16. Investments in entities accounted for using the equity method
The breakdown of the balances of “Investments in entities accounted for using the equity method” in the accompanying consolidated balance sheets is as follows:
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Millions of euros | ||
|---|---|---|---|
| Investments in Entities Accounted for Using the Equity Method | 2015 | 2014 | 2013 |
| Associates entities | 636 | 417 | 1,272 |
| Joint ventures | 243 | 4,092 | 3,470 |
| Total | 879 | 4,509 | 4,742 |
16.1 Associates
The following table shows the carrying amount of the most significant of the Group’s investments in associates:
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Millions of euros | ||
|---|---|---|---|
| Associates Entities | 2015 | 2014 | 2013 |
| Metrovacesa, S.A. | 351 | 233 | 315 |
| Sociedad Española de Medios de Pago, S.A. (Servired) | 92 | 8 | 8 |
| Brunara SICAV, S.A. | 54 | 52 | 48 |
| Occidental Hoteles Management, S.L. | - | - | 98 |
| Tubos Reunidos, S.A. | - | - | 53 |
| Citic International Financial Holdings Ltd (CIFH) | - | - | 631 |
| Other associates | 139 | 124 | 119 |
| Total | 636 | 417 | 1,272 |
As of December 31, 2015, the most significant of the Group’s investments associates are Metrovacesa y Servired, for which Management agreements are maintained with other banks shareholders, so are or accounted for using the equity method.
Appendix II shows the details of the associates as of December 31, 2015.
The following is a summary of the changes in the years ended December 31, 2015, 2014 and 2013 under this heading in the accompanying consolidated balance sheets:
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|
Millions of euros | ||
|---|---|---|---|
| Associates Entities. Changes in the Year | 2015 | 2014 | 2013 |
| Balance at the beginning | 417 | 1,272 | 6,469 |
| Acquisitions and capital increases | 192 | 1 | 65 |
| Disposals and capital reductions | (5) | (2) | (4) |
| Transfers and changes of consolidation method | (3) | (948) | (5,453) |
| Share of profit and loss (Note 38) | (18) | 26 | 425 |
| Exchange differences | (11) | 89 | (71) |
| Dividends, valuation adjustments and others | 64 | (21) | (159) |
| Balance at the end | 636 | 417 | 1,272 |
The changes in the year ended December 31, 2015, are mainly a result of capital increase of Metrovacesa and the increased value of Servired by gains in its stake in Visa.
During the year ended December 31, 2014, the investment on Occidental Hoteles Management, S.L. was reclassified to “Non-current assets available for sale”. Also, BBVA sold 6.89% of its participation in Tubos Reunidos, S.A., decreasing its participation to 14.47%, which meant a loss of significant influence and triggered therefore the reclassification of this investment to “Financial assets available for sale” in an amount of €47 million. The impact in equity and the consolidated income statement was not material.
The changes in 2013 are mainly a result of the sale and reclassification of the remaining stake in CNCB to the heading “Available-for-sale financial assets” as it is mentioned in the Note 3.
16.2 Investments in joint venture entities
The breakdown of the balance under this heading in the accompanying consolidated balance sheets is as follows:
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|
Millions of Euros | ||
|---|---|---|---|
| Joint ventures | 2015 | 2014 | 2013 |
| Garanti Group | - | 3,853 | 3,245 |
| PSA Finance Argentina | 23 | 26 | 19 |
| Altura Markets | 20 | 18 | 17 |
| Other joint ventures | 200 | 195 | 189 |
| Total | 243 | 4,092 | 3,470 |
As of December 31, 2015, the main joint venture are PSA Finance Argentina y Altura Markets for which joint management agreements with other shareholders are kept , so are or accounted for using the equity method.
The main variation in this heading is as a result of the change in the method used for the consolidation to full consolidation method as a consequence of the control of the investee (see Note 3).
Details of the joint ventures of December 31, 2015 are shown in Appendix II.
The following is a summary of the changes as of December 31, 2015, 2014 and 2013 under this heading in the accompanying consolidated balance sheets:
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|
Millions of euros | ||
|---|---|---|---|
| Joint ventures. Changes in the Year | 2015 | 2014 | 2013 |
| Balance at the beginning | 4,092 | 3,470 | 4,313 |
| Acquisitions and capital increases | 272 | 35 | 70 |
| Disposals and capital reductions | (27) | (8) | (11) |
| Transfers and changes of consolidation method | (3,848) | - | (155) |
| Share of profit and loss (Note 38) | 192 | 317 | 269 |
| Exchange differences | (239) | 146 | (818) |
| Dividends, valuation adjustments and others | (200) | 132 | (198) |
| Balance at the end | 242 | 4,092 | 3,470 |
16.3 Other information about associates and joint ventures
The following table provides relevant information of the balance sheets and income statements of associates and joint ventures as of December 31, 2015, 2014 and 2013, respectively.
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Millions of euros | |||||
|---|---|---|---|---|---|---|
|
|
2015 (*) | 2014 (*) | 2013 (*) | |||
| Associates and Joint ventures Financial Main figures (*) |
Associates | Joint-ventures | Associates | Joint-ventures | Associates | Joint-ventures |
| Interest Margin | 26 | 6 | (28) | (1) | 73 | 26 |
| Gross income | 112 | 85 | 76 | 82 | 305 | 78 |
| Profit from continuing operations | 9 | 4 | (10) | - | 82 | (23) |
| Profit from discontinued operations (net) | - | - | - | - | - | - |
| Total | 9 | 4 | (10) | - | 77 | (23) |
As of December 31, 2015 there was no financial support agreement or other contractual commitment to associates and joint ventures entities from the holding or the subsidiaries that are not recognized in the financial statements (see Note 52.2).
As of December 31, 2015 there was no contingent liability in connection with the investments in joint ventures and associates (see Note 52.2).
16.4 Notifications about acquisition of holdings
Appendix III provides notifications on acquisitions and disposals of holdings in associates or joint ventures, in compliance with Article 155 of the Corporations Act and Article 53 of the Securities Market Act 24/1988.
16.5 Impairment
As described in IAS 36, when there is indicator of impairment, the book value of the associates and joint venture entities should be compared with their recoverable amount, being the latter calculated as the higher between the value in use and the fair value minus the cost of sale. As of December 31, 2015, 2014 and 2013, there was no impairment recognized.