7.4. Exposure in equity investments and capital instruments

The accompanying table shows the types, nature and amounts of the original exposures in equity investments listed or unlisted on a stock market, with an item differentiating sufficiently diversified portfolios and other unlisted instruments:

TABLE 55: Exposure in equity investments and capital instruments
2014

(Millions of euros)

Item	Type of Exposure (1)
	Non-derivatives	Derivatives
Exchange-traded instruments	6,154	314
Non-exchange traded instruments	4,114	115
Included in sufficiently diversified portfolios	4,114	115
Other instruments	-	-
Total	10,267	429

(1) Depending on their nature, equity instruments not included in Trading Book Activity will be separated into derivatives and non-derivatives. The amount shown refers to original exposure, i.e. gross exposure of value corrections through asset impairment and provisions, before applying risk mitigation techniques.

2013

(Millions of euros)

Item	Type of Exposure (1)
	Non-derivatives	Derivatives
Exchange-traded instruments	5,216	204
Non-exchange traded instruments	3,289	109
Included in sufficiently diversified portfolios	3,289	109
Other instruments	-	-
Total	8,505	313

(1) Depending on their nature, equity instruments not included in Trading Book Activity will be separated into derivatives and non-derivatives. The amount shown refers to original exposure, i.e. gross exposure of value corrections through asset impairment and provisions, before applying risk mitigation techniques.

TABLE 56: Realized profit and loss from sales and settlements of equity investments and capital instruments

(Millions of euros)

	2014			2013
	Losses	Gains	Net	Losses	Gains	Net
AFS	10	165	155	59	220	161
Permanent Investment	0	27	28	2,601	64	-2,537

TABLE 57: Unrealized profit and loss for latent revaluation of equity investments and capital instruments

(Millions of euros)

	P&L for latent revaluation in 2014
	AFS
Balance Dec 2013	94
Transactions	772
Balance Dec 2014	866

Lastly, the trend and main changes in capital use are described for the positions subject to Equity Credit Risk:

TABLE 58: Breakdown of RWAs, equity investments and capital instruments by applicable approach

(Millions of euros)

Concept	RWAs (millions of euros)
	Internal Models	Simple method	PD/LGD Method	Total
31/12/2013	1,338	1,888	10,263	13,488
31/12/2014	1,613	9,838	10,413	21,863

TABLE 59: Variation in RWAs for Equity Risk

Equity Risk
RWAs Dec 13		13,488
Effects	Exposure changes	3,048
	Changes in RW	0
	Regulatory changes	5,286
	Exchange rate	0
	Other	44
RWAs Dec 14		21,865

The main changes are due to two reasons:

• Trends in the exposure: widespread increase in the market value of the positions, mainly China CITIC Bank (CNCB)
• Regulatory changes: The equity investments of the insurers of capital have not been deducted (because they do not exceed the thresholds); their entire value is calculated with a weighting of 250%, as indicated in article 470 of the CRR.