Financial Statements
Consolidated balance sheets as of December 31, 2018, 2017 and 2016
ASSETS (Millions of Euros)
| Notes | 2018 | 2017(*) | 2016(*) | |
|---|---|---|---|---|
| CASH, CASH BALANCES AT CENTRAL BANKS AND OTHER DEMAND DEPOSITS | 9 | 58,196 | 42,680 | 40,039 |
| FINANCIAL ASSETS HELD FOR TRADING | 10 | 90,117 | 64,695 | 74,950 |
| Derivatives | 30,536 | 35,265 | 42,955 | |
| Equity instruments | 5,254 | 6,801 | 4,675 | |
| Debt securities | 25,577 | 22,573 | 27,166 | |
| Loans and advances to central banks | 2,163 | - | - | |
| Loans and advances to credit institutions | 14,566 | - | - | |
| Loans and advances to customers | 12,021 | 56 | 154 | |
| NON-TRADING FINANCIAL ASSETS MANDATORILY AT FAIR VALUE THROUGH PROFIT OR LOSS | 11 | 5,135 | ||
| Equity instruments | 3,095 | |||
| Debt securities | 237 | |||
| Loans and advances to central banks | - | |||
| Loans and advances to credit institutions | - | |||
| Loans and advances to customers | 1,803 | |||
| FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | 12 | 1,313 | 2,709 | 2,062 |
| Equity instruments | - | 1,888 | 1,920 | |
| Debt securities | 1,313 | 174 | 142 | |
| Loans and advances to central banks | - | - | - | |
| Loans and advances to credit institutions | - | - | - | |
| Loans and advances to customers | - | 648 | - | |
| FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME | 13 | 56,337 | 69,476 | 79,221 |
| Equity instruments | 2,595 | 3,224 | 4,641 | |
| Debt securities | 53,709 | 66,251 | 74,580 | |
| Loans and advances to central banks | - | - | - | |
| Loans and advances to credit institutions | 33 | - | - | |
| Loans and advances to customers | - | - | - | |
| FINANCIAL ASSETS AT AMORTIZED COST | 14 | 419,660 | 445,275 | 483,672 |
| Debt securities | 32,530 | 24,093 | 28,905 | |
| Loans and advances to central banks | 3,941 | 7,300 | 8,894 | |
| Loans and advances to credit institutions | 9,163 | 26,261 | 31,373 | |
| Loans and advances to customers | 374,027 | 387,621 | 414,500 | |
| HEDGING DERIVATIVES | 15 | 2,892 | 2,485 | 2,833 |
| FAIR VALUE CHANGES OF THE HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | (21) | (25) | 17 | |
| JOINT VENTURES AND ASSOCIATES | 16 | 1,578 | 1,588 | 765 |
| Joint ventures | 173 | 256 | 229 | |
| Associates | 1,405 | 1,332 | 536 | |
| INSURANCE AND REINSURANCE ASSETS | 23 | 366 | 421 | 447 |
| TANGIBLE ASSETS | 17 | 7,229 | 7,191 | 8,941 |
| Property, plants and equipment | 7,066 | 6,996 | 8,250 | |
| For own use | 6,756 | 6,581 | 7,519 | |
| Other assets leased out under an operating lease | 310 | 415 | 732 | |
| Investment properties | 163 | 195 | 691 | |
| INTANGIBLE ASSETS | 18 | 8,314 | 8,464 | 9,786 |
| Goodwill | 6,180 | 6,062 | 6,937 | |
| Other intangible assets | 2,134 | 2,402 | 2,849 | |
| TAX ASSETS | 19 | 18,100 | 16,888 | 18,245 |
| Current | 2,784 | 2,163 | 1,853 | |
| Deferred | 15,316 | 14,725 | 16,391 | |
| OTHER ASSETS | 20 | 5,472 | 4,359 | 7,274 |
| Insurance contracts linked to pensions | - | - | - | |
| Inventories | 635 | 229 | 3,298 | |
| Other | 4,837 | 4,130 | 3,976 | |
| NON-CURRENT ASSETS AND DISPOSAL GROUPS HELD FOR SALE | 21 | 2,001 | 23,853 | 3,603 |
| TOTAL ASSETS | 676,689 | 690,059 | 731,856 |
- (*) Presented for comparison purposes only (Note 1.3).
The accompanying Notes 1 to 57 and Appendices I to XIII are an integral part of the consolidated financial statements as of December 31, 2018.
Consolidated balance sheets as of December 31, 2018, 2017 and 2016
LIABILITIES AND EQUITY (Millions of Euros)
| Notes | 2018 | 2017(*) | 2016(*) | |
|---|---|---|---|---|
| FINANCIAL LIABILITIES HELD FOR TRADING | 10 | 80,774 | 46,182 | 54,675 |
| Trading derivatives | 31,815 | 36,169 | 43,118 | |
| Short positions | 11,025 | 10,013 | 11,556 | |
| Deposits from central banks | 10,511 | - | - | |
| Deposits from credit institutions | 15,687 | - | - | |
| Customer deposits | 11,736 | - | - | |
| Debt certificates | - | - | - | |
| Other financial liabilities | - | - | - | |
| FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | 12 | 6,993 | 2,222 | 2,338 |
| Deposits from central banks | - | - | - | |
| Deposits from credit institutions | - | - | - | |
| Customer deposits | 976 | - | - | |
| Debt certificates | 2,858 | - | - | |
| Other financial liabilities | 3,159 | 2,222 | 2,338 | |
| Of which: Subordinated liabilities | - | - | - | |
| FINANCIAL LIABILITIES AT AMORTIZED COST | 22 | 509,185 | 543,713 | 589,210 |
| Deposits from central banks | 27,281 | 37,054 | 34,740 | |
| Deposits from credit institutions | 31,978 | 54,516 | 63,501 | |
| Customer Deposits | 375,970 | 376,379 | 401,465 | |
| Debt certificates | 61,112 | 63,915 | 76,375 | |
| Other financial liabilities | 12,844 | 11,850 | 13,129 | |
| Of which: Subordinated liabilities | 18,047 | 17,316 | 17,230 | |
| HEDGING DERIVATIVES | 15 | 2,680 | 2,880 | 2,347 |
| FAIR VALUE CHANGES OF THE HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | 15 | - | (7) | - |
| LIABILITIES UNDER INSURANCE AND REINSURANCE CONTRACTS | 23 | 9,834 | 9,223 | 9,139 |
| PROVISIONS | 24 | 6,772 | 7,477 | 9,071 |
| Provisions for pensions and similar obligations | 4,787 | 5,407 | 6,025 | |
| Other long term employee benefits | 62 | 67 | 69 | |
| Provisions for taxes and other legal contingencies | 686 | 756 | 418 | |
| Provisions for contingent risks and commitments | 636 | 578 | 950 | |
| Other provisions | 601 | 669 | 1,609 | |
| TAX LIABILITIES | 19 | 3,276 | 3,298 | 4,668 |
| Current | 1,230 | 1,114 | 1,276 | |
| Deferred | 2,046 | 2,184 | 3,392 | |
| OTHER LIABILITIES | 20 | 4,301 | 4,550 | 4,979 |
| LIABILITIES INCLUDED IN DISPOSAL GROUPS CLASSIFIED AS HELD FOR SALE | 17,197 | - | ||
| TOTAL LIABILITIES | 623,814 | 636,736 | 676,428 |
- (*) Presented for comparison purposes only (Note 1.3).
The accompanying Notes 1 to 57 and Appendix I to XIII are an integral part of the consolidated financial statements as of December 31, 2017.
The accompanying Notes 1 to 57 and Appendices I to XIII are an integral part of the consolidated financial statements as of December 31, 2018.
Consolidated balance sheets as of December 31, 2018, 2017 and 2016
LIABILITIES AND EQUITY (Continued) (Millions of Euros)
| Notes | 2018 | 2017(*) | 2016(*) | |
|---|---|---|---|---|
| SHAREHOLDERS’ FUNDS | 54,326 | 53,283 | 50,985 | |
| Capital | 26 | 3,267 | 3,267 | 3,218 |
| Paid up capital | 3,267 | 3,267 | 3,218 | |
| Unpaid capital which has been called up | - | - | - | |
| Share premium | 27 | 23,992 | 23,992 | 23,992 |
| Equity instruments issued other than capital | - | - | - | |
| Other equity instruments | 50 | 54 | 54 | |
| Retained earnings | 28 | 23,018 | 23,612 | 21,844 |
| Revaluation reserves | 28 | 3 | 12 | 20 |
| Other reserves | 28 | (58) | (35) | (59) |
| Reserves or accumulated losses of investments in subsidiaries, joint ventures and associates | (58) | (35) | (59) | |
| Other | - | - | - | |
| Less: Treasury shares | 29 | (296) | (96) | (48) |
| Profit or loss attributable to owners of the parent | 5,324 | 3,519 | 3,475 | |
| Less: Interim dividends | (975) | (1,043) | (1,510) | |
| ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 30 | (7,215) | (6,939) | (3,622) |
| Items that will not be reclassified to profit or loss | (1,284) | (1,183) | (1,095) | |
| Actuarial gains or losses on defined benefit pension plans | (1,245) | (1,183) | (1,095) | |
| Non-current assets and disposal groups classified as held for sale | - | - | - | |
| Share of other recognized income and expense of investments in subsidiaries, joint ventures and associates | - | - | - | |
| Fair value changes of equity instruments measured at fair value through other comprehensive income | (155) | - | - | |
| Hedge ineffectiveness of fair value hedges for equity instruments measured at fair value through other comprehensive income | - | |||
| Fair value changes of equity instruments measured at fair value through other comprehensive income (hedged item) | - | |||
| Fair value changes of equity instruments measured at fair value through other comprehensive income (hedging instrument) | - | |||
| Fair value changes of financial liabilities at fair value through profit or loss attributable to changes in their credit risk | 116 | |||
| Items that may be reclassified to profit or loss | (5,932) | (5,755) | (2,527) | |
| Hedge of net investments in foreign operations (effective portion) | (218) | 1 | (118) | |
| Foreign currency translation | (6,643) | (7,297) | (3,341) | |
| Hedging derivatives. Cash flow hedges (effective portion) | (6) | (34) | 16 | |
| Financial assets available for sale | 1,641 | 947 | ||
| Fair value changes of debt instruments measured at fair value through other comprehensive income | 943 | |||
| Hedging instruments (non-designated items) | - | |||
| Non-current assets and disposal groups classified as held for sale | 1 | (26) | ||
| Share of other recognized income and expense of investments in subsidiaries, joint ventures and associates | (9) | (40) | (31) | |
| MINORITY INTERESTS (NON-CONTROLLING INTEREST) | 31 | 5,764 | 6,979 | 8,064 |
| Accumulated other comprehensive income (loss) | (3,236) | (2,550) | (1,430) | |
| Other | 9,000 | 9,530 | 9,494 | |
| TOTAL EQUITY | 52,874 | 53,323 | 55,428 | |
| TOTAL EQUITY AND TOTAL LIABILITIES | 676,689 | 690,059 | 731,856 |
MEMORANDUM ITEM (OFF-BALANCE SHEET EXPOSURES) (Millions of Euros)
- (*) Presented for comparison purposes only (Note 1.3).
The accompanying Notes 1 to 57 and Appendices I to XIII are an integral part of the consolidated financial statements as of December 31, 2018.
Consolidated income statements for the years ended December 31, 2018, 2017 and 2016
CONSOLIDATED INCOME STATEMENTS (MILLIONS OF EUROS)
| Notes | 2018 | 2017(*) | 2016(*) | |
|---|---|---|---|---|
| Interest and other income | 37.1 | 29,831 | 29,296 | 27,708 |
| Interest expense | 37.2 | (12,239) | (11,537) | (10,648) |
| NET INTEREST INCOME | 17,591 | 17,758 | 17,059 | |
| Dividend income | 38 | 157 | 334 | 467 |
| Share of profit or loss of entities accounted for using the equity method | 39 | (7) | 4 | 25 |
| Fee and commission income | 40 | 7,132 | 7,150 | 6,804 |
| Fee and commission expense | 40 | (2,253) | (2,229) | (2,086) |
| Gains (losses) on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net | 41 | 216 | 985 | 1,375 |
| Gains (losses) on financial assets and liabilities held for trading, net | 41 | 707 | 218 | 248 |
| Gains (losses) on non-trading financial assets mandatorily at fair value through profit or loss, net | 41 | 96 | ||
| Gains (losses) on financial assets and liabilities designated at fair value through profit or loss, net | 41 | 143 | (56) | 114 |
| Gains (losses) from hedge accounting, net | 41 | 72 | (209) | (76) |
| Exchange differences, net | 41 | (9) | 1,030 | 472 |
| Other operating income | 42 | 949 | 1,439 | 1,272 |
| Other operating expense | 42 | (2,101) | (2,223) | (2,128) |
| Income from insurance and reinsurance contracts | 43 | 2,949 | 3,342 | 3,652 |
| Expense from insurance and reinsurance contracts | 43 | (1,894) | (2,272) | (2,545) |
| GROSS INCOME | 23,747 | 25,270 | 24,653 | |
| Administration costs | (10,494) | (11,112) | (11,366) | |
| Personnel expenses | 44.1 | (6,120) | (6,571) | (6,722) |
| Other administrative expenses | 44.2 | (4,374) | (4,541) | (4,644) |
| Depreciation and amortization | 45 | (1,208) | (1,387) | (1,426) |
| Provisions or reversal of provisions | 46 | (373) | (745) | (1,186) |
| Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification | 47 | (3,981) | (4,803) | (3,801) |
| Financial assets measured at amortized cost | (3,980) | (3,676) | (3,598) | |
| Financial assets at fair value through other comprehensive income | (1) | (1,127) | (202) | |
| NET OPERATING INCOME | 7,691 | 7,222 | 6,874 | |
| Impairment or reversal of impairment of investments in subsidiaries, joint ventures and associates | - | - | - | |
| Impairment or reversal of impairment on non-financial assets | 48 | (138) | (364) | (521) |
| Tangible assets | (5) | (42) | (143) | |
| Intangible assets | (83) | (16) | (3) | |
| Other assets | (51) | (306) | (375) | |
| Gains (losses) on derecognition of non financial assets and subsidiaries, net | 49 | 78 | 47 | 70 |
| Negative goodwill recognized in profit or loss | - | - | - | |
| Profit (loss) from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations | 50 | 815 | 26 | (31) |
| PROFIT OR LOSS BEFORE TAX FROM CONTINUING OPERATIONS | 55.2 | 8,446 | 6,931 | 6,392 |
| Tax expense or income related to profit or loss from continuing operations | (2,295) | (2,169) | (1,699) | |
| PROFIT OR LOSS AFTER TAX FROM CONTINUING OPERATIONS | 6,151 | 4,762 | 4,693 | |
| Profit or loss after tax from discontinued operations, net | - | - | - | |
| PROFIT FOR THE YEAR | 6,151 | 4,762 | 4,693 | |
| Attributable to minority interest [non-controlling interest] | 31 | 827 | 1,243 | 1,218 |
| Attributable to owners of the parent | 55.2 | 5,324 | 3,519 | 3,475 |
| 2018 | 2017(*) | 2016(*) | |
|---|---|---|---|
| EARNINGS PER SHARE (Euros) | 0.76 | 0.48 | 0.49 |
| Basic earnings per share from continued operations | 0.76 | 0.48 | 0.49 |
| Diluted earnings per share from continued operations | 0.76 | 0.48 | 0.49 |
| Basic earnings per share from discontinued operations | - | - | - |
| Diluted earnings per share from discontinued operations | - | - | - |
- (*) Presented for comparison purposes only (Note 1.3).
The accompanying Notes 1 to 57 and Appendices I to XIII are an integral part of the consolidated financial statements as of December 31, 2018.
Consolidated statements of recognized income and expenses for the years ended December 31, 2018, 2017 and 2016
CONSOLIDATED STATEMENTS OF RECOGNIZED INCOME AND EXPENSES (MILLIONS OF EUROS)
| 2018 | 2017(*) | 2016(*) | |
|---|---|---|---|
| PROFIT RECOGNIZED IN INCOME STATEMENT | 6,151 | 4,762 | 4,693 |
| OTHER RECOGNIZED INCOME (EXPENSES) | (2,523) | (4,439) | (3,012) |
| ITEMS NOT SUBJECT TO RECLASSIFICATION TO INCOME STATEMENT | (141) | (91) | (240) |
| Actuarial gains and losses from defined benefit pension plans | (79) | (96) | (303) |
| Non-current assets and disposal groups held for sale | - | - | - |
| Fair value changes of equity instruments measured at fair value through other comprehensive income | (172) | ||
| Fair value changes of financial liabilities at fair value through profit or loss attributable to changes in their credit risk | 166 | ||
| Income tax related to items not subject to reclassification to income statement | (56) | 5 | 63 |
| ITEMS SUBJECT TO RECLASSIFICATION TO INCOME STATEMENT | (2,382) | (4,348) | (2,772) |
| Hedge of net investments in foreign operations (effective portion) | (244) | 80 | 166 |
| Valuation gains or losses taken to equity | (244) | 112 | 166 |
| Transferred to profit or loss | - | - | - |
| Other reclassifications | - | (32) | - |
| Foreign currency translation | (1,537) | (5,080) | (2,157) |
| Valuation gains or losses taken to equity | (1,542) | (5,089) | (2,110) |
| Transferred to profit or loss | 5 | (22) | (47) |
| Other reclassifications | - | 31 | - |
| Cash flow hedges (effective portion) | 27 | (67) | 80 |
| Valuation gains or losses taken to equity | (32) | (122) | 134 |
| Transferred to profit or loss | 58 | 55 | (54) |
| Transferred to initial carrying amount of hedged items | - | - | - |
| Other reclassifications | - | - | - |
| Available-for-sale financial assets | 719 | (694) | |
| Valuation gains or losses taken to equity | 384 | 438 | |
| Transferred to profit or loss | 347 | (1,248) | |
| Other reclassifications | (12) | 116 | |
| Debt securities at fair value through other comprehensive income | (901) | ||
| Valuation gains or losses taken to equity | (766) | ||
| Transferred to profit or loss | (135) | ||
| Other reclassifications | - | ||
| Non-current assets and disposal groups held for sale | 20 | (20) | - |
| Valuation gains or losses taken to equity | - | - | - |
| Transferred to profit or loss | 20 | - | - |
| Other reclassifications | - | (20) | - |
| Entities accounted for using the equity method | 9 | (14) | (89) |
| Income tax relating to items subject to reclassification to income statements | 244 | 35 | (78) |
| TOTAL RECOGNIZED INCOME/EXPENSES | 3,628 | 323 | 1,681 |
| Attributable to minority interest (non-controlling interests) | (420) | 127 | 305 |
| Attributable to the parent company | 4,048 | 196 | 1,376 |
- (*) Presented for comparison purposes only (Note 1.3).
The accompanying Notes 1 to 57 and Appendices I to XIII are an integral part of the consolidated financial statements as of December 31, 2018.
Consolidated statements of changes in equity for the years ended December 31, 2018, 2017 and 2016
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (MILLIONS OF EUROS)
| Non-controlling interest | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | Capital (Note 26) | Share Premium | Equity instruments issued other than capital | Other Equity | Retained earnings (Note 28) |
Revaluation reserves (Note 28) |
Other reserves (Note 28) | (-) Treasury shares | Profit or loss attributable to owners of the parent | (-) Interim dividends (Note 4) | Accumulated other comprehensive income (Note 30) | Valuation adjustments (Note 31) | Other (Note 28) | Total |
| Balances as of January 1, 2018 | 3,267 | 23,992 | - | 54 | 25,474 | 12 | (44) | (96) | 3,519 | (1,043) | (8,792) | (3,378) | 10,358 | 53,323 |
| Effect of changes in accounting policies ( Note 1.3) | - | - | - | - | (2,713) | - | 9 | - | - | - | 1,756 | 850 | (822) | (919) |
| Adjusted initial balance | 3,267 | 23,992 | - | 54 | 22,761 | 12 | (34) | (96) | 3,519 | (1,043) | (7,036) | (2,528) | 9,536 | 52,404 |
| Total income/expense recognized | - | - | - | - | - | - | - | - | 5,324 | - | (1,276) | (1,247) | 827 | 3,628 |
| Other changes in equity | - | - | - | (4) | 256 | (10) | (23) | (199) | (3,519) | 68 | 1,096 | 540 | (1,364) | (3,158) |
| Issuances of common shares | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Issuances of preferred shares | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Issuance of other equity instruments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Settlement or maturity of other equity instruments issued | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Conversion of debt on equity | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Common Stock reduction | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Dividend distribution | - | - | - | - | (992) | - | (4) | - | - | (975) | - | - | (378) | (2,349) |
| Purchase of treasury shares | - | - | - | - | - | - | - | (1,684) | - | - | - | - | - | (1,684) |
| Sale or cancellation of treasury shares | - | - | - | - | (24) | - | - | 1,484 | - | - | - | - | - | 1,460 |
| Reclassification of other equity instruments to financial liabilities | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Reclassification of financial liabilities to other equity instruments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Transfers within total equity (see Note 2.2.20) | - | - | - | - | 1,408 | (10) | (19) | - | (3,519) | 1,043 | 1,096 | 540 | (540) | - |
| Increase/Reduction of equity due to business combinations | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Share based payments | - | - | - | (19) | - | - | - | - | - | - | - | - | - | (19) |
| Other increases or (-) decreases in equity | - | - | - | 15 | (135) | - | - | - | - | - | - | - | (446) | (566) |
| Balances as of December 31, 2018 | 3,267 | 23,992 | - | 50 | 23,018 | 3 | (58) | (296) | 5,324 | (975) | (7,215) | (3,236) | 9,000 | 52,874 |
The accompanying Notes 1 to 57 and Appendices I to XIII are an integral part of the consolidated financial statements as of December 31, 2018.
Consolidated statements of changes in equity for the years ended December 31, 2018, 2017 and 2016
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (MILLIONS OF EUROS)
| Non-controlling interest | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2017(*) | Capital (Note 26) | Share Premium | Equity instruments issued other than capital | Other Equity | Retained earnings (Note 28) |
Revaluation reserves (Note 28) |
Other reserves (Note 28) | (-) Treasury shares | Profit or loss attributable to owners of the parent | (-) Interim dividends (Note 4) | Accumulated other comprehensive income (Note 30) | Valuation adjustments (Note 31) | Other (Note 28) | Total |
| Balances as of January 1, 2017 | 3,218 | 23,992 | - | 54 | 23,688 | 20 | (67) | (48) | 3,475 | (1,510) | (5,458) | (2,246) | 10.310 | 55,428 |
| Effect of changes in accounting policies (Note 1.3) | - | - | - | - | (1,843) | - | 7 | - | - | - | 1,836 | 817 | (817) | - |
| Adjusted initial balance | 3,218 | 23,992 | - | 54 | 21,845 | 20 | (60) | (48) | 3,475 | (1,510) | (3,622) | (1,429) | 9,493 | 55,428 |
| Total income/expense recognized | - | - | - | - | - | - | - | - | 3,519 | - | (3,317) | (1,122) | 1,243 | 323 |
| Other changes in equity | 50 | - | - | - | 1,768 | (8) | 25 | (48) | (3,475) | 467 | - | - | (1,207) | (2,428) |
| Issuances of common shares | 50 | - | - | - | (50) | - | - | - | - | - | - | - | - | - |
| Issuances of preferred shares | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Issuance of other equity instruments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Settlement or maturity of other equity instruments issued | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Conversion of debt on equity | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Common Stock reduction | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Dividend distribution | - | - | - | - | 9 | - | (9) | - | - | (900) | - | - | (290) | (1,189) |
| Purchase of treasury shares | - | - | - | - | - | - | - | (1,674) | - | - | - | - | - | (1,674) |
| Sale or cancellation of treasury shares | - | - | - | - | 1 | - | - | 1,626 | - | - | - | - | - | 1,627 |
| Reclassification of other equity instruments to financial liabilities | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Reclassification of financial liabilities to other equity instruments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Transfers within total equity | - | - | - | - | 1,932 | (8) | 41 | - | (3,475) | 1,510 | - | - | - | - |
| Increase/Reduction of equity due to business combinations | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Share based payments | - | - | - | (22) | - | - | - | - | - | - | - | - | - | (22) |
| Other increases or (-) decreases in equity | - | - | - | 22 | (125) | - | (6) | - | - | (144) | - | - | (917) | (1,169) |
| Balances as of December 31, 2017 | 3,267 | 23,992 | - | 54 | 23,612 | 12 | (34) | (96) | 3,519 | (1,043) | (6,939) | (2,551) | 9,529 | 53,323 |
- (*) Presented for comparison purposes only (Note 1.3).
The accompanying Notes 1 to 57 and Appendices I to XIII are an integral part of the consolidated financial statements as of December 31, 2018.
Consolidated statements of cash flows for the years ended December 31, 2018, 2017 and 2016
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (MILLIONS OF EUROS)
| Non-controlling interest | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2016 (*) | Capital (Note 26) | Share Premium (Note 27) | Equity instruments issued other than capital | Other Equity | Retained earnings (Note 28) | Revaluation reserves (Note 28) | Other reserves (Note 28) | (-) Treasury shares (Note 29) | Profit or loss attributable to owners of the parent | Interim dividends (Note 4) | Accumulated other comprehensive income (Note 30) | Valuation adjustments (Note 31) | Other (Note 31) | Total |
| Balances as of January 1, 2016 | 3,120 | 23,992 | - | 35 | 22,588 | 22 | (98) | (309) | 2,642 | (1,352) | (3,349) | (1,333) | 9,325 | 55,281 |
| Effect of changes in accounting policies ( Note 1.3) |
- | - | - | - | (1,834) | - | 7 | - | - | - | 1,826 | 816 | (816) | - |
| Adjusted initial balance | 3,120 | 23,992 | - | 35 | 20,754 | 22 | (91) | (309) | 2,642 | (1,352) | (1,523) | (517) | 8,509 | 55,282 |
| Total income/expense recognized | - | - | - | - | - | - | - | - | 3,475 | - | (2,099) | (913) | 1,218 | 1,681 |
| Other changes in equity | 98 | - | - | 19 | 1,090 | (2) | 31 | 260 | (2,642) | (158) | - | - | (233) | (1,535) |
| Issuances of common shares | 98 | - | - | - | (98) | - | - | - | - | - | - | - | - | - |
| Issuances of preferred shares | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Issuance of other equity instruments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Settlement or maturity of other equity instruments issued | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Conversion of debt on equity | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Common stock reduction | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Dividend distribution | - | - | - | - | 93 | - | (93) | - | - | (1,301) | - | - | (234) | (1,535) |
| Purchase of treasury shares | - | - | - | - | - | - | - | (2,004) | - | - | - | - | - | (2,004) |
| Sale or cancellation of treasury shares | - | - | - | - | (30) | - | - | 2,264 | - | - | - | - | - | 2,234 |
| Reclassification of financial liabilities to other equity instruments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Reclassification of other equity instruments to financial liabilities | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Transfers within total equity | - | - | - | - | 1,166 | (2) | 126 | - | (2,642) | 1,352 | - | - | - | - |
| Increase/Reduction of equity due to business combinations | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Share based payments | - | - | - | (16) | 3 | - | - | - | - | - | - | - | - | (12) |
| Other increases or (-) decreases in equity | - | - | - | 35 | (44) | - | (2) | - | - | (210) | - | (0) | 2 | (219) |
| Balances as of December 31, 2016 | 3,218 | 23,992 | - | 54 | 21,845 | 20 | (60) | (48) | 3,475 | (1,510) | (3,622) | (1,429) | 9,494 | 55,428 |
- (*) Presented for comparison purposes only (Note 1.3).
The accompanying Notes 1 to 57 and Appendix I to XIII are an integral part of the consolidated financial statements as of December 31, 2018.
The accompanying Notes 1 to 57 and Appendices I to XIII are an integral part of the consolidated financial statements as of December 31, 2018.
Consolidated statements of cash flows for the years ended December 31, 2018, 2017 and 2016
CONSOLIDATED FINANCIAL STATEMENTS OF CASH FLOWS (MILLIONS OF EUROS)
| Notes | 2018 | 2017(*) | 2016(*) | |
|---|---|---|---|---|
| A) CASH FLOWS FROM OPERATING ACTIVITIES (1 + 2 + 3 + 4 + 5) | 51 | 8,664 | 2,055 | 6,623 |
| 1. Profit for the year | 6,151 | 4,762 | 4,693 | |
| 2. Adjustments to obtain the cash flow from operating activities: | 7,695 | 8,526 | 6,784 | |
| Depreciation and amortization | 1,208 | 1,387 | 1,426 | |
| Other adjustments | 6,487 | 7,139 | 5,358 | |
| 3. Net increase/decrease in operating assets | (12,679) | (4,894) | (4,428) | |
| Financial assets held for trading | 1,379 | 5,662 | 1,289 | |
| Non-trading financial assets mandatorily at fair value through profit or loss | (643) | |||
| Other financial assets designated at fair value through profit or loss | 349 | (783) | (2) | |
| Available-for-sale financial assets | (206) | 5,032 | 14,445 | |
| Loans and receivables | (12,652) | (14,503) | (21,075) | |
| Other operating assets | (906) | (302) | 915 | |
| 4. Net increase/decrease in operating liabilities | 10,286 | (3,916) | 1,273 | |
| Financial liabilities held for trading | (466) | (6,057) | 361 | |
| Other financial liabilities designated at fair value through profit or loss | 1,338 | 19 | (53) | |
| Financial liabilities at amortized cost | 10,481 | 2,111 | (7) | |
| Other operating liabilities | (1,067) | 11 | 972 | |
| 5. Collection/Payments for income tax | (2,789) | (2,423) | (1,699) | |
| B) CASH FLOWS FROM INVESTING ACTIVITIES (1 + 2) | 51 | 7,516 | 2,902 | (560) |
| 1. Investment | (2,154) | (2,339) | (3,978) | |
| Tangible assets | (943) | (777) | (1,312) | |
| Intangible assets | (552) | (564) | (645) | |
| Investments in joint ventures and associates | (150) | (101) | (76) | |
| Subsidiaries and other business units | (20) | (897) | (95) | |
| Non-current assets held for sale and associated liabilities | (489) | - | - | |
| Held-to-maturity investments | - | - | (1,850) | |
| Other settlements related to investing activities | - | - | - | |
| 2. Divestments | 9,670 | 5,241 | 3,418 | |
| Tangible assets | 731 | 518 | 795 | |
| Intangible assets | - | 47 | 20 | |
| Investments in joint ventures and associates | 558 | 18 | 322 | |
| Subsidiaries and other business units | 4,268 | 936 | 73 | |
| Non-current assets held for sale and associated liabilities | 3,917 | 1,002 | 900 | |
| Held-to-maturity investments | - | 2,711 | 1,215 | |
| Other collections related to investing activities | 196 | 9 | 93 | |
| C) CASH FLOWS FROM FINANCING ACTIVITIES (1 + 2) | 51 | (5,092) | (98) | 1,113 |
| 1. Payments | (8,995) | (5,763) | (4,335) | |
| Dividends | (2,107) | (1,698) | (1,599) | |
| Subordinated liabilities | (4,825) | (2,098) | (502) | |
| Treasury stock amortization | - | - | - | |
| Treasury stock acquisition | (1,686) | (1,674) | (2,004) | |
| Other items relating to financing activities | (377) | (293) | (230) | |
| 2. Collections | 3,903 | 5,665 | 3,222 | |
| Subordinated liabilities | 2,451 | 4,038 | 1,000 | |
| Treasury shares increase | - | - | - | |
| Treasury shares disposal | 1,452 | 1,627 | 2,222 | |
| Other items relating to financing activities | - | - | - | |
| D) EFFECT OF EXCHANGE RATE CHANGES | (2,498) | (4,266) | (3,463) | |
| E) NET INCREASE/DECREASE IN CASH OR CASH EQUIVALENTS (A+B+C+D) | 8,590 | 594 | 1,489 | |
| F) CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR | 45,549 | 44,955 | 43,466 | |
| G) CASH AND CASH EQUIVALENTS AT END OF THE YEAR (E+F) | 51 | 54,138 | 45,549 | 44,955 |
COMPONENTS OF CASH AND EQUIVALENT AT END OF THE YEAR (Millions of Euros)
| Notes | 2018 | 2017(*) | 2016(*) | |
|---|---|---|---|---|
| Cash | 6,346 | 6,416 | 7,413 | |
| Balance of cash equivalent in central banks | 47,792 | 39,132 | 37,542 | |
| Other financial assets | - | - | - | |
| Less: Bank overdraft refundable on demand | - | - | - | |
| TOTAL CASH AND CASH EQUIVALENTS AT END OF THE YEAR | 51 | 54,138 | 45,549 | 44,955 |
- (*) Presented for comparison purposes only (Note 1.3).
The accompanying Notes 1 to 57 and Appendices I to XIII are an integral part of the consolidated financial statements as of December 31, 2018.