilities transactions with the three main debtors or groups of individuals representing a joint risk for the aggregate amount of 46,826 million pesos that represent 40.80% of the Bank’s Basic Capital. 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. 48% of the Bank´s net customer loans are secured, mostly by real estate collateral. Mortgages to individuals represent approximately 24% of the Bank´s 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´s 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 activities are of a non-commercial nature. The Bank’s sovereign exposure is mostly in pesos. This exposure is recognized in the consolidated balance sheet and concentrated 46% in short and medium-term maturities. Over the past few years, total exposure to sovereign risk has remained aligned with the regulatory requirements and strategic reasons that support the management of this portfolio. Regarding the deterioration measurement of these exposures, the Bank has evaluated methodologies and criteria in accordance with IFRS 9 general criteria, integrating common processes, systems, tools and data that are used both for accounting purposes and for capital adequacy. In case of sovereign risk, the few default cases existing over the last decades only reflect the possibility of a potential unexpected loss that, due to its scarcity, cannot be modelled. Consequently, for this type of sovereign risk, the expected loss is considered irrelevant in consistency with unexpected loss. c) Trading market risk, structural and liquidity risk 1. Activities subject to market risk and types of market risk Activities exposed to market risk encompass transactions where risk is assumed as a consequence of potential changes in interest rates, inflation rates, exchange rates, stock prices, credit spreads, commodity prices, volatility and other market factors; the liquidity risk from the Bank’s products and markets, and the balance-sheet liquidity risk. Therefore, they include trading risks and structural risks: ● Interest rate risk arises from movements in interest rates t |
Associated entities and consoli
Associated entities and consolidated subsidiaries | 12 Months Ended |
Dec. 31, 2022 | |
Associated entities and consolidated subsidiaries | |
Associated entities and consolidated subsidiaries | 49. Associated entities and consolidated subsidiaries a) Associated entities Following is a summary of the balance sheet on the associated entity as of December 31, 2021: 2021 Current assets 5,678 Non-current assets 3,549 Current liabilities (6,119) Non-current liabilities (31) Net assets 3,077 Following is a summary of the income statement on the associated entity as of December 31, 2021: 2021 Revenue 2,399 Expenses (1,728) Operating profit before tax 671 Income tax (178) Profit for the year 493 As of December 31, 2021 and 2022 the income accounted by the equity method recognized in the consolidated income statement was 200 million pesos and 182 million pesos, respectively. The table below provides the reconciliation of the carrying amount of the investment in associated entities recognized in the consolidated balance sheet as of December 31, 2021: 2021 Reconciliation to carrying amount: Net assets on investment date 2,584 Profit for the period 493 Closing net assets 3,077 Bank’s share in associated entity (percentage) 49 % Bank’s share in associated entity 1,508 Goodwill 669 Sale of merchant contracts (784) Other adjustments (13) Carrying amount as of December 31 1,380 As mentioned in Note 3, during 2021 Banco Santander México sold acquisition contracts to SMPS (associated entity) for 1,600 million pesos. In accordance with IAS 28, the Bank recognized in the consolidated income statement a gain on the sale in the amount of 816 million pesos, with a corresponding credit to the investment in associated entity for 784 million. The Bank received 583 million in cash and a note receivable from SMPS in the amount of 1,017 million as proceeds from the sale of the acquisition contracts. The note receivable was subsequently capitalized as a capital contribution to SMPS. 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, 2022, 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 % Openbank Santander México, S.A. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad Regulada Financial services 99.99 % 100 % The total non-controlling interest recognized in the consolidated balance sheet as of December 31, 2022, amounts to 62 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, 2022: ● 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 121,859 million pesos of debt instruments have been received as collateral in connection with reverse repurchase agreement transactions (see Notes 7 and 11). ● Repurchase agreements 119,213 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). 86,052 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). 7,720 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 2,211 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). 7,799 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). ● Securities loans 410 million pesos of equity instruments pledged in connection with securities loans transactions (see Note 9). 1 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 6,530 million pesos of loans and advances to customers have been pledged in connection with financial derivatives traded in organized markets (see Note 11). ● Collaterals in OTC financial derivatives transactions 14,585 million pesos of loans and advances to credit institutions have been pledged in connection with OTC financial derivatives transactions (see Note 7). 1,417 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). 15,676 million pesos of deposits from credit institutions and customer deposits have been received in connection with OTC financial derivatives transactions (see Note 32). 5,660 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 16,365 million pesos that include 13,971 million pesos in legal reserve of Banco Santander México (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 69,785 million pesos and 485 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 2021 and 2022. ***** |
Accounting policies (Policies)
Accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
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 “day-end” exchange rate used was $20.5075 per one USD and $19.5089 per one USD as of December 31, 2021 and 2022, 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 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, 2021 and 2022 is shown in Note 49. ii. Investments in associated 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. The results, assets and liabilities of associated entities 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 investment in the associate), 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. An investment in an associate is accounted for using the equity method from the date on which the investee becomes an associate. On acquisition of the investment in an associate, 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. 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 when the investment is classified as held for sale. When the Bank retains an interest in the former associate 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 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 is included in the determination of the gain or loss on disposal of the associate. In addition, the Bank accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required if that associate had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognized in other comprehensive income by that associate 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 is disposed of. When the Bank reduces its ownership interest in an associate 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 are recognized in the consolidated financial statements only to the extent of interests in the associate that are not related to the Bank. The Bank applies IFRS 9, including the impairment requirements, to long-term interests in an associate 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 Investments in Associates and Joint Ventures As of December 31, 2021 and also for 6 months during 2022, the Bank maintained an investment in an associated entity as detailed in Note 49.a. An investor measures an associate that is classified as held for sale at the lower of its carrying amount at the date of classification as held for sale and fair value less costs to sell. Equity accounting ceases once an associate is classified as held for sale. 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. Share-based payments are discussed in Note 42.b, 42.c, 42.d. and 43.b 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 Banco Santander México, liabilities incurred by Banco Santander México 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 Banco Santander México 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 Banco Santander México 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, Banco Santander México 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 Banco Santander México’s ownership interests in existing subsidiaries Changes in Banco Santander México’s ownership interests in subsidiaries that do not result in Banco Santander México 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 Banco Santander México’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 Banco Santander México. When Banco Santander México 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 Banco Santander México 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 (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 are 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, securities loans and sales of borrowed securities (short positions). Additionally, 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, in accordance with a documented risk management or investment strategy, and information about the group is provided on that basis to the Bank’s key management personnel. - Financial 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, 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. - 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 the consolidated income statement. Foreign exchange gains and losses are presented in Exchange differences (net) and impairment losses are presented within Impairment losses on financial (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 calculated using the effective interest method 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 on financial assets not at fair value through profit or loss (net) in the consolidated income statement. - FVTPL: financial instruments included in a business model whose objective is not obtained through the above-mentioned models, where fair value is a key factor in managing of these 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 Other interest and similar income 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 basis 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. 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 The Bank classifies financial debt instruments as follows: - Fair value through other comprehensive income: Financial 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. - Fair value through profit or loss: Financial instruments classified as at FVTPL are measured at fair value at the end of each reporting period. Changes in the fair value of debt instruments 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. 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, 2021 and 2022, 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 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 basis 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, 2021 and 2022 of the financial assets and liabilities indicated below, classified based on the various measurement methods used by the Bank to determine their fair value: 12/31/2021 12/31/2022 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 106,073 255,542 361,615 110,273 374,714 484,987 Financial assets at fair value through other comprehensive income 250,631 145,198 395,829 303,319 12,230 315,549 Hedging derivatives — 11,248 11,248 — 10,181 10,181 356,704 411,988 768,692 413,592 397,125 810,717 LIABILITIES: Financial liabilities at fair value through profit or loss 62,570 288,847 351,417 28,762 405,350 434,112 Hedging derivatives — 8,162 8,162 — 4,461 4,461 62,570 297,009 359,579 28,762 409,811 438,573 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 financial asset or paid to transfer the financial 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 of equity instruments: There is no liquid option market for certain long-term financial assets. For most Mexican underlying assets, the option market is for up to one year. - Interest rate curve for estimating the interest rate index known as the 91-day TIIE (Tasa de Interés Interbancaria de Equilibrio) 91-day 28-day - 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 financial 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 and valuation 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 ready to be placed on the market. 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 making use of 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 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. 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. - 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, such as the CDS quoted spread curve, 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, 2021 amounted to 146 million pesos and 933 million pesos, respectively. The CVA and DVA recognized as of December 31, 2022 amounted to 252 million pesos and 856 million pesos, respectively. All financial instruments fair values are calculated on a daily basis. 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, 2021 and 2022. Fair Fair Values Values Calculated Calculated Using Internal Using Internal Valuation Techniques Key Inputs Models as of Models as of 12/31/2021 12/31/2022 Level 2 Level 3 Total Level 2 Level 3 Total ASSETS: Financial assets at fair value through profit or loss: 255,403 139 255,542 374,644 70 374,714 Loans and advances to credit institutions – Reverse repurchase agreements 58,486 — 58,486 102,652 — 102,652 Forward estimation (non-closed formula) Interest rate yield curve Loans and advances to customers – Reverse repurchase agreements 10,000 — 10,000 19,207 — 19,207 Forward estimation (non-closed formula) Interest rate yield curve Debt and equity instruments 49,404 — 49,404 24,043 — 24,043 Price vendor Financial instruments with low trading volume or minimum marketability Trading derivatives: Interest rate options 711 — 711 1,277 — 1,277 Black model (closed-formula solution) Interest rate yield curve and implied volatility surface Market index options: 130 — 130 170 — 170 European options 11 — 11 — — — Black model (closed-formula solution) Interest rate yield curves, quoted equity prices and index levels, implied volatility surface and dividend estimate Quanto options 115 — 115 152 — 152 Local volatility model with partial differential equation method Interest rate yield curves, quoted equity prices and index levels, implied volatility surface, historical correlations and dividend estimate Auto-callable 4 — 4 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 dividend estimate Asian quanto — — — 17 — 17 Local volatility model with partial differential equation method Interest rate yield curves, quoted equity prices and index levels, implied volatility surface, historical correlations and dividend estimate Exchange rate options: 1,874 — 1,874 2,321 — 2,321 European barrier — — — 5 — 5 Black model (closed-formula solution) Interest rate yield curves, quoted exchange rates and implied volatility surface Barrier options — — — 3 — 3 Logarithmic stochastic local volatili |
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. 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, 2022: 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 238,997 — 238,997 (204,724) (4,541) (26,861) 2,871 Reverse repurchase agreements 121,859 — 121,859 (2,461) (119,398) — — Equity instruments (*) (see Note 9.a) — — — — (1) — (1) Total 360,856 — 360,856 (207,185) (123,940) (26,861) 2,870 As of December 31, 2021: 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 190,638 — 190,638 (152,313) (4,491) (26,894) 6,940 Reverse repurchase agreements 68,486 — 68,486 (4,799) (63,687) — — Equity instruments (*) (see Note 9.a) 9 — 9 — (74) — (65) Total 259,133 — 259,133 (157,112) (68,252) (26,894) 6,875 (*) As of December 31, 2021 and 2022, the financial instruments received as collateral in lending transactions amount to 74 million pesos and 1 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, 2022: 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 235,649 — 235,649 (204,724) (7,077) (15,676) 8,172 Repurchase agreements 299,320 — 299,320 (2,461) (300,467) — (3,608) Short positions 28,762 — 28,762 — (28,932) — (170) Total 563,731 - 563,731 (207,185) (336,476) (15,676) 4,394 As of December 31, 2021: 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 184,840 — 184,840 (152,313) (6,375) (13,222) 12,930 Repurchase agreements 264,260 — 264,260 (4,799) (265,862) — (6,401) Short positions 19,554 — 19,554 — (19,702) — (148) Total 468,654 — 468,654 (157,112) (291,939) (13,222) 6,381 |
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 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 estimated 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 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 estimated 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 future 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) <= 0.001746 6 0.001746 - 0.003955 8 0.003955 - 0.006149 10 0.006149 - 0.023039 12 0.023039 - 0.041789 14 >0.041789 16 Commercial loans to real estate “Lifetime PD” band at Increase in “Lifetime PD” at reporting date which initial recognition (%) is considered significant (basis points) <=0.015438 4 0.015438 - 0.045128 9 0.045128 - 0.107460 11 0.107460 - 0.136594 17 >0.136594 20 Commercial loans to small and medium-sized enterprises “Lifetime PD” band at Increase in “Lifetime PD” at reporting date which initial recognition (%) is considered significant (basis points) <=0.022138 7 0.022138 - 0.037734 9 0.037734 - 0.062950 11 0.062950 - 0.099364 13 0.099364 - 0.131539 23 0.131539 - 0.175113 27 0.175113 - 0.198299 28 0.198299 - 0.281104 29 >0.281104 30 Mortgage loans “Lifetime PD” band at Increase in “Lifetime PD” at reporting date which initial recognition (%) is considered significant (basis points) <=0.058243 14 0.058243 - 0.082909 15 0.082909 - 0.146843 17 0.146843 - 0.164525 18 0.164525 - 0.189841 20 0.189841 - 0.260988 21 0.260988 - 0.350462 25 >0.350462 28 Revolving consumer credit card loans “Lifetime PD” band at Increase in “Lifetime PD” at reporting date which initial recognition (%) is considered significant (basis points) <=0.013470 9 0.013470 - 0.022584 12 0.022584 - 0.030918 14 0.030918 - 0.042373 16 0.042373 - 0.051001 22 0.051001 - 0.063232 28 0.063232 - 0.083787 34 0.083787 - 0.106176 40 >0.106176 46 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) <=0.065107 12 0.065107 - 0.084679 15 0.084679 - 0.114538 17 0.114538 - 0.120289 18 0.120289 - 0.144679 19 0.144679 - 0.172172 22 0.172172 - 0.268165 26 >0.268165 30 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) <=0.135945 14 0.135945 - 0.172186 15 0.172186 - 0.194727 17 0.194727 - 0.245958 19 0.245958 - 0.26134 23 0.26134 - 0.290297 25 0.290297 - 0.334647 27 >0.334647 29 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 either or both of the following conditions have taken place: ● The obligor/credit facility is past due more than 90 consecutive days on any material credit obligation (including any amount of principal, interest or fee). ● There are indications that the obligor/credit facility is unlikely to pay its credit obligations in full, without recourse to actions such as realizing security. The Bank applies the following criteria to classify financial assets as credit-impaired loans: ● Retail In the case of retail exposures, the definition of default may be applied at the level of an obligor for some types of retail exposures and at the level of a credit facility for others (if it is well justified by internal risk management practices such as different business model). ● Non retail Non-retail exposure classes must be considered at the obligor level and where the obligor is considered defaulted, all exposures to that obligor should be considered defaulted. Materiality of credit obligations past due shall be assessed against a materiality threshold that is composed of both an absolute and a relative components (see below specific cases for retail and non-retail exposures). Where both of those components are breached for more than 90 consecutive days a default would be considered to have occurred. The scope of exposures that must be taken into account in the numerator/ denominator when calculating the materiality threshold is different depending on the level of the definition of default: ● Where the definition of default is applied at the level of an obligor the components of the materiality threshold should also be applied at the level of an obligor. ● Where the definition of default is applied at the level of credit facility (retail exposures) the components of the materiality threshold should also be applied at the level of credit facility. ● In the case of retail exposures, a joint obligor should be treated as a different obligor from each of the individual obligors and therefore, the components of the materiality threshold should be assessed by applying the materiality threshold to all joint credit obligations granted to this specific set of obligors. 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 loan 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 loan type. ● For secured loans, 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 loans, LGD is typically set by loan 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 loan 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, 2022 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 life of the financial assets For the purpose of estimating the expected life of the financial assets, all the contractual terms have been taken into account (i.e., prepayments, duration, purchase options, etc.), being the contractual period (including extension options) the maximum period considered to measure the expected credit losses. In the case of financial assets with an uncertain maturity period and a component of undrawn commitment (i.e., credit cards), the expected life is estimated through quantitative analyses to determine the period during which the entity is exposed to credit risk, also considering the effectiveness of management procedures that mitigate such exposure (e.g. the ability to unilaterally cancel such financial asset, etc.). Expected credit loss measurement considerations related to COVID-19 pandemic During 2021 and 2020, expected credit losses measurement according to IFRS 9 was challenging given its determination incorporated the estimation of credit events, and their consequential cash shortfalls, based on a probability - Expected credit losses are a discounted probability - The IASB had indicated that entities should not continue to apply their existing ECL methodology mechanically. IFRS 9 requires the application of judgment and required and allowed 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 due to the COVID-19 pandemic environment. Measurement of expected credit losses and assessment of a significant increase in credit risk were based on reasonable and supportable information that was 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 capturing the effects of the COVID - The environment was subject to rapid change, so the Bank continuously monitors updated facts and circumstances as new information becomes available. IFRS 9 is purposefully designed to be forward-looking, reflecting expectations of future credit events (and resulting cash shortfalls) assessed at the reporting date. The expected credit losses estimated by the Bank as of December 31, 2022 are based on all reasonable and supportable information including that, which is forward-looking. During 2020 and 2021, the Bank updated the following forward-looking information in the measurement of the expected credit losses due to the 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 creditors by the same customer can vary. ● Customers’ behavior in respect of timing of prepayment or extension options, or use of undrawn facilities that affect Bank’s exposure. ● Valuation of collateral and timing of foreclosure. This forward - In applying IFRS 9, the Bank defined a number of key terms and made a number of important application decisions when measuring expected credit losses. One such item is the definition of default. The definition of default directly influences the staging of exposures given that staging is based on the probability of default happening. IFRS 9 required that default definition was applied consistently to all financial instruments unless information becomes available that demonstrates that another default definition was more appropriate for a particular financial instrument to ensure that they reflect current economic conditions of what a default was. IFRS 9 states that there was a rebuttable presumption that default did not occur later than when a financial asset was ninety days past due unless there was reasonable and supportable information to demonstrate that a more lagging default criterion was more appropriate. In staging analysis, the Bank did not apply mechanically the identification of a significant increase in credit risk. Assessment of a significant increase in credit risk was based on reasonable and supportable information that is available without undue cost or effort. The Bank applied a medium-long term approach when assessing the customer’s credit quality and considers if the customer was experiencing temporary financial difficulties in order to determine the correspondent classification (staging). Repayment capacity of the customer in the medium-term was also evaluated. The Bank monitors the behavior of ratings and in case of atypical movements; implements actions in order to avoid an excessive impact on the expected credit losses. As of December 31, 2022, considering the positive evolution of the pandemic effects on financial assets, additional credit loss measurement considerations related to COVID-19 pandemic were not necessary. Post-model adjustments - overlays During 2020, the Bank decided to recognize a “macroeconomic overlay”, which was calculated with a long-run vision in order to avoid short-term volatility, which was determined from a softening of the macroeconomic scenario that the Bank uses in its annual planning exercise with a three-year horizon. This “macroeconomic overlay” was calculated under a bottom-up approach, aligned with the ‘business as usual’ (BAU) process of forward-looking calculation, where the sensitivity resulting from the expected credit losses, at a credit level, is distributed for each of the loan portfolios. During the course of 2020 and 2021, the macroeconomic overlay was reversed as a result of the return to normality of the Mexican economy. Accordingly, there are no post-model adjustments as of December 31, 2022. Details of post-model adjustments for 2020 – overlays is presented in Note 11.d. Effective guarantees The following constitute effective guarantees: a) Mortgage guarantees on housing as long as they are first duly constituted and registered in favor of the Bank. The properties include: i. Buildings and building elements, distinguishing among: ● Houses; ● Offices, stores and multi-purpose premises; and ● Rest of buildings such as non-multi-purpose premises and hotels. ii. Urban and developable ordered land. iii. Rest of properties that classify as: buildings and building elements under construction, such as property development in progress and halted development, and the rest of land types, such as rural lands. b) Collateral guarantees on financial instruments in the form of cash deposits and debt securities issued by creditworthy issuers. c) Other types of real guarantees, including properties received in guarantee and second and subsequent mortgages on properties, as long as the entity demonstrates its effectiveness. When assessing the effectiveness of the second and subsequent mortgages on properties the entity will implement particularly restrictive criteria. It will take into account, among others, whether the previous charges are in favor of the entity itself or not and the relationship between the risk guaranteed by them and the property value. d) Personal guarantees, as well as the incorporation of new owners, covering the entire amount of the financial instruments and implying direct and joint liability to the entity of persons or other entities whose solvency is sufficiently proven to ensure the repayment of the loan on the agreed terms. Forward-looking information incorporated in the expected credit losses models The Bank already uses forward-looking information in internal administration and regulatory processes and has leveraged its experience in the management of such information, maintaining consistency with the information used in the other processes. The assessment of significant increase in credit risk and the calculation of expected credit losses both incorporate forward-looking information. The Bank has performed historical analysis and identified the key macroeconomic and portfolio factors affecting credit risk and expected credit losses for each financial assets portfolio. The following represent the most significant factors that could substantially change the estimated expected credit losses: ● Peso/USD exchange rate, given its substantial influence on operations and profitability. ● Stock markets, given its considered critical to economic development as it gives companies the ability to quickly access capital from the public. ● Investment funds, as an indicator of the country´s socio-economic development and therefore in the investors’ confidence. ● CPI, given its overall relevance for entities’ performance, customers’ purchasing power and economic stability. ● Loans – Consumer, given its relation to personal income and saving as a source of consumer purchasing power. ● Unemployment rates, given its significant effect on customers’ ability to meet contractual obligations. ● GDP growth rates, given their significant effect on borrowers’ performance. ● Loans – Mortgage, given that change in the real estate market have broader economic implications and vice versa. ● Real estate housing prices, given its importance as the measure of the rat |
Repurchase agreements and reverse repurchase agreements | h) 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 and reverse repurchase agreements are managed and its performance is evaluated on a fair value basis. |
Non-current assets held for sale | i) 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. For the sale to be highly probable, the appropriate level of management must be committed to a plan to sell the asset (or disposal group), and an active program to locate a buyer and complete the plan must have been initiated. Further, the asset (or disposal group) must be actively marketed for sale at a price that is reasonable in relation to its current fair value. In addition, the sale should be expected to qualify for recognition as a completed sale within one year from the date of classification and actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Specifically, property or other non-current assets received by the Bank as total or partial settlement of their debtors’ payment obligations to them are deemed to be non-current assets held for sale, unless the Bank has decided to make continuing use of these assets. Liabilities associated with non-current assets held for sale include the balances payable arising from the assets held for sale or disposal groups and from discontinued operations. Non-current assets held for sale are measured at the lower of fair value less costs to sell and their carrying amount at the date of classification in this category. Non-current assets held for sale are not depreciated as long as they remain in this category. Impairment losses on an asset or disposal group arising from a reduction in its carrying amount to its fair value (less costs to sell) are recognized under Gains/(losses) on disposal of non-current assets held for sale not classified as discontinued operations (net) in the consolidated income statement. The gains on a non-current asset held for sale resulting from subsequent increases in fair value (less costs to sell) increase its carrying amount and are recognized in the consolidated income statement up to an amount equal to the impairment losses previously recognized. |
Tangible assets | j) 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). 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 | k) Leases The Bank as lessee 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: ● ● ● ● 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 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, 2021 and 2022, 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) the lease payments receivable by a lessor under a finance lease; and (b) any unguaranteed residual value accruing to the lessor. 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 calculated using the effective interest method 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 | l) 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. 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.j). 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 | m) 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, which is considered to be likely to occur and certain as to its nature but uncertain as to its amount and/or timing. - Contingent liabilities: possible obligations that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more future events not wholly within the control of the 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.s). - 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 | n) Court proceedings and/or claims in process At the end of 2021 and 2022, 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 | o) Share-based payments Equity-settled shared-based payments to employees and others providing similar services were 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 was expensed on a straight-line basis over the vesting period, based on the Bank’s estimate of equity instruments that would 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. Cash-settled share-based payments to employees, 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 the 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 42.b, 42.c, 42.d and 43.b. |
Recognition of income and expenses | p) Recognition of income and expense The most significant criteria used by the Bank to recognize its income and expenses are summarized as follows: i. Interest income and interest expense Interest income and interest expense 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 expense Fee and commission income and expense are recognized using criteria that vary according to their nature. The main criteria are as follows: - Fee and commission income and expense 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 expense Non-finance income and expense 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 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 | q) 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 in the consolidated balance sheet are reclassified to the appropriate provision. |
Loan commitments | r) 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 | s) Post-employment benefits The Bank’s post-employment obligations to its employees are deemed to be defined contribution plans when the Bank makes pre-determined contributions to a separate entity and will have no legal or effective obligation to make further contributions if the separate entity cannot pay the employee benefits relating to the service rendered in the current and prior periods. Post-employment obligations that do not meet the aforementioned conditions are classified as defined benefit plans (see Note 24.c). Defined contribution plans 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 (Other interest income and similar 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. t) 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. u) 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 | v) 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 and reflects uncertainty related to income taxes, if there is any. 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 expense 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 include 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 include 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 | w) Remaining maturity periods The analysis of the maturities of the balances of certain items in the consolidated balance sheet at 2021 and 2022 year-end is provided in Note 45. |
Segment reporting | x) 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 | y) 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 | z) 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 | aa) Consolidated income statement and other comprehensive income This consolidated statement presents the income and expense 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 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 | ab) 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. |
Consolidated statements of cash flows | ac) Consolidated statement of cash flows The following terms are used in the consolidated statement of cash flows with the meanings specified: ● Cash flows: inflows and outflows of cash and cash equivalents, which are short-term, highly liquid investments that are subject to an insignificant risk of changes in value, irrespective of the portfolio in which they are classified. The Bank classifies as cash and cash equivalents the balances recognized under Cash and balances with the Central Bank in the consolidated balance sheet. ● Operating activities: the principal revenue-producing activities of credit institutions and other activities that are not investing or financing activities. ● Investing activities: the acquisition and disposal of long-term assets and other investments not included in cash and cash equivalents. ● Financing activities: activities that result in changes in the size and composition of the equity and liabilities that are not operating activities. |
Introduction, basis of presen_2
Introduction, basis of presentation of the consolidated financial statements and other information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intro, basis of presentation of the consolidated financial statements and other information | |
Schedule of contracts affected by the IBOR Reform by type of financial asset | Referenced to Derivatives at Loans at USD LIBOR fair value (1) amortized cost (2) Total affected contracts by the USD LIBOR Reform 3,719 763 Total gross carrying amount of affected contracts 2,946 33,488 (1) Most of the contracts affected by the USD LIBOR Reform are adhered to the International Swaps and Derivatives Association (ISDA) Protocol and will transition automatically to the new reference rates. (2) |
Accounting policies (Tables)
Accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial assets | |
Summary of fair values of financial assets and liabilities classified on the basis of various measurement methods | 12/31/2021 12/31/2022 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 106,073 255,542 361,615 110,273 374,714 484,987 Financial assets at fair value through other comprehensive income 250,631 145,198 395,829 303,319 12,230 315,549 Hedging derivatives — 11,248 11,248 — 10,181 10,181 356,704 411,988 768,692 413,592 397,125 810,717 LIABILITIES: Financial liabilities at fair value through profit or loss 62,570 288,847 351,417 28,762 405,350 434,112 Hedging derivatives — 8,162 8,162 — 4,461 4,461 62,570 297,009 359,579 28,762 409,811 438,573 |
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, 2021 and 2022. Fair Fair Values Values Calculated Calculated Using Internal Using Internal Valuation Techniques Key Inputs Models as of Models as of 12/31/2021 12/31/2022 Level 2 Level 3 Total Level 2 Level 3 Total ASSETS: Financial assets at fair value through profit or loss: 255,403 139 255,542 374,644 70 374,714 Loans and advances to credit institutions – Reverse repurchase agreements 58,486 — 58,486 102,652 — 102,652 Forward estimation (non-closed formula) Interest rate yield curve Loans and advances to customers – Reverse repurchase agreements 10,000 — 10,000 19,207 — 19,207 Forward estimation (non-closed formula) Interest rate yield curve Debt and equity instruments 49,404 — 49,404 24,043 — 24,043 Price vendor Financial instruments with low trading volume or minimum marketability Trading derivatives: Interest rate options 711 — 711 1,277 — 1,277 Black model (closed-formula solution) Interest rate yield curve and implied volatility surface Market index options: 130 — 130 170 — 170 European options 11 — 11 — — — Black model (closed-formula solution) Interest rate yield curves, quoted equity prices and index levels, implied volatility surface and dividend estimate Quanto options 115 — 115 152 — 152 Local volatility model with partial differential equation method Interest rate yield curves, quoted equity prices and index levels, implied volatility surface, historical correlations and dividend estimate Auto-callable 4 — 4 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 dividend estimate Asian quanto — — — 17 — 17 Local volatility model with partial differential equation method Interest rate yield curves, quoted equity prices and index levels, implied volatility surface, historical correlations and dividend estimate Exchange rate options: 1,874 — 1,874 2,321 — 2,321 European barrier — — — 5 — 5 Black model (closed-formula solution) Interest rate yield curves, quoted exchange rates and implied volatility surface Barrier options — — — 3 — 3 Logarithmic stochastic local volatility with partial differential equation method Interest rate yield curves, quoted exchange rates and implied volatility surface European options 1,874 — 1,874 2,313 — 2,313 Black model (closed-formula solution) Interest rate yield curves, quoted exchange rates and implied volatility surface Swaps 129,668 139 129,807 218,036 70 218,106 Forward estimation (non-closed formula) Interest rate yield curve and quoted exchange rates Index and securities futures — — — — — — Forward estimation (non-closed formula) Interest rate yield curve and quoted exchange rates Exchange rate futures 5,130 — 5,130 6,938 — 6,938 Forward estimation (non-closed formula) Interest rate yield curve and quoted exchange rates Financial assets at fair value through other comprehensive income: 141,088 4,110 145,198 11,230 1,000 12,230 Debt instruments 141,088 — 141,088 11,230 — 11,230 Price vendor Financial instruments with low trading volume or minimum marketability. Loans and advances to customers — 4,056 4,056 — 946 946 Forward estimation (non-closed formula) Interest rate yield curve Equity instruments — 54 54 — 54 54 Other Value of shareholders’ equity Hedging derivatives: 11,248 — 11,248 10,181 — 10,181 Swaps 6,015 — 6,015 5,112 — 5,112 Forward estimation (non-closed formula) Interest rate yield curve and quoted exchange rates Exchange rate forwards 5,233 — 5,233 5,069 — 5,069 Forward estimation (non-closed formula) Interest rate yield curve and quoted exchange rates 407,739 4,249 411,988 396,055 1,070 397,125 Fair Fair Values Values Calculated Calculated Using Internal Using Internal Models as of Models as of Valuation 12/31/2021 12/31/2022 Techniques Key Inputs Level 2 Level 3 Total Level 2 Level 3 Total LIABILITIES: Financial liabilities at fair value through profit or loss: 288,741 106 288,847 405,296 54 405,350 Deposits from the Central Bank – Repurchase agreements 23,002 — 23,002 31,055 — 31,055 Forward estimation (non- closed formula solution) Interest rate yield curve Deposits from credit institutions – Repurchase agreements 17,846 — 17,846 22,818 — 22,818 Forward estimation (non- closed formula solution) Interest rate yield curve Customer deposits – Repurchase agreements 114,078 — 114,078 119,769 — 119,769 Forward estimation (non- closed formula solution) Interest rate yield curve Trading derivatives: Interest rate options 915 — 915 1,921 — 1,921 Black model (closed-formula solution) Interest rate yield curve and implied volatility surface Market index options: 264 — 264 1,744 — 1,744 European 29 — 29 — — — Black-Scholes model (closed-formula solution) Interest rate yield curves, quoted equity prices, index levels, implied volatility surface and dividend estimate Auto-callable 149 — 149 61 — 61 Local volatility model with partial differential equation method Interest rate yield curves, quoted equity prices and index levels, implied volatility surface, historical correlations and dividend estimate Asian quanto — — — 9 — 9 Local volatility model with partial differential equation method Interest rate yield curves, quoted equity prices and index levels, implied volatility surface, historical correlations and dividend estimate Quanto options 86 — 86 1,674 — 1,674 Local volatility model with partial differential equation method Interest rate yield curves, quoted equity prices and index levels, implied volatility surface, historical correlations and dividend estimate Exchange rate options: 2,063 — 2,063 2,278 — 2,278 European barrier 5 — 5 32 — 32 Black model (closed-formula solution) Interest rate yield curves, quoted exchange rates and implied volatility surface European options 2,051 — 2,051 2,242 — 2,242 Black model (closed-formula solution) Interest rate yield curves, quoted exchange rates and implied volatility surface American barrier and touch options 7 — 7 4 — 4 Mixed volatility model with partial differential equation method Interest rate yield curves, quoted exchange rates and implied volatility surface Swaps 126,796 106 126,902 220,071 54 220,125 Forward estimation (non- closed formula solution) Interest rate yield curves and quoted exchange rates Exchange rate futures 3,491 — 3,491 5,120 — 5,120 Forward estimation (non- closed formula solution) Interest rate yield curve and quoted exchange rates Short positions: Debt instruments 27 — 27 — — — Forward estimation (non- closed formula solution) Interest rate yield curve Marketable debt securities 259 — 259 520 — 520 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: 8,162 — 8,162 4,461 — 4,461 Swaps 7,924 — 7,924 3,576 — 3,576 Forward estimation (non- closed formula solution) Interest rate yield curve and quoted exchange rates Exchange rate forwards 238 — 238 885 — 885 Forward estimation (non- closed formula solution) Interest rate yield curve and quoted exchange rates 296,903 106 297,009 409,757 54 409,811 |
Schedule of changes in financial assets classified as Level 3 | Assets Trading Equity Loans and advances derivatives instruments to customers Total Balance at January 1, 2020 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 Transfers out — — — — New issuances — — — — Settlements (57) — (2,875) (2,932) Balance at December 31, 2020 622 — — 622 Total gains/losses recognized in the consolidated income statement: Gains/(losses) on financial assets and liabilities (net) (305) — — (305) Purchases — — — — Transfers out — — — — New issuances — 54 4,056 4,110 Settlements (178) — — (178) Balance at December 31, 2021 139 54 4,056 4,249 Total gains/losses recognized in the consolidated income statement: Gains/(losses) on financial assets and liabilities (net) (1) — — (1) Purchases — — 2,544 2,544 Transfers out — — (1,598) (1,598) New issuances — — — — Settlements (68) — (4,056) (4,124) Balance at December 31, 2022 70 54 946 1,070 |
Schedule of changes in financial liabilities classified as Level 3 | Liabilities Trading derivatives Balance at January 1, 2020 (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) Total gains/losses recognized in the consolidated income statement: Gains/(losses) on financial assets and liabilities (net) 277 Purchases — Transfers out 24 New issuances — Settlements 83 Balance at December 31, 2021 (106) Total gains/losses recognized in the consolidated income statement: Gains/(losses) on financial assets and liabilities (net) 4 Purchases — Transfers out — New issuances — Settlements 48 Balance at December 31, 2022 (54) |
Schedule of significant unobservable inputs used in measuring financial instruments categorized as Level 3 | The table below shows the effect as of December 31, 2022 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 Loan and advances to customers 889 Estimation of credit default probabilities from credit spreads Market credit spread quotes (CDS) Credit spread quote (250 basis points – 1,003 basis points) A significant rating downgrade would result in a lower fair value Cross currency swaps 19 Forward estimation (non-closed formula) Long-term peso exchange rate (above 20 years) Bid-offer spread IRS TIIE ( CCS USD/Peso ( A significant decrease in long-term peso exchange rate would result in a lower fair value Interest rate swaps (4) Forward estimation (non-closed formula) Long-term peso exchange rate (above 20 years) 91-day TIIE interest rate curve = 28-day TIIE interest rate curve + (-5 basis points, 31 basis points) Bid-offer spread IRS TIIE ( CCS USD/Peso ( A significant decrease in 91-day TIIE interest rate curve would result in a higher 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, 2022 Most Least Favorable Favorable Input Input ASSETS: Cross currency swaps 1 (1) Loan and advances to customers — (10) LIABILITIES: Interest rate swaps 1 (1) |
Schedule of sensitivity analysis | Average High Low 12/31/2022 All financial instruments 41 103 25 41 By category: Instruments sensitive to interest rate 38 104 26 39 Instruments sensitive to equity market prices 1 3 0 1 Instruments sensitive to foreign currency exchange rates 15 36 2 19 Instruments sensitive to volatility movements 10 68 3 6 |
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, 2022: 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 238,997 — 238,997 (204,724) (4,541) (26,861) 2,871 Reverse repurchase agreements 121,859 — 121,859 (2,461) (119,398) — — Equity instruments (*) (see Note 9.a) — — — — (1) — (1) Total 360,856 — 360,856 (207,185) (123,940) (26,861) 2,870 As of December 31, 2021: 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 190,638 — 190,638 (152,313) (4,491) (26,894) 6,940 Reverse repurchase agreements 68,486 — 68,486 (4,799) (63,687) — — Equity instruments (*) (see Note 9.a) 9 — 9 — (74) — (65) Total 259,133 — 259,133 (157,112) (68,252) (26,894) 6,875 (*) As of December 31, 2021 and 2022, the financial instruments received as collateral in lending transactions amount to 74 million pesos and 1 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, 2022: 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 235,649 — 235,649 (204,724) (7,077) (15,676) 8,172 Repurchase agreements 299,320 — 299,320 (2,461) (300,467) — (3,608) Short positions 28,762 — 28,762 — (28,932) — (170) Total 563,731 - 563,731 (207,185) (336,476) (15,676) 4,394 As of December 31, 2021: 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 184,840 — 184,840 (152,313) (6,375) (13,222) 12,930 Repurchase agreements 264,260 — 264,260 (4,799) (265,862) — (6,401) Short positions 19,554 — 19,554 — (19,702) — (148) Total 468,654 — 468,654 (157,112) (291,939) (13,222) 6,381 |
Schedule of factors used for the ECL estimate | December 31, 2022 Factor Scenario December 2022 December 2023 December 2024 December 2025 Baseline 3.50% 0.18% 1.29% 1.67% GDP Upside 3.50% 2.10% 3.92% 2.94% Downside 3.50% (5.16)% (6.78)% 1.15% Baseline 8.37% 5.33% 4.19% 3.87% CPI Upside 8.37% 3.74% 2.98% 3.00% Downside 8.37% 9.34% 9.77% 6.52% Baseline 3.16% 3.37% 3.49% 3.56% Unemployment rates Upside 3.16% 3.22% 3.18% 3.16% Downside 3.16% 4.89% 5.98% 5.69% Baseline 20.29 20.86 21.30 21.71 Peso/USD Upside 20.29 19.39 18.94 19.13 Downside 20.29 27.91 25.27 24.67 Baseline 10.75% 9.91% 9.53% 9.40% Loans - Mortgage Upside 10.75% 11.89% 11.66% 10.88% Downside 10.75% (3.66)% 0.18% 2.85% Baseline 13.51% 9.67% 8.35% 7.60% Loans - Consumer Upside 13.51% 12.02% 10.90% 10.01% Downside 13.51% (21.23)% 1.06% 4.46% Baseline 5.57% 6.52% 6.12% 5.77% Investment funds Upside 5.57% 13.24% 10.71% 7.44% Downside 5.57% (6.09)% (4.24)% 2.58% Baseline 7.94% 7.55% 7.55% 7.55% Real Estate housing prices Upside 7.94% 10.19% 9.75% 8.64% Downside 7.94% 1.76% 1.31% 3.92% Baseline 45,195.97 47,546.16 50,018.56 52,619.52 Stock markets Upside 45,195.97 58,245.08 61,818.33 65,610.78 Downside 45,195.97 31,696.64 39,901.69 41,811.04 |
Schedule of weightings assigned to each macroeconomic scenario | December 31, 2022 Scenario Weighting Base 50.0% Upside 15.0% Downside 35.0% December 31, 2021 Scenario Weighting Base 55.0% Upside 15.0% Downside 30.0% |
Sensitivity analysis, changes to the ECL | Most Favorable Least Favorable Scenario Scenario Retail loan portfolio (19.7)% 17.7% Non-retail loan portfolio (16.4)% 14.0% |
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) <= 0.001746 6 0.001746 - 0.003955 8 0.003955 - 0.006149 10 0.006149 - 0.023039 12 0.023039 - 0.041789 14 >0.041789 16 |
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) <=0.015438 4 0.015438 - 0.045128 9 0.045128 - 0.107460 11 0.107460 - 0.136594 17 >0.136594 20 |
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) <=0.022138 7 0.022138 - 0.037734 9 0.037734 - 0.062950 11 0.062950 - 0.099364 13 0.099364 - 0.131539 23 0.131539 - 0.175113 27 0.175113 - 0.198299 28 0.198299 - 0.281104 29 >0.281104 30 |
Securitized mortgage assets | |
Financial assets | |
Schedule of Increase In Lifetime PD | “Lifetime PD” band at Increase in “Lifetime PD” at reporting date which initial recognition (%) is considered significant (basis points) <=0.058243 14 0.058243 - 0.082909 15 0.082909 - 0.146843 17 0.146843 - 0.164525 18 0.164525 - 0.189841 20 0.189841 - 0.260988 21 0.260988 - 0.350462 25 >0.350462 28 |
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) <=0.013470 9 0.013470 - 0.022584 12 0.022584 - 0.030918 14 0.030918 - 0.042373 16 0.042373 - 0.051001 22 0.051001 - 0.063232 28 0.063232 - 0.083787 34 0.083787 - 0.106176 40 >0.106176 46 |
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) <=0.065107 12 0.065107 - 0.084679 15 0.084679 - 0.114538 17 0.114538 - 0.120289 18 0.120289 - 0.144679 19 0.144679 - 0.172172 22 0.172172 - 0.268165 26 >0.268165 30 |
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) <=0.135945 14 0.135945 - 0.172186 15 0.172186 - 0.194727 17 0.194727 - 0.245958 19 0.245958 - 0.26134 23 0.26134 - 0.290297 25 0.290297 - 0.334647 27 >0.334647 29 |
Distribution of the Bank's pr_2
Distribution of the Bank's profit and Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Distribution of the Bank's profit and Earnings per share | |
Schedule of distribution of the Bank's profit | 2020 2021 2022 Profit of the year 18,974 20,801 24,108 Dividends declared — 4,921 17,878 Dividend per share (pesos) — 0.73 2.64 Dates of payment 06/18/2021 and 06/28/2022 and 11/05/2021 07/28/2022 |
Earnings per share basic and diluted | Accordingly, basic earnings per share were determined as follows: 2020 2021 2022 Profit attributable to the Parent 18,974 20,801 24,108 Profit attributable to the Parent (net of non-controlling interest) 18,974 20,801 24,108 Weighted average number of shares outstanding 6,776,640,349 6,775,682,106 6,781,322,904 Basic earnings per share (pesos) 2.80 3.07 3.56 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: 2020 2021 2022 Profit attributable to the Parent 18,974 20,801 24,108 Profit attributable to the Parent (net of non-controlling interest) 18,974 20,801 24,108 Weighted average number of shares outstanding 6,776,640,349 6,775,682,106 6,781,322,904 Dilutive effect of rights on shares 10,354,008 11,312,251 5,671,453 Adjusted number of shares 6,786,994,357 6,786,994,357 6,786,994,357 Diluted earnings per share (pesos) 2.80 3.06 3.55 |
Cash and balances with the Ce_2
Cash and balances with the Central Bank (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash and balances with the Central Bank. | |
Schedule of breakdown by type of balances of cash and balances with the Central Bank | 12/31/2021 12/31/2022 Cash 26,361 35,143 Central Bank compulsory deposits 23,978 23,978 Deposits in the Central Bank 12,705 13,623 Accrued interest 29 71 63,073 72,815 |
Loans and advances to credit _2
Loans and advances to credit institutions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Loans and advances - Credit institutions | |
Financial assets | |
Schedule of financial assets | 12/31/2021 12/31/2022 Classification: Financial assets at fair value through profit or loss 58,486 102,652 Financial assets at amortized cost 36,492 40,400 94,978 143,052 Type: Reciprocal accounts 17,820 17,583 Guarantee deposits - Collateral delivered for OTC financial derivatives transactions (Note 32) 13,234 14,585 Reverse repurchase agreements 58,486 102,652 Other accounts 5,438 8,232 94,978 143,052 Currency: Peso 83,382 103,094 USD 11,579 39,759 Other currencies 17 199 94,978 143,052 |
Debt Instruments (Tables)
Debt Instruments (Tables) - Debt instruments | 12 Months Ended |
Dec. 31, 2022 | |
Financial assets | |
Schedule of financial assets | 12/31/2021 12/31/2022 Classification: Financial assets at fair value through profit or loss 110,975 130,249 Financial assets at fair value through other comprehensive income 390,974 313,906 Financial assets at amortized cost 11,619 22,241 513,568 466,396 Type: Mexican government debt securities 336,872 355,658 Of which: Collateral delivered for OTC financial derivatives transactions (Note 32) 1,509 1,417 Foreign government debt securities 165,955 102,005 Of which: Collateral delivered for OTC financial derivatives transactions (Note 32) 4,866 — Brazilian Government Notes 25,744 32,715 US Government Treasury Bills (T-BILLS) 113,155 69,290 US Government Treasury Notes (T-NOTES) 27,056 — Debt securities issued by financial institutions 5,601 8,492 Other debt securities 5,140 241 513,568 466,396 Currency: Peso 310,871 343,790 USD 152,971 79,300 Brazilian Real (BRL) 25,744 32,715 Other currencies 23,982 10,591 513,568 466,396 |
Schedule of classification by rating of financial assets | The breakdown by issuer rating of Debt instruments as of December 31, 2021 is as follows: Private Debt Sovereign Debt Total % AAA — 140,211 140,211 27.30 % A 10,495 296,300 306,795 59.74 % BBB 245 36,741 36,986 7.20 % BB — 3,832 3,832 0.75 % Below B — 25,744 25,744 5.01 % 10,740 502,828 513,568 100 % The breakdown by issuer rating of Debt instruments as of December 31, 2022 is as follows: Private Debt Sovereign Debt Total % AAA — 69,290 69,290 14.86 % A 8,492 332,845 341,337 73.19 % BBB 241 20,601 20,842 4.47 % BB — 2,211 2,211 0.47 % Below B — 32,716 32,716 7.01 % 8,733 457,663 466,396 100 % |
Financial assets at fair value through profit or loss category | |
Financial assets | |
Schedule of financial assets | 12/31/2021 12/31/2022 Federal Treasury Securities (CETES) 10,311 9,210 United Mexican States Bonds (UMS) 168 62 Federal Mexican Government Development Bonds (BONDES) 26,132 51,817 M and M10 Mexican Government Bonds (M Bonds) 16,652 15,294 Mexican Bank Saving Protection Bonds (BPATS) 14,161 3,463 Federal Mexican Government Development Bonds in UDIS (1) 8,232 7,587 T-BILLS 13,328 34,324 T-NOTES 11,495 — Other debt securities 10,496 8,492 110,975 130,249 (1) Unidades de Inversión |
Financial assets at fair value through other comprehensive income category | |
Financial assets | |
Schedule of financial assets | 12/31/2021 12/31/2022 UMS 36,573 20,539 M, M3 and M5 Mexican Government Bonds (M Bonds) 197,658 211,518 BPATS 12,250 18,043 UDIBONDS 3,116 3,082 T-BILLS 99,827 34,966 T-NOTES 15,561 — Brazilian Government Notes 25,744 25,517 Other debt securities 245 241 390,974 313,906 |
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 237,347 — 237,347 — 237,347 Foreign government debt instruments 141,132 — 141,132 — 141,132 Debt instruments issued by the Central Bank 12,250 — 12,250 — 12,250 Other fixed-income interest debt instruments 245 — 245 — 245 390,974 — 390,974 — 390,974 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, 2022: 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 235,139 — 235,139 — 235,139 Foreign government debt instruments 60,483 — 60,483 — 60,483 Debt instruments issued by the Central Bank 18,043 — 18,043 — 18,043 Other fixed-income interest debt instruments 241 — 241 — 241 313,906 — 313,906 — 313,906 |
Schedule of changes in financial instruments | 2020 2021 2022 Beginning balance 233,463 355,321 390,974 Net additions/(disposals) 119,141 43,105 (70,267) Valuation adjustments 3,560 (6,724) (6,705) Amounts reclassified to the consolidated income statement (843) (728) (96) Balance at year-end 355,321 390,974 313,906 |
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 as of December 31, 2021: Allowance for impairment losses Stage 1 Stage 2 Stage 3 Total Written-off financial assets Financial assets at fair value through other comprehensive income 39 — — 39 — Of which: Mexican government debt instruments 38 — — 38 — Other fixed-income interest debt instruments 1 — — 1 — 39 — — 39 — The following is a breakdown of the allowance for impairment losses of Debt instruments classified at fair value through other comprehensive income as of December 31, 2022: Allowance for impairment losses Stage 1 Stage 2 Stage 3 Total Written-off financial assets Financial assets at fair value through other comprehensive income 22 — — 22 — Of which: Mexican government debt instruments 22 — — 22 — Other fixed-income interest debt instruments 1 — — 1 — 22 — — 22 — |
Financial assets at amortized cost category | |
Financial assets | |
Schedule of financial assets | 12/31/2021 12/31/2022 Special CETES 3,831 2,211 Bonos de Regulación Monetaria Reportables - (BREMS R) 7,788 7,799 MX and MX Mexican Government Bonds (M Bonds) — 1,666 CETES — 2,375 UDIBONDS — 992 Brazilian Government Bonds — 7,198 11,619 22,241 Type: Unquoted 3,831 2,211 Quoted 7,788 20,030 |
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, 2021: Gross carrying amount Stage 1 Stage 2 Subtotal Stage 3 Total Financial assets at amortized cost Of which: Mexican government debt instruments 11,619 — 11,619 — 11,619 The following is a breakdown of the gross carrying amount of Debt instruments – Financial assets at amortized cost as of December 31, 2022: Gross carrying amount Stage 1 Stage 2 Subtotal Stage 3 Total Financial assets at amortized cost Of which: Mexican government debt instruments 7,244 — 7,244 — 7,244 Foreign government debt instruments 7,198 — 7,198 — 7,198 Debt instruments issued by the Mexican Central Bank 7,799 — 7,799 — 7,799 22,241 — 22,241 — 22,241 |
Equity instruments (Tables)
Equity instruments (Tables) - Equity investments | 12 Months Ended |
Dec. 31, 2022 | |
Financial assets | |
Schedule of financial assets | 12/31/2021 12/31/2022 Classification: Financial assets at fair value through profit or loss 2,764 4,063 Financial assets at fair value through other comprehensive income 799 697 3,563 4,760 Type: Shares of Mexican companies 3,563 4,760 3,563 4,760 |
Financial assets at fair value through other comprehensive income category | |
Financial assets | |
Schedule of changes in financial instruments | 2020 2021 2022 Beginning balance as of January 1 642 768 799 Write-off of equity instruments — — 63 Net additions/(disposals) — 148 (147) Valuation adjustments 126 (117) (18) Balance at year-end 768 799 697 |
Trading derivatives (assets a_2
Trading derivatives (assets and liabilities) and Short positions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trading derivatives | |
Financial instruments | |
Schedule of financial instruments | 12/31/2021 12/31/2022 Assets Liabilities Assets Liabilities Interest rate risk 95,607 94,515 159,830 166,198 Currency risk 83,653 80,189 68,812 62,773 Market price risk 130 1,974 174 2,217 179,390 176,678 228,816 231,188 |
Short positions | |
Financial instruments | |
Schedule of financial instruments | 12/31/2021 12/31/2022 Securities loans: Debt instruments 19,109 28,345 Equity instruments 14 318 19,123 28,663 Short sales: Debt instruments 431 99 19,554 28,762 |
Loans and advances to custome_2
Loans and advances to customers (Tables) - Loans and advances - Customers | 12 Months Ended |
Dec. 31, 2022 | |
Financial assets | |
Schedule of financial assets | 12/31/2021 12/31/2022 Financial assets at fair value through profit or loss 10,000 19,207 Financial assets at fair value through other comprehensive income 4,056 946 Financial assets at amortized cost 736,997 797,716 751,053 817,869 Of which: Before allowance for impairment losses 772,088 839,521 Allowance for impairment losses (21,035) (21,652) 751,053 817,869 |
Schedule of detail by classification of loans and advances to customers | 12/31/2021 12/31/2022 By loan type: Commercial, financial and industrial loans 344,684 362,069 Public sector loans 85,189 84,583 Mortgage loans 189,854 205,242 Reverse repurchase agreements 10,000 19,207 Installment loans to individuals - Revolving consumer credit card loans 52,089 63,782 Non-revolving consumer loans 67,619 83,435 Impaired loans 22,653 21,203 772,088 839,521 By borrower sector: Public sector 85,256 84,583 Individuals 326,117 374,707 Communications and transportation 35,756 34,757 Construction 37,232 30,864 Manufacturing 52,176 53,302 Services 123,078 137,525 Tourism 18,278 20,840 Other sectors 94,195 102,943 772,088 839,521 By geographical area: Mexico 772,088 839,521 772,088 839,521 By interest rate: Fixed rate 359,178 332,396 Floating rate 412,910 507,125 772,088 839,521 |
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 amortized cost as of December 31, 2021: Fair value/Gross carrying amount Stage 1 Stage 2 Subtotal Stage 3 (*) Total Financial assets at fair value through other comprehensive income 4,063 — 4,063 — 4,063 Of which: Commercial, financial and industrial loans 4,063 — 4,063 — 4,063 Financial assets at amortized cost 698,089 37,283 735,372 22,653 758,025 Of which: Commercial, financial and industrial loans 322,835 17,786 340,621 9,870 350,491 Public sector loans 83,788 1,401 85,189 67 85,256 Mortgage loans 178,822 11,032 189,854 9,725 199,579 Installment loans to individuals - 112,644 7,064 119,708 2,991 122,699 Revolving consumer credit card loans 48,556 3,533 52,089 1,328 53,417 Non-revolving consumer loans 64,088 3,531 67,619 1,663 69,282 (*) As of December 31, 2021, there were no POCI financial assets. The following is a breakdown of the gross carrying amount Loans and advances to customers – Financial assets at amortized cost and Loans and advances to customers – Financial assets at fair value through other comprehensive income as of December 31, 2022: Fair value/Gross carrying amount Stage 1 Stage 2 Subtotal Stage 3 (*) Total Financial assets at fair value through other comprehensive income 946 — 946 — 946 Of which: Commercial, financial and industrial loans 946 — 946 — 946 Financial assets at amortized cost 752,073 46,092 798,165 21,203 819,368 Of which: Commercial, financial and industrial loans 339,283 21,840 361,123 5,587 366,710 Public sector loans 84,583 — 84,583 — 84,583 Mortgage loans 193,339 11,903 205,242 11,867 217,109 Installment loans to individuals - 134,868 12,349 147,217 3,749 150,966 Revolving consumer credit card loans 58,196 5,586 63,782 1,175 64,957 Non-revolving consumer loans 76,672 6,763 83,435 2,574 86,009 (*) As of December 31, 2022, there were no POCI financial assets. |
Schedule of financial assets at amortized cost between stages | 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, 2021: Gross carrying amount Stage 1 Stage 2 Stage 3 Total As of January 1, 2021 620,543 70,531 21,909 712,983 Transfers: Transfer from Stage 1 to Stage 2 (13,356) 13,356 — — Transfer from Stage 1 to Stage 3 (6,050) — 6,050 — Transfer from Stage 2 to Stage 3 — (7,787) 7,787 — Transfer from Stage 2 to Stage 1 20,699 (20,699) — — Transfer from Stage 3 to Stage 2 — 2,013 (2,013) — Transfer from Stage 3 to Stage 1 1,102 — (1,102) — Remaining in same Stage (44,490) (4,783) 19,608 (29,665) Financial assets derecognized during the period other than write-offs (274,147) (17,278) (3,311) (294,736) Originated financial assets 412,352 — — 412,352 Write-offs — — (26,477) (26,477) Other movements (18,564) 1,930 202 (16,432) As of December 31, 2021 698,089 37,283 22,653 758,025 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, 2022: Gross carrying amount Stage 1 Stage 2 Stage 3 Total As of January 1, 2022 698,089 37,283 22,653 758,025 Transfers: Transfer from Stage 1 to Stage 2 (23,492) 23,492 — — Transfer from Stage 1 to Stage 3 (6,921) 6,921 — Transfer from Stage 2 to Stage 3 — (6,508) 6,508 — Transfer from Stage 2 to Stage 1 6,169 (6,169) — — Transfer from Stage 3 to Stage 2 — 5,390 (5,390) — Transfer from Stage 3 to Stage 1 907 — (907) — Remaining in same Stage (*) (48,693) (2,221) 13,515 (37,399) Financial assets derecognized during the period other than write-offs (202,136) (5,204) (2,985) (210,325) Originated financial assets 327,309 — — 327,309 Write-offs — — (19,169) (19,169) Other movements 841 29 57 927 As of December 31, 2022 752,073 46,092 21,203 819,368 (*) Includes mainly payments of principal and accrued interest. |
Schedule of changes in the allowance for impairment losses | 2020 2021 2022 Beginning balance as of January 1 (21,970) (25,551) (21,035) Impairment losses on financial assets at amortized cost (*) (25,184) (21,949) (19,782) Impairment losses on financial assets at fair value through other comprehensive income — (7) — Write-offs 21,590 26,477 19,169 Others 13 (5) (4) Balance at year-end (25,551) (21,035) (21,652) Of which: By geographical location of risk: Mexico (25,551) (21,035) (21,652) (*) The amount of Impairment losses on financial assets at amortized cost presented in the consolidated income statement is net of recoveries of loans previously written-off and recovery expenses in the amount of 3,453 million pesos in 2020, 2,720 million pesos in 2021 and 3,699 million pesos in 2022. |
Schedule of breakdown of the allowance for impairment losses included the post-model adjustments or overlay | 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) 6% Of which: Commercial, financial and industrial loans (7,757) (558) (572) (8,887) 15% Public sector loans (14) (1) — (15) 7% Mortgage loans (4,108) 30 — (4,078) (1)% Installment loans to individuals - (12,214) (84) (273) (12,571) 3% Revolving consumer credit card loans (6,010) (67) (273) (6,350) 6% Non-revolving consumer loans (6,204) (17) — (6,221) 0% |
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, 2021: Allowance for impairment losses Stage 1 Stage 2 Stage 3 Total Write-offs Financial assets at fair value through other comprehensive income Of which: Commercial, financial and industrial loans (7) — — (7) — Financial assets at amortized cost (5,764) (5,149) (10,115) (21,028) (26,477) Of which: Commercial, financial and industrial loans (1,715) (1,509) (4,899) (8,123) (9,259) Public sector loans (66) — (58) (124) — Mortgage loans (640) (991) (2,873) (4,504) (1,572) Installment loans to individuals - (3,343) (2,649) (2,285) (8,277) (15,646) Revolving consumer credit card loans (1,498) (1,338) (1,016) (3,852) (8,396) Non-revolving consumer loans (1,845) (1,311) (1,269) (4,425) (7,250) The following is a breakdown of the allowance for impairment losses and the write-offs as of December 31, 2022: Allowance for impairment losses Stage 1 Stage 2 Stage 3 Total Write-offs Financial assets at amortized cost (7,013) (6,541) (8,098) (21,652) (19,169) Of which: Commercial, financial and industrial loans (1,377) (1,385) (2,769) (5,531) (5,130) Public sector loans (38) — — (38) — Mortgage loans (676) (809) (2,749) (4,234) (2,894) Installment loans to individuals - (4,922) (4,347) (2,580) (11,849) (11,145) Revolving consumer credit card loans (2,020) (2,060) (780) (4,860) (5,670) Non-revolving consumer loans (2,902) (2,287) (1,800) (6,989) (5,475) |
Schedule of transfers of allowance for impairment losses of financial assets | 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, 2021: Allowance for impairment losses Stage 1 Stage 2 Stage 3 Total Beginning balance as of January 1 6,215 8,902 10,434 25,551 As of January 1, 2021 Transfers: Transfer from Stage 1 to Stage 2 (346) 2,211 — 1,865 Transfer from Stage 1 to Stage 3 (183) — 2,977 2,794 Transfer from Stage 2 to Stage 3 — (712) 2,636 1,924 Transfer from Stage 2 to Stage 1 387 (1,976) — (1,589) Transfer from Stage 3 to Stage 2 — 332 (443) (111) Transfer from Stage 3 to Stage 1 34 — (113) (79) Financial assets derecognized during the period other than write-offs (906) 1,087 2,930 3,111 Contracts remaining at the same stage (1,986) (4,767) 17,921 11,168 Write-offs — — (26,477) (26,477) Originated financial assets 2,741 — — 2,741 Foreign exchange and other movements (185) 72 250 137 As of December 31, 2021 5,771 5,149 10,115 21,035 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, 2022: Allowance for impairment losses Stage 1 Stage 2 Stage 3 Total Beginning balance as of January 1 5,771 5,149 10,115 21,035 As of January 1, 2022 Transfers: Transfer from Stage 1 to Stage 2 (511) 3,409 — 2,898 Transfer from Stage 1 to Stage 3 (257) — 2,800 2,543 Transfer from Stage 2 to Stage 3 — (980) 1,620 640 Transfer from Stage 2 to Stage 1 90 (527) — (437) Transfer from Stage 3 to Stage 2 — 277 (1,570) (1,293) Transfer from Stage 3 to Stage 1 20 — (87) (67) Financial assets derecognized during the period other than write-offs (1,203) (534) 9,807 8,070 Contracts remaining at the same stage (121) (282) 4,582 4,179 Write-offs — — (19,169) (19,169) Originated financial assets 3,185 — — 3,185 Foreign exchange and other movements 39 29 — 68 As of December 31, 2022 7,013 6,541 8,098 21,652 |
Schedule of changes in financial assets considered to be impaired | 2020 2021 2022 Beginning balance 17,952 21,909 22,653 Additions 37,216 32,526 27,001 Transfers to performing loans (11,669) (5,305) (9,282) Written-off loans (21,590) (26,477) (19,169) Balance at year end 21,909 22,653 21,203 |
Schedule of financial assets between no past due and past due | The breakdown between no past due and past due as of December 31, 2021 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 6,689 1,434 676 808 330 9,937 Mortgage loans 2,194 1,764 965 751 4,051 9,725 Installment loans to individuals Of which: Revolving consumer credit card loans 451 877 — — — 1,328 Non-revolving consumer loans 414 1,243 5 1 — 1,663 9,748 5,318 1,646 1,560 4,381 22,653 The breakdown between no past due and past due as of December 31, 2022 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 3,691 1,470 156 46 224 5,587 Mortgage loans 5,793 1,705 669 581 3,119 11,867 Installment loans to individuals Of which: Revolving consumer credit card loans 614 561 — — — 1,175 Non-revolving consumer loans 1,086 1,487 1 — — 2,574 11,184 5,223 826 627 3,343 21,203 |
Schedule of renegotiated loans | For the Year Ended 12/31/2020 For the Year Ended 12/31/2021 For the Year Ended 12/31/2022 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 2,158 — 912 3,070 5,918 — 4,299 10,217 7,978 — 2,549 10,527 Mortgage loans 356 — 329 685 217 — 356 573 159 — 157 316 Installment loans to individuals 1,627 — 272 1,899 380 — 1,183 1,563 977 — 510 1,487 4,141 — 1,513 5,654 6,515 — 5,838 12,353 9,114 — 3,216 12,330 Percentage 73 % — 27 % 100 % 53 % — 47 % 100 % 74 % — 26 % 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 | 12/31/2021 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 290,365 195,268 95,097 26,919 68,178 — — — Financial assets at fair value through other comprehensive income 390,974 390,974 — — — — — — Financial assets at amortized cost: 758,025 222,505 535,520 — — 90,584 200,815 15,039 Of which: Loans and advances to credit institutions — — — — — — — — Loans and advances to customers 758,025 222,505 535,520 — — 90,584 200,815 15,039 Commercial, financial and industrial loans 350,491 88,047 262,444 — — 53,290 21,136 15,039 Public sector loans 85,256 27,762 57,494 — — 34,763 — — Mortgage loans 199,579 2,290 197,289 — — 2,501 161,422 — Installment loans to individuals: Revolving consumer credit card loans 53,417 53,417 — — — — — — Non-revolving consumer loans 69,282 50,989 18,293 — — 30 18,257 — Debt instruments — — — — — — — — Guarantees and loan commitments 91,329 91,329 — — — — — — 1,530,693 900,076 630,617 26,919 68,178 90,584 200,815 15,039 (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. 12/31/2022 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 359,065 208,265 150,800 26,861 123,939 — — — Financial assets at fair value through other comprehensive income 313,906 313,906 — — — — — — Financial assets at amortized cost: — — — — — 15,391 319,879 3,290 Of which: Loans and advances to credit institutions — — — — — — — — Loans and advances to customers — — — — — 15,391 319,879 3,290 Commercial, financial and industrial loans 366,710 86,996 279,714 — — 11,617 86,858 3,155 Public sector loans 84,583 21,785 62,798 — — — - — Mortgage loans 217,109 2,586 214,523 — — — — — Installment loans to individuals: Revolving consumer credit card loans 64,957 64,957 — — — — — — Non-revolving consumer loans 86,009 60,359 25,650 — — 3,774 233,021 135 Debt instruments — — — — — — — — Guarantees and loan commitments — — — — — — — — 672,971 522,171 150,800 26,861 123,939 15,391 319,879 3,290 (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 | 12/31/2021 Rating Category A-1 A-2 B-1 B-2 B-3 C-1 C-2 D E Not Rated Total Commercial loans (SME) 42,503 4,625 1,280 1,216 2,216 1,140 626 1,784 494 — 55,884 Mortgage loans 142,698 7,628 6,759 14,994 2,071 5,031 5,815 5,297 3,548 — 193,841 Revolving consumer credit card loans 15,144 19,831 6,711 1,939 1,419 2,653 2,260 2,388 1,061 — 53,406 Non-revolving consumer loans 25,365 5,316 18,785 7,352 3,599 2,262 2,135 889 2,701 — 68,404 225,710 37,400 33,535 25,501 9,305 11,086 10,836 10,358 7,804 — 371,535 Financial instruments not recognized in the consolidated balance sheet: Available lines of credit cards and non-revolving consumer loans 45,805 9,709 1,938 832 592 656 505 257 134 — 60,428 Guarantees 66 — — — — — — — — — 66 Loan commitments — — — — — — — — — — — 45,871 9,709 1,938 832 592 656 505 257 134 — 60,494 271,581 47,109 35,473 26,333 9,897 11,742 11,341 10,615 7,938 — 432,029 12/31/2022 Rating Category A-1 A-2 B-1 B-2 B-3 C-1 C-2 D E Not Rated Total Commercial loans (SME) 31,683 10,255 1,668 835 2,694 1,096 697 1,809 506 — 51,243 Mortgage loans 173,202 10,483 5,998 3,667 1,233 3,806 6,172 4,795 1,452 — 210,808 Revolving consumer credit card loans 18,487 24,566 8,026 2,325 1,691 2,890 2,643 2,817 904 — 64,349 Non-revolving consumer loans 33,280 5,470 24,082 9,212 3,685 2,474 2,419 1,141 2,993 — 84,756 256,652 50,774 39,774 16,039 9,303 10,266 11,931 10,562 5,855 — 411,156 Financial instruments not recognized in the consolidated balance sheet: Available lines of credit cards and non-revolving consumer loans 54,908 11,316 2,196 1,072 682 738 658 342 177 — 72,089 Guarantees — — — — — — — — — — — Loan commitments 64 32 4 — — — 7 — — — 107 54,972 11,348 2,200 1,072 682 738 665 342 177 — 72,196 311,624 62,122 41,974 17,111 9,985 11,004 12,596 10,904 6,032 — 483,352 |
Internal credit grades | |
Financial assets | |
Schedule of credit risk exposure | 12/31/2021 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) — — — — — 1,623 11,593 31,990 39,440 72,625 79,781 25,216 8,934 5,643 2,361 386 1,041 118 101 14,391 295,243 Public sector loans — — — — — — 9,069 20,912 4,877 7,600 37,876 4,862 — — 67 — — — — — 85,263 — — — — — 1,623 20,662 52,902 44,317 80,225 117,657 30,078 8,934 5,643 2,428 386 1,041 118 101 14,391 380,506 Financial instruments not recognized in the consolidated balance sheet: Guarantees 518 — — 2,940 14,668 3,521 8,066 13,690 7,372 2,621 1,744 72 878 4 — — — — — 829 56,923 Loan commitments — — — 1 863 186 29 297 3,795 10,579 6,352 826 3 1,021 62 — 23 — — 494 24,531 518 — — 2,941 15,531 3,707 8,095 13,987 11,167 13,200 8,096 898 881 1,025 62 — 23 — — 1,323 81,454 518 — — 2,941 15,531 5,330 28,757 66,889 55,484 93,425 125,753 30,976 9,815 6,668 2,490 386 1,064 118 101 15,714 461,960 12/31/2022 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) — — — — 17 8,898 46,807 42,193 44,885 69,468 48,240 19,490 7,577 6,688 7,152 1,237 1,079 195 588 9,825 314,339 Public sector loans — — — — — — 13,995 18,495 9,296 3,673 34,351 1,761 3,013 — — — — — — — 84,584 — — — — 17 8,898 60,802 60,688 54,181 73,141 82,591 21,251 10,590 6,688 7,152 1,237 1,079 195 588 9,825 398,923 Financial instruments not recognized in the consolidated balance sheet: Guarantees 493 — — 2,738 16,668 12,789 10,067 16,796 6,529 3,046 1,194 4,020 — — — 500 3 — — 475 75,318 Loan commitments — — — 38 1,078 415 1,229 8,754 7,488 3,519 1,667 1,430 164 60 674 15 — 2 623 503 27,659 493 — — 2,776 17,746 13,204 11,296 25,550 14,017 6,565 2,861 5,450 164 60 674 515 3 2 623 978 102,977 493 — — 2,776 17,763 22,102 72,098 86,238 68,198 79,706 85,452 26,701 10,754 6,748 7,826 1,752 1,082 197 1,211 10,803 501,900 |
Hedging derivatives (Tables)
Hedging derivatives (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Hedging derivatives | |
Schedule of types of hedge of derivatives qualifying for hedge accounting | 12/31/2021 12/31/2022 Assets Liabilities Assets Liabilities Fair value hedges 1,468 7,018 4,923 3,205 Cash flow hedges 9,780 1,144 5,258 1,256 11,248 8,162 10,181 4,461 |
Schedule of reconciliation of valuation adjustments - Cash flow hedges | 2020 2021 2022 Balance at January 1 (276) (569) 414 Valuation adjustments (376) 1,394 (1,224) Amounts reclassified to consolidated income statement (43) 11 8 Of which: Income from cash flow hedging financial derivatives and discontinued cash flow hedge accounting (43) 11 8 Cash flow hedges ineffectiveness (Note 39) — — — Income taxes 126 (422) 365 Balance at December 31 (569) 414 (437) |
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 13 40 21 — 74 Cash flows to be paid (242) (205) (234) (17) (698) |
Fair value hedges | |
Hedging derivatives | |
Schedule of hedging derivative positions | As of December 31, 2021, the hedging financial derivative positions are as follows: Nominal (Million in Nominal Transaction Transaction (Million Pesos) Currency) Currency Hedged Item and Risk Hedged IRS 1,867 1,867 Peso Loans - Interest rate risk IRS 47,047 47,047 Peso M Bonds - Interest rate risk CCS 4 1 USD Loans - Interest rate and foreign exchange risk CCS 17,744 819 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 As of December 31, 2022, the hedging financial derivative positions are as follows: Nominal (Million in Nominal Transaction Transaction (Million Pesos) Currency) Currency Hedged Item and Risk Hedged IRS 1,600 1,600 Peso Loans - Interest rate risk IRS 6,500 6,500 Peso Unsecured notes - Interest rate risk IRS 2,731 2,731 Peso Promissory notes - Interest rate risk IRS 117,701 117,701 Peso M Bonds - Interest rate risk CCS 9,887 447 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, 2021, 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 7,311 7,311 Peso Unsecured notes - Interest rate risk CCS 523 41 USD Loans - Foreign exchange risk CCS 491 29 Euro Loans - Foreign exchange risk CCS 11,125 543 USD Senior Unsecured Notes - Foreign exchange risk CCS 519 25 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 28,787 8,295 BRL Brazilian Government Notes - Foreign exchange risk Forward Fx-USD 36,171 1,466 USD Brazilian Government Notes - Foreign exchange risk As of December 31, 2022, 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 CCS 174 14 USD Loans - Foreign exchange risk CCS 351 21 Euro Loans - Foreign exchange risk CCS 260 10 Pound sterling UMS - Foreign exchange risk CCS 911 50 USD UMS - Foreign exchange risk CCS 7,196 1,917 BRL Brazilian Government Notes - Foreign exchange risk Forward Fx-BRL 16,425 5,187 BRL Brazilian Government Notes - Foreign exchange risk Forward Fx-USD 33,353 1,342 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, 2022 | |
Non-current assets held for sale | |
Schedule of non current assets held for sale | 2021 2022 Foreclosed assets 773 1,429 Investment held for sale — 1,586 773 3,015 |
Schedule of changes in foreclosed assets | Foreclosed Assets Balances at January 1, 2021 551 Additions 559 Disposals (310) Impairment losses (27) Balances at December 31, 2021 773 Additions 812 Disposals (156) Impairment losses — Balances at December 31, 2022 1,429 |
Tangible assets (Tables)
Tangible assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Tangible assets | |
Schedule of changes in Tangible assets in the consolidated balance sheet | Tangible Assets Cost: Balances at January 1, 2021 23,087 Additions 2,450 Disposals (187) Balances at December 31, 2021 25,350 Additions 3,314 Disposals (491) Balances at December 31, 2022 28,173 Accumulated depreciation: Balances at January 1, 2021 (10,881) Additions (2,032) Disposals 183 Balances at December 31, 2021 (12,730) Additions (2,227) Disposals 491 Balances at December 31, 2022 (14,466) Balances at December 31, 2021 12,620 Balances at December 31, 2022 13,707 |
Detail by asset class of Tangible assets for own use in the consolidated balance sheet | Accumulated Cost Depreciation Carrying Amount Buildings 14,640 (7,522) 7,118 IT equipment and fixtures 6,922 (3,355) 3,567 Furniture and vehicles 3,226 (1,853) 1,373 Other fixtures 562 — 562 Balances at December 31, 2021 25,350 (12,730) 12,620 Buildings 15,638 (8,494) 7,144 IT equipment and fixtures 7,609 (4,020) 3,589 Furniture and vehicles 3,479 (1,952) 1,527 Other fixtures 1,447 — 1,447 Balances at December 31, 2022 28,173 (14,466) 13,707 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Schedule of right-of-use assets | Branch Furniture offices and vehicles Total Balances at January 1, 2021 5,435 208 5,643 Remeasurement of right-of-use assets 551 — 551 Additions in right-of-use assets 663 63 726 Disposals (1,542) (95) (1,637) Depreciation (108) — (108) Balances at December 31, 2021 4,999 176 5,175 Remeasurement of right-of-use assets 669 — 669 Additions in right-of-use assets 2,372 — 2,372 Depreciation (1,651) (125) (1,776) Disposals (176) — (176) Balances at December 31, 2022 6,213 51 6,264 |
Schedule of activity in finance lease liabilities | Amount Balances at January 1, 2021 6,131 Interest expense 646 New contracts 725 Remeasurement on leases liabilities 350 Disposals (103) Payments (2,033) Balances at December 31, 2021 5,716 Interest expense 530 New contracts 2,372 Remeasurement on leases liabilities 679 Disposals (57) Payments (2,275) Balances at December 31, 2022 6,965 |
Schedule of maturity analysis of lease payments | December 31, 2022 Maturity analysis - contractual undiscounted cash flows Less than one year 2,001 One to three years 3,086 Three to five years 2,038 More than five years 1,999 Total undiscounted lease liabilities at December 31, 2022 9,124 Lease liabilities at December 31, 2022 6,965 Current 1,700 Long-term 5,265 |
Schedule of additional lease information | December 31, 2022 Amounts recognized in the consolidated income statement: Interest expense on lease liabilities 530 Expense relating to short-term leases 10 Expense relating to leases of low-value assets that are not shown above as short-term leases 761 Expense relating to variable lease payments not included in lease liabilities — Cash flows from lease liabilities: Total leases cash flows (771) |
Intangible assets - Goodwill (T
Intangible assets - Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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) 12.39% Of which: Cost of Equity(3) 17.47% Cost of Debt(4) 10.70% Equity Structure(5) 25% Equity / 75% Debt (1) The period of projections of cash flows 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 (9.08% ), ● β = Beta ( 0.909 ), and ● Pr = Equity Risk Premium ( 9.23% ). (4) The Cost of Debt has been calculated based on the actual pre-tax 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, 2022 | |
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, 2021 19,237 Additions 3,371 Disposals (344) Balances at December 31, 2021 22,264 Additions 3,940 Disposals — Balances at December 31, 2022 26,204 Accumulated amortization and impairment: Balances at January 1, 2021 (12,364) Additions (2,566) Disposals 343 Balances at December 31, 2021 (14,587) Additions (2,670) Disposals — Balances at December 31, 2022 (17,257) Balances at December 31, 2021 7,677 Balances at December 31, 2022 8,947 |
Schedule of Other tangible assets | Estimated Accumulated Carrying Useful Life Cost Amortization Amount IT developments 3 years 22,176 (14,536) 7,640 Others 10 years 88 (51) 37 Balances at December 31, 2021 22,264 (14,587) 7,677 IT developments 3 years 26,117 (17,198) 8,919 Others 10 years 87 (59) 28 Balances at December 31, 2022 26,204 (17,257) 8,947 |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other assets. | |
Schedule of Other assets | 12/31/2021 12/31/2022 Credit and debit card operating balances 2,421 1,341 Insurance commission receivables 1,436 1,682 Prepaid expenses 812 681 Other 5,457 7,477 10,126 11,181 |
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 Credit and debit card operating balances 1,220 66 39 16 1,341 Insurance commission receivables 129 60 84 1,409 1,682 Prepaid expenses 681 — — — 681 Other 5,456 1,200 349 1,644 8,649 Expected credit loss rate 4% 0% 7% 28% Gross carrying amount 7,486 1,326 472 3,069 12,353 Lifetime expected credit losses (269) (5) (33) (865) (1,172) Balances at December 31, 2022 7,217 1,321 439 2,204 11,181 |
Deposits from the Central Ban_2
Deposits from the Central Bank and Deposits from credit institutions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deposits from the Central Bank and credit institutions | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2021 12/31/2022 Classification: Financial liabilities at fair value through profit or loss 40,848 53,873 Financial liabilities at amortized cost 169,955 164,110 210,803 217,983 Type: Reciprocal accounts 13,373 12,870 Time deposits 5,471 3,559 Overnight deposits 26,164 13,589 Repurchase agreements 132,621 152,629 Other accounts 33,072 35,258 Of which: Collateral received for OTC financial derivatives transactions (Note 32) 26,919 24,720 Others 6,153 10,538 Accrued interest 102 78 210,803 217,983 Currency: Peso 177,336 187,050 USD 33,424 30,902 Other currencies 43 31 210,803 217,983 |
Customer deposits (Tables)
Customer deposits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deposits - Customers | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2021 12/31/2022 Classification: Financial liabilities at fair value through profit or loss 114,078 119,769 Financial liabilities at amortized cost 777,886 808,529 891,964 928,298 Type: Repurchase agreements 131,639 146,691 Demand deposits: Current accounts 541,257 538,409 Other deposits 22,760 22,972 Of which: Collateral received for OTC financial derivatives transactions (Note 32) — 2,141 Others 22,760 20,831 Time deposits: Fixed-term deposits 195,431 218,316 Accrued interest 877 1,910 891,964 928,298 Currency: Peso 798,976 833,323 USD 92,987 94,975 Other currencies 1 — 891,964 928,298 |
Marketable debt securities (Tab
Marketable debt securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial liabilities | |
Schedule of the balance of issues under the issuance program | As of December 31, 2021, the balance of the issues performed by the Bank is as follows: Amount Maturity Date Rate Certificates of deposit (unsecured) 500 01/21/2022 5.71 % Certificates of deposit (unsecured) 2,000 02/14/2022 5.22 % Certificates of deposit (unsecured) 3 03/31/2022 5.00 % Certificates of deposit (unsecured) 21 04/20/2022 5.47 % Certificates of deposit (unsecured) 50 07/21/2022 5.19 % Certificates of deposit (unsecured) 3 03/09/2022 0.01 % Certificates of deposit (unsecured) 19 03/18/2022 0.01 % Certificates of deposit (unsecured) 25 03/01/2022 0.01 % 2,621 Accrued interest 7 2,628 Senior Unsecured Notes 20,508 11/09/2022 4.13 % Senior Unsecured Notes 35,888 04/17/2025 5.38 % 56,396 Accrued interest 405 56,801 Structured bank bonds (*) 7 03/17/2022 TIIE Structured bank bonds (*) 2 03/17/2022 TIIE Structured bank bonds (*) 56 03/17/2022 TIIE Structured bank bonds (*) 2 03/17/2022 TIIE Structured bank bonds (*) 39 11/16/2022 TIIE Structured bank bonds (*) 80 12/02/2022 TIIE Structured bank bonds (*) 57 01/21/2026 TIIE Structured bank bonds (*) 17 01/21/2026 TIIE Structured bank bonds 11 01/12/2022 9.69 % Structured bank bonds 28 01/10/2022 8.61 Structured bank bonds 10 01/10/2022 12.10 % Structured bank bonds 45 01/12/2022 9.08 % Structured bank bonds 45 01/25/2022 9.28 % Structured bank bonds 56 06/24/2022 Guaranteed rate subject to foreign exchange rate Structured bank bonds 201 08/30/2022 Guaranteed rate subject to foreign exchange rate Structured bank bonds 52 09/27/2022 Guaranteed rate subject to foreign exchange rate Structured bank bonds 127 11/01/2022 Guaranteed rate subject to foreign exchange rate Structured bank bonds 31 01/04/2022 6.70 % Structured bank bonds 62 01/06/2022 3.50 % Structured bank bonds 31 01/12/2022 6.77 % Structured bank bonds 10 01/18/2022 10.00 % Structured bank bonds 10 01/21/2022 4.08 % 979 Transaction costs and accrued interest (net) 2 981 Promissory notes 76 01/04/2021 5.40 % Promissory notes 6,000 01/15/2021 5.50 % Promissory notes 5,900 01/15/2021 5.50 % Promissory notes 1,000 01/15/2021 5.50 % Promissory notes 20 03/16/2021 5.50 % Promissory notes 500 01/13/2021 4.25 % 13,496 Accrued interest 47 13,543 Unsecured bonds 2,850 04/04/2022 TIIE + 10 basis points Unsecured bonds 4,461 05/06/2022 TIIE + 15 basis points Unsecured bonds 3,500 11/25/2025 TIIE + 5 basis points Unsecured bonds 7,150 03/30/2026 8.95 % Unsecured bonds 3,000 09/01/2026 7.19 % Unsecured bonds 6,500 11/21/2028 8.08 % 27,461 Accrued interest 268 27,729 (*) Marketable debt securities classified as financial liabilities at fair value through profit or loss. As of December 31, 2022, the balance of the issues performed by the Bank is as follows: Amount Maturity Date Rate Certificates of deposit (unsecured) 2,500 11/13/2023 10.82 % Certificates of deposit (unsecured) 2,500 10/13/2023 10.33 % Certificates of deposit (unsecured) 1,100 09/14/2023 10.79 % Certificates of deposit (unsecured) 3,000 08/17/2023 10.28 % Certificates of deposit (unsecured) 1,500 08/17/2023 10.69 % Certificates of deposit (unsecured) 50 07/20/2023 10.23 % Certificates of deposit (unsecured) 300 06/22/2023 10.79 % Certificates of deposit (unsecured) 1,100 06/14/2023 10.71 % Certificates of deposit (unsecured) 1,000 06/08/2023 10.74 % Certificates of deposit (unsecured) 1,000 06/07/2023 10.67 % Certificates of deposit (unsecured) 3,000 06/02/2023 10.32 % Certificates of deposit (unsecured) 2,000 05/16/2023 9.98 % Certificates of deposit (unsecured) 2,000 05/16/2023 10.30 % Certificates of deposit (unsecured) 3,000 05/05/2023 10.32 % Certificates of deposit (unsecured) 2,000 03/22/2023 10.71 % Certificates of deposit (unsecured) 1,000 03/01/2023 10.27 % Certificates of deposit (unsecured) 2,000 02/16/2023 10.71 % Certificates of deposit (unsecured) 2,000 02/02/2023 10.30 % Certificates of deposit (unsecured) 850 02/03/2023 10.30 % Certificates of deposit (unsecured) 1,000 01/18/2023 10.69 % Certificates of deposit (unsecured) 1,000 01/13/2023 10.73 % Certificates of deposit (unsecured) 2,000 01/05/2023 10.28 % Certificates of deposit (unsecured) 43 03/31/2023 2.00 % Certificates of deposit (unsecured) 3 03/08/2023 2.20 % Certificates of deposit (unsecured) 312 04/10/2023 0.10 % Certificates of deposit (unsecured) 11 02/16/2023 2.20 % 36,269 Accrued interest 157 36,426 Senior Unsecured Notes 34,141 04/17/2025 5.38 % Accrued interest 328 34,469 Amount Maturity Date Rate Structured bank bonds 86 01/18/24 Guaranteed rate subject to foreign exchange rate Structured bank bonds 190 10/03/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 10 09/21/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 15 09/14/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 46 09/12/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 151 08/01/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 15 07/26/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 24 07/17/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 201 07/03/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 16 05/23/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 52 05/02/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 35 04/24/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 12 04/10/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 126 04/03/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 93 03/27/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 9 06/19/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 52 03/13/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 86 03/01/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 16 02/27/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 67 02/08/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 10 01/13/23 16.00 % Structured bank bonds 78 02/07/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 39 01/30/23 Guaranteed rate subject to foreign exchange rate Structured bank bonds 10 01/06/23 14.00 % Structured bank bonds 10 03/09/23 8.00 % Structured bank bonds 88 02/07/23 11.20 % Structured bank bonds 137 02/10/23 10.50 % Structured bank bonds 38 01/18/23 5.50 % Structured bank bonds 40 01/17/23 12.40 % Structured bank bonds 10 01/04/23 8.00 % Structured bank bonds 68 02/01/23 10.20 % Structured bank bonds 29 01/05/23 8.90 % Structured bank bonds 88 01/13/23 12.10 % Structured bank bonds 12 01/06/23 14.50 % Structured bank bonds 5 01/11/23 9.60 % Structured bank bonds 10 01/06/23 19.40 % Structured bank bonds 20 01/06/23 10.00 % Structured bank bonds 88 01/06/23 10.85 % Structured bank bonds 10 01/12/23 14.00 % Structured bank bonds 10 01/17/23 10.95 % Structured bank bonds 27 01/13/23 16.60 % Structured bank bonds 10 01/06/23 11.45 % Structured bank bonds 10 01/13/23 13.70 % Structured bank bonds 20 01/05/23 9.00 % Structured bank bonds 10 01/17/23 8.00 % Structured bank bonds 26 01/13/23 13.00 % Structured bank bonds 10 01/12/23 11.70 % Structured bank bonds 10 01/05/23 11.45 % Structured bank bonds 20 01/06/23 18.45 % Structured bank bonds 19 01/06/23 16.90 % Structured bank bonds 10 01/17/23 12.40 % Structured bank bonds 20 01/05/23 33.80 % Structured bank bonds 5 01/03/23 13.00 % Structured bank bonds 10 01/13/23 12.25 % Structured bank bonds 10 01/03/23 5.20 % Structured bank bonds 17 01/21/26 TIIE Structured bank bonds 58 01/21/26 TIIE Structured bank bonds 23 02/21/25 Invesco QQQ Trust Series 1 (QQQ) Structured bank bonds 62 08/27/24 Guaranteed rate subject to S&P 500 Structured bank bonds 32 12/14/23 Guaranteed rate subject to S&P 500 Structured bank bonds 16 12/20/23 Guaranteed rate subject to S&P 500 Structured bank bonds 12 09/29/23 Guaranteed rate subject to S&P 500 Structured bank bonds 200 05/31/23 TIIE Structured bank bonds 114 03/07/23 TIIE Structured bank bonds 10 01/03/23 Guaranteed rate subject to S&P 500 2,863 Transaction costs and accrued interest (net) (12) 2,851 Promissory notes 4,266 05/31/2023 10.91 % Promissory notes 129 03/31/2023 8.37 % Promissory notes 1,860 02/22/2023 7.44 % Promissory notes 465 02/23/2023 7.44 % Promissory notes 281 01/20/2023 7.40 % Promissory notes 3,800 01/13/2023 10.50 % Promissory notes 4,000 01/13/2023 10.50 % Promissory notes 2,900 01/13/2023 10.50 % Promissory notes 4,000 01/13/2023 10.50 % Promissory notes 4,000 01/13/2023 10.50 % Promissory notes 82 01/02/2023 10.40 % 25,783 Accrued interest 205 25,988 Unsecured bonds 5,000 07/09/2026 TIIE + 29 basis points Unsecured bonds 4,600 03/30/2026 8.95% Unsecured bonds 6,500 11/21/2028 8.08% Unsecured bonds 3,000 09/01/2026 7.19% Unsecured bonds 2,550 03/30/2026 8.95% Unsecured bonds 2,790 03/26/2029 8.72% Unsecured bonds 7,100 03/29/2027 TIIE + 7 basis points Unsecured bonds 3,500 11/25/2025 TIIE + 5 basis points 35,040 Accrued interest 139 35,179 (*) Marketable debt securities classified as financial liabilities at fair value through profit or loss. |
Marketable debt securities | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2021 12/31/2022 Classification: Financial liabilities at fair value through profit or loss 259 520 Financial liabilities at amortized cost 101,423 134,393 101,682 134,913 Type: Certificates of deposit (unsecured) 2,628 36,426 Senior Unsecured Notes 56,801 34,469 Structured bank bonds 981 2,851 Promissory notes 13,543 25,988 Unsecured bonds 27,729 35,179 101,682 134,913 Currency: Peso 44,687 99,189 USD 56,995 35,724 101,682 134,913 |
Financial liabilities at fair value through profit or loss | Marketable debt securities | |
Financial liabilities | |
Schedule of changes in financial instruments | 2021 2022 Beginning balance 1,363 259 Issues 197 471 Of which: Structured bank bonds 197 471 Of which: Banco Santander México 197 471 Redemptions (1,315) (169) Of which: Structured bank bonds (1,315) (169) Of which: Banco Santander México (1,315) (169) Changes in fair value 14 (41) Balance at year-end 259 520 |
Financial liabilities at amortized cost | Marketable debt securities | |
Financial liabilities | |
Schedule of changes in financial instruments | 2021 2022 Beginning balance 130,754 101,423 Issues 1,197,521 1,601,167 Of which: Certificates of deposit (unsecured) 3,347 36,475 Structured bank bonds 20,880 26,711 Promissory notes 1,163,294 1,523,091 Unsecured bonds 10,000 14,890 Of which: Banco Santander México 1,197,521 1,601,168 Redemptions (1,228,486) (1,565,677) Of which: Certificates of deposit (unsecured) (35,156) (2,824) Structured bank bonds (20,956) (25,135) Senior Unsecured Notes — (19,603) Promissory notes (1,166,674) (1,510,804) Unsecured bonds (5,700) (7,311) Of which: Banco Santander México — (1,565,677) Santander Vivienda (1,228,486) — Accrued interest (42) 131 Effect of changes in foreign exchange rates 1,676 (2,651) Balance at year-end 101,423 134,393 |
Subordinated liabilities (Table
Subordinated liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial liabilities | |
Schedule of changes in financial instruments arising from financing activities | Non-cash changes January 1, 2021 Cash flows Accrued Transaction Foreign exchange December 31, 2021 Type interest costs movements Subordinated Additional Tier I Capital Notes — 13,930 — — 425 14,355 Subordinated Additional Tier I Capital Notes 9,948 — — 6 300 10,254 Tier II Subordinated Capital Notes 26,234 (1,586) 1,576 10 800 27,034 Balances at 36,182 12,344 1,576 16 1,525 51,643 Non-cash changes January 1, 2022 Cash flows Accrued Transaction Foreign exchange December 31, 2022 Type interest costs movements Subordinated Additional Tier I Capital Notes 14,355 — — — (699) 13,656 Subordinated Additional Tier I Capital Notes 10,254 (10,251) — — (3) — Tier II Subordinated Capital Notes 27,034 (1,548) 1,550 11 (1,319) 25,728 Balances at 51,643 (11,799) 1,550 11 (2,021) 39,384 |
Subordinated liabilities | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2022 Outstanding Issue Amount Annual Type Currency of Issue 12/31/2021 12/31/2022 in Foreign Currency Interest Rate (%) Subordinated Additional Tier I Capital Notes - 2021 USD 14,355 13,656 700,000,000 4.63 Subordinated Additional Tier I Capital Notes - 2016 USD 10,254 — — — Tier II Subordinated Capital Notes - 2018 USD 27,034 25,728 1,300,000,000 5.95 Balance at year-end 51,643 39,384 |
Schedule of subordinated liabilities | 2021 2022 Beginning balance (million USD) 1,817 2,518 Issues 700 — Redemptions — (500) Transaction costs and accrued interest 1 1 Balance at year-end (million USD) 2,518 2,019 Exchange rate per one USD at December 31 20.5075 19.5089 Balance at year-end (million pesos) 51,643 39,384 |
Other financial liabilities (Ta
Other financial liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other financial liabilities | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2021 12/31/2022 Trade payables 1,388 966 Collection accounts: Taxes payable 1,210 1,367 Financial transactions pending settlement 10,504 10,898 Other financial liabilities 4,136 6,242 17,238 19,473 |
Other financial liabilities - Financial transactions pending settlement | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2021 12/31/2022 Mexican government securities 6,217 10,280 CETES 2,426 491 UDIBONDS 1,861 102 Equity instruments — 25 10,504 10,898 |
Other financial liabilities - Other miscellaneous financial liabilities | |
Financial liabilities | |
Schedule of financial liabilities | 12/31/2021 12/31/2022 Retentions related to loans (*) 2,479 2,385 Other payable account 1,657 3,857 4,136 6,242 (*) These amounts correspond to temporary retention accounts for customers that have their payroll deposits with the Bank and to whom the Bank has granted a loan. |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Provisions | |
Schedule of details of provisions in the consolidated balance sheet | 12/31/2021 12/31/2022 Provisions for pensions and similar obligations 7,499 8,158 Provisions for tax and legal matters 2,141 3,009 Provisions for off-balance sheet risk 1,108 1,539 Other provisions 41 225 10,789 12,931 |
Schedule of changes in provisions | b) Changes The changes in Provisions were as follows: 2020 2021 2022 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 6,406 1,558 1,075 65 9,104 7,433 1,898 1,232 41 10,604 7,499 2,141 1,108 41 10,789 Additions charged (credited) to net income: Interest expense and similar charges 442 — — — 442 475 — — — 475 569 — — — 569 Personnel expenses – Defined Benefit Plan 273 — — — 273 260 — — — 260 222 — — — 222 Personnel expenses – Defined Contribution Plan (Note 42) 488 — — — 488 483 — — — 483 555 — — — 555 Other 256 — — — 256 252 — — — 252 251 — — — 251 Actuarial (gains)/losses recognized in the year in other comprehensive income 995 — — — 995 79 — — — 79 483 — — — 483 Period provisions — 586 157 (20) 723 — 295 (124) — 171 — 1,069 431 184 1,684 Contributions from the employer — — — — — — — — — — — — — — — Payments to pensioners and pre-retirees with a charge to internal provisions (881) — — — (881) (921) — — — (921) (901) — — — (901) Other payments — (246) — — (246) — (52) — — (52) — (201) — — (201) Payments to Defined Contribution Plan (475) — — — (475) (468) — — — (468) (206) — — — (206) Recognition of pension obligations from acquisition of Santander Tecnología México — — — — — — — — — — — — — — — Transfers and other changes (71) — — (4) (75) (94) — — — (94) (314) — — — (314) Balances at the end of year 7,433 1,898 1,232 41 10,604 7,499 2,141 1,108 41 10,789 8,158 3,009 1,539 225 12,931 |
Schedule of Provision for pensions and similar obligations | 12/31/2021 12/31/2022 Provisions for post-employment plans Of which: Defined benefit pension plan 7,393 8,088 Provisions for defined contribution pension plan 106 70 7,499 8,158 |
Schedule of actuarial assumptions used to calculate defined benefit obligations | Defined Benefit Pension Plan 12/31/2021 12/31/2022 Annual discount rate 8.0 % 9.0 % Mortality tables EMSSA 2009 (Gen) EMSSA 2009 (Gen) Expected return on plan assets 8.0 % 9.0 % Cumulative annual INPC growth 3.5 % 3.5 % Annual salary increase rate 4.5 % 4.5 % Annual minimum salary increase rate 3.5 % 3.5 % Medical cost trend rates 6.0 % 6.0 % |
Schedule of funding status of the defined benefit obligations | Defined Benefit Pension Plan 12/31/2021 12/31/2022 Present value of the obligations: Pension plan 2,447 2,326 Post-employment benefits 6,153 6,646 Long-term benefits 736 796 9,336 9,768 Less: Fair value of plan assets (1,943) (1,680) Provisions – Provisions for pensions 7,393 8,088 Of which: Internal provisions for pensions 7,393 8,088 |
Schedule of defined benefit obligation recognised in consolidated income statement | Defined Benefit Pension Plan 2020 2021 2022 Current service cost 273 260 222 Interest cost (net) 442 475 569 Other 256 252 251 971 987 1,042 |
Schedule of changes in the present value of the accrued defined benefit obligations | Defined Benefit Pension Plans 2021 2022 Present value of the obligations at the beginning of year 9,528 9,336 Current service cost (Note 42) 260 222 Interest cost 613 713 Benefits paid (1,116) (1,107) Actuarial (gains)/losses 146 604 Personnel transfer (95) — Other — — Present value of the obligations at the end of year 9,336 9,768 |
Schedule of changes in fair value of plan assets | Defined Benefit Pension Plan 2021 2022 Fair value of plan assets at the beginning of year 2,186 1,943 Actual return on plan assets (48) 14 Transfer of funds to defined contribution plan — (71) Benefits paid (195) (206) Fair value of plan assets at the end of year 1,943 1,680 |
Schedule of categories of plan assets as a percentage of total plan assets | Defined Benefit Pension Plan 12/31/2021 12/31/2022 Equity instruments 35 % 38 % Cash and debt instruments 65 % 62 % |
Schedule of off-balance-sheet risks | 12/31/2021 12/31/2022 Available lines of credit cards and non-revolving consumer loans 941 1,301 Guarantees and loan commitments of commercial and public sector loans 167 238 1,108 1,539 |
Schedule of Provisions for off balance sheet risks by stages | As of December 31, 2022, 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 1,140 150 11 1,301 Guarantees, documentary credits and loan commitments of commercial loans of small and medium-sized enterprises 23 52 163 238 Total 1,163 202 174 1,539 |
Schedule of disclosure of transfers between stages of the Provisions for off balance sheet risks. | Provision for off-balance sheet risk Stage 1 Stage 2 Stage 3 Total As of January 1, 2022: 921 109 78 1,108 Financial assets derecognized during the period other than write-offs (91) (13) (62) (166) Write-offs (40) (28) (5) (73) Originated financial assets 458 42 119 619 Foreign exchange and other movements (85) 92 44 51 As of December 31, 2022 1,163 202 174 1,539 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other liabilities | |
Schedule of other liabilities | 12/31/2021 12/31/2022 Sundry creditors 9,433 13,736 Cash balances undrawn 127 373 Accrued personnel obligations 4,059 4,222 Other obligations 3,421 3,077 Credit and debit card operation balances 2,838 3,267 19,878 24,675 |
Tax matters (Tables)
Tax matters (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Tax matters | |
Schedule of income tax expense | 2020 2021 2022 Current income tax expense: Tax expense for current year 7,496 3,777 12,162 Deferred income tax expense (benefit): Origination and reversal of temporary difference and usage (accrual) of tax carryforward benefits (1,270) 1,189 (3,998) Total Income tax 6,226 4,966 8,164 |
Schedule of income tax reconciliation | 2020 2021 2022 Profit before tax 25,200 25,767 32,272 Income tax at 30% 7,560 7,730 9,682 Increase/(Decrease) due to permanent differences Of which: Due to effect of inflation (1,126) (2,775) (3,023) Due to effect of tangible assets (116) (243) (387) Due to effect of non-deductible expenses, non-taxable income and others (92) 254 1,892 Income Tax 6,226 4,966 8,164 Effective tax rate 24.71 % 19.27 % 25.30 % Current tax liability — — — Income tax 6,226 4,966 8,164 Of which: Current 7,496 3,777 12,162 Deferred (1,270) 1,189 (3,998) |
Schedule of tax recognized in equity | 2020 2021 2022 Net tax credited/(charged) to consolidated total equity: Remeasurement of defined benefit obligation 264 16 149 Measurement of Financial assets at fair value through other comprehensive income – Debt instruments (1,056) 1,402 2,210 Measurement of financial derivatives (Cash flow hedges) 126 (422) 365 Paid interests on Subordinated Additional Tier I Capital Notes 290 — 276 (376) 996 3,000 |
Schedule of components of gross deferred tax assets and liabilities | 12/31/2021 12/31/2022 Total deferred tax assets prior to offsetting 19,295 26,719 Of which: Tangible assets and deferred charges 2,288 2,902 Provisions 2,444 2,305 Impairment losses on financial assets at amortized cost 8,620 11,971 Valuation of financial instruments — 2,908 Net operating losses carryforward (*) 1 — Capital losses carryforward (*) 2,333 2,129 Labor provisions 1,238 1,482 Fees and interest collected in advance 1,299 2,703 Foreign exchange rate financial derivatives 1,072 319 Total deferred tax liabilities prior to offsetting (1,690) (2,270) Of which: Unrealized gains on financial instruments (517) — Prepayments (1,022) (1,188) Labor provisions — (738) Other (151) (344) (*) The net operating losses carryforward and the capital losses carryforward can be deducted during the ten-year period following the fiscal year in which the net operating loss and the capital loss were originated. |
Schedule of capital losses carryforward | As of December 31, 2022, the detail of capital losses carryforward is as follows: Year of origination Year of expiration Amount Deferred tax asset 2018 2028 1,646 494 2019 2029 1,975 592 2020 2030 1,934 580 2021 2031 782 235 2022 2032 762 229 7,097 2,129 |
Schedule of deferred tax assets and liabilities on balance sheet | 12/31/2021 12/31/2022 Presented as deferred tax assets 18,111 24,662 Presented as deferred tax liabilities (506) (213) Net 17,605 24,449 |
Schedule of changes in deferred tax assets and liabilities | (Charge)/ Credit to Consolidated (Charge)/ Credit to Other Consolidated Comprehensive Other 01/01/2021 Income Income Movements 12/31/2021 Deferred tax assets 21,340 (1,116) (602) (327) 19,295 Deferred tax liabilities (3,440) (73) 1,598 225 (1,690) 17,900 (1,189) 996 (102) 17,605 (Charge)/ Credit to Consolidated (Charge)/ Credit to Other Consolidated Comprehensive Other 01/01/2022 Income Income Movements 12/31/2022 Deferred tax assets 19,295 5,229 2,399 (204) 26,719 Deferred tax liabilities (1,690) (1,231) 601 50 (2,270) 17,605 3,998 3,000 (154) 24,449 |
Non-controlling interests (Tabl
Non-controlling interests (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Non-controlling interests | |
Schedule of subsidiary of Equity - Non-controlling interests | 12/31/2021 12/31/2022 Equity as of balance-sheet date attributable to non-controlling interests: Of which: Fideicomiso GFSSLPT, Banco Santander México, S.A. 37 51 Other 11 11 48 62 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 | 2021 2022 Beginning balance 37 48 Profit for the year attributable to non-controlling interests — — Other 11 14 Balance at year-end 48 62 |
Valuation adjustments (Tables)
Valuation adjustments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Valuation adjustments | |
Schedule of breakdown by type of financial instrument of Valuation adjustments - Available-for-sale financial assets | 12/31/2021 12/31/2022 Net Net Valuation Valuation Valuation Valuation Gains/ Fair Valuation Valuation Gains/ Fair Gains Losses (Losses) Value Gains Losses (Losses) Value Debt instruments 1,972 (8,695) (6,724) 390,974 682 (7,387) (6,705) 313,906 Loans and advances to customers — — — 4,056 — — — 946 Equity instruments (76) — (76) 799 — (18) (18) 697 |
Schedule of changes in the cumulative valuation adjustments recorded to Available-for-sale financial assets | Debt Equity Instruments Instruments Total Balance at January 1, 2021 3,925 148 4,073 Valuation adjustments (6,724) (76) (6,800) Amounts reclassified to consolidated income statement (781) — (781) Income taxes 1,402 23 1,425 Balance at December 31, 2021 (2,178) 95 (2,083) Valuation adjustments (6,705) (18) (6,723) Amounts reclassified to consolidated income statement (113) 72 (41) Income taxes 2,236 (26) 2,210 Balance at December 31, 2022 (6,760) 123 (6,637) |
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 | 2021 2022 Accumulated (loss)/gain on cash flow hedges 420 (437) Accumulated gain related to discontinued cash flow hedges (Note 12) (6) — Balance at December 31, 414 (437) |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Shareholders' equity | |
Share capital | Total Par Value Number of shares (Millions of Pesos) 12/31/2021 12/31/2022 12/31/2021 12/31/2022 Fixed capital: Series F shares 3,464,309,145 3,464,309,145 13,098 13,098 Series B shares 3,322,685,212 3,322,685,212 12,562 12,562 6,786,994,357 6,786,994,357 25,660 25,660 Authorized unsubscribed capital: Series F shares 921,514,867 921,514,867 — — Series B shares 883,785,133 883,785,133 — — 1,805,300,000 1,805,300,000 — — 8,592,294,357 8,592,294,357 25,660 25,660 |
Schedule of shareholder structure | Prior to exchange offer After exchange offer Banco Santander (Spain) 91.64% 96.16% Minority shareholders 8.36% 3.84% |
Minimum capital requirements (T
Minimum capital requirements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum capital requirements | |
Schedule of minimum capital requirements calculated in accordance with the Mexican Banking GAAP for the Bank | 12/31/2021 12/31/2022 Computable capital: 168,616 143,832 Core capital 165,626 165,974 Supplementary capital 27,928 26,827 Deductible items (49,547) (62,625) Subordinated Additional Tier I Capital Notes (see Note 22.c) 24,609 13,656 Capital requirements: 62,564 59,366 Market risk 15,354 14,945 Credit risk 41,416 38,123 Operational risk 5,794 6,298 Excess of capital requirements 106,052 84,466 Risk-weighted assets 782,050 742,079 |
Schedule of capital ratios in accordance to the data published by the CNBV | 12/31/2021 12/31/2022 Net Capital / Required Capital 2.70 2.42 Minimum capital requirements Not applicable Not applicable Basic Fundamental Capital / Assets subject to Credit, Market and Operating Risk 14.84 % 13.93 % Minimum capital requirements 8.20 % 8.20 % Basic Capital / Assets subject to Credit, Market and Operating Risk 17.99 % 15.77 % Minimum capital requirements 9.70 % 9.70 % Net Capital / Assets subject to Credit Risk 32.57 % 30.18 % Minimum capital requirements Not applicable Not applicable Net Capital / Assets subject to Credit, Market and Operating Risk 21.56 % 19.38 % Minimum capital requirements 11.70 % 11.70 % |
Memorandum accounts (Tables)
Memorandum accounts (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Memorandum accounts | |
Schedule of contingent commitments | Contingent commitments 12/31/2021 12/31/2022 Available lines of credit cards and non-revolving consumer loans 171,094 205,793 Guarantees, documentary credits and loan commitments of commercial and public sector loans 91,516 114,418 Guarantees, documentary credits and loan commitments of commercial loans (SME) 315 107 262,925 320,318 |
Schedule of commitments by stages | As of December 31, 2022, 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 204,260 1,338 195 205,793 Guarantees, documentary credits and loan commitments of commercial and public sector loans 109,161 4,822 435 114,418 Guarantees, documentary credits and loan commitments of commercial loans (SME) 107 — — 107 313,528 6,160 630 320,318 |
Schedule of of financial instruments received as collateral | Financial instruments received as collateral 12/31/2021 12/31/2022 Debt instruments received in OTC financial derivatives transactions 4,491 4,541 Debt instruments received in reverse repurchase agreement transactions 63,687 119,398 Equity instruments received in securities loan transactions 74 1 68,252 123,940 |
Financial derivatives - Nomin_2
Financial derivatives - Nominal amounts and fair values of trading and hedging financial derivatives (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial instruments in connection with derivative transactions in organized markets | |
Financial instruments | |
Schedule of collateral provided/delivered | 12/31/2021 12/31/2022 Collateral provided: Of which: Mercado Mexicano de Derivados, S.A. de C.V. Cash 4,326 5,946 Chicago Mercantile Exchange Cash 1,934 431 Foreign financial institutions Cash 1 153 6,261 6,530 |
Financial instrument in connection with OTC derivative transactions | |
Financial instruments | |
Schedule of collateral provided/delivered | 12/31/2021 12/31/2022 Financial assets at amortized cost - Loans and advances to credit institutions: Of which (Note 7): Mexican financial institutions Cash 7,163 11,697 Foreign financial institutions Cash 6,071 2,888 13,234 14,585 Financial assets at amortized cost - Loans and advances to customers: Of which (Note 11): Mexican institutions Cash — 1,091 — 1,091 Financial assets at fair value through profit or loss - Debt instruments: Of which (Note 8): Mexican financial institutions Bonds 3,443 4,906 Foreign financial institutions Bonds 2,932 2,171 6,375 7,077 |
Schedule of collateral received | 12/31/2021 12/31/2022 Deposits from credit institutions and Customer deposits: Of which (Notes 19 and 20): Mexican financial institutions Cash 9,325 5,559 Foreign financial institutions Cash 17,594 21,302 26,919 26,861 12/31/2021 12/31/2022 Memorandum accounts: Of which (Note 31): Mexican financial institutions Bonds 4,491 4,541 4,491 4,541 |
Trading derivative liabilities | |
Financial instruments | |
Schedule of breakdown of the fair value and nominal amount of trading derivatives | 12/31/2021 12/31/2022 Trading Nominal Fair Value Nominal Fair Value Futures: Foreign Currency Futures 10,827 — 15,212 12 Market Index Futures 612 1 127 — Forwards: Foreign Currency Forwards 214,999 3,389 200,965 4,985 Foreign Exchange (Spot) 33,031 102 39,033 123 Options: Foreign Currency Options 70,823 2,064 78,285 2,278 Interest Rate Options 78,509 915 104,644 1,921 Market Index Options 1,904 1,422 1,736 1,567 Equity Options 1,934 209 4,228 177 Swaps: IRS 3,724,129 93,600 3,843,533 164,277 Equity Swaps 859 342 450 473 CCS 417,366 74,634 480,136 55,375 Total Trading 4,554,993 176,678 4,768,349 231,188 |
Hedging derivative liabilities | |
Financial instruments | |
Schedule of breakdown of the fair value and nominal amount of trading derivatives | 12/31/2021 12/31/2022 Hedging Nominal Fair Value Nominal Fair Value Cash flow hedge: IRS 7,311 42 — — CCS 2,704 864 3,340 371 Foreign Currency Forwards 7,289 238 12,279 885 Fair value hedge: IRS 1,867 96 62,029 1,109 CCS 28,715 6,922 8,031 2,096 Total Hedging 47,886 8,162 85,679 4,461 Total Financial Derivatives Liability 4,602,879 184,840 4,854,028 235,649 |
Trading derivative assets | |
Financial instruments | |
Schedule of breakdown of the fair value and nominal amount of trading derivatives | 12/31/2021 12/31/2022 Trading Nominal Fair Value Nominal Fair Value Futures: Foreign Currency Futures 12,453 — 48,013 — Market Index Futures 72 — — — Forwards: Foreign Currency Forwards 261,701 5,042 187,753 6,723 Foreign Exchange (Spot) 30,428 88 21,769 215 Equity Forwards — — — — Options: Foreign Currency Options 88,639 1,874 117,173 2,321 Interest Rate Options 53,370 712 66,342 1,277 Market Index Options 281 45 55 12 Equity Options 775 85 2,379 162 Swaps: IRS 3,577,417 94,895 3,863,421 158,553 CCS 486,767 76,649 523,287 59,553 Total Trading 4,511,903 179,390 4,830,192 228,816 |
Hedging derivative assets | |
Financial instruments | |
Schedule of breakdown of the fair value and nominal amount of trading derivatives | 12/31/2021 12/31/2022 Hedging Nominal Fair Value Nominal Fair Value Cash flow hedge: CCS 11,125 4,547 5,553 189 Foreign Currency Forwards 57,669 5,233 41,079 5,069 Fair value hedge: IRS 47,047 1,454 66,503 3,680 CCS 244 14 13,067 1,243 Total Hedging 116,085 11,248 126,202 10,181 Total Financial Derivatives Asset 4,627,988 190,638 4,956,394 238,997 |
Interest income calculated us_2
Interest income calculated using the effective interest method (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial assets | |
Schedule of the main interest income from financial assets at fair value through profit or loss | 2020 2021 2022 Cash and balances with the Central Bank 1,951 1,471 2,587 Loans and advances to credit institutions 412 1,714 1,523 Loans and advances to customers 84,290 74,695 93,594 Debt instruments 14,643 15,472 19,788 Hedging financial derivatives 2,432 340 5,370 Other interest income 249 353 1,234 103,977 94,045 124,096 |
Other interest and similar in_2
Other interest and similar income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial assets | |
Schedule of Other interest and similar income | 2020 2021 2022 Loans and advances to credit institutions 2,997 1,543 8,002 Loans and advances to customers 804 507 785 Debt instruments 8,207 7,017 6,113 12,008 9,067 14,900 |
Interest expense and similar _2
Interest expense and similar charges (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Interest expense and similar charges | |
Schedule of the main items of interest expense and similar charges | 2020 2021 2022 Deposits from credit institutions 12,400 10,967 19,373 Customer deposits 28,235 19,224 32,228 Marketable debt securities 5,756 5,308 7,632 Subordinated liabilities 1,767 1,668 1,646 Hedging financial derivatives 193 299 99 Other interest expense 1,824 2,214 2,906 50,175 39,680 63,884 |
Dividend income (Tables)
Dividend income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Dividend income | |
Schedule of Dividend income | 2020 2021 2022 Equity instruments classified as: Financial assets at fair value through profit or loss 40 28 13 Of which: NAFTRAC (Exchange-traded fund or ETF) 36 9 5 Grupo México, S.A.B. de C.V. — — 8 Grupo Cementos de Chihuahua, S.A.B. de C.V. 3 1 — Fomento Económico Mexicano, S.A.B. de C.V. 1 — — Wal-Mart de México, S.A.B. de C.V. — 1 — Organización Soriana, S.A.B. de C.V. — 17 — Financial assets at fair value through other comprehensive income 206 199 173 Of which: Controladora Prosa, S.A. de C.V. 73 64 — Trans Unión de México, S.A. 88 88 126 Bolsa Mexicana de Valores, S.A.B. de C.V. 25 29 31 Dun & Bradstreet de México, S.A. de C.V. 20 18 16 Others — — — 246 227 186 |
Fee and commission income (Tabl
Fee and commission income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fee and commission income | |
Schedule of fee and commission income | 2020 2021 2022 Collection and payment services: Service charges on deposit accounts 2,588 2,593 3,012 Credit and debit cards 7,667 8,379 9,892 Checks and others 181 172 157 10,436 11,144 13,061 Marketing of non-banking financial products: Investment funds management 1,611 1,747 1,900 Capital markets and securities activities 514 523 634 Collection and payment services 2,074 2,206 2,350 Insurance 5,300 5,508 6,203 Financial advisory services 1,179 1,307 1,415 10,678 11,291 12,502 Securities services: Administration and custody 461 459 394 461 459 394 Other: Foreign currency transactions 1,380 1,510 1,539 Other fees and commissions 801 951 999 2,181 2,461 2,538 23,756 25,355 28,495 |
Fee and commission expenses (Ta
Fee and commission expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fee and commission expenses | |
Schedule of fee and commission expense | 2020 2021 2022 Credit and debit cards 2,741 3,938 4,964 Checks and others 43 48 68 Collections and transactional services 291 305 254 Fund management 1 1 1 Capital markets and securities activities 173 202 296 Financial advisory services 5 6 6 Correspondent services 791 802 674 Other fees and commissions 2,688 2,847 3,000 6,733 8,149 9,263 |
Gains_(losses) on financial a_2
Gains/(losses) on financial assets and liabilities (net) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Gains or losses on financial assets and liabilities (net) | |
Summary of Gains/(losses) on financial assets and liabilities (net) | 2020 2021 2022 Financial instruments at fair value through profit or loss 5,662 4,640 589 Of which: Debt instruments 1,221 119 (5,613) Equity instruments (161) 398 289 Derivatives 4,458 4,096 6,021 Others 144 27 (108) Recognized profit from sale of financial assets at fair value through other comprehensive income 779 781 113 Hedging derivatives (457) (538) 322 Of which: Fair value hedge - hedged items (Note 12) 6,427 (9,278) (4,903) Fair value hedge - hedging derivative instruments (Note 12) (6,884) 8,746 5,225 Cash flow hedge inefficiency (Note 12) — (6) — 5,984 4,883 1,024 |
Other operating income and ot_2
Other operating income and other operating expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other operating income and other operating expenses | |
Schedule of other operating income and other operating expenses | 2020 2021 2022 Other operating income: Other operating income 1,651 1,740 810 1,651 1,740 810 Other operating expenses: IPAB fund contribution (3,859) (3,801) (3,981) Other operating expenses (1,354) (1,405) (1,305) (5,213) (5,206) (5,286) |
Personnel expenses (Tables)
Personnel expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Personnel expenses | |
Schedule of detail of personnel expenses | 2020 2021 2022 Wages and salaries 7,838 8,307 9,164 Social security costs 1,494 1,703 2,010 Service expense related to defined contribution pension plan (Note 24) 488 483 555 Service expense related to defined benefit pension plan 194 260 221 Share-based payments 226 54 305 Bonus and benefits granted to employees 3,052 4,111 4,983 Other staff costs 1,584 1,567 1,677 14,876 16,485 18,915 |
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 % 4 years |
Other general administrative _2
Other general administrative expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other general administrative expenses | |
Schedule of Other general administrative expenses | 2020 2021 2022 Maintenance, conservation and repair 825 773 736 Information technology and systems 5,344 5,945 6,108 Stationery and supplies 325 234 156 Advertising and communications 809 696 753 Rents 683 556 614 Administrative services 2,202 1,603 1,424 Taxes other than income tax 2,270 1,915 2,030 Surveillance and cash courier services 1,263 1,237 1,341 Insurance premiums 114 103 100 Travel costs 71 62 175 Other administrative expenses 1,353 1,263 1,413 15,259 14,387 14,850 |
Schedule of audit and tax services | 2020 2021 2022 Audit fees and audit-related fees (*) 122 99 105 (*) The audit-related fees amounted to 26 million pesos in 2020, 32 million pesos in 2021 and 17 million pesos in 2022. |
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, 2022 | |
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) | 2020 2021 2022 Gains: On disposal of tangible assets 6 57 4 6 57 4 |
Other disclosures (Tables)
Other disclosures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2021, is as follows: 12/31/2021 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 Cash and balances with the Central Bank 26,360 12,735 — — — — 23,978 63,073 Financial assets at fair value through profit or loss Debt instruments — 4,197 31,192 25,550 34,552 8,355 7,129 110,975 Equity instruments — — — — — — 2,764 2,764 Trading derivatives 147 2,989 6,963 14,418 48,131 36,729 70,013 179,390 Loans and advances to credit institutions - Reverse repurchase agreements — 58,486 — — — — — 58,486 Loans and advances to customers - Reverse repurchase agreements — 10,000 — — — — — 10,000 Financial assets at fair value through other comprehensive income Loans and advances to customers — 450 900 2,706 — — — 4,056 Debt instruments — 74,851 40,537 2,757 110,173 110,586 52,070 390,974 Equity instruments — — — — — 192 607 799 Financial assets at amortized cost Loans and advances to credit institutions 19,403 17,089 — — — — — 36,492 Loans and advances to customers 12,538 50,092 85,708 176,794 173,148 78,773 159,944 736,997 Debt instruments — — — 1,774 — 7,788 2,057 11,619 Hedging derivatives 125 — — 4,753 1,803 4,553 14 11,248 58,573 230,889 165,300 228,752 367,807 246,976 318,576 1,616,873 Liabilities: Financial liabilities at fair value through profit or loss Trading derivatives 69 1,228 5,944 15,189 51,478 34,068 68,702 176,678 Short positions — 19,554 — — — — — 19,554 Deposits from the Central Bank — 23,002 — — — — — 23,002 Deposits from credit institutions — 17,846 — — — — — 17,846 Customer deposits — 114,078 — — — — — 114,078 Marketable debt securities — — 66 119 — 74 — 259 Financial liabilities at amortized cost Deposits from the Central Bank — 78,312 8,203 101 — — — 86,616 Deposits from credit institutions 39,213 38,874 1,523 2,406 15 22 1,286 83,339 Customer deposits 541,585 153,372 20,416 52,728 3,669 4,558 1,558 777,886 Marketable debt securities — 14,355 2,049 29,009 49,510 6,500 101,423 Subordinated liabilities — 10,254 — 397 — — 40,992 51,643 Other financial liabilities 10,571 3,690 104 2,692 177 4 — 17,238 Hedging derivatives 1 — — 38 1,096 2,700 4,327 8,162 591,439 474,565 38,305 102,679 56,435 90,936 123,365 1,477,724 Difference (assets less liabilities) (532,866) (243,676) 126,995 126,073 311,372 156,040 195,211 139,149 The breakdown by maturity of the balances of certain items in the consolidated balance sheets as of December 31, 2022, is as follows: 12/31/2022 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 37,543 11,294 — — — — 23,978 72,815 Financial assets at fair value through profit or loss Debt instruments — 7,009 20,031 34,030 51,027 8,255 9,897 130,249 Equity instruments — — — — — — 4,063 4,063 Trading derivatives 331 2,475 7,417 27,459 67,736 51,662 71,736 228,816 Loans and advances to credit institutions - Reverse repurchase agreements — 93,267 — 9,385 — — — 102,652 Loans and advances to customers - Reverse repurchase agreements — 19,207 — — — — — 19,207 Financial assets at fair value through other comprehensive income Loans and advances to customers — 95 188 594 38 31 — 946 Debt instruments — 9,443 65,891 5,391 83,423 117,274 32,484 313,906 Equity instruments — — — — — 110 587 697 Financial assets at amortized cost Loans and advances to credit institutions — 40,400 — — — — — 40,400 Loans and advances to customers 4,034 52,944 108,526 186,273 205,255 83,851 156,833 797,716 Debt instruments — — — — 16,537 4,038 1,666 22,241 Hedging derivatives 1,502 47 164 171 3,584 3,638 1,075 10,181 43,410 236,181 202,217 263,303 427,600 268,859 302,319 1,743,889 Liabilities: Financial liabilities at fair value through profit or loss Trading derivatives 623 3,488 7,182 28,935 65,112 51,958 73,890 231,188 Short positions — 28,762 — — — — — 28,762 Deposits from Central Bank – Repurchase agreements — 31,055 — — — — — 31,055 Deposits from credit institutions – Repurchase agreements — 22,818 — — — — — 22,818 Customer deposits – Repurchase agreements — 114,308 5,461 — — — — 119,769 Marketable debt securities — 10 112 249 77 72 — 520 Financial liabilities at amortized cost Deposits from Central Bank — 89,753 — — — — — 89,753 Deposits from credit institutions 26,523 29,036 1,455 2,159 5,009 123 1,049 65,354 Deposits from credit institutions - Repurchase agreements — 9,003 — — — — — 9,003 Customer deposits 538,955 138,171 21,437 74,859 4,038 3,271 876 781,607 Customer deposits - Repurchase agreements — 26,912 10 — — — — 26,922 Marketable debt securities — 23,933 11,202 30,217 37,682 22,278 9,081 134,393 Subordinated liabilities — — — 366 — — 39,018 39,384 Other financial liabilities — 14,741 2,507 2,050 175 — — 19,473 Hedging derivatives — — — 306 2,143 1,097 915 4,461 566,101 531,990 49,366 139,141 114,236 78,799 124,829 1,604,462 Difference (assets less liabilities) (522,691) (295,809) 152,851 124,162 313,364 190,060 177,490 139,427 |
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, 2021, is as follows: 12/31/2021 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 — 78,399 8,228 102 — — — 86,729 Deposits from credit institutions 39,213 39,039 1,589 2,595 150 155 2,136 84,877 Customer deposits 541,585 154,195 21,356 55,574 4,657 5,178 2,190 784,735 Marketable debt securities — 14,742 3,043 32,892 5,116 54,626 7,984 118,403 Subordinated liabilities — 10,463 417 2,275 5,007 5,007 55,095 78,264 Other financial liabilities 10,436 3,689 995 1,753 365 — — 17,238 591,234 300,527 35,628 95,191 15,295 64,966 67,405 1,170,246 The detail of the undiscounted contractual maturities of the existing financial liabilities at amortized cost as of December 31, 2022, is as follows: 12/31/2022 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 — 89,863 — — — — — 89,863 Deposits from credit institutions 26,523 38,267 1,621 2,722 5,845 282 1,970 77,230 Customer deposits 538,955 166,428 23,128 80,235 5,140 3,831 1,350 819,067 Marketable debt securities — 24,396 12,343 34,317 43,387 24,869 10,957 150,269 Subordinated liabilities — 191 382 2,085 4,586 4,586 51,991 63,821 Other financial liabilities — 14,741 2,507 2,050 175 — — 19,473 565,478 333,886 39,981 121,409 59,133 33,568 66,268 1,219,723 |
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 12/31/2021 12/31/2022 Assets Liabilities Assets Liabilities Cash and balances with the Central Bank 3,727 — 3,307 — Debt instruments (Note 8) 202,775 — 122,692 — Loans and advances to credit institutions (Note 7) 28,594 — 55,696 — Loans and advances to customers 78,504 — 81,477 — Other assets 387 — 159 — Marketable debt securities (Note 21) — 56,995 — 35,724 Subordinated liabilities — 51,654 — 39,389 Derivatives — 73,858 — 52,890 Deposits from Central Bank — — — — Deposits from credit institutions (Note 19) — 33,467 — 30,933 Customer deposits (Note 20) — 92,987 — 94,975 Other financial liabilities — 1,057 — 2,543 Other liabilities — 3,184 — 5,060 |
Schedule of Financial assets measured at other than fair value | As of December 31, 2021: 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) — 16,551 19,842 36,393 36,492 Loans and advances to customers (Note 11) — 191 738,646 738,837 736,997 Debt instruments (unlisted) (Note 8) — 11,619 — 11,619 11,619 As of December 31, 2022: 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) — 17,971 22,839 40,810 40,400 Loans and advances to customers (Note 11) — 320 770,130 770,450 797,716 Debt instruments (unlisted) (Note 8) 12,248 10,010 — 22,258 22,241 |
Schedule of Financial liabilities measured at other than fair value | As of December 31, 2021: 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) — 86,608 — 86,608 86,616 Deposits from credit institutions (Note 19) — 26,892 51,337 78,229 78,182 Deposits from credit institutions - Repurchase agreements (Note 19) — 5,156 — 5,156 5,157 Customer deposits (Note 20) — 52,566 706,455 759,021 760,325 Customer deposits - Repurchase agreements (Note 20) — 17,559 — 17,559 17,561 Marketable debt securities (Note 21) 104,582 — — 104,582 101,423 Subordinated liabilities (Note 22) 38,911 14,375 — 53,286 51,643 Other financial liabilities (Note 23) — 9,841 7,359 17,200 17,238 As of December 31, 2022: 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) — 89,751 — 89,751 89,753 Deposits from credit institutions (Note 19) — 24,633 39,884 64,517 65,354 Deposits from credit institutions - Repurchase agreements (Note 19) — 9,003 — 9,003 9,003 Customer deposits (Note 20) — 62,041 718,445 780,486 781,607 Customer deposits - Repurchase agreements (Note 20) — 26,922 — 26,922 26,922 Marketable debt securities (Note 21) 133,229 — — 133,229 134,393 Subordinated liabilities (Note 22) 25,655 13,905 — 39,560 39,384 Other financial liabilities (Note 23) — 10,891 8,575 19,466 19,473 |
Operating segments (Tables)
Operating segments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Operating segments | |
Schedule of consolidated income statement and other significant data | The 2020 consolidated income statement and other significant data are as follows: Corporate Retail and Investment 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 654,572 760,895 422,447 1,837,914 Total liabilities 676,529 783,942 223,609 1,684,080 The 2021 consolidated income statement and other significant data are as follows: Corporate Retail and Investment Corporate 2021 Banking Banking Activities Total Net interest income 58,045 4,295 1,092 63,432 Dividend income — 29 198 227 Income from companies accounted for using the equity method — — 200 200 Net fee and commission income 15,729 1,594 (117) 17,206 Gains/(losses) on financial assets and liabilities (net) 1,493 3,228 162 4,883 Exchange differences (net) — — (35) (35) Other operating income/(expenses) (2,967) (508) 9 (3,466) Total income 72,300 8,638 1,509 82,447 Administrative expenses (26,525) (3,810) (537) (30,872) Depreciation and amortization (5,849) (364) (30) (6,243) Impairment losses on financial assets not at fair value through profit or loss (net) (18,115) (1,114) — (19,229) Impairment losses on other assets (net) (27) — — (27) Provisions (net) 200 — (586) (386) Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) — — 57 57 Gains/(losses) on disposal of non-current assets not classified as discontinued operations (net) — — 20 20 Operating profit before tax 21,984 3,350 433 25,767 Income tax (4,966) Profit for the year 20,801 Profit attributable to the Parent 20,801 Profit attributable to non-controlling interest — Total assets 685,590 525,722 466,901 1,678,213 Total liabilities 726,626 604,758 183,241 1,514,625 The 2022 consolidated income statement and other significant data are as follows: Global Retail Corporate Corporate 2022 Banking Banking Activities Total Net interest income 65,477 9,216 419 75,112 Dividend income — 13 173 186 Income from companies accounted for using the equity method — — 182 182 Net fee and commission income 17,639 1,615 (22) 19,232 Gains/(losses) on financial assets and liabilities (net) 1,255 (138) (93) 1,024 Exchange differences (net) — (7) — (7) Other operating income/(expenses) (2,785) (557) (1,134) (4,476) Total income 81,586 10,142 (475) 91,253 Administrative expenses (29,151) (3,846) (768) (33,765) Depreciation and amortization (6,293) (372) (21) (6,686) Impairment losses on financial assets not at fair value through profit or loss (net) (17,323) 1,240 — (16,083) Provisions (net) (230) (33) (2,258) (2,521) Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) — — 4 4 Gains/(losses) on disposal of non-current assets not classified as discontinued operations (net) — — 70 70 Operating profit before tax 28,589 7,131 (3,448) 32,272 Income tax (8,164) Profit for the year 24,108 Profit attributable to the Parent 24,108 Profit attributable to non-controlling interest — Total assets 754,548 656,392 402,481 1,813,421 Total liabilities 748,904 707,728 193,335 1,649,967 |
Related-party transactions (Tab
Related-party transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related-party transactions | |
Schedule of related party transactions | 12/31/2021 12/31/2022 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) 79,660 — 99,291 — Banco Santander (Chile) — 654 — 372 Loans and advances to customers - Of which - Casa de Bolsa Santander, S.A. de C.V. — — — 508 Financial assets at amortized cost - Loans and advances to credit institutions - Of which - Banco Santander, S.A. (Spain) 5,147 — 5,845 — Banco Santander (Brasil), S.A. — — — 907 Loans and advances to customers - Of which - Santander Capital Structuring, S.A. de C.V. — — — 224 SMPS Merchant Platform Solutions México, S.A de C.V — — — 84 Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — 908 — — Key management personnel — 4,178 — 4,351 Other intangible assets - Of which - Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informáticos Generales, S.L.) — 469 — 143 Santander Back-Offices Globales Mayoristas, S.A. — 4 — 9 Santander Global Facilities, S.A. de C.V. — 36 — 112 Other — 8 — 10 Other assets - Of which - Banco Santander, S.A. (Spain) 8 — — — Zurich Santander Seguros México, S.A. — 1,177 — 1,239 Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — 268 — — SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversión — 184 — 190 SMPS Merchant Platform Solutions México, S.A de C.V — 42 — 15 Other — 30 — 19 12/31/2021 12/31/2022 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) 64,582 — 83,133 — Customer deposits - Repurchase agreements Of which - Casa de Bolsa Santander, S.A. de C.V. — 2,773 — 3,214 Other — — — 4 Financial liabilities at amortized cost - Deposits from credit institutions - Of which - Banco Santander, S.A. (Spain) 15,535 — 16,896 — Banco S3 México, S.A., Institución de Banca Múltiple — 7 — 6 Banco Santander (Brasil), S. A. — 82 — — Customer deposits - Of which- SMPS Merchant Platform Solutions México, S.A de C.V — — — 887 Operadora de Carteras Gamma, S.A.P.I. de C.V. — 148 — 174 Mercadotecnia, Ideas y Tecnología, S.A de C.V. — — — 92 Decarome, S.A.P.I. de C.V. — 70 — 57 Santander Global Facilities, S.A. de C.V. — 1,780 — 1,819 Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — 110 — 193 Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — 517 — 112 Santander Capital Structuring, S.A. de C.V. — 238 — 223 Gesban México Servicios Administrativos Globales, S.A. De C.V. — 56 — 47 Other(*) — 5,383 — 2,630 Marketable debt securities - Of which - Banco Santander, S.A. (Spain) 1,011 — — — Other — 27 — 25 Subordinated liabilities - Of which - Banco Santander, S.A. (Spain) 43,693 — 32,960 — Other financial liabilities - Of which - Banco Santander, S.A. (Spain) 1,924 — 1,642 — Santander Global Facilities, S.A. de C.V. — 335 — — Other — 13 — 6 Other liabilities - Of which - Santander Back-offices Globales Mayorista, S.A. — 35 — 80 Banco Santander (Brasil), S. A. — 77 — 69 Santander Global Facilities, S.A. de C.V. — 18 — 368 Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — 972 — 1,130 Other — 50 — 114 (*) As of December 31, 2021 and 2022, includes 5,093 million pesos and 2,267 million pesos, respectively, related to key management personnel transactions. 2020 2021 2022 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) 1 — 2 — 2 — Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — 84 — — — — Santander Global Technology, S.L. — — — 19 — — Casa de Bolsa Santander, S.A. de C.V. — 41 — 21 — 22 Santander Capital Structuring, S.A. de C.V. — 176 — 123 — 58 Other — 2 — — — 10 Interest expense and similar charges - Of which - Banco Santander, S.A. (Spain) 1,310 — 1,230 — 1,516 — Casa de Bolsa Santander, S.A. de C.V. — 304 — 146 — 212 Banco Santander International, S.A. — — — 26 — — Santander Capital Structuring, S.A. de C.V. — — — 6 — — Santander Global Technology, S.L. — — — 3 — — Operadora de Carteras Gamma, S.A.P.I. de C.V. — — — 3 — 10 Banco S3 México, S.A., Institución de Banca Múltiple — 41 — 21 — 25 Santander Global Facilities, S.A. de C.V. — 52 — 70 — 113 Other — 30 — 10 — 54 Fee and commission income - Of which - Banco Santander, S.A. (Spain) 8 — — — — — Banco S3 México, S.A., Institución de Banca Múltiple — — — 24 — 18 Casa de Bolsa Santander, S.A. de C.V. — 55 — 142 — 180 Zurich Santander Seguros México, S.A. — 4,031 — 4,284 — 4,612 SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversión — 1,608 — 1,742 — 1,895 Other — 25 — 1 — 10 Fee and commission expense- Of which - Banco Santander, S.A. (Spain) 2 — 2 — 2 — Santander Global Facilities, S.A. de C.V. — 135 — 55 — — Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. — 110 — — — — Casa de Bolsa Santander, S.A. de C.V. — 34 — 43 — 57 SAM Asset Management , S.A. de C.V., Sociedad Operadora de Fondos de Inversión — 17 — 18 — 21 Other — — — 1 — 7 Gains/(losses) on financial assets and liabilities (net) - Of which - Banco Santander, S.A. (Spain) (24,086) — 18,441 — 8,610 — Banco Santander (Chile) — (26) — 494 — (274) Banco Santander International, S. A. — — — (4) — (2) Other — (20) — — — — Other operating income Of which - Santander Global Facilities, S.A. de C.V. — 20 — 7 — — SMPS Merchant Platform Solutions México S.A. de C.V. — — — 42 — 105 Banco S3 México, S.A., Institución de Banca Múltiple — — — 13 — 17 Santander Digital Assets, S.L. — 22 — — — — Casa de Bolsa Santander, S.A. de C.V. — 55 — 56 — — Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — 79 — 71 — 78 Other — 37 — 7 — 12 Administrative expenses - Of which - Banco Santander, S.A. (Spain) 464 — 524 — 476 — Santander Global Technology, S.L., Sociedad Unipersonal (formerly, Produban Servicios Informáticos Generales, S.L.) — 2,875 — 3,328 — 3,307 Santander Global Facilities, S.A. de C.V. — 446 — 470 — 369 Gesban México Servicios Administrativos Globales, S.A. de C.V. — 55 — 58 — 54 Santander Back-offices Globales Mayorista, S.A. — 71 — 101 — 109 Santander Global Technology Chile Limitada — — — 5 — — Aquanima México, S. de R.L. de C.V. — 74 — 72 — 77 Santander Global Facilities, S.L. — — — 23 — 31 Other — 143 — 14 — 87 |
Risk management (Table)
Risk management (Table) | 12 Months Ended |
Dec. 31, 2022 | |
Financial assets | |
Schedule of main aggregates relating to credit risk | Loans to customers (million pesos) Non-performing loans (million pesos) Percentage of non-performing loans by type of customer 2020 2021 2022 2020 2021 2022 2020 2021 2022 By loan type: Public Sector 73,016 85,256 52,094 — — — — — — Commercial, financial and industrial 346,075 354,554 393,612 6,530 9,937 5,587 1.9% 2.8% 1.4% Mortgage 177,665 199,579 205,242 9,847 9,725 11,867 5.5% 4.9% 5.8% Installment loans to individuals 116,227 122,699 147,217 5,532 2,991 3,749 4.8% 2.4% 2.5% Revolving consumer credit card loans 53,809 53,417 63,782 2,543 1,328 1,175 4.7% 2.5% 1.8% Non revolving consumer loans 62,418 69,282 83,435 2,989 1,663 2,574 4.8% 2.4% 3.1% 712,983 762,088 798,165 21,909 22,653 21,203 3.1% 3.0% 2.7% |
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, 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 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 2021 under 350 million pesos, mainly due to the short-term re-pricing of the loan portfolio. At the end of December 2021, 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, 2021. 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 107,529 40,153 36 — — — — — 67,340 Loans 1,011,713 415,520 56,759 41,235 52,466 147,987 82,115 203,678 11,953 Trade Finance — — — — — — — — — Intragroup 4,368 — — — — — — — 4,368 Securities 592,439 87,765 44,143 15,045 9,531 138,771 127,591 43,135 126,458 Permanent 18,931 — — — — — — — 18,931 Other Assets 2,550,757 — — — — — — — 2,550,757 Total Balance Sheet Assets 4,285,737 543,438 100,938 56,280 61,997 286,758 209,706 246,813 2,779,807 Money Market (237,962) (136,942) (203) (119) (37) (6) — — (100,655) Deposits (773,147) (316,556) (25,179) (8,115) (104,567) (152,067) — (166,663) — Trade Finance — — — — — — — — — Intragroup — — — — — — — — — Long-Term Funding (207,558) (45,398) (2,677) (6,338) (26,383) (37,397) (62,168) (7,745) (19,452) Equity (165,539) — — — — — — — (165,539) Other Liabilities (2,577,883) — — — — — — — (2,577,883) Total Balance Sheet Liabilities (3,962,089) (498,896) (28,059) (14,572) (130,987) (189,470) (62,168) (174,408) (2,863,529) Total Balance Sheet Gap 323,648 44,542 72,879 41,708 (68,990) 97,288 147,538 72,405 (83,722) Total Off-Balance Sheet Gap 16,348 85,733 (353) (7,870) 5,373 936 (52,397) (15,036) (38) Total Structural Gap 130,275 72,526 33,838 (63,617) 98,224 95,141 57,369 (83,760) Accumulated Gap — 130,275 202,801 236,639 173,022 271,246 366,387 423,756 339,996 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 2022 under 500 million pesos, mainly due to the short-term re-pricing of the loan portfolio. At the end of December 2022, the risk consumption measured in terms of hundred basis points MVE sensitivity stood under 2,500 million pesos. The table below shows in millions of pesos the distribution of interest rate risk by maturity as of December 31, 2022. 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 130,928 47,853 — — — — — — 83,075 Loans 1,156,551 457,396 62,232 47,152 72,844 191,785 105,972 185,834 33,336 Trade Finance — — — — — — — — — Intragroup 4,287 — — — — — — — 4,287 Securities 606,595 20,336 74,919 13,451 16,256 130,150 146,119 25,853 179,511 Permanent 12,794 — — — — — — — 12,794 Other Assets 2,830,134 — — — — — — — 2,830,134 Total Balance Sheet Assets 4,741,289 525,585 137,151 60,603 89,100 321,935 252,091 211,687 3,143,137 Money Market (232,148) (126,156) (70) (33) (52) (18) — — (105,819) Deposits (852,714) (282,371) (30,164) (30,052) (103,999) (203,423) — (202,705) — Trade Finance — — — — — — — — — Intragroup — — — — — — — — — Long-Term Funding (234,697) (75,556) (6,376) (11,100) (32,087) (45,344) (24,593) (10,276) (29,365) Equity (166,838) — — — — — — — (166,838) Other Liabilities (2,794,488) — — — — — — — (2,794,488) Total Balance Sheet Liabilities (4,280,885) (484,083) (36,610) (41,185) (136,138) (248,785) (24,593) (212,981) (3,096,510) Total Balance Sheet Gap 460,404 41,502 100,541 19,418 (47,038) 73,150 227,498 (1,294) 46,627 Total Off-Balance Sheet Gap 111,813 134,000 1,336 2,524 9,324 (2,520) (117,351) (11,824) 96,324 Total Structural Gap 175,502 101,877 21,942 (37,714) 70,630 110,147 (13,118) 142,951 Accumulated Gap 175,502 277,379 299,321 261,607 332,237 442,384 429,266 572,217 |
Schedule of distribution of liquidity risk by maturity | The table below shows in millions of pesos the distribution of the liquidity risk by maturity as of December 31, 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 The table below shows in millions of pesos the distribution of the liquidity risk by maturity as of December 31, 2021. 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 107,493 40,153 — — — — — — 67,340 Loans 1,016,312 59,574 98,867 85,021 112,761 272,326 122,316 253,494 11,953 Trade Finance — — — — — — — — — Intragroup 4,368 — — — — — — — 4,368 Securities 592,439 76,155 43,313 3,745 12,135 138,771 135,369 56,492 126,459 Permanent 18,931 — — — — — — — 18,931 Other Assets 2,548,067 — — — — — — — 2,548,067 Total Balance Sheet Assets 4,287,610 175,882 142,180 88,766 124,896 411,097 257,685 309,986 2,777,118 Money Market (237,926) (134,800) (429) (525) (1,426) (90) — — (100,656) Deposits (773,147) (276,799) (30,673) (14,064) (22,018) (53,199) (43,500) (332,894) — Trade Finance — — — — — — — — — Intragroup — — — — — — — — — Long-Term Funding (207,558) (14,789) (6,815) (16,950) (28,540) (43,550) (68,411) (9,051) (19,452) Equity (165,539) — — — — — — — (165,539) Other Liabilities (2,577,883) — — — — — — — (2,577,883) Total Balance Sheet Liabilities (3,962,053) (426,388) (37,917) (31,539) (51,984) (96,839) (111,911) (341,945) (2,863,530) Total Balance Sheet Gap 325,557 (250,506) 104,263 57,227 72,912 314,258 145,774 (31,959) (86,412) Total Off-Balance Sheet Gap (5,852) (22,002) (221) 150 5,385 5,184 3,377 2,276 — Total Structural Gap (272,508) 104,042 57,377 78,297 319,442 149,151 (29,683) (86,412) Accumulated Gap (272,508) (168,466) (111,089) (32,792) 286,650 435,801 406,118 319,706 The table below shows in millions of pesos the distribution of the liquidity risk by maturity as of December 31, 2022. 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 134,410 51,335 — — — — — — 83,075 Loans 1,156,553 75,674 118,921 99,078 140,331 310,763 145,584 232,864 33,338 Trade Finance — — — — — — — — — Intragroup 4,287 — — — — — — — 4,287 Securities 606,595 10,347 69,040 1,550 16,256 137,928 149,530 42,434 179,510 Permanent 12,794 — — — — — — — 12,794 Other Assets 2,830,134 — — — — — — — 2,830,134 Total Balance Sheet Assets 4,744,773 137,356 187,961 100,628 156,587 448,691 295,114 275,298 3,143,138 Money Market (235,631) (126,156) (667) (1,199) (1,322) (467) — — (105,820) Deposits (852,726) (255,400) (38,223) (41,931) (24,700) (69,164) (53,900) (369,408) — Trade Finance — — — — — — — — — Intragroup — — — — — — — — — Long-Term Funding (234,698) (7,557) (16,327) (27,461) (44,947) (59,249) (38,701) (11,091) (29,365) Equity (166,838) — — — — — — — (166,838) Other Liabilities (2,794,488) — — — — — — — (2,794,488) Total Balance Sheet Liabilities (4,284,381) (389,113) (55,217) (70,591) (70,969) (128,880) (92,601) (380,499) (3,096,511) Total Balance Sheet Gap 460,392 (251,757) 132,744 30,037 85,618 319,811 202,513 (105,201) 46,627 Total Off-Balance Sheet Gap 104,840 (20,129) (987) 2,642 2,943 4,516 224 3,639 111,991 Total Structural Gap (271,886) 131,757 32,679 88,561 324,327 202,737 (101,562) 158,618 Accumulated Gap (271,886) (140,129) (107,450) (18,889) 305,438 508,175 406,613 565,231 |
Associated entities and conso_2
Associated entities and consolidated subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Associated entities and consolidated subsidiaries | |
Summary of balance sheet and income statement of associated entity | Following is a summary of the balance sheet on the associated entity as of December 31, 2021: 2021 Current assets 5,678 Non-current assets 3,549 Current liabilities (6,119) Non-current liabilities (31) Net assets 3,077 Following is a summary of the income statement on the associated entity as of December 31, 2021: 2021 Revenue 2,399 Expenses (1,728) Operating profit before tax 671 Income tax (178) Profit for the year 493 |
Reconciliation of carrying amount of associated entities | 2021 Reconciliation to carrying amount: Net assets on investment date 2,584 Profit for the period 493 Closing net assets 3,077 Bank’s share in associated entity (percentage) 49 % Bank’s share in associated entity 1,508 Goodwill 669 Sale of merchant contracts (784) Other adjustments (13) Carrying amount as of December 31 1,380 |
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, 2022, 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 % 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) | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement | |||
Employee attendance objective prior to arrival of Omicron variant (as a percent) | 50% | ||
Employees in attendance in corporate offices under current pandemic conditions (as a percent) | 25% | ||
Employee attendance objective (as a percent) | 70% | ||
Cumulative inflation rate period | 3 years | ||
Minimum three-year cumulative inflation rate for classifying economy as inflationary (as a percent) | 26% | ||
Total Shareholders' Equity Attributable to the Parent | |||
Statement | |||
Ownership interest (as a percent) | 96.16% |
Introduction, basis of presen_4
Introduction, basis of presentation of the consolidated financial statements and other information - Total amounts of financial assets not yet reformed (Details) $ in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) contract | Dec. 31, 2022 MXN ($) | |
Disclosure of quantitative information about financial instruments that have yet to transition to alternative benchmark rate [line items] | ||
Percentage of customers contacted at lease once | 87% | 87% |
Percentage of loan portfolio transitioned referenced to USD LIBOR | 31% | 31% |
Financial assets designated at fair value through profit or loss | ||
Disclosure of quantitative information about financial instruments that have yet to transition to alternative benchmark rate [line items] | ||
Derivative assets notional amount | $ 718,980 | |
Derivative liabilities notional amount | 730,886 | |
Financial assets designated at fair value through profit or loss | Derivatives | ||
Disclosure of quantitative information about financial instruments that have yet to transition to alternative benchmark rate [line items] | ||
Total affected contracts by the USD LIBOR Reform | contract | 3,719 | |
Total gross carrying amount of affected contracts | $ 2,946 | |
Financial assets at amortized cost category | Loans to customers | ||
Disclosure of quantitative information about financial instruments that have yet to transition to alternative benchmark rate [line items] | ||
Total affected contracts by the USD LIBOR Reform | contract | 763 | |
Total gross carrying amount of affected contracts | $ 33,488 | |
Financial assets at amortized cost category | Loans to customers | Impairment losses | ||
Disclosure of quantitative information about financial instruments that have yet to transition to alternative benchmark rate [line items] | ||
Total gross carrying amount of unreformed contracts | $ (233) |
Accounting policies - Foreign c
Accounting policies - Foreign currency transactions (Details) - $ / $ | Dec. 31, 2022 | Dec. 31, 2021 |
Accounting policies | ||
Peso/USD (Exchange rate at end of period) | 19.5089 | 20.5075 |
Accounting policies - Basis of
Accounting policies - Basis of consolidation - Investments in associates and joint ventures (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Financial assets | |
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, 2022 | Dec. 31, 2021 |
Financial instruments | ||
Financial assets | $ 1,743,889 | $ 1,616,873 |
Financial liabilities | 1,604,462 | 1,477,724 |
Fair value | ||
Financial instruments | ||
Financial assets | 810,717 | 768,692 |
Financial liabilities | 438,573 | 359,579 |
Fair value | Level 1 | ||
Financial instruments | ||
Financial assets | 413,592 | 356,704 |
Financial liabilities | 28,762 | 62,570 |
Fair value | Level 2 and 3 | ||
Financial instruments | ||
Financial assets | 397,125 | 411,988 |
Financial liabilities | 409,811 | 297,009 |
Financial liabilities at fair value through profit or loss | Fair value | ||
Financial instruments | ||
Financial liabilities | 434,112 | 351,417 |
Financial liabilities at fair value through profit or loss | Fair value | Level 1 | ||
Financial instruments | ||
Financial liabilities | 28,762 | 62,570 |
Financial liabilities at fair value through profit or loss | Fair value | Level 2 and 3 | ||
Financial instruments | ||
Financial liabilities | 405,350 | 288,847 |
Hedging derivatives category | Fair value | ||
Financial instruments | ||
Financial liabilities | 4,461 | 8,162 |
Hedging derivatives category | Fair value | Level 2 and 3 | ||
Financial instruments | ||
Financial liabilities | 4,461 | 8,162 |
Financial assets at fair value through profit or loss category | Fair value | ||
Financial instruments | ||
Financial assets | 484,987 | 361,615 |
Financial assets at fair value through profit or loss category | Fair value | Level 1 | ||
Financial instruments | ||
Financial assets | 110,273 | 106,073 |
Financial assets at fair value through profit or loss category | Fair value | Level 2 and 3 | ||
Financial instruments | ||
Financial assets | 374,714 | 255,542 |
Financial assets at fair value through other comprehensive income category | Fair value | ||
Financial instruments | ||
Financial assets | 315,549 | 395,829 |
Financial assets at fair value through other comprehensive income category | Fair value | Level 1 | ||
Financial instruments | ||
Financial assets | 303,319 | 250,631 |
Financial assets at fair value through other comprehensive income category | Fair value | Level 2 and 3 | ||
Financial instruments | ||
Financial assets | 12,230 | 145,198 |
Hedging derivatives category | Fair value | ||
Financial instruments | ||
Financial assets | 10,181 | 11,248 |
Hedging derivatives category | Fair value | Level 2 and 3 | ||
Financial instruments | ||
Financial assets | $ 10,181 | $ 11,248 |
Accounting policies - Measure_2
Accounting policies - Measurement of FA and FL and recognition of FV changes - Assumptions and Valuation (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
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 |
Amount of CVA | $ 252 | $ 146 |
Amount of DVA | $ 856 | $ 933 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Financial instruments | ||||
Financial assets | $ 1,743,889 | $ 1,616,873 | ||
Fair value | ||||
Financial instruments | ||||
Financial assets | 810,717 | 768,692 | ||
Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 396,055 | 407,739 | ||
Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | 1,070 | 4,249 | $ 622 | $ 3,813 |
Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 397,125 | 411,988 | ||
Debt and equity instruments | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | 54 | 54 | ||
Trading derivative assets | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | 70 | 139 | 622 | 938 |
Debt instruments | ||||
Financial instruments | ||||
Financial assets | 466,396 | 513,568 | ||
Equity investments | ||||
Financial instruments | ||||
Financial assets | 4,760 | 3,563 | ||
Loans and advances - Credit institutions | ||||
Financial instruments | ||||
Financial assets | 143,052 | 94,978 | ||
Loans and advances - Customers | ||||
Financial instruments | ||||
Financial assets | 817,869 | 751,053 | ||
Loans and advances - Customers | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | 946 | 4,056 | 2,875 | |
Financial assets at fair value through profit or loss category | Fair value | ||||
Financial instruments | ||||
Financial assets | 484,987 | 361,615 | ||
Financial assets at fair value through profit or loss category | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 374,644 | 255,403 | ||
Financial assets at fair value through profit or loss category | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | 70 | 139 | ||
Financial assets at fair value through profit or loss category | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 374,714 | 255,542 | ||
Financial assets at fair value through profit or loss category | Debt and equity instruments | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 24,043 | 49,404 | ||
Financial assets at fair value through profit or loss category | Debt and equity instruments | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 24,043 | 49,404 | ||
Financial assets at fair value through profit or loss category | Interest rate options | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 1,277 | 711 | ||
Financial assets at fair value through profit or loss category | Interest rate options | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 1,277 | 711 | ||
Financial assets at fair value through profit or loss category | Market index options | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 170 | 130 | ||
Financial assets at fair value through profit or loss category | Market index options | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 170 | 130 | ||
Financial assets at fair value through profit or loss category | Market index options, European options | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 11 | |||
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 | 11 | |||
Financial assets at fair value through profit or loss category | Market index options, Quanto options | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 152 | 115 | ||
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 | 152 | 115 | ||
Financial assets at fair value through profit or loss category | Market index options, Auto callable | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 1 | 4 | ||
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 | 4 | ||
Financial assets at fair value through profit or loss category | Market index options, Asian (Quanto) | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 17 | |||
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 | 17 | |||
Financial assets at fair value through profit or loss category | Exchange rate options | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 2,321 | 1,874 | ||
Financial assets at fair value through profit or loss category | Exchange rate options | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 2,321 | 1,874 | ||
Financial assets at fair value through profit or loss category | Exchange rate options, European barrier | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 5 | |||
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 | 5 | |||
Financial assets at fair value through profit or loss category | Exchange rate options, Barrier options | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 3 | |||
Financial assets at fair value through profit or loss category | Exchange rate options, Barrier options | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 3 | |||
Financial assets at fair value through profit or loss category | Exchange rate options, European options | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 2,313 | 1,874 | ||
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 | 2,313 | 1,874 | ||
Financial assets at fair value through profit or loss category | Debt instruments | ||||
Financial instruments | ||||
Financial assets | 130,249 | 110,975 | ||
Financial assets at fair value through profit or loss category | Equity investments | ||||
Financial instruments | ||||
Financial assets | 4,063 | 2,764 | ||
Financial assets at fair value through profit or loss category | Swaps | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 218,036 | 129,668 | ||
Financial assets at fair value through profit or loss category | Swaps | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | 70 | 139 | ||
Financial assets at fair value through profit or loss category | Swaps | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 218,106 | 129,807 | ||
Financial assets at fair value through profit or loss category | Exchange rate futures | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 6,938 | 5,130 | ||
Financial assets at fair value through profit or loss category | Exchange rate futures | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 6,938 | 5,130 | ||
Financial assets at fair value through profit or loss category | Loans and advances - Credit institutions | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 102,652 | 58,486 | ||
Financial assets at fair value through profit or loss category | Loans and advances - Credit institutions | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 102,652 | 58,486 | ||
Financial assets at fair value through profit or loss category | Loans and advances - Customers | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 19,207 | 10,000 | ||
Financial assets at fair value through profit or loss category | Loans and advances - Customers | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 19,207 | 10,000 | ||
Financial assets designated at fair value through profit or loss | Loans and advances - Credit institutions | ||||
Financial instruments | ||||
Financial assets | 102,652 | 58,486 | ||
Financial assets designated at fair value through profit or loss | Loans and advances - Customers | ||||
Financial instruments | ||||
Financial assets | 19,207 | 10,000 | ||
Financial assets at fair value through other comprehensive income category | Fair value | ||||
Financial instruments | ||||
Financial assets | 315,549 | 395,829 | ||
Financial assets at fair value through other comprehensive income category | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 11,230 | 141,088 | ||
Financial assets at fair value through other comprehensive income category | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | 1,000 | 4,110 | ||
Financial assets at fair value through other comprehensive income category | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 12,230 | 145,198 | ||
Financial assets at fair value through other comprehensive income category | Debt instruments | ||||
Financial instruments | ||||
Financial assets | 313,906 | 390,974 | $ 355,321 | $ 233,463 |
Financial assets at fair value through other comprehensive income category | Debt instruments | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 11,230 | 141,088 | ||
Financial assets at fair value through other comprehensive income category | Debt instruments | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 11,230 | 141,088 | ||
Financial assets at fair value through other comprehensive income category | Equity investments | ||||
Financial instruments | ||||
Financial assets | 697 | 799 | ||
Financial assets at fair value through other comprehensive income category | Equity investments | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | 54 | 54 | ||
Financial assets at fair value through other comprehensive income category | Equity investments | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 54 | 54 | ||
Financial assets at fair value through other comprehensive income category | Loans and advances - Customers | ||||
Financial instruments | ||||
Financial assets | 946 | 4,056 | ||
Financial assets at fair value through other comprehensive income category | Loans and advances - Customers | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial assets | 946 | 4,056 | ||
Financial assets at fair value through other comprehensive income category | Loans and advances - Customers | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 946 | 4,056 | ||
Hedging derivatives category | Fair value | ||||
Financial instruments | ||||
Financial assets | 10,181 | 11,248 | ||
Hedging derivatives category | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 10,181 | 11,248 | ||
Hedging derivatives category | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 10,181 | 11,248 | ||
Hedging derivatives category | Swaps | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 5,112 | 6,015 | ||
Hedging derivatives category | Swaps | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | 5,112 | 6,015 | ||
Hedging derivatives category | Exchange rate forwards | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial assets | 5,069 | 5,233 | ||
Hedging derivatives category | Exchange rate forwards | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial assets | $ 5,069 | $ 5,233 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Financial instruments | ||||
Financial liabilities | $ 1,604,462 | $ 1,477,724 | ||
Fair value | ||||
Financial instruments | ||||
Financial liabilities | 438,573 | 359,579 | ||
Fair value | Level 2 | ||||
Financial instruments | ||||
Financial liabilities | 409,757 | 296,903 | ||
Fair value | Level 3 | ||||
Financial instruments | ||||
Financial liabilities | 54 | 106 | ||
Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial liabilities | 409,811 | 297,009 | ||
Trading derivative liabilities | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial liabilities | 54 | 106 | $ 490 | $ 791 |
Marketable debt securities | ||||
Financial instruments | ||||
Financial liabilities | 134,913 | 101,682 | ||
Financial liabilities at fair value through profit or loss, category [member] | Market index options, Asian quanto | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial liabilities | 9 | |||
Financial liabilities at fair value through profit or loss, category [member] | Market index options, Asian quanto | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial liabilities | 9 | |||
Financial liabilities at fair value through profit or loss | Fair value | ||||
Financial instruments | ||||
Financial liabilities | 434,112 | 351,417 | ||
Financial liabilities at fair value through profit or loss | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial liabilities | 405,296 | 288,741 | ||
Financial liabilities at fair value through profit or loss | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial liabilities | 54 | 106 | ||
Financial liabilities at fair value through profit or loss | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial liabilities | 405,350 | 288,847 | ||
Financial liabilities at fair value through profit or loss | Deposits - The Central banks | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial liabilities | 31,055 | 23,002 | ||
Financial liabilities at fair value through profit or loss | Deposits - The Central banks | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial liabilities | 31,055 | 23,002 | ||
Financial liabilities at fair value through profit or loss | Deposits - Credit institutions Repurchase Agreements | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial liabilities | 22,818 | 17,846 | ||
Financial liabilities at fair value through profit or loss | Deposits - Credit institutions Repurchase Agreements | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial liabilities | 22,818 | 17,846 | ||
Financial liabilities at fair value through profit or loss | Customer deposits - Repurchase agreements | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial liabilities | 119,769 | 114,078 | ||
Financial liabilities at fair value through profit or loss | Customer deposits - Repurchase agreements | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial liabilities | 119,769 | 114,078 | ||
Financial liabilities at fair value through profit or loss | Interest rate options | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial liabilities | 1,921 | 915 | ||
Financial liabilities at fair value through profit or loss | Interest rate options | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial liabilities | 1,921 | 915 | ||
Financial liabilities at fair value through profit or loss | Market index options | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial liabilities | 1,744 | 264 | ||
Financial liabilities at fair value through profit or loss | Market index options | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial liabilities | 1,744 | 264 | ||
Financial liabilities at fair value through profit or loss | Market index options, European options | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial liabilities | 29 | |||
Financial liabilities at fair value through profit or loss | Market index options, European options | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial liabilities | 29 | |||
Financial liabilities at fair value through profit or loss | Market index options, Auto callable | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial liabilities | 61 | 149 | ||
Financial liabilities at fair value through profit or loss | Market index options, Auto callable | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial liabilities | 61 | 149 | ||
Financial liabilities at fair value through profit or loss | Market index options, Quanto options | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial liabilities | 1,674 | 86 | ||
Financial liabilities at fair value through profit or loss | Market index options, Quanto options | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial liabilities | 1,674 | 86 | ||
Financial liabilities at fair value through profit or loss | Exchange rate options | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial liabilities | 2,278 | 2,063 | ||
Financial liabilities at fair value through profit or loss | Exchange rate options | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial liabilities | 2,278 | 2,063 | ||
Financial liabilities at fair value through profit or loss | Exchange rate options, European barrier | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial liabilities | 32 | 5 | ||
Financial liabilities at fair value through profit or loss | Exchange rate options, European barrier | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial liabilities | 32 | 5 | ||
Financial liabilities at fair value through profit or loss | Exchange rate options, European options | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial liabilities | 2,242 | 2,051 | ||
Financial liabilities at fair value through profit or loss | Exchange rate options, European options | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial liabilities | 2,242 | 2,051 | ||
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 | 4 | 7 | ||
Financial liabilities at fair value through profit or loss | Exchange rate options, American Barrier and Touch options | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial liabilities | 4 | 7 | ||
Financial liabilities at fair value through profit or loss | Swaps | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial liabilities | 220,071 | 126,796 | ||
Financial liabilities at fair value through profit or loss | Swaps | Fair value | Level 3 | ||||
Financial instruments | ||||
Financial liabilities | 54 | 106 | ||
Financial liabilities at fair value through profit or loss | Swaps | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial liabilities | 220,125 | 126,902 | ||
Financial liabilities at fair value through profit or loss | Exchange rate futures | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial liabilities | 5,120 | 3,491 | ||
Financial liabilities at fair value through profit or loss | Exchange rate futures | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial liabilities | 5,120 | 3,491 | ||
Financial liabilities at fair value through profit or loss | Debt instruments | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial liabilities | 27 | |||
Financial liabilities at fair value through profit or loss | Debt instruments | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial liabilities | 27 | |||
Financial liabilities at fair value through profit or loss | Marketable debt securities | ||||
Financial instruments | ||||
Financial liabilities | 520 | 259 | $ 1,363 | |
Financial liabilities at fair value through profit or loss | Marketable debt securities | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial liabilities | 520 | 259 | ||
Financial liabilities at fair value through profit or loss | Marketable debt securities | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial liabilities | 520 | 259 | ||
Hedging derivatives category | Fair value | ||||
Financial instruments | ||||
Financial liabilities | 4,461 | 8,162 | ||
Hedging derivatives category | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial liabilities | 4,461 | 8,162 | ||
Hedging derivatives category | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial liabilities | 4,461 | 8,162 | ||
Hedging derivatives category | Swaps | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial liabilities | 3,576 | 7,924 | ||
Hedging derivatives category | Swaps | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial liabilities | 3,576 | 7,924 | ||
Hedging derivatives category | Exchange rate forwards | Fair value | Level 2 | ||||
Financial instruments | ||||
Financial liabilities | 885 | 238 | ||
Hedging derivatives category | Exchange rate forwards | Fair value | Level 2 and 3 | ||||
Financial instruments | ||||
Financial liabilities | $ 885 | $ 238 |
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 | 12 Months Ended | |||
Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) item loan | Dec. 31, 2022 MXN ($) | Dec. 31, 2021 MXN ($) | |
Financial instruments | ||||
Level 3 maturity period threshold | 20 years | 20 years | ||
CCS USD/Peso | Level 3 | ||||
Financial instruments | ||||
Number of financial instruments | item | 12 | 6 | ||
Notional amount | $ | $ 55 | $ 38 | ||
CCS USD/Peso | Level 3 | Minimum | ||||
Financial instruments | ||||
Maturity period | 20 years | 20 years | ||
Interest rate swaps | Level 3 | ||||
Financial instruments | ||||
Number of financial instruments | item | 4 | 4 | ||
Notional amount | $ | $ 620 | $ 619 | ||
Interest rate swaps | Level 3 | Maximum | ||||
Financial instruments | ||||
Maturity period | 20 years | 20 years | ||
IRS 91-day TIIE | Level 3 | ||||
Financial instruments | ||||
Number of financial instruments | item | 1 | 1 | ||
Notional amount | $ 20 | 20 | ||
Loans Held to Collect and Sell | Level 3 | ||||
Financial instruments | ||||
Number of financial instruments | 6 | 1 | ||
Notional amount | $ | $ 889 | 4,056 | ||
IRS, Fully hedged | Level 3 | ||||
Financial instruments | ||||
Number of financial instruments | item | 3 | |||
Notional amount | $ | $ 7,500 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in financial instruments, Assets | |||
Financial assets at beginning of period | $ 1,616,873 | ||
Financial assets at end of period | 1,743,889 | $ 1,616,873 | |
Changes in financial instruments, Liabilities | |||
Financial liabilities at beginning of period | (1,477,724) | ||
Financial liabilities at end of period | (1,604,462) | (1,477,724) | |
Fair value | |||
Changes in financial instruments, Assets | |||
Financial assets at beginning of period | 768,692 | ||
Financial assets at end of period | 810,717 | 768,692 | |
Changes in financial instruments, Liabilities | |||
Financial liabilities at beginning of period | (359,579) | ||
Financial liabilities at end of period | (438,573) | (359,579) | |
Fair value | Level 3 | |||
Changes in financial instruments, Assets | |||
Financial assets at beginning of period | 4,249 | 622 | $ 3,813 |
Gains/(losses) on financial assets and liabilities (net) | (1) | (305) | (265) |
Purchases | 2,544 | 6 | |
Sales/Transfer out | (1,598) | ||
New issuances | 4,110 | ||
Settlements | (4,124) | (178) | (2,932) |
Financial assets at end of period | 1,070 | 4,249 | 622 |
Changes in financial instruments, Liabilities | |||
Financial liabilities at beginning of period | (106) | ||
Financial liabilities at end of period | (54) | (106) | |
Trading derivative liabilities | Fair value | Level 3 | |||
Changes in financial instruments, Liabilities | |||
Financial liabilities at beginning of period | (106) | (490) | (791) |
Gains/(losses) on financial assets and liabilities (net) | 4 | 277 | (8) |
Purchases | (369) | ||
Transfer out | 24 | 617 | |
Settlements | 48 | 83 | 61 |
Financial liabilities at end of period | (54) | (106) | (490) |
Debt and equity instruments | Fair value | Level 3 | |||
Changes in financial instruments, Assets | |||
Financial assets at beginning of period | 54 | ||
New issuances | 54 | ||
Financial assets at end of period | 54 | 54 | |
Trading derivative assets | Fair value | Level 3 | |||
Changes in financial instruments, Assets | |||
Financial assets at beginning of period | 139 | 622 | 938 |
Gains/(losses) on financial assets and liabilities (net) | (1) | (305) | (265) |
Purchases | 6 | ||
Settlements | (68) | (178) | (57) |
Financial assets at end of period | 70 | 139 | 622 |
Loans and advances - Customers | |||
Changes in financial instruments, Assets | |||
Financial assets at beginning of period | 751,053 | ||
Financial assets at end of period | 817,869 | 751,053 | |
Loans and advances - Customers | Fair value | Level 3 | |||
Changes in financial instruments, Assets | |||
Financial assets at beginning of period | 4,056 | 2,875 | |
Purchases | 2,544 | ||
Sales/Transfer out | (1,598) | ||
New issuances | 4,056 | ||
Settlements | (4,056) | $ (2,875) | |
Financial assets at end of period | $ 946 | $ 4,056 |
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, 2022 MXN ($) | Dec. 31, 2021 MXN ($) |
Financial instruments | ||
Financial assets | $ 1,743,889 | $ 1,616,873 |
Financial liabilities | (1,604,462) | $ (1,477,724) |
Cross currency swaps (CCS) | Level 3 | ||
Financial instruments | ||
Financial assets | 19 | |
Interest rate swaps | Level 3 | ||
Financial instruments | ||
Financial liabilities | (4) | |
Loans and advances - Customers | Level 3 | ||
Financial instruments | ||
Financial assets | $ 889 | |
Forward estimation (non-closed formula solution) | Curve, measurement input | Interest rate swaps | IRS 91-day TIIE | Level 3 | ||
Financial instruments | ||
Significant unobservable input, liabilities | (0.0005) | |
Forward estimation (non-closed formula solution) | Curve, measurement input | Interest rate swaps | IRS 28-day TIIES | Level 3 | ||
Financial instruments | ||
Significant unobservable input, liabilities | 0.0031 | |
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 | 0.0006 | |
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 | 0.0004 | |
Forward estimation (non-closed formula solution) | Bid offer spread, measurement input | Interest rate swaps | IRS, TIIE | Level 3 | ||
Financial instruments | ||
Significant unobservable input, liabilities | 0.0006 | |
Forward estimation (non-closed formula solution) | Bid offer spread, measurement input | Interest rate swaps | CCS USD/Peso | Level 3 | ||
Financial instruments | ||
Significant unobservable input, liabilities | 0.0004 | |
Estimation of credit default probabilities from credit spreads | Credit spread, measurement input | Loans and advances - Customers | Level 3 | Minimum | ||
Financial instruments | ||
Significant unobservable input, assets | 2.50 | |
Estimation of credit default probabilities from credit spreads | Credit spread, measurement input | Loans and advances - Customers | Level 3 | Maximum | ||
Financial instruments | ||
Significant unobservable input, assets | 10.03 |
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, 2022 MXN ($) | |
Interest rate swaps | |
Financial instruments | |
Potential impact on consolidated income statement - Most favorable input | $ 1,000 |
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 | 1,000 |
Potential impact on consolidated income statement - Least favorable input | (1,000) |
Loans and advances - Customers | |
Financial instruments | |
Potential impact on consolidated income statement - Least favorable input | $ (10,000) |
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, 2022 item | |
Cross currency swaps (CCS) | Interest rate swaps | Least Favorable Input, Potential Impact | |
Financial instruments | |
Increase (decrease) of input | 0.0004 |
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 | 0.0004 |
Interest rate swaps | IRS 28-day TIIES | Least Favorable Input, Potential Impact | |
Financial instruments | |
Increase (decrease) of input | (0.0016) |
Historical period | 1 year |
Denominator used in estimating volatility | 2 |
Percentile of movement price distribution | 0.95% |
Interest rate swaps | CCS USD/Peso | Most Favorable Input, Potential Impact | |
Financial instruments | |
Increase (decrease) of input | 0.0016 |
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, 2022 MXN ($) | |
Financial instruments | |
All financial instruments | $ 41 |
Instruments sensitive to interest rate | 39 |
Instruments sensitive to equity market prices | 1 |
Instruments sensitive to foreign currency exchange rates | 19 |
Instruments sensitive to volatility movements | $ 6 |
Time horizon used in measuring VaR that does not fully capture market positions | 1 day |
Confidence level (as a percent) | 99% |
Minimum | |
Financial instruments | |
All financial instruments | $ 25 |
Instruments sensitive to interest rate | 26 |
Instruments sensitive to equity market prices | 0 |
Instruments sensitive to foreign currency exchange rates | 2 |
Instruments sensitive to volatility movements | $ 3 |
Percentage of hedge effectiveness | 80% |
Maximum | |
Financial instruments | |
All financial instruments | $ 103 |
Instruments sensitive to interest rate | 104 |
Instruments sensitive to equity market prices | 3 |
Instruments sensitive to foreign currency exchange rates | 36 |
Instruments sensitive to volatility movements | $ 68 |
Percentage of hedge effectiveness | 125% |
Weighted average | |
Financial instruments | |
All financial instruments | $ 41 |
Instruments sensitive to interest rate | 38 |
Instruments sensitive to equity market prices | 1 |
Instruments sensitive to foreign currency exchange rates | 15 |
Instruments sensitive to volatility movements | $ 10 |
Accounting policies - Offsettin
Accounting policies - Offsetting of financial instruments - assets (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financial assets offset in the consolidated balance sheets | ||
Gross amount of financial assets | $ 360,856 | $ 259,133 |
Net amount of financial assets presented in the balance sheet | 360,856 | 259,133 |
Impact of Master Netting Agreements | (207,185) | (157,112) |
Financial instrument collateral | (123,940) | (68,252) |
Cash collateral | (26,861) | (26,894) |
Net amount | 2,870 | 6,875 |
Financial instruments received as collateral | 123,940 | 68,252 |
Financial derivatives assets | ||
Financial assets offset in the consolidated balance sheets | ||
Gross amount of financial assets | 238,997 | 190,638 |
Net amount of financial assets presented in the balance sheet | 238,997 | 190,638 |
Impact of Master Netting Agreements | (204,724) | (152,313) |
Financial instrument collateral | (4,541) | (4,491) |
Cash collateral | (26,861) | (26,894) |
Net amount | 2,871 | 6,940 |
Reverse repurchase agreements | ||
Financial assets offset in the consolidated balance sheets | ||
Gross amount of financial assets | 121,859 | 68,486 |
Net amount of financial assets presented in the balance sheet | 121,859 | 68,486 |
Impact of Master Netting Agreements | (2,461) | (4,799) |
Financial instrument collateral | (119,398) | (63,687) |
Equity investments | ||
Financial assets offset in the consolidated balance sheets | ||
Gross amount of financial assets | 9 | |
Net amount of financial assets presented in the balance sheet | 9 | |
Financial instrument collateral | (1) | (74) |
Net amount | (1) | (65) |
Financial instruments in connection with securities loans transactions | Equity investments | ||
Financial assets offset in the consolidated balance sheets | ||
Financial instruments received as collateral | $ 1 | $ 74 |
Accounting policies - Offsett_2
Accounting policies - Offsetting of financial instruments - liabilities (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financial liabilities offset in the consolidated balance sheets | ||
Gross amount of financial liabilities | $ 563,731 | $ 468,654 |
Net amount of financial liabilities presented in the balance sheet | 563,731 | 468,654 |
Impact of Master Netting Agreements | (207,185) | (157,112) |
Financial instrument collateral | (336,476) | (291,939) |
Cash collateral | (15,676) | (13,222) |
Net amount | 4,394 | 6,381 |
Threshold amount of Individually significant financial assets | 8 | |
Financial derivatives liabilities | ||
Financial liabilities offset in the consolidated balance sheets | ||
Gross amount of financial liabilities | 235,649 | 184,840 |
Net amount of financial liabilities presented in the balance sheet | 235,649 | 184,840 |
Impact of Master Netting Agreements | (204,724) | (152,313) |
Financial instrument collateral | (7,077) | (6,375) |
Cash collateral | (15,676) | (13,222) |
Net amount | 8,172 | 12,930 |
Repurchase agreements | ||
Financial liabilities offset in the consolidated balance sheets | ||
Gross amount of financial liabilities | 299,320 | 264,260 |
Net amount of financial liabilities presented in the balance sheet | 299,320 | 264,260 |
Impact of Master Netting Agreements | (2,461) | (4,799) |
Financial instrument collateral | (300,467) | (265,862) |
Net amount | (3,608) | (6,401) |
Short positions - Securities loans | ||
Financial liabilities offset in the consolidated balance sheets | ||
Gross amount of financial liabilities | 28,762 | 19,554 |
Net amount of financial liabilities presented in the balance sheet | 28,762 | 19,554 |
Financial instrument collateral | (28,932) | (19,702) |
Net amount | $ (170) | $ (148) |
Accounting policies - Impairmen
Accounting policies - Impairment of financial assets - Thresholds (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Commercial loans to large enterprises | Lifetime PD band, Less than or equal to 0.001746 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.06% |
Commercial loans to large enterprises | Lifetime PD band, 0.001746 - 0.003955 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.08% |
Commercial loans to large enterprises | Lifetime PD band, 0.003955 - 0.006149 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.10% |
Commercial loans to large enterprises | Lifetime PD band, 0.006149 - 0.023039 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.12% |
Commercial loans to large enterprises | Lifetime PD band, 0.023039 - 0.041789 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.14% |
Commercial loans to large enterprises | Lifetime PD band, Greater than 0.041789 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.16% |
Commercial loans to real estate | Lifetime PD band, Less than or equal to 0.015438 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.04% |
Commercial loans to real estate | Lifetime PD band, 0.015438 - 0.045128 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.09% |
Commercial loans to real estate | Lifetime PD band, 0.045128 - 0.107460 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.11% |
Commercial loans to real estate | Lifetime PD band, 0.107460 - 0.136594 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.17% |
Commercial loans to real estate | Lifetime PD band, Greater than 0.136594 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.20% |
Commercial loans (SMEs) | Lifetime PD band, Less than or equal to 0.022138 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.07% |
Commercial loans (SMEs) | Lifetime PD band, 0.022138 - 0.037734 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.09% |
Commercial loans (SMEs) | Lifetime PD band, 0.037734 - 0.062950 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.11% |
Commercial loans (SMEs) | Lifetime PD band, 0.062950 - 0.099364 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.13% |
Commercial loans (SMEs) | Lifetime PD band, 0.099364 - 0.131539 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.23% |
Commercial loans (SMEs) | Lifetime PD band, 0.131539 - 0.175113 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.27% |
Commercial loans (SMEs) | Lifetime PD band, 0.175113 - 0.198299 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.28% |
Commercial loans (SMEs) | Lifetime PD band, 0.198299 - 0.281104 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.29% |
Commercial loans (SMEs) | Lifetime PD band, Greater than 0.281104 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.30% |
Securitized mortgage assets | Lifetime PD band, Less than or equal to 0.058243 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.14% |
Securitized mortgage assets | Lifetime PD band, 0.058243 - 0.082909 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.15% |
Securitized mortgage assets | Lifetime PD band, 0.082909 - 0.146843 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.17% |
Securitized mortgage assets | Lifetime PD band, 0.146843 - 0.164525 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.18% |
Securitized mortgage assets | Lifetime PD band, 0.164525 - 0.189841 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.20% |
Securitized mortgage assets | Lifetime PD band, 0.189841 - 0.260988 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.21% |
Securitized mortgage assets | Lifetime PD band, 0.260988 - 0.350462 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.25% |
Securitized mortgage assets | Lifetime PD band, Greater than 0.350462 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.28% |
Installment loans to individuals - Revolving consumer credit cards loans | Lifetime PD band, Less than or equal to 0.013470 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.09% |
Installment loans to individuals - Revolving consumer credit cards loans | Lifetime PD band, 0.013470 - 0.022584 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.12% |
Installment loans to individuals - Revolving consumer credit cards loans | Lifetime PD band, 0.022584 - 0.030918 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.14% |
Installment loans to individuals - Revolving consumer credit cards loans | Lifetime PD band, 0.030918 - 0.042373 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.16% |
Installment loans to individuals - Revolving consumer credit cards loans | Lifetime PD band, 0.042373 - 0.051001 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.22% |
Installment loans to individuals - Revolving consumer credit cards loans | Lifetime PD band, 0.051001 - 0.063232 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.28% |
Installment loans to individuals - Revolving consumer credit cards loans | Lifetime PD band, 0.063232 - 0.083787 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.34% |
Installment loans to individuals - Revolving consumer credit cards loans | Lifetime PD band, 0.083787 - 0.106176 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.40% |
Installment loans to individuals - Revolving consumer credit cards loans | Lifetime PD band, Greater than 0.106176 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.46% |
Non-revolving consumer loans (payroll loans) | Lifetime PD band, Less than or equal to 0.065107 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.12% |
Non-revolving consumer loans (payroll loans) | Lifetime PD band, 0.065107 - 0.084679 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.15% |
Non-revolving consumer loans (payroll loans) | Lifetime PD band, 0.084679 - 0.114538 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.17% |
Non-revolving consumer loans (payroll loans) | Lifetime PD band, 0.114538 - 0.120289 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.18% |
Non-revolving consumer loans (payroll loans) | Lifetime PD band, 0.120289 - 0.144679 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.19% |
Non-revolving consumer loans (payroll loans) | Lifetime PD band, 0.144679 - 0.172172 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.22% |
Non-revolving consumer loans (payroll loans) | Lifetime PD band, 0.172172 - 0.268165 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.26% |
Non-revolving consumer loans (payroll loans) | Lifetime PD band, Greater than 0.268165 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.30% |
Non-revolving consumer loans (personal loans) | Lifetime PD band, Greater than 0.135945 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.14% |
Non-revolving consumer loans (personal loans) | Lifetime PD band, 0.135945 - 0.172186 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.15% |
Non-revolving consumer loans (personal loans) | Lifetime PD band, 0.172186 - 0.194727 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.17% |
Non-revolving consumer loans (personal loans) | Lifetime PD band, 0.194727 - 0.245958 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.19% |
Non-revolving consumer loans (personal loans) | Lifetime PD band, 0.245958 - 0.26134 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.23% |
Non-revolving consumer loans (personal loans) | Lifetime PD band, 0.26134 - 0.290297 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.25% |
Non-revolving consumer loans (personal loans) | Lifetime PD band, 0.290297 - 0.334647 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.27% |
Non-revolving consumer loans (personal loans) | Lifetime PD band, Greater than 0.334647 | |
Impairment of financial assets | |
Increase in Lifetime PD (basis points) | 0.29% |
Accounting policies - Impairm_2
Accounting policies - Impairment of financial assets - Additional information (Details) | 12 Months Ended |
Dec. 31, 2022 item | |
Impairment of financial assets | |
Lifetime PD threshold period | 30 days |
Backstop criteria threshold period | 30 days |
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 |
Accounting policies - Impairm_3
Accounting policies - Impairment of financial assets - Macroeconomic variable assumptions (Details) | 12 Months Ended |
Dec. 31, 2022 item | |
Baseline | Within one year | |
Financial instruments | |
GDP (as a percent year over year) | 3.50% |
CPI (as a percent year over year) | 8.37% |
Unemployment rates (as a percent of active population) | 3.16% |
Peso/USD (average of period) | 20.29 |
Loans Mortgage (as a percent year over year) | 10.75 |
Loans - Consumer (as a percent year over year) | 13.51 |
Investment funds (as a percent year over year) | 5.57 |
Stock markets (level) | 45,195.97 |
Real estate housing prices (as a percent) | 7.94% |
Baseline | 2022 | |
Financial instruments | |
GDP (as a percent year over year) | 0.18% |
CPI (as a percent year over year) | 5.33% |
Unemployment rates (as a percent of active population) | 3.37% |
Peso/USD (average of period) | 20.86 |
Loans Mortgage (as a percent year over year) | 9.91 |
Loans - Consumer (as a percent year over year) | 9.67 |
Investment funds (as a percent year over year) | 6.52 |
Stock markets (level) | 47,546.16 |
Real estate housing prices (as a percent) | 7.55% |
Baseline | 2023 | |
Financial instruments | |
GDP (as a percent year over year) | 1.29% |
CPI (as a percent year over year) | 4.19% |
Unemployment rates (as a percent of active population) | 3.49% |
Peso/USD (average of period) | 21.30 |
Loans Mortgage (as a percent year over year) | 9.53 |
Loans - Consumer (as a percent year over year) | 8.35 |
Investment funds (as a percent year over year) | 6.12 |
Stock markets (level) | 50,018.56 |
Real estate housing prices (as a percent) | 7.55% |
Baseline | 2024 | |
Financial instruments | |
GDP (as a percent year over year) | 1.67% |
CPI (as a percent year over year) | 3.87% |
Unemployment rates (as a percent of active population) | 3.56% |
Peso/USD (average of period) | 21.71 |
Loans Mortgage (as a percent year over year) | 9.40 |
Loans - Consumer (as a percent year over year) | 7.60 |
Investment funds (as a percent year over year) | 5.77 |
Stock markets (level) | 52,619.52 |
Real estate housing prices (as a percent) | 7.55% |
Upside | Within one year | |
Financial instruments | |
GDP (as a percent year over year) | 3.50% |
CPI (as a percent year over year) | 8.37% |
Unemployment rates (as a percent of active population) | 3.16% |
Peso/USD (average of period) | 20.29 |
Loans Mortgage (as a percent year over year) | 10.75 |
Loans - Consumer (as a percent year over year) | 13.51 |
Investment funds (as a percent year over year) | 5.57 |
Stock markets (level) | 45,195.97 |
Real estate housing prices (as a percent) | 7.94% |
Upside | 2022 | |
Financial instruments | |
GDP (as a percent year over year) | 2.10% |
CPI (as a percent year over year) | 3.74% |
Unemployment rates (as a percent of active population) | 3.22% |
Peso/USD (average of period) | 19.39 |
Loans Mortgage (as a percent year over year) | 11.89 |
Loans - Consumer (as a percent year over year) | 12.02 |
Investment funds (as a percent year over year) | 13.24 |
Stock markets (level) | 58,245.08 |
Real estate housing prices (as a percent) | 10.19% |
Upside | 2023 | |
Financial instruments | |
GDP (as a percent year over year) | 3.92% |
CPI (as a percent year over year) | 2.98% |
Unemployment rates (as a percent of active population) | 3.18% |
Peso/USD (average of period) | 18.94 |
Loans Mortgage (as a percent year over year) | 11.66 |
Loans - Consumer (as a percent year over year) | 10.90 |
Investment funds (as a percent year over year) | 10.71 |
Stock markets (level) | 61,818.33 |
Real estate housing prices (as a percent) | 9.75% |
Upside | 2024 | |
Financial instruments | |
GDP (as a percent year over year) | 2.94% |
CPI (as a percent year over year) | 3% |
Unemployment rates (as a percent of active population) | 3.16% |
Peso/USD (average of period) | 19.13 |
Loans Mortgage (as a percent year over year) | 10.88 |
Loans - Consumer (as a percent year over year) | 10.01 |
Investment funds (as a percent year over year) | 7.44 |
Stock markets (level) | 65,610.78 |
Real estate housing prices (as a percent) | 8.64% |
Downside | Within one year | |
Financial instruments | |
GDP (as a percent year over year) | 3.50% |
CPI (as a percent year over year) | 8.37% |
Unemployment rates (as a percent of active population) | 3.16% |
Peso/USD (average of period) | 20.29 |
Loans Mortgage (as a percent year over year) | 10.75 |
Loans - Consumer (as a percent year over year) | 13.51 |
Investment funds (as a percent year over year) | 5.57 |
Stock markets (level) | 45,195.97 |
Real estate housing prices (as a percent) | 7.94% |
Downside | 2022 | |
Financial instruments | |
GDP (as a percent year over year) | (5.16%) |
CPI (as a percent year over year) | 9.34% |
Unemployment rates (as a percent of active population) | 4.89% |
Peso/USD (average of period) | 27.91 |
Loans Mortgage (as a percent year over year) | (3.66) |
Loans - Consumer (as a percent year over year) | (21.23) |
Investment funds (as a percent year over year) | (6.09) |
Stock markets (level) | 31,696.64 |
Real estate housing prices (as a percent) | 1.76% |
Downside | 2023 | |
Financial instruments | |
GDP (as a percent year over year) | (6.78%) |
CPI (as a percent year over year) | 9.77% |
Unemployment rates (as a percent of active population) | 5.98% |
Peso/USD (average of period) | 25.27 |
Loans Mortgage (as a percent year over year) | 0.18 |
Loans - Consumer (as a percent year over year) | 1.06 |
Investment funds (as a percent year over year) | (4.24) |
Stock markets (level) | 39,901.69 |
Real estate housing prices (as a percent) | 1.31% |
Downside | 2024 | |
Financial instruments | |
GDP (as a percent year over year) | 1.15% |
CPI (as a percent year over year) | 6.52% |
Unemployment rates (as a percent of active population) | 5.69% |
Peso/USD (average of period) | 24.67 |
Loans Mortgage (as a percent year over year) | 2.85 |
Loans - Consumer (as a percent year over year) | 4.46 |
Investment funds (as a percent year over year) | 2.58 |
Stock markets (level) | 41,811.04 |
Real estate housing prices (as a percent) | 3.92% |
Accounting policies - Impairm_4
Accounting policies - Impairment of financial assets - Weightings assigned to macroeconomic scenarios (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Base | ||
Disclosure of detailed information about financial instruments [line items] | ||
Weighting (as a percent) | 50% | 55% |
Upside | ||
Disclosure of detailed information about financial instruments [line items] | ||
Weighting (as a percent) | 15% | 15% |
Downside | ||
Disclosure of detailed information about financial instruments [line items] | ||
Weighting (as a percent) | 35% | 30% |
Accounting policies - Impairm_5
Accounting policies - Impairment of financial assets - Sensitivity analysis and Written-off loans (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Small and medium size enterprises loans | |
Financial instruments | |
Loan write off threshold period | 181 days |
Revolving SMEs loans | |
Financial instruments | |
Loan write off threshold period | 151 days |
Securitized mortgage assets | |
Financial instruments | |
Loan write off threshold period | 36 months |
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) | (19.70%) |
Most Favorable Input, Potential Impact | Non-retail loan portfolio | |
Financial instruments | |
Weightings (as a percent) | (16.40%) |
Least Favorable Input, Potential Impact | |
Financial instruments | |
Sensitivity analysis, assumed weighting (as a percent) | 100% |
Least Favorable Input, Potential Impact | Retail loan portfolio | |
Financial instruments | |
Weightings (as a percent) | 17.70% |
Least Favorable Input, Potential Impact | Non-retail loan portfolio | |
Financial instruments | |
Weightings (as a percent) | 14% |
Accounting policies - Change in
Accounting policies - Change in accounting estimates and accounting policies - IFRS 16 - Leases (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Initial adoption of IFRS 16 | |||
Lease liabilities | $ 6,965 | $ 5,716 | $ 6,131 |
Right-of-use assets | $ 6,264 | $ 5,175 | $ 5,643 |
Accounting policies - Tangible
Accounting policies - Tangible assets (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Tangible assets | |
Approved budget period | 5 years |
Buildings for own use | Minimum | |
Tangible assets | |
Average annual rate (as a percent) | 2% |
Buildings for own use | Maximum | |
Tangible assets | |
Average annual rate (as a percent) | 5% |
Furniture and vehicles | Minimum | |
Tangible assets | |
Average annual rate (as a percent) | 10% |
Furniture and vehicles | Maximum | |
Tangible assets | |
Average annual rate (as a percent) | 20% |
Information technology equipment and fixtures | |
Tangible assets | |
Average annual rate (as a percent) | 25% |
Other fixtures | Minimum | |
Tangible assets | |
Average annual rate (as a percent) | 5% |
Other fixtures | Maximum | |
Tangible assets | |
Average annual rate (as a percent) | 20% |
Significant events - Acquisitio
Significant events - Acquisition of Elavon Mexico Holding Company (Details) - Santander Merchant Platform Solutions Mexico, S.A. de C.V. $ in Millions | Mar. 13, 2020 MXN ($) |
Disclosure of detailed information about business combination [line items] | |
Ownership interest (as a percent) | 49% |
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% |
Significant events - Senior Uns
Significant events - Senior Unsecured Notes (Details) - Senior Unsecured Note, April 17, 2025 - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Apr. 14, 2020 |
Disclosure of detailed information about borrowings [line items] | |||
Notes issued | $ 1,750 | ||
Interest rate (as a percent) | 5.38% | 5.38% | 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, 2020 MXN ($) | |
Merger | |
Assets | $ 63,703 |
Liabilities | $ 54,925 |
Significant events - Merchant b
Significant events - Merchant business (Details) - Santander Merchant Platform Solutions Mexico, S.A. de C.V. - MXN ($) $ in Millions | Jun. 01, 2022 | Jun. 01, 2021 | Dec. 03, 2021 | Dec. 03, 2020 |
Disclosure of associates [line items] | ||||
Sale price of acquisition contracts | $ 1,600 | $ 1,600 | ||
Gain (loss) in acquisition contracts | $ 816 | $ 816 |
Significant events - Exchange O
Significant events - Exchange Offer (Details) $ / shares in Units, $ in Millions | Nov. 03, 2021 MXN ($) $ / shares | Nov. 02, 2021 | Dec. 31, 2022 MXN ($) | Nov. 03, 2022 MXN ($) | Dec. 31, 2021 MXN ($) | Nov. 03, 2021 $ / shares | Mar. 23, 2021 |
Other capital disclosures | |||||||
Accumulated reserves | $ 120,698 | $ 118,748 | |||||
Other liabilities | $ 24,675 | $ 19,878 | |||||
Banco Santander, S.A. (Spain) | |||||||
Other capital disclosures | |||||||
Percentage of repurchase of outstanding shares | (8.30%) | ||||||
Ownership interest (as a percent) | 96.16% | 91.64% | |||||
Accumulated reserves | $ (264) | ||||||
Other liabilities | $ 264 | ||||||
Banco Santander, S.A. (Spain) | ADS | |||||||
Other capital disclosures | |||||||
Share price | (per share) | $ 26.50 | $ 132.50 |
Significant events - Issuance o
Significant events - Issuance of unsecured notes at fixed and floating rate (Details) shares in Millions, $ in Millions, $ in Millions | Jul. 14, 2022 MXN ($) | Apr. 04, 2022 MXN ($) | Nov. 30, 2021 MXN ($) | Sep. 15, 2021 shares | Dec. 08, 2021 USD ($) |
Perpetual Subordinated Non-Preferred Contingent Convertible Additional Tier I Capital Notes | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Loan amount granted | $ 500 | ||||
Financial liabilities at amortized cost | Perpetual Subordinated Non-Preferred Contingent Convertible Additional Tier I Capital Notes | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Number Of Debt Securities Issued | shares | 700 | ||||
Maturity recalculation term | 5 years | ||||
Maturity period of debt instruments issued | 5 years | ||||
Interest rate (as a percent) | 4.625% | ||||
Prepaid maturity period | 5 years | ||||
Unsecured notes | Fixed interest rate | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Notes issued | $ 2,790 | $ 6,500 | |||
Notes term | 7 years | 7 years | |||
Interest rate (as a percent) | 8.72% | 8.08% | |||
Interest payment term | 182 days | 182 days | |||
Unsecured notes | Floating interest rate | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Notes issued | $ 5,000 | $ 7,100 | $ 3,500 | ||
Notes term | 4 years | 5 years | 4 years | ||
Interest rate (as a percent) | 5.28% | ||||
Interest payment term | 28 days | 28 days | 28 days | ||
Percentage of surcharge on TIIE index | 0.29% | ||||
Unsecured notes | Floating interest rate | IRS 28-day TIIES | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest payment term | 28 days | 28 days | |||
Percentage of surcharge on TIIE index | 0.07% | 0.05% |
Significant events - Support Pr
Significant events - Support Program (Details) - loan | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial instruments | |||
Modification period of loans and advances to customers | 4 months | ||
Additional modification period of loans and advances to customers | 2 months | ||
Number of loans registered/participating in the Support Program | 0 | 0 | 531,636 |
Significant events - Labor refo
Significant events - Labor reform (Details) | Apr. 23, 2021 employee |
Significant events | |
Contract renewal term | 3 years |
Number of bank employees hired | 4,891 |
Number of bank employees transferred | 1,044 |
Distribution of the Bank's pr_3
Distribution of the Bank's profit and Earnings per share (Details) - MXN ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||||
Jul. 28, 2022 | Jun. 28, 2022 | Nov. 05, 2021 | Jun. 18, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Distribution of the Bank's profit and Earnings per share | |||||||
Profit for the year | $ 24,108 | $ 20,801 | $ 18,974 | ||||
Dividends declared | $ 8,838 | $ 9,040 | $ 1,867 | $ 3,054 | $ 17,878 | $ 4,921 | |
Dividend per share (in pesos per share) | $ 2.64 | $ 0.73 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Basic earnings per share | |||
Profit attributable to the Parent | $ 24,108 | $ 20,801 | $ 18,974 |
Weighted average number of shares outstanding | 6,781,322,904 | 6,775,682,106 | 6,776,640,349 |
Basic earnings per share (in pesos per share) | $ 3.56 | $ 3.07 | $ 2.80 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Diluted earnings per share | |||
Profit attributable to the Parent | $ 24,108 | $ 20,801 | $ 18,974 |
Weighted average number of shares outstanding | 6,781,322,904 | 6,775,682,106 | 6,776,640,349 |
Dilutive effect of rights on shares | 5,671,453 | 11,312,251 | 10,354,008 |
Adjusted number of shares | 6,786,994,357 | 6,786,994,357 | 6,786,994,357 |
Diluted earnings per share (in pesos per share) | $ 3.55 | $ 3.06 | $ 2.80 |
Remuneration and other benefi_2
Remuneration and other benefit paid to the Bank's directors, executive officers and other key management personnel (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 MXN ($) item | Dec. 31, 2021 MXN ($) | Dec. 31, 2020 MXN ($) | |
Compensation | |||
Number of vice-presidency positions created and named | item | 2 | ||
Current executive directors | |||
Compensation | |||
Compensation and benefits | $ 37 | $ 30 | $ 23 |
Executive officers | |||
Compensation | |||
Compensation and benefits | 504 | 453 | 431 |
Post-employment benefits | 572 | 537 | $ 522 |
Loans receivable | $ 197 | $ 183 |
Cash and balances with the Ce_3
Cash and balances with the Central Bank (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Cash and balances with the Central Bank. | ||
Cash | $ 35,143 | $ 26,361 |
Central Bank compulsory deposits | 23,978 | 23,978 |
Deposits in the Central Bank | 13,623 | 12,705 |
Accrued interest | 71 | 29 |
Cash and balances with the Central Bank | 72,815 | 63,073 |
Special deposit | $ 7,700 | $ 7,700 |
Loans and advances to credit _3
Loans and advances to credit institutions - Classification (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financial assets | ||
Financial assets | $ 1,743,889 | $ 1,616,873 |
Loans and advances - Credit institutions | ||
Financial assets | ||
Financial assets | 143,052 | 94,978 |
Financial assets designated at fair value through profit or loss | Loans and advances - Credit institutions | ||
Financial assets | ||
Financial assets | 102,652 | 58,486 |
Financial assets at amortized cost category | Loans and advances - Credit institutions | ||
Financial assets | ||
Financial assets | $ 40,400 | $ 36,492 |
Loans and advances to credit _4
Loans and advances to credit institutions - Type (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financial assets | ||
Total financial assets | $ 1,743,889 | $ 1,616,873 |
Loans and advances - Credit institutions | ||
Financial assets | ||
Reciprocal accounts | 17,583 | 17,820 |
Guarantee deposits - Collateral delivered for OTC financial derivatives transactions (Note 32) | 14,585 | 13,234 |
Reverse repurchase agreements | 102,652 | 58,486 |
Other accounts | 8,232 | 5,438 |
Total financial assets | 143,052 | 94,978 |
Loans and advances - Credit institutions | Mexican peso | ||
Financial assets | ||
Total financial assets | 103,094 | 83,382 |
Loans and advances - Credit institutions | US dollar | ||
Financial assets | ||
Total financial assets | 39,759 | 11,579 |
Loans and advances - Credit institutions | Other currencies | ||
Financial assets | ||
Total financial assets | $ 199 | $ 17 |
Loans and advances to credit _5
Loans and advances to credit institutions - Restricted assets (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financial assets | ||
Financial instruments received as collateral | $ 123,940 | $ 68,252 |
Financial instruments in connection with derivative transactions in organized markets | ||
Financial assets | ||
Financial assets pledged as collateral | 6,530 | 6,261 |
Financial instrument in connection with OTC derivative transactions | Loans and advances - Credit institutions | Financial assets at amortized cost category | ||
Financial assets | ||
Financial assets pledged as collateral | 14,585 | 13,234 |
Financial instruments in connection with repurchase agreement transactions | Loans and advances - Credit institutions | Financial assets designated at fair value through profit or loss | ||
Financial assets | ||
Financial instruments received as collateral | $ 102,431 | $ 58,235 |
Debt Instruments - Classificati
Debt Instruments - Classification (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Financial assets | ||||
Financial assets | $ 1,743,889 | $ 1,616,873 | ||
Debt instruments | ||||
Financial assets | ||||
Financial assets | 466,396 | 513,568 | ||
Financial assets at fair value through profit or loss category | Debt instruments | ||||
Financial assets | ||||
Financial assets | 130,249 | 110,975 | ||
Financial assets at fair value through other comprehensive income category | Debt instruments | ||||
Financial assets | ||||
Financial assets | 313,906 | 390,974 | $ 355,321 | $ 233,463 |
Financial assets at amortized cost category | Debt instruments | ||||
Financial assets | ||||
Financial assets | $ 22,241 | $ 11,619 |
Debt Instruments - Type and cur
Debt Instruments - Type and currency (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financial assets | ||
Financial assets | $ 1,743,889 | $ 1,616,873 |
Debt instruments | ||
Financial assets | ||
Financial assets | 466,396 | 513,568 |
Debt instruments | Mexican peso | ||
Financial assets | ||
Financial assets | 343,790 | 310,871 |
Debt instruments | US dollar | ||
Financial assets | ||
Financial assets | 79,300 | 152,971 |
Debt instruments | Brazilian real | ||
Financial assets | ||
Financial assets | 32,715 | 25,744 |
Debt instruments | Other currencies | ||
Financial assets | ||
Financial assets | 10,591 | 23,982 |
Issued by financial institutions | ||
Financial assets | ||
Financial assets | 8,492 | 5,601 |
Other debt securities | ||
Financial assets | ||
Financial assets | 241 | 5,140 |
Mexico | Government debt securities | ||
Financial assets | ||
Financial assets | 355,658 | 336,872 |
Financial assets pledged as collateral | 1,417 | 1,509 |
Foreign | Government debt securities | ||
Financial assets | ||
Financial assets | 102,005 | 165,955 |
Financial assets pledged as collateral | 4,866 | |
BRAZIL | Government debt securities | ||
Financial assets | ||
Financial assets | 32,715 | 25,744 |
UNITED STATES | US Government Treasury Bills (T-BILLS) | ||
Financial assets | ||
Financial assets | $ 69,290 | 113,155 |
UNITED STATES | US Government Treasury Notes (T-NOTES) | ||
Financial assets | ||
Financial assets | $ 27,056 |
Debt Instruments - FV through p
Debt Instruments - FV through profit or loss (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 MXN ($) | Dec. 31, 2021 MXN ($) | |
Financial assets | ||
Financial assets | $ 1,743,889 | $ 1,616,873 |
Debt instruments | ||
Financial assets | ||
Financial assets | $ 466,396 | $ 513,568 |
Federal Mexican Government Development Bonds in UDIS (UDIBONDS) | ||
Financial assets | ||
UDI equivalent (in pesos) | 7.64680 | 7.10823 |
US Government Treasury Bills (T-BILLS) | UNITED STATES | ||
Financial assets | ||
Financial assets | $ 69,290 | $ 113,155 |
US Government Treasury Notes (T-NOTES) | UNITED STATES | ||
Financial assets | ||
Financial assets | 27,056 | |
Financial assets at fair value through profit or loss category | Debt instruments | ||
Financial assets | ||
Financial assets | 130,249 | 110,975 |
Financial assets at fair value through profit or loss category | Federal Treasury Securities (CETES) | ||
Financial assets | ||
Financial assets | 9,210 | 10,311 |
Financial assets at fair value through profit or loss category | United Mexican States Bonds (UMS) | ||
Financial assets | ||
Financial assets | 62 | 168 |
Financial assets at fair value through profit or loss category | Federal Mexican Government Development Bonds (BONDS) | ||
Financial assets | ||
Financial assets | 51,817 | 26,132 |
Financial assets at fair value through profit or loss category | M and M10 Mexican Government Bonds (M Bonds) | ||
Financial assets | ||
Financial assets | 15,294 | 16,652 |
Financial assets at fair value through profit or loss category | Mexican Bank Saving Protection Bonds (BPATs) | ||
Financial assets | ||
Financial assets | 3,463 | 14,161 |
Financial assets at fair value through profit or loss category | Federal Mexican Government Development Bonds in UDIS (UDIBONDS) | ||
Financial assets | ||
Financial assets | 7,587 | 8,232 |
Financial assets at fair value through profit or loss category | US Government Treasury Bills (T-BILLS) | UNITED STATES | ||
Financial assets | ||
Financial assets | 34,324 | 13,328 |
Financial assets at fair value through profit or loss category | US Government Treasury Notes (T-NOTES) | UNITED STATES | ||
Financial assets | ||
Financial assets | 11,495 | |
Financial assets at fair value through profit or loss category | Debt securities, Other than government debt securities | ||
Financial assets | ||
Financial assets | $ 8,492 | $ 10,496 |
Debt Instruments - FV through_2
Debt Instruments - FV through profit or loss restricted assets (Details) - Debt instruments - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financial instrument in connection with OTC derivative transactions | Financial assets at fair value through profit or loss category | ||
Financial assets | ||
Financial assets pledged as collateral | $ 1,417 | $ 6,375 |
Financial instruments in connection with securities loans transactions | Financial assets at fair value through profit or loss category | ||
Financial assets | ||
Financial assets pledged as collateral | 0 | 1,988 |
Financial instruments in connection with securities loans transactions | Financial assets at fair value through profit or loss category | Central Bank, Lender | ||
Financial assets | ||
Financial assets pledged as collateral | 1,565 | |
Financial instruments in connection with securities loans transactions | Financial assets at fair value through other comprehensive income category | ||
Financial assets | ||
Financial assets pledged as collateral | 28,932 | 17,633 |
Financial instruments in connection with securities loans transactions | Financial assets at fair value through other comprehensive income category | Central Bank, Lender | ||
Financial assets | ||
Financial assets pledged as collateral | 28,353 | 13,999 |
Financial instruments in connection with repurchase agreement transactions | Financial assets at fair value through profit or loss category | ||
Financial assets | ||
Financial assets pledged as collateral | 86,052 | 87,653 |
Financial instruments in connection with repurchase agreement transactions | Financial assets at fair value through other comprehensive income category | ||
Financial assets | ||
Financial assets pledged as collateral | $ 119,213 | $ 103,095 |
Debt Instruments - FVTOCI (Deta
Debt Instruments - FVTOCI (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Financial assets | ||||
Financial assets | $ 1,743,889 | $ 1,616,873 | ||
Debt instruments | ||||
Financial assets | ||||
Financial assets | 466,396 | 513,568 | ||
Mexico | Government debt securities | ||||
Financial assets | ||||
Financial assets | 355,658 | 336,872 | ||
Foreign | Government debt securities | ||||
Financial assets | ||||
Financial assets | 102,005 | 165,955 | ||
BRAZIL | Government debt securities | ||||
Financial assets | ||||
Financial assets | 32,715 | 25,744 | ||
Financial assets at fair value through other comprehensive income category | Debt instruments | ||||
Financial assets | ||||
Financial assets | 313,906 | 390,974 | $ 355,321 | $ 233,463 |
Financial assets at fair value through other comprehensive income category | Debt instruments | Gross carrying amount | ||||
Financial assets | ||||
Financial assets | 313,906 | 390,974 | ||
Financial assets at fair value through other comprehensive income category | Debt securities, Other than government debt securities | ||||
Financial assets | ||||
Financial assets | 241 | 245 | ||
Financial assets at fair value through other comprehensive income category | Debt securities, Other than government debt securities | Gross carrying amount | ||||
Financial assets | ||||
Financial assets | 241 | 245 | ||
Financial assets at fair value through other comprehensive income category | Mexico | Government debt securities | Gross carrying amount | ||||
Financial assets | ||||
Financial assets | 235,139 | 237,347 | ||
Financial assets at fair value through other comprehensive income category | Mexico | United Mexican States Bonds (UMS) | ||||
Financial assets | ||||
Financial assets | 20,539 | 36,573 | ||
Financial assets at fair value through other comprehensive income category | Mexico | M, M3 and M5 Mexican Government Bonds (M Bonds) | ||||
Financial assets | ||||
Financial assets | 211,518 | 197,658 | ||
Financial assets at fair value through other comprehensive income category | Mexico | Mexican Bank Saving Protection Bonds (BPATs) | ||||
Financial assets | ||||
Financial assets | 18,043 | 12,250 | ||
Financial assets at fair value through other comprehensive income category | Mexico | Federal Mexican Government Development Bonds in UDIS (UDIBONDS) | ||||
Financial assets | ||||
Financial assets | 3,082 | 3,116 | ||
Financial assets at fair value through other comprehensive income category | Foreign | Government debt securities | Gross carrying amount | ||||
Financial assets | ||||
Financial assets | 60,483 | 141,132 | ||
Financial assets at fair value through other comprehensive income category | UNITED STATES | Government debt securities | ||||
Financial assets | ||||
Financial assets | 34,966 | 99,827 | ||
Financial assets at fair value through other comprehensive income category | UNITED STATES | US Government Treasury Notes (TNOTE) | ||||
Financial assets | ||||
Financial assets | 15,561 | |||
Financial assets at fair value through other comprehensive income category | BRAZIL | Government debt securities | ||||
Financial assets | ||||
Financial assets | $ 25,517 | $ 25,744 |
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, 2022 | Dec. 31, 2021 |
Financial instruments in connection with repurchase agreement transactions | ||
Financial assets | ||
Financial assets pledged as collateral for liabilities or contingent liabilities | $ 119,213 | $ 103,095 |
Financial instruments in connection with securities loans transactions | ||
Financial assets | ||
Financial assets pledged as collateral for liabilities or contingent liabilities | $ 28,932 | $ 17,633 |
Debt Instruments - Carrying amo
Debt Instruments - Carrying amount of financial assets at FV through OCI (Details) - MXN ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for impairment losses | ||||
Financial assets | $ 1,743,889 | $ 1,616,873 | ||
Debt instruments | ||||
Allowance for impairment losses | ||||
Financial assets | 466,396 | 513,568 | ||
Government debt securities | Mexico | ||||
Allowance for impairment losses | ||||
Financial assets | 355,658 | 336,872 | ||
Government debt securities | Foreign | ||||
Allowance for impairment losses | ||||
Financial assets | 102,005 | 165,955 | ||
Financial assets at fair value through other comprehensive income category | Debt instruments | ||||
Allowance for impairment losses | ||||
Financial assets | 313,906 | 390,974 | $ 355,321 | $ 233,463 |
Transfers out of Level 2 into Level 1 | 0 | 0 | ||
Financial assets at fair value through other comprehensive income category | Debt instruments | Gross carrying amount | ||||
Allowance for impairment losses | ||||
Financial assets | 313,906 | 390,974 | ||
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 | 313,906 | 390,974 | ||
Financial assets at fair value through other comprehensive income category | Debt instruments | Stage 1 | Gross carrying amount | ||||
Allowance for impairment losses | ||||
Financial assets | 313,906 | 390,974 | ||
Financial assets at fair value through other comprehensive income category | Government debt securities | Mexico | Gross carrying amount | ||||
Allowance for impairment losses | ||||
Financial assets | 235,139 | 237,347 | ||
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 | 235,139 | 237,347 | ||
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 | 235,139 | 237,347 | ||
Financial assets at fair value through other comprehensive income category | Government debt securities | Foreign | Gross carrying amount | ||||
Allowance for impairment losses | ||||
Financial assets | 60,483 | 141,132 | ||
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 | 60,483 | 141,132 | ||
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 | 60,483 | 141,132 | ||
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 | 18,043 | 12,250 | ||
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 | 18,043 | 12,250 | ||
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 | 18,043 | 12,250 | ||
Financial assets at fair value through other comprehensive income category | Debt securities, Other than government debt securities | ||||
Allowance for impairment losses | ||||
Financial assets | 241 | 245 | ||
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 | 241 | 245 | ||
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 | 241 | 245 | ||
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 | $ 241 | $ 245 |
Debt Instruments - Issuer ratin
Debt Instruments - Issuer rating (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Financial assets | ||||
Financial assets | $ 1,743,889 | $ 1,616,873 | ||
Debt instruments | ||||
Financial assets | ||||
Financial assets | $ 466,396 | $ 513,568 | ||
Financial assets (as a percent) | 100% | 100% | ||
Debt instruments | AAA | ||||
Financial assets | ||||
Financial assets | $ 69,290 | $ 140,211 | ||
Financial assets (as a percent) | 14.86% | 27.30% | ||
Debt instruments | A | ||||
Financial assets | ||||
Financial assets | $ 341,337 | $ 306,795 | ||
Financial assets (as a percent) | 73.19% | 59.74% | ||
Debt instruments | BBB | ||||
Financial assets | ||||
Financial assets | $ 20,842 | $ 36,986 | ||
Financial assets (as a percent) | 4.47% | 7.20% | ||
Debt instruments | BB | ||||
Financial assets | ||||
Financial assets | $ 2,211 | $ 3,832 | ||
Financial assets (as a percent) | 0.47% | 0.75% | ||
Debt instruments | Below B | ||||
Financial assets | ||||
Financial assets | $ 32,716 | $ 25,744 | ||
Financial assets (as a percent) | 7.01% | 5.01% | ||
Private Debt | ||||
Financial assets | ||||
Financial assets | $ 8,733 | $ 10,740 | ||
Private Debt | A | ||||
Financial assets | ||||
Financial assets | 8,492 | 10,495 | ||
Private Debt | BBB | ||||
Financial assets | ||||
Financial assets | 241 | 245 | ||
Sovereign Debt | ||||
Financial assets | ||||
Financial assets | 457,663 | 502,828 | ||
Sovereign Debt | AAA | ||||
Financial assets | ||||
Financial assets | 69,290 | 140,211 | ||
Sovereign Debt | A | ||||
Financial assets | ||||
Financial assets | 332,845 | 296,300 | ||
Sovereign Debt | BBB | ||||
Financial assets | ||||
Financial assets | 20,601 | 36,741 | ||
Sovereign Debt | BB | ||||
Financial assets | ||||
Financial assets | 2,211 | 3,832 | ||
Sovereign Debt | Below B | ||||
Financial assets | ||||
Financial assets | 32,716 | 25,744 | ||
Financial assets at fair value through other comprehensive income category | Debt instruments | ||||
Financial assets | ||||
Financial assets | $ 313,906 | $ 390,974 | $ 355,321 | $ 233,463 |
Debt Instruments - Financial _2
Debt Instruments - Financial assets at amortized cost (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financial assets | ||
Financial assets | $ 1,743,889 | $ 1,616,873 |
Debt instruments | ||
Financial assets | ||
Financial assets | 466,396 | 513,568 |
Government debt securities | Foreign | ||
Financial assets | ||
Financial assets | 102,005 | 165,955 |
Government debt securities | BRAZIL | ||
Financial assets | ||
Financial assets | 32,715 | 25,744 |
Financial assets at amortized cost category | Debt instruments | ||
Financial assets | ||
Financial assets | 22,241 | 11,619 |
Transfers out of Level 2 into Level 1 | 0 | 0 |
Financial assets at amortized cost category | Debt instruments | Unquoted | ||
Financial assets | ||
Financial assets | 2,211 | 3,831 |
Financial assets at amortized cost category | Debt instruments | Quoted | ||
Financial assets | ||
Financial assets | 20,030 | 7,788 |
Financial assets at amortized cost category | Special CETES | ||
Financial assets | ||
Financial assets | 2,211 | 3,831 |
Financial assets at amortized cost category | Bonos de Regulacion Monetaria Reportables (BREMS R) | ||
Financial assets | ||
Financial assets | 7,799 | $ 7,788 |
Financial assets at amortized cost category | CETES | ||
Financial assets | ||
Financial assets | 2,375 | |
Financial assets at amortized cost category | Government debt securities | BRAZIL | ||
Financial assets | ||
Financial assets | 7,198 | |
Financial assets at amortized cost category | MX and MX Mexican Government Bonds (M Bonds) | ||
Financial assets | ||
Financial assets | 1,666 | |
Financial assets at amortized cost category | Federal Mexican Government Development Bonds in UDIS (UDIBONDS) | ||
Financial assets | ||
Financial assets | $ 992 |
Debt Instruments - Financial _3
Debt Instruments - Financial assets at amortized cost restricted assets (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
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 | $ 7,720 | $ 7,709 |
Debt Instruments - Carrying a_2
Debt Instruments - Carrying amount of financial assets at amortized cost (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Allowance for impairment losses | ||
Financial assets | $ 1,743,889 | $ 1,616,873 |
Debt instruments | ||
Allowance for impairment losses | ||
Financial assets | 466,396 | 513,568 |
Government debt securities | Mexico | ||
Allowance for impairment losses | ||
Financial assets | 355,658 | 336,872 |
Government debt securities | Foreign | ||
Allowance for impairment losses | ||
Financial assets | 102,005 | 165,955 |
Financial assets at amortized cost category | Debt instruments | ||
Allowance for impairment losses | ||
Financial assets | 22,241 | 11,619 |
Financial assets at amortized cost category | Debt instruments | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | 22,241 | |
Financial assets at amortized cost category | Debt instruments | Subtotal of Stage 1 and 2 | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | 22,241 | |
Financial assets at amortized cost category | Debt instruments | Stage 1 | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | 22,241 | |
Financial assets at amortized cost category | Government debt securities | Mexico | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | 7,244 | 11,619 |
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 | 7,244 | 11,619 |
Financial assets at amortized cost category | Government debt securities | Mexico | Stage 1 | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | 7,244 | $ 11,619 |
Financial assets at amortized cost category | Government debt securities | Foreign | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | 7,198 | |
Financial assets at amortized cost category | Government debt securities | Foreign | Subtotal of Stage 1 and 2 | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | 7,198 | |
Financial assets at amortized cost category | Government debt securities | Foreign | Stage 1 | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | 7,198 | |
Financial assets at amortized cost category | Debt instruments issued by the Central Bank | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | 7,799 | |
Financial assets at amortized cost category | Debt instruments issued by the Central Bank | Subtotal of Stage 1 and 2 | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | 7,799 | |
Financial assets at amortized cost category | Debt instruments issued by the Central Bank | Stage 1 | Gross carrying amount | ||
Allowance for impairment losses | ||
Financial assets | $ 7,799 |
Debt Instruments - Changes in f
Debt Instruments - Changes in financial assets at FVTOCI (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial assets | |||
Financial assets at beginning of period | $ 1,616,873 | ||
Valuation adjustments, FVTOCI | (6,705) | $ (6,724) | $ 3,565 |
Amounts reclassified to the consolidated income statement, FVTOCI | (41) | (781) | (843) |
Financial assets at end of period | 1,743,889 | 1,616,873 | |
Debt instruments | |||
Financial assets | |||
Financial assets at beginning of period | 513,568 | ||
Valuation adjustments, FVTOCI | (6,705) | (6,724) | |
Financial assets at end of period | 466,396 | 513,568 | |
Financial assets at fair value through other comprehensive income category | Debt instruments | |||
Financial assets | |||
Financial assets at beginning of period | 390,974 | 355,321 | 233,463 |
Net additions/(disposals), FVTOCI | (70,267) | 43,105 | 119,141 |
Valuation adjustments, FVTOCI | (6,705) | (6,724) | 3,560 |
Amounts reclassified to the consolidated income statement, FVTOCI, net of tax | (96) | (728) | (843) |
Amounts reclassified to the consolidated income statement, FVTOCI | (113) | (781) | |
Financial assets at end of period | $ 313,906 | $ 390,974 | $ 355,321 |
Debt Instruments - Allowance fo
Debt Instruments - Allowance for impairment losses (Details) - MXN ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for impairment losses | ||||
Financial assets | $ (1,743,889) | $ (1,616,873) | ||
Impairment losses on financial assets | 16,083 | 19,229 | $ 21,799 | |
Debt instruments | ||||
Allowance for impairment losses | ||||
Financial assets | (466,396) | (513,568) | ||
Debt instruments | Impairment losses | ||||
Allowance for impairment losses | ||||
Financial assets | 22 | 39 | ||
Debt instruments | Stage 1 | Impairment losses | ||||
Allowance for impairment losses | ||||
Financial assets | 22 | 39 | ||
Government debt securities | Mexico | ||||
Allowance for impairment losses | ||||
Financial assets | (355,658) | (336,872) | ||
Government debt securities | Foreign | ||||
Allowance for impairment losses | ||||
Financial assets | (102,005) | (165,955) | ||
Issued by financial institutions | ||||
Allowance for impairment losses | ||||
Financial assets | (8,492) | (5,601) | ||
Other debt securities | ||||
Allowance for impairment losses | ||||
Financial assets | (241) | (5,140) | ||
Financial assets at fair value through other comprehensive income category | ||||
Allowance for impairment losses | ||||
Impairment losses on financial assets | (17) | 68 | ||
Financial assets at fair value through other comprehensive income category | Debt instruments | ||||
Allowance for impairment losses | ||||
Financial assets | (313,906) | (390,974) | (355,321) | $ (233,463) |
Financial assets at fair value through other comprehensive income category | Debt instruments | Impairment losses | ||||
Allowance for impairment losses | ||||
Financial assets | 22 | 39 | ||
Change in allowance for impairment losses | (17) | (52) | ||
Financial assets at fair value through other comprehensive income category | Debt instruments | Stage 1 | Impairment losses | ||||
Allowance for impairment losses | ||||
Financial assets | 22 | 39 | ||
Financial assets at fair value through other comprehensive income category | Government debt securities | Mexico | Impairment losses | ||||
Allowance for impairment losses | ||||
Financial assets | 22 | 38 | ||
Financial assets at fair value through other comprehensive income category | Government debt securities | Mexico | Stage 1 | Impairment losses | ||||
Allowance for impairment losses | ||||
Financial assets | 22 | 38 | ||
Financial assets at fair value through other comprehensive income category | Other debt securities | Impairment losses | ||||
Allowance for impairment losses | ||||
Financial assets | 1 | 1 | ||
Financial assets at fair value through other comprehensive income category | Other debt securities | Stage 1 | Impairment losses | ||||
Allowance for impairment losses | ||||
Financial assets | 1 | 1 | ||
Financial assets at amortized cost category | ||||
Allowance for impairment losses | ||||
Impairment losses on financial assets | 16,100 | 19,229 | $ 21,731 | |
Financial assets at amortized cost category | Debt instruments | ||||
Allowance for impairment losses | ||||
Financial assets | (22,241) | (11,619) | ||
Impairment losses on financial assets | $ 0 | $ 0 |
Equity instruments - Detail by
Equity instruments - Detail by classification and type (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financial instruments | ||
Total financial assets | $ 1,743,889 | $ 1,616,873 |
Equity investments | ||
Financial instruments | ||
Total financial assets | 4,760 | 3,563 |
Mexico | Equity investments | ||
Financial instruments | ||
Total financial assets | 4,760 | 3,563 |
Financial assets at fair value through profit or loss category | Equity investments | ||
Financial instruments | ||
Total financial assets | 4,063 | 2,764 |
Financial assets at fair value through other comprehensive income category | Equity investments | ||
Financial instruments | ||
Total financial assets | $ 697 | $ 799 |
Equity instruments - Collateral
Equity instruments - Collateral (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financial instruments | ||
Financial instruments received as collateral | $ 123,940 | $ 68,252 |
Financial instruments in connection with securities loans transactions | Equity investments | ||
Financial instruments | ||
Financial instruments received as collateral | 1 | 74 |
Financial assets pledged as collateral | 410 | |
Financial assets at fair value through profit or loss category | Financial instruments in connection with securities loans transactions | Equity investments | ||
Financial instruments | ||
Financial instruments received as collateral | 1 | 74 |
Financial assets pledged as collateral | $ 410 | $ 81 |
Equity instruments - Changes in
Equity instruments - Changes in financial assets at FVTOCI (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial instruments | |||
Beginning balance, FVTOCI | $ 395,829 | ||
Ending balance, FVTOCI | 315,549 | $ 395,829 | |
Equity investments | |||
Financial instruments | |||
Beginning balance, FVTOCI | 799 | 768 | $ 642 |
Write-off of equity instruments | 63 | ||
Net additions/(disposals), FVTOCI | (147) | 148 | |
Valuation adjustments | (18) | (117) | 126 |
Ending balance, FVTOCI | $ 697 | $ 799 | $ 768 |
Trading derivatives (assets a_3
Trading derivatives (assets and liabilities) and Short positions - Trading derivatives (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financial instruments | ||
Financial assets at fair value through profit or loss | $ 484,987 | $ 361,615 |
Financial liabilities at fair value through profit or loss | 434,112 | 351,417 |
Trading derivative liabilities | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss | 231,188 | 176,678 |
Trading derivative liabilities | Interest rate risk | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss | 166,198 | 94,515 |
Trading derivative liabilities | Currency risk | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss | 62,773 | 80,189 |
Trading derivative liabilities | Price risk | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss | 2,217 | 1,974 |
Trading derivative assets | ||
Financial instruments | ||
Financial assets at fair value through profit or loss | 228,816 | 179,390 |
Trading derivative assets | Interest rate risk | ||
Financial instruments | ||
Financial assets at fair value through profit or loss | 159,830 | 95,607 |
Trading derivative assets | Currency risk | ||
Financial instruments | ||
Financial assets at fair value through profit or loss | 68,812 | 83,653 |
Trading derivative assets | Price risk | ||
Financial instruments | ||
Financial assets at fair value through profit or loss | $ 174 | $ 130 |
Trading derivatives (assets a_4
Trading derivatives (assets and liabilities) and Short positions - Short positions (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financial instruments | ||
Financial liabilities at fair value through profit or loss | $ 434,112 | $ 351,417 |
Short positions | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss | 28,762 | 19,554 |
Short positions - Securities loans | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss | 28,663 | 19,123 |
Short positions, Securities loans - Debt instruments | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss | 28,345 | 19,109 |
Short positions, Securities loans - Equity instruments | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss | 318 | 14 |
Short positions, Short sales - Debt instruments | ||
Financial instruments | ||
Financial liabilities at fair value through profit or loss | $ 99 | $ 431 |
Loans and advances to custome_3
Loans and advances to customers - Summary (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Financial instruments | ||||
Financial assets | $ 1,743,889 | $ 1,616,873 | ||
Loans and advances - Customers | ||||
Financial instruments | ||||
Financial assets | 817,869 | 751,053 | ||
Collateral provided | 6,530 | 6,261 | ||
Gross carrying amount | Loans and advances - Customers | ||||
Financial instruments | ||||
Financial assets | 839,521 | 772,088 | ||
Impairment losses | Loans and advances - Customers | ||||
Financial instruments | ||||
Financial assets | (21,652) | (21,035) | $ (25,551) | $ (21,970) |
Financial assets designated at fair value through profit or loss | Loans and advances - Customers | ||||
Financial instruments | ||||
Financial assets | 19,207 | 10,000 | ||
Financial assets at fair value through other comprehensive income category | Loans and advances - Customers | ||||
Financial instruments | ||||
Financial assets | 946 | 4,056 | ||
Financial assets at fair value through other comprehensive income category | Gross carrying amount | Loans and advances - Customers | ||||
Financial instruments | ||||
Financial assets | 946 | 4,063 | ||
Financial assets at amortized cost category | Loans and advances - Customers | ||||
Financial instruments | ||||
Financial assets | 797,716 | 736,997 | ||
Financial assets at amortized cost category | Gross carrying amount | Loans and advances - Customers | ||||
Financial instruments | ||||
Financial assets | $ 819,368 | 758,025 | 712,983 | |
Financial assets at amortized cost category | Impairment losses | Loans and advances - Customers | ||||
Financial instruments | ||||
Financial assets | $ (21,028) | $ (25,551) |
Loans and advances to custome_4
Loans and advances to customers - Breakdown of loans (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financial instruments | ||
Financial instruments received as collateral | $ 123,940 | $ 68,252 |
Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers | 839,521 | 772,088 |
Fixed interest rate | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers | 332,396 | 359,178 |
Floating interest rate | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers | 507,125 | 412,910 |
Mexico | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers | 839,521 | 772,088 |
Public sector | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers | 84,583 | 85,256 |
Individuals | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers | 374,707 | 326,117 |
Communications and transportation | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers | 34,757 | 35,756 |
Construction | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers | 30,864 | 37,232 |
Manufacturing | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers | 53,302 | 52,176 |
Services | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers | 137,525 | 123,078 |
Tourism | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers | 20,840 | 18,278 |
Other sectors | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers | 102,943 | 94,195 |
Commercial, financial and industrial loans | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers | 362,069 | 344,684 |
Public sector loans | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers | 84,583 | 85,189 |
Securitized mortgage assets | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers | 205,242 | 189,854 |
Reverse repurchase agreements | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers | 19,207 | 10,000 |
Installment loans to individuals - Revolving consumer credit cards loans | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers | 63,782 | 52,089 |
Installment loans to individuals - Non-revolving consumer loans | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers | 83,435 | 67,619 |
Loans to customers (non-performing) | Gross carrying amount | ||
Financial instruments | ||
Loans and advances to customers | $ 21,203 | $ 22,653 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financial assets | |||
Financial assets | $ 1,743,889 | $ 1,616,873 | |
Loans and advances - Customers | |||
Financial assets | |||
Financial assets | 817,869 | 751,053 | |
POCI financial assets | 0 | 0 | |
Loans and advances - Customers | Gross carrying amount | |||
Financial assets | |||
Financial assets | 839,521 | 772,088 | |
Financial assets at fair value through other comprehensive income category | Loans and advances - Customers | |||
Financial assets | |||
Financial assets | 946 | 4,056 | |
Financial assets at fair value through other comprehensive income category | Loans and advances - Customers | Gross carrying amount | |||
Financial assets | |||
Financial assets | 946 | 4,063 | |
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 | 946 | 4,063 | |
Financial assets at fair value through other comprehensive income category | Loans and advances - Customers | Stage 1 | Gross carrying amount | |||
Financial assets | |||
Financial assets | 946 | 4,063 | |
Financial assets at fair value through other comprehensive income category | Commercial, financial and industrial loans | Gross carrying amount | |||
Financial assets | |||
Financial assets | 946 | 4,063 | |
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 | 946 | 4,063 | |
Financial assets at fair value through other comprehensive income category | Commercial, financial and industrial loans | Stage 1 | Gross carrying amount | |||
Financial assets | |||
Financial assets | 946 | 4,063 | |
Financial assets at amortized cost category | Loans and advances - Customers | |||
Financial assets | |||
Financial assets | 797,716 | 736,997 | |
Financial assets at amortized cost category | Loans and advances - Customers | Gross carrying amount | |||
Financial assets | |||
Financial assets | 819,368 | 758,025 | $ 712,983 |
Financial assets at amortized cost category | Loans and advances - Customers | Subtotal of Stage 1 and 2 | Gross carrying amount | |||
Financial assets | |||
Financial assets | 798,165 | 735,372 | |
Financial assets at amortized cost category | Loans and advances - Customers | Stage 1 | Gross carrying amount | |||
Financial assets | |||
Financial assets | 752,073 | 698,089 | 620,543 |
Financial assets at amortized cost category | Loans and advances - Customers | Stage 2 | Gross carrying amount | |||
Financial assets | |||
Financial assets | 46,092 | 37,283 | 70,531 |
Financial assets at amortized cost category | Loans and advances - Customers | Stage 3 | Gross carrying amount | |||
Financial assets | |||
Financial assets | 21,203 | 22,653 | $ 21,909 |
Financial assets at amortized cost category | Commercial, financial and industrial loans | Gross carrying amount | |||
Financial assets | |||
Financial assets | 366,710 | 350,491 | |
Financial assets at amortized cost category | Commercial, financial and industrial loans | Subtotal of Stage 1 and 2 | Gross carrying amount | |||
Financial assets | |||
Financial assets | 361,123 | 340,621 | |
Financial assets at amortized cost category | Commercial, financial and industrial loans | Stage 1 | Gross carrying amount | |||
Financial assets | |||
Financial assets | 339,283 | 322,835 | |
Financial assets at amortized cost category | Commercial, financial and industrial loans | Stage 2 | Gross carrying amount | |||
Financial assets | |||
Financial assets | 21,840 | 17,786 | |
Financial assets at amortized cost category | Commercial, financial and industrial loans | Stage 3 | Gross carrying amount | |||
Financial assets | |||
Financial assets | 5,587 | 9,870 | |
Financial assets at amortized cost category | Public sector loans | Gross carrying amount | |||
Financial assets | |||
Financial assets | 84,583 | 85,256 | |
Financial assets at amortized cost category | Public sector loans | Subtotal of Stage 1 and 2 | Gross carrying amount | |||
Financial assets | |||
Financial assets | 84,583 | 85,189 | |
Financial assets at amortized cost category | Public sector loans | Stage 1 | Gross carrying amount | |||
Financial assets | |||
Financial assets | 84,583 | 83,788 | |
Financial assets at amortized cost category | Public sector loans | Stage 2 | Gross carrying amount | |||
Financial assets | |||
Financial assets | 1,401 | ||
Financial assets at amortized cost category | Public sector loans | Stage 3 | Gross carrying amount | |||
Financial assets | |||
Financial assets | 67 | ||
Financial assets at amortized cost category | Securitized mortgage assets | Gross carrying amount | |||
Financial assets | |||
Financial assets | 217,109 | 199,579 | |
Financial assets at amortized cost category | Securitized mortgage assets | Subtotal of Stage 1 and 2 | Gross carrying amount | |||
Financial assets | |||
Financial assets | 205,242 | 189,854 | |
Financial assets at amortized cost category | Securitized mortgage assets | Stage 1 | Gross carrying amount | |||
Financial assets | |||
Financial assets | 193,339 | 178,822 | |
Financial assets at amortized cost category | Securitized mortgage assets | Stage 2 | Gross carrying amount | |||
Financial assets | |||
Financial assets | 11,903 | 11,032 | |
Financial assets at amortized cost category | Securitized mortgage assets | Stage 3 | Gross carrying amount | |||
Financial assets | |||
Financial assets | 11,867 | 9,725 | |
Financial assets at amortized cost category | Loans to customers | Gross carrying amount | |||
Financial assets | |||
Financial assets | 150,966 | 122,699 | |
Financial assets at amortized cost category | Loans to customers | Subtotal of Stage 1 and 2 | Gross carrying amount | |||
Financial assets | |||
Financial assets | 147,217 | 119,708 | |
Financial assets at amortized cost category | Loans to customers | Stage 1 | Gross carrying amount | |||
Financial assets | |||
Financial assets | 134,868 | 112,644 | |
Financial assets at amortized cost category | Loans to customers | Stage 2 | Gross carrying amount | |||
Financial assets | |||
Financial assets | 12,349 | 7,064 | |
Financial assets at amortized cost category | Loans to customers | Stage 3 | Gross carrying amount | |||
Financial assets | |||
Financial assets | 3,749 | 2,991 | |
Financial assets at amortized cost category | Installment loans to individuals - Revolving consumer credit cards loans | Gross carrying amount | |||
Financial assets | |||
Financial assets | 64,957 | 53,417 | |
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 | 63,782 | 52,089 | |
Financial assets at amortized cost category | Installment loans to individuals - Revolving consumer credit cards loans | Stage 1 | Gross carrying amount | |||
Financial assets | |||
Financial assets | 58,196 | 48,556 | |
Financial assets at amortized cost category | Installment loans to individuals - Revolving consumer credit cards loans | Stage 2 | Gross carrying amount | |||
Financial assets | |||
Financial assets | 5,586 | 3,533 | |
Financial assets at amortized cost category | Installment loans to individuals - Revolving consumer credit cards loans | Stage 3 | Gross carrying amount | |||
Financial assets | |||
Financial assets | 1,175 | 1,328 | |
Financial assets at amortized cost category | Installment loans to individuals - Non-revolving consumer loans | Gross carrying amount | |||
Financial assets | |||
Financial assets | 86,009 | 69,282 | |
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 | 83,435 | 67,619 | |
Financial assets at amortized cost category | Installment loans to individuals - Non-revolving consumer loans | Stage 1 | Gross carrying amount | |||
Financial assets | |||
Financial assets | 76,672 | 64,088 | |
Financial assets at amortized cost category | Installment loans to individuals - Non-revolving consumer loans | Stage 2 | Gross carrying amount | |||
Financial assets | |||
Financial assets | 6,763 | 3,531 | |
Financial assets at amortized cost category | Installment loans to individuals - Non-revolving consumer loans | Stage 3 | Gross carrying amount | |||
Financial assets | |||
Financial assets | $ 2,574 | $ 1,663 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial assets | |||
Financial assets at beginning of period | $ 1,616,873 | ||
Financial assets at end of period | 1,743,889 | $ 1,616,873 | |
Loans and advances - Customers | |||
Financial assets | |||
Financial assets at beginning of period | 751,053 | ||
Financial assets at end of period | 817,869 | 751,053 | |
Loans and advances - Customers | Gross carrying amount | |||
Financial assets | |||
Financial assets at beginning of period | 772,088 | ||
Financial assets at end of period | 839,521 | 772,088 | |
Loans and advances - Customers | Impairment losses | |||
Financial assets | |||
Financial assets at beginning of period | (21,035) | (25,551) | $ (21,970) |
Transfer from Stage 1 to Stage 2 | 2,898 | (1,865) | |
Transfer from Stage 1 to Stage 3 | 2,543 | (2,794) | |
Transfer from Stage 2 to Stage 3 | 640 | (1,924) | |
Transfer from Stage 2 to Stage 1 | (437) | 1,589 | |
Transfer from Stage 3 to Stage 2 | (1,293) | 111 | |
Transfer from Stage 3 to Stage 1 | (67) | 79 | |
Financial assets derecognized during the period other than write offs, allowance | 8,070 | 3,111 | |
Originated financial assets | (3,185) | (2,741) | |
Written-off assets | 19,169 | 26,477 | 21,590 |
Other movements | (4) | (5) | 13 |
Financial assets at end of period | (21,652) | (21,035) | (25,551) |
Loans and advances - Customers | Stage 1 | Impairment losses | |||
Financial assets | |||
Financial assets at beginning of period | (5,771) | (6,215) | |
Transfer from Stage 1 to Stage 2 | (511) | 346 | |
Transfer from Stage 1 to Stage 3 | (257) | 183 | |
Transfer from Stage 2 to Stage 1 | 90 | (387) | |
Transfer from Stage 3 to Stage 1 | 20 | (34) | |
Financial assets derecognized during the period other than write offs, allowance | (1,203) | (906) | |
Originated financial assets | (3,185) | (2,741) | |
Financial assets at end of period | (7,013) | (5,771) | (6,215) |
Loans and advances - Customers | Stage 2 | Impairment losses | |||
Financial assets | |||
Financial assets at beginning of period | (5,149) | (8,902) | |
Transfer from Stage 1 to Stage 2 | 3,409 | (2,211) | |
Transfer from Stage 2 to Stage 3 | (980) | 712 | |
Transfer from Stage 2 to Stage 1 | (527) | 1,976 | |
Transfer from Stage 3 to Stage 2 | 277 | (332) | |
Financial assets derecognized during the period other than write offs, allowance | (534) | 1,087 | |
Financial assets at end of period | (6,541) | (5,149) | (8,902) |
Loans and advances - Customers | Stage 3 | Impairment losses | |||
Financial assets | |||
Financial assets at beginning of period | (10,115) | (10,434) | |
Transfer from Stage 1 to Stage 3 | 2,800 | (2,977) | |
Transfer from Stage 2 to Stage 3 | 1,620 | (2,636) | |
Transfer from Stage 3 to Stage 2 | (1,570) | 443 | |
Transfer from Stage 3 to Stage 1 | (87) | 113 | |
Financial assets derecognized during the period other than write offs, allowance | 9,807 | 2,930 | |
Written-off assets | 19,169 | 26,477 | |
Financial assets at end of period | (8,098) | (10,115) | (10,434) |
Loans and advances - Customers | Financial assets at amortized cost category | |||
Financial assets | |||
Financial assets at beginning of period | 736,997 | ||
Financial assets at end of period | 797,716 | 736,997 | |
Loans and advances - Customers | Financial assets at amortized cost category | Gross carrying amount | |||
Financial assets | |||
Financial assets at beginning of period | 758,025 | 712,983 | |
Remaining in same Stage | (37,399) | (29,665) | |
Financial assets derecognized during the period other than write offs | (210,325) | (294,736) | |
Originated financial assets | 327,309 | 412,352 | |
Written-off assets | (19,169) | (26,477) | |
Other movements | 927 | (16,432) | |
Financial assets at end of period | 819,368 | 758,025 | 712,983 |
Loans and advances - Customers | Financial assets at amortized cost category | Impairment losses | |||
Financial assets | |||
Financial assets at beginning of period | (21,028) | (25,551) | |
Written-off assets | 19,169 | 26,477 | |
Financial assets at end of period | (21,028) | (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 | 735,372 | ||
Financial assets at end of period | 798,165 | 735,372 | |
Loans and advances - Customers | Financial assets at amortized cost category | Subtotal of Stage 1 and 2 | Impairment losses | |||
Financial assets | |||
Financial assets at end of period | (21,652) | ||
Loans and advances - Customers | Financial assets at amortized cost category | Stage 1 | Gross carrying amount | |||
Financial assets | |||
Financial assets at beginning of period | 698,089 | 620,543 | |
Transfer from Stage 1 to Stage 2 | (23,492) | (13,356) | |
Transfer from Stage 1 to Stage 3 | (6,921) | (6,050) | |
Transfer from Stage 2 to Stage 1 | 6,169 | 20,699 | |
Transfer from Stage 3 to Stage 1 | 907 | 1,102 | |
Remaining in same Stage | (48,693) | (44,490) | |
Financial assets derecognized during the period other than write offs | (202,136) | (274,147) | |
Originated financial assets | 327,309 | 412,352 | |
Other movements | 841 | (18,564) | |
Financial assets at end of period | 752,073 | 698,089 | 620,543 |
Loans and advances - Customers | Financial assets at amortized cost category | Stage 1 | Impairment losses | |||
Financial assets | |||
Financial assets at beginning of period | (5,764) | ||
Financial assets at end of period | (7,013) | (5,764) | |
Loans and advances - Customers | Financial assets at amortized cost category | Stage 2 | Gross carrying amount | |||
Financial assets | |||
Financial assets at beginning of period | 37,283 | 70,531 | |
Transfer from Stage 1 to Stage 2 | 23,492 | 13,356 | |
Transfer from Stage 2 to Stage 3 | (6,508) | (7,787) | |
Transfer from Stage 2 to Stage 1 | (6,169) | (20,699) | |
Transfer from Stage 3 to Stage 2 | 5,390 | 2,013 | |
Remaining in same Stage | (2,221) | (4,783) | |
Financial assets derecognized during the period other than write offs | (5,204) | (17,278) | |
Other movements | 29 | 1,930 | |
Financial assets at end of period | 46,092 | 37,283 | 70,531 |
Loans and advances - Customers | Financial assets at amortized cost category | Stage 2 | Impairment losses | |||
Financial assets | |||
Financial assets at beginning of period | (5,149) | ||
Financial assets at end of period | (6,541) | (5,149) | |
Loans and advances - Customers | Financial assets at amortized cost category | Stage 3 | Gross carrying amount | |||
Financial assets | |||
Financial assets at beginning of period | 22,653 | 21,909 | |
Transfer from Stage 1 to Stage 3 | 6,921 | 6,050 | |
Transfer from Stage 2 to Stage 3 | 6,508 | 7,787 | |
Transfer from Stage 3 to Stage 2 | (5,390) | (2,013) | |
Transfer from Stage 3 to Stage 1 | (907) | (1,102) | |
Remaining in same Stage | 13,515 | 19,608 | |
Financial assets derecognized during the period other than write offs | (2,985) | (3,311) | |
Written-off assets | (19,169) | (26,477) | |
Other movements | 57 | 202 | |
Financial assets at end of period | 21,203 | 22,653 | $ 21,909 |
Loans and advances - Customers | Financial assets at amortized cost category | Stage 3 | Impairment losses | |||
Financial assets | |||
Financial assets at beginning of period | (10,115) | ||
Financial assets at end of period | $ (8,098) | $ (10,115) |
Loans and advances to custome_7
Loans and advances to customers - Allowance for impairment losses (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial assets | |||
Financial assets at beginning of period | $ 1,616,873 | ||
Impairment losses on financial assets | 16,083 | $ 19,229 | $ 21,799 |
Financial assets at end of period | 1,743,889 | 1,616,873 | |
Financial assets at amortized cost category | |||
Financial assets | |||
Impairment losses on financial assets | 16,100 | 19,229 | 21,731 |
Financial assets at fair value through other comprehensive income category | |||
Financial assets | |||
Impairment losses on financial assets | (17) | 68 | |
Loans and advances - Customers | |||
Financial assets | |||
Financial assets at beginning of period | 751,053 | ||
Financial assets at end of period | 817,869 | 751,053 | |
Loans and advances - Customers | Financial assets at amortized cost category | |||
Financial assets | |||
Financial assets at beginning of period | 736,997 | ||
Financial assets at end of period | 797,716 | 736,997 | |
Loans and advances - Customers | Financial assets at fair value through other comprehensive income category | |||
Financial assets | |||
Financial assets at beginning of period | 4,056 | ||
Financial assets at end of period | 946 | 4,056 | |
Impairment losses | Loans and advances - Customers | |||
Financial assets | |||
Financial assets at beginning of period | (21,035) | (25,551) | (21,970) |
Write-off of impaired loans applied against the allowance for impairment losses | 19,169 | 26,477 | 21,590 |
Others | (4) | (5) | 13 |
Financial assets at end of period | (21,652) | (21,035) | (25,551) |
Impairment losses | Loans and advances - Customers | Mexico | |||
Financial assets | |||
Financial assets at beginning of period | (21,035) | (25,551) | |
Financial assets at end of period | (21,652) | (21,035) | (25,551) |
Impairment losses | Loans and advances - Customers | Financial assets at amortized cost category | |||
Financial assets | |||
Financial assets at beginning of period | (21,028) | (25,551) | |
Impairment losses on financial assets | (19,782) | (21,949) | (25,184) |
Write-off of impaired loans applied against the allowance for impairment losses | 19,169 | 26,477 | |
Financial assets at end of period | (21,028) | (25,551) | |
Recoveries of loans previously charged-off and recovery expenses | $ 3,699 | 2,720 | $ 3,453 |
Impairment losses | Loans and advances - Customers | Financial assets at fair value through other comprehensive income category | |||
Financial assets | |||
Impairment losses on financial assets | $ (7) |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2019 | |
Financial assets | ||||
Financial assets | $ (1,743,889) | $ (1,616,873) | ||
Loans and advances - Customers | ||||
Financial assets | ||||
Financial assets | (817,869) | (751,053) | ||
Post-model adjustments or overlay (as a percent) | 6% | |||
Commercial, financial and industrial loans | ||||
Financial assets | ||||
Post-model adjustments or overlay (as a percent) | 15% | |||
Public sector loans | ||||
Financial assets | ||||
Post-model adjustments or overlay (as a percent) | 7% | |||
Securitized mortgage assets | ||||
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% | |||
Installment loans to individuals - Revolving consumer credit cards loans | ||||
Financial assets | ||||
Post-model adjustments or overlay (as a percent) | 6% | |||
Installment loans to individuals - Non-revolving consumer loans | ||||
Financial assets | ||||
Post-model adjustments or overlay (as a percent) | 0% | |||
Financial assets at amortized cost category | Loans and advances - Customers | ||||
Financial assets | ||||
Financial assets | (797,716) | (736,997) | ||
Impairment losses | Loans and advances - Customers | ||||
Financial assets | ||||
Financial assets | $ 25,551 | $ 21,652 | 21,035 | $ 21,970 |
Impairment losses | Financial assets at amortized cost category | Loans and advances - Customers | ||||
Financial assets | ||||
Financial assets | 25,551 | 21,028 | ||
Impairment losses | Financial assets at amortized cost category | Commercial, financial and industrial loans | ||||
Financial assets | ||||
Financial assets | 8,887 | 8,123 | ||
Impairment losses | Financial assets at amortized cost category | Public sector loans | ||||
Financial assets | ||||
Financial assets | 15 | 124 | ||
Impairment losses | Financial assets at amortized cost category | Securitized mortgage assets | ||||
Financial assets | ||||
Financial assets | 4,078 | 4,504 | ||
Impairment losses | Financial assets at amortized cost category | Loans to customers | ||||
Financial assets | ||||
Financial assets | 12,571 | 8,277 | ||
Impairment losses | Financial assets at amortized cost category | Installment loans to individuals - Revolving consumer credit cards loans | ||||
Financial assets | ||||
Financial assets | 6,350 | 3,852 | ||
Impairment losses | Financial assets at amortized cost category | Installment loans to individuals - Non-revolving consumer loans | ||||
Financial assets | ||||
Financial assets | 6,221 | $ 4,425 | ||
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 | Securitized mortgage assets | ||||
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 | Securitized mortgage assets | ||||
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financial assets | ||||
Financial assets | $ (1,743,889) | $ (1,616,873) | ||
Contractual amount outstanding of financial assets written-off still subject to enforcement activities | 19,169 | |||
Loans and advances - Customers | ||||
Financial assets | ||||
Financial assets | (817,869) | (751,053) | ||
Loans and advances - Customers | Impairment losses | ||||
Financial assets | ||||
Financial assets | 21,652 | 21,035 | $ 25,551 | $ 21,970 |
Written-off financial assets | (19,169) | (26,477) | (21,590) | |
Loans and advances - Customers | Stage 1 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 7,013 | 5,771 | 6,215 | |
Loans and advances - Customers | Stage 2 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 6,541 | 5,149 | 8,902 | |
Loans and advances - Customers | Stage 3 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 8,098 | 10,115 | 10,434 | |
Written-off financial assets | (19,169) | (26,477) | ||
Financial assets at fair value through other comprehensive income category | Loans and advances - Customers | ||||
Financial assets | ||||
Financial assets | (946) | (4,056) | ||
Financial assets at fair value through other comprehensive income category | Commercial, financial and industrial loans | Impairment losses | ||||
Financial assets | ||||
Financial assets | 7 | |||
Financial assets at fair value through other comprehensive income category | Commercial, financial and industrial loans | Stage 1 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 7 | |||
Financial assets at amortized cost category | Loans and advances - Customers | ||||
Financial assets | ||||
Financial assets | (797,716) | (736,997) | ||
Financial assets at amortized cost category | Loans and advances - Customers | Impairment losses | ||||
Financial assets | ||||
Financial assets | 21,028 | 25,551 | ||
Written-off financial assets | (19,169) | (26,477) | ||
Financial assets at amortized cost category | Loans and advances - Customers | Subtotal of Stage 1 and 2 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 21,652 | |||
Financial assets at amortized cost category | Loans and advances - Customers | Stage 1 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 7,013 | 5,764 | ||
Financial assets at amortized cost category | Loans and advances - Customers | Stage 2 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 6,541 | 5,149 | ||
Financial assets at amortized cost category | Loans and advances - Customers | Stage 3 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 8,098 | 10,115 | ||
Financial assets at amortized cost category | Commercial, financial and industrial loans | Impairment losses | ||||
Financial assets | ||||
Financial assets | 8,123 | 8,887 | ||
Written-off financial assets | (5,130) | (9,259) | ||
Financial assets at amortized cost category | Commercial, financial and industrial loans | Subtotal of Stage 1 and 2 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 5,531 | |||
Financial assets at amortized cost category | Commercial, financial and industrial loans | Stage 1 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 1,377 | 1,715 | ||
Financial assets at amortized cost category | Commercial, financial and industrial loans | Stage 2 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 1,385 | 1,509 | ||
Financial assets at amortized cost category | Commercial, financial and industrial loans | Stage 3 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 2,769 | 4,899 | ||
Financial assets at amortized cost category | Public sector loans | Impairment losses | ||||
Financial assets | ||||
Financial assets | 124 | 15 | ||
Financial assets at amortized cost category | Public sector loans | Subtotal of Stage 1 and 2 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 38 | |||
Financial assets at amortized cost category | Public sector loans | Stage 1 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 38 | 66 | ||
Financial assets at amortized cost category | Public sector loans | Stage 3 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 58 | |||
Financial assets at amortized cost category | Securitized mortgage assets | Impairment losses | ||||
Financial assets | ||||
Financial assets | 4,504 | 4,078 | ||
Written-off financial assets | (2,894) | (1,572) | ||
Financial assets at amortized cost category | Securitized mortgage assets | Subtotal of Stage 1 and 2 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 4,234 | |||
Financial assets at amortized cost category | Securitized mortgage assets | Stage 1 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 676 | 640 | ||
Financial assets at amortized cost category | Securitized mortgage assets | Stage 2 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 809 | 991 | ||
Financial assets at amortized cost category | Securitized mortgage assets | Stage 3 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 2,749 | 2,873 | ||
Financial assets at amortized cost category | Loans to customers | Impairment losses | ||||
Financial assets | ||||
Financial assets | 8,277 | 12,571 | ||
Written-off financial assets | (11,145) | (15,646) | ||
Financial assets at amortized cost category | Loans to customers | Subtotal of Stage 1 and 2 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 11,849 | |||
Financial assets at amortized cost category | Loans to customers | Stage 1 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 4,922 | 3,343 | ||
Financial assets at amortized cost category | Loans to customers | Stage 2 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 4,347 | 2,649 | ||
Financial assets at amortized cost category | Loans to customers | Stage 3 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 2,580 | 2,285 | ||
Financial assets at amortized cost category | Installment loans to individuals - Revolving consumer credit cards loans | Impairment losses | ||||
Financial assets | ||||
Financial assets | 3,852 | 6,350 | ||
Written-off financial assets | (5,670) | (8,396) | ||
Financial assets at amortized cost category | Installment loans to individuals - Revolving consumer credit cards loans | Subtotal of Stage 1 and 2 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 4,860 | |||
Financial assets at amortized cost category | Installment loans to individuals - Revolving consumer credit cards loans | Stage 1 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 2,020 | 1,498 | ||
Financial assets at amortized cost category | Installment loans to individuals - Revolving consumer credit cards loans | Stage 2 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 2,060 | 1,338 | ||
Financial assets at amortized cost category | Installment loans to individuals - Revolving consumer credit cards loans | Stage 3 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 780 | 1,016 | ||
Financial assets at amortized cost category | Installment loans to individuals - Non-revolving consumer loans | Impairment losses | ||||
Financial assets | ||||
Financial assets | 4,425 | $ 6,221 | ||
Written-off financial assets | (5,475) | (7,250) | ||
Financial assets at amortized cost category | Installment loans to individuals - Non-revolving consumer loans | Subtotal of Stage 1 and 2 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 6,989 | |||
Financial assets at amortized cost category | Installment loans to individuals - Non-revolving consumer loans | Stage 1 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 2,902 | 1,845 | ||
Financial assets at amortized cost category | Installment loans to individuals - Non-revolving consumer loans | Stage 2 | Impairment losses | ||||
Financial assets | ||||
Financial assets | 2,287 | 1,311 | ||
Financial assets at amortized cost category | Installment loans to individuals - Non-revolving consumer loans | Stage 3 | Impairment losses | ||||
Financial assets | ||||
Financial assets | $ 1,800 | $ 1,269 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financial assets | ||||
Financial assets | $ (1,743,889) | $ (1,616,873) | ||
Loans and advances - Customers | ||||
Financial assets | ||||
Financial assets | (817,869) | (751,053) | ||
Loans and advances - Customers | Impairment losses | ||||
Financial assets | ||||
Transfer from Stage 1 to Stage 2 | (2,898) | 1,865 | ||
Transfer from Stage 1 to Stage 3 | (2,543) | 2,794 | ||
Transfer from Stage 2 to Stage 3 | (640) | 1,924 | ||
Transfer from Stage 2 to Stage 1 | 437 | (1,589) | ||
Transfer from Stage 3 to Stage 2 | 1,293 | (111) | ||
Transfer from Stage 3 to Stage 1 | 67 | (79) | ||
Contracts remaining at the same stage | (4,179) | 11,168 | ||
Written-off financial assets | (19,169) | (26,477) | $ (21,590) | |
Originated financial assets | 3,185 | 2,741 | ||
Foreign exchange and other movements | (68) | 137 | ||
Financial assets | 21,652 | 21,035 | 25,551 | $ 21,970 |
Loans and advances - Customers | Stage 1 | Impairment losses | ||||
Financial assets | ||||
Transfer from Stage 1 to Stage 2 | 511 | (346) | ||
Transfer from Stage 1 to Stage 3 | 257 | (183) | ||
Transfer from Stage 2 to Stage 1 | (90) | 387 | ||
Transfer from Stage 3 to Stage 1 | (20) | 34 | ||
Contracts remaining at the same stage | 121 | (1,986) | ||
Originated financial assets | 3,185 | 2,741 | ||
Foreign exchange and other movements | (39) | (185) | ||
Financial assets | 7,013 | 5,771 | 6,215 | |
Loans and advances - Customers | Stage 2 | Impairment losses | ||||
Financial assets | ||||
Transfer from Stage 1 to Stage 2 | (3,409) | 2,211 | ||
Transfer from Stage 2 to Stage 3 | 980 | (712) | ||
Transfer from Stage 2 to Stage 1 | 527 | (1,976) | ||
Transfer from Stage 3 to Stage 2 | (277) | 332 | ||
Contracts remaining at the same stage | 282 | (4,767) | ||
Foreign exchange and other movements | (29) | 72 | ||
Financial assets | 6,541 | 5,149 | 8,902 | |
Loans and advances - Customers | Stage 3 | Impairment losses | ||||
Financial assets | ||||
Transfer from Stage 1 to Stage 3 | (2,800) | 2,977 | ||
Transfer from Stage 2 to Stage 3 | (1,620) | 2,636 | ||
Transfer from Stage 3 to Stage 2 | 1,570 | (443) | ||
Transfer from Stage 3 to Stage 1 | 87 | (113) | ||
Contracts remaining at the same stage | (4,582) | 17,921 | ||
Written-off financial assets | (19,169) | (26,477) | ||
Foreign exchange and other movements | 250 | |||
Financial assets | $ 8,098 | $ 10,115 | $ 10,434 |
Loans and advances to custom_11
Loans and advances to customers - Impaired loans (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial assets at amortized cost category | Loans to customers (non-performing) | |||
Financial assets | |||
Beginning balance | $ 22,653 | ||
Balance at year-end | 21,203 | $ 22,653 | |
Gross carrying amount | |||
Financial assets | |||
Beginning balance | 772,088 | ||
Balance at year-end | 839,521 | 772,088 | |
Loans and advances - Customers | Impairment losses | |||
Financial assets | |||
Written-off assets | 19,169 | 26,477 | $ 21,590 |
Loans and advances - Customers | Impairment losses | Financial assets at amortized cost category | |||
Financial assets | |||
Written-off assets | 19,169 | 26,477 | |
Loans and advances - Customers | Gross carrying amount | Financial assets at amortized cost category | |||
Financial assets | |||
Written-off assets | (19,169) | (26,477) | |
Loans and advances - Customers | Gross carrying amount | Financial assets at amortized cost category | Loans to customers (non-performing) | |||
Financial assets | |||
Beginning balance | 22,653 | 21,909 | 17,952 |
Additions | 27,001 | 32,526 | 37,216 |
Transfers to performing loans | (9,282) | (5,305) | (11,669) |
Written-off assets | (19,169) | (26,477) | (21,590) |
Balance at year-end | $ 21,203 | $ 22,653 | $ 21,909 |
Loans and advances to custom_12
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, 2022 | Dec. 31, 2021 |
Financial assets | ||
Loans and advances to customers | $ 21,203 | $ 22,653 |
Less than 3 Months | ||
Financial assets | ||
Loans and advances to customers | 11,184 | 9,748 |
6 months | ||
Financial assets | ||
Loans and advances to customers | 5,223 | 5,318 |
6 to 9 Months | ||
Financial assets | ||
Loans and advances to customers | 826 | 1,646 |
9 to 12 Months | ||
Financial assets | ||
Loans and advances to customers | 627 | 1,560 |
More than 12 Months | ||
Financial assets | ||
Loans and advances to customers | 3,343 | 4,381 |
Commercial, financial and industrial loans | ||
Financial assets | ||
Loans and advances to customers | 5,587 | 9,937 |
Commercial, financial and industrial loans | Less than 3 Months | ||
Financial assets | ||
Loans and advances to customers | 3,691 | 6,689 |
Commercial, financial and industrial loans | 6 months | ||
Financial assets | ||
Loans and advances to customers | 1,470 | 1,434 |
Commercial, financial and industrial loans | 6 to 9 Months | ||
Financial assets | ||
Loans and advances to customers | 156 | 676 |
Commercial, financial and industrial loans | 9 to 12 Months | ||
Financial assets | ||
Loans and advances to customers | 46 | 808 |
Commercial, financial and industrial loans | More than 12 Months | ||
Financial assets | ||
Loans and advances to customers | 224 | 330 |
Securitized mortgage assets | ||
Financial assets | ||
Loans and advances to customers | 11,867 | 9,725 |
Securitized mortgage assets | Less than 3 Months | ||
Financial assets | ||
Loans and advances to customers | 5,793 | 2,194 |
Securitized mortgage assets | 6 months | ||
Financial assets | ||
Loans and advances to customers | 1,705 | 1,764 |
Securitized mortgage assets | 6 to 9 Months | ||
Financial assets | ||
Loans and advances to customers | 669 | 965 |
Securitized mortgage assets | 9 to 12 Months | ||
Financial assets | ||
Loans and advances to customers | 581 | 751 |
Securitized mortgage assets | More than 12 Months | ||
Financial assets | ||
Loans and advances to customers | 3,119 | 4,051 |
Installment loans to individuals - Revolving consumer credit cards loans | ||
Financial assets | ||
Loans and advances to customers | 1,175 | 1,328 |
Installment loans to individuals - Revolving consumer credit cards loans | Less than 3 Months | ||
Financial assets | ||
Loans and advances to customers | 614 | 451 |
Installment loans to individuals - Revolving consumer credit cards loans | 6 months | ||
Financial assets | ||
Loans and advances to customers | 561 | 877 |
Installment loans to individuals - Non-revolving consumer loans | ||
Financial assets | ||
Loans and advances to customers | 2,574 | 1,663 |
Installment loans to individuals - Non-revolving consumer loans | Less than 3 Months | ||
Financial assets | ||
Loans and advances to customers | 1,086 | 414 |
Installment loans to individuals - Non-revolving consumer loans | 6 months | ||
Financial assets | ||
Loans and advances to customers | 1,487 | 1,243 |
Installment loans to individuals - Non-revolving consumer loans | 6 to 9 Months | ||
Financial assets | ||
Loans and advances to customers | $ 1 | 5 |
Installment loans to individuals - Non-revolving consumer loans | 9 to 12 Months | ||
Financial assets | ||
Loans and advances to customers | $ 1 |
Loans and advances to custom_13
Loans and advances to customers - Renegotiated loans (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial instruments | |||
Renegotiated loan amount | $ 12,330 | $ 12,353 | $ 5,654 |
Percentage of renegotiated loans | 100% | 100% | 100% |
Loans to customers (non-performing) | |||
Financial instruments | |||
Renegotiated loan amount | $ 3,216 | $ 5,838 | $ 1,513 |
Percentage of renegotiated loans | 26% | 47% | 27% |
Due to Concerns About Current or Potential Credit Deterioration | Performing loans | |||
Financial instruments | |||
Renegotiated loan amount | $ 9,114 | $ 6,515 | $ 4,141 |
Percentage of renegotiated loans | 74% | 53% | 73% |
Commercial, financial and industrial loans | |||
Financial instruments | |||
Renegotiated loan amount | $ 10,527 | $ 10,217 | $ 3,070 |
Commercial, financial and industrial loans | Loans to customers (non-performing) | |||
Financial instruments | |||
Renegotiated loan amount | 2,549 | 4,299 | 912 |
Commercial, financial and industrial loans | Due to Concerns About Current or Potential Credit Deterioration | Performing loans | |||
Financial instruments | |||
Renegotiated loan amount | 7,978 | 5,918 | 2,158 |
Securitized mortgage assets | |||
Financial instruments | |||
Renegotiated loan amount | 316 | 573 | 685 |
Securitized mortgage assets | Loans to customers (non-performing) | |||
Financial instruments | |||
Renegotiated loan amount | 157 | 356 | 329 |
Securitized mortgage assets | Due to Concerns About Current or Potential Credit Deterioration | Performing loans | |||
Financial instruments | |||
Renegotiated loan amount | 159 | 217 | 356 |
Installment loans to individuals | |||
Financial instruments | |||
Renegotiated loan amount | 1,487 | 1,563 | 1,899 |
Installment loans to individuals | Loans to customers (non-performing) | |||
Financial instruments | |||
Renegotiated loan amount | 510 | 1,183 | 272 |
Installment loans to individuals | Due to Concerns About Current or Potential Credit Deterioration | Performing loans | |||
Financial instruments | |||
Renegotiated loan amount | $ 977 | $ 380 | $ 1,627 |
Loans and advances to custom_14
Loans and advances to customers - Gains (losses) on modification of financial assets (net) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020 MXN ($) | |
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) |
Securitized mortgage assets | |
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_15
Loans and advances to customers - Maximum exposure to credit risk (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financial instruments | ||
Maximum Exposure to Credit Risk | $ 672,971 | $ 1,530,693 |
Maximum Exposure to Credit Risk, unsecured | 522,171 | 900,076 |
Maximum Exposure to Credit Risk, secured | 150,800 | 630,617 |
Cash Collateral Received | 26,861 | 26,919 |
Collateralized by Securities | 123,939 | 68,178 |
Collection Rights | ||
Financial instruments | ||
Other Credit Enhancements | 15,391 | 90,584 |
Real Estate | ||
Financial instruments | ||
Other Credit Enhancements | 319,879 | 200,815 |
Guarantees | ||
Financial instruments | ||
Other Credit Enhancements | 3,290 | 15,039 |
Guarantees and loan commitments | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 91,329 | |
Maximum Exposure to Credit Risk, unsecured | 91,329 | |
Financial assets at fair value through profit or loss category | Financial assets, category | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 359,065 | 290,365 |
Maximum Exposure to Credit Risk, unsecured | 208,265 | 195,268 |
Maximum Exposure to Credit Risk, secured | 150,800 | 95,097 |
Cash Collateral Received | 26,861 | 26,919 |
Collateralized by Securities | 123,939 | 68,178 |
Financial assets at fair value through other comprehensive income category | Financial assets, category | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 313,906 | 390,974 |
Maximum Exposure to Credit Risk, unsecured | 313,906 | 390,974 |
Financial assets at amortized cost category | Financial assets, category | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 758,025 | |
Maximum Exposure to Credit Risk, unsecured | 222,505 | |
Maximum Exposure to Credit Risk, secured | 535,520 | |
Financial assets at amortized cost category | Financial assets, category | Collection Rights | ||
Financial instruments | ||
Other Credit Enhancements | 15,391 | 90,584 |
Financial assets at amortized cost category | Financial assets, category | Real Estate | ||
Financial instruments | ||
Other Credit Enhancements | 319,879 | 200,815 |
Financial assets at amortized cost category | Financial assets, category | Guarantees | ||
Financial instruments | ||
Other Credit Enhancements | 3,290 | 15,039 |
Financial assets at amortized cost category | Financial assets, category | Loans and advances - Customers | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 758,025 | |
Maximum Exposure to Credit Risk, unsecured | 222,505 | |
Maximum Exposure to Credit Risk, secured | 535,520 | |
Financial assets at amortized cost category | Financial assets, category | Loans and advances - Customers | Collection Rights | ||
Financial instruments | ||
Other Credit Enhancements | 15,391 | 90,584 |
Financial assets at amortized cost category | Financial assets, category | Loans and advances - Customers | Real Estate | ||
Financial instruments | ||
Other Credit Enhancements | 319,879 | 200,815 |
Financial assets at amortized cost category | Financial assets, category | Loans and advances - Customers | Guarantees | ||
Financial instruments | ||
Other Credit Enhancements | 3,290 | 15,039 |
Financial assets at amortized cost category | Financial assets, category | Commercial, financial and industrial loans | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 366,710 | 350,491 |
Maximum Exposure to Credit Risk, unsecured | 86,996 | 88,047 |
Maximum Exposure to Credit Risk, secured | 279,714 | 262,444 |
Financial assets at amortized cost category | Financial assets, category | Commercial, financial and industrial loans | Collection Rights | ||
Financial instruments | ||
Other Credit Enhancements | 11,617 | 53,290 |
Financial assets at amortized cost category | Financial assets, category | Commercial, financial and industrial loans | Real Estate | ||
Financial instruments | ||
Other Credit Enhancements | 86,858 | 21,136 |
Financial assets at amortized cost category | Financial assets, category | Commercial, financial and industrial loans | Guarantees | ||
Financial instruments | ||
Other Credit Enhancements | 3,155 | 15,039 |
Financial assets at amortized cost category | Financial assets, category | Public sector loans | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 84,583 | 85,256 |
Maximum Exposure to Credit Risk, unsecured | 21,785 | 27,762 |
Maximum Exposure to Credit Risk, secured | 62,798 | 57,494 |
Financial assets at amortized cost category | Financial assets, category | Public sector loans | Collection Rights | ||
Financial instruments | ||
Other Credit Enhancements | 34,763 | |
Financial assets at amortized cost category | Financial assets, category | Securitized mortgage assets | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 217,109 | 199,579 |
Maximum Exposure to Credit Risk, unsecured | 2,586 | 2,290 |
Maximum Exposure to Credit Risk, secured | 214,523 | 197,289 |
Financial assets at amortized cost category | Financial assets, category | Securitized mortgage assets | Collection Rights | ||
Financial instruments | ||
Other Credit Enhancements | 2,501 | |
Financial assets at amortized cost category | Financial assets, category | Securitized mortgage assets | Real Estate | ||
Financial instruments | ||
Other Credit Enhancements | 161,422 | |
Financial assets at amortized cost category | Financial assets, category | Revolving consumer credit card loans | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 64,957 | 53,417 |
Maximum Exposure to Credit Risk, unsecured | 64,957 | 53,417 |
Financial assets at amortized cost category | Financial assets, category | Installment loans to individuals - Non-revolving consumer loans | ||
Financial instruments | ||
Maximum Exposure to Credit Risk | 86,009 | 69,282 |
Maximum Exposure to Credit Risk, unsecured | 60,359 | 50,989 |
Maximum Exposure to Credit Risk, secured | 25,650 | 18,293 |
Financial assets at amortized cost category | Financial assets, category | Installment loans to individuals - Non-revolving consumer loans | Collection Rights | ||
Financial instruments | ||
Other Credit Enhancements | 3,774 | 30 |
Financial assets at amortized cost category | Financial assets, category | Installment loans to individuals - Non-revolving consumer loans | Real Estate | ||
Financial instruments | ||
Other Credit Enhancements | 233,021 | $ 18,257 |
Financial assets at amortized cost category | Financial assets, category | Installment loans to individuals - Non-revolving consumer loans | Guarantees | ||
Financial instruments | ||
Other Credit Enhancements | $ 135 |
Loans and advances to custom_16
Loans and advances to customers - Internal rating (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Credit risk | ||
Financial assets | $ 1,743,889 | $ 1,616,873 |
Maximum Exposure to Credit Risk | 672,971 | 1,530,693 |
Internal credit grades | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 501,900 | 461,960 |
Internal credit grades | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 314,339 | 295,243 |
Internal credit grades | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 398,923 | 380,506 |
Internal credit grades | Public sector loans | Gross carrying amount | ||
Credit risk | ||
Financial assets | 84,584 | 85,263 |
Internal credit grades | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 102,977 | 81,454 |
Internal credit grades | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 75,318 | 56,923 |
Internal credit grades | Loans commitments | ||
Credit risk | ||
Guarantees and loan commitments | 27,659 | 24,531 |
Rating category, 9.3 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 493 | 518 |
Rating category, 9.3 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 493 | 518 |
Rating category, 9.3 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 493 | 518 |
Rating category, 8.5 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 2,776 | 2,941 |
Rating category, 8.5 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 2,776 | 2,941 |
Rating category, 8.5 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 2,738 | 2,940 |
Rating category, 8.5 | Loans commitments | ||
Credit risk | ||
Guarantees and loan commitments | 38 | 1 |
Rating category, 8.0 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 17,763 | 15,531 |
Rating category, 8.0 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 17 | |
Rating category, 8.0 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 17 | |
Rating category, 8.0 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 17,746 | 15,531 |
Rating category, 8.0 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 16,668 | 14,668 |
Rating category, 8.0 | Loans commitments | ||
Credit risk | ||
Guarantees and loan commitments | 1,078 | 863 |
Rating category, 7.5 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 22,102 | 5,330 |
Rating category, 7.5 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 8,898 | 1,623 |
Rating category, 7.5 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 8,898 | 1,623 |
Rating category, 7.5 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 13,204 | 3,707 |
Rating category, 7.5 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 12,789 | 3,521 |
Rating category, 7.5 | Loans commitments | ||
Credit risk | ||
Guarantees and loan commitments | 415 | 186 |
Rating category, 7.0 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 72,098 | 28,757 |
Rating category, 7.0 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 46,807 | 11,593 |
Rating category, 7.0 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 60,802 | 20,662 |
Rating category, 7.0 | Public sector loans | Gross carrying amount | ||
Credit risk | ||
Financial assets | 13,995 | 9,069 |
Rating category, 7.0 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 11,296 | 8,095 |
Rating category, 7.0 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 10,067 | 8,066 |
Rating category, 7.0 | Loans commitments | ||
Credit risk | ||
Guarantees and loan commitments | 1,229 | 29 |
Rating category, 6.5 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 86,238 | 66,889 |
Rating category, 6.5 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 42,193 | 31,990 |
Rating category, 6.5 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 60,688 | 52,902 |
Rating category, 6.5 | Public sector loans | Gross carrying amount | ||
Credit risk | ||
Financial assets | 18,495 | 20,912 |
Rating category, 6.5 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 25,550 | 13,987 |
Rating category, 6.5 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 16,796 | 13,690 |
Rating category, 6.5 | Loans commitments | ||
Credit risk | ||
Guarantees and loan commitments | 8,754 | 297 |
Rating category, 6.0 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 68,198 | 55,484 |
Rating category, 6.0 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 44,885 | 39,440 |
Rating category, 6.0 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 54,181 | 44,317 |
Rating category, 6.0 | Public sector loans | Gross carrying amount | ||
Credit risk | ||
Financial assets | 9,296 | 4,877 |
Rating category, 6.0 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 14,017 | 11,167 |
Rating category, 6.0 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 6,529 | 7,372 |
Rating category, 6.0 | Loans commitments | ||
Credit risk | ||
Guarantees and loan commitments | 7,488 | 3,795 |
Rating category, 5.5 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 79,706 | 93,425 |
Rating category, 5.5 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 69,468 | 72,625 |
Rating category, 5.5 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 73,141 | 80,225 |
Rating category, 5.5 | Public sector loans | Gross carrying amount | ||
Credit risk | ||
Financial assets | 3,673 | 7,600 |
Rating category, 5.5 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 6,565 | 13,200 |
Rating category, 5.5 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 3,046 | 2,621 |
Rating category, 5.5 | Loans commitments | ||
Credit risk | ||
Guarantees and loan commitments | 3,519 | 10,579 |
Rating category, 5.0 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 85,452 | 125,753 |
Rating category, 5.0 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 48,240 | 79,781 |
Rating category, 5.0 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 82,591 | 117,657 |
Rating category, 5.0 | Public sector loans | Gross carrying amount | ||
Credit risk | ||
Financial assets | 34,351 | 37,876 |
Rating category, 5.0 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 2,861 | 8,096 |
Rating category, 5.0 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 1,194 | 1,744 |
Rating category, 5.0 | Loans commitments | ||
Credit risk | ||
Guarantees and loan commitments | 1,667 | 6,352 |
Rating category, 4.5 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 26,701 | 30,976 |
Rating category, 4.5 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 19,490 | 25,216 |
Rating category, 4.5 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 21,251 | 30,078 |
Rating category, 4.5 | Public sector loans | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,761 | 4,862 |
Rating category, 4.5 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 5,450 | 898 |
Rating category, 4.5 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 4,020 | 72 |
Rating category, 4.5 | Loans commitments | ||
Credit risk | ||
Guarantees and loan commitments | 1,430 | 826 |
Rating category, 4.0 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 10,754 | 9,815 |
Rating category, 4.0 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 7,577 | 8,934 |
Rating category, 4.0 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 10,590 | 8,934 |
Rating category, 4.0 | Public sector loans | Gross carrying amount | ||
Credit risk | ||
Financial assets | 3,013 | |
Rating category, 4.0 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 164 | 881 |
Rating category, 4.0 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 878 | |
Rating category, 4.0 | Loans commitments | ||
Credit risk | ||
Guarantees and loan commitments | 164 | 3 |
Rating category, 3.5 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 6,748 | 6,668 |
Rating category, 3.5 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 6,688 | 5,643 |
Rating category, 3.5 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 6,688 | 5,643 |
Rating category, 3.5 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 60 | 1,025 |
Rating category, 3.5 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 4 | |
Rating category, 3.5 | Loans commitments | ||
Credit risk | ||
Guarantees and loan commitments | 60 | 1,021 |
Rating category, 3.0 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 7,826 | 2,490 |
Rating category, 3.0 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 7,152 | 2,361 |
Rating category, 3.0 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 7,152 | 2,428 |
Rating category, 3.0 | Public sector loans | Gross carrying amount | ||
Credit risk | ||
Financial assets | 67 | |
Rating category, 3.0 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 674 | 62 |
Rating category, 3.0 | Loans commitments | ||
Credit risk | ||
Guarantees and loan commitments | 674 | 62 |
Rating category, 2.5 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 1,752 | 386 |
Rating category, 2.5 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,237 | 386 |
Rating category, 2.5 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,237 | 386 |
Rating category, 2.5 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 515 | |
Rating category, 2.5 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 500 | |
Rating category, 2.5 | Loans commitments | ||
Credit risk | ||
Guarantees and loan commitments | 15 | |
Rating category, 2.0 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 1,082 | 1,064 |
Rating category, 2.0 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,079 | 1,041 |
Rating category, 2.0 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,079 | 1,041 |
Rating category, 2.0 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 3 | 23 |
Rating category, 2.0 | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 3 | |
Rating category, 2.0 | Loans commitments | ||
Credit risk | ||
Guarantees and loan commitments | 23 | |
Rating category, 1.5 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 197 | 118 |
Rating category, 1.5 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 195 | 118 |
Rating category, 1.5 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 195 | 118 |
Rating category, 1.5 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 2 | |
Rating category, 1.5 | Loans commitments | ||
Credit risk | ||
Guarantees and loan commitments | 2 | |
Rating category, 1.0 | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 1,211 | 101 |
Rating category, 1.0 | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 588 | 101 |
Rating category, 1.0 | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 588 | 101 |
Rating category, 1.0 | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 623 | |
Rating category, 1.0 | Loans commitments | ||
Credit risk | ||
Guarantees and loan commitments | 623 | |
Not rated. | ||
Credit risk | ||
Maximum Exposure to Credit Risk | 10,803 | 15,714 |
Not rated. | Commercial loans (except SMEs) | Gross carrying amount | ||
Credit risk | ||
Financial assets | 9,825 | 14,391 |
Not rated. | Loans and advances - Customers | Gross carrying amount | ||
Credit risk | ||
Financial assets | 9,825 | 14,391 |
Not rated. | Financial instruments not recognized on the consolidated balance sheet | ||
Credit risk | ||
Guarantees and loan commitments | 978 | 1,323 |
Not rated. | Guarantees | ||
Credit risk | ||
Guarantees and loan commitments | 475 | 829 |
Not rated. | Loans commitments | ||
Credit risk | ||
Guarantees and loan commitments | $ 503 | $ 494 |
Loans and advances to custom_17
Loans and advances to customers - External rating (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Credit risk | ||
Financial assets | $ 1,743,889 | $ 1,616,873 |
Maximum exposure to credit risk | 672,971 | 1,530,693 |
External credit grades | ||
Credit risk | ||
Maximum exposure to credit risk | 483,352 | 432,029 |
A-1 | ||
Credit risk | ||
Maximum exposure to credit risk | 311,624 | 271,581 |
A-2 | ||
Credit risk | ||
Maximum exposure to credit risk | 62,122 | 47,109 |
B-1 | ||
Credit risk | ||
Maximum exposure to credit risk | 41,974 | 35,473 |
B-2 | ||
Credit risk | ||
Maximum exposure to credit risk | 17,111 | 26,333 |
B-3 | ||
Credit risk | ||
Maximum exposure to credit risk | 9,985 | 9,897 |
C-1 | ||
Credit risk | ||
Maximum exposure to credit risk | 11,004 | 11,742 |
C-2 | ||
Credit risk | ||
Maximum exposure to credit risk | 12,596 | 11,341 |
D | ||
Credit risk | ||
Maximum exposure to credit risk | 10,904 | 10,615 |
E | ||
Credit risk | ||
Maximum exposure to credit risk | 6,032 | 7,938 |
Loans and advances - Customers | External credit grades | Gross carrying amount | ||
Credit risk | ||
Financial assets | 411,156 | 371,535 |
Loans and advances - Customers | A-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 256,652 | 225,710 |
Loans and advances - Customers | A-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 50,774 | 37,400 |
Loans and advances - Customers | B-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 39,774 | 33,535 |
Loans and advances - Customers | B-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 16,039 | 25,501 |
Loans and advances - Customers | B-3 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 9,303 | 9,305 |
Loans and advances - Customers | C-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 10,266 | 11,086 |
Loans and advances - Customers | C-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 11,931 | 10,836 |
Loans and advances - Customers | D | Gross carrying amount | ||
Credit risk | ||
Financial assets | 10,562 | 10,358 |
Loans and advances - Customers | E | Gross carrying amount | ||
Credit risk | ||
Financial assets | 5,855 | 7,804 |
Commercial loans (SME) | External credit grades | Gross carrying amount | ||
Credit risk | ||
Financial assets | 51,243 | 55,884 |
Commercial loans (SME) | A-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 31,683 | 42,503 |
Commercial loans (SME) | A-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 10,255 | 4,625 |
Commercial loans (SME) | B-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,668 | 1,280 |
Commercial loans (SME) | B-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 835 | 1,216 |
Commercial loans (SME) | B-3 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 2,694 | 2,216 |
Commercial loans (SME) | C-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,096 | 1,140 |
Commercial loans (SME) | C-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 697 | 626 |
Commercial loans (SME) | D | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,809 | 1,784 |
Commercial loans (SME) | E | Gross carrying amount | ||
Credit risk | ||
Financial assets | 506 | 494 |
Securitized mortgage assets | External credit grades | Gross carrying amount | ||
Credit risk | ||
Financial assets | 210,808 | 193,841 |
Securitized mortgage assets | A-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 173,202 | 142,698 |
Securitized mortgage assets | A-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 10,483 | 7,628 |
Securitized mortgage assets | B-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 5,998 | 6,759 |
Securitized mortgage assets | B-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 3,667 | 14,994 |
Securitized mortgage assets | B-3 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,233 | 2,071 |
Securitized mortgage assets | C-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 3,806 | 5,031 |
Securitized mortgage assets | C-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 6,172 | 5,815 |
Securitized mortgage assets | D | Gross carrying amount | ||
Credit risk | ||
Financial assets | 4,795 | 5,297 |
Securitized mortgage assets | E | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,452 | 3,548 |
Installment loans to individuals - Revolving consumer credit cards loans | External credit grades | Gross carrying amount | ||
Credit risk | ||
Financial assets | 64,349 | 53,406 |
Installment loans to individuals - Revolving consumer credit cards loans | A-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 18,487 | 15,144 |
Installment loans to individuals - Revolving consumer credit cards loans | A-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 24,566 | 19,831 |
Installment loans to individuals - Revolving consumer credit cards loans | B-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 8,026 | 6,711 |
Installment loans to individuals - Revolving consumer credit cards loans | B-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 2,325 | 1,939 |
Installment loans to individuals - Revolving consumer credit cards loans | B-3 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,691 | 1,419 |
Installment loans to individuals - Revolving consumer credit cards loans | C-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 2,890 | 2,653 |
Installment loans to individuals - Revolving consumer credit cards loans | C-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 2,643 | 2,260 |
Installment loans to individuals - Revolving consumer credit cards loans | D | Gross carrying amount | ||
Credit risk | ||
Financial assets | 2,817 | 2,388 |
Installment loans to individuals - Revolving consumer credit cards loans | E | Gross carrying amount | ||
Credit risk | ||
Financial assets | 904 | 1,061 |
Installment loans to individuals - Non-revolving consumer loans | External credit grades | Gross carrying amount | ||
Credit risk | ||
Financial assets | 84,756 | 68,404 |
Installment loans to individuals - Non-revolving consumer loans | A-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 33,280 | 25,365 |
Installment loans to individuals - Non-revolving consumer loans | A-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 5,470 | 5,316 |
Installment loans to individuals - Non-revolving consumer loans | B-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 24,082 | 18,785 |
Installment loans to individuals - Non-revolving consumer loans | B-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 9,212 | 7,352 |
Installment loans to individuals - Non-revolving consumer loans | B-3 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 3,685 | 3,599 |
Installment loans to individuals - Non-revolving consumer loans | C-1 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 2,474 | 2,262 |
Installment loans to individuals - Non-revolving consumer loans | C-2 | Gross carrying amount | ||
Credit risk | ||
Financial assets | 2,419 | 2,135 |
Installment loans to individuals - Non-revolving consumer loans | D | Gross carrying amount | ||
Credit risk | ||
Financial assets | 1,141 | 889 |
Installment loans to individuals - Non-revolving consumer loans | E | Gross carrying amount | ||
Credit risk | ||
Financial assets | 2,993 | 2,701 |
Financial instruments not recognized on the consolidated balance sheet | External credit grades | ||
Credit risk | ||
Guarantees and loan commitments | 72,196 | 60,494 |
Financial instruments not recognized on the consolidated balance sheet | A-1 | ||
Credit risk | ||
Guarantees and loan commitments | 54,972 | 45,871 |
Financial instruments not recognized on the consolidated balance sheet | A-2 | ||
Credit risk | ||
Guarantees and loan commitments | 11,348 | 9,709 |
Financial instruments not recognized on the consolidated balance sheet | B-1 | ||
Credit risk | ||
Guarantees and loan commitments | 2,200 | 1,938 |
Financial instruments not recognized on the consolidated balance sheet | B-2 | ||
Credit risk | ||
Guarantees and loan commitments | 1,072 | 832 |
Financial instruments not recognized on the consolidated balance sheet | B-3 | ||
Credit risk | ||
Guarantees and loan commitments | 682 | 592 |
Financial instruments not recognized on the consolidated balance sheet | C-1 | ||
Credit risk | ||
Guarantees and loan commitments | 738 | 656 |
Financial instruments not recognized on the consolidated balance sheet | C-2 | ||
Credit risk | ||
Guarantees and loan commitments | 665 | 505 |
Financial instruments not recognized on the consolidated balance sheet | D | ||
Credit risk | ||
Guarantees and loan commitments | 342 | 257 |
Financial instruments not recognized on the consolidated balance sheet | E | ||
Credit risk | ||
Guarantees and loan commitments | 177 | 134 |
Available lines of credit cards and non-revolving consumer loans | External credit grades | ||
Credit risk | ||
Guarantees and loan commitments | 72,089 | 60,428 |
Available lines of credit cards and non-revolving consumer loans | A-1 | ||
Credit risk | ||
Guarantees and loan commitments | 54,908 | 45,805 |
Available lines of credit cards and non-revolving consumer loans | A-2 | ||
Credit risk | ||
Guarantees and loan commitments | 11,316 | 9,709 |
Available lines of credit cards and non-revolving consumer loans | B-1 | ||
Credit risk | ||
Guarantees and loan commitments | 2,196 | 1,938 |
Available lines of credit cards and non-revolving consumer loans | B-2 | ||
Credit risk | ||
Guarantees and loan commitments | 1,072 | 832 |
Available lines of credit cards and non-revolving consumer loans | B-3 | ||
Credit risk | ||
Guarantees and loan commitments | 682 | 592 |
Available lines of credit cards and non-revolving consumer loans | C-1 | ||
Credit risk | ||
Guarantees and loan commitments | 738 | 656 |
Available lines of credit cards and non-revolving consumer loans | C-2 | ||
Credit risk | ||
Guarantees and loan commitments | 658 | 505 |
Available lines of credit cards and non-revolving consumer loans | D | ||
Credit risk | ||
Guarantees and loan commitments | 342 | 257 |
Available lines of credit cards and non-revolving consumer loans | E | ||
Credit risk | ||
Guarantees and loan commitments | 177 | 134 |
Guarantees | External credit grades | ||
Credit risk | ||
Guarantees and loan commitments | 66 | |
Guarantees | A-1 | ||
Credit risk | ||
Guarantees and loan commitments | $ 66 | |
Loans commitments | External credit grades | ||
Credit risk | ||
Guarantees and loan commitments | 107 | |
Loans commitments | A-1 | ||
Credit risk | ||
Guarantees and loan commitments | 64 | |
Loans commitments | A-2 | ||
Credit risk | ||
Guarantees and loan commitments | 32 | |
Loans commitments | B-1 | ||
Credit risk | ||
Guarantees and loan commitments | 4 | |
Loans commitments | C-2 | ||
Credit risk | ||
Guarantees and loan commitments | $ 7 |
Loans and advances to custom_18
Loans and advances to customers - Securitization (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Securitized loans | ||
Financial instruments | ||
Loans and advances to customers | $ 0 | $ 0 |
Hedging derivatives - By type (
Hedging derivatives - By type (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Hedging derivatives | ||
Fair value of hedging derivative assets | $ 10,181 | $ 11,248 |
Hedging derivatives | 4,461 | 8,162 |
Fair value hedges | ||
Hedging derivatives | ||
Fair value of hedging derivative assets | 4,923 | 1,468 |
Hedging derivatives | 3,205 | 7,018 |
Cash flow hedges | ||
Hedging derivatives | ||
Fair value of hedging derivative assets | 5,258 | 9,780 |
Hedging derivatives | $ 1,256 | $ 1,144 |
Hedging derivatives - Fair valu
Hedging derivatives - Fair value hedges (Details) € in Millions, £ in Millions, MXV in Millions, $ in Millions, $ in Millions | 12 Months Ended | ||||||||||||
Dec. 31, 2022 MXN ($) | Dec. 31, 2021 MXN ($) | Dec. 31, 2020 MXN ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 MXN ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 GBP (£) | Dec. 31, 2022 MXV | Dec. 31, 2021 USD ($) | Dec. 31, 2021 MXN ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 GBP (£) | Dec. 31, 2021 MXV | |
Fair value hedges | |||||||||||||
Hedging derivatives | |||||||||||||
Gains/(losses) on financial assets and liabilities (net) - derivative financial instrument for fair value hedging | $ 5,225 | $ 8,746 | $ (6,884) | ||||||||||
Gains/(losses) on financial assets and liabilities (net) - hedged items for fair value hedging | $ (4,903) | $ (9,278) | $ 6,427 | ||||||||||
Fair value hedges | Interest rate risk | Loans and receivables | Mexican peso | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | $ 1,600 | $ 1,867 | |||||||||||
Fair value hedges | Interest rate risk | Unsecured notes | Mexican peso | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | 6,500 | ||||||||||||
Fair value hedges | Interest rate risk | Promissory notes | Mexican peso | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | 2,731 | ||||||||||||
Fair value hedges | Interest rate risk | Mexican Government Bonds | Mexican peso | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | 117,701 | 47,047 | |||||||||||
Fair value hedges | Interest rate and foreign exchange risk | Loans and receivables | US dollar | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | $ 1 | 4 | |||||||||||
Fair value hedges | Interest rate and foreign exchange risk | UMS | US dollar | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | $ 398 | 7,824 | $ 398 | 7,824 | |||||||||
Fair value hedges | Interest rate and foreign exchange risk | UMS | Euro | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | 9,887 | € 447 | 17,744 | € 819 | |||||||||
Fair value hedges | Interest rate and foreign exchange risk | UMS | Pound sterling | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | 1,492 | £ 58 | 1,492 | £ 58 | |||||||||
Fair value hedges | Interest rate and inflation risk | UDIBONDS | UDI | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | $ 1,895 | MXV 405 | 1,895 | MXV 405 | |||||||||
Cash flow hedges | Interest rate risk | Unsecured notes | Mexican peso | |||||||||||||
Hedging derivatives | |||||||||||||
Nominal Value | $ 7,311 |
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, 2022 MXN ($) | Dec. 31, 2021 MXN ($) | Dec. 31, 2020 MXN ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 GBP (£) | Dec. 31, 2022 BRL (R$) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 GBP (£) | Dec. 31, 2021 BRL (R$) | |
Hedging derivatives | |||||||||||
Valuation adjustments, cash flow hedge | $ (1,224) | $ 1,394 | $ (376) | ||||||||
Other comprehensive income under Valuation adjustments - Cash flow hedges | (6) | ||||||||||
Cash flow hedges | |||||||||||
Hedging derivatives | |||||||||||
Valuation adjustments, cash flow hedge | (1,224) | 1,394 | $ (376) | ||||||||
Other comprehensive income under Valuation adjustments - Cash flow hedges | (6) | ||||||||||
Cash flow hedges | Interest rate risk | Unsecured notes | Mexican peso | |||||||||||
Hedging derivatives | |||||||||||
Nominal Value | 7,311 | ||||||||||
Cash flow hedges | Currency risk | Loans and receivables | US dollar | |||||||||||
Hedging derivatives | |||||||||||
Nominal Value | 174 | 523 | $ 14 | $ 41 | |||||||
Cash flow hedges | Currency risk | Loans and receivables | Euro | |||||||||||
Hedging derivatives | |||||||||||
Nominal Value | 351 | 491 | € 21 | € 29 | |||||||
Cash flow hedges | Currency risk | Senior Unsecured Notes | US dollar | |||||||||||
Hedging derivatives | |||||||||||
Nominal Value | 11,125 | 543 | |||||||||
Cash flow hedges | Currency risk | UMS | US dollar | |||||||||||
Hedging derivatives | |||||||||||
Nominal Value | 911 | 911 | $ 50 | 50 | |||||||
Cash flow hedges | Currency risk | UMS | Euro | |||||||||||
Hedging derivatives | |||||||||||
Nominal Value | 519 | € 25 | |||||||||
Cash flow hedges | Currency risk | UMS | Pound sterling | |||||||||||
Hedging derivatives | |||||||||||
Nominal Value | 260 | 260 | £ 10 | £ 10 | |||||||
Cash flow hedges | Currency risk | Brazilian Government Notes | US dollar | |||||||||||
Hedging derivatives | |||||||||||
Nominal Value | 33,353 | 36,171 | R$ 1342 | $ 1,466 | |||||||
Cash flow hedges | Currency risk | Brazilian Government Notes | Brazilian real | |||||||||||
Hedging derivatives | |||||||||||
Nominal Value | 7,196 | $ 28,787 | 1,917 | R$ 8295 | |||||||
Cash flow hedges | Currency risk | Brazilian Government Notes Forward Fx-BRL | Brazilian real | |||||||||||
Hedging derivatives | |||||||||||
Nominal Value | $ 16,425 | R$ 5187 |
Hedging derivatives - Reconcili
Hedging derivatives - Reconciliation of valuation adjustments (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Hedging derivatives | |||
Balance at January 1 | $ 414 | ||
Valuation adjustments, cash flow hedge | (1,224) | $ 1,394 | $ (376) |
Amounts reclassified to the consolidated income statement, Cash flow hedge | 8 | 11 | (43) |
Income tax, Cash flow hedge | 365 | (422) | 126 |
Balance at December 31 | (437) | 414 | |
Cash flow hedges | |||
Hedging derivatives | |||
Balance at January 1 | 414 | (569) | (276) |
Valuation adjustments, cash flow hedge | (1,224) | 1,394 | (376) |
Amounts reclassified to the consolidated income statement, Cash flow hedge | 8 | 11 | (43) |
Income from cash flow hedging derivatives swaps and discontinued cash flow hedge accounting | 8 | 11 | (43) |
Income tax, Cash flow hedge | 365 | (422) | 126 |
Balance at December 31 | (437) | $ 414 | $ (569) |
Cash flows to be received | 74 | ||
Cash flows to be paid | (698) | ||
Cash flow hedges | Less than 3 Months | |||
Hedging derivatives | |||
Cash flows to be received | 13 | ||
Cash flows to be paid | (242) | ||
Cash flow hedges | 3 to 12 months | |||
Hedging derivatives | |||
Cash flows to be received | 40 | ||
Cash flows to be paid | (205) | ||
Cash flow hedges | Between one and five years | |||
Hedging derivatives | |||
Cash flows to be received | 21 | ||
Cash flows to be paid | (234) | ||
Cash flow hedges | More than five years | |||
Hedging derivatives | |||
Cash flows to be paid | $ (17) |
Non-current assets held for s_3
Non-current assets held for sale - Breakdown (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Non-current assets held for sale | |||
Non-current assets held for sale | $ 3,015 | $ 773 | |
Foreclosed assets | |||
Non-current assets held for sale | |||
Non-current assets held for sale | 1,429 | $ 773 | $ 551 |
Investment held for sale | |||
Non-current assets held for sale | |||
Non-current assets held for sale | $ 1,586 |
Non-current assets held for s_4
Non-current assets held for sale - Foreclosed assets (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Non-current assets held for sale | |||
Gains/(losses) on disposal of non-current assets held for sale not classified as discontinued operations (net) | $ 70 | $ 20 | $ 9 |
Impairment losses | (27) | (119) | |
Foreclosed assets | |||
Non-current assets held for sale | |||
Gains/(losses) on disposal of non-current assets held for sale not classified as discontinued operations (net) | (70) | 20 | 9 |
Impairment losses | $ 0 | $ (27) | $ (119) |
Non-current assets held for s_5
Non-current assets held for sale - Change in foreclosed assets (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Non-current assets held for sale | |||
Balances at beginning of year | $ 773 | ||
Impairment losses | $ (27) | $ (119) | |
Balances at end of year | 3,015 | 773 | |
Foreclosed assets | |||
Non-current assets held for sale | |||
Balances at beginning of year | 773 | 551 | |
Additions | 812 | 559 | |
Disposals | (156) | (310) | |
Impairment losses | 0 | (27) | (119) |
Balances at end of year | $ 1,429 | $ 773 | $ 551 |
Non-current assets held for s_6
Non-current assets held for sale - Investment held for sale (Details) - Santander Merchant Platform Solutions, S.L., Held for sale - Investment held for sale - MXN ($) $ in Millions | 12 Months Ended | |
Aug. 29, 2022 | Dec. 31, 2023 | |
Non-current assets held for sale | ||
Ownership interest (as a percent) | 49% | |
Forecast | ||
Non-current assets held for sale | ||
Ownership interest sold (as a percent) | 49% | |
Number of shares in investment sold | 1,139,735,235 | |
Sale price (in dollars) | $ 1,948 |
Tangible assets - Changes in th
Tangible assets - Changes in the consolidated balance sheet (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in Tangible assets | ||
Balances at the beginning of the year | $ 12,620 | |
Balances at the end of the year | 13,707 | $ 12,620 |
Tangible assets pledged as security for liabilities | 0 | |
Gross carrying amount | ||
Changes in Tangible assets | ||
Balances at the beginning of the year | 25,350 | 23,087 |
Additions | 3,314 | 2,450 |
Disposals | (491) | (187) |
Balances at the end of the year | 28,173 | 25,350 |
Accumulated depreciation and amortization | ||
Changes in Tangible assets | ||
Balances at the beginning of the year | (12,730) | (10,881) |
Additions | (2,227) | (2,032) |
Disposals | 491 | 183 |
Balances at the end of the year | $ (14,466) | $ (12,730) |
Tangible assets - Breakdown by
Tangible assets - Breakdown by asset class of Tangible assets for own use (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Tangible assets for own use | |||
Tangible assets | $ 13,707 | $ 12,620 | |
Gross carrying amount | |||
Tangible assets for own use | |||
Tangible assets | 28,173 | 25,350 | $ 23,087 |
Accumulated depreciation and amortization | |||
Tangible assets for own use | |||
Tangible assets | (14,466) | (12,730) | $ (10,881) |
Buildings for own use | |||
Tangible assets for own use | |||
Tangible assets | 7,144 | 7,118 | |
Buildings for own use | Gross carrying amount | |||
Tangible assets for own use | |||
Tangible assets | 15,638 | 14,640 | |
Buildings for own use | Accumulated depreciation and amortization | |||
Tangible assets for own use | |||
Tangible assets | (8,494) | (7,522) | |
IT equipment and fixtures | |||
Tangible assets for own use | |||
Tangible assets | 3,589 | 3,567 | |
IT equipment and fixtures | Gross carrying amount | |||
Tangible assets for own use | |||
Tangible assets | 7,609 | 6,922 | |
IT equipment and fixtures | Accumulated depreciation and amortization | |||
Tangible assets for own use | |||
Tangible assets | (4,020) | (3,355) | |
Furniture and vehicles | |||
Tangible assets for own use | |||
Tangible assets | 1,527 | 1,373 | |
Furniture and vehicles | Gross carrying amount | |||
Tangible assets for own use | |||
Tangible assets | 3,479 | 3,226 | |
Furniture and vehicles | Accumulated depreciation and amortization | |||
Tangible assets for own use | |||
Tangible assets | (1,952) | (1,853) | |
Other fixtures | |||
Tangible assets for own use | |||
Tangible assets | 1,447 | 562 | |
Other fixtures | Gross carrying amount | |||
Tangible assets for own use | |||
Tangible assets | $ 1,447 | $ 562 |
Leases - Right of use assets (D
Leases - Right of use assets (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Right-of-use assets | ||
Balance at beginning of period | $ 5,175 | $ 5,643 |
Remeasurement of right-of-use assets | 669 | 551 |
Additions in right-of-use assets | 2,372 | 726 |
Depreciation | (1,776) | (108) |
Disposals | (176) | (1,637) |
Balance at end of period | 6,264 | 5,175 |
Branch offices | ||
Right-of-use assets | ||
Balance at beginning of period | 4,999 | 5,435 |
Remeasurement of right-of-use assets | 669 | 551 |
Additions in right-of-use assets | 2,372 | 663 |
Depreciation | (1,651) | (108) |
Disposals | (176) | (1,542) |
Balance at end of period | 6,213 | 4,999 |
Furniture and equipment | ||
Right-of-use assets | ||
Balance at beginning of period | 176 | 208 |
Additions in right-of-use assets | 63 | |
Depreciation | (125) | |
Disposals | (95) | |
Balance at end of period | $ 51 | $ 176 |
Leases - Activity in finance le
Leases - Activity in finance lease liabilities (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Lease liabilities | ||
Balance at beginning of period | $ 5,716 | $ 6,131 |
Interest expense | 530 | 646 |
New contracts | 2,372 | 725 |
Remeasurement on leases liabilities | 679 | 350 |
Disposals | (57) | (103) |
Payments | (2,275) | (2,033) |
Balance at end of period | $ 6,965 | $ 5,716 |
Leases - Maturity of lease paym
Leases - Maturity of lease payments (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Undiscounted contractual maturities | |||
Gross lease liabilities | $ 9,124 | ||
Lease liabilities included in the financial statement of financial position | 6,965 | $ 5,716 | $ 6,131 |
Current lease liabilities | 1,700 | ||
Long-term lease liabilities | 5,265 | ||
Within one year | |||
Undiscounted contractual maturities | |||
Gross lease liabilities | 2,001 | ||
1 to 3 years | |||
Undiscounted contractual maturities | |||
Gross lease liabilities | 3,086 | ||
3 to 5 years | |||
Undiscounted contractual maturities | |||
Gross lease liabilities | 2,038 | ||
More than five years | |||
Undiscounted contractual maturities | |||
Gross lease liabilities | $ 1,999 |
Leases - Leaseback (Detail)
Leases - Leaseback (Detail) | 3 Months Ended |
Jun. 30, 2012 period property | |
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, 2022 | Dec. 31, 2021 | |
Leases | ||
Interest on lease liabilities | $ 530 | $ 646 |
Expense relating to short-term leases | 10 | |
Expense relating to leases of low-value assets that are not shown above as short-term leases | 761 | |
Cash flows from lease liabilities, Total cash flows | $ (771) |
Intangible assets - Goodwill -
Intangible assets - Goodwill - Breakdown based on CGUs to which Goodwill has been allocated and Changes (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill | ||
Goodwill | $ 1,734 | $ 1,734 |
Intangible assets - Goodwill _2
Intangible assets - Goodwill - Assumptions used in the calculation of impairment (Details) - MXN ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill | |||
Period of projection of cash flows | 10 years | ||
Discount rate (as a percent) | 12.39% | ||
Perpetual growth (as a percent) | 0% | ||
Risk free rate (as a percent) | (9.08%) | ||
Beta | 0.909 | ||
Equity Risk Premium (as a percent) | 9.23% | ||
Goodwill impairment | $ 0 | $ 0 | $ 0 |
Cost of Equity, measurement input | |||
Goodwill | |||
Significant unobservable input, assets | 0.1747 | ||
Cost of Debt, measurement input | |||
Goodwill | |||
Significant unobservable input, assets | 0.1070 | ||
Capital Structure, Equity, measurement input | |||
Goodwill | |||
Significant unobservable input, assets | 0.25 | ||
Capital Structure, Debt, measurement input | |||
Goodwill | |||
Significant unobservable input, assets | 0.75 |
Intangible assets - Other int_3
Intangible assets - Other intangible assets - Changes (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in Other intangible assets | ||
Balances at beginning of the year | $ 7,677 | |
Balances at end of the year | 8,947 | $ 7,677 |
Gross carrying amount | ||
Changes in Other intangible assets | ||
Balances at beginning of the year | 22,264 | 19,237 |
Additions | 3,940 | 3,371 |
Disposals | (344) | |
Balances at end of the year | 26,204 | 22,264 |
Accumulated depreciation, amortisation and impairment | ||
Changes in Other intangible assets | ||
Balances at beginning of the year | (14,587) | (12,364) |
Additions | (2,670) | (2,566) |
Disposals | 343 | |
Balances at end of the year | $ (17,257) | $ (14,587) |
Intangible assets - Other int_4
Intangible assets - Other intangible assets - Breakdown (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible assets - Other intangible assets | |||
Other intangible assets | $ 8,947 | $ 7,677 | |
Intangible assets with restricted title or pledged as security for liabilities | 0 | 0 | |
Gross carrying amount | |||
Intangible assets - Other intangible assets | |||
Other intangible assets | 26,204 | 22,264 | $ 19,237 |
Accumulated depreciation and amortization | |||
Intangible assets - Other intangible assets | |||
Other intangible assets | $ (17,257) | $ (14,587) | |
IT developments | |||
Intangible assets - Other intangible assets | |||
Estimated useful life | 3 years | 3 years | |
Other intangible assets | $ 8,919 | $ 7,640 | |
IT developments | Gross carrying amount | |||
Intangible assets - Other intangible assets | |||
Other intangible assets | 26,117 | 22,176 | |
IT developments | Accumulated depreciation and amortization | |||
Intangible assets - Other intangible assets | |||
Other intangible assets | $ (17,198) | $ (14,536) | |
Other intangibles | |||
Intangible assets - Other intangible assets | |||
Estimated useful life | 10 years | 10 years | |
Other intangible assets | $ 28 | $ 37 | |
Other intangibles | Gross carrying amount | |||
Intangible assets - Other intangible assets | |||
Other intangible assets | 87 | 88 | |
Other intangibles | Accumulated depreciation and amortization | |||
Intangible assets - Other intangible assets | |||
Other intangible assets | $ (59) | $ (51) |
Other assets (Details)
Other assets (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Other Assets [Line Items] | ||
Credit and debit card operating balances | $ 1,341 | $ 2,421 |
Insurance commission receivables | 1,682 | 1,436 |
Prepaid expenses | 681 | 812 |
Other miscellaneous assets | 7,477 | 5,457 |
Other assets, total | $ 11,181 | $ 10,126 |
Other assets - Maturity (Detail
Other assets - Maturity (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Other Assets [Line Items] | ||
Credit and debit card operating balances | $ 1,341 | $ 2,421 |
Insurance commission receivables | 1,682 | 1,436 |
Prepaid expenses | 681 | 812 |
Other miscellaneous assets | 7,477 | 5,457 |
Other assets, total | 11,181 | $ 10,126 |
Gross carrying amount | ||
Schedule of Other Assets [Line Items] | ||
Credit and debit card operating balances | 1,341 | |
Insurance commission receivables | 1,682 | |
Prepaid expenses | 681 | |
Other miscellaneous assets | 8,649 | |
Other assets, total | 12,353 | |
Impairment losses | Lifetime expected credit losses [member] | ||
Schedule of Other Assets [Line Items] | ||
Other miscellaneous assets | $ (1,172) | |
Current | ||
Schedule of Other Assets [Line Items] | ||
Expected credit loss rate | 4% | |
Other assets, total | $ 7,217 | |
Current | Gross carrying amount | ||
Schedule of Other Assets [Line Items] | ||
Credit and debit card operating balances | 1,220 | |
Insurance commission receivables | 129 | |
Prepaid expenses | 681 | |
Other miscellaneous assets | 5,456 | |
Other assets, total | 7,486 | |
Current | Impairment losses | Lifetime expected credit losses [member] | ||
Schedule of Other Assets [Line Items] | ||
Other miscellaneous assets | $ (269) | |
1 to 30 Days | ||
Schedule of Other Assets [Line Items] | ||
Expected credit loss rate | 0% | |
Other assets, total | $ 1,321 | |
1 to 30 Days | Gross carrying amount | ||
Schedule of Other Assets [Line Items] | ||
Credit and debit card operating balances | 66 | |
Insurance commission receivables | 60 | |
Other miscellaneous assets | 1,200 | |
Other assets, total | 1,326 | |
1 to 30 Days | Impairment losses | Lifetime expected credit losses [member] | ||
Schedule of Other Assets [Line Items] | ||
Other miscellaneous assets | $ (5) | |
31 to 60 Days | ||
Schedule of Other Assets [Line Items] | ||
Expected credit loss rate | 7% | |
Other assets, total | $ 439 | |
31 to 60 Days | Gross carrying amount | ||
Schedule of Other Assets [Line Items] | ||
Credit and debit card operating balances | 39 | |
Insurance commission receivables | 84 | |
Other miscellaneous assets | 349 | |
Other assets, total | 472 | |
31 to 60 Days | Impairment losses | Lifetime expected credit losses [member] | ||
Schedule of Other Assets [Line Items] | ||
Other miscellaneous assets | $ (33) | |
More than 90 days | ||
Schedule of Other Assets [Line Items] | ||
Expected credit loss rate | 28% | |
Other assets, total | $ 2,204 | |
More than 90 days | Gross carrying amount | ||
Schedule of Other Assets [Line Items] | ||
Credit and debit card operating balances | 16 | |
Insurance commission receivables | 1,409 | |
Other miscellaneous assets | 1,644 | |
Other assets, total | 3,069 | |
More than 90 days | Impairment losses | Lifetime expected credit losses [member] | ||
Schedule of Other Assets [Line Items] | ||
Other miscellaneous assets | $ (865) |
Deposits from the Central Ban_3
Deposits from the Central Bank and Deposits from credit institutions - Classification (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deposits | ||
Financial liabilities at amortized cost | $ 1,165,889 | $ 1,118,145 |
Total financial liabilities | 1,604,462 | 1,477,724 |
Deposits from the Central Bank and credit institutions | ||
Deposits | ||
Financial liabilities at fair value through profit or loss | 53,873 | 40,848 |
Financial liabilities at amortized cost | 164,110 | 169,955 |
Total financial liabilities | $ 217,983 | $ 210,803 |
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, 2022 | Dec. 31, 2021 |
Type: | ||
Financial instruments received as collateral | $ 123,940 | $ 68,252 |
Cash collateral received | 26,861 | 26,919 |
Total financial liabilities | 1,604,462 | 1,477,724 |
Deposits from the Central Bank and credit institutions | ||
Type: | ||
Reciprocal accounts | 12,870 | 13,373 |
Time deposits | 3,559 | 5,471 |
Overnight deposits | 13,589 | 26,164 |
Repurchase agreements | 152,629 | 132,621 |
Other accounts | 35,258 | 33,072 |
Cash collateral received | 24,720 | 26,919 |
Others | 10,538 | 6,153 |
Accrued interest | 78 | 102 |
Total financial liabilities | 217,983 | 210,803 |
Mexican peso | Deposits from the Central Bank and credit institutions | ||
Type: | ||
Total financial liabilities | 187,050 | 177,336 |
US dollar | Deposits from the Central Bank and credit institutions | ||
Type: | ||
Total financial liabilities | 30,902 | 33,424 |
Other currencies | Deposits from the Central Bank and credit institutions | ||
Type: | ||
Total financial liabilities | $ 31 | $ 43 |
Customer deposits - Classificat
Customer deposits - Classification (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Customer deposits | ||
Financial liabilities at amortized cost | $ 1,165,889 | $ 1,118,145 |
Total financial liabilities | 1,604,462 | 1,477,724 |
Deposits - Customers | ||
Customer deposits | ||
Financial liabilities at fair value through profit or loss | 119,769 | 114,078 |
Financial liabilities at amortized cost | 808,529 | 777,886 |
Total financial liabilities | $ 928,298 | $ 891,964 |
Customer deposits - By type and
Customer deposits - By type and currency (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Demand deposits | ||
Cash collateral received | $ 26,861 | $ 26,919 |
Time deposits: | ||
Total financial liabilities | 1,604,462 | 1,477,724 |
Deposits - Customers | ||
Type: | ||
Repurchase agreements | 146,691 | 131,639 |
Demand deposits | ||
Current accounts | 538,409 | 541,257 |
Other deposits | 22,972 | 22,760 |
Cash collateral received | 2,141 | |
Others | 20,831 | 22,760 |
Time deposits: | ||
Fixed-term deposits | 218,316 | 195,431 |
Accrued interest | 1,910 | 877 |
Total financial liabilities | 928,298 | 891,964 |
Deposits - Customers | Mexican peso | ||
Time deposits: | ||
Total financial liabilities | 833,323 | 798,976 |
Deposits - Customers | US dollar | ||
Time deposits: | ||
Total financial liabilities | 94,975 | 92,987 |
Deposits - Customers | Other currencies | ||
Time deposits: | ||
Total financial liabilities | 1 | |
Financial instrument in connection with OTC derivative transactions | Deposits | ||
Demand deposits | ||
Cash collateral received | 26,861 | 26,919 |
Financial instrument in connection with OTC derivative transactions | Deposits - Customers | ||
Demand deposits | ||
Cash collateral received | $ 0 | $ 0 |
Marketable debt securities - Br
Marketable debt securities - Breakdown (Details) $ in Millions, $ in Millions | Dec. 31, 2022 MXN ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 MXN ($) |
Marketable debt securities | |||
Financial liabilities at amortized cost | $ 1,165,889 | $ 1,118,145 | |
Total financial liabilities | 1,604,462 | 1,477,724 | |
Marketable debt securities | |||
Marketable debt securities | |||
Financial liabilities at fair value through profit or loss | 520 | 259 | |
Financial liabilities at amortized cost | 134,393 | 101,423 | |
Total financial liabilities | 134,913 | 101,682 | |
Marketable debt securities | Mexican peso | |||
Marketable debt securities | |||
Total financial liabilities | 99,189 | 44,687 | |
Marketable debt securities | US dollar | |||
Marketable debt securities | |||
Total financial liabilities | 35,724 | 56,995 | |
Certificates of deposit (unsecured) | |||
Marketable debt securities | |||
Total financial liabilities | 36,426 | 2,628 | |
Senior Unsecured Notes | |||
Marketable debt securities | |||
Total financial liabilities | 34,469 | 56,801 | |
Structured bank bonds | |||
Marketable debt securities | |||
Total financial liabilities | 2,851 | $ 2,851 | 981 |
Promissory notes | |||
Marketable debt securities | |||
Total financial liabilities | 25,988 | 25,988 | 13,543 |
Unsecured bonds | |||
Marketable debt securities | |||
Total financial liabilities | $ 35,179 | $ 35,179 | $ 27,729 |
Marketable debt securities - Ch
Marketable debt securities - Changes in financial liabilities at fair value (Details) $ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 MXN ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 MXN ($) | |
Changes in financial instruments, Liabilities | |||
Financial liabilities at beginning of period | $ 1,477,724 | ||
Financial liabilities at end of period | 1,604,462 | $ 1,477,724 | |
Marketable debt securities | |||
Changes in financial instruments, Liabilities | |||
Financial liabilities at beginning of period | 101,682 | ||
Financial liabilities at end of period | 134,913 | 101,682 | |
Marketable debt securities | Financial liabilities at fair value through profit or loss | |||
Changes in financial instruments, Liabilities | |||
Financial liabilities at beginning of period | 259 | 1,363 | |
Issues | 471 | 197 | |
Redemptions | (169) | (1,315) | |
Changes in fair value recognized in profit or loss | (41) | 14 | |
Financial liabilities at end of period | 520 | 259 | |
Structured bank bonds | |||
Changes in financial instruments, Liabilities | |||
Financial liabilities at beginning of period | 981 | ||
Financial liabilities at end of period | 2,851 | $ 2,851 | 981 |
Structured bank bonds | Financial liabilities at fair value through profit or loss | |||
Changes in financial instruments, Liabilities | |||
Issues | 471 | 197 | |
Redemptions | (169) | (1,315) | |
Parent [member] | Marketable debt securities | Financial liabilities at fair value through profit or loss | |||
Changes in financial instruments, Liabilities | |||
Redemptions | (169) | (1,315) | |
Parent [member] | Structured bank bonds | Financial liabilities at fair value through profit or loss | |||
Changes in financial instruments, Liabilities | |||
Issues | $ 471 | $ 197 |
Marketable debt securities - _2
Marketable debt securities - Changes in financial liabilities at amortized cost (Details) $ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 MXN ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 MXN ($) | |
Changes in financial instruments, Liabilities | |||
Financial liabilities at beginning of period | $ 1,477,724 | ||
Financial liabilities at end of period | 1,604,462 | $ 1,477,724 | |
Marketable debt securities | |||
Changes in financial instruments, Liabilities | |||
Financial liabilities at beginning of period | 101,682 | ||
Financial liabilities at end of period | 134,913 | 101,682 | |
Marketable debt securities | Financial liabilities at amortized cost | |||
Changes in financial instruments, Liabilities | |||
Financial liabilities at beginning of period | 101,423 | 130,754 | |
Issues | 1,601,167 | 1,197,521 | |
Redemptions | (1,565,677) | (1,228,486) | |
Accrued interest | 131 | (42) | |
Effect of changes in foreign exchange rates | (2,651) | 1,676 | |
Financial liabilities at end of period | 134,393 | 101,423 | |
Certificates of deposit (unsecured) | |||
Changes in financial instruments, Liabilities | |||
Financial liabilities at beginning of period | 2,628 | ||
Financial liabilities at end of period | 36,426 | 2,628 | |
Certificates of deposit (unsecured) | Financial liabilities at amortized cost | |||
Changes in financial instruments, Liabilities | |||
Issues | 36,475 | 3,347 | |
Redemptions | (2,824) | (35,156) | |
Structured bank bonds | |||
Changes in financial instruments, Liabilities | |||
Financial liabilities at beginning of period | 981 | ||
Financial liabilities at end of period | 2,851 | $ 2,851 | 981 |
Structured bank bonds | Financial liabilities at amortized cost | |||
Changes in financial instruments, Liabilities | |||
Issues | 26,711 | 20,880 | |
Redemptions | (25,135) | (20,956) | |
Senior Unsecured Notes | |||
Changes in financial instruments, Liabilities | |||
Financial liabilities at beginning of period | 56,801 | ||
Financial liabilities at end of period | 34,469 | 56,801 | |
Senior Unsecured Notes | Financial liabilities at amortized cost | |||
Changes in financial instruments, Liabilities | |||
Redemptions | (19,603) | ||
Promissory notes | |||
Changes in financial instruments, Liabilities | |||
Financial liabilities at beginning of period | 13,543 | ||
Financial liabilities at end of period | 25,988 | 25,988 | 13,543 |
Promissory notes | Financial liabilities at amortized cost | |||
Changes in financial instruments, Liabilities | |||
Issues | 1,523,091 | 1,163,294 | |
Redemptions | (1,510,804) | (1,166,674) | |
Unsecured bonds | |||
Changes in financial instruments, Liabilities | |||
Financial liabilities at beginning of period | 27,729 | ||
Financial liabilities at end of period | 35,179 | $ 35,179 | 27,729 |
Unsecured bonds | Financial liabilities at amortized cost | |||
Changes in financial instruments, Liabilities | |||
Issues | 14,890 | 10,000 | |
Redemptions | (7,311) | (5,700) | |
Parent [member] | Marketable debt securities | Financial liabilities at amortized cost | |||
Changes in financial instruments, Liabilities | |||
Issues | 1,601,168 | 1,197,521 | |
Redemptions | $ (1,565,677) | ||
Santander Vivienda, S.A. de C.V., SOFOM, E.R. | Marketable debt securities | Financial liabilities at amortized cost | |||
Changes in financial instruments, Liabilities | |||
Redemptions | $ (1,228,486) |
Marketable debt securities - Ot
Marketable debt securities - Other disclosures - Certificates of deposit (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financial liabilities | ||
Total financial liabilities | $ 1,604,462 | $ 1,477,724 |
Marketable debt securities | ||
Financial liabilities | ||
Total financial liabilities | 134,913 | 101,682 |
Certificates of deposit (unsecured) | ||
Financial liabilities | ||
Financial liabilities | 36,269 | 2,621 |
Accrued interest | 157 | 7 |
Total financial liabilities | 36,426 | 2,628 |
Certificates of deposit November 13, 2023 | ||
Financial liabilities | ||
Financial liabilities | $ 2,500 | |
Interest rate (as a percent) | 10.82% | |
Certificates of deposit October 13, 2023 | ||
Financial liabilities | ||
Financial liabilities | $ 2,500 | |
Interest rate (as a percent) | 10.33% | |
Certificates of deposit September 14, 2023 | ||
Financial liabilities | ||
Financial liabilities | $ 1,100 | |
Interest rate (as a percent) | 10.79% | |
Certificates of deposit August 17, 2023 - One | ||
Financial liabilities | ||
Financial liabilities | $ 3,000 | |
Interest rate (as a percent) | 10.28% | |
Certificates of deposit August 17, 2023 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 1,500 | |
Interest rate (as a percent) | 10.69% | |
Certificates of deposit July 20, 2023 | ||
Financial liabilities | ||
Financial liabilities | $ 50 | |
Interest rate (as a percent) | 10.23% | |
Certificates of deposit June 22,2023 | ||
Financial liabilities | ||
Financial liabilities | $ 300 | |
Interest rate (as a percent) | 10.79% | |
Certificates of deposit June 14, 2023 | ||
Financial liabilities | ||
Financial liabilities | $ 1,100 | |
Interest rate (as a percent) | 10.71% | |
Certificates of deposit June 08, 2023 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Interest rate (as a percent) | 10.74% | |
Certificates of deposit June 07, 2023 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Interest rate (as a percent) | 10.67% | |
Certificates of deposit June 02, 2023 | ||
Financial liabilities | ||
Financial liabilities | $ 3,000 | |
Interest rate (as a percent) | 10.32% | |
Certificates of deposit May 16 2023 - One | ||
Financial liabilities | ||
Financial liabilities | $ 2,000 | |
Interest rate (as a percent) | 9.98% | |
Certificates of deposit May 16, 2023 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 2,000 | |
Interest rate (as a percent) | 10.30% | |
Certificates of deposit May 05, 2023 | ||
Financial liabilities | ||
Financial liabilities | $ 3,000 | |
Interest rate (as a percent) | 10.32% | |
Certificates of deposit March 22, 2023 | ||
Financial liabilities | ||
Financial liabilities | $ 2,000 | |
Interest rate (as a percent) | 10.71% | |
Certificates of deposit March 01, 2023 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Interest rate (as a percent) | 10.27% | |
Certificates of deposit February 16, 2023 - One | ||
Financial liabilities | ||
Financial liabilities | $ 2,000 | |
Interest rate (as a percent) | 10.71% | |
Certificates of deposit February 02, 2023 | ||
Financial liabilities | ||
Financial liabilities | $ 2,000 | |
Interest rate (as a percent) | 10.30% | |
Certificates of deposit February 03, 2023 | ||
Financial liabilities | ||
Financial liabilities | $ 850 | |
Interest rate (as a percent) | 10.30% | |
Certificates of deposit January 18, 2023 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Interest rate (as a percent) | 10.69% | |
Certificates of deposit January 13, 2023 | ||
Financial liabilities | ||
Financial liabilities | $ 1,000 | |
Interest rate (as a percent) | 10.73% | |
Certificates of deposit January 05, 2023 | ||
Financial liabilities | ||
Financial liabilities | $ 2,000 | |
Interest rate (as a percent) | 10.28% | |
Certificates of deposit March 31, 2023 | ||
Financial liabilities | ||
Financial liabilities | $ 43 | |
Interest rate (as a percent) | 2% | |
Certificates of deposit March 08, 2023 | ||
Financial liabilities | ||
Financial liabilities | $ 3 | |
Interest rate (as a percent) | 2.20% | |
Certificates of deposit April 10, 2023 | ||
Financial liabilities | ||
Financial liabilities | $ 312 | |
Interest rate (as a percent) | 0.10% | |
Certificates of deposit February 16, 2023 - Two | ||
Financial liabilities | ||
Financial liabilities | $ 11 | |
Interest rate (as a percent) | 2.20% | |
Certificates of deposit January 21, 2022 | ||
Financial liabilities | ||
Financial liabilities | $ 500 | |
Interest rate (as a percent) | 5.71% | |
Certificates of deposit February 14, 2022 | ||
Financial liabilities | ||
Financial liabilities | $ 2,000 | |
Interest rate (as a percent) | 5.22% | |
Certificates of deposit March 31, 2022 | ||
Financial liabilities | ||
Financial liabilities | $ 3 | |
Interest rate (as a percent) | 5% | |
Certificates of deposit April 20, 2022 | ||
Financial liabilities | ||
Financial liabilities | $ 21 | |
Interest rate (as a percent) | 5.47% | |
Certificates of deposit July 21, 2022 | ||
Financial liabilities | ||
Financial liabilities | $ 50 | |
Interest rate (as a percent) | 5.19% | |
Certificates of deposit March 09, 2022 | ||
Financial liabilities | ||
Financial liabilities | $ 3 | |
Interest rate (as a percent) | 0.01% | |
Certificates of deposit March 18, 2022 | ||
Financial liabilities | ||
Financial liabilities | $ 19 | |
Interest rate (as a percent) | 0.01% | |
Certificates of deposit March 01, 2022 | ||
Financial liabilities | ||
Financial liabilities | $ 25 | |
Interest rate (as a percent) | 0.01% |
Marketable debt securities - _3
Marketable debt securities - Other disclosures - Senior Unsecured Notes (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Apr. 14, 2020 |
Financial liabilities | |||
Total financial liabilities | $ 1,604,462 | $ 1,477,724 | |
Marketable debt securities | |||
Financial liabilities | |||
Total financial liabilities | 134,913 | 101,682 | |
Senior Unsecured Notes | |||
Financial liabilities | |||
Financial liabilities | 56,396 | ||
Accrued interest | 328 | 405 | |
Total financial liabilities | 34,469 | 56,801 | |
Senior Unsecured Notes November 9, 2022 | |||
Financial liabilities | |||
Financial liabilities | $ 20,508 | ||
Interest rate (as a percent) | 4.13% | ||
Senior Unsecured Note, April 17, 2025 | |||
Financial liabilities | |||
Financial liabilities | $ 34,141 | $ 35,888 | |
Interest rate (as a percent) | 5.38% | 5.38% | 5.375% |
Marketable debt securities - _4
Marketable debt securities - Other disclosures - Structured bank bonds (Details) $ in Millions, $ in Millions | Dec. 31, 2022 MXN ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 MXN ($) |
Financial liabilities | |||
Total financial liabilities | $ 1,604,462 | $ 1,477,724 | |
Marketable debt securities | |||
Financial liabilities | |||
Total financial liabilities | 134,913 | 101,682 | |
Structured bank bonds | |||
Financial liabilities | |||
Financial liabilities | $ 2,863 | 979 | |
Transaction costs and accrued interest (net) | (12) | 2 | |
Total financial liabilities | $ 2,851 | 2,851 | 981 |
Structured bank bonds January 18,2024 | |||
Financial liabilities | |||
Financial liabilities | 86 | ||
Structured bank bonds October 03, 2023 | |||
Financial liabilities | |||
Financial liabilities | 190 | ||
Structured bank bonds September 21, 2023 | |||
Financial liabilities | |||
Financial liabilities | 10 | ||
Structured bank bonds September 14, 2023 | |||
Financial liabilities | |||
Financial liabilities | 15 | ||
Structured bank bonds September 12, 2023 | |||
Financial liabilities | |||
Financial liabilities | 46 | ||
Structured bank bonds August 01, 2023 | |||
Financial liabilities | |||
Financial liabilities | 151 | ||
Structured bank bonds July 26, 2023 | |||
Financial liabilities | |||
Financial liabilities | 15 | ||
Structured bank bonds July 17, 2023 | |||
Financial liabilities | |||
Financial liabilities | 24 | ||
Structured bank bonds July 03, 2023 | |||
Financial liabilities | |||
Financial liabilities | 201 | ||
Structured bank bonds May 23, 2023 | |||
Financial liabilities | |||
Financial liabilities | 16 | ||
Structured bank bonds May 02, 2023 | |||
Financial liabilities | |||
Financial liabilities | 52 | ||
Structured bank bonds April 24, 2023 | |||
Financial liabilities | |||
Financial liabilities | 35 | ||
Structured bank bonds April 10, 2023 | |||
Financial liabilities | |||
Financial liabilities | 12 | ||
Structured bank bonds April 03, 2023 | |||
Financial liabilities | |||
Financial liabilities | 126 | ||
Structured bank bonds March 27, 2023 | |||
Financial liabilities | |||
Financial liabilities | 93 | ||
Structured bank bonds June 19, 2023 | |||
Financial liabilities | |||
Financial liabilities | 9 | ||
Structured bank bonds March 13, 2023 | |||
Financial liabilities | |||
Financial liabilities | 52 | ||
Structured bank bonds March 01, 2023 | |||
Financial liabilities | |||
Financial liabilities | 86 | ||
Structured bank bonds February 27, 2023 | |||
Financial liabilities | |||
Financial liabilities | 16 | ||
Structured bank bonds February 08, 2023 | |||
Financial liabilities | |||
Financial liabilities | 67 | ||
Structured bank bonds January 13, 2023 - One | |||
Financial liabilities | |||
Financial liabilities | $ 10 | ||
Interest rate (as a percent) | 16% | 16% | |
Structured bank bonds February 07, 2023 - One | |||
Financial liabilities | |||
Financial liabilities | $ 78 | ||
Structured bank bonds January 30, 2023 | |||
Financial liabilities | |||
Financial liabilities | 39 | ||
Structured bank bonds January 06, 2023 - One | |||
Financial liabilities | |||
Financial liabilities | $ 10 | ||
Interest rate (as a percent) | 14% | 14% | |
Structured bank bonds March 09, 2023 | |||
Financial liabilities | |||
Financial liabilities | $ 10 | ||
Interest rate (as a percent) | 8% | 8% | |
Structured bank bonds February 07, 2023 - Two | |||
Financial liabilities | |||
Financial liabilities | $ 88 | ||
Interest rate (as a percent) | 11.20% | 11.20% | |
Structured bank bonds February 10, 2023 | |||
Financial liabilities | |||
Financial liabilities | $ 137 | ||
Interest rate (as a percent) | 10.50% | 10.50% | |
Structured bank bonds January 18, 2023 | |||
Financial liabilities | |||
Financial liabilities | $ 38 | ||
Interest rate (as a percent) | 5.50% | 5.50% | |
Structured bank bonds January 17, 2023 - One | |||
Financial liabilities | |||
Financial liabilities | $ 40 | ||
Interest rate (as a percent) | 12.40% | 12.40% | |
Structured bank bonds January 04, 2023 | |||
Financial liabilities | |||
Financial liabilities | $ 10 | ||
Interest rate (as a percent) | 8% | 8% | |
Structured bank bonds February 01, 2023 | |||
Financial liabilities | |||
Financial liabilities | $ 68 | ||
Interest rate (as a percent) | 10.20% | 10.20% | |
Structured bank bonds January 05, 2023 - One | |||
Financial liabilities | |||
Financial liabilities | $ 29 | ||
Interest rate (as a percent) | 8.90% | 8.90% | |
Structured bank bonds January 13, 2023 - Two | |||
Financial liabilities | |||
Financial liabilities | $ 88 | ||
Interest rate (as a percent) | 12.10% | 12.10% | |
Structured bank bonds January 06, 2023 - Two | |||
Financial liabilities | |||
Financial liabilities | $ 12 | ||
Interest rate (as a percent) | 14.50% | 14.50% | |
Structured bank bonds January 11, 2023 | |||
Financial liabilities | |||
Financial liabilities | $ 5 | ||
Interest rate (as a percent) | 9.60% | 9.60% | |
Structured bank bonds January 06, 2023 - Three | |||
Financial liabilities | |||
Financial liabilities | $ 10 | ||
Interest rate (as a percent) | 19.40% | 19.40% | |
Structured bank bonds January 06, 2023 - Four | |||
Financial liabilities | |||
Financial liabilities | $ 88 | ||
Interest rate (as a percent) | 10.85% | 10.85% | |
Structured bank bonds January 06, 2023 - Five | |||
Financial liabilities | |||
Financial liabilities | $ 20 | ||
Interest rate (as a percent) | 10% | 10% | |
Structured bank bonds January 12, 2023 - One | |||
Financial liabilities | |||
Financial liabilities | $ 10 | ||
Interest rate (as a percent) | 14% | 14% | |
Structured bank bonds January 17, 2023 - Two | |||
Financial liabilities | |||
Financial liabilities | $ 10 | ||
Interest rate (as a percent) | 10.95% | 10.95% | |
Structured bank bonds January 13, 2023 - Three | |||
Financial liabilities | |||
Financial liabilities | $ 27 | ||
Interest rate (as a percent) | 16.60% | 16.60% | |
Structured bank bonds January 06, 2023 - Six | |||
Financial liabilities | |||
Financial liabilities | $ 10 | ||
Interest rate (as a percent) | 11.45% | 11.45% | |
Structured bank bonds January 13, 2023 - Four | |||
Financial liabilities | |||
Financial liabilities | $ 10 | ||
Interest rate (as a percent) | 13.70% | 13.70% | |
Structured bank bonds January 05, 2023 - Two | |||
Financial liabilities | |||
Financial liabilities | $ 20 | ||
Interest rate (as a percent) | 9% | 9% | |
Structured bank bonds January 17, 2023 - Three | |||
Financial liabilities | |||
Financial liabilities | $ 10 | ||
Interest rate (as a percent) | 8% | 8% | |
Structured bank bonds January 13, 2023 - Five | |||
Financial liabilities | |||
Financial liabilities | $ 26 | ||
Interest rate (as a percent) | 13% | 13% | |
Structured bank bonds January 12, 2023 - Two | |||
Financial liabilities | |||
Financial liabilities | $ 10 | ||
Interest rate (as a percent) | 11.70% | 11.70% | |
Structured bank bonds January 05, 2023 - Three | |||
Financial liabilities | |||
Financial liabilities | $ 10 | ||
Interest rate (as a percent) | 11.45% | 11.45% | |
Structured bank bonds January 06, 2023 - Seven | |||
Financial liabilities | |||
Financial liabilities | $ 20 | ||
Interest rate (as a percent) | 18.45% | 18.45% | |
Structured bank bonds January 06, 2023 - Eight | |||
Financial liabilities | |||
Financial liabilities | $ 19 | ||
Interest rate (as a percent) | 16.90% | 16.90% | |
Structured bank bonds January 17, 2023 - Four | |||
Financial liabilities | |||
Financial liabilities | $ 10 | ||
Interest rate (as a percent) | 12.40% | 12.40% | |
Structured bank bonds January 05, 2023 - Four | |||
Financial liabilities | |||
Financial liabilities | $ 20 | ||
Interest rate (as a percent) | 33.80% | 33.80% | |
Structured bank bonds January 03, 2023- One | |||
Financial liabilities | |||
Financial liabilities | $ 5 | ||
Interest rate (as a percent) | 13% | 13% | |
Structured bank bonds January 13, 2023 - Six | |||
Financial liabilities | |||
Financial liabilities | $ 10 | ||
Interest rate (as a percent) | 5.20% | 5.20% | |
Structured bank bonds January 03, 2023 - Two | |||
Financial liabilities | |||
Financial liabilities | $ 10 | ||
Interest rate (as a percent) | 12.25% | 12.25% | |
Structured bank bonds January 21, 2026 - One | |||
Financial liabilities | |||
Financial liabilities | $ 17 | ||
Structured bank bonds January 21, 2026 - Two | |||
Financial liabilities | |||
Financial liabilities | 58 | ||
Structured bank bonds February 21, 2025 | |||
Financial liabilities | |||
Financial liabilities | 23 | ||
Structured bank bonds August 27, 2024 | |||
Financial liabilities | |||
Financial liabilities | 62 | ||
Structured bank bonds December 14, 2023 | |||
Financial liabilities | |||
Financial liabilities | 32 | ||
Structured bank bonds December 20, 2023 | |||
Financial liabilities | |||
Financial liabilities | 16 | ||
Structured bank bonds September 29, 2023 | |||
Financial liabilities | |||
Financial liabilities | 12 | ||
Structured bank bonds May 31, 2023 | |||
Financial liabilities | |||
Financial liabilities | 200 | ||
Structured bank bonds March 07, 2023 | |||
Financial liabilities | |||
Financial liabilities | 114 | ||
Structured bank bonds January 03, 2023 - Three | |||
Financial liabilities | |||
Financial liabilities | $ 10 | ||
Structured bank bonds March 17, 2022 - Four | |||
Financial liabilities | |||
Financial liabilities | 2 | ||
Structured bank bonds March 17, 2022 - Three | |||
Financial liabilities | |||
Financial liabilities | 56 | ||
Structured bank bonds March 17, 2022 - One | |||
Financial liabilities | |||
Financial liabilities | 7 | ||
Structured bank bonds March 17, 2022 - Two | |||
Financial liabilities | |||
Financial liabilities | 2 | ||
Structured bank bonds November 16, 2022 | |||
Financial liabilities | |||
Financial liabilities | 39 | ||
Structured bank bonds December 02, 2022 | |||
Financial liabilities | |||
Financial liabilities | 80 | ||
Structured bank bonds January 21, 2026 - One. | |||
Financial liabilities | |||
Financial liabilities | 57 | ||
Structured bank bonds January 21, 2026 - Two. | |||
Financial liabilities | |||
Financial liabilities | 17 | ||
Structured bank bonds January 12, 2022 - One | |||
Financial liabilities | |||
Financial liabilities | $ 11 | ||
Interest rate (as a percent) | 9.69% | ||
Structured bank bonds January 10, 2022 - One | |||
Financial liabilities | |||
Financial liabilities | $ 28 | ||
Interest rate (as a percent) | 8.61% | ||
Structured bank bonds January 10, 2022 - Two | |||
Financial liabilities | |||
Financial liabilities | $ 10 | ||
Interest rate (as a percent) | 12.10% | ||
Structured bank bonds January 12, 2022 - Two | |||
Financial liabilities | |||
Financial liabilities | $ 45 | ||
Interest rate (as a percent) | 9.08% | ||
Structured bank bonds June 24, 2022 | |||
Financial liabilities | |||
Financial liabilities | $ 56 | ||
Structured bank bonds January 25, 2022 | |||
Financial liabilities | |||
Financial liabilities | $ 45 | ||
Interest rate (as a percent) | 9.28% | ||
Structured bank bonds August 30, 2022 | |||
Financial liabilities | |||
Financial liabilities | $ 201 | ||
Structured bank bonds September 27, 2022 | |||
Financial liabilities | |||
Financial liabilities | 52 | ||
Structured bank bonds November 01, 2022 | |||
Financial liabilities | |||
Financial liabilities | 127 | ||
Structured bank bonds January 04, 2022 | |||
Financial liabilities | |||
Financial liabilities | $ 31 | ||
Interest rate (as a percent) | 6.70% | ||
Structured bank bonds January 06, 2022 | |||
Financial liabilities | |||
Financial liabilities | $ 62 | ||
Interest rate (as a percent) | 3.50% | ||
Structured bank bonds January 18, 2022 | |||
Financial liabilities | |||
Financial liabilities | $ 10 | ||
Interest rate (as a percent) | 10% | ||
Structured bank bonds January 21, 2022 | |||
Financial liabilities | |||
Financial liabilities | $ 10 | ||
Interest rate (as a percent) | 4.08% | ||
Structured bank bonds January 12, 2022 Four [Member] | |||
Financial liabilities | |||
Financial liabilities | $ 31 | ||
Interest rate (as a percent) | 6.77% |
Marketable debt securities - _5
Marketable debt securities - Other disclosures - Promissory notes (Details) $ in Millions, $ in Millions | Dec. 31, 2022 MXN ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 MXN ($) |
Financial liabilities | |||
Total financial liabilities | $ 1,604,462 | $ 1,477,724 | |
Marketable debt securities | |||
Financial liabilities | |||
Total financial liabilities | 134,913 | 101,682 | |
Promissory notes | |||
Financial liabilities | |||
Financial liabilities | $ 25,783 | 13,496 | |
Accrued interest | 205 | 47 | |
Total financial liabilities | $ 25,988 | 25,988 | 13,543 |
Promissory notes May 31,2023 | |||
Financial liabilities | |||
Financial liabilities | $ 4,266 | ||
Interest rate (as a percent) | 10.91% | 10.91% | |
Promissory notes March 31,2023 | |||
Financial liabilities | |||
Financial liabilities | $ 129 | ||
Interest rate (as a percent) | 8.37% | 8.37% | |
Promissory notes February 22,2023 | |||
Financial liabilities | |||
Financial liabilities | $ 1,860 | ||
Interest rate (as a percent) | 7.44% | 7.44% | |
Promissory notes February 23,2023 | |||
Financial liabilities | |||
Financial liabilities | $ 465 | ||
Interest rate (as a percent) | 7.44% | 7.44% | |
Promissory notes January 20,2023 | |||
Financial liabilities | |||
Financial liabilities | $ 281 | ||
Interest rate (as a percent) | 7.40% | 7.40% | |
Promissory notes January 13,2023 - One | |||
Financial liabilities | |||
Financial liabilities | $ 3,800 | ||
Interest rate (as a percent) | 10.50% | 10.50% | |
Promissory notes January 13,2023 - Two | |||
Financial liabilities | |||
Financial liabilities | $ 4,000 | ||
Interest rate (as a percent) | 10.50% | 10.50% | |
Promissory notes January 13,2023 - Three | |||
Financial liabilities | |||
Financial liabilities | $ 2,900 | ||
Interest rate (as a percent) | 10.50% | 10.50% | |
Promissory notes January 13,2023 - Four | |||
Financial liabilities | |||
Financial liabilities | $ 4,000 | ||
Interest rate (as a percent) | 10.50% | 10.50% | |
Promissory notes January 13,2023 - Five | |||
Financial liabilities | |||
Financial liabilities | $ 4,000 | ||
Interest rate (as a percent) | 10.50% | 10.50% | |
Promissory notes January 02,2023 | |||
Financial liabilities | |||
Financial liabilities | $ 82 | ||
Interest rate (as a percent) | 10.40% | 10.40% | |
Promissory notes January 4, 2021 | |||
Financial liabilities | |||
Financial liabilities | $ 76 | ||
Interest rate (as a percent) | 5.40% | ||
Promissory notes January 15, 2021 - One | |||
Financial liabilities | |||
Financial liabilities | $ 6,000 | ||
Interest rate (as a percent) | 5.50% | ||
Promissory notes January 15, 2021 - Two | |||
Financial liabilities | |||
Financial liabilities | $ 5,900 | ||
Interest rate (as a percent) | 5.50% | ||
Promissory notes January 15, 2021 - Three | |||
Financial liabilities | |||
Financial liabilities | $ 1,000 | ||
Interest rate (as a percent) | 5.50% | ||
Promissory notes March 16, 2021 | |||
Financial liabilities | |||
Financial liabilities | $ 20 | ||
Interest rate (as a percent) | 5.50% | ||
Promissory notes January 13, 2021 | |||
Financial liabilities | |||
Financial liabilities | $ 500 | ||
Interest rate (as a percent) | 4.25% |
Marketable debt securities - _6
Marketable debt securities - Other disclosures - Unsecured bonds (Details) $ in Millions, $ in Millions | Dec. 31, 2022 MXN ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 MXN ($) |
Financial liabilities | |||
Total financial liabilities | $ 1,604,462 | $ 1,477,724 | |
Marketable debt securities | |||
Financial liabilities | |||
Total financial liabilities | 134,913 | 101,682 | |
Unsecured bonds | |||
Financial liabilities | |||
Financial liabilities | $ 35,040 | 27,461 | |
Accrued interest | 139 | 268 | |
Total financial liabilities | $ 35,179 | 35,179 | 27,729 |
Unsecured bonds July 09, 2026 | |||
Financial liabilities | |||
Financial liabilities | $ 5,000 | ||
Unsecured bonds July 09, 2026 | TIIE | |||
Financial liabilities | |||
Spread on rate (as a percent) | 0.29% | 0.29% | |
Unsecured bonds March 30, 2026 | |||
Financial liabilities | |||
Financial liabilities | $ 2,550 | $ 7,150 | |
Interest rate (as a percent) | 8.95% | 8.95% | 8.95% |
Unsecured bonds November 21, 2028 | |||
Financial liabilities | |||
Financial liabilities | $ 6,500 | $ 6,500 | |
Interest rate (as a percent) | 8.08% | 8.08% | 8.08% |
Unsecured bonds September 1, 2026 | |||
Financial liabilities | |||
Financial liabilities | $ 3,000 | $ 3,000 | |
Interest rate (as a percent) | 7.19% | 7.19% | 7.19% |
Unsecured bonds March 30, 2026 - Two | |||
Financial liabilities | |||
Financial liabilities | $ 4,600 | ||
Interest rate (as a percent) | 8.95% | 8.95% | |
Unsecured bonds March 26, 2029 | |||
Financial liabilities | |||
Financial liabilities | $ 2,790 | ||
Interest rate (as a percent) | 8.72% | 8.72% | |
Unsecured bonds March 29, 2027 | |||
Financial liabilities | |||
Financial liabilities | $ 7,100 | ||
Unsecured bonds March 29, 2027 | TIIE | |||
Financial liabilities | |||
Spread on rate (as a percent) | 0.07% | 0.07% | |
Unsecured bonds November 25, 2025 | |||
Financial liabilities | |||
Financial liabilities | $ 3,500 | $ 3,500 | |
Unsecured bonds November 25, 2025 | TIIE | |||
Financial liabilities | |||
Spread on rate (as a percent) | 0.05% | 0.05% | 0.05% |
Unsecured bonds April 4, 2022 | |||
Financial liabilities | |||
Financial liabilities | $ 2,850 | ||
Unsecured bonds April 4, 2022 | TIIE | |||
Financial liabilities | |||
Spread on rate (as a percent) | 0.10% | ||
Unsecured bonds May 6, 2022 | |||
Financial liabilities | |||
Financial liabilities | $ 4,461 | ||
Unsecured bonds May 6, 2022 | TIIE | |||
Financial liabilities | |||
Spread on rate (as a percent) | 0.15% |
Subordinated Liabilities - Acti
Subordinated Liabilities - Activity (Details) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2022 MXN ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 MXN ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 MXN ($) | Dec. 31, 2020 USD ($) | |
Financial liabilities | ||||||
Outstanding issue amount | $ 1,604,462 | $ 1,477,724 | ||||
Subordinated liabilities | Financial liabilities at amortized cost | ||||||
Financial liabilities | ||||||
Outstanding issue amount | 39,384 | $ 2,019,000,000 | 51,643 | $ 2,518,000,000 | $ 36,182 | $ 1,817,000,000 |
Subordinated Additional Tier I Capital Notes, Issued 2021 | Financial liabilities at amortized cost | ||||||
Financial liabilities | ||||||
Outstanding issue amount | $ 13,656 | 700,000,000 | 14,355 | |||
Annual interest rate (as percent) | 4.63% | |||||
Subordinated Additional Tier I Capital Notes, Issued 2016 | ||||||
Financial liabilities | ||||||
Outstanding issue amount | 10,254 | 9,948 | ||||
Subordinated Additional Tier I Capital Notes, Issued 2016 | Financial liabilities at amortized cost | ||||||
Financial liabilities | ||||||
Outstanding issue amount | 10,254 | |||||
Tier II Subordinated Capital Notes, Issued 2018 | Financial liabilities at amortized cost | ||||||
Financial liabilities | ||||||
Outstanding issue amount | $ 25,728 | $ 1,300,000,000 | $ 27,034 | $ 26,234 | ||
Annual interest rate (as percent) | 5.95% |
Subordinated Liabilities - Chan
Subordinated Liabilities - Changes (Details) $ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 MXN ($) $ / $ | Dec. 31, 2022 USD ($) $ / $ | Dec. 31, 2021 MXN ($) $ / $ | Dec. 31, 2021 USD ($) $ / $ | |
Financial liabilities | ||||
Exchange rate per one USD as of December 31, | $ / $ | 19.5089 | 19.5089 | 20.5075 | 20.5075 |
Financial liabilities at beginning of period | $ 1,477,724 | |||
Financial liabilities at end of period | $ 1,604,462 | $ 1,477,724 | ||
Subordinated liabilities | Financial liabilities at amortized cost | ||||
Financial liabilities | ||||
Exchange rate per one USD as of December 31, | $ / $ | 19.5089 | 19.5089 | 20.5075 | 20.5075 |
Financial liabilities at beginning of period | $ 51,643 | $ 2,518 | $ 36,182 | $ 1,817 |
Issues | 700 | |||
Redemptions | (500) | |||
Transaction costs and accrued interest | 1 | 1 | ||
Financial liabilities at end of period | $ 39,384 | $ 2,019 | $ 51,643 | $ 2,518 |
Subordinated Liabilities - Othe
Subordinated Liabilities - Other (Details) $ / shares in Units, $ / shares in Units, $ in Millions, $ in Millions | 12 Months Ended | |||||||
Sep. 15, 2021 USD ($) shares | Oct. 01, 2018 USD ($) $ / shares shares | Dec. 29, 2016 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 MXN ($) | Sep. 15, 2021 $ / shares | 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 | ||||||||
Amount of debt securities issued | $ 700 | |||||||
Repayment of subordinated debt | $ 500 | |||||||
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 | |||||||
Repayment of subordinated debt | $ 1,223 | |||||||
Financial liabilities at amortized cost | Perpetual Subordinated Non-Preferred Contingent Convertible Additional Tier I Capital Notes | ||||||||
Financial liabilities | ||||||||
Amount of debt securities issued | $ 700 | |||||||
Number of debt securities issued | shares | 700,000,000 | |||||||
Maturity period of debt instruments issued | 5 years | |||||||
Maturity recalculation term | 5 years | |||||||
Prepaid maturity period | 5 years | |||||||
Interest rate (as a percent) | 4.625% | |||||||
Number of consecutive business days | 30 days | |||||||
Floor price | $ / shares | $ 13.33 |
Subordinated Liabilities - Reco
Subordinated Liabilities - Reconciliation of liabilities arising from financing activities (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 MXN ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 MXN ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 MXN ($) | |
Financial liabilities | |||||
Financial liabilities at beginning of period | $ 1,477,724 | ||||
Cash flows | 31,194 | $ (5,821) | $ 2,882 | ||
Financial liabilities at end of period | 1,604,462 | 1,477,724 | |||
Subordinated liabilities | Financial liabilities at amortized cost | |||||
Financial liabilities | |||||
Financial liabilities at beginning of period | 51,643 | $ 2,518,000,000 | 36,182 | $ 1,817,000,000 | |
Cash flows | (11,799) | 12,344 | |||
Accrued interest | 1,550 | 1,576 | |||
Transaction costs | 11 | 16 | |||
Foreign exchange movements | (2,021) | 1,525 | |||
Financial liabilities at end of period | 39,384 | 2,019,000,000 | 51,643 | $ 2,518,000,000 | 36,182 |
Subordinated Additional Tier I Capital Notes, Issued 2021 | Financial liabilities at amortized cost | |||||
Financial liabilities | |||||
Financial liabilities at beginning of period | 14,355 | ||||
Cash flows | 13,930 | ||||
Foreign exchange movements | (699) | 425 | |||
Financial liabilities at end of period | 13,656 | 700,000,000 | 14,355 | ||
Subordinated Additional Tier I Capital Notes, Issued 2016 | |||||
Financial liabilities | |||||
Financial liabilities at beginning of period | 10,254 | 9,948 | |||
Transaction costs | 6 | ||||
Foreign exchange movements | 300 | ||||
Financial liabilities at end of period | 10,254 | 9,948 | |||
Subordinated Additional Tier I Capital Notes, Issued 2016 | Financial liabilities at amortized cost | |||||
Financial liabilities | |||||
Financial liabilities at beginning of period | 10,254 | ||||
Cash flows | (10,251) | ||||
Foreign exchange movements | (3) | ||||
Financial liabilities at end of period | 10,254 | ||||
Payment of interest | 919 | 1,073 | |||
Tier II Subordinated Capital Notes, Issued 2018 | Financial liabilities at amortized cost | |||||
Financial liabilities | |||||
Financial liabilities at beginning of period | 27,034 | 26,234 | |||
Cash flows | (1,548) | (1,586) | |||
Accrued interest | 1,550 | 1,576 | |||
Transaction costs | 11 | 10 | |||
Foreign exchange movements | (1,319) | 800 | |||
Financial liabilities at end of period | $ 25,728 | $ 1,300,000,000 | $ 27,034 | $ 26,234 |
Other financial liabilities - B
Other financial liabilities - Breakdown and Unsettled (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Other financial liabilities | ||
Total other financial liabilities | $ 1,165,889 | $ 1,118,145 |
Other financial liabilities | ||
Other financial liabilities | ||
Trade payables | 966 | 1,388 |
Tax payables | 1,367 | 1,210 |
Financial transactions pending settlement | 10,898 | 10,504 |
Other financial liabilities | 6,242 | 4,136 |
Total other financial liabilities | 19,473 | 17,238 |
Mexican government securities | Other financial liabilities | ||
Other financial liabilities | ||
Financial transactions pending settlement | 10,280 | 6,217 |
CETES | Other financial liabilities | ||
Other financial liabilities | ||
Financial transactions pending settlement | 491 | 2,426 |
UDIBONDS | Other financial liabilities | ||
Other financial liabilities | ||
Financial transactions pending settlement | 102 | $ 1,861 |
Equity instruments | Other financial liabilities | ||
Other financial liabilities | ||
Financial transactions pending settlement | $ 25 |
Other financial liabilities - O
Other financial liabilities - Other (Details) - Other financial liabilities - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financial liabilities | ||
Retentions related to loans | $ 2,385 | $ 2,479 |
Other payable account | 3,857 | 1,657 |
Other financial liabilities | $ 6,242 | $ 4,136 |
Provisions - Summary (Details)
Provisions - Summary (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Provisions | ||||
Provisions for pensions and similar obligations | $ 8,158 | $ 7,499 | ||
Provisions. | 12,931 | 10,789 | $ 10,604 | $ 9,104 |
Provision for taxes and other legal contingencies | ||||
Provisions | ||||
Other provisions | 3,009 | 2,141 | ||
Provisions for off-balance sheet risk | ||||
Provisions | ||||
Other provisions | 1,539 | 1,108 | ||
Other provisions member | ||||
Provisions | ||||
Other provisions | $ 225 | $ 41 |
Provisions - Changes (Details)
Provisions - Changes (Details) - MXN ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Provisions | ||||
Provisions | $ 12,931 | $ 10,789 | $ 10,604 | $ 9,104 |
Additions charged (credited) to net income: | ||||
Interest expense and similar charges | 569 | 475 | 442 | |
Personnel expenses - Defined Benefit Plan | 222 | 260 | 273 | |
Personnel expenses - Defined Contribution Plan | 555 | 483 | 488 | |
Other | 251 | 252 | 256 | |
Actuarial (gains)/losses recognized in the year in other comprehensive income | 483 | 79 | 995 | |
Period provisions | 1,684 | 171 | 723 | |
Payments to pensioners and pre-retirees with a charge to internal provisions | (901) | (921) | (881) | |
Other payments | (201) | (52) | (246) | |
Payments to Defined Contribution Plan | (206) | (468) | (475) | |
Transfer, exchange differences and other changes | (314) | (94) | (75) | |
Balances at end of year | 12,931 | 10,789 | 10,604 | |
Provision for pensions and other employment defined benefit obligations | ||||
Provisions | ||||
Provisions | 8,158 | 7,499 | 7,433 | 6,406 |
Additions charged (credited) to net income: | ||||
Interest expense and similar charges | 569 | 475 | 442 | |
Personnel expenses - Defined Benefit Plan | 222 | 260 | 273 | |
Personnel expenses - Defined Contribution Plan | 555 | 483 | 488 | |
Other | 251 | 252 | 256 | |
Actuarial (gains)/losses recognized in the year in other comprehensive income | 483 | 79 | 995 | |
Payments to pensioners and pre-retirees with a charge to internal provisions | (901) | (921) | (881) | |
Payments to Defined Contribution Plan | (206) | (468) | (475) | |
Transfer, exchange differences and other changes | (314) | (94) | (71) | |
Balances at end of year | 8,158 | 7,499 | 7,433 | |
Provision for taxes and other legal contingencies | ||||
Provisions | ||||
Provisions | 3,009 | 2,141 | 1,898 | 1,558 |
Additions charged (credited) to net income: | ||||
Period provisions | 1,069 | 295 | 586 | |
Other payments | (201) | (52) | (246) | |
Balances at end of year | 3,009 | 2,141 | 1,898 | |
Provisions for off-balance sheet risk | ||||
Provisions | ||||
Provisions | 1,539 | 1,108 | 1,232 | 1,075 |
Additions charged (credited) to net income: | ||||
Period provisions | 431 | (124) | 157 | |
Balances at end of year | 1,539 | 1,108 | 1,232 | |
Other provisions member | ||||
Provisions | ||||
Provisions | 225 | 41 | 41 | $ 65 |
Additions charged (credited) to net income: | ||||
Period provisions | 184 | (20) | ||
Transfer, exchange differences and other changes | (4) | |||
Balances at end of year | $ 225 | $ 41 | $ 41 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Benefits | ||||
Personnel expenses - Defined Contribution Plan | $ 555 | $ 483 | $ 488 | |
Provisions for pensions and similar obligations | $ 8,158 | 7,499 | ||
Defined benefit plans | ||||
Employee Benefits | ||||
Retirement age of employees | 65 years | |||
Plan assets | $ 1,680 | $ 1,943 | ||
Percentage of employees enrolled under defined pension plan | 0.50% | |||
Provisions for pensions and similar obligations | $ 8,088 | $ 7,393 | ||
Defined medical benefit plan | ||||
Employee Benefits | ||||
Percentage of payment of medical expenses | 100% | |||
Minimum period worked employees eligible for option of plan | 6 months | |||
Defined benefit plans | ||||
Employee Benefits | ||||
Provisions for pensions and similar obligations | $ 8,088 | 7,393 | ||
Defined contribution plan | ||||
Employee Benefits | ||||
Retirement age of employees | 65 years | |||
Personnel expenses - Defined Contribution Plan | $ 555 | $ 483 | $ 488 | |
Percentage of employees enrolled under defined contribution plan included in medical coverage plan | 81% | 73% | ||
Provisions for pensions and similar obligations | $ 70 | $ 106 |
Provisions - Provisions for p_2
Provisions - Provisions for pensions and similar obligations - Actuarial assumptions (Details) - Defined benefit plans | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Actuarial assumptions | ||
Annual discount rate | 9% | 8% |
Expected return on plan assets | 9% | 8% |
Cumulative annual INPC growth | 3.50% | 3.50% |
Annual salary increase rate | 4.50% | 4.50% |
Annual minimum salary increase rate | 3.50% | 3.50% |
Medical cost trend rates | 6% | 6% |
Retirement age of employees | 65 years |
Provisions - Funding status (De
Provisions - Funding status (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Defined benefit plans | ||
Employee benefits | ||
Present value of the obligations | $ 9,768 | $ 9,336 |
Less: Fair value of plan assets | (1,680) | (1,943) |
Provisions - Provisions for pensions | 8,088 | 7,393 |
Of which: Internal provisions for pensions | 8,088 | 7,393 |
Pension plan | ||
Employee benefits | ||
Present value of the obligations | 2,326 | 2,447 |
Post-employment benefits | ||
Employee benefits | ||
Present value of the obligations | 6,646 | 6,153 |
Long-term benefits | ||
Employee benefits | ||
Present value of the obligations | $ 796 | $ 736 |
Provisions - Amounts recognized
Provisions - Amounts recognized (Details) - Defined benefit plans - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Amounts recognized in the consolidated income statements in relation to the aforementioned defined benefit obligations | |||
Current service cost | $ 222 | $ 260 | $ 273 |
Interest cost (net) | 569 | 475 | 442 |
Other | 251 | 252 | 256 |
Total defined benefit expenses recognized in the consolidated income statements | $ 1,042 | $ 987 | $ 971 |
Provisions - Present Value of O
Provisions - Present Value of Obligations (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee benefits | |||
Current service cost | $ 222 | $ 260 | $ 273 |
Present value of defined benefit obligation | |||
Employee benefits | |||
Present value of the obligations at beginning of year | 9,336 | 9,528 | |
Current service cost | 222 | 260 | |
Interest cost | 713 | 613 | |
Benefits paid | (1,107) | (1,116) | |
Actuarial (gains)/losses | 604 | 146 | |
Personnel transfer | (95) | ||
Present value of the obligations at end of year | $ 9,768 | $ 9,336 | $ 9,528 |
Provisions - Fair value of plan
Provisions - Fair value of plan asset and Plan asset allocation (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Plan assets | ||
Equity instruments as a percentage of total plan assets | 38% | 35% |
Cash and debt instruments as a percentage of total plan assets | 62% | 65% |
Defined benefit plans | Plan Assets | ||
Fair value of plan assets | ||
Fair value of plan assets at beginning of year | $ 1,943 | $ 2,186 |
Actual return on plan assets | 14 | (48) |
Transfer of funds to defined contribution plan | (71) | |
Benefits paid | (206) | (195) |
Fair value of plan assets at end of year | $ 1,680 | $ 1,943 |
Provisions - Sensitivity analys
Provisions - Sensitivity analysis (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 MXN ($) | |
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 | $ (430) |
Increase or decrease on obligations if decrease in actuarial assumption | $ 473 |
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 | $ 231 |
Increase or decrease on obligations if decrease in actuarial assumption | $ (210) |
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 | $ 13 |
Increase or decrease on obligations if decrease in actuarial assumption | $ (12) |
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 | $ 14 |
Increase or decrease on obligations if decrease in actuarial assumption | (14) |
Mortality | |
Employee benefits | |
Increase or decrease on obligations if increase in actuarial assumption | (61) |
Increase or decrease on obligations if decrease in actuarial assumption | $ 58 |
Decrease in mortality (years) | 2 years |
Provisions - Other disclosures
Provisions - Other disclosures (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Provision for lifetime payment | ||
Employee benefits | ||
Provision for projected benefit obligation | $ 696 | $ 723 |
Provisions - Provision for tax
Provisions - Provision for tax and legal matters (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other provisions | |||
Other payments | $ 201 | $ 52 | $ 246 |
Provision for taxes and other legal contingencies | |||
Other provisions | |||
Other provisions | 3,009 | 2,141 | |
Provision for various tax claims | |||
Other provisions | |||
Other provisions | 239 | 424 | |
Other tax issues, Derivative transactions | |||
Other provisions | |||
Other payments | 1 | 1 | $ 1 |
Non-tax-related proceedings | |||
Other provisions | |||
Other provisions | $ 2,557 | $ 1,443 |
Provisions - Provision for off-
Provisions - Provision for off-balance-sheet risk (Details) - Provisions for off-balance sheet risk - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of other provisions [line items] | ||
Other provisions. | $ 1,539 | $ 1,108 |
Available lines of credit cards and non-revolving consumer loans | ||
Disclosure of other provisions [line items] | ||
Other provisions. | 1,301 | 941 |
Guarantees and loan commitments of commercial and public sector loans | ||
Disclosure of other provisions [line items] | ||
Other provisions. | $ 238 | $ 167 |
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, 2022 | Dec. 31, 2021 |
Other provisions | ||
Other provisions | $ 1,539 | $ 1,108 |
Stage 1 | ||
Other provisions | ||
Other provisions | 1,163 | 921 |
Stage 2 | ||
Other provisions | ||
Other provisions | 202 | 109 |
Stage 3 | ||
Other provisions | ||
Other provisions | 174 | 78 |
Available lines of credit cards and non-revolving consumer loans | ||
Other provisions | ||
Other provisions | 1,301 | $ 941 |
Available lines of credit cards and non-revolving consumer loans | Stage 1 | ||
Other provisions | ||
Other provisions | 1,140 | |
Available lines of credit cards and non-revolving consumer loans | Stage 2 | ||
Other provisions | ||
Other provisions | 150 | |
Available lines of credit cards and non-revolving consumer loans | Stage 3 | ||
Other provisions | ||
Other provisions | 11 | |
Guarantees, documentary credits and loan commitments of commercial loans (SME) | ||
Other provisions | ||
Other provisions | 238 | |
Guarantees, documentary credits and loan commitments of commercial loans (SME) | Stage 1 | ||
Other provisions | ||
Other provisions | 23 | |
Guarantees, documentary credits and loan commitments of commercial loans (SME) | Stage 2 | ||
Other provisions | ||
Other provisions | 52 | |
Guarantees, documentary credits and loan commitments of commercial loans (SME) | Stage 3 | ||
Other provisions | ||
Other provisions | $ 163 |
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, 2022 MXN ($) | |
Other provisions | |
Other provisions at beginning of period | $ 1,108 |
Financial assets derecognized during the period other than write offs | (166) |
Written-off assets | (73) |
Originated financial assets | 619 |
Foreign exchange and other movements | 51 |
Other provisions at end of period | 1,539 |
Stage 1 | |
Other provisions | |
Other provisions at beginning of period | 921 |
Financial assets derecognized during the period other than write offs | (91) |
Written-off assets | (40) |
Originated financial assets | 458 |
Foreign exchange and other movements | (85) |
Other provisions at end of period | 1,163 |
Stage 2 | |
Other provisions | |
Other provisions at beginning of period | 109 |
Financial assets derecognized during the period other than write offs | (13) |
Written-off assets | (28) |
Originated financial assets | 42 |
Foreign exchange and other movements | 92 |
Other provisions at end of period | 202 |
Stage 3 | |
Other provisions | |
Other provisions at beginning of period | 78 |
Financial assets derecognized during the period other than write offs | (62) |
Written-off assets | (5) |
Originated financial assets | 119 |
Foreign exchange and other movements | 44 |
Other provisions at end of period | $ 174 |
Other liabilities (Details)
Other liabilities (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Other liabilities | ||
Sundry creditors | $ 13,736 | $ 9,433 |
Cash balances undrawn | 373 | 127 |
Accrued personnel obligations | 4,222 | 4,059 |
Other obligations | 3,077 | 3,421 |
Credit and debit card operation balances | 3,267 | 2,838 |
Other liabilities | $ 24,675 | $ 19,878 |
Tax matters - Income tax (Detai
Tax matters - Income tax (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current tax expense | |||
Tax expense for current year | $ 12,162 | $ 3,777 | $ 7,496 |
Deferred tax expense (benefit) | |||
Origination and reversal of temporary difference and usage (accrual) of tax carryforward benefits | (3,998) | 1,189 | (1,270) |
Total Income Tax | $ 8,164 | $ 4,966 | $ 6,226 |
Tax matters - Income tax reconc
Tax matters - Income tax reconciliation (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated profit (loss) before tax | |||
Standard tax rate (as a percent) | 30% | ||
Profit before tax | $ 32,272 | $ 25,767 | $ 25,200 |
Income tax at applicable rate | 9,682 | 7,730 | 7,560 |
Due to effect of inflation | (3,023) | (2,775) | (1,126) |
Due to effect of tangible assets | (387) | (243) | (116) |
Due to effect of non-deductible expenses, non-taxable income and others | 1,892 | 254 | (92) |
Total Income Tax | $ 8,164 | $ 4,966 | $ 6,226 |
Effective tax rate (as a percent) | 25.30% | 19.27% | 24.71% |
Current taxes | $ 12,162 | $ 3,777 | $ 7,496 |
Deferred taxes | $ (3,998) | $ 1,189 | $ (1,270) |
Tax matters - Tax recognized in
Tax matters - Tax recognized in consolidated equity (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net tax credited/(charged) to consolidated total equity: | |||
Remeasurement of defined benefit obligation | $ 149 | $ 16 | $ 264 |
Measurement of Financial assets at fair value through other comprehensive income | 2,210 | 1,402 | (1,056) |
Measurement of Financial derivatives (Cash flow hedge) | 365 | (422) | 126 |
Paid interests on Subordinated Additional Tier I Capital Notes | 276 | 290 | |
Tax recognized in consolidated equity | 3,000 | 996 | (376) |
Debt instruments | |||
Net tax credited/(charged) to consolidated total equity: | |||
Measurement of Financial assets at fair value through other comprehensive income | $ 2,210 | $ 1,402 | $ (1,056) |
Tax matters - Deferred taxes (D
Tax matters - Deferred taxes (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | $ 26,719 | $ 19,295 | $ 21,340 |
Deferred tax liabilities | $ (2,270) | $ (1,690) | $ (3,440) |
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 | $ 2,902 | $ 2,288 | |
Non-deductible provisions | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 2,305 | 2,444 | |
Impairment losses on financial assets at amortized cost | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 11,971 | 8,620 | |
Valuation of financial instruments | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 2,908 | ||
Net operating losses carryforward | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 1 | ||
Capital losses carryforwards | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 2,129 | 2,333 | |
Labor provisions | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 1,482 | 1,238 | |
Deferred tax liabilities | (738) | ||
Fees and interest collected in advance | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 2,703 | 1,299 | |
Foreign exchange rate derivatives | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax assets | 319 | 1,072 | |
Unrealized gains (losses) on financial instruments | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax liabilities | (517) | ||
Prepayments | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax liabilities | (1,188) | (1,022) | |
Other | |||
Detail of deferred tax assets and liabilities | |||
Deferred tax liabilities | $ (344) | $ (151) |
Tax matters - Net operating and
Tax matters - Net operating and Capital losses carryforward (Details) - Capital losses carryforward $ in Millions | Dec. 31, 2022 MXN ($) |
Detail of deferred tax assets and liabilities | |
Loss amount | $ 7,097 |
Deferred tax assets | 2,129 |
2028 | |
Detail of deferred tax assets and liabilities | |
Loss amount | 1,646 |
Deferred tax assets | 494 |
2029 | |
Detail of deferred tax assets and liabilities | |
Loss amount | 1,975 |
Deferred tax assets | 592 |
2030 | |
Detail of deferred tax assets and liabilities | |
Loss amount | 1,934 |
Deferred tax assets | 580 |
2031 | |
Detail of deferred tax assets and liabilities | |
Loss amount | 782 |
Deferred tax assets | 235 |
2032 | |
Detail of deferred tax assets and liabilities | |
Loss amount | 762 |
Deferred tax assets | $ 229 |
Tax matters - Net deferred tax
Tax matters - Net deferred tax assets and liabilities (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Tax matters | |||
Presented as deferred tax assets | $ 24,662 | $ 18,111 | |
Presented as deferred tax liabilities | (213) | (506) | |
Net | $ 24,449 | $ 17,605 | $ 17,900 |
Tax matters - Changes in Tax as
Tax matters - Changes in Tax assets and liabilities (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in deferred tax assets and liabilities | |||
Deferred tax assets - Balances at the beginning of the period | $ 19,295 | $ 21,340 | |
Deferred tax assets - (Charge)/Credit to Consolidated Income | 5,229 | (1,116) | |
Deferred tax assets - (Charge) Credit to Consolidated Other Comprehensive Income | 2,399 | (602) | |
Deferred tax assets - Other Movements | (204) | (327) | |
Deferred tax assets - Balances at the end of the period | 26,719 | 19,295 | $ 21,340 |
Deferred tax liabilities - Balances at the beginning of the period | (1,690) | (3,440) | |
Deferred tax liabilities - (Charge)/Credit to Consolidated Income | (1,231) | (73) | |
Deferred tax liabilities - (Charge) Credit to Consolidated Other Comprehensive Income | 601 | 1,598 | |
Deferred tax liabilities - Other Movements | 50 | 225 | |
Deferred tax liabilities - Balances at the end of the period | (2,270) | (1,690) | (3,440) |
Balances at the beginning of the period | 17,605 | 17,900 | |
(Charge)/Credit to Consolidated income | 3,998 | (1,189) | 1,270 |
(Charge) Credit to Consolidated Other Comprehensive Income | 3,000 | 996 | |
Other Movements | (154) | (102) | |
Balances at the end of the period | $ 24,449 | $ 17,605 | $ 17,900 |
Non-controlling interests - NCI
Non-controlling interests - NCI Components (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Subsidiaries | |||
Non-controlling interest | $ 62 | $ 48 | $ 37 |
Fideicomiso GFSSLPT, Banco Santander Mexico, S.A. | |||
Subsidiaries | |||
Non-controlling interest | 51 | 37 | |
Other subsidiaries | |||
Subsidiaries | |||
Non-controlling interest | $ 11 | $ 11 |
Non-controlling interests - Cha
Non-controlling interests - Changes in NCI (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Subsidiaries | |||
Balance at beginning of period | $ 48 | $ 37 | |
Other changes in non-controlling interest | 14 | 11 | $ (3) |
Balance at end of period | $ 62 | $ 48 | $ 37 |
Valuation adjustments - FVTOCI
Valuation adjustments - FVTOCI (Details) - MXN ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financial instruments | ||||
Net Valuation Gains (Losses), Financial assets at fair value through other comprehensive income | $ (6,705) | $ (6,724) | $ 3,565 | |
Financial assets at fair value through other comprehensive income | 315,549 | 395,829 | ||
Debt instruments | ||||
Financial instruments | ||||
Valuation Gains, Financial assets at fair value through other comprehensive income | 682 | 1,972 | ||
Valuation Losses, Financial assets at fair value through other comprehensive income | (7,387) | (8,695) | ||
Net Valuation Gains (Losses), Financial assets at fair value through other comprehensive income | (6,705) | (6,724) | ||
Financial assets at fair value through other comprehensive income | 313,906 | 390,974 | ||
Loans and advances - Customers | ||||
Financial instruments | ||||
Financial assets at fair value through other comprehensive income | 946 | 4,056 | ||
Equity investments | ||||
Financial instruments | ||||
Valuation Gains, Financial assets at fair value through other comprehensive income | (76) | |||
Valuation Losses, Financial assets at fair value through other comprehensive income | (18) | |||
Net Valuation Gains (Losses), Financial assets at fair value through other comprehensive income | (18) | (76) | ||
Financial assets at fair value through other comprehensive income | $ 697 | $ 799 | $ 768 | $ 642 |
Valuation adjustments - Changes
Valuation adjustments - Changes - FVTOCI (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial instruments | |||
Cumulative valuation adjustments beginning balance, FVTOCI | $ (2,083) | ||
Valuation adjustments, FVTOCI | (6,705) | $ (6,724) | $ 3,565 |
Amounts reclassified to the consolidated income statement, FVTOCI | (41) | (781) | (843) |
Income tax, FVTOCI | 2,210 | 1,402 | (1,056) |
Cumulative valuation adjustments ending balance, FVTOCI | (6,637) | (2,083) | |
Debt instruments | |||
Financial instruments | |||
Valuation adjustments, FVTOCI | (6,705) | (6,724) | |
Income tax, FVTOCI | 2,210 | 1,402 | (1,056) |
Equity investments | |||
Financial instruments | |||
Valuation adjustments, FVTOCI | (18) | (76) | |
Financial assets at fair value through other comprehensive income category | Debt and equity instruments | |||
Financial instruments | |||
Cumulative valuation adjustments beginning balance, FVTOCI | (2,083) | 4,073 | |
Valuation adjustments, FVTOCI | (6,723) | (6,800) | |
Amounts reclassified to the consolidated income statement, FVTOCI | (41) | (781) | |
Income tax, FVTOCI | 2,210 | 1,425 | |
Cumulative valuation adjustments ending balance, FVTOCI | (6,637) | (2,083) | 4,073 |
Financial assets at fair value through other comprehensive income category | Debt instruments | |||
Financial instruments | |||
Cumulative valuation adjustments beginning balance, FVTOCI | (2,178) | 3,925 | |
Valuation adjustments, FVTOCI | (6,705) | (6,724) | 3,560 |
Amounts reclassified to the consolidated income statement, FVTOCI | (113) | (781) | |
Income tax, FVTOCI | 2,236 | 1,402 | |
Cumulative valuation adjustments ending balance, FVTOCI | (6,760) | (2,178) | 3,925 |
Financial assets at fair value through other comprehensive income category | Equity investments | |||
Financial instruments | |||
Cumulative valuation adjustments beginning balance, FVTOCI | 95 | 148 | |
Valuation adjustments, FVTOCI | (18) | (76) | |
Amounts reclassified to the consolidated income statement, FVTOCI | 72 | ||
Income tax, FVTOCI | (26) | 23 | |
Cumulative valuation adjustments ending balance, FVTOCI | $ 123 | $ 95 | $ 148 |
Valuation adjustments - Cash fl
Valuation adjustments - Cash flow hedges (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Valuation adjustments | ||
Accumulated (loss)/gain on cash flow hedges | $ (437) | $ 420 |
Accumulated gain related to discontinued cash flow hedges (Note 12) | (6) | |
Valuation adjustments - cash flow hedges | $ (437) | $ 414 |
Shareholders' equity - Share ca
Shareholders' equity - Share capital (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share capital | ||
Number of shares authorised | 8,592,294,357 | 8,592,294,357 |
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 | 1,805,300,000 | 1,805,300,000 |
Authorized unsubscribed capital: Series "F" shares | ||
Share capital | ||
Number of shares authorised | 921,514,867 | 921,514,867 |
Authorized unsubscribed capital: Series "B" Shares | ||
Share capital | ||
Number of shares authorised | 883,785,133 | 883,785,133 |
Series F shares | ||
Share capital | ||
Share capital (as a percent) | 51% | |
Series B shares | ||
Share capital | ||
Share capital (as a percent) | 49% |
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) | 96.16% | 91.64% |
Minority Shareholders | ||
Share capital | ||
Participation interest in entity (as a percent) | 3.84% | 8.36% |
Shareholders' equity - Dividend
Shareholders' equity - Dividends and legal reserves (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share capital | |||
Additional withholding tax percentage | 10% | 10% | 10% |
Annual provision to legal reserve (as a percent) | 10% | ||
Percentage of share capital, reserve fund | 100% | ||
Profit or loss recognised from treasury shares | $ 0 | ||
Subsidiaries [member] | |||
Share capital | |||
Annual provision to legal reserve (as a percent) | 5% | ||
Percentage of share capital, reserve fund | 20% |
Shareholders' equity - Other di
Shareholders' equity - Other disclosures (Details) $ / shares in Units, $ in Millions, $ in Billions | 12 Months Ended | ||||||||||||
Jul. 28, 2022 MXN ($) | Jun. 28, 2022 MXN ($) | Nov. 05, 2021 MXN ($) | Jun. 18, 2021 MXN ($) | Apr. 20, 2021 MXN ($) $ / shares shares | Dec. 31, 2022 MXN ($) | Dec. 31, 2021 MXN ($) | Apr. 29, 2022 MXN ($) | Sep. 15, 2021 MXN ($) | Apr. 29, 2021 MXN ($) | Jun. 15, 2020 USD ($) | Apr. 28, 2020 MXN ($) | Feb. 21, 2018 MXN ($) | |
Other capital disclosures | |||||||||||||
Fund to repurchase own shares | $ 12,800 | $ 12,800 | |||||||||||
Dividends declared | $ 8,838 | $ 9,040 | $ 1,867 | $ 3,054 | $ 17,878 | $ 4,921 | |||||||
Amount of shares authorized to be issued | $ 10 | ||||||||||||
Maximum period | 15 years | ||||||||||||
Financial liabilities | $ 1,604,462 | 1,477,724 | |||||||||||
Increase in capital stock | $ 4,368 | ||||||||||||
Number of shares issued | shares | 1,155,300,000 | ||||||||||||
Par value | $ / shares | $ 3.78 | ||||||||||||
Legal reserve | $ 16,365 | $ 16,365 | |||||||||||
Amount allocated from Accumulated reserves for legal reserve | $ 1,260 | $ 1,494 | |||||||||||
Perpetual Subordinated Non-Preferred Contingent Convertible Additional Tier I Capital Notes | |||||||||||||
Other capital disclosures | |||||||||||||
Financial liabilities | $ 700 | ||||||||||||
Series F shares | |||||||||||||
Other capital disclosures | |||||||||||||
Number of shares issued | shares | 589,703,799 | ||||||||||||
Series B shares | |||||||||||||
Other capital disclosures | |||||||||||||
Number of shares issued | shares | 565,596,201 |
Minimum capital requirements -
Minimum capital requirements - General (Details) | 12 Months Ended |
Dec. 31, 2022 item | |
Disclosure of detailed information about financial instruments [line items] | |
Market and operational risk threshold (as a percent) | 8% |
Capital conservation buffer (as a percent) | 2.50% |
Percentage of domestic systemically important bank supplement | 1.20% |
Percentage of counter cyclical capital butter | 0% |
Percentage of maximum capital requirement | 11.70% |
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% |
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% |
Market Risk Charge Coefficient for foreign currency positions | 12% |
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% |
Maximum | |
Assets Subject to Credit Risk | |
Expected credit loss rate | 150% |
Minimum capital requirements _2
Minimum capital requirements - Mexican Banking GAAP (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Capital requirements | ||
Computable capital | $ 143,832 | $ 168,616 |
Core capital | 165,974 | 165,626 |
Supplementary capital | 26,827 | 27,928 |
Deductible items | (62,625) | (49,547) |
Subordinated Additional Tier 1 Capital Notes | 13,656 | 24,609 |
Capital requirements | 59,366 | 62,564 |
Excess of capital requirements | 84,466 | 106,052 |
Risk-weighted assets | 742,079 | 782,050 |
Capital requirements, Market risk | ||
Capital requirements | ||
Capital requirements | 14,945 | 15,354 |
Capital requirements, Credit risk | ||
Capital requirements | ||
Capital requirements | 38,123 | 41,416 |
Capital requirements, Operational risk | ||
Capital requirements | ||
Capital requirements | $ 6,298 | $ 5,794 |
Minimum capital requirements _3
Minimum capital requirements - Capital ratios (Details) | 12 Months Ended | ||
Jun. 18, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Minimum capital requirements | |||
Net Capital / Required Capital | 2.42 | 2.70 | |
Basic Fundamental Capital / Assets subject to Credit, Market and Operating Risk | 13.93% | 14.84% | |
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 | 15.77% | 17.99% | |
Basic Capital / Assets subject to Credit, Market and Operating Risk - Minimum capital requirements | 9.70% | 9.70% | |
Net Capital / Assets subject to Credit Risk | 30.18% | 32.57% | |
Net Capital / Assets subject to Credit, Market and Operating Risk | 19.38% | 21.56% | |
Net Capital / Assets subject to Credit, Market and Operating Risk - Minimum capital requirements | 11.70% | 11.70% | |
Percentage of RWAs | 6.50% | ||
Percentage of leverage ratio | 3.75% | ||
Maximum percentage of increase in add on total loss absorbing capacity | 25% | ||
Percentage of periodical increase in add on total loss absorbing capacity | 25% | ||
Percentage of add on total loss absorbing capacity | 100% | ||
Percentage of complement constituted related to TLAC | 25% |
Memorandum accounts - Contingen
Memorandum accounts - Contingent commitments (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Contingent commitments | ||
Contingent commitments | $ 320,318 | $ 262,925 |
Provisions for off-balance sheet risk | ||
Contingent commitments | ||
Other provisions | 1,539 | 1,108 |
Available lines of credit cards and non-revolving consumer loans | ||
Contingent commitments | ||
Contingent commitments | 205,793 | 171,094 |
Guarantees, documentary credits and loan commitments of commercial and public-sector loans | ||
Contingent commitments | ||
Contingent commitments | 114,418 | 91,516 |
Guarantees, documentary credits and loan commitments of commercial loans (SME) | ||
Contingent commitments | ||
Contingent commitments | $ 107 | $ 315 |
Memorandum accounts - Conting_2
Memorandum accounts - Contingent commitments by stages (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Contingent commitments | ||
Contingent Commitments | $ 320,318 | $ 262,925 |
Available lines of credit cards and non-revolving consumer loans | ||
Contingent commitments | ||
Contingent Commitments | 205,793 | 171,094 |
Guarantees, documentary credits and loan commitments of commercial and public-sector loans | ||
Contingent commitments | ||
Contingent Commitments | 114,418 | 91,516 |
Guarantees, documentary credits and loan commitments of commercial loans (SME) | ||
Contingent commitments | ||
Contingent Commitments | 107 | $ 315 |
Stage 1 | ||
Contingent commitments | ||
Contingent Commitments | 313,528 | |
Stage 1 | Available lines of credit cards and non-revolving consumer loans | ||
Contingent commitments | ||
Contingent Commitments | 204,260 | |
Stage 1 | Guarantees, documentary credits and loan commitments of commercial and public-sector loans | ||
Contingent commitments | ||
Contingent Commitments | 109,161 | |
Stage 1 | Guarantees, documentary credits and loan commitments of commercial loans (SME) | ||
Contingent commitments | ||
Contingent Commitments | 107 | |
Stage 2 | ||
Contingent commitments | ||
Contingent Commitments | 6,160 | |
Stage 2 | Available lines of credit cards and non-revolving consumer loans | ||
Contingent commitments | ||
Contingent Commitments | 1,338 | |
Stage 2 | Guarantees, documentary credits and loan commitments of commercial and public-sector loans | ||
Contingent commitments | ||
Contingent Commitments | 4,822 | |
Stage 2 | Guarantees, documentary credits and loan commitments of commercial loans (SME) | ||
Contingent commitments | ||
Contingent Commitments | 0 | |
Stage 3 | ||
Contingent commitments | ||
Contingent Commitments | 630 | |
Stage 3 | Available lines of credit cards and non-revolving consumer loans | ||
Contingent commitments | ||
Contingent Commitments | 195 | |
Stage 3 | Guarantees, documentary credits and loan commitments of commercial and public-sector loans | ||
Contingent commitments | ||
Contingent Commitments | 435 | |
Stage 3 | Guarantees, documentary credits and loan commitments of commercial loans (SME) | ||
Contingent commitments | ||
Contingent Commitments | $ 0 |
Memorandum accounts - Financial
Memorandum accounts - Financial instruments received as collateral (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financial instruments | ||
Financial instruments received as collateral | $ 123,940 | $ 68,252 |
Financial instrument in connection with OTC derivative transactions | Debt instruments | ||
Financial instruments | ||
Financial instruments received as collateral | 4,541 | 4,491 |
Financial instruments in connection with repurchase agreement transactions | Debt instruments | ||
Financial instruments | ||
Financial instruments received as collateral | 119,398 | 63,687 |
Financial instruments in connection with securities loans transactions | Equity investments | ||
Financial instruments | ||
Financial instruments received as collateral | $ 1 | $ 74 |
Financial derivatives - Nomin_3
Financial derivatives - Nominal amounts and fair values of trading and hedging derivatives - Trading assets (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financial assets | ||
Nominal amount of trading derivative assets | $ 4,830,192 | $ 4,511,903 |
Fair value of trading derivatives | 228,816 | 179,390 |
OTC transactions | ||
Financial assets | ||
Fair value of trading derivatives | 228,816 | 179,390 |
Currency risk | Futures | ||
Financial assets | ||
Nominal amount of trading derivative assets | 48,013 | 12,453 |
Currency risk | Forward rate agreements | ||
Financial assets | ||
Nominal amount of trading derivative assets | 187,753 | 261,701 |
Fair value of trading derivatives | 6,723 | 5,042 |
Currency risk | Forwards: Spot | ||
Financial assets | ||
Nominal amount of trading derivative assets | 21,769 | 30,428 |
Fair value of trading derivatives | 215 | 88 |
Currency risk | Options | ||
Financial assets | ||
Nominal amount of trading derivative assets | 117,173 | 88,639 |
Fair value of trading derivatives | 2,321 | 1,874 |
Currency risk | Currency swaps | ||
Financial assets | ||
Nominal amount of trading derivative assets | 523,287 | 486,767 |
Fair value of trading derivatives | 59,553 | 76,649 |
Interest rate risk | Options | ||
Financial assets | ||
Nominal amount of trading derivative assets | 66,342 | 53,370 |
Fair value of trading derivatives | 1,277 | 712 |
Interest rate risk | Interest rate swaps | ||
Financial assets | ||
Nominal amount of trading derivative assets | 3,863,421 | 3,577,417 |
Fair value of trading derivatives | 158,553 | 94,895 |
Market Index | Futures | ||
Financial assets | ||
Nominal amount of trading derivative assets | 72 | |
Market Index | Options | ||
Financial assets | ||
Nominal amount of trading derivative assets | 55 | 281 |
Fair value of trading derivatives | 12 | 45 |
Equity price risk | Options | ||
Financial assets | ||
Nominal amount of trading derivative assets | 2,379 | 775 |
Fair value of trading derivatives | $ 162 | $ 85 |
Financial derivatives - Nomin_4
Financial derivatives - Nominal amounts and fair values of trading and hedging financial derivatives - Hedging assets (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Hedging derivative assets | ||
Nominal amount of hedging derivative assets | $ 126,202 | $ 116,085 |
Fair value of hedging derivative assets | 10,181 | 11,248 |
Total Derivative Assets, Nominal | 4,956,394 | 4,627,988 |
Total Derivative Assets, Fair Value | 238,997 | 190,638 |
Cash flow hedges | ||
Hedging derivative assets | ||
Fair value of hedging derivative assets | 5,258 | 9,780 |
Fair value hedges | ||
Hedging derivative assets | ||
Fair value of hedging derivative assets | 4,923 | 1,468 |
Interest rate swaps | Fair value hedges | Interest rate risk | ||
Hedging derivative assets | ||
Nominal amount of hedging derivative assets | 66,503 | 47,047 |
Fair value of hedging derivative assets | 3,680 | 1,454 |
Currency swaps | Cash flow hedges | Currency risk | ||
Hedging derivative assets | ||
Nominal amount of hedging derivative assets | 5,553 | 11,125 |
Fair value of hedging derivative assets | 189 | 4,547 |
Currency swaps | Fair value hedges | Currency risk | ||
Hedging derivative assets | ||
Nominal amount of hedging derivative assets | 13,067 | 244 |
Fair value of hedging derivative assets | 1,243 | 14 |
Forward rate agreements | Cash flow hedges | Currency risk | ||
Hedging derivative assets | ||
Nominal amount of hedging derivative assets | 41,079 | 57,669 |
Fair value of hedging derivative assets | $ 5,069 | $ 5,233 |
Financial derivatives - Nomin_5
Financial derivatives - Nominal amounts and fair values of trading and hedging financial derivatives - Trading liabilities (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financial liabilities | ||
Nominal amount of trading derivative liabilities | $ 4,768,349 | $ 4,554,993 |
Fair value of trading derivative liabilities | 231,188 | 176,678 |
OTC transactions | ||
Financial liabilities | ||
Fair value of trading derivative liabilities | 231,188 | 176,678 |
Currency risk | Futures | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 15,212 | 10,827 |
Fair value of trading derivative liabilities | 12 | |
Currency risk | Forward rate agreements | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 200,965 | 214,999 |
Fair value of trading derivative liabilities | 4,985 | 3,389 |
Currency risk | Forwards: Spot | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 39,033 | 33,031 |
Fair value of trading derivative liabilities | 123 | 102 |
Currency risk | Options | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 78,285 | 70,823 |
Fair value of trading derivative liabilities | 2,278 | 2,064 |
Currency risk | Currency swaps | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 480,136 | 417,366 |
Fair value of trading derivative liabilities | 55,375 | 74,634 |
Interest rate risk | Options | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 104,644 | 78,509 |
Fair value of trading derivative liabilities | 1,921 | 915 |
Interest rate risk | Interest rate swaps | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 3,843,533 | 3,724,129 |
Fair value of trading derivative liabilities | 164,277 | 93,600 |
Market Index | Futures | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 127 | 612 |
Fair value of trading derivative liabilities | 1 | |
Market Index | Options | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 1,736 | 1,904 |
Fair value of trading derivative liabilities | 1,567 | 1,422 |
Equity price risk | Options | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 4,228 | 1,934 |
Fair value of trading derivative liabilities | 177 | 209 |
Equity price risk | Equity swaps | ||
Financial liabilities | ||
Nominal amount of trading derivative liabilities | 450 | 859 |
Fair value of trading derivative liabilities | $ 473 | $ 342 |
Financial derivatives - Nomin_6
Financial derivatives - Nominal amounts and fair values of trading and hedging financial derivatives - Hedging liabilities (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Hedging derivative liabilities | ||
Nominal amount of hedging derivative liabilities | $ 85,679 | $ 47,886 |
Fair value of hedging derivative liabilities | 4,461 | 8,162 |
Total Derivative Liabilities, Nominal | 4,854,028 | 4,602,879 |
Total Derivative Liabilities, Fair Value | 235,649 | 184,840 |
Cash flow hedges | ||
Hedging derivative liabilities | ||
Fair value of hedging derivative liabilities | 1,256 | 1,144 |
Fair value hedges | ||
Hedging derivative liabilities | ||
Fair value of hedging derivative liabilities | 3,205 | 7,018 |
Forward rate agreements | Cash flow hedges | Currency risk | ||
Hedging derivative liabilities | ||
Nominal amount of hedging derivative liabilities | 12,279 | 7,289 |
Fair value of hedging derivative liabilities | 885 | 238 |
Interest rate swaps | Cash flow hedges | Interest rate risk | ||
Hedging derivative liabilities | ||
Nominal amount of hedging derivative liabilities | 7,311 | |
Fair value of hedging derivative liabilities | 42 | |
Interest rate swaps | Fair value hedges | Interest rate risk | ||
Hedging derivative liabilities | ||
Nominal amount of hedging derivative liabilities | 62,029 | 1,867 |
Fair value of hedging derivative liabilities | 1,109 | 96 |
Currency swaps | Cash flow hedges | Currency risk | ||
Hedging derivative liabilities | ||
Nominal amount of hedging derivative liabilities | 3,340 | 2,704 |
Fair value of hedging derivative liabilities | 371 | 864 |
Currency swaps | Fair value hedges | Currency risk | ||
Hedging derivative liabilities | ||
Nominal amount of hedging derivative liabilities | 8,031 | 28,715 |
Fair value of hedging derivative liabilities | $ 2,096 | $ 6,922 |
Financial derivatives - Nomin_7
Financial derivatives - Nominal amounts and fair values of trading and hedging financial derivatives - Collateral provided (Details) - Financial instruments in connection with derivative transactions in organized markets - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financial instruments | ||
Collateral provided | $ 6,530 | $ 6,261 |
Cash | Mercado Mexicano de Derivados, S.A. de C.V. | ||
Financial instruments | ||
Collateral provided | 5,946 | 4,326 |
Cash | Chicago Mercantile Exchange | ||
Financial instruments | ||
Collateral provided | 431 | 1,934 |
Cash | Foreign financial Institutions | ||
Financial instruments | ||
Collateral provided | $ 153 | $ 1 |
Financial derivatives - Nomin_8
Financial derivatives - Nominal amounts and fair values of trading and hedging financial derivatives - Collateral delivered (Details) - Financial instrument in connection with OTC derivative transactions - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financial assets at amortized cost category | Loans and advances - Credit institutions | ||
Financial instruments | ||
Collateral delivered | $ 14,585 | $ 13,234 |
Financial assets at amortized cost category | Loans and advances - Customers | ||
Financial instruments | ||
Collateral delivered | 1,091 | |
Financial assets at fair value through profit or loss category | Debt instruments | ||
Financial instruments | ||
Collateral delivered | 7,077 | 6,375 |
Mexican financial institutions | Financial assets at amortized cost category | Loans and advances - Credit institutions | ||
Financial instruments | ||
Collateral delivered | 11,697 | 7,163 |
Mexican financial institutions | Financial assets at fair value through profit or loss category | Debt instruments | ||
Financial instruments | ||
Collateral delivered | 4,906 | 3,443 |
Foreign financial Institutions | Financial assets at amortized cost category | Loans and advances - Credit institutions | ||
Financial instruments | ||
Collateral delivered | 2,888 | 6,071 |
Foreign financial Institutions | Financial assets at fair value through profit or loss category | Debt instruments | ||
Financial instruments | ||
Collateral delivered | 2,171 | $ 2,932 |
Mexican institutions | Financial assets at amortized cost category | Loans and advances - Customers | ||
Financial instruments | ||
Collateral delivered | $ 1,091 |
Financial derivatives - Nomin_9
Financial derivatives - Nominal amounts and fair values of trading and hedging financial derivatives - Collateral received (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financial instruments | ||
Cash collateral received | $ 26,861 | $ 26,919 |
Financial instrument in connection with OTC derivative transactions | Deposits | ||
Financial instruments | ||
Cash collateral received | 26,861 | 26,919 |
Financial instrument in connection with OTC derivative transactions | Mexican financial institutions | Deposits | ||
Financial instruments | ||
Cash collateral received | 5,559 | 9,325 |
Financial instrument in connection with OTC derivative transactions | Foreign financial Institutions | Deposits | ||
Financial instruments | ||
Cash collateral received | $ 21,302 | $ 17,594 |
Financial derivatives - Nomi_10
Financial derivatives - Nominal amounts and fair values of trading and hedging financial derivatives - Memorandum accounts (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financial instruments | ||
Financial instruments received as collateral | $ 123,940 | $ 68,252 |
Percentage of level of confidence | 97.50% | |
Cumulative net credit risk exposure | $ 42,765 | 32,803 |
Financial instrument in connection with OTC derivative transactions | Debt instruments | ||
Financial instruments | ||
Financial instruments received as collateral | 4,541 | 4,491 |
Financial instrument in connection with OTC derivative transactions | Mexican financial institutions | Debt instruments | ||
Financial instruments | ||
Financial instruments received as collateral | $ 4,541 | $ 4,491 |
Interest income calculated us_3
Interest income calculated using the effective interest method (Detail) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial assets | |||
Cash and balances with the Central Bank | $ 2,587 | $ 1,471 | $ 1,951 |
Hedging derivatives | 5,370 | 340 | 2,432 |
Other interest income | 1,234 | 353 | 249 |
Total interest income except interest income on financial assets at fair value through profit or loss | 124,096 | 94,045 | 103,977 |
Financial assets except for those at fair value through profit or loss starting January 1, 2018. | |||
Financial assets | |||
Loans and advances to credit institutions | 1,523 | 1,714 | 412 |
Loans and advances to customers | 93,594 | 74,695 | 84,290 |
Debt instruments | $ 19,788 | $ 15,472 | $ 14,643 |
Other interest and similar in_3
Other interest and similar income (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial assets | |||
Other interest and similar income | $ 14,900 | $ 9,067 | $ 12,008 |
Financial assets at fair value through profit or loss category | |||
Financial assets | |||
Other interest and similar income | 14,900 | 9,067 | 12,008 |
Loans and advances - Credit institutions | Financial assets at fair value through profit or loss category | |||
Financial assets | |||
Other interest and similar income | 8,002 | 1,543 | 2,997 |
Loans and advances - Customers | Financial assets at fair value through profit or loss category | |||
Financial assets | |||
Other interest and similar income | 785 | 507 | 804 |
Debt instruments | Financial assets at fair value through profit or loss category | |||
Financial assets | |||
Other interest and similar income | $ 6,113 | $ 7,017 | $ 8,207 |
Interest expense and similar _3
Interest expense and similar charges (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest expense and similar charges | |||
Deposits from credit institutions | $ 19,373 | $ 10,967 | $ 12,400 |
Customer deposits | 32,228 | 19,224 | 28,235 |
Marketable debt securities | 7,632 | 5,308 | 5,756 |
Subordinated liabilities | 1,646 | 1,668 | 1,767 |
Hedging derivatives | 99 | 299 | 193 |
Other interest expense | 2,906 | 2,214 | 1,824 |
Total interest expense and similar charges | $ 63,884 | $ 39,680 | $ 50,175 |
Dividend income (Details)
Dividend income (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Dividend income | |||
Dividend income | $ 186 | $ 227 | $ 246 |
Financial assets at fair value through profit or loss category | |||
Dividend income | |||
Dividend income | 13 | 28 | 40 |
Financial assets at fair value through other comprehensive income category | |||
Dividend income | |||
Dividend income | 173 | 199 | 206 |
NAFTRAC (Exchange-traded fund or ETF) | Financial assets at fair value through profit or loss category | |||
Dividend income | |||
Dividend income | 5 | 9 | 36 |
Grupo Mexico, S.A.B. de C.V. | Financial assets at fair value through profit or loss category | |||
Dividend income | |||
Dividend income | 8 | ||
Grupo Cementos de Chihuahua, S.A.B. de C.V | Financial assets at fair value through profit or loss category | |||
Dividend income | |||
Dividend income | 1 | 3 | |
Fomento Economico Mexicano, 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 | ||
Organization Soriano, S.A.B. de C.V | Financial assets at fair value through profit or loss category | |||
Dividend income | |||
Dividend income | 17 | ||
Controladora Prosa, S.A. de C.V. | Financial assets at fair value through other comprehensive income category | |||
Dividend income | |||
Dividend income | 64 | 73 | |
Trans Union de Mexico, S.A. | Financial assets at fair value through other comprehensive income category | |||
Dividend income | |||
Dividend income | 126 | 88 | 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 | 31 | 29 | 25 |
Dun and Bradstreet de Mexico S.A. de C.V. | Financial assets at fair value through other comprehensive income category | |||
Dividend income | |||
Dividend income | $ 16 | $ 18 | $ 20 |
Fee and commission income (Deta
Fee and commission income (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Collection and payment services: | |||
Service charges on deposit accounts | $ 3,012 | $ 2,593 | $ 2,588 |
Credit and debit cards | 9,892 | 8,379 | 7,667 |
Checks and others | 157 | 172 | 181 |
Total collection and payment services | 13,061 | 11,144 | 10,436 |
Marketing of non-banking financial products: | |||
Investment funds management | 1,900 | 1,747 | 1,611 |
Capital markets and securities activities | 634 | 523 | 514 |
Collection and payment services | 2,350 | 2,206 | 2,074 |
Insurance | 6,203 | 5,508 | 5,300 |
Financial advisory services | 1,415 | 1,307 | 1,179 |
Total marketing of nonbanking financial products | 12,502 | 11,291 | 10,678 |
Securities services: | |||
Administration and custody | 394 | 459 | 461 |
Total securities services | 394 | 459 | 461 |
Other: | |||
Foreign currency transactions | 1,539 | 1,510 | 1,380 |
Other fees and commissions | 999 | 951 | 801 |
Total other | 2,538 | 2,461 | 2,181 |
Total fee and commission income | $ 28,495 | $ 25,355 | $ 23,756 |
Fee and commission expenses (De
Fee and commission expenses (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fee and commission expenses | |||
Credit and debit cards | $ 4,964 | $ 3,938 | $ 2,741 |
Checks and others | 68 | 48 | 43 |
Collections and transactional services | 254 | 305 | 291 |
Fund management | 1 | 1 | 1 |
Capital markets and securities activities | 296 | 202 | 173 |
Financial advisory services | 6 | 6 | 5 |
Correspondent services | 674 | 802 | 791 |
Other fees and commissions | 3,000 | 2,847 | 2,688 |
Total fee and commission expenses | $ 9,263 | $ 8,149 | $ 6,733 |
Gains_(losses) on financial a_3
Gains/(losses) on financial assets and liabilities (net) (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial instruments | |||
Gains/(losses) on financial assets and liabilities (net), Total | $ 1,024 | $ 4,883 | $ 5,984 |
Fair value hedges | |||
Financial instruments | |||
Fair value hedge - hedged items | (4,903) | (9,278) | 6,427 |
Fair value hedge - hedging derivative instruments | 5,225 | 8,746 | (6,884) |
Financial instruments at fair value through profit or loss, type of instrument | |||
Financial instruments | |||
Gains/(losses) on financial assets and liabilities (net), Total | 589 | 4,640 | 5,662 |
Financial instruments at fair value through other comprehensive income, type of instrument | |||
Financial instruments | |||
Gains/(losses) on financial assets and liabilities (net), Total | 113 | 781 | 779 |
Hedging derivatives, type of instrument | |||
Financial instruments | |||
Gains/(losses) on financial assets and liabilities (net), Total | 322 | (538) | (457) |
Fair value hedge - hedged items | (4,903) | (9,278) | 6,427 |
Fair value hedge - hedging derivative instruments | 5,225 | 8,746 | (6,884) |
Cash flow hedge inefficiency | (6) | ||
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 | (5,613) | 119 | 1,221 |
Equity investments | Financial instruments at fair value through profit or loss, type of instrument | |||
Financial instruments | |||
Gains/(losses) on financial assets and liabilities (net), Total | 289 | 398 | (161) |
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 | 6,021 | 4,096 | 4,458 |
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 | $ (108) | $ 27 | $ 144 |
Other operating income and ot_3
Other operating income and other operating expenses (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other operating income: | |||
Other operating income | $ 810 | $ 1,740 | $ 1,651 |
Other operating income | 810 | 1,740 | 1,651 |
Other operating expenses: | |||
IPAB fund contribution | (3,981) | (3,801) | (3,859) |
Other operating expense | (1,305) | (1,405) | (1,354) |
Other operating expense | $ (5,286) | $ (5,206) | $ (5,213) |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Personnel expenses | |||
Wages and salaries | $ 9,164 | $ 8,307 | $ 7,838 |
Social security costs | 2,010 | 1,703 | 1,494 |
Service expense related to defined contribution pension plan | 555 | 483 | 488 |
Service expense related to defined benefit pension plan | 221 | 260 | 194 |
Share-based payments | 305 | 54 | 226 |
Bonus and benefits granted to employees | 4,983 | 4,111 | 3,052 |
Other staff costs | 1,677 | 1,567 | 1,584 |
Total employee benefits expense | $ 18,915 | $ 16,485 | $ 14,876 |
Personnel expenses - Share-base
Personnel expenses - Share-based payments (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based payment arrangement | |||
Period after each anniversaries the beneficiaries will receive cash and shares (in years) | 30 days | ||
Reclassification from accumulated reserves | $ 264 | ||
Number of shares committed (in shares) | 2,004,800 | ||
Share-based payment expense recognized in consolidated income statement | $ 305 | $ 54 | $ 226 |
Maximum | |||
Share-based payment arrangement | |||
Variable annual compensation deferral period (in years) | 5 years | ||
Minimum | |||
Share-based payment arrangement | |||
Variable annual compensation deferral period (in years) | 4 years | ||
Threshold lock in period in which shares delivered to employees (in years) | 1 year |
Personnel expenses - Bonus paym
Personnel expenses - Bonus payment policies (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 MXN ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 MXN ($) | Dec. 31, 2020 MXN ($) | |
Share-based payment arrangement | ||||
Share-based payment expense recognized in consolidated income statement | $ | $ 305 | $ 54 | $ 226 | |
Bonus Plan | ||||
Share-based payment arrangement | ||||
Shares obligation retention period | 1 year | 1 year | ||
Share-based payment expense recognized in consolidated income statement | $ | $ 862 | $ 448 | $ 294 | |
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% | 50% | ||
Percentage paid in shares | 50% | 50% | ||
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% | 40% | ||
Deferred Percentage | 60% | 60% | ||
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% | 50% | ||
Deferred Percentage | 50% | 50% | ||
Bonus Plan | Other Beneficiaries | ||||
Share-based payment arrangement | ||||
Variable remuneration/Deferral period | 4 years | 4 years | ||
Immediate Payment Percentage | 60% | 60% | ||
Deferred Percentage | 40% | 40% | ||
Minimum | Bonus Plan | ||||
Share-based payment arrangement | ||||
Variable remuneration/Deferral period | 3 years | 3 years | ||
Annual vesting percentage | 33% | 33% | ||
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% | 20% | ||
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other general administrative expenses | |||
Maintenance, conservation and repair | $ 736 | $ 773 | $ 825 |
Information technology and systems | 6,108 | 5,945 | 5,344 |
Stationery and supplies | 156 | 234 | 325 |
Advertising and communications | 753 | 696 | 809 |
Rents | 614 | 556 | 683 |
Administrative services | 1,424 | 1,603 | 2,202 |
Taxes other than income tax | 2,030 | 1,915 | 2,270 |
Surveillance and cash courier services | 1,341 | 1,237 | 1,263 |
Insurance premiums | 100 | 103 | 114 |
Travel costs | 175 | 62 | 71 |
Other administrative expenses | 1,413 | 1,263 | 1,353 |
Total | 14,850 | 14,387 | 15,259 |
Audit and tax services | |||
Audit fees and audit-related fees | 105 | 99 | 122 |
Audit-related fees | $ 17 | $ 32 | $ 26 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) | |||
Gains of disposal of tangible assets | $ 4 | $ 57 | $ 6 |
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) | $ 4 | $ 57 | $ 6 |
Other disclosures - Remaining m
Other disclosures - Remaining maturity periods (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||||
Cash and balances with the Central Bank | $ 72,815 | $ 63,073 | ||
Financial assets at fair value through profit or loss | 484,987 | 361,615 | ||
Financial assets at fair value through other comprehensive income | 315,549 | 395,829 | ||
Financial assets at amortized cost | 860,357 | 785,108 | ||
Fair value of hedging derivative assets | 10,181 | 11,248 | ||
Total financial assets | 1,743,889 | 1,616,873 | ||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 434,112 | 351,417 | ||
Financial liabilities at amortized cost | 1,165,889 | 1,118,145 | ||
Hedging derivatives | 4,461 | 8,162 | ||
Total financial liabilities | 1,604,462 | 1,477,724 | ||
Difference (assets less liabilities) | 139,427 | 139,149 | ||
On demand | ||||
ASSETS | ||||
Cash and balances with the Central Bank | 37,543 | 26,360 | ||
Fair value of hedging derivative assets | 1,502 | 125 | ||
Total financial assets | 43,410 | 58,573 | ||
LIABILITIES AND EQUITY | ||||
Hedging derivatives | 1 | |||
Total financial liabilities | 566,101 | 591,439 | ||
Difference (assets less liabilities) | (522,691) | (532,866) | ||
1 month | ||||
ASSETS | ||||
Cash and balances with the Central Bank | 11,294 | 12,735 | ||
Fair value of hedging derivative assets | 47 | |||
Total financial assets | 236,181 | 230,889 | ||
LIABILITIES AND EQUITY | ||||
Total financial liabilities | 531,990 | 474,565 | ||
Difference (assets less liabilities) | (295,809) | (243,676) | ||
3 months | ||||
ASSETS | ||||
Fair value of hedging derivative assets | 164 | |||
Total financial assets | 202,217 | 165,300 | ||
LIABILITIES AND EQUITY | ||||
Total financial liabilities | 49,366 | 38,305 | ||
Difference (assets less liabilities) | 152,851 | 126,995 | ||
3 to 12 months | ||||
ASSETS | ||||
Fair value of hedging derivative assets | 171 | 4,753 | ||
Total financial assets | 263,303 | 228,752 | ||
LIABILITIES AND EQUITY | ||||
Hedging derivatives | 306 | 38 | ||
Total financial liabilities | 139,141 | 102,679 | ||
Difference (assets less liabilities) | 124,162 | 126,073 | ||
1 to 3 years | ||||
ASSETS | ||||
Fair value of hedging derivative assets | 3,584 | 1,803 | ||
Total financial assets | 427,600 | 367,807 | ||
LIABILITIES AND EQUITY | ||||
Hedging derivatives | 2,143 | 1,096 | ||
Total financial liabilities | 114,236 | 56,435 | ||
Difference (assets less liabilities) | 313,364 | 311,372 | ||
3 to 5 years | ||||
ASSETS | ||||
Fair value of hedging derivative assets | 3,638 | 4,553 | ||
Total financial assets | 268,859 | 246,976 | ||
LIABILITIES AND EQUITY | ||||
Hedging derivatives | 1,097 | 2,700 | ||
Total financial liabilities | 78,799 | 90,936 | ||
Difference (assets less liabilities) | 190,060 | 156,040 | ||
More than five years | ||||
ASSETS | ||||
Cash and balances with the Central Bank | 23,978 | 23,978 | ||
Fair value of hedging derivative assets | 1,075 | 14 | ||
Total financial assets | 302,319 | 318,576 | ||
LIABILITIES AND EQUITY | ||||
Hedging derivatives | 915 | 4,327 | ||
Total financial liabilities | 124,829 | 123,365 | ||
Difference (assets less liabilities) | 177,490 | 195,211 | ||
Loans and advances to customers | ||||
ASSETS | ||||
Financial assets at fair value through other comprehensive income | 4,056 | |||
Loans and advances to customers | 1 month | ||||
ASSETS | ||||
Financial assets at fair value through other comprehensive income | 450 | |||
Loans and advances to customers | 3 months | ||||
ASSETS | ||||
Financial assets at fair value through other comprehensive income | 900 | |||
Loans and advances to customers | 3 to 12 months | ||||
ASSETS | ||||
Financial assets at fair value through other comprehensive income | 2,706 | |||
Loans and advances - Credit institutions | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 102,652 | 58,486 | ||
Financial assets at amortized cost | 40,400 | 36,492 | ||
Total financial assets | 143,052 | 94,978 | ||
Loans and advances - Credit institutions | On demand | ||||
ASSETS | ||||
Financial assets at amortized cost | 19,403 | |||
Loans and advances - Credit institutions | 1 month | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 93,267 | 58,486 | ||
Financial assets at amortized cost | 40,400 | 17,089 | ||
Loans and advances - Credit institutions | 3 to 12 months | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 9,385 | |||
Loans and advances - Customers | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 19,207 | 10,000 | ||
Financial assets at fair value through other comprehensive income | 946 | 4,056 | ||
Financial assets at amortized cost | 797,716 | 736,997 | ||
Total financial assets | 817,869 | 751,053 | ||
Loans and advances - Customers | On demand | ||||
ASSETS | ||||
Financial assets at amortized cost | 4,034 | 12,538 | ||
Loans and advances - Customers | 1 month | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 19,207 | 10,000 | ||
Financial assets at fair value through other comprehensive income | 95 | |||
Financial assets at amortized cost | 52,944 | 50,092 | ||
Loans and advances - Customers | 3 months | ||||
ASSETS | ||||
Financial assets at fair value through other comprehensive income | 188 | |||
Financial assets at amortized cost | 108,526 | 85,708 | ||
Loans and advances - Customers | 3 to 12 months | ||||
ASSETS | ||||
Financial assets at fair value through other comprehensive income | 594 | |||
Financial assets at amortized cost | 186,273 | 176,794 | ||
Loans and advances - Customers | 1 to 3 years | ||||
ASSETS | ||||
Financial assets at fair value through other comprehensive income | 38 | |||
Financial assets at amortized cost | 205,255 | 173,148 | ||
Loans and advances - Customers | 3 to 5 years | ||||
ASSETS | ||||
Financial assets at fair value through other comprehensive income | 31 | |||
Financial assets at amortized cost | 83,851 | 78,773 | ||
Loans and advances - Customers | More than five years | ||||
ASSETS | ||||
Financial assets at amortized cost | 156,833 | 159,944 | ||
Debt instruments | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 130,249 | 110,975 | ||
Financial assets at fair value through other comprehensive income | 313,906 | 390,974 | ||
Financial assets at amortized cost | 22,241 | 11,619 | ||
Total financial assets | 466,396 | 513,568 | ||
Debt instruments | 1 month | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 7,009 | 4,197 | ||
Financial assets at fair value through other comprehensive income | 9,443 | 74,851 | ||
Debt instruments | 3 months | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 20,031 | 31,192 | ||
Financial assets at fair value through other comprehensive income | 65,891 | 40,537 | ||
Debt instruments | 3 to 12 months | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 34,030 | 25,550 | ||
Financial assets at fair value through other comprehensive income | 5,391 | 2,757 | ||
Financial assets at amortized cost | 1,774 | |||
Debt instruments | 1 to 3 years | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 51,027 | 34,552 | ||
Financial assets at fair value through other comprehensive income | 83,423 | 110,173 | ||
Financial assets at amortized cost | 16,537 | |||
Debt instruments | 3 to 5 years | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 8,255 | 8,355 | ||
Financial assets at fair value through other comprehensive income | 117,274 | 110,586 | ||
Financial assets at amortized cost | 4,038 | 7,788 | ||
Debt instruments | More than five years | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 9,897 | 7,129 | ||
Financial assets at fair value through other comprehensive income | 32,484 | 52,070 | ||
Financial assets at amortized cost | 1,666 | 2,057 | ||
Equity investments | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 4,063 | 2,764 | ||
Financial assets at fair value through other comprehensive income | 697 | 799 | $ 768 | $ 642 |
Total financial assets | 4,760 | 3,563 | ||
Equity investments | 3 to 5 years | ||||
ASSETS | ||||
Financial assets at fair value through other comprehensive income | 110 | 192 | ||
Equity investments | More than five years | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 4,063 | 2,764 | ||
Financial assets at fair value through other comprehensive income | 587 | 607 | ||
Trading derivative assets | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 228,816 | 179,390 | ||
Trading derivative assets | On demand | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 331 | 147 | ||
Trading derivative assets | 1 month | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 2,475 | 2,989 | ||
Trading derivative assets | 3 months | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 7,417 | 6,963 | ||
Trading derivative assets | 3 to 12 months | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 27,459 | 14,418 | ||
Trading derivative assets | 1 to 3 years | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 67,736 | 48,131 | ||
Trading derivative assets | 3 to 5 years | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 51,662 | 36,729 | ||
Trading derivative assets | More than five years | ||||
ASSETS | ||||
Financial assets at fair value through profit or loss | 71,736 | 70,013 | ||
Trading derivative liabilities | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 231,188 | 176,678 | ||
Trading derivative liabilities | On demand | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 623 | 69 | ||
Trading derivative liabilities | 1 month | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 3,488 | 1,228 | ||
Trading derivative liabilities | 3 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 7,182 | 5,944 | ||
Trading derivative liabilities | 3 to 12 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 28,935 | 15,189 | ||
Trading derivative liabilities | 1 to 3 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 65,112 | 51,478 | ||
Trading derivative liabilities | 3 to 5 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 51,958 | 34,068 | ||
Trading derivative liabilities | More than five years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 73,890 | 68,702 | ||
Short positions | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 28,762 | 19,554 | ||
Short positions | 1 month | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 28,762 | 19,554 | ||
Deposits - The Central banks | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 31,055 | 23,002 | ||
Financial liabilities at amortized cost | 89,753 | 86,616 | ||
Deposits - The Central banks | 1 month | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 31,055 | 23,002 | ||
Financial liabilities at amortized cost | 89,753 | 78,312 | ||
Deposits - The Central banks | 3 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 8,203 | |||
Deposits - The Central banks | 3 to 12 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 101 | |||
Deposits - Credit institutions | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 17,846 | |||
Financial liabilities at amortized cost | 83,339 | |||
Deposits - Credit institutions | On demand | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 39,213 | |||
Deposits - Credit institutions | 1 month | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 17,846 | |||
Financial liabilities at amortized cost | 38,874 | |||
Deposits - Credit institutions | 3 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 1,523 | |||
Deposits - Credit institutions | 3 to 12 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 2,406 | |||
Deposits - Credit institutions | 1 to 3 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 15 | |||
Deposits - Credit institutions | 3 to 5 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 22 | |||
Deposits - Credit institutions | More than five years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 1,286 | |||
Deposits - Credit institutions, Excludes repurchase agreements | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 65,354 | 78,182 | ||
Deposits - Credit institutions, Excludes repurchase agreements | On demand | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 26,523 | |||
Deposits - Credit institutions, Excludes repurchase agreements | 1 month | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 29,036 | |||
Deposits - Credit institutions, Excludes repurchase agreements | 3 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 1,455 | |||
Deposits - Credit institutions, Excludes repurchase agreements | 3 to 12 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 2,159 | |||
Deposits - Credit institutions, Excludes repurchase agreements | 1 to 3 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 5,009 | |||
Deposits - Credit institutions, Excludes repurchase agreements | 3 to 5 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 123 | |||
Deposits - Credit institutions, Excludes repurchase agreements | More than five years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 1,049 | |||
Deposits - Credit institutions Repurchase Agreements | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 22,818 | 17,846 | ||
Financial liabilities at amortized cost | 9,003 | 5,157 | ||
Deposits - Credit institutions Repurchase Agreements | 1 month | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 22,818 | |||
Financial liabilities at amortized cost | 9,003 | |||
Deposits - Customers | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 119,769 | 114,078 | ||
Financial liabilities at fair value through profit or loss | 119,769 | 114,078 | ||
Financial liabilities at amortized cost | 808,529 | 777,886 | ||
Total financial liabilities | 928,298 | 891,964 | ||
Deposits - Customers | On demand | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 541,585 | |||
Deposits - Customers | 1 month | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 114,308 | 114,078 | ||
Financial liabilities at amortized cost | 153,372 | |||
Deposits - Customers | 3 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 5,461 | |||
Financial liabilities at amortized cost | 20,416 | |||
Deposits - Customers | 3 to 12 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 52,728 | |||
Deposits - Customers | 1 to 3 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 3,669 | |||
Deposits - Customers | 3 to 5 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 4,558 | |||
Deposits - Customers | More than five years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 1,558 | |||
Customer deposits, Excludes repurchase agreements | ||||
ASSETS | ||||
Financial assets at amortized cost | 781,607 | |||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 781,607 | 760,325 | ||
Customer deposits, Excludes repurchase agreements | On demand | ||||
ASSETS | ||||
Financial assets at amortized cost | 538,955 | |||
Customer deposits, Excludes repurchase agreements | 1 month | ||||
ASSETS | ||||
Financial assets at amortized cost | 138,171 | |||
Customer deposits, Excludes repurchase agreements | 3 months | ||||
ASSETS | ||||
Financial assets at amortized cost | 21,437 | |||
Customer deposits, Excludes repurchase agreements | 3 to 12 months | ||||
ASSETS | ||||
Financial assets at amortized cost | 74,859 | |||
Customer deposits, Excludes repurchase agreements | 1 to 3 years | ||||
ASSETS | ||||
Financial assets at amortized cost | 4,038 | |||
Customer deposits, Excludes repurchase agreements | 3 to 5 years | ||||
ASSETS | ||||
Financial assets at amortized cost | 3,271 | |||
Customer deposits, Excludes repurchase agreements | More than five years | ||||
ASSETS | ||||
Financial assets at amortized cost | 876 | |||
Customer deposits - Repurchase agreements | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 119,769 | 114,078 | ||
Financial liabilities at amortized cost | 26,922 | 17,561 | ||
Customer deposits - Repurchase agreements | 1 month | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 26,912 | |||
Customer deposits - Repurchase agreements | 3 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 10 | |||
Marketable debt securities | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 520 | 259 | ||
Financial liabilities at fair value through profit or loss | 520 | 259 | ||
Financial liabilities at amortized cost | 134,393 | 101,423 | ||
Total financial liabilities | 134,913 | 101,682 | ||
Marketable debt securities | 1 month | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 10 | |||
Financial liabilities at amortized cost | 23,933 | 14,355 | ||
Marketable debt securities | 3 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 112 | 66 | ||
Financial liabilities at amortized cost | 11,202 | 2,049 | ||
Marketable debt securities | 3 to 12 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 249 | 119 | ||
Financial liabilities at amortized cost | 30,217 | 29,009 | ||
Marketable debt securities | 1 to 3 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 77 | |||
Financial liabilities at amortized cost | 37,682 | |||
Marketable debt securities | 3 to 5 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at fair value through profit or loss | 72 | 74 | ||
Financial liabilities at amortized cost | 22,278 | 49,510 | ||
Marketable debt securities | More than five years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 9,081 | 6,500 | ||
Subordinated liabilities | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 39,384 | 51,643 | ||
Subordinated liabilities | 1 month | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 10,254 | |||
Subordinated liabilities | 3 to 12 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 366 | 397 | ||
Subordinated liabilities | More than five years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 39,018 | 40,992 | ||
Other financial liabilities | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 19,473 | 17,238 | ||
Other financial liabilities | On demand | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 10,571 | |||
Other financial liabilities | 1 month | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 14,741 | 3,690 | ||
Other financial liabilities | 3 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 2,507 | 104 | ||
Other financial liabilities | 3 to 12 months | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | 2,050 | 2,692 | ||
Other financial liabilities | 1 to 3 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | $ 175 | 177 | ||
Other financial liabilities | 3 to 5 years | ||||
LIABILITIES AND EQUITY | ||||
Financial liabilities at amortized cost | $ 4 |
Other disclosures - Undiscounte
Other disclosures - Undiscounted contractual maturity periods (Details) - Financial liabilities at amortized cost - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | $ 1,219,723 | $ 1,170,246 |
On demand | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 565,478 | 591,234 |
1 month | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 333,886 | 300,527 |
3 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 39,981 | 35,628 |
3 to 12 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 121,409 | 95,191 |
1 to 3 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 59,133 | 15,295 |
3 to 5 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 33,568 | 64,966 |
More than five years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 66,268 | 67,405 |
Deposits - The Central banks | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 89,863 | 86,729 |
Deposits - The Central banks | 1 month | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 89,863 | 78,399 |
Deposits - The Central banks | 3 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 8,228 | |
Deposits - The Central banks | 3 to 12 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 102 | |
Deposits - Credit institutions | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 77,230 | 84,877 |
Deposits - Credit institutions | On demand | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 26,523 | 39,213 |
Deposits - Credit institutions | 1 month | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 38,267 | 39,039 |
Deposits - Credit institutions | 3 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 1,621 | 1,589 |
Deposits - Credit institutions | 3 to 12 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 2,722 | 2,595 |
Deposits - Credit institutions | 1 to 3 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 5,845 | 150 |
Deposits - Credit institutions | 3 to 5 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 282 | 155 |
Deposits - Credit institutions | More than five years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 1,970 | 2,136 |
Deposits - Customers | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 819,067 | 784,735 |
Deposits - Customers | On demand | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 538,955 | 541,585 |
Deposits - Customers | 1 month | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 166,428 | 154,195 |
Deposits - Customers | 3 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 23,128 | 21,356 |
Deposits - Customers | 3 to 12 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 80,235 | 55,574 |
Deposits - Customers | 1 to 3 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 5,140 | 4,657 |
Deposits - Customers | 3 to 5 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 3,831 | 5,178 |
Deposits - Customers | More than five years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 1,350 | 2,190 |
Marketable debt securities | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 150,269 | 118,403 |
Marketable debt securities | 1 month | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 24,396 | 14,742 |
Marketable debt securities | 3 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 12,343 | 3,043 |
Marketable debt securities | 3 to 12 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 34,317 | 32,892 |
Marketable debt securities | 1 to 3 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 43,387 | 5,116 |
Marketable debt securities | 3 to 5 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 24,869 | 54,626 |
Marketable debt securities | More than five years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 10,957 | 7,984 |
Subordinated liabilities | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 63,821 | 78,264 |
Subordinated liabilities | 1 month | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 191 | 10,463 |
Subordinated liabilities | 3 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 382 | 417 |
Subordinated liabilities | 3 to 12 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 2,085 | 2,275 |
Subordinated liabilities | 1 to 3 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 4,586 | 5,007 |
Subordinated liabilities | 3 to 5 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 4,586 | 5,007 |
Subordinated liabilities | More than five years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 51,991 | 55,095 |
Other financial liabilities | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 19,473 | 17,238 |
Other financial liabilities | On demand | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 10,436 | |
Other financial liabilities | 1 month | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 14,741 | 3,689 |
Other financial liabilities | 3 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 2,507 | 995 |
Other financial liabilities | 3 to 12 months | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | 2,050 | 1,753 |
Other financial liabilities | 1 to 3 years | ||
Undiscounted contractual maturities | ||
Undiscounted financial liabilities at amortised cost | $ 175 | $ 365 |
Other disclosures - Foreign cur
Other disclosures - Foreign currency balances (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Foreign currency balances | |||
Assets. | $ 1,813,421 | $ 1,678,213 | $ 1,837,914 |
Liabilities | 1,649,967 | 1,514,625 | $ 1,684,080 |
Marketable debt securities | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 35,724 | 56,995 | |
Subordinated liabilities | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 39,389 | 51,654 | |
Financial derivatives liabilities | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 52,890 | 73,858 | |
Deposits - Credit institutions | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 30,933 | 33,467 | |
Deposits - Customers | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 94,975 | 92,987 | |
Other financial liabilities | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 2,543 | 1,057 | |
Other Liabilities | Foreign currency | |||
Foreign currency balances | |||
Liabilities | 5,060 | 3,184 | |
Cash and balances with the Central Bank | Foreign currency | |||
Foreign currency balances | |||
Assets. | 3,307 | 3,727 | |
Debt instruments | Foreign currency | |||
Foreign currency balances | |||
Assets. | 122,692 | 202,775 | |
Loans and advances - Credit institutions | Foreign currency | |||
Foreign currency balances | |||
Assets. | 55,696 | 28,594 | |
Loans and advances - Customers | Foreign currency | |||
Foreign currency balances | |||
Assets. | 81,477 | 78,504 | |
Other assets | Foreign currency | |||
Foreign currency balances | |||
Assets. | $ 159 | $ 387 |
Other disclosures - Financial a
Other disclosures - Financial assets measured at other than fair value (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Financial assets | ||||
Financial assets | $ 1,743,889 | $ 1,616,873 | ||
Loans and advances - Credit institutions | ||||
Financial assets | ||||
Financial assets | 143,052 | 94,978 | ||
Loans and advances - Customers | ||||
Financial assets | ||||
Financial assets | 817,869 | 751,053 | ||
Loans and advances - Customers | Gross carrying amount | ||||
Financial assets | ||||
Financial assets | 839,521 | 772,088 | ||
Loans and advances - Customers | Impairment losses | ||||
Financial assets | ||||
Financial assets | (21,652) | (21,035) | $ (25,551) | $ (21,970) |
Debt instruments | ||||
Financial assets | ||||
Financial assets | 466,396 | 513,568 | ||
Debt instruments | Impairment losses | ||||
Financial assets | ||||
Financial assets | (22) | (39) | ||
Financial assets at amortized cost category | Loans and advances - Credit institutions | ||||
Financial assets | ||||
Financial assets, fair value | 40,810 | 36,393 | ||
Financial assets | 40,400 | 36,492 | ||
Financial assets at amortized cost category | Loans and advances - Credit institutions | Level 2 | ||||
Financial assets | ||||
Financial assets, fair value | 17,971 | 16,551 | ||
Financial assets at amortized cost category | Loans and advances - Credit institutions | Level 3 | ||||
Financial assets | ||||
Financial assets, fair value | 22,839 | 19,842 | ||
Financial assets at amortized cost category | Loans and advances - Customers | ||||
Financial assets | ||||
Financial assets, fair value | 770,450 | 738,837 | ||
Financial assets | 797,716 | 736,997 | ||
Financial assets at amortized cost category | Loans and advances - Customers | Gross carrying amount | ||||
Financial assets | ||||
Financial assets | 819,368 | 758,025 | 712,983 | |
Financial assets at amortized cost category | Loans and advances - Customers | Impairment losses | ||||
Financial assets | ||||
Financial assets | (21,028) | $ (25,551) | ||
Financial assets at amortized cost category | Loans and advances - Customers | Level 2 | ||||
Financial assets | ||||
Financial assets, fair value | 320 | 191 | ||
Financial assets at amortized cost category | Loans and advances - Customers | Level 3 | ||||
Financial assets | ||||
Financial assets, fair value | 770,130 | 738,646 | ||
Financial assets at amortized cost category | Debt instruments | ||||
Financial assets | ||||
Financial assets, fair value | 22,258 | 11,619 | ||
Financial assets | 22,241 | 11,619 | ||
Financial assets at amortized cost category | Debt instruments | Gross carrying amount | ||||
Financial assets | ||||
Financial assets | 22,241 | |||
Financial assets at amortized cost category | Debt instruments | Level 1 | ||||
Financial assets | ||||
Financial assets, fair value | 12,248 | |||
Financial assets at amortized cost category | Debt instruments | Level 2 | ||||
Financial assets | ||||
Financial assets, fair value | $ 10,010 | $ 11,619 |
Other disclosures - Financial l
Other disclosures - Financial liabilities measured at other than fair value (Details) $ in Millions, $ in Millions | Dec. 31, 2022 MXN ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 MXN ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 MXN ($) | Dec. 31, 2020 USD ($) |
Financial liabilities | ||||||
Financial liabilities | $ 1,604,462 | $ 1,477,724 | ||||
Deposits - Customers | ||||||
Financial liabilities | ||||||
Financial liabilities | 928,298 | 891,964 | ||||
Marketable debt securities | ||||||
Financial liabilities | ||||||
Financial liabilities | 134,913 | 101,682 | ||||
Financial liabilities at amortized cost | Deposits Central Banks Repurchase Agreements [Member] | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 89,751 | 86,608 | ||||
Financial liabilities | 89,753 | 86,616 | ||||
Financial liabilities at amortized cost | Deposits - Credit institutions, Excludes repurchase agreements | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 64,517 | 78,229 | ||||
Financial liabilities | 65,354 | 78,182 | ||||
Financial liabilities at amortized cost | Deposits - Credit institutions Repurchase Agreements | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 9,003 | 5,156 | ||||
Financial liabilities | 9,003 | 5,157 | ||||
Financial liabilities at amortized cost | Customer deposits, Excludes repurchase agreements | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 780,486 | 759,021 | ||||
Financial liabilities | 781,607 | 760,325 | ||||
Financial liabilities at amortized cost | Customer deposits - Repurchase agreements | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 26,922 | 17,559 | ||||
Financial liabilities | 26,922 | 17,561 | ||||
Financial liabilities at amortized cost | Marketable debt securities | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 133,229 | 104,582 | ||||
Financial liabilities | 134,393 | 101,423 | $ 130,754 | |||
Financial liabilities at amortized cost | Subordinated liabilities | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 39,560 | 53,286 | ||||
Financial liabilities | 39,384 | $ 2,019 | 51,643 | $ 2,518 | $ 36,182 | $ 1,817 |
Financial liabilities at amortized cost | Other financial liabilities | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 19,466 | 17,200 | ||||
Financial liabilities | 19,473 | 17,238 | ||||
Level 1 | Financial liabilities at amortized cost | Marketable debt securities | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 133,229 | 104,582 | ||||
Level 1 | Financial liabilities at amortized cost | Subordinated liabilities | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 25,655 | 38,911 | ||||
Level 2 | Financial liabilities at amortized cost | Deposits Central Banks Repurchase Agreements [Member] | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 89,751 | 86,608 | ||||
Level 2 | Financial liabilities at amortized cost | Deposits - Credit institutions, Excludes repurchase agreements | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 24,633 | 26,892 | ||||
Level 2 | Financial liabilities at amortized cost | Deposits - Credit institutions Repurchase Agreements | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 9,003 | 5,156 | ||||
Level 2 | Financial liabilities at amortized cost | Customer deposits, Excludes repurchase agreements | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 62,041 | 52,566 | ||||
Level 2 | Financial liabilities at amortized cost | Customer deposits - Repurchase agreements | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 26,922 | 17,559 | ||||
Level 2 | Financial liabilities at amortized cost | Subordinated liabilities | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 13,905 | 14,375 | ||||
Level 2 | Financial liabilities at amortized cost | Other financial liabilities | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 10,891 | 9,841 | ||||
Level 3 | Financial liabilities at amortized cost | Deposits - Credit institutions, Excludes repurchase agreements | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 39,884 | 51,337 | ||||
Level 3 | Financial liabilities at amortized cost | Customer deposits, Excludes repurchase agreements | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | 718,445 | 706,455 | ||||
Level 3 | Financial liabilities at amortized cost | Other financial liabilities | ||||||
Financial liabilities | ||||||
Financial liabilities, fair value | $ 8,575 | $ 7,359 |
Other disclosures - Restriction
Other disclosures - Restrictions (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Other disclosures | ||
Legal reserve | $ 16,365 | $ 16,365 |
Legal reserve on individual basis | $ 13,971 | $ 12,710 |
Operating Segment (Details)
Operating Segment (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 MXN ($) segment | Dec. 31, 2021 MXN ($) | Dec. 31, 2020 MXN ($) | |
Operating segments | |||
Number of segments | segment | 3 | ||
Income statement and other significant data | |||
Net interest income | $ 75,112 | $ 63,432 | $ 65,810 |
Dividend income | 186 | 227 | 246 |
Income from entities accounted for using the equity method | 182 | 200 | 178 |
Net fee and commission income (expense) | 19,232 | 17,206 | 17,023 |
Gains/(losses) on financial assets and liabilities (net) | 1,024 | 4,883 | 5,984 |
Exchange differences (net) | (7) | (35) | 19 |
Other operating income (expenses) | (4,476) | (3,466) | (3,562) |
TOTAL INCOME | 91,253 | 82,447 | 85,698 |
Administrative expenses | (33,765) | (30,872) | (30,135) |
Depreciation and amortization | (6,686) | (6,243) | (5,743) |
Impairment losses on financial assets (net) | (16,083) | (19,229) | (21,799) |
Gains (losses) on modification of financial assets | (1,743) | ||
Impairment losses on other assets (net) | (27) | (119) | |
Provisions (net) | (2,521) | (386) | (974) |
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) | 4 | 57 | 6 |
Gains/(losses) on disposal of non-current assets not classified as discontinued operations | 70 | 20 | 9 |
OPERATING PROFIT BEFORE TAX | 32,272 | 25,767 | 25,200 |
Tax income | (8,164) | (4,966) | (6,226) |
PROFIT FOR THE YEAR | 24,108 | 20,801 | 18,974 |
Profit attributable to the Parent | 24,108 | 20,801 | 18,974 |
Total assets | 1,813,421 | 1,678,213 | 1,837,914 |
Total liabilities | 1,649,967 | 1,514,625 | 1,684,080 |
Financial assets at amortized cost category | |||
Income statement and other significant data | |||
Impairment losses on financial assets (net) | (16,100) | (19,229) | (21,731) |
Financial assets at fair value through other comprehensive income category | |||
Income statement and other significant data | |||
Dividend income | 173 | 199 | 206 |
Impairment losses on financial assets (net) | 17 | (68) | |
Retail Banking | |||
Income statement and other significant data | |||
Net interest income | 65,477 | 58,045 | 61,444 |
Net fee and commission income (expense) | 17,639 | 15,729 | 15,551 |
Gains/(losses) on financial assets and liabilities (net) | 1,255 | 1,493 | 1,421 |
Other operating income (expenses) | (2,785) | (2,967) | (2,695) |
TOTAL INCOME | 81,586 | 72,300 | 75,721 |
Administrative expenses | (29,151) | (26,525) | (25,649) |
Depreciation and amortization | (6,293) | (5,849) | (5,339) |
Impairment losses on financial assets (net) | (17,323) | (18,115) | (20,772) |
Gains (losses) on modification of financial assets | (1,743) | ||
Impairment losses on other assets (net) | (27) | (119) | |
Provisions (net) | (230) | 200 | (143) |
OPERATING PROFIT BEFORE TAX | 28,589 | 21,984 | 21,956 |
Total assets | 754,548 | 685,590 | 654,572 |
Total liabilities | 748,904 | 726,626 | 676,529 |
Global Corporate Banking | |||
Income statement and other significant data | |||
Net interest income | 9,216 | ||
Dividend income | 13 | ||
Net fee and commission income (expense) | 1,615 | ||
Gains/(losses) on financial assets and liabilities (net) | (138) | ||
Exchange differences (net) | (7) | ||
Other operating income (expenses) | (557) | ||
TOTAL INCOME | 10,142 | ||
Administrative expenses | (3,846) | ||
Depreciation and amortization | (372) | ||
Impairment losses on financial assets (net) | 1,240 | ||
Provisions (net) | (33) | ||
OPERATING PROFIT BEFORE TAX | 7,131 | ||
Total assets | 656,392 | ||
Total liabilities | 707,728 | ||
Corporate and Investment Banking | |||
Income statement and other significant data | |||
Net interest income | 4,295 | 5,605 | |
Dividend income | 29 | 39 | |
Net fee and commission income (expense) | 1,594 | 1,668 | |
Gains/(losses) on financial assets and liabilities (net) | 3,228 | 3,888 | |
Other operating income (expenses) | (508) | (714) | |
TOTAL INCOME | 8,638 | 10,486 | |
Administrative expenses | (3,810) | (3,830) | |
Depreciation and amortization | (364) | (376) | |
Impairment losses on financial assets (net) | (1,114) | (1,027) | |
Provisions (net) | (10) | ||
OPERATING PROFIT BEFORE TAX | 3,350 | 5,243 | |
Total assets | 525,722 | 760,895 | |
Total liabilities | 604,758 | 783,942 | |
Corporate Activities | |||
Income statement and other significant data | |||
Net interest income | 419 | 1,092 | (1,239) |
Dividend income | 173 | 198 | 207 |
Income from entities accounted for using the equity method | 182 | 200 | 178 |
Net fee and commission income (expense) | (22) | (117) | (196) |
Gains/(losses) on financial assets and liabilities (net) | (93) | 162 | 675 |
Exchange differences (net) | (35) | 19 | |
Other operating income (expenses) | (1,134) | 9 | (153) |
TOTAL INCOME | (475) | 1,509 | (509) |
Administrative expenses | (768) | (537) | (656) |
Depreciation and amortization | (21) | (30) | (28) |
Provisions (net) | (2,258) | (586) | (821) |
Gains/(losses) on disposal of assets not classified as non-current assets held for sale (net) | 4 | 57 | 6 |
Gains/(losses) on disposal of non-current assets not classified as discontinued operations | 70 | 20 | 9 |
OPERATING PROFIT BEFORE TAX | (3,448) | 433 | (1,999) |
Total assets | 402,481 | 466,901 | 422,447 |
Total liabilities | $ 193,335 | $ 183,241 | $ 223,609 |
Related-party transactions - As
Related-party transactions - Assets (Details) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Banco Santander, S.A. (Spain) | ||
Related-party transactions | ||
Other assets | $ 8 | |
Banco Santander, S.A. (Spain) | Trading derivative assets | ||
Related-party transactions | ||
Financial assets at fair value through profit or loss | $ 99,291 | 79,660 |
Banco Santander, S.A. (Spain) | Loans and advances - Credit institutions | ||
Related-party transactions | ||
Financial assets at amortised cost | 5,845 | 5,147 |
Banco Santander (Chile) | Trading derivative assets | ||
Related-party transactions | ||
Financial assets at fair value through profit or loss | 372 | 654 |
Casa de Bolsa Santander, S.A. de C.V. | Loans and advances - Customers | ||
Related-party transactions | ||
Financial assets at fair value through profit or loss | 508 | |
Banco Santander (Brasil), S. A | Loans and advances - Credit institutions | ||
Related-party transactions | ||
Financial assets at amortised cost | 907 | |
Santander Global Facilities, S.A. de C.V. | ||
Related-party transactions | ||
Other intangible assets | 112 | 36 |
Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informaticos Generales, S.L | ||
Related-party transactions | ||
Other intangible assets | 143 | 469 |
Other assets | 268 | |
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 | 908 | |
Santander Capital Structuring S.A. de C.V. | Loans and advances - Customers | ||
Related-party transactions | ||
Financial assets at amortised cost | 224 | |
Santander Back-Offices Globales Mayoristas, S.A. | ||
Related-party transactions | ||
Other intangible assets | 9 | 4 |
SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversion | ||
Related-party transactions | ||
Other assets | 190 | 184 |
SMPS Merchant Platform Solutions Mexico S.A de C.V | ||
Related-party transactions | ||
Other assets | 15 | 42 |
SMPS Merchant Platform Solutions Mexico S.A de C.V | Loans and advances - Customers | ||
Related-party transactions | ||
Financial assets at amortised cost | 84 | |
Zurich Santander Seguros Mexico, S.A. | ||
Related-party transactions | ||
Other assets | 1,239 | 1,177 |
Other related parties | ||
Related-party transactions | ||
Other intangible assets | 10 | 8 |
Other assets | 19 | 30 |
Bank's directors and senior managers | Loans and advances - Customers | ||
Related-party transactions | ||
Financial assets at amortised cost | $ 4,351 | $ 4,178 |
Related-party transactions - Li
Related-party transactions - Liabilities (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Banco Santander, S.A. (Spain) | Trading derivative liabilities | ||
Related-party transactions | ||
Financial liabilities at fair value through profit or loss | $ 83,133 | $ 64,582 |
Banco Santander, S.A. (Spain) | Deposits - Credit institutions | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 16,896 | 15,535 |
Banco Santander, S.A. (Spain) | Subordinated liabilities | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 32,960 | 43,693 |
Banco Santander, S.A. (Spain) | Marketable debt securities | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 1,011 | |
Banco Santander, S.A. (Spain) | Other financial liabilities | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 1,642 | 1,924 |
Casa de Bolsa Santander, S.A. de C.V. | Customer deposits - Repurchase agreements | ||
Related-party transactions | ||
Financial liabilities at fair value through profit or loss | 3,214 | 2,773 |
Banco S3 Mexico, SA, Institucion de Banca Multiple | Deposits - Credit institutions | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 6 | 7 |
Banco Santander (Brasil), S. A | ||
Related-party transactions | ||
Other liabilities | 69 | 77 |
Banco Santander (Brasil), S. A | Deposits - Credit institutions | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 82 | |
SMPS Merchant Platform Solutions Mexico S.A de C.V | Deposits - Customers | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 887 | |
Operadora de Carteras Gamma, S.A.P.I. de C.V. | Deposits - Customers | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 174 | 148 |
Mercadotecnia, Ideas y Tecnologa, S.A de C.V. | Deposits - Customers | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 92 | |
Santander Global Facilities, S.A. de C.V. | ||
Related-party transactions | ||
Other liabilities | 368 | 18 |
Santander Global Facilities, S.A. de C.V. | Deposits - Customers | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 1,819 | 1,780 |
Santander Global Facilities, S.A. de C.V. | Other financial liabilities | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 335 | |
Servicios de Cobranza, Recuperacion y Seguimiento, S.A. de C.V. | Deposits - Customers | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 193 | 110 |
Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informaticos Generales, S.L | ||
Related-party transactions | ||
Other liabilities | 1,130 | 972 |
Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informaticos Generales, S.L | Deposits - Customers | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 112 | 517 |
Santander Capital Structuring S.A. de C.V. | Deposits - Customers | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 223 | 238 |
Decarome, S.A.P.I. de C.V | Deposits - Customers | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 57 | 70 |
Gesban Mexico Servicios Administrativos Globales, S.A. de C.V. | Deposits - Customers | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 47 | 56 |
Santander Back-Offices Globales Mayoristas, S.A. | ||
Related-party transactions | ||
Other liabilities | 80 | 35 |
Other related parties | ||
Related-party transactions | ||
Other liabilities | 114 | 50 |
Other related parties | Deposits - Customers | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 2,630 | 5,383 |
Other related parties | Customer deposits - Repurchase agreements | ||
Related-party transactions | ||
Financial liabilities at fair value through profit or loss | 4 | |
Other related parties | Marketable debt securities | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 25 | 27 |
Other related parties | Other financial liabilities | ||
Related-party transactions | ||
Financial liabilities at amortised cost | 6 | 13 |
Bank's directors and senior managers | Deposits - Customers | ||
Related-party transactions | ||
Financial liabilities at amortised cost | $ 2,267 | $ 5,093 |
Related-party transactions - In
Related-party transactions - Income Statement (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Banco Santander, S.A. (Spain) | |||
Related-party transactions | |||
Interest income | $ 2 | $ 2 | $ 1 |
Interest expenses and similar charges | 1,516 | 1,230 | 1,310 |
Fee and commission income | 8 | ||
Fee and commission expense | 2 | 2 | 2 |
Gains/(losses) on financial assets and liabilities (net) | 8,610 | 18,441 | (24,086) |
Administrative expenses | 476 | 524 | 464 |
Santander Global Technology, S.L., Sociedad Unipersonal (formerly Produban Servicios Informaticos Generales, S.L | |||
Related-party transactions | |||
Interest income | 84 | ||
Other operating income | 78 | 71 | 79 |
Administrative expenses | 3,307 | 3,328 | 2,875 |
Santander Global Technology, S.L | |||
Related-party transactions | |||
Interest income | 19 | ||
Interest expenses and similar charges | 3 | ||
Administrative expenses | 31 | 23 | |
Casa de Bolsa Santander, S.A. de C.V. | |||
Related-party transactions | |||
Interest income | 22 | 21 | 41 |
Interest expenses and similar charges | 212 | 146 | 304 |
Fee and commission income | 180 | 142 | 55 |
Fee and commission expense | 57 | 43 | 34 |
Other operating income | 56 | 55 | |
Banco Santander International S.A | |||
Related-party transactions | |||
Interest expenses and similar charges | 26 | ||
Zurich Santander Seguros Mexico, S.A. | |||
Related-party transactions | |||
Fee and commission income | 4,612 | 4,284 | 4,031 |
SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversion | |||
Related-party transactions | |||
Fee and commission income | 1,895 | 1,742 | 1,608 |
Fee and commission expense | 21 | 18 | 17 |
Banco S3 Mexico, SA, Institucion de Banca Multiple | |||
Related-party transactions | |||
Interest expenses and similar charges | 25 | 21 | 41 |
Fee and commission income | 18 | 24 | |
Other operating income | 17 | 13 | |
Servicios de Cobranza, Recuperacion y Seguimiento, S.A. de C.V. | |||
Related-party transactions | |||
Fee and commission expense | 110 | ||
Santander Global Facilities, S.A. de C.V. | |||
Related-party transactions | |||
Interest expenses and similar charges | 113 | 70 | 52 |
Fee and commission expense | 55 | 135 | |
Other operating income | 7 | 20 | |
Administrative expenses | 369 | 470 | 446 |
SMPS Merchant Platform Solutions Mexico S.A de C.V | |||
Related-party transactions | |||
Other operating income | 105 | 42 | |
Banco Santander (Chile) | |||
Related-party transactions | |||
Gains/(losses) on financial assets and liabilities (net) | (274) | 494 | (26) |
Operadora de Carteras Gamma, S.A.P.I. de C.V. | |||
Related-party transactions | |||
Interest expenses and similar charges | 10 | 3 | |
Banco Santander International | |||
Related-party transactions | |||
Gains/(losses) on financial assets and liabilities (net) | (2) | (4) | |
Santander Digital Assets, S.L. | |||
Related-party transactions | |||
Other operating income | 22 | ||
Gesban Mexico Servicios Administrativos Globales, S.A. de C.V. | |||
Related-party transactions | |||
Administrative expenses | 54 | 58 | 55 |
Santander Back-Offices Globales Mayoristas, S.A. | |||
Related-party transactions | |||
Administrative expenses | 109 | 101 | 71 |
Santander Global Technology Chile Limitada | |||
Related-party transactions | |||
Administrative expenses | 5 | ||
Santander Capital Structuring S.A. de C.V. | |||
Related-party transactions | |||
Interest income | 58 | 123 | 176 |
Interest expenses and similar charges | 6 | ||
Aquanima Mexico, S. de R.L. de C.V. | |||
Related-party transactions | |||
Administrative expenses | 77 | 72 | 74 |
Other related parties | |||
Related-party transactions | |||
Interest income | 10 | 2 | |
Interest expenses and similar charges | 54 | 10 | 30 |
Fee and commission income | 10 | 1 | 25 |
Fee and commission expense | 7 | 1 | |
Gains/(losses) on financial assets and liabilities (net) | (20) | ||
Other operating income | 12 | 7 | 37 |
Administrative expenses | $ 87 | $ 14 | $ 143 |
Risk management - Principles an
Risk management - Principles and credit risk metrics (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 MXN ($) item individual | Dec. 31, 2021 MXN ($) | Dec. 31, 2020 MXN ($) | |
Concentration of risk | |||
Risk management, number of lines of defense | item | 3 | ||
Number of senior executives providing additional support on IBOR steering group | individual | 8 | ||
Increase of loans and advances to customers (as a percent) | 0.90% | ||
Amount of non-performing loans | $ 21,203 | ||
Decrease of non-performing loans (as a percent) | 6% | ||
Non-performing loans ratio (as a percent) | 2.50% | ||
Amount of allowance for loan losses | $ 21,652 | ||
Increase (decrease) of allowance for loan losses (as a percent) | 3% | ||
Impairment losses on financial assets | $ 16,083 | $ 19,229 | $ 21,799 |
Increase (decrease) of impairment loss on financial assets ( as a percent) | 16.37% |
Risk management - Credit risk -
Risk management - Credit risk - Main aggregates (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loans and advances - Customers | |||
Disclosure of credit risk exposure [line items] | |||
Percentage of non-performing loans (as a percent) | 2.70% | 3% | 3.10% |
Commercial, financial and industrial loans | |||
Disclosure of credit risk exposure [line items] | |||
Percentage of non-performing loans (as a percent) | 1.40% | 2.80% | 1.90% |
Securitized mortgage assets | |||
Disclosure of credit risk exposure [line items] | |||
Percentage of non-performing loans (as a percent) | 5.80% | 4.90% | 5.50% |
Loans to customers | |||
Disclosure of credit risk exposure [line items] | |||
Percentage of non-performing loans (as a percent) | 2.50% | 2.40% | 4.80% |
Installment loans to individuals - Revolving consumer credit cards loans | |||
Disclosure of credit risk exposure [line items] | |||
Percentage of non-performing loans (as a percent) | 1.80% | 2.50% | 4.70% |
Installment loans to individuals - Non-revolving consumer loans | |||
Disclosure of credit risk exposure [line items] | |||
Percentage of non-performing loans (as a percent) | 3.10% | 2.40% | 4.80% |
Loans to customers (not impaired) | Loans and advances - Customers | |||
Disclosure of credit risk exposure [line items] | |||
Loan amount | $ 798,165 | $ 762,088 | $ 712,983 |
Loans to customers (not impaired) | Public sector loans | |||
Disclosure of credit risk exposure [line items] | |||
Loan amount | 52,094 | 85,256 | 73,016 |
Loans to customers (not impaired) | Commercial, financial and industrial loans | |||
Disclosure of credit risk exposure [line items] | |||
Loan amount | 393,612 | 354,554 | 346,075 |
Loans to customers (not impaired) | Securitized mortgage assets | |||
Disclosure of credit risk exposure [line items] | |||
Loan amount | 205,242 | 199,579 | 177,665 |
Loans to customers (not impaired) | Loans to customers | |||
Disclosure of credit risk exposure [line items] | |||
Loan amount | 147,217 | 122,699 | 116,227 |
Loans to customers (not impaired) | Installment loans to individuals - Revolving consumer credit cards loans | |||
Disclosure of credit risk exposure [line items] | |||
Loan amount | 63,782 | 53,417 | 53,809 |
Loans to customers (not impaired) | Installment loans to individuals - Non-revolving consumer loans | |||
Disclosure of credit risk exposure [line items] | |||
Loan amount | 83,435 | 69,282 | 62,418 |
Loans to customers (non-performing) | Loans and advances - Customers | |||
Disclosure of credit risk exposure [line items] | |||
Loan amount | 21,203 | 22,653 | 21,909 |
Loans to customers (non-performing) | Commercial, financial and industrial loans | |||
Disclosure of credit risk exposure [line items] | |||
Loan amount | 5,587 | 9,937 | 6,530 |
Loans to customers (non-performing) | Securitized mortgage assets | |||
Disclosure of credit risk exposure [line items] | |||
Loan amount | 11,867 | 9,725 | 9,847 |
Loans to customers (non-performing) | Loans to customers | |||
Disclosure of credit risk exposure [line items] | |||
Loan amount | 3,749 | 2,991 | 5,532 |
Loans to customers (non-performing) | Installment loans to individuals - Revolving consumer credit cards loans | |||
Disclosure of credit risk exposure [line items] | |||
Loan amount | 1,175 | 1,328 | 2,543 |
Loans to customers (non-performing) | Installment loans to individuals - Non-revolving consumer loans | |||
Disclosure of credit risk exposure [line items] | |||
Loan amount | $ 2,574 | $ 1,663 | $ 2,989 |
Risk management - Credit risk_2
Risk management - Credit risk - Other credit risk aspects and management (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 MXN ($) customer | Dec. 31, 2021 MXN ($) customer | Dec. 31, 2020 MXN ($) | |
Concentration of risk | |||
Financing granted in excess of Basic Capital threshold | $ 0 | $ 0 | |
Percentage of customer loans that are secured | 48% | ||
Mortgages to individuals as a percentage of net customer loans | 24% | ||
Percentage of sovereign risk exposure concentrated in short-term and medium-term maturities | 46% | ||
Decrease of non-performing loans ratio (as a percent) | 0.02% | ||
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% | 40% | |
Credit risk | Three main debtors or groups of individuals | |||
Concentration of risk | |||
Number of debtors | customer | 3 | 3 | |
Concentration of credit risk | $ 46,826 | $ 44,816 | |
Concentration risk, percentage of Basic Capital | 40.80% | 31.56% | |
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 | $ 66,520 | ||
Credit risk | Debtors granted loan one | Minimum | |||
Concentration of risk | |||
Concentration risk, percentage of Basic Capital | 10% | ||
Credit risk | Debtors granted loan two | |||
Concentration of risk | |||
Concentration of credit risk | $ 25,103 | ||
Credit risk | Debtors granted loan two | Minimum | |||
Concentration of risk | |||
Concentration risk, percentage of Basic Capital | 10% |
Risk management - Trading marke
Risk management - Trading market risk (Details) - item | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Methodologies | |||
Confidence level, percent | 99% | ||
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% | 99% | 99% |
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 | 1 | 1 | 2 |
Number of VaE breaks | 1 | 4 | 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) - MXN ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Main market risk metric | ||||||||||
Total VaR | $ 41 | $ 41 | ||||||||
VaR percentage | 99% | |||||||||
Minimum | ||||||||||
Main market risk metric | ||||||||||
Total VaR | 25 | $ 25 | ||||||||
Weighted average | ||||||||||
Main market risk metric | ||||||||||
Total VaR | 41 | 41 | ||||||||
Maximum | ||||||||||
Main market risk metric | ||||||||||
Total VaR | 103 | 103 | ||||||||
Trading market risk | ||||||||||
Main market risk metric | ||||||||||
Average daily Total VaR | 38 | $ 43 | $ 46 | $ 54 | $ 150 | $ 181 | 41 | $ 50 | $ 165 | $ 66 |
Total VaR | 41 | 41 | 74 | 41 | 41 | 74 | ||||
Risk assumption profile, limit | $ 208 | $ 239 | $ 277 | |||||||
VaR percentage | 99% | 99% | 99% | |||||||
Trading market risk | Minimum | ||||||||||
Main market risk metric | ||||||||||
Total VaR | 25 | 26 | 24 | 70 | 55 | $ 25 | $ 24 | $ 70 | ||
Trading market risk | Weighted average | ||||||||||
Main market risk metric | ||||||||||
Increase (decrease) in Total VaR | (9) | (115) | 99 | |||||||
Trading market risk | Maximum | ||||||||||
Main market risk metric | ||||||||||
Total VaR | $ 57 | $ 103 | $ 85 | $ 207 | $ 378 | 57 | 85 | 207 | ||
Interest rate risk | ||||||||||
Main market risk metric | ||||||||||
Average daily Total VaR | 38 | 51 | 86 | |||||||
Interest rate risk | Weighted average | ||||||||||
Main market risk metric | ||||||||||
Average daily Total VaR | 43 | |||||||||
Currency risk | ||||||||||
Main market risk metric | ||||||||||
Average daily Total VaR | 15 | 14 | 127 | 41 | ||||||
Equity price risk | ||||||||||
Main market risk metric | ||||||||||
Average daily Total VaR | $ 1 | $ 2 | $ 5 | $ 3 |
Risk management - Calibration a
Risk management - Calibration and test measures (Details) | 12 Months Ended |
Dec. 31, 2022 item | |
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, 2022 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
LCR (as a percent) | 196.60% |
Value at risk, Confidence level | 99% |
Time frame from reference date | 2 years |
Minimum | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
LCR (as a percent) | 100% |
NSFR (as a percent) | 100% |
Time frame from reference date | 520 days |
Risk management - Structural In
Risk management - Structural Interest Rate Risk (Details) - MXN ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Structural interest rate risk | ||||
Total Balance Sheet Assets | $ 1,743,889 | $ 1,616,873 | ||
Liabilities | (1,604,462) | (1,477,724) | ||
Equity | (163,454) | (163,588) | $ (153,834) | $ (134,798) |
Total Balance Sheet Liabilities | (1,813,421) | (1,678,213) | ||
1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 236,181 | 230,889 | ||
Liabilities | (531,990) | (474,565) | ||
3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 202,217 | 165,300 | ||
Liabilities | (49,366) | (38,305) | ||
1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 427,600 | 367,807 | ||
Liabilities | (114,236) | (56,435) | ||
3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 268,859 | 246,976 | ||
Liabilities | (78,799) | (90,936) | ||
More than five years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 302,319 | 318,576 | ||
Liabilities | (124,829) | (123,365) | ||
Total Shareholders' Equity Attributable to the Parent | ||||
Structural interest rate risk | ||||
Equity | (163,392) | (163,540) | (153,797) | $ (134,758) |
Interest rate risk | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 4,741,289 | 4,285,737 | 4,117,438 | |
Total Balance Sheet Liabilities | (4,280,885) | (3,962,089) | (3,941,783) | |
Total Balance Sheet Gap | 460,404 | 323,648 | 175,655 | |
Total Off-Balance Sheet Gap | 111,813 | 16,348 | (27,858) | |
Interest rate risk | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 525,585 | 543,438 | 581,847 | |
Total Balance Sheet Liabilities | (484,083) | (498,896) | (746,516) | |
Total Balance Sheet Gap | 41,502 | 44,542 | (164,669) | |
Total Off-Balance Sheet Gap | 134,000 | 85,733 | 96,078 | |
Total Structural Gap | 175,502 | 130,275 | (68,591) | |
Accumulated Gap | 175,502 | 130,275 | (68,591) | |
Interest rate risk | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 137,151 | 100,938 | 62,060 | |
Total Balance Sheet Liabilities | (36,610) | (28,059) | (42,023) | |
Total Balance Sheet Gap | 100,541 | 72,879 | 20,037 | |
Total Off-Balance Sheet Gap | 1,336 | (353) | (518) | |
Total Structural Gap | 101,877 | 72,526 | 19,519 | |
Accumulated Gap | 277,379 | 202,801 | (49,072) | |
Interest rate risk | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 60,603 | 56,280 | 48,041 | |
Total Balance Sheet Liabilities | (41,185) | (14,572) | (15,857) | |
Total Balance Sheet Gap | 19,418 | 41,708 | 32,184 | |
Total Off-Balance Sheet Gap | 2,524 | (7,870) | (7,124) | |
Total Structural Gap | 21,942 | 33,838 | 25,060 | |
Accumulated Gap | 299,321 | 236,639 | (24,012) | |
Interest rate risk | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 89,100 | 61,997 | 53,026 | |
Total Balance Sheet Liabilities | (136,138) | (130,987) | (44,250) | |
Total Balance Sheet Gap | (47,038) | (68,990) | 8,776 | |
Total Off-Balance Sheet Gap | 9,324 | 5,373 | (1,257) | |
Total Structural Gap | (37,714) | (63,617) | 7,519 | |
Accumulated Gap | 261,607 | 173,022 | (16,493) | |
Interest rate risk | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 321,935 | 286,758 | 231,683 | |
Total Balance Sheet Liabilities | (248,785) | (189,470) | (105,925) | |
Total Balance Sheet Gap | 73,150 | 97,288 | 125,758 | |
Total Off-Balance Sheet Gap | (2,520) | 936 | (16,773) | |
Total Structural Gap | 70,630 | 98,224 | 108,985 | |
Accumulated Gap | 332,237 | 271,246 | 92,492 | |
Interest rate risk | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 252,091 | 209,706 | 110,289 | |
Total Balance Sheet Liabilities | (24,593) | (62,168) | (39,636) | |
Total Balance Sheet Gap | 227,498 | 147,538 | 70,653 | |
Total Off-Balance Sheet Gap | (117,351) | (52,397) | (20,744) | |
Total Structural Gap | 110,147 | 95,141 | 49,909 | |
Accumulated Gap | 442,384 | 366,387 | 142,401 | |
Interest rate risk | More than five years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 211,687 | 246,813 | 252,655 | |
Total Balance Sheet Liabilities | (212,981) | (174,408) | (67,300) | |
Total Balance Sheet Gap | (1,294) | 72,405 | 185,355 | |
Total Off-Balance Sheet Gap | (11,824) | (15,036) | (77,053) | |
Total Structural Gap | (13,118) | 57,369 | 108,302 | |
Accumulated Gap | 429,266 | 423,756 | 250,703 | |
Interest rate risk | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 3,143,137 | 2,779,807 | 2,777,837 | |
Total Balance Sheet Liabilities | (3,096,510) | (2,863,529) | (2,880,277) | |
Total Balance Sheet Gap | 46,627 | (83,722) | (102,440) | |
Total Off-Balance Sheet Gap | 96,324 | (38) | (466) | |
Total Structural Gap | 142,951 | (83,760) | (102,906) | |
Accumulated Gap | 572,217 | 339,996 | 147,797 | |
Interest rate risk | Total Shareholders' Equity Attributable to the Parent | ||||
Structural interest rate risk | ||||
Equity | (166,838) | (165,539) | (158,338) | |
Interest rate risk | Total Shareholders' Equity Attributable to the Parent | Not Sensitive | ||||
Structural interest rate risk | ||||
Equity | (166,838) | (165,539) | (158,338) | |
Interest rate risk | Money Market | ||||
Structural interest rate risk | ||||
Liabilities | (232,148) | (237,962) | (415,269) | |
Interest rate risk | Money Market | 1 month | ||||
Structural interest rate risk | ||||
Liabilities | (126,156) | (136,942) | (136,167) | |
Interest rate risk | Money Market | 3 months | ||||
Structural interest rate risk | ||||
Liabilities | (70) | (203) | (25) | |
Interest rate risk | Money Market | 6 months | ||||
Structural interest rate risk | ||||
Liabilities | (33) | (119) | ||
Interest rate risk | Money Market | 6 - 12 months | ||||
Structural interest rate risk | ||||
Liabilities | (52) | (37) | ||
Interest rate risk | Money Market | 1 to 3 years | ||||
Structural interest rate risk | ||||
Liabilities | (18) | (6) | (35) | |
Interest rate risk | Money Market | Not Sensitive | ||||
Structural interest rate risk | ||||
Liabilities | (105,819) | (100,655) | (279,042) | |
Interest rate risk | Deposits | ||||
Structural interest rate risk | ||||
Liabilities | (852,714) | (773,147) | (712,440) | |
Interest rate risk | Deposits | 1 month | ||||
Structural interest rate risk | ||||
Liabilities | (282,371) | (316,556) | (538,576) | |
Interest rate risk | Deposits | 3 months | ||||
Structural interest rate risk | ||||
Liabilities | (30,164) | (25,179) | (28,189) | |
Interest rate risk | Deposits | 6 months | ||||
Structural interest rate risk | ||||
Liabilities | (30,052) | (8,115) | (7,546) | |
Interest rate risk | Deposits | 6 - 12 months | ||||
Structural interest rate risk | ||||
Liabilities | (103,999) | (104,567) | (38,605) | |
Interest rate risk | Deposits | 1 to 3 years | ||||
Structural interest rate risk | ||||
Liabilities | (203,423) | (152,067) | (40,318) | |
Interest rate risk | Deposits | More than five years | ||||
Structural interest rate risk | ||||
Liabilities | (202,705) | (166,663) | (59,206) | |
Interest rate risk | Long-Term Funding | ||||
Structural interest rate risk | ||||
Liabilities | (234,697) | (207,558) | (234,391) | |
Interest rate risk | Long-Term Funding | 1 month | ||||
Structural interest rate risk | ||||
Liabilities | (75,556) | (45,398) | (71,773) | |
Interest rate risk | Long-Term Funding | 3 months | ||||
Structural interest rate risk | ||||
Liabilities | (6,376) | (2,677) | (13,809) | |
Interest rate risk | Long-Term Funding | 6 months | ||||
Structural interest rate risk | ||||
Liabilities | (11,100) | (6,338) | (8,311) | |
Interest rate risk | Long-Term Funding | 6 - 12 months | ||||
Structural interest rate risk | ||||
Liabilities | (32,087) | (26,383) | (5,645) | |
Interest rate risk | Long-Term Funding | 1 to 3 years | ||||
Structural interest rate risk | ||||
Liabilities | (45,344) | (37,397) | (65,572) | |
Interest rate risk | Long-Term Funding | 3 to 5 years | ||||
Structural interest rate risk | ||||
Liabilities | (24,593) | (62,168) | (39,636) | |
Interest rate risk | Long-Term Funding | More than five years | ||||
Structural interest rate risk | ||||
Liabilities | (10,276) | (7,745) | (8,094) | |
Interest rate risk | Long-Term Funding | Not Sensitive | ||||
Structural interest rate risk | ||||
Liabilities | (29,365) | (19,452) | (21,552) | |
Interest rate risk | Other Liabilities | ||||
Structural interest rate risk | ||||
Liabilities | (2,794,488) | (2,577,883) | (2,421,345) | |
Interest rate risk | Other Liabilities | Not Sensitive | ||||
Structural interest rate risk | ||||
Liabilities | (2,794,488) | (2,577,883) | (2,421,345) | |
Interest rate risk | Money Market | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 130,928 | 107,529 | 208,892 | |
Interest rate risk | Money Market | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 47,853 | 40,153 | 97,682 | |
Interest rate risk | Money Market | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 36 | 224 | ||
Interest rate risk | Money Market | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 10 | |||
Interest rate risk | Money Market | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 83,075 | 67,340 | 110,976 | |
Interest rate risk | Loans and advances | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 1,156,551 | 1,011,713 | 842,579 | |
Interest rate risk | Loans and advances | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 457,396 | 415,520 | 391,465 | |
Interest rate risk | Loans and advances | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 62,232 | 56,759 | 51,416 | |
Interest rate risk | Loans and advances | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 47,152 | 41,235 | 29,398 | |
Interest rate risk | Loans and advances | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 72,844 | 52,466 | 40,954 | |
Interest rate risk | Loans and advances | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 191,785 | 147,987 | 110,704 | |
Interest rate risk | Loans and advances | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 105,972 | 82,115 | 59,480 | |
Interest rate risk | Loans and advances | More than five years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 185,834 | 203,678 | 158,690 | |
Interest rate risk | Loans and advances | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 33,336 | 11,953 | 473 | |
Interest rate risk | Intragroup | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 4,287 | 4,368 | 2,324 | |
Interest rate risk | Intragroup | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 4,287 | 4,368 | 2,324 | |
Interest rate risk | Securities | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 606,595 | 592,439 | 612,958 | |
Interest rate risk | Securities | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 20,336 | 87,765 | 92,700 | |
Interest rate risk | Securities | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 74,919 | 44,143 | 10,420 | |
Interest rate risk | Securities | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 13,451 | 15,045 | 18,633 | |
Interest rate risk | Securities | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 16,256 | 9,531 | 12,072 | |
Interest rate risk | Securities | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 130,150 | 138,771 | 120,979 | |
Interest rate risk | Securities | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 146,119 | 127,591 | 50,809 | |
Interest rate risk | Securities | More than five years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 25,853 | 43,135 | 93,965 | |
Interest rate risk | Securities | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 179,511 | 126,458 | 213,379 | |
Interest rate risk | Permanent | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 12,794 | 18,931 | 17,838 | |
Interest rate risk | Permanent | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 12,794 | 18,931 | 17,838 | |
Interest rate risk | Other assets | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 2,830,134 | 2,550,757 | 2,432,847 | |
Interest rate risk | Other assets | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | $ 2,830,134 | $ 2,550,757 | $ 2,432,847 | |
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 | $ 500 | $ 350 | $ 1,000 | |
Market value of equity | ||||
Structural interest rate risk | ||||
Increase (decrease) in risk consumption due to reasonably possible increase in risk assumption | $ 2,500 | $ 3,000 | $ 3,700 |
Risk management - Liquidity Ris
Risk management - Liquidity Risk (Details) | 12 Months Ended |
Dec. 31, 2022 item | |
Risk management | |
LCR (as a percent) | 196.60% |
Period over which entity would meet liquidity requirements under the worst case scenario | 45 days |
Minimum | |
Risk management | |
LCR (as a percent) | 100% |
NSFR (as a percent) | 100% |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Structural interest rate risk | ||||
Total Balance Sheet Assets | $ 1,743,889 | $ 1,616,873 | ||
Liabilities | (1,604,462) | (1,477,724) | ||
Equity | (163,454) | (163,588) | $ (153,834) | $ (134,798) |
Total Balance Sheet Liabilities | (1,813,421) | (1,678,213) | ||
1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 236,181 | 230,889 | ||
Liabilities | (531,990) | (474,565) | ||
3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 202,217 | 165,300 | ||
Liabilities | (49,366) | (38,305) | ||
1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 427,600 | 367,807 | ||
Liabilities | (114,236) | (56,435) | ||
3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 268,859 | 246,976 | ||
Liabilities | (78,799) | (90,936) | ||
More than five years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 302,319 | 318,576 | ||
Liabilities | (124,829) | (123,365) | ||
Total Shareholders' Equity Attributable to the Parent | ||||
Structural interest rate risk | ||||
Equity | (163,392) | (163,540) | (153,797) | $ (134,758) |
Liquidity risk | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 4,744,773 | 4,287,610 | 4,189,238 | |
Total Balance Sheet Liabilities | (4,284,381) | (3,962,053) | (3,999,973) | |
Total Balance Sheet Gap | 460,392 | 325,557 | 189,265 | |
Total Off-Balance Sheet Gap | 104,840 | (5,852) | (3,137) | |
Liquidity risk | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 137,356 | 175,882 | 234,231 | |
Total Balance Sheet Liabilities | (389,113) | (426,388) | (332,739) | |
Total Balance Sheet Gap | (251,757) | (250,506) | (98,508) | |
Total Off-Balance Sheet Gap | (20,129) | (22,002) | (18,378) | |
Total Structural Gap | (271,886) | (272,508) | (116,886) | |
Accumulated Gap | (271,886) | (272,508) | (116,886) | |
Liquidity risk | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 187,961 | 142,180 | 92,390 | |
Total Balance Sheet Liabilities | (55,217) | (37,917) | (50,447) | |
Total Balance Sheet Gap | 132,744 | 104,263 | 41,943 | |
Total Off-Balance Sheet Gap | (987) | (221) | (431) | |
Total Structural Gap | 131,757 | 104,042 | 41,512 | |
Accumulated Gap | (140,129) | (168,466) | (75,374) | |
Liquidity risk | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 100,628 | 88,766 | 89,297 | |
Total Balance Sheet Liabilities | (70,591) | (31,539) | (46,637) | |
Total Balance Sheet Gap | 30,037 | 57,227 | 42,660 | |
Total Off-Balance Sheet Gap | 2,642 | 150 | (337) | |
Total Structural Gap | 32,679 | 57,377 | 42,323 | |
Accumulated Gap | (107,450) | (111,089) | (33,051) | |
Liquidity risk | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 156,587 | 124,896 | 119,332 | |
Total Balance Sheet Liabilities | (70,969) | (51,984) | (60,122) | |
Total Balance Sheet Gap | 85,618 | 72,912 | 59,210 | |
Total Off-Balance Sheet Gap | 2,943 | 5,385 | 233 | |
Total Structural Gap | 88,561 | 78,297 | 59,443 | |
Accumulated Gap | (18,889) | (32,792) | 26,392 | |
Liquidity risk | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 448,691 | 411,097 | 377,301 | |
Total Balance Sheet Liabilities | (128,880) | (96,839) | (167,082) | |
Total Balance Sheet Gap | 319,811 | 314,258 | 210,219 | |
Total Off-Balance Sheet Gap | 4,516 | 5,184 | 3,417 | |
Total Structural Gap | 324,327 | 319,442 | 213,636 | |
Accumulated Gap | 305,438 | 286,650 | 240,028 | |
Liquidity risk | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 295,114 | 257,685 | 172,776 | |
Total Balance Sheet Liabilities | (92,601) | (111,911) | (104,449) | |
Total Balance Sheet Gap | 202,513 | 145,774 | 68,327 | |
Total Off-Balance Sheet Gap | 224 | 3,377 | (1,112) | |
Total Structural Gap | 202,737 | 149,151 | 67,215 | |
Accumulated Gap | 508,175 | 435,801 | 307,243 | |
Liquidity risk | More than five years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 275,298 | 309,986 | 322,024 | |
Total Balance Sheet Liabilities | (380,499) | (341,945) | (358,258) | |
Total Balance Sheet Gap | (105,201) | (31,959) | (36,234) | |
Total Off-Balance Sheet Gap | 3,639 | 2,276 | (494) | |
Total Structural Gap | (101,562) | (29,683) | (36,728) | |
Accumulated Gap | 406,613 | 406,118 | 270,515 | |
Liquidity risk | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 3,143,138 | 2,777,118 | 2,781,887 | |
Total Balance Sheet Liabilities | (3,096,511) | (2,863,530) | (2,880,240) | |
Total Balance Sheet Gap | 46,627 | (86,412) | (98,353) | |
Total Off-Balance Sheet Gap | 111,991 | 13,964 | ||
Total Structural Gap | 158,618 | (86,412) | (84,389) | |
Accumulated Gap | 565,231 | 319,706 | 186,126 | |
Liquidity risk | Total Shareholders' Equity Attributable to the Parent | ||||
Structural interest rate risk | ||||
Equity | (166,838) | (165,539) | (158,338) | |
Liquidity risk | Total Shareholders' Equity Attributable to the Parent | Not Sensitive | ||||
Structural interest rate risk | ||||
Equity | (166,838) | (165,539) | (158,338) | |
Liquidity risk | Money Market | ||||
Structural interest rate risk | ||||
Liabilities | (235,631) | (237,926) | (416,864) | |
Liquidity risk | Money Market | 1 month | ||||
Structural interest rate risk | ||||
Liabilities | (126,156) | (134,800) | (136,167) | |
Liquidity risk | Money Market | 3 months | ||||
Structural interest rate risk | ||||
Liabilities | (667) | (429) | (342) | |
Liquidity risk | Money Market | 6 months | ||||
Structural interest rate risk | ||||
Liabilities | (1,199) | (525) | (397) | |
Liquidity risk | Money Market | 6 - 12 months | ||||
Structural interest rate risk | ||||
Liabilities | (1,322) | (1,426) | (877) | |
Liquidity risk | Money Market | 1 to 3 years | ||||
Structural interest rate risk | ||||
Liabilities | (467) | (90) | (78) | |
Liquidity risk | Money Market | Not Sensitive | ||||
Structural interest rate risk | ||||
Liabilities | (105,820) | (100,656) | (279,004) | |
Liquidity risk | Deposits | ||||
Structural interest rate risk | ||||
Liabilities | (852,726) | (773,147) | (765,648) | |
Liquidity risk | Deposits | 1 month | ||||
Structural interest rate risk | ||||
Liabilities | (255,400) | (276,799) | (188,768) | |
Liquidity risk | Deposits | 3 months | ||||
Structural interest rate risk | ||||
Liabilities | (38,223) | (30,673) | (36,499) | |
Liquidity risk | Deposits | 6 months | ||||
Structural interest rate risk | ||||
Liabilities | (41,931) | (14,064) | (22,885) | |
Liquidity risk | Deposits | 6 - 12 months | ||||
Structural interest rate risk | ||||
Liabilities | (24,700) | (22,018) | (26,267) | |
Liquidity risk | Deposits | 1 to 3 years | ||||
Structural interest rate risk | ||||
Liabilities | (69,164) | (53,199) | (78,592) | |
Liquidity risk | Deposits | 3 to 5 years | ||||
Structural interest rate risk | ||||
Liabilities | (53,900) | (43,500) | (62,686) | |
Liquidity risk | Deposits | More than five years | ||||
Structural interest rate risk | ||||
Liabilities | (369,408) | (332,894) | (349,951) | |
Liquidity risk | Long-Term Funding | ||||
Structural interest rate risk | ||||
Liabilities | (234,698) | (207,558) | (237,778) | |
Liquidity risk | Long-Term Funding | 1 month | ||||
Structural interest rate risk | ||||
Liabilities | (7,557) | (14,789) | (7,804) | |
Liquidity risk | Long-Term Funding | 3 months | ||||
Structural interest rate risk | ||||
Liabilities | (16,327) | (6,815) | (13,606) | |
Liquidity risk | Long-Term Funding | 6 months | ||||
Structural interest rate risk | ||||
Liabilities | (27,461) | (16,950) | (23,355) | |
Liquidity risk | Long-Term Funding | 6 - 12 months | ||||
Structural interest rate risk | ||||
Liabilities | (44,947) | (28,540) | (32,978) | |
Liquidity risk | Long-Term Funding | 1 to 3 years | ||||
Structural interest rate risk | ||||
Liabilities | (59,249) | (43,550) | (88,412) | |
Liquidity risk | Long-Term Funding | 3 to 5 years | ||||
Structural interest rate risk | ||||
Liabilities | (38,701) | (68,411) | (41,763) | |
Liquidity risk | Long-Term Funding | More than five years | ||||
Structural interest rate risk | ||||
Liabilities | (11,091) | (9,051) | (8,307) | |
Liquidity risk | Long-Term Funding | Not Sensitive | ||||
Structural interest rate risk | ||||
Liabilities | (29,365) | (19,452) | (21,553) | |
Liquidity risk | Other Liabilities | ||||
Structural interest rate risk | ||||
Liabilities | (2,794,488) | (2,577,883) | (2,421,345) | |
Liquidity risk | Other Liabilities | Not Sensitive | ||||
Structural interest rate risk | ||||
Liabilities | (2,794,488) | (2,577,883) | (2,421,345) | |
Liquidity risk | Money Market | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 134,410 | 107,493 | 210,487 | |
Liquidity risk | Money Market | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 51,335 | 40,153 | 99,500 | |
Liquidity risk | Money Market | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 10 | |||
Liquidity risk | Money Market | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 83,075 | 67,340 | 110,976 | |
Liquidity risk | Loans and advances | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 1,156,553 | 1,016,312 | 906,434 | |
Liquidity risk | Loans and advances | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 75,674 | 59,574 | 53,486 | |
Liquidity risk | Loans and advances | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 118,921 | 98,867 | 86,614 | |
Liquidity risk | Loans and advances | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 99,078 | 85,021 | 70,534 | |
Liquidity risk | Loans and advances | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 140,331 | 112,761 | 103,026 | |
Liquidity risk | Loans and advances | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 310,763 | 272,326 | 252,900 | |
Liquidity risk | Loans and advances | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 145,584 | 122,316 | 113,424 | |
Liquidity risk | Loans and advances | More than five years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 232,864 | 253,494 | 225,978 | |
Liquidity risk | Loans and advances | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 33,338 | 11,953 | 473 | |
Liquidity risk | Intragroup | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 4,287 | 4,368 | 2,324 | |
Liquidity risk | Intragroup | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 4,287 | 4,368 | 2,324 | |
Liquidity risk | Securities | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 606,595 | 592,439 | 619,308 | |
Liquidity risk | Securities | 1 month | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 10,347 | 76,155 | 81,245 | |
Liquidity risk | Securities | 3 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 69,040 | 43,313 | 5,776 | |
Liquidity risk | Securities | 6 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 1,550 | 3,745 | 18,753 | |
Liquidity risk | Securities | 6 - 12 months | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 16,256 | 12,135 | 16,306 | |
Liquidity risk | Securities | 1 to 3 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 137,928 | 138,771 | 124,401 | |
Liquidity risk | Securities | 3 to 5 years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 149,530 | 135,369 | 59,352 | |
Liquidity risk | Securities | More than five years | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 42,434 | 56,492 | 96,046 | |
Liquidity risk | Securities | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 179,510 | 126,459 | 217,429 | |
Liquidity risk | Permanent | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 12,794 | 18,931 | 17,838 | |
Liquidity risk | Permanent | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 12,794 | 18,931 | 17,838 | |
Liquidity risk | Other assets | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | 2,830,134 | 2,548,067 | 2,432,847 | |
Liquidity risk | Other assets | Not Sensitive | ||||
Structural interest rate risk | ||||
Total Balance Sheet Assets | $ 2,830,134 | $ 2,548,067 | $ 2,432,847 |
Risk management - Capital risk
Risk management - Capital risk (Details) | 12 Months Ended | |||
Apr. 29, 2016 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2016 | |
Risk management | ||||
Leverage ratio, baseline reference effect percentage | 3% | |||
Leverage ratio | 7.13% | |||
Capital preservation supplement, Projected period | 4 years | |||
Capital preservation supplement target | 1.20% | |||
Capital preservation supplement, Percent of requirement achieved | 100% | |||
Net Capital / Assets subject to Credit, Market and Operating Risk | 19.38% | 21.56% |
Risk management - Regulatory Ra
Risk management - Regulatory Ratios (Details) | 12 Months Ended |
Dec. 31, 2022 item building | |
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% |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Summary of financial information | |||
Operating profit before tax | $ 32,272 | $ 25,767 | $ 25,200 |
Income tax | (8,164) | (4,966) | (6,226) |
PROFIT FOR THE YEAR | 24,108 | 20,801 | 18,974 |
Income from entities accounted for using the equity method | $ 182 | 200 | $ 178 |
Santander Merchant Platform Solutions Mexico, S.A. de C.V. | |||
Summary of financial information | |||
Current assets | 5,678 | ||
Non-current assets | 3,549 | ||
Current liabilities | (6,119) | ||
Non-current liabilities | (31) | ||
Net assets | 3,077 | ||
Revenue | 2,399 | ||
Expenses | (1,728) | ||
Operating profit before tax | 671 | ||
Income tax | (178) | ||
PROFIT FOR THE YEAR | $ 493 |
Associated entities and conso_4
Associated entities and consolidated subsidiaries - Associated entities - Reconciliation (Details) - MXN ($) $ in Millions | 12 Months Ended | ||||||
Jun. 01, 2022 | Jun. 01, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 03, 2021 | Dec. 03, 2020 | |
Associated entities | |||||||
Profit for the year | $ 24,108 | $ 20,801 | $ 18,974 | ||||
Carrying amount | $ 1,380 | ||||||
Santander Merchant Platform Solutions Mexico, S.A. de C.V. | |||||||
Associated entities | |||||||
Bank's share in associated entity (percentage) | 49% | ||||||
Bank's share in associated entity | $ 1,508 | ||||||
Goodwill | 669 | ||||||
Sale of merchant contracts | (784) | (784) | |||||
Other adjustments | (13) | ||||||
Carrying amount | 1,380 | ||||||
Sale price of acquisition contracts | $ 1,600 | $ 1,600 | |||||
Gain (loss) in acquisition contracts | $ 816 | $ 816 | |||||
Sale of merchant business | 583 | ||||||
Notes receivable | $ 1,017 | ||||||
Santander Merchant Platform Solutions Mexico, S.A. de C.V. | |||||||
Associated entities | |||||||
Net assets on investment date | 2,584 | ||||||
Profit for the year | 493 | ||||||
Closing net assets | $ 3,077 |
Associated entities and conso_5
Associated entities and consolidated subsidiaries - Composition of the Bank (Details) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Subsidiaries | |||
Non-controlling interest | $ 62 | $ 48 | $ 37 |
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% | ||
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% | ||
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% | ||
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% | ||
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% | ||
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% | ||
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% | ||
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% | ||
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% |
Associated entities and conso_6
Associated entities and consolidated subsidiaries - Significant restrictions (Details) - MXN ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financial instruments | ||
Financial instruments received as collateral | $ 123,940 | $ 68,252 |
Santander Consumo, S.A. de C.V., Sociedad Financiera de Objeto Multiple, Entidad Regulada | ||
Financial instruments | ||
Assets to which significant restrictions apply | 69,785 | |
Santander Inclusion Financiera, S.A. de C.V., Sociedad Financiera de Objeto Multiple, Entidad Regulada | ||
Financial instruments | ||
Assets to which significant restrictions apply | 485 | |
Statutory reserve | ||
Financial instruments | ||
Liabilities to which significant restrictions apply | 16,365 | |
Statutory reserve on individual basis | ||
Financial instruments | ||
Liabilities to which significant restrictions apply | 13,971 | |
Financial instruments in connection with derivative transactions in organized markets | ||
Financial instruments | ||
Financial assets pledged as collateral | 6,530 | 6,261 |
Deposits - Credit institutions and customers | Financial instrument in connection with OTC derivative transactions | ||
Financial instruments | ||
Liabilities to which significant restrictions apply | 15,676 | |
Debt instruments | Financial instrument in connection with OTC derivative transactions | ||
Financial instruments | ||
Liabilities to which significant restrictions apply | 5,660 | |
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 | 121,859 | |
Financial instruments received as collateral | 119,398 | 63,687 |
Debt instruments | Financial instrument in connection with OTC derivative transactions | ||
Financial instruments | ||
Financial instruments received as collateral | 4,541 | 4,491 |
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 | 119,213 | 103,095 |
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 | 28,932 | 17,633 |
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 | 86,052 | |
Financial assets pledged as collateral | 86,052 | 87,653 |
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 | 0 | 1,988 |
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 | 1,417 | |
Financial assets pledged as collateral | 1,417 | 6,375 |
Special CETES | ||
Financial instruments | ||
Assets to which significant restrictions apply | 2,211 | |
Bonos de Regulacion Monetaria Reportables (BREMS R) | ||
Financial instruments | ||
Assets to which significant restrictions apply | 7,799 | |
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 | 7,720 | |
Financial assets pledged as collateral | 7,720 | 7,709 |
Mexican government securities | Financial instruments in connection with repurchase agreement transactions | ||
Financial instruments | ||
Assets to which significant restrictions apply | 119,213 | |
Equity investments | Financial instruments in connection with securities loans transactions | ||
Financial instruments | ||
Financial assets pledged as collateral | 410 | |
Financial instruments received as collateral | 1 | 74 |
Equity investments | 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 | 410 | 81 |
Financial instruments received as collateral | 1 | 74 |
Loans and advances - Customers | ||
Financial instruments | ||
Financial assets pledged as collateral | 6,530 | 6,261 |
Loans and advances - Customers | Financial instruments in connection with derivative transactions in organized markets | ||
Financial instruments | ||
Assets to which significant restrictions apply | 6,530 | |
Loans and advances - Credit institutions | Financial instrument in connection with OTC derivative transactions | ||
Financial instruments | ||
Assets to which significant restrictions apply | 14,585 | |
Loans and advances - Credit institutions | Financial assets designated at fair value through profit or loss | Financial instruments in connection with repurchase agreement transactions | ||
Financial instruments | ||
Financial instruments received as collateral | 102,431 | 58,235 |
Loans and advances - Credit institutions | Financial assets at amortized cost category | Financial instrument in connection with OTC derivative transactions | ||
Financial instruments | ||
Financial assets pledged as collateral | $ 14,585 | $ 13,234 |
Loans and advances to custom_19
Loans and advances to customers - Post-model adjustments (Details) 20-F 2021 - Financial assets at amortized cost category - Impairment losses $ in Millions | 12 Months Ended |
Dec. 31, 2020 MXN ($) | |
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) |
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) |
Public sector loans | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | (1) |
Securitized mortgage assets | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | 30 |
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) |
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 - Non-revolving consumer loans | Macroeconomic overlay | |
Financial assets | |
Post-model adjustments or overlay | $ (17) |
Marketable debt securities - _7
Marketable debt securities - Other disclosures (Details) 20-F 2021 - Senior Unsecured Note, April 17, 2025 - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Apr. 14, 2020 |
Financial liabilities | |||
Notes issued | $ 1,750 | ||
Interest rate (as a percent) | 5.38% | 5.38% | 5.375% |