The accompanying table shows the amount of eligible capital, net of deductions, of the different elements comprising the capital base:
TABLE 9: Amount of capital
(Millions of euros)
| Eligible capital resources | Eligible Capital | |
|---|---|---|
|
|
2014 | 2013 (1) |
| Capital | 3,024 | 2,835 |
| Share Premium | 23,992 | 22,111 |
| Reserves | 17,211 | 15,880 |
| Minority interests | 1,526 | 2,069 |
| Deductions | -11,478 | -8,535 |
| - Goodwill and intangible assets | -8,738 | -8,034 |
| - Treasury stock | -350 | -66 |
| - Fin. treasury stock | -124 | -171 |
| - DTAs for loss carryforwards | -1,196 | - |
| - Securitizations tranches at 1250% | -158 | - |
| - Expected losses in equity | -44 | - |
| - Financial investments < 10% | -67 | - |
| - OCI Pensions | -395 | -264 |
| - Other deductions | -408 | - |
| Other (3) | 155 | - |
| Net attrib. profit and interim and final Group dividends | 1,871 | 1,464 |
| Other temporary adjustments CET1 | 5,171 | - |
| Other temporary adjustments CET1 (minority interests) | 360 | - |
| Common Equity Tier 1 | 41,832 | 35,824 |
| Eligible capital resources AT1 | 2,735 | 1,088 |
| Preferred securities eligible as Tier 1 | 1,469 | 1,817 |
| Other temporary adjustments Tier 1 | -4,205 | - |
| 50% Tier 1 deductions | 0 | -786 |
| Additional Tier 1 | 41,832 | 37,944 |
| Subordinated debt eligible as T2 | 2,224 | 1,866 |
| Eligible subordinated debt issued by subsidiaries | 3,700 | - |
| Grandfathering T1 instruments eligible as T2 | 1,917 | - |
| Temporary adjustments eligible subordinated debt | 1,823 | - |
| Grandfathering adjustments Tier 1 instruments | -1,470 | - |
| 50% Tier 2 deductions (2) | 0 | -726 |
| Surplus on generic provisions | 2,793 | 2,589 |
| Tier 2 | 10,986 | 3,729 |
| TOTAL | 52,818 | 41,672 |
| CET1 (phased-in) | 11.9% | 11.1% |
| CET1 (fully-loaded) | 10.4% | 11.1% |
| TIER I (phased-in) | 11.9% | 11.7% |
| TIER II (phased-in) | 3.1% | 1.2% |
| RWAs (phased-in) | 350,802 | 323,774 |
| RWAs (fully-loaded) | 350,608 | 323,774 |
The variations in 2014 in the amounts of Tier 1 capital in the above table are basically due to the cumulative earnings to December net of dividends, the capital increase carried out during the year and the new issue of perpetual contingent convertibles. This increase is partially offset by the new deductions that took effect starting January 1, 2014 and the lower level of eligibility of certain elements (minority holdings, preference shares).
In Tier 2 capital the increase is mainly due to the variations in other subordinated liabilities due to current regulatory changes (Article 88 of the CRR), which calculate as Tier 2 the capital flow from subsidiaries, as well as the surplus due to excess Tier 2 at local level (phased in at 20%). In addition, as reflected in Table 8, the full compliance subordinate debt issue for €1.5 billion carried out in 2014 has helped improve the Group's capital position.
In the minimum eligible capital, the increase is due mainly to the different criteria applied in calculating requirements according to the CRR (new requirements such as, for example, the credit valuation adjustment (CVA), deferred tax assets or the part of significant holdings in financial institutions that is not deducted, etc.) and increased activity in the Group's units, mainly outside Europe.
The process followed is shown below, according to the recommendations issued by the EBA and in line with the exercise of transparency conducted by the Bank. Based on the shareholders' equity reported in the Group's Annual Consolidated Financial Statements and by applying the deductions and adjustments shown in the table below, the regulatory capital figure for solvency purposes is arrived at:
TABLE 10: Reconciliation of shareholders' equity with regulatory capital
(Millions of euros)
| Eligible capital resources | Reconciliation of shareholders' equity with regulatory capital | Reconciliation of shareholders' equity with regulatory capital |
|---|---|---|
|
|
|
|
| Capital | 3,024 | 2,835 |
| Share premium | 23,993 | 22,111 |
| Reserves | 20,936 | 19,908 |
| Other equity instruments | 67 | 59 |
| Own shares in portfolio | -350 | -66 |
| Attributed net income | 2,618 | 2,228 |
| Attributed dividend | -841 | -765 |
| Total shareholders' funds (public balance sheet) | 49,447 | 46,310 |
| Valuation adjustments | -348 | -3,831 |
| Minority interests | 2,511 | 2,371 |
| Total equity (public balance sheet) | 51,610 | 44,850 |
| Shares and other eligible preferred securities | 4,205 | 2,905 |
| Goodwill and other intangible assets | -1,748 | -7,834 |
| Fin. treasury stock | -124 | -171 |
| Deductions | -1,872 | -8,005 |
| Valuation adjustments not eligible as basic capital | -3,567 | -854 |
| Capital gains from the Sovereign AFS fixed-income portfolio | -2,713 | -780 |
| Capital gains from the AFS equity portfolio | -854 | -72 |
| Exchange-rate variations non-current assets held for sale | 0 | -3 |
| Valuation adjustments not eligible as basic capital (minority interests) | -140 | -233 |
| Minority interests valuation adjustments | -14 | -115 |
| Difference between accounting vs estimated interim dividend | -126 | -118 |
| Equity not eligible at solvency level | -3,707 | -1,087 |
| Other adjustments | -1,414 | 67 |
| Tier 1 (before deductions) | 48,822 | 38,730 |
| (-) Tier 1 deductions | -6,990 | -786 |
| Tier 1 | 41,832 | 37,944 |